KLPEF - Klepierre: Solid Performance And Sound Financials But Limited Upside

• H1 2021 Disposals of 472M EUR at a average yield of 5.6%, below the market implied 6.21% yield, set to bring LTV down to 41.1%.
• Near-term focus to remain on deleveraging with share buybacks likely to resume once the LTV is firmly under control.
• Low cost of debt and solid financial profile create opportunities to acquire weaker competitors.
• Over the short term, I think there are more attractive opportunities in the European retail REIT space.
• Given the risk/return profile the best way to position in Klepierre would be via at the money options.

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