Europe’s largest real estate company, Unibail Rodamco, saw a dip in rental income over the first nine months of 2015 following an extensive disposal programme.
Income fell from €1.25bn (£905m) in the third quarter of 2014 to just under €1.24bn across the company’s portfolio, with a marked fall in income from its French shopping malls.
Rental income from the French assets fell from €523m in 2014 to €450m by the end of September 2015.
The sale of a number of non-core shopping centres in France was cited as the primary cause for the slump, along with disposals in the Netherlands and Spain.
The disposal programme affected the company’s office portfolio too, with almost all of the group’s Dutch office assets being disposed of in the period.
Tenant sales activity was up in the quarter, with all shopping centres posting a 4.8% rise in the first nine months of the year. In the third quarter, the company posted a 5.8% increase in tenant sales.
The tenant sales activity exceeded national averages in all of the regions that Unibail had a presence and puts the company on target for recurring earnings of between €10.25 and €10.45 per share.
