KEY HIGHLIGHTS
DELEVERAGING PROGRESS & IMPACT
URW’s comprehensive deleveraging program is on track. The Group is positioned to execute the radical
reduction in financial exposure to the US over the course of 2022 and 2023, supported by the quality of its
US assets, of which 95% are in the A-category9
, as well as the strength of the recovery which is driving
occupancy and rental growth for long term leases.
In Europe, URW will secure the remaining €1.5 Bn of its €4 Bn disposal programme by the end of 2022.
This process combines the full sale of non-core assets as well as the disposal of stakes to institutional
investors, where URW will receive asset and property management fees going forward.
Once completed, URW’s LTV, is expected to be below or around 40% including the Group’s hybrid bonds.
RETURN OF RETAIL NRI & GROUP EBITDA
Following completion of the deleveraging process, URW will be a European pure play with a €41 Bn
portfolio10 of high-quality and well-located assets. 95% of the Group’s European retail assets are in the A-category9
.
These assets generate higher sales intensity for retailers, as well as increased value given the role of the
physical store as part of their omnichannel and drive-to-store strategy.
Key retailers are increasing their footprint with URW. Between 2019 and 2021, the Group’s top 50 retailers
in Europe, who account for 29% of total MGR, increased their GLA by an average of 7% for an average
MGR increase of 6%.
URW expects tenant sales to return to pre-COVID levels in 2022, occupancy and variable income in the
course of 2023, and retail NRI on a run rate basis in 2023, with full effect in 2024. In 2024, the Group
forecasts Retail NRI of €1.56 Bn and EBITDA of circa €1.9 Bn for its streamlined European portfolio.
The Group’s Convention and Exhibition business is expected to further recover in 2022 and return to
normalised levels in 2023, ahead of the 2024 Paris Olympics. URW’s Offices business will benefit from the
full letting of recently completed projects as well as new deliveries.
GROWTH OF NEW REVENUES
URW has created a dedicated division to generate increased revenues from advertising, brand experience
and data services.
The new division will generate €75 Mn in annual net revenues by 2024 with €23 Mn in additional CAPEX11
to support this growth. This investment will be split between upgrading and increasing the Group’s 1,700
in-mall advertising screens, and the roll out of fully GDPR-compliant technology to qualify footfall at URW’s
Westfield-branded malls.
UNLOCKING VALUE THROUGH MIXED USE DEVELOPMENT
URW will continue to maximise the value of its assets through targeted mixed-use development,
capitalising on its established position in the most valuable European real estate markets with high barriers
to entry.
By 2024, URW will deliver €2 Bn of its committed pipeline which will generate €125 Mn in stabilized NRI.
In addition, URW will unlock further development opportunities embedded in its assets during the plan
horizon, with a potential €1 Bn in projects to add to its controlled pipeline, with limited predevelopment
expenses.
Underpinned by the Group’s disciplined capital allocation approach, URW will focus on densifying its
flagships with office, hotels and residential, as well as repurposing retail space and, where appropriate,
extending to add high-growth alternative uses.
BUILDING ON ESG LEADERSHIP
URW launched its ambitious, industry leading Better Places 2030 ESG strategy in 2016 and has consistently
ranked in the top-quartile on ESG performance. URW’s comprehensive approach addresses all
stakeholders and the Group’s carbon reduction targets have been approved by the Science Based Targets
initiative and are consistent with levels required to meet the Paris agreement goal of limiting global
warming to 1.5 °C.
URW is on track to meet all Better Places 2030 commitments, including cutting carbon emissions across
its value chain by 50% between 2015 and 2030. The Group has also made good progress in energy
efficiency and green energy usage. 90% of URW assets in Europe have received Outstanding or Excellent
ratings from the BREEAM IN-USE certification, the world’s leading sustainability assessment method,
compared to 30% for the European Retail Real Estate sector as a whole.
URW is committed to contributing to global carbon neutrality and will present a step-change update to its
plan in 2023 with a view to establishing new commitments.
CAPITAL ALLOCATION & DIVIDEND
URW outlined its disciplined capital allocation framework that balances continued investment in future
growth with maintaining a strong balance sheet.
URW will continue to sell mature assets that do not meet its return criteria or that do not fit its destination
strategy. URW will continue to invest in projects and acquisitions on an opportunistic basis, looking at the
expected Internal Rate of Return, the level of risk and any balance sheet constraints. URW will resume the
payment of sustainable dividend from fiscal year 2023.