Unibail-Rodamco-Westfield (URW), a prominent player in malls, offices, and convention centers, has showcased remarkable resilience in the face of third-quarter challenges. This performance resulted in a noteworthy 11.7% surge in like-for-like turnover for the first nine months of the year, coming close to the €2.322 billion total turnover mark.
Digging deeper into the details, even when considering disposals in 2022 and 2023, along with reduced property development and project management revenues following 2022 project completions, the overall performance still demonstrated a solid 1.9% increase.
However, amid these challenges, URW’s accomplishments shone brightly. Like-for-like gross rental income within URW’s shopping centers surged by 11.6%, and tenant sales saw an impressive 7.9% increase. Shoppers are not only returning but also spending with enthusiasm, surpassing the 5.9% average inflation rate.
URW emphasized that its performance exceeded national sales indices, with sales climbing by 9.7% in Continental Europe, 6% in the UK, and 4.3% in the US (or 6.2% when excluding the Luxury sector). These figures underline URW’s continuous expansion of market share.
Notably, the Q3 tenant sales performance, which saw a 5.5% uptick, remained relatively unaffected by challenging economic conditions in many countries.
In total, shopping center turnover for the first nine months reached an impressive €1.823 billion, with gross rental income (GRI) totaling €1.549 billion.
GRI increased significantly in France by double digits, while Spain experienced a proportional decline. Central Europe, Austria, and Germany all posted positive results, with the Nordics showing a slight increase, and the Netherlands registering a dip. Meanwhile, the UK’s GRI soared by 34.5%, albeit with a dip in the US.
URW reported a strong rent collection rate, with 96% for Q3 (an improvement over Q1 and consistent with Q2 levels) and a robust 97% for the nine-month period.
Leasing activity remained robust, with 1,685 deals inked in the first nine months, marking a 5.5% year-on-year increase.
URW is making excellent progress in its €4 billion European disposals program, with 90% already completed. The recent sale of Polygone Riviera in France on October 18 further underscores their commitment to streamlining their portfolio. In the US, the process continues with sales of Westfield Mission Valley Shopping Centers and Westfield Valencia Town Center.
For the full year, URW anticipates 2023 adjusted recurring earnings per share (AREPS) to be at least €9.50, signaling a promising outlook ahead.
