UNIBAIL-RODAMCO
Paris, Amsterdam, April 23, 2018
Press release
Financial information as at March 31, 2018
The consolidated turnover of Unibail-Rodamco for the first quarter of 2018 amounted to €535.7 Mn.
| Turnover | ||||
| in € Mn, excluding VAT | Q1-2018 | Q1-2017 | Change | |
| Shopping Centres | 375.9 | 360.8 | +4.2% | |
| Offices | 39.1 | 36.6 | +6.6% | |
| Convention & Exhibition | 90.6 | 97.3 | -6.9% | |
| Rental income | 57.6 | 64.1 | -10.2% | |
| Services | 33.0 | 33.2 | -0.6% | |
| Other activities | 30.1 | 33.9 | -11.1% | |
| Total | 535.7 | 528.6 | +1.3% | |
Figures may not add up due to rounding.
Gross Rental Income (GRI) of the Shopping Centre division amounted to €375.9 Mn for the first quarter of 2018, an increase of +4.2% compared to the same period in 2017. This strong performance was driven by like-for-like rental growth and the pipeline deliveries in Q4-2017, and partially offset by the impact of disposals of non-core shopping centres in France (Channel Outlet Store and L'Usine Roubaix) and the Nordics (Eurostop Arlanda, Arninge Centrum and Eurostop Örebro). The performance in Central Europe was boosted by the delivery of Wroclavia and the extension of Centrum Chodov in 2017.
The GRI of the Office division amounted to €39.1 Mn, up by +6.6% compared to the first quarter of 2017. The rental income of offices in France grew by +8.2%, due to strong letting in 2017 which reduced vacancy to 3.3% as at December 31, 2017, which was partially offset by the disposal of the So Ouest Plaza office building in 2017.
The GRI of the Convention & Exhibition division decreased by -10.2% to €57.6 Mn due to the timing of some biennial shows and the closing of the Pullman Montparnasse hotel for renovation.
| Gross Rental Income | |||
| in € Mn | Q1-2018 | Q1-2017 | Change |
| Shopping Centres | 375.9 | 360.8 | +4.2% |
| France | 169.7 | 166.7 | +1.8% |
| Central Europe | 52.5 | 42.2 | +24.4% |
| Spain | 45.6 | 44.2 | +3.3% |
| Nordics | 37.8 | 41.5 | -8.9% |
| Austria | 27.3 | 25.9 | +5.4% |
| Germany | 25.5 | 24.3 | +4.9% |
| Netherlands | 17.4 | 15.9 | +9.3% |
| Offices | 39.1 | 36.6 | +6.6% |
| France | 33.9 | 31.3 | +8.2% |
| Other regions | 5.2 | 5.3 | -2.6% |
| Convention & Exhibition | 57.6 | 64.1 | -10.2% |
| Total | 472.6 | 461.5 | +2.4% |
Figures may not add up due to rounding.
Major events
Tenant sales(1) in Unibail-Rodamco's shopping centres through March 31 were up by +3.6% compared to the same period in 2017, with strong performance in Central Europe, France, Spain and Germany.
Tenant sales through February grew by +2.1%, broadly in line with national sales indices(2) (which for a number of the Group's regions include online sales). In France, tenant sales through February outperformed the IFLS(3) and CNCC(4) indices by +204 and +485 bps, respectively.
Footfall(5) in Unibail-Rodamco's shopping centres grew by +2.5% through Q1-2018. Central Europe and France posted strong footfall growth of +4.2% and +3.9%, respectively.
In early April 2018, Unibail-Rodamco signed a lease with Nestlé for the entire SHiFT office building in Issy-les-Moulineaux (more than 45,000 wm² of GLA). SHiFT is scheduled to be delivered in H1-2019.
On March 29, 2018, Unibail-Rodamco announced the filing and approval of the documentation for the proposed acquisition of Westfield by Unibail-Rodamco (the "Transaction") by the French Financial Markets Authority (Autorité des Marchés Financiers) (AMF) and the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten) (AFM). Contribution Appraisers appointed by the Commercial Court of Paris concluded that with respect to the proposed Westfield Transaction, the total consideration offered by Unibail-Rodamco for all outstanding Securities of Westfield is fair from a financial point of view to the shareholders of Unibail-Rodamco.
Westfield disclosed on April 12, 2018, that the Australian Securities & Investments Commission (ASIC) had registered the Westfield Securityholder Booklet. This document includes a report by an Independent Expert, which concludes that the Transaction is in the best interests of Westfield securityholders, in the absence of a superior proposal.
As announced previously, the Transaction has been unanimously recommended by Westfield's Board of Directors as well as by Unibail-Rodamco's Management Board and Supervisory Board, and remains subject to the approval of Unibail-Rodamco shareholders and of Westfield securityholders, and to other customary conditions described in the Implementation Agreement dated December 12, 2017.
Commenting on the results and the progress on the Westfield Transaction, Christophe Cuvillier, CEO and Chairman of the Unibail-Rodamco Management Board said:
"The solid growth in the Group's sales and rental income in the first quarter of the year reflects the strength of our business and of Unibail-Rodamco's strategy of focusing on exceptional shopping destinations. During this period, we also took important steps towards completing the acquisition of Westfield. The reports submitted by the independent experts confirm the strength of our offer for the securityholders of Westfield and the shareholders of the Group. The proposed acquisition of Westfield represents a compelling value proposition. The Transaction will create the premier global developer and operator of flagship shopping destinations. We are looking forward to finalizing this acquisition and rolling out the implementation plan, to create value for the New Group and its shareholders."
The Unibail-Rodamco Annual General Meeting will be held on May 17, 2018. Meetings of Westfield securityholders are to be held on May 24, 2018.
For the most recent information on the Westfield transaction, including the investor presentation uploaded on April 16, 2018, please consult the Westfield Transaction section on the Unibail-Rodamco website: www.unibail-rodamco.com
The next financial events on the Group's calendar will be:
May 17, 2018: Unibail-Rodamco AGM
May 30, 2018: Payment of a final dividend (ex-dividend date: May 28, 2018)
Unibail-Rodamco will inform the market about the date of the release of the half-year results shortly after the expected implementation date of the Westfield Transaction (June 7, 2018).
Notes:
For further information, please contact:
Investor Relations
Maarten Otte
+33 1 76 77 58 02
maarten.otte@unibail-rodamco.com
Media Relations
Nathalie Feld
+33 1 76 77 57 94
nathalie.feld.contractor@unibail-rodamco.com
About Unibail-Rodamco
Created in 1968, Unibail-Rodamco SE is Europe's largest listed commercial property company, with a presence in 11 Continental European countries, and a portfolio of assets valued at €43.1 Bn as at December 31, 2017. As an integrated operator, investor and developer, the Group aims to cover the whole of the real estate value creation chain. With the support of its more than 2,000 professionals, Unibail-Rodamco applies those skills to highly specialised market segments such as large shopping centres in major European cities or large offices and convention & exhibition centres in the Paris region.
The Group distinguishes itself through its focus on the highest architectural, city planning and environmental standards. Its sustainable vision focuses on the development or redevelopment of outstanding places to meet up, connect, shop, work and enjoy. The Group's commitment to environmental, economic and social sustainability is recognised by its inclusion in the FTSE4Good and STOXX Global ESG Leaders indexes.
The Group is a member of the CAC 40, AEX 25 and EuroSTOXX 50 indices. It benefits from an A rating from Standard & Poor's and Fitch Ratings.
For more information, please visit our website: www.unibail-rodamco.com
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