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Investing.com -- Unibail-Rodamco-Westfield (URW) has revealed its primary objectives for 2028, resulting in a 2% increase in its share prices.
The company’s plans include a net rental income (NRI) growth of 2.6-3.3% above indexation, which is expected to result in a 2.7% average like-for-like (LFL) growth including indexation.
The company also aims to achieve an annual EBITDA growth of 5.6-6.6% between 2025 and 2028. This includes a rise in Westfield Rise media revenues to as much as €180m, which is a 56% increase compared to 2024. New licensing revenues are also expected to reach between €25-35m.
URW plans for capital expenditure (capex) of approximately €600m per annum over 2026-2028, with minimal future capex requirements. Any additional capital needs, including investment and development activities, will be funded through capital recycling. The Group has identified up to €2bn of non-core assets for this purpose.
The company aims to reduce its net debt to EBITDA ratio to 8 times by 2028, compared to 9.5 times in 2024. It also plans to reach approximately 40% IFRS loan to value (LTV), including hybrids, by 2028, a decrease from 45.5% in 2024. URW anticipates achieving this 40% LTV without the need for further disposals if valuations increase by 1% per year over the plan horizon.
Asset disposals of €2.2bn are planned between 2025 and 2026. The company also confirms its 2025 earnings per share (EPS) guidance of €9.3-9.5. It expects the adjusted recurring earnings per share (AREPS) to be at least €9.15 in 2026 and between €9.7-10.1 in 2028.
Finally, URW plans to distribute €4.5 in dividends per share (DPS) in 2025. Cumulative shareholder distributions between 2025 and 2028 are expected to reach €3.1bn. The company also plans a payout ratio of 60% for 2026 and a normalized payout ratio of 60-70% from 2027.
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