intu shares fall sharply after asset write-down

Shares in shopping mall operator intu dropped sharply on early trading yesterday (20 February) after the company revealed a huge write-down on its assets and the suspension of its dividend.

Prices fell by 10% to as low as 103p in early trading, before rallying slightly to just under 109p.

Yesterday, intu revealed that its estate had lost 13.3% of its value last year – a revaluation deficit of £1.4bn.

The Victoria Centre in Nottingham lost 28% of its value last year, while intu’s Derby mall valuation slumped by 19%.

Despite this, the company’s rental income increased by 0.6% over the year.

Shares closed at 108.95p last night.