Unibail-Rodamco: terrorist attacks impacted retail trade in France

In the first nine months of the year, French-Dutch real estate group Unibail-Rodamco has taken advantage of the expansion and upgrading of its shopping malls in Europe to generate a 5% increase in revenue.

The group has stated in a press release that between January and September it reached a revenue of €1.5 billion, driven by a close to 10% increase of the rental income from its shopping malls.

The rental income rise has been especially marked in northern Europe, notably in Germany, where it reached 43.4%. In the same period, France posted an 8.3% growth, thanks chiefly to the expansion of the Forum des Halles retail complex in Paris, which is managed by Unibail-Rodamco.

The group underlined however that the terrorist attacks in Paris (November 2015) and Nice (July 2016) have had an impact on the French business of the retailers to which the group is renting stores and retail premises, especially in the Paris area.

Between January and September, retail trade revenue in France has remained "altogether stable", while it grew by nearly 5% a year earlier. Also, the late arrival of the summer season this year has affected the apparel sector.

"The terrorist attacks of November 2015 in Paris and July 2016 in Nice have had an extensive impact on consumer confidence and the tourist business in France," underlined Unibail-Rodamco.

The group has however confirmed its 2016 recurrent net income target of nearly €11.20 per share.