URW’s US Rental Income Climbs 3.9% Amid Strong Tenant Sales

• Net rental income up 3.9% to €237.1 million, with 6.3% like-for-like growth
• Positive net result of €21.9 million, reversing prior year losses
• Acquisition of remaining 47% stake in Wheaton regional asset in US
• Continued integration of ESG factors into valuations and operations
• Voluntary ASX delisting approved, effective August 2025

Operational Resilience in US Shopping Centers

Unibail-Rodamco-Westfield N.V. (URW) has reported a notable improvement in its half-year financial results for 2025, underpinned by strong operational performance in its US shopping center portfolio. Tenant sales in the US rose by 5.7%, outpacing national inflation and retail sales indices, while footfall increased by 3.6%, signaling sustained consumer engagement at flagship and regional centers.

This positive momentum translated into a 3.9% increase in net rental income (NRI) to €237.1 million, with like-for-like NRI growth of 6.3% in the US segment. Leasing activity also showed strength, with average rents per square foot rising 10.3%, reflecting URW's focus on securing higher-value leases and maintaining occupancy rates despite a competitive retail environment.

Financial Performance and Capital Management

URW's financial results reveal a significant turnaround, posting a net profit attributable to shareholders of €21.9 million for H1 2025, compared to a loss of €325.6 million in the same period last year. This improvement was supported by stable operating expenses, prudent financial management, and a reduction in net financial debt to €5.76 billion, down from €6.22 billion at the end of 2024.

The average cost of debt remained steady at 1.9%, aided by successful refinancing activities, including a $925 million commercial mortgage-backed securities (CMBS) refinancing at Century City with improved terms. URW also invested €30.5 million in capital expenditures, primarily focused on enhancing investment properties to sustain long-term value creation.

Strategic Acquisitions and Portfolio Enhancements

In a strategic move to consolidate its US presence, URW acquired the remaining 47% stake in the Wheaton regional asset, bringing it to full ownership. This acquisition aligns with the company’s focus on flagship destinations in affluent catchment areas, reinforcing its portfolio quality and operational control.

Sustainability and ESG Integration

URW continues to embed environmental, social, and governance (ESG) considerations into its business model and asset valuations. The company’s sustainability-linked initiatives, including the Westfield Festival and Westfield Tour, have expanded its global reach and community engagement. Independent appraisers have incorporated ESG key performance indicators into their valuation models, reflecting URW’s commitment to net-zero targets and responsible redevelopment.

Market and Regulatory Developments

URW announced its voluntary delisting from the Australian Securities Exchange (ASX), effective August 2025, following formal approval. This move may streamline the company’s shareholder base and reduce regulatory complexity. Additionally, URW has entered a strategic licensing partnership in Saudi Arabia, expanding the Westfield brand into new international markets with flagship centers planned in Dammam, Jeddah, and Riyadh.

Bottom Line?

URW’s H1 2025 results mark a clear recovery and strategic positioning, but investors will watch closely how the ASX delisting and evolving market conditions shape its next phase.

Questions in the middle?

• How will URW’s ASX delisting impact liquidity and retail investor participation?
• What are the implications of the Wheaton acquisition on URW’s US portfolio risk profile?
• How effectively will ESG integration influence URW’s asset valuations and investor appeal going forward?