Analysis before buying or selling Unibail-Rodamco-Westfield shares

The Unibail Group share is one of the most closely followed stocks on the European market. If you also wish to trade this stock, we propose that you first learn, through a complete and detailed sheet, some essential elements and information about this stock on the stock market but also about the company Unibail with details of its activities, its main competitors and its strategic alliances. We will also give you the keys to a better understanding of this company and information that will allow you to make a good fundamental analysis with the advantages and disadvantages of this stock. You will then have all the cards in hand to set up your own price forecasts during your Unibail share trades live on the markets.

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Elements to consider before selling or buying Unibail-Rodamco-Westfield shares

Analysis N°1

First, keep in mind that there is a strong correlation between the level of interest rates, the business climate and the regulatory environment, so follow all news and announcements in this regard.

Analysis N°2

Other key indicators from the property market can help you anticipate fluctuations in the sector in which Unibail operates. These include vacancy rates for buildings, as well as the speed of sales of properties and stocks.

Analysis N°3

It should also be remembered that this group's results are delayed over several quarters with a sale in future state of completion or VEFA model specific to real estate. We will also be watching the development of the company's activities in certain European countries, including Germany, which represents a major challenge.

Analysis N°4

Of course, we strongly recommend that you follow the company's financial objectives by closely monitoring its results, particularly the annual growth in current earnings per share.

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General presentation of Unibail-Rodamco-Westfield

The Unibail Rodamco Westfield group is a French company specialising in commercial real estate. More specifically, it is currently the largest group in this sector in the world. Unibail is present in more than 13 different countries around the world and has a portfolio of assets worth more than €64 billion. Founded in 1968, Unibail currently employs over 3,639 people worldwide.

Its activities mainly concern the management, development and investment in large shopping centres located in major cities in Europe and the United States, as well as in large office buildings and convention and exhibition centres in the Paris region.

To better understand the Unibail Rodamco Group's activities, it is possible to divide them into different categories according to the share of net rental income they generate and in this way:

  • The management and operation of shopping centres represent the largest share of the group's revenues, accounting for almost 85% of rental income.
  • The management and operation of offices represent 8.9% of the rents received by the group.
  • Finally, the remaining 6.1% of rental income comes from the management and operation of congress and exhibition spaces.

It is also important to note that the Unibail Rodamco Westfield group is currently included in the French CAC 40 index, but is also listed on the Dutch AEX index in Amsterdam and on the Euro Stoxx50 index. The company is also considered reliable by various rating agencies which give it an A rating, such as Standard & Poor's and Fitch Ratings. Unibail is also a member of ERPA, the European association for listed real estate companies.

Analysis before buying or selling Unibail-Rodamco-Westfield shares
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The major competitors of Unibail-Rodamco-Westfield

Although the Unibail-Rodamco group is currently the undisputed leader in commercial real estate in Europe, it is nevertheless facing competition from other major companies that are trying to take market share from it. Here we find out who the opponents of this giant in this very specific sector are. Both of these companies are also listed on the stock exchange, so you can also trade their shares and find useful data about them. In order to trade Unibail-Rodamco shares, it is essential to carry out a good technical analysis of the share price as well as a complete fundamental analysis, including of course a serious study of the competition. In particular, you will monitor the results of each group, but also all their news with my new contracts and markets, alliances and partnerships or even plans for disposal or acquisition that can have a direct influence on the Unibail share price.

Bouygues

Unibail's main competitor at present is none other than the French group Bouygues and more specifically its subsidiary Bouygues immobilier. This group specialises in commercial and non-commercial property, building and public works, as well as in other areas such as telephony and the media, which are not in direct competition with the activities of the Unibail group.

Klépierre

Unbail's second competitor is also a French group Klépierre, which is also one of the leaders in retail real estate in Europe and stands out for its position as number one in the shopping centre sector. Klépierre is also one of Europe's leading shopping centre companies, with over €23.8 billion in shopping centre assets and operations in more than 16 different European countries.

Mercialys

The Mercialys group is another French property company specialising in shopping centres and holds a portfolio of 2,229 rental leases representing a value of more than €181.9 million in revenue per year. The total value of the assets held by Mercialys is €3.8 billion, including transfer taxes. The Group has been a listed real estate investment company since 2005. It is also listed on compartment A of the Euronext Paris market.


The major partners of Unibail-Rodamco-Westfield

In order to achieve the level of reputation and profitability it enjoys today, the Unibail group has of course worked carefully on its development strategy. But it has also been able to form alliances with other companies of different sizes and sectors of activity that have brought it added value, whether in terms of marketing or image. Here are some of the most recent alliances set up by this company.

To Good to Go

The first partnership we are going to talk about here is the one signed in 2018 between Unibail Rodamco and more precisely its subsidiary URW Link, which is the group's open innovation platform, and the company Too Good to Go in the sector of the fight against food waste. The commercial real estate group will thus deploy this company's soulution in 18 shopping centers located in France at the end of the first quarter of 2019. The main objective of this solution is to allow restaurant owners and food retailers to market the unsold products of the day at an attractive price. At the start of this agreement, a first test was carried out by Unibail in its Euralille shopping centre and showed very conclusive results since in just four months, more than 2,000 meals were saved, the equivalent of more than 1.3 tonnes of Co2 saved. Thanks to this new and ecological partnership, Unibail Rodamco Westfield wishes to develop this solution in all its French centres and save more than 50,000 meals in France each year.

The Void

More recently, in 2019, the Unibail Rodamco group also signed a strategic partnership with the company The Void, which aims to offer virtual immersion experiences in 25 of its flagships in the United States and Europe in the future. Retailtainment is becoming increasingly important in retail spaces and Unibail is therefore taking a growing interest in it. The Void will offer visitors to these centres the opportunity to enter virtual reality video games such as the Star Wars universe, the Disney film Ralph or the Ghostbusters universe. The first deployments of this type will take place in the United States and in the Westfield centres at the World Trade Center in New York, the San Francisco Center, Santa Anita in Los Angeles and San Diego. The device will then be tested in Paris, London, Amsterdam, Chicago, Oberhausen, San Jose, Stockholm and Vienna.

PSP Investments

Also in 2019, the Unibail Rodamco Westfiled group also made the announcement of the establishment of a strategic partnership through the acquisition of a 25% stake in an alliance with the aim of developing in London and by 2023, a vast rental program estimated at over 750 million euros. This contract was signed with the PSP Investments group, which is a subsidiary of the Canadian public pension fund, and with the real estate company QuadReal. Under this agreement, these two companies will each hold 37.5% of the capital of this partnership called Cherry Park, which should result in the construction of 1,200 homes in the immediate vicinity of the Westfield Stratford City shopping centre located in the north-east of the London conurbation.

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Positive factors for Unibail-Rodamco-Westfield shares
The factors in favour of a rise in the Unibail-Rodamco-Westfield share price:

The first advantage of Unibail as a listed company is of course its position in the commercial property market. The group enjoys a leading position in the European market and is the second largest in the world. This number one in European commercial real estate operates mainly in France but also in most European countries with a very large portfolio of shopping centres, offices and other commercial premises.

The strategy that the group has been implementing for some time is also reassuring to investors. Indeed, this strategy is based above all on a move upmarket in the company's property portfolio, which is currently approaching 40 billion euros, with mainly shopping centres located in the major European capitals and cities, but also office complexes in Paris, particularly in the La Défense district, and conference and exhibition centres in the Paris region.

The Unibail group also has the advantage of managing its assets very aggressively, in particular through quality partnerships with world-renowned retailers, which allows it to increase the value of its portfolio and also to increase its rents, which rise above inflation. It should also be noted that the Unibail group is constantly developing new projects. The amount currently allocated to these projects reaches 7 billion euros.

In terms of the financial health of this company, there are also some undeniable strengths since Unibail currently has the best financial profile in this sector of activity with a strategy of reducing the average cost of debt to 2.2% which was achieved in 2016 and an excellent rating from the rating agencies.

The frequent increase of the dividend with a mandatory distribution of 95% of the result to the shareholders according to the tax status as well as a high yield finally make it an asset appreciated by many stock market investors.

Negative factors for Unibail-Rodamco-Westfield shares
The factors in favour of a drop in the Unibail-Rodamco-Westfield share price:

Firstly, the Unibail group regularly disposes of assets which could quickly reduce its growth and slow down its share price at the same time.

Unibail is also under pressure to reduce office rents in some major cities and capitals such as Paris.

In addition, the group, which relies primarily on its shopping centres, could, in the long term, face increasing competition from major online retailers, which represent a major threat to the brands in its centres. This phenomenon may also be accentuated by the poor economic situation in Europe.

Finally, Unibail's share price also presents a significant risk due to its very high valuation, which calls for caution on the part of investors.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

How to invest in Unibail Rodamco shares?

If you want to invest in the Unibail Rodamco share price, there are several ways to do so. Firstly, you can buy the stock through a stock market product such as a share account or a PEA in order to receive dividends. But you can also speculate directly on its price variations by using CFD contracts or contracts for difference which are offered by online brokers.

Who are the major shareholders of Unibail?

Currently, the capital of Unibail is divided between various shareholders with 14.7% of the shares held by SSgA Funds Management Inc, 9.48% by State Street Global Advisors Australia Ltd, 7.63% by Dimensional Fund Advisors LP, 4.75% by APG Asset management NV, 3.40% by State Street Global Advisors, 2.86% by The Vanguard Group, 2.65% by Lowy Family, 2.05% by BlackRock Advisors, 1.84% by BlackRock Fund Advisors and 1.49% by Norges Bank Investment Management.

How to analyse the Unibail Rodamco share price?

To best analyze the Unibail Rodamco Westfield share price, you need to take several indicators into account. For example, you will use all the major data coming from this sector of activity, data concerning this company such as its results and important news and you will of course carry out in parallel a technical analysis of its price over the desired period in order to benefit from convincing upward or downward signals.

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