Unibail-Rodamco-Westfield (URW), a prominent player in the shopping mall industry, has addressed concerns about the financial stability of mall landlords by confirming its strong cash position. In a recent statement, URW assured investors and stakeholders that it maintains a “strong liquidity position” despite the challenges imposed by the COVID-19 pandemic.

Earlier announcements from URW had indicated that its operations were already being impacted in various markets due to government-imposed restrictions aimed at curbing the virus’s spread. Unfortunately, the situation has since worsened, leading to additional restrictions in France and Germany, as well as the temporary closure of its US centers. The company acknowledged the uncertainty surrounding the duration and impact of the crisis on its earnings.

Nevertheless, URW remains confident in its ability to navigate through this turbulent period. Proactive measures have been taken to ensure access to liquidity, with €10.2 billion in cash on hand and undrawn credit lines at its disposal. This considerable financial strength allows URW to cover all anticipated funding needs, even under a highly stressful scenario.

Furthermore, URW is actively implementing cost-saving initiatives to reduce non-staff expenses and defer non-essential capital expenditure. Alongside these measures, the company is making use of any relevant facilities or arrangements provided by national authorities to support businesses during this crisis. URW stands ready to expand these actions if the crisis persists for an extended period.

The confirmation of URW’s robust cash position brings reassurance to investors, tenants, and other stakeholders within the retail industry. Despite the unprecedented challenges faced by shopping malls, URW is well-prepared to weather the storm and emerge stronger once the crisis subsides. The company’s proactive approach to liquidity management and cost-saving measures showcases its commitment to navigating through these uncertain times. As the situation continues to evolve, it is vital for participants in the retail industry to closely monitor the actions of major players like URW for valuable insights and guidance on best practices during this challenging period.

For more information on URW’s strong cash position and its proactive measures, visit:URW’s official update on COVID-19

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