Unibail-Rodamco-Westfield (URW) H1 2024 earnings summary

Executive summary

• H1 2024 delivered strong operational results, with tenant sales up 4.2% and footfall up 2.9% year-over-year, outperforming national indices in both Europe and the US.

• Convention and exhibition business delivered record results, with NOI up 53.2% year-over-year, boosted by the early impact of the Paris Olympics.

• Retail media revenues rose 24.7% in Europe, with Westfield Rise on track for €75 million net margin in 2024.

• €0.3 billion of disposals completed or secured year-to-date, supporting deleveraging.

• Significant project issues at Westfield Hamburg-Überseequartier, including a water leak, project mismanagement, and €520 million in cost overruns and delays.

Financial highlights

• Like-for-like net rental income (NRI) up 5.6% year-on-year to €1,190 million; adjusted recurring earnings per share (AREPS) at €5.14, down 2.7% year-over-year.

• EBITDA up 3.3% year-on-year to €1,195 million; like-for-like EBITDA up 5.8%.

• Net debt increased to €20.4 billion, mainly due to capex and resumed shareholder distributions; net debt to EBITDA stable at 9.3x.

• Group liquidity at €12.7 billion, covering debt maturities for over 36 months; average debt maturity at 7.4 years; cost of debt at 1.9%.

• EPRA NRV per share at €142.50, down from €146.70 at December 2023.

Outlook and guidance

• Full-year 2024 AREPS guidance confirmed at €9.65–€9.80 per share, assuming H2 operating performance in line with H1 and continued positive impact from the Olympics.

• Distribution guidance unchanged; final decision to be based on year-end valuation, leverage, and disposals progress.