Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — FY2018 Earnings Presentation
100 slides from Unibail-Rodamco-Westfield's earnings presentation, Feb 13, 2019
Slide 1: 2018 Full-Year Results
turer t ty t UOUCLELEL UURTEL PELL t 1 2018 FULL-YEAR RESULTS yw UNIBAIL-RODAMCO-WESTFIELD
Slide 2: 2018 Full-Year Results
2018 FULL-YEAR RESULTS Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 3: A historic year
A historic year +7.2% AREPS growth Delivery of Westfield London (phase 2) +4.0% Lfl growth in Continental Europe Strong trading of deliveries Successful leasing and rotation €1.5 Bn invested in capital expenditures Synergies above €2.0 Bn target of disposals Initial 5-year business CSR strategy rewa
Slide 4: Completion of the acquisition of Westfield
On June 7, 2018, Unibail-Rodamco (“UR”) announced it had completed the acquisition of Westfield Corporation (“WFD”), to create Unibail-Rodamco-Westfield (“URW” or “the Group”), the premier global developer and operator of flagship shopping destinations. URW combines two of the strongest and most res
Slide 5: The world's premier developer and operator of flagship shopping destinations
The world’s premier developer and operator of Flagship shopping destinations As at December 31, 2018 Europe United States URW GMV (€ Bn)(1) 49.4 15.8 65.2 Countries(2) 12 1 13 Shopping Centres 64 29 93 Flagships(3) 41 15 56 - % of retail GMV 89 83 87 - Average footfall (Mn) 17 13 16 Portfolio by seg
Slide 6: URW owned and operated 93 shopping centres in 13 countries
As at December 31, 2018, URW owned and operated 93 shopping centres in 13 countries, of which 56 are Flagships in the most dynamic cities in Europe and in the United States. In 2018, URW’s assets attracted circa 1.2 billion visits. The Group’s total proportionate portfolio, including its services bu
Slide 7: Financial Results
FINANCIAL RESULTS Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 8: 2018 Full Year Results
2018 Full Year Results € Mn FY-2018(1) FY-2017 Growth Lfl Growth(2) Shopping Centres 1,916 1,400 +36.9% +4.0% Offices 143 141 +1.3% +4.5% Convention & Exhibition 102 96 +6.2% +4.0% Net Rental Income 2,161 1,637 +32.0% +4.0% Recurring Net Result (Group share) 1,610 1,202 +33.9% Recurring EPS(3) 13.15
Slide 9: Going Concern NAV at €233.90 per share
Going Concern NAV stood at €233.90 per share as at December 31, 2018, an increase of +€14.70 (+6.7%) compared to December 31, 2017. This was the sum of: an increase of +€23.18 per share; the impact of the payment of the 2018 dividend of -€10.80; and the positive impact of the +€2.32 mark-to-market o
Slide 10: Operational Highlights
OPERATIONAL HIGHLIGHTS Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 11: Strong retail NRI growth
Strong retail NRI growth Net Rental Income (€ Mn) FY-2018(1) FY-2017 Growth Lfl Growth(2) France 651 618 +5.3% +4.5% Central Europe 212 174 +21.7% +5.5% Spain 155 161 -3.6% +2.8% Nordics 141 146 -2.9% +4.9% Austria 108 103 +4.3% +4.9% Germany 140 136 +2.7% +2.7% The Netherlands 59 62 -4.4% -3.5% Tot
Slide 12: UR total net change in NRI
The UR total net change in NRI amounted to +€65.9 Mn due to: +€39.5 Mn from the delivery of shopping centres or new units, predominantly in Central Europe (Wroclavia, Centrum Chodov and Arkadia), France (mainly the Carré Sénart and Parly 2 extensions and new units in Les Quatre Temps) and Spain (Glò
Slide 13: Consistent Lfl NRI growth above indexation
(1) Consistent Lfl NRI growth above indexation (Continental Europe) +5.0% +4.7% Average +4.3% Lfl growth +3.8% +3.9% +4.0% 4.0% +3.4% 2.6% 3.5% 2.6% 3.6% 3.0% 3.6% 3.1% 2.1% 1.4% 1.5% 0.8% 0.7% 0.3% 0.3% 2013 2014 2015 2016 2017 2018 2018 (2) Flagships Lfl growth excluding indexation Indexation 2018
Slide 14: Like-for-like NRI growth of +4.0%
The +4.0% like-for-like NRI growth (+5.0% for Flagships) reflects a doubling of indexation (+1.4%) vs. 2017, as well as the growth of +1.3% in renewals and relettings and “Other”. “Other” in France was +2.2%, as a result of reversal of provisions for doubtful debtors. The increase in “Other” in Cent
Slide 15: Dynamic changes in tenant mix
Dynamic changes in tenant mix… 1st in Sweden 1st in Austria 1st in mall 1st in mall 1st in France 1st in Germany in France in France 1st in France 1st in France 1st in mall 1st in Austria 1st in mall 1st in Germany 1st in Spain in the Netherlands in Sweden Parly 2, Mercedes-Benz 2018 FULL-YEAR RESUL
Slide 16: Leases signed with International Premium Retailers
With a strategy based on differentiation and exclusive retail destinations, UR’s leasing teams signed 173 leases(1) in standing assets with International Premium Retailers (IPRs(2)) (vs. 179), whose share in UR’s rotation reached 16.4%. (1) Excluding pipeline (2) IPR: retailer with strong and intern
Slide 17: Drives tenant sales growth
2.3% 2.4% … drives tenant sales growth… Nordics 8.2% 1.4% 2.7% Continental Europe -0.1% +3.8% +3.0% Germany Central Europe 1.7% +1.0% 3.4% Shopping Centres(1) Flagships(2) National Sales -2.0% Indices(3) -0.4% France Austria 3.9% 1.8% Spain 2018 FULL-YEAR RESULTS 10
Slide 18: Tenant sales through November 30, 2018
Through November 30, 2018, UR’s tenant sales increased by +3.0% and by +3.8% for Flagship centres, outperforming the aggregate national sales index by +205 bps and +283 bps, respectively. Excluding assets in a disposal process, UR’s tenant sales grew by +3.1%. In France, tenant sales increased by +3
Slide 19: And MGR uplift
… and MGR uplift (1) Leases signed(2): 1,319 Rotation rate(3): 11.5% 19.6% 18.2% Average 17.4% MGR uplift 15.3% 14.7% 14.4% 16% 11.7% (4) 2013 2014 2015 2016 2017 2018 2018 Flagships (5) 2018 FULL-YEAR RESULTS 11
Slide 20: 1,319 leases signed on standing assets
UR signed 1,319 leases on standing assets for €198.6 Mn of MGR, a slight decline vs. 2017 (1,431(6)), as some negotiations with retailers take more time, although the leasing pace accelerated in Q4. The average MGR uplift on renewals and relettings was +11.7% (+13.6%(7)), in line with UR’s target fo
Slide 21: Operating metrics WFD US and UK
Operating metrics WFD US and UK Speciality Occupancy (%)(1) Sales psf Growth (%)(2) Rental Spreads (%)(3) NOI Growth (%)(4) Comp NOI Growth (%)(5) United Kingdom 95.2 -2.9 +19.8 +8.6 +3.4 United States 95.6 +10.9 +7.5 +3.1 -1.6 Flagships 96.2 +12.0 +11.5 +6.7 -0.3 Regionals 94.8 +4.4 -1.6% -7.5 -4.7
Slide 22: United Kingdom and United States
United Kingdom: Overall tenant sales in the UK centres were up by +2.8%, particularly reflecting growth of +8.6% at Westfield London driven by the opening of the Phase 2 extension. Strong growth in sport (+6.8%) and dining (+4.5%) was partly offset by a decline in bags, footwear and accessories (-6.
Slide 23: Leasing with high profile retailers in the UK and US
Leasing with high profile retailers in the UK and in the US 1st in the US 1st in mall in the US 1st in the UK 1st in the UK 1st on the West Coast 1st in the UK 1st in the US 1st in the US 1st in Westfield Century City, Honey Birdette 2018 FULL-YEAR RESULTS 13
Slide 24: High profile retailers signed
The Group signed high profile retailers, including many firsts to the US market and/or firsts to URW’s portfolio, including: Hotel Chocolat’s first store in the US (Westfield Garden State Plaza); Warby Parker’s first store in a shopping centre in the New York metropolitan area (Westfield Garden Stat
Slide 25: Great retail is thriving!
Great retail is thriving! 2018 FULL-YEAR RESULTS 14
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Slide 27: Entertainment
Entertainment Westfield London, Exhibition Westfield Valley Fair, Icon X Theatre Westfield Century City, Dreamscape 2018 FULL-YEAR RESULTS 15
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Slide 29: Food & Dining
Food & Dining Westfield UTC, Din Tai Fung Westfield Century City, Del Frisco’s Westfield London, Ichiba 2018 FULL-YEAR RESULTS 16
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Slide 31: URW the preferred partner for DNVBs
URW the preferred partner for DNVBs(1) DNVBs in the US DNVBs in Europe +63% +46% 65 35 40 24 Westfield UTC, Warby Parker Les Quatre Temps, Jimmy Fairly 2017 2018 2017 2018 2018 FULL-YEAR RESULTS 17
Slide 32: Digital Native Vertical Brands
Continental Europe Furthermore, UR continued to curate Digital Native Vertical Brands: Daniel Wellington opened four stores in UR’s assets in 2018 and NYX Professional Make Up operated 21 stores in UR’s portfolio as at December 31, 2018. Finally, the Group enhanced the cross-fertilization of retaile
Slide 33: Strengthening the connection with our customers
Strengthening the connection with our customers (1) Unique events Loyalty Program Engaging the visitor CRM Solution 7 Mn Partner +65% # of shopping centres equipped 95% 63 (+70% YoY) 4 Mn E-mail campaign opening rate 22.8% (+280 bps vs. retail average) Les Quatre Temps, Mickey 90th anniversary Comin
Slide 34: Loyalty programme reached seven million members
UR’s loyalty programme reached seven million members, with three million new customers signed up in 2018. 95% of the new members came through websites and apps. In 2018, UR’s digital channels attracted 74 million interactions with: 53 million web sessions (stable); 21 million app sessions (8.9 milli
Slide 35: Unique events drive shopper preference
Unique events drive shopper preference Arkadia, Birthday CentrO, Christmas Fair Westfield World Trade Center, Nicky Minaj Concert Westfield London, 10th anniversary 2018 FULL-YEAR RESULTS 19
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Slide 37: Paris office market – increasing take-up
Paris office market – increasing take-up Paris region supply and take-up(1) Prime rent per district(2) (in Mn sqm) (€/sqm/year excl. VAT) 3.9 4.0 3.9 3.6 3.6 3.6 3.5 3.4 850 2.9 810 810 800 800 800 1.3 1.5 1.2 1.4 1.0 1.3 1.1 1.3 1.0 550 550 550 530 530 530 1.1 1.2 1.2 1.1 1.2 1.3 1.0 0.9 0.9 2010 2
Slide 38: Paris region take-up and supply
After a very strong performance in 2017, the take-up at the end of 2018 in the Paris region was down by -5% to 2.5 million sqm, in line with the 10-year average. The Inner Paris sector remains the most dynamic sector with 41.5% of the total take-up at 1,038,000 sqm, including 458,500 sqm in the Pari
Slide 39: Offices: strong like-for-like NRI growth
Offices: strong Like-for-like NRI growth Net Rental Income (€ Mn) 2018 2017 Growth Lfl Growth(1) France 118 124 -4.8% +3.7% Nordics 11 12 -11.1% +7.3% Others 6 5 +16.1% +9.6% US 8 Total 143 141 +1.3% +4.5% 2018 FULL-YEAR RESULTS 21 Majunga
Slide 40: Offices consolidated NRI
Consolidated NRI amounted to €134.3 Mn, a -4.6% decrease due primarily to the impact of disposals in 2017 and 2018, partially offset by good leasing activity. The decrease of -€6.5 Mn breaks down as follows: -€9.5 Mn mainly due to the impact of disposals in 2017 (So Ouest Plaza in October and the Ar
Slide 41: Favorable investment market in Paris
Favorable investment market in Paris 6.25% 6.25% Acquisition 5.75% 2001 4.75% 5.75% 4.00% Disposal 2018 3.75% Capital 8 3.00% Acquisition 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 Disposal 2018 Prime Office Yield Paris CBD Prime Office Yield La Défense Tour Ariane 2018 FULL-YEAR RESULTS 22
Slide 42: Disposals of Capital 8 and Tour Ariane
On November 8, 2018, URW announced the completion of the disposal of the Capital 8 office building, located in the central business district of Paris, to Invesco Real Estate, a global real estate investment manager. The NDP(1) of the transaction was €789 Mn. On December 18, 2018, the Group disposed
Slide 43: Convention & Exhibition
Convention & Exhibition Growth Growth € Mn FY 2018 FY 2017 2018/2017(1) FY 2016 2018/2016(1) Net Rental Income 102 96 +4.0% 103 -2.3% Property Services & Other Income(2) 65 50 +29.9% 62 +5.1% Recurring Net Operating Income 167 146 +13.3% 165 +0.6% Depreciation -13 -12 +7.9% -11 +15.7% Recurring Resu
Slide 44: Convention & Exhibition shows in 2018
The Convention & Exhibition business has a seasonal results pattern, with annual, biennial and triennial shows, and an uneven distribution of shows during the year. 2018 was characterized by the following shows: Annual shows: • The 55th edition of the International Agriculture show (“SIA”) attracted
Slide 45: Convention & Exhibition
Convention & Exhibition Growth in Congress sector Development projects at Porte de Versailles 2017 Opening of Paris Convention Centre 2019 New Hall 6 and hotels EASL 2018, Paris Convention Centre New Hall 6 Construction New Hall 6 # of congresses 90 Congress revenue # of congresses in +24.6% vs. 201
Slide 46: Porte de Versailles renovation works
The second phase (2017-2019) of renovation works on the Porte de Versailles site continued, with the construction of the new Pavilion 6 and two new hotels (Novotel & Mama Shelter) scheduled to open in H2-2019.
Slide 47: Better Places 2030: 2018 achievements
Better Places 2030 : 2018 achievements (1) PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 Better buildings Better connectivity Better communities Better collective power 100% of development projects 100% of standing assets UR for Jobs: CSR objectives extended to conducted Life Cycle equipped with EV charging •
Slide 48: The data communicated in this slide are under review by auditors. All items refer
(1) The data communicated in this slide are under review by auditors. All items refer to Continental Europe (2) In the common areas of owned & managed shopping centers (3) For owned and managed assets (4) For the owned and managed shopping centres for which the Group fully owns and manages the car p
Slide 49: URW's CSR strategy recognized
URW’s CSR strategy recognized ESG indices Member since Benchmarks Ranking/Rating (1) 2013 1st (2) 1st 2005 A 2017 “Top 10 Performers” (3) B- 2011 (4) Gold 2007 AAA 2018 FULL-YEAR RESULTS 26
Slide 50: Open partnerships and ESG recognition
In delivering Better Places 2030, UR also develops a favorable ecosystem through open partnerships with NGOs, cities, corporates, SMEs and start-ups. In 2018, the Group built strong partnerships with Joblinge in Germany, UNICEF in France and Childhood in Sweden. The Group also leveraged URW Link, it
Slide 51: Development
DEVELOPMENT Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 52: A flexible pipeline
A flexible pipeline €13 Bn(1) + €0.4 Bn €11.9 Bn Secured exclusivity - €1.5 Bn €1.4 Bn €9.2 Bn Secured - €2.7 Bn exclusivity €1.2 Bn Controlled €7.6 Bn Controlled €6.5 Bn Committed €2.9 Bn Committed €1.5 Bn FY-2017 Deliveries & changes New projects and others FY-2018 Invested to date To be invested
Slide 53: Development portfolio at €11.9 Bn
The Group’s development portfolio, with the addition of the WFD projects in the UK, the US and Italy was estimated to be €13.0 Bn at year-end 2017. The Group’s pipeline stood at €11.9 Bn(2) as at December 31, 2018, principally due to the following: The decision to dispose 75% of the Cherry Park resi
Slide 54: 2019 Office deliveries
2019 Office deliveries January 2019 Delivery H2-2019 January 2019 Delivery H2-2019 GLA Expected Cost(1) Office GLA Expected Cost(1) 47,000 sqm €210 Mn 49,000 sqm €340 Mn 2018 FULL-YEAR RESULTS 29
Slide 55: 12 projects to be delivered in 2019
12 projects representing a URW Expected Cost of ca. €1,560 Mn are to be delivered in 2019: Seven extension and renovation retail projects: the Carré Sénart and Vélizy 2 leisure extensions, the Westfield Topanga and Westfield Valencia renovations, and the Gropius Passagen, Parly 2 Cinema and Westfiel
Slide 56: Update on retail deliveries
Update on retail deliveries GLA GLA +47,000 sqm 88,000 sqm Expected Cost(1) Expected Cost(1) €990 Mn Aerial view of renovation project €570 Mn Aerial view of extension project URW ownership URW ownership 50% 100% Delivery: Delivery: H2-2019 H1-2020 Pre-Letting(2) Pre-Letting(2) ± 80% View of the Pla
Slide 57: Committed projects progress
The Group successfully completed important phases of the Committed projects: The renovation of the Westfield Valley Fair shopping centre, one of three phases of the current development project, was completed in October (a second phase being delivered in January 2019 with the ICON Cinema opening); Th
Slide 58: Reinventing city districts
Reinventing city districts Leveraging on key strengths to develop mixed use projects Exceptional, highly connected retail locations Unique know-how across retail, offices, Palisade at Westfield UTC Gaité Montparnasse residential, hotels and event spaces Agile approach for every location Flexible fun
Slide 59: Densification of the retail portfolio
As part of the annual portfolio review, the Group has made the strategic decision to significantly increase the densification efforts on its retail portfolio by adding office, residential, hotel and other “mixed-use” elements to its major Flagships locations, where relevant. The Group believes it ha
Slide 60: Reinventing city districts
Reinventing city districts Westfield Stratford City Westfield Rosny 2 Solna Cherry Park Apartments Dining Offices Resi Building Rights 1,224 8,000 sqm 12,000 sqm 30,000 sqm 2018 FULL-YEAR RESULTS 32
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Slide 62: Westfield Integration
WESTFIELD INTEGRATION Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 63: Integration update: H2-2018 achievements
Integration update: H2-2018 Achievements Implementation of organizational model Operating Management function in US & UK Digital, Commercial Partnerships & International Leasing roadmaps and teams First joint management convention Initial 5-Year Business Plan Review of development projects ongoing C
Slide 64: Integration Management Office
To manage the integration process, URW has set up an Integration Management Office (IMO), led by the Group Chief Resources Officer and the Group Chief Financial Officer with the support of McKinsey & Company. The integration is managed through dedicated workstreams, involving representatives from bo
Slide 65: Synergies
Synergies €115 Mn €100 Mn €40 Mn €40 Mn €40 Mn €75 Mn Closure of Sydney HQ Implementation of UR Target travel policies revenue synergies Spin-off of One Market €60 Mn €75 Mn €60 Mn Departure of WFD Senior Management Team Target synergies Realized annualized cost Revised target synergies as of Dec.17
Slide 66: Cost and revenue synergies
Cost synergies Following the realization of the cost synergies achieved as at June 30, 2018, the ramp-down of the Sydney office operations is almost complete, with most of the tasks now transferred to the US and the UK and to the Paris corporate office, or outsourced. The net expected run-rate cost
Slide 67: Roll-out of Westfield brand across Continental Europe
Roll-out of Westfield brand across Continental Europe Les 4 Temps Mall of Scandinavia Vélizy 2 Chodov Euralille Carré Sénart 2018 FULL-YEAR RESULTS 36
Slide 68: Westfield brand roll-out timing
The roll-out of the Westfield brand in Continental European Flagship assets will start in 2019, with the first ten centres to be simultaneously rebranded in September 2019 (in France, the Czech Republic, Poland and the Nordics), and eight additional centres in 2020. Each rebranding will be accompani
Slide 69: Financing & Capital Allocation
FINANCING & CAPITAL ALLOCATION
Slide 70: Long-term capital raised at attractive rates
Long-term capital raised at attractive rates Hybrid Euro Senior bonds 144A USD Bonds April €2.0 Bn 2.4%(1) May €3.0 Bn 1.3%(1) September $1.0 Bn 4.4%(1) €1,250 Mn Perp NC 5.5-year 2.125% €800 Mn 3-year 0.125% $500 Mn 10-year 4.125% €750 Mn Perp NC 8-year 2.875% €800 Mn 7.3-year 1.125% $500 Mn 30-yea
Slide 71: Financing following WFD acquisition
This year was further characterized by the completion of the WFD acquisition on June 7, 2018. UR took advantage of attractive market windows to raise €7,883 Mn of new senior debt and €2 Bn of hybrid securities. Following these issuances, the bridge loan of €6.1 Bn put in place in January 2018 to fin
Slide 72: Low cost of debt and record average maturity
Low cost of debt and record average maturity Average Cost of Debt Average Maturity (years) 3.9% 7.5 3.6% 7.2 7.0 3.4% 6.5 2.9% 5.9 2.6% 5.4 2.2% 4.9 4.5 4.3 1.6% 1.6% 1.4% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 FULL-YEAR RESULTS 39
Slide 73: Average cost of debt
URW’s average cost of debt (including seven months of WFD financial expenses) for the period was 1.6% (1.4% in 2017). This average cost of debt results from: Low coupon levels the Group achieved during the last years on its fixed rate debt; The level of margins on existing borrowings; The Group’s ac
Slide 74: Disposals well ahead of schedule
Disposals well ahead of schedule… ZT Lumen & Skylight Los Arcos Bahia Sur Tour Ariane Capital 8 Vallsur El Faro NDP(1) Premium(2) NIY(3) €2.0 Bn 8.9% 4.6% 2018 FULL-YEAR RESULTS 40
Slide 75: 2018 disposals of non-core assets
In 2018, the Group disposed of a number of non-core assets. On July 2, 2018, URW disposed of the Örebro hotel. On July 31, URW disposed of four shopping centres in Spain (El Faro, Bahia Sur, Los Arcos and Vallsur) for a Net Disposal Price (NDP)(1) of €449 Mn, representing a Buyer’s Net Initial Yield
Slide 76: Meaningful LTV reduction
… have achieved a meaningful LTV reduction -1.9% 38.0% 38.9% 37,0% 37.0% June 30, 2018 June 30, 2018 Net disposal impact December 31, 2018(2) restated(1) 2018 FULL-YEAR RESULTS 41
Slide 77: Loan-to-Value ratio of 37.0%
The Loan-to-Value (LTV) ratio was 37.0% (38.9%(3) as at June 30, 2018; 39.8% on a pro-forma basis and 33.2% for UR on a stand-alone basis, both as at December 31, 2017). The LTV as at December 31, 2018 of 37.0% (vs. 38.9% as of June 30, 2018) includes the reduction of debt through H2 disposals (ca.
Slide 78: Healthy credit ratios. Lowering LTV target
Healthy credit ratios. Lowering LTV target LTV(1) ICR(2) 60%(3) 6.1 41% 41% 5.9 40%(4) 4.6 4.6 30% 37% 37% 4.0 33% 3.8 3.5 30% (4) 2.5 3.5 25% 2.0(3) Typical convenant level Target range 2018 FULL-YEAR RESULTS 42
Slide 79: LTV ratio and new target range
As at December 31, 2018, the LTV ratio amounted to 37.0% (39.8% on a pro-forma basis and 33.2% for UR on a stand-alone basis, both as at December 31, 2017). The LTV as at December 31, 2018 of 37.0% (vs. 38.9%(5) as of June 30, 2018) includes the reduction of debt through H2 disposals (ca. €2.0 Bn),
Slide 80: LTV headroom sensitivity to NIY change
LTV headroom sensitivity to NIY change ∆ NIY -50 bps -25 bps 0 bps +25 bps +50 bps 7.2 3.4 0,0 GMV impact (in € Bn) -3.0 -5.7 LTV 33.2% 35.1% 37.0% 38.9% 40.8% Remaining €31 Bn €27 Bn €24 Bn €21 Bn €18 Bn Headroom(1) 2018 FULL-YEAR RESULTS 43
Slide 81: Remaining headroom (based on current portfolio + GMV impact) in portfolio valuation in €
(1) Remaining headroom (based on current portfolio + GMV impact) in portfolio valuation in € Bn before reaching a consolidated loan to value ratio of 60% (typical European bank covenants)
Slide 82: New disposal target: €6 Bn
New disposal target: €6 Bn €3.0 Bn €4.0 Bn €3.0 Bn €1.0 Bn €2.0 Bn Initial target Closed disposals Ongoing disposals Additional disposals Target disposals 2018-2020 2018 2019-2021 2018 FULL-YEAR RESULTS 44
Slide 83: Disposals and new LTV objective
The Group disposed of €2.0 Bn of offices and shopping centres in 2018 at a pace well ahead of its original expectations. The Group has decided to set a new Loan-to-Value ratio objective through the cycle of between 30 and 40%, down from between 35 and 45% previously. As part of its annual business p
Slide 84: Goodwill Allocation and NAV
GOODWILL ALLOCATION AND NAV Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 85: Westfield goodwill allocated and justified
Westfield goodwill allocated and justified €8,720 Mn €11,911 Mn €855 Mn €3,191 Mn €2,337 Mn Total purchase Book value Initial Intangibles (1) Remaining consideration of net assets acquired goodwill & others goodwill 2018 FULL-YEAR RESULTS 46
Slide 86: Westfield purchase price and intangibles
The purchase price for 100% of the outstanding stock of Westfield was €11,911.3 Mn, of which: €7,280.8 Mn represented by 38.3 million of URW’s stapled securities issued on June 7, 2018; and €4,630.5 Mn of cash (net of the gain on the Euro/US$ hedge entered into by UR prior to the closing of the Tran
Slide 87: NAV evolution
NAV evolution Recurring Going Concern Net Asset Value (1) EPS (in € per share) +€13.15 €233.90 Non Lfl €219.20 -€10.80 revaluation +€23.18 & intangible €210.72 assets(2) Asset +€2.32 revaluation +€1.51 +€1.68 Other(4) +€8.35 Rent effect(3) +€0.38 Yield effect(3) -€0.22 December 2017 Dividend Mtm of
Slide 88: EPRA NNNAV and Going Concern NAV
URW’s EPRA triple Net Asset Value (NNNAV) amounted to €210.80 per share as at December 31, 2018, an increase of +5.1%, or +€10.30, from €200.50 as at December 31, 2017. The Going Concern NAV (GMV based) came to €233.90 per share as at December 31, 2018, up by +6.7%, or +€14.70, compared to €219.20 a
Slide 89: Risk premiums remain high in Europe
Risk premiums remain high in Europe French Shopping Centres UK Shopping Centres US Shopping Centres +320 bps +290 bps +130 bps 7.4% 7.9% 5.7% 5.7% 6.4% 5.0% 6.4% 4.5% 4.3% 4.2% 4.0% 3.6% 4.2% 2.9% 1.4% 0.8% 2008 10 12 14 16 18 2008 10 12 14 16 18 2008 10 12 14 16 18 Appraisers’ Discount Rate (weight
Slide 90: Net Initial Yield definition
(1) Net Initial Yield (NIY): annualized contracted rent (including indexation) and other incomes for the next 12 months, net of operating expenses, divided by the asset value net of estimated transfer taxes and transaction costs (2) Estimated Yield in 2018 is the URW NIY, prior years based on publis
Slide 91: Outlook and Guidance
OUTLOOK AND GUIDANCE Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 92: Outlook: strategic priorities
Outlook Strategic priorities 2 phases Reduce leverage: €3 Bn additional disposals Review development projects to optimize capital and returns Join with capital partners on select projects Capital consolidation Continue integration Renewed AREPS growth Solid underlying growth Roll-out Westfield brand
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Slide 94: Outlook
Outlook 2019 Medium term 2018/2019 disposals ± -90 cents Streamlined portfolio Strong underlying growth Westfield transaction ± -50 cents Underlying growth +4% to +5% (1) 2019 Guidance: AREPS €11.80 - €12.00 2019-23 AREPS CAGR : +5% to +7% (1) (1) Rebased for the planned disposals 2018 FULL-YEAR RES
Slide 95: Impact of disposals and Westfield on 2019 AREPS
The €2 Bn of disposals in 2018 and those planned for 2019 will further increase the average portfolio quality and reduce leverage. This is expected to have a short-term impact on the 2019 AREPS of approximately -90 cents. The full effect in 2019 of the consideration to fund the Westfield Transaction
Slide 96: Dividend
Dividend 94%(1) 93% 91% 91%(2) 89% 90% 88% 89% 88% 87% 88% 87% 86% 12.92 12.05 11.24 10.92 10.46 10.22 9.60 9.19 9.27 9.03 8.52 10.80 10.80 10.80 10.20 7.86 9.60 9.70 8.90 8.40 8.00 8.00 8.00 7.50 7.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Pay-out ratio Dividend Per Share
Slide 97: Proposed 2018 dividend of €10.80 per share
For the fiscal year 2018, the Group expects to propose a cash dividend of €10.80 per stapled share for approval by the Annual General Meetings (AGMs) of Unibail-Rodamco SE to be held on May 17, 2019 and WFD Unibail-Rodamco NV to be held on June 11, 2019. The dividend payment schedule is expected to
Slide 98: Financial agenda
Financial agenda Q1 Results AGM WFD Unibail-Rodamco N.V. Final Dividend April 24, 2019 June 11, 2019 July 5, 2019 Interim Dividend AGM Unibail-Rodamco SE Investor Days (London) March 29, 2019 May 17, 2019 June 13-14, 2019 2018 FULL-YEAR RESULTS 53
Slide 99: Slide 99
Slide 100: The premier global developer and operator of flagship shopping destinations
THE PREMIER GLOBAL DEVELOPER AND OPERATOR OF FLAGSHIP SHOPPING DESTINATIONS URW.COM
Unibail-Rodamco-Westfield — FY2018 Earnings Presentation on 6ix