Global sales at URW up against 2019, but down in UK
Unibail-Rodamco-Westfield (URW), the owner and operator of shopping centres and airport retail assets, has revealed that global tenant sales in 2022 were above pre-COVID levels. However, its UK tenants suffered a fall in sales against rates seen in 2019.
In its full year report for its 2022 financial year, URW revealed that tenant sales had reached 103% of 2019 levels, with US sales 8% higher, and European sales on par.
Rent collection was also back to 2019 rates, at 99% in the UK.
However, the group saw also a fall in the valuation of its assets by 4.1% in 2022, from €54.5bn to €52.2bn (c. £46.2bn). URW says this is due to the disposal of assets worth €1.8bn as well as a recent portfolio reevaluation chipping off further €1.3bn.
UK sales were down against pre-Pandemic rates, at 96% against 2019, while footfall was 11% lower.
Despite this, net rental income in UK shopping centres saw an increase on a like-for-like basis of 21.4%, which URW said was benefitted by lower rent relief and higher sales based rent.
URW operates two shopping centres in the UK, Westfield London and Westfield Stratford City.
On balance, positive international results left URW feeling optimistic. Jean-Marie Tritant, chief executive officer, said the results confirmed “the end of any COVID effect” on business.
He added: “Tenant sales and rent collection returned to pre-pandemic levels and we delivered consistent improvement in operating metrics across all regions.”
“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”, Tritan concluded.