|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's range||0.5584 - 4.1980|
|52-week range||0.5580 - 83.5800|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||29 Jul 2020 - 03 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||144.34|
Roberts, who took the helm in 2019 after serving as Intu's finance chief for about nine years, informed staff that he was leaving the company, the source said. Intu, which owns 17 major shopping centres in Britain, including Manchester's Trafford Centre, last week called in KPMG as administrators after it failed to secure a deal with its creditors. Intu's shopping centres, home to hundreds of well-known retailers, will remain open during Intu's insolvency proceedings as they are individually owned by special purpose vehicles and under the control of their directors, KPMG said last week.
(Bloomberg Opinion) -- Rent collection day last Wednesday looked like a disaster for mall landlords in the U.K. Reeling from the coronavirus lockdown, tenants including JD Sports Fashions Plc, Boots drugstores and Primark withheld some payments pending negotiations with landlords. Estimates vary widely as to how much was paid of the 2.5 billion pounds ($3.1 billion) due — from 10% to 50%.This isn’t just bad news for Lakeside mall-owner Intu Properties Plc, which on Friday collapsed into administration. Missing rents affect everyone, including property developers Hammerson Plc and British Land Co.Whatever the final tally, the balance of power between retailers and their landlords has indelibly shifted. The days when well-known retail chains signed 25-year leases dictating that rents only rose were already largely consigned to history. But the retail apocalypse wrought by Covid-19 means that landlords have no choice but to accept even shorter leases and far more flexible terms with a good dose of the right services thrown in. As I have argued, the pain from the pandemic must be shared between retailers and property owners on both sides of the Atlantic. The future of the mall depends on it.Brick-and-mortar outlets were already facing existential questions from the rise of Amazon.com Inc. and other online retailers, and many traditional retailers had started to embrace e-commerce too. Covid-19 is accelerating this shift. At the end of last year, digital accounted for about 30% of U.K. retail sales excluding food. This could increase to more than 40% over the next year or so, according to independent retail analyst Richard Hyman.The trend makes store economics even more challenging. Moving sales online has its own costs, from stock management to processing returns, which can’t be offset with a commensurate reduction in store expenses. And now retailers have to invest to adapt their shops to social-distancing rules.With such pressure on profits, some stores will inevitably have to close. Those that don’t will have to cut costs, and that includes rent. In order to better manage cash flows, it’s imperative they be allowed to move to monthly rent payments from quarterly ones.Another option is for landowners to offer so-called turnover rent deals based on a proportion of in-store sales, usually underpinned by a minimum fee. This model, already common in off-price retail parks, aligns everyone’s interests. It gives mall owners an incentive to make their properties as appealing to customers as possible, with a pleasant environment, concierge services and a good mix of tenants covering retail, food and leisure. And retailers would be more inclined to sign for a longer period.The downside for property companies is more uncertainty because they cannot count on a guaranteed income stream to pay down their debt. Still, this is probably better than an empty unit.As push comes to shove, it’s best relations stay cordial. After all, retailers have promised to pay their landlord, and rent that hasn’t been collected during the pandemic isn’t written off. Yes, there’s a case for leniency when chains are clearly in distress. But it’s harder to justify withholding what’s due when retailers have remained largely open, such as Boots, or are in good shape financially, such as JD Sports. There are good reasons to encourage constructive dialogue. Store chains that take an aggressive stance may be exposing themselves to legal action. In the U.S., Gap Inc. is facing suits from Simon Property Group Inc. and Brookfield Property Partners LP. Plus, now that leases are much shorter, discussions over the proper rent come around much more frequently. When they do, companies that paid in full during the crisis may be able to secure better terms than those that reneged.With no let up in the ferocity of retail competition, it’s smart to strike more favorable deals in the future. But any tense moments should be saved for the contract negotiations, not quarter day. This column does not necessarily reflect the opinion of the editorial board or 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.
(Bloomberg) -- Talks to rescue U.K. shopping mall owner Intu Properties Plc collapsed after lenders including Canada Pension Plan Investment Board balked at a request to grant a moratorium on debt payments until the end of next year.Intu, which owns nine of the U.K’s top 20 shopping centers, fell into administration on Friday after failing to reach a deal with its creditors.CPPIB, which has loans secured against Intu’s Trafford mall in Manchester, rejected a request to extend loans until the end of 2021, according to people familiar with the matter, who asked not to be named because it’s private. Lenders behind debt backed by Intu subsidiaries Merry Hill and SGS also pushed back against the length of the extension, the people said.Read more: U.K. Mall Owner Intu Collapses Into Administration As Talks FailA spokesman for Intu and a representative for the SGS creditors at advisory firm Moelis declined to comment on the matter. A representative for Merry Hill’s creditors didn’t respond to requests for commentt.“The company and its creditors across the capital structure have not been able to reach an agreement on the terms of a debt standstill,” CPPIB said in an emailed statement.“In respect of our specific, ring-fenced financing of the Trafford Centre, we will work with the administrator of Intu Group to support the long term future of the Trafford Centre and also ensure that we are fulfilling our fiduciary duties to act in the best interest of the 20 million CPP contributors and beneficiaries.”Intu was already reeling from plunging U.K. store rents and collapsing values before the coronavirus outbreak forced most of its tenants to close. The lockdown contributed as retailers withheld rent and the pandemic shut off rescue options including a capital raise as it sought to reduce its 4.5 billion-pound ($5.6 billion) debt pile.After obtaining an agreement to waive terms governing its revolving facility until June 26, the company tried to buy additional time by asking creditors to postpone covenant testing, debt repayment and maturity payments for loans coming due before the end of 2021.The administration paves the way for the potential sale of some of the U.K.’s most-visited malls, including the Trafford Centre near Manchester and Lakeside in Essex. It also threatens the jobs of about 2,500 Intu staff and of the thousands more who work in the stores inside its malls.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.
A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.
Experts think COVID-19 could be the catalyst to bring retail rents down across the industry, putting major players like British Land and Hammerson in a bind.
(Bloomberg Opinion) -- One of Britain’s biggest mall operators wants its lenders to cut it yet more slack instead of calling in administrators. Given Intu Properties Plc’s terrible track record, it’s hard to see why creditors should opt for more of the same when they have the chance to take the keys.Intu owns some of the U.K.’s biggest shopping centers, has 4.5 billion pounds ($5.6 billion) of net debt and a byzantine capital structure with borrowings piled onto individual sites as well as the group as a whole. The pandemic shut most of the retail sector, making it even harder for tenants to afford the rent. While non-essential shopping is now permitted in the U.K., any recovery will come too late and too slowly to generate sufficient cash for Intu to cut its debts and stay within its banking covenants.The company wants its main lenders — the big four U.K. clearing banks plus Bank of America Corp., Credit Suisse Group AG and UBS Group AG — to accept a so-called standstill agreement suspending covenant tests for as long as 18 months and amending repayment terms. Matters come to a head on Friday when an existing covenant breach waiver expires. There’s no sign yet of any breakthrough.Intu has lined up auditor KPMG to be the administrator in case no deal materializes. On Tuesday, it cautioned that such a scenario could involve temporary closing some malls if bondholders don’t proffer some cash to fund operations under administration. That sounded like an appeal to tenants to pay their next rent checks, due today, or risk being shuttered just as shoppers are returning, as Bloomberg Intelligence analyst Susan Munden points out.The warning may backfire by making tenants less willing to pay rent if they think the malls will shut anyway. A complex administration is more likely than a clean standstill agreement, Munden reckons.The case for the lenders granting a standstill is pretty weak. Creditors are already the de facto owners of this company. That’s what the share price is saying when it values the group at just 60 million pounds. The question is whether they want the existing team to set strategy and run operations, or want to take direct control.They may decide it’s less bother just to give Intu more time, and avoid the negative publicity that could come with pulling the plug on a company behind some well-known shopping landmarks such as Manchester's Trafford Centre and Lakeside in Essex. Assuming administration happens, it could last for some time. This is a terrible market in which to be selling assets. There is no option of a quick liquidation for creditors to get their money back. Some of the senior debt due in 2023 is trading at roughly half of face value. Intu’s credibility could scarcely be lower. The company was adapting to the shifting trends in retail, for example by adding more leisure space, but just not fast enough. Intu also failed to address its high leverage despite persistent investor concerns. Having a big shareholder with a blocking stake, property magnate John Whittaker, may have been a complicating factor here. The fact remains that Intu should have tried much harder to raise equity when conditions were favorable, instead of waiting till this year when it was too late.Decent managers in this sector are sadly in short supply. If lenders keep Intu on board, it will be for want of anyone better.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.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.
The Intu share price is one of the stock market's worst performers over the past five years. Alan Oscroft examines its chances of recovering from the crisis.The post The Intu share price has crashed again. Here's what I'd do now appeared first on The Motley Fool UK.
The ailing shopping centre owner warned hat it had lined up KPMG as potential administrators in case rescue talks failed.
The owner of Manchester's Trafford Centre, Lakeside in Essex and other properties in Britain and Spain, with net debt of 4.69 billion pounds and losses of more than 2 billion pounds in 2019, said it had lined up KPMG as a "contingency". Intu raised doubts about its future without new funding in March, even before the coronavirus lockdown. It said on Tuesday that talks with its creditors on a debt standstill were continuing as the expiry of a debt waiver looms.
Is the Intu share price a bargain buy or a value trap? Roland Head looks behind the scenes and explains what he thinks will happen next.The post The Intu share price is up 200%. Here's what I'd do now appeared first on The Motley Fool UK.
Intu Properties shares look to be making a strong revival after their recent set-back. But is the company really on the path to recovery? The post The Intu Properties share price is taking off! But is it worth investing in? appeared first on The Motley Fool UK.
The owner of Manchester's Trafford Centre and Lakeside in Essex, Intu secured debt waivers until June 26 earlier this month and it said it was now proposing standstill agreements that would allow it to halt testing and repayments of debt facilities until no later than December 2021. While Intu was already concerned about its financial prospects earlier this year, it would be among the first high profile victims in the property world of a crisis that has led to frantic discussions between tenants and landlords. Shares of the FTSE small cap firm initially fell as much as 19% as investors weighed the risks of a default and the benefits of a potential debt standstill, before recovering to trade around 4% higher on the day at 4.4 pence.
The company also appointed David Hargrave as its chief restructuring officer. Intu, which owns Manchester's Trafford Centre in northwest England, Lakeside in eastern England's Essex and several other properties across Britain and Spain, said it had furloughed around 80% of its staff and cut 20% of its board's pay. Having only received 40% of rent and service charge for the quarter so far, Intu said it was now offering customers the option to pay rent on a monthly basis and was in "advanced" talks with customers representing around 28% of the remaining rent.
(Bloomberg Opinion) -- Lakeside shopping center, just outside of London, is a mecca of consumerism. It’s situated in the county of Essex, which loves shopping so much that a reality TV show captures the exploits of its glamorous, bauble-buying residents.But since last week, the mall has been open for only essential purchases, in line with government guidance. Its owner Intu Properties Plc said last Thursday that it had collected just 29% of the rent due from its tenants there and around the country. At the same time last year, it had received 77% of the amount due. Occupants including Associated British Foods Plc’s Primark and Swedish fashion retailer Hennes & Mauritz AB, which has shuttered thousands of stores around the world, are withholding payments or seeking better terms.It’s a scenario that’s being repeated on both sides of the Atlantic. Cheesecake Factory Inc., which has 294 stores throughout the U.S. and Canada, said in a filing last week that it would not pay its April rent, and that was in discussions with its landlords, a who’s who of American mall owners.While consumer-facing groups such as apparel chains have been the first shoe to drop, landlords look set to be the next. Retailers are bracing for a prolonged shutdown. On Monday, Macy’s Inc. said it was forloughing most of its 130,000 strong workforce after losing the majority of its sales because of store closures.No wonder some, such as U.S. mall owner Taubman Centers Inc., are fighting back. It told tenants in a memo that they still have to pay, although it added that it’s working with affected occupiers.The developing stand-off will do nothing to help the plight of stores, nor in the longer term, shopping center owners. As I have argued, the fall-out from the catastrophic loss of business from the coronavirus retail crisis needs to be shared. Some consequences will have to be borne downstream, by suppliers; some upstream, by landlords.But this could be tricky. With fixed assets like malls, it’s not easy to adjust the cost base. Some also have significant borrowings. Lenders may have to bear some of the burden, while government relief looks increasingly necessary. My colleague Brian Chappatta has warned of the potential dangers to the mortgage market.Intu, which owns 17 U.K. malls including Manchester’s Trafford Center and the Metrocentre in Gateshead, is particularly vulnerable. Even before the outbreak, it was struggling under a mountain of borrowings. It said last Thursday that it was in talks with its lenders on waiving covenants, and that it could access the U.K. government’s 330 billion-pound ($410 billion) support mechanism.Meanwhile, in the U.S., mall owners CBL & Associates Properties Inc., Macerich Co. and Taubman stand out for their above average net debt-to-Ebitda ratios and heavy use of secured lending, according to Lindsay Dutch, an analyst at Bloomberg Intelligence.Others look to be in a better position.Simon Property Group Inc. has one of the strongest balance sheets. But it agreed in February to buy Taubman for $3.6 billion. This deal, if it goes ahead, together with the Covid-19 impact, could increase Simon’s net debt to 7 times Ebitda at the end of 2020, from 5.6 times a year earlier, according to Moody’s. Taubman has some prize assets, such as the Short Hills Mall in New Jersey and the Gardens Mall in Florida , but the higher leverage and integration will be more challenging in the current environment.Indeed, there will be pain even for the most solid operators. Simon is the biggest landlord to Cheesecake Factory, according to analysts at RBC Capital Markets.But even when the virus abates, the retail landscape won’t be the same. Some weaker stores and restaurants will not re-open their doors. For others, it will take considerable time for demand to return to normal.A frank conversation between retailers and landlords is needed to settle on ways for making it easier for everyone to weather this crisis. Alterations could include moving to monthly rent payments in cases where retailers are still expected to pay quarterly installments in advance, and doing so without any additional fees to facilitate the switch. Making it easier for tenants to break leases would also avoid time consuming and costly processes to exit agreements.While that may seem to favor retailers more than landlords, mall owners too have something to gain. The pandemic, and the retail shake-out that will inevitably follow, will exacerbate the divergence between the most muscular stores and restaurants and the laggards. It will also polarize the vibrant malls and secondary locations even more.To prosper in this new reality, mall owners will need to ensure they can attract the most desirable brands. The retailers that do emerge from the wreckage will remember how they were treated when the chips were down. On both sides, even-handed negotiations are the best way to help all parties recover, rather than risking bringing about the death of the mall for once and for all.This 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.
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.
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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.
(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 email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis 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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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 <HMSO.L> 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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