URW REPORTS FY-2023 EARNINGS

URW announces a strong operational performance across all activities

Strong operating performance with tenant sales up +6.4%, above core inflation, and footfall up +4.9%

Like-for-like EBITDA up +6.7% and Adjusted Recurring EPS of €9.62¹, above guidance

Continued deleveraging leading to improved Net Debt/EBITDA at 9.3x

Successful return to the bond market at attractive conditions

Better Places sustainability roadmap shared with the market including net-zero targets approved by the SBTi

Distribution reinstated with a proposed cash payment of €2.50 per share to be paid in May 2024²

2024 AREPS forecasted to be in the range of €9.65 to €9.80³

2023 Financial Results in review

1. Tenant sales up +6.4% and footfall up +4.9%

2. Shopping Centre vacancy back to 2019 level at 5.4%, 110 bps improvement vs. 2022

3. €449 Mn of Minimum Guaranteed Rent (MGR) signed (+7% vs. 2022), at an uplift on top of indexed passing rent of +6.8% including +10.6% on long-term deals

4. Shopping Centres Net Rental Income up +8.0%⁴ on like-for-like basis

5. Westfield Rise, URW’s retail media business, up +17.4% on a net margin basis⁵

6. Offices & Others Net Rental Income up +22.1% on like-for-like basis, reflecting leasing progress at Trinity (96% occupancy rate) with an average rent of €564/sqm/year

7. 2023 EBITDA at €2,199 Mn, back to 2019 level on a like-for-like basis

8. €1.0 Bn in asset disposals in Europe and the US leading to a total contribution to net debt reduction from disposals of €5.1 Bn⁶ since 2021

9. 2023 IFRS Net Financial Debt reduced by -€950 Mn to €19.8 Bn⁷

10. €13.6 Bn⁸ of liquidity covering more than 36 months of refinancing needs

11. c. 90% of committed pipeline to be delivered in 2024 including 172,200 sqm mixed-use project Westfield Hamburg-Überseequartier, opening on April 25, 2024

12. Proposed cash distribution of €2.50 per share, to be approved by the AGM on April 30 and paid on May 16, 2024

13. 2024 AREPS guidance of €9.65 - €9.80 reflects consistent underlying operational performance

“In 2023, we delivered strong operational performance across all activities, supported by dynamic leasing activity and the positive effect of indexation. Our like-for-like Group earnings⁹ are now back at 2019 levels, ahead of the 2024 target we set ourselves at our 2022 Investor Day.

We made further deleveraging progress in challenging investment market conditions, securing 11 transactions totalling €1 billion. Total disposals since 2021 have contributed €5.1 billion to our net debt reduction, and we remain committed to further deleveraging.

The success of our hybrid exchange offer and the oversubscribed €750 million green bond issue demonstrate the continued confidence of debt investors.

In October, we announced a comprehensive evolution of our Better Places roadmap, which included SBTi-approved net-zero targets, as well as new targets on waste reduction, water conservation and biodiversity.

The robustness of the Group’s business, visibility on our operating performance, delivery of major development projects in 2024, and strong liquidity position, give us confidence to reinstate shareholder distributions. We will propose a cash payment this year of €2.50 per share, for approval at our AGM in April, and will significantly increase the distribution in future years as we make further progress on our strategic and financial objectives.”


TO LEARN MORE

¹ IFRS Net result of -€1,629.1 Mn, including +€1,408.9 Mn of Recurring Net Result.
² Subject to approval by Annual General Meeting of Unibail-Rodamco-Westfield SE.
³ Please refer to the guidance in page ix for further detail.
⁴ Shopping Centres Lfl NRI excluding airports.
⁵ At 100%.
⁶ On an IFRS basis, including disposals and foreclosures completed or secured by February 8, 2024.
⁷ Proforma for the disposals secured until February 8, 2024.
⁸ On an IFRS basis, as at December 31, 2023.
⁹ EBITDA.