Unibail Rodamco Westfield : 2020 Full-Year Results

Paris, Amsterdam, February 10, 2021

Press release

UNIBAIL-RODAMCO-WESTFIELD REPORTS FY-2020 EARNINGS

URW's organisation has demonstrated resilience in extreme operating conditions with positive consumer demand whenever restrictions eased or lifted during 2020

Flagship destinations continue to attract leading brands and emerging players - working together to innovate in a rapidly evolving retail environment

Focused operational plan for 2021 and clear commitment to deleveraging - URW will emerge as a stronger business harnessing the market rebound

FY-2020 in Review

• • Strong start to 2020 but only 70 days of normal operations, most of the year subject to various restrictions and 93 days on average "closed"(1)

• • Like-for-like shopping centre Net Rental Income ("NRI") down -24%, driven by rent relief and doubtful debtors as URW was heavily impacted due to central locations and F&B exposure

• • Strong rebound whenever centres were open with sales outperforming footfall, larger basket sizes and strong F&B bounce - Continental Europe Q3-2020: 77% of 2019 footfall; 86% of 2019 sales

• • Partnership approach to support tenants and innovative response to restrictions ensured URW collected 88% of the total amount due for FY-20 (80% of the billed rents); €401 Mn in total rent relief at 100%

• • Reinforcing trusted partnerships with established leading brands and attracting emerging retail concepts in the innovative Automotive, DNVB and Entertainment sectors; 1,528 new leases signed in 2020 (-36% vs. 2019) with higher activity in H2

• • IFRS LTV at 44.7% (44.0% pro-forma for the proceeds of the SHiFT and Les Villages 3, 4 and 6 disposals)

• • €2.3 Bn of disposals achieved including the sale of the SHiFT and Les Villages 3, 4 and 6 office buildings, and a portfolio of five French shopping centres

• • URW will complete the remainder of the €4.0 Bn of European disposals as well as implement a programme to significantly reduce its financial exposure to the US

• • €11.4 Bn in cash and available credit facilities at year end

Commenting on the results, Jean-Marie Tritant, Chief Executive Officer said:

"2020 has been a year like no other in URW's history and I want to thank our outstanding teams for showing true resilience. They have worked tirelessly since March last year to help our Group, our tenants and our communities to handle this unprecedented situation. With restrictions in place across almost all of our markets we have realistic expectations for 2021 but are encouraged by the way footfall and sales bounced back strongly whenever restrictions were eased or lifted last year.

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There is clear pent-up consumer demand for high quality shopping destinations, and leading and emerging brands are choosing URW locations ahead of a market rebound. The retail landscape is changing and our centres are proving to be attractive for high potential sectors such as innovative automotive, digitally native vertical brands and entertainment.

Operationally, we continue to deliver innovative solutions for tenants and consumers, including the drive @ Westfield online purchase pick up programme, rolled out in all of our US locations and 11 European centres.

Mutually beneficial partnerships with our tenants are key, and we have adopted a "burden sharing" principle to negotiations in order to mitigate the impact of the crisis and assist their rebound.

Deleveraging is a key priority and will be achieved through a strict control of CAPEX, cost base and continued disposals. We will complete the remaining €3.2 Bn of the €4 Bn European disposals before the end of 2022. We are implementing a programme to significantly reduce our financial exposure to the US when the investment market reopens which should happen with the US economy rebound in 2022. Our continued access to credit markets and ample liquidity will allow us to complete our deleveraging objectives in an effective and orderly way.

Taking into account the current operating environment and our commitment to deleveraging, the Group will suspend the payment of a dividend for its fiscal years 2020, 2021 and 2022. We will resume the payment of a sustainable and growing dividend once the deleveraging programme is completed. Having delivered on our immediate operational and financial priorities, URW will re-emerge as the most attractive retail focused listed real estate company combining strong fundamentals and outstanding growth potential."

FY-2020	FY-2019	Change	Like-for-like change(2)
Net Rental Income (in € Mn)	1,790	2,491	-28.1%	-26.4%
Shopping Centres	1,699	2,293	-25.9%	-24.0%
Offices & Others	85	103	-16.9%	+0.1%
Convention & Exhibition	6	95	-93.6%	-93.6%
Recurring net result (in € Mn)	1,057	1,760	-40.0%
Recurring EPS (in €)	7.63	12.72	-40.0%
Adjusted Recurring EPS (in €)	7.28	12.37	-41.1%
Dec. 31, 2020	Dec. 31, 2019	Change	Like-for-like change
Proportionate portfolio valuation (in € Mn)	56,314	65,341	-13.8%	-11.2%
EPRA Net Reinstatement Value (in € per stapled share)	166.80	228.80	-27.1%

Figures may not add up due to rounding

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FY-2020 AREPS: €7.28

Reported AREPS amounted to €7.28, down -41.1% from 2019, a decrease of -€5.09, split as follows:

• • -€4.57 due to the impact of COVID-19 on operations and financing (i.e. rent relief, doubtful debtors and lower variable revenue streams);

• • -€0.49 due to disposals made in 2019 and 2020;

• • -€0.42 as a result of ending the capitalisation of letting fees; and

• • Partially offset by +€0.39 of other items(3).

OPERATING PERFORMANCE

Shopping Centres

During the majority of 2020, governments implemented severe restrictions following the outbreak of the COVID-19 pandemic, resulting in an unprecedented interruption to operations in FY-20 with only ca. 70 normal trading days and 93 days with the centres effectively closed(1).

The Group's tenant sales(4) for the year overall came to 63% of 2019, or 66% excluding F&B and Entertainment. The best performing category in Europe was Food stores and Mass Merchandise (97% of 2019). Most impacted sectors were Entertainment (-68%) and Food & Beverage Services (-43%).

After reopening of the shopping centres closed in Q2, footfall in Continental Europe in Q3 (the least disrupted period) reached 77% of 2019 levels, with tenant sales outperforming at 86% of 2019 levels, driven by higher basket size as customers came to shop.

URW collected 80% of billed rents(5) in FY-2020 overall, with the remainder primarily either provided as part of the rent relief or provisioned. The rent collection improved after reopening to 85% in Q3, while Q2 at 61% and Q4 at 76% were impacted by lockdowns and other restrictions. Adjusted for the rent relief granted, the collection rate came to 88% of the total amount due(6), with Continental Europe at 94%, reflecting the progress in tenant negotiations and the efforts of URW's teams.

Over 2020, the rent relief granted at the asset level amounts to €401 Mn, which translates into €313 Mn for URW on a proportionate basis, of which €246 Mn has been charged to the 2020 income statement. These negotiations are typically not about permanently changing lease structures or changing the basis for rent calculations (e.g., replacing Minimum Guaranteed Rent with Sales Based Rent only leases), but rather focus on providing appropriate rent relief to achieve a fair burden sharing.

Vacancy increased from 5.4% to 8.3% at year end 2020, impacted by bankruptcies and lower leasing activity (1,528 leases signed, -36% vs. 2019).

Lfl shopping centre NRI was down by -24.0% for the Group, mainly driven by the impact of COVID-19 through rent relief and higher bad debt provisioning. The Lfl NRI performance was -19.1% in Continental Europe, -28.0% in the US and -49.3% in the UK, which suffered in particular from a high level of CVAs and bankruptcies.

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The recovery seen during 2020 when centres reopened, and when restrictions for F&B and Entertainment were lifted, gives the Group a high degree of confidence that its Flagship destinations will continue to be the preferred locations for retailers and consumers.

Offices & Others

Lfl NRI was up by +0.1%, while total NRI was down by -16.9%, primarily as a result of the disposals of the Majunga office and the Novotel Lyon Confluence in 2019 and 2020, respectively, and the transfer of Michelet

Galilee to the pipeline, partly offset by the delivery of SHiFT and Versailles Chantiers.

Convention & Exhibition

Recurring NOI was down by -92.3% compared to 2019, as most events were cancelled from March 9 as a result of government restrictions. Currently the Group expects a restart of activity in Q4-2021 / Q1-2022.

ADMINISTRATIVE EXPENSES

In 2020, URW implemented furlough plans and partial activity schemes, reduced the non-staff costs, restructured the US and UK organisation and downsized the development teams. Collectively, these steps generated gross administrative savings of €80 Mn in 2020 vs. 2019.

DELIVERIES

In 2020, the Group delivered the first phase of the Westfield Valley Fair and La Part-Dieu retail extensions, two restructuring projects at Westfield Les 4 Temps, and the Trinity office tower. The average letting(7) of the retail deliveries stands at 84%, as a result of phased deliveries.

In 2021, URW plans to deliver the Westfield Mall of the Netherlands redevelopment in H1 (pre-letting(7): 90%), and the Gaîté Montparnasse mixed-use project in H2 (pre-letting(7): 100% for Offices & Others, and 84% for

Retail).

VALUATION

The proportionate Gross Market Value (GMV) of the Group's assets as at December 31, decreased by -13.8% to €56.3 Bn from December 31, 2019, mainly as a result of a like-for-like portfolio revaluation of -€6,020 Mn

(-11.2%), revaluation of non like-for-like assets of -€1,141 Mn, FX impact and disposals, partly offset by CAPEX.

The EPRA Net Reinstatement Value per share came to €166.80 as at December 31, 2020, down -€62.00

(-27.1 %) compared to December 31, 2019, and -€30.20 (-15.3%) compared to June 30, 2020.

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