StockMarketWire.com - Shopping centre operator Intu Properties warned on profits blaming a higher-than-expected level of insolvencies and a slowdown in new lettings amid Brexit uncertainty.
'The change from the guidance given at the year-end is due to a higher expected level of CVAs in the rest of 2019 and a slow-down in completing new lettings,' the company said.
The company said it expected that like-for-like net rental income for 2019 would down by 4 to 6%.
The company said occupancy was impacted by slow-down in completion of new lettings over the last few months as tenants delayed decisions driven by a combination of continued Brexit uncertainty and awaiting the outcome of some high profile potential CVAs.
But there was some reason for optimism as the company's operational performance had been stable in the first quarter, with 53 long-term leases signed amounting to £6m of annual rent, at an average of 1% above previous passing rent.
'Despite the current operating environment, I believe we have a very good business and am confident we can meet the challenges we are facing head on. I look forward to updating the market on strategy alongside our interim results in July,' said Matthew Roberts, intu Chief Executive.
At 8:29am: [LON:INTU] Intu Properties share price was -8.47p at 91.73p
Story provided by StockMarketWire.com
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