Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — FY2023 Earnings Presentation
51 slides from Unibail-Rodamco-Westfield's earnings presentation, February 2024
Slide 1: Full-Year Results
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Slide 2: FY-2023 Overview
FY-2023 OVERVIEW JEAN-MARIE TRITANT CEO Live boxing weigh-in, Westfield London, March 2023
Slide 3: 2023: strong operational performance across all activities
2023: strong operational performance across all activities Strong operations across Shopping Centres, Offices and Convention & Exhibition supported by dynamic leasing activity and indexation 2023 AREPS at €9.62/share, above guidance Continued deleveraging with 11 transactions secured in 2023 for €1.
Slide 4: 2023 Financial Highlights
2023 Financial Highlights +6.7% +3.3% €950 Mn 9.3x LFL EBITDA(1) AREPS IFRS NET DEBT NET DEBT TO EBITDA vs. FY-2022 vs. FY-2022 REDUCTION(2) vs. 9.6x at FY-2022 vs. December 31, 2022 1. Excluding the impact of disposals, pipeline, DD&C and FX 2. Including disposals secured by February 8, 2024 2023 F
Slide 5: Strong performance in Shopping Centre operating metrics
Strong performance in Shopping Centre operating metrics Sales & footfall(1) Vacancy rate(2) MGR signed(3) MGR uplift(3) in € Mn +6.4% -110 bps 421 449 +6.2% +6.8% Tenant sales vs. FY-2022 352 27% 22% vs. FY-2022 19% 6.5% 6.3% 78% +4.9% 81% 73% Footfall 5.4% 5.4% FY-2019 FY-2022 FY-2023 vs. FY-2022 1
Slide 6: Continued footfall and tenant sales improvement
Continued footfall and tenant sales improvement EUROPE(1) UNITED STATES(1) Shopping Centres Flagships +7.5% +5.2% +4.8% +4.0% +3.1% +2.3% +3.0% National Sales Indices(2) National Sales Indices(2) Footfall vs. FY-2022 Sales vs. FY-2022 Footfall vs. FY-2022 Sales vs. FY-2022 vs. FY-2022 vs. FY-2022 Sa
Slide 7: Tenant sales supported by core & experience-led sectors
Tenant sales supported by strong performance of both core & experience-led sectors ENTERTAINMENT FITNESS FOOD & BEVERAGE FASHION HEALTH & BEAUTY +31.3% +29.4% +12.5% +4.8% +15.6% Sales vs. 2022 Sales vs. 2022 Sales vs. 2022 Sales vs. 2022 Sales vs. 2022 Representing ~55% of 2023 sales & ~63% of 2023
Slide 8: Retailer highlight: partnership with Rituals
Westfield London Retailer highlight: successful and growing long-term partnership with Rituals The success of our omnichannel strategy hinges on upsizing and upgrading our stores in the most performing locations to deliver exceptional customer experiences, which is why we highly value our partnershi
Slide 9: Dynamic leasing activity with longer-term deals and strong MGR uplift
Dynamic leasing activity with longer-term deals and strong MGR uplift INCREASE IN LONG-TERM DEALS AND DECREASING VACANCY MGR UPLIFT ABOVE INDEXATION 8.3% 8.9% 6.8% 7.0% 6.9% 6.5% 6.3% +10.6% 5.4% 5.4% On long-term deals 791 763 779 421 449 603 352 324 FY-2019 FY-2022 FY-2023(1) 444 199 12-36 months
Slide 10: Creating opportunity through retenanting
Creating opportunity through retenanting ~50k sqm of former El Corte Inglés units restructured Project in Westfield Parquesur and La Vaguada pre-let at 93% after only 12 months of works MGR Uplift vs. previous El Corte Inglés MGR +16% Successful reletting with leading brands 2023 FULL YEAR RESULTS 1
Slide 11: Strong growth of URW's retail media business
Strong growth of URW’s retail media business UNPARALLELED IN-MALL ATTRACTIVE TO ROBUST FINANCIAL MEDIA NETWORK IN EUROPE MAJOR BRANDS PERFORMANCE 1,735 ~1,300 +10% Screens(1) Physical activations in 2023 Average revenue per visit (+12% vs. 2022) vs. 2022 1st Global long-term deal on platform €53 Mn
Slide 12: Turning unrivalled footfall into a qualified audience
Turning unrivalled footfall into a qualified audience to boost revenue DISRUPTIVE VALUE-ADDED ANALYSES ONGOING ROLL-OUT AI TECHNOLOGY FOR RETAILERS & BRANDS IN EUROPE In-mall flow mapping algorithms URW data scientists provide to brands Live in 13 Westfield malls convert video footage into valuable
Slide 13: 90% of Committed Pipeline to be delivered in 2024
90% of Committed Pipeline to be delivered in 2024 H1-2024 H2-2024 CNIT EOLE, PARIS LA DÉFENSE WESTFIELD HAMBURG-ÜBERSEEQUARTIER LIGHTWELL, PARIS LA DÉFENSE COPPERMAKER SQUARE FINAL PHASE, LONDON URW SHARE 100% URW SHARE 100% URW SHARE 100% URW SHARE 25% €80 Mn €1,640 Mn €150 Mn €810 Mn 100% TIC 100%
Slide 14: Creating value through impact
Creating value through impact EVOLUTION OF OUR 1ST IMPACT STUDY(2) INTERNATIONAL BETTER PLACES ROADMAP(1) FOR A EUROPEAN RETAIL REIT RECOGNITION October 10, 2023 January 15, 2024 Future-proofing portfolio through Measuring the positive footprint SBTi-approved net-zero target shopping centres have at
Slide 15: Strong environmental performance supporting net-zero transition
Largest photovoltaic system installed on a shopping centre roof in Germany - Paunsdorf Center Strong environmental performance supporting URW’s net-zero transition 2023 ACHIEVEMENTS -43% -30% reduction in carbon emissions reduction in energy from Scopes 1, 2 & 3 intensity vs. -50% target in 2030(1)
Slide 16: Initial results of the Sustainable Retail Index
Initial results of the Sustainable Retail Index (SRI)(1) • Launched SRI to better understand the sustainable % ELIGIBLE REVENUE FOR FASHION RETAIL(1) FOR EUROPEAN URW ASSETS performance and commitments of tenants • Initially applied to Fashion Sector(2) Retail 37% URW’s tenants in Europe 14% Active
Slide 17: Successful financing transactions and continued confidence in credit quality
Successful financing transactions and continued confidence in Group credit quality 1ST OF ITS KIND OVERSUBSCRIBED HYBRID EXCHANGE OFFER(1) €750 MN GREEN BOND ISSUE June 2023 December 2023 7-year maturity and 4.125% fixed coupon Comprehensive solution for €1.25 Bn Perp-NC23 hybrid noteholders 6.1x ov
Slide 18: Continued focus on deleveraging
Continued focus on deleveraging 2021-2023 2024 & BEYOND €5.1 Bn disposals completed or secured since Committed to our deleveraging plan, 2021(1) including €1.0 Bn in 2023(1) including the radical reduction of US financial exposure Strong operational and financial performance with EBITDA(2), sales an
Slide 19: Proposed cash distribution in 2024 based on 2023 performance
Proposed cash distribution in 2024 based on 2023 performance STRONG OPERATING PERFORMANCE CASH DISTRIBUTION(1) DISCIPLINED CAPITAL ALLOCATION WITH TIGHT CAPEX CONTROL €2.50 PER SHARE COMMITMENT ON PAID IN ONE INSTALLMENT DELEVERAGING PLAN ON MAY 16, 2024(2) STRONG ACCESS TO FINANCING & LIQUIDITY POS
Slide 20: FY-2023 Financial Review
FY-2023 FINANCIAL REVIEW FABRICE MOUCHEL CFO Westfield Days, Westfield Mall of the Netherlands, Oct. 2023
Slide 21: 2023 Full-Year Results
2023 Full-Year Results € Mn FY-2023 FY-2022 Change LfI Change Shopping Centres 2,031 2,021 +0.5% +8.0%(1) Offices & Others 84 73 +14.5% +22.1% Convention & Exhibition 95 132 -27.9% n.m. Net Rental Income 2,210 2,226 -0.7% +6.1%(2) EBITDA 2,199 2,209 -0.4% +6.7%(3) Recurring Net Result (Group 1,409 1
Slide 22: Group EBITDA back to 2019 levels
Group EBITDA back to 2019 levels Group EBITDA since 2019 Like-for-like Group EBITDA(1) since 2019 (in € Bn) (in € Bn) 2.44 2.21 2.20 0.60 1.72 1.70 0.53 0.49 1.71 1.61 1.72 0.34 0.34 0.40 0.44 1.19 1.16 0.28 0.23 0.24 1.84 1.68 1.71 1.31 1.25 1.37 1.33 1.39 0.96 0.92 2019 2020 2021 2022 2023 2019 20
Slide 23: 2023 Full-Year AREPS at +3.3%
2023 Full-Year AREPS at +3.3% +€0.37 +€0.04 €9.62 €9.31 +€1.29 -€0.19 -€0.78 -€0.42 AREPS FY-2022 Disposals (1) Convention & Exhibition (at Lfl Shopping Centres General Expenses Hybrid coupon Others including Minority AREPS FY-2023 100%) & Offices & Financial Expenses interests & Taxes (2) 1. Impact
Slide 24: Strong Shopping Centre NRI performance
Strong Shopping Centre NRI performance Renewals, relettings, Doubtful Indexation net of departures SBR debtors Other Total Lfl Continental Europe +6.5% +0.4% +1.6% -1.4% +2.7% +9.7% United Kingdom +0.0% +5.1% -0.2% +0.2% +4.9% +10.1% Total Europe +5.9% +0.8% +1.4% -1.3% +2.9% +9.7% US Flagships +0.0
Slide 25: Proven ability to pass on inflation
Proven ability to pass on inflation Inflation / Indexation Rent collection As at February 1, 2024 9% 98% 98% 8% 97% 97% 7% 6% 5% 4% 3% 2% 1% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Inflation(2) Indexation URW NRI FY-2019 FY-2022 H1-2023 FY-2023 Indexation(1) Sales Based Rents
Slide 26: Bankruptcies at normal level after a record low in 2022
Bankruptcies at normal level after a record low in 2022 Bankruptcies Bankruptcies evolution in FY-2023 # of stores Cont. Europe UK US URW 391 # of stores 271 12 72 355 % of total units 4.1% 1.7% 2.6% 3.5% 250 261 198 210 211 In place 194 5 37 236 144 Replaced 33 4 35 72 102 101 71 In place / replace
Slide 27: Shopping Centre vacancy back to 2019 levels
Shopping Centre vacancy back to 2019 levels Vacancy levels(1) URW(2) Continental Europe UK US Flagships 10.6% 9.4% 9.3% 8.2% 7.7% 7.7% 7.0% 7.3% 6.9% 6.5% 5.4% 5.4% 4.0% 3.1% 3.2% 2.5% FY-2019 FY-2021 FY-2022 FY-2023 1. EPRA vacancy rate 2. Shopping Centres including US Regionals & CBD assets 2023 F
Slide 28: Strong letting with increased long-term deals and MGR
Strong letting with increased long-term deals and MGR FY-2023 MGR signed: €449 Mn +7% vs. FY-2022 | +28% vs. FY-2019 URW Continental Europe UK US 421 449 69 221 221 64 352 22% 191 24% 163 27% 21% 18% 46 18% 130 19% 16% 115 28% 5% 31% 37% 73% 78% 79% 82% 76% 82% 81% 84% 95% 72% 69% 63% FY-2019 FY-202
Slide 29: Positive MGR uplift supported by long-term deals
Positive MGR uplift supported by long-term deals Deals > 36 months All deals FY-2022 FY-2023 FY-2022 FY-2023 Continental Europe +7.4%(1) +4.4%(1) Continental Europe +5.9%(1) +2.7%(1) UK +3.6% +3.9% UK +3.5% +2.1% US +36.9% +32.7% US +8.1% +16.8% +13.1%(1) +10.6%(1) +6.2%(1) +6.8%(1) +15.0% +10.1% +1
Slide 30: Continued sustainable OCR integrating sales performance
Continued sustainable OCR(1) integrating sales performance Continental Europe UK US Flagships 19.9% 18.5% 15.5% 15.3% 11.7% 11.4% OCR FY-2019 OCR FY-2023 OCR FY-2019 OCR FY-2023 OCR FY-2019 OCR FY-2023 1. Occupancy Cost Ratio (“OCR”): (rental charges + service charges including marketing costs for t
Slide 31: Offices & Others: strong NRI growth
Offices & Others: strong NRI growth NRI (€Mn) FY-2023 FY-2022 Change Lfl Change France 66 54 +22.9% +37.9% Others 18 20 -8.3% -8.1% Total 84 73 +14.5% +22.1% 2023 FULL YEAR RESULTS 31 Trinity, Paris La Défense
Slide 32: Best-in-class office assets in the heart of La Défense
Best-in-class office assets in the heart of La Défense TRINITY LIGHTWELL 96% 80% occupancy rate pre-let to Converting an aging office into…. €564 H2-2024 average rent delivery date per sqm per year(1) …a state-of-the-art asset Highly awarded building -51% -53% 88% primary energy CO2 equivalent of st
Slide 33: Convention & Exhibition: 2023 NOI back to 2019 levels
Convention & Exhibition: 2023 NOI back to 2019 levels(1) Change vs. Change vs. € Mn FY-2023 FY-2022 FY-2019 FY-2022(2) FY-2019(1) Net Rental 95 132 95 -20.3% +22.6% Income Property Services & Other 36 58 62 -32.4% -31.1% Income(3) Total NOI 132 190 157 -24.3% -0.4% 1. Excludes triennial shows, the i
Slide 34: Convention & Exhibition: strong 2024 outlook
Convention & Exhibition: strong 2024 outlook HIGH LEVEL OF HOSTING KEY OLYMPIC & PARALYMPIC COMMITMENT FROM ORGANISATIONS & EVENTS ORGANISERS Paris Nord Villepinte (North Paris Arena) • Olympics: Boxing, Modern Pentathlon Fencing • Paralympics: Sitting Volleyball “Viparis will be an essential Paris
Slide 35: Cost discipline: continuous efficiency improvement
Cost discipline: continuous efficiency improvement beyond portfolio streamlining CONTINUOUS EFFICIENCY IMPROVEMENT NET ADMINISTRATIVE EXPENSES DOWN 18% OVER 2019-2023 €292 Mn Improved productivity and disciplined cost management €243 Mn €199 Mn ~ 60% ~ 40% Adaptation of URW organisation in line with
Slide 36: GMV evolution mainly reflects disposals and like-for-like valuations
GMV evolution mainly reflects disposals and like-for-like valuations €52,250 Mn +€1,400 Mn -€1,230 Mn -€2,003 Mn €49,574 Mn -€548 Mn -€295 Mn December 2022 Disposals CAPEX/Acquisitions/Transfers Lfl revaluation Non Lfl revaluation & Currency Effect December 2023 revaluation of shares NB: Figures may
Slide 37: EPRA NRV evolution
EPRA NRV evolution EPRA Net Reinstatement Value(1) (in € per share) €155.70 +€1.44 €146.70 +€10.14 -€1.15 -€13.48 -€5.95 December 2022 Lfl Asset Revaluation Non Lfl Asset Revaluation & Recurring Results (3) FX impact Other December 2023 Intangible Assets (2) 1. Hybrid securities are excluded from NR
Slide 38: Group shopping centre portfolio valuation
Group shopping centre portfolio valuation Lfl revaluation since Dec. 31, 2018(1) Continental Europe UK US URW (73% of GMV) (7% of GMV) (20% of GMV) +0.6% -1.3% -2.0% -0.6% -1.6% -2.0% -2.6% -4.2% -5.4% -4.7% -4.4% -4.0% -9.1% -8.5% -8.2% -7.4% -14.0% -12.6% -11.3% -26.3% Total US US Flagships(3) Tot
Slide 39: 2023 values reflect increasing Net Initial Yields and cash flow growth
2023 values reflect increasing Net Initial Yields and cash flow growth Net Initial Yield(1) Continental Europe UK US Flagships(3) 6.1% 6.2% 7.0% 5.7% 5.6% 5.4% 5.3% 4.8% 4.6% 4.9% 4.3% 4.2% 4.3% 3.8% 3.7% 5.3% 2018 2021 2022 2023 2023 2018 2021 2022 2023 2023 2018 2021 2022 2023 2023 CAGR CAGR CAGR
Slide 40: Risk premium at normalised level in Continental Europe
Risk premium at normalised level in Continental Europe Continental European Shopping Centres Potential Yield evolution Over last 15 years(1) 7.00% 550 6.00% 5.4% 5.2% 450 5.00% 350 4.00% 3.7% 3.00% 250 2.8% 2.00% 150 1.00% 50 0.00% -1.00% -50 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 URW Poten
Slide 41: Reduced development pipeline with limited committed capex post 2024
Reduced development pipeline with limited committed capex post 2024 €3.1 Bn €0.7 Bn -€0.7 Bn €2.5 Bn 90% €0.1 Bn of URW committed pipeline reduction by end of 2024 -€1.6 Bn €2.4 Bn €2.4 Bn -€0.5 Bn €0.3 Bn 86% €0.1 Bn pre-letting of 2024 retail €0.3 Bn FY-2022 Controlled projects FY-2023 2024 delive
Slide 42: Net debt reduction & improving net debt over EBITDA
Net debt reduction FY-2022(3) €20.7 Bn & improving net debt over EBITDA Disposals & Foreclosure -€0.8 Bn €24.2 Bn €24.3 Bn 48.4% Recurring Earnings -€1.4 Bn 47.1% 45.2% 45.6% 45.3% €22.6 Bn 41.8% CAPEX +€1.3 Bn 44.7% 43.3% 41.2% 41.8% 41.5% 38.6% Perp-NC23 Cash Amount +€0.2 Bn €20.7 Bn 14.6x 13.7x €
Slide 43: Hedging protects cost of debt
Hedging protects cost of debt Improved cost of debt evolution despite increasing Annual projection of average hedging amounts & fixed interest rates rate debt up to 2028 3.6% 3.9% (€ Bn – as at December 31, 2023) 3.2% 3.1% €35 Bn Proportionate Gross Debt(1) 2.5% €30 Bn 2.1% €28.9 Bn €25 Bn Proportio
Slide 44: Proven access to debt capital markets
Proven access to debt capital markets 1st Of its kind hybrid exchange offer by a corporate issuer 1st Green bond(1) since 2015 and first bond since 2021 ― Comprehensive solution for Perp-NC23 hybrid noteholders 65.5% Allocation – Eligibility Category: Construction of new buildings €750 Mn ― Par-for-
Slide 45: Over 36 months liquidity secured
Over 36 months liquidity secured Group liquidity In € Bn Debt maturities(1) fully covered over next 3 years As at December 31, 2026 €3.3 Bn debt raised in 2023 13.6 13.0 €10.0 Bn 12.1 11.4 66% 9.7 €4.5 Bn of 2023 raised debt being 8.1 Undrawn credit €6.3 Bn sustainable financings facilities(2) 9.7 €
Slide 46: Disciplined and focused strategic progress
Disciplined and focused strategic progress… STRONG REDUCED LIMITED STRENGTHENED Business performance Net debt & leverage Capex & General expenses Liquidity profile Tenant sales, rent collection and €5.1 Bn of disposals(2) achieved 90% of our €2.4 Bn committed Perp-NC23 hybrid extended vacancy back t
Slide 47: Reinstatement of distributions
Reinstatement of distributions ― Proposed cash distribution(1) of €2.50 per share(2) 2024 ― Paid in one installment on May 16, 2024 2025 & ― Distribution to significantly increase based on BEYOND operating performance, deleveraging progress and valuations evolution 1. Equity repayment, pursuant to a
Slide 48: Illustrative deleveraging trajectory over 2024-26 before disposals
Illustrative deleveraging trajectory (1) over 2024-26 before disposals Proforma IFRS LTV evolution over 2024-26(1) Revaluation sensitivity impact on proforma 2026 IFRS LTV incl. hybrid IFRS LTV IFRS LTV Incl. hybrid 48.6% 45.6% 46.0% 41.6% 43.7% +250 bps 41.6% -30 bps +220 bps 39.7% 37.9% 36.3% 41.8
Slide 49: Conclusion
CONCLUSION JEAN-MARIE TRITANT CEO Fashion Show “Talons Aiguilles”, Westfield Euralille, Oct. 2023
Slide 50: Guidance for 2024
Guidance for 2024 Main Assumptions — Consistent operating performance supported by retailers’ demand for premium space — Growing revenues from large-scale deliveries, 2024 Olympic and Paralympic Games’ positive impact for C&E and expanding retail media €9.65 to €9.80 — Ongoing cost discipline 2024 A
Slide 51: URW.COM
y UNIBAIL-RODAMCO-WESTFIELD URW.COM
Unibail-Rodamco-Westfield — FY2023 Earnings Presentation on 6ix