Klepierre's revenue and market capitalization

  •   DEHOUI Lionel

Founded in 1990, Klépierre is a French company recognised as one of the leading players in the European retail property market. The group is also the European leader in shopping centres. It has large shopping centres in twelve countries in continental Europe. In 2020, the company's business was disrupted by the coronavirus health crisis. This impacted its financial results. Details in the lines to follow.

Klepierre's revenue and market capitalization
Image copyright: David van Keulen

Performance over the full year 2020

For the full twelve months of the 2021 financial year, Klépierre achieved total revenue of EUR 1,130.8 million, compared with EUR 1,325.5 million in 2019. It therefore reported a 14.7% year-on-year decline. Net rental income amounted to €846.2 million, compared to €1,130.6 million in the previous year, a decrease of 25.2%.

In 2020, retailer turnover (excluding closure days) was 89% of its 2019 level. This illustrates in particular the resilience of the group's business in a difficult context marked by the Covid-19 pandemic. This performance also reflects the rapid rebound noted after the containment measures adopted in many European countries.  

At the end of December 2020, net current cash flow stood at 2.05 euros per share. This is a decrease of 77 cents compared to the previous year, or 27.4%. This decrease is mainly due to the negative effects of the health crisis. Excluding the impact of the deferral of rent concessions under IFRS 16 (EUR 0.08 per share), net current cash flow was EUR 1.97 per share.

 

Klépierre's financial structure at the end of 2020

At the end of the 2020 financial year, Klépierre's consolidated net debt amounted to EUR 9,054 million, compared with EUR 8,830 million at 31 December 2019. 8,830 million at 31 December 2019, an increase of EUR 224 million year-on-year. The debt ratio (LTV) stood at 41.4% at the end of December 2020. It increased by 140 basis points compared to its level at the end of June 2020.

At the end of 2020, the net debt to EBITDA ratio stood at 10.8x. On the other hand, the financial expenses coverage ratio (EBITDA/fiscal expenses) remained at a high level of 7.3x at the end of December 2020. At the same date, the company's liquidity position reached 3.2 billion euros.

This should enable the group to cover all refinancing needs until May 2024. In addition, during 2020, the average cost of debt continued to fall. It reached 1.2%, compared with 1.5% the year before.

 

Klépierre's results for the first quarter of 2021

For the first six months of 2021 as a whole, Klépierre's total revenue amounted to EUR 475.4 million, compared with EUR 616.0 million in the first half of 2020. Net rental income from shopping centres amounted to EUR 315.9 million in H1 2021, compared with EUR 503.1 million in the same period a year earlier.

Since the reopening, retailer turnover has rebounded strongly compared to the previous year. In fact, it has increased by 15% in H1-2021 compared to H1-2020. As at 30 June 2021, Europe's leading shopping centre operator posted a net current cash flow of €248 million (total share). This corresponds to EUR 0.72 per share.

At the end of the half year under review, the company's consolidated net debt amounted to 9,146 million euros, compared to 9,054 million euros at the end of December 2020. 9,054 million at the end of December 2020. It should be noted that this sum does not take into account the costs (435 million euros) related to the disposals carried out in Norway. As a reminder, these were finalised at the beginning of July 2021.

The debt-to-equity ratio (LTV) stood at 42.6% at the end of June 2021, compared with 41.4% six months earlier. At the end of the first half of 2021, the company's liquidity position amounted to EUR 2.2 billion, including EUR 1.8 billion in confirmed credit lines. With this amount, Klépierre will be able to cover all its refinancing needs until May 2024.

 

Quarterly results in the third quarter of 2021

In the third quarter of 2021, Klépierre's total revenues reached EUR 283.9 million, compared with EUR 302.5 million in Q3-2020. Gross rental income from shopping centres for the period as a whole was EUR 261.3 million (total share), compared with EUR 281.9 million at the same time last year.

Net rental income from shopping centres amounted to 266.0 million euros in Q3-2021, compared with 239.4 million euros a year earlier. 239.4 million in Q3 2021, an increase of 11.1% compared to Q3 2020. The turnover of retailers in the company's shopping centres increased by 6% in Q3-2021 compared to the previous year. It stood at 94% of the 2019 level.

At the end of Q3 2021, Klépierre posted consolidated net debt of EUR 8,563 million. It decreased by EUR 583 million compared to its level at the end of June 2021. This decrease was driven by the proceeds from completed disposals and higher rent recoveries.

On the other hand, the cost of debt was stable at a low level of 1.2%. At 30 September 2021, the group's liquidity position is estimated at EUR 2.6 billion. This is an increase of EUR 400 million compared to the level at the end of the first half of 2021.

 

About Klépierre's dividend and market capitalisation

Klépierre's Annual General Meeting of Shareholders was held on 17 June 2021. During this meeting, the company decided to propose a dividend of 1 euro per share for the 2020 financial year. The company thus reduced the coupon of EUR 2.20 per share that it had distributed for the previous year. This was due to the Covid-19 pandemic.

Klépierre is also present on the financial markets. The company is listed on the Euronext Paris stock exchange. At the end of December 2021, its market capitalisation was over EUR 5 billion.