How URW’s Retail Strength and Brand Licensing Fuel Growth in H1-2025

Strong Retail Momentum Amid Market Challenges

Unibail-Rodamco-Westfield (URW) delivered a solid performance in the first half of 2025, demonstrating resilience in its core retail assets across Europe and the United States. Tenant sales rose by 3.8%, outpacing national sales indices and inflation rates in key markets. This growth was supported by a 1.6% increase in footfall and a dynamic leasing environment that saw a 7.1% uplift in minimum guaranteed rents, particularly on long-term deals.

Like-for-like EBITDA, a key profitability measure, grew by 4.1%, reflecting operational efficiencies and strong asset management. Despite a slight overall EBITDA decline of 1.1% due to disposals and other non-recurring factors, the underlying business showed robust health.

Portfolio Valuation and Capital Management

URW’s portfolio valuation edged up 1.2% to €48.8 billion, with gains in both Europe (+1.4%) and the US (+0.4%). This increase occurred despite negative currency translation effects, highlighting the intrinsic strength of the Group’s assets. The company successfully completed or secured €1.6 billion in disposals during H1, including stakes in offices and shopping centres, contributing to a reduction in net debt and an improved loan-to-value ratio of 44.7% including hybrid securities.

Financial discipline was further demonstrated through refinancing activities, notably a $1.2 billion CMBS refinancing at improved terms, and a strategic re-couponing and downsizing of hybrid securities, lowering the average cost of debt and extending maturities.

Strategic Expansion and Brand Licensing

URW marked a significant milestone with the successful retail opening of Westfield Hamburg-Überseequartier, attracting approximately 4 million visits since April and achieving 95% leasing. The Group also launched a Westfield brand licensing business aimed at international expansion, announcing a partnership with Cenomi Centers in Saudi Arabia. This initiative will see three flagship malls in Dammam, Jeddah, and Riyadh rebranded under Westfield by mid-2026, generating new revenue streams beyond traditional property operations.

Outlook and Distribution Policy

Looking ahead, URW expects its adjusted recurring earnings per share (AREPS) for 2025 to reach the upper end of the €9.30 to €9.50 guidance range, supported by strong H1 results, continued operational momentum, and successful capital management. The Group confirmed a proposed distribution of €4.50 per share for 2025, representing a 30% increase over the prior year, signaling confidence in cash flow generation and shareholder returns.

CEO Jean-Marie Tritant emphasized that these results align with the Group’s ‘A Platform for Growth’ 2025-28 business plan, underscoring URW’s commitment to sustainable urban regeneration and delivering value through high-quality retail and mixed-use assets.