Unibail-Rodamco-Westfield (URW) H2 2024 earnings summary

Executive summary

• Achieved strong operating performance in 2024, with increased footfall and tenant sales in shopping centers, record occupancy since 2017, and robust leasing activity focused on high-value, long-term deals.

• Convention and exhibition segment delivered record results, up 66% year-over-year, boosted by the Paris Olympic and Paralympic Games.

• Offices in La Défense grew by double digits, supported by full leasing of Trinity Tower and delivery of Lightwell.

• Completed or secured €1.6 billion of disposals at book value and acquired €0.6 billion of JV partner stakes at attractive terms.

• Full-year earnings exceeded guidance, with a proposed 40% increase in cash distribution to €3.50 per share.

• URW NV reported a net loss of €333.0 Mn for 2024, a significant improvement from the €692.4 Mn loss in 2023, mainly due to lower negative valuation movements and improved non-recurring results.

Financial highlights

• Group like-for-like net rental income (NRI) up 6.7% year-on-year; Net Rental Income rose 4.7% to €2,314 Mn; EBITDA up 6.9% to €2,352 Mn.

• Recurring EPS reached €10.56, up 4.1% year-on-year; adjusted recurring earnings per share at €9.85, up 2.4%.

• Cost of debt remained low at 2% due to effective hedging and favorable financing conditions; average debt maturity 7.3 years.

• Loan-to-value (LTV) ratio at its lowest since 2019, with a 100 basis points reduction in 2024; IFRS LTV at 40.8% pro forma.

• Net debt-to-EBITDA ratio improved to 8.7x from 9.3x in 2023.

• URW NV net financial debt decreased to €6,219.2 Mn (2023: €8,166.0 Mn); solvency ratio rose to 22.9%.

Outlook and guidance

• Proposed cash distribution of €3.50 per share for 2024, a 40% increase.

• 2025 adjusted recurring EPS guidance set at €9.30–€9.50, supported by at least 5% underlying growth.

• Growth drivers include strong retail performance in Europe and the U.S., increased rental income, cost discipline, and positive impact from 2024–2025 deliveries.

• Guidance factors in completed and secured disposals, a slight increase in cost of debt, and the one-off impact of the Olympics.

• URW Group will retain high-performing US Flagship assets, focus on further deleveraging, and present growth plans at Investor Day in May 2025.