Westfield owner URW announces growth in 2022
Unibail-Rodamco-Westfield, owner of the Westfield Shopping Center franchise, reported a 20.8% increase in revenue to £2.3 billion (€2.7 billion) for the top nine month of 2022.
This growth reflects the post-COVID-19 recovery, the dynamism of leasing activity and deliveries of assets in shopping centers, rental progress in offices and the improvement of its congresses and exhibitions division, partially offset by the impact of disposals.
Gross rental income for the shopping center division increased by 18.7% to 1.6 billion pounds sterling (1.9 billion euros). This was due to the lack of COVID-19 rent relief, escalation, strong rental activity, higher sales-based rents, business partnerships, and parking revenue.
Revenue from commercial partnerships rose from £39m (€46m) to £66m (€76.5m) in the nine months. It includes 28.1 million euros for the media, brand and data partnership activity.
The total number of leases signed was 1,755, an increase of 11% compared to 2021 and 20% compared to 2019.
For the third trimester, Unibail-Rodamco-Westfield shared the following results:
- Tenant sales reached 110% of 2021 levels and 103% of 2019 levels.
- Rent collection up 96%.
- The rental collection rate in Europe, including the United Kingdom, is 96%.
- Rental activity up 14%, with 554 transactions signed.
Top performing categories in Europe, compared to Q3 2019, include Sports up 13.6%, Health & Beauty up 12.7% and Jewelry up 9.8%. However, fashion sales fell 3.3%.
Jean-Marie Tritant, CEO of URW, said: “Rental momentum has been strong, both in terms of volumes and conditions, demonstrating the continued appetite of retailers for our flagship destinations. The steady improvement in vacancy levels in the US and UK, as well as the increase in rental collection to 2019 levels, confirms the strong recovery trend seen in the first half of 2022.
“We also continued to implement our strategy to increase our revenue from commercial partnerships with the launch of Westfield Riseinternal media agency, brand experience and data partnerships.
“While market conditions may affect the overall timeline, we are committed to completing our deleveraging plan and are supported by a strong liquidity position and the strong operating performance of our assets.”