Unibail-Rodamco-Westfield, the French company known for owning the Westfield malls chain, recently released its financial results for 2022, showcasing a complete bounce-back from the effects of the Covid-19 pandemic. The company’s report indicated “excellent” performance, solidifying the absence of any lingering negative impact from the pandemic on its business.
A significant indicator of the company’s recovery is its net rental income, which reached €2.26 billion, marking a remarkable 29.1% increase compared to the previous year. On a like-for-like basis, the increase equated to 27.4%. The shopping centers, composing the largest segment of Unibail-Rodamco-Westfield’s business, contributed €2 billion to the net rental income, reflecting a growth of 24% or 21.5% based on a like-for-like comparison.
The company’s EBITDA, an important financial metric, experienced significant growth as well, rising by 30.2% and totaling €2.2 billion. Furthermore, the recurring net result saw a notable increase of 33.2% to reach €1.339 billion.
A critical milestone in the company’s recovery journey was the fact that tenant sales had returned to 103% of pre-pandemic levels. This achievement signifies a robust comeback for both Unibail-Rodamco-Westfield and the retail industry as a whole. In the United States, tenant sales even surpassed pre-pandemic levels, reaching 108%, while Europe saw sales reach 100%. These figures serve as strong evidence of the company’s successful resurgence post-pandemic.
Another positive sign of recovery was the decrease in shopping center vacancies, which now stand at 6.5% compared to 8.9% in mid-2021. Although this figure still slightly exceeds the pre-pandemic vacancy rate of 5.4%, it indicates progress in filling empty spaces within the shopping centers.
Unibail-Rodamco-Westfield also reported a reduction in its debt by €1.9 billion owing to the sale of non-core operations in both the US and Europe. This debt reduction enhances the company’s financial position and further boosts its recovery from the challenges encountered during the Covid-19 period.
Overall, Unibail-Rodamco-Westfield’s impressive financial results for 2022 demonstrate a robust recovery from the impact of the Covid-19 pandemic. The company’s outstanding performance in net rental income, EBITDA, and tenant sales reaffirms its position as a leader in the retail industry. As the world steadily returns to normal, Unibail-Rodamco-Westfield is poised to continue its success and contribute to the revitalization of the global retail sector.
Links:
1. Unibail-Rodamco-Westfield Official Website
2. Reuters: Unibail-Rodamco-Westfield’s Recovery and Rental Income Targets Article
