Consistency.Annual - and Sustainable Development Report 2015 Consistency
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CONSISTENCY.ANNUAL - ANDSUSTAINABLE DEVELOPMENT REPORT2015 CONSISTENCY. ANNUAL AND SUSTAINABLE DEVELOPMENT REPORT 2015 WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 UNIBAIL-RODAMCO IS EUROPE’S LEADING LISTED COMMERCIAL GERMANY PROPERTY COMPANY SHOPPING 10 CENTRES NORDICS VISITS SHOPPING 100Mn PER YEAR 9 CENTRES VISITS PER YEAR THE NETHERLANDS 56Mn SHOPPING OFFICES AND CONVENTION 4 CENTRES & EXHIBITION VENUES VISITS IN PARIS 37Mn PER YEAR FRANCE SHOPPING 25 CENTRES VISITS 287Mn PER YEAR AUSTRIA CENTRAL EUROPE SHOPPING SHOPPING 2 CENTRES 9 CENTRES CONVENTION & EXHIBITION VISITS VISITS PER YEAR VIPARIS is a global leader in its sector and manages 44Mn PER YEAR 111Mn a portfolio of 11 unique world-class venues in Paris and the surrounding area. OFFICES SPAIN Unibail-Rodamco focuses on large, efficient office buildings at prime locations in the Paris central business SHOPPING district and La Défense. 13 CENTRES VISITS 142Mn PER YEAR WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 BUILDING UNIQUE DESTINATIONS 38. ICONIC PLACES 40. EXCEPTIONAL RETAILERS 42. NEW CONCEPTS 44. THE 4 STAR LABEL 46. CONNECTED SHOPPING CENTRES AN OUTSTANDING ENVIRONMENTAL UNIBAIL-RODAMCO: A SUMMARY 48. 02. TRACK RECORD 04. 2015 HIGHLIGHTS 50. FOSTERING LOCAL COMMUNITIES 08. MESSAGE FROM THE CEO AND CHAIRMAN OF THE MANAGEMENT BOARD 52. MALL OF SCANDINAVIA 10. MESSAGE FROM THE CHAIRMAN OF THE SUPERVISORY BOARD 12. MANAGEMENT BOARD 14. SUPERVISORY BOARD EMBRACING THE FUTURE 56. DEVELOPMENT PIPELINE FINANCIAL PERFORMANCE 18. THE BEST IS STILL TO COME 20. EPRA PERFORMANCE MEASURES 22. SHAREHOLDER’S REPORT OUR PEOPLE 62. THE UR EXPERIENCE IN ACTION 64. PEOPLE @UNIBAIL-RODAMCO ANTICIPATING CUSTOMER DEMANDS 26. INVENTING THE FUTURE OF RETAIL 28. THE OBSERVATORY OF SHOPPING ACROSS THE PORTFOLIO 30. UR LAB, A MISSION TO INNOVATE 68. REGIONS 32. THE BIG PICTURE 82. CONVENTION & EXHIBITION 34. INNOVATION AS A CORPORATE CULTURE 84. OFFICES WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 UNIBAIL-RODAMCO A SUMMARY UNIBAIL-RODAMCO IS ACTIVE IN 3 BUSINESS LINES GROUP PORTFOLIO OF THE COMMERCIAL REAL ESTATE INDUSTRY: BY ACTIVITY* IN 3 ASSETS CATEGORIES €37.8 Bn 2 I SHOPPING OFFICE CONVENTION AND Shopping centres: 80% CENTRES BUILDINGS EXHIBITION VENUES Offices:12 % Convention and Exhibition: 7% Services: 1% CREATED IN 1968 *In terms of Gross Market Value LISTED ON THE PARIS STOCK EXCHANGE as of 31 December 2015. UNIBAIL-RODAMCO UNIBAIL-RODAMCO SINCE 1972 AND ON THE AMSTERDAM STOCK EXCHANGE SINCE 1983. INCLUDED IN THE CAC 40, AEX 25 AND EURO STOXX 50 INDICES SHOPPING CENTRE PORTFOLIO BY REGION* 1,996 EMPLOYEES France: 45% Central Europe: 12% Nordics: 11% Spain: 10% Germany: 9% Austria: 7% INCLUDED IN THE DJSI (WORLD AND EUROPE), The Netherlands: 5% *In terms of Gross Market Value FTSE 4 GOOD, STOXX GLOBAL ESG LEADERS, GRESB as of 31 December 2015. AND GLOBAL REPORTING INITIATIVE INDICES Figures may not add up due to rounding. WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 1 72 97% OF THE GROUP’S SHOPPING CENTRES SHOPPING CENTRES WELCOME MORE THAN 6 MILLION VISITS PER ANNUM 777 84%2 MILLION VISITS ACROSS OF THE GROUP’S SHOPPING CENTRE THE GROUP’S SHOPPING CENTRES PORTFOLIO IS BREEAM IN-USE CERTIFIED 3 I 2 93% OF THE GROUP’S 4,750,000 M GLA RETAIL PORTFOLIO IS LOCATED SHOPPING CENTRES, UNIBAIL-RODAMCO WITHIN A 200 METRE RADIUS OFFICES, AND CONVENTION OF PUBLIC TRANSPORTATION AND EXHIBITION CENTRES STRONG BALANCE RATING FROM SHEET WITH A LOW STANDARD & POOR’S AND LOAN-TO-VALUE (LTV) FITCH, ONE OF THE BEST RATIO OF 35% RATINGS IN THE INDUSTRY 3 RECURRING UNDERLYING €9.70 EARNINGS PER SHARE GROWTH OF DIVIDEND PER SHARE €10.46 +8.3% -17% 1 Gross Market Value as at December 31, 2015. REDUCTION IN CARBON EMISSIONS 2In terms of m² of GLA, as at December 31, 2015. BETWEEN 2012 AND 2015 3Subject to AGM approval on April 21, 2016. WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 2015 HIGHLIGHTS March MINTO MINTO, in Mönchengladbach, Germany, attracted 1 million visits in 3 weeks. The iconic destination has 104 shops and all of the Group’s latest innovations in terms of architecture, design, international brands, 4 Star services and dining. MINTO 4 I April UNIBAIL-RODAMCO UNIBAIL-RODAMCO A first in financing The Group successfully placed a €500 Mn Ornane. It was the first convertible bond with a negative yield issued by a real estate company in the Euro market. The transaction was 6 times oversubscribed. The newly issued Ornane was rated “A” by Standard & Poor’s and “A+” by Fitch. EURALILLE June May Amstelveen Stadshart Amstelveen was awarded the prize for Euralille “Best Shopping Centre Euralille, in the centre of Lille, went through an in the Netherlands 2015” important renovation project, the first since its at PROVADA Real Estate construction in 1994. The surrounding area is Exhibition in Amsterdam. undergoing an important revival and aims at It was the second time that becoming a vibrant crossroad between Paris, Stadshart Amstelveen Brussels and London. Euralille was redesigned to received this biennial award bring a bright and warm interior decor, with wooden based on a qualitative audit flooring and lighting created by designers Fred&Fred. of 60 Dutch shopping centers, conducted by real-estate players CBRE, Locatus and Cyber. WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 June Triangle 2 Triangle 2 was approved by the Paris Council. The 180-metre high tower, designed by world renowned architects Herzog & de Meuron, will feature 70,000m² of offices, a hotel, TRIANGLE 2 a co-working space, retail, a health care centre and a nursery. 5 I September Corporate Governance Grand Prix Unibail-Rodamco received two major awards during the 2015 Corporate Governance Grand Prix organized by the financial newspaper L’AGEFI. The 2015 Corporate Governance Grand Prix UNIBAIL-RODAMCO and the 1st Prize for the good functioning of corporate bodies reflect the Group’s excellence in terms of governance and the constructive and open relationship between the Supervisory Board and the Management Board. GRAND PRIX September 2015 EPRA Financial BPR and Sustainability Awards Unibail-Rodamco’s leadership in transparency, clear financial reporting and sustainability was demonstrated by its 4th consecutive Gold Award of EPRA’s Best Practice Recommendations. WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 2015 HIGHLIGHTS September Green Star With a total score of 89% (vs. 62% for the sector), Unibail-Rodamco received the GRESB (Global Real Estate Sustainability Benchmark) “Green Star” label for the 5th consecutive year. The Group is first among European listed companies (1st out of 69), and became the 2015 Global Sector Leader achieving the best result worldwide within the retail sector (1st out of 123 companies). 6 I POLYGONE RIVIERA UNIBAIL-RODAMCO UNIBAIL-RODAMCO October POLYGONE RIVIERA Polygone Riviera is France’s first lifestyle mall, mixing a unique shopping environment, CENTRUM CHODOV contemporary art and leisure in the heart of the French Riviera. Exclusive and premium brands such as Reiss, Uniqlo, Forever 21, Primark and the department store Printemps are amongst those present. Introduced for the first time in Europe, The Designer Gallery™ is a unique concept with October 30 original creator brands and a dedicated space for art happenings. Other features of this exceptional st 1 in the world destination are the Dining Experience™, a 10 screen Centrum Chodov in Prague is the first mall in multiplex cinema, a casino, an open-air theatre and the world to receive a double “Outstanding” art work from internationally renowned artists. BREEAM certificate for the Asset and Building Management categories. Chodov performed particularly well in daily management, health and well-being, transport and waste management. WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 November MALL OF SCANDINAVIA Inaugurated on the 12th of November, Mall of Scandinavia attracted one million visits in only 17 days! The mall presents all of the Group’s innovation in a single place. Scandinavia’s largest shopping centre has been designed by renowned architect Gert Wingårdh and echoes the Nordic landscape with a spectacular ceiling replicating an aurora borealis. With 224 shops and restaurants, and a 240-metre long iconic “Flagship Avenue”, the centre has already changed the face of retail in the Nordics. MALL OF SCANDINAVIA 7 I November UNIBAIL-RODAMCO UNIBAIL-RODAMCO Ruhr Park Ruhr Park has been fully refurbished and now offers a brand new extension, the “South Mall”. These important extension and renovation works began in 2011. With white origami style canopies and iconic shop fronts, the newly designed shopping centre was awarded the 4 Star label. December RUHR PARK COP21 Viparis welcomed the COP21, the United Nations ‘Conference of the Parties’, at the Parc des Expositions de Paris-Le Bourget, the largest international conference ever organised. November The event, which recycled 100% of its waste and produced none, became the Prime time! first event of this magnitude to receive The Group launched its first TV commercial with the ISO 20121 certification. an Unexpected Video for the inauguration of Mall of Scandinavia. WorldReginfo - 8c342ea3-5cba-4f39-b783-dc05af031858 FACING A CHALLENGING MARKET, THE CONSISTENT EXECUTION OF OUR STRATEGY IS KEY TO OUR SUCCESS. CHRISTOPHE CUVILLIER CEO and Chairman of the Management Board 8 I Dear Shareholders, n 2015, despite uncertain macroe- conomic fundamentals across Europe and the terrorist attacks in UNIBAIL-RODAMCO UNIBAIL-RODAMCO Paris, Unibail-Rodamco once again exceeded expectations, by building on the steps taken during the last few years to streamline and upgrade the portfolio. The Group’s recurring Earnings Per Share (EPS) came to €10.46, representing an underlying growth of +8.3% from the recurring EPS for 2014 adjusted for the impact of the disposals effected in 2014 and 2015. Last year was a very successful one for Unibail-Rodamco, driven by solid like-for-like net rental income (NRI) growth, remarkable deliveries and strong leasing activity. The Group also achieved great results in terms of financing, with its average cost of debt reaching a new record-low of 2.2%.