In a 2018 that saw the stock on the back foot from the very beginning, Intu saved almost all of its intrigue for the near 2 month period between the start of October and end of November.
Reports of a potential cash takeover offer by a consortium led by Peel Group appeared to bring to an end the company’s decline, sending the Intu Properties share price 23.5% higher on October 5th.
Cut to November 29th and the stock had plunged more than 39% in a single session as it was revealed that the £2.8 billion bid had collapsed, putting the Intu share price on course to close the year at £1.15, making it one of the FTSE 350’s worst performers.
So far 2019 hasn’t done a huge amount for the company. By late-January it had hit a fresh all-time low of £1.01, and though it has rebounded since then, Intu Properties shares still only sit at a current trading price of £1.22 (Spreadex, 19/02/2019).
During that failed takeover rise and fall came Intu’s third quarter results – and they weren’t good. In a period described as ‘particularly challenging for UK retailers’, the company suffered a 3% drop in like-for-like property valuations, a slide that ‘reflects current negative investor sentiment towards UK retail property’. It also said comparable net rental income would be impacted by 1.5% due to 2018’s various tenant failures, including the closures at House of Fraser and Coast, meaning growth forecasts were cut to 0-1%.
It is hard to see Intu sounding more positive about its current financial year when it unveils 2018’s annual results on Wednesday, with the consumer mood remaining gloomy in the face of Brexit.
Intu Properties shares have a consensus rating of ‘Hold’ alongside an average target price of £1.44.
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