Unibail-Rodamco SE, Europe’s largest publicly traded property owner, said first-half recurring profit rose 10 percent after new and expanded shopping malls added to rental income.
Earnings excluding changes in asset values and proceeds from sales of assets, or recurring profit, increased to 499 million euros ($660 million), or 5.21 euros a share, from 453 million euros, or 4.94 euros, a year earlier, the Paris-based company said in a statement today.
Unibail-Rodamco plans to spend about 6.9 billion euros over the next five years developing new shopping malls and office buildings in Europe. The real estate investment trust is leasing more space to leisure operators as it seeks to draw more shoppers to its malls to counter Europe’s sluggish economy.
“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,” Chief Executive Officer Christophe Cuvillier said in the statement.
Rental income climbed to 657 million euros in the first half from 648 million euros a year earlier, according to the statement. Shopping mall rental income was up 4.7 percent on a like-for-like basis. Net asset value rose to 141.30 euros a share from 138.40 euros at the end of last year.
The company owns properties valued at about 30.5 billion euros, according to the statement.
Neil Callanan in London at email@example.com