Unibail-Rodamco, Europe’s leading listed property investor and developer, reported a net profit of EUR 1.11 bn in the first half of 2010, compared with a loss of EUR 1.32 bn in the year-earlier period. The improvement reflects an increase in asset values, which grew by EUR 1 bn, or 4.7% like-for-like to EUR 23.3 bn, after two years of decline.
Unibail-Rodamco, Europe’s leading listed property investor and developer, reported a net profit of EUR 1.11 bn in the first half of 2010, compared with a loss of EUR 1.32 bn in the year-earlier period. The improvement reflects an increase in asset values, which grew by EUR 1 bn, or 4.7% like-for-like to EUR 23.3 bn, after two years of decline.
Recurring earnings per share increased 0.4% to EUR 4.70. The company plans to reimburse a total EUR 1.8 bn, or EUR 20 per share, to shareholders on 12 October. This amount corresponds broadly with the net proceeds realised on disposals since the merger between Unibail and Rodamco in 2007.
Since the merger, some EUR 4 bn worth of assets have sold, in line with the group's strategy of concentrating on prime assets and building an exceptional portfolio of large shopping centres. Backed by good market conditions, the group is accelerating this policy with EUR 1.2 bn of disposals signed or closed in H1 2010 (including the Capital 8 Messine Building) with an average 9% price premium achieved on appraisal value on these disposals. A further EUR 500 mln disposals are expected for the remainder of 2010.
Like-for-like rental income growth for the group's shopping centre division came to + 1.8%, or + 1.2% above indexation over the six-month period. In the Office division, like-for-like growth came to 8.7%, mostly due to leasing of vacant units.
Unibail-Rodamco has approached two rating agencies Standard & Poor’s and Fitch to rate the group’s pro forma financial position. The expected rating from both these agencies after the capital reimbursement is an 'A' rating with stable outlook from Fitch and with negative outlook from Standard & Poor’s.
The group claims it will be among the least indebted companies within its peer group, while retaining sufficient financial flexibility to deal with its significant development pipeline and any acquisition opportunities which may emerge.
Unibail-Rodamco reaffirms its outlook for 2010 of recurring earnings per share growth of 0% to 2%. This outlook incorporates the impact of the proposed capital reimbursement.