Buy Signal on Klepierre (LI-FR)
Klépierre is a € 7.1 bn Bn market cap and a European leader in shopping malls, combines development, property and asset management skills. The company's portfolio is valued at €22 bn at December 31, 2020 and includes large shopping centers in 12 countries in Continental Europe which together host 1.1 billion visits per year. Klépierre holds a controlling stake in Steen & Strøm (56.1%), Scandinavia's number one shopping center owner and manager.
Klepierre, which is the main landlord for some of Europe's biggest retailers, including Inditex, H&M and Sephora, reported a gross rental income from shopping centres down 10% year on year in Q1-2021.
Kepler is expected to post a net loss of €743m in 2021, and the net debt to stand at €8.8 bn by year end (versus €9.5 Bn in 2020) while all refinancing needs are covered until April 2024. The company is expected to resume profitability in 2022, benefitting from the reopening of the French and Europe economy and the deleveraging to accelerate further.
The dividend corresponds currently to a 5.2% dividend yield.
Short term catalyst : Deleveraging, reopening, dividend yield.
This signal looks consistent with the European REIT sector in Major Bullish Trend.