Investor presentation November 2013
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Scale, focus and quality set Intu apart Intu asset values Page 3
Retail property market context Structural shift of UK retail Minimal new supply • International and successful domestic retailers • Limited pipeline of new UK retail space want flagship stores in best locations complimented by full range of leisure and • Long lead time before significant construction catering restarts • Shift to prime retail pitches reinforced by rising impact of e-commerce Page 4
2013 progress
Four themes of 2013 interim results • Building momentum – reinforcing our destinations • Created nationwide consumer-facing brand, intu, offering an engaging and digitally-connected experience • Improved financial flexibility and strengthened balance sheet • Steady occupancy and letting progress Page 6
Building momentum Positioning centres as “must have” destinations for retailers Page 7
October 2013 - acquisition of Parque Principado, Oviedo, Spain Compelling transaction • Acquisition of a Spanish top 10 centre: €162m, 7.2% NIY – earnings accretive – primary out-of-town centre for the region of Asturias – strong tenant line up anchored by Primark, Zara, H&M, Cortefiel – 97 per cent occupied – asset management opportunities • Attractive point in the cycle • Partnership with Canada Pension Plan Investment Board – Intu equity c €40m, after debt at 50% LTV • Establishes management presence in Spanish regional shopping centre market – local-based intu asset manager – out-sourced property management • Undertaking pre development activity on three sites under option Page 8
Created nationwide consumer-facing brand, intu Significant benefits • Reinforcing scale of Intu and importance of Intu centres with retailers • Extending dwell time and spend • Engagement with consumers – ancillary income from new services • Operational efficiencies • Nationwide marketing partnerships • Media benefits of same company and centre name • Data collection and analysis • Driving footfall between online and physical Page 9
Digitally connected • 7 centres free Wi-Fi • Ownership model – infrastructure and data • Over half of Wi-Fi registrants opted in to marketing • 9 million unique visitors to our websites • intu.co.uk live beta testing Page 10
Improved financial flexibility As at 30 June 2013: 30 June 2013 maturity profile • Weighted average debt maturity of 7.6 years • Largely fixed, weighted average cost 5.2 per cent • £250m of cash and committed facilities • 2013-2017 Capex: £49m committed; £200m uncommitted (excludes major extensions) Subsequent changes: • In July 2013 £125m raised on intu Midsummer Place • In October 2013 £43m raised on Barton Square • In November 2013 refinanced 2015 intu * includes £300m convertible bond Metrocentre with £485m 10 year bond • Pro forma weighted average maturity 8.1 years, weighted average cost 4.9 per cent Page 11
Robust financial position Net debt to assets 48.6% 30 June 2013 31 December 2012 Total properties £7,386m £7,073m Net external debt £(3,593)m £(3,504)m Net debt to assets 48.6% 49.5% Cash £140m £188m Undrawn committed corporate facilities (1) £110m £375m Net assets attributable to shareholders £3,399m £2,977m Adjusted net assets per share 377p 392p Weighted average cost of gross debt 5.2% 5.2% Weighted average maturity of gross debt 7.6 years 6.1 years (1) In addition £125m of debt secured on intu Midsummer Place in July 2013 Page 12
Steady occupancy and lettings progress 5 November 2013 IMS • Occupancy 95% • 152 new long term leases • £33m new annual rent • +4% passing rent • Footfall -2% • Experian benchmark -4% • Retailer sales (est.) +1% (1) • Asset management approach • Tenant mix • Encouraging commitment – fewer temps • Protect rental values (1) Year on year change to 30 June 2013 Page 13
Drawing customers from further, for longer and more often Asset Property Emerging Range New Retailer & Demand Choice Segments World Class Footfall Service Customer Dwell Time Marketing Experience Memorable Experiences Moments Page 14
Appendices
UK’s top ranked shopping centres Centre Location Centre Location 1 Westfield London London – Shepherds Bush 24 Victoria Square Belfast 2 Bluewater Greenhithe 25 intu Braehead Glasgow 3 Westfield Stratford City London - Stratford 25 Cabot Place, One Canada Square London 4 Meadowhall Sheffield 27 White Rose Shopping Centre Leeds 5 intu Trafford Centre Manchester 28 Victoria Quarter Leeds 6 St David's Cardiff 29 Silverburn Glasgow 7 intu Lakeside Thurrock 30 The Oracle Reading 8 intu Metrocentre Gateshead 30 Buchanan Galleries Glasgow 9 Liverpool One Liverpool 32 East Kilbride Shopping Centre Glasgow 10 Bullring Birmingham 33 Churchill Square Brighton 11 Arndale Centre Manchester 34 Golden Square Warrington 12 Westfield Merry Hill Brierley Hill 34 Trinity Leeds Leeds 13 The Mall at Cribbs Causeway Bristol 14 Westfield Derby Derby 15 Highcross Leicester Leicester 40 intu Chapelfield Norwich 16 Cabot Circus Bristol 46 intu Victoria Centre Nottingham 17 Brent Cross Shopping Centre London 48 intu Potteries Stoke-on-Trent 18 thecentre: mk ~~ Milton Keynes 61 intu Midsummer Place Milton Keynes 19 Festival Place Basingstoke 67 intu Uxbridge Uxbridge 20 intu Watford Watford 189 intu Broadmarsh Nottingham 21 West Quay Southampton 22 intu Bromley Bromley 23 intu Eldon Square Newcastle Source: PMA * Top shopping centres on basis of PMA Retail Score (June 2013). Intu shopping centres highlighted ~~ Adjoined by Midsummer Place, acquired by Intu in March 2013 Page 16
Development pipeline summer 2013 Intu Size 1 Indicative investment ‘000 sq ft timing 2 £m Committed Intu Lakeside food court refurbishment – 2013-14 9 Intu Eldon Square refurbishment 3 – 2013-14 7 Other committed 4 37 2013-15 33 49 Active management pipeline Intu Victoria Centre refurbishment – 2014-15 40 Intu Eldon Square “Sidgate” redevelopment and restaurants – 2014-15 10 Intu Metrocentre Platinum mall – 2013-14 3 Intu Potteries leisure extension 58 2013-14 18 Intu Bromley Queen’s Gardens restaurants 14 2013-14 4 Intu Trafford Centre - Barton Square courtyard enclosure and second floor retail 112 2014-15 30 Other active management 4 95 2014-15 95 200 Major extensions Intu Watford – Charter Place 380 2014-16 100 Intu Lakeside Northern extension 440 2015-17 180 Intu Braehead extension 5 475 2015-17 200 Intu Lakeside leisure extension 225 2016-18 80 Nottingham projects 500 2016-19 260 2,020 820 1 Represents net additional floor space of retail, catering and leisure 2 Timing subject to change due to a number of internal and external factors 3 Intu’s share of the total project cost is £9 million of which £2 million has already been spent 4 The majority of smaller committed and pipeline projects do not involve the creation of additional floor space 5 Size excludes arena and hotel Page 17
intu Eldon Square Major refurbishment in progress, restaurant quarter planned • Refurbishment to enhance overall appearance and ambience • Completing Spring 2014 • Total expenditure £15m (Intu share £9m) • Planning permission received for new dining destination • 20 new restaurants, two distinct areas • Construction from Spring early 2014 with completion Spring 2015 • Total expenditure £17m (Intu share £10m) Page 18
intu Metrocentre Platinum Mall enhancing tenant mix • Aspirational tenant mix and complementary catering to raise rental tone • New ceilings, feature lighting, column treatments and quality finishes • Total expenditure £5m (Intu share £3m) • Full design mock up in place on mall • Construction started in Summer 2013 with completion Spring 2014 • Full mall roll out to follow Page 19
intu Lakeside Improving the food offer, major retail & leisure extensions planned • Food court refurbishment and tenant mix reprofiling – 4 names new to Intu in heads of terms • Fully refurbished contemporary environment • Total expenditure £9m • Incremental rent over £1m • Construction started Autumn 2013, complete Spring 2014 • 325,000 sq ft retail extension consented • Planning application submitted for leisure extension • Creating a point of difference with destination retailers and enhanced leisure offer • Planned expenditure £180m (retail), £100m (leisure) • Potential start 2015 subject to pre-lets, completion 2017 Page 20
intu Victoria Centre Major refurbishment Spring 2014 • Major refurbishment - new entrances, reconfigured public areas and new lighting, ceilings and flooring • Planning permission received for cluster of 12 new restaurants on existing piazza • Interest from exciting retailers not currently represented in Nottingham, e.g. Urban Outfitters opened November 2013 • Total expenditure £40m, construction starts Spring 2014, completion 2015 • To be followed by major refurbishment of intu Broadmarsh and retail and leisure extension of intu Victoria Centre Page 21
intu Bromley Queens Gardens restaurants • 14,000 sq ft catering cluster consented • 5 operators in heads of terms, all new to Bromley • Total expenditure £4m, new rent £0.5m • On site Autumn 2013, completion 2014 Page 22
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