20 February 2019

intu annual results 2018

intu properties plc audited results for the year ended 31 December 2018

David Fischel, intu chief executive, commented:

"intu has again delivered a resilient operational performance which demonstrates how our centres differentiate themselves as winning destinations for retailers with their variety and excitement. We own and manage many of the best shopping centres, in some of the strongest locations, in the UK and Spain.

In a difficult year for the whole UK retail real estate sector and with very limited comparable transactional evidence, property valuations declined as sentiment weakened significantly. We reported a further 3 per cent fall in valuations in the final quarter of 2018, additional to the 9 per cent fall over the first nine months of the year. As a result, EPRA NNNAV at the end of the year was 271p per share, down from 349p the year before.

Although the sentiment in the retail sector is at an all-time low, the reality is that around 400 million shoppers visit our centres each year and occupancy is at 97 per cent. As some 85 per cent of all retail transactions still touch a physical store, demand from major retailers continues to be positive for our centres.

New tenant to our centres include Abercrombie & Fitch, Uniqlo, Bershka, and Monki, with established retailers such as Next, Primark, Zara and River Island all upsizing. Our tenants invested a record £144 million in their stores over the year, a clear indication that these retailers see great physical space as a key part of a successful multichannel strategy."

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