Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — H1 2022 Earnings Presentation
43 slides from Unibail-Rodamco-Westfield's earnings presentation, 2022
Slide 1: Half-Year Results
HALF-YEAR RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: H1-2022 Overview
H1-2022 OVERVIEW JEAN-MARIE TRITANT CEO Westfield Forum des Halles
Slide 3: A strong first half
A strong first half Sales exceeding 2019 levels, earlier than expected for Continental Europe, leading to increased SBR Strong leasing demand, retailers continue to expand selectively, while corporations select high quality and sustainable office buildings, reducing vacancy Recovery of the Conventio
Slide 4: Strong earnings performance and improving credit ratios
Strong earnings performance and improving credit ratios Net debt to EBITDA(1) Interest Coverage Ratio +48.0% EBITDA 16.6 6.7 €1,139.2 Mn in H1-2022 vs. 14.6 6.1 €769.6 Mn in H1-2021 5.9 5.7 13.7 10.5 4.6 4.5 9.9 11.0 8.5 3.5 8.5 3.5 3.3 +53.1% 2.9 Typical 2.0 covenant level AREPS €4.95 in H1-2022 vs
Slide 5: URW tenant sales and footfall
URW tenant sales and footfall United States Continental Europe United Kingdom As % of 2019 As % of 2019 As % of 2019 102% 110% 104% 86% 92% 89% 90% 89% 91% 94% 80% 81% Q1 Q2 Q1 Q2 Q1 Q2 2022 Monthly sales in $ Mn 2022 Monthly sales in € Mn 2022 Monthly sales in £ Mn 800 1,100 180 700 1,000 160 900 6
Slide 6: US Flagships tenant sales consistently outperform pre-COVID levels
US Flagships tenant sales consistently outperform pre-COVID levels Bubble size: 130% Sales (as% of 2019) % of total GMV 120% 74% 110% 100% 14% 90% 80% 12% Footfall(1) (as % of 2019) 70% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Regionals Central Business District(2) Flagships (1) No footfall data
Slide 7: Steady growth of US operations
Steady growth of US operations +14.7% $27.6 Mn 94% Retail Lfl NRI(1) Commercial Partnerships Rent collection (vs. H1-2021) (vs. $13.4 Mn in H1-2021 (vs. 80% for H1-2021 as at and $33.8 Mn in H1-2019) H1-2021 and 92% as at FY-2021) $34.2 Mn +23.1% 10.4% Sales Based Rent(1) MGR uplift for deals EPRA V
Slide 8: Strong performance of the European portfolio
Strong performance of the European portfolio +48.2% €25.2 Mn 96% Retail Lfl NRI Commercial Partnerships Rent collection (vs. H1-2021) (vs. €13.2 Mn in H1-2021 (vs. 70% for H1-2021 as at and €20.1 Mn in H1-2019) H1-2021 and 81% as at FY-2021) €24.1 Mn +8.6% 4.9% Sales Based Rent MGR uplift for deals
Slide 9: Leasing strategy supports higher activity and long-term rental value
Leasing strategy supports higher activity and long-term rental value Strong leasing demand Proportion of long- Short-term leases Regaining supply term deals increasing signed during COVID demand tension Number of deals drive SBR(1) supporting MGR uplifts In € Mn 55.5 1,218 1,201 1,177 H1-2021 H1-202
Slide 10: E-commerce trends position URW to gain market share
E-commerce trends position URW to gain market share Retailers expand ‘Drive-to-Store’ Headwinds for Online penetration in prime locations strategies pure online model decrease ― Retailers continue to ― Retailers start charging ― Higher logistics & ― UK online penetration expand in their for online r
Slide 11: URW is positioned to outperform
URW is positioned to outperform Well-connected locations Affluent customers Greater spending capacity URW’s assets are located in large cities URW’s assets are located in the Proportion of non-discretionary spendings with good public transportation networks wealthiest catchment areas: lower in wealt
Slide 12: Creating new destinations
Creating new destinations Repurposing: Retenanting: Reshaping: Westfield London Parquesur Westfield Forum des Halles Converting House of Fraser in new uses, Improving appeal of retail offer by replacing Improve layout and design of Rue de la Boucle The Ministry will offer premium co-working El Corte
Slide 13: Overall stable development pipeline
Overall stable development pipeline Deliveries in H1-2022 GLA 13,101 sqm €3.2 Bn +€0.3 Bn €3.3 Bn Letting 100% -€0.2 Bn €0.8 Bn 100% TIC €80 Mn URW Ownership 100% €1.9 Bn Delivered -€1.4 Bn May 2022 €0.7 Bn Gaîté Montparnasse Office €2.5 Bn GLA 16,838 sqm €1.2 Bn Letting 80% 100% TIC FY-2021 Deliver
Slide 14: URW is a key player in urban regeneration projects
URW is a key player in urban regeneration projects Committed Residential GLA(1) Controlled Committed GLA 42,950 sqm 34,587 sqm Offices GLA 48,956 sqm Pre-Letting(2) Pre-letting(2) 80 % 29%(3) Retail GLA URW Ownership 95,279 sqm 100% Pre-letting(2) 61% Opening H2-2024 Hotels GLA 27,923 sqm Sustainabl
Slide 15: Further progress on disposals
Further progress on disposals European disposal programme 2021-22 Radical reduction of US financial exposure by 2022-23 ― €3.2 Bn of €4.0 Bn target agreed ― Regionals: Continued streamlining of portfolio or completed (€1.2 Bn executed • Sale of Promenade Mall land plot for $150 Mn (at 100%) or secur
Slide 16: H1-2022 Financial Review
H1-2022 FINANCIAL REVIEW FABRICE MOUCHEL CFO Westfield Glories
Slide 17: H1-2022 Results
H1-2022 Results € Mn H1-2022 H1-2021 Change Lfl Change Shopping Centres 1,037 753 +37.7% +37.6%(1) Offices & Others 34 32 +6.5% +28.0% Convention & Exhibition 68 0 n.m. n.m. Net Rental Income 1,139 785 +45.0% +43.8%(2) EBITDA 1,139 770 +48.0% Recurring Net Result (Group share) 711 472 +50.5% Recurri
Slide 18: H1-2022 AREPS up +53.1%
H1-2022 AREPS up +53.1% +€0.69 +€2.31 €4.95 COVID-19 -€0.92 -€0.09 +€1.25 rent relief +€0.15 Deliveries €3.24 Underlying +€0.91 performance -€0.28 AREPS Disposals Shopping Centres Convention & Taxes and Minority Others (2) AREPS H1-2021 Exhibition Interests (1) H1-2022 (at 100%) (1) Excluding minori
Slide 19: Strong NRI performance
Strong NRI(1) performance Renewals, Total Lfl relettings net excluding of departures COVID-19 COVID-19 & indexation SBR Other rent relief rent relief Total Lfl Continental Europe +0.6% +1.6% +10.8% +13.0% +36.7% +49.7% United Kingdom -6.1% +9.8% -6.3% -2.6% +37.5% +34.8% Total Europe -0.1% +2.4% +9.
Slide 20: Rent collection steadily improving
Rent collection(1) steadily improving As at July 21, 2022 Pre-COVID As previously 2021 levels Group reported H1 H1-2021 88% 84%(2) As reported at FY-2021 H1-2022 H2 H2-2021 95% 92%(2) Improvement FY FY-2021 92% 88%(2) 2022 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% Q1 Q1-2022 96% 93%(3) As reporte
Slide 21: Bankruptcies in H1-2022
Bankruptcies in H1-2022 Bankruptcies down -51% vs. H1-2021 Bankruptcies evolution # of stores Cont. Europe UK US URW 391 # of stores 98 2 2 102 % of total units 1.4% 0.3% 0.1% 0.9% 261 250 198 210 In place 73 0 1 74 Replaced 10 0 0 10 102 71 In place 85% 0% 50% 82% / replaced Vacant 15 2 1 18 H1-201
Slide 22: US and UK shopping centres vacancy levels decreasing in H1-2022
US and UK shopping centres vacancy levels decreasing in H1-2022 14.0% 12.2% 11.0% 10.6% 10.4% 9.7% 9.1% 8.9% 7.7% 7.0% 6.9% 5.4% 5.0% 4.0% 4.0% 2.5% Continental UK US Group Europe FY-2019 vacancy H1-2021 vacancy FY-2021 vacancy H1-2022 vacancy US Flagships(1) (1) Excluding CBD assets (Westfield San
Slide 23: Strong letting activity with increasing long-term deals and MGR signed
Strong letting activity with increasing long-term deals and MGR signed 1,201 leases signed with MGR of €211 Mn Continental Europe(1) UK US URW 211 188 31% 163 34% 110 114 46% 30% 33% 77 65 69% 57 53 66% 44% 40% 29 32 41% 54% 67% 70% 25 65% 13% 15% 56% 21% 60% 87% 85% 59% 79% 35% H1-2021 H2-2021 H1-2
Slide 24: Positive MGR uplift supported by long terms deals
Positive MGR uplift supported by long terms deals Deals >36 months All deals +11.8% +1.8% +2.7% +1.3% H1-2021 FY-2021 H1-2022 -5.2% -6.5% H1-2021 FY-2021 H1-2022 H1-2021 FY-2021 H1-2022 Continental Europe +2.2% +4.6% +12.1% -2.2% -0.5% +8.6% United Kingdom -1.3% -3.7% +0.3% -2.7% -7.6% -3.6% United
Slide 25: Offices & Others: NRI driven by Trinity
Offices & Others: NRI driven by Trinity NRI (€ Mn) H1-2022 H1-2021 Change Lfl Change France 25.4 18.6 +36.5% +55.9% Others 8.5 13.3 -35.6% -8.9% Total 34.0 31.9 +6.5% +28.0% NB: Figures may not add up due to rounding 2022 HALF YEAR RESULTS 25 Trinity, La Défense
Slide 26: Convention & Exhibition: strong recovery of activity in H1
Convention & Exhibition: strong recovery of activity in H1 Strong recovery 2022 Back to “normal” H1-2023 Agricultural Show, Paris Expo Porte de Versailles Paris Olympics From H2-2023 High level of commitment from organisers 272 526 83% 103% events in H1-2022 bookings 2022(1) of 2018 pre-bookings vs.
Slide 27: Convention & Exhibition: NOI trending towards pre-COVID levels
Convention & Exhibition: NOI trending towards pre-COVID levels Change Change N vs. H1-2018 € Mn H1-2022(1) H1-2021 H1-2018 N vs. H1-2018 restated(2) Net Rental Income 68 0 49 +40.0% +4.0% Property Services & Other Income 27 -2 32 -17.0% -22.6% Net Operating Income 95 -2 81 +17.3% -6.8% (1) Includes
Slide 28: GMV slightly up driven by currency effect
GMV slightly up driven by currency effect +€902 Mn €54,981 Mn €54,473 Mn +€376 Mn -€172 Mn -€381 Mn -€216 Mn December 2021 Disposals CAPEX / Lfl revaluation Non Lfl revaluation & Currency Effect June 2022 Acquisitions / revaluation of shares Transfers 2022 HALF YEAR RESULTS 28
Slide 29: Group shopping centre portfolio valuation stable
Group shopping centre portfolio valuation stable Lfl revaluation since Dec. 31, 2018(1) Revaluation 2019 Revaluation 2020 Revaluation 2021 Revaluation H1-2022 Continental Europe UK US (68% of GMV) (5% of GMV) (26% of GMV) URW 0.8% -1.3% -2.0% -1.4% -1.6% -2.0% -0.3% -3.1% -4.4% -9.1% -8.5% -8.2% -14
Slide 30: The Group's debt is fully hedged
The Group’s debt is fully hedged Annual projection of average hedging amounts and fixed rate debt up to 2026 €30 Bn Pro-forma(1) €25 Bn proportionate Net Financial Debt €23.4 Bn €20 Bn €15 Bn €10 Bn €5 Bn €0 Bn H2-2022 2023 2024 2025 2026 Debt kept at fixed rate Macro hedges (swaps & caps) Optional
Slide 31: Marginal sensitivity to interest rates evolution
Marginal sensitivity to interest rates evolution Impact of increase in rates(1) on 2022 recurring financial expenses H1-2022 Financial expenses: €249.9 Mn +€0.2 Mn +€10.7 Mn 50 bps 75 bps 100 bps -€10.7 Mn -€16.1 Mn -€16.3 Mn -€0.2 Mn -€0.8 Mn -€1.6 Mn Interest rates: -25 bps +25 bps YTD(2) +77 bps
Slide 32: EPRA NRV evolution
EPRA NRV evolution (1) EPRA Net Reinstatement Value (in € per share) +€2.99 +€4.95 €163.40 €159.60 -€2.30 -€0.65 -€1.19 December 2021 Lfl Asset Revaluation Non Lfl Asset Recurring Results FX impact Other (3) June 2022 Revaluation & Intangible Assets(2) (1) Hybrid securities are excluded from NAV (2)
Slide 33: LTV improving on net debt reduction
LTV improving on net debt reduction 52% €24.2 €24.2 24.0 48.4% FY-2021 €22.6 Bn(3) 47.1% 45.8% 47% 45.3% 44.7% Disposals(4) -€0.6 Bn 41.8% 43.3% 23.0 42.0% 41.5% €22.6 42% Recurring Earnings -€0.7 Bn 38.6% €22.1 22.0 FX +€0.3 Bn 37% €21.6 CAPEX +€0.4 Bn 21.0 32% 2019 2020 2021 H1-2022 H1-2022 (1) pr
Slide 34: Continued credit market access and strong liquidity
Continued credit market access and strong liquidity Mortgage debt raised 8.5 year average debt maturity(3) €2.7 Bn pro-forma cash on hand(4) €2.3 Bn maturities in next 18 months(5) €302 Mn €700 Mn(1) 7-year maturity 7-year maturity Spread: 125 bps Spread: 160 bps(2) €9.9 Bn undrawn credit facilities
Slide 35: Deleveraging plan on track
Deleveraging plan on track Objectives Complete €4.0 Bn Controlled CAPEX Radically reduce deployment with European disposal financial exposure focused development programme to US in 2022/2023 pipeline and reduced (2021/2022) cost base Suspend dividend payment for fiscal H1-2022 progress years 2020, 2
Slide 36: Further progress on European disposal programme
Further progress on European disposal programme Disposals in 2022(1): €1.2 Bn(2) 5.5% NIY +2.9% vs. last appraisal Full disposal: Gera Arcaden Almere Centrum Carré Sénart Shopping Parc Villeneuve 2 European programme overview €3.2 Bn(1) disposals 4.9% NIY +5.1% vs. last appraisal Figures may not add
Slide 37: Conclusion
CONCLUSION JEAN-MARIE TRITANT CEO Westfield Forum des Halles
Slide 38: Increased guidance
Increased guidance Key considerations: • Solid operational recovery achieved in H1-2022 notwithstanding a challenging macro-economic environment; • In view of the current economic environment: • The earlier than expected sales recovery experienced in Q2-2022 for 2022 Adjusted Continental Europe and
Slide 39: Confident outlook while continuing to monitor macro-economic developments
Confident outlook while continuing to monitor macro-economic developments Resilient Sustained recovery Positioned for future growth to macro-economic conditions ― Tenant sales recouped ― URW assets are well ― Direct and indirect 2019 levels, supporting connected and in the best protection against in
Slide 40: Appendix
APPENDIX Westfield Vélizy 2
Slide 41: Cost of debt and average debt maturity over time
Cost of debt and average debt maturity over time Average Cost of Debt Average Maturity (years) 3.9% 3.6% 8.4 8.6 8.5 3.4% 8.2 EUR (1) USD & GBP 1.5% 3.8% 7.2 7.5 2.9% 7.0 2.6% 6.5 2.2% 5.9 5.4 2.0% 2.0% 4.9 1.7% 4.5 1.6% 4.3 1.6% 1.4% 2010 2012 2014 2016 2018 2020 H1-2022 2010 2012 2014 2016 2018 20
Slide 42: Upcoming debt refinancing
Upcoming debt refinancing In € Bn 13.9 13.9 6.8 3.2 3.2 2.0 1.3 0.9 1.0 0-1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y >5Y Without undrawn credit lines and cash on hand With undrawn credit lines and cash on hand Nb: URW’s financial debt profile as at June 30, 2022. On an IFRS basis. Excluding from chart: €1,250 Mn H
Slide 43: URW.COM
y UNIBAIL-RODAMCO-WESTFIELD URW.COM
Unibail-Rodamco-Westfield — H1 2022 Earnings Presentation on 6ix