Full Year 2024 Unibail-Rodamco-Westfield SE Earnings Call Transcript
Key Points
- Unibail-Rodamco-Westfield (UNBLF) achieved full-year earnings above guidance, proposing a 40% increase in cash distribution to EUR3.50 per share.
- The company completed or secured EUR1.6 billion of disposals at book value, demonstrating strong asset management even in challenging market conditions.
- Retail media agency Westfield Rise achieved its 2024 net margin target of EUR75 million, marking a 41% increase in Europe versus last year.
- Group occupancy reached its highest level since 2017, driven by proactive leasing strategies and strong tenant sales growth of 4.5%.
- The company's cost of debt remains low at 2%, supported by effective hedging and access to financing at attractive conditions.
- The Westfield Hamburg project faced delays and cost overruns, with total investment costs increasing by EUR190 million due to additional construction costs.
- The retail real estate investment market remained challenging, with volumes down 12% in continental Europe and 13% in the US.
- Net debt to EBITDA ratio, although improved, remains relatively high at 8.7 times, indicating ongoing leverage concerns.
- The company's US flagship assets experienced a decrease in like-for-like revaluation by 4.3%, impacted by a negative yield effect.
- Despite strong operational performance, the statutory return result remains negative, limiting the ability to distribute dividends from earnings.
Good morning and welcome to Unibail Rodamco Westfield's full year results presentation. 2024 was a year of strong operating performance across all activities. Our shopping centers delivered increased footfall and higher attendant sales. Group occupancy is now at its highest level since 2017, thanks to strong leasing activity with a focus on high value long term deals.
Convention and exhibition delivered record results as our [VPAR] venues hosted events and operational hubs for the Paris Olympic and Paralympic Games. Offices NRI grew by double digits, thanks to the full leasing of the Trinity tower and the successful delivery of Lightwell both in [Paris la de] France.
And that's Westfield Rise, our retail media agency, we achieved the 2024 net margin target of EUR75 million set in 2022. Since the start of 2024, we have successfully completed or secured EUR1.6 billion of disposals at book value delivering on the discussions that we referenced at the half year. And
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