(BFM Bourse) – The European shopping center giant has achieved a very good performance over the first six months of 2023. It is also confident for the current year, and is thus raising its target for its flagship indicator.
In a market dominated by risk aversion, Klépierre is moving against the tide. The European shopping center giant still won 1.1% on 24 euros, Wednesday around 4:00 p.m., the market appreciating the optimism displayed by the company for 2023 after a solid first half.
Klépierre announced rental income up 7.3% on a like-for-like basis to €484.1 million in the first half of 2023. Shopping centers managed by Klépierre saw footfall up 10% over the period, which contributed to an 8% increase on a like-for-like basis in sales generated by retailers.
As for the occupancy rate, this is also up at 95.7% compared to 94.7% in the first half of 2022. “The refocusing of brands on quality assets in the best catchment areas has supported demand for the rental of space in the group’s assets”, specifies Klépierre in its press release. The company also indicates that it recorded rental activity up 16% in the first half with the signing of 809 leases.
Quoted by AFP, financial director Stéphane Tortajada commented on these results, which “illustrate quite well the strong dynamic of shopping centers throughout Europe”, during a conference call.
2023 objectives raised
On the side of the operational indicators, all the lights are green. Between January and June, net current cash flow increased by 7.4% to stand at 1.21 euros per share compared to 1.13 euros per share in the first half of 2022.
At the end of June, the EPRA net asset value (ANR) of the commercial property company (indicator corresponding to the value of the company if all its assets were instantly sold and its loans repaid, used to calculate the discount at which securities are traded companies in the sector) amounted to 30.10 euros per share, down slightly over one year (30.60 euros at the end of June 2022).
Another indicator closely watched by the markets, debt, which fell by 9.7% over one year, to 7.4 billion euros against 8.12 billion euros in the first six months of the 2022 financial year. The level of indebtedness communicated by Klépierre takes into account the 248 million euros paid to shareholders as an interim dividend on March 30.
For 2023, Klépierre is raising its net current cash flow target after this solid first half. It forecasts that the amount of net current cash flow per share will continue to increase to reach 2.40 euros this year, an increase of 7% compared to the net current cash flow of 2.24 euros in 2022. This indicator was expected at 2.35 euros previously.
These new indications include the impact on costs of inflation expected in Europe for the second half of 2023 and the current level of financing costs, but do not include the potential impact of possible disposals in 2023.
In April, Barclays had already expressed its preference for Klépierre to the detriment of Unibail-Rodamco-Westfield (URW). The research department had, among other things, underlined in its note that Klépierre had better debt indicators than its rival URW.
According to Barclays, the company has managed to renew a significant proportion of tenants in its shopping centers (26%) since the pandemic, while maintaining an “effort rate” (the ratio of rents collected to merchants’ turnover). ) by 13%, a figure that should increase this year, according to her. The research department had thus raised its recommendation by two notches to bring it to “overweight”, the equivalent of “buying” from the British bank.
Sabrina Sadgui – ©2023 BFM Bourse
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