Half Year 2024 Unibail-Rodamco-Westfield SE Earnings Call Transcript
Key Points
- Strong operating performance across all activities, with higher year-on-year footfall and tenant sales in retail.
- Record results in the convention and exhibition business, driven by the early impact of the Olympic Games.
- Offices NRI increased due to full leasing progress at Trinity tower in La Défense.
- Significant growth in retail media revenues, on track to meet 2024 targets.
- Stabilization of asset values with net initial yields reflecting rental growth.
- Significant cost overruns and project mismanagement identified in the Westfield Hamburg-Überseequartier project, totaling approximately EUR360 million.
- Increased total investment cost of Westfield Hamburg-Überseequartier by EUR160 million due to a water leak and subsequent delays.
- Adjusted recurring earnings per share decreased by 2.7% year-on-year due to refinancing costs.
- Net debt increased by EUR0.4 billion due to CapEx spending and shareholder distributions.
- US flagship valuations decreased by 4.7% on a like-for-like basis, reflecting a negative yield effect.
Good morning, and welcome to Unibail-Rodamco Westfield's 2024 half year results presentation. H1 was characterized by strong operating performance across all activities. In retail, this meant higher year-on-year footfall and tenant sales, outperforming national sales indices in the US and in Europe, as well as continued robust leasing activity. Our convention and exhibition business has delivered record results thanks to the early impact of the Olympic Games, which start tomorrow, as we are hosting a number of events and operational hubs at our Viparis venues.
Offices NRI was up as we benefit from the full effect of leasing progress at Trinity tower in La Défense, which is now fully let. And the first half was a strong period for new revenue growth with retail media revenues up significantly, fully on track to meet our 2024 target. The first half also saw the stabilization of asset values, with net initial yields reflecting rental growth. Regarding disposals, in the year
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