- Tenant sales and footfall in URW's European shopping centres up
by +2.3% (+3.6% for Flagships) and +2.0%, respectively; US
specialty sales per sq. ft up by +5.5% (+5.6% for Flagships);
- More than 55% of the EUR3 Bn disposal programme announced in
December 2017 achieved already;
- URW expects the Adjusted Recurring Earnings per Share for 2018 in
the range of EUR12.75 - EUR12.90
Paris, Amsterdam, Oct 26, 2018 - (ACN Newswire) - Financial
information as at September 30, 2018
1. Turnover
The proportionate turnover of Unibail-Rodamco-Westfield ("URW" or
the "Group") for the first nine months of 2018 amounted to
EUR2,164.3 Mn, up +37.9% mainly due to acquisition of Westfield
Corporation ("WFD") by Unibail-Rodamco ("UR").
https://bit.ly/2D1Zuh7
2. Gross Rental Income
The proportionate Gross Rental Income (GRI) of the Shopping Centre
division amounted to EUR1,605.3 Mn for the first nine months of
2018, an increase of +40.2% (+3.6% on UR's perimeter prior to the
acquisition of WFD). The Continental European rental growth was
partially offset by the impact of the disposal of non-core shopping
centres in the Nordics (Eurostop Arlanda, Arninge Centrum and
Eurostop Orebro) in 2017 and in Spain (Bahia Sur, Vallsur, El Faro
and Los Arcos) in 2018. The performance of Central Europe was
boosted by the delivery of Wroclavia, the extension of Centrum
Chodov, and the acquisition of Metropole Zlicin in 2017. GRI from
the US and UK reflects the contribution from WFD since June
2018.
The GRI of the Office division amounted to EUR115.5 Mn, up by +2.9%
compared to the first nine months of 2017. The rental income of
offices in France decreased by -0.7%, due to the disposal of the So
Ouest Plaza office building in 2017.
The GRI of the Convention & Exhibition division increased by
+6.8% to EUR148.0 Mn due to the triennial Intermat exhibition and
the opening of Pavilion 7 in Porte de Versailles.
https://bit.ly/2PqhSWs
Major events
1. Tenant sales and footfall
Tenant sales(1) through September 30, 2018, in the Group's European
shopping centres(2) were up by +2.3% for the Group and +3.6% for
Flagships(3) compared to the same period in 2017, with strong
performance in Central Europe, France and the Nordics.
For the US, specialty sales per sq. ft(4) for the period through
September 30 were up by +5.5% on a trailing 12-month basis.
Through August, tenant sales in Europe (+2.4%) outperformed the
aggregate national sales indices(5) (which for a number of the
Group's regions include online sales) by +186 bps, reflecting the
superior quality and appeal of the Group's European shopping
centres. In France, tenant sales through August outperformed the
IFLS(6) and CNCC(7) indices by +343 and +493 bps, respectively.
Footfall(8) in European shopping centres grew by +2.0% through
Q3-2018. The UK, France, the Nordics and Central Europe all posted
strong footfall growth of +4.6%, +3.8%, +3.6% and +3.4%,
respectively.
While overall tenant sales growth in the Group's shopping centres
was solid, some retailers are facing significant challenges in
dealing with the changing retail environment. Many focus carefully
on all elements of their business, including new store openings.
Consequently, negotiations on lease terms are generally taking
longer.
2. Post-closing events
On October 15, 2018, URW entered into an agreement with Singapore's
sovereign wealth fund GIC for the sale of Tour Ariane in La
Defense. The net disposal price ("NDP") of EUR464.9 Mn represents a
premium to the book value as at June 30, 2018.
Together with the disposals announced earlier this year, the Group
has now disposed or entered into agreements to dispose of a total
of 8 assets(9) representing a total acquisition cost of EUR1,920
Mn, a blended net initial yield of 4.5% and a weighted average
premium of +8.1% to their book value as at June 30, 2018. The NDP
to URW of these disposals is expected to amount to EUR1,787 Mn.
More than 55% of the approximately EUR3 Bn European disposal
programme to be accomplished over the next several years announced
on December 12, 2017, has already been agreed or completed since
June 30, 2018.
3. Outlook
The closing of the WFD acquisition on June 7, 2018, and the impact
of the cost synergies realized through June 30 will be accretive
for the year 2018. Allowing for the impact of the accelerated
disposals, with almost EUR1.8 Bn already agreed or completed YTD
(-11 cents), and the shift of the recognition of development
profits (timing differences) on projects in London and California
(-17 cents), the Group expects its Adjusted Recurring Earnings per
Share to be in the range of EUR12.75 - EUR12.90.
4. Financial schedule
The next financial events on the Group's calendar will be:
February 13, 2019: 2018 Full-Year results, 2019 guidance and
medium-term outlook (after market close)
March 29, 2019: Interim dividend
April 24, 2019: 2019 1st quarter results (after market close)
May 17, 2019: AGM Unibail-Rodamco SE
June 13 & 14, 2019: Investor Days
July 5, 2019: Final dividend, subject to approval by the AGMs of
Unibail-Rodamco SE and WFD Unibail-Rodamco N.V.
For further information, please contact:
Investor Relations
Samuel Warwood
Maarten Otte
+33 1 76 77 58 02
Maarten.otte@urw.com
Media Relations
Tiphaine Bannelier-Suderie
D: +33 1 76 77 57 94
Tiphaine.Bannelier-Suderie@urw.com
About Unibail-Rodamco-Westfield
Unibail-Rodamco-Westfield is the premier global developer and
operator of flagship shopping destinations, with a portfolio valued
at EUR63.7 Bn as at June 30, 2018, of which 86% in retail, 8% in
offices, 5% in convention & exhibition venues and 1% in
services. Currently, the Group owns and operates 97 shopping
centres, including 56 flagships in the most dynamic cities in
Europe and the United States. Its centres welcome 1.2 billion
visits per year. Present on 2 continents and in 13 countries,
Unibail-Rodamco-Westfield provides a unique platform for retailers
and brand events, and offers an exceptional and constantly renewed
experience for customers.
With the support of its 3,700 professionals and an unparalleled
track-record and know-how, Unibail-Rodamco-Westfield is ideally
positioned to generate superior value and develop world-class
projects. The Group has the largest development pipeline in the
industry, worth EUR12.5 Bn.
Unibail-Rodamco-Westfield distinguishes itself by its Better Places
2030 agenda, that sets its ambition to create better places that
respect the highest environmental standards and contribute to
better cities.
Unibail-Rodamco-Westfield stapled shares are listed on Euronext
Amsterdam and Euronext Paris (Euronext ticker: URW), with a
secondary listing in Australia through Chess Depositary Interests.
The Group benefits from an A rating from Standard & Poor's and
from an A2 rating from Moody's.
For more information, please visit www.urw.com
Visit our Media Library at https://www.mediacentre.urw.com
20181025 URW PR - Q3 2018:
http://hugin.info/136618/R/2222272/870226.pdf
Source: UNIBAIL-RODAMCO SE
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