Intu loses £2bn as portfolio value dives

Shopping centre landlord intu has posted a £2bn loss in portfolio value, after enduring a property value deficit of 23% during the year ending December 2019. The market value of its investment and development properties has dropped to £6.6bn. This had upped its debt-to-assets ratio to 65%. EPRA NNNAV per share stood at 149p, down from 271p in 2018. The landlord’s results were delayed by a week, after it was forced to scrap plans for a potential equity raise of up to £1.5bn to help fix its balance sheet. Intu acknowledged that the notes accompanying its financial statement today “indicate a material uncertainty in relation to intu’s ability to continue as a going concern”. The factors that prompted this included the financial covenant breaches on its asset-level financing arrangements and revolving credit facility, caused by continued reductions in asset valuations and net rental income; and that the group is not currently able to refinance its borrowings at the same level as what is currently outstanding. However it said it had “options including alternative capital structures and further disposals to provide liquidity, and will seek to negotiate covenant waivers where appropriate”. These would address potential covenant remedies and upcoming refinancing activities, with the first material debt maturities in early 2021. See also: Intu is running out of options  To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette