Bloomberg News

Klepierre Third-Quarter Revenue Advances on Outlet Openings

October 20, 2011

Oct. 20 (Bloomberg) -- Klepierre SA, Europe’s second- largest mall owner, said revenue rose 4.9 percent in the third quarter as it opened two centers and negotiated higher rents on new leases and renewals.

Revenue increased to 256.8 million euros ($351 million) from 244.7 million euros a year earlier, the Paris-based company said today in a statement. Excluding the effect of acquisitions, disposals, extensions and new outlets, rents rose 2 percent.

The opening of the Millenaire mall on the edge of Paris and Aqua Portimao in Portugal boosted rental income. Klepierre signed 1,453 leases in the first nine months to add 12.9 million euros of rental income. The gains offset the impact of property disposals and concessions to retain or attract tenants in Greece, Hungary and Spain, where retailers face weaker sales.

Rental income in the last quarter will “increase slightly” from the third quarter, in line with the “slight growth” Klepierre had predicted in rents for the year as a whole, according to the statement.

Klepierre reiterated that it expects net current cash flow to be little changed this year, while predicting that inflation adjustments and more center openings would lift rental income next year.

Revenue for the first nine months rose 4.3 percent to 767.4 million euros.

The company has raised about 88.3 million euros from the sale of properties, mostly offices, as it uses the proceeds to reduce debt and finance a 3.6 billion-euro pipeline of development projects through 2015. Klepierre expects to raise 200 million euros from disposals this year.

The report was released after the close of Paris trading. Klepierre fell 4.1 percent, to 21.42 euros, valuing the company at 4.06 billion euros.

--Editors: Jeff St.Onge, David Risser

To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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