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Intu Properties plc Presentation to Trafford Centre Noteholders 28 September 2015 Intu Properties plc Presentation to Trafford Centre Noteholders Corporate overview David Fischel Financial details Matthew Roberts


  1. Intu Properties plc Presentation to Trafford Centre Noteholders 28 September 2015

  2. Intu Properties plc Presentation to Trafford Centre Noteholders • Corporate overview – David Fischel • Financial details – Matthew Roberts • Operational review – Mike Butterworth • intu Trafford Centre overview – Mike Butterworth • Questions • Appendices This presentation includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Intu Properties plc to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any information contained in this presentation on the price at which shares or other securities in Intu Properties plc have been bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future performance 2

  3. Corporate Overview David Fischel, Chief Executive v

  4. Our priorities for 2015 4

  5. First half highlights • Positive underlying asset performance • Broadening and strengthening retailer demand • Momentum on UK development programme, now £1.5 billion • Benefits from brand and digital initiatives • Material progress in Spain 5

  6. Optimising asset performance Out-performed IPD; ERV growth 6

  7. UK development momentum Significant progress 7

  8. Making the brand count Digital connectivity • 19 million web site visits in last 12 months (2013/2014: 13 million) • Over 250 retailers ‘shoppable’ on intu.co.uk • Online marketing database of over two million individuals • Email marketing performance well above industry standards 8

  9. Making the brand count Events with a difference • Events on a national basis • Access to over half the UK population physically and digitally • Third annual Everyone’s Invited weekend delivered strong net promoter scores • High quality brand partners in 2015 • intu Experiences revenues exceed £15 million 9

  10. Making the brand count World class service ��� ��� ��� ��� Tell intu shows that: �� �� • Customers who are happy �� with their experience, stay �� longer �� �� �� • Customers who stay longer, �� spend more �� �� �� ���� ���� �������� ������� ����� ����� � ���������� ���������� ���������� ���������� ��������������� �����!��"����� #�$%& 10

  11. Seizing the growth opportunity in Spain Increased footprint • Completed acquisition of Puerto Venecia Puerto Venecia – Agreement for joint venture with CPPIB • Exercised option to acquire land in Malaga • Rebrand underway at intu Asturias CGI – intu Costa del Sol 11

  12. Seizing the growth opportunity in Spain The Spanish strategy • Create a business of scale • Focus on top ten markets • Acquire, develop and manage market leading retail resorts – Own and manage two top ten centres – Acquired land near Malaga for shopping resort intu Costa del Sol – Options on three other sites: Valencia, Palma and Vigo 12

  13. intu Costa del Sol • Total development cost €425 million for a 175,000 sq m shopping resort • Land acquired in May 2015 – carrying value €55 million • Strong interest from key retailers and leisure operators • Plan to start on site in 2016 for 2018 opening Catchment map 13

  14. Financial details Matthew Roberts, Chief Financial Officer v

  15. Key highlights • Valuation up 1.9 per cent (IPD up 1.2 per cent) • Underlying earnings per share 6.8p (2014 6.4p) • Interim dividend of 4.6p • NAV per share 385p • Debt raised on Puerto Venecia; re-priced SGS term loan saving 150bps • Robust financial position: 4.5 per cent average debt cost, debt to assets ratio 45 per cent and 8.1 years average debt maturity 15

  16. Underlying earnings '���� '������!�( $�& �!�( $�& ����� ����� %� %� ������ �!��� ����� ��*)� ���)� +#�� ����!��� ��,�� ��� $��)�& $��)*& ����(� ! ��������$� #���-� .& $���)�& $���)�& ��"�#� #�(����/��� "����� � �)� �)� 0���� �)� $�)�& / #���-� .��!� � .� / #���-� .��!� � .� ��)� ��)� ��)� ��)� / #���-� .��!� � .� / #���-� .��!� � .� ��)� ��)� ��)� ��)� (1) Includes Group’s share of joint ventures 16

  17. Financial metrics '������!�( '���� �!�(� ���� ���� 1 ���������"�� �)�� �)�� 2�3+�������!��� $�& ��)� 4 ��)� 4 2!� � .��������!���$�� ��& �)� �)� 5��.���#�!"��!.����!����� ������� �6��� �6��� $������ & ��"�#� #�������!���$�� ��& �)� �)� (1) The EPRA cost ratio (excluding direct vacancy costs) is calculated in accordance with EPRA guidelines 17

  18. Net rental income Growth from acquisitions '����� �!�( ���� %� 6 months to June 2014 189.2 Like-for-like (-1.0%) (1.7) Additions 25.2 Disposal (5.1) Total net rental income 207.6 • £1.7 million like-for-like decrease: impacted by units held for development at intu Victoria Centre, intu Metrocentre and intu Eldon Square • Expect modest like-for-like net rental income growth in 2015 18

  19. Underlying earnings bridge 19

  20. Items excluded from underlying profit $�&����������������������������������� '����� '����� $�& �!�(� �!�( ����� ����� %� %� / #���-� .��!� � .� ��)� ��)� �������-���"!��!��� � ���)� ���)� ��! .��� �(!���"!�����(�(� ! ��!�� ��)� � ������ �� $��)�& 2,������ !��(� ! �������� $��)�& $��)�& 2,������ !��!#�� ����!��� ��,�� ��� $�& $�)�& $��)*& 0���� $�)�& �)� ���(���(��������!�(�-�!� ���(���(������� �!�(�-�!� ���)� ���)� ���)� ���)� ���(���(������� ���(���(������� �!�(�-�!� �!�(�-�!� ���)� ���)� ���)� ���)� (1) Group including share of joint ventures (2) 2014 includes costs associated with acquisition of intu Merry Hill and intu Derby (£11m) 20

  21. Net asset value per share 385 pence 4 per cent total financial return including dividend 21

  22. £313m change in net external debt (1) Currently 85 per cent hedged (2) (1) Group including share of joint ventures; (2) Excluding forward starting swaps 22

  23. 2015 debt funding activities £500 million of debt activity in the period • €225 million loan for Puerto Venecia acquisition • Re-priced £352 million SGS term loan saving 150bps and extending maturity • intu Bromley refinancing progressing 23

  24. Debt maturity • Weighted average debt maturity of 8.1 years • Largely fixed, weighted average cost 4.5 per cent ** • £500 million of cash and committed facilities * 2017 includes £191 million relating to intu Merry Hill, which has initial maturity of 20 September 2016 extendable at the Borrower’s option to 20 September 2017. It is anticipated that this option will be exercised at the earliest possible opportunity; ** excludes RCF 24

  25. Capital expenditure • 2015-2024 active management capex: £65 million approved; £444 million proposed • Developments: UK £1,020 million; Spain £463 million • Stabilised initial yields of 6-10 per cent on active management projects; 7 per cent on extensions • Funded through – Available facilities – Development finance – Capital recycling and bringing in partners 25

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