Intu says rental income to fall again as net asset value declines

LONDON, Feb 28 (Reuters) - British shopping mall owner Intu (LSE: INTU.L - news) Properties, said full-year net asset value fell 3 percent, hit by the costs of financial restructuring and an equity placing, and forecasted rental income to further decline this year.

Intu, which owns some of Britain's largest shopping centres including the Trafford Centre in Manchester, north west England, said on Friday adjusted net asset value per share fell to 380 pence last year, from 392 pence in 2012.

Last year, Intu announced its fourth equity raising in as many years to fund the acquisition of a mall in Milton Keynes, north west of London, for 250 million pounds ($417 million).

Large malls that dominate their catchment areas have managed to weather the weak retailing climate better than others, but the failure of some retailers is affecting Intu's performance.

The company's underlying earnings per share fell to 15 pence, from 16.1 pence, bearing a 10 million pound impact from retailer tenants who fell into administration in 2012 and 2013.

While net rental income rose to 370 million pounds from 363 million pounds, this was mainly due to the acquisition of the Milton Keynes mall, Chief Executive David Fischel said. Excluding it, like-for-like income fell 1.9 percent or by 7 million pounds, he said.

He also said that while the retailing environment was improving, the residual impact of tenant failures in early 2013 and upcoming lease expiries would further hit net rental income this year.

The company remains in talks with Australian developer Westfield to buy two shopping centres which it would fund through new debt and an equity raise through a rights issue, he said.

It recommended a final dividend of 10 pence per share, bringing the amount paid in 2013 to 15 pence.