Klépierre: FIRST-QUARTER 2022 BUSINESS REVIEW
PRESS RELEASE
FIRST-QUARTER 2022BUSINESS REVIEW
Paris — April 28, 2022
Klépierre, the European leader in shopping
malls, today reported its first-quarter business update(1). The
main highlights include:
- Total revenues up 4.7% at €359.5
million
- Shopping center gross rental income
up 9.7% like for like
- Net rental income up 88.3% like for
like
- Rent collection rate for Q1
expected to reach 96.7%
- Strong leasing activity with 372
leases signed, delivering flat reversion, stable occupancy at
94.7%
- February-March retailer sales(2) in
line (98%) with the level of sales of the undisturbed period of
2021 (June to December)
- Extension of Gran Reno (Bologna,
Italy) due to open in June 2022 (99% pre-leased)
- Strong balance sheet: net debt down
to €7.9 billion, 87%-hedged at fixed rates in 2022; net debt
to EBITDA of 8.7x, LTV of 38.3%; no refinancing needs before
end-2024
- Cash distribution for fiscal year
2021 of €1.70 per share on May 16, 2022
- Guidance confirmed for 2022 with
net current cash flow per share of between €2.30 and €2.35
KEY FINANCIALS
|
Q1 2022 |
Q1 2021 |
Reported Change |
Like-for-like Change |
In millions of euros, total share |
|
|
|
|
Gross rental income — Shopping centers |
272.9 |
262.5 |
+4.0% |
+9.7% |
Gross rental income — Other retail properties |
3.8 |
4.0 |
-3.9% |
|
Total gross rental income |
276.7 |
266.4 |
+3.9% |
|
Service charge income(a) |
64.5 |
62.1 |
+3.8% |
|
Management and development fees |
18.3 |
14.7 |
+24.1% |
|
Total revenues |
359.5 |
343.3 |
+4.7% |
|
|
|
|
|
|
Net rental income – Shopping centers |
217.8 |
127.3 |
+71.0% |
+88.3% |
(a) Service charge income corresponds to service
charges invoiced to tenants and cover general maintenance and
repairs, security, heating, cooling, lighting and cleaning of
common areas. Service charge income is included in total revenues
(IFRS 15). The figures for Q1 2021 were restated accordingly for a
total amount of €62.1 million.
OPERATING PERFORMANCE
Revenues
Over the first quarter of 2022, gross rental
income generated by shopping centers reached €272.9 million on
a total share basis, up 9.7% on a like-for-like basis.Management
and development fees amounted to €18.3 million, up 24.1%, mainly
due to the resumption of development projects.Overall, total
revenues for the three-month period ended March 31, 2022
amounted to €359.5 million, a 4.7% increase compared to the
same period last year.Net rental income generated by shopping
centers amounted to €217.8 million, up 88.3% on a
like-for-like basis, reflecting the fact that the first quarter of
2021 was adversely affected by store closures lasting an average of
1.5 months.Based on actual rent collection figures (93.1%, as
of April 27), the rent collection rate for the quarter is expected
to reach 96.7%.
Leasing update
In a similar vein to the rebound observed in the
second half of 2021, leasing activity returned to normal over the
quarter with 372 leases signed, more than double the number
concluded in the first quarter of 2021. Reversion on renewals and
relettings was virtually flat (-0.3%) over the period. Occupancy
rate is stable at 94.7% compared to
December 31, 2021.Klépierre continued to cement its
longstanding partnerships with key accounts, notably through deals
with Inditex for the opening of two new enlarged and refurbished
Pull & Bear stores at Plenilunio (Madrid, Spain) and
Aqua Portimão (Portimão, Portugal), which also bolstered its
fashion offering with the latest Stradivarius format. Highlights
for the period also included two important deals with Nike for the
opening of its first stores in our Swedish (Emporia) and Danish
(Bruun’s) malls. In addition, Rituals is set to join Poznan Plaza
(Poland) in September, while Calzedonia selected Blagnac (Toulouse,
France) and Sadyba Best Mall (Warsaw, Poland) for its latest
Tezenis and Intimissimi boutiques. Meanwhile, shoe retailer Group
Deichmann continued to roll out its concepts in Europe with the
opening of Deichmann stores at Belle Epine (Paris, France) and
Marieberg (Örebro, Sweden). Skechers also continued its
expansion with the opening of a new store at Porta di Roma (Roma,
Italy). In addition, the Group seized opportunities to develop
on-trend concepts through deals with Xiaomi, Danish brand Flying
Tiger Copenhagen and value retailer Normal, while Chinese lifestyle
brand Miniso signed up to open its first store in Klépierre’s
French portfolio at Créteil Soleil (Paris, France). Lastly, the
Group concluded a deal with Vans for two new stores in France
(Jaude in Clermont-Ferrand and Grand Place in Grenoble), while
hip eyewear specialist Jimmy Fairly is set to unveil a new flagship
at Blagnac in June.
Retailer sales and footfall
Due to store closure, comparison with Q1 2021 is
irrelevant. In the absence of significant seasonality, we compare
operational KPIs of Q1 2022 with the undisturbed period of 2021
(June to December).Over the first quarter of 2022, retailer sales
were resilient at 95% of 2021 while footfall were at the same
level. Retailer sales in January 2022 were hindered by certain
ongoing restrictions and historically high contaminations levels.
In February and March 2022, retailer sales are in line (98%) with
2021.By geography, Scandinavia once again led the way, with
retailer sales peaking in February. Conversely, the recovery tended
to be slower in France and Italy. The Netherlands & Germany
were also impacted by the Dutch lockdown through mid-January and
the German “2G” law limiting access to certain activities.On a
segment basis, household equipment again outperformed the Group
average, followed by culture, gifts & leisure and health &
beauty. The fashion segment was buffeted by headwinds in January
due to the Omicron variant but rebounded in February. Food &
beverage registered similar trends in January due to restrictions
on restaurants and accelerated in February.
DEVELOPMENT
During the first quarter of 2022, Klépierre
continued to focus on its main committed projects (Gran Reno
in Italy and Grand Place in France), representing the bulk of the
€36 million total capital expenditure invested over the
period.Following the completion of the refurbishment in the fall of
2021, work on the 16,700 sq.m. extension of Gran Reno
(Bologna, Italy) is progressing well. Opening to the public is due
for June 2022. Leasing is well on track with 99% of rents of
the extension already signed (77%) or in agreed form (22%).In
parallel, refurbishment work at Grand Place (Grenoble, France) was
delivered in March, as planned. The construction of the
16,200 sq.m. extension started in July 2021, and while
completion is not expected until the end of 2023, leasing is
progressing well with 82% of rents of the extension already signed
(56%) or in agreed form (27%).
DEBT AND FINANCING
As of March 31, 2022, consolidated net
debt stood at €7,935 million, down slightly on the end-2021
figure (€8,006 million), with a net debt to EBITDA ratio of 8.7x
and a loan-to-value(3) ratio of 38.3%. Meanwhile, the cost of debt
declined by 10 basis points at a low level of 1.1%. The
hedging profile(4) remains solid with 87% of net debt hedged at
fixed rates in 2022, breaking down as 67% fixed-rate debt and payer
swaps and 20% caps.Klépierre’s liquidity position(5) stands at
€2.5 billion and covers all the Group’s refinancing needs for
the next two years.
DISTRIBUTION
The Annual General Meeting, which took place on
April 26, 2022, approved a cash distribution in respect of
fiscal year 2021 of €1.70 per share. The distribution will take the
form of an equity repayment(6) paid in a single installment on
May 16, 2022.
OUTLOOK
In the context of the war in Ukraine and the
international sanctions against Russia, Klépierre regularly
monitors the impact of the situation on its business and the
broader economy. The Group operates neither in Ukraine nor in
Russia and does not expect that inflationary pressures created by
the situation will have a material impact on its cost structure or
on the costs of its committed development projects. Long-lasting
inflation could potentially affect consumer spending for certain
goods or services provided by tenants. Based on the current
macroeconomic projections, the Group has however not identified the
need to revise its financial forecasts for 2022.Accordingly,
Klépierre confirms its 2022 guidance as stated in its
February 16, 2022 earnings release and expects to
generate net current cash flow per share(7) of between €2.30 and
€2.35 in 2022.
TOTAL
REVENUES(a)
In millions of euros |
Total share |
|
Group share |
Q1 2022 |
Q1 2021 |
|
Q1 2022 |
Q1 2021 |
France |
105.6 |
98.8 |
|
85.9 |
80.4 |
Italy |
56.5 |
47.9 |
|
55.8 |
47.3 |
Scandinavia |
36.9 |
41.5 |
|
20.7 |
23.3 |
Iberia |
30.2 |
28.0 |
|
30.2 |
28.0 |
Netherlands
& Germany |
25.0 |
27.5 |
|
24.7 |
26.9 |
Central
Europe |
16.3 |
15.7 |
|
16.3 |
15.7 |
Other countries |
2.4 |
3.2 |
|
2.1 |
3.0 |
SHOPPING CENTER GROSS RENTAL INCOME |
272.9 |
262.5 |
|
235.8 |
224.6 |
Other retail properties |
3.8 |
4.0 |
|
3.8 |
4.0 |
TOTAL GROSS RENTAL INCOME |
276.7 |
266.4 |
|
239.6 |
228.6 |
Service charge income |
64.5 |
62.1 |
|
54.9 |
52.5 |
Management and development fees |
18.3 |
14.7 |
|
17.6 |
13.9 |
TOTAL REVENUES |
359.5 |
343.3 |
|
312.1 |
295.0 |
(a) Service charge income is included in total
revenues. The figures for Q1 2021 were restated accordingly for a
total amount of €62.1 million on a Total share basis and of
€52.5 million on a Group share basis (IFRS 15).
AGENDA |
|
May 12, 2022 |
Ex-distribution date |
May 16, 2022 |
Distribution payment |
July 26, 2022October 19, 2022 |
First-half 2022 earnings (after market close)Business review for
the first nine months of 2022 (after market close) |
INVESTOR RELATIONS CONTACTS |
MEDIA
CONTACTS |
Arnaud Courtial, Group Head of IR and Financial Communications+33
(0)6 74 57 35 12 — arnaud.courtial@klepierre.comPaul Logerot, IR
Manager +33 (0)7 50 66 05 63 — paul.logerot@klepierre.comJulia
Croissant, IR Officer+33 (0)7 88 77 40 37
—julia.croissant@klepierre.com |
Hélène Salmon, Group Head of Corporate and Internal
Communications+33 (0)1 40 67 55 16 –
helene.salmon@klepierre.comDelphine Granier, 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 €20.7 billion at December
31, 2021, 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, 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 is available on the Klépierre
website:www.klepierre.com
(1) The data disclosed in this
release, including those set out in the appendices, have not been
audited.(2) Change
is on a same-store basis, excluding the impact of asset sales and
acquisitions.
(3) Based on end-December 2021
portfolio valuations.(4) Calculated as the ratio of
fixed-rate debt (after hedging) to gross borrowings expressed as a
percentage.(5) 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
(€0.4 billion), committed and unused revolving credit facilities
(€1.7 billion, net of commercial paper) and uncommitted credit
facilities (€0.4 billion).(6) The distribution of €1.70
per share will take the form of an equity repayment within the
meaning of paragraph 1 of Article 112 of the French Tax
Code.(7) Excluding the impact of amortizing Covid-19
rent concessions (IFRS 16).
- PR_KLEPIERRE_2022_Q1_REVENUES
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