Intu Properties warns of difficult retail environment but remains positive

Intu Properties (until recently Capital Shopping Centres) has warned that the UK retail environment remains difficult and posted a one per cent decline in footfall in the year-to-date than in 2012.

Intu Properties (until recently Capital Shopping Centres) has warned that the UK retail environment remains difficult and posted a one per cent decline in footfall in the year-to-date than in 2012.

However, it stressed that this is still an out-performance of Experian's measure of UK national retail footfall, which declined four per cent.

The group said the retail environment is under pressure, with retailers continuing to be cautious in entering into store commitments.

That said, occupancy levels have remained high at 95%, and reported that 33 new long term leases were signed during the first quarter, representing £8.0m of new passing rent.

David Fischel, Chief Executive, said: "In the first quarter of 2013 we have launched the first UK nationwide prime shopping centre brand, acquired a major asset with considerable growth potential funded by an equity placing and refinanced a third of our debt to achieve a significantly extended maturity profile.

"Although the UK retail environment remains difficult we have strong momentum across the business, with the roll out of our digitally integrated customer experience and our £1.0bn pipeline of development projects as we position each of our centres for medium term value creation."

At the end of March, the groups net external debt was unchanged at £3.5bn, and the debt to assets ration was 48%.

Looking ahead, the group said a range of initiatives is underway across the business, all of which are expected to strengthen its national position.

Despite this, it warned: "Tenant failures, lease expiries and tenant caution over new store commitments remain risk factors likely to continue to impact short term earnings. However, we are driving medium term value creation by using our focus, scale and specialism to maximise the opportunities available to us in the changing marketplace."

The share price edged 0.03% higher to 349.10p by 09:12 on Wednesday.

NR

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

5 top UK tech stocks
Investments

5 top UK tech stocks

The UK market has never been considered a fertile hunting ground for tech stars. But there are plenty of promising companies beyond the old economy, s…
23 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023