UNIBAIL-RODAMCO SE

2014 HALF-YEAR RESULTS - Seite 3

Focusing on prime assets
During H1-2014, the Group resumed its disposal programme generating €384 Mn in proceeds, including its 7.25% stake in Société Foncière Lyonnaise and small retail and office assets, realizing an aggregate 9.3% premium. The Group also continued its expansion with the acquisition of a stake in CentrO. Located in Oberhausen in the heart of the densely populated Ruhr region, the 232,000 m² GLA shopping centre complex is one of Germany's largest and most successful.  On July 1, 2014, Perella Weinberg Real Estate Fund I (PWREF I) exercised its put for its remaining interest in mfi. Unibail-Rodamco will pay PWREF €317 Mn upon closing, and bring its total ownership in mfi to 91.15%.

Average cost of debt decreasing again yet maturities extend with record issuances
During the first 6 months of 2014, Unibail-Rodamco raised €2,866 Mn of medium to long-term funds in the debt capital and bank markets and increased the average debt maturity to 5.7 years as at June 2014. The average cost of debt for the Group decreased to a historical low of 2.7% compared to 2.9% for the full year 2013. The Group also applied its innovative approach to its fund raising with two firsts for a European real estate company: a €750 Mn 10-year "Green bond" with a 2.5% coupon, and a €500 Mn 0% coupon, 7-year ORNANE. Financial ratios remained strong: Loan-to-Value stands at 40% and the interest cover ratio at 4.2x. The Group has ample liquidity with €4.8 Bn of undrawn bank lines.

The portfolio value increases, Spain and Paris offices values stabilize
The Gross Market Value (GMV) of the Group's portfolio as of June 30, 2014 amounted to €33.6 Bn, up from €32.1 Bn on December 31, 2013. The shopping centre GMV was up +1.2% like-for-like to €26.8 Bn. Paris offices stabilized with a moderate -0.3% portfolio revaluation, compared to -6.4% at year-end 2013 driven by a strong rental effect of +0.9% due to very active leasing. The average net initial yield of the retail portfolio was 5.0%, down from 5.1% in December 2013.
The Group created €9.73 of value per share, which was offset by the -€8.90 per share dividend paid in May 2014 and the mark-to-market of the debt and derivatives of -€3.33 per share. Considering these two effects, the Going Concern Net Asset Value per share was €157.10, down -1.6% from €159.60 in December 2013. The EPRA triple Net Asset Value per share was €143.30, down -2.0% from €146.20 as at December 31, 2013.