In Q1 2025, 100.4 million euros of MGR were signed, with an uplift of +7.9% on top of indexed passing rents, while tenant sales were up +2.1% and footfall up +0.4% considering unfavorable calendar effects.
The proportion of long-term deals (above 36 months) is reported to be stable at 78% of MGR signed. Deals longer than 36 months had an MGR uplift of +14.7% on top of indexed passing rents. Overall, MGR uplift in Q1-2025 was +7.9% on top of indexed passing rents (vs. +10.1% in Q1-2024) including +3.6% for Europe and +15.1% for the US.
Vacancy stood at 5.3% for the Group (4.8% in FY-2024), crediting the usual seasonality, 40 bps below Q1-2024. This includes 3.9% for Europe (3.6% in FY-2024) and 6.5% for US Flagships (6.2% in FY-2024). URW is confident to end the year at or below 2024 vacancy levels, which were the lowest since 2017.
URW also reports the completion or securing of 1 billion euros of disposal transactions in 2025, a successful financing activity and a strong liquidity position. The company’s hybrid portfolio has been re-couponed downward and downsized, and 13.2 billion euros of available liquidity with refinancing needs have been secured for more than 36 months.
New organisational structure
The Group has adapted its organisational structure (and subsequent reporting) for its Shopping Centres activity into four main “Regions”: Central and Eastern Europe, Northern Europe, Southern Europe and the United States. This reorganization reflects the Group’s strategic focus on Flagship assets in the most affluent urban areas in Europe and the US and simplifies its management structure while achieving cost and productivity efficiencies. Offices & Others and Convention & Exhibition will continue to be managed separately and the reporting remains unchanged for both activities.
Turnover
URW’s proportionate turnover for Q1-2025 amounted to 943.3 million euros, stable year-on-year, mainly reflecting the acquisitions and disposals achieved, C&E business seasonality effect as well as the Paris Olympics contribution in 2024 GRI and Property services revenues.
Higher property development and project management revenues mainly reflect the phasing of projects, in particular Coppermaker Square.
“We delivered strong leasing activity, with MGR signed up almost 8% on top of passing rents, says Jean-Marie Tritant, Chief Executive Officer. “Westfield Hamburg-Überseequartier, our newest Flagship asset, successfully opened to the public on April 8 and has already attracted over one million visits. We have also expanded Westfield Rise to the US to generate more revenues through our in-house retail media and experiential division. Since the start of 2025, we have completed or secured €1 billion of disposals, including €0.7 billion of retail assets in line with latest book values.”
Gross Rental Income
The Group’s gross rental income amounted to 707 million euros for Q1-2025, down -0.9% from Q1-2024.
Shopping center GRI amounted to 621.7 million euros, an increase of +0.8% driven by the acquisition of JV partner stakes (Westfield Montgomery and CH Ursynów) as well as FX impact, offsetting 2024 and 2025 disposals impact. On a like-for-like basis, the GRI was up +2.6% driven by indexation (+1.3%) and strong operating performance. This does not include the positive impact on NRI of higher service charge income as a result of vacancy reduction.
Offices & Others GRI increased by +1.3%, driven by the delivery of Lightwell and the first phases of Coppermarker Square in 2024, as well as the ramp up of Pullman Montparnasse, offsetting the impact of disposals (Gaîté-Montparnasse office sold in November 2024 and 80% stake in Trinity tower sold in February 2025). Lightwell is now fully let following the leasing of the remaining 20% vacant space (6,470 sqm) in March 2025 to a single tenant at prime rental conditions.
C&E GRI increased by +12.8% vs. Q1-2023 to €59.3 Mn, and decreased by -16.2% vs. Q1-2024 when the initial benefit of the Paris Olympics was first felt, as well as other seasonality effects. As at March 31, 2025, signed and pre-booked events in Viparis’ venues for 2025 amounted to c. 93% of its expected 2025 rental income.
Shopping center activity
Tenant sales levels were up +2.1% compared to Q1-2024 while footfall increased by +0.4%, a positive performance given the number of adverse calendar effects, including 2024 being a leap year and Easter falling in Q2 vs. Q1 last year. Central and Eastern Europe footfall and sales were also impacted by some closures of large stores in German and Austrian assets.
Lastly, a major highlight of Q1 2025 was the successful retail opening of Westfield Hamburg-Überseequartier on April 8 for which URW reports over 1 million visits in the first 2 weeks.
