Klepierre Third Quarter Revenue Rises on Increased Rents
Klepierre SA (LI), Europe’s second-largest publicly traded shopping mall operator, said third-quarter revenue rose as new tenants boosted rental income.
Revenue climbed about 1 percent to 267.8 million euros ($369 million), the Paris-based company said in a statement today. The landlord, about 29 percent owned by Simon Property Group Inc. (SPG), said rental income rose about 2.4 percent.
A total of 1,640 leases were signed during the first nine months of the year, as the company focuses on bringing in more attractive retailers, according to the statement.
“After four or five years of crisis, most retailers have understood that they need to intensify their concept and their offerings,” Chief Operating Officer Jean-Marc Jestin said on a conference call. “We need to make sure it happens in a year or two, and not five or six years.”
Klepierre last year said it planned to raise 1 billion euros from asset sales by the end of this year by disposing of offices to focus on malls. The real estate investment trust has completed or reached agreements to sell 900 million euros of assets since the plan was announced in July 2012, according to today’s statement.
The results were released after the close of trading in Paris. Klepierre has climbed 8.6 percent this year. That compares with an 11 percent increase by the Bloomberg EMEA REIT Index.
The REIT held 13.2 billion euros of assets, mainly large shopping centers in Europe, at the end of June, according to Klepierre’s web site.
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