Financial information as at September 30, 2018
- Written by ACN Newswire
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").
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.
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 dividendApril 24, 2019: 2019 1st quarter results (after market close)May 17, 2019: AGM Unibail-Rodamco SEJune 13 & 14, 2019: Investor DaysJuly 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 RelationsSamuel Warwood Maarten Otte +33 1 76 77 58 02 [email protected][3]
Media Relations Tiphaine Bannelier-SuderieD: +33 1 76 77 57 94[email protected][4]
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.comVisit our Media Library at https://www.mediacentre.urw.com[5][6]
20181025 URW PR - Q3 2018: http://hugin.info/136618/R/2222272/870226.pdf [7]
Topic: Press release summary http://www.acnnewswire.com From the Asia Corporate News Network
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References
- ^ https://bit.ly/2D1Zuh7 (bit.ly)
- ^ https://bit.ly/2PqhSWs (bit.ly)
- ^ [email protected] (www.acnnewswire.com)
- ^ [email protected] (www.acnnewswire.com)
- ^ www.urw.com (www.urw.com)
- ^ https://www.mediacentre.urw.com (www.mediacentre.urw.com)
- ^ http://hugin.info/136618/R/2222272/870226.pdf (hugin.info)
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