Poitrinal rules out new CEO role at rival listed property company

Outgoing CEO of Unibail-Rodamco, Guillaume Poitrinal, has no plans to take a top position with another listed property company when he steps down at end-April.

Poitrinal confirmed this week he would leave the listed shopping centre owner on 25 April when his management contract expires after a term of eight years. Chief operating officer Christophe Cuvillier - recruited by Poitrinal two years ago - is the incoming CEO.

Poitrinal announced his departure during the presentation of Unibail-Rodamco's 2012 results. Asked about his future plans, he said he had no specific plans and quipped, 'if you have an idea, call me!'

Poitrinal, aged 45, has spent 18 years with Unibail-Rodamco. He was appointed CEO of French group Unibail in April 2005 and led the 2007 merger with Rodamco of the Netherlands, creating Europe's largest listed real estate company.

'I am going to take 3-4 months off and have no specific plans on what to do next,' he told journalists and analysts during the results presentation. Poitrinal added: 'I expect to do something more entrepreneurial, and I might set up my own company. However, I don't intend to run a quoted property company.'

He also ruled out leaving Unibail-Rodamco to become CEO of any other major Paris-listed company active in a sector other than real estate.

Poitrinal said he was stepping down with a sense of a 'job well done'. Shareholders and analysts are likely to agree as under his leadership Unibail-Rodamco has become an 'investor's darling' as the largest listed property company by portfolio size in Europe, with strong rental growth, low debt levels and shares trading at a premium to net asset value.

During his term as CEO, the company built a portfolio of 82 dominant shopping centres across Europe, supported by office buildings in Paris business district La Défense and convention and conference centres in the French capital. Smaller retail and office assets were earmarked for disposal.

The gross market value of the group's property portfolio stood at €29.3 bn at end-December, up 4.8% on a like-for-like basis compared to December 2011. The shopping centre portfolio grew 6% like-for-like to €23 bn.

The EPRA triple net asset value per share was €138.40, an increase of 5.9% from €130.70 per share at end-December 2011.

Poitrinal leaves a company with a low level and cost of debt, thanks to the creative use of the bond markets. The loan-to- value rate currently stands at 37%.

And in a nod to loyal shareholders, Poitrinal said Unibail-Rodamco intends to pay a dividend of €8.40 per share for 2012, representing an increase of 5% compared to 2011. The company has set a recurring earnings per share (EPS) target of at least 5% for 2013, growing to €14 by 2017.

Under Poitrinal, 'Unibail-Rodamco has focused on re-inventing the customer experience in its shopping malls by introducing new international premium retailers, opening three new generation shopping centres, redesigning many others and launching innovative marketing initiatives.

A key initiative was the introduction of the 4-Star label - a quality rmark based on a list of 571 criteria. Nine shopping centres received the label in 2012. Other components of the strategy include a focus on attracting major brands to open flagship stores and the reworking of restaurant areas to create a 'dining experience'.