Intu expects woes to continue in 2019
Rental income set to fall up to 6% as Brexit uncertainty and a changing retail landscape bite
Intu Properties, which was formed when UK real estate group Liberty International was split in 2010, is expecting the challenging retail environment there to continue as more of its tenants lose business to online retailers and uncertainty around the Brexit process persists. The company, which also owns a smaller portfolio of malls in Spain, said its like-for-like net rental income in 2019 will fall by up to 6% amid a turbulent period for UK landlords. Following the announcement, Intu’s share price dropped 7.5% to R17.58 in early morning trade and closed 6.3% lower at R17.80 a share. The company’s poor performance from 2018 would continue into 2019. In 2018, Intu’s property portfolio’s value plummeted in the wake of the continued uncertainty around the Brexit process, which will see the UK leave the EU. Intu reported that its net asset value fell 24% in 2018 as its investments were revalued downward. British property owners including Intu are also grappling with company voluntary ...
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