KLÉPIERRE ON TRACK TO MEET ITS 2023 NET CURRENT CASH FLOW GUIDANCE
OF AT LEAST €2.40 PER SHARE (+7% Y.O.Y)
PRESS RELEASE
KLÉPIERRE ON TRACK TO MEET ITS 2023 NET CURRENT
CASH FLOW GUIDANCE OF AT LEAST €2.40 PER SHARE (+7% Y.O.Y)
Paris — October 20, 2023
Klépierre, the European leader in shopping malls
delivered a strong growth performance over the first nine months of
2023(1).
- 9-month like-for-like(2) net rental
income up 8.6%
- Steady operating KPIs:
- 9-month retailer sales(3) up 7%
like-for-like
- 1,197 leases signed, up 21%
year-on-year, with a 4.1% positive reversion rate on top of
indexation
- Financial occupancy rate at
95.8%
- Robust credit metrics:
- Net debt at €7,454 million, below
the December 2022 level, after the payment of the full cash
dividend
- Net debt to EBITDA of 7.8x and ICR
at 8.4x
- Interest rate hedging at 100% in
2023 and 98% in 2024
- Double investment grade: A- rating
assigned by Fitch and BBB+ stable outlook by S&P
- €310 million in additional
financing executed in the third quarter, bringing the total
additional financing raised year-to-date to €1.5 billion
- 2023 net current cash flow guidance
confirmed at least at €2.40 per share, 7% higher than 2022(4)
- Ranked first in the “Europe Retail
Listed” category by GRESB for the fourth year running and included
in the CAC40 ESG index
OPERATING PERFORMANCE
Retailer sales(5) and footfall
On a like-for-like basis, total retailer
sales(5) at Klépierre’s shopping centers increased by 7% over the
first nine months of the year compared to the same period in 2022,
while footfall was up 8.0%.By geographic area, Netherlands &
Germany (up 14%) led the way in terms of retailer sales, followed
by Iberia (up 10%), while Scandinavia was up 8%. Retailer sales
rose by 5% in France, in line with the performance in the first
half of the year.By segment, Food & beverage posted the
strongest performance (up 14%) while the “Other” segment,
comprising mainly movie theaters, fitness centers and travel
agencies (up 13%) also outperformed the Group average. Health &
beauty was up 10%, while Household equipment was down slightly by
3%.
9-month change in retailer sales by geography compared to
2022(5) |
Country |
Like-for-like change |
Share in total reported retailer sales |
France |
+5% |
40% |
Italy |
+5% |
25% |
Scandinavia |
+8% |
12% |
Iberia |
+10% |
10% |
Netherlands &
Germany |
+14% |
7% |
Central Europe |
+6% |
6% |
TOTAL |
+7% |
100% |
9-month change in retailer sales by
segment compared to
2022(5) |
Segment |
Like-for-like change |
Share in total reported retailer sales |
Fashion |
+5% |
34% |
Culture, gifts
& leisure |
+6% |
21% |
Health &
beauty |
+10% |
15% |
Food &
beverage |
+14% |
12% |
Household
equipment |
-3% |
11% |
Other |
+13% |
7% |
TOTAL |
+7% |
100% |
Leasing activity
Over the first nine months of the year, the
Group signed 1,197 leases (up 21% compared to the same period in
2022), enriching its retail offering and confirming the relevance
of its platform for retailers. Dealflow included 909 renewals and
re-lettings, with a 4.1% positive reversion rate, on top of
indexation. As of September 30, 2023, the financial occupancy rate
stood at 95.8%, up 10 basis points compared to June 30, 2023, while
the occupancy cost ratio remained stable at 12.8%.
Revenue
In millions of euros, total share |
9M 2022 |
9M 2023(6) |
Like-for-like change(7) |
Total gross rental income |
805.6(8) |
857.8 |
|
|
Service charge income(9)Management and development fees |
132.454.0 |
133.551.4 |
|
|
Total revenues |
992.0 |
1,042.7 |
|
|
|
|
|
|
|
Total net rental income |
657.4(10) |
736.7 |
+8.6% |
|
Net rental income
amounted to €736.7 million(6), up 8.6% on a like-for-like basis,
driven notably by a strong positive indexation effect and higher
ancillary income (turnover rents, parking lot revenues and
specialty leasing). Growth was also supported by disciplined
management of property charges which translated into an improvement
in the ratio of gross to net rental income.Klépierre’s total
revenue for the first nine months of 2023 amounted to €1,042.7
million(6).
DEBT AND LIQUIDITY
As of September 30, 2023, consolidated net debt
was down to €7,454 million, versus end-2022, after the payment of
the full cash dividend. The average maturity of the Group’s debt
was 6.4 years and the hedging rate(11) was 100% for 2023 and 98%
for 2024.On top of the €1.2 billion in financing executed in the
first half, the Group raised a total amount of €310 million in
additional secured green loan and new unsecured notes on its
existing bonds over the quarter. The Group’s liquidity position
remained strong at €2.8 billion(12).Consequently, Klépierre’s
credit metrics at September 30, 2023, remained solid:
- Net debt to EBITDA
ratio stood at 7.8x;
- Interest coverage
ratio (ICR) at 8.4x; and
- Average cost of
debt at 1.4%.
KLÉPIERRE ONCE AGAIN RECOGNIZED AS A WORLDWIDE LEADER IN
SUSTAINABLE DEVELOPMENT
The Group unveiled its new Act4Good® strategy in
February 2023, and joined Euronext’s CAC 40 ESG in mid-September.
This stock market index brings together the 40 most responsible
listed companies based on their Moody’s ESG rating. Klépierre is
already a member of the CAC SBT 1.5, another Euronext stock market
index comprising companies whose greenhouse gas emissions reduction
targets, and social and governance policies contribute to limiting
global warming to 1.5°C, as approved by the United Nations-backed
Science Based Targets initiative.
For the fourth year running, Klépierre was also
recognized by the Global Real Estate Sustainability Benchmark
(GRESB) as Europe’s leading listed retail real estate company.
GRESB, which evaluates the CSR practices of real estate companies
worldwide, has also maintained Klépierre’s 5-star rating, awarded
to the top 20% best-performing companies across all categories.
OUTLOOK
Based on the first nine months’ performance,
Klépierre is confirming its full-year guidance and expects net
current cash flow of at least €2.40 per share in 2023, representing
growth of 7% compared to the amount of €2.24(13) in 2022.Assuming
no major deterioration in the geopolitical and macroeconomic
environment having a significant impact on household consumption,
the main assumptions underpinning the guidance are: - Retailer
sales at least equal to 2022; - Stable occupancy; and - Stable
collection rate. The guidance also factors in the impact on costs
of projected inflation in Europe for the last three months of 2023
and the current funding cost levels but does not include the impact
of any further disposals.
AGENDA |
|
February 14, 2024 |
2023 full-year earnings (after market close -
provisional) |
INVESTOR RELATIONS CONTACTS |
MEDIA
CONTACTS |
|
Paul Logerot, Group Head of IR and Financial
Communication +33 (0)7 50 66 05 63 —
paul.logerot@klepierre.comHugo Martins, IR Manager
+33 (0)7 72 11 63 24 — hugo.martins@klepierre.comTanguy
Phelippeau, IR Officer +33 (0)7 72 09 29 57
—tanguy.phelippeau@klepierre.com |
Hélène Salmon, Group Head of Communication +33 (0)6 43 41 97 18 –
helene.salmon@klepierre.comWandrille Clermontel, Taddeo +33 (0)6 33
05 48 50 – teamklepierre@taddeo.fr |
|
ABOUT KLÉPIERRE
Klépierre is the European leader in shopping
malls, combining property development and asset management skills.
The Company’s portfolio is valued at €19.4 billion at June 30,
2023, and comprises large shopping centers in more than 10
countries in Continental Europe which together host hundreds of
millions of visitors per year. Klépierre holds a controlling stake
in Steen & Strøm (56.1%), Scandinavia’s number one shopping
center owner and manager. Klépierre is a French REIT (SIIC) listed
on Euronext Paris and is included in the CAC Next 20 and EPRA Euro
Zone Indexes. It is also included in ethical indexes, such as
Euronext CAC 40 ESG, CAC SBT 1.5, MSCI Europe ESG Leaders,
FTSE4Good, Euronext Vigeo Europe 120, and features in CDP’s
“A-list”. These distinctions underscore the Group’s commitment to a
proactive sustainable development policy and its global leadership
in the fight against climate change. For more information, please
visit the newsroom on our website: www.klepierre.com
This press release and its appendices together
with the earnings presentation slideshoware available in the
“Publications section” of Klépierre’s Finance page:
www.klepierre.com/en/finance/publications
(1) The data disclosed in this release,
including those set out in the appendices, have not been
audited.(2) Like-for-like data exclude the contribution of new
spaces (acquisitions, greenfield projects and extensions), spaces
being restructured, and disposals completed since January 2022 and
are based on the same accounting scope.(3) Change is on a
same-store basis, excluding the impact of asset sales, acquisitions
and excluding Turkey.(4) Excluding the positive non-recurring
income statement impact related to the 2020 and 2021 account
receivables (€0.30) and the cash flow generated by divested assets
(€0.08), net current cash flow per share reached €2.24 in 2022.(5)
Change is on a same-store basis, excluding the impact of asset
sales, acquisitions and excluding Turkey.(6) Excluding the positive
non-recurring income statement impact related to the 2020 and 2021
account receivables(7) Like-for-like data exclude the contribution
of new spaces (acquisitions, greenfield projects and extensions),
spaces being restructured, and disposals completed since January
2022 and are based on the same accounting scope.(8) Excluding the
positive non-recurring income statement impact related to the 2020
and 2021 account receivables (€22.0m) and the gross rental income
generated by divested assets (€27.4m).(9) Service charges invoiced
to tenants. Service charge income is included in total revenue
(IFRS 15). (10) Excluding the positive non-recurring income
statement impact related to the 2020 and 2021 account receivables
(€52.0m) and the net rental income generated by divested assets
(€25.2m).(11) Calculated as the ratio of fixed-rate debt (after
hedging) to net debt expressed as a percentage.(12) The liquidity
position represents the total financial resources available to a
company. This indicator is therefore equal to the sum of cash at
hand at the end of the period (€130 million), committed and unused
revolving credit facilities (€2.3 billion, net of commercial paper)
and other credit facilities (€321 million).(13) Excluding the
positive non-recurring income statement impact related to the 2020
and 2021 account receivables (€0.30) and the cash flow generated by
divested assets (€0.08), net current cash flow per share reached
€2.24 in 2022.
- PR_KLEPIERRE_2023_Q3_EARNINGS
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