Westfield owner URW reveals 'very strong' H1 performance

Unibail-Rodamco-Westfield, owner of the Westfield Shopping Centre franchise, has released its financial results for the first half of 2022, revealing a 45% increase in net rental income to £922 million (€1.1 billion).

Net rental income for shopping centres was up 37.7% to £838 million (€1 billion), compared to £631 million (€753 million) in 2021. In the UK, rental income was up 34.8%, driven by the end of COVID-19 rent relief and overall better rent collection.

Rent collection reached 96% for H1 2022, compared to 88% in FY21 and 73% in H1 2021. This amounted to 97% in the UK and 96% in Continental Europe.

Unibail-Rodamco-Westfield's EBITDA rose by 48% to £922 million (€1.1 billion), compared to £645 million (€770 million) in 2021.

Vacancy for shopping centres at a group level decreased to 6.9% in H1 2022, down from 8.9% in H1 2021 and 7% in FY21. In the UK, vacancy also dropped to 9.7% against 10.6% in FY21.

Unibail-Rodamco-Westfield currently owns and operates 82 shopping centres, including 53 Flagships across Europe and the United States. In the UK, the group owns Westfield Stratford City, Westfield London and Cherry Park.

Jean-Marie Tritant, CEO of URW, said: “Our operational performance in H1 2022 was very strong, with tenant sales reaching pre-COVID levels earlier than expected in Continental Europe. We are seeing strong leasing demand, with retailers expanding with us, thanks to the quality of our assets, which are located in the best catchment areas, and have an affluent customer base.

"URW is well positioned to outperform and gain market share, as retailers accelerate their “drive to store” strategies. Against this backdrop, asset values have stabilised, and our credit metrics have significantly improved, in particular thanks to the net debt reduction and the increase in EBTIDA."