French listed retail specialist Klépierre has revised its 2016 full-year guidance upward after reporting strong earnings in the first half of the year.
The French REIT said it is now targeting net current cash flow per share of at least €2.25 for 2016, above the €2.23-2.25 per share range guidance announced in February.
Net current cash flow per share reached €1.16 in the first six months of the year, an increase of 8.6% on €1.07 a year earlier.
Total net rental income amounted to €535.3 mln in 2016 versus €525.2 mln in the same period a year before. Net rental income growth was stronger in Iberia (5%) and Scandinavia (4%) while the Netherlands posted a decline of 6.7% due to an increase in vacancies and late payment rates in relation to bankruptcies of a few domestic retailers.
EPRA NAV per share stood at €34.8 at end June 2016 compared to €32.0 in 2015.
Laurent Morel, Chairman of Klépierre’s Executive Board, said: 'Throughout the first half of the year, Klépierre has once again proven its ability to deliver solid operational performance, particularly in highly dynamic areas at the heart of our development strategy, in countries such as Italy, Spain, Sweden, and Denmark. Elsewhere, our centres have demonstrated remarkable operating resilience in the face of a rather challenging market environment. Since last year’s merger with Corio, we have significantly reduced our operating costs and improved our portfolio, both through asset rotation and advances on our major projects in Val d’Europe, Prado, and Hoog Catharijne.'
Earlier this month Klépierre sold a portfolio composed of three retail galleries in Spain for a total consideration of €61 mln. The properties − which entered the portfolio in 2015 through the Corio acquisition − consist of Sexta Avenida in downtown Madrid; Espacio Torrelodones in Northern Madrid, and Ruta de la Plata in Cáceres.
The company's portfolio saw its value rise 4.8% like-for-like to €22.6 bn this year, which helped keep the loan-to-value at a low ratio of 39%.
