UNIBAIL-RODAMCO SE: HALF-YEAR RESULTS 2012

Paris, Amsterdam, July 23, 2012

Press Release
  
HALF-YEAR RESULTS 2012
  
Accelerating differentiation
Unibail-Rodamco's H1-2012 recurring earnings per share (EPS) of €4.94 represent a +4.2% increase from H1-2011 driven by robust like-for-like performance across all the Group's businesses, a continued low average cost of debt and a relentless focus on cost control.

"Today's results demonstrate the success of the Group's strategic focus on large and high footfall shopping centres and the active management of its portfolio. Unibail-Rodamco is accelerating the differentiation of its malls by strengthening partnerships with international premium retailers and introducing new differentiating brands, re-designing its assets and deploying a broad range of digital tools. The highly successful opening of Confluence in Lyon in April 2012 with 2.3 Mn visits in 3 months illustrates the appeal to customers of outstanding destinations offering a unique shopping experience." Guillaume Poitrinal, CEO and Chairman of the Management Board.

Resilient operating performance
Despite adverse economic conditions, sales by tenants in Unibail-Rodamco's shopping centres increased by +2.1% through May 2012, outperforming national sales indices by 320 bps over the same period. This continued outperformance reflects the increasing appeal of large, prime shopping malls located in major European cities with superior purchasing power. Net Rental Income (NRI) in the shopping centre segment grew +4.6% in total and +4.4% on a like-for-like basis. The Group signed 756 leases in H1-2012, accelerating in particular the number of signings with international premium retailers (85 new leases, a 42% increase over the same period last year) including leading brands such as Lego, Nespresso, Inglot, Chipotle, SuiteBlanco and Thomas Sabo. The appeal of Unibail-Rodamco's shopping centres is illustrated by the rental uplifts of +23.0% on re-lettings and renewals realised this semester and limited vacancy of 2.1%.
The office sector showed resilience in H1-2012 with like-for-like net rental income growing +1.7% despite a challenging environment. Total NRI fell -15.3% due notably to disposals in 2011.
The Convention and Exhibition business performed well during the first 6 months of this year with good activity levels across the three business lines: shows, congresses and corporate events.

Asset values increase driven by strong rental growth
The gross market value of the Group's assets as of June 30, 2012 stood at €27.5 Bn, up +1.5% like-for-like compared to December 31, 2011, mainly driven by rental effect. Going Concern Net Asset Value per share was €143.00, broadly flat compared to December 2011. The Group's EPRA triple net asset value per share was stable at €130.70, despite the negative impacts of the €8.00 per share distribution in May this year and of the mark-to-market of debt and financial instruments.
The net initial yield of the shopping centre portfolio strengthened by 10 basis points to 5.4%, while the net initial yield for occupied offices increased by 30 basis points to 6.9%.

Deliveries and development projects
In H1-2012, the Group delivered 7 projects, including the Confluence shopping centre in Lyon. In addition, the Group expects to deliver twenty projects in the next 18 months, representing about
300,000 m² of GLA as the pipeline assembled in the last five years starts to bear fruit. The Group also retains significant execution flexibility (52% by Total Investment Cost of the €6.6 Bn of development projects). Retail projects to be delivered in the next 12 months are 92% pre-let, ensuring income visibility.

Expanding in Germany
On June 14, 2012, Unibail-Rodamco entered into agreements with Perella Weinberg Real Estate Fund to acquire (i) a stake in mfi AG, Germany's 2^nd largest operator, investor and developer and (ii) a 50% stake in Ruhr-Park, one of Germany's largest shopping centres. The total purchase price amounts to €383 Mn, which reflects an enterprise value of mfi AG of €1.1 Bn and an asset value of €380 Mn for 100% of Ruhr-Park. The Group expects to close these transactions in Q3-2012.

Historically low cost of debt
During the first 6 months of 2012, Unibail-Rodamco raised €1.25 Bn of medium to long-term financing in the bond and bank markets at attractive conditions, taking advantage of the Group's strong balance sheet. The average cost of debt for the Group in the first half decreased to 3.5%, compared to 3.6% for the full-year 2011. Net financial debt amounted to €10.6 Bn as of June 30, 2012, reflecting a Loan-To-Value ratio of 38%. The Interest Coverage Ratio was unchanged compared to year-end 2011 at 3.6 times. Availability under undrawn credit facilities stood at €3.5 Bn.

Outlook
For 2012, the Group remains positive in 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. In addition, the cost of debt is contained at low levels. Although the impact of the current Euro zone crisis on consumption and retailers cannot be ignored, the Group is confident in its ability to meet its recurring EPS growth target of 4% for full year 2012.

Governance
Michel Dessolain, Chief Strategy Officer and Member of the Management Board, has been promoted Managing Director of the newly-created "Unibail-Rodamco LAB". As of October 15, 2012, he will resign from the Management Board. In this new position, he will use his 25-year experience in operating, developing and designing iconic shopping centres to advance the differentiation of the Group's shopping malls and create the future landmarks of the industry.
In addition, Rachel Picard, Supervisory Board Member, resigned from her current responsibilities as of July 23, 2012, following her appointment as Executive Manager of Gares & Connexions (SNCF Group).

Figures may not add up due to rounding

The appendix to the press release and the half-year results presentation are available on the Group's website www.unibail-rodamco.com.
Audit procedures completed, audit report issued today.
  
For further information, please contact:

Investor Relations
Fabrice Mouchel                       Paul Douay
+33 1 53 43 73 03                     +33 1 76 77 57 40

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 €27.5 billion on June 30, 2012. 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 the large shopping centres of major European capital 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 CAC40, AEX and EuroStoxx 50 indexes. It benefits from an A rating from Standard & Poor's and Fitch Ratings.
For more information, please visit our website: www.unibail-rodamco.com