Maintaining a Strong Position in Changing Retail Landscape
- Westfield owner Unibail-Rodamco Westfield announces €9bn (£8.1bn) ‘reset’ plan
- Attempts to raise £3.2bn in capital and make European disposals
- Limiting cash dividends for around €1bn cash savings over two years
- €0.8bn reduction in development and non-essential capex
- €4bn of disposals expected by 2021 end
- Preserves strong investment grade credit rating, LTV below 40% and net debt / EBITDA below 9x
- Footfall in Continental Europe at 80-90%, UK at 60-70% of last year’s levels
- Christophe Cuvillier: ‘RESET’ plan to embrace changing retail environment and capitalize on portfolio quality
- Steady progress in tenant negotiations
Westfield owner Unibail-Rodamco Westfield (URW) has announced an €9bn (£8.1bn) ‘reset’ plan to raise £3.2bn in capital and make several European disposals, aiming to preserve a strong investment grade credit rating and maintain a sustainable capital structure with an LTV below 40% and net debt / EBITDA below 9x. The company revealed that footfall in Continental Europe is at 80-90% of last year’s levels, while the UK stands at 60-70%. CEO Christophe Cuvillier stated that the plan will allow URW to embrace the changing retail environment and capitalize on its portfolio quality. The firm believes this step ensures they are best positioned for the future amid pandemic uncertainties.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Unibail-Rodamco Westfield’s €9bn ‘reset’ plan, including details on capital raising, disposals, cash savings, and the company’s priorities in response to the COVID-19 pandemic. It also includes relevant data on footfall trends in Continental Europe and the UK.
Noise Level: 3
Noise Justification: The article provides relevant information about Unibail-Rodamco Westfield’s €9bn ‘reset’ plan and its strategies to maintain a strong credit rating and preserve financial stability during the pandemic. It also includes insights from the CEO on their approach to adapting to the changing retail environment. The content is focused and informative, with no apparent noise or filler information.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news are related to real estate and retail sectors as Unibail-Rodamco Westfield’s €9bn ‘reset’ plan will affect the company’s capital structure, debt levels, and asset disposals. The announcement also mentions footfall trends in Continental Europe and the UK, which can impact the performance of shopping centers.
Financial Rating Justification: This article is relevant to financial topics as it discusses a major company’s strategic plan to raise capital, reduce expenses, and adjust its balance sheet in response to the COVID-19 pandemic. The retail sector is directly affected by changes in footfall trends, which can impact stock prices of related companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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