Stock Markets February 12, 2026

Unibail-Rodamco-Westfield Posts Lowest Vacancy Since 2017 as Tenant Sales and Footfall Improve

FY25 AREPS slips modestly after disposals while asset values and occupancy metrics strengthen across key markets

By Avery Klein
Unibail-Rodamco-Westfield Posts Lowest Vacancy Since 2017 as Tenant Sales and Footfall Improve

Unibail-Rodamco-Westfield reported full-year 2025 results highlighting the lowest EPRA vacancy rate since 2017 and positive revaluations across its portfolio. Adjusted recurring earnings per share for FY25 were €9.58, marginally below consensus, weighed by €1.6 billion of disposals completed in 2025. Tenant sales, footfall and net tangible assets per share all showed improvement, and the company proposed a higher dividend while setting a 2026 earnings range and payout targets for upcoming years.

Key Points

  • AREPS for FY25 was €9.58, down 3% due to €1.6 billion of disposals completed in 2025 and broadly in line with analyst expectations.
  • EPRA NTA per share rose 1.6% to €112.8 driven by positive revaluations across markets; EPRA vacancy fell to 4.6%, the lowest since 2017.
  • Tenant sales increased 3.9% year-over-year with footfall up 1.9%; the company proposed a €4.50 dividend and set AREPS guidance of €9.15-€9.30 for 2026 with planned distributions of €5.50 per share.

Unibail-Rodamco-Westfield released its full-year 2025 results showing a mix of portfolio strength and one-off activity that shaped reported earnings. The group recorded AREPS (adjusted recurring earnings per share) of €9.58 for FY25, a 3% decline attributed to the impact of €1.6 billion in disposals completed during the year. That AREPS result was in line with market expectations, matching closely with UBS's €9.52 estimate and the broader €9.47 consensus.

On the balance sheet, EPRA net tangible assets (NTA) per share rose 1.6% year-over-year to €112.8. The increase reflected positive revaluations across all markets of +1.7%, with Europe contributing +1.8% and the United States +1.2%.

Operational metrics pointed to improving mall performance. Tenant sales rose by 3.9% year-over-year, supported by a 1.9% increase in footfall. Regionally, tenant sales expanded by 3.4% in Europe and by 5.2% in the company's US Flagship assets.

Occupancy improved materially: EPRA vacancy declined to 4.6% across the portfolio, with vacancy at 3.3% in Europe and 6.3% in the US - the overall level is the lowest reported since 2017. The proportion of long-term agreements (over 36 months) rose to represent 82% of minimum guaranteed rents (MGRs), and the average contractual uplift across the portfolio was 6.7%.

On distributions, the company proposed a dividend of €4.50 per share for the year, an increase of roughly 30% compared with the prior year. Looking ahead, management guided AREPS for 2026 to a range of €9.15 to €9.30, adjusting from its previous guidance of "at least €9.15." For 2026 the company plans a distribution of €5.50 per share, representing about a 60% payout ratio, with the targeted payout rising to a 60-70% range in 2027.

Separately, the company confirmed it has achieved its target of €2.2 billion of completed or secured disposals that had been set for mid-2026. That disposal activity, including the €1.6 billion completed in 2025, was cited as a factor in the year-on-year movement in AREPS.

The results present a combination of portfolio-level revaluation and improving operating trends alongside capital recycling that affected recurring earnings for the period.

Risks

  • Completed disposals of €1.6 billion in 2025 reduced AREPS by 3%, demonstrating that capital recycling can materially affect recurring earnings - a factor for investors in real estate and REIT sectors.
  • Regional variation in vacancy (3.3% in Europe versus 6.3% in the US) highlights uneven leasing dynamics across markets, which could affect income stability for assets concentrated in higher-vacancy regions.
  • The 2026 AREPS guidance was provided as a range (€9.15 to €9.30), representing a change from prior guidance of "at least €9.15" and indicating earnings uncertainty for the coming year for stakeholders in retail property and commercial real estate markets.

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