Annual report 2018

Chief executive's review

“intu has again delivered a resilient operational performance which demonstrates how our centres differentiate themselves as winning destinations for retailers with their variety and excitement. We own and manage many of the best shopping centres, in some of the strongest locations, in the UK and Spain."

David Fischel, intu chief executive

Read the chief executive's review

Our purpose is to create compelling, joyful experiences that make our customers smile and help brands flourish"

Highlights of 2018

We delivered a resilient operating performance despite the uncertainty around the UK economy


customer visits


of units catering and leisure


consistently high net promoter score


of the UK's top-20 shopping centres


prompted brand awareness


total economic contribution


net rental income


market value of properties


earnings per share


net asset value per share (diluted, adjusted)




like-for-like growth in net rental income


new long-term lettings


invested in capital projects


reduction in carbon intensity since 2010

7.2 years

weighted average unexpired lease term


estimated retail sales


pipeline of projects in the next three years

How we create winning destinations

Play video

Our top properties

We own, develop and manage some of the best shopping centres, in some of the strongest locations, across the UK and in Spain

intu Trafford Centre

intu Trafford Centre is the only UK location
other than Oxford Street where you can find
Selfridges, John Lewis, Debenhams and Marks
& Spencer in one place. As the prime shopping
destination in the northwest, it is no wonder
that Abercrombie & Fitch?is following many
others in making it their first stop as they expand outside central London.



intu Lakeside

intu Lakeside offers a compelling mix of retail,
catering and leisure with something for all the
family. Zara and River Island recognise the
centre as a key retail destination and have
upsized their flagship stores. There will be even
more entertainment when the leisure
extension opens in spring 2019?introducing
Nickelodeon, Puttshack, Hollywood Bowl and
Flip Out to the mix.

Average dwell time


intu Merry Hill

Since taking full ownership in 2016 we have
cemented intu Merry Hill’s position as the
regional out-of-town centre for the West
Midlands. In 2018, Next opened a new 80,000
sq ft flagship store, with Primark and Sports
Direct also upsizing in the year. The centre
will be further enhanced by our planned
multimillion-pound refurbishment of the
external facade.

Customers who visit weekly


intu Watford

We have transformed intu Watford
over the last few years. The new
380,000 sq ft extension opened in
September 2018, making Watford a top-20
UK retail destination alongside the likes
of Edinburgh and introducing some
great retail names. A state-of-the-art
cinema and new restaurants are creating
an evening economy in the town.



intu Xanadú

intu Xanadú is the retail and leisure
destination for southwest Madrid.
It is home to Spain’s only indoor ski
slope, a 15-screen cinema and all
the retailers you would wish. Its
catchment will grow with the recently
opened aquarium and Nickelodeon
theme park and plans advancing to
upgrade the catering.

30-minute drive time


Our growth story

We have a strong pipeline of organic growth opportunities for the next decade in the UK and Spain

intu Lakeside

The extension, anchored by a Nickelodeon theme park, will bring additional leisure and catering brands to intu Lakeside, increasing the catchment and dwell times of the centre. Hollywood Bowl, Flip Out and Puttshack complete the leisure attractions which, along with 11 new restaurants, will further enhance this family-oriented extension.

intu Trafford Centre

The expansion and transformation of Barton?Square at intu Trafford Centre will be anchored by Primark and provide a fashion offer for the first time at Barton Square. Enclosing the courtyard will enable trading from two levels and add an additional 110,000 sq ft of retail space.

intu Broadmarsh

The second phase of our Nottingham vision is to redevelop the 500,000 sq ft existing centre to provide a complementary offer to that of intu Victoria Centre. The redevelopment will focus on bringing new brands to the city, with a cinema and restaurant-led upper level and convenience-driven lower level. The Light cinema and Hollywood Bowl will anchor the leisure element of the redevelopment.

intu Costa del Sol

With final planning consents expected shortly and strong demand from retailers, we expect to be on site with this shopping resort development in the next 12 months. intu Costa del Sol will have a high proportion of leisure and will be a must-visit destination for both residents and tourists from the whole of the region.

Alternative uses

We continue to look at opportunities within the portfolio for alternative uses for some of our available land. Our six out-of-town centres have some 470 acres of surface level car parks and other potentially developable land and our city centre locations offer opportunities for intensification of use. Initial work on mixed-use opportunities have highlighted the potential for around 5,000 residential units and nearly 600 hotel rooms, with further opportunities under consideration.

Our business model

Our focus is on creating shopping centres that are loved by customers and where retailers flourish. This builds a long-term business that delivers value for our shareholders and stakeholders

Our assets and resources

We have unique assets and resources that provide the foundations for our business

Our centres

National presence with high-quality retail and leisure destinations visited by half the UK’s population each year

Our relationships

Enduring, creative and collaborative relationships with retailers, customers, employees, partners and communities

Our people

Professional, empowered and motivated teams that are specialists in their fields

Our brand

Respected shopping centre brand focused on enriching the customer experience both in centre and online

Our financial strength

Capital structure provides capacity to deliver our objectives from a range of funding sources

What we do

We apply the intu difference – our specialist knowledge, expertise and market insight – to create the most popular shopping centres by:

making customers smile

Our insight and management of centres attract customers more often, for longer and from further away by offering the right mix of retail, leisure and catering alongside our distinctive brand proposition

helping retailers flourish

Our high-footfall locations, flexibility and strong brand give retailers the confidence that they will trade successfully with intu, which drives rental income and capital growth

Our strategy

Our strategy helps us to create value

The value we add

We deliver sustainable value for our shareholders and stakeholders

Our investors


like-for-like net rental growth

Our customers


average net promoter score

Our communities


gross value added

Our retailers


outperformance of national footfall benchmark

Our people


of staff find ways to bring joy to customers and colleagues

Our environment


reduction in carbon intensity since 2010

Underpinned by our culture

Behaving responsibly

We act responsibly towards the world about us…

Being a good employer

…and the people who work for us.

Living our values

So we are bold, creative and genuine

Strategy overview

Our four strategic objectives in 2018 were the means by which the business model was put into action

  • Growing like-for-like net rental income
  • Delivering operational excellence
  • Optimising our winning destinations
  • Making smart use of capital

Creating sustainable value

Our centres are forces for good in their communities by providing employment, supporting local good causes, encouraging wellbeing and managing natural resources

Building tomorrow's workforce today

Our Retail Gold programmes work with our retailers,
Employers in Education, schools, colleges and Jobcentre Plus to offer students and unemployed people the opportunity to develop the skills they need for a career in retail, hospitality or leisure. The programmes provide training for potential job
applicants to fulfil the needs of intu and its retailers.

It's good to Blurt

Over the last 10 years, mental health has become a topic of increasing concern in higher education. Those aged between 16 and 24 are particularly vulnerable to mental health issues and there is a growing demand for counselling services to meet their needs.

As part of our drive to improve the wellbeing of our communities, we have teamed up with mental health foundation Blurt.?

Green Lab 2018: Compost Café

intu Chapelfield is pioneering our first Compost Café, an innovative scheme where coffee grounds that make thousands of cups of coffee in the centre every day are collected to be reused for compost by local gardeners.