Unibail-Rodamco-Westfield Reports FY-2023 Earnings
Paris, Amsterdam, February 8, 2024
Press release
UNIBAIL-RODAMCO-WESTFIELD REPORTS FY-2023 EARNINGS
Strong operating performance with tenant sales up +6.4%, above core inflation,
and footfall up +4.9%
Like-for-like EBITDA up +6.7%
and Adjusted Recurring EPS of €9.621, above guidance
Continued deleveraging leading to improved Net Debt/EBITDA at 9.3x
Successful return to the bond market at attractive conditions
Better Places sustainability roadmap shared with the market
including net-zero targets approved by the SBTi
Distribution reinstated
with a proposed cash payment of €2.50 per share to be paid in May 20242
2024 AREPS forecasted to be in the range of €9.65 to €9.803
2023 in review:
- Tenant sales up +6.4% and footfall up +4.9%
- Shopping Centre vacancy back to 2019 level at 5.4%, 110 bps improvement vs. 2022
- €449 Mn of Minimum Guaranteed Rent (MGR) signed (+7% vs. 2022), at an uplift on top of indexed passing rent of +6.8% including +10.6% on long-term deals
- Shopping Centres Net Rental Income up +8.0%4 on like-for-like basis
- Westfield Rise, URW’s retail media business, up +17.4% on a net margin basis5
- Offices & Others Net Rental Income up +22.1% on like-for-like basis, reflecting leasing progress at Trinity (96% occupancy rate) with an average rent of €564/sqm/year
- 2023 EBITDA at €2,199 Mn, back to 2019 level on a like-for-like basis
- €1.0 Bn6 in asset disposals in Europe and the US leading to a total contribution to net debt reduction from disposals of €5.1 Bn6 since 2021
- 2023 IFRS Net Financial Debt reduced by -€950 Mn to €19.8 Bn7
- €13.6 Bn8 of liquidity covering more than 36 months of refinancing needs
- c. 90% of committed pipeline to be delivered in 2024 including 172,200 sqm mixed-use project Westfield Hamburg-Überseequartier, opening on April 25, 2024
- Proposed cash distribution of €2.50 per share, to be approved by the AGM on April 30 and paid on May 16, 2024
- 2024 AREPS guidance of €9.65 - €9.80 reflects consistent underlying operational performance
Commenting on the results, Jean-Marie Tritant, Chief Executive Officer, said:
“In 2023, we delivered strong operational performance across all activities, supported by dynamic leasing activity and the positive effect of indexation. Our like-for-like Group earnings9 are now back at 2019 levels, ahead of the 2024 target we set ourselves at our 2022 Investor Day.
We made further deleveraging progress in challenging investment market conditions, securing 11 transactions totalling €1 billion. Total disposals since 2021 have contributed €5.1 billion to our net debt reduction, and we remain committed to further deleveraging.
The success of our hybrid exchange offer and the oversubscribed €750 million green bond issue demonstrate the continued confidence of debt investors.
In October, we announced a comprehensive evolution of our Better Places roadmap, which included SBTi-approved net-zero targets, as well as new targets on waste reduction, water conservation and biodiversity.
The robustness of the Group’s business, visibility on our operating performance, delivery of major development projects in 2024, and strong liquidity position, give us confidence to reinstate shareholder distributions. We will propose a cash payment this year of €2.50 per share, for approval at our AGM in April, and will significantly increase the distribution in future years as we make further progress on our strategic and financial objectives.”
For further information, please contact:
Investor Relations
Meriem Delfi
77
Gonzague Montigny
84
Media Relations
UK/Global:
Cornelia Schnepf – Finelk
8
France:
Sonia Fellmann – PLEAD
30
About Unibail-Rodamco-Westfield
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 72 shopping centres in 12 countries, including 38 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 €2.5 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 December 31, 2023).
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.
For more information, please visit
1 IFRS Net result of -€1,629.1 Mn, including +€1,408.9 Mn of Recurring Net Result.
2 Subject to approval by Annual General Meeting of Unibail-Rodamco-Westfield SE.
3 Please refer to the guidance in page ix for further detail.
4 Shopping Centres Lfl NRI excluding airports.
5 At 100%.
6 On an IFRS basis, including disposals and foreclosures completed or secured by February 8, 2024.
7 Proforma for the disposals secured until February 8, 2024.
8 On an IFRS basis, as at December 31, 2023.
9 EBITDA.
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