This article first appeared on GuruFocus .
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Net Rental Income:Increased by 5.1% to EUR1.120 billion.
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EBITDA:Grew by 5.5%, with a margin improvement of 50 basis points to 87.3%.
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Net Current Cash Flow Per Share:EUR2.72, a 5% increase year-on-year.
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Retailer Sales Growth:Increased by 3.4% on a like-for-like basis.
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Occupancy Rate:Improved by 60 basis points to 97.1%.
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Occupancy Cost Ratio (OCR):Improved to 12.5%.
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More Income:Increased by 12.1%.
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Net Asset Value (NAV) Per Share:Grew 9% to EUR35.9.
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Total Accounting Return:15% for 2025, 31% over the last two years.
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Dividend Proposal:EUR1.9 per share, representing a 6% spot dividend yield.
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Portfolio Valuation Increase:4.9% on a like-for-like basis over the last 12 months.
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Long-term Financing Secured:Over EUR1 billion with an average 8.5-year maturity at a 3.3% blended yield.
Release Date: February 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Klepierre ( KLPEF ) reported a 21% increase in net rental income over the past three years, highlighting strong demand from omnichannel retailers.
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The company's EBITDA rose by 23%, showcasing significant operational leverage and efficiency.
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Net current cash flow per share grew by 21%, driven by disciplined balance sheet management and operational excellence.
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Retailer sales across Klepierre's malls increased by 3.4% on a like-for-like basis, outperforming national retail indices.
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Klepierre achieved a 5.1% increase in net rental income to EUR1.120 billion, surpassing indexation by 330 basis points.
Negative Points
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The guidance for 2026 appears cautious, with expectations of lower indexation compared to 2025.
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The French retail market is perceived as weaker compared to other regions like Italy and Spain, potentially impacting future growth.
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Klepierre's exposure to the German market, where sales have been slightly declining, poses a challenge.
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The company faces competition in the retail sector, which could impact its ability to seize acquisition opportunities.
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Despite strong performance, there is a perception of volatility in monthly sales, which could affect future projections.
Q & A Highlights
Q: Can you provide more details on the guidance for 2026, particularly regarding net rental income growth and expected cost of debt? A: Stephane Tortajada, CFO, explained that the guidance aligns with market expectations and is consistent with Klepierre's usual pattern. Indexation is expected to be around 0.8% in 2026, down from 1.8% in 2025. However, internal growth drivers, extensions, and recent acquisitions will positively impact 2026. The cost of debt is not expected to increase significantly as financing for 2026 is already secured.
Q: What is Klepierre's current firepower for acquisitions, and what are the plans for noncore asset disposals in 2026? A: Jean-Marc Jestin, Chairman of the Executive Board, stated that Klepierre remains selective in acquisitions, focusing on assets with strong fundamentals and reversionary potential. The company has approximately EUR1 billion in noncore assets, with plans to dispose of EUR200 million annually. This process will continue steadily to protect shareholder returns.
Q: How did Klepierre manage to exceed its guidance in 2025, and what factors could lead to similar outcomes in 2026? A: Jean-Marc Jestin noted that exceeding guidance often results from delivering on growth drivers like mall income and retail media. While the guidance is based on certainties, better-than-expected retailer sales and other factors can lead to outperformance. The beginning of 2026 has shown strong sales, providing optimism for the year.
Q: Can you comment on the performance of your malls by geography and the impact on your 2026 forecast? A: Jean-Marc Jestin highlighted that sales have increased across all geographies except Germany, with Southern Europe outperforming the average. France showed strong net rental income growth despite macroeconomic concerns. The overall performance remains robust, with positive trends continuing into 2026.
Q: With the current limited discount on net asset value, could this influence Klepierre's M&A strategy, and would you consider using equity markets for acquisitions? A: Stephane Tortajada emphasized that the most accretive way to finance acquisitions is through debt, given Klepierre's strong balance sheet and low leverage. While equity markets could be considered for large acquisitions, the primary focus remains on using internal resources.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
