Klepierre S.A.

Overview Key strengths Key risks A large and geographically diversified portfolio of high-quality retail property assets, valued at €20.7 billion on Dec. 31, 2021, with exposure to 12 countries and more than 50 cities. Full dependence on the retail property segment, which has been highly affected during the pandemic, and is again under pressure in the inflationary environment, as purchasing power gets hit and retailers? margins squeezed. A strong market position, focusing on large, upscale, well-located shopping centers with a mass-market appeal that should continue to attract top international retailers and high footfall in a post-pandemic environment. Structural challenges from the disruption of retail by e-commerce over the past few years, including the reduction of physical store numbers, which may

...With retail activity recovering in the second half of 2021, S&P Global Ratings expects Klepierre's operating performance to keep improving in 2022 since pandemic-led restrictions have been lifted. Mandatory closures and restrictions imposed by governments in response to the COVID-19 pandemic kept exerting pressure on retail property owners in 2021 and the first two months of 2022. Klepierre's shopping centers were closed for an average of 2.5 months in 2021 (compared with 2.1 months in 2020). As restrictions eased across economies in the second half of the year, we saw a gradual improvement in Klepierre's operating performance. Retailers' sales improved by 10% over 2020, with footfall getting close to 80% of 2019 levels. Klepierre's like-for-like net rental income improved by 6.9% in 2021 (up 88.3% in first-quarter 2022) and its occupancy rate was up 50 basis points to 94.7% (stable in first-quarter 2022). Klepierre also managed to sign 1,570 leases in 2021, up 65% over 2020, with the majority...

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