Intu Properties Share Discussion Threads

[skyship] 12/4/2019 07:28

Property Week has an article on INTU under the following heading:

Intu to sell shopping centre stakes in move to reduce LTV:

Incoming chief executive admits LTV ratio could get worse before it gets better as valuations continue to slide

(Sorry, I'm not a subscriber, so unable to see more than just that!)

[hugepants] 11/4/2019 14:58

almost breached the key 100p level

[escapetohome] 10/4/2019 16:35

Getting very very close to my £1 target.

Patience pays.

[roulettewheel] 10/4/2019 14:26

Results due, 3 May 2019, 6% shorts hxxps://shorttracker.co.uk/company/GB0006834344/
Trading at 0.36 of NAV, most underperforming European REIT on my 1 year view. I plan to keep buying every 5 pence down. Lets see if there a profit warning or another takeover on its way

[blobby] 18/3/2019 14:47

Very interesting article, thanks eipgam.

"Canada Pension Plan Investment Board is in talks with Intu, a British company, over increasing its ownership of the shopping centres, which include Intu Asturias in Oviedo, northern Spain, and Puerto Venecia in Zaragoza, in the northeast. The pension fund already has a 50 per cent stake. Intu also shares control of the Xanadú shopping centre in Madrid in a joint venture with Nuveen Real Estate."

[eipgam] 18/3/2019 12:14

news yesterday in the ST about offloading the Spanish assets

[eipgam] 07/3/2019 15:30

I have, in the past, mentioned that I thought the investment in casual dining space at Eldon Square in Newcastle was misplaced... There are still empty units in the quadrant and now here's another, and it won't be because it was profitable!

[propinv] 23/2/2019 13:29

Not sure that is entirely true. Yields are pushing out across the globe. Makes sense in an inflationary environment. The big concern is that inflation isn't feeding through to gross rent. Normally if yields are going out due to inflation then income is too. Seems that the 7% uplift in new rents is not feeding through to top line rent. That's not good.

[kcubitt] 23/2/2019 13:20

84% is non recourse

[andycapp1] 22/2/2019 18:57

What’s your EV for Lakeside? I think to say asset values have fallen quite so far or even further is a bit of a stretch. Occupancy rates are still ok, income looks ok and indeed recent centre sales values have been fine. So I’d rather work off current NAVs rather some finger in air bear case. Better would be a discounted cashflow for lakeside?

[ericshunn] 22/2/2019 13:11

Apologies dodgy maths 26-30pps 🙈

[ericshunn] 22/2/2019 10:21

Think the gearing in Lakeside(plus other centres) is in the £1.5bn SGS.

If dont think Lakeside would achieve a sale price anywhere near the Dec 2018 valuation if put up for sale today.

Combined lower sale price and repayment of debt gives 13pps equity value for Lakeside.

[andycapp1] 21/2/2019 22:19

Eric that is utter rot! Lakeside is not geared that highly and is a trophy asset.

[ericshunn] 21/2/2019 19:58

If Lakeside sold equity value at likely current market pricing for shopping centres about 13pps

[catch007] 21/2/2019 19:29

I believe we will see a series of asset disposals as part of a strategic plan to reduce debt and reduce the NAV discount. INTU holds some quality assets in its portfolio and it is priced as a fire sale basket case. There will be corporate vultures waiting in the wings unless the company can demonstrate a clear way forward.

[catsick] 21/2/2019 08:29

I dont think it will get taken over but a pension fund will find a cash bid for a couple of the centers makes sense and the leverage will quickly be back to low levels and the thing can trade back closer to nav and reinstate the div

[zccax77] 20/2/2019 19:37

At this price, the dividend will go towards reducing debt or adding value through development both adding to net shareholder value. I could not believe how this thing fell after the bid was withdrawn. It even went down to 101p a month ago. We PI are able to buy shares at such ridiculously cheap levels, but if someone wants to buy the entire company they have to pay a 50%+ premium. The property revaluations are a Brexit red herring. This is better than money in the bank. I also hold HMSO another REIT in a similar situation. Not selling either until I get 50%+ return through a buyout event.

[strathroyal] 20/2/2019 19:27

Once the latest bid was withdrawn and the share price went down to below 120, there wasn't much point in paying a token dividend, particularly as the directors haven't come up with a revised strategy yet. Can't see that this is anything other than a sitting duck.

[zccax77] 20/2/2019 16:53

Which is exactly why I am holding. This is perfect takeover material. Trophy assets at knock down prices, providing a steady income stream.

[profitaker] 20/2/2019 16:48

It's got to be a take-over target at this share price and a weak sterling.

[zccax77] 20/2/2019 16:35

The dividend reduction will help pay down debt, which will improve LTV which will allow more preferential refinancing rates thus reducing interest payments, increase profits and dividends.

[zccax77] 20/2/2019 16:28

The best indicator of whether something has be impaired is recent sales value of comparables assets. Most of Intu's assets are unique and difficult to value, I bet the latest impairments are sanctioned by the auditors who have picked a number out of a range. I bet when Intu to dispose of a few assets their value will be 10% below their 2016 values as alluded to in their accounts. Look at the Spanish property, no impairment there, this is just a Brexit cloud.

[spob] 20/2/2019 16:26

which partly explains the dividend wipeout

[spob] 20/2/2019 16:25

are not some of their covenants based on the debt to assets ratio ?