Unibail-Rodamco-Westfield (URW) H2 2024 earnings summary

Executive summary

• Achieved strong operating performance in 2024, with increased footfall and tenant sales in shopping centers, record occupancy since 2017, and robust leasing activity focused on high-value, long-term deals.

• Convention and exhibition segment delivered record results, up 66% year-over-year, boosted by the Paris Olympic and Paralympic Games.

• Offices in La Défense grew by double digits, supported by full leasing of Trinity Tower and delivery of Lightwell.

• Completed or secured €1.6 billion of disposals at book value and acquired €0.6 billion of JV partner stakes at attractive terms.

• Full-year earnings exceeded guidance, with a proposed 40% increase in cash distribution to €3.50 per share.

Financial highlights

• Group like-for-like net rental income (NRI) up 6.7% year-on-year; total NRI rose 4.7% to €2,314 million.

• EBITDA grew 6.9% in total and 7% like-for-like.

• Recurring EPS reached €10.56, up 4.1% year-on-year; adjusted recurring earnings per share at €9.85, up 2.4%.

• Cost of debt remained low at 2%, up 20 bps from FY-2023, due to effective hedging and favorable financing conditions.

• Net debt-to-EBITDA ratio improved to 8.7x from 9.3x in 2023, lowest since Westfield acquisition.

Outlook and guidance

• Proposed cash distribution of €3.50 per share for 2024, a 40% increase and first since 2020.

• 2025 adjusted recurring EPS guidance set at €9.30–€9.50, supported by at least 5% underlying growth.

• Growth drivers include strong retail performance, increased variable income, cost discipline, and positive impact from 2024–2025 deliveries.

• Guidance factors in completed and secured disposals, a slight increase in cost of debt, and the one-off impact of the Olympics.