Klepierre revenues up 13.8% in Q1, positive on outlook for 2008

Revenues at Klepierre rose 13.8% to EUR 175.9mln in the first quarter of 2008 from EUR 154.6mln in the same year-earlier period, as the French retail property giant said it was positive on the outlook for the full year despite the global economic slowdown.

After investing EUR 236mln in the first quarter of the year, including EUR 130mln for the Verona and Lonato shopping centres in Italy, Klepierre confirmed it planned an investment programme of EUR 1bn for the full year.

Revenues were boosted by lease income at shopping malls, which rose 14.9% to EUR 141.9mln in the quarter, while rent from other retail properties increased 26.3% to EUR 6.8mln and office building rents inched up 2.3% to EUR 12.6mln. Fee income from services businesses increased 9.6% to EUR 14.6mln.

For 2008, Klepierre said revenues were not expected to be significantly affected by the foreseen slowdown in global economic growth. At the same time, the company said rents for the year as a whole should get a positive boost from the index-listed adjustments and rental revisions made in 2007 and 2008 while it said rents should also be helped by the group's external expansion programme.

Meanwhile, Klemurs, a quoted property investment unit of Klepierre, said revenues in the first quarter of 2008 rose 26.3% to EUR 6.8mln. Klemurs said it had completed the definitive acquisition of 13 retail locations in France on 16 April for a total of EUR 15.6mln and said it would continue to make acquisitions in the months ahead.