Positive results, waiting on disposals
16 Feb 17
We have updated our model on Klepierre’s FY16 numbers. The published figures are marginally in line with our expectations and we maintain our positive stance on the stock. As a reminder: • Shopping centre NRI stood at €1.05bn gaining 1.7% yoy (+3.5% lfl), and standing +320bp ahead of the index. • EPS at €2.31, +6.8% yoy, exceeded the guided €2.23-2.25, and stood ahead of our expected €2.28. The proposed dividend was €1.82, +7.1% yoy, and net debt lowered by €244m, leading to a 2.1% decrease in cost of debt. • EPRA NAV per share at €36.7, gained +5.9% yoy while the group’s GAV at €22.8bn, gained 4.5% lfl. Management expects a positive FY17, despite a relatively stable macro environment and limited indexation. EPS is seen at €2.35-2.40.
New target price following the H1 figures
27 Jul 16
Klepierre has published solid H1 16 figures with EPS standing at €1.16, up 8.6% yoy, ahead of our FY expectations. Shopping centre net rental income grew by +2.8% lfl , outperforming the index by 250bp, and Retailer sales grew by +2.6% lfl. EPRA NAV stands €34.8 per share, up 8.7% and above our €33 18-month forward NAV, and the group’s GAV is up 4.8% lfl to €22.6bn. The financial position remains strong with cost of debt down 30bp to 2.6%, the LTV at 39.1% remains stable, and net debt now stands at €9.1bn, down from €9.4bn. Management has revised the EPS guidance to the upper end of the expected €2.23 to €2.25 range for FY16.
Strong FY figures: now targeting €67m synergies by 2017
10 Feb 16
Klepierre published strong FY15 figures. The NRI stood at €1,068m, up 3.4% lfl (an acceleration from the 2.8% in H1 15) and 300bp above indexation. EPS stood at €2.16, the upper end of the targeted €2.10-2.15. This is ahead of our expected €2.14/share. And the announced dividend at €1.70/share is in line with our expectations. The NAV per share stood at €34.7, up 8%, beating our expectations and now only 0.5% below our 18-month forward NAV expectations. Management now guides for EPS of €2.23 to €2.25 for FY16.
Strong H1: expecting higher cost synergies from Corio, EPS guidance revised towards the upper end
30 Jul 15
Klepierre published a strong set of figures for H1 15. Pro-forma organic NRI stood at €525.2m, up 2.8% despite close to no indexation (+0.4%), with +3.5% from Old Klepierre assets and +1.4% from ex-Corio. EPS gained 1.4% to €1.07 and total portfolio value was up by 2.3% to €21.9bn, (o/w €18.9bn GS) and EPRA triple net NAV gained 4.2% to €30.9. The integration of Corio is moving fast and delivering the planned synergies. Management currently expects more than the €20m of synergies initially guided for FY15. Occupier conditions remained strong with same-store sales up by 3.2% or 3.8% including extensions and the financial structure was optimized with: cost of debt now at 2.5% (closer to Unibail’s 2.2%), a higher debt maturity at 5.6 years and a stable LTV at 40%. Management has revised its EPS guidance for the FY15 moving to the upper end of the previously guided EPS of €2.10-2.15; we had been expecting €2.14.