Indebted shopping centre landlord Intu has said it was “likely” to have to raise fresh equity after being hit by retailer insolvencies.
In a trading update Intu said that like-for-like rental income for 2019 would fall 9% from the previous year and would continue to fall in 2020. More than half of this is as a result of CVAs by retailers such as Monsoon and Arcadia, Intu said.
Shares plunged 14.5% by mid-morning on Wednesday, even though they had already been trading at an 80% discount to NAV.
Intu said the disposal of two Spanish assets would help liquidity, as would “raising equity, which is likely to form part of the solution”.
