Klepierre stock edges up on solid Q1 performance

Published 24/04/2025, 10:14
Klepierre stock edges up on solid Q1 performance

Investing.com -- Shares of Klepierre (EPA:LOIM) (EPA:LI) nudged up 0.5% following the company’s first quarter earnings report, which showcased a like-for-like net rental income increase of 2.9%, surpassing indexation by 110 basis points. The growth was attributed to higher occupancy rates, rental uplifts, and a rise in additional revenues. Financial occupancy remained robust, with a slight year-on-year increase to 96.5%.

The French real estate company reported a steady performance with retailer sales increasing by 2% like-for-like, led by a strong showing in Iberia. However, there was a noted slowdown in Northwest and Central Europe, where retailer sales growth dipped to -1% like-for-like, a significant deceleration from the previous year. Footfall growth across the group was positive at 1%, though this too showed a decrease from the 2.5% growth in the prior year.

Klepierre’s balance sheet strength was highlighted by disposals totaling €74 million, which closed or were signed approximately 19% ahead of appraisal values. The net debt/EBITDA ratio stood at 7.1x, and the cost of debt remained low at 1.8%, with a slight increase of 10 basis points from the previous fiscal year. The company’s credit rating was upgraded to A- by both S&P and Fitch in 2025, reflecting its leading position in the European listed Real Estate sector.

For the fiscal year 2025, management reaffirmed its guidance for net current cash flow per share to be between €2.60 and €2.65. This forecast is slightly conservative compared to Bernstein’s current forecast of €2.67, which is just ahead of the Bloomberg median consensus of €2.64. Additionally, guidance for an EBITDA increase of 3% was confirmed, bolstered by recent acquisitions.

Bernstein analysts commented on the results, stating, "Klepierre reported solid operating performance overall, with the normalization of key operating metrics signaling the end of the post-covid rebound, lower inflation/indexation boost and possibly the timing of the Easter weekend."

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