Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. France
  4. Euronext Paris
  5. Klépierre
  6. News
  7. Summary
    LI   FR0000121964

KLÉPIERRE

(LI)
  Report
Real-time Quote. Real-time Euronext Paris - 01/26 04:37:11 am
24.25 EUR   +3.28%
01/14Klépierre Buys Back $340 Million Bonds
MT
01/06Klépierre To Buy Back $1.6 Billion Of Notes Due 2023, 2024
MT
01/06Klépierre Announces Launch of Tender Offer on Two Series of Notes
CI
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Klepierre : First-half 2021 financial report

09/02/2021 | 12:02pm EST

Interim

Financial

Report

2021

Contents

1

Management report

1

1.1

Business overview

1

1.2

Business activity by region

6

1.3

Net current cash flow

11

1.4 Investments, developments

and disposals

13

1.5

Portfolio valuation

16

1.6

Financing policy

20

1.7

EPRA performance indicators

24

1.8

Outlook

28

2

Risk factors

29

3

Interim condensed

consolidated financial

statements for the

six months ended

June 30, 2021

30

3.1 Consolidated statements

of comprehensive income

30

3.2

Consolidated statements

of financial position

31

3.3

Consolidated statements

of cash flows

32

3.4

Statements of changes

in consolidated equity

33

3.5 Notes to the interim condensed consolidated

financial statements

34

4

Statutory Auditors' Review Report on the Half-yearly Financial

Information88

4.1 Conclusion on the financial

statements

88

4.2 Specific verification

88

5

Persons responsible

for the information

89

5.1 Statement of the person responsible for the half-year

financial report

89

5.2

Persons responsible for

the Statutory Audit and

the financial information

89

FOR MORE INFORMATION,

PLEASE VISIT

KLÉPIERRE WEBSITE:

WWW.KLEPIERRE.COM

1

Management report

INTRODUCTION

During the first half of 2021, continental Europe faced two new waves of the Covid-19 pandemic. Significant increases in case numbers and hospitalizations prompted governments to reintroduce lockdowns or restrictions, which hampered Klépierre's activities, disrupted retail operations and caused inconvenience to shoppers. Despite this challenging context, the Group remained resilient in the face of disruption and continued to serve its stakeholders to the best of its abilities.

From the outset of the crisis, Klépierre has reviewed and focused its organization and resources on health and safety conditions, enabling business to continue where possible while complying with government measures on a real-time basis. As in 2020, it also adapted its working environment to the mass switch to home working, by swiftly providing all employees with appropriate IT equipment and tools. In addition, on a case-by-case basis, Klépierre continued to support its tenants during closure periods and pursued its discussions with banners to negotiate partial waivers of rent arrears in exchange for lease extensions and/or the opening of new stores.

During this phase, it was crucial to leverage the lessons learned from previous waves and to pave the way for the business recovery. In addition to the rebound in leasing activity, which returned to pre-Covid levels at the end of the first half, the Group methodically adapted its malls to shoppers' new expectations, including in terms of health and safety, and through actions to support purchasing power. Consequently, Klépierre prepared the reopening with best-in-class health protocols and continuously improved preventive measures to allow for a seamless and personalized customer journey, making its malls safe places to shop. Likewise, it implemented new collaborations with tenants to provide customers with exclusive and attractive commercial offerings, meeting their value-for-money expectations and raising both footfall and sales.

Subsequently, on the back of the vaccination rollout and massive decrease in contamination, restrictions were gradually lifted across the board. The Group's malls began reopening from mid-May onwards, posting strong performances notably in terms of retailer sales, which were higher than in 2020. This encouraging business resumption underscores the sustainable relevance of Klépierre's venues and the outstanding dedication and commitment of Klépierre's staff during these unexpected times.

1.1 BUSINESS OVERVIEW

1.1.1 Economic environment

In early 2021, Covid-19 infections remained high across Europe, forcing several countries to reimpose lockdowns and restrictions, implying long closure periods that weighed on business. However, the recent easing of constraints and the intense vaccination drive have given a second wind to the economy, translating into a eurozone GDP growth projection of 4.3% for 2021, an increase in the inflation rate to 1.8% and an unemployment rate that is expected to stabilize at 8.2% by the year-end.

These positive signs were underscored by the prompt implementation of the European Union recovery plan, substantial national fiscal packages, the ECB's accommodative monetary policy, more vigorous external demand and renewed private consumption driven by high household savings. In order to accelerate the economic upswing, many

European countries are providing companies with financial support and subsidies. For example, Germany has offered assistance to small and medium-sized companies of the Mittelstand, the backbone of its economy, while France has introduced a "fixed costs" support plan to backstop the Fonds de solidarité, and Denmark has expanded its business support budget.

Furthermore, the vaccination rollout is progressing and 57% of the European population had already received at least one shot as of July 20, 2021. Herd immunity is expected to be achieved by the fall in Europe, helping to revive confidence despite what remains a highly volatile health situation. Nevertheless, all these encouraging elements are currently challenged by the emergence of different variants, notably the Delta variant, which is rapidly spreading across Europe and undermining the recovery's momentum.

KLÉPIERRE - 2 02 1 INTERIM FINANCIAL REPORT

1

1

Ma n ag e m e n t report

Business overview

2021 AND 2022 MACROECONOMIC FORECASTS BY GEOGRAPHY

Real GDP growth rate

Unemployment rate

Inflation rate

Geography

2020

2021E

2022E

2020

2021E

2022E

2020

2021E

2022E

EUROZONE

−6.7%

4.3%

4.4%

7.9%

8.2%

7.9%

0.3%

1.8%

1.3%

France

−8.2%

5.8%

4.0%

8.0%

8.8%

8.7%

0.5%

1.4%

0.8%

Italy

−8.9%

4.5%

4.4%

9.1%

9.8%

9.7%

−0.1%

1.3%

1.0%

Scandinavia

Norway

−0.8%

3.4%

3.7%

4.4%

4.7%

4.0%

1.3%

2.9%

1.9%

Sweden

−3.0%

3.9%

3.4%

8.3%

8.4%

7.5%

0.5%

1.6%

1.4%

Denmark

−2.7%

2.8%

2.9%

5.6%

5.9%

5.2%

0.4%

1.2%

1.4%

Iberia

Spain

−10.8%

5.9%

6.3%

15.5%

15.4%

14.7%

−0.3%

1.6%

1.1%

Portugal

−7.6%

3.7%

4.9%

6.8%

7.4%

7.0%

−0.1%

0.9%

1.0%

CE & Other

Czech Republic

−5.6%

3.3%

4.9%

2.5%

3.5%

3.5%

3.2%

2.4%

2.3%

Poland

−2.7%

3.7%

4.7%

3.2%

3.4%

3.4%

3.4%

3.8%

3.3%

Turkey

1.8%

5.7%

3.4%

13.1%

14.0%

14.2%

12.3%

16.0%

12.8%

Netherlands

−3.7%

2.7%

3.7%

3.8%

4.1%

4.7%

1.1%

1.8%

1.5%

Germany

−5.1%

3.3%

4.4%

4.2%

4.2%

3.6%

0.4%

2.6%

1.6%

Source: OECD Economic Outlook, May 2021.

1.1.2 Operating context

In late 2020 and early 2021, Europe faced a third wave of the pandemic as infections surged, prompting governments to reintroduce restrictions. Klépierre's activities were impacted and the Group experienced the equivalent of 2.5 months of full closure for the portfolio - a longer period than last year when malls were closed for 1.6 months on average during the first half of 2020. Depending on the intensity of the wave, governments opted for various restrictions and degrees of lockdowns:

  • Full lockdowns: in France, Denmark, the Netherlands, Germany, the Czech Republic and Portugal, all non-essential stores, restaurants as well as entertainment venues were compelled to close from January at the earliest to the end of May at the latest, while Poland experienced two full lockdowns in January and April; and
  • Partial lockdowns/limited restrictions: in Norway, regional measures were implemented including mall closures in the Oslo area. In Italy, depending on regional health indicators, shopping centers were closed on weekends and public holidays (including the day before) until mid-May. On top of this, the whole country

experienced a full lockdown during the Easter period. Lastly, in Spain, malls generally remained open over the period (except in Barcelona during the first quarter), while the Swedish government recommended avoiding shopping areas without ordering store closures.

From April until the end of May, restrictions were gradually eased and all Klépierre's malls are now fully open with 100% of our stores (in rents) currently authorized to open. However, restrictions related to certain activities remain in place in several countries (mainly cinemas, fitness centers and restaurants), such as limits on the number of people allowed to assemble as well as curfews in many cases, making the rebound less vigorous.

Lastly, with the surge of infections resulting from the Delta variant, new restrictions started to emerge early in the second half of the year. For example, a law was passed in France on July 25, 2021 that allows prefects to require a vaccination certificate or a negative Covid test from visitors and employees of large malls and department stores in regions where the epidemic situation is deteriorating, provided that such a measure does not hamper access to public transportation and stores selling essential products.

WEEKLY TRENDS FOR STORES AUTHORIZED TO OPEN AS A PERCENTAGE OF RENTS AND CHARGES

81%

93%100% 100% 100%

75%

75%

66%

51% 51% 51%

42% 46% 47% 47% 48% 47% 43% 39% 39%

33%

37% 41% 46%

46%

January

February

March

April

May

June

2 KLÉPIERRE - 2 02 1 INTERIM FINANCIAL REPORT

Ma n ag e m e n t report

1

Business overview

CLOSURE PERIOD DURATION IN MONTHS (weighted by rents and charges)

Average closure period

Average closure period

In months

in first-half 2021

in first-half 2020

France

2.9

1.9

Italy

2.5

2.1

Scandinavia

1.5

0.5

Iberia

0.7

2.2

CE & Other

2.1

1.1

Netherlands

4.0

0.9

Germany

5.0

0.9

TOTAL

2.5

1.6

1.1.3 Retailer sales

Over the first-half of 2021, operations were significantly hampered by lockdowns implemented throughout Europe. Nonetheless, since the reopening, the rebound has been stronger than last year and like-for-like retailer sales(1) were up 15% in June compared to the same month in 2020 (96% of the June 2019 level). In what remains a restrictive health situation, this illustrates the strength of the business resumption, notably fueled by a high transformation rate and average basket size.

By geographic region(1), France (where retailer sales in June were up 15% year on year), enjoyed a strong recovery (99% of the June 2019 level). Similarly, Italian retailers experienced a fairly robust resumption of business, with sales up 23% in June compared to same month last year and reaching 94% of pre-Covid levels. Business also rebounded firmly in Scandinavia where June performances were similar to 2020 and 2019, and fared even better in Norway where sales were up 9% in June 2021 compared to 2019.

Conversely, in regions with a high proportion of malls relying on tourism or located close to transport hubs and/or large business districts, the recovery has tended to be slower.

By segment(1), fashion (up 26% in June 2021 compared to 2020, 96% of the 2019 level) posted the strongest rebound after the reopening. Meanwhile, health & beauty (up 8% year on year and representing 98% of the 2019 level in June 2021) posted resilient performances, while culture, gifts & leisure (up 7% compared to 2020 and up 3% on the 2019 level) and household equipment (up 1% compared to 2019) even exceeded pre-Covid levels. Lastly, food & beverage also experienced a strong restart with sales up 16% in June 2021 compared to 2020, but remained below pre-Covid levels (87% of the June 2019 level) notably due to the very gradual easing of restrictions in some countries, with restrictions such as limited numbers of diners in restaurants or outdoor-only dining maintained.

CHANGE IN RETAILER SALES IN JUNE 2021 COMPARED TO JUNE 2020 AND JUNE 2019 (by country)

Retailer sales change(a)

Share

Country

June 2021 vs. June 2020

June 2021 vs. June 2019

(in total reported retailer sales)

France

+15%

−1%

36%

Italy

+23%

−6%

24%

Scandinavia

+1%

+1%

19%

Iberia

+20%

−17%

9%

CE & Other

+21%

0%

6%

Netherlands

+23%

−7%

3%

Germany

+2%

−9%

3%

TOTAL

+15%

−4%

100%

(a) Change is on a same store basis, excluding closure days and the impact of asset sales and acquisitions.

CHANGE IN RETAILER SALES IN JUNE 2021 COMPARED TO JUNE 2020 AND JUNE 2019 (by segment)

Retailer sales change(a)

Share

Segment

June 2021 vs. June 2020

June 2021 vs. June 2019

(in total reported retailer sales)

Fashion

+26%

−4%

41%

Culture, Gifts & Leisure

+7%

+3%

18%

Health & Beauty

+8%

−2%

14%

Food & Beverage

+16%

−13%

9%

Household Equipment

−2%

+1%

11%

Other

+13%

−12%

7%

TOTAL

+15%

−4%

100%

(a) Change is on a same store basis, excluding closure days and the impact of asset sales and acquisitions.

(1) Change in retailer sales on a same store basis, excluding closure days.

KLÉPIERRE - 2 02 1 INTERIM FINANCIAL REPORT

3

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Klépierre SA published this content on 02 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 September 2021 16:01:04 UTC.


© Publicnow 2021
All news about KLÉPIERRE
01/14Klépierre Buys Back $340 Million Bonds
MT
01/06Klépierre To Buy Back $1.6 Billion Of Notes Due 2023, 2024
MT
01/06Klépierre Announces Launch of Tender Offer on Two Series of Notes
CI
2021KLÉPIERRE SA(ENXTPA : LI) dropped from S&P EUROPE 350
CI
2021AN UNKNOWN BUYER ACQUIRED A 95% INTE : LI) for approximately €350 million.
CI
2021KLÉPIERRE SA(ENXTPA : LI) dropped from S&P Global 1200
CI
2021KLÉPIERRE SA(ENXTPA : LI) dropped from S&P International 700
CI
2021LOYALTY APP : already more than 140,000 members in our shopping centers
PU
2021CDP A LIST : Klépierre recognized once again as world leader in the fight against climate ..
PU
2021European shares mark new highs as mining stocks rally
RE
More news
Analyst Recommendations on KLÉPIERRE
More recommendations
Financials
Sales 2021 1 011 M 1 142 M 1 142 M
Net income 2021 -1 272 M -1 438 M -1 438 M
Net Debt 2021 8 549 M 9 662 M 9 662 M
P/E ratio 2021 -5,12x
Yield 2021 5,59%
Capitalization 6 701 M 7 559 M 7 573 M
EV / Sales 2021 15,1x
EV / Sales 2022 14,1x
Nbr of Employees 1 040
Free-Float -
Chart KLÉPIERRE
Duration : Period :
Klépierre Technical Analysis Chart | LI | FR0000121964 | MarketScreener
Technical analysis trends KLÉPIERRE
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 17
Last Close Price 23,48 €
Average target price 20,03 €
Spread / Average Target -14,7%
EPS Revisions
Managers and Directors
Jean-Marc Jestin Chairman-Executive Board
Jean-Michel Gault Chief Financial Officer
David E. Simon Chairman-Supervisory Board
Beñat Ortega Group Deputy Chief Operating Officer
Cyrille Deslandes Group Head-Mergers & Acquisitions
Sector and Competitors
1st jan.Capi. (M$)
KLÉPIERRE12.61%7 559
EQUINIX, INC.-14.92%64 800
DIGITAL REALTY TRUST, INC.-13.68%43 326
REALTY INCOME CORPORATION-3.73%38 996
ALEXANDRIA REAL ESTATE EQUITIES, INC.-12.92%31 040
SEGRO PLC-10.76%20 793