Unibail-Rodamco-Westfield Faces Challenges Amidst COVID-19
- 14.2% slump in net rental income for Westfield owner Unibail-Rodamco-Westfield (URW)
- UK net rental income down 34.1% to €50m
- Overall portfolio valuation declined by 5.1%
- Most shopping centres closed in Q1 for an average of 67 days
- 97% of European stores now open, 1% still restricted
- €12.7bn cash and undrawn credit facilities available
- URW plans to dispose €4bn of assets over next two years
Unibail-Rodamco-Westfield (URW), the owner of Westfield, has reported a 14.2% drop in net rental income to €1bn (£904m) in its half-year trading update. In the UK, the net rental income value fell by 34.1% to €50m (£45.2m). The group’s overall proportionate portfolio valuation also declined by 5.1% during the period. URW stated that the first half of 2020 was an ‘unprecedented’ time, forcing it to ‘substantially close’ most of its shopping centres for around 67 days starting in March. As of June 30, 97% of stores within URW’s European centres are now open, while 1% remain restricted – mainly due to delayed reopenings of tenants in the UK. Group CEO Christophe Cuvillier said: ‘The group has a record €12.7bn (£11.4bn) of cash and undrawn credit facilities available.’ Despite adverse conditions, URW successfully closed the disposal of a 54.2% stake in a portfolio of five French centres. Cuvillier added: ‘These accomplishments during such a difficult period prove the resilience of URW and the extraordinary work of our teams, to which I extend my admiration and gratitude.’ The company is committed to de-leveraging and plans to dispose of €4bn (£3.6bn) of its asset disposal programme over the next two years.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Westfield owner Unibail-Rodamco-Westfield’s financial performance during the first half of 2020, including a decrease in net rental income and the impact of COVID-19 on their operations. It also mentions the company’s plans for asset disposal and the CEO’s statement about the resilience of the group.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial impact of COVID-19 on Westfield owner Unibail-Rodamco-Westfield’s net rental income and portfolio valuation, as well as their plans for asset disposal. It also includes a quote from the CEO acknowledging the challenges faced and the resilience of the company. However, it lacks in-depth analysis or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Retail and Real Estate sectors
Financial Rating Justification: The article discusses a decline in net rental income and the impact of COVID-19 on the company’s shopping centers, which affects the financial performance of Unibail-Rodamco-Westfield and potentially other retail and real estate companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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