Klépierre (LI) H2 2025 earnings summary

Executive summary

• 2025 delivered robust financial and operational performance, with net rental income up 5.1%, EBITDA up 5.5%, and net current cash flow per share at €2.72, all exceeding guidance.

• NAV per share rose 9% to €35.9, and total accounting return reached 15% for the year and 31% over two years.

• Outperformed European property sector and equity markets, with earnings growth 4x higher than EPRA top 20 and 20x the STOXX Europe 600 Index.

• Achieved high occupancy rates (97.1%) and significant market share gains, driven by retailer sales growth (+3.4%) and mall income (+12.1%).

• Maintained a best-in-class European retail portfolio, focusing on value creation, sustainability, and consistent dividend growth.

Financial highlights

• Net rental income reached €1,120.4m, up 5.1% year-over-year, with like-for-like growth of 4.5%.

• EBITDA increased 5.5% to €1,119.3m, with an 87.3% margin (+50bps).

• Net current cash flow per share rose to €2.72, exceeding guidance.

• NAV per share grew 9% to €35.9; total accounting return was 15% for 2025 and 31% over two years.

• Proposed dividend of €1.90 per share (+3% YoY), with a 6% yield.

Outlook and guidance

• 2026 guidance targets at least €1,130m EBITDA and €2.75 net current cash flow per share.

• Assumes stable macroeconomic conditions, flat retailer sales, and no major disposals or acquisitions.

• Indexation expected to slow to 0.8% in 2026 (from 1.8% in 2025), but internal growth, extensions, and recent acquisitions will support results.

• No significant increase in cost of debt expected for 2026, as all financing needs are already covered and debt is nearly fully hedged.

• Dividend proposal of €1.90 per share for 2025, representing a 6% yield.