LONDON (Alliance News) - Intu Properties PLC on Friday noted that a third of votes were in opposition to authorising allotment of unissued shares at its annual general meeting earlier in the day.
Shares in Intu closed down 4.1% at 96.10 pence in London on Friday and down 6.1% at ZAR17.85 in Johannesburg.
In total, 351.1 million or 34% of votes, were against resolution 13 "to authorise the directors to allot the unissued share capital". Intu acknowledged this and said that, while the resolution had achieved a 66% majority and been passed it intends to "take into account shareholder views on this matter".
Intu said "certain South African institutional investors" had "lodged significant proxy votes " in objection to the resolution, reflecting "prevailing institutional voting guidelines in South Africa" that differ from those in the UK.
Earlier on Friday, the company said it saw a "good" first-quarter lettings performance but warned the rest of the year is anticipated to be difficult due to a higher level of company voluntary arrangements than expected among retailers in its shopping malls.
In the first quarter, intu agreed 53 long-term leases worth GBP6 million in annual rent, a performance Chief Executive Matthew Roberts described as "stable" even though it was down from 60 leases for GBP10 million in annual rent agreed in the same period a year ago.
Occupancy at March 31 was 95.6%, slipping from 96.1% a year ago.
Looking ahead, intu said it expects like-for-like net rental income for 2019 to be down 4% to 6% on the year before. Income is expected to fall more sharply in the first half of the year before the pace moderates in the second.
At the release of its annual results in February, intu had guided for like-for-like net rental income to fall by 1% to 2%, though with the caveat of no new significant tenant failures.
This revision to guidance is due to a higher level of CVAs and a slow-down in completing new lettings, intu explained.
The shopping centre owner said it expects CVAs in 2019 to run above those seen in 2018, while occupancy has been hit by tenants delaying decisions amid Brexit uncertainty.
On the progress the company is making to reduce its loan to value ratio, intu said it is continuing to explore disposals options on its Spanish centres and is mulling refinancing legacy Trafford Centre debt.
Refinancing the Trafford Centre debt would reduce the cost of debt and remove amortisation payments which increase over the coming years.
"Refinancing would incur associated break costs but simplify the structure and increase optionality for any potential part disposal of the centre at a future date," intu noted.
intu is aiming to reduce its loan to value ratio from 53.1% at December 31 to back below 50% "over time".
