Westfield mall operator resumes dividends with vacancies, rent collection back at pre-COVID levels

By Steve Goldstein

Fastest growth for tenants is with experiences

The operator of 72 shopping centers in 12 countries says vacancy levels, earnings and rent collection are back at pre-COVID levels as it resumed payouts to investors.

Unibail-Rodamco-Westfield (FR:URW) says its earnings before interest, tax, depreciation and amortization rose 6.7% on a comparable basis to EUR2.19 billion, after net rental income grew 6.1% on a comparable basis.

It's guiding for adjusting recurring earnings per share between EUR9.65 and EUR9.80 in 2024 after earning EUR9.62 in 2023, which was ahead of the EUR9.57 in a Visible Alpha-compiled consensus.

Unibail said it plans to restart dividends, its first since the pandemic, with a EUR2.50 per share payment.

Unibail shares rose 6% to a new 52-week high.

Tenant sales are now above 2019 levels, after growth of 9.2%, including 19.2% growth in the U.S.

The fastest growth in the U.S. was what it calls experiential sectors, with 26.7% growth for entertainment, 13.5% for food and beverage, 13.4% growth for fitness and 8.9% for health and beauty. Fashion sales inched up 0.2% and luxury fell by 6.5%.

Rent collection was 98% in the U.S. and the U.K. and 97% in Continental Europe.

Unibail says it is in active discussions for buyers of EUR1 billion in assets in Europe and the U.S. as it tries to reduce its EUR20 billion in net debt.

-Steve Goldstein

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02-08-24 0938ET

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