UNIBAIL-RODAMCO SE

2014 HALF-YEAR RESULTS

Paris, Amsterdam, July 23, 2014

Press Release

HALF-YEAR RESULTS 2014

Innovation and expansion driving growth
"As a result of the excellent work of our teams, the Group's H1-2014 recurring net result was up by +8.0%, driven by strong rental growth, operating efficiencies and an even lower cost of debt than last year. The first half of 2014 was also characterized by a number of exciting developments such as the acquisition of a stake in Germany's best shopping centre, CentrO, the introduction of a number of UR Lab's innovations and the award to the Unibail-Rodamco-led consortium to develop the NEO 1 project, including the "Mall of Europe", in Brussels."
Christophe Cuvillier, CEO and Chairman of the Management Board.

Recurring EPS at €5.52, up +6.0%, ahead of guidance
Strong like-for-like growth in shopping centres and offices, the impact of the successful deliveries of 2013, and a cost of debt further decreasing to 2.7%, resulted in a +8.0% growth of the Group's recurring net result to €539 Mn, up from €499 Mn in H1-2013.

Strong operating performance delivers results
As preliminary signs of recovery start to appear in Continental Europe, Unibail-Rodamco's tenant sales⁽¹⁾ were up +3.6% through May and by +3.9% in the Group's large malls⁽²⁾, outperforming national sales indices by +290 bps and +320 bps, respectively. Through May, footfall was strong at +3.1% after a stable year in 2013 at +0.2%.
Like-for-like Net Rental Income (NRI) growth was +2.6% compared to H1-2013, +170 bps above indexation, driven by the +3.7% growth in the Group's large malls. The Group's NRI growth however was impacted by lower indexation (+0.9% vs. +2.1% in H1-2013) and the performance of its smaller malls.
The Group signed 728 renewals and relettings on standing assets, and achieved rental uplifts of +23.1% compared to +13.7% for the same period last year. Unibail-Rodamco signed 83 leases with international premium retailers, up from 78 in H1-2013. Vacancy was unchanged at 2.5%, including 0.3% in strategic vacancy created by the Group to prepare for major restructuring projects.
The Paris region office market is showing signs of recovery with an increase of +24% in take-up for the first half.  During H1-2014, the Group continued its strong leasing activity in Paris with 12 leases for a total take-up of 28,020 m². The French office like-for-like NRI increased by +5.0% compared to a decline of -0.8% during the same period last year. The office like-for-like NRI for the Group increased by +4.0%.