Experimental feature

Listen to this article

00:00
00:00
Experimental feature
or

Shopping centre owner and operator Klépierre has posted its best performance since 2012 as the turnround strategy launched five years ago starts to bear fruit.

CAC 40-listed Klépierre said on Monday that net current cash flow per share increased 6.8 per cent to €2.31 last year, while total revenues rose 0.4 per cent to €1.3bn. It also increased its dividend by 7.1 per cent to €1.82.

The group said that in France and Belgium, which together account for 36.8 per cent of its shopping centre rental income, like-for-like net rental income rose 3 per cent. Klépierre said that overall, the total like-for-like value of its property portfolio was €22.8bn, a 4.5 per cent increase during the 12 months.

“It’s the outcome of a very clear strategy over the past five years to transform the company,” said Jean-Marc Jestin, chairman of the Klépierre executive board, in its first full-year results since he was promoted to the position in November. The group’s shares have risen more than 45 per cent in the past five years.

Klépierre operates in 16 countries across Europe, and its malls include household names such as Zara, H&M, Sephora and Primark. Just over a year ago it gained a place in France’s blue-chip CAC 40 index, replacing EDF, the mainly state-owned electricity group.

As part of its five-year turnround, Klépierre rebalanced its portfolio, selling more than €5bn in assets and acquiring €8bn, as it reduced the number of shopping centres it owns and focused on affluent malls in urban areas to benefit from strong demographic growth. It sold all the office buildings it owned, as well as 126 retail outlets attached to Carrefour superstores.

Copyright The Financial Times Limited 2017. All rights reserved.
myFT

Follow the topics mentioned in this article

Follow the authors of this article

Comments have not been enabled for this article.