UNIBAIL-RODAMCO SE: FULL-YEAR RESULTS 2013

4 februari 2014 Paris, Amsterdam, February 4, 2014 Press Release FULL-YEAR RESULTS 2013 Innovation Driving Growth "2013 was an excellent year for Unibail-Rodamco, both operationally and financially. Recurring earnings per share grew by +6.5% in a year characterized by on-going innovation, a strong leasing performance and a record low cost of debt. Last, but not least, €1.1 Bn  of projects adding a total of more than 200,000 m² of GLA were successfully delivered. Unibail-Rodamco's focus on high footfall, superior quality shopping and leisure destinations throughout Europe's wealthiest cities underpins its successful business model as the Group widens the innovation gap." Christophe Cuvillier, CEO and Chairman of the Management Board. Recurring EPS at €10.22, up +6.5%, and significantly outperforming guidance for 2013 of at least 5%. The Group's recurring net result was €986 Mn, up +11.2% from €886 Mn in 2012 driven by strong like-for-like growth in shopping centres, the successful deliveries in 2012 and 2013 and a record-low cost of debt of 2.9%. Solid operating performance Unibail-Rodamco performed very well despite the negative macro-economic backdrop. In the Retail segment, footfall through December 31, 2013 was resilient at +0.2% while tenant sales were up +1.1%((1) )through November, outperforming national sales indices by 250 bps((1)) and demonstrating the superior quality and appeal of Unibail-Rodamco's portfolio. The like-for-like Net Rental Income (NRI) growth was +4.7% compared to 2012, 260 bps above indexation. The Group signed 1,378 leases on standing assets, with a Minimum Guaranteed Rent uplift of +15.3%, +19.8% for its large shopping centres (6Mn visits and above). Unibail- Rodamco signed 165 leases with international premium retailers up from 139 in 2012. The Group rotated 12.6% of its tenants and its Occupancy Cost Ratio stands at a moderate 13.7%. Vacancy stood at 2.5%, of which 0.5% in strategic vacancy to prepare for major restructuring projects. In the French offices segment, the Group signed 22 leases for a total take-up of 80,123 m² up from 31,375 m²in 2012, a notable difference with the decrease in office take-up in the Greater Paris Region of -25% vs. 2012. The office like- for-like NRI for the Group decreased by -4.6% mainly due to departures in France, for which indemnities were received in 2012. Convention & Exhibition NRI was down -4.5% in 2013 after an exceptionally strong 2012 but was up +2.3% from the last comparable year of 2011, with its large shows continuing to perform well and a record number of new shows (33). On December 9, 2013, Viparis and the City of Paris entered into a new long-term lease agreement (50 years commencing January 1, 2015) for Porte de Versailles. Outstanding pace of deliveries Unibail-Rodamco delivered €1.1 Bn in projects in 2013 including extensions of Cerny Most (Prague), Alma (Rennes), Toison d'Or (Dijon) and Shopping City Süd (Vienna), as well as the new shopping centre Aéroville. This 4 Star-labelled  83,324m² shopping centre located just five minutes away from continental Europe's  busiest airport, Roissy-Charles de Gaulle, showcases all of Unibail- Rodamco's latest innovations. These 5 projects added 152,086 m² to the Group's GLA for a total investment cost of €826 Mn, generating an aggregate yield on cost of 7.6%. Unibail-Rodamco also delivered the 30,887 m² So Ouest office building (Levallois-Perret, Paris Region) and leased 90% of it to SAP, demonstrating the continued appetite for large prime office area in the Greater Paris Region. Widening the gap through innovation In 2013, the Group continued to demonstrate its ability to deliver differentiated and innovative shopping and leisure destinations, which appeal to retailers and consumers alike, enabling tenant sales  to continue to grow year after year at rates significantly above the market: * 15 shopping centres have now been awarded the 4 Star label, of which 6 in 2013; * 4 shopping centres now feature the Dining Experience(TM) with a dedicated dining area reinforcing the variety of the food offer in these malls and showcasing unique gastronomy events; * The Iconic Shop Fronts initiative was implemented in 25 shopping centres; * The Digital Dream(TM) initiative was launched in Les 4 Temps and provides a new immersive brand experience to customers on a 360° LED screen of 250m²; * The online footprint of the Group's shopping centres grew with the release of a version 3 of its app and an 89% increase of downloads. The Group's malls now count 4.3 Mn Facebook fans, an increase of +68%; * In December the Group inaugurated its UR Lab campus, an innovation think tank and a real scale test lab to develop new concepts and innovate on the Group's malls next genuine ideas. These innovations have enabled the Group to widen its lead in continental Europe. Average cost of debt reaches historical lows The Group raised €4.3 Bn of medium to long term debt through diversified sources of funding and its financial ratios are strong: Loan-to-Value stands at 38% and the interest cover ratio at 4.0x. Unibail-Rodamco's average cost of debt in 2013 was a new record low 2.9% at year end, down -50 bps from 2012. The average maturity of the Group's debt increased to 5.4 years and it has ample liquidity with €4.5 Bn of undrawn bank lines. Rental growth drives portfolio revaluation The Gross Market Value (GMV) of the Group's portfolio as of December 31, 2013 amounted to €32.1 Bn, up from €29.1 Bn on December 31, 2012. The shopping centre GMV was up +2.4% like-for-like to €25.6 Bn with a strong impact from rental growth of +2.2%. The average net initial yield of the retail portfolio was 5.1% down from 5.3% in December 2012. The Going Concern Net Asset Value per share was €159.60, up +5.6% or €8.50 from €151.10 in December 2012. Adjusting for the €8.40 per share dividend paid in 2013, the Group created €16.90 of value per share. The EPRA triple Net Asset Value per share was €146.20, up +5.6% or €7.80 from €138.40 as at December 31, 2012. €6.9 Bn prime quality development pipeline to fuel future growth The Group continued its sourcing efforts in all the regions where it operates and added €1.0 Bn of new prime quality projects to its development pipeline. The pipeline increased to €6.9 Bn as at December 31, 2013 from €6.8 Bn at December 31, 2012((2)), of which 64% represents projects on which the Group retains full flexibility. Tour Majunga will be completed in H2-2014 and will feature Unibail- Rodamco's New Art of Working providing a one-of-its-kind collection of services to employees. The Group also expects to complete the refurbishment of the 100% pre-let 2-8 Ancelle Office in Paris, and the major restructuring and extension project of Forum des Halles in collaboration with the City of Paris in the heart of Paris. Outlook For 2014, the Group is positive about its expectations on rental income growth. This is driven by on-going strong fundamentals, such as low vacancy, sustainable Occupancy Cost Ratios and good rental uplifts. The cost of debt will remain contained at low levels. Against this backdrop and assuming the economic outlook does not change materially from its current state, the Group expects to achieve a REPS growth in 2014 of at least 5.5%. The medium term outlook is derived from the Group's annual 5-year business plan exercise, key inputs in which are indexation, rental uplifts, disposals, delivery of pipeline projects, cost of debt and taxation, variations in which may cause growth rates to vary from year to year.  At this time, the Group's business plan results in a compound annual growth rate of its REPS of between 5% and 7% over the next five years. Dividend The Group will propose to the Annual General Meeting (AGM) to declare a dividend of €8.90 per share in cash representing an increase of +6% from 2012 and a pay- out ratio of 87%, in line with the Group's 85%-95% dividend pay-out policy. Subject to the approval by the AGM, the Group's shareholders will be paid the following amounts per share on May 15, 2014: * €3.90 in cash paid from Unibail-Rodamco's tax exempt (SIIC) real estate activities * €5.00 in cash paid from Unibail-Rodamco's non-tax exempt activities. +-----------------------+-------------+-------------------+------+-------------+ |  | FY-2013| FY-2012((2))|Growth|Like-for-like| | | | | | growth| +-----------------------+-------------+-------------------+------+-------------+ |Net Rental Income (in €| 1,352| 1,280| +5.6%| +2.7%| |Mn) | | | | | +-----------------------+-------------+-------------------+------+-------------+ | * Shopping centres  | 1,097| 1,008| +8.9%| +4.7%| +-----------------------+-------------+-------------------+------+-------------+ | * Offices  | 160| 173| -7.4%| -4.6%| +-----------------------+-------------+-------------------+------+-------------+ | * Conventions & | 96| 100| -4.5%| -4.5%| | Exhibitions  | | | | | +-----------------------+-------------+-------------------+------+-------------+ |Recurring net result | 986| 886|+11.2%|  | |(in € Mn) | | | | | +-----------------------+-------------+-------------------+------+-------------+ |Recurring EPS (in € per| 10.22| 9.60| +6.5%|  | |share) | | | | | +-----------------------+-------------+-------------------+------+-------------+ |  |  |  |  |  | +-----------------------+-------------+-------------------+------+-------------+ |  |Dec. 31, 2013|Dec. 31, 2012((2) )|  |  | +-----------------------+-------------+-------------------+------+-------------+ |Total portfolio | 32,134| 29,116| -| +1.6%| |valuation (in € Mn) | | | | | +-----------------------+-------------+-------------------+------+-------------+ |Going Concern Net Asset| 159.60| 151.10| +5.6%|  | |Value (in € per share) | | | | | +-----------------------+-------------+-------------------+------+-------------+ |EPRA triple Net Asset | 146.20| 138.40| +5.6%|  | |Value (in € per share) | | | | | +-----------------------+-------------+-------------------+------+-------------+ Figures may not add up due to rounding. (1) Based on latest national sales indices. Excludes the sales of four Virgin stores in 2012 and 2013 due to the bankruptcy of the retailer in June 2013. Including sales of these stores, the Group's tenant sales through November grew by +0.8% outperforming national sales indices by +220 bps (2) Restated following adoption of IFRS 10-11 The appendix to the press release and the full-year 2013 results presentation are available on the Group's website www.unibail-rodamco.com The audit procedures by statutory auditors are in progress. For further information, please contact: Investor Relations Pierre-Marie Battesti +33 1 76 77 56 97 Media Relations Camille Delomez +33 1 76 77 57 94 About Unibail-Rodamco Created in 1968, Unibail-Rodamco SE is Europe's largest listed commercial property company, with a presence in 12 EU countries, and a portfolio of assets valued at €32.1 billion as of December 31, 2013. As an integrated operator, investor and developer, the Group aims to cover the whole of the real estate value creation chain. With the support of its 1,500 professionals, Unibail- Rodamco applies those skills to highly specialised market segments such as large shopping centres in major European cities and large offices and convention & exhibition centres in the Paris region. The Group distinguishes itself through its focus on the highest architectural, city planning and environmental standards. Its long term approach and sustainable vision focuses on the development or redevelopment of outstanding places to shop, work and relax. Its commitment to environmental, economic and social sustainability has been recognised by inclusion in the DJSI (World and Europe), FTSE4Good and STOXX Global ESG Leaders indexes. The Group is a member of the CAC 40, AEX 25 and EuroSTOXX 50 indices. It benefits from an A rating from Standard & Poor's and Fitch Ratings. For more information, please visit our website: www.unibail-rodamco.com Unibail-Rodamco - 2013 Full-Year Results: http://hugin.info/136618/R/1759139/594840.pdf This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: UNIBAIL-RODAMCO SE via GlobeNewswire [HUG#1759139]