|Bid||0.00 x 0|
|Ask||90.00 x 0|
|Day's Range||79.02 - 81.60|
|52 Week Range||73.90 - 204.00|
|Beta (3Y Monthly)||0.50|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 31, 2019|
|Forward Dividend & Yield||0.14 (17.28%)|
|1y Target Est||144.34|
For 18-year-old Lauren Westpfel, flipping through racks of heavily discounted clothing at Topshop in Essex’s Lakeside shopping centre is an unfamiliar experience. Ms Westpfel prefers to shop on her phone even though she works in a retail park nearby. Shoppers like Ms Westpfel are at the heart of a crisis in UK retail that has brought a series of fashion chains to their knees as stores lose out to online purchases, in turn placing landlords such as Lakeside’s owner, Intu, in a perilous position.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Faced with the choice of accepting rent cuts or hunting for new retailers to fill hundreds of stores, U.K. mall owners are swallowing their medicine.Some of Britain’s biggest commercial landlords including Hammerson Plc and British Land Co., voted in favor of a rescue plan for billionaire Philip Green’s Arcadia Group that meant having to accept dozens of store closures and rent cuts of at least 25% at almost 200 sites.But their approval for the so-called Company Voluntary Arrangement was grudging and highlights how much pressure they are under from the pain inflicted on retailers by consumers choosing to shop online rather than in department stores.Land Securities Group Plc, Standard Life Aberdeen Plc and the Crown Estate had intended to vote against Arcadia’s proposals and switched at the 11th hour, according to people familiar with their plans who asked not to be named discussing information that isn’t public. One landlord, Intu Properties Plc, voted against, calling the deal unfair to tenants that pay full rent.“It really is like being stuck between a rock and a hard place,” said Daniel Swimer, property litigation partner at law firm Joelson. “Landlords could have rent reductions forced upon them or, if the CVA doesn’t get passed, they’re left with a large retailer failing in the current retail climate.”Deal ApprovedThe fact the deal was approved is likely to put further pressure on mall rents and values, and raises the possibility that commercial property owners could be tipped into a crisis similar to that faced by the retailers who make up some of their biggest tenants.The cost of insuring Land Securities’ debt against default saw the biggest daily rise since December on the day after the Arcadia vote, according to ICE Data Services. Moody’s Investors Service warned of possible damage to the creditworthiness of retail property owners that already face “weak operating performance, with declining footfall and retail sales, and downward pressure on rents.”The landlords came under pressure from Arcadia to back the deal or put about 18,000 jobs at risk if the company was forced into administration, people with knowledge of the negotiations said. Several were told they would be shirking their social responsibilities and be blamed for job losses, an accusation they resented, some of the people said, asking not to be identified as the talks were private.Arcadia representatives declined to comment.Ultimately the decision to back the CVA came down to the best commercial interests of the landlords, given that they could be left with empty sites if Arcadia fell into administration, two of the people said.Spokesmen for Land Securities, the Crown Estate and Standard Life Aberdeen confirmed they had backed the plans but declined to comment on the detail of the negotiations. Representatives of Hammerson and British Land declined to comment.Smaller CutsWhile many companies have preceded Arcadia’s CVA, few have been so large and many secured less generous rent cuts. The risk is that following Arcadia, other retailers now demand the same, even those that have previously undertaken rent cuts.“There’s nothing to stop companies coming back for a second bite,” Andrew Hughes, head of European general retail at UBS said at a media briefing last month.Intu has previously highlighted the likely impact of Arcadia’s CVA, saying last month that store closures are worse than expected and it sees net rents falling 4% to 6% this year. The company, which owns eight of the top 20 malls in the U.K., is under pressure itself to sell assets to cut debt and CVAs are hampering those efforts.Falling ValueIntu said in February that a further 10% fall in the value of its properties would cost 1 million pounds in extra expenditures in order to avoid a breach of loan covenants. U.K. Retail property values fell 10.25 percent in the year through May, according to data compiled by broker CBRE Group Inc.Some landlords are pushing back on department store chain Debenhams’ outlet closures which won creditor approval in May. Sports Direct International Plc has grouped together with landlords to challenge the CVA and property investor M&G Investments has launched another challenge, a spokeswoman for the asset manager confirmed.But it will be hard for landlords to stop the trend. Consumers’ shift to online shopping shows little signs of abating and insolvencies have jumped by more than a fifth since 2016, with more than 1,200 retailers collapsing last year.“What is 100% certain is that retailers can’t carry on paying the rents they have historically,” said Richard Hyman, an independent retail consultant. “There’s less money in the pot to fund it and the pain has to be shared by the landlord as well as by the retailer.”\--With assistance from Antonio Vanuzzo.To contact the reporters on this story: Katie Linsell in London at email@example.com;Jack Sidders in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, Chris Vellacott, Shelley RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
"A key strategic objective for us is making smart use of capital ... Dushyant will be key in delivering disciplined capital allocation across the business," Chief Executive Matthew Roberts said. Since joining in 2010, Sangar has worked on deals worth over 5 billion pounds, including the acquisition of intu Trafford Centre, and played a key role in Intu's foray into Spain, the company said. Sangar previously held roles at MGPA, a private-equity real estate investment advisory company that was bought out by BlackRock, as well as in investment banking at UBS.
The FTSE 100 ended 0.4 percent higher, following three sessions of decline, and the FTSE 250 overturned earlier losses to close up 0.1 percent. HSBC was the biggest support to the main bourse, rising 2 percent to its highest level in over eight months as its profit surpassed analysts' expectations thanks to a surge in income from its core Asian business. Miners snapped a seven-day losing streak with a 1.1 percent jump as metal prices picked up with China and the United States set to resume trade talks next week.
Intu shares tumbled more than 8 percent to 91.90 pence at 0725 GMT, taking the stock to the bottom of the midcap index. The company, whose properties include the Trafford Centre in Manchester, now expects net rental income for the year to decline between 4 percent and 6 percent, compared with its previous view of a decline of 1 to 2 percent. "We expect the remainder of 2019 to be challenging due to a higher than expected level of CVAs and a slowdown in new lettings as tenants delay their decisions due the uncertainties in the current political and retail environments," said Matthew Roberts, who was installed as chief executive last month.
(Adds company news items and futures) May 3 (Reuters) - Britain's FTSE 100 index is seen opening 1 point higher at 7,352 on Friday, according to financial bookmakers, while FTSE 100 futures were up 0.13 ...
Cale Street Investments, which is backed by Kuwait's sovereign wealth fund, plans to buy half the interest in the Derby shopping centre, which is visited by 22 million shoppers each year, Intu said in a statement on Thursday. "While expected, the transaction provides some confidence in Intu's ability to dispose of assets in what is a tough backdrop for retail assets – at a price which is supportive of current valuations," Liberum analyst James Ashley said. Intu bought the shopping centre, which had net rental income of 25.2 million pounds in 2018 and houses retailers such as Marks & Spencer, Next, H&M, Sainsbury's and Zara, for 390 million pounds in 2014.
The management reshuffle comes as Intu feels the impact of tough conditions in the retail sector that forced it to scrap its final dividend in February. Gibbes will take the finance chief's role on an interim basis pending the appointment of a permanent successor to Matthew Roberts who was named chief executive last week.
The long-awaited CEO appointment comes as Intu faces persistent declines in sales at physical stores and grapples with a string of company failures in retail sector that had forced it to scrap its final dividend in February. A 2.9 billion-pound takeover bid by a consortium led by the biggest investor in Intu was also scrapped in November. The incoming CEO Roberts has been the finance chief for nearly nine years and was also the finance director of high-street retailer Debenhams, where he managed the retailer's market debut in 1998 and sale in 2003.
(Reuters) - British shopping centre owner Intu Properties Plc will name finance chief Matthew Roberts as its new chief executive officer, Sky News reported https://bit.ly/2VdDRj8 on Wednesday. The announcement ...
British shopping centre owner Intu Properties Plc will name finance chief Matthew Roberts as its new chief executive officer, Sky News reported https://bit.ly/2VdDRj8 on Wednesday. The announcement could ...
In the U.K., REITs are exempt from corporation tax on their domestic rental income providing they pay out at least 90 percent of that profit to their owners. The company says it wants to remain a REIT and will resume regular distributions in the long term.
"2018 has been an eventful and challenging year for Intu," said Chief Executive David Fischel in a statement, noting Intu's shares had slumped to a virtually unprecedented 60 percent discount to the underlying net value of its assets. Blue chip rivals Hammerson, British Land and Land Securities were also in the red. Intu hopes to push its current debt to assets ratio of 53.1 percent to below its 50 percent maximum target over time and wants to conserve cash.