URW’s UK rents rise 21% as ‘Covid effect’ ends

Unibail-Rodamco-Westfield boosted its UK net rental income by 21.4% in 2022. Across the portfolio, NRI rose by 29% to €2.2bn (£1.95bn) as rent collection rose to pre-pandemic levels. In the UK, rent collection now stands at 99%. Chief executive Jean-Marie Tritant said the results confirmed “the end of any Covid effect on our business”. The gross market value of the group’s assets decreased by 4.1% to €52.2bn from €54.5bn at the end of 2021. This was partly as a result of €1.8bn of disposals in Europe and the US and a like-for-like portfolio revaluation of -2.7%, which sliced off €1.3bn. This was partly offset by capex, acquisitions and transfers of €900m and positive foreign exchange movements of €400m. Like-for-like, the value of the shopping centres fell by 2.6% in 2022, including a fall of 2.3% in H2. Tritant said: “Tenant sales and rent collection returned to pre-pandemic levels and we delivered consistent improvement in operating metrics across all regions.” Tenant sales were at 102% of 2019’s performance across the portfolio for H2. Tritant said disposals in the US and Europe were continuing and the group was on track to deliver its “2024 and beyond” strategy, which seeks to maximise asset value by unlocking new development opportunities, “with a focus on urban regeneration and environmental transition projects”. In 2023, URW plans to deliver Coppermaker Square Retail, a leisure development adjacent to Westfield Stratford City, E20, having completed the first residential phase last year. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo by Dinendra Haria/Shutterstock