Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — Unibail-Rodamco — H1 2015 Earnings Presentation
120 slides from Unibail-Rodamco-Westfield's earnings presentation, Jul 22, 2015
Slide 1: 2015 Half-Year Results
2015 HALF-YEAR RESULTS We only play to win
Slide 2: Disclaimer
DISCLAIMER Unibail-Rodamco S.E., a Société Européenne à Directoire et Conseil de Surveillance incorporated under French law, is a listed closed end property investment company. Unibail-Rodamco is registered with the French Authority Financial Markets (AMF) and the Dutch Authority Financial Markets (
Slide 3: Table of Contents
TABLE OF CONTENTS § 2015 Half-Year Financial Results and Valuation § Strong Operating Performance Delivering Results § Leveraging a Unique Portfolio § Germany Changing the Face of Retail § Fast Forward Innovation § Valuation § Ongoing Opportunistic Capital Recycling § Continuous Proactive Management
Slide 4: 2015 Half-Year Financial Results and Valuation
2015 HALF-YEAR FINANCIAL RESULTS AND VALUATION La Part Dieu, Lyon 2015 HALF-YEAR RESULTS 1
Slide 5: 2015 Half-Year Results and Valuation
2015 HALF-YEAR RESULTS AND VALUATION % Like-for-like in € Mn HY-2015 HY-2014 % Growth Growth(1) Shopping centres 582 590 -1.4% +4.0% Offices 84 83 +1.9% -0.8% Convention & Exhibition 59 46 +28.7% +28.7% Net Rental Income 725 719 +0.9% +5.3% Recurring Net Result (Group share) 528 539 -2.0% Recurring
Slide 6: Recurring EPS and going concern NAV commentary
§Recurring Earnings per Share (recurring EPS) came to €5.37 in H1-2015, representing (i) an underlying growth of +8.4% from the recurring EPS for H1-2014 rebased for the disposals in 2014 and January 2015 (€4.88), and (ii) +1.6% from the acquisition of the mfi stake from PWREF in July 2014. §Reporte
Slide 7: Robust recurring EPS growth after 2014 disposals
ROBUST RECURRING EPS GROWTH AFTER 2014 DISPOSALS Evolution of H1-2015 Recurring EPS (€ per share) €5.52 +1.6% €5.37 +8.4% €4.88 -11.6% H1-2014 REPS 2014 disposals (1) Rebased H1-2014 EPS Underlying growth mfi impact (2) H1-2015 3
Slide 8: Recurring EPS commentary
§Recurring Earnings per Share (recurring EPS) came to €5.37 in H1-2015, representing (i) an underlying growth of +8.4% from the recurring EPS for H1-2014 rebased for the disposals in 2014 and January 2015 (€4.88), and (ii) +1.6% from the acquisition of the mfi stake from PWREF in July 2014. §Reporte
Slide 9: Strong Operating Performance Delivering Results
STRONG OPERATING PERFORMANCE DELIVERING RESULTS Euralille, Lille 2015 HALF-YEAR RESULTS 4
Slide 10: Strong shopping centres performance
STRONG SHOPPING CENTRES PERFORMANCE… Net Rental Income % Like-for-like in € Mn HY-2015 HY-2014 % Growth Growth(1) France 273 319 -14.5% +2.1% Spain 76 72 +6.2% +12.3% Central Europe 74 71 +5.3% +5.6% Austria 46 44 +4.0% +4.0% Nordics 53 48 +8.7% +5.5% The Netherlands 34 36 -7.1% -2.3% Germany 26 N/A
Slide 11: Shopping centre net rental income commentary
§Total consolidated Net Rental Income (NRI)(1) of the shopping centre portfolio amounted to €581.9 Mn in H1-2015, a decrease of -1.4% from H1-2014 due to the impact of the disposals (-9.6%) made in 2014. The total net change in NRI amounted to -€8.4 Mn compared to H1-2014 due to: § +€26.9 Mn from ch
Slide 12: Despite lowest indexation ever
(1) ... DESPITE LOWEST INDEXATION EVER Like-for-like increase in NRI(2) of shopping centres +4.6% +4.7% +4.2% +3.9% +4.0% +3.8% 1.1% 2.6% 2.0% 3.6% Average 3.0% 3.6% Like-for-like growth above indexation +1.4% +240 bps 2.8% 0.8% 2.2% 2.1% 1.0% 0.8% 0.6% 0.4% 2009 2010 2011 2012 2013 2014 H1-2015 Lik
Slide 13: Like-for-like NRI growth commentary
§The like-for-like NRI(2) growth amounted to +€18.9 Mn, up +4.0%, 360 bps above indexation. §The +4.0% like-for-like NRI(2) growth for the Group in H1-2015 reflects the impact of low indexation (+0.4% only vs +0.9% in H1-2014), other income (+1.0% vs +0.5 % in H1-2014) and the good performance in re
Slide 14: Active leasing driving rental growth
ACTIVE LEASING DRIVING RENTAL GROWTH 21.4% 21% 19.4% 19.6% # Leases signed(1) 19% 676 18.4% 17% 16.1% 15.3% 15% 13% 11% Rotation rate(2) 9% 6.5% 7% 5% 2011 2012 2013 2014 H1-2015 MGR uplift Average 2011/H1-2015 Large malls MGR uplift(3) 19.5% 7
Slide 15: Leasing activity commentary
§Leasing activity was strong in H1-2015 with 676 leases signed with a Minimum Guaranteed Rent uplift(3) of +16.1% on renewals and relettings. The MGR uplift for large shopping centres(4) was +19.5%. The Group’s rotation rate(2) stood at 6.5% in H1-2015, in line with its objective to rotate at least
Slide 16: Offices: a cyclical market
OFFICES: A CYCLICAL MARKET Office take-up in the Paris Region(1) (in million of m2) H1 1.5 1.5 1.4 1.2 1.2 1.2 1.1 1.0 1.0 1.0 0.9 0.9 0.9 0.9 0.8 0.8 H1-2000 H1-2001 H1-2002 H1-2003 H1-2004 H1-2005 H1-2006 H1-2007 H1-2008 H1-2009 H1-2010 H1-2011 H1-2012 H1-2013 H1-2014 H1-2015 Current take-up near
Slide 17: Paris office take-up commentary
§With 876,960 m² rented(1) in H1-2015, the take-up in the Paris Region decreased by -25% compared to the same period in 2014. This represents almost the lowest take-up in the Paris Region(1) since 2003. In La Défense, take-up was down by -48% with approximately 50,700 m² rented(2). The Paris Central
Slide 18: Offices: stable performance in a tough market
OFFICES: STABLE PERFORMANCE IN A TOUGH MARKET Net Rental Income in € Mn HY-2015 HY-2014 % Growth % Like-for-like growth(1) France 75.1 71.4 +5.2% -1.2% Other 9.4 11.5 n.m +2.4% Total 84.5 82.9 +1.9% -0.8% 100% let So Ouest Plaza Final 7,274 m² let to L’Oréal SA 9
Slide 19: Offices commentary
Like-for-like NRI(1) was almost flat at -€0.6 Mn (-0.8%), mainly due to indemnities received last year from departing tenants in France. §18,906 m² were leased in standing assets in H1-2015, including 6,965 m² in France. Several renewals and relettings were signed in Tour Ariane (La Défense) and Iss
Slide 20: Convention & Exhibition: H1-2015 driven by Intermat
CONVENTION & EXHIBITION: H1-2015 DRIVEN BY INTERMAT EXHIBITION % Growth % Growth in € Mn HY-2015 HY-2014 2015/2014 HY-2013 2015/2013 Venues and Hotels Net Rental Income 59 46 +28.7% 46 +28.0% On site property services 27 18 +48.4% 19 +45.2% + share of the profit of associates Venues recurring Net Op
Slide 21: Convention & Exhibition shows commentary
§H1-2015 was characterized by the following shows: § Annual shows: § The “International Agriculture Show” (SIA) attracted 691,000 visitors, one of the best attendances in the past ten years; § The 2015 edition of the “Foire de Paris” attracted 563,500 visitors, including 120,000 visitors on May 8th
Slide 22: Leveraging a Unique Portfolio
LEVERAGING A UNIQUE PORTFOLIO Shopping City Süd, Vienna 2015 HALF-YEAR RESULTS 11
Slide 23: Redesigning the shopping centres
REDESIGNING THE SHOPPING CENTRES 2009 Actions 2011 Actions H1-2015 Disposed Disposed 95 shopping centres 26 74 shopping centres +17 72 shopping centres Acquired Acquired 77% 5 88% > 6 Mn visits(1) +8 95% > 6 Mn visits(1) > 6 Mn visits(1) NIY(2) Delivered NIY(2) Delivered NIY(2) 6.1% 0 5.5% +7 4.7% G
Slide 24: Footnotes on portfolio metrics
(1) In terms of gross market values, including values of shares in assets accounted for under equity method (2) Annualised contracted rent (including latest indexation) net of expenses, divided by the value of the portfolio net of estimated transfer taxes and transaction costs. Shopping centres unde
Slide 25: Retenanting: attracting innovative brands
RETENANTING: CONTINUOUSLY ATTRACTING INNOVATIVE BRANDS International Premium Retailer(1) signings(2) H1-2015 CAGR: 10.6% 88 1st store 1st store 1st store 79 in a shopping centre in Slovakia in a shopping centre 72 in Germany in Continental Europe 1st store 1st store 1st store in a shopping centre in
Slide 26: International Premium Retailer signings
§In H1-2015, the Group signed 88 leases with International Premium Retailers(1), compared to 79 in H1-2014(2), representing a +11.0% increase. This further demonstrates the appeal of the Group’s shopping centres and Unibail-Rodamco’s ability to continuously improve the retail offer of its malls with
Slide 27: Becoming the must-be partner to accelerate expansion
BECOMING THE MUST-BE PARTNER TO ACCELERATE EXPANSION France / 2014 Sweden / 2015 France / 2012 The Netherlands / 2012 Austria / 2014 Czech Republic / 2014 Poland / 2014 Germany / 2015 Poland / 2012 Czech Republic / 2013 France / 2014 France / 2013 Austria / 2013 Austria / 2013 Sweden / 2014 France /
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Slide 29: Enhances the shopping experience
… ENHANCES THE SHOPPING EXPERIENCE… Net Promoter Score (NPS)(1)(2) (average Group) Group 16 10 8 7 7 2011 2012 2013 2014 H1-2015 A key performance indicator for shopping centre management 15
Slide 30: Net Promoter Score footnotes
(1) Constant perimeter excluding acquisitions, divestments, assets delivered from 2011 to 2015 (greenfield and brownfield projects) (2) Net Promoter Score: an international customer loyalty metric measuring if a shopping centre engenders positive or negative recommendations. It was created in 2003 b
Slide 31: Strong tenant sales outperformance
… AND LEADS TO STRONG TENANT SALES OUTPERFORMANCE Tenant sales(1) growth in Unibail-Rodamco’s shopping centres vs national indices(2) since 2006 (rebased to 100) Average Post-merger First divestments Focusing further +3.9% outperformance +80 bps +225 bps on large malls year-to-date +236 bps to May 2
Slide 32: Tenant sales commentary
§Through May 2015, tenant sales in the Group’s shopping centres grew by +3.9% outperforming the relevant national sales indexes(2) by 270 bps. §The average outperformance of national sales index since 2007 is +200 bps. §Through June 2015, tenant sales in the Group’s shopping centres increased by +4.
Slide 33: Germany Changing the Face of Retail
GERMANY CHANGING THE FACE OF RETAIL Minto, Mönchengladbach 2015 HALF-YEAR RESULTS 17
Slide 34: Germany's strong fundamentals improved since 2012
GERMANY’S STRONG FUNDAMENTALS HAVE IMPROVED SINCE 2012 GDP growth next 3 years(1) Unemployment rate(2) Consumer confidence(3) +1.2% 2013-2015 vs +1.7% 6.6% 2012 vs 6.2% 5.7 2012 vs 10.2 2016-2018 2015 2015 Target destination for retailers(4) #2 2012 vs #1 2015 Germany, top destination for retailers
Slide 35: Sources
(1) Source: GDP average growth 3-year forecast. Source: Oxford Economics (2) Source: Destatis 2015 (3) Source: GfK 2015 (4) Source: CBRE Research, “How active are retailers globally?” 2011 and 2015 35
Slide 36: Unibail-Rodamco in Germany
UNIBAIL-RODAMCO IN GERMANY Deliveries Pipeline Acquisition of stake in mfi and Ruhr Park - August 2012 Extension Acquisition Palais Vest, Recklinghausen Ruhr Park, Bochum September 2012 Refurbishment Pasing Arcaden, Munich CentrO, Oberhausen H2-2015 September 2014 Überseequartier post-2019 May 2014
Slide 37: German investment commentary
§In 2012, the Group made its first meaningful investment in Germany by acquiring a stake in mfi and Ruhr Park (Bochum) through companies jointly owned with PWREF. §Since 2012, Unibail-Rodamco delivered three new assets: Höfe-am-Brühl (Leipzig), Palais Vest (Recklinghausen) and recently Minto (Möchen
Slide 38: Implementing best practices on standing assets
IMPLEMENTING BEST PRACTICES ON STANDING ASSETS… Re-Designing Re-Marketing Re-Tenanting & UR’s Sustainable Development Design 1st 1st in a shopping centre in market 20
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Slide 40: Brings results: Pasing Arcaden
… BRINGS RESULTS Average dwell time Average spending basket +8.9% +22.0% Sales(3) +119% Footfall(1) NPS(2) +90% From 23 to 41 Excellent Facebook fans +105.6% Building & Management BREEAM-In-Use 1st in Germany PASING ARCADEN, MUNICH 21
Slide 41: Pasing Arcaden BREEAM-In-Use
§In June, Pasing Arcaden (Münich) obtained a double “Excellent” score for the “Building” and the “Management” parts in the BREEAM-In-Use scheme, which is a first in Germany, illustrating the progress in the implementation of the Group’s Sustainability policy across the mfi portfolio. (1) Footfall R1
Slide 42: Minto: changing the shopping experience in Germany
MINTO: CHANGING THE SHOPPING EXPERIENCE IN GERMANY A comprehensive retail offer Unique design and shop fronts A successful opening >2.5 million visitors in 12 weeks (1) 22
Slide 43: Minto opening commentary
§On March 25, 2015, after two years of works and an investment of €213 Mn, Unibail-Rodamco opened Minto (Mönchengladbach). This former local shopping area has been redeveloped into an emblematic 41,867 m² regional shopping destination with more than 100 shops. The shopping centre includes the Group´
Slide 44: Minto: unique design
MINTO: UNIQUE DESIGN MINTO, MÖNCHENGLADBACH 22
Slide 45: Minto: 4 star toilets
MINTO: 4 STAR TOILETS MINTO, MÖNCHENGLADBACH 22
Slide 46: Minto: iconic shop fronts
MINTO: ICONIC SHOP FRONTS MINTO, MÖNCHENGLADBACH 22
Slide 47: From mfi to Unibail-Rodamco Germany
FROM MFI TO UNIBAIL-RODAMCO GERMANY Integration and synergies program Unibail-Rodamco strategy initiated Stabilized teams in core functions European Graduate Program Unibail-Rodamco’s new offices in Düsseldorf Solid pipeline Ruhr Park extension(1): H2-2015 Überseequartier: post-2019 Total TIC: €1.1
Slide 48: Footnotes
(1) Ruhr Park located in Bochum (2) Pipeline at 100% 48
Slide 49: Fast Forward Innovation
FAST FORWARD INNOVATION Les 4 Temps, Paris 2015 HALF-YEAR RESULTS 24
Slide 50: UR Lab: leading the innovation mission
UR LAB: LEADING THE INNOVATION MISSION Launched in 2012 Reports to the CEO 10 permanent staff 30 innovation champions UR Inside 4 Star label Ureka!, UR Innovation Campus, Unispace, Smart Parking, UR Academy Innovation Training, Pick up Solutions, Keynotes, UR World, Meet my friends, Pitch & Deal Was
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Slide 52: Exceeding customer expectations
EXCEEDING CUSTOMER EXPECTATIONS Launch of the Shopping Observatory in 2013 in partnership with IPSOS 1st edition Has the financial crisis changed women’s UR’s personal shopper service launched in 2010 2013 shopping habits?(1) 54% Want to find new sources of inspiration 2nd edition UR’s V2 product se
Slide 53: Shopping Observatory commentary
§Unibail-Rodamco and IPSOS launched the 1st Shopping Observatory on June 20, 2013. The aim was to analyse the shopping behaviour of French customers and identify future trends. This would enable the Group to launch innovations to meet customers’ needs and aspirations. §The 1st edition was to underst
Slide 54: Exceeding customer expectations: 3rd edition
EXCEEDING CUSTOMER EXPECTATIONS 3rd edition What do people want in their future Gateway to new experiences 2015 shopping centre?(1) 70% More entertainment and excitement Annual tenant rotation rate target: >10% 72% Change tenant mix and decoration several times a year Unibail-Rodamco well ahead of t
Slide 55: Third Shopping Observatory findings
§The 3rd edition launched in June 2015 was to understand: What do people want in their future shopping centre? They want: § An easier search function; § Personalized information; § More products available without requiring any effort; § A digital wallet; § A “click & collect” service. §They also wan
Slide 56: Where are we with innovation? Already a reality since 2012
WHERE ARE WE WITH INNOVATION? ALREADY A REALITY… SINCE 2012 2012 2013 2014 2015 (1)(2) Progressive roll-out through the portfolio 28
Slide 57: 4 Star label commentary
§Introduced in 2012, 20 of the Group’s shopping centres have now been awarded the 4 Star label, with the newly delivered Minto (Mönchengladbach), the recently refurbished Euralille (Lille) and Shopping City Süd (Vienna) labelled in H1-2015. The previously labelled shopping centres have undergone or
Slide 58: New releases in 2015: Click & Services
WHERE ARE WE WITH INNOVATION? NEW RELEASES IN 2015 Click & Services 29
Slide 59: Click & Services and Designer Gallery
§Click & Services is the possibility for customers to order and pay their products or services online, before collecting or enjoying them in a physical store of the retailer. The innovation is already implemented in Les 4 Temps (Paris Region) and will be deployed in Mall of Scandinavia (Stockholm).
Slide 60: From developing a digital footprint
FROM DEVELOPING A DIGITAL FOOTPRINT… Apps(1) Loyalty cards(1) Facebook(1) Websites(2) +27 % +17 % +16 % +17 % 22.2 Mn 19.0 Mn 1.5 Mn 4.8 Mn 4.2 Mn 3.1 Mn 2.5 Mn 1.2 Mn H1-2014 H1-2015 H1-2014 H1-2015 H1-2014 H1-2015 H1-2014 H1-2015 30
Slide 61: Digital marketing commentary
§Digital marketing: the Group keeps enlarging its online footprint, with strong growth in every digital channel. Through June 2015, on a like-for-like perimeter (excluding 2014 divestments and German assets), smartphone application downloads increased by +27% (to 3.1 Mn), website visits grew by +17%
Slide 62: To fully digitizing the shopping experience
… TO FULLY DIGITIZING THE SHOPPING EXPERIENCE Find my way Smart park Meet my friends Home Finding shopping centre Access Centre In the car park Find my shops Book my restaurant At the entrance Connect with Socialize and relax my Facebook friends Be welcomed Check cinema listing See special offers Cl
Slide 63: Digital infrastructure investment
§To better address its large and growing audience, the Group has invested in a new digital infrastructure: § A new Content Management System to administer content on websites, mobile applications and social networks is being implemented; § An indoor positioning technology based on Bluetooth hardware
Slide 64: New digital services to kill the pain points
NEW DIGITAL SERVICES TO KILL THE PAIN POINTS 1st social indoor 4 positioning system Meet my friends “Where I want, when I want!” “I need power!” 3 Click & “Where is my car?” 2 Services 1 Unibench Smart Park “Where are my friends?” 32
Slide 65: Smart Park, Smart Map, Meet My Friends
§The new infrastructure tools allow the Group to provide innovative solutions to improve the visitors' journey in its shopping centres. Having identified pain points, Unibail-Rodamco developed three key features: § Smart Park: easy entrance and exit from the parking for loyalty card holders, by an a
Slide 66: Sustainability: moving ahead in achievements
SUSTAINABILITY: MOVING AHEAD IN ACHIEVEMENTS (1) Breakdown of “BREEAM-in-Use” by rating Setting ambitious targets for sustainability UNISMART Very Good Outstanding 19% 43% SUSTAINABILITY MANAGEMENT ATTITUDE REPORTING TOOL of the Portfolio rated(1) 1st European real estate company Excellent to use En
Slide 67: BREEAM In-Use certification commentary
§With 42 shopping centres certified as of June 30, 2015, 73%(1) of the Group’s standing shopping centre portfolio is now BREEAM In-Use certified, corresponding to over 2 million m² of consolidated GLA. 81% of certifications obtained reached an “Excellent” or “Outstanding” level, which is the highest
Slide 68: Valuation
VALUATION Arkadia, Warszawa 2015 HALF-YEAR RESULTS 34
Slide 69: Value creation: €11.68 per share
VALUE CREATION: €11.68 PER SHARE Going concern Net Asset Value(1) (in € per share) Non like-for-like Recurring +€2.15 +€5.37 revaluation and EPS intangible assets(2) €177.40 +€11.68 +€2.83 Rent effect(3) €166.30 -€4.80 +€4.22 €165.72 +€8.37 Asset revaluation -€2.06 Other(4) +€3.39 Yield effect(3) De
Slide 70: EPRA NNNAV and going concern NAV commentary
§Unibail-Rodamco’s EPRA triple Net Asset Value (NNNAV) amounted to €161.70 per share as of June 30, 2015, an increase of +6.9%, or +€10.50, from €151.20 at December 31, 2014 and of +12.8%, or +€18.40, from €143.30 as at June 30, 2014. §The going concern NAV (GMV based), measuring the fair value on a
Slide 71: NAV evolution in euros per share
NAV EVOLUTION IN EUROS PER SHARE +23.98 “VALUE CREATION” +15.95 +13.06 +11.68 Revaluation of assets and other(1) +5.72 Recurring results +6.31 +10.22 +10.92 +5.37 - 2013 2014 H1-2015 DIVIDEND PAYMENT -8.40 -8.90 -4.80(2) - +0.95 +4.22 “EXTERNAL FACTORS” Mark-to-market of the debt -8.38 and financial
Slide 72: Going concern NAV commentary
§The Going Concern NAV(2) increased by €11.10 per share, up 6.7% reflecting: § The positive value creation of +€11.68 per share; § The positive mark-to-market of the debt and derivatives of +€4.22 per share; § The interim dividend payment of €4.80 per share in March of 2015. (1) “Other” notably incl
Slide 73: Strong valuation growth
STRONG VALUATION GROWTH Retail like-for-like revaluation +2.5% +1.2% +1.2% +1.2% +1.3% H1-2013 H1-2014 H1-2015 Spain like-for-like revaluation +8.4% +6.2% +0.5% +2.1% -0.3% Splau, Barcelona H1-2013 H1-2014 H1-2015 Yield effect Rent effect Group portfolio +€767 Mn (+2.7%) of like-for-like revaluation
Slide 74: Valuation growth commentary
§With 95% of Unibail-Rodamco’s mall portfolio(1) attracting more than 6 Mn visits p.a., the Group’s exposure to prime and quality malls drove an increase in gross market value (GMV) by +2.5% on a like-for-like basis, of which +2.7% for large malls. With tenant sales and footfall through May 2015 up
Slide 75: Splau: a case study
SPLAU: A CASE STUDY Acquired in 2011 Actions Today Re-Designing: CAPEX €19 Mn TAC(1): €189 Mn Valuation: €268 Mn Re-Tenanting: 75 lettings/re-lettings NIY: 6.1% NIY: 5.3% Re-Marketing: Value/m²: €3,400 Value/m²: €4,900 Footfall: 7.5 Mn Splau like-for-like revaluation(2) Footfall: 13.0 Mn (in € Mn) T
Slide 76: Splau commentary
§Splau was acquired in October 2011 at a TAC of €189 Mn and a NIY of 6.1%. §Today, the shopping centre’s gross market value reaches €268 Mn with a NIY 5.3%. §In the meanwhile, Splau benefited from the Group exceptional know-how in term of Re-Designing, Re-Tenanting and Re-Marketing: § Tenant sales(1
Slide 77: Splau: acquired in 2011
SPLAU: A CASE STUDY Acquired in 2011 TAC: €189 Mn NIY: 6.1% Value/m²: €3,400 Footfall: 7.5 Mn Tenant sales/m²: €3,300 Vacancy: 15.8% Pot. Yield: 6.9% 38
Slide 78: Splau: actions
SPLAU: A CASE STUDY Actions Splau like-for-like revaluation (in € Mn) Re-Designing CAPEX €19 Mn 268 59 189 19 Re-Tenanting 75 lettings/re-lettings Re-Marketing 2011 CAPEX Revaluation H1-2015 GMV CAPEX Value creation Figures may not add up due to rounding 38
Slide 79: Splau: today
SPLAU: A CASE STUDY Today Valuation: €268 Mn NIY: 5.3% Value/m²: €4,900 Footfall: 13.0 Mn Tenant sales/m²: €4,600 Vacancy: 0% Rev. Yield: 7.6% 38
Slide 80: Risk premium at historical highs
RISK PREMIUM AT HISTORICAL HIGHS… A NEW RECORD French Unibail-Rodamco’s shopping centre portfolio net initial yield(1) spreads(2) 4.3% 4.3% 4.3% 332 bps 2.1% risk premium 1.0% -0.5% 2007 2008 2009 2010 2011 2012 2013 2014 H1-2015 French Unibail-Rodamco shopping centre net initial yield 10-year Frenc
Slide 81: Net initial yield commentary
§The French shopping centre portfolio’s net initial yield(1) as at June 30, 2015 decreased to 4.3% from 4.4% in December 31, 2014, while the Group’s shopping centre portfolio’s net initial yield(1) as at June 30, 2015 decreased to 4.7% vs 4.8% at year-end 2014. §A change of +25 basis points in net i
Slide 82: Ongoing Opportunistic Capital Recycling
ONGOING OPPORTUNISTIC CAPITAL RECYCLING Täby Centrum, Stockholm 2015 HALF-YEAR RESULTS 40
Slide 83: Active asset rotation
ACTIVE ASSET ROTATION… Nicetoile Arkady Pankrac TAC(1): €313 Mn TAC(1): €162 Mn(2) GLA: 17,400 m2 GLA: 40,400 m2 Footfall: 13 Mn Footfall: 12 Mn NIY(3): 5.0% NIY(3): 5.6% Total TAC(1) €663 Mn Nova Lund Sevilla Factory TAC(1): €176 Mn TAC(1): €12 Mn GLA: 25,900 m2 GLA: 16,100 m2 Footfall: 3 Mn Footfa
Slide 84: Disposals commentary
§On January 15, 2015, the Group completed the sale of Nicetoile (Nice), for a total acquisition cost(1) of €312.5 Mn, representing a net initial yield of 5.0%. §Further to the agreement with Atrium European Real Estate entered into on January 22, 2015, Unibail-Rodamco completed the disposal of Arkad
Slide 85: Operational and financial discipline
… AND OPERATIONAL AND FINANCIAL DISCIPLINE… Unibail-Rodamco’s 50% 46.1% stake in Comexposium to Charterhouse stake in mfi to CPPIB Entreprise value(1) : €550 Mn TAC/m²(2): €5,000 NIY(2): 5.1% Why? Why? Aligns interests between CentrO and mfi assets Comexposium’s growth is outside Europe mfi now bene
Slide 86: Comexposium and mfi stake sales
§On March 31, 2015, the Group and the Chamber of Commerce and Industry of Paris Ile-de-France (CCIR) entered into an agreement with Charterhouse pursuant to which Charterhouse has offered to acquire the Group’s 50% stake in Comexposium. This offer values Comexposium at €550 Mn(2). The transaction is
Slide 87: Generate significant results
…GENERATE SIGNIFICANT RESULTS Retail Net proceeds(1) (€ Mn) H1-2015 booked disposals 466 Under contract 189 Premium NIY(2) over last unaffected Total assets disposed 655 5.2% appraisals(3) 8.1% 46.1% stake in mfi 751 Total 1,406 Services Entreprise value(4) (€ Mn) Comexposium 275 Disposals to genera
Slide 88: Disposal proceeds commentary
§Retail assets disposed: § H1-2015 booked disposal: Nicetoile (Nice), Arkady Pankrac (Prague) and three retail units (one in Evreux and two in Marseille) for a total net disposal proceeds(1) of €466 Mn; § Under contact: Nova Lund (Lund), Sevilla Factory (Sevilla) and one retail unit (Paris Region) f
Slide 89: Continuous Proactive Management of the Balance Sheet
CONTINUOUS PROACTIVE MANAGEMENT OF THE BALANCE SHEET CNIT, Paris 2015 HALF-YEAR RESULTS 44
Slide 90: We create our own opportunities
WE CREATE OUR OWN OPPORTUNITIES Bonds ORNANE Negative Green Long Term Amount €500 Mn Amount €500 Mn Yield Coupon 1.00% Coupon 1.375% Amount €500 Mn Maturity 10-years Maturity 15-years Coupon 0.00% Maturity 7-years 1st 1st 1st Record low Longest maturity Negative yield Coupon for the Group for a real
Slide 91: Debt issuance and tender offers commentary
§In H1-2015, the Group took advantage of a positive market window and of limited financing needs to manage its balance sheet by buying-back existing public and convertible bonds and by issuing new diversified debt at attractive conditions and for longer maturities, completing the following number of
Slide 92: Securing long dated, low cost of debt
SECURING LONG DATED, LOW COST OF DEBT… Decreasing average cost of debt (in %) Average debt maturity (in years) 6.5 4.0% 3.9% 6.4 3.6% 6.0 3.5% 3.4% 5.9 5.5 5.4 3.0% 2.9% 5.0 2.6% 4.9 2.5% 2.3% 4.5 4.5 4.3 2.0% 4.0 2010 2011 2012 2013 2014 H1-2015 2010 2011 2012 2013 2014 H1-2015 § Record level of un
Slide 93: Cost of debt and maturity commentary
§Unibail-Rodamco’s average cost of debt decreased to 2.3% for H1-2015 compared to 2.6% for 2014. This record low average cost of debt results from low coupon levels the Group achieved during the last 3 years on its fixed rate debt, the tender offers in October 2014 and April 2015, the level of margi
Slide 94: Leads to healthy financial ratios
… LEADS TO HEALTHY FINANCIAL RATIOS Strong ICR(1) (in x) Contained LTV(2) 6 80% 5 4.6 4.5 60%(3) 4.0 60% 4 3.5 41% 41% 3 40% 37% 37% 2.5 2.0(3) 25% 2 20% 1 0 0% Standard and Poor’s upgraded the Group’s liquidity rating from Adequate to Strong 47
Slide 95: Financial ratios and ratings commentary
§The financial ratios stand at healthy levels: § The Interest Coverage Ratio (ICR) improved and stands at 4.5x (vs 4.2x in 2014); § The Loan to Value (LTV) ratio remained unchanged at 37%. §Unibail-Rodamco is rated by the rating agencies Standard & Poor’s and Fitch Ratings. §Standard & Poor’s confir
Slide 96: Unibail-Rodamco's Pipeline: A Significant Growth Driver
UNIBAIL-RODAMCO’S PIPELINE: A SIGNIFICANT GROWTH DRIVER Aupark, Bratislava 2015 HALF-YEAR RESULTS 48
Slide 97: €8.2 Bn prime quality development pipeline replenished
€8.2 BN PRIME QUALITY DEVELOPMENT PIPELINE REPLENISHED (1) Unibail-Rodamco’s development portfolio Geographical breakdown Total Investment Cost (€ Bn) €8.0 Bn -€0.9 Bn €8.2 Bn +€1.2 Bn Austria Project Excluded Netherlands 1% -€0.1 Bn Secured 6% New Projects Spain Secured Delivered Project exclusivit
Slide 98: Development pipeline commentary
§The €8.2 Bn development pipeline compares with the €8.0 Bn as of December 31, 2014. The change in TIC results from: § New projects added to the pipeline in 2015 (+€962 Mn, including €521 Mn for the Triangle tower); § Some modifications in the program of existing projects including currency changes
Slide 99: Exciting retail deliveries in H1-2015
EXCITING RETAIL DELIVERIES IN H1-2015 Extension/ Refurbishment New Delivery Refurbishment March 15 March 25 May 20 Aggregate KPIs GLA TIC(2) Yield on Cost +68,200 m2 €602 Mn 7.3% 50
Slide 100: H1-2015 retail deliveries commentary
§H1-2015 deliveries in the retail segment were: § The last phase of Täby Centrum (Stockholm) extension. The five year project represents a total investment cost of €321 Mn; § Minto, a 41,867 m² GLA shopping centre in Mönchengladbach, for a total investment cost of €213 Mn; § The restructuring and re
Slide 101: Working existing assets harder
WORKING EXISTING ASSETS HARDER… Before Central Square After Refurbishment Delivered in October 2011 North Central Square extension refurbishment South Extension +14,000 m² Delivered in August 2013 South extension North Extension +10,000 m² Delivered in May 2014 Other retail +3,000 m² Delivered in 20
Slide 102: Täby Centrum extension commentary
§The last phase of Täby Centrum (Stockholm) extension. The five year project represents a total investment cost of €321 Mn. §The program of Täby Centrum extension started in 2010, lasted five year and was delivered in several phases: § Refurbishment of Central square: Delivery in October 2011; § Sou
Slide 103: Generates great results: awards
TITLE … GENERATES GREAT RESULTS Awards Best Best Best Shopping centre Regional Shopping centre in Stockholm shopping centre in the Nordics 2014 2014 2015 1st 1st Shopping centre BREEAM-In-Use in Sweden (in total sales) Excellent in Sweden 2014 2014 1st store in Sweden for: Footfall(1) Sales(2) +26%
Slide 104: Täby Centrum award commentary
§After having won local awards as Best Shopping Centre in Stockholm and Best Regional Shopping Centre in 2014, Täby Centrum on April 15, 2015 was elected best Nordic Shopping Centre of the year by the Nordic Council of Shopping Centers. This award recognizes the Group’s commitment to deliver and ope
Slide 105: Ground breaking deliveries in H2-2015
GROUND BREAKING DELIVERIES IN H2-2015 Current Project Current Project Delivery: October 2015 Delivery: November 2015 TIC: €460 Mn TIC: €645 Mn BREEAM GLA: 70,838 m² GLA: 101,121 m² design 1st Excellent stage in the Nordics 88% pre-let(1) 97% pre-let(1) 53
Slide 106: H2-2015 openings commentary
§Mall of Scandinavia (Stockholm) and Polygone Riviera (Cagnes-sur-Mer) are scheduled to open in Q4-2015 and are 97% and 88% pre-let(1), respectively. Notable brands include Uniqlo, Primark and the concept store "Le Grand Playground" for Polygone Riviera (Cagnes-sur-Mer), and H&M, Illums Bolighus dep
Slide 107: Polygone Riviera
GROUND BREAKING DELIVERIES IN H2-2015 Current Project Delivery: October 2015 TIC: €460 Mn GLA: 70,838 m² 88% pre-let POLYGONE RIVIERA, NICE 53
Slide 108: Mall of Scandinavia
GROUND BREAKING DELIVERIES IN H2-2015 Current Project Delivery: November 2015 TIC: €645 Mn GLA: 101,121 m² 97% pre-let MALL OF SCANDINAVIA, STOCKHOLM 53
Slide 109: Case study Aéroville
CASE STUDY AÉROVILLE Opening Today Footfall(1): +17% Sales(2): +21% Food sales(2): +46% Delivered on TIC GLA October 17, 2013 €363 Mn 83,324 m² Dining sales(2): +20% Cinema sales(2): +54% App downloads(3) : 221,000 1st Europacorp cinema Facebook fans(3): 143,000 54
Slide 110: Aéroville commentary
§Aéroville was delivered on October 17, 2013. Featuring all Unibail-Rodamco’s latest innovations in terms of design, services, digital tools and tenant mix, Aéroville is a breakthrough shopping and leisure experience, including: § An innovative design providing a polysensorial experience to visitors
Slide 111: Refueling the pipeline with new unique projects: 3 Pays
REFUELING THE PIPELINE WITH NEW UNIQUE PROJECTS… GERMANY Mulhouse Freiburg 3 Pays A5 EuroAirport A35 At the heart of the Basel/Mulhouse/Freiburg triangle FRANCE Basel Next to EuroAirport A2 1st shopping centre > 35,000 m² in the region Catchment area 993,000 inhabitants / 0-30 minutes SWITZERLAND 3
Slide 112: 3 Pays project commentary
§The 3 Pays project was added: it consists of an 85,913 m² retail and leisure project in the South of the Alsace Region, where France, Germany and Switzerland meet. (1) Total Investment Cost (TIC) 112
Slide 113: Triangle
… AND TRIANGLE New program Offices 66,168 m² Approved June 30, 2015 2,084 m² Panoramic Observatory Co-working Panoramic restaurant Inter-Company restaurant 4,630 m² Hotel (120 rooms) 7,190 m² Other Spaces 5,068 m² Offices (Atrium, Medical centre, Day-nursery, Panoramic restaurant, Panoramic elevator
Slide 114: Triangle tower commentary
§The Triangle tower project (Paris) has been re-integrated in the development pipeline following the vote of the Paris City Council approving the project on June 30, 2015. (1) Total Investment Cost (TIC) 114
Slide 115: Triangle
TRIANGLE LOCATED AT THE HEART OF THE MODERNISATION OF PORTE DE VERSAILLES 57
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Slide 117: Outlook
OUTLOOK The Spring, The Hague 2015 HALF-YEAR RESULTS 58
Slide 118: Increasing the outlook
INCREASING THE OUTLOOK 2015 recurring EPS Key inputs guidance increases Indexation To €10.25-€10.45 Disposals Timely delivery of projects Rental uplifts Taxation Cost of debt From €10.15 – €10.35 No acquisitions assumed 59
Slide 119: Guidance commentary
§Based on the robust performance during H1-2015 referred to above, the Group increases its guidance for recurring EPS for the year ending December 31, 2015 to €10.25-€10.45 (from €10.15-€10.35 previously). §This outlook assumes completion of the pending disposals and no deterioration of the general
Slide 120: www.unibail-rodamco.com
unibail-rodamco www. unibail-rodamco.com