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UPDATE 1-Klepierre focus on resilient shopping malls lifts sales
October 23, 2013 / 3:59 PM / 4 years ago

UPDATE 1-Klepierre focus on resilient shopping malls lifts sales

PARIS, Oct 23 (Reuters) - French real-estate group Klepierre reported a 0.9 percent rise in third-quarter revenues and reaffirmed its full-year targets as its malls in France and the Nordics offset a tougher market in Spain and Portugal.

Klepierre’s strategy of focusing on its large, resilient European shopping centres while shifting out of the office market has seen it resist the sluggish economic environment.

“We are in a sluggish consumption environment but shopping malls have proved to be resilient,” Klepierre Chief Executive Laurent Morel told journalists.

“We have outperformed the national consumption indexes.”

The company, which is part-owned by BNP Paribas and Simon Property Group, said in its trading update on Wednesday that quarterly sales including fees rose to 267.8 million euros ($368.86 million).

It reiterated its aim to grow annual gross rents by 2 percent on a like-for-like basis and cash flow per share by 3 percent.

“I see no change in the environment so far which could change this (year‘s) picture,” Morel said, though he warned that rental benchmark indexes - which underpin rental contracts - would likely be lower in 2014. ($1 = 0.7260 euros) (Reporting by Lionel Laurent, editing by Geert De Clercq)

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