Setting The Growth Trajectory Right: Unibail-Rodamco-Westfield (ASX:URW)

  • Oct 26, 2018 AEDT
  • Team Kalkine
Setting The Growth Trajectory Right: Unibail-Rodamco-Westfield (ASX:URW)

Unibail-Rodamco-Westfield (ASX:URW) released its financial report dated September 30, 2018 today, i.e., October 26, 2018. Key highlights from the press release have been provided herein below:

The proportionate Gross Rental Income (GRI) of the Shopping Centre division reported an increase of +40.2% up to €1,605.3 Mn for the first nine months. Disposal non-core shopping centers in the Nordics in 2017 and in Spain in 2018 impacted the rental growth from European region. Delivery of Wroclavia and the extension of Centrum Chodov along with the acquisition of Metropole Zli?ín in 2017 boosted the performance from the Central Europe. WFD contribution since June 2018 was reflected in the gross rental income from US, and UK. Gross rental income from the office division reported a rise of 2.9% compared to the first nine months of 2017. Rental income from offices in France got affected on account of the Disposal of the So Ouest Plaza office building in 2017 .The triennial Intermat exhibition and the opening of Pavilion 7 in Porte de Versailles boosted the gross rental income of the Convention & Exhibition division grew by +6.8% to €148.0 Mn. 

Some retailers faced significant challenges in dealing with the tough retail environment during the period. However, tenant sales growth posted strong performance during the period. Tenant sales backed by strong performance in Cental Europe, France and Nordics grew by 2.3% for the group and +3.6% for flagships as on September 30 in comparison to the same period in 2017. The CNCC and IFLS indices outperformed by +343 and +493 bps, respectively. On a trailing 12- month basis, US speciality sales per sq. ft were up by +5.5% and +5.6% for flagships for the period through September 30.

Footfall in European shopping centers recorded 2.0% rise through Q3-2018. Strong footfall growth of +4.6%, +3.8%, +3.6% and +3.4%, from UK, France, the Nordics and Central Europe was posted respectively during this period.

The company has entered into an agreement with Singapore’s sovereign wealth fund, GIC on October 15 for the sale of Tour Ariane in La Défense. The company will also be getting rid of about eight assets under an agreement and the acquisition cost in totality has been indicated to be € 1,920 Million while net initial yield is indicated to be 4.5% with weighted average premium of over 8% to the book value, as on June 30, 2018. The net disposal price, NDP of these deposits is expected to amount to € 1,787 Million.

European disposal programme has already accomplished more than 55% of the € 3 Bn since June 30, 2018.

WFD acquisition as on June 7, 2018 and cost synergies realizations as on June 30 will be the major growth factors for URW. The impact of the accelerated disposals of approximately € 1.8 Bn already agreed or completed YTD (-11 cents), and shift of the recognition of development profits on projects in London and California, will result in expected adjusted Recurring Earnings per Share for the financial year 2018 to be in the range of € 12.75 - € 12.90.

Currently, the stock last traded at the levels of $12.65 (October 26, 2018) backed by healthy financials with strong growth potential.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK