In 2005, Klépierre reported sustained revenue growth, driven by a strong increase in rents from its shopping center holdings, which now account for 88% of its lease revenues, and by the extension of its shopping center management business.
The 17.6% rise in rents, which totaled 390 million euros, was attributable to a combination of factors: the integration of new centers acquired in 2004 and 2005, efficient management, and high levels of rental reversion.
Via its subsidiary Ségécé, the Group also increased its control over management companies in Europe by acquiring additional equity interests in the Spanish and Hungarian management affiliates.
In the office property segment, Klépierre continued to pursue its arbitrage policy, disposing of assets worth a total of 125 million euros in 2005. These divestments were the primary reason for the 19.8% decrease in lease income from this segment.
On the strength of this global progression in business activity, Klépierre is confident that it will be able to surpass the net current cash flow per share target of at least 10% originally set for 2005. In fact, Klépierre has sufficient visibility over 2006 to project continued business growth this year.