Unibail-Rodamco-Westfield (URW) unveiled its ‘A Platform for Growth’ 2025-28 business plan, projecting annual EBITDA growth between 5.80% and 6.60%. This growth is expected to stem from organic rental increases within its dominant retail assets across Europe and the U.S., driven by indexation, rent reversion, higher occupancy rates, and market share gains. A significant contributor will be Westfield Rise, URW’s retail media arm, which aims to reach €180 million in net income by 2028, a 56% increase from 2024. The plan also incorporates new revenue streams from a licensing business, targeting €25-35 million in annualised EBITDA by 2028.
URW is adopting a disciplined approach to capital allocation, limiting future capital expenditure through its streamlined development pipeline. Annual capex is estimated at approximately €600 million between 2026 and 2028, funded through organic cash flow. The company aims to achieve a Net Debt to EBITDA ratio of approximately 8.0x and a Loan-to-Value (LTV) ratio of around 40% by 2028. This will be supported by €2.2 billion in planned disposals in 2025 and early 2026, with €1 billion already secured. No further disposals will be required assuming positive valuation trends.
URW reaffirmed its 2025 Adjusted Recurring Earnings Per Share (AREPS) guidance of €9.30-9.50, even with accelerated disposals. While 2026 AREPS is projected to be at least €9.15 due to the mechanical effect of the disposals, the company forecasts AREPS growth of 3-5% in 2027 and 2028, reaching €9.70-10.10 per share by 2028. The company intends to distribute at least €3.1 billion to shareholders between 2025 and 2028, including a €4.50 per share distribution for fiscal year 2025 and a payout ratio of 60% for fiscal year 2026, normalizing to 60-70% from 2027 onward.
The company’s strategy includes expansion of Westfield Rise, leveraging the Westfield brand through new licensing ventures, and project deliveries, including extensions and densification projects. These initiatives are projected to contribute significantly to URW’s financial performance and shareholder value.
