Klepierre raises 2026 earnings target to 1,165 million euros as rents grow

Key Facts

Klepierre raised its minimum earnings before interest, taxes, depreciation and amortisation target for 2026 to 1,165 million euros, according to its nine-month business update, as rental income increased. The new target includes the group's share of earnings from investee companies as part of its full-year financial outlook. The company also set its net current cash flow target at 2.83 euros per share, raising its outlook for that measure as well. In its first-half results announcement in July, Klepierre had said it was targeting "at least 1,150 million euros, and net current cash flow per share at the upper end of the 2.77–2.80 euro range". The revision thus raises the minimum earnings target and sets a cash flow per share forecast above the upper end of the range announced earlier in the year.

Klepierre reported a 5.4% year-on-year increase in earnings before interest, taxes, depreciation and amortisation in the first nine months of 2026. Net rental income for the same period totalled 872.6 million euros, according to the company's business update. That income grew 3.8% on a like-for-like basis, the comparison Klepierre used to present rental trends across its portfolio. Alongside growth on that basis, the company attributed part of the overall increase in rental income to contributions from its acquisitions. Its disclosure identified the Casamassima and Aqua Portimao acquisitions as sources of growth, alongside the performance of assets included in the like-for-like comparison during the period.

Tenant sales at the shopping centres rose 3.9% on a like-for-like basis in the first nine months of the year, according to Klepierre. Health and beauty led the sectors highlighted by the company in its presentation of tenant sales trends during the period. Footfall also rose 1.1%, at a slower pace than the like-for-like sales growth recorded by stores. Financial occupancy stood at 97.1% in the September update, alongside continued tenant lease renewals and reletting activity. Klepierre said lease renewals and relettings delivered a 5.5% rental uplift in the first nine months as part of its portfolio leasing results.

Shopping centre revenues grew 13.6% in the first nine months of 2026, according to Klepierre's business update. The company linked that performance to the expansion of specialty leasing and the development of its advertising model within its shopping centres. As part of its portfolio expansion, Klepierre signed a binding agreement in October to buy its partner's remaining stake in a portfolio that includes Italy's Il Leone shopping centre. The company set the consideration for the stake at 196 million euros, with the transaction financed through borrowing. The agreement concerns the purchase of the partner's stake in the portfolio, whose assets include the Italian centre, according to Klepierre's description of the transaction in its update.

On financing, the net debt-to-earnings before interest, taxes, depreciation and amortisation ratio stood at about 6.6 times on 30 September 2026, according to the company. The average cost of debt at the same date was 1.9%, according to the financial indicators in its business update for the period. Klepierre had announced the issuance of a 500 million euro green bond in August as part of its financing activity during the year. It set the bond's tenor at 8 years, with maturity in September 2034, according to the issuance announcement. The bond carries a coupon of 3.875%, according to the terms announced by the company for the financing instrument, alongside the issue size, tenor and maturity date.

The revised financial outlook covers the full year 2026, while the reported business, earnings and rental results relate to the cumulative first nine months of the year. The target increases followed the forecasts Klepierre published with its first-half results in July, then the green bond announcement in August. These were followed by the update to financing indicators through the end of September and the signing in October of the agreement to buy the partner's stake in the portfolio that includes Il Leone. The company will announce its full-year results on 24 February 2027, according to the date set in its financial calendar. The results are scheduled for release after the market closes that day, in the next announcement Klepierre has scheduled to present its full-year performance.