Unibail-Rodamco-Westfield (URW), the leading company in the mall, office, and convention center industry, has demonstrated its resilience by delivering a strong third quarter performance. Despite facing some challenges, URW managed to achieve an 11.7% increase in like-for-like turnover for the first nine months of the year, totaling just below €2.322 billion.

However, when considering disposals and lower revenue from property development and project management in the coming years, the overall performance showed a more modest rise of 1.9%. Nevertheless, URW achieved significant milestones during this period. The company experienced an impressive 11.6% growth in like-for-like gross rental income in its shopping centers, indicating that consumers visiting these locations are spending more. In fact, tenant sales increased by 7.9%, surpassing the average inflation rate of 5.9%.

URW’s overall performance not only exceeded national sales indices but also demonstrated the company’s ability to gain market share. Continental Europe experienced a 9.7% increase in sales, while the UK saw a growth of 6% and the US experienced a 4.3% increase (or 6.2% excluding Luxury). These positive results were achieved despite the challenging economic conditions in several countries.

In terms of specific regions, the total shopping center turnover for the nine-month period amounted to €1.823 billion, with gross rental income reaching €1.549 billion. France witnessed double-digit growth in gross rental income, whereas Spain experienced a decline of a similar level. On the other hand, Central Europe, Austria, and Germany all performed well. The Nordics saw a slight increase, while the Netherlands faced a decline in gross rental income. Notably, the UK experienced a significant surge of 34.5% in gross rental income, while the US encountered a dip.

URW’s rent collection for the third quarter stood at 96%, surpassing levels from the first quarter and aligning with the second quarter. The nine-month rent collection figure was 97%. The company also reported positive leasing activity, with 1,685 deals signed in the first nine months, marking a 5.5% increase compared to the previous year.

URW has been making notable progress in its €4 billion European disposals program, with 90% of it already completed. The sale of Polygone Riviera in France was finalized on October 18th. Additionally, the company is streamlining its US portfolio with the sales of Westfield Mission Valley Shopping Centers and Westfield Valencia Town Center.

Looking ahead, URW has projected adjusted recurring earnings per share (AREPS) of at least €9.50 for the full year of 2023. These positive results and future expectations demonstrate URW’s ability to overcome challenges and adapt to changing market conditions, positioning the company for continued success in the future.

Useful links:
URW Official Website
URW News on Reuters