Unibail-Rodamco-Westfield (URW) H2 2025 earnings summary

Executive summary

• 2025 saw strong retail performance, with tenant sales up 3.9%, footfall up 1.9%, dynamic leasing, and record low vacancy at 4.6%.

• €2.2 Bn in disposals completed or secured, supporting simplification, deleveraging, and a reduction in LTV to 42%.

• Launched capital-light growth initiatives, including a franchising contract in Saudi Arabia and a 25% stake in St James Quarter, Edinburgh.

• Major project deliveries included Westfield Hamburg Überseequartier and Westfield Černý Most extension.

• Maintained cost discipline, with general expenses down 5% year-over-year and organizational simplification to four regions.

Financial highlights

• AREPS at €9.58/share, down 2.7% year-over-year due to disposals, but underlying AREPS grew 5.4%.

• Like-for-like retail NRI up 3.8%; EBITDA margin at 63% and EBITDA reached €2,284 Mn, up 3.6% like-for-like.

• IFRS net debt (incl. hybrid) reduced to €20.3 Bn; LTV at 42% (down from 45.5%).

• Proposed distribution of €4.50/share for 2025 (+30% vs. 2024), with a 47% payout ratio.

• Portfolio revaluation increased by 1.7%, supporting asset values.

Outlook and guidance

• 2026 AREPS guidance set at €9.15–€9.30, implying at least 5% underlying growth.

• Proposed 2026 payout of €5.50/share (60% payout ratio, +22% vs. 2025).

• Medium-term: payout ratio of 60–70% from 2027 and minimum €3.1 Bn total distribution for 2025–28.

• Guidance assumes no major macro/geopolitical deterioration and continued focus on leasing, innovation, and cost discipline.