The Franco-Dutch Unibail-Rodamco, faced with a lackluster economic environment, will make the cash to shareholders to try to offset the stagnation of its results.
The leading European commercial real estate offers and distribute 1.8 billion euros in cash to shareholders, or 20 euros per share in respect of a return of capital, "he said Wednesday in release.
This operation, which takes the form of a refund procedure premium contribution, roughly the amount of sales, net of acquisitions made since the merger in 2007 between Unibail and Rodamco, the company said.
Unibail-Rodamco has sold four billion euros of assets since the merger and purchased 2.4 billion euros.
The transaction will be subject to an extraordinary general meeting on September 8 for a payment on October 12 and will be funded by four billion euros in credit lines.
Meanwhile, the company said it benefited from renewed investor interest in quality real estate assets to accelerate asset sales and further focus on its biggest shopping malls.
In seven months, Unibail-Rodamco has sold 1.2 billion euros of assets, with an average premium of 9% compared to their appraised values.It plans to sell another 500 million by the end of the year and 2.5 billion by 2012, the Netherlands, but also in France, Spain and Scandinavia.
The land group aims to reduce the number of shopping centers from 95 to 60 by 2012.
NO IMPROVEMENT FOR HIGH
This strategy of refocusing the group on its greatest asset and most cost reflects the uncertainty about the future growth and household consumption.
"I see no reason for a big improvement in overall consumption, but our schools should do better," said Guillaume Poitrinal, CEO, a few journalists."I'm not optimistic about the economic situation in France, but our particular positioning can help us gain market share," he added.
Some analysts also see it as an uncertainty about the continued recovery in property prices.
"Having to pay a special dividend and accelerate disposals may mean that the company does not believe too much in pursuit of the rising property market," commented one of them, who would not be identified.
The company has not yet abandoned its development projects and plans to invest 1.5 billion euros by 2015 to modernize its existing facilities and 5.7 billion for new projects, of which 1.3 billion are actually incurred.He did not rule out further acquisitions.
After the transaction, Unibail will remain the land the least indebted in Europe with a debt ratio increased from 31% to 40%.
Standard & Poor's revised after the announcement, his outlook on the company, which went from stable to negative, while confirming her an "A" long term "A-1 'short-term, and Fitch, which replaced Moody's at the request of the group has assigned a grade "A" long-term debt IDR (issuer default rating).
RESULTS NO SURPRISE
For the first half of 2010, Unibail-Rodamco has published a recurring earnings per share of 4.70 euros, up 0.4% in the first half of 2009, with net rental income of 624 million, down 1 6% (+0.4% at constant perimeter).
Its net asset liquidation stood at 131.00 euros per share, up 2.2% from late 2009 its assets increased by one billion euros to 23.3 billion, ending a two- year decline in the value of its assets.
According to a consensus calculated by the editor of Reuters estimates from a dozen analysts, estimates ranged to 4.51 euros for recurring earnings per share and 130.06 euros for the net asset value (NAV ).
The property has confirmed its growth target of zero to 2% of its recurring earnings per share in 2010, including the impact of capital repayment, after rising 7.1% in 2009, mainly because of low indexation of rents.
The single European property to be included in the Eurostoxx 50, with a market capitalization of 12.5 billion euros, closed up 2.79% in the Paris Bourse to 140.100 euros before the publication of these figures.
Since the beginning of the year, the security loses 8.8%, after rising 44% in 2009.
