Klépierre (LI) H2 2024 earnings summary

Executive summary

• 2024 delivered strong growth across all key metrics, with net current cash flow per share up 5.3% to €2.60, surpassing guidance by over 5%.

• Total accounting return reached 15%, with an 8.9% year-on-year increase in EPRA NTA and a leading cash dividend yield.

• Proposed 2024 cash dividend of €1.85 per share, up 3% year-on-year, with a 71% payout ratio.

• Robust operational performance was driven by high leasing demand, improved occupancy, and strong retailer sales, supported by favorable macroeconomic and industry trends.

• Maintained sector-leading balance sheet and achieved global leadership in sustainability, with top GRESB and CDP ratings.

Financial highlights

• Net rental income rose to €1,066.1 million, up 6.3% like-for-like; EBITDA grew 6.9% to €985.3 million, with margin improving to 86%.

• Net current cash flow (group share) increased 5.3% to €2.60 per share, exceeding guidance.

• EPRA NTA per share reached €32.8, up 8.9% year-on-year; portfolio value rose 4.1% like-for-like to €20.2 billion.

• Like-for-like net rental income outperformed indexation by 350 basis points.

• Additional revenues rose 8.4% like-for-like, driven by media, turnover rents, and car park income.

Outlook and guidance

• 2025 guidance targets 3% EBITDA and net rental income growth, with net current cash flow per share expected between €2.60 and €2.65.

• Dividend distribution proposed at €1.85 per share, up 3% year-on-year, to be paid in two installments.

• Guidance assumes stable European macroeconomic conditions, with cost of debt fully hedged and limited refinancing needs.

• Retailer sales expected to remain at least stable, with higher additional revenues and full-year contribution from 2024 acquisitions.

• Guidance excludes impact of any future disposals or acquisitions.