Intu Properties Share Discussion Threads

[escapetohome] 23/4/2019 20:00

Oh dear! This is now below my £1 target and possibly looks to be going lower. Im setting a new target , 95 p.

That is very attractive to me.

Is it to you?

[propinv] 23/4/2019 19:20

News after hours re Debenhams is not going to be positive for Intu stock holders

[propinv] 23/4/2019 17:03

Agree with this post. Where can we get details of the waterfall?

[hillofwad] 19/4/2019 09:27

The Derby deal smacks of desperation to maintain the illusion that market values are anywhere near current book values.
They only managed to get half of it away when they need the cash and only at book value by structuring the deal in favour of the investor in terms of"waterfall of distribution"

Financial jargonesque that Intu are the sucker who will suffer the hit of any loss of rental income This likely to impact by June quarterday when DEBS will have issued a CVA ,slashing the rent or at worst leave

Intu have a basket of prime assets but trying to get rid of them in today's market without a heavy discount to current book is verging on impossible

[loafofbread] 18/4/2019 08:58

Anyone know if Cale were one of the takeover consortium backers?

[bookbroker] 18/4/2019 08:17

Difficult to envisage any asset manager, sovereign wealth fund being interested here until asset valuations reflect the changing face of retail, that is not to say the bottom of the cycle has been reached, it depends on whether stresses within retail continue to deteriorate or level off here. How Debenhams’ re-organisation plays out a big factor, along with HofF., and the likes of Topshop, but the pace of decline may slow, depends upon consumer sentiment, and how Intu sustains footfall within its centres. Debt manageable for now, so more sales like Derby may alleviate the pressure!

[cc2014] 18/4/2019 07:27

Half of Derby sold for £186m. More surprisingly sold at book value as I read it.

Regrettably paying down debt is more important than the loss of profit from selling 50%.

So, of late:
£186m Intu Derby at book value
£148m Intu Chapelfield at 2016 book value
£23m Other sundry disposals at 7% over 2017 book value.

This take LBV down to 52% which is still too high. They are getting there but until the book value stabilises the debt remains worrying, although interest rates staying lower for longer as evidenced by the bond markets should help them a little.

[monte1] 17/4/2019 19:08

The asset value is a multiple of rental income values. As CVA’s and the carnage on the High Street intensifies, dragging rents down, so the non cash write-downs will continue resulting in a weaker balance sheet. Additionally, it would take brave or far-sighted investor’s to consider a takeover in the current climate.

[bookbroker] 17/4/2019 18:50

Only surmising, but despite the tangible assets here, what is realistic valuation these days. May have relatively good occupancy, but rent reviews will become more prevalent, and the debt is very high in relation to current share price!

[eipgam] 17/4/2019 18:14

Is Woodford a holder? Which fund/trust? I didn't realise

[kenny] 17/4/2019 17:17

Two for one at 40p a share would be about a £1bn. Is the market likely to be able to absorb that large an amount on a £1.3bn capitalisation company? Especially as a large holder like Woodford, with his continuing redemptions has little money to throw around. Also, would other holders be willing to, effectively, double their investment in this company.

[bookbroker] 17/4/2019 16:44

Two for one probably at 40p a share!

[kenny] 17/4/2019 15:46

You may well be right but the odds seem stacked in favour of a rights issue. Good luck to all holders and, as I hold no position, I hope it all works out for holders.

[roulettewheel] 17/4/2019 15:31

If rights issue I would gladly buy more. Any lower and the Private Equity guys will get themselves a bargain. Their motto is sell high buy low.

[kenny] 17/4/2019 13:47

Surely the reason the share price keeps going down is that, despite management spin, there is likely to be a rights issue. I believe no one can predict what a rights issue will be priced at, so any investment now is quite speculative.

[kev0856153] 17/4/2019 13:01

if this is the reason for the price fall then i think it is harsh

[eipgam] 17/4/2019 12:59

yesterday

Barclays Lower Price Target Underweight GBX 100 ➝ GBX 85

[chiragmahe] 17/4/2019 12:48

98.40 GBX −3.65 (3.58%)

[escapetohome] 17/4/2019 12:23

Now below my target.

[kev0856153] 17/4/2019 10:50

Monsoon now about to announce store closures

[roulettewheel] 17/4/2019 10:42

So results on 3rd May, 16 days away. Looks like someone thinks there may be a profit warning

[montyhedge] 15/4/2019 08:29

What price do you get if buyers think it's a urgent sale.

[ericshunn] 12/4/2019 09:01

inbound enquiries for either all or parts of our Spanish business and we are investigating those”.

If intu completed the part-sale in Derby and the disposal of Sprucefield, and exited Spain, where it owns 50% in three of the top 10 centres, Roberts said the group would net around £600m.

Roberts also rubbished fears that the group was in danger of breaching loan covenants on some of its UK assets.

“We have a slide that very clearly sets out [scenarios for] four further valuation declines,” he said. “Even at 25% off, that requires £122.5m of covenant cures.

“If we’ve been successful in raising X-hundred million pounds through a disposal programme, then obviously we would target those proceeds into the loans where we’re closest to hitting that breach level.

“The other thing is we are cutting the dividend, and that surplus will be used to cover any covenant issues.”

[ericshunn] 12/4/2019 08:32

“We’re very clear that we’ve got an LTV of 53% and to be honest the likely direction of travel will be for that to increase because values will decrease the next time we report.

“However, what I’m concentrating on is on the ‘L’ of the loan-to-value calculation. That’s all I can do.”

[ericshunn] 12/4/2019 08:30

Matthew Roberts, who will step up from his chief financial officer role to the top job on 29 April, said that rather than owning 100% of its centres, as it typically does now, it would look to “own smaller stakes in the centres we’ve got” as it tries to reduce its LTV from 53%.

It is already looking to sell 50% of its Derby centre, its Sprucefield retail park in Northern Ireland and its Spanish portfolio.

Roberts added that he expected the LTV level to get worse before it got better as valuations continued to slide. “I think the direction of travel will be to own smaller stakes in the centres we’ve got,” he said.