New Value Analysis of Intu Properties Plc (LSE:INTU) 2018
New Value Analysis of Intu Properties Plc (LSE:INTU) 2018
A new value analysis of Intu Properties Plc (LSE:INTU), a company listed on the London Stock Exchange and the Johannesburg Stock Exchange, has been added to our research pages here. Intu Properties Plc, was formerly called Capital Shopping Centres Group plc. Intu is a British Real Estate Investment Trust, whose main business is managing and developing shopping centres in the UK.
The lat time this site looked at Intu was in October 2017 and you can see that analysis here. At the time of the analysis in October 2017 the share price was around £2.32 and the value analysis identified a failure in the earnings part of the analysis. Just over a year later and the share price is much lower. However, Intu now passes the earnings criteria and all the other defensive value investor tests.
The current analysis for Intu was started just over a week ago when the share price was around £2. With the share price around £2 Intu looked like good value. Since then, the consortium lead by John Whittaker, including the Peel Group, the Olayan Group and Brookfield Property Group has withdrawn its takeover bid and the share price has declined to £1.14, which is a decline of nearly 50%.
The full text of the news release issued by Intu can be found here. The main items of interest for a value investor is that earnings are likely to be very similar to 2017 and the value of the property assets will also be roughly what they are now. The dividend is likely to be cut. However, the current estimated yield I s over 12% so even if the dividend is cut in half the yield for new investors is likely to be 5-6%.
As always, there is risk for investors and we advise investors to manage risk by spreading the timing of purchases and by maintaining a diversified portfolio. If you want to know exactly how cheap Intu is right now, buy the full value analysis.
Just a quick side note is that UK investors who own REIT shares through an ISA or a pension receive the REIT dividends free of personal tax and the dividends are paid from the REIT without corporation tax, which makes accepting income from REITs in ISA’s or pensions very attractive for UK tax residents.
To find out about why value investors would want to consider an investment in Intu Properties Plc common stock at current prices click here to download the new analysis.
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