Key performance indicators

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

Our key strategic objectives are:

  1. Optimising asset performance
  2. Delivering UK developments
  3. Making the brand count
  4. Seizing the growth opportunity in Spain

Footfall

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 increased in the year, driven by our retail, catering and leisure offerings, together with our customer-focused events, and outperformed the ShopperTrak measure of UK national retail footfall.

Occupancy

Why is this important?

Attracting and retaining the right mix of retail, 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 unlet units.

How have we performed?

Occupancy remained stable during the year at 96 per cent and remains above the IPD (retail) monthly index benchmark figure.

Net rental income

Why is this important?

Measures the organic growth in income generated from our centres in the year.

How is this measured?

Year-on-year movement in net rental income with the impact of acquisitions, developments and disposals removed.

How have we performed?

Like-for-like net rental income grew in 2017, reflecting better rental values from strong retailer demand and rent reviews. The growth includes the negative impact of 1.4 per cent from the former BHS stores which are now substantially relet.

Shareholder return

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 negative shareholder return in 2017 compared to an overall rise in the REIT sector mainly driven by negative sentiment to retail in the year.

Total financial return

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

How have we performed?

Total financial return improved in the year, primarily driven by a revaluation surplus, against a deficit in 2016. Dividends remained unchanged.

Underlying earnings per share

Why is this important?

Underlying earnings per share is based on the underlying income generated in the year which gives an indication of the extent to which dividend payments are supported by underlying operations.

How is this measured?

Underlying earnings exclude property and derivative valuation movements, exceptional items and related tax.

How have we performed?

Underlying earnings per share remained stable, reflecting the like-for-like net rental income movement, together with the positive impact of the acquisition of Madrid Xanadú, offset by higher finance costs and administrative expenses. 

Prime property assets (%)

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 pre-valuation assessed on a like-for-like basis for the Group’s investment property.

How have we performed?

Following seven years of outperforming the IPD benchmark, this year reflected the correction of the overly severe reduction in the IPD benchmark in 2016 following the EU referendum vote.

GVA of community investment (£bn)

Why is this important?

Shopping centres create wealth and employment for their local communities. Gross value added (GVA) measures the economic contribution of intu to local communities in the UK.

How is this measured?

GVA is calculated on a range of different activities and types of economic output 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 decreased by £0.3 billion predominantly as a result of the disposal of intu Bromley. On a like-for-like centre basis, GVA remained broadly stable.

Greenhouse gas emmisons intensity

Why is this important?

Measures 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 the direct and indirect emissions of our directly managed UK centres.

How have we performed?

Since 2010 we have reduced emissions by 58 per cent, meeting our target of a 50 per cent reduction by 2020, three years early.