Business is about to normalise progressively. The rent collection rate should soon be back to its usual pre-crisis level and new rent abatements are now targeting zero.
Companies: Klepierre (LI:EPA)Klepierre SA (LI:PAR)
Despite a slower recovery that one could have expected in 2020, values were resilient in H1 21. The c.4% p.a. was half the FY 20 degradation pace. Even if we question the roughly stable appraisals, the fact is that the released figures were reassuring.
Klepierre confirmed other players’ views: shoppers are back in the shops as from reopening, targeting 90% of 2019 retailers’ revenue. No strong consumption catch-up (i.e. sales above 2019 levels) was observable to date, nevertheless. Klépierre’s shopping malls should reopen in full as from mid-May.
The company’s FY 21 guidance wasn’t that aggressive in assuming a lower FFO per share. Is this because some non-recurring items could be considered as recurring?
Companies: Klepierre SA
Prior to the impact of further lockdown measures adopted in early Q4 20 across Europe, Q3 20 was stabilising vs. Q2 20. Both tenant revenues and footfall were stabilising at c.10% below their 2019 levels. The good news, however, was that rents did not collapse in Q3 20. The question remains whether this recovery will be sufficient to avoid a recap. March 2021 (annual figures, including values) will at least provide the answer.
The negative revaluation of 2.8% vs. December 2019 demonstrates a c. 6% annual pace. Valuers warned that valuation “could” adjust strongly in H2 20. Consumption was far from having fully recovered in Klépierre’s shopping malls in June 2020. Please wait.
The Q1 20 figures from the old world were unsurprisingly good with a stable revenue, lfl. As Hammerson confirmed today that Orion decided not to buy its £400m retail parks in the UK, we can assume that all other players will experience some difficulties in selling assets in the coming quarters. How will Klépierre’s balance sheet react to the crisis?
Erosion of Gross Asset Value was 1.1% in H2 19 (at constant perimeter) and 2% over FY 19. Don’t wait for a strong share price rebound but annual dividend yield looks safe (c.7%) as the retailer’s sales stand in positive territory (+1.8% for FY 19).
Except for France (36% of revenue) at +0.7% lfl, stable below inflation, the bulk of Klépierre’s tenants revenue showed an acceleration all over Europe. The key accelerations were located in Germany, Italy and Scandinavia.
Klepierre experienced a slight negative revaluation of 0.9% in its full €24bn portfolio in H1 19. The rate does not look harsh, but it could last. For now, more than some peers, the group is protected by its 3% lfl growth in rents. All in all, the NNNAV was down 3.6% in six months despite its resilient rents.
Klepierre released nice 3% organic growth in Q1 (rents). However, we focus on tenants’ sales growing by only 0.3%, well under the 0.9% FY 18 growth and the 2.5% CAGR applied by valuers to Klepierre’s mid-term rents.
FY18 underlying cash flow per share: €2.65. Guidance >€2.62.
Dividend up to €2.10 from €1.96 implying a 6.9% yield.
Assets revaluation (excluding capital gains): H1 was +1.3%, FY18 +1.5%. This reflects the first 10bp decompression in yields after years of compression, from 4.8% to 4.9% on shopping centres.
NNNAV not disclosed. NAV of €40.5 per share vs. €39.50 in H1 18 and €39.6 at the end of 2017.
Key points in Q4, tenants’ sales: France -0.3% (35% of revenue, Yellow Vests induced slowd
Klépierre recorded a good Q3 operational performance, despite a challenging retail environment.
Following the latest rumours in the market, Klépierre’s bid offer on Hammerson is no longer a secret. On Monday (19 March), Klépierre confirmed that it had made a proposal to the board of Hammerson a fortnight previously, walking in the footsteps of Unibail and its €24.7m Westfield deal. It has proposed a £5bn takeover offer at a value of 615p per Hammerson share, the Board of which has immediately rejected the offer.
Klépierre reported its FY17 results, revenues increased by 1.6% yoy (in line with our estimates) to €1,321m. Shopping centre NRI was up by 3.3% on an organic basis. The commercial portfolio value reached €23.4bn (c. 98% of the total portfolio), with 4% lfl compared to FY16. The LTV remained stable at 36.8%, thanks to the rise in property values. We remain optimistic following the good set of numbers.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Klepierre SA.
We currently have 0 research reports from 0
Companies: Plus500 Ltd.
Palace Capital has released a good trading update of for the 6 months to 30 September. The Group has achieved good progress both across the portfolio and in sales achieved at Hudson Quarter. With cash reserves rising, the Group continues to look for value creative opportunities to recycle capital which should realise value for shareholders. Buy
Companies: Palace Capital plc
We see the UK Government’s Net Zero Strategy as being overall helpful but not especially definitive. Amongst our coverage group, Drax Group (DRX LN) and Velocys (VLS LN) benefit from the Humberside CCS cluster prioritisation and Velocys from SAF support. The amount of renewables is likely to boost the need for flexibility solutions where Drax, Gore Street (GSF LN) and SIMEC Atlantis (SAE LN) can benefit. Hydrogen companies ITM (ITM LN) and Powerhouse Energy (PHE LN) are likely to find support. T
Companies: ADN DRX GSF ITM NESF PHE SAE SIT STRLNG TLG VLS
The third quarter continued to enjoy record CIB revenues and loan provision recoveries. Consensus expectations have now largely aligned with our projections, thus leaving limited upside potential in our view.
Companies: Barclays PLC
Updating at the end of H1, Urban Logistics REIT (“ULR”) continued to deploy capital, with 2 further transactions in the last weeks of H1 bringing the total to £103m since the last raise (£109m in Jul-21). There is a further £50m in advanced stages and a £400m pipeline beyond that. Yields are in line with expectations and assets are pregnant with active management opportunities, which ULR thrives on. The board is seeking to move to Premium List to facilitate future growth. We leave forecasts unch
Companies: Urban Logistics REIT plc
Non-Standard Finance (‘NSF’), one of the leading providers of unsecured credit to UK adults, published interim results for the half year to 30 June 2021 on 28 September. Overall, these showed a significantly lower loss before tax due to improved operational performance and lower below the line charges. The group also reported that current trading was ahead of plan primarily due to strong collections performance. Discussions with the FCA regarding the redress programme for guarantor loans custome
Companies: Non-Standard Finance Plc
NextEnergy Solar Fund’s investment in NextPower III opens up geographic opportunities in Latin America, Asia and other parts of Europe much earlier than could have been delivered by direct project investment. Additionally, the JV announcement with energy storage system (ESS) developer Eelpower is also an attractive way to accelerate portfolio diversity as well as opening up the door to further asset growth. By working with partners experienced in different geographies and the energy storage segm
Companies: Nextenergy Solar Fund
What’s new: Tatton’s interims trading update confirm it has “delivered strong growth in all its key metrics during the period including revenue, profits and assets under management” (AUM). It is “trading in line with expectations”.
Companies: Tatton Asset Management Plc
No Joiners Today.
No Leavers Today.
What’s cooking in the IPO kitchen?
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz. Offer TBA. Due early Nov.
Life Science REIT to join AIM raising up to £100m. This will be the first London listed real estate investment trust (REIT) focused on UK life science properties providing investors with exposure
Companies: SYS1 ARE SO4 SNG TMG TMT OHG IDE KIBO MRL
AuM pushed on in Q2, hitting £10.8bn – including the acquisition of the Verbatim funds (+13% in H1 organic only). Crucially, net inflows have remained strong through the whole of H1 at £109m avg pcm. This flow momentum underpins an encouraging outlook, both near and medium-term. We leave our forecasts unchanged although note risk to the upside heading into H2. We will review our model again at the Interims. Given the pace of growth and scale of opportunity from already established relationships,
Gore Street’s trading update confirms expectations of a strong trading environment for batteries in both the GB and Irish markets. Driven principally by high gas prices creating electricity market volatility and with tight capacity margins likely to remain, we see the company continuing to generate excess cash returns in this financial year at least.
Companies: Gore Street Energy Storage Fund PLC
No Joiners Today
No Leavers Today
What’s cooking in the IPO kitchen?
Arrow Exploration Corp. (AIM: AXL ; TSXV: AXL) , the oil and gas exploration and production company, has conditionally raised approximately £8.8m and is due to complete its dual listing on AIM on 25 Oct. Market cap c£13.1m.
Devolver Digital to join AIM, an award-winning digital video games publisher and developer in the indie games space. Recently awarded indie 'Publisher of the Year 2021' by GamesIndustry.biz.
Companies: ZYT CIC DMTR GILD LMS MMAG PYC SMRT SBI
Currently, Gore Street Energy Storage Fund (GSF) primarily relies on revenue from frequency response services, including Dynamic Containment (DC), to estimate near-term returns. The dislocation in the UK power market has led to a sharp rise in returns available from energy arbitrage leaving GSF’s assets well placed to benefit from this increased volatility. In September, those of GSF’s GB storage assets that participated in the actively-traded GB power markets generated revenues that were signif
Companies: Chrysalis Investments Limited
Today's news & views, plus announcements from BHP, MGGT, RIO, BWY, MONY, BGO, YOU, AVAP, PCA & SOLG.
Companies: AVAP BGO RIO SOLG