Unibail Rodamco Westfield : Résultats annuels 2022 – Communiqué de presse (en anglais)

Paris, Amsterdam, February 9, 2023

Press release

UNIBAIL-RODAMCO-WESTFIELD REPORTS FY-2022 EARNINGS

Adjusted Recurring EPS of €9.31 up 34.7% vs. 2021 thanks to Shopping Centres performance and strong

rebound in Convention & Exhibition activity

Shopping Centre tenant sales and rent collection at pre-COVID levels with consistent improvement across

all operating metrics

Strong operational performance and continued deleveraging leading to improved credit metrics with Net

Debt/EBITDA now at 9.6x - better than 2019 levels

2023 AREPS forecasted to be in the range of €9.30 to €9.501

2022 in review:

• Tenant sales reached 103% of 2019 levels, with Europe2 at 100% and the US at 108% of 2019 levels
• Rent collection at 97%, in line with 2019 levels
• Shopping Centre vacancy at 6.5% (June 2021: 8.9%, December 2019: 5.4%)
• €441 Mn of Minimum Guaranteed Rent (MGR) signed (+26% vs. 2021, +14% vs. 2019), at uplift of +6.2% including +14.4% on long-term deals
• 51% increase in Commercial Partnerships revenues3 to €175 Mn (2021: €116 Mn) - with strong growth
  in European advertising, brand and data activities (2022 net margin: €46 Mn, 2021: €30 Mn)
• Recovery of Convention & Exhibition Net Operating Income at €190 Mn (2021: €55 Mn,
  2018: €165 Mn)
• Offices & Others Net Rental Income of €70 Mn, up +23.2% on like-for-like basis, reflecting leasing progress at Trinity
• 2022 EBITDA +30% at €2,209 Mn (2021: €1,697 Mn)
• €2.8 Bn of disposal transactions in 2022 with €1.6 Bn for Europe and €1.2 Bn for the US
• 2022 IFRS Net Financial Debt reduced by -€1.9 Bn to €20.7 Bn and fully hedged against interest rates increases for the coming years
• Refinancing needs secured for the next 36 months with €13.0 Bn4 of cash on hand and available facilities
• Successful delivery of Les Ateliers Gaîté (Paris), "Rue de la Boucle" at Westfield Forum des Halles (Paris), Westfield Topanga extension (Los Angeles) and the first phase of Coppermaker Square residential (London)
• 2023 AREPS guidance of €9.30 to €9.50 reflects consistent underlying operational performance

1. Please refer to the guidance in page ix for further detail.
2. Incorporates Continental Europe and UK.
3. At 100%.
4. On an IFRS basis.

i

Commenting on the results, Jean-Marie Tritant, Chief Executive Officer, said:

"URW achieved excellent financial results in 2022, confirming the end of any COVID effect on our business. In particular, tenant sales and rent collection returned to pre-pandemic levels and we delivered consistent improvement in operating metrics across all regions.

Our proactive leasing strategy yielded a higher proportion of longer-term leases at increased rents while we also benefitted from Sales Based Rents and the positive impact of indexation. In 2023, we will perform as retailers and brands optimise their store networks with us, with a focus on the most productive stores in prime locations as part of their drive-to-store strategies.

Strong growth in Commercial Partnerships revenues clearly demonstrated the opportunity to generate new revenues from qualifying the audience of visitors to our centres, especially in Europe where we launched Westfield Rise, an in-house media advertising agency.

Higher earnings, combined with a -€1.9 Bn debt reduction thanks to disposals in the US and Europe, translated into enhanced credit metrics. The Group's robust operational performance and strong liquidity position allows us to progress our deleveraging programme in a timely and orderly manner, including the radical reduction of our US financial exposure.

The Group is on track to deliver its "2024 and beyond" strategy, which includes maximising asset value through the disciplined delivery of our committed pipeline and unlocking new development opportunities, with a focus on urban regeneration and environmental transition projects."

	FY-2022	FY-2021	Growth	Like-for-like
	growth5
Net Rental Income (in € Mn)	2,226	1,724	29.1%	27.4%6
Shopping Centres	2,024	1,632	24.0%	21.5%7
Offices & Others	70	60	16.0%	23.2%
Convention & Exhibition	132	32	n.m.	n.m.
EBITDA (in € Mn)	2,209	1,697	30.2%
Recurring net result (in € Mn)	1,339	1,005	33.2%
Recurring EPS (in €)	9.66	7.26	33.1%
Adjusted Recurring EPS (in €)	9.31	6.91	34.7%
	Dec. 31, 2022	Dec. 31, 2021	Growth	Like-for-like
	growth
Proportionate portfolio valuation (in € Mn)	52,250	54,473	-4.1%	-2.7%
EPRA Net Reinstatement Value (in € per	155.70	159.60	-2.4%
stapled share)
Figures may not add up due to rounding

1. Like-for-likeNRI: Net Rental Income excluding acquisitions, divestments, transfers to and from pipeline (extensions, brownfields or redevelopment of an asset when operations are stopped to enable works), all other changes resulting in any change to square metres and currency exchange rate differences in the periods analysed.
2. Including airports.
3. Excluding airports.

ii

2022 AREPS: €9.31

Reported AREPS amounted to €9.31, up +34.7% compared to 2021, mainly driven by strong Shopping Centre operational performance (including the end of COVID-19 rent relief, lower doubtful debtors and higher variable income), the recovery of the C&E division and the delivery of projects, partly offset by disposals, increase in financial expenses and taxes. Rebasing both periods for the COVID-19 rent relief, the AREPS would have increased by +13.0%.

OPERATING PERFORMANCE

Shopping Centres

Like-for-likeshopping centre NRI was up by +21.5%8 for the Group, and by +25.4% in Continental Europe, and up +12.0%8 in the US and +21.4% in the UK. All regions benefitted from higher variable income and lower doubtful debtors due to higher rent collection including 2021 rents. Performance in Continental Europe was also positively impacted by the end of COVID-19 rent discounts as well as indexation, and in the UK by lower rent relief and higher Sales Based Rents (SBR). The US benefitted from higher SBR, parking income and Commercial Partnerships, partly offset by negative MGR uplifts on short-term deals. Excluding the impact of COVID-19 rent relief, the like-for-like NRI growth would be +7.8% for the Group.

2022 tenant sales9 were at 103% of 2019 levels, including 101% in Continental Europe, 96% in the UK and 108% in the US, and footfall10 was at 90% of 2019 levels, including 88% in Continental Europe, 89% in the UK and 94% in the US (96% excluding Westfield World Trade Center and Westfield San Francisco Centre in which footfall remains affected by work-from-home trends). Footfall is expected to continue to grow as vacancy decreases.

In H2-2022, European tenant sales reached 102% of 2019 levels (vs. 98% in H1-2022). Sales performance in 2022 differed by sector in Europe. In particular, Health and Beauty was +11%, Sports +15%, while Fashion -5% and Entertainment -12% vs. 2019 levels. Entertainment saw an improvement from -14% in H1 to -10% in H2 and Fashion from -7% to -2%.

1. Excluding airports.
2. Tenant sales for all centres (except The Netherlands) in operation, including extensions of existing assets, but excluding deliveries of new brownfield projects, newly acquired assets and assets under heavy refurbishment (Ursynów, Westfield La Part-Dieu, Les Ateliers Gaîté, CNIT, Gropius Passagen and Garbera) or works in the surrounding area (Fisketorvet), excluding El Corte Inglés sales from Westfield Parquesur and La Vaguada, excluding Zlote Tarasy as this centre is not managed by URW, excluding Carrousel du Louvre and excluding Auto category for Europe and Auto and Department Stores for the US. In addition, sales have been restated from the disposals occurred during the year. H2 figures are based on the scope of assets in operation over the full year. H1 figures have been restated accordingly.
3. Footfall for all centres in operation, including extensions of existing assets, but excluding deliveries of new brownfield projects, newly acquired assets and assets under heavy refurbishment (Ursynów, Westfield La Part-Dieu, Les Ateliers Gaîté, CNIT, Gropius Passagen, Garbera and Westfield Mall of the Netherlands) or works in the surrounding area (Fisketorvet), excluding Carrousel du Louvre and excluding Zlote Tarasy as this centre is not managed by URW, and excluding in the US, the centres for which no comparable data of the previous year is available. In addition, footfall has been restated from the disposals occurred during the year. H2 figures are based on the scope of assets in operation over the full year. H1 figures have been restated accordingly.

iii

In the US, tenant sales have consistently outperformed pre-COVID levels since H1-2021. Overall, 2022 sales came to 108% of 2019 levels driven by Flagship assets at 117%, Regionals at 100% and partly offset by the Central Business District ("CBD")11 assets at 74%. The strong growth continued to be broad-based with almost all categories performing above 2019 levels, such as Luxury (+83%), Home (+37%), F&B (+10%) and Fashion (+3%). Entertainment saw an improvement from -25% in H1 to -12% in H2.

Rent collection12 amounted to 97% for 2022 (vs. 88% at FY-2021 and 96% in H1-2022), including 97% in Continental Europe, 99% in the UK and 97% in the US, returning to pre-COVID levels. The Group continued to collect 2021 rents, leading to an improvement of 2021 rent collection from 88% to 93% between February 2022 and December 2022.

URW signed €441 Mn of MGR13 during 2022 (+26% compared to 2021) with an MGR uplift of +6.2% (vs. -5.2% in 2021). As market conditions improved, the proportion of long-term deals signed also increased from 61% of MGR signed in 2021 to 68% in 2022. The MGR uplift for leases longer than 36 months came to +14.4% for the Group, with Continental Europe at +8.9%, the UK at +3.6% and the US at +36.0%.

SBR14, which are mainly generated in the US, increased to €123.6 Mn in 2022 (6.1% of NRI) from €80.2 Mn in 2021 (5.0% of NRI) of which €77.7 Mn was for the US and €45.9 Mn for Europe.

Vacancy for Shopping Centres at a Group level decreased significantly to 6.5% at FY-2022, down from 8.9% at H1-2021 and 7.0% at FY-2021. In Continental Europe, vacancy was 3.1%, down from 4.0% in December 2021 and 5.0% in June 2021. In the UK, vacancy also decreased from 12.2% in June 2021 and 10.6% in December 2021 to 9.4% at FY-2022. In the US, the vacancy reduced to 10.4% at FY-2022 from 14.0% in June 2021 and 11.0% at FY-2021, with vacancy decreasing by -110 bps year-on-year to 8.2% in the Flagships.

Indexation and inflation

URW rents are indexed on a yearly basis in Continental Europe. 2022 indexation contribution to like-for-like retail NRI performance in Continental Europe was +3.6%, reflecting 2021 inflation due to the usual time lag between contractual indexation and inflation. In the UK and the US, leases are not tied to actual CPI figures but the Group benefitted from inflation through SBR.

1. Westfield World Trade Center and Westfield San Francisco Centre.
2. For the Shopping Centre division, including service charges, as at February 2, 2023.
3. All letting figures exclude deals <12 months.
4. Excluding airports.

iv

Commercial Partnerships

Revenue from Commercial Partnerships15 increased from €76.2 Mn in 2021 to €115.5 Mn in 2022, driven in part by the launch in Europe of Westfield Rise, an in-house media, brand experience and data partnerships agency.

Total Westfield Rise activity in Europe amounted to €45.5 Mn in net margin at 100% share in 2022, up +23% compared to 2019 (and +52% compared to 202116). This new division (for which figures are reported at 100%) will generate €75 Mn16 in annual net margin by 2024, a +€45 Mn increase compared to 2021, with strong potential growth beyond 2024.

Offices & Others

Office NRI increased by +16.0%, primarily as a result of deliveries of Pullman Montparnasse and Gaîté Montparnasse offices, partly offset by 2021 and 2022 disposals, especially Solna Centrum. On a like-for-like basis, office NRI increased by +23.2%, with +44.2% in France, mainly due to leasing activity at Trinity in La Défense, now 74% let.

Two new leases (Santarelli and Alain Afflelou) were signed for Trinity in 2022 at an average rent of c. €567/sqm17, with lease incentives below the market average. In addition, 33,100 sqm were leased on projects, including Lightwell in La Défense (80% pre-let) and Westfield Hamburg offices (29% pre-let), both due to be delivered in 2024.

Convention & Exhibition

In 2022, Viparis hosted 617 events (including 189 exhibitions, 75 congresses and 353 corporate events) compared to 236 events in 2020 and 721 events in 2018.

Convention & Exhibition recurring NOI amounted to €190.2 Mn compared to €55.2 Mn in 2021 and €164.7 Mn in 2018. This includes the €25 Mn contribution from the French State to compensate closure periods in earlier years. Restated from this and triennial shows (held in 2018 and 2022), the NOI is slightly above 2018, due to the strong recovery of activity and the shift of certain biannual shows, despite the remaining impact of COVID- 19 in the first quarter.

As at January 31, 2023, signed and pre-booked events in Viparis venues for 2023 amounted to 86%18 of 2019 pre-bookings, the last comparable year.

1. Group figure (Europe and US) on a proportionate basis. Commercial Partnerships includes both the new Media, Brand & Data Partnerships division presented during the Investor Day in March 2022 and now called "Westfield Rise", as well as kiosks, seasonal markets, pop-ups, and car park activations ("Specialty leasing & other income").
2. As published at the Investor Day.
3. Average weighted face rent excluding Welkin & Meraki floors (flex space operator) with SBR.
4. In number of events.

v