- Net Rental Income & EBITDA Growth: 5.1% YOY rise to €1.120 billion and 5.5% EBITDA growth in 2025.
- Dividend Yield & Cash Flow: Proposed €1.9/share dividend (6% yield) and €2.72 net current cash flow per share (5% increase).
- Balance Sheet Strength: €1 billion long-term financing secured at 3.3% blended yield; net debt/EBITDA at 6.7x (historic low).
- Geographic Performance: Southern Europe (5.1% NRI growth) outperformed France (4.6%), with Germany being the sole underperformer.
Organic Growth Drivers
Klepierre's growth strategy focuses on organic growth drivers, including rental uplift, mall income, and extensions. The company has a strong track record of delivering rental uplift, with a 4.6% rental uplift on renewals and relettings in 2025. Mall income, encompassing specialty leasing and retail media activities, parking, and EV charging stations, grew at an annual average of 12% since 2022.
Valuation Metrics
With a P/E Ratio of 10.21 and a Dividend Yield of 5.44%, Klepierre's valuation appears reasonable. The EV/EBITDA ratio of 50.01 seems high, but this is somewhat justified by the company's strong growth prospects. The ROE of 12.49% indicates a good return on equity.
Balance Sheet Strength
The company has a rock-solid balance sheet and historically low leverage ratio, providing a competitive advantage. Klepierre's guidance for 2026 expects at least €1.13 billion of EBITDA and €2.75 net current cash flow per share. The company has secured over €1 billion of long-term financing with an average 8.5-year maturity at a blended yield of 3.3%.
Acquisition and Disposal Strategy
Klepierre's acquisition strategy focuses on value-creative acquisitions, with recent acquisitions in 2024 and 2025 meeting financial criteria and allowing for operational performance enhancement. The company disposed of €205 million of small-scale assets in 2025, 8% above appraisal value. Klepierre is selective in terms of pricing for potential acquisitions, focusing on opportunities where they can create significant value.
Market Outlook
The European retail investment volume is expected to reach over €35.5 billion in 2025, with shopping centers regaining favor. Klepierre's portfolio valuation increased by 4.9% like-for-like over the last 12 months, driven by a slight risk premium compression. The company expects a continuous recovery of the European transaction market and a conducive capital environment to drive growth.
Geographic Performance
Klepierre sees growth across all geographies, with Southern Europe (Italy, Spain, Portugal) performing above average, while France is slightly lukewarm. Germany is the only exception with slightly declining sales. The company's malls have seen positive sales growth, with a strong start to 2026.
Capital Allocation
Klepierre prioritizes debt financing for acquisitions due to its low cost and ample room for maneuver. The company targets a net debt-to-EBITDA ratio of around 7.5x to maintain its A-rating. They consider their internal resources first for funding acquisitions before tapping the equity capital market.