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Unibail-Rodamco-Westfield Reports Steady Q1 Results

Unibail-Rodamco-Westfield shows slight growth in turnover and strong leasing activity in Q1. EPS guidance for 2025 remains promising, indicating potential for investor optimism.

Date: 
AI Rating:   7

Overview of Financial Performance
Unibail-Rodamco-Westfield (UNBLF, UNRDY) reported a slight increase in its proportionate turnover for Q1 2023, totaling 943.3 million euros, just above last year's 942.8 million euros. Total turnover on an International Financial Reporting Standards (IFRS) basis showed a similar pattern with 800.5 million euros, a minor increase from 799.0 million euros in the prior year.

Critical Metrics
The growth in Shopping Centers Gross Rental Income is a noteworthy highlight, with figures rising to 621.7 million euros from 616.4 million euros over the same quarter last year. This indicates that retail performance within the group's assets remains stable, despite broader economic challenges.

The company has also reaffirmed its adjusted recurring earnings per share (EPS) guidance for 2025 to be between 9.30 and 9.50 euros. This stable guidance reflects confidence in future operations, which is critical for investors assessing long-term value.

Unibail-Rodamco-Westfield's CEO, Jean-Marie Tritant, emphasized the robustness of their operating performance, noting increases in both sales and foot traffic. Even with adverse calendar effects, the company achieved nearly 8% in minimum guaranteed rent signed beyond passing rents. This is an exceptional indicator of demand for their flagship projects, particularly with the recent opening of Westfield Hamburg Überseequartier, which has already drawn more than one million visitors.

Investor Sentiment
The stability in turnover and positive guidance on EPS could signal a favorable outlook for the stock. However, the slight increases in figures suggest a cautious approach for investors who may have expected more aggressive growth in job rent collections or overall revenue increase. Thus, while performance metrics indicate resilience, they do not strongly exceed market expectations, keeping the investor sentiment moderately positive.

Stocks:  UNBLF UNRDY