Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — H1 2023 Earnings Presentation
46 slides from Unibail-Rodamco-Westfield's earnings presentation, July 2023
Slide 1: Half-Year Results
HALF-YEAR RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: H1-2023 Overview
H1-2023 OVERVIEW JEAN-MARIE TRITANT CEO Westfield Forum des Halles
Slide 3: Very solid results reflecting URW's strengths
Very solid results reflecting URW's strengths Strong operational performance supported by higher tenant sales and indexation Record leasing activity and double-digit MGR uplift Successful hybrid exchange confirms debt market confidence with stable ratings outlook Deleveraging activity(1): 7 transact
Slide 4: H1-2023 financial highlights
H1-2023 financial highlights +8.2% 1.8% +6.6% 9.4x LIKE-FOR-LIKE COST OF AREPS NET DEBT NET RENTAL INCOME(1) DEBT TO EBITDA vs. H1-2022 vs. 2.0% at FY-2022 vs. H1-2022 vs. 9.6x at FY-2022 (1) Including airports 2023 HALF YEAR RESULTS 4
Slide 5: Strong performance in Shopping Centre operating metrics
Strong performance in Shopping Centre operating metrics Sales & footfall(1) Vacancy rate(2) MGR uplift(3) Rent collection +9% -20 bps +12.5% 98% 98% Tenant sales vs. FY-2022 96% vs. H1-2022 6.9% 6.5% +7% 6.3% +2.6% Footfall (4) H1-2022 FY-2022 H1-2023 H1-2022 H1-2023 H1-2022 FY-2022 H1-2023 vs. H1-2
Slide 6: Footfall and Tenant Sales: growth in Europe and US
Footfall and Tenant Sales: Significant growth in Europe and further progress in the US Europe(1) United States(1) +10.9% +8.3% +4.6% +2.7% Shopping Centres Flagships Footfall vs. H1-2022 Sales vs. H1-2022 Footfall vs. H1-2022 Sales vs. H1-2022 €32 Mn €49 Mn €19 Mn €36 Mn Sales Based Rent (2) Other V
Slide 7: URW locations outperform the market
URW locations outperform the market Continental Europe United Kingdom United States +11.8% +6.8% +5.9% +4.6% +4.3% +2.0% URW Shopping National Sales URW Shopping National Sales URW Shopping National Sales centres Indices centres Indices centres(3) Indices URW tenant sales(1) H1-2023 vs. H1-2022 Nati
Slide 8: Strong H1-2023 performance from experience-led segments
Strong H1-2023 performance from experience-led segments Entertainment Fitness Food & Beverage Diverse and premium experiences drive Fitness market recovered and continues F&B strong performance supported excellent performance of URW assets to perform strongly in URW locations by new dining concepts
Slide 9: Sephora selects both Westfield locations for UK comeback
Sephora selects both Westfield locations for UK comeback Successful H1-2023 opening Second UK store to open at Westfield London at Westfield Stratford City in H2-2023 Top 5 press release published on July 7, 2023 best performing Sephora stores worldwide within the first 2 weeks of opening After the
Slide 10: Record leasing activity drives increasing MGR uplift
Record leasing activity and higher volume of long-term deals drive increasing MGR uplift H1-2023 leasing activity Increase in long-term deals Strong MGR uplift MGR signed in € Mn 1,009 1,078 1,180 197 26% 219 22% +17.6% On long-term deals H1-2022 H1-2023(1) 74% 78% 12-36 months -15.1% -0.7% H1-2019
Slide 11: Compelling retail mix thanks to new concepts
Compelling retail mix thanks to new concepts and entertainment offer Physical store for New concepts from Fashion Diverse entertainment successful DNVBs and Sport retailers offer Westfield Garden Westfield London Westfield La Maquinista Westfield Stratford City Westfield Les 4 Temps Westfield Mall S
Slide 12: In-house European Retail Media agency drives new revenue growth
In-house European Retail Media agency drives new revenue growth In-Mall DOOH Media Experiential campaigns and partnerships with key brands +18.5% 1,700 Average Revenue per Screens 510 Visit vs. H1-2022 Physical activations in H1-2023 including Large Format, Immersive Digital Screens and Digital Tote
Slide 13: Further deleveraging progress thanks to 2023 disposals
Further deleveraging progress thanks to 2023 disposals YTD-2023 H2-2023 2024 & BEYOND › 7 transactions(1) › Further US Regional › Radical reduction of US disposals financial exposure › Contributing to €0.5 Bn(2) › Secure the remaining › Disciplined capital allocation IFRS net debt reduction €0.7 Bn
Slide 14: Creating value through Garbera extension
Creating value through Garbera extension Opening May 2023 Footfall(1) +60% GLA 19,360 sqm 100% TIC €135 Mn Letting 99% Yield on cost 6.8% (1) First month after opening vs. same period in 2019 (June 2023 vs. June 2019) 2023 HALF YEAR RESULTS 14 Garbera extension, Spain URW SHARE 100%
Slide 15: 4 projects represent 91% of committed pipeline
4 projects represent 91% of total committed pipeline(1) H1-2023 H1-2024 H2-2024 H1-2026 URW SHARE 100% URW SHARE 25% URW SHARE 100% URW SHARE 30% Phase 3 extension delivery Westfield Hamburg Coppermaker Square, London Lightwell, Paris La Défense Triangle, Paris › 100% TIC €1,630 Mn › 100% TIC €820 M
Slide 16: Progress towards Better Places 2030 sustainability targets
Continued progress towards Better Places 2030 sustainability targets Total carbon emissions(1) Energy efficiency -14% -30% -41% -50% 5.15 167 143 3.03 2.58 117 2015 2022 2030 Target 2015 Baseline 2022 2030 Target MtCO2eq % variation vs. baseline kWh/sqm % variation vs. baseline Best assets already r
Slide 17: H1-2023 Financial Review
H1-2023 FINANCIAL REVIEW FABRICE MOUCHEL CFO Westfield La Part-Dieu
Slide 18: H1-2023 Results
H1-2023 Results € Mn H1-2023 H1-2022 Change Lfl Change Shopping Centres 1,059 1,036 +2.2% +8.5%(1) Offices & Others 41 36 +15.6% +17.1% Convention & Exhibition 52 68 -23.0% n.m. Net Rental Income 1,152 1,139 +1.1% +8.2%(2) EBITDA 1,157 1,139 +1.6% Recurring Net Result (Group share) 757 711 +6.5% Rec
Slide 19: H1-2023 AREPS up +6.6%
H1-2023 AREPS up +6.6% +€0.07 +€0.18 €5.28 +€0.69 +€0.01 +€0.01 €4.95 -€0.17 +€0.62 LfL +€0.07 Deliveries & Airports -€0.46 +€0.91 AREPS H1-2022 Disposals (1) Shopping Centres Offices & Services Convention & Administrative Financial expenses Taxes, Minority AREPS H1-2023 Exhibition (at 100%) expense
Slide 20: Strong Lfl NRI growth above indexation
Strong Lfl NRI(1) growth above indexation driven by 2022 leasing Renewals, relettings Indexation net of departures SBR Doubtful debtors Other Total Lfl Continental Europe +6.7% +0.6% +1.6% -1.5% +5.0% +12.5% United Kingdom n.a. +5.4% -0.6% +2.1% +2.5% +9.4% Total Europe +6.1% +1.1% +1.4% -1.1% +4.8%
Slide 21: 2022 inflation passed on through indexation and SBR
2022 inflation passed on through 2023 indexation and SBR 9% 8% Indexation(1) 7% +6.7% in Continental Europe 6% 5% 4% 3% Sales Based Rents 2% +8.5% at Group level(3) 1% 5.3% of NRI 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023 Inflation(2) Indexation URW NRI (1) H1-2023 indexation
Slide 22: Consistently high rent collection rate
Consistently high rent collection rate(1) As at July 21, 2023 2023 Group As initially reported As reported at Q1 trading update Q1 Q1-2023 97% 95%(2) Q2-2023 Q2 Q2-2023 96% Improvement H1 H1-2023 96% As reported at H1-2023 70% 75% 80% 85% 90% 95% 100% 2022 H1-2022 H1 98% 96%(3) As reported at FY-202
Slide 23: Bankruptcies back to normalised level
Bankruptcies back to normalised level after a record low in 2022 Bankruptcies evolution Bankruptcies in H1-2023 # of stores Cont. Europe UK US URW 391 # of stores 154 8 49 211 % of total units 2.7% 1.2% 1.6% 2.3% 250 261 210 211 In place 125 4 49 178 198 Replaced 10 0 0 10 102 101 71 In place / repl
Slide 24: Overall improving Shopping Centre occupancy
Overall improving Shopping Centre occupancy Vacancy levels(1) URW(2) Continental Europe UK US Flagships 12.2% 12.4% 9.7% 9.4% 8.9% 8.5% 8.3% 8.2% 7.7% 7.7% 7.9% 6.9% 6.5% 6.3% 5.4% 5.0% 4.0% 3.6% 3.1% 2.5% URW Continental Europe UK US FY-2019 H1-2021 H1-2022 FY-2022 H1-2023 (1) EPRA vacancy rate (2)
Slide 25: Strong letting activity with increased long-term deals
Strong letting activity with increased long-term deals and MGR H1-2023 MGR signed: €219 Mn +11% vs. H1-2022 | +25% vs. H1-2019 Continental Europe UK US URW 219 197 106 101 176 22% 99 96 26% 13% 22% 17% 19% 29% 58 51 25 32 78% 87% 78% 83% 15% 23 40% 81% 74% 41% 1% 12% 71% 99% 85% 88% 59% 60% H1-2019
Slide 26: Positive MGR uplift supported by long-term deals
Positive MGR uplift supported by long-term deals Deals >36 months All deals H1-2022 H1-2023 H1-2022 H1-2023 Continental Europe +12.6% +6.5%(1) Continental Europe(1) +8.4% +4.6%(1) UK +0.3% +20.1% UK -3.6% +18.8% US +23.8% +38.8% US -3.5% +22.0% +12.0% +17.6%(1) +2.6% +12.5%(1) +17.6% (1) (1) +12.0%
Slide 27: Continued sustainable OCR integrating sales performance
Continued sustainable OCR(1) integrating sales performance Continental Europe UK US 19.9% 19.7% 19.4% 15.6% 15.0% 14.8% 11.8% 10.5% 10.7% OCR H1-2019 OCR 2022 OCR H1-2023 OCR H1-2019 OCR 2022 OCR H1-2023 OCR 2019 OCR 2022 OCR H1-2023 (1) Occupancy Cost Ratio (“OCR”): (rental charges + service charge
Slide 28: Offices & Others: strong NRI growth
Offices & Others: strong NRI growth NRI (€ Mn) H1-2023 H1-2022 Change Lfl Change France 31.9 25.4 +25.4% +26.7% Others 9.3 10.2 -8.9% -1.4% Total 41.2 35.7 +15.6% +17.1% NB: Figures may not add up due to rounding 2023 HALF YEAR RESULTS 28 Trinity, La Défense
Slide 29: Success in office letting: Trinity
Success in office letting: Trinity 12 85% DEALS SIGNED LEASED since the delivery in Q4-2020 (40,470 sqm) +3 Deals signed in H1-2023 with continued efforts (+5,371 sqm) on floors 3-4-5-6 c.€568/sqm/year €600/sqm/year AVERAGE RENT RECENTLY SIGNED with lease incentives below In line with La Défense pri
Slide 30: Convention & Exhibition: strong activity in H1-2023
Convention & Exhibition: strong activity in H1-2023 HIGH LEVEL OF COMMITMENT from organisers 305 events in H1-2023 vs. 272 in H1-2022 vs. 386 in H1-2019 SIAE, Paris – Le Bourget 229 95% pre-bookings for H2-2023(1) pre-bookings vs. 255 for H2-2022 vs. expected 2023 vs. 229 for H2-2019(2) rental incom
Slide 31: Convention & Exhibition: NOI impacted by seasonality
Convention & Exhibition: H1-2023 NOI impacted by seasonality Change Change € Mn H1-2023 H1-2022(1) H1-2019 N vs. H1-2022(1) N vs. H1-2019(2) Net Rental 52 68 56 +9.0% +7.9% Income Property Services 19 27 32 -2.3% -22.1% & Other Income Net Operating 71 95 88 +5.2% -3.8% Income (1) Excludes triennial
Slide 32: General expenses reduction despite inflation
General expenses(1) reduction despite inflation Cost discipline (in €Mn) (2) H1-2019 H1-2020 H1-2021 H1-2022 H1-2023 117 108 102 104 105 102 100 95 93 90 Net administrative expenses H1-2019 net administrative expenses indexed with cumulated inflation rate (1) Administrative expenses, excluding devel
Slide 33: GMV evolution mainly reflects like-for-like valuations
GMV evolution mainly reflects like-for-like valuations +€574 Mn -€1,019 Mn €52,250 Mn -€343 Mn -€206 Mn -€226 Mn €51,029 Mn December 2022 Disposals CAPEX/Acquisitions/Transfers Lfl revaluation Non Lfl revaluation & Currency Effect June 2023 revaluation of shares 2023 HALF YEAR RESULTS 33
Slide 34: EPRA NRV evolution
EPRA NRV evolution EPRA Net Reinstatement Value(1) (in € per share) €155.70 +€5.45 €150.70 -€1.53 +€0.68 -€6.93 -€2.67 (3) December 2022 Lfl Asset Revaluation Non Lfl Asset Revaluation & Recurring Results FX impact Other June 2023 Intangible Assets (2) (1) Hybrid securities are excluded from NAV (2)
Slide 35: Group shopping centre portfolio valuation
Group shopping centre portfolio valuation Lfl revaluation since Dec. 31, 2018(1) Continental Europe UK US URW (71% of GMV) (6% of GMV) (24% of GMV) -1.3% -2.0% -0.6% -1.7% -0.8% -1.6% -2.5% -2.0% -1.9% -5.4% -4.4% -2.6% -9.1% -8.5% -8.2% -7.4% -12.6% -11.3% -14.0% -26.3% Revaluation 2019 Revaluation
Slide 36: H1-2023 values reflect increasing Net Initial Yields
H1-2023 values reflect increasing Net Initial Yields and cash flow growth Net Initial Yield(1) Continental Europe UK US CAGR CAGR CAGR of NRI(2) 3.4% 3.8% 4.0% 3.6% of NRI (2) 3.1% 2.8% 2.5% 2.8% of NRI (2) 4.6% 6.4% 4.6% 6.1% Incl. Indexation 1.8% 1.9% 2.8% 2.5% 6.1% 6.1% 7.0% 5.4% 5.3% 5.5% 4.9% 5
Slide 37: Net debt reduction and improving net debt over EBITDA
Net debt reduction and improving net debt over EBITDA FY-2022(2) €20.7 Bn €24.2 Bn €24.2 Bn Disposals -€0.3 Bn 48.4% 47.1% 45.6% 45.4% 45.2% €22.6 Bn Recurring Earnings -€0.8 Bn 41.8% 44.7% 43.3% 41.2% 41.9% 41.7% €20.7 Bn CAPEX +€0.5 Bn 38.6% €20.5 Bn 14.6x €20.3 Bn 13.7x Perp-NC 2023 +€0.2 Bn Cash
Slide 38: Improving H1-2023 cost of debt despite rising rates
Improving H1-2023 cost of debt despite increasing interest rates 3.6% 3.2% 3.1% 2.1% 1.9% 2.0% 2.0% 2.0% 1.7% 1.7% 1.8% 1.6% 0.1% 0.2% -0.3% -0.3% 0.0% -0.2% -0.4% -0.4% -0.5% -0.5% -0.6% FY-2019 H1-2020 FY-2020 H1-2021 FY-2021 H1-2022 FY-2022 H1-2023 URW Average cost of debt Euro Swap 8 years Eurib
Slide 39: Continued credit market access and strong liquidity
Continued credit market access and strong liquidity Europe 8.0 years average debt maturity(5) › 3.2-year average maturity €536 Mn(1) TERM LOANS › +109 bps average spread(2) €4.0 Bn cash on hand(6) & MORTGAGES › o/w €400 Mn Sustainability linked US €0.7 Bn raised in H1-2023(6) 5-year maturity(3) €8.0
Slide 40: Debt maturities fully covered over 3 years
Debt maturities(1) fully covered over 3 years €8.0 Bn €7.2 Bn Liquidity as at June 30, 2026 H2-2023/H1-2026 debt maturities H1-2026 maturities €1.4 Bn Undrawn credit facilities(2) €4.0 Bn 2025 maturities €3.2 Bn Cash on hand €4.0 Bn 2024 maturities €2.2 Bn H2-2023 maturities(3) €0.4 Bn Sources Matur
Slide 41: Successful Exchange Offer of the PERP-NC23 hybrid
Successful Exchange Offer of the PERP-NC23 hybrid 1st OF ITS KIND HYBRID EXCHANGE OFFER BY A CORPORATE ISSUER › Comprehensive solution for Perp-NC23 hybrid noteholders Provides flexibility to › Par-for-par Exchange Offer into a combination of: (i) new PERP-NC28 hybrid with 7.25% coupon and execute d
Slide 42: Stable development pipeline
Stable development pipeline +€0.1 Bn €3.1 Bn €3.1 Bn -€0.1 Bn €0.7 Bn €1.7 Bn -€1.4 Bn €2.4 Bn €0.6 Bn €1.1 Bn FY-2022 Deliveries New projects and project changes H1-2023 Invested to Date Remaining to be spent Committed(1) Controlled(1) (1) Please refer to the appendix to the Press Release published
Slide 43: Conclusion
CONCLUSION JEAN-MARIE TRITANT CEO Westfield Täby Centrum
Slide 44: 2023 AREPS at upper end of guidance range
2023 AREPS at upper end of guidance range Main assumptions › H1-2023 strong operating performance above indexation supported by higher tenant sales, high collection rate, dynamic leasing activity, high MGR uplift and indexation › Controlled cost of debt Upper end of €9.30 to €9.50 › Visibility on th
Slide 45: URW Sustainability Investor Event
URW Sustainability Investor Event Save the date October 10, 2023 2023 HALF YEAR RESULTS 45
Slide 46: URW.COM
y UNIBAIL-RODAMCO-WESTFIELD URW.COM
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