Unibail-Rodamco-Westfield (ASX:URW) management said full-year 2025 results reflected strong retail operating momentum, continued balance sheet deleveraging and progress on a “platform for growth” strategy that emphasizes leasing, disciplined capital allocation and capital-light expansion.
Retail operating performance and leasing metrics
URW reported tenant sales growth of +3.9% versus 2024, supported by a +1.9% increase in footfall. Management said leasing activity remained robust, with group vacancy falling 20 basis points year-over-year to 4.6%, the lowest level since 2017.
Chief Financial Officer Fabrice provided additional detail on the leasing profile:
- EUR 423 million of minimum guaranteed rent (MGR) signed in 2025.
- Rental uplift of +6.7% on top of indexation, combining +5.4% in Europe and +9.4% in the U.S.
- Uplift on long-term deals of +11.3%, including +6.6% in Europe and +23.8% in the U.S.
- Long-term deals represented 82% of activity.
By region, Europe vacancy stood at 3.3% (down from 3.6% in December 2024), with Northern Europe improving to 4.8%. U.S. flagship vacancy was 6.3%, in line with December 2024, with management citing bankruptcies in Q3 as a factor. In Q&A, management said it still sees room to reduce vacancy further in the U.K. and the U.S.
2025 earnings, cost actions, and cash flow
URW reported AREPS of EUR 9.58 per share for 2025, down 2.7% year-over-year, which management attributed mainly to the impact of disposals completed in 2024 and 2025, as well as shares issued to CPPIB in late 2024 for an increased stake in URW Germany. Vincent highlighted that the result represented a 20.5% beat versus guidance.
On an underlying basis, Fabrice said URW delivered 5.4% underlying AREPS growth when rebasing for disposals, the Olympics-related effect on 2024 convention and exhibition (CNE) activity, and the CPPIB transaction, consistent with the company’s target of at least 5% underlying growth for 2025.
EBITDA grew +3.6% like-for-like, driven mainly by higher shopping center net rental income. Office NRI fell 34.7% due to disposals, partially offset by the full letting of Lightwell and full delivery of the Coppermaker Square residential project.
Management also emphasized cost discipline. General expenses declined 4.6% in 2025, following a 10% reduction in 2024, and were cited as benefiting from organizational simplification into four regions, procurement measures and process automation.
Asset values, disposals, and leverage trajectory
Management said URW completed or secured EUR 2.2 billion of disposals since the start of 2025, describing pricing as in line with book values. In Q&A, Fabrice said the disposals were executed at an average yield of 6%–7%.
Group gross market value at December 2025 was EUR 48.9 billion, down 1.6% year-over-year, reflecting EUR 1.5 billion of disposals and a EUR 1.2 billion foreign exchange impact from a weaker U.S. dollar and sterling, partly offset by EUR 1.1 billion of CapEx. Excluding FX, investment and disposals, portfolio revaluations increased by EUR 836 million (+1.7%), which management said was the first positive revaluation since 2018 on that basis.
On leverage, IFRS net debt (including hybrid) declined to EUR 20.3 billion in 2025, and to EUR 19.7 billion on a pro forma basis including secured disposals. IFRS LTV (including hybrid) improved to 42.8% from 45.5% a year earlier, and to 42.0% pro forma for secured disposals. Management reiterated its target of 40% LTV by 2028 and said it is on track, noting that 2025 valuation gains exceeded the 1% annual assumption referenced previously.
Capital-light initiatives, developments, and technology
URW highlighted two capital-light growth initiatives. The company acquired a 25% stake in St James Quarter in Edinburgh, with Vincent describing it as an “A++” U.K. asset, and said the transaction creates an opportunity to improve performance and generate management fees.
URW also launched a new franchising business under the Westfield brand. Management said a 58,000 square meter mall in Saudi Arabia was rebranded as Westfield Dammam, with early feedback indicating stronger-than-expected footfall and increased “commercial tension.” Two additional Westfield-branded flagship centers are expected to open in Riyadh and Jeddah in the coming year, according to management.
On development, URW said it delivered projects totaling EUR 1.8 billion of total investment cost. Westfield Hamburg Überseequartier surpassed 10 million visits, and Westfield Černý Most opened an extension with 32 new shops and dining concepts. With remaining office works and an Ibis Hotel in Hamburg expected to complete in the first half of 2026, URW said committed pipeline investment would fall to EUR 0.7 billion over H1 2026, down from EUR 3 billion a year earlier. In Q&A, management said the pre-leasing ratio for the overall Hamburg office product stood at 82%.
Management also discussed data and AI initiatives, including an AI-enabled traffic analytics partnership with DJI rolled out across 21 Westfield shopping centers in Europe. Vincent said new near-real-time KPIs—such as capture rates, conversion rates and bounce rates—are intended to support asset management and leasing decisions. The company also cited measured outcomes from 11 Westfield Rise campaigns, reporting a 16% increase in store visits for advertising retailers and an estimated 17% sales growth over campaign months.
Financing activity, distributions, and 2026 outlook
Fabrice detailed financing actions in 2025, including refinancing of the hybrid stack and $1.2 billion of CMBS. URW’s average hybrid coupon on new issuances was 4.8%, and management said the liability management exercises contributed EUR 18.6 million to 2025 AREPS. The company reported a 2025 cost of debt of 2.1% and reiterated expectations for a 20–30 basis point annual increase going forward.
URW said it intends to propose a EUR 4.50 per share distribution for fiscal 2025, and management guided to a higher payout ratio in 2026. For 2026, URW raised its AREPS guidance range to EUR 9.15 to EUR 9.30 and said it intends to propose a EUR 5.50 per share payout for fiscal 2026, to be paid in 2027 (around a 60% payout ratio).
Management also addressed foreign exchange in Q&A, noting that 2026 hedging levels are set at higher euro/dollar rates than in 2025, reflecting dollar weakness, and indicated this would be a headwind versus the prior year. The company said no major deterioration in the macroeconomic or geopolitical environment is embedded in the 2026 guidance.
About Unibail-Rodamco-Westfield (ASX:URW)
Unibail-Rodamco-Westfield is an owner, developer and operator of sustainable, high-quality real estate assets in the most dynamic cities in Europe and the United States. The Group operates 72 shopping centres in 12 countries, including 38 which carry the iconic Westfield brand. These centres attract over 900 million visits annually and provide a unique platform for retailers and brands to connect with consumers. URW also has a portfolio of high-quality offices, 10 convention and exhibition venues in Paris, and a 2.5 Bn development pipeline of mainly mixed-use assets.
See Also
- Five stocks we like better than Unibail-Rodamco-Westfield
- Is THIS the Next Big Money Rush?
- Wall Street Legend Names #1 Stock of 2026 Live On-Camera
- Trump’s Hand-Written Letter Will Shock his Haters
- ISPC: From Small Cap to Life Sciences Market Disruptor!
- The Crash Has Already Started (Most Just Don’t See It Yet)
