Klepierre Full-Year Profit Gains as Mall Owner’s Rents Increase

Klepierre SA (LI), Europe’s second-largest publicly traded shopping mall operator, said 2013 profit increased as rents climbed.

Pretax earnings excluding one-time charges and the effect of a dividend, known as net current cash flow, rose 3.8 percent to 2.07 euros a share, the French company said in a statement today. Klepierre predicted a net current cash flow of “at least” 2 euros this year.

Klepierre’s rental growth was slowed down by its strategy of raising money from divestments to make acquisitions and repay debt. In the latest deal, announced in December, Klepierre agreed to sell 127 shopping centers to Carrefour SA and a group of investors in a 2-billion euro ($2.7 billion) transaction that will be completed this year. The company raised 1.3 billion euros selling assets in 2013, exceeding its 1 billion-euro target.

Shopping center net rents increased 3.5 percent on a like-for-like basis, the company said today. The company increased its proposed dividend by 3.3 percent to 1.55 euros a share. Retail sales in the company’s malls were little changed from a year earlier.

Klepierre said it will update its net current cash flow forecast this year after the Carrefour transaction is completed, probably in the second quarter.

Simon Property Group Inc. (SPG), based in Indianapolis, owns about 29 percent of Klepierre’s stock.

To contact the reporter on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net

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

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