Strong performance supported by increased tenant sales and footfall, dynamic leasing activity for retail and offices, and record C&E results
Retail Media revenues1 up +24.7% with Westfield Rise on track
to deliver €75 Mn European 2024 net margin target
Like-for-like EBITDA up +5.8% and
Adjusted Recurring EPS of €5.14, in line with FY-2024 guidance
€0.3 Bn of disposal transactions2 completed or secured despite challenging investment market
2024 AREPS and distribution guidance reconfirmed
H1-2024 in review:
Tenant sales up +4.2% and footfall up +2.9% vs. H1-2023
€217 Mn of Minimum Guaranteed Rent (MGR), with +7.4% uplift on top of indexed passing rents, including +11.9% on long-term deals
Shopping Centre vacancy at 5.5%, -80 bps improvement vs. H1-2023 and +10 bps vs. FY-2023
Shopping Centre Net Rental Income at €1,065 Mn, up +5.3%3 on a like-for-like basis
Offices & Others Net Rental Income of €50 Mn, up +23.3% on a like-for-like basis, thanks to Trinity now fully let
Convention & Exhibition Net Operating Income of €109 Mn, up +53.2%, benefitting from biennal and triennial show seasonality and early positive impact of the 2024 Olympic Games in Paris and up +25.4% on a like-for-like basis
EBITDA of €1,195 Mn, up +5.8% on a like-for-like basis compared to last year
€0.3 Bn of disposal transactions2 completed or secured, with €1.0 Bn of assets currently under active discussions
Net Debt to EBITDA at 9.3x, stable compared to FY-2023
More than 36 months of liquidity secured with €12.7 Bn4, including €4.6 Bn of cash on hand
Recurring net result of +€763.7 Mn and IFRS net result of +€71.7 Mn
Westfield Hamburg-Überseequartier Total Investment Cost (TIC) increased from €1.64 Bn to €2.16 Bn, impacting H1-2024 LTV by +50 bps
2024 AREPS guidance of €9.65 to €9.80 and distribution guidance reconfirmed
Commenting on the results, Jean-Marie Tritant, Chief Executive Officer, said:
“H1 was characterised by strong operating performance across all activities. In retail, this meant higher year-on-year footfall and tenant sales - outperforming National Sales Indices in the US and Europe - as well as continued robust leasing activity.
Our Convention and Exhibition business delivered record results thanks to the early impact of the Olympic Games in Paris, where Viparis venues are hosting a number of competitions and operational hubs. Our Offices business also benefitted from the leasing progress of the Trinity tower in Paris La Défense.
H1 was a strong period for retail media with revenues up significantly. We are on track to meet our 2024 net margin target thanks to our in-mall network that now totals almost 1,800 screens in Europe.
Following the announcement of significant cost overruns at Westfield Hamburg-Überseequartier, we have taken a number of initial actions and mitigation measures, and are working towards the retail opening on October 17, 2024.
Despite challenging investment market conditions, we have secured around €300 million in disposals, and are currently in active discussions on €1 billion of assets.
We reconfirm our 2024 AREPS and distribution guidance.”
Unibail-Rodamco-Westfield is an owner, developer and operator of sustainable, high-quality real estate assets in the most dynamic cities in Europe and the United States.
The Group operates 71 shopping centres in 12 countries, including 39 which carry the iconic Westfield brand. These centres attract over 900 million visits annually and provide a unique platform for retailers and brands to connect with consumers. URW also has a portfolio of high-quality offices, 10 convention and exhibition venues in Paris, and a €2.9 Bn development pipeline of mainly mixed-use assets. Its €50 Bn portfolio is 86% in retail, 6% in offices, 5% in convention and exhibition venues, and 2% in services (as at June 30, 2024).
URW is a committed partner to major cities on urban regeneration projects, through both mixed-use development and the retrofitting of buildings to industry-leading sustainability standards. These commitments are enhanced by the Group’s Better Places plan, which strives to make a positive environmental, social and economic impact on the cities and communities where URW operates.
URW’s stapled shares are listed on Euronext Paris (Ticker: URW), with a secondary listing in Australia through Chess Depositary Interests. The Group benefits from a BBB+ rating from Standard & Poor’s and from a Baa2 rating from Moody’s.
1 Net margin at 100%. 2 Proportionate net debt reduction. 3 Shopping Centres Lfl NRI excluding airports, US Regionals and CBD asset. 4 On an IFRS basis, including €8.0 Bn of undrawn credit facilities.
