Key performance indicators

We measure progress against strategic objectives using the following financial and non-financial performance measures

Our key strategic objectives are:

  1. Optimise asset performance
  2. UK development momentum
  3. Make the brand count
  4. Seize the growth opportunity in Spain

Why is this important?

Footfall is an important measure of a centre’s popularity with customers. Retailers use this measure as a key part of their decision-making process on where to locate their stores.

How is this measured?

Footfall numbers across intu’s centres are captured using a combination of person or car counting cameras located at specific entrance and exit points within the centre.

How have we performed?

Footfall was unchanged in 2015, ahead of the 1 per cent reduction in the national benchmark as measured by Experian, continuing the trend of outperforming this benchmark.

Why is this important?

Attracting and retaining the right mix of retailers and catering and leisure operators will enhance our centres’ appeal and trading environment.

How is this measured?

The passing rent of let and under-offer units expressed as a percentage of the passing rent of let and under-offer units plus the ERV of inlet units.

How have we performed?

Occupancy has increased during the year to 96 per cent and remains above the IPD (retail) monthly index benchmark figures.

Why is this important?

Measures the organic growth in income generated from the Group’s properties in the year.

How is this measured?

Removes from the year-on-year movement in net rental income the impact of acquisitions, developments and disposals.

How have we performed?

Like-for-like net rental income has returned to growth in 2015 reflecting improved occupancy, better rental values from strong retailer demand, fewer tenants going into administration and development units coming back on stream, in particular in the second half of the year.

Why is this important?

Combines share price movement and dividends to produce a direct measure of the change in shareholder value in the year.

How is this measured?

Uses the movement in share price during the year plus dividends paid in the year.

How have we performed?

The Group showed a small negative shareholder return in 2015 compared to a rise in the REIT sector which was largely driven by REITs with exposure to central London offices.

Why is this important?

This is a measure of the movement in the underlying value of assets and liabilities underpinning the value of a share plus the dividend paid to shareholders.

How is this measured?

The movement in adjust net asset value per share plus dividends paid in the year as a percentage of the opening asset value per share.

How have we performed?

Total financial return in the year was strong, driven by property valuation increases.

Why is this important?

Underlying earnings per share is based on the underlying income generated in the year which gives an indication of the Group’s ability to pay dividends.

How is this measured?

Underlying earning exclude property and derivative valuation movements and exceptional income or charges.

How have we performed?

Underlying earnings per share increased during the year, reflecting the positive like-for-like net rental income movement, along with the contribution from the 2014 acquisitions.

Why is this important?

Measures the capital return on the Group’s property assets and compares this with the IPD index, a recognised industry benchmark.

How is this measured?

The valuation gain or loss in the year expressed as a percentage of the book value per pre-valuation assessed on a like-for-like basis for the Group’s investment property.

How have we performed?

The Group outperformed the IPD benchmark again reflecting the overall quality of the Group’s assets and the active asset management and development initiatives undertaken.

Why is this important?

Shopping centres create wealth and employment for their local communities. Gross value added, or GVA, measures the economic contribution of intu to local communities.

How is this measured?

GVA is calculated on a range of different activities and types of economic out of our UK assets, including investment expenditure, intu operational jobs, tenant jobs and tax contributions. This data is independently assured.

How have we performed?

GVA has increased by 20 per cent reflecting increases in employment by intu and its centres.

Why is this important?

Measures of our operational efficiency and performance of our existing assets. It also measures performance against our carbon intensity reduction target of 50 per cent by 2020 against the 2010 baseline.

How is this measured?

Greenhouse gas equivalents are calculated to work out the greenhouse gas intensity of the energy we use. These include direct and indirect emissions of our directly-managed UK centres.

How have we performed?

We have had award-winning reductions of 30 per cent from 2011-2014. We are on track to meet our target of 50 per cent by 2020.