French-Dutch real estate company Unibail-Rodamco, which mainly invests in shopping centers, is happy with its performance in the past fiscal year. It managed growth in every region.
More rent and profit
Unibail-Rodamco has a 43 billion euro portfolio, which consists of shopping centers across Europe: it mainly focuses on France, but it has locations in the Netherlands, Germany and Poland. It is currently constructing the new Mall of the Netherlands, the country’s largest shopping center in Leidschendam, and it is also working on Brussels’ project Neo.
With a focus on prime locations, Unibail hopes to combat online stores’ increased popularity. It seems that strategy is paying off: “We have done well in every region, including growth in the Netherlands”, financial director Jaap Tonckens told De Telegraaf.
Unibail received 1.346 billion euro in rental fees last year, which is a 4.3 % increase compared to the year before. Total rental income grew to 1.583 billion euro, which is a 1.2 billion euro profit (+ 7.9 %). That enormous profit is largely thanks to its low interest rates, which meant that Unibail did not have to pay as much to pay off its current loans.
Westfield acquisition
Late last year, the company announced it would acquire its American competitor Westfield for 13.8 billion euro, a move that should be finalized by the end of this fiscal year’s second quarter. Westfield has 35 shopping centers, including 33 in the United States. Together, the two companies manage 61 billion euro in assets across 27 countries.
