Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — 9M 2020 Earnings Presentation
27 slides from Unibail-Rodamco-Westfield's earnings presentation, Nov 1, 2020
Slide 1: 9M-2020 Results
9M-2020 RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: Financial Results
FINANCIAL RESULTS Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 3: 9M-2020 Results
9M-2020 Results € Mn 9M-2020 9M-2019 Growth Lfl Growth Shopping Centres 1,460 1,699 -14.1% -12.3% Offices & Others 63 81 -22.5% -1.3% Convention & Exhibition 8 69 -88.7% -88.7% Net Rental Income 1,531 1,849 -17.2% -15.3% Recurring Net Result (Group share) 945 1,341 -29.5% Recurring EPS 6.83 9.69 -29
Slide 4: Update on COVID-19
UPDATE ON COVID-19 Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 5: Recovery accelerated through September…
Recovery accelerated through September… Footfall showed All European centres had reopened by June 15 and all US centres by October 8 encouraging Footfall in August / September at ~75% of 2019 levels in Europe recovery Tenant 72% of negotiations completed - outcomes in line with expectations negotiat
Slide 6: … but the environment is getting worse again
… but the environment is getting worse again COVID-19 - Daily evolution of reported cases First wave Second wave 60,000 Lockdown FRANCE COVID-19 situation deteriorating fast 45,000 Lockdown in Europe and the US 30,000 15,000 - Lockdown 30,000 20,000 Restrictions tightening, UK Lockdown curfews and l
Slide 7: Many of the Group's retailers have had to close again
Many of the Group’s retailers have had to close again. Restrictions change on a daily basis European countries imposed further restrictions in the past weeks(1) Czech Republic Austria Denmark France National lockdown Partial lockdown F&B closed after 10pm National lockdown Non-essential shops closed
Slide 8: European tenant sales had gradually recovered and outperformed footfall
European tenant sales had gradually recovered and outperformed footfall June 2020 July 2020 August 2020 September 2020 Sales Footfall Sales Footfall Sales Footfall Sales Footfall France -29% -38% -15% -26% -5% -18% -13% -21% Central Europe -25% -34% -14% -28% -13% -27% -22% -28% Spain -35% -42% -26%
Slide 9: Mixed progress in the US due to later opening of centres
Mixed progress in the US due to later opening of centres While all centres are now open, some stores remain closed … … impacting tenant sales (as a % of 2019)(1) Shops open GLA open 85% 90% 88% 93% 76% 83% 81% 79% 66% 67% 68% 60% July August September October July August September September (2) (tot
Slide 10: Tenant negotiations are now 72% complete and in line with expectations
Tenant negotiations are now 72% complete(1) and in line with the Group’s expectations March July 24 August 24 September 14 October 27 Lockdown 25% 43% 61% 72% Progress Accounting impact Outcomes broadly in line with expectations As at September 30 • Cash impact: €54.1 Mn Agreements reached with 9 of
Slide 11: Rent recovery continues to improve
Rent recovery continues to improve Continental Collected Europe UK US Q2 collection rates 12% Q1 95% 96% 99% 92% 27% 8% Q2 52% 58% 56% 40% 100% 52% Q3 79% 91% 65% 63% Invoiced Relief granted Under negotiation Deferred or Collected (1) Rent collection rate calculated compared to 100% of rents invoice
Slide 12: Impact of pandemic on 9M 2020 AREPS
Impact of pandemic on 9M 2020 AREPS -€0.35 -€0.32 -€0.23 -€0.88 -€0.43 +€0.23 -€0.35 -€0.36 -€0.17 €9.43 COVID-19: -€2.42 €6.34 €6.57 AREPS Disposals Letting fees (1) P&L impact Doubtful Variable Services Convention & Financial Others AREPS 9M-2019 COVID-19 debtors income Exhibition (2) expenses 9M-
Slide 13: Operational Highlights
OPERATIONAL HIGHLIGHTS Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 14: Leasing activity reflects different market contexts
Leasing activity reflects different market contexts 30.3% MGR uplift 16.2% Leasing priority: 8.5% COVID-19 negotiations 5.6% 3.4% 1.9% -1.7% New leases signed(1) -4.7% 1,042 (-41%) -11.5% • 560 renewals • 482 relettings -18.4% -32.0% FR CE ES NO AT DE NL UK Europe US (2) Total (1) Standing assets on
Slide 15: Bankruptcies and vacancy reflect impact of COVID-19
Bankruptcies and vacancy reflect impact of COVID-19 Bankruptcies Cont. Europe UK US URW # of stores 288 45 242 575 In place 181 29 155 365 Replaced 26 0 4 30 In place / replaced 72% 64% 66% 69% Vacant 81 16 83 180 11.2% 10.1% 9.3% 9.4% 8.5% 8.6% 8.1% 6.9% 5.7% 4.6% 4.6% 4.7% 4.1% 4.3% 3.9% 3.5% 3.2%
Slide 16: Leading retailers continue to open new stores in URW's centres
Despite the crisis, leading retailers continue to open new stores in URW’s centres, highlighting the long-term strength of URW’s platform Q3: 381 leases signed (167,932 sqm) Westfield Forum des Halles Westfield Mall of Scandinavia Westfield Topanga Westfield Valley Fair Westfield London CentrO Westf
Slide 17: Socially distant brand activations and events began to return
... and socially distant brand activations / events began to return, underpinning the long-term attractiveness of URW’s assets Westfield Century City Westfield Mission Valley Wesftield Forum des Halles So Ouest Westfield Chodov Westfield London Wroclavia Westfield London 9M-2020 RESULTS 17
Slide 18: Pipeline
PIPELINE Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 19: Development pipeline further reduced
Development pipeline further reduced €6.2 Bn +€0.2 Bn €5.4 Bn €2.7 Bn -€1.0 Bn €1.7 Bn €3.1 Bn -€2.3 Bn €2.2 Bn(3) €1.6 Bn -€0.9 Bn €3.6 Bn € 3.7 Bn €1.5 Bn €1.4 Bn € 2.3 Bn € 1.5 Bn €0.8 Bn H1-2020 Removed projects (1) Net changes / Q3-2020 Invested to date Remaining To be spent FY-2021 additions a
Slide 20: Financing, Balance Sheet and Valuation
FINANCING, BALANCE SHEET AND VALUATION
Slide 21: Upcoming outstanding debt refinancing and bank line renewal needs
Upcoming outstanding debt refinancing and bank line renewal needs € Bn 16 14 12 10 8 6 4 2 0 0-1 Y 1-2 Y 2-3 Y 3-4 Y 4-5 Y >5Y Debt Revolving Credit Facilities Nb: URW’s debt profile as at September 30, 2020. On an IFRS basis. Excluding from chart: €1,250 Mn Hybrid NC 2023 and €750 Mn Hybrid NC 2026
Slide 22: Credit ratios
Credit ratios Typical covenant level Target range LTV 60% ICR(1) 6.9 6.1 42% 5.9 5.7 41% 42.5% 38% 41.9%(2) 40% 4.6 4.6 37% 4.0 3.8 4.1 4.0 30% 33% 3.5 2.5 3.5 25% 2.0 Net debt to EBITDA(3): 11.7x (9.9x Dec-2019) RESET plan target <9x by year-end 2021 (1) On a 9 month basis for Q3 results metrics (2
Slide 23: Shopping centres valuation decline accelerated by COVID-19
Shopping centres valuation decline accelerated by COVID-19 Lfl revaluation since FY-2018 9M-20: -7.8% 10% o/w H1-20: -5.2% 0% -10% -20% -30% FR CE DE ES NO AT NL UK US URW Revaluation 2019 Revaluation 2020 Total Revaluation Since FY-2018, ECRs: +19 bps - DRs: +30 bps Lfl revaluation: -9.7% since FY-
Slide 24: RESET plan is the only credible solution to delever
RESET plan is the only credible solution to delever Deleveraging plan €4.0 Bn €3.0 Bn €9.0+ Bn + Maintain strong + Secure uninterrupted access to credit investment markets & €0.8 Bn €1.0 Bn grade rating €1.0 Bn(1) low cost of debt underway €3.5 Bn o/w €0.6 Bn signed A- / Baa1(2) rating LTV < 40%(3)
Slide 25: Outlook and Dividend
OUTLOOK AND DIVIDEND Ww UNIBAIL-RODAMCO-WESTFIELD
Slide 26: Outlook – like for like NRI
Outlook(1) – like for like NRI Key inputs 2020 / 2019 2021 / 2020 2021 in % of 2019 Indexation Cash Cash Cash Leasing activity and rental -25% to -30% +10% to +20% 80% to 90% uplifts Vacancy IFRS IFRS IFRS Collection rates, doubtful debtor provisioning and -18% to -23% broadly flat 80% to 90% tenant
Slide 27: 2020 AREPS and dividend policy
2020 AREPS and dividend policy AREPS 2020 Dividend €7.50 - €7.80(1) RESET plan: €1 Bn cash saving(2) over the next two years Dividend based on: €7.20 - €7.80(1) o Operations, results and outlook due to new restrictions o REIT distribution requirements Scrip option to be offered to limit cash to a ma
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