Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — H1 2024 Earnings Presentation
40 slides from Unibail-Rodamco-Westfield's earnings presentation, Jul 25, 2024
Slide 1: Half-Year Results
HALF-YEAR RESULTS UNIBAIL-RODAMCO-WESTFIELD
Slide 2: H1-2024 Overview
H1-2024 OVERVIEW JEAN-MARIE TRITANT CEO Westfield Centro
Slide 3: Strong H1-2024 results underpinned by solid fundamentals
Strong H1-2024 results underpinned by solid fundamentals Robust retail performance supported by increased tenant sales and footfall, and dynamic leasing activity Record results for C&E activity, up +53.2%(1) thanks to early positive impact of the Paris 2024 Olympics, and Offices up +23.3%(2) with Tr
Slide 4: Westfield Hamburg-Überseequartier project update
Westfield Hamburg-Überseequartier project update Project TIC increased to €2.16 Bn from €1.64 Bn due to: c. €160 Mn c. €360 Mn directly attributable to opening of overruns due to change orders, delay and water leak quantity gaps and provisions for claims Project and country leadership changed in Jul
Slide 5: Westfield Hamburg-Überseequartier in figures
Westfield Hamburg-Überseequartier in figures Fire Safety System - 72,000 heads 2nd Floor 10 buildings 530,000 - 360 km of pipes interconnected on total sqm - 130 alarm stations (valves) 1st Floor single raft(1) Gross Built Area Building Management Ground Floor System (BMS) - 570 control cabinets 1,5
Slide 6: Westfield Hamburg-Überseequartier TIC update
Westfield Hamburg-Überseequartier TIC update €520 Mn total TIC increase Technical solutions Scope gaps to address water leak Additional quantities Construction site active for longer Tenant compensation Change orders Opening event costs Provisions for past contracts €160 Mn €360 Mn (1) (2) Reinforce
Slide 7: Westfield Hamburg-Überseequartier impact and mitigation
Westfield Hamburg-Überseequartier impact and mitigation No expected impact on +50 bps on the LTV as at 2024 AREPS guidance June 30, 2024 Re-prioritisation and Retail opening on rephasing of standing October 17, 2024(1) asset Capex plans to mitigate around half of the overruns 1. Retail opening will
Slide 8: H1-2024 Financial Highlights
H1-2024 Financial Highlights +5.6% 1.9% €5.14 9.3x LFL NRI(1) COST OF DEBT H1-2024 AREPS NET DEBT TO EBITDA vs. H1-2023 vs. 1.8% at FY-2023 in line with FY guidance stable vs. FY-2023 1. Group Lfl NRI including airports, excluding the impact of the Olympics 2024 HALF YEAR RESULTS 8
Slide 9: Positive URW Shopping Centre operational performance
Positive URW Shopping Centre operational performance Sales & footfall(1) Vacancy rate(2) MGR signed(3) MGR uplift(3) in € Mn +11.9% +4.2% -80 bps 214 217 +10.6% Tenant sales vs. H1-2023 21% 21% +7.4% vs. H1-2023 159 +6.9% 19% 6.9% 6.3% 79% 79% +2.9% 6.6% 81% Footfall 5.5% H1-2019 H1-2023 H1-2024 vs.
Slide 10: Growing tenant sales and footfall in Europe and the US
Growing tenant sales and footfall in Europe and the US EUROPE(1) UNITED STATES(1) Shopping Centres Flagships +5.1% +5.1% +3.9% +2.5% +2.2% +2.3% National Sales Indices(2) National Sales Indices(2) Footfall vs. H1-2023 Sales vs. H1-2023 Footfall vs. H1-2023 Sales vs. H1-2023 vs. H1-2023 vs. H1-2023 €
Slide 11: URW assets gaining market share
URW assets gaining market share Retailers focus on prime locations… … boosting URW fashion sales performance 3rd largest Lacoste store worldwide, 3.5x GLA increase URW fashion sales vs. Fashion National Sales Indices(2) +12% Continental Europe(3) +4.7% +7.8% average GLA per fashion 33% -3.1% store i
Slide 12: Westfield Rise on track to achieve 2024 objectives
Westfield Rise on track to achieve 2024 objectives UNPARALLELED IN-MALL ATTRACTIVE TO ROBUST FINANCIAL MEDIA NETWORK MAJOR BRANDS PERFORMANCE 1,797 545 +21% Screens(1) Physical activations in H1-2024 Average revenue per visit (+62 vs. FY-2023) (+7% vs. H1-2023) vs. H1-2023 Largest interactive indoor
Slide 13: Additional pipeline deliveries
Additional pipeline deliveries H1-2024 H2-2024 Fisketorvet dining experience, Copenhagen Westfield CNIT, Paris La Défense Old Orchard Lord & Taylor unit, Chicago Coppermaker Square, London Lightwell, Paris La Défense 39th Westfield URW SHARE 100% URW SHARE 100% branded asset URW SHARE 100% URW SHARE
Slide 14: Continuous focus on disposals
Continuous focus on disposals €0.3 Bn of transactions(1) completed or secured in the US, Spain, France, and Slovakia in H1-2024, in a challenging investment market €5.3 Bn(2) disposals completed or secured since 2021 Active discussions on an additional €1.0 Bn of asset disposals Committed to delever
Slide 15: URW consistent sustainability performance and recognition
URW consistent sustainability performance and recognition PERFORMANCE UPDATE H1-2024 RECOGNITIONS & LEADERSHIP ENVIRONMENTAL -43% reduction in carbon emissions from TRANSITION Scopes 1, 2 & 3(1) vs. -50% target in 2030 BETTER PLACES CERTIFICATION January February March June July 100% of assets(2) ce
Slide 16: H1-2024 Financial Review
H1-2024 FINANCIAL REVIEW FABRICE MOUCHEL CFO Westfield London
Slide 17: 2024 Half-Year Results
2024 Half-Year Results € Mn H1-2024 H1-2023 Change LfI Change Shopping Centres 1,065 1,059 +0.6% +5.3%(1) Offices & Others 50 41 +20.4% +23.3% Convention & Exhibition 76 52 +44.4% +11.3%(2) Net Rental Income 1,190 1,152 +3.3% +5.6%(3) EBITDA 1,195 1,157 +3.3% +5.8%(4) Recurring Net Result (Group 764
Slide 18: H1-2024 AREPS in line with FY guidance
H1-2024 AREPS in line with FY guidance +€0.27 -€0.03 -€0.13 Taxes +€0.39 -€0.11 Minorities €5.28 -€0.06 Other(2) €5.32 -€0.30 €5.14 -€0.18 -€0.29 AREPS H1-2023 Disposals (1) Shopping Centres & Convention & Exhibition Financial & General Others AREPS H1-2024 Hybrid AREPS H1-2024 Offices at 100% expen
Slide 19: Strong Shopping Centre NRI performance
Strong Shopping Centre NRI performance Renewals, relettings, Doubtful Indexation net of departures SBR debtors Other Total Lfl Continental Europe +2.8% +0.5% +1.0% +0.9% +0.0% +5.3% United Kingdom +0.0% +3.1% -1.2% -0.9% +7.1% +8.1% Total Europe +2.6% +0.8% +0.8% +0.8% +0.6% +5.5% US Flagships +0.0%
Slide 20: Bankruptcies
Bankruptcies Bankruptcies Bankruptcies evolution in H1-2024 # of stores 391 Cont. Europe UK US URW # of stores 94 6 23 123 250 261 % of total units 1.4% 0.9% 0.9% 1.2% 198 210 211 In place 43 4 15 62 144 123 Replaced 16 1 0 17 102 101 71 In place / replaced 63% 83% 65% 64% Vacant 35 1 8 44 2024 HALF
Slide 21: Shopping Centre vacancy
Shopping Centre vacancy Vacancy levels(1) URW(2) Continental Europe UK US Flagships 9.7% 8.5% 8.3% 7.7% 7.7% 7.9% 7.3% 7.4% 6.9% 6.9% 6.3% 6.4% 5.4% 5.4% 5.5% 4.0% 3.6% 3.2% 3.5% 2.5% FY-2019 H1-2022 H1-2023 FY-2023 H1-2024 1. EPRA vacancy rate 2. Shopping Centres including US Regionals & CBD asset
Slide 22: Strong leasing activity
Strong leasing activity H1-2024 MGR signed: €217 Mn +1.4% vs. H1-2023 | +36.6% vs. H1-2019 URW Continental Europe UK US 214 217 159 21% 21% 19% 127 91 94 101 16% 27% 62 79% 79% 13% 17% 81% 25 28 40 33% 84% 23 87% 83% 1% 12% 12% 43% 73% 88% 67% 99% 88% 57% H1-2019 H1-2023 H1-2024 H1-2019 H1-2023 H1-2
Slide 23: Positive MGR uplift supported by long-term deals
Positive MGR uplift supported by long-term deals Deals > 36 months All deals FY-2023 H1-2024 FY-2023 H1-2024 Continental Europe +4.5%(1) +5.4%(1) Continental Europe +2.8%(1) +2.6%(1) UK +3.9% +18.5% UK +2.1% +18.2% US +32.8% +31.9% US +17.7% +14.7% +10.6%(1) +11.9%(1) +6.9%(1) +7.4%(1) +13.7% +9.1%
Slide 24: Continued sustainable OCR integrating sales performance
Continued sustainable OCR(1) integrating sales performance Continental Europe UK US Flagships 19.9% 17.4% 16.8% 15.5% 15.3% 15.4% 12.5% 12.9% 12.8% OCR FY-2019 OCR FY-2023 OCR H1-2024 OCR FY-2019 OCR FY-2023 OCR H1-2024 OCR FY-2019 OCR FY-2023 OCR H1-2024 1. Occupancy Cost Ratio (“OCR”): (rental cha
Slide 25: Offices & Others: strong NRI growth
Offices & Others: strong NRI growth NRI (€ Mn) H1-2024 H1-2023 Change Lfl Change France 41 32 +27.4% +32.3% Others 9 9 -3.5% -2.6% Total 50 41 +20.4% +23.3% 2024 HALF YEAR RESULTS 25 Trinity, Paris La Défense
Slide 26: Convention & Exhibition: strong 2024 performance
Convention & Exhibition: strong 2024 performance Change vs. Change vs. € Mn H1-2024 H1-2023 H1-2018 H1-2023(1) H1-2018(2) Net Rental 76 52 49 +11.3% +19.1% Income Property Services 33 19 32 +64.8% +4.6% & Other Income(3) Total NOI 109 71 81 +25.4% +13.2% 1. Excludes triennial shows and impact of the
Slide 27: Convention & Exhibition benefitting from the Paris 2024 Olympics
Convention & Exhibition benefitting from the Paris 2024 Olympics HOSTING KEY OLYMPIC & PARALYMPIC ORGANISATIONS & EVENTS Paris Nord Villepinte (North Paris Arena) D • Olympics: Boxing, Modern Pentathlon Fencing • Paralympics: Sitting Volleyball Paris-Le Bourget • International Broadcast Centre (IBC)
Slide 28: Continuous cost discipline
Continuous cost discipline NET ADMINISTRATIVE EXPENSES(1) DOWN -3% vs. H1-2023 AND -14% vs. H1-2019 H1-2019 H1-2020 H1-2021 H1-2022 H1-2023 H1-2024 116 113 105 94 95 98 94 91 84 84 82 81 Net administrative expenses(1) at constant FX rate H1-2019 net administrative expenses(1) indexed with cumulated
Slide 29: GMV evolution impacted by Westfield Hamburg-Überseequartier
GMV evolution impacted by Westfield Hamburg-Überseequartier +€794 Mn -€291 Mn +€359 Mn €49,777 Mn Westfield €49,574 Mn Hamburg -€37 Mn -€622 Mn December 2023 Disposals CAPEX/Acquisitions/Transfers Lfl revaluation Non Lfl revaluation & Currency Effect June 2024 revaluation of shares (incl. Westfield
Slide 30: EPRA NRV evolution
EPRA NRV evolution EPRA Net Reinstatement Value(1) (in € per share) €146.70 €144.20 +€5.49 +€0.93 €142.50 -€2.50 -€1.53 -€1.98 -€4.61 December 2023 Distribution NRV after distribution Lfl Asset Revaluation Non Lfl Asset Revaluation Recurring Results (3) FX impact Other (4) June 2024 & Intangible Ass
Slide 31: Group shopping centre portfolio valuation
Group shopping centre portfolio valuation Lfl revaluation since Dec. 31, 2018(1) Continental Europe UK US URW (72% of GMV) (6% of GMV) (22% of GMV) +0.7% +0.6% +1.4% -1.3% -2.0% -0.6% -4.2% -1.6% -4.7% -4.7% -2.0% -4.4% -2.6% -4.0% -0.5% -5.4% -8.2% -7.4% -9.1% -8.5% -11.3% -14.0% -12.6% -26.3% Tota
Slide 32: H1-2024 values reflect stable Net Initial Yields and cash flow growth
H1-2024 values reflect stable Net Initial Yields and cash flow growth Net Initial Yield(1) Continental Europe UK US Flagships 6.1% 6.2% 6.2% 7.0% 5.6% 5.8% 5.4% 5.4% 4.9% 4.8% 5.0% 4.2% 4.3% 4.3% 3.8% 5.5% 2018 2022 2023 H1-2024 H1-2024 2018 2022 2023 H1-2024 H1-2024 2018 2022 2023 H1-2024 H1-2024 C
Slide 33: 81% of committed projects delivered in H2-2024
81% of committed projects delivered in H2-2024 €2.9 Bn +€0.1 Bn €0.1 Bn €2.5 Bn +€0.5 Bn €0.1 Bn -€0.2 Bn -€1.8 Bn €2.8 Bn €2.4 Bn -€0.6 Bn €0.6 Bn €0.1 Bn €0.5 Bn FY-2023 Deliveries Westfield Hamburg New projects H1-2024 H2-2024 deliveries Remaing to be spent Post FY-2024 invested to date in H2-202
Slide 34: Proactive asset management offering optionality
Proactive asset management offering optionality Acquisition of partners’ 50% stakes through JV buyout agreements URW SHARE 100% Westfield Montgomery, Washington DC URW SHARE 100% CH Ursynów, Warsaw GLA 104,900 sqm GLA 46,700 sqm Reversionary Improvement of the offer Opportunity & Densification poten
Slide 35: Net debt & financial ratios evolution
Net debt & financial ratios evolution FY-2023(2) €20.0 Bn 48.4% 47.1% 46.3% €24.2 Bn €24.3 Bn 45.6% 45.2% Recurring Earnings -€0.8 Bn 43.3% 41.8% 44.7% 42.5% 41.8% 41.2% €22.6 Bn CAPEX +€0.7 Bn 38.6% 14.6x 13.7x Distribution +€0.4 Bn 5.7x €20.7 Bn 4.6x 4.2x 9.9x 4.2x €20.0 Bn €20.4 Bn FX impact +€0.
Slide 36: Controlled cost of debt
Controlled cost of debt Cost of debt and interest rates evolutions Annual projection of average hedging amounts & fixed rate debt up to 2028 3.6% 3.9% (as at June 30, 2024) 3.2% 3.7% €30 Bn 3.1% Proportionate Gross Debt(1) €25 Bn €28.4 Bn 2.1% 2.8% 2.5% 1.9% 2.0% 2.0% 1.9% €20 Bn Proportionate 2.0%
Slide 37: Over 36 months of liquidity secured
Over 36 months of liquidity secured Group liquidity Debt maturities(1) fully covered over next 3 years €2.1 Bn In € Bn As at June 30, 2027 debt raised in H1-2024 Of which 7% of mortgage refinancing 13.6 €10.6 Bn 13.0 12.7 12.1 11.4 €8.5 Bn 93% 9.7 of H1-2024 raised debt being 8.1 €5.9 Bn sustainable
Slide 38: Conclusion
CONCLUSION JEAN-MARIE TRITANT CEO Fran Perea concert, Westfield Parquesur, April 2024
Slide 39: 2024 guidance reconfirmed
2024 guidance reconfirmed Main Assumptions — Operating performance in H2-2024 in line with H1 — Positive impact of 2024 Paris Games on C&E activity — Impact of 2024 project deliveries — Ongoing costs discipline €9.65 to €9.80 2024 Adjusted Recurring — Impact of 2023 and 2024 disposals Earnings Per S
Slide 40: www.urw.com
y UNIBAIL-RODAMCO-WESTFIELD www.urw.com
Unibail-Rodamco-Westfield — H1 2024 Earnings Presentation on 6ix