Intu properties was the top FTSE riser this morning, despite the group's profit falling by more than 60 per cent.
Intu's profit fell by 67 per cent for the year to the end of December 2016 due to falling capital values on its properties. However, net rental income was up, rising 4.4 per cent from £428m to £447m, and underlying earnings rose seven per cent, from £187m to £200m.
Revenues rose to £594.3m from £571.6m the year before, a growth of four per cent.
The retail property group's dividend was up two per cent at 14p per share. And investors were clearly pleased; at time of writing, Intu's share price was up 6.3 per cent, making it the top FTSE 100 riser.
Why it's interesting
Intu said its profits had been hit by as much as £346m due to a property revaluation, which came out as a deficit of £64m. In 2015, Intu made a property revaluation surplus of £351m.
Commercial property group Hammerson - which owns the Bullring in Birmingham - has been contending with a similar problem. In its full-year results, released on Monday, Hammerson reported a £122m hit from property revaluations. The value of its retail parks were particularly affected, falling by £118.3m.
Retail analyst Nick Bubb said that overall the report from Intu was "reasonably reassuring".
What Intu said
David Fischel, Intu's chief executive, said: "While the environment for business this year is likely to be challenging as the full impact emerges of the UK's EU referendum vote, we are well positioned as we focus on top quality assets in prime locations with high occupancy and strong footfall."