Shopping Centres

Westfield rental income slumps in H1 results

Westfield owner, Unibail-Rodamco-Westfield (URW), has reported a 14.2% slump in net rental income to €1bn (£904m) in its half-year trading update.

In the UK, net rental income value was down 34.1% to €50m (£45.2m). URW’s overall proportionate portfolio valuation also declined by 5.1% during the period.

The group said the first half of 2020 marked an “unprecedented” time that has impacted URW”, as it was forced to “substantially close” most of its shopping centres starting in March for, on average, 67 days.

As of June 30, 2020, 97% of stores within URW’s European centres are now open, while 1% are still restricted from trading – with the remainder mainly relating to delayed reopening of tenants in the UK.

Christophe Cuvillier, group chief executive officer, said: “The group now has a record €12.7bn (£11.4bn) of cash and undrawn credit facilities available. Despite the adverse conditions, the Group successfully closed the disposal of a 54.2% stake in a portfolio of five French centres.

“URW is committed to de-leveraging, and reiterates its plans to dispose the remaining €4bn (£3.6bn) of its asset disposal programme over the next couple of years.”

He added: “These accomplishments during such a difficult period prove the resilience of URW and the extraordinary work of our teams, to which I extend my admiration and gratitude.”

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