press release
BUSINESS REVIEW FOR THE FIRST
QUARTER OF 2017
Paris - April 26, 2017
KEY FINANCIALS
In € millions, Total-Share basis |
Q1 2017 |
Q1 2016 |
% Change |
Gross rental income - Shopping centers |
293.2 |
291.9 |
+0.4 |
Gross rental income - Other activities |
7.3 |
7.9 |
-8.6 |
Total gross rental income
total |
300.4 |
299.8 |
+0.2 |
Management, administrative and other income (fees) |
20.2 |
22.9 |
-12.0 |
Total revenues |
320.6 |
322.8 |
-0.7 |
OPERATING PERFORMANCE Total revenues
For the first quarter of 2017,
gross rental income (total share) rose to €300.4 million from
€299.8 million for the same period last year, as the
contribution from organic growth offset the impact of disposals
(-€6.3 million).
Shopping center gross rental income (GRI, total share) increased by
0.4%, or €1.3 million, to €293.2 million in the period.
Disposals completed in 2016 and early 2017 had a negative
€5.9 million impact on shopping center GRI while the
contribution from index-linked adjustments was +0.7%.
GRI from other activities amounted to €7.3 million.
Management, administrative and related income (fees) totaled
€20.2 million, down €2.7 million from the first quarter
last year due to seasonal effects.
Total revenues for the first quarter of 2017 reached
€320.6 million, virtually unchanged versus the same period
last year.
Retailer sales
On a rolling twelve-month basis,
retailer sales were up by 0.6%. On a like-for-like portfolio
basis,1 retailer sales in Klépierre's shopping malls declined by
0.6% in Q1 2017 compared to the same quarter last year, mainly due
to negative calendar effects: one less Saturday in January and one
less working day in February 2017. This year, after a downward
trend in January, broadly stable in February, retailer sales
recovered in March. These figures benefited from no contribution of
extensions or recent developments.
In this context, retailers in France (-1.3%), Italy (-2.2%) and
Scandinavia (-0.6%) posted slower sales in the first quarter while
Iberia (+0.4%) and CEE & Turkey (+6.6%) remained solid. In
France, consumers slowed spending ahead of the spring elections
while, in Italy, retailer sales were impacted by increased
competition in Milan.
Leasing activity
Leasing activity was very dynamic.
In the first quarter, Klépierre signed a total of 523 leases,
representing €10.0 million in additional annual minimum
guaranteed rents (excluding contributions from extension and
greenfield projects), a clear acceleration compared to the first
quarter of 2016 (386 leases and €4.2 million in additional
MGR).
Klépierre also accelerated the implementation of its "Destination
Food" strategy, with the introduction of innovative concepts such
as Five Guys (Hoog Catharijne, Alexandrium), Grom (Val d'Europe,
Prado), Johnny Rockets (Lonato), Leon (Hoog Catharijne) and
Wagamama (Prado). New dedicated food areas in Hoog Catharijne
(City Square, Pavillon), Val d'Europe (Place des Étoiles) and the
Prado rooftop are further enhancing the attractiveness of the food
& beverage offering in Klépierre's malls.
Leasing activity in France was bolstered by the launch of the
re-leasing campaign at St.Lazare Paris, which is capturing great
reversion with trendy brands. NYX, Rituals, Levi's, Calzedonia and
Bialetti plan to open new shops while leases with Petit Bateau and
Pylones were renewed. In addition, in the first quarter of 2018,
Sephora will unveil one of its largest stores in the world (and
2nd largest in
France) with a 1,000+ sq.m. store in a new and innovative concept.
These successes underscore the relevance of Klépierre's strategy of
transforming the St. Lazare hub into a disruptive retail
destination. Sephora has also signed 4 additional leases for
Klépierre malls: in Annecy Courier (renewal), Marseille Bourse
(opening), Val d'Europe (new concept) and Villiers-en-Bière
(renewal).
In Spain, the ongoing implementation of the Clubstore® concept in
Plenilunio has triggered an acceleration of renewals and
refurbishments, including Stradivarius and Pull&Bear (both
including a store extension), Okaïdi, C&A, Levi's and Etam. New
tenants, such as Skechers and Lush, are arriving and will further
improve Plenilunio's position as one of the leading platforms in
Madrid for international retailers.
After signing 24 leases with Inditex in 2016, Klépierre signed six
additional leases in the first quarter of 2017, including a
3,000-sq.m. Zara store in Nový Smichov (Prague).
DEBT POSITION AND FINANCING UPDATE
On February 9, 2017, Klépierre
issued a 10-year, €500 million bond with a 1.375% coupon.
[2]
On March 13, 2017, Klépierre announced a share buyback program up
to €500 million. As of April 25, 3,748,000 shares had been
repurchased at an average €35.85 per share, representing an
investment of €134 million.
As of March 31, 2017, the Group's consolidated net debt amounted to
€8,510 million, a reduction of €103 million compared to
year-end 2016. Klépierre's average debt duration remained stable at
6 years and the net cost of debt continued to decrease below
2.0%.
On April 25, 2017, the dividend was paid out to shareholders for a
total amount of €562 million (€1.82 per share for fiscal year
2016).
DEVELOPMENT PIPELINE AND ASSET
ROTATION Successful delivery of two
iconic projects
After three years of construction,
on April 12, 2017, Klépierre unveiled a 17,000-sq.m. extension at
Val d'Europe (near Paris), bringing the French mall's total
sales area to more than 105,000 sq.m. The extension features 30 new
brands, including flagship stores. The Group is currently
implementing the Clubstore® concept through a refurbishment of the
entire shopping center. Between April 12 and April 23,
Val d'Europe received 0.6 million visitors, a 31% increase
compared to the same period last year.[3] Watch the
video here.
On April 6, 2017, the Group officially opened 16,000 sq.m. of new
retail space, leased-up at 85%, at Hoog Catharijne (Utrecht),
the leading mall in the Netherlands. New stores were added to the
shopping center's offering: on the fashion segment (Zara, Zara
Home, Bershka, Stradivarius, NAME IT, WE, Men At Work, Claudia
Sträter, Bijou Brigitte, Manfield, Parfois, Nike,
Jack & Jones, Vero Moda, Sissy-Boy, Timberland), Food
/ Restaurant (Leon, Comptoir Libanais, Burger Federation, Five
Guys, Vapiano, Exki and McDonald's new concept) or Health &
Beauty (Yves Rocher, MAC, Rituals). Between April 5 and April 18,
the newly opened part of Hoog Catharijne received nearly 1.1
million visitors, an 11% increase compared to the same period
last year[4].
Disposals signed for
€213.0 million
Since January 1, 2017, Klépierre
has completed disposals of non-core assets for
€177.3 million[5], across
Europe (Norway, Sweden, France and Spain). Based on 2016 rents, the
implied yield of shopping centers sold amounts to 5.7% while sale
prices are slightly above the last appraised values. In addition,
assets worth €35.7 million are currently under sale or
purchase promissory agreements.
OUTLOOK CONFIRMED
In 2017, Klépierre expects net
rental income to continue to grow on a like-for-like basis, while
operational and financial costs should be further reduced. Assuming
stable or lower net debt, Klépierre expects to generate net current
cash flow per share of between €2.35 and €2.40.
RETAILER SALES like-for-like
change
FOR THE FIRST QUARTER OF 2017
Countries |
Q1 2017
Year-on-Year Change |
France |
-1.3% |
Belgium |
-1.5% |
France-Belgium |
-1.3% |
Italy |
-2.2% |
Norway |
0.5% |
Sweden |
-0.6% |
Denmark |
-3.0% |
Scandinavia |
-0.6% |
Spain |
0.9% |
Portugal |
-0.7% |
Iberia |
0.4% |
Poland |
3.8% |
Hungary |
11.4% |
Czech
Republic |
7.3% |
Turkey |
6.5% |
CEE and Turkey |
6.6% |
The Netherlands |
N/A |
Germany |
-2.7% |
TOTAL |
-0.6% |
TOTAL REVENUES
In € millions |
Total Share |
|
Group Share |
Q1 2017 |
Q1 2016 |
|
Q1 2017 |
Q1 2016 |
France |
100.4 |
100.3 |
|
82.7 |
83.0 |
Belgium |
4.4 |
4.1 |
|
4.4 |
4.1 |
France-Belgium |
104.8 |
104.4 |
|
87.1 |
87.1 |
Italy |
51.8 |
50.9 |
|
51.0 |
50.0 |
Norway |
18.5 |
17.7 |
|
10.4 |
9.9 |
Sweden |
16.0 |
17.1 |
|
9.0 |
9.6 |
Denmark |
14.2 |
13.4 |
|
8.0 |
7.5 |
Scandinavia |
48.8 |
48.2 |
|
27.4 |
27.0 |
Spain |
22.8 |
23.4 |
|
22.0 |
22.6 |
Portugal |
5.5 |
5.2 |
|
5.5 |
5.2 |
Iberia |
28.3 |
28.5 |
|
27.5 |
27.8 |
Poland |
8.8 |
8.4 |
|
8.8 |
8.4 |
Hungary |
5.5 |
5.3 |
|
5.5 |
5.2 |
Czech
Republic |
7.5 |
6.6 |
|
7.5 |
6.6 |
Turkey |
8.2 |
8.7 |
|
7.6 |
8.0 |
Others |
0.7 |
0.9 |
|
0.7 |
0.8 |
CEE and Turkey |
30.8 |
30.0 |
|
30.1 |
29.2 |
The Netherlands |
15.0 |
15.6 |
|
15.0 |
15.6 |
Germany |
13.6 |
14.3 |
|
13.0 |
13.6 |
SHOPPING CENTERS
GROSS RENTAL INCOME |
293.2 |
291.9 |
|
251.2 |
250.3 |
Other activities |
7.3 |
7.9 |
|
7.3 |
7.9 |
TOTAL
GROSS RENTAL INCOME |
300.4 |
299.8 |
|
258.4 |
258.3 |
Management, administrative and related income (fees) |
20.2 |
22.9 |
|
19.2 |
21.7 |
TOTAL REVENUES |
320.6 |
322.8 |
|
277.7 |
280.0 |
Equity Accounted Investees* |
22.3 |
23.9 |
|
21.2 |
22.3 |
* Contributions from Equity
Accounted Investees include investments in jointly-controlled
companies and investments in companies under significant influence.
Equity Accounted Investees are accounted for a total value of
€1,425 million as of December 31, 2016.
QUARTERLY REVENUES ON A TOTAL-SHARE
BASIS
In € millions |
Q1 2017 |
Q4 2016 |
Q3 2016 |
Q2 2016 |
France |
100.4 |
106.6 |
101.7 |
102.8 |
Belgium |
4.4 |
4.4 |
4.4 |
4.2 |
France-Belgium |
104.8 |
110.9 |
106.1 |
107.0 |
Italy |
51.8 |
51.4 |
50.6 |
51.8 |
Norway |
18.5 |
20.2 |
18.8 |
18.4 |
Sweden |
16.0 |
15.6 |
17.7 |
17.5 |
Denmark |
14.2 |
13.5 |
14.3 |
13.5 |
Scandinavia |
48.8 |
49.4 |
50.8 |
49.3 |
Spain |
22.8 |
22.2 |
23.0 |
23.8 |
Portugal |
5.5 |
5.1 |
5.3 |
5.1 |
Iberia |
28.3 |
27.4 |
28.3 |
28.9 |
Poland |
8.8 |
8.8 |
8.5 |
8.6 |
Hungary |
5.5 |
5.5 |
5.3 |
5.1 |
Czech
Republic |
7.5 |
7.3 |
6.8 |
6.6 |
Turkey |
8.2 |
9.2 |
9.0 |
8.6 |
Others |
0.7 |
0.8 |
0.4 |
0.8 |
CEE and Turkey |
30.8 |
31.6 |
30.1 |
29.7 |
The Netherlands |
15.0 |
15.2 |
15.2 |
15.1 |
Germany |
13.6 |
13.5 |
15.0 |
14.4 |
SHOPPING CENTERS
GROSS RENTAL INCOME |
293.2 |
299.3 |
296.0 |
296.2 |
Other activities |
7.3 |
6.8 |
8.0 |
7.9 |
TOTAL
GROSS RENTAL INCOME |
300.4 |
306.1 |
304.0 |
304.1 |
Management, administrative and related income (fees) |
20.2 |
22.1 |
20.6 |
20.9 |
TOTAL REVENUES |
320.6 |
328.2 |
324.6 |
325.0 |
Equity Accounted Investees* |
22.3 |
23.0 |
23.6 |
25.0 |
* Contributions from Equity
Accounted Investees include investments in jointly-controlled
companies and investments in companies under significant influence.
Equity Accounted Investees are accounted for a total value of
€1,425 million as of December 31, 2016.
AGENDA |
|
July 25, 2017
|
First-Half 2017 Earnings (press release after market
close)
|
Investor relations
contacts |
media contacts |
Hubert d'AILLIÈRES
+33 (0)1 40 67 51 37 -
hubert.daillieres@klepierre.com
Julien ROUCH
+33 (0)1 40 67 53 08 - julien.rouch@klepierre.com
|
Lorie LICHTLEN, Burson-Marsteller i&e
+33 (0)1 56 03 13 01 - lorie.lichtlen@bm.com
Camille PETIT, Burson-Marsteller
i&e
+33 (0)1 56 03 12 98 - camille.petit@bm.com |
ABOUT KLÉPIERRE
The leading pure play shopping
center property company in Europe, Klépierre combines development,
property and asset management skills. The company's portfolio is
valued at €22.8 billion at December 31, 2016 and comprises large
shopping centers in 16 countries in Continental Europe which
altogether welcome 1.1 billion 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 included in the CAC Next
20, EPRA Euro Zone and GPR 250 indexes. It is also included in
ethical indexes, such as DJSI World and Europe, FTSE4Good, STOXX®
Global ESG Leaders, Euronext Vigeo France 20 and World 120,
and is ranked as a Green Star by GRESB (Global Real Estate
Sustainability Benchmark). These distinctions underscore the
Group's commitment to a proactive sustainable development
policy.
For more information: www.klepierre.com
This press release is available on
Klépierre's website: www.klepierre.com
[1]
Like-for-like change is on a same-center basis and excludes the
impact of asset sales and acquisitions. Retailer sales from the
Dutch portfolio are not included in these figures since Dutch
retailers do not report sales to Klépierre.
[2] For more
information, please refer to the press release published on
February 9, 2017, available on www.klepierre.com.
[3] For more
information, please refer to the press release published on April
11, 2017, available on www.klepierre.com.
[4] For more
information, please refer to the press release published on April
6, 2017, available on www.klepierre.com.
[5] Total
share, excluding duties.
PR_KLEPIERRE_2016_Q1_REVENUES_26_APRIL_2017_UK_FINAL
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Klépierre via Globenewswire
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