Unibail-Rodamco Revenue Rises on Lease Renewals and New Tenants
Unibail-Rodamco SE (UL), Europe’s largest publicly traded real-estate company, said revenue rose 1.7 percent in the first nine months as lease renewals lifted rents and the company attracted higher-paying tenants to its malls.
Revenue rose to 1.2 billion euros ($1.7 billion) from 1.18 billion euros a year earlier, the Paris-based company said in a statement today. The company didn’t provide figures for the third quarter.
In July, Chief Executive Officer Guillaume Poitrinal said there will be a smaller decline in 2011 earnings than he previously predicted after the company had better than expected revenue and cost savings in the first half. While economic growth in Europe is faltering, dominant malls like Unibail- Rodamco’s keep attracting shoppers. The high visitor numbers also persuade new tenants like Apple Inc. and Forever 21 Inc. to compete for space in the centers, helping lift rents.
Unibail-Rodamco said in July that it expects recurring profit, or earnings excluding changes in asset values and proceeds from asset sales, to decline 3 percent this year. That revised its 5 percent decline forecast made in February, reflecting disposals and a 1.8 billion-euro special dividend.
The company aims to raise as much as 3 billion euros through 2013 from disposals, using the proceeds to fund 6.9 billion euros of Paris office projects and retail.
Unibail-Rodamco declined 40 cents to 146.10 euros in Paris today. The shares are little changed this year, valuing the company at 13.4 billion euros.