Paris,
Amsterdam, July 24th, 2017
Press release
HALF-YEAR RESULTS 2017
Recurring Earnings per Share
(recurring EPS) of €6.16 for H1-2017; full-year guidance of
€11.80-€12.00 confirmed
-
Recurring EPS grew
+6.0% from the recurring
EPS for H1-2016 of €5.81
-
Net Rental Income (NRI) like-for-like growth in
Shopping Centres of +3.4% compared to
H1-2016
-
Record low average cost of debt of 1.4% while average debt maturity extended to 7.4 years
-
Total portfolio value of €42.5 Bn, up
+4.9% (+3.3% like-for-like)
-
Net asset value per share:
-
Going Concern NAV: €213.60, up +6.0% vs. Dec. 31,
2016
-
EPRA NNNAV: €195.30, up +6.3% vs. Dec. 31, 2016
-
EPRA NAV: €206.20, up +5.4% vs. Dec. 31, 2016
-
€8.1
Bn development pipeline, with 5 deliveries scheduled for
H2-2017
|
H1-2017 |
H1-2016 |
Growth |
Like-for-like growth |
Net Rental Income (in € Mn) |
794 |
781 |
+1.7% |
+3.7% |
Shopping Centres |
670 |
643 |
+4.1% |
+3.4% |
France |
303 |
295 |
+2.7% |
+1.8% |
Central Europe |
84 |
80 |
+4.3% |
+3.8% |
Spain |
80 |
72 |
+11.2% |
+5.3% |
Nordics |
75 |
73 |
+3.5% |
+4.2% |
Austria |
52 |
48 |
+8.6% |
+8.0% |
Germany |
47 |
45 |
+4.8% |
+5.5% |
The Netherlands |
29 |
31 |
-4.8% |
-1.8% |
Offices |
70 |
84 |
-17.5% |
+7.8% |
Convention & Exhibition |
55 |
53 |
+2.5% |
+2.5% |
Recurring net result (in € Mn) |
614 |
575 |
+6.7% |
|
Recurring EPS
(in € per share) |
6.16 |
5.81 |
+6.0% |
|
|
|
|
|
|
|
June 30, 2017 |
Dec. 31, 2016 |
Growth |
Like-for-like growth |
Total portfolio valuation
(in € Mn) |
42,491 |
40,495 |
+4.9% |
+3.3% |
Going Concern Net Asset Value
(in € per share) |
213.60 |
201.50 |
+6.0% |
|
EPRA Triple Net Asset Value
(in € per share) |
195.30 |
183.70 |
+6.3% |
|
EPRA Net Asset Value
(in € per share) |
206.20 |
195.60 |
+5.4% |
|
Figures may not add up due to rounding.
"During the first half of 2017, Unibail-Rodamco's
dedicated and hardworking teams delivered a solid performance
across all businesses and grew the recurring EPS by +6.0%, to
€6.16. Retail NRI increased by +4.1% (+3.4% on a like-for-like
basis). The Group's tenant sales were up by +2.7% through May 2017,
outperforming the aggregate national sales indices by +148 bps.
Like-for-like NRI of the Offices division grew by +7.8%, supported
by strong leasing performance in France, notably on Capital 8. The
Group achieved an average cost of debt of 1.4%, a new record low.
As part of Unibail-Rodamco's "Better Places 2030" CSR programme,
the Group raised Europe's first green credit facility (€650 Mn).
The Group confirms its outlook of between €11.80 and €12.00 per
share for 2017." Christophe Cuvillier, CEO and
Chairman of the Management Board.
RECURRING EPS AT €6.16, UP +6.0% COMPARED TO H1-2016
Recurring EPS came to €6.16 in H1-2017, representing an increase of
+6.0% from the recurring EPS for H1-2016 of €5.81.
SOLID OPERATING PERFORMANCE
Shopping Centres
Through May 2017, tenant sales grew by +2.7% at Group level
compared to the same period last year, +148 bps above the aggregate
national sales index. Excluding assets for sale(1), the
Group's tenant sales grew by +3.2%. In France, the Group's tenant
sales outperformed the IFLS index by +374 bps and the CNCC index by
+454 bps, respectively.
The Shopping Centre like-for-like NRI grew by +3.4%, +270 bps above
indexation, and by +3.6% excluding assets for sale(1). The Group
signed 755 leases on consolidated standing assets with an average
Minimum Guaranteed Rent uplift on renewals and re-lettings of
+13.5%, exceeding the Group's objectives for the period. The tenant
rotation rate was 6.4%.
The EPRA vacancy rate was 2.5%, including 0.3% of strategic
vacancy, as at June 30, 2017.
Offices
Take-up in the office market in the Paris region grew by +4%
compared to H1-2016, with 1.2 million m2 of office
space let in H1-2017.
On a like-for-like basis, Unibail-Rodamco offices NRI increased by
+7.8%, and by +9.9% in the Paris region. Following the disposal of
four office buildings in 2016, consolidated NRI of the office
division came to €69.6Mn (-17.5%).
The Group entered into an agreement to dispose of So Ouest Plaza
(Levallois). Further office disposals are expected in 2017.
Convention & Exhibition
Convention & Exhibition's recurring net operating income
increased by +2.7% compared to H1-2016. Excluding the triennial
Intermat show, the net operating income increased by +3.8% compared
to H1-2015, the latest comparable period.
The annual International Agriculture's show ("SIA") attracted
619,000 visitors at Porte de Versailles, +1.3% compared to 2016.
The 2nd edition of Vivatech, held at Porte de Versailles, attracted
over 60,000 visitors (+33% vs. 2016). The biennial "Le Bourget
International Air Show" (SIAE) was a record-breaking event in terms
of new orders ($150 Bn) and exhibitors (almost 2,400).
The first phase of renovation works (2015-2017) on the Porte de
Versailles site continued. The opening of the new Paris Convention
Centre is planned for H2-2017.
VALUE CREATION OF €16.45 PER SHARE
The
Gross Market Value (GMV) of the Group's assets amounted to €42.5Bn
as at June 30, 2017, up +4.9% (+3.3% on a like-for-like basis)
compared to December 31, 2016.
The Shopping Centre GMV grew by +2.6% on a like-for-like basis,
driven by a rental effect (+1.4%) and yield compression (+1.1%).
The average net initial yield(2) (NIY) of
the retail portfolio stood at 4.3% as at June 30, 2017 (vs. 4.4% as
at December 31, 2016).
The GMV of the Group's office portfolio increased to €4.4 Bn (+8.8%
like-for-like) as a result of yield compression (+7.2%), following
reference transactions in Paris CBD and La Défense, and a positive
rent effect (+1.7%).
The Going Concern NAV per share was €213.60 as at June 30, 2017, an
increase of +€12.10 compared to December 31, 2016. This increase
was the sum of (i) the value creation of €16.45 per share, (ii) the
impact of the interim dividend paid in March 2017 of -€5.10, and
(iii) the positive impact of the mark-to-market of the fixed-rate
debt and derivatives of +€0.75.
€8.1 Bn DEVELOPMENT PIPELINE TO DRIVE FUTURE
GROWTH
Five
deliveries are planned for H2-2017: The new 80,843 m² Wroclavia
shopping centre in Wroclaw; the 41,972 m² extension of Centrum
Chodov in Prague; the 29,906 m² extension of Carré Sénart and the
7,602 m² extension of Parly 2, both in the Paris region, and the
10,517m² extension and full redevelopment of Glòries in Barcelona.
The average pre-letting of these projects stands at 94%.
As at June 30, 2017, the estimated total investment cost (TIC) of
the consolidated development pipeline amounted to €8.1 Bn (€8.0 Bn
as at December 31, 2016). The changes in the TIC (+€68 Mn) and in
the GLA (+1,909 m²) result from modifications in the program of
existing projects, currency movements and indexation.
NEW HISTORIC LOW AVERAGE COST OF DEBT AND
INCREASED MATURITY
In
H1-2017, Unibail-Rodamco raised €2.5 Bn of medium- to long-term
funds in the bond and bank markets while maintaining its financial
ratios at healthy levels: Loan-to-Value remained stable at 33%
compared to December 31, 2016, and the interest coverage ratio
increased to 6.9x (5.9x in 2016). The average cost of debt
decreased further to reach a new historic low of 1.4% (vs. 1.6% for
2016), while the average maturity was extended to 7.4 years (7.0
years as at December 31, 2016). The Group raised a new 20-year Euro
bond (€500 Mn) with the lowest spread achieved by a corporate
issuer in H1-2017 for this maturity, and signed the first of its
kind €650 Mn 'green' revolving credit facility in Europe.
DISPOSALS
Unibail-Rodamco has entered into agreements to dispose of five
assets for an aggregate NDP(3) of €526 Mn,
representing an average premium of +17.2% over the last unaffected
appraisal values and a NIY of 4.1%. These transactions are expected
to close in Q3-2017.
In addition, the Group is engaged in a number of other disposal
processes, involving both retail and office assets, for an
aggregate of approximately 272,000 m² of consolidated GLA.
OUTLOOK
Based
on the H1-2017 results, the Group confirms its guidance of between
€11.80 and €12.00 per share for its recurring EPS for
2017.
This outlook takes account of the disposal of assets signed as at
June 30, 2017, as well as those currently in a disposal process,
and assumes successful deliveries of projects in Q4-2017 as well as
no deterioration of the general economic or security conditions in
Europe.
FINANCIAL SCHEDULE
The
next financial events on the Group's calendar will be:
October 26, 2017: 2017
3rd Quarter
Revenues (after market close)
January 31, 2018: 2017 Full-year results
(after market close)
April 18, 2018: Combined General
Meeting
April 23, 2018: 2018 1st Quarter
Revenues (after market close)
May 17 & 18, 2018: Investor Days
For
further information, please contact:
Investor Relations
Aurélia
Baudey-Vignaud
+33 1 76 77 58
02
aurelia.baudey-vignaud@unibail-rodamco.com
Media
Relations
Pauline Duclos-Lenoir
+33 1 76 77 57 94
pauline.duclos-lenoir@unibail-rodamco.com
About Unibail-Rodamco
Created in 1968, Unibail-Rodamco SE is Europe's largest listed
commercial property company, with a presence in 11 EU countries,
and a portfolio of assets valued at €42.5 billion as of June 30,
2017. As an integrated operator, investor and developer, the Group
aims to cover the whole of the real estate value creation chain.
With the support of its 2,008 professionals, Unibail-Rodamco
applies those skills to highly specialised market segments such as
large shopping centres in major European cities and large offices
and convention & exhibition centres in the Paris
region.
The Group distinguishes itself through its focus on the highest
architectural, city planning and environmental standards. Its long
term approach and sustainable vision focuses on the development or
redevelopment of outstanding places to shop, work and relax. Its
commitment to environmental, economic and social sustainability has
been recognised by inclusion in the FTSE4Good and STOXX Global ESG
Leaders indexes.
The Group is a member of the CAC 40, AEX 25 and EuroSTOXX 50
indices. It benefits from an A rating from Standard & Poor's
and Fitch Ratings.
For more information, please visit our website:
www.unibail-rodamco.com
1 Assets
for sale: Assets under contract to be sold or in a disposal
process
2 Net
Initial Yield (NIY) : annualized contracted rent (including
indexation) and other incomes for the next 12 months, net of
operating expenses, divided by the asset value net of estimated
transfer taxes and transaction costs
3 Net
Disposal Price (NDP): Total Acquisition Cost incurred by the
acquirer minus all transfer taxes and transaction costs
UNIBAIL-RODAMCO SE: HALF-YEAR
RESULTS 2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: UNIBAIL-RODAMCO SE via Globenewswire