Heading Intu Trouble

The Week: Morningstar columnist Rodney Hobson says shareholders at Intu Properties should brace themselves for a rights issue as the retail sector's woes bite hard

Rodney Hobson 8 November, 2019 | 9:26AM

Rodney Hobson

Shops are closing in high streets across the country; perhaps they can be filled with chickens coming home to roost. It was only a matter time before the pain felt by store chains was passed on to retail landlords and that pain is seen in the share price at Intu Properties (INTU), which has lost more than 90% of its value in less than five years.

The greed of retail landlords, who dictated the terms of leases so that rents could be ramped up mercilessly, has been a major part of the demise of high street trading. (The legal profession is also to blame for treating this iniquity as normal practice but I doubt if any lawyers are feeling their share of pain).

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Associated British Foods PLC2,634.00 GBX-0.38
Intu Properties PLC15.52 GBX-1.43
Purplebricks Group PLC108.00 GBX1.69

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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