Intu Properties PLC – Half-year Report

26 JULY 2018

LEI: 213800JSNTERD5CJZO95

INTU PROPERTIES PLC

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2018

WINNING DESTINATIONS DRIVE A RESILIENT PERFORMANCE IN A CHALLENGING MARKET

David Fischel, intu Chief Executive, commented:

“During a period of weakening sentiment in the retail market which has impacted prime shopping centre valuations, intu has delivered a resilient operational performance in the first half of 2018. This reflects the high quality of our business which was able to perform in a challenging retail environment.

Our occupancy level remains high at 97 per cent with aggregate lettings 6 per cent ahead of previous rents.

Like-for-like net rental income grew for the fourth consecutive year, by 1.3 per cent in the period, driven by new lettings and rent reviews, despite a 0.9 per cent hit from tenant failures.

We agreed 116 long term leases amounting to £16 million of annual rent to a number of new international entrants, as well as established key fashion brands such as Zara, River Island, Abercrombie & Fitch, Jo Malone, Jack Wills and The White Company.

We look forward to the opening of the £180 million intu Watford extension in October, followed by the £72 million intu Lakeside leisure extension in the first half of next year.

The Spanish business again had a strong six months with high occupancy and strong letting activity.

intu is the UK's only national consumer facing shopping centre brand with a growing digital presence, attracting 400 million customer visits per annum, with over half the UK population visiting an intu centre each year.

intu centres are in prime locations with high footfall and offer plenty of opportunities to increase density through additional mixed use developments. They have remained prime because we have always adapted and responded vigorously to the ever changing retail environment with continued investment and creative asset management satisfying the needs of retailers.”

Investor presentation

A presentation to analysts and investors will take place at UBS, 5 Broadgate, London EC2 at 09.45BST on 26 July 2018. The presentation will also be available to international analysts and investors through a live audio call and webcast. The presentation and a copy of this announcement will be available on the Group's website intugroup.co.uk.

HIGHLIGHTS FOR THE FIRST SIX MONTHS OF 2018

Financial highlights1

Our results for the period show a resilient operating performance with stable underlying earnings and continued like-for-like net rental income growth. Uncertainty around the UK economy is leading to weakening sentiment in the retail property investment market, impacting property valuations:

–   like-for-like property values reduced in the period with a total deficit of £650.4 million

–   net rental income reflects £4.0 million impact of disposals; like-for-like net rental income growth of 1.3 per cent

–   underlying earnings of £98.5 million, in line with the first half of 2017

–   loss for the period of £503.4 million against a profit of £122.7 million in 2017, primarily from the property revaluation deficit

–   underlying earnings per share (7.3 pence) and interim dividend (4.6 pence) unchanged

–   net asset value per share (diluted, adjusted) of 362 pence (31 December 2017: 411 pence), the decrease due to the property revaluation deficit. NNNAV per share is 309 pence (31 December 2017: 349 pence)

–   debt to assets ratio is 48.7 per cent, with substantial cash and available facilities of £739 million (31 December 2017: £833 million)