Financial information as at March 31, 2020
Paris, Amsterdam, April 29, 2020
Press release
Financial information as at March 31,
2020
- URW reports total turnover through March 31, 2020:
+1.8%.
- The quarter was marked by the initial impact of the COVID-19
outbreak, affecting primarily the Convention & Exhibition
business in France and retail activity in parts of Europe.
- As from April 20, progressive reopening has started in
Germany. Austria is expected to follow on May 2, Poland on May 4,
France(1), the Czech Republic and Denmark on May 11, and Spain
between May 24 and June 3.
- Through February 29, the Group’s tenant sales were up by
+2.8%, of which +3.3% in Europe and +1.6% in the US.
- Turnover
The proportionate turnover of
Unibail-Rodamco-Westfield (“URW” or the “Group”) for the first
three months of 2020 amounted to €956.6 Mn, up by +1.8%, mainly due
to the property development and project management revenues, partly
offset by disposals completed in 2019 and the mandated cancellation
of major events in March in the Convention & Exhibition
business due to COVID-19. The strong growth in the property
development and project management revenues is driven by projects
in the UK during the quarter. COVID-19 had only a limited effect on
the Group’s Q1 turnover as rents are billed and paid quarterly in
advance in most of Europe and monthly in the US. The impact of the
pandemic will be reflected as of Q2, although at this time it is
too early to reliably estimate such impact on the Group’s results
for 2020.
Turnover |
|
IFRS |
Proportionate(2) |
YTD in €
Mn, excluding VAT |
3M-2020 |
3M-2019 |
Change |
3M-2020 |
3M-2019 |
Change |
Shopping Centres |
515.6 |
514.4 |
+0.2% |
679.1 |
673.9 |
+0.8% |
Offices & Others(3) |
26.2 |
29.6 |
-11.4% |
28.5 |
31.7 |
-10.1% |
Convention & Exhibition(3) |
69.2 |
97.9 |
-29.3% |
69.7 |
98.5 |
-29.3% |
Rental income |
46.7 |
62.4 |
-25.2% |
47.2 |
63.0 |
-25.1% |
Services |
22.5 |
35.5 |
-36.7% |
22.5 |
35.5 |
-36.7% |
Property services and other activities
revenues |
43.3 |
43.5 |
-0.5% |
43.3 |
43.5 |
-0.5% |
Property
development and project management revenues |
136.0 |
91.9 |
+48.0% |
136.0 |
91.9 |
+48.0% |
Total |
790.3 |
777.4 |
+1.7% |
956.6 |
939.6 |
+1.8% |
Figures may not add up due to rounding
- Gross Rental Income
The proportionate Gross Rental Income (GRI) of
the Shopping Centre division amounted to €679.1 Mn for Q1-2020, an
increase of +0.8%. GRI growth in the US, Germany and Spain was
strong with +6.7%, +3.1% and +2.5%, respectively. Austria and
Poland were impacted by government regulations suspending rental
payments from the start of the shutdown of retail stores in
response to the COVID-19 pandemic. The decrease in the Nordics is
mainly driven by the disposal of Jumbo in Q1-2019. The UK was
impacted by lower rents from tenants in CVA or administration, a
reduction in parking income since the beginning of the crisis in
March and a negative currency effect.
The GRI of the Offices & Others division was
€28.5 Mn, down by -9.9% compared to Q1-2019 due to the disposal of
Majunga and the transfer of the Michelet-Galilée building to the
pipeline, partly offset by the delivery of Shift.The GRI of the
Convention & Exhibition division decreased by -25.1% to €47.2
Mn, due to the limitation on attendee numbers imposed by the French
government from March 4 followed by its mandate to cancel all
public events.
Gross Rental Income |
|
IFRS |
Proportionate(2) |
YTD
in € Mn, excluding VAT |
3M-2020 |
3M-2019 |
Change |
3M-2020 |
3M-2019 |
Change |
Shopping
Centres |
515.6 |
514.4 |
+0.2% |
679.1 |
673.9 |
+0.8% |
France |
174.6 |
174.0 |
+0.4% |
176.7 |
176.2 |
+0.3% |
United States |
122.3 |
111.1 |
+10.1% |
245.2 |
229.8 |
+6.7% |
Central Europe |
52.2 |
54.3 |
-3.8% |
54.2 |
56.2 |
-3.4% |
Spain |
42.5 |
41.5 |
+2.5% |
42.6 |
41.6 |
+2.5% |
Nordics |
32.7 |
36.0 |
-9.2% |
32.7 |
36.0 |
-9.3% |
Austria |
22.9 |
28.2 |
-18.7% |
22.9 |
28.2 |
-18.7% |
United Kingdom |
25.8 |
27.0 |
-4.3% |
49.6 |
51.8 |
-4.4% |
Germany |
25.4 |
25.2 |
+0.7% |
38.1 |
36.9 |
+3.1% |
The Netherlands |
17.2 |
17.2 |
-0.2% |
17.2 |
17.2 |
-0.2% |
Offices
& Others |
26.2 |
29.6 |
-11.4% |
28.5 |
31.7 |
-9.9% |
France(3) |
18.2 |
21.8 |
-16.5% |
18.2 |
21.8 |
-16.5% |
Other countries |
8.0 |
7.8 |
+2.9% |
10.3 |
9.9 |
+4.7% |
Convention & Exhibition(3) |
46.7 |
62.4 |
-25.2% |
47.2 |
63.0 |
-25.1% |
Total |
588.6 |
606.5 |
-2.9% |
754.9 |
768.7 |
-1.8% |
Figures may not add up due to rounding.
Major events
- Footfall and tenant sales
Footfall(4) in the Group’s Continental European
shopping centres grew by +1.9% through February 29, 2020. Footfall
was particularly strong in France, up by +3.0%, despite the
continued public transport strikes. Footfall in the UK was up by
+2.9%. Tenant sales(5) through February 29, 2020, in the Group’s
European shopping centres(6) were strong, up by +3.3% (+3.4% for
Flagships(7)), of which +3.7% in Continental Europe (+3.9% in
Flagships) and +1.3% in the UK. Excellent performance was recorded
in the Nordics, Germany and Central Europe, with +12.4%, +6.6% and
+5.3%, respectively. The Nordics benefitted from the on-going
growth of Tesla sales. Excluding Tesla, URW’s Continental European
tenant sales increased by +2.7%.
Tenant sales in Europe outperformed the
aggregate national sales indices(8) (which for several of the
Group’s regions include online sales) by +50 bps. In France, tenant
sales outperformed the IDC(9) and CNCC(10) indices by +64 and +294
bps, respectively.
In the US, tenant sales excluding Tesla through
February 29, 2020, were up by +1.6% (+2.5% for Flagships(11)).
Following the widespread onset of the COVID-19
pandemic in early March, and the closure of most stores by
mid-March, tenants sales growth turned negative, with -59.5% in
Europe and -55.2% in the US(12) recorded for the month.
- Post-closing events
Since March 31, 2020, the Group has raised €2.8
Bn, including €1.4 Bn in a two-tranche senior bond offering: a €600
Mn bond with a 5-year maturity and a 2.125% fixed coupon, and an
€800 Mn bond with a 10-year maturity and a 2.625% fixed coupon.
After receipt of the bond proceeds, and payment
of the interim dividend on March 26, the Group had ample liquidity
with €11.7 Bn in cash on hand and undrawn credit lines as at April
28.
- COVID-19
Operations and health and safety measures:Since
March 24, all the Group’s shopping centres have been substantially
closed, except in Sweden and The Netherlands. While the situation
is evolving daily, a number of governments in the Group’s regions
have taken steps to gradually lift the restrictions imposed.
In Germany, most of the states have allowed
shops of less than 800 sqm to open from April 20, and in six out of
the nine of the Group’s centres the majority of stores are now
trading. Shopping centres are expected to open in Austria on May 2,
in Poland on May 4, in the Czech Republic and Denmark on May 11 and
in Spain between May 24 and June 3.
In France, most shopping centres are expected to
open on May 11, although the local prefect may decide on a
case-by-case basis to not allow a large shopping centre to open, in
order to prevent it from attracting excessive crowds from outside
its direct catchment area.
In the US, the reopening of the Group’s shopping
centres will occur on a state-by-state basis.
URW is ready to safely re-open its centres and
comply with all applicable health and safety regulations (for
example, limiting visitor numbers, waiting lines, social distancing
communication, hand sanitizer stations, regular in-depth cleaning,
wearing masks mandatory for all staff and the use of fresh air
instead of air recycling) as soon as permitted by local
authorities. URW is also preparing, in collaboration with
epidemiologists, its own demanding European health & safety
standards to be labelled by Bureau Veritas.
Rents:As a general policy, in markets where
rents are billed quarterly in advance, the Group has moved
temporarily to billing monthly. As at April 24, URW had collected
circa 20% of the April retail rent, despite having extended payment
terms for most of the April and May rent without applying
penalties.
Furthermore, the Group will support its tenants
through the crisis, primarily those who most need the help, i.e.
small and medium size retailers as well as certain restaurant
operators, through a combination of rent relief and rent deferral.
During closing URW has also reduced service charges at its shopping
centres as much as possible.
Capital expenditures and development pipeline:As
from December 31, 2019, URW had revised its pipeline categorization
and removed €3.2 Bn of projects. Following the outbreak of
COVID-19, the Group further reviewed its pipeline and announces
that it will remove an additional €1.6 Bn of controlled projects,
including Westfield Milano. Lastly, URW has also deferred
approximately €500 Mn of discretionary capital expenditures
budgeted for 2020.
Costs:URW expects to save approximately €60 Mn
by continuing to take all appropriate measures to offset the impact
of the crisis.
Community support and solidarity:Amidst this
unprecedented global pandemic, URW has also engaged in a series of
solidarity actions to support the communities in which the Group
operates, dedicating its resources, assets and connections to
address the challenges caused by the crisis. The Group’s teams are
supporting local hospitals, health care providers, police and fire
departments and are addressing the needs of vulnerable
populations, including the elderly, victims of domestic violence,
underprivileged families and children in urgent need of food and
other daily necessities, in the #KindnessTogether campaign in
Europe and #Westfieldcares in the US.
Lastly, the members of the Supervisory Board,
Management Board, Senior Management Team and 200 other senior
executives throughout the organisation have renounced part of their
remuneration during the period of closure in solidarity with
employees and to support initiatives linked to the COVID-19
crisis.
- Financial schedule
The next financial events in the Group’s
calendar will be:
May 15, 2020: AGM
Unibail-Rodamco-Westfield SE (to be held virtually)July 29,
2020: 2020 Half-Year results (after market close)
Notes:
- The local prefect may on a case-by-case basis decide a large
shopping centre may not open in order to prevent it from attracting
excessive crowds from outside its direct catchment area.
- Proportionate reflects the impact of proportional consolidation
instead of the equity method required by IFRS 11 of the URW jointly
controlled assets.
- Hotel assets were transferred from the Convention &
Exhibition segment to the Offices & Others segment; 2019 was
restated accordingly.
- Footfall data does not include Zlote Tarasy as it is not
managed by URW. Footfall in URW’s shopping centres in operation,
including extensions of existing assets, but excluding deliveries
of new brownfield projects, newly acquired assets and assets under
heavy refurbishment. For the period through February 29, 2020,
shopping centres excluded due to delivery or ongoing works were
Galerie Gaité, Les Boutiques du Palais, La Part-Dieu, CH Ursynow,
Westfield Mall of The Netherlands and Gropius Passagen.
- European tenant sales data does not include Zlote Tarasy as it
is not managed by URW. Tenant sales performance in URW’s shopping
centres (except The Netherlands) in operation, including extensions
of existing assets, but excluding deliveries of new brownfield
projects, newly acquired assets and assets under heavy
refurbishment. For the period through February 29, 2020, shopping
centres excluded due to delivery or ongoing works were Galerie
Gaité, La Part-Dieu, CH Ursynow, Garbera, and Gropius Passagen.
Primark sales are based on estimates.
- Including the UK.
- The European Flagship assets are: Westfield Les Quatre Temps,
Aéroville, Westfield Parly 2, Westfield Vélizy 2, Westfield Carré
Sénart, Westfield Rosny 2, Westfield Le Forum des Halles, Carrousel
du Louvre, CNIT, Confluence, La Part-Dieu, Villeneuve 2, Westfield
Euralille, Polygone Riviera, La Vaguada, Parquesur, Bonaire, Splau,
La Maquinista, Glòries, Donau Zentrum, Shopping City Süd, Centrum
Cerny Most, Westfield Chodov, Wroclavia, Galeria Mokotow, Zlote
Tarasy, Westfield Arkadia, Aupark, Fisketorvet, Westfield Mall of
Scandinavia, Täby Centrum, Stadshart Amstelveen, Westfield Mall of
The Netherlands, Ruhr Park, Gropius Passagen, CentrO, Pasing
Arcaden, Westfield London and Westfield Stratford City.
- Based on latest national indices available (year-on-year
evolution) as at February 2020: France: Institut Du Commerce (IDC)
excluding food; Spain: Instituto Nacional de Estadistica; Central
Europe: Česky statisticky urad (Czech Republic), Polska Rada
Centrow Handlowych (Poland), Eurostat (Slovakia); Austria: KMU
Forschung excluding food; the Nordics: HUI Research (Sweden),
Danmarks Statistik (Denmark); Germany: Destatis-Genesis, excluding
online only operators and fuel sales (Federal Statistical Office).
UK: BDO High Street Sales Tracker; Including online only sales for
France, Spain, Austria, the Czech Republic and Slovakia and
excluding online only sales for Germany, the Nordics, the UK and
Poland.
- Institut Du Commerce index – Mode & Cosmétique & Santé,
Maison et Loisirs (excluding food).
- Conseil National des Centres Commerciaux index – all centres,
comparable scope.
- The US Flagship assets are: Westfield Century City, Westfield
Topanga and The Village, Westfield UTC, Westfield Valley Fair,
Westfield Garden State Plaza, Westfield Montgomery, Westfield
Galleria at Roseville, Westfield Southcenter, Westfield Old
Orchard, Westfield Santa Anita, Westfield San Francisco Centre,
Westfield Culver City, Westfield Annapolis, Westfield Fashion
Square, and Westfield World Trade Center.
- US tenant sales are excluding Tesla.
For further information, please
contact:
Investor Relations Samuel Warwood Maarten
Otte +33 1 76 77 58 02 Maarten.otte@urw.com
Media Relations Tiphaine Bannelier-Sudérie +33 1 76
77 57 94 Tiphaine.Bannelier-Suderie@urw.com
About Unibail-Rodamco-Westfield
Unibail-Rodamco-Westfield is the premier global
developer and operator of Flagship destinations, with a portfolio
valued at €65.3 Bn as at December 31, 2019, of which 86% in retail,
6% in offices, 5% in convention & exhibition venues and 3% in
services. Currently, the Group owns and operates 90 shopping
centres, including 55 Flagships in the most dynamic cities in
Europe and the United States. Its centres welcome 1.2 billion
visits per year. Present on 2 continents and in 12 countries,
Unibail-Rodamco-Westfield provides a unique platform for retailers
and brand events and offers an exceptional and constantly renewed
experience for customers. With the support of its 3,600
professionals and an unparalleled track-record and know-how,
Unibail-Rodamco-Westfield is ideally positioned to generate
superior value and develop world-class projects. As at December 31,
2019, the Group had a development pipeline of €8.3
Bn.Unibail-Rodamco-Westfield distinguishes itself by its Better
Places 2030 agenda, that sets its ambition to create better places
that respect the highest environmental standards and contribute to
better cities. Unibail-Rodamco-Westfield stapled shares are listed
on Euronext Amsterdam and Euronext Paris (Euronext ticker: URW),
with a secondary listing in Australia through Chess Depositary
Interests. The Group benefits from an A- rating from Standard &
Poor’s and from an A3 rating from Moody’s.
For more information, please visit
www.urw.comVisit our Media Library at
https://mediacentre.urw.comFollow the Group updates on Twitter
@urw_group, Linkedin @Unibail-Rodamco-Westfield and Instagram
@urw_group
- Financial information as at March 31, 2020
Grafico Azioni Unibail Rodamco Westfield (BIT:URW)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Unibail Rodamco Westfield (BIT:URW)
Storico
Da Mar 2023 a Mar 2024