Unibail-Rodamco-Westfield URWFP (Baa2/BBB+/BBB+ stable): 1Q24 Results
URW had solid results with rental income coming in strong. There were no significant disposals in the period, but the company has flagged that negotiations are ongoing.
• Gross rental income rose 7.1% like-for-like to EUR 799m ahead of 755m consensus.
• Footfall up 3.9% with Spain and US leading the way. Tenant sales up 5.5% which is a real increase of 1.9% (3.6% inflation)
• Proportion of long-term leases (>3yr) increases to 78% from 74% 1Q23• Vacancy 5.7% has fallen by 1.5% vs 1Q23
• Rent collection of 96% rising to 98% when delays are included.
• URW has EUR 1.2bn in potential divestments currently under discussion as the market shows signs of rebounding from a 2023 lull. The company is committed to further deleveraging through disposals in Europe. The equity is up 78% from Oct 23 lows.