Paris, Amsterdam, October 26, 2023
Press release
UNIBAIL-RODAMCO-WESTFIELD Q3-2023 TRADING UPDATE
2023 AREPS EXPECTED TO BE AT LEAST €9.50
ON THE BACK OF A STRONG OPERATING PERFORMANCE
- Like-for-like turnover up +11.7% in 9M-2023 vs. 9M-2022. Including the impact of 2022 and 2023 disposals and lower property development and project management revenues following 2022 deliveries, total performance was up +1.9%
- Like-for-like Gross Rental Income up +11.5% in 9M-2023 vs. 9M-2022 driven by strong operating performance and indexation
- 9M-2023 tenant sales up +7.9% vs. 9M-2022 and footfall up +6.3%, continuing the positive trend seen in H1-2023
- Rent collection at 96% for Q3-2023 above Q1-2023 and in line with Q2-2023 levels; 9M-2023 collection rate at 97%
- Strong 9M-2023 leasing activity confirms continued retailer demand for URW locations, with 1,685 deals signed in 9M-2023, up +5.5% year-on-year, a Minimum Guaranteed Rent ("MGR") signed of €308.5 Mn, up +5.1% and a MGR uplift of +8.4% (+5.2% in 9M-2022)
- EPRA vacancy at 6.1%, stable compared to H1-2023 level
- c. 90% of €4.0 Bn European disposals programme completed, with the sale of Polygone Riviera in France, closed on October 18, 2023
- Ongoing streamlining of US portfolio with sales of Westfield Mission Valley Shopping Centres and Westfield Valencia Town Center
- €13.2 Bn of cash and available credit lines on hand with refinancing needs secured for more than 36 months
- 2023 Adjusted Recurring Earnings per Share (AREPS) expected to be at least €9.50
Commenting on the results, Jean-Marie Tritant, Chief Executive Officer stated:
"Our results for the first nine months of 2023 demonstrate the continued strong operational performance of our Shopping Centres, with higher tenant sales and footfall and a +8.4% uplift in Minimum Guaranteed Rent on a record high leasing activity. This led to a like-for-like Group turnover growth of +11.7%, which was also supported by the performance of Offices and our Convention & Exhibition activities.
We made further deleveraging progress with asset sales in the US and Europe, and continue to benefit from a low and controlled cost of debt, and over 36 months of liquidity.
In October, we announced the evolution of our Better Places sustainability roadmap showing how URW supports the environmental transition of cities and the retail industry and its path to net-zero. The comprehensive approach fully aligns with our strategy to strengthen our core business, build new revenue platforms and maximize the value of our assets; and it positions URW to unlock new opportunities in the future.
Based on the strong performance of the first nine months, 2023 AREPS is expected to be at least 9.50 euros."
For further details, please refer to the Q3-2023 Trading update press release attached.
