Klepierre: Good Performance, Wish My Position Was Larger

2025-02-08 01:39:56 ET

Summary

• Klepierre, a French-based European Retail REIT, boasts a strong portfolio of irreplaceable shopping malls in central European cities, offering a 6.32% yield and BBB+ rating.
• Despite its impressive fundamentals and core ownership by Simon Property Group and APG, Klepierre's growth is expected to be slower, with a 4% EBITDA increase in 2024.
• The company trades below its EPRA NTA, presenting a 10% discount, but US-based REITs like Realty Income currently offer more attractive investment opportunities.
• I rate Klepierre a "Buy" at €31/share, fulfilling 4 out of 5 investment criteria, but recommend considering US REITs for better value.

Dear readers/followers,

In this article, I'll examine European shopping mall operator Klepierre ( KLPEF ). This is a French-based European Retail REIT, specifically one in the mall segment, with assets across much of Europe. While Klepierre is, unfortunately, one of my smaller holdings in the European Retail/REIT space, it's nonetheless one that has performed well. I wish I could take bigger credit for guiding this REIT, but the fact is that it's the first time I'm providing coverage for it here on Seeking Alpha.

Like many French and some central-European companies, the company doesn't provide frequent results coverage beyond small information updates and beyond annual/half-year updates. This means that despite Klepierre's impressive size, the company is somewhat under-covered here on Seeking Alpha, compared to other large REITs....

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