Klépierre: 2010 Revenues

Regulatory News:

As consumer spending picked up gradually throughout the course of 2010, shopping centers continued to reap the benefits of high patronage rates. Local convenience, diversity in the retail mix, the quality of customer care and services are the key factors that drive the success of top-performing facilities. In parallel, retail players demonstrated a remarkable degree of strength: retail repositioning, birth of new concepts, use of new technologies. It would appear that the economic crisis has stepped up the shift in the shopping center to a life space that offers much more than just a spending opportunity.
With the creation of Le Millénaire, Saint-Lazare train station (Paris) and Emporia (Malmö), all shopping centers of tomorrow, Klépierre (Paris:LI) demonstrates that it is more than ever at the heart of this shift.

• Against the backdrop of average revenue growth of 1.2% for retail tenants of the Group, a number of European retailers got back on the track of expansion in 2010, intent on grabbing the best retail locations ahead of the economic recovery.

• A total of 204 lease-ups were signed in 2010, and nearly 1,800 leases were renewed or relet to new tenants. These transactions represent €12.9M in additional rents full year.
  • From the Swedish retailer H&M, which added stores in 4 Hungarian centers, to the Spanish retailer Desigual, future tenant of both Emporia and Le Millénaire, not to mention the Italian Kiko, which will establish its first retail presence in France at the Val d’Europe and Le Millénaire centers, European synergies were fully exploited last year.

• Consolidated rents reached €912.2M in 2010, increasing by 3.6% over 2009.
  • Group share, rents came to 728.2 M€ (+0.8%).
• Retail real estate accounts for 96% of the Group’s consolidated rents.
  • With a financial occupancy rate of 97.1% and a late payment rate of 1.7% (fully provisioned), this segment confirms its capacity to generate recurrent revenues.
  • At €831.7M, shopping center rents rose by 5.6% in 2010, or 0.1% on a constant portfolio basis. The robust performance of the principal countries in which the group operates – Scandinavia, Italy, France – offset the mixed results reported by countries which economies have been more adversely affected. For Klémurs, rents came to €43.8M (+2.4%).
  • In light of the disposals completed in 2009 and 2010, the Office segment saw its rents decline significantly (-26.5%), falling to €36.7M.

…CONSISTENT WITH ASSET ALLOCATION CHOICES

• In 2010, Klépierre pursued its strategy for achieving retail real estate growth (100% of total investments), focusing in particular on the most prosperous regions of continental Europe (87% in France, Scandinavia and Northern Italy).

• Thanks to investor appetite for commercial real estate, the Group was able to sell off a number of non-strategic assets for €320.1M (+9% on average compared with the latest appraised values). On the other hand, investments (€430.9M) mainly focused on development projects with higher yields: extensions of existing shopping centers and the creation of new centers.
• 2011 rents should be slightly above 2010 rents, notably on the back of some of these projects, such as Corvin and the extension of Pescara, open for business in late 2010, as well as Le Millénaire and Portimão, which will open in 2011.

PRINCIPAL FINANCIAL DATA THROUGH 12/31/2010