UNIBAIL-RODAMCO SE : UNIBAIL-RODAMCO SE: HALF-YEAR RESULTS 2013
Paris, Amsterdam, July 24, 2013
HALF-YEAR RESULTS 2013
Delivering outperformance with recurring EPS up by +5.5% to €5.21
"Unibail-Rodamco's H1-2013 recurring net result was up by +10.0% to €499 Mn,
driven by strong like-for-like performance in the Group's shopping centres, a
significant decrease in average cost of debt and focus on cost control. These
results confirm the Group's continued capacity to grow and outperform in a
difficult macro-economic environment and the resilience of its business model,
focused on large and high footfall shopping and leisure destinations in
Europe's wealthiest cities." Christophe Cuvillier, CEO and Chairman of the
Strong operating performance
Despite the on-going macro-economic challenges and the adverse weather
conditions during the spring season, tenant sales in Unibail-Rodamco's
shopping centres picked up significantly in May and June and are flat (0.0%)
for the first semester. Through May 2013, the Group's tenant sales
outperformed national sales indices^(1) by +230 bps. This continued
outperformance reflects the appeal of large and prime shopping malls of
Unibail-Rodamco. Net Rental Income (NRI) of shopping centres grew +4.7%
like-for-like, an outperformance of +260 bps over indexation. The Group signed
634 leases in H1-2013 and achieved rental uplifts on renewals and re-lettings
of +15.6% in Unibail-Rodamco's large shopping malls (+13.7% for the Group as a
whole). Vacancy remains frictional and limited at 2.4%.
The Paris region office market is currently undergoing important challenges
with a continuing decline in rental values, and take-up is down -19% compared
to H1-2012. Against this backdrop, the Group's offices like-for-like net
rental income was down modestly by -1.6%, of which -0.8% in France.
Convention and Exhibition's resilience in H1-2013 was driven by large shows
(Agriculture show, Foire de Paris, Air show) and was offset by a meaningful
slowdown in corporate events.
Note (1) based on latest national sales indices available
Fast forward differentiation
Unibail-Rodamco continued the differentiation of its shopping malls by
introducing new initiatives and rolling out its innovation strategy in order
to offer customers the unique experience not found in other retail settings or
on the internet:
oInternational premium retailers: the Group signed in H1-2013 78 leases
with international premium retailers (vs 139 in full-year 2012), including
Superdry, Samsung, Michael Kors, Costa Coffee, Lego and Primark;
o4 Star label: following a comprehensive audit conducted by SGS, 3
additional malls were awarded this exclusive quality label in H1-2013
(Centrum Cerny Most, Splau, La Maquinista), bringing the total number of
labelled malls to 12;
oDining Experience: after a successful launch in La Maquinista (Barcelona)
in July 2012 and Confluence (Lyon) in May 2013, the initiative which aims
to double the space dedicated to dining in the Group's malls and improve
the quality and offer of restaurants will be deployed in Galeria Mokotow
(Warsaw) and Aéroville (Paris region) in H2-2013;
oIconic shop fronts: 6 malls will be equipped with double height shop
fronts at the end of 2013, to have the Group's malls become "the Home of
oDigital marketing: the Group innovated its digital marketing once again
with the launch in June 2013 of a totally redesigned version 3 of its
smartphone app, offering enhanced features and services. Apps of the
Group's malls have already been downloaded 1.9 Mn times and the Group's
malls now count 3.3 Mn facebook fans.
Declining average cost of debt
During the first 6 months of 2013, Unibail-Rodamco raised €2.3 Bn of medium to
long-term financing in the bond and bank markets and increased the average
debt maturity to 5.4 years as of June 2013 at very attractive conditions,
taking advantage of the Group's strong balance sheet. The average cost of debt
for the Group in the first half decreased to 2.9%, compared to 3.4% for the
Financial ratios stand at healthy levels: Loan-To-Value ratio of 38% (vs 37%
at year-end 2012) and Interest Coverage Ratio at 4.1x (compared to 3.5x).
Availability under undrawn credit facilities stood at €4.1 Bn.
Asset values increase driven by rental growth
The gross market value of the Unibail-Rodamco's assets as of June 30, 2013
stood at €30.5 Bn, up +0.9% like-for-like compared to December 31, 2012,
mainly driven by rental growth. The value of the Group's shopping centres grew
+1.2% like-for-like, with large shopping centres up +1.5%.
EPRA Going Concern Net Asset Value per share was €154.30, up by +2.1% from
€151.10 as of December 2012, taking into account the negative impact of the
€8.40 per share distribution in June this year. This reflects +€11.60 per
share in value created during the period. The Group's EPRA triple net asset
value per share was similarly up by +2.1% to €141.30 in H1-2013.
The net initial yield of the shopping centre portfolio was stable at 5.3%,
while the net initial yield for occupied offices increased by 20 basis points
€6.9 Bn prime quality development projects
In H1-2013, the Group inaugurated the Czech Republic's first 4 Star shopping
centre Centrum Cerny Most (Prague), following a 43,444 m² GLA extension. With
81,189 m² GLA and 164 shops, the mall's tenant mix includes 15 international
premium retailers and Decathlon's first store in Prague.With an increase of
+55% in footfall since opening, Centrum Cerny Most is an outstanding success.
On October 17, 2013, Unibail-Rodamco will deliver its latest browfield
shopping mall Aéroville (Paris region), showcasing the Group's latest
innovations in terms of design, architecture and services. In addition, the
South extension of Täby Centrum (Stockholm), the extensions and renovations of
Alma (Rennes) and Toison d'Or (Dijon) and the renovated Shopping City Süd
(Vienna) are to be delivered later this year. Projects to be delivered in the
second half are already 88% pre-let, providing income visibility.
The Group's development pipeline amounted to €6.9 Bn as of June 2013, of which
€2.9 Bn are committed. 79% of committed projects are retail. Unibail-Rodamco
retains significant execution flexibility on 53% of its projects.
Viparis designated selected bidder for Porte de Versailles concession
On July 9, 2013, Viparis was designated by the Paris City Council as the
selected bidder to operate the Porte de Versailles convention-exhibition site,
following the launch of a call for tender in 2012 with a view to modernise the
site and increase its appeal. The objective for Viparis will be to make
significant investments in exchange for a new 50-year lease agreement,
expected to be signed in Q4-2013 and to become effective in 2015.
For 2013, the Group confirms its recurring EPS growth target of at least 5%,
as a result of strong operating fundamentals (outperforming tenant sales, low
vacancy, sustainable occupancy cost ratios and good rental uplifts) and new
deliveries from extensions and brownfield projects. In addition, the cost of
debt is also expected to be contained at low levels.
Upon the proposal of Christophe Cuvillier, the Supervisory Board of
Unibail-Rodamco has appointed^(2) Ms Armelle Carminati-Rabasse as Chief
Resources Officer and Member of the Management Board, with effect from
September 1, 2013. Armelle Carminati-Rabasse joins from Accenture, where she
was Group General Manager, Human Capital and Diversity. She will replace
Catherine Pourre, who will cease her activities with Unibail-Rodamco SE as of
the same date.
The Supervisory Board and the Management Board of Unibail-Rodamco take this
opportunity to highlight and pay tribute to Catherine's exceptional
achievements and commitment to her role. She has been instrumental in the
merger between Unibail SA and Rodamco Europe NV in 2007, and has greatly
contributed to the success of the Group over the last 11 years.
"I thank Catherine for her hard work and dedication to the Group over the
years helping to build the leading high performance organization that
Unibail-Rodamco is today. I am delighted to welcome Armelle Carminati-Rabasse,
whose skills and experience in both the retail industry and human capital will
be key in fuelling the great ambitions of the Group and its future successes".
Note (2) subject to the Dutch Financial Market Authority's (AFM) approval
H1-2013 H1-2012^(3) Growth Like-for-like
Net Rental Income (in € Mn) 657 648 +1.4% +2.1%
oShopping centres 532 510 +4.2% +4.7%
oOffices 80 85 -5.7% -1.6%
oConventions & Exhibitions 46 53 -13.5% -13.5%
Recurring net result (in € Mn) 499 453 +10.0%
Recurring EPS (in € per share) 5.21 4.94 +5.5%
June 30, Dec. 31,
Total portfolio valuation (in € Mn) 30,527 29,116 +0.9%
Going Concern Net Asset Value (in € 154.30 151.10 +2.1%
EPRA triple Net Asset Value (in € 141.30 138.40 +2.1%
Figures may not add up due to rounding. Note: (3) Restated to take into
account the impact of the early adoption of IFRS 10 and 11
The appendix to the press release and the half-year 2013 results presentation
are available on the Group's website www.unibail-rodamco.com
Review procedures completed, statutory auditors' report issued today
For further information, please contact:
+33 1 76 77 57 40
+33 1 76 77 57 94
Created in 1968, Unibail-Rodamco SE is Europe's largest listed commercial
property company, with a presence in 12 EU countries, and a portfolio of
assets valued at €30.5 billion as of June 30, 2013. 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 1,500 professionals,
Unibail-Rodamco applies those skills to highly specialised market segments
such as large shopping centres of major European cities and 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 long term approach and
sustainable vision focuses on the development or redevelopment of outstanding
places to shop, work and relax. Its commitment to environmental, economic and
social sustainability has been recognised by inclusion in the DJSI (World and
Europe), 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
Unibail-Rodamco - Press release 1H13 results
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