Klepierre’s Rental Income Rises on Shopping Mall Expansion

Klepierre SA (LI), Europe’s second-largest publicly traded mall operator, said first-half rental income rose 2.8 percent after it opened two shopping centers and extended three others.

Pretax earnings excluding one-time charges, known as net current cash flow, increased to 1.02 euros a share from 99 cents a year earlier, the Paris-based company said in a statement after the market closed today. The landlord is about 29 percent owned by Simon Property Group Inc. (SPG) and has a market value of about 6.6 billion euros ($8.7 billion).

Klepierre said it’s on target to raise 1 billion euros from asset sales by the end of 2013 after reaching agreements to sell more than 201 million euros of real estate from January. It has sold 900 million euros of real estate since the start of 2012 and plans to dispose of more office properties as it focuses on shopping malls.

“Despite a sluggish consumption environment and exceptionally unfavorable weather conditions,” sales by the company’s retail clients were unchanged in the six months through June from a year earlier, the company said.

Net asset value fell to 32.4 euros a share from 34 euros at the end of last year, according to the statement. Total revenue increased 2.1 percent to 546 million euros. Shopping center revenue was up 4.1 percent. Total rental income climbed to about 500 million euros from 486.1 million euros a year earlier.

The company manages or owns properties valued at about 16.2 billion euros. Klepierre is up about 10.6 percent this year compared with an 8.3 percent rise in the value of the FTSE EPRA Europe REITs Index.

To contact the reporter on this story: Neil Callanan in London at ncallanan@bloomberg.net

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

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