Klepierre Announces Higher Profits and Mall Rents

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Klepierre, Europe's second-largest shopping mall operator, reported higher profits for 2013, while reporting increases in rents.

The French company reported net current flow - pretax earnings excluding one-time charges and the effect of a dividend - increased 3.8 percent to €2.07 a share.

Shopping center gross rents, which make up 94.5 percent of Klepierre's total rents, reached €945.2 million in 2013, increasing 2.9 percent on a current basis. On a like-for-like basis, gross rents increased 2.6 percent, while net rents grew by 3.5 percent.

"Solid growth in our rental income demonstrates not only the quality of our assets and the success of every initiative we undertake to constantly improve the appeal of our shopping centers," Laurent Morel, Klépierre chairman, said in a statement. "But also our ongoing focus on managing our malls and our organization with greater efficiency."

Rental growth has slowed for the company as it worked to raise capital to repay debt and make acquisitions through divestments.

Last month, the company sold a portfolio of 127 shopping malls to Carrefour Group for €2 billion.

As of December 31, the company's portfolio was valued at €16 billion. Its largest shareholders are Simon Property Group (28.9 percent) and BNP Paribas (21.9 percent), according to the company.

It has large shopping centers in 12 countries of Continental Europe and hold a controlling stake in Steen & Strøm (56.1 percent), Scandinavia's number one shopping center owner and manager, according to the statement.