Unibail-Rodamco Revenue Declines After Property Disposals

Unibail-Rodamco SE (UL), Europe’s largest publicly traded real estate company, said revenue fell 1.8 percent in the first nine months after it sold office buildings in Paris and shopping centers in the Netherlands.

Revenue declined to 1.18 billion euros ($1.6 billion) from 1.2 billion euros a year earlier because of the lower rental income, the Paris-based company said in a statement today.

Chief Executive Officer Guillaume Poitrinal said in July that he expected to raise 1.7 billion euros this year by selling buildings in peripheral locations or with limited rental growth prospects as he focuses the company on large shopping centers. Unibail-Rodamco paid 1.8 billion euros in dividends earlier this month and is using the rest, plus money from bond sales, to fund 5.7 billion euros of development projects.

Unibail-Rodamco said today that it has agreed disposals worth a net 160 million euros in addition to the net 623 million euros of sales that the company said it had signed in July.

In July, Unibail-Rodamco forecast that recurring profit per share, which excludes changes in property valuations as well as gains and losses on derivatives, will rise by no more than 2 percent this year. Recurring earnings rose 7.1 percent in 2009 to 9.19 euros a share.

Unibail-Rodamco has declined 2.6 percent this year, reducing the company’s market value to 13.7 billion euros.

To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

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