Intu Properties Share Discussion Threads

[trcml] 20/3/2020 10:55

ps - Inn my experience, quoted prop cos are often better at property development than investment and better at buying than selling and prone to panic over finance and jumping ono bandwagons. the waste of shareholders money by Land Securities for example when it 'rushed' to convert to a REIT meant that when the crash came it needed a right issue to shore up. It is said property investment is 50% property, 50% finance. It needs someone on board who is as au fait with property finance as property development and management. Where quoted pro cos and shareholders for that matter come adrift is focussing too much on the NAV and not enough on the revenue stream and quality of tenants. The snag with NAV is that it becomes distorted by yield compression, itself a product of valuation opinion. I have property investment clients whose properties book value has remained unchanged for decades. Perhaps if Intu had kept its properties in at 10% yield consistently it would then have voided what has happened. But directors and managers are more concerned to protect their careers and what they consider to be 'their company' from activists which is another reason for revaluations take into account yield compression. Property values fluctuate as often as share prices but the same property is not revalued every moment of every day but every so often: months sometimes years go by during which time the ups-and-downs of the market can take their toll. Regarding an increase in NAV because of yield compression as an opportunity for a bigger payout in dividends and salaries and expansion is no way to run a long-term consistently successful business.

[trcml] 20/3/2020 10:26

Greg2019, Yes, the idea of selling off the units to their tenants is feasible. It is commonly done in small centres and parades of shops. A service charge would still be needed to cover the repair and maintenance of common structure and shared facilities. Whether it would it would matter that long term the centre would end looking as tatty and unkept as many ex-single ownership parades of shops and small centres is a factor to consider. The only downside to the idea is a) not all retailers would buy, no appetite to tie up capital, and b) any unsold could be sold to investors. Generally, fragmented ownerships are difficult to manage overall, as the 'high street' can testify.

As for the lowly share price, I suggest you are confusing the unencumbered capital value of the properties either under single-ownership, joint venture or potential sale of individual units to tenants and investors with the stock market's assessment of the risk, particularly the level of indebtedness and the power of the lenders to foreclose. Whether the only reason for the lowly share price is the imminent breach of the loan-to-value covenant is doubtful, it also perceived that with a lack of transactional evidence the valuer's opinion is wrong. Consider Hammerson, for example, HMSO's share price is also way down despite having no debt issues.

In my view, the banks will not foreclose until there are clear signs of increasing demand for shopping centre investments. In the meantime, Intu will continue managing as best it can, coping with the impact of coronavirus on centres and its tenants, allowing rent reductions to ensure the survival of its key tenants. The share price is I predict likely to languish for some time yet.

[greg2019] 19/3/2020 09:45

My email is [e-mail], if you want more information regarding intu properties, just send me an email.

[greg2019] 19/3/2020 09:43

Let assume, due to coronavirus, intu closed all shops for one year , the intu value actually only reduced the net profit, about 190 million pounds, how can be reduced 3.3 billion pounds, revaluation , sold intu Bromley, intu Uxbridge, cash call, right issue, online shopping (already being on the market for last 20 years), are all not acceptable , wrong business way.

[greg2019] 19/3/2020 09:33

Coronavirus can make you to sell your house at a discount 64% to sell?

Or any shopping mall, hotels, flat, house reduce 64% to sell?

[greg2019] 19/3/2020 09:32

Intu properties are still profitable, about 13 pence per share, true book value is 382 pence per share, selling to renters or million properties investors can sell up to 450 pence per share. Spanish shopping malls being easily sold are the evidence, basic on that, in got the true book value is 350-382 pence per share.

[greg2019] 19/3/2020 09:24

3.3 billion pounds value gone, how ? Must be a problem.

[greg2019] 19/3/2020 09:23

10.5 billion pounds in 2017, how can be reduced to 6.6 billion pounds, as only 0.6 billion pounds asset sold.

CEO are previous finance director, worked for intu more than 10 years, he paid all profit as dividend, about 2.2 billion pounds, since 2006, due to bad debt control, how can be promoted to CEO? Please find out something behind shareholders .

[greg2019] 19/3/2020 09:14

And also, rent income reduce 9.1% further this year, which give a total about 17% shops closed , however only one shop closed in Trafford centers, and I didn't say any shopping center has more than 5% shop closed even on a high street, because of gale and bad weather in UK, shopping centers are essential parts of life, even high street crisis, but not the case in s shopping center.

[greg2019] 19/3/2020 09:09

You didn't try, how do you know? Selling shops to renters are normal cases in most of countries, intu sold NTU Bromley or intu Uxbridge are because of coronavirus? Do many excuses about the low share price of intu properties, logically, a book value reduced from 411 to 147 in 2 years is not possible, when turkey suffered crisis , properties value reduced 40% only for a short period.

[greg2019] 19/3/2020 09:09

You didn't try, how do you know? Selling shops to renters are normal cases in most of countries, intu sold NTU Bromley or intu Uxbridge are because of coronavirus? Do many excuses about the low share price of intu properties, logically, a book value reduced from 411 to 147 in 2 years is not possible, when turkey suffered crisis , properties value reduced 40% only for a short period.

[greg2019] 19/3/2020 09:09

You didn't try, how do you know? Selling shops to renters are normal cases in most of countries, intu sold NTU Bromley or intu Uxbridge are because of coronavirus? Do many excuses about the low share price of intu properties, logically, a book value reduced from 411 to 147 in 2 years is not possible, when turkey suffered crisis , properties value reduced 40% only for a short period.

[greg2019] 18/3/2020 10:10

Intu Bromley and intu Uxbridge are closed to tube station or train station in London, if rebuild to flats, the value can go up to 3.5-4.5 billion pounds.but I don't understand why intu sold them at a very cheap price in a rush.

[greg2019] 18/3/2020 10:03

And also did all notice that intu sold intu Bromley and intu Uxbridge in 2014 and 2015 at a lower price in a rush, but intu pay all profit 0.2 billion pounds dividend each year, so, this is hard for me to understand.

[greg2019] 18/3/2020 09:55

Not really, Cardiff shopping center has two owners, and others with 3 or 4 owners, and like a flat building, how many flat you buy in a building, so each shop sell to renter similar management process with renting to renters, actually it easier to manage, but sell a high price, like selling watermelon most supermarket cut to small to sell easier and higher price.

[greg2019] 18/3/2020 09:50

2017 intu book value 411 pence per share, 2019, intu book value is 147 pence per share, basic on Spanish and derby sold price, we got book value is 382 pence per share, so 147 pence per share is not acceptable, and the main reason share price dropped so deeply, because revaluation, so I will predict that if intu sell shops to renters, which will drive potential investors to takeover intu at no less than 200 per shares, otherwise share price will go up to 147-250 pence per share in 2 years time.

[williamcooper104] 18/3/2020 09:45

You cannot run a shopping centre with multiple ownerships

[greg2019] 18/3/2020 09:36

And also I am wondering about the revalution, like ARNDALE center, valued lower than flat price on 2019 annual statement, if lower than flat, it's better to destroy the ARNDALE center to re build to 56 storey living flats, at the best location of Manchester city centers, so I believe that, all city center being valued too low.

[greg2019] 18/3/2020 09:28

As a shareholder, I wish intu properties sell shops to each renters, as renters normally with a good credit, can easily get a bank loan, why they don't buy the shop in a much cheaper price , rather than rent then, it's much easier for intu to sell the whole shipping center in one go, but with a big discount, I don't think it's lower than 200 pence per share.

[greg2019] 18/3/2020 09:20

If intu properties sell individual shop to renters or millions properties investors, can reduce the cost of renters up to 47.5%, and after 25 years no rent cost,the demand is high, intu can get cash in 1-2 years, shareholders can get 382 pence per shares basic on Spanish sold price.

[williamcooper104] 17/3/2020 12:50

Think Peel would rather sell everything to be left with Trafford

[senor_sensible] 17/3/2020 10:09

empty shopping malls make good makeshift hospitals.....

[flyfisher] 14/3/2020 21:39

In this case they seem to be trying to dispose of the most heavily indebted first, but in reality everything is for sale.