Unibail-Rodamco-Westfield (ASX:URW) Announces Q1 2025 Trading Update
Operational Performance
Unibail-Rodamco-Westfield reported robust operating performance in Q1 2025, with €100.4 million of MGR signed, reflecting a 7.9% uplift on indexed passing rents. Tenant sales increased by 2.1% and footfall rose by 0.4%, despite unfavourable calendar effects. The successful opening of Westfield Hamburg-Überseequartier on April 8 attracted over one million visits in the first two weeks.
Financial Highlights
The company completed or secured €1.0 billion in disposal transactions in 2025 and maintained a strong liquidity position with €13.2 billion available. The hybrid portfolio was successfully re-couponed downward and downsized, ensuring refinancing needs are secured for over 36 months. Unibail-Rodamco-Westfield confirmed its 2025 Adjusted Recurring Earnings per Share (AREPS) guidance of €9.30 to €9.50.
Capital Allocation
In addition to asset disposals, the company expanded Westfield Rise to the US, launching the Immersive Experiential Display Network across 10 US Flagship assets. This strategic move aims to enhance consumer engagement through brand partnerships and retail media.
Executive Comments
Chief Executive Officer Jean-Marie Tritant stated, “Our operating performance in Q1 was robust, with sales and footfall both up despite unfavourable calendar effects. We delivered strong leasing activity, with MGR signed up almost 8% on top of passing rents. Westfield Hamburg-Überseequartier, our newest Flagship asset, successfully opened to the public on April 8 and has already attracted over one million visits. We have also expanded Westfield Rise to the US to generate more revenues through our in-house retail media and experiential division. Since the start of 2025, we have completed or secured €1 billion of disposals, including €0.7 billion of retail assets in line with latest book values. We have also successfully re-couponed and downsized our hybrid portfolio. All this activity, combined with our EUR/USD hedging position and sensitivity analysis taking into account the current macro-economic environment give us the confidence to confirm our full year earnings guidance for 2025 of €9.30 to €9.50 per share. Thanks to our unrivalled portfolio of the best assets in the best locations and our highly diversified tenant base, we are confident in the resilience, growth potential, and long-term trajectory of our business. We look forward to sharing our plans in more detail at our Investor Day on May 14.”
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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