Regional shopping centre owner and developer Intu has reported its net rental income jumped 10% to £207.6m but its property revaluation surplus fell by 71% to £162.2m for the six months to June 30.
As a result, the company’s profit fell by 56% to £262.3m compared with the same period last year.
The market value of its investment properties increased by 6% to £9.5bn during the first half with the acquisition of Puerto Venecia in Zaragoza, Spain, and the revaluation surplus.
The company reported its occupancy rate for the period was 95% compared with 96% last year and footfall was up 1% across its 15-strong shopping centre portfolio, which includes Intu Trafford Centre in Manchester, Intu Metrocentre in Newcastle and Intu Lakeside in Essex. Estimated retailer sales were up 3.4%.
It has five ongoing development projects with a total cost of £100m on site, including new leisure and restaurants at its Intu Potteries and Victoria Square locations, as well as major restaurant projects at Eldon Square, Metrocentre and Bromley shopping centres.
Four major developments at Intu Watford, Broadmarsh, Lakeside and Costa del Sol, with a total cost of around £650m, are on target to start in the next 18 months.
David Fischel, chief executive of Intu, said: “We were particularly encouraged by the continued improvement in retailer demand for quality space in preeminent destinations, with leases signed in the period in aggregate a healthy 12% above previous passing rent and we have a promising number of further lettings in the pipeline.”
He added Intu welcomed the review of the Sunday trading laws, calling the exiting legislation “vastly out of date in today’s multichannel world”.
“As such, we believe the case for deregulation is overwhelming; it would generate substantial economic growth, create thousands of extra jobs and would benefit our customers, the vast majority of whom are telling us that they want the flexibility to shop where and when they want,” he said.