Sustained activity in the group’s three key markets: France, Spain and Italy. Lease income increased by 18.4% (8.6% on a constant structural basis). Lease income from shopping centers, the group’s core business, rose 26.8%, to €108.2 million.
This strong increase reflects:
• Shopping center acquisitions and inaugurations since January 1, 2001, which generated €14.7 million in additional income compared with the first half of 2001. These centers generated rents totaling €12.7 million in the second half of 2001.
• 9.9% growth on a constant structural basis, of which 6% not related to indexing and attributable primarily to efforts made to lease up or renew leases on available properties in the existing portfolio by Ségécé and its subsidiaries in partnership with Carrefour, Ségécar in France, Centros Shopping in Spain and with Finim in Italy1.
Revenue growth came across the board in France, Italy and Spain, the group’s three core markets. Before the impact of retail properties acquired recently in Italy, that country and Spain now account for almost 20% of Klépierre’s total lease income from shopping centers.
Lease income from office properties increased by 0.9%, despite the sale of certain office holdings, and by 5.4% on a constant structural basis (3.5% of which is attributable to the effect of indexing). Recent corrections notwithstanding, the market continues to show strong upward rental reversionary potential (approaching 25%). The group pursued its proactive, opportunistic arbitrage strategy amidst market adjustment, with the aim of positioning the portfolio in properties that offer the highest growth potential. In just two years, Klépierre has reduced the relative weight of office properties in its global portfolio from 62% to 29%.
Net earnings (group share) totaled €24.9 million, an increase of 55.6% (fully diluted). The total includes net capital gains of €6.9 million on the sale of three office properties whose total value was €19 million.
The value of Klépierre’s real estate holdings was €4,577 million as of June 30, 2002, up 11.0% for the six-month period (3.3% on a constant structural basis, reflecting a 1.9% reduction in office properties and a 5.7% increase in shopping centers). Revalued net assets per share (fully diluted) increased by 5.0% in 6 months, and by 9.9% in 12 months.
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(source: Klepierre)
