Shopping centre owner Intu, has revealed its property value has dropped by 3% since the 1 July amid a “period that has been particularly challenging for UK retailers”.
The company, which is currently considering a £2.8bn takeover from a consortium led by investment firm owner John Whittaker, announced it properties now total a value of £9.6bn.
However Intu said it has recorded a “resilient” performance as occupancy increased by 0.4% to 97% since the 1 July, while additionally agreeing 84 new long-term leases at rent levels 8% above previous passing rent.
The company said it now expects net rental income to range from flat to growth of 1% for the full year, down from an expected range of between 1.5% and 2.5% growth announced in July.
David Fischel, Intu chief executive, said: “Intu has continued to deliver a strong and resilient operational performance through a period which has been challenging for UK retailers, demonstrating the clear differentiation between winning destinations such as Intu owns and the rest.”
He added: “The top twenty shopping centres in the UK account for some 3% of UK shoppers annual spend and we own eight of them, representing 76% value of our UK portfolio.
“EPRRA NNNAV per share amounts to 297p at 30 September 2018, reduced by 12p from 30 June, following a 3% fall in like-for-like property valuations between 30 June and 30 September which reflects current negative investor sentiment towards UK retail property. We are however confident our business and assets are resilient and can weather the challenges we are currently seeing.”
Intu’s UK portfolio is currently made up of 17 shopping centres including Lakeside in Essex and Manchester’s Trafford Centre.