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Unibail-Rodamco Westfield (ASX: URW) has released some financial information to the market today. URW announced that proportionate turnover of the business for the first quarter of FY20 is up 1.8 per cent from the prior corresponding period. This is largely attributable to the property development and project management revenue – partly offset by disposals completed in 2019 and the mandated cancellation of major events in March (however this is a small business segment) due to Covid-19.
Unibail-Rodamco Westfield (ASX: URW) released quarterly results to the market this morning. The results did not reflect the impact of COVID-19 as URW collects rents per quarter in advance across most of Europe and the US. (Source: CommercialRealEstate.com.au).
The coronavirus pandemic has not had a material financial impact on this quarter’s results because URW collects rents per quarter in advance across most of Europe and the US. Therefore, the impacts will be felt in the next quarter. Gross rental income in the US, Germany and Spain increased by 6.7 per cent, 3.1 per cent and 2.5 per cent, respectively. While Austria and Poland were impacted by government regulation suspending rental payments from the commencement of shutdowns.
URW continues to pay a strong dividend yield. We do expect near-term turbulence due to closures of shopping centres – which forms approximately 90% of its gross rental income. The business remains in our income report, as it is a dividend stock for the long-term.
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