Klepierre: Invest Securities confirms buy rating

(CercleFinance.com) - Invest Securities confirms its buy rating on the Klépierre stock with a target price of 26.
3 euros.

The analyst says that Klepierre's assets (E17.6bn) are mainly invested in large shopping centres located in continental Europe (37.5% of which are in France).

He believes that the very good performance of retailers' turnover (at 2019 levels), occupancy (95.6%) and reversion (+3% over 9M 2022) are all factors that suggest that market rental values will be capable of keeping up with inflation.

The company will also be able to rely on assets leased to solid tenants, most of which are located in shopping areas in areas that have residents with high purchasing power. Klepierre's debt profile is one of the most attractive amongst real estate companies that it covers (average maturity of 6.5 years and LTV of 38.8%), while the portfolio's average yield of 5.2% makes it less sensitive to rising interest rates, the broker said.

It also says that the company should be able to post a regular increase in its dividend over the MT (CAGR 22-26e of +4.5%), while maintaining its financial discipline.


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