Earnings call transcript: URW Q2 2025 shows steady growth, strategic focus

Unibail Rodamco Westfield (URW), with a market capitalization of $14.1 billion, reported its Q2 2025 earnings, highlighting steady growth in net rental income and improved financial metrics. According to InvestingPro analysis, the company appears undervalued based on its Fair Value model, while maintaining a "GREAT" overall Financial Health score. The company opened Westfield Hamburg and expanded its retail media agency, indicating a strategic focus on innovation and expansion. Despite a slight decline in adjusted recurring earnings per share (AREPS), URW remains confident in its full-year guidance.

Key Takeaways

• Net rental income increased by 3.6% year-on-year.
• AREPS slightly declined by 0.6% to €5.11 per share.
• Vacancy rates decreased to 4.9% at the group level.
• URW opened Westfield Hamburg and expanded its retail media agency to the U.S.
• The company targets €2.2 billion in disposals by early 2026.

Company Performance

URW demonstrated robust performance in Q2 2025 with a 3.6% increase in net rental income and a 4.1% rise in like-for-like EBITDA. The company’s impressive 13.84% revenue growth and strong Piotroski Score of 7 reflect its solid financial foundation. The company’s strategic initiatives, including the opening of Westfield Hamburg and the expansion of its retail media agency, underscore its commitment to growth and innovation. The reduction in vacancy rates and strong tenant sales growth, particularly in the U.S., further highlight URW’s operational strength. For deeper insights into URW’s financial health and growth prospects, InvestingPro subscribers can access exclusive analysis and over 30 additional key metrics.

Financial Highlights

• Adjusted recurring earnings per share (AREPS): €5.11, down 0.6% year-on-year.
• Net rental income: Up 3.6% year-on-year.
• Like-for-like EBITDA: Increased by 4.1%.
• Net debt to EBITDA ratio: Improved to 9.2x from 9.5x in 2024.
• Loan to Value (LTV) ratio: Reduced by 80 basis points to 44.7%.

Outlook & Guidance

URW maintains a positive outlook, expecting full-year AREPS to be at the upper end of the €9.3-€9.5 range. The company offers an attractive dividend yield of 4.19% and maintains a healthy current ratio of 1.38. The company is targeting €2.2 billion in disposals by early 2026 and proposes a €4.50 per share distribution for 2025. Looking further ahead, URW aims for a cumulative €3.1 billion shareholder distribution by 2028. InvestingPro subscribers can access the comprehensive Pro Research Report for detailed analysis of URW’s financial position and growth trajectory.

Executive Commentary

Jean Marie Triton, CEO of URW, expressed confidence in the company’s trajectory, stating, "Our H1 results demonstrate our strong start to the year." He emphasized the company’s ability to extract value from its assets and noted a significant change in the group’s risk profile.

Risks and Challenges

• Economic Uncertainty: Potential macroeconomic pressures could impact consumer spending and tenant demand.
• Geopolitical Risks: Changes in international trade policies, particularly U.S. tariffs, may affect operations.
• Market Saturation: Increased competition in the retail space could pressure margins.
• Interest Rate Fluctuations: Rising interest rates may impact borrowing costs and financial performance.
• Regulatory Changes: New regulations in key markets could affect operational strategies.

By focusing on strategic expansion and operational efficiency, URW aims to navigate these challenges while capitalizing on growth opportunities in the retail real estate market. The company’s year-to-date return of 29.16% and attractive Price-to-Book ratio of 0.69 suggest strong market performance and potential value opportunity. Discover more exclusive insights and detailed analysis with a subscription to InvestingPro, including access to comprehensive financial metrics, Fair Value models, and expert research reports.

Full transcript - WFD Unibail Rodamco NV (URW) Q2 2025:

Conference Operator: Good morning. This is the conference operator. Welcome, and thank you for joining the Unibail Rodamco Westfield twenty twenty five Half Year Results Conference Call. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions.

At this time, I would like to turn the conference over to Mr. Jean Marie Triton, Chief Executive Officer. Please go ahead, sir.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Good morning, and welcome to Unibail Rodamco Westfield’s twenty twenty five Half Year Results Presentation. Our H1 results demonstrate our strong start to the year and are fully aligned with our Platform for Growth business plan to drive organic growth, sustainable value creation and strong shareholder returns. Sales, footfall and leasing activity in the first half are all in line with expectations and we continue to outperform the wider market. In H1, we successfully delivered the retail opening of Westfield Hamburg, Ubers et Quartier and handed over the project’s first office space. We also further developed our new revenue platforms by expanding our Westfed Wise retail media agency to our U.

S. Business and launching a licensing business to generate asset light, high margin revenues while driving the international expansion of the Westfed brand. With the stabilization of yields, we are now capturing the positive impact of our rented growth in our valuations, leading to a plus 1.2% portfolio revaluation, including a slight increase in the value of our US portfolio for the first time since the Westfield acquisition. On disposals, we have now completed or secured 1,600,000,000.0 have another €900,000,000 under active discussion and are on track to deliver our planned €2,200,000,000 in disposals by early twenty twenty six. We also continue to proactively capture the right windows of opportunity when it comes to refinancing.

In H1, this meant the reopening and downsizing of our hybrid and the successful refinancing of two US assets at very attractive terms. As a result of this strong H1 performance and our confidence in that continued performance in H2, we expect full year ERETs to be at the upper end of our guidance range. Illustrating this strong performance, group like for like NRI is up 3.6% year on year. Like for like EBITDA is up 4.1%, which also reflects a reduction in general expenses. Our net debt to EBITDA ratio, including hybrids, stands at 9.2 times, down from 9.5 times at the 2024.

Increasing valuations driven by the performance of our assets, combined with disposals, have contributed to an 80 basis points reduction in our loan to value ratio including hybrid. With the two deals announced this morning, which I will come back to later, the loan to value will decrease by an additional 40 basis points. Let’s take a closer look at the operating performance of our shopping centers. Bootfall is up across all our regions, leading to tenant sales growth of 3.1% in Europe and 5.7% in The US, well ahead of blended national sales indices and outperforming core inflation. Our leasing activity led to a 60 basis points reduction in vacancy in H1, further strengthening our commercial tension, visible through a high proportion of long term deals and a healthy 7.1% NGR uplift on top of indexation, consistent with the uplift levels we saw last year.

Our OCR remained stable on the back of positive sales evolution, giving us confidence in our ability to continue to capture reversionary going forward. As well, we have not seen any impact of US tariffs on our leasing negotiations and do not expect this to change in H2 based on how retailers are adjusting to meet these challenges and even capitalizing on opportunities such as currency effects and the suspension of de minimis import tax exemptions. Our Platform for Growth business plan includes growth at our Westfield Wise retail media agency and new asset light high margin revenues through licensing. In H1, we expanded Westfield Wise to include our U. S.

Retail media business, which will allow us to capitalize on the transcontinental platform for advertisers in both Europe and The U. S. We have secured 60% of our 2025 budget through H1 activity, out of which €40,000,000 is net income for the period. This is down slightly from H1 twenty twenty four when we benefited from the early impact of the surge in demand and increased pricing during the Paris Olympics. On the licensing side, we announced a strategic and franchising agreement with SenaMi Centers, the leading owner of shopping malls in The Kingdom Of Saudi Arabia.

TENOMY will brand up to eight of its flagship centers as Westfield, with the first three completed by H2 twenty twenty six in the cities of Daman, Jeddah and Riyadh. There is strong potential in this business and we will build on our first partnership to reach our target of a €25,000,000 to €35,000,000 EBITDA contribution by 2028. Moving now to the delivery of our committed pipeline. It has been three months since the successful retail opening of Westfield Hamburg U. S.

E. Croixier and we are seeing strong commercial momentum. The center has welcomed close to 4,000,000 visits so far and based on retailer feedback, their stores are exceeding sales targets. The cruise terminal is now fully operational with ships docking weekly and the first teams from Shell Germany have moved into their new HQ. We continue to work on the delivery of the additional office and hotel spaces and are actively managing the completion of the projects to remain within the €2,500,000,000 total investment cost.

H2, will also see the final delivery of the Copper Makers Square residential project and the opening of the Sandhurm Cernimos extension, now over 90 pre let, which will bring the Westfield brand an upgraded offer to these assets. Based on our current projects and the deliveries plan, the development pipeline will be €1,100,000,000 by year end. We have now successfully completed €1,000,000,000 in disposals, including a 15 stake in Westfield Forum des Ales in Paris, aligned with the latest unaffected book value two regional retail assets disposals, in line with the latest blended unaffected book value and an 80% stake in Trinity Tower setting a positive benchmark for the Paris La Defense office market at a slight discount versus the H1 twenty twenty four unaffected book value. In addition, we have announced today two secure transactions subject to customary conditions precedent for these types of deals: first, the sale of the nine fifty seven key Pullman Pari Manparnas hotel to three institutional investors for above €300,000,000 This is the first large scale hotel transaction in Paris since 2019. And we have entered into an agreement to sell our URW airports business to ASUR, Mexico’s first privatized airport group, for US295 million dollars This deal represents ASUR’s strategic expansion into The US airport retail concessions market.

These two secured transactions account for around €600,000,000 and should complete in H2 twenty twenty five. With another €900,000,000 of disposals under active discussions, we are well on track to achieve our target of €2,200,000,000 of disposals by early twenty twenty six. With our Better Places plan, we have made great progress in delivering our roadmap, progress which has been recognized within our industry and beyond. I am very happy to share that Time Magazine has again named us one of the 100 most sustainable companies in the world, this year ranking us as the number one real estate company worldwide. Corporate Knights has also increased our ranking naming URW now the eleventh most sustainable company in Europe and number one in the real estate sector.

I’m also pleased to share that we have made this progress against our targets while trending below the CapEx needs forecasted as a part of our plan. Our CSRD report was published in March and obviously our sustainability and IR teams are always available to share further details and answer your questions. Now let me hand it over to Fabrice to go into more details on our strong financial performance before coming back for some closing remarks.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Thank you Jean Marie and good morning everyone. Our H1 results confirmed the positive dynamic seen in 2024 even against the backdrop of an uncertain macroeconomic environment. Tenant sales continued to increase above both core inflation and national sales indices supported by footfall growth And we even saw an acceleration in Q2 compared to Q1 for both sales and footfall. Retailers demand for our flagship destinations remained strong with solid leasing activity in H1 twenty twenty five. In H1 we also made significant progress in our disposal program with €1,600,000,000 of disposals completed or secured, leading to a further net debt reduction and the ongoing improvement of the group’s credit metrics.

This disposal progress is in line with our Platform for Growth plan presented in May with another €900,000,000 of disposals under active discussions. Let’s look at our key H1 twenty twenty five figures. AREP stands at €5.11 per share, down just 0.6% on H1 twenty twenty four, mainly as a result of the disposals completed in 2024 and H1 twenty twenty five. It was also impacted by the higher number of shares from the CPPIB deal completed in December 2024 when URW issued 3,250,000.00 shares in exchange for an additional 39% stake in URW Germany. H1 performance is supported by EBITDA growth of plus 4.1% on a like for like basis mainly from shopping centers.

H1 twenty twenty five earnings also benefited from the reduction in both financial expenses and the hybrid coupon, which I will comment on later. Here we provide a detailed bridge showing the AREPS evolution year on year. In H1 twenty twenty five, we have delivered a 5.8% underlying growth on last year’s AREPS, rebased for disposals net of financial expenses, the Olympics and the impact of the CPPI DDL. This is slightly above the underlying growth that we announced in our guidance for 2025. This mainly derives from retail NRI growth contributing plus €0.26 from the like for like performance.

Like Financial expenses had a positive contribution of €04 from successful refinancing and FX hedging. The hybrid had another €05 positive impact from the liability management exercise completed in April. The minus €07 in the other category is mainly due to taxes and depreciation. Let’s look now more closely at QRW’s retail performance on a like for like basis. These figures are now reported based on the new Organization for Shopping Center activity which is split in four regions.

This structure focuses and simplifies management while achieving cost and productivity efficiencies. NRI was up 4.1% on a like for like basis including plus 3.5 for Europe and plus 6.3% for US flagship assets. The US NRI growth was supported by strong contribution from leasing activity, vacancy reduction and higher sales base rents. Indexation had a plus 1.4% contribution at group level corresponding to a plus 1.8% increase in Europe. Our performance in Europe was supported by leasing activity with a plus 0.8% contribution mainly in Southern And Central Europe.

The remaining plus 1.1% contribution is mainly driven by variable income including commercial partnership and parking, as well as lower doubtful debtors with fewer bankruptcies and strong rent collection. In H1 twenty twenty five we saw a further decrease in the number of stores impacted by bankruptcies amounting to just 86 units compared to 123 last year. This represents 0.9 of the total units compared to 1.2% in h one twenty twenty four. 76% of the units impacted by bankruptcy saw the tenant still in place or replaced, limiting their impact on the group’s vacancy. This reflects the increased quality of the group’s tenant base and the positive sales performance achieved at URW centers.

Moving now to vacancy which stands at 4.9% at group level. This is down from 5.5% last year and 6.3% the year before, showing the positive reduction trend in vacancy since COVID. It is in line with the level achieved at year end 2024 of 4.8% which was the lowest level since the Westfield acquisition. Vacancy in Europe was 3.6% flat compared to December 2024 and down from 4% last year. US flagship vacancy was 6.3%, in line with December 2024 and down from 7.4% in June, reflecting retailers’ appetite for URW’s high performing assets.

Leasing activity remains strong with $2.00 €2,000,000 of MGR signed in H1 twenty twenty five. This level is lower than last year due to lower vacancy and lower bankruptcies to address. Excluding vacant units and bankruptcies, MGR signed amounted to €180,000,000 in line with H1 twenty twenty four. And we also saw a slight increase in the proportion of long term leases to 80% with a stronger increase in The US. Rental uplift continued to be healthy, standing at 7.1% on top of indexation and 8% before indexation.

This is in line with the 7.3% rental uplift achieved in H1 twenty twenty four. H1 performance continued to be supported by the uplift on long term deals of plus 13.1% before indexation, including plus 8% in Europe and plus 27.6% in The US. Looking more closely at rent per square meters signed in h one twenty twenty five, they showed an increase of 16% in Europe and 10% in The US compared to h one twenty twenty four, demonstrating the increasing focus on higher value deals. Moving on now to offices. So NRI for offices amounted to €40,000,000 in H1 twenty twenty five, a 20% reduction compared to last year, mainly due to the disposals of gate offices in h two twenty twenty four and of an 80% stake in Trinity in h one twenty twenty five.

2025 NRI was supported by the full letting of Lightwell delivered last year and therefore not included in the like for like performance. As a consequence, the like for like perimeter for offices is limited. Its growth was plus 1.9%, mainly driven by France at plus 6.8%. NOI for the C and E activities stood at €90,000,000 a 17% decrease compared to last year due to seasonality and the early positive impact of the Paris Olympics seen in H1 twenty twenty four. On a like for like basis, I.

E. Excluding triennial shows, the Olympics and scope changes, NOI was almost flat compared to 2024 and plus 27% compared to 2023, the last comparable year, thanks to lower energy costs and a full recovery of the activity. Bookings and pre bookings stand at 95% of the expected rental revenues planned for the year. Our H1 twenty twenty five performance was also supported by a 7% decrease in our general expenses as part of wider cost savings initiatives launched in 2024. This is on top of the 10% decrease already achieved in full year 2024.

General expenses as a percentage of NRI decreased from 8.6% in H1 twenty twenty four to 8% in H1 twenty twenty five demonstrating the gains in efficiency achieved. These gains reflect our simplified organization structure, stringent procurement policy and ongoing process automation. The Group’s GMV as at June 2025 amounted to €48,800,000,000 a 1.8% decrease compared to last year. This is mainly due to a minus €1,200,000,000 FX impact resulting from the weakening of the US dollar versus the euro over the period. GMV was also impacted by disposals achieved in H1 twenty twenty five for minus €800,000,000 partly compensated by CapEx of €600,000,000 spent over the period.

Excluding FX, CapEx and disposals, valuations were up €600,000,000 corresponding to a 1.2% increase for the portfolio valuations. This increase supports the 1% annual growth of values we shared at our investor day. And as Jean Marie mentioned, this is the first positive revaluation of the whole portfolio since 2018. Net reinstatement values stood at 138.8 per share at the June 2025, a 3.5% decrease compared to year end. This evolution is mainly due to FX impact of minus €3.77 per share and mark to market of financial instruments and hybrid with a minus €2.58 per share impact.

This was partly offset by the ARES contribution of €5.11 per share and NAV saw a positive contribution from asset revaluation of €2 per share. Net reinstatement value also takes into account the increased distribution of €3.5 per share paid in May. Moving now to shopping center portfolio valuations. Like for like retail valuation was up 1.1% in H1 twenty twenty five driven by a positive rent impact of plus 0.7% and plus 0.4% from yield impact. This positive rent impact reflects the strong operating performance achieved in H1 twenty twenty five both in Europe and in The US.

Overall, yield impact which had been negative in previous years saw a stabilization in The US and a slight improvement in Europe. Like for like valuations were up 1.3% in Europe, slightly above revaluations in H1 and H2 twenty twenty four of plus 0.80.7% respectively. Valuations were up in The US for the first time since the Westfield acquisition at plus 0.3% reflecting a positive rent impact and stable yields. Regarding US flagship assets, the GMV increase was plus 0.9% fully coming from a rent impact. The net initial yield for European assets as at June 2025 stands at 5.4 in line with previous years.

The net initial yield for US flagship assets as at June 2025 stands at 5.1% in line with 2024 and thirty basis points above 2023. The stabilized yields for US flagship assets based on rents assumed by appraisers in year three stands at 5.8%, a 10 basis points increase compared to last year. These yields reflect the growth potential embedded in our US assets. The NRI growth assumed by appraisers for The US flagship asset stands at 4.1 and as explained this is based on cash flow growth including the contractual rent and CAM escalation of 3% on average. This means that three quarters of the growth assumed by appraisers comes from current leases in place.

At group level, the growth of 3.7% assumed by appraisers on our retail portfolio is below the NRI growth potential of these assets as presented within our Platform for Growth plan. Moving now to development. The key event in H1 twenty twenty five was the successful delivery of the retail component of Wessel Hamburg reaching almost 4,000,000 visits since its opening in April, as well as the first office handover to Shell Germany. Following these deliveries, the total investment cost of URW’s development pipeline decreased from €3,500,000,000 to €1,900,000,000 including €1,300,000,000 of committed projects and €600,000,000 in the control category. The pipeline includes the addition of the KNIT1 office refurbishment at Paris La Defense for plus €100,000,000 As outlined by Jean Marie, h two will be active in terms of deliveries with Westfield Hamburg offices and the Ibis Hotel, the last phase of Copermeker Square and the Chernimos extension.

DERP reletting stands at 85% excluding residential. Following these deliveries, URW’s pipeline is expected to go down further to circa €1,100,000,000 at year end twenty twenty five. This is consistent with the CapEx plan presented during the investor day. Net debt has further reduced in H1 twenty twenty five from twenty one point nine to €21,200,000,000 on an IFRS basis including hybrid. The €1,000,000,000 disposals completed in H1 had a positive impact of 130 basis points on the LTV.

The €700,000,000 in recurring cash flow generated in H1 were partly offset by the €600,000,000 in CapEx and acquisition over the period. Net debt was impacted by the €500,000,000 cash distribution paid in H1 which had a negative impact of 105 basis points on the LTV. Net debt decreased by €400,000,000 as a result of the weakening of the US dollar, which also impacted the GMV as we saw earlier, leading to an overall negative impact of 20 basis points from FX on the LTV. Last, portfolio valuation had a positive impact of 60 basis points on the LTV. In total, our IFRS LTV including hybrid stood at 44.7%, down 80 basis points compared to December 2024.

The group has also secured an additional €600,000,000 of disposals to date and taking into account these disposals and the payout settlement, the IFRS net debt including hybrid would stand at €20,700,000,000 on a pro form a basis and as a consequence the LTV would decrease further to 44.3%. The net debt to EBITDA ratio further improved to 9.2 times in H1 twenty twenty five down from 9.5 times in 2024. This is consistent with the trend presented at our Investor Day at a nine times level anticipated in 2026. This results from the net debt reduction I’ve just mentioned and it also includes a slight decrease in EBITDA year on year of minus 1.1% due to the mechanical effect of disposals partly offset by a plus 4.1% increase on a like for like basis. This ratio does not take into consideration the additional €600,000,000 of disposals secured nor the full year impact on the NRI side from project deliveries in 2025.

Cost of debt for H1 twenty twenty five amounted to 1.9% in line with H1 twenty twenty four and slightly below the 2% in full year 2024. This includes the benefit of part of the refinancing completed to date and the hedges in place in 2025 to cover both rates and currency exposure. Cost of debt is expected to increase for the full year due to the maturity of debt with a low coupon over the period, lower cash amount and decreasing cash remuneration. This will be partly offset by the impact of CMBS refinancing completed in March and July 2025 for 1,200,000,000.0 US dollars. In total, the cost of debt is in line with the trajectory presented during the Investor Day of a 20 to 30 basis points increase per year.

Let’s look at those refinancing in a bit more detail. We refinanced 1,200,000,000.0 US dollars of CMBS, successfully managing to both extend the maturity and secure improved conditions with an annual saving of around 190 basis points compared to conditions in place before. This included the refinancing of Roseville for $275,000,000 and Centricity for $925,000,000. Centricity financing was the tightest spread for AAA tranche since 2019 and the tightest coupon on a CMBS over the last five years for a single asset. In parallel, URW also refinanced part of its hybrid stack seizing an attractive window ahead of The US tariffs announcement.

The group repaid €995,000,000 of hybrid with a coupon of 7.25% and issued a new €815,000,000 hybrid with a coupon of 4.875%. The remaining €180,000,000 was paid using the group’s available cash. This supported the group’s AREPS with a reduction in the hybrid coupon of €7,000,000 in h one twenty twenty five. These transactions illustrate the group’s access to funding at attractive conditions and our ability to seize market opportunities. The group’s IFRS cash position decreased from €5,300,000,000 to €3,300,000,000 during H1 twenty twenty five.

This results from the use of unavailable cash to repay maturing debt and part of our hybrid stack. This is consistent with the group’s approach to reduce its cash position as remuneration conditions in Europe deteriorated with a decrease in ECB rates, as placement conditions in The US were impacted by the weakening of the US dollar, and as we have progressed on our deleveraging program. The undrawn credit facilities stood at 8,700,000,000 as at June 2025. In total, the group’s available liquidity amounts to €12,000,000,000 and would cover the group’s debt maturities for the next three years even assuming no new debt refinancing and no further disposals completed. This gives us time to access the debt market when we see fit and to continue deleveraging in an efficient and orderly manner consistent with our plan.

With that, let me hand back to Jean Marie for some closing remarks.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Thank you, Fabrice. Before we start the Q and A, a quick comment on our 2025 guidance. We expect full year AREPS to be at the upper end of the €9.3 to €9.5 range. This is based on our strong H1 performance and our confidence in that continued performance in H2, combined with our successful reopening and downsizing of the hybrid, our refinancing achievements with $1,200,000,000 of U. S.

Secured debt and the progress and timing of disposals. We also confirm that we will propose a 4.5 per share distribution for fiscal year twenty twenty five, representing a circa 30 increase on the 2024 distribution, as part of the planned cumulative distribution of at least €3,100,000,000 for fiscal years 2025 to 2028 announced as part of our Platform for Growth business plan. As usual, this guidance assumes no major deterioration of the macroeconomic and geopolitical environment. With that, let’s open the line for questions.

Conference Operator: Thank you. This is the conference operator. We will now begin the question and answer session. The first question is from Florent Laroquique, Vouvert, ODDO BHF. Please go ahead.

Florent Laroquique, Analyst, ODDO BHF: Good morning, Jean Marie. Good morning, Fabrice. So thank you very much for this presentation. So I would have two questions. The first one on your low point to be reached in 2026.

So we understand that you have you expect now maybe now absent 2025 at the upper end of your guidance. But at the Capital Market Day, you told us that you expect at your AWEPS in 2026 of at least EUR 9.15. So as you change a little bit your estimate for that, so are you able to raise it a little bit? This is my first question. And my second question, so could you give us please more colors on your evolution of your OCR levels and potential wins uplift for next renewal of leases?

Thank you very much.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Yes. So on the guidance for ’26, we don’t change and we have not changed our guidance for ’26, so we remain at the €915,000,000 it comes to the OCR, as I said, they remain stable. Globally, for Europe, we are at 15.8% versus 15.6% last year for the same period. And in The US, it’s 11.8% around versus 11.7% for our US flagship. So that’s where we stand today.

So pretty stable OCR’s, while we have been able to increase the rent and the spread, but this has been compensated more than compensated by the sales evolution. So it gives us really a ample room to be able to continue to capture our NGR uplift going forward. And just to I think that Fabrice shared it, but globally, if you just look at the long term leases, we have been able to capture 11.6 in H1 this year. Last year, it was 11.7%, so aligned as well with last year. So pretty confident on the trend.

Florent Laroquique, Analyst, ODDO BHF: Okay. Thank you very much.

Conference Operator: The next question is from Jonathan Kownator, Goldman Sachs. Please go ahead.

Jonathan Kownator, Analyst, Goldman Sachs: Good morning. So first of all, one question on the guidance. You’re now at the upper end. How much of that is really driven by the operating performance part? And any impact of the timing of disposals on that?

And about the FX impact, obviously, I understand there’s no impact on 2025 given the hedging. But how much are you expecting that to impact the 2026 guidance? And I understand you’re not moving that one. So interesting in understanding if actually the f the impact of FX overall. And and as a corollary to that, do you need to do more disposals than now that your LTV is perhaps a bit higher, than you expected?

Thanks.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: So hi everyone and thank you Jonathan. So first on the guidance, all in all there was a slightly positive impact coming from some delayed disposals which was compensated by the higher volume of disposals that we expect to complete in 2025. So basically all in all, slightly positive or slightly contributing, but not to a major extent. So the main two differences that expand this improved guidance are connected to the financial expenses and in particular what we’ve been able to do on the FX side and the refinancing that we’ve completed and as well the hybrid refinancing and the downsizing and recouping, which was of course uncertain at the beginning of the year when we when we made the guidance and now that we’ve been able to refinance those at very attractive conditions, this supports the increased guidance. So the two main elements really reflect are coming from this from the financial expenses and the hybrid.

When it comes to operating performance, again, it remains strong and in line with what we expected to achieve. That’s the first question. So the second on the FX, so you see that for 2026 we’ve already mentioned that the FX impact would be 16¢ in total compared to between ’26 and ’25. This was based on an FX of 1.14, so an FX between euro and dollar of 1.14. So, I mean, at its peak, it was something like 1.17, and this would correspond to approximately 5¢.

So you see no major difference. And, of course, this is highly dependent on on evolution. And, you know, between June 30 when the euro dollar was at point one seventeen and today when it’s 1.144. So basically you see that this evolves quite dramatically. So all in all, this will not impact the guidance and this is why Jean Marie confirmed this this level of 2026 of at least €9.15 per share.

Jonathan Kownator, Analyst, Goldman Sachs: Okay. And on disposals, any plan to reduce the disposals due to the effects or or not really?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: If you look at the overall effects impact, it’s quite limited. It’s it’s it’s 20¢. And on the contrary, you see also a positive impact on the on the revaluation, which was 60 basis points and which is already 1.2% in half year compared to percent annual evolution on a full year basis.

Remyk Martines, Analyst, Kempen: Okay. Thank you.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: And by the way, just as a reminder, and that’s an important element, again, when we communicated on the LTV, we already had assumed a €1.14 FX level. So basically, if you stand at 1.17, this is less than 10 basis points impact. So here we are showing this 20 basis points, which is due to the evolution between last year and December 31, June 30, so 20¢, but this is less than half of that when you have to make the devolution between one fourteen, which was the assumption that we had during the Investor Day and the 01/17 that we had a few days ago. And and, again, today, we stand at 1.14. And so, basically, this would be spot on, with the level that we had assumed for the for the LTV in our in our, the in guidance that we gave during the Investor Day.

Jonathan Kownator, Analyst, Goldman Sachs: Okay. Very clear. Thank you.

Conference Operator: The next question is from Remyk Martines, Kempen. Please go ahead.

Remyk Martines, Analyst, Kempen: Good morning all. Thank you for taking my questions. Maybe as a follow-up on that, you’re indeed, already on track for the disposal target, and we’re only mid twenty 5, another 900,000,000, in talks. Does that mean that maybe you’re already seriously exploring opportunities? Are there also active discussions on the investment side at this stage?

And secondly, is there an update on the further rollout of the licensing business as there are also quite serious targets set for that business as well? Thank you.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: So we are on the first question first part of the question, we are really focused on the densification of our assets. We’re really focused much more than looking at acquisitions. We’re focused on where we can create more value from the assets, which we have just added to the control pipeline, the restoration of our KNET office space that has been vacated by SNCF. So this is where the focus is. And obviously, on some densification projects that we have in The U.

S, in particular, Gardenstead Plaza and Old Orchard. So that’s where refocused our, I would say, allocation. Doesn’t mean that we won’t be open to opportunities, but that’s not a major axis for us, as we shared during the Investor Day May 14. On the licensing business, so we have set up the team with cinema center. We are working actively with them to prepare the first branding of assets that will happen in the course of 2026, mainly H2 twenty twenty six, which would be Damman, which is an existing center.

Then you will have Jeddah, that is the Nahid project in Jeddah that is under development and predicting and then Riyadh. So that’s really the focus. And we need to set up this first free, and then we are preparing the development plan of these activities such as, as I said in my presentation, that very confident in our ability to have an EBITDA contribution in between 25,000,000 and €35,000,000 by 2028.

Amal Aboukwatam, Analyst, Degroof: Okay, thank you.

Conference Operator: The next question is from Pierre Emmanuel Couillard, Jefferies. Please go ahead.

Pierre Emmanuel Couillard, Analyst, Jefferies: Yes, Good morning. So two questions on my side. Just to come back on the leverage, can you remind us how much CapEx you plan to spend in H2? Because if I’m doing a quick calculation, you will have at least EUR600 million of cash due to disposals and another EUR700 million of cash due to your recurring cash flow. You already paid the dividend.

Should we consider that your net debt will be at least down by EUR1 billion in H2? H2? Is there something I’m missing here? The second one is on disposals, the EUR 900,000,000 additional disposals under discussions. Are the EUR 500,000,000.0 of U.

S. Regional centers included in this envelope or not? And if not, what is the strategic plan for these centers going forward?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: To come back to your question on CapEx, so we had a target of which we announced during the Investor Day of EUR 1,100,000,000.0 of CapEx in over the full year. So basically, we’ve already spent EUR 500,000,000 when it comes to CapEx at group share. So basically, there’s another 600 to 700 to be spent in H2. And this should be covered by the recurring results. And so this means that in front of that, all the deleverage will be coming from the disposals that we’ll be able to achieve in H2.

And as you said, in fact, very rightly, the H1 loan to value has been impacted by the distribution in one go of €500,000,000 which had a negative impact of 105 basis points, which will not happen in each.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: And when it comes to the €900,000,000 active discussions on disposals of our non core assets and activities, There are some of these regional assets that are included in these active discussions, but it’s not the entirety of the portfolio. And going forward, again, we as we have always said over the last five years, we are not a distressed seller. We are not forced to sell. I think we have done the job now. The remaining regional assets are really good assets.

So there is no pressure to do it at any price, so we take the time. Meanwhile, we continue activity to do the right leasing activity on these assets and then prepare them for the time when they would be ready for sale.

Pierre Emmanuel Couillard, Analyst, Jefferies: Okay. That’s clear. And maybe a quick follow-up on your operations. How can you explain that the sales based rent had a negative contribution in Southern Europe, especially in light of the robustness of Spain? Is there anything that we should have in mind in France or in Spain?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: It was mainly the settlement of the SBR of the previous year that explains this difference. So basically, settlement was low in this year compared to the one that we had last year. Okay. Thank you very much.

Conference Operator: The next question is from Paul May, Barclays. Please go ahead.

Paul May, Analyst, Barclays: Hi, guys. Specific one on Hamburg. Just wondered if there’s been any change in the total CapEx on the remaining elements of that, so the office side and so on, whether that’s changed over the first half? And then perhaps second question, which is a different one after that.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: For Western Hamburg, as I said during the presentation, we remain within the tick of EUR 2,500,000,000.0. We have delivered, as I said as well, the headquarters to Shell Germany. We have improved the preletting of the D1 And D2 Tower that are the Sky Siegel and Louvain Leh Towers. So we are now at close to 80% prelet, and we are working on the delivery of the handover of the high vis, and then the remaining parts would be delivered in ’26. So it’s moving according to plan.

Paul May, Analyst, Barclays: Okay. Thank you. Just wondering if you give any further color. Apologies if I missed some of it through presentation. Lots of things today.

Just on the airport’s disposal, obviously, I think we’ve seen a price of $295 coming in from the buyer, $2.95 for the EV. I think the full year valuation, which included the Westfield trademark, not sure how much that’s worth, was at $429,000,000 Just wondering if you give any color on the yield or the debt that’s attached to that so we can get a sense of pricing versus previous book values.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: There is limited debt attached to that business. It was really a concession based, so it’s asset light. So these are fees, so it’s really the management of the commercial part of the terminal. So it was a terminal commercial manager. This is exactly the terminology that we use.

So there’s very limited CapEx and then accordingly debt attached to that business. Then afterwards, I will leave it to Fabrice to explain that this has a positive effect nevertheless on the liability side.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Yes. So obviously, we won’t comment on the valuation and how it compares with the current transaction. Still, as Jean Marie said, in addition to the valuations that was of the portfolio of the airport, There was on top of that €314,000,000 of financial leases in our books corresponding to this concession, so to the discounting of the debt or the amounts due to the airport authorities. And so this will come on top of the deleveraging. So basically, the balance sheet will be reduced by €340,000,000 coming from the financial leases on top of the proceeds that will be generated of the $295,000,000 that was deal on the airport activity.

Paul May, Analyst, Barclays: Okay. Will you still separately comment about the Westfield trademark being separated from the flagship? So, I mean, eventually, we’ll we’ll get the value of that just or will that now drop off in terms of the disclosure?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: I think on the trademark, I mean, it was part of the flagship asset because it’s highly connected to the flagship asset. So I think that’s the way to do that. And the main difference that happened in H1 versus last year is that on top of the trademark connected to the standing assets of QRW, you had an additional component coming from the Cyname deal and the new licensing business that we’ve been able to develop. And as we said, this is part of the non like for like revaluation. Apart comes from this valuation of this new licensing business.

Paul May, Analyst, Barclays: Perfect. Sorry. And just one other one, apologies. Any other geographies you’re looking at on the licensing side? I mean, there any possibility, you know, in the in North America, sort of within Canada, US, or further into into sort of The UAE or outside of Saudi?

Thank you.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: On the licensing business, I would say, as you know, for the coming months, we are really focused on setting the partnership on the right tracks with SeneMe Centre while preparing, obviously, the expansion. Middle East is definitely part of the regions that we look at. And then afterwards, we may look at other opportunities. And I think that Ansofi said that Northern America was something that we could look at. But really, the focus for the coming months is on setting up the partnership with Cinemis Center, branding the first three assets, getting this fully successful.

Paul May, Analyst, Barclays: Perfect. Thank you.

Conference Operator: The next question is from Frederic Renard, Kepler Cheuvreux. Three

Frederic Renard, Analyst, Kepler Cheuvreux: very quick questions. Maybe one, first, on your expected vacancy by Yahrain in your shopping center. Can you give a bit more color on when you expect it to land? Two, you did a very nice deal last year with CPPIB in Germany. And of course, you have several partnership with them also in The U.

S. Of course, your LTV is still very high. But how would you look at the fact that if CPPB would be available to dispose some of their assets, how would you look at it in The U. S? And then the last question would be on your dividend outlook from 26% to 28 Can you reaffirm a bit what you see in the CMD as it seems that the market is not really fully aligned with what you communicated?

How comfortable are you on delivering on the dividend target? Thank you.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: I think, Frederic, we we didn’t get fully, you know, the first part of the question. So there are On the first

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: one?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: I got the CPPIB and the and the dividend. But

Frederic Renard, Analyst, Kepler Cheuvreux: Okay. Well, the

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: first one was what was the question?

Frederic Renard, Analyst, Kepler Cheuvreux: Sorry. Yes, was just on your expected vacancy by year end in your shopping center. How do you assess it? And can you give it can you give us some cost?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: So Thank we stand at 4.9% in H2 in H1, sorry, after Q1 that went up to 5.5% as far as I remember. So we’re done, and then you see that we have a trend that is going down as well, trending down from the last year level for H1. So we are pretty confident that we’d be below the 4.8% or close to but below the 4.8% at the end of the year. At one point, you start to reach a level of vacancy that should stabilize. We are at 3.6% in Europe.

We have remaining, I think, leeway in The U. S. And in particular on the flagships, Delaware at 7.4% in H1 last year. That’s reached 6.3% this year for H1. So I think we still have room for decreasing that, but that’s 20% of the global business.

So at the end the day, you will see stabilization of our vacancy level. But we are confident in the fact that it would be slightly lower than the 4.8% that we reached in 2024. That was the lowest point since 2017. On the CPPIB deal and what are very good partners of us in The U. S.

We worked a lot on some regional assets together that we disposed. We worked as well on the restoration and extension of Topanga that has been a great success for us on the former Sears box. So if there would be no discussions we have with CPP, we would consider it obviously on assets that we know perfectly. But I would say that nothing particular to add to that at that stage. And then on the dividend, as I think I said it even in the wrap up of this presentation, we are we will propose, we said we’ll intend to propose during the H1 during the Investor Day, we intend to propose a 4 point euros 5 distribution for the fiscal year 2025, and we now say we will propose.

It’s not an intention, so we will propose. And this is part of the 3,100,000,000.0 at least 3,100,000,000.0 distributions and that are or shareholder return that we plan to have by 2028, for the fiscal year twenty twenty five to fiscal year twenty twenty eight, so we’re confident in our ability to achieve that. And again, I think that this H1 set of the set of results that we share with you on the H1 is really the demonstration that we have the foundation, the strong foundations, that we have totally changed the risk profile of the group, that we have also the development of the organic growth, the potential to continue to develop new revenues and also to extract value from the assets we own.

Pierre Emmanuel Couillard, Analyst, Jefferies: Perfect. Thank you.

Conference Operator: The next question is from Neela Green at JPMorgan. Please go ahead.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield0: Hi, good morning. Thank you for taking my question. Just one, How are you thinking about the potential for share buybacks at this point, please? You’re making very good progress on disposals, values arising at a rate better than what you underwrite in the guidance of LTV, and your shares are offering a kind of double digit earnings yield. So any thoughts on potential share buybacks, please?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Yes. This is something that we’ve touched upon during the Investor Days. And what we said is that, first, we intend to deleverage the company in particular by selling €2,200,000,000 of assets, meaning that the €2,200,000,000 will be dedicated to deleveraging, allowing us to get to the 40% loan to value target that we have and any extra disposal that would come on the €2,200,000,000 would be dedicated to capital recycling and or share buyback. And so basically on that front, we still need first to complete the deleveraging to complete the €2,200,000,000 And once this is done, any additional disposal could be dedicated to a potential share buyback.

And as we said during the Investor Day, this is something that we will consider on the back of the different alternatives available to us to use the cash that would come from the the proceeds that would come from disposals.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Thank you.

Conference Operator: The next question is from Rahul Kaushal, Green Street. Please go ahead.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield1: Hi. Thank you for taking my question. My first question is on disposals. Which countries do you see as most active in terms of discussions? And do you see the bidding tents getting busier in the second half versus last year?

And then my second question is on like for like NRI growth, the 4.1%. Do you expect that to continue into the second half? And or what would it take to kind of see a stronger acceleration in the second half? What could drive that? And maybe which countries in particular?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: On the disposals, you know, I think, you know, we have been very active in all in all regions you’ve seen just with what we announced, you know, with the two secured deals that we did we announced, you know, yesterday or tonight. One is in The U. S, the other one is in Europe or in France. We have ongoing discussions everywhere, as we have always had, by the way, is that we’re really focused on we have earmarked a number of assets for which we prepare the data room and all the information memorandums, and we are ready to seize opportunities when we see them. So it’s really not really clearly one area that we are focused on, but it’s some the assets.

And when we see that we have the potential to dispose at the right price, then we seize this opportunity. So that’s really the way we do it. And then on the like for like NRI, so I think, again, when you look at the as I said previously, when you look at the performance in terms of uplift, the sales evolution, we are confident in our ability to continue to have leasing positive spread. Indexation could be a little bit lower, but then it gives more room for capturing the reversionary potential. So confident in our ability to continue to reach this two seventy to 300 a little bit more than 300 basis points above indexation, which we have been able to achieve over the last ten years.

We reached two sixty bps, so we will continue to do that. So aligned with what we shared during the Investor Day to be in between this two seventy to three thirty basis points of organic growth.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield1: Okay, very clear. Thank you.

Conference Operator: And the last question is from Amal Aboukwatam, Degroof. Please go ahead.

Amal Aboukwatam, Analyst, Degroof: Yes. Good morning. Thank you for taking my questions. I have two questions. The first one would be on the Triangle power project.

Do you have any update on the pre letting and anything new since the Capital Market Day?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: On the timing of project, we are so we as I think we are we we shared, we we started really to prepare to do the pre marketing of the of the tour of the project after the Olympic Games and restarted at the beginning of this year. So we have somewhat it’s an active market, but we have nothing particular to announce on the pre rating, but the fact that we have, obviously, the hotel that is leased to Radisson Blu, the fact that we signed as well with the S. A. Green for the top floors of the assets to have the summit that you may know from the Van Der Beek Building. So we have the summit as well, this immersive experience with incredible views on Paris that is leased.

And for the rights, very confident in our ability to start the predicting. But as usual, when you look at the experience that we had on the office side and for high rise buildings, we’ve reached I think we started Trinity with almost no prelating and we have been able to lease it fully at 100%. Lightwell was pre let. Amadjunga was 25% pre let, so very confident. When I see the level of the number of visits that we have, the level of activity that we have around this asset, very confident for the leasing process.

Amal Aboukwatam, Analyst, Degroof: Okay, okay. Good to hear. My second question would be on the tax impact from the new regulation in The U. S. Have you had a look at it and have an idea of how it will impact on mature business revenue US revenues?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: You you mean the tariffs?

Amal Aboukwatam, Analyst, Degroof: Yeah. Not the not the excess taxation for non US investor.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Alright. The section eight eight nine nine, which, you know, was an issue at the time now, it has it it it has been pulled out of the of the of the of the of the law. So, basically, it’s not, anymore not applicable. It has never been applicable, but it’s not, it’s not on the card anymore.

Amal Aboukwatam, Analyst, Degroof: It’s for sure now. Okay. Okay, very clear. Thank you very much.

Conference Operator: Gentlemen, there are no more questions registered. I turn the conference back to you for any closing remarks.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Thank you, everyone, and hoping that you will have some rest during the summer the summer break and and talk to you soon during the during the one on ones and the road shows. Bye bye. Thank you. Bye bye.

Conference Operator: Thank you for joining the Unibail Rodamco Westfield Half Year Results Presentation. The conference is now over, and you may disconnect your telephones.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Good morning, and welcome to Unibail Rodamco Westfield’s twenty twenty five Half Year Results Presentation. Our H1 results demonstrate our strong start to the year and are fully aligned with our Platform for Growth business plan to drive organic growth, sustainable value creation and strong shareholder returns. Sales, footfall and leasing activity in the first half are all in line with expectations and we continue to outperform the wider market. In H1, we successfully delivered the retail opening of Westfield Hamburg Ubers EcoTier and handed over the project’s first office space. We also further developed our new revenue platforms by expanding our Westfed Wise retail media agency to our U.

S. Business and launching a licensing business to generate asset light, high margin revenues while driving the international expansion of the Westfed brand. With the stabilization of yields, we are now capturing the positive impact of our rental growth in our valuations, leading to a plus 1.2% portfolio revaluation, including a slight increase in the value of our U. S. Portfolio for the first time since the Westfield acquisition.

On disposals, we have now completed or secured €1,600,000,000 have another €900,000,000 under active discussion and are on track to deliver our planned €2,200,000,000 in disposals by early twenty twenty six. We also continue to proactively capture the right windows of opportunity when it comes to refinancing. In H1, this meant the reopening and downsizing of our hybrid and the successful refinancing of two US assets at very attractive terms. As a result of this strong H1 performance and our confidence in that continued performance in H2, we expect full year AREPS to be at the upper end of our guidance range. Illustrating this strong performance, Group like for like NRI is up 3.6% year on year.

Like for like EBITDA is up 4.1%, which also reflects a reduction in general expenses. Our net debt to EBITDA ratio including hybrids stands at 9.2 times, down from 9.5 times at the 2024. Increasing valuations driven by the performance of our assets, combined with disposals, have contributed to an 80 basis points reduction in our loan to value ratio including hybrid. With the two deals announced this morning, which I will come back to later, the loan to value will decrease by an additional 40 basis points. Let’s take a closer look at the operating performance of our shopping centers.

Bootfall is up across all our regions, leading to tenant sales growth of 3.1% in Europe and 5.7% in The US, well ahead of blended national sales indices and outperforming core inflation. Our leasing activity led to a 60 basis points reduction in vacancy in H1, further strengthening our commercial tension, visible through a high proportion of long term deals and a healthy 7.1% NGR uplift on top of indexation, consistent with the uplift levels we saw last year. Our OCR’s remained stable on the back of positive sales evolution, giving us confidence in our ability to continue to capture reversionary going forward. As well, we have not seen any impact of US tariffs on our leasing negotiations and do not expect this to change in H2 based on how retailers are adjusting to meet these challenges and even capitalizing on opportunities such as currency effects and the suspension of de minimis import tax exemptions. Our Platform for Growth business plan includes growth at our Westfield Wise retail media agency and new asset light high margin revenues through licensing.

In H1, we expanded Westfield Wise to include our US retail media business, which will allow us to capitalize on the transcontinental platform for advertisers in both Europe and The US. We have secured 60% of our 2025 budget through H1 activity, out of which €40,000,000 is net income for the period. This is down slightly from H1 twenty twenty four when we benefited from the early impact of the surge in demand and increased pricing during the Paris Olympics. On the licensing side, we announced a strategic and franchising agreement with SenaMi Centers, the leading owner of shopping malls in The Kingdom Of Saudi Arabia. Tenomie will run up to eight of its flagship centers as Westfield, with the first three completed by H2 twenty twenty six in the cities of Daman, Jeddah and Riyadh.

There is strong potential in this business and we will build on our first partnership to reach our target of a €25,000,000 to €35,000,000 EBITDA contribution by 2028. Moving now to the delivery of our committed pipeline. It has been three months since the successful retail opening of Westfield Hamburg Ubers de Quartier and we are seeing strong commercial momentum. The center has welcomed close to 4,000,000 visits so far and based on retailer feedback, their stores are exceeding sales targets. The cruise terminal is now fully operational with ships docking weekly and the first teams from Shell Germany have moved into their new headquarters.

We continue to work on the delivery of the additional office and hotel spaces and are actively managing the completion of the projects to remain within the €2,500,000,000 total investment cost. H2 will also see the final delivery of the Copper Makers Square residential project and the opening of the Sandhurm Cernimos extension, now over 90 pre let, which will bring the Westfield brand an upgraded offer to these assets. Based on our current projects and the deliveries plan, the development pipeline will be €1,100,000,000 by year end. We have now successfully completed €1,000,000,000 in disposals, including a 15 stake in Westfield Forum des Arles in Paris, aligned with the latest unaffected book value two regional retail assets disposals, in line with the latest blended unaffected book value and an 80% stake in Trinity Tower setting a positive benchmark for the Paris La Defense office market at a slight discount versus the H1 twenty twenty four unaffected book value. In addition, we have announced today two secure transactions subject to customary conditions precedent for these types of deals: first, the sale of the nine fifty seven key Poul Manpari Manparnas hotel to three institutional investors for above €300,000,000 This is the first large scale hotel transaction in Paris since 2019.

And we have entered into an agreement to sell our URW airports business to ASUR, Mexico’s first privatized airport group, for US295 million dollars This deal represents ASUR’s strategic expansion into The US airport retail concessions market. These two secured transactions account for around €600,000,000 and should complete in H2 twenty twenty five. With another €900,000,000 of disposals under active discussions, we are well on track to achieve our target of €2,200,000,000 of disposals by early twenty twenty six. With our Better Places plan, we have made great progress in delivering our roadmap, progress which has been recognized within our industry and beyond. I am very happy to share that Time Magazine has again named us one of the 100 most sustainable companies in the world, this year ranking us as the number one real estate company worldwide.

Corporate Knights has also increased our ranking naming URW now the eleventh most sustainable company in Europe and number one in the real estate sector. I’m also pleased to share that we have made this progress against our targets while trending below the CapEx needs forecasted as a part of our plan. Our CSRD report was published in March and obviously our sustainability and IR teams are always available to share further details and answer your questions. Now let me hand it over to Fabrice to go into more details on our strong financial performance before coming back for some closing remarks.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Thank you Jean Marie and good morning everyone. Our H1 results confirmed a positive dynamic seen in 2024 even against the backdrop of an uncertain macroeconomic environment. Tenant sales continued to increase above both core inflation and national sales indices supported by footfall growth. And we even saw an acceleration in Q2 compared to Q1 for both sales and footfall. Retailers demand for our flagship destinations remained strong with solid leasing activity in H1 twenty twenty five.

In H1 we also made significant progress in our disposal program with €1,600,000,000 of disposals completed or secured, leading to a further net debt reduction and the ongoing improvement of the group’s credit metrics. This disposal progress is in line with our Platform for Growth plan presented in May with another €900,000,000 of disposals under active discussions. Let’s look at our key H1 twenty twenty five figures. AREP stands at €5.11 per share, down just 0.6% on H1 twenty twenty four, mainly as a result of the disposals completed in 2024 and H1 twenty twenty five. It was also impacted by the higher number of shares from the CPPIB deal completed in December 2024 when URW issued 3,250,000.00 shares in exchange for an additional 39% stake in URW Germany.

H1 performance is supported by EBITDA growth of plus 4.1% on a like for like basis mainly from shopping centers. H1 twenty twenty five earnings also benefited from the reduction in both financial expenses and the hybrid coupon which I will comment on later. Here we provide a detailed bridge showing the AREPS evolution year on year. In H1 twenty twenty five, we have delivered a 5.8% underlying growth on last year’s AREPS rebates for disposals net of financial expenses, the Olympics and the impact of the CPPI BDL. This is slightly above the underlying growth that we announced in our guidance for 2025.

This mainly derives from retail NRI growth contributing plus €0.26 primarily from the like for like performance. Financial expenses had a positive contribution of €0.04 from successful refinancing and FX hedging. The hybrid had another 5¢ positive impact from the liability management exercise completed in April. The minus 7¢ in the other category is mainly due to taxes and depreciation. Let’s look now more closely at GRW’s retail performance on a like for like basis.

These figures are now reported based on the new Organization for Shopping Centre activity which is split in four regions. This structure focuses and simplifies management while achieving cost and productivity efficiencies. NRI was up 4.1% on a like for like basis including plus 3.5 for Europe and plus 6.3% for US flagship assets. The US NRI growth was supported by strong contribution from leasing activity, vacancy reduction and higher sales base rents. Indexation had a plus 1.4% contribution at group level corresponding to a plus 1.8 increase in Europe.

Our performance in Europe was supported by leasing activity with a plus 0.8% contribution mainly in Southern And Central Europe. The remaining plus 1.1% contribution is mainly driven by variable income including commercial partnership and parking, as well as lower doubtful debtors with fewer bankruptcies and strong rent collection. In H1 twenty twenty five we saw a further decrease in the number of stores impacted by bankruptcies amounting to just 86 units compared to 123 last year. This represents 0.9% of the total units compared to 1.2% in H1 twenty twenty four. 76% of the units impacted by bankruptcy saw the tenants still in place or replaced, limiting their impact on the group’s vacancy.

This reflects the increased quality of the group’s tenant base and the positive sales performance achieved at URW centers. Moving now to vacancy which stands at 4.9% at group level. This is down from 5.5% last year and 6.3% the year before, showing the positive reduction trend in vacancy since COVID. It is in line with the level achieved at year end 2024 of 4.8%, which was the lowest level since the Westfield acquisition. Vacancy in Europe was 3.6% flat compared to December 2024 and down from 4% last year.

US flagship vacancy was 6.3% in line with December 2024 and down from 7.4% in June reflecting retailers’ appetite for URW’s high performing assets. Leasing activity remains strong with $2.00 €2,000,000 of MGR signed in H1 twenty twenty five. This level is lower than last year due to lower vacancy and lower bankruptcies to address. Excluding vacant units and bankruptcies, MGR signed amounted to 180,000,000 in line with H1 twenty twenty four. And we also saw a slight increase in the proportion of long term leases to 80% with a stronger increase in The US.

Rental uplift continued to be healthy, standing at 7.1% on top of indexation and 8% before indexation. This is in line with the 7.3% rental uplift achieved in H1 twenty twenty four. H1 performance continued to be supported by the uplift on long term deals of plus 13.1% before indexation, including plus 8% in Europe and plus 27.6% in The US. Looking more closely at rents per square meters signed in H1 twenty twenty five, they showed an increase of 16% in Europe and 10% in The US compared to H1 twenty twenty four, demonstrating the increasing focus on higher value deals. Moving on now to offices.

So NRI for offices amounted to €40,000,000 in H1 twenty twenty five, a 20% reduction compared to last year, mainly due to the disposals of Getty offices in H2 twenty twenty four and of an 80% stake in Trinity in H1 twenty twenty five. 2025 NRI was supported by the full letting of Lightwell delivered last year and therefore not included in the like for like performance. As a consequence, the like for like perimeter for offices is limited. Its growth was plus 1.9% mainly driven by France at plus 6.8%. NOI for the C and E activities stood at €90,000,000 a 17% decrease compared to last year due to seasonality and the early positive impact of the Paris Olympics seen in H1 twenty twenty four.

On a like for like basis, I. E. Excluding triennial shows, the Olympics and scope changes, NOI was almost flat compared to 2024 and plus 27% compared to 2023, the last comparable year, thanks to lower energy costs and a full recovery of the activity. Bookings and pre bookings stand at 95% of the expected rental revenues planned for the year. Our H1 twenty twenty five performance was also supported by a 7% decrease in our general expenses as part of wider cost savings initiatives launched in 2024.

This is on top of the 10% decrease already achieved in full year 2024. General expenses as a percentage of NRI decreased from 8.6% in H1 twenty twenty four to 8% in H1 twenty twenty five, demonstrating the gains in efficiency achieved. These gains reflect our simplified organization structure, stringent procurement policy and ongoing process automation. The group’s GMV as at June 2025 amounted to €48,800,000,000 a 1.8% decrease compared to last year. This is mainly due to a minus €1,200,000,000 FX impact resulting from the weakening of the US dollar versus the euro over the period.

GMV was also impacted by disposals achieved in H1 twenty twenty five for minus €800,000,000 partly compensated by CapEx of €600,000,000 spent over the period. Excluding FX, CapEx and disposals, valuations were up €600,000,000 corresponding to a 1.2% increase for the portfolio valuations. This increase supports the 1% annual growth of values we shared at our Investor Day. And as Jean Marie mentioned, this is the first positive revaluation of the whole portfolio since 2018. Net reinstatement value stood at €138.80 per share at the June 2025, a 3.5% decrease compared to year end.

This evolution is mainly due to FX impact of minus €3.77 per share and mark to market of financial instruments and hybrid with a minus 2.58 per share impact. This was partly offset by the ARES contribution of €5.11 per share and NAV saw a positive contribution from asset revaluation of €2 per share. Net reinstatement value also takes into account the increased distribution of 3.5 per share paid in May. Moving now to shopping center portfolio valuations. Like for like retail valuation was up 1.1% in H1 twenty twenty five driven by a positive rent impact of plus 0.7% and plus 0.4% from yield impact.

This positive rent impact reflects the strong operating performance achieved in H1 twenty twenty five both in Europe and in The US. Overall, yield impact, which had been negative in previous years, saw a stabilization in The US and a slight improvement in Europe. Like for like valuations were up 1.3% in Europe, slightly above revaluations in H1 and H2 twenty twenty four of plus 0.80.7% respectively. Valuations were up in The US for the first time since the Westfield acquisition at plus 0.3% reflecting a positive rent impact and stable yields. Regarding US flagship assets, the GMV increase was plus 0.9%, fully coming from a rent impact.

The net initial yield for European assets as at June 2025 stands at 5.4% in line with previous years. The net initial yield for US flagship assets as at June 2025 stands at 5.1% in line with 2024 and thirty basis points above 2023. The stabilized yields for US flagship assets based on rents assumed by appraisers in year three stands at 5.8%, a 10 basis points increase compared to last year. These yields reflect the growth potential embedded in our US assets. The NRI growth assumed by appraisers for The US flagship asset stands at 4.1% and as explained this is based on cash flow growth including the contractual rent and CAM escalation of 3% on average.

This means that three quarters of the growth assumed by appraisers comes from current leases in place. At group level, the growth of 3.7% assumed by appraisers on our retail portfolio is below the NRI growth potential of these assets as presented within our Platform for Growth plan. Moving now to development. The key event in H1 twenty twenty five was the successful delivery of the retail component of Wessel Hamburg reaching almost 4,000,000 visits since its opening in April, as well as the first office handover to Shell Germany. Following these deliveries, the total investment cost of URW’s development pipeline decreased from 3.5 to €1,900,000,000 including 1,300,000,000.0 of committed projects and 600,000,000.0 in the control category.

The pipeline includes the addition of the Kinet 1 office refurbishment at Paris La Defense for plus €100,000,000 outlined by Jean Marie, h two will be active in terms of deliveries with Westfield Hamburg offices and the Ibis Hotel, the last phase of Copermeker Square, and the Chernimos extension. DERP reletting stands at 85% excluding residential. Following these deliveries, URW’s pipeline is expected to go down further to circa €1,100,000,000 at year end 2025. This is consistent with the CapEx plan presented during the investor Day. Net debt has further reduced in H1 twenty twenty five from €21,900,000,000 to €21,200,000,000 on an IFRS basis including hybrid.

The €1,000,000,000 disposals completed in H1 had a positive impact of 130 basis points on the LTV. The 700,000,000 in recurring cash flow generated in H1 were partly offset by the €600,000,000 in CapEx and acquisition over the period. Net debt was impacted by the €500,000,000 cash distribution paid in H1, which had a negative impact of 105 basis points on the LTV. Net debt decreased by €400,000,000 as a result of the weakening of the US dollar, which also impacted the GMV as we saw earlier, leading to an overall negative impact of 20 basis points from FX on the LTV. Last, portfolio valuation had a positive impact of 60 basis points on the LTV.

In total, our IFRS LTV including hybrid stood at 44.7%, down 80 basis points compared to December 2024. The group has also secured an additional 600,000,000 of disposals to date and taking into account these disposals and the payout settlement, the IFRS net debt including hybrid would stand at €20,700,000,000 on a pro form a basis and as a consequence the LTV would decrease further to 44.3. The net debt to EBITDA ratio further improved to 9.2 times in H1 twenty twenty five down from 9.5 times in 2024. This is consistent with the trend presented at our Investor Day at a nine times level anticipated in 2026. This results from the net debt reduction I’ve just mentioned and it also includes a slight decrease in EBITDA year on year of minus 1.1% due to the mechanical effect of disposals partly offset by a plus 4.1% increase on a like for like basis.

This ratio does not take into consideration the additional €600,000,000 of disposals secured nor the full year impact on the NRI side from project deliveries in 2025. Cost of debt for H1 twenty twenty five amounted to 1.9% in line with H1 twenty twenty four and slightly below the 2% in full year 2024. This includes the benefit of part of the refinancing completed to date and the hedges in place in 2025 to cover both rates and currency exposure. Cost of debt is expected to increase for the full year due to the maturity of debt with a low coupon over the period, lower cash amount and decreasing cash remuneration. This will be partly offset by the impact of CMBS refinancing completed in March and July 2025 for 1,200,000,000.0 US dollars.

In total, the cost of debt is in line with the trajectory presented during the Investor Day of a 20 to 30 basis points increase per year. Let’s look at those refinancing in a bit more detail. We refinanced 1,200,000,000.0 US dollars of CMBS, successfully managing to both extend the maturity and secure improved conditions with an annual saving of around 190 basis points compared to conditions in place before. This included the refinancing of Roseville for $275,000,000 and Century City for $925,000,000 Century City financing was the tightest spread for AAA tranche since 2019 and the tightest coupon on a CMBS over the last five years for a single asset. In parallel, URW also refinanced part of its hybrid stack seizing an attractive window ahead of The US tariffs announcement.

The group repaid €995,000,000 of hybrid with a coupon of 7.25% and issued a new €815,000,000 hybrid with a coupon of 4.875%. The remaining €180,000,000 was paid using the group’s available cash. This supported the group’s AREPS with a reduction in the hybrid coupon of €7,000,000 in h one twenty twenty five. These transactions illustrate the group’s access to funding at attractive conditions and our ability to seize market opportunities. The group’s IFRS cash position decreased from €5,300,000,000 to €3,300,000,000 during H1 twenty twenty five.

This results from the use of unavailable cash to repay maturing debt and part of our hybrid stack. This is consistent with the group’s approach to reduce its cash position as remuneration conditions in Europe deteriorated with a decrease in ECB rates, as placement conditions in The US were impacted by the weakening of the US dollar, and as we have progressed on our deleveraging program. The undrawn credit facilities stood at €8,700,000,000 as at June 2025. In total, the group’s available liquidity amounts to €12,000,000,000 and would cover the group’s debt maturities for the next three years even assuming no new debt refinancing and no further disposals completed. This gives us time to access the debt market when we see fit and to continue deleveraging in an efficient and orderly manner consistent with our plan.

With that, let me hand back to Jean Marie for some closing remarks. Thank you, Fabrice.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Before we start the Q and A, a quick comment on our 2025 guidance. We expect full year AREPS to be at the upper end of the €9.3 to €9.5 range. This is based on our strong H1 performance and our confidence in that continued performance in H2, combined with our successful reopening and downsizing of the hybrid, our refinancing achievements with $1,200,000,000 of U. S. Secured debt and the progress and timing of disposals.

We also confirm that we will propose a 4 0.5 per share distribution for fiscal year twenty twenty five, representing a circa 30% increase on the 2024 distribution, as part of the planned cumulative distribution of at least €3,100,000,000 for fiscal years 2025 to 2028 announced as part of our Platform for Growth business plan. As usual, this guidance assumes no major deterioration of the macroeconomic and geopolitical environment. With that, let’s open the line for questions.

Conference Operator: Thank you. This is the conference operator. We will now begin the question and answer session. The first question is from Florent Ladocic, Vouvert, ODHF. Please go ahead.

Florent Laroquique, Analyst, ODDO BHF: Good morning, Jean Marie. Good morning, Fabrice. So thank you very much for this presentation. So I would have two questions. The first one on your low point to be reached in 2026.

So we understand that you have you expect now maybe now it’s in 2025 at the upper end of your guidance. But at the Capital Market Day, you told us that you expect at your IOPS in 2026 of at least EUR 9.15. So as you change a little bit your estimate for that, so are you able to raise it a little bit? This is my first question. And my second question, so could you give us please more colors on your evolution of your OCR levels and potential wins uplift for next renewal of leases?

Thank you very much.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Yes. So on the guidance for ’26, we don’t change, and we have not changed our guidance for ’26, so we remain at the 09/15. When it comes to the OCR, as I said, they remain stable. Globally, for Europe, we are at 15.8% versus 15.6% last year for the same period. And in The US, it’s 11.8% around versus 11.7% for our US flagship.

So that’s where we stand today, so pretty stable OCR’s where we have been able to increase rent and the spread, but this has been compensated more than compensated by the sales evolution. So it gives us really a ample room to be able to continue to capture our NGR uplift going forward. And just to I think that Fabrice shared it, but globally, if you just look at the long term leases, we have been able to capture 11.6% in H1 this year. Last year, it was 11.7, so aligned as well with last year. So pretty confident on the trend.

Florent Laroquique, Analyst, ODDO BHF: Okay. Thank you very much.

Conference Operator: The next question is from Jonathan Kownator, Goldman Sachs. Please go ahead.

Jonathan Kownator, Analyst, Goldman Sachs: Good morning. So first of all, one question on the guidance. You’re now at the upper end. How much of that is really driven by the operating performance part? And any impact of the timing of disposals on that?

And about the FX impact, obviously, I understand there’s no impact on 2025 given the hedging. But how much are you expecting that to impact the 2026 guidance? And I understand you’re not moving that one. So interesting in understanding if actually the impact of FX overall. And and as a corollary to that, do you need to do more disposals than now that your LTV is perhaps a bit higher, than your expected?

Thanks.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: So, hi, everyone, and and thank you, Jonathan.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: So

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: first on the guidance, all in all there was a slightly positive impact coming from some delayed disposals which was compensated by the higher volume of disposals that we expect to complete in 2025. So basically all in all, slightly positive or slightly contributing but not to a major extent. So the main two differences that expand this improved guidance are connected to the financial expenses and in particular what we’ve been able to do on the FX side and the refinancing that we’ve completed and as well the hybrid refinancing and the downsizing and recouping, which was of course uncertain at the beginning of the year when we launched when we made the guidance and now that we’ve been able to refinance those at very attractive conditions, this supports the increased guidance. So the two main elements really reflect are coming from the financial expenses and the hybrid. When it comes to operating performance, again, it remains strong and in line with what we expected to achieve.

That’s the first question. So the second on the FX, so you see that for 2026, we’ve already mentioned that the FX impact would be €0.16 in total compared to between 26 and €25 This was based on an FX of 1.14, so an FX between euro and dollar of 1.14. So, I mean, at its peak, was something like 1.17, and this would correspond to approximately, 5¢. So you see no major difference. And of course, this is highly dependent on on evolution.

And between June 30 when the euro dollar was at $1.01 7 and today when it’s at 1.144. So basically, see that this this evolves quite quite dramatically. So all in all, this does this will not impact the the guidance, and this is why Jean Marie confirmed this this level of 2026 of at least 9.15 per share.

Jonathan Kownator, Analyst, Goldman Sachs: Okay. And on disposals, any plan to reduce the disposals due to the effects or or not really?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: You look at the overall FX impact, it’s quite limited. It’s €0.20 And on the contrary, you see also a positive impact on the revaluation, which was 60 basis points and which is already 1.2% in half year compared to 1% annual evolution on full year basis.

Remyk Martines, Analyst, Kempen: Okay, thank you.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: And by the way just as a reminder and that’s an important element, again when we communicated on the LTV, we already had assumed a €1.14 FX level. So basically, if you stand at 1.17, this is less than 10 basis points impact. So here we are showing this 20 basis points, which is due to the evolution between last year and 30, June 30, so 20¢, but this is less than half of that when you have to make the devolution between one fourteen, which was the assumption that we had during the Investor Day and the one seventeen that we had a few days ago. And and again today, we stand at 1.14. And so, basically, this would be spot on, with the level that we had assumed for the for the LTV in our in our, the in guidance that we gave during the Investor Day.

Jonathan Kownator, Analyst, Goldman Sachs: Okay. Very clear. Thank you.

Conference Operator: The next question is from Frederic Martines, Kempen. Please go ahead.

Remyk Martines, Analyst, Kempen: Good morning all. Thank you for taking my questions. Maybe as a follow-up on that, you’re indeed, already on track for the disposal targets, and we’re only mid 25, another 900,000,000, in talks. Does that mean that maybe you’re already seriously exploring opportunities? Are there also active discussions on the investment side at this stage?

And secondly, is there an update on the further rollout of the licensing business as there are also quite serious targets set for that business as well? Thank you.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: So we are on the first question first part of the question, we are really focused on the densification of our assets. So we’re really focused much more on looking at acquisitions, really focused on where we can create more value from the assets, which we have just added to the control pipeline, the restoration of our clean office space that has been vacated by SNCF. So this is where the focus is. And obviously, on some densification projects that we have in The U. S, in particular, Gardenstead Plaza and Old Orchard.

So that’s where we focus our, I would say, capital allocation. Doesn’t mean that we won’t be open to opportunities, but that’s not a major axis for us, as we shared during the Investor Day in May 14. On the licensing business, so we have set up the team with Cinema Centre. We are working actively with them to prepare the first branding of assets that will happen in the course of 2026, mainly H2 twenty twenty six, which would be Damman, which is an existing center. Then you will have Jeddah, that is the Nahid project in Jeddah that is under development and predicting and then Riyadh.

So that’s really the focus. And we need to set up this first free, and then we are preparing the development plan of these activities, such as, as I said in my presentation, that very confident in our ability to have an EBITDA contribution in between 25,000,035 million euros by 2028.

Conference Operator: Okay. Thank you. The next question is from Pierre Emmanuel Clouard, Jefferies. Please go ahead.

Pierre Emmanuel Couillard, Analyst, Jefferies: Yes. Good morning. So two questions on my side. Just to come back on the leverage, can you remind us how much CapEx you plan to spend in H2? Because if I’m doing a quick calculation, you will have at least EUR 600,000,000 of cash due to disposals and another EUR 700,000,000 of cash due to recurring cash flow.

You already paid the dividend. Should we consider that your net debt will be at least down by EUR 1,000,000,000 in H2? Is there something I’m missing here? The second one is on disposals, the EUR 900,000,000 additional disposals under discussions. Are the EUR $05,000,000,000 of U.

S. Regional centers included in this envelope or not? And if not, what is the strategic plan for these centers going forward?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: To come back to your question on CapEx, so we had a target which we announced during the Investor Day of EUR 1,100,000,000.0 of CapEx in over the full year. So basically, we already spent EUR 500,000,000 when it comes to CapEx at group share. So basically there’s another 600 to 700 to be spent in H2. And this should be covered by the recurring results. And so this means that in front of that, all the deleverage will be coming from the disposals that we’ll be able to achieve in H2.

And as you said, in fact, very rightly, the H1 loan to value has been impacted by the distribution in one go of €500,000,000 which had a negative impact of 105 basis points, which will not happen in H2.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: And when it comes to the €900,000,000 active discussions on disposals of our non core assets and activities, There are some of these regional assets that are included in these active discussions, but it’s not the entirety of the portfolio. And going forward, again, we as we have always said over the last five years, we are not a distressed seller. We are not forced to sell. I think we have done the job now. The remaining regional assets are really good assets.

So there is no pressure to do it at any price, so we take the time. Meanwhile, we continue to do the leasing activity to do the right leasing activity on these assets and then prepare them for the time when they would be ready for sale.

Pierre Emmanuel Couillard, Analyst, Jefferies: Okay. That’s clear. And maybe a quick follow-up on your operations. How can you explain that the sales based rent had a negative contribution in Southern Europe, especially in light of the business of Spain? Is there anything that we should have in mind in France or in Spain?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: It was mainly the settlement of the SBR of the previous year that explains this difference. So basically, settlement was low in this year compared to the one that we had last year. Okay. Thank you very much.

Conference Operator: The next question is from Paul May, Barclays. Please go ahead.

Paul May, Analyst, Barclays: Hi, guys. A specific one on Hamburg. Just wondered if there’s been any change in the total CapEx on the remaining elements of that, so the office side and so on, whether that’s changed over the first half? And then I’ve got second question, which is a different one after that.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: For Westfield Hamburg, as I said during the presentation, we remain within the tick of EUR 2,500,000,000.0. We have delivered, as I said as well, the headquarters to Shell Germany. We have improved the preletting of the D1 And D2 Tower that has the Skyzigel and Louvain Leh Towers. So we are now at close to 80% prelet, and we are working on the delivery the handover of the high vis, and then the remaining parts would be delivered in ’26. So it’s moving according to plan.

Paul May, Analyst, Barclays: Okay. Thank you. Just wondering if you could give any further color. Apologies if I missed some bit through presentation. Lots of things today.

Just on the airport’s disposal, obviously, I think we’ve seen a price of $2.95 coming in from the buyer, $295 for the EV. I think the full year valuation, which included the Westfield trademark, not sure how much that’s worth, was at $429,000,000. Just wondering if you could give any color on the yield or the debt that’s attached to that so we can get a sense of pricing versus previous book values.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: There is limited debt attached to that that business. It was really a a concession based, you know, so it’s asset light. So these are fees, so it’s really the management, you know, of the commercial part of the terminal. So it was a terminal commercial manager. This is exactly the terminology that we use.

So there’s very limited CapEx and then accordingly, debt attached to that business. Then afterwards, I will leave it to Fabrice to explain that this has a positive effect nevertheless on the liability side.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Yes. So obviously, we won’t comment on the valuation and how it compares with the current transaction. Still, as Jean Marie said, in addition to the valuations that was of the portfolio of the airport, there was on top of that EUR $314,000,000 of financial leases in our books corresponding to this concession, so to the discounting of the debt or the amounts due to the airport authorities. And so this will come on top of the deleveraging. So basically, the balance sheet will be reduced by €340,000,000 coming from the financial leases on top of the proceeds that will be generated of the $295,000,000 that was deal on the airport activity.

Paul May, Analyst, Barclays: K. Will you still separately comment about the Westfield trademark being separated from the flagship? So, I mean, eventually, we’ll we’ll get the value of that. Just or will or will that now drop off in terms of the disclosure?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: I think on on the trademark, I mean, it’s it was part of the of the flagship asset because it’s highly connected to the flagship asset. So I think that’s the way to do that. And the main difference that happened in H1 versus last year is that on top of the trademark connected to the standing assets of QRW, you had an additional component coming from the Cyname deal and the new licensing business that we’ve been able to develop and as we said this is part of the non like for like revaluation, a part comes from this valuation of this new licensing business.

Paul May, Analyst, Barclays: Perfect. Sorry. And just one other one, apologies. Any other geographies you’re looking at on the licensing side? I mean, there any possibility in North America, sort of within Canada, U.

S. Or further into sort of The UAE or outside of Saudi? Thank you.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: On the licensing business, I would say, for the coming months, we are really focused on setting the partnership on the right tracks with Sesame Center while preparing, obviously, the expansion. Middle East is definitely part of the regions that we look at. And then afterwards, we may look at other opportunities. I think that Ansofi said that, you know, Northern America was something that we could look at. But, really, the focus for the coming months is on setting up, you know, the partnership with Cinema Center, branding the first three assets, getting this, you know, fully successful.

Paul May, Analyst, Barclays: Perfect. Thank you.

Conference Operator: The next question is from Frederic Renard, Kepler Cheuvreux. Please go ahead.

Frederic Renard, Analyst, Kepler Cheuvreux: Hi, good morning. Three very quick question. Maybe one, first on your expected vacancy by Yahrain in your shopping center. Can you give a bit more color on when you expect it to land? Two, you did a very nice deal last year with CPPIB in Germany.

And of course, you have several partnership with them also in The U. S. Of course, your LTV is still very high, but how would you look at the fact that if CPPIB would be available to dispose some of their assets, how would you look at it in The U. S? And then the last question would be on your dividend outlook from 26% to 28 Can you reaffirm a bit what you said in the CMD as it seems that market is not really fully aligned with what you communicated?

How comfortable are you on delivering on the dividend target? Thank you.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: I think, Frederic, we didn’t get fully the first part of the question. There are On the first one? I got the CPP IB and the dividend, but

Frederic Renard, Analyst, Kepler Cheuvreux: Okay. Well, the first one was

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: what was the question?

Frederic Renard, Analyst, Kepler Cheuvreux: Sorry. Yeah. It was just on your your expected vacancy by end in your shopping center. How do you assess it? And can you can you give it can you give us some cost?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: So Thank we are we stand at 4.9% in H2 in H1, sorry, after Q1 that went up to 5.5% as far as I remember. So we’re done. And then you see that we have a trend that is going down as well, trending down from the last year level for H1. So we are pretty confident that we’d be below the 4.8% or close to below the 4.8% at the end of the year. At one point, you start to reach a level of vacancy that should stabilize.

We are at 3.6% in Europe. We have remaining, I think, leeway in the

Conference Operator: flagships, Delaware at 7.4%

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: U. In H1 last year. That’s reached 6.3% this year for H1. So I think we still have room for decreasing that, but that’s 20% of the global business. So at the end of the day, you will see stabilization of our vacancy level.

But we are confident in the fact that it would be slightly lower than the 4.8% that we reached in 2024. That was the lowest point since 2017. On the CPPIB deal and what they are they are very good partners of us in The U. S. We worked a lot on some regional assets together that we disposed.

We worked as well on the restoration and extension of Topanga that has been a great success for us on the former Sears box. So if there would be no discussions we have with CPP, we will consider it obviously on assets that we know perfectly. But I would say that nothing particular to add to that that stage. And then on the dividend, as I think I said it even in the wrap up of this presentation, we are we will propose, we said we’ll intend to propose during the H1 during the Investor Day, we intend to propose a 4 point euros 5 distribution for the fiscal year 2025. And we now say we will propose, not it’s an intention, say we will propose.

And this is part of the EUR 3,100,000,000.0, at least EUR 3,100,000,000.0 distributions and that are shareholder return that we plan to have by 2028, for the fiscal year 2025 to fiscal year twenty twenty eight, so confident in our ability to achieve that. And again, I think that this H1 set of the set of results that we share with you on the H1 is really the demonstration that we have the foundation, the strong foundations, that we have totally changed the risk profile of the group, that we have also the development of the organic growth, the potential to continue to develop new revenues and also to extract value from the assets we own.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield1: Perfect. Thank you.

Conference Operator: The next question is from Neil Green at JPMorgan. Please go ahead.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield0: Hi, good morning. Thank you for taking my question. Just one, How are you thinking about the potential for share buybacks at this point, please? You’re making very good progress on disposals, values arising at a rate better than what you underwrite in the guidance of LTV, and your shares are offering a kind of double digit earnings yield. So any thoughts on potential share buybacks, please?

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Yes. This is something that we’ve touched upon during the Investor Days. And what we said is that, first, we intend to deleverage the company in particular by selling €2,200,000,000 of assets, meaning that the €2,200,000,000 will be dedicated to deleveraging, allowing us to get to the 40% loan to value target that we have. And any extra disposal that would come on the €2,200,000,000 would be dedicated to capital recycling and or share buyback. So basically on that front, we still need first to complete the deleveraging to complete the €2,200,000,000 of disposals.

And once this is done, any additional disposal could be dedicated to a potential share buyback. And as we said during the Investor Day, is something that we will consider on the back of the different alternatives available to us to use the cash that would come from the the proceed that would come from disposals.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Thank you.

Conference Operator: The next question is from Rahul Kaushal, Green Street. Please go ahead.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield1: Hi. Thank you for taking my question. My first question is on disposals. Which countries do you see is most active in terms of discussions? And do you see the bidding tents getting busier in the second half versus last year?

And then my second question is on like for like NRI growth, the 4.1. Do you expect that to continue into the second half? And or what would it take to kind of see a stronger acceleration in the second half? What could drive that? And maybe which countries in particular?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: On the disposals, you know, I think, you know, we have been very active in all in all regions you’ve seen just with what we announced, know, with the two secured deals that we did we announced yesterday or tonight. One is in The U. S, the other one is in Europe or in France. We have ongoing discussions everywhere, as we have always had, by the way, is that we’re really focused on we have earmarked a certain number of assets for which we prepare the data room and all the information memorandums, and we are ready to seize opportunities when we see them. So it’s really not really clearly one area that we are focused on, but it’s some on the assets.

And when we see that we have the potential to dispose at the right price, then we seize this opportunity. So that’s really the way we do it. And then on the like for like NRI, so I think, again, when you look at the as I said previously, when you look at the performance in terms of uplift, the sales evolution, we are confident in our ability to continue to have leasing positive spread. Indexation could be a little bit lower, but then it gives more room for capturing the reversionary potential. So confident in our ability to continue to reach this two seventy to 300 a little more than 300 basis points above indexation, which we have been able to achieve over the last ten years.

We reached two sixty bps, so we’ll continue to do that. So aligned with what we shared during the Investor Day to be in between this two seventy to three thirty basis points of organic growth.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield1: Okay, very clear. Thank you.

Conference Operator: And the last question is from Amal Aboukwatam, The Group. Please go ahead.

Amal Aboukwatam, Analyst, Degroof: Yes. Good morning. Thank you for taking my questions. I have two questions. The first one would be on the Triangle Power project.

Do you have any update on the pre letting and anything new since the Capital Market Day?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: On the Triangle project, we are so we as I think we shared, we started really to prepare to do the pre marketing of the tour of the project after the Olympic Games and restarted at the beginning of this year. So we have somewhat it’s an active market, but we have nothing particular to announce on the Prelating, bar the fact that we have, obviously, the hotel that is leased to Radisson Blu, the fact that we signed as well with Essay Green for the top floors of the asset, to have the summit that you may know from the Van Der Beek Building. So we have the summit as well, this immersive experience with incredible views on Paris that is leased. And for the rest, very confident in our ability to start the predicting. But as usual, you know, when you look at the experience that we had on the office side and and for high rise buildings, We’ve reached I think we started Trinity with almost no pre letting and we have been able to lease it fully at 100%.

Lightwell was pre let. Amajunga was 25% pre let, so very confident. When I see the level of the number of visits that we have, the level of activity that we have around this asset, very confident for the leasing process.

Amal Aboukwatam, Analyst, Degroof: Okay. Good to hear. Second question would be on the tax impact from the new new regulation in The US. Have you had a look at it and have an idea of how it will impact on mature business revenue US revenues?

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: You you mean the tariffs?

Amal Aboukwatam, Analyst, Degroof: Yeah. No. Not excess taxation for non US investor.

Fabrice, Chief Financial Officer, Unibail Rodamco Westfield: Alright. The No. The the section eight eight nine nine, which, you know, was an issue one time now, it has it has been pulled out of the of the of the of the law. So, basically, it’s not anymore not applicable. Has never been applicable, but it’s not on the card anymore.

Amal Aboukwatam, Analyst, Degroof: It’s for sure now. Okay. Okay. Very clear. Thank you very much.

Conference Operator: Gentlemen, there are no more questions registered. I turn the conference back to you for any closing remarks.

Jean Marie Triton, Chief Executive Officer, Unibail Rodamco Westfield: Thank you. Thank you, everyone, and hoping that you will have some rest during the summer break and talk to you soon during the one on ones and the roadshows. Bye bye. Thank you. Bye bye.

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