Our business model
Creating winning destinations
In 2019 our overall business model remains unchanged. Our assets and resources and what we do remain the same but the strategy that delivers sustainable value for our shareholders and stakeholders has been adapt to better represent today’s opportunities and challenges at our winning destinations.
Our purpose is to create compelling, joyful experiences that make our customers smile and help brands flourish
intu chief executive
How we create winning destinations
Our focus is on creating shopping centres that are loved by customers and where retailers flourish. This builds a long-term business that delivers value for our shareholders and stakeholders.
Our assets and resources
We have unique assets and resources that provide the foundations for our business
What we do
We apply the intu difference – our specialist knowledge, expertise and market insight – to create the most popular shopping centres by:
Our strategy helps us to create value
The value we add
We deliver sustainable value for our shareholders and stakeholders
like-for-like net rental income
average net promoter score
gross value added
outperformance of national footfall benchmark
find ways to bring joy to customers and colleagues
reduction in carbon intensity since 2010
Underpinned by our culture
Our strategic focus
Our strategy aims to deliver sustainable value for our shareholders and stakeholders and has been adapted to better represent today’s opportunities and challenges at our winning destinations
Our strategy is to focus on winning destinations delivering resilient income streams, investing where there is the greatest potential, and reducing our debt to assets ratio to below 50 per cent through disposals, part-disposals and introducing partners to assets. In recent years we have successfully recycled capital through this approach, disposing of over £1 billion of assets.
The retail environment remains challenging. Our response is to adapt our strategy, protecting shareholder value in the short term and maximising growth in the medium term as we progress the repositioning process.
Our strategy will ensure that we focus on the centres with the greatest potential, with a capital structure that enables us to make the required investment.
Our strategic objectives
Over the next year we will be focussing our business on delivering our three strategic objectives
Adapting fast to a changing retail environment
Retail has always been dynamic, but the speed of change is increasing. It is our job to know what is coming next and partner with our tenants to deliver what they need. Providing the right environment for top retailers will ensure we have their best stores which will continue to prosper as their portfolios concentrate on the very best locations.
Priorities in 2019
- identify further transformational projects
- progress opportunities identified for alternative uses
- increase concentration of retailers’ top-quintile stores
- continuing to develop the intu brand experience
Making smart use of capital
To enable us to transform the business, we need a capital structure that will enable us to make the required changes. Reducing leverage and increasing financial headroom, which will only be meaningfully changed by disposals, part-disposals and the introduction of partners, will give us more flexibility for future investment opportunities and refinancing activity.
Priorities in 2019
- restore debt to assets ratio to below50 per cent
- revised dividend policy and no intention to raise equity
- optimise portfolio, with capital recycling as necessary
- maintain adequate financial headroom
Delivering strong underlying individual centre performance
Improving centre performance has been and will continue to be our driving force. Getting this right delivers growing rents and benefits us for the long term through income and capital growth. Future performance also includes looking at the best use for every area of our assets, which as we look ahead is wider than just retail.
Priorities in 2019
- continued focus on like-for-like net rental income
- maintain high occupancy
- increase rents from new lettings and rent reviews
- deliver investment projects pipeline