|Bid||4.4610 x 0|
|Ask||4.7920 x 0|
|Day's range||3.6429 - 5.0100|
|52-week range||3.1050 - 109.0500|
|Beta (5Y monthly)||0.43|
|PE ratio (TTM)||N/A|
|Earnings date||12 Mar 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||18 Oct 2018|
|1y target est||144.34|
The 2020 market crash has thrown up lots of bargains. But it's especially important to avoid stocks that could go bust.The post 3 shares I won't buy during the 2020 stock market crash appeared first on The Motley Fool UK.
Intu, which is also the owner of Lakeside in Essex and one of Britain's biggest shopping mall operators, said that while it welcomed the business rates holiday announced by the government "more support was needed" for companies. Intu, with net debt of 4.69 billion pounds and losses of over 2 billion pounds in 2019, earlier this month signalled doubts about its future without new funding, even before Britain's coronavirus shutdown began to take effect.
(Bloomberg) -- Bankers could be seen fleeing the London headquarters of Commerzbank AG on Tuesday, cradling computer monitors as they face an unknown stretch working from home.A block away, the stores of One New Change, the stealth bomber-shaped mall opposite St Paul’s Cathedral, are almost entirely empty, already prompting retailers including Hennes & Mauritz AB’s H&M clothing store to seek rent cuts from landlords. By Thursday, Europe’s real estate capital was bracing for the prospect of a full lockdown.Across the continent, real estate markets are going into hibernation as investors struggle to gauge the impact of a widespread shutdown on their tenants’ ability to pay rent. The list of companies begging for concessions from property owners is rapidly growing. Meanwhile, the pile of postponed property deals mounts.Already, more than 11 billion pounds ($12.7 billion) has been frozen in U.K. property funds as their appraisers warn the novel coronavirus that’s locking down Europe has made it impossible to assess their value. It’s one of the most visible symptoms of an outbreak that’s also quietly delaying major property sales.The sudden threat to the underlying health of companies that pay their rent is an unwelcome shock for office and warehouse landlords that have been enjoying record pricing in much of Europe and are suddenly being forced to reappraise. For retail and hospitality property owners, it could be fatal.“The evolving Covid-19 outbreak could have profound effects on real estate,” Peel Hunt analyst Matthew Saperia said. “The implications could be far reaching but quantifying these is highly speculative at present.”Retailer TroubleSo far, retailers including H&M, Superdry Plc, Burger King and New Look have sought concessions from landlords or said they will temporarily halt rent payments. For previously struggling retailers like Laura Ashley Holdings Plc, the virus has already proved fatal.At the same time, mall landlords in Europe including Unibail-Rodamco-Westfield have been forced to close many of their properties as governments struggle to get a grip on the virus’s spread. The subsequent market turmoil has already played a part in forcing embattled U.K. retail landlord Intu Properties Plc to postpone a 1.3 billion pound capital raise.Now the virus could stymie Intu’s chances of a rescue plan. Asset sales, among the few tools remaining to reduce its indebtedness, will be more difficult in this market, Bloomberg Intelligence senior analyst Sue Munden said. “Intu scraped through as a going concern in March, but by July it’s unlikely given looming debt maturities,” she said.For investors with cash, there are potential opportunities, though they are hard to find. Government bond yields, which have plunged since the outbreak started, are commonly used as a gauge for commercial real estate pricing, so real estate now looks relatively more attractive. But economic growth largely drives rents, so an economic shock is likely to put pressure on pricing.“It is a question of how it will balance,” Paul Kennedy, head of real estate strategy at JPMorgan Asset Management, said in an interview.Distressed SalesThere may be little to buy until clarity returns, or lenders force distressed sales. AEW SA last week postponed the launch of a 900 million euro ($978 million) office portfolio it had planned to offer investors at the Mipim conference in Cannes in the second week of March.In London, buildings that were being prepared for sale, including an office leased to Deloitte LLP, are now being held back, people with knowledge of the situation said. Aviva Plc’s investment management unit delayed the sale of a 100 million pound complex in Euston, Estates Gazette reported Wednesday.Other transactions, including the disposal of the Ritz Hotel in London, are likely to take longer than previously expected, if they do progress at all, two other people said. The merger of brokers LSL Property Services Plc and Countryside Plc is already on the scrap heap.When the fog of uncertainty clears, asset managers will look to rebalance their allocations between equities, bonds and alternatives like real estate, to factor in relative price movements that will affect their weightings. That’s likely to provide a source of deals as some funds find themselves overweight property due to sharp share price declines in more liquid assets.But it will likely also mean a reappraisal of deals by fund managers who have been chasing returns in a pricey market, taking on more risk.“At the end of a cycle you do see style drift and we have definitely seen that recently,” JPMorgan’s Kennedy said. “Style drift becomes a problem when you have to pay for the risk that you have taken on. Where this is going to hurt is investors who drifted away from core.”(Updates with potential London lockdown in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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The numbers come just a week after Intu was forced to abandoned an emergency fundraising, leaving its future hanging in the balance.
The owner of Manchester's Trafford Centre and the Lakeside complex in Essex said it lost £2.02 billion in the 12 months to the end of December, almost double a £1.17 billion loss in 2018 as it suffered from the collapse of a number of major UK chains. To shore up its balance sheet, Intu axed its dividend last year and in the past few months has sold two properties in Spain and one in Northern Ireland. The company said the continued decline in asset valuations and net rental income could result in financial debt commitment breaches and coupled with its inability to refinance debt, there was material uncertainty relating to its ability to continue as a going concern.
The recent FTSE 100 sell-off makes many shares look mighty tempting at current prices. Is this property hero one to consider picking up today?The post Buyer beware! I wouldn't touch this FTSE 100 stock with a bargepole appeared first on The Motley Fool UK.
(Bloomberg) -- The clock is ticking for the debt-laden owner of some of Britain’s biggest malls.Intu Properties Plc has just four months to raise enough capital to fend off creditors after it was forced to cancel a planned share sale. Furthermore, if mall values keep falling at their current rate, the firm will quickly need to find about 300 million pounds ($385 million) to satisfy lenders.And that’s before Intu even begins addressing its more than 3 billion pounds of loans coming due over the next five years -- a debt burden about 30 times the firm’s current market value.Uncertainty in equity and real estate markets scared a number of potential investors away from Intu’s planned capital raising, according to a statement Wednesday. Shares in the company, which owns nine of the U.K.’s top 20 malls, subsequently fell the most on record. The extension of a crucial line of credit with seven banks was dependent on the raising.The revised terms on Intu’s revolving credit facility remain available if it sells 1.3 billion pounds of shares between now and July, Chief Executive Officer Matthew Roberts said in an interview. The firm is now looking at alternative options, including further asset sales or debt restructuring.“We have expressions of interest in investing in the business at group and asset level, and in doing preferred equity deals,” Roberts said. “So we are going to sit down and work our way through those and talk to stakeholders including lenders in the next few weeks and keep the market updated.”Bricks and mortar retailers are struggling against high property taxes, a sluggish economy and the rise of online giants like Amazon.com Inc. That’s spooked retail property investors and is pushing down mall values, forcing up Intu’s relative indebtedness.The value of Intu’s malls and stores plunged by 2 billion pounds in 2019, a 22% decline from the previous year and about a third below their 2017 peak as retailers closed stores and sought rent cuts. The rate of decline accelerated in the second half of the year, reflecting the lack of buyers for big U.K. malls.Like-for-like net rental income slumped 9.1% last year and the company expects a further but slower drop in 2020.Volatility caused by the outbreak of the coronavirus “definitely did not help” the share sale process, said Roberts. “It was a very difficult environment to be out trying to raise equity.”Intu’s current 600 million-pound credit facility expires next year. The lenders, which include Bank of America Corp. and Barclays Plc, last week agreed to replace that with a 440 million-pound line of credit that would run to 2024.A further 10% fall in rents and values would leave the company needing 308 million pounds to ensure it doesn’t breach covenants across its credit lines, according to Wednesday’s statement. Once a recently agreed round of sales is completed the company will have 168.3 million pounds of cash and a 129.2 million pounds of headroom on its existing loan facilities.The company has appointed PricewaterhouseCoopers to advise on its capital structure, alongside incumbent advisers Rothschild & Co. and Linklaters LLP.“A take-private is still possible, but given the precarious nature of the company, any bidder may be better waiting before striking a deal with debtholders,” Peel Hunt analysts including James Carswell wrote in a note Wednesday. “In all outcomes, the equity is looking increasingly worthless.”(Updates with CEO comments and other details from fifth paragraph.)\--With assistance from Fabian Graber.To contact the reporter on this story: Jack Sidders in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Shelley Robinson at email@example.com, Chris Bourke, James HertlingFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Intu Properties Plc is in an almighty pickle. The owner of the Lakeside and Trafford Centre shopping malls said on Wednesday that it had been unable to raise between 1 billion pounds ($1.3 billion) and 1.5 billion pounds of equity.That’s not surprising. Even before the outbreak of the new coronavirus, tapping shareholders looked like a long shot. Intu has 4.5 billion pounds of net debt, representing a whopping 68% of the market value of its properties. Despite the value of its estate plunging by 2 billion pounds, more pain on high streets and in malls looks likely. As my colleague Chris Bryant has argued, Intu left it far too late to raise equity.The failure leaves the company in a bind. Some of its borrowings are at a corporate level, but others are against individual properties. It has almost 1 billion pounds falling due in 2021. Intu can pay the interest on its debts, but covenants look tight. Intu said it was still within its borrowing limits right now, but there was a risk that it could breach covenants at its next test in July.Susan Munden, an analyst at Bloomberg Intelligence, estimates that a 10% fall in the value of its properties and rental income would require another 300 million pounds of liquidity. And that’s before any impact on Intu’s tenants from the Covid-19 scare. As I have noted, there is already anecdotal evidence that footfall has been hit by worries about contracting the disease in shops and malls. So far Intu said that it had not seen a meaningful drop.Options for securing this funding are limited.Intu could look to sell more assets. It has already offloaded its interest in two Spanish sites and part of a mall in Derby. It still owns 100% of the Trafford and Lakeside centers, so it could bring in partners there too. But given the scale of the crisis, some form of debt-for-equity swap looks inevitable. The shares, which have fallen more than 90% over the past year, traded at less than 10 pence on Wednesday. At this level, they are pricing in expectations that there’s a chance of the equity being wiped out. That’s a boon for short sellers, including Crispin Odey, but a worry for long-suffering shareholders, as well as bondholders who would likely take a haircut in a radical restructuring.For all its woes, Intu has some decent assets. Some malls have adjoining land, which could be used for residential development.One wild card could be Mike Ashley, majority owner of Frasers Group Plc, formerly Sports Direct. He is no stranger to a bargain, and will have many stores in Intu malls. Frasers shareholders likely wouldn't welcome his intervention, especially after his debacle at Debenhams. But Intu investors and bondholders might. The property company certainly needs a solution and fast.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Shares in Intu have fallen dramatically, so does that mean the company’s share price is now at a bargain level?The post Has the Intu share price fallen so far that it's now a bargain? appeared first on The Motley Fool UK.
Royston Wild reveals a former dividend hero he thinks investors should dump this Valentine's Day.The post I’m leaving you! A fallen dividend stock I’d sell before it’s too late appeared first on The Motley Fool UK.
It's not often a property stocks leaps 25% in a day. But with a rescue deal on the cards for this one, is it a worthwhile investment?The post This property stock just jumped 25%. Would I pick it over buy-to-let? appeared first on The Motley Fool UK.
The debt-laden company said in January it was targeting an equity raise by the end of February to tackle its debt load as it engaged in discussions with shareholders and potential new investors. Intu has struggled to reduce its debt amid increasing store closures on Britain's high street and as retailers focus on online sales to cut costs. Rival Hammerson also abandoned a 3.4 billion pounds takeover offer for Intu in 2018.
Shares in the owner of Manchester's Trafford Centre fell to a record low on Monday after it said it was seeking new equity capital by the end of February. Against a tough economic backdrop, Intu has borne the brunt of company voluntary agreements - an insolvency procedure used by retailers to restructure leases - from brands including Debenhams, Toys R Us, House of Fraser, New Look and HMV, while other companies are increasingly focusing on online sales in a bid to cut costs. Intu's shares, which lost more than two-thirds of their value last year, sank as much as 10% and some analysts questioned whether the reported sum sought would be enough.
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"Our number one priority is to fix the balance sheet... options include disposing of assets, where we are in the advanced stages of selling two of our Spanish assets, through to raising equity," Matthew Roberts, Intu's chief executive, said. Intu shares were down 14% at 0941 GMT after the owner of Manchester's Trafford Centre also said it expects annual like-for-like net rental income to be down by about 9% and predicted another decline in 2020, although at a slower rate. Shares in other British property groups, including Hammerson Plc , British Land and Land Securities , also weakend on the third quarter trading update from Intu, which has 20 shopping centres in Britain and Spain.
The FTSE 100 , which had been holding at a near one-month high this week, rose 0.1%, while the FTSE 250 dipped 0.4% as the pound weakened slightly ahead of a Bank of England's interest rate decision on Thursday. The drop in the currency, however, boosted exporters British American Tobacco , Unilever and Diageo , which were the best performers on the main bourse.
British shopping centre operator Intu Properties said on Wednesday it could raise equity, alongside asset sales, to tackle its debt burden, knocking nearly 18% off its share price. "Our number one priority is to fix the balance sheet ... options include disposing of assets, where we are in the advanced stages of selling two of our Spanish assets, through to raising equity," Matthew Roberts, Intu's chief executive, said. Intu shares were down 14% at 0941 GMT after the owner of Manchester's Trafford Centre also said it expects annual like-for-like net rental income to be down by about 9% and predicted another decline in 2020, although at a slower rate.