URW sees slowdown in US fashion, but tenant sales are up

Retail giant Unibail-Rodamco-Westfield (URW) posted upbeat financials for the first half of 2023, as it welcomed an overall net rental income growth of 1.1 percent, bringing it to 1,152 million euros.

While the group’s EBITDA also rose 1.6 percent to 1,157 million euros, its recurring net result increased 6.5 percent to 757 million euros.

Shopping centres saw a particularly notable like-for-like growth for net rental income of 8.5 percent over the period, with a 12.5 percent increase in Continental Europe, 9.4 percent rise in the UK and 1.4 percent increase in the US.

The group was also upbeat about its tenant sales for H1, which were up 9.2 percent compared to the year prior, while footfall also rose 7.3 percent.

European tenant sales increased by 10.9 percent above core inflation of 5.7 percent, which URW said demonstrated its ongoing path to gain market share.

Meanwhile, US flagship tenant sales were up 4.6 percent, driven largely by performance of experience-led sectors.

However, fashion sales saw a slight decrease of 2 percent in the region, with luxury also taking a 6.8 percent hit. URW did note that both segments remained above 2019 levels.

Rent collection amounted to 96 percent both in the US and Europe, however bankruptcies increased to 211 stores, which URW said had returned to a normalised level as government support and rent relief during the pandemic came to an end.