Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — Investor Day (June 2019)
78 slides from Unibail-Rodamco-Westfield's investor day presentation, Jun 13, 2019
Slide 1: Furthering our strategy in Europe
FURTHERING OUR STRATEGY IN EUROPE
Slide 2: Agenda
AGENDA 1 2 3 STRONG CUSTOMER FOCUS HOW DO WE CAPTURE FUNDAMENTALS ENHANCES OPERATIONAL IN EUROPE VALUE CREATION SYNERGIES? 4 5 6 COMMERCIAL ONE INTERNATIONAL FRENCH PORTFOLIO PARTNERSHIPS LEASING PLATFORM IN MOTION
Slide 3: Strong fundamentals in Europe
STRONG FUNDAMENTALS IN EUROPE
Slide 4: We operate the best assets in the most attractive markets
+142 We operate the best assets +43 in the most attractive markets... Stockholm City Top 3 shopping centres(1) +144 +195 +76 Warsaw +77 Paris +153 London +111 +176 +78 bps Prague -1 Warsaw Madrid Paris Ruhr region +4 bps Prague +120 London Vienna +37 +122 Stockholm +77 +153 +128 Lyon Barcelona +78 +
Slide 5: Our catchment areas are the best positioned
And our catchment areas are the best positioned European retail REITs average catchment area size and purchasing power Total trade areas average purchasing power (€ Bn) 70.0 Peer 7 Peer 4 50.0 Peer 6 Peer 3 Peer 5 Peer 2 Peer 1 30.0 1.5 2.0 2.5 Size of bubble indicates portfolio size Population (wei
Slide 6: We own the highest quality European portfolio
We own the highest quality European portfolio... URW GMV Portfolio distribution by GSA grade for main European retail REITs distribution by grade (# of assets per grade)(2) URW Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 A++ 3% 3% 11% A+ 34% A A- 13% B+ B B- 38% C+ A++ A+ A C A- B+ Below B+ C-
Slide 7: Our assets attract the highest footfall
… and our assets attract the highest footfall Top 30 European assets by footfall(1) 52 49 43 19 URW assets 39 among the Top 30 31 30 27 25 21 21 21 20 20 20 20 19 19 19 19 18 18 18 17 17 17 16 16 15 15 15 (1) In countries where URW operates, in Mn visitors, 2018. Source: Sites Commerciaux June 2019.
Slide 8: As a result we achieve outstanding performance
As a result we achieve outstanding performance 2014 – 2018 operational performance(1) Tenant sales Rotation rate EPRA vacancy MGR uplift Lfl NRI growth +3.1% 12.3% 2.4% +15.9% +3.9% +160 bps above NSI +20.7% for Flagships >300 bps above indexation (1) Continental Europe only. Rotation rate, EPRA fin
Slide 9: Customer focus enhances value creation
CUSTOMER FOCUS ENHANCES VALUE CREATION
Slide 10: Understanding customer expectations
Understanding customer expectations… 78% of consumers prefer to shop in store(1) Generation X Millenials Generation Z 42% 73% 76% expect more health-focused think personalized service is a key factor think physical stores provide F&B retailers(2) when choosing shopping destinations(2) a better shopp
Slide 11: Placing customers at the forefront of our strategy
… and placing them at the forefront of our strategy CUSTOMER Exciting Best retail Digital Events & destinations offer experience exclusive services Westfield Mall of the Netherlands, Fresh! Donau Zentrum, Rituals Wroclavia, Mobile app Westfield London, Lady Gaga concert 2019 INVESTOR DAYS 12
Slide 12: Active shift in tenant mix
Active shift in tenant mix… From malls… … to destinations Change in GLA mix 2014-2018(1) Dining Fashion SSU(2) +9% -13% Entertainment Hypermarkets +9% -3% Sport Do It Yourself +18% -3% Health & beauty +12% (1) Constant asset perimeter (2) Small Size Units, GLA ≤ 500 sqm 2019 INVESTOR DAYS 13
Slide 13: Drives both landlord and tenant performance
… drives both landlord and tenant performance MGR uplift(1) New on relettings tenants sales(2) +18.9% +36% vs departing tenants (1) Compounded on 5 years, 2014 to 2018. Ex-UR Retail scope. 2017 & 2018 only include affiliates proportionally consolidated (2) Reported tenant sales growth per m² for the
Slide 14: Creating outstanding food & dining destinations
Creating outstanding food & dining destinations… Growing eating-out market +4.9% per year 20 10% 12 - 15% GLA period 2017-2026(1) deployed GLA Target(2) 40% of visitors base their choice of shopping centre primarily on the dining options available(1) (1) JLL Food Trends 2018 study (2) Share of shopp
Slide 15: Creating outstanding food & dining destinations
Creating outstanding food & dining destinations… Täby Deli, Täby Centrum Grand Kitchen, Wroclavia 2019 INVESTOR DAYS 16
Slide 16: Offering leisure experiences
… and offering leisure experiences 1st cinema worldwide 1st cinema in the UK and Ireland 1st cinema in Denmark 1st cinema in Czech Republic Forum des Halles(1) Westfield London(2) Fisketorvet(3) Chodov(3) 1st cinema in mall in Spain 1st cinema in Austria 1st cinema in Warsaw 1st cinema in mall in Sw
Slide 17: Offering leisure experiences
… and offering leisure experiences Having fun… Citywave, Shopping City Süd Aspers Casino, Westfield Stratford City Targeted opening Feb. Dimco building, Westfield London 2020 Virtual adventure, Carré Sénart 2019 INVESTOR DAYS 18
Slide 18: Enriching shopping experience with new iconic retailers
Enriching shopping experience with new iconic retailers 1st in France 1st in Austria, Poland and Slovakia 1st in the UK 1st in mall in France 1st in France & Spain 1st in mall in Germany 1st in France 1st in mall in Spain 1st in Sweden 1st in Poland 1st in Sweden 1st in the UK 1st in the Czech Repub
Slide 19: Introducing the latest concepts
Introducing the latest concepts Zara, Westfield Stratford City Nespresso, Galeria Mokotów Sephora, Les Quatre Temps 2019 INVESTOR DAYS 20
Slide 20: Supporting retailers' multi-channel strategy
Supporting retailers’ multi-channel strategy Dining Dedicated online area New Dining Experience Interactive fitting rooms Partnering with leading platforms Self-checkout areas iPad-equipped salespeople App-payments 2019 INVESTOR DAYS 21
Slide 21: Customer engagement through digital strategies
Customer engagement through digital strategies 6.5 Mn loyalty members in Continental Europe 80% contacted monthly o/w 22% provided URW with Average their shopping preferences opening rate 23% 10 Mn vs 19% benchmark(1) database target 2019 (1) www.smartinsights.com 2019 INVESTOR DAYS 22
Slide 22: Offering unprecedented experiences
Offering unprecedented experiences Events Family Experience Services Forum des Halles Arkadia Westfield London 2019 INVESTOR DAYS 23
Slide 23: La Maquinista in motion
La Maquinista in motion C A S E S T U D Y 95,000 sqm GLA 220 stores 13 screens cinema 5,500 parking spaces 45 dining units 2019 INVESTOR DAYS 24
Slide 24: La Maquinista in motion: value creation 2008-2018
La Maquinista in motion… Value creation 2008-2018: SSU(1) tenant sales vs. NSI(2) CAGR NRI growth +333 bps (3) +6.4% Rotation rate(4) MGR Uplift(4) +16.2% +28.5% OCR: from 9.0% to 12.0% Acquisition Restructuring Dining Terrace opening 2008 2010 2012 (1) Small Size Units, GLA ≤ 500 sqm (2) Spain NSI:
Slide 25: La Maquinista in motion: re-tenanting
La Maquinista in motion… re-tenanting New anchors… … and a truly differentiating tenant mix in Barcelona 1st in mall in Spain 1st in mall in Spain Tenant rotation(1): 78% over the period (1) Share of number of stores with opening date after 01/01/2009 2019 INVESTOR DAYS 26
Slide 26: La Maquinista in motion: re-designing and re-marketing
La Maquinista in motion… re-designing and re-marketing Re-designing Re-marketing Rest area, La Maquinista Art Battle, La Maquinista 2019 INVESTOR DAYS 27
Slide 27: The Fashion Pavilion
And now… The Fashion Pavilion 4,500 sqm new fashion offer 9 fashion flagships 3 MSU(1) out of 4 pre-let(2) Opening 2020 (1) Medium Size Units, GLA between 501 and 2,500 sqm 2019 INVESTOR DAYS 28 (2) Let or in advanced negotiations
Slide 28: The Fashion Pavilion
And now… The Fashion Pavilion Refurbishment HoT signed New escalator New letting 2019 INVESTOR DAYS 29
Slide 29: Brand new leisure and dining experience
And now… Brand new leisure and dining experience Total dining 10,100 sqm +2,500 sqm Total restaurants 45 +8 units New concert & animation area Cinema: 13 screens Fully refurbished Opening 2020 2019 INVESTOR DAYS 30
Slide 30: Brand new leisure and dining experience
And now… Brand new leisure and dining experience New stage New events space New family garden Cocktail bar New terraces 13 new dining New escalator concepts 2019 INVESTOR DAYS 31
Slide 31: Maquinext, a densification project
And beyond: Maquinext, a densification project Parking Maquinext Existing centre Potential Post 2023 for new residential, co-working, Delivery retail, dining & leisure 2019 INVESTOR DAYS 32
Slide 32: Maquinista: As a result
Maquinista: As a result… Standing asset ~30% Reversionary potential Fashion Pavilion, new leisure & dining 7.5 – 8.0 % experience (2020) expected ROI Mixed-use Post 2023 densification delivery To create more long-term value 2019 INVESTOR DAYS 33
Slide 33: How do we capture operational synergies?
HOW DO WE CAPTURE OPERATIONAL SYNERGIES?
Slide 34: Capturing operational synergies
Capturing operational synergies via... One brand One Commercial Partnerships One global leasing platform platform 2019 INVESTOR DAYS 35
Slide 35: Capitalizing on one Brand
Capitalizing on one Brand 10 assets rebranded in September 2019 2019 INVESTOR DAYS 36
Slide 36: Commercial Partnerships
COMMERCIAL PARTNERSHIPS W UNIBAIL-RODAMCO-WESTFIELD
Slide 37: One Commercial Partnerships platform
One Commercial Partnerships platform Three main business lines tailored to brands and retailers Media Retail Brand experience 40%(1) 34%(1) 17%(1) Outdoor screen, Westfield London Chanel pop-up, Aupark Mercedes experience, Westfield Stratford City (1) As percentage of income. Scope: all managed asse
Slide 38: One Commercial Partnerships platform: new team
One Commercial Partnerships platform New experienced team and processes in place DIRECTOR OF COMMERCIAL Paul PARTNERSHIPS EUROPE BUTTIGIEG Ex-W, London based HEAD OF COMMERCIAL HEAD OF BRAND EXPERIENCE HEAD OF MALL RETAIL HEAD OF MEDIA PARTNERSHIPS FRANCE & UK & EUROPE UK & EUROPE UK & EUROPE EUROPE
Slide 39: Commercial Partnerships synergies
Commercial Partnerships synergies Continental Europe: capitalizing on Westfield experience Teams in place Detailed asset by asset review performed in all regions Densification of digital totems and large screens started New brand partnerships signed + €25 Mn +10% 63% Revenue synergies in 2023(1) CAG
Slide 40: Media - Digital screens and totems
Media - Digital screens and totems: Best operators selling our leading media portfolio Large outdoor screens Large indoor screens Digital Totems 2019 INVESTOR DAYS 41
Slide 41: Retail: kiosks and pop-ups
Retail: kiosks and pop-ups Devialet, Les Quatre Temps Peloton, Westfield London 2019 INVESTOR DAYS 42
Slide 42: Brand experience: integrating brands into customer touchpoints
Brand experience: integrating brands into customer touchpoints Jeep experience at Equinoccio Samsung experience at Westfield London 2019 INVESTOR DAYS 43
Slide 43: One international leasing platform
ONE INTERNATIONAL LEASING PLATFORM
Slide 44: Best markets, best cities, best assets
Best markets, best cities, best assets ALLOW FOR UNIQUE STRATEGY to make URW THE PREFERRED PARTNER to create global opportunity via scale 2019 INVESTOR DAYS 45
Slide 45: One international platform for global retailers
One international platform for global retailers INTERNATIONAL EUROPEAN 2 1 LEASING LEASING PLATFORM PLATFORM 2 1 2019 INVESTOR DAYS 47
Slide 46: One international platform for global retailers
One international platform for global retailers Traditional landlord - retailer account model URW landlord - retailer account model CORPORATE PARTNER GROUP INTERNATIONAL LEASING EU Account Manager US Account London Manager New York Paris Los Angeles Asian Sourcing Social Media Monitoring Corporate P
Slide 47: Group International Leasing: International and experienced team
Group International Leasing: International and experienced team PRESIDENT GROUP DIRECTOR OF INTERNATIONAL LEASING David COO RUDDICK US Ex-W, LA based EU DIRECTOR OF INTERNATIONAL SVP INTERNATIONAL LEASING LEASING EUROPE NYC based Paris based VP DIGITALLY NATIVE VP INTERNATIONAL LEASING KEY ACCOUNT M
Slide 48: Group International Leasing scope
Group International Leasing scope Transcontinental Cross-Borders Mature international brands Established presence across URW portfolio 16 (both US & EUR platforms) Influencer Brands Highly differentiated brands with a growing or emerging presence 115 Dynamic list, reviewed regularly DNVBs (Digital N
Slide 49: Increasing negotiation power
Increasing negotiation power 101 meetings at ICSC conference Accelerating International Cross Border Retailers’ development in both platforms Direct access to retailers’ decision makers Best retailers’ partners Increased ability to source upcoming brands Combining strengths in Europe and the United
Slide 50: Relationship model
Relationship model LOYALTY Westfield World Trade Center, Nicki Minaj Concert AIRPORTS PHYSICAL VA L U E PROPOSITION FOR LAX Tom Bradley International Terminal R E TA I L E R S BRAND MARKETING VENTURES Amazon Books, Westfield Century City 2019 INVESTOR DAYS 52
Slide 51: Embracing the Convergence of Digital
Embracing the Convergence of Digital #DNVB Stores 90 80 77 Casper 70 65 60 50 40 40 38 35 UNTUCKit 30 24 18 20 12 10 8 US 1 1 1 EU 0 2013 2014 2015 2016 2017 2018 2019 YTD Jimmy Fairly 2019 INVESTOR DAYS 53 Includes signed but not yet opened DNVB deals
Slide 52: Platform strategy: Health & Wellness
Platform strategy Health & Wellness Offering a sense of community & helping consumers look and feel their best with health, wellness, athleisure, & boutique fitness brands 2019 INVESTOR DAYS 54 SoulCycle, Westfield UTC
Slide 53: Platform strategy: Contemporary Designers
Platform strategy Contemporary Designers Emerging & established premium brands with strong consumer engagement both online and offline 2019 INVESTOR DAYS 55 James Perse, Westfield UTC
Slide 54: Platform strategy: Living
Platform strategy Living Appealing to the senses with showcases of home goods, audio products & technology 2019 INVESTOR DAYS 56 Arhaus, Westfield UTC
Slide 55: Platform strategy: Entertainment
Platform strategy Entertainment Our global entertainment platform of bold and engaging events 2019 INVESTOR DAYS 57 Dreamscape, Westfield Century City
Slide 56: Platform strategy: Luxury
Platform strategy Luxury Iconic global brands with strong presence at URW flagship properties in key markets, including Los Angeles, Silicon Valley, New York & London 2019 INVESTOR DAYS 58 Louis Vuitton, Westfield London
Slide 57: Platform strategy: Dining
Platform strategy Dining Bringing food to the forefront with a unique, chef-led culinary collection 2019 INVESTOR DAYS 59 Eataly, Westfield Century City
Slide 58: Our first year in international leasing
Our first year in international leasing Promoting Developed Continued Set up Created new URW new URW discussions new ambition new structure network culture with new to global leading brands market 2019 INVESTOR DAYS 60 Westfield London, 10th anniversary
Slide 59: French portfolio in motion
FRENCH PORTFOLIO IN MOTION W UNIBAIL-RODAMCO-WESTFIELD
Slide 60: Case studies: Adapting to customer expectations
Case studies: Adapting to customer expectations Average projects ROI 7.0% - 7.5% 2019 INVESTOR DAYS 62
Slide 61: Vélizy 2: Adapting to customer expectations
Vélizy 2: Adapting to customer expectations C A S E S T U D Y A86 Ideal location N118 10 km from Paris A86 and N118 highways Opening Retail extension 1972 2022 Dining and leisure extension 2019 pre 2019 2019 2022 GLA (sqm) 104,000 123,400 141,800 Units 168 191 245 2019 INVESTOR DAYS 63
Slide 62: A new iconic cinema
A new iconic cinema 18 screens 3,800 seats 1.8 Mn expected tickets/year x6 tickets vs. old cinema 2019 INVESTOR DAYS 64
Slide 63: Dining and Leisure extension inaugurated on March 20, 2019
Dining and Leisure extension inaugurated on March 20, 2019 +20,000 sqm GLA +23 Restaurants Fully let +20.0%(1) Footfall increase in entire SC +16.2% Lfl(2) Small units sales growth in entire SC (1) May 2019 vs May 2018 (2) YTD, from 01/01/19 to 04/30/19 2019 INVESTOR DAYS 65
Slide 64: Retail extension to be delivered by 2022
Retail extension to be delivered by 2022 +19,000 sqm GLA +54 Units o/w 9 MSU and LU +550 Parking spaces Works launched when Dining & Leisure extension Retail extension 50% preletting 2019 INVESTOR DAYS 66
Slide 65: Parly 2: Anticipating customer demands
Parly 2: Anticipating customer demands C A S E S T U D Y Towards A13 Towards Louveciennes/Villevert Wealthy catchment area 3 Ideal location near Versailles castle 15 km west of Paris A13 highway Mall opening Extension 2 2 1969 2017 Extension 1 Cinema opening 1 1987 2019 1987 2019 GLA (sqm) 107,200 1
Slide 66: Attracting an exclusive and differentiated offer
Attracting an exclusive New tenants in the retail extension… and differentiated offer …reinforcing the existing part (1) +7.2% footfall after opening (1) November 18 vs November 17 2019 INVESTOR DAYS 68
Slide 67: Implementing a strong leisure offer: new UGC Multiplex
Implementing a strong leisure offer: new UGC Multiplex Opening June 25, 2019 12 screens 2,200 seats 700 k tickets (forecast) 2019 INVESTOR DAYS 69
Slide 68: La Part Dieu: growing urban landscape
La Part Dieu: growing urban landscape C A S E S T U D Y Number of workers Number of transport in the district users per day +71% +82% 96,000 300,000 56,000 165,000 Office GLA Opening 1975 +48% Retail extension 1,700,000 2010 1,150,000 sqm sqm Dining and retail extension 2020 Today By 2030 2019 INVES
Slide 69: The key destination in Lyon
The key destination in Lyon +31,000 sqm GLA (total 161,000 sqm) + 65 stores (total 291) 31 Mn annual visits today (no. 3 in France) 2019 INVESTOR DAYS 72
Slide 70: Boosting La Part-Dieu food/dining & leisure offers
Boosting La Part-Dieu food/dining & leisure offers 1 • Food & Dining 2a 1a Dining experience 1b Food Society +8,000 sqm +2,900 sqm From 7.6% to 12.7% of GLA 3 1b 1a 2 • Leisure 2a New cinema 2b Other leisure offer 18 screens +6,000 sqm 2b (vs. 14 today) From 3.7% to 9.3% of GLA 3 • Retail Gare SNCF
Slide 71: Reinventing dining together: the Dining Plaza
Reinventing dining together: the Dining Plaza 2019 INVESTOR DAYS 75
Slide 72: Reinventing dining together: the Food Society
Reinventing dining together: the Food Society 2019 INVESTOR DAYS 76
Slide 73: Creating an exclusive mall with influencer brands
Creating an exclusive mall with influencer brands Premium area Lifestyle brands Attract youngsters, families and affluent consumers 2019 INVESTOR DAYS 77
Slide 74: Case studies: Adapting to retailer challenges
Case studies: Adapting to retailer challenges 2019 INVESTOR DAYS 78
Slide 75: Carrefour Euralille restructuring: addressing our challenges
Carrefour Euralille restructuring: addressing our challenges Before (2014) After (2016) Primark and 9 new units over 6,850 sqm 2019 INVESTOR DAYS 79
Slide 76: Carrefour Euralille restructuring: a success!
Carrefour Euralille restructuring: a success! 1st floor hypermarket acquired Unit reshaped introducing Primark and 9 units(1) +4.1 Mn visits (+33%) since 2014 +€25 Mn turnover in the restructured area (+31%)(2) (1) Including one kiosk (2) Estimated sales for Primark 2019 INVESTOR DAYS 80
Slide 77: So Ouest: Replacing underperformers by successful new concepts
So Ouest: Replacing underperformers by successful new concepts Before After Level +1 +6% Footfall since opening Level 0 +73% in sales volume(1) Level -1 +10% MGR uplift (1) Based on projections on R12M basis starting November 2018 compared to M&S sales excluding projection sales from 2019 INVESTOR D
Slide 78: So Ouest: attracting more influencer brands
So Ouest: attracting more influencer brands Maje, Opened May 2019 Sandro, Opened May 2019 John Reed, Opening H1 2020 2019 Investor Days 82