Unibail-Rodamco Says Nine-Month Revenue Rose on MallsDalia Fahmy
Unibail-Rodamco SE, Europe’s largest publicly traded property owner, said revenue rose about 0.5 percent in the first nine months as new and expanded shopping malls added to rental income.
Revenue climbed to 1.28 billion euros ($1.77 billion) from 1.22 billion euros a year earlier, the Paris-based company said in a statement today. Gross rental income increased to 1.15 billion euros from 1.11 billion euros, including a 7.5 percent increase at the company’s shopping centers.
Unibail-Rodamco plans to spend about 6.9 billion euros over the next five years developing shopping malls and office buildings in Europe. The real estate investment trust doesn’t need to make acquisitions because its development plans will boost its retail space in Europe by 27 percent within five years, CEO Christophe Cuvillier told French newspaper Les Echos earlier this month.
Euro-area consumer confidence increased for an 11th month in October, adding to signs that the 17-nation currency bloc’s economic recovery is gathering momentum. An index of household confidence in the countries sharing the euro currency rose to the highest since July 2011, the European Commission in Brussels said on Oct. 23.
Unibail said in July that it expected per-share recurring profit, or earnings excluding changes in asset values and proceeds from divestments, to rise by at least 5 percent this year. The company is leasing more space to leisure businesses to draw customers to its malls.
Unibail rose 15 cents to 194.65 euros in Amsterdam trading today. The shares have gained about 7 percent this year, valuing the company at about 19 billion euros.