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1. Company Snapshot

1.a. Company Description

Klépierre is the European leader in shopping malls, combining property development and asset management skills.The Company's portfolio is valued at €20.7 billion at December 31, 2021, and comprises large shopping centers in more than 10 countries in Continental Europe which together host hundreds of millions of visitors per year.Klépierre holds a controlling stake in Steen & Strøm (56.1%), Scandinavia's number one shopping center owner and manager.


Klépierre is a French REIT (SIIC) listed on Euronext Paris and is included in the CAC Next 20 and EPRA Euro Zone Indexes.It is also included in ethical indexes, such as Euronext CAC 40 ESG, MSCI Europe ESG Leaders, FTSE4Good, Euronext Vigeo Europe 120, and features in CDP's “A-list”.These distinctions underscore the Group's commitment to a proactive sustainable development policy and its global leadership in the fight against climate change.


For more information, please visit the newsroom on our website: www.klepierre.com.

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1.b. Last Insights on LI

Klépierre's recent performance was driven by a double upgrade in credit ratings to "A−" by S&P, solidifying its financial flexibility and cash flow generation capabilities. The company's strong asset base and prudent financial policy have been successful in outperforming expectations. Additionally, the confirmation of 2025 guidance and the availability of the universal registration document for fiscal year 2024 demonstrate the company's commitment to transparency and financial discipline.

1.c. Company Highlights

2. Klepierre's 2025 Earnings: A Strong Performance

Klepierre's 2025 earnings demonstrated strong growth, with net rental income rising 5.1% to €1.120 billion and EBITDA growing 5.5%. The company's net current cash flow per share increased by 5% to €2.72, beating initial guidance. The actual EPS came out at €2.37, significantly higher than estimates of €1.4. NAV per share grew 9% to €35.9. Retailer sales across malls rose 3.4% like-for-like, driven by solid consumer spending and attracting leading retail brands. The company will propose a €1.9 per share cash dividend for 2025, representing a 6% spot dividend yield.

Publication Date: Feb -22

📋 Highlights
  • 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.

3. NewsRoom

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Klepierre (KLPEF) Full Year 2025 Earnings Call Highlights: Strong Growth in Net Rental Income ...

Feb -21

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KLÉPIERRE ANNOUNCES CHANGES TO ITS SUPERVISORY BOARD

Feb -20

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KLÉPIERRE: 2025 EARNINGS UP +5%, NAV UP +9% CONFIDENT ABOUT 2026

Feb -19

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KLÉPIERRE: INFORMATION REGARDING THE TOTAL VOTING RIGHTS AND SHARES OF KLÉPIERRE SA AS OF JANUARY 31, 2026

Feb -06

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Why The Klépierre (ENXTPA:LI) Story Is Shifting As Analysts Split On Upside Potential

Jan -11

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KLÉPIERRE: INFORMATION REGARDING THE TOTAL VOTING RIGHTS AND SHARES OF KLÉPIERRE SA AS OF DECEMBER 31, 2025

Jan -09

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KLÉPIERRE: SEMI-ANNUAL STATEMENT OF LIQUIDITY AGREEMENT

Jan -06

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KLÉPIERRE ANNOUNCES THE ACQUISITION OF A MALL IN ITALY

Jan -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.36%)

6. Segments

Vehicle

Expected Growth: 7.43%

Klépierre's 7.43% growth in Vehicle segment is driven by increasing foot traffic in shopping centers, successful integration of digital platforms, and strategic partnerships with e-commerce players, resulting in higher conversion rates and average transaction values. Additionally, the company's focus on experiential retail and omnichannel strategies has enhanced the overall shopping experience, attracting more customers and driving sales growth.

Other and Services

Expected Growth: 4.83%

Klépierre's Other and Services segment growth of 4.83% is driven by increasing demand for omnichannel retail experiences, expansion of services such as click-and-collect, and growth in advertising and sponsorship revenue. Additionally, the company's focus on enhancing customer experience through digitalization and investments in data analytics are contributing to the segment's growth.

7. Detailed Products

Shopping Centers

Klépierre owns and operates a portfolio of shopping centers across Europe, offering a range of retail spaces for various brands and retailers.

Retail Parks

Klépierre develops and manages retail parks, providing large retail spaces for big-box retailers and other large format stores.

High Street Retail

Klépierre owns and operates high street retail properties in prime locations, offering retail spaces for various brands and retailers.

Office Spaces

Klépierre offers office spaces for rent, providing flexible and modern workspaces for businesses.

Mixed-Use Developments

Klépierre develops and manages mixed-use projects, combining retail, office, and residential spaces in a single development.

8. Klépierre's Porter Forces

Forces Ranking

Threat Of Substitutes

Klépierre operates in the shopping center industry, where substitutes are limited. However, the rise of e-commerce and changing consumer behavior pose a moderate threat.

Bargaining Power Of Customers

Klépierre's customers, being retailers, have significant bargaining power due to their large volumes and ability to negotiate rents and terms.

Bargaining Power Of Suppliers

Klépierre has a diverse supplier base, and its suppliers have limited bargaining power due to the company's large scale and negotiating power.

Threat Of New Entrants

The shopping center industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Klépierre.

Intensity Of Rivalry

Klépierre operates in a competitive industry, but its strong market position, diversified portfolio, and focus on innovation help mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.74%
Debt Cost 4.65%
Equity Weight 51.26%
Equity Cost 12.18%
WACC 8.51%
Leverage 95.07%

11. Quality Control: Klépierre passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Carmila

A-Score: 7.2/10

Value: 6.9

Growth: 5.2

Quality: 7.0

Yield: 10.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Patrimoine et Commerce

A-Score: 6.9/10

Value: 4.9

Growth: 4.8

Quality: 5.1

Yield: 8.8

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Retail Estates

A-Score: 6.9/10

Value: 5.5

Growth: 3.9

Quality: 6.4

Yield: 9.4

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Klépierre

A-Score: 6.8/10

Value: 4.2

Growth: 4.6

Quality: 5.9

Yield: 9.4

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Mercialys

A-Score: 6.0/10

Value: 3.9

Growth: 3.1

Quality: 5.1

Yield: 10.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Vastned Retail

A-Score: 4.0/10

Value: 5.8

Growth: 3.7

Quality: 4.3

Yield: 5.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.0$

Current Price

34$

Potential

-0.00%

Expected Cash-Flows