Westfield sees 8.2% rental income growth in H1

Unibail-Rodamco-Westfield has reported a net rental income of €1,152m (£987m), an 8.2% like-for-like increase, during H1 2023. 

Shopping centres accounted for the majority of the rental income with €1,059m (£907m), which represents an 8.5% like-for-like growth. Offices and other net rental income accounted for €41m (£35m), up 17.1% on a like-for-like basis, while convention and exhibition rentals accounted for €52m (£44m). 

EBITDA for the group was €1.157m (£991m), back to pre-Covid levels on a like-for-like basis. 

Tenant sales were up 9% compared to H1-2022, including 11.8% in Continental Europe, 6.8% in the UK and 4.6% in the US.

Footfall increased by 7% including 8.2% in Continental Europe, 9.2% in the UK and 2.7% in the US. 

The group also reported €219m (£187m) of minimum guaranteed rent signed, an increase of 11%, with an uplift of 12.5% on top of indexed passing rents, including 17.6% on long-term deals. During the period, the group signed 1,180 leases.

Rent collection amounted to 96%, compared to 96% in H1 2022, both in Europe and in the US. 

Vacancy for Shopping Centres at group level decreased to 6.3%, down from 6.5% at FY 2022 and 6.9% at H1 2022. In the UK, vacancy decreased from 9.4% in December 2022 to 8.5% in June 2023 thanks to strong leasing activity.

Commenting on the results, Jean-Marie Tritant, chief executive officer, said: “URW delivered very solid financial results in H1 2023 that demonstrate the strength of our assets and the quality of our operations and teams. Our sales continue to outperform the market thanks to the location of our assets, the quality of our customer base and our diversified retail mix. 

“Our performance in the first half builds on the strong platform we established in 2022, and we are confident this momentum will continue throughout 2023 and our AREPS will be at the upper end of our full-year guidance.”