Unibail-Rodamco reported net rental income rose 3.5% in the first six months of 2017 compared to the year-earlier period, despite a further decline of 4.8% at its Dutch shopping centres.
The Netherlands was the only country which did not contribute to the positive result, Europe's largest listed retail real estate specialist said in a press release. Rental income fell from €31 mln in H1 2016 to €29 mln in the first half of this year, equivalent to a like-on-like decline of 1.8%.
The redevelopment of The Mall of the Netherlands in Leidschendam is not included in the figures. Unibail-Rodamco's Dutch operations have also been hit by the bankruptcy of local retailers like V&D (pictured).
The Dutch portfolio is now the smallest in terms of its contribution to total rental income, generating just 2.7% of the €794 mln posted in the first six months this year. France accounts for the biggest chunk of total rental income - or 26% - with €303 mln.
The Austrian and Spanish operations performed the best over the first half of the year, with rental income increases of 8% and 5.3% respectively.
At end-June, the Paris-listed REIT saw its portfolio rise 3.3% to €42.5 bn. Shopping centres currently account for the bulk - or 81% - of the total portfolio with offices (10%) and convention centres (7%) making up the remainder.
The company also reported a record low average cost of debt of 1.4% while average debt maturity extended over the six-month period to 7.4 years. These results reflected the successful raise of a new 20-year eurobond valued at €500 mln with the lowest spread achieved by a corporate issuer in H1 2017 for this maturity. During the period, the group also signed the first of its kind €615 mln 'green' revolving credit facility in Europe.
The company's development pipeline remains strong with a value of €8.1 bn. Five deliveries are scheduled for the second half of the year, the company said.
