Annual report 2017
Chief executive's review
“The underlying strengths of the intu business were much in evidence in 2017 as we recorded a robust overall performance, confounding the external gloom and negativity in pre-Brexit UK about retail and retail property, and showing the success of our asset management initiatives and strategic positioning."
David Fischel, intu chief executive
Highlights of 2017
23m sq ft
of trading space
spontaneous brand awareness
total economic contribution
net rental income
underlying earnings per share
dividend per share
market value of properties
net asset value per share
debt to asset ratio
like-for-like growth in net rental
new long-term lettings
total financial return
average lease maturity
reduction in carbon intensity since 2010
Our 2018 strategy
Our results highlight the underlying strength of the intu business based on the strategic objectives we have pursued over the last few years. For 2018, we are enhancing our strategy to build on this strong base.
With an eye on the potential challenges facing us in a changing market, we are tilting the emphasis of our objectives to increase our focus on the growth and continuing excellence of our flagship destinations in the UK and Spain.
Our purpose is to put a smile on the face of our customers. We want them to be happier after a visit to our centres than when they walked through the door. We know that happy customers mean happy retailers
The intu difference
Nickelodeon All Stars
One of our star turns in 2017 was the Easter campaign with the Nickelodeon All Stars.
Customers at the heart
Creating the intu brand in 2013 was a bold move, putting the customer at the heart of everything we do.
Events with a difference
We kicked off in 2014 hosting the world renowned Elephant Parade for its first ever national touring event. In 2016 it was Big Birdhouse Tour with the RSPB and the 2018 tour will embrace biodiversity. Our strategy is not just about big set pieces – every centre has an events programme designed around its retailers and audiences to celebrate local, national and international events.
Back in 2013 we introduced our new affiliate website, intu.co.uk, enabling retailers to promote their products to our digital audience.
A unique model
Our leasing-experiential-digital (LED) model ensures working in partnership with intu, retailers can reach their true potential across all intu channels.
GoInStore goes live
GoInStore, one of our intu Accelerate start-ups, predicts live video is going to be the next big thing in omnichannel retail. We offered them intu Lakeside’s charming and knowledgeable personal stylist Carlene Noel to create content for a pilot series of real-time videos that would showcase the centre’s retailers and attract customers via our Shop Insider channel. Over five days she worked with many of our stores at intu Lakeside such as Toni & Guy, Debenhams and Mac, to introduce customers to new ranges and brands. The results were impressive – 30 per cent of viewers started shopping through our website, 12.5 per cent booked a stylist and the average viewing time was nearly six times the usual dwell on our site.
Our flagship destinations are the shopping centres where retailers aspire to be, both now and in the future. They offer them consistently high footfall combined with a long dwell time and we know the longer people stay, the more they spend. This is why they have their biggest and best stores in these locations and have the confidence to invest in these stores for the long term.
The sky's the limit
intu Lakeside was state of the art when we built it in 1990, one of the first out-of-town shopping centres in the UK, and it remains one of the top retail destinations in the country with 20 million visits a year and over 250 shops and restaurants, delivering retail sales of over £0.5 billion a year and dwell time which has risen to nearly 2.5 hours.
We're focused on being a responsible business
Making a meaningful difference is important to us. We work closely with our stakeholders to keep communities thriving, to create strong community partnerships and to care for the environment. We always take a responsible approach and our success means success for local communities, tenants and shareholders alike.
Where to next
2017 annual results
See how our business performed in 2017
Annual results 2017
Our 2017 CR highlights
Making a meaningful difference is important to us
Corporate responsibility highlights 2017