Inflation
2022 saw a global increase in inflation with differences across countries.
URW rents are indexed on a yearly basis in Continental Europe. 2022 indexation contribution to like-for-like NRI
performance was +3.6%, reflecting 2021 inflation due to the usual time lag between contractual indexation and inflation. In
the UK and the US, leases are not tied to actual CPI figures; the Group benefitted from inflation through Sales Based Rents.
2022 inflation10 amounted to an average of +8.4% in the countries where the Group operates, including +8.4% in Continental
Europe, +9.1% in the UK and +8.0% in the US
Footfall
US Footfall
In the US, 2022 footfall reached 94% of 2019 levels and 96% excluding Westfield World Trade Center and Westfield San
Francisco Centre in which footfall remains affected by work from home policies and security issues. During the second half,
footfall continued to improve, from 93% in H1-2022 to 95% in H2-2022
UK 2022 footfall reached 89% of 2019 levels, with an improvement in H2 at 91% (vs. 86% in
H1).
In Europe, 2022 footfall continued to improve to 88% of 2019 levels, including 91% in H2-2022 (vs. 86% in H1). France
outperformed
Sales
European tenant sales
2022 sales showed strong performances, reaching 100% of 2019 levels, with Continental Europe at 101% and the UK at 96%
on the back of the recovery observed since Q2-2022. Tenant sales improved between H1 (98% of H1-2019 sales) and H2
(102% of H2-2019 sales), exceeding in H2 the 2019 sales levels in Continental Europe at 104%, ahead of the Group’s
expectation (vs. 98% in H1).
In Q4-2022, tenant sales remained strong, reaching 102% of Q4-2019 levels, including 104% for Continental Europe and
94% for the UK. All regions in Continental Europe except Austria (99%), were above 2019 levels, with Central Europe,
Spain and France reaching 114%, 104% and 103% of 2019 levels, respectively.
US tenant sales
In the US, tenant sales have consistently outperformed pre-COVID levels since H1-2021. Overall, 2022 sales came to 108%
of 2019 levels, driven by the Flagships at 117%, with the Regionals at 100% and partly offset by the Central Business District
(“CBD”)6
assets at 74%. Sales at Central Business District assets continued to be affected by the issues described earlier.
H2-2022, sales came to 107% of 2019 levels, with the Flagships at 115% and the Regionals at 99%, and to 110% of 2019
levels in H1 (119% for Flagships and 100% for Regionals).
In Q4-2022, sales reached 102% of 2019 levels, with the Flagships at 111% and the Regionals at 95%.