ANNUAL RESULTS 09/02/2011

Transcription

1 ANNUAL RESULTS /02/2011

2 Disclaimer This document has been prepared by Klépierre (the Company ) solely for use at the presentation of February 11, This document is not to be reproduced nor distributed, in whole or in part, by any person other than the Company. The Company takes no responsibility for the use of these materials by any person. The information contained in this document has not been subject to independent verification and no representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company, its shareholders, its advisors or representatives nor any other person shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction. Participants are invited to read the registration document ( document de référence ) of the Company registered by the AMF on March 8, 2010 and the risk factors described under section L p of the registration document. The registration document is made available free of charge at the headquarters of the Company (Klépierre), on the Internet site of the AMF ( and on the Internet site of the Company ( Certain statements included in the registration document contain forward-looking statements with respect to future events, trends, plans or objectives. The information, assumptions and estimates that were used to determine these objectives are subject to change or modification due to economic, financial and competitive uncertainties. Furthermore, it is possible that some of the risks described in section L p in the registration document could have an impact on the Company s ability to achieve these objectives. Accordingly, the Company cannot give any assurance as to whether it will achieve the objectives described, and makes no commitment or undertaking to update or otherwise revise this information. No assurance is given as to the fairness, accuracy, completeness or correctness of the information or opinions contained in this document. In case of any discrepancies between the information contained in this document and the registration document, the latter will prevail. 02/09/ ANNUAL RESULTS 2

3 2010: restored retailer and investor confidence Consumer spending is resilient in Klépierre shopping centers Tenant sales: +1.2% Stable rents on constant portfolio basis Significant progress on lease-ups for programs under way Retailers expanding again Le Millénaire and Portimão leased up, Saint-Lazare and Emporia are well on their way Investment market and asset values recover For Continental Europe, 14.1Bn in transactions involving retail real estate in 2010 (+93%) Value of holdings (constant portfolio basis): +4.4% over 12 months 02/09/ ANNUAL RESULTS 3

4 Strong increase in NAV and higher dividend M - Total share 12/31/ /31/2009 Change 2010/2009 Change constant portfolio Rents % -0.1% Shopping centers % +0.1% Retail (Klémurs) % -0.9% Offices % -3.3% Value of holdings % +4.4% / share Net current cash flow % Dividend 1.35* % EPRA NNNAV % * Subject to shareholder approval at annual meeting on April 7, /09/ ANNUAL RESULTS 4

5 Contents 1. Business in Financial performances in Development outlook 09/02/2011

6 Rents: outperformance of main countries of operation +1.5% +2.3% +1.3% Growth in rents on a constant portfolio basis and impact of index-linked adjustments +0.2% -0.2% +0.5% +0.7% +0.4% -1.8% Indexation -3.3% France-Belgium Scandinavia Italy-Greece Iberia Central Europe 2% 1% 9% 3% France-Belgium Scandinavia Shopping center rents breakdown: 85% in prosperous countries 6% 13% 44% Italy Poland & Czech Republic Spain Hungary 22% Portugal Greece 02/09/ ANNUAL RESULTS 6

7 Rental reversion potential still significant Volume of leases, relet or renewed ( M) Rental gain Occupancy Taux cost d effort ratio France Belgium Scandinavia % % 10.5% 10.5% Italy Greece Iberia Central Europe TOTAL % % % % 10.5% 12.4% 13.8% 11.1% 200 new leases signed ( 7.3M) leases renewed or relet ( 5.6M) M in full year rents 02/09/ ANNUAL RESULTS 7

8 Recent developments: confirmed success Creation of major shopping centers that dominate their catchment area: Blagnac (Toulouse, France) Odysseum (Montpellier, France) Sollentuna (Stockholm, Sweden) Extension-renovation: October 2009 A sq.m shopping center 2010: 9 million visitors Extension-renovation: March 2010 A sq.m shopping center Creation: September 2009 A sq.m. shopping center 2010: 5 million visitors 02/09/ : 6 million visitors 2010 ANNUAL RESULTS 8

9 Klépierre: 3 key growth drivers Geographic focus France, Scandinavia and Northern Italy are among the most prosperous regions of continental Europe Rental reversion Reasonable occupancy cost ratios and positive relets in 2010 support outlook for rent increases Development pipeline Extension and creation of shopping centers: projects that produce substantial value 02/09/ ANNUAL RESULTS 9

10 Contents 1. Business in Financial performance in Development outlook 09/02/2011

11 Solid operating performances M - Total share 12/31/ /31/2009 Change 2010/2009 Lease income % M - Group share 12/31/ /31/2009 Change 2010/2009 Lease income % Net lease income % Cash flow from operations % Net current cash flow % Net current cash flow / share ( ) % 02/09/ ANNUAL RESULTS 11

12 Disposal prices 9% higher than appraised values 2010 disposal target 250M - 400M Disposals completed 320.1M Assets Shopping centers (Karl Johans Gate, Douai and PHH) Retail - Klémurs (Rouen Candé and Rue de Flandre) Offices (Général Leclerc, Marignan/Marbeuf, Diderot) Floor area (sq.m) Sale price (excl. transfer duties, M) Latest appraised value (excl. transfer duties, M) TOTAL /09/ ANNUAL RESULTS 12

13 Value enhancement: +4.4% constant portfolio Change in appraised values (excluding transfer duties), constant portfolio M - Group share 12/31/ /31/2009 Change 6 months Change 12 months Shopping centers ,7% 4,0% France-Belgium ,6% 7,0% Scandinavia ,9% 5,1% Italy-Greece ,2% 1,0% Iberia ,3% -0,8% Central Europe ,8% -0,5% Retail Klémurs ,9% 8,7% Offices ,3% 0,9% TOTAL ,7% 4,1% M - Total share 12/31/ /31/2009 Change 6 months Change 12 months TOTAL ,8% 4,4% * For Scandinavia, changes are on a constant portfolio and exchange rate basis Rate impact: +3.6% Rent impact: +0.8% 02/09/ ANNUAL RESULTS 13

14 Asset values: recovery gains momentum in 2 nd half Average Shopping centers 6.4% 6.4% 6.3% 6.4% 6.0% Net yield of the portfolio (excluding transfer duties): 6.4% on December 31, 2010: -30 bps over one year 6.7% 6.8% 6.6% 7.7% 7.8% 7.5% 7.7% 7.6% 7.3% 7.5% 7.4% Average Retail 7.1% 7.1% 6.8% Average Offices 6.3% 6.1% 6.5% 5.5 % 5.5 % 12/09 06/10 12/10 12/09 06/10 12/10 12/09 06/10 12/10 12/09 06/10 12/10 12/09 06/10 12/10 France - Belgium Scandinavia Italy - Greece Iberia Central Europe 12/09 06/10 12/10 Retail 12/09 06/10 12/10 Offices 02/09/ ANNUAL RESULTS 14

15 EPRA NNNAV: +9.3% over 1 year / share 12/31/ /30/2010 Change 6 months 12/31/2009 Change 12 months Reconstitution NAV % % EPRA NAV % % EPRA NNNAV % % 1 NAV including transfer duties before deferred taxes and marking to market of financial instruments 2 NAV excluding transfer duties before deferred taxes and marking to market of financial instruments 3 NAV excluding transfer duties after deferred taxes and after marking to market of financial instruments 02/09/ ANNUAL RESULTS 15

16 Greater financial flexibility LTV ratio lowered to 47.2% Dividend in shares ( M in equity) Disposals Higher asset values 52% 50% 48% 46% 44% Loan-to-Value ratio 50.2% 49.3% 48.6% 47.2% 06/30/ /31/ /30/ /31/2010 Liquidity reinforced: 1.4Bn available Successful bond issues in April ( 900M / 8 years / 127 bps) Diversification of resources Rating: BBB+ stable outlook confirmed* Bilateral facilities 11% Mortage loans 31% Financial leases 3% Bonds 30% Syndicated loans 16% Commercial paper 9% Control over cost of debt 4.47% on average in 2010 Debt maturity: 5.5 years on average 12/31/2010 Covenant LTV 47.2% 63%** ICR ** Net debt: 7 325M Value of holdings: M (transfer duties included) * Standard & Poor s s ** Respectively, 60% and 2 after June 30, /09/ ANNUAL RESULTS 16

17 Conservative management of financial risks Extension of interest-rate hedges Cancellation of short swaps (2011) Swaps with deferred start dates Total Group Klépierre Steen & Strøm Hedged rate 63% 65% 59%* Duration of hedge 4.6 years 5.2 years 2.9 years * NOK: 51%, SEK: 59%, DKK: 74% Fixed-rate debt due dates and hedging ( M) Hedges contracted before 2010 Hedges contracted in /09/ ANNUAL RESULTS 17

18 Higher 2010 dividend Dividend over the last 3 years ( /share) % 1.35* Dividend up by 8%, reflecting the improved financial profile of the Group and confidence in its outlook Payout = 69% of net current cash flow, group share, consistent with growth strategy Cash payment on April 14, 2011 * Pending shareholder approval at annual meeting on April 7, /09/ ANNUAL RESULTS 18

19 Contents 1. Business in Financial performance in Development outlook 09/02/2011

20 Investment choices in line with the growth outlook for various European regions Oslo region: +19.7% Metro, Gulskogen Scandinavia: + 9.9% Steen & Strøm Stockholm: +18.0% Sollentuna Ile-de-France: +10.7% Arcades & Val d Europe (ext.) Le Millénaire (Aubervilliers); Saint-Lazare; Claye-Souilly (ext.) Malmö: +15.9% Emporia South of France: +15.2% Saint-Orens (ext.); Blagnac (ext.); Odysseum; Perpignan Claira (ext.); Bègles Arcins (ext. ); Grand Portet, Toulouse (ext.) Budapest: +5.9% Corvin Demo. growth > 10% 8% < Demo. growth < 10% 3% < Demo. growth < 8% 0% < Demo. growth < 3% Algarve: +27.3% Aqua Portimão Madrid region: +10.6% La Gavia Northern Italy: +6.3% Clivia, IGC, Savignano Population growth projections for , Source Eurostat, EUROPOP2008, /09/ ANNUAL RESULTS 20

21 Acquisition made on January 20, 2011: reinforcement on a high potential site in Northern Italy Savignano (Rimini, Italy) Retail park covering sq.m adjacent to shopping center owned by the Group Consolidated floor area ~ sq.m GLA Milan Verona El Corti Venezia Estimated cost price: 69.2M Expected rents: ~ 4.9M Turin Genova Bologna Adriatic sea Rimini Yield: 7.1% Acquisition: January 20, 2011 Mediterranean sea Firenze 02/09/ ANNUAL RESULTS 21

22 The development pipeline is focused on the creation of major leading shopping centers Total pipeline for : 3.7Bn in project value ( 2.8Bn to outlay) Committed projects: 1.2Bn ( 0.6Bn) Initial yield : 7.3% Committed and controlled projects 1% 4% 6% + 90M in full year rents 2011/2012 projects: + 75M in full year rents 39% 50% France Scandinavia Italy Portugal Central Europe Controlled projects: 1.1Bn ( 1.0Bn) Initial yield : ~8% Identified projects: 1.4Bn ( 1.2Bn) 02/09/ ANNUAL RESULTS 22

23 Le Millénaire (Aubervilliers): biggest retail development in France of the last 10 years sq.m of retail space 130 stores, including 18 midsized units and 5 restaurants parking lots sq.m of office space Estimated cost price: 191M* Expected rents: 14M* Yield: 7.4% Pre-let rate: 84% Opening: April 27, 2011 BREEAM / HQE certifications in process * Klépierre share (50%) 02/09/ ANNUAL RESULTS 23

24 Aqua Portimão (Algarve, Portugal): a shopping center in a major tourist destination Algarve: catchment area x 4 in Summer Floor area: 35,500 sq.m. GLA 132 units, 20 restaurants and a supermarket Opening: April 15, 2011 Pre-let rate: 74% Estimated cost price: 40M* Yield: 7.1% * Klépierre share (50%) 02/09/ ANNUAL RESULTS 24

25 Gare Saint-Lazare (Paris): 1 st European railway station (120 M visitors p.a.) Total floor area: sq.m. 80 stores, including 3 mid-sized units Estimated cost price: 150.0M Expected rents: ~ 12M Yield: 8.0% Pre-let rate: 29% Delivery: 1 st quarter of /09/ ANNUAL RESULTS 25

26 Extension-renovation of Claye-Souilly (France): a new leading center at the East of Paris Footfall: 6 million before extension Estimated cost price: 95M Expected rents: 7 M Yield: 7.3% Delivery: 4 th quarter of : a regional shopping center sq.m. GLA ( sq.m.) 130 stores (+45) parking slots (+800) BREEAM certification in process 02/09/ ANNUAL RESULTS 26

27 Emporia (Sweden): In the heart of Malmö s urban project Estimated cost price: 304.2M Expected rents: 22.5M Yield: 7.4% Pre-let rate: 64% Delivery: 3 rd quarter of 2012 BREEAM certification in process Regional population of 3.7M inhabitants 36.7M people cross the Øresund bridge each year sq.m GLA 220 stores parking slots Catchment area: inhabitants DENMARK SWEDEN Copenhagen Malmö 02/09/ ANNUAL RESULTS 27

28 Outlook for 2011 Investments: 500M to 600M Disposals: ~ 200M Slight growth in rents Net current cash flow / share at least stable 02/09/ ANNUAL RESULTS 28

29 Agenda Annual shareholders meeting April 7, 2011 Ex-dividend date April 11, 2011 Dividend payment April 14, st quarter revenues April 27, 2011 (after stock market close) st half results July 25, 2011 (after stock market close) 02/09/ ANNUAL RESULTS 29

30 APPENDICES Retail tenants sales in 2010 Activity by geographic region Activity by segment Income statement (total & group share) Holdings, transfer duties included Development pipeline Debt maturity profile Klémurs key figures Sustainable development approach Macroeconomic outlook 09/02/2011

31 Retail tenants sales in % +0.3% +1.8% Average +1.2% -0.6% -1.6% France-Belgium Scandinavia Italy-Greece Iberia Central Europe 02/09/ ANNUAL RESULTS 31

32 Activity by geographic region Shopping centers 12/31/2010 retailers revenues 1 RENTS ( M) Financial Late payment on a current on a constant occupancy rate rate 3 portfolio basis portfolio basis France-Belgium 0,3% 356,7 348,7 2,3% 0,2% 98,9% 99,0% 0,9% 0,5% Scandinavia 1,8% 183,8 160,3 14,7% 1,5% 95,8% 97,2% 0,6% 0,6% Italy-Greece 5,2% 118,3 100,3 18,0% 2,3% 98,5% 97,7% 2,8% 2,2% Iberia -1,6% 95,0 96,7-1,8% -1,8% 92,7% 92,1% 2,0% 2,2% Central Europe -0,6% 78,0 81,5-4,4% -3,3% 96,0% 95,5% 5,5% 2,9% TOTAL 1,2% 831,7 787,4 5,6% 0,1% 97,1% 97,3% 1,7% 1,2% 1 Cumulative over 12 months for all countries except Belgium, Greece, Spain, Portugal and Slovakia over 11 months. 2 On a constant portfolio and current exchange rate basis, Scandinavia +8.7%, Central Europe -2.5%, Total +1.4%. 3 Rate 6 months out 12/31/2010 Rents on a Financial Late payment on a constant ( M) current occupancy rate rate portfolio basis portfolio basis Retail-Klémurs 43,8 42,8 2,4% -0,9% 99,7% 99,7% 0,1% 0,1% 12/31/2010 Offices 36,7 49,9-26,5% -3,3% 79,5% 81,1% 0,1% 0,0% % without Sereinis. 2 Rate 6 months out Rents on a Financial Late payment on a constant ( M) current occupancy rate rate 2 portfolio basis portfolio basis /09/ ANNUAL RESULTS 32

33 Activity by segment Shopping centers Retail - Klémurs Offices M Total share 12/31/ /31/2009 % 12/31/ /31/2009 % 12/31/ /31/2009 % Lease income* 848,1 802,1 5,7% 45,4 43,5 4,4% 36,7 49,9-26,5% Rental and property charges -97,0-92,7 4,6% -1,4-2,2-34,7% -4,0-3,7 6,6% Net lease income 751,1 709,4 5,9% 44,0 41,3 6,5% 32,7 46,2-29,1% Income from management fees, other fee income** Payroll expense and other operating expenses 96,9 105,7-8,4% 1,2 1,4-16,4% 0,3 0,3 6,6% -119,1-118,3 0,7% -2,3-2,0 13,3% -1,0-1,1-15,9% EBITDA 728,8 696,8 4,6% 42,9 40,7 5,3% 32,1 45,3-29,3% * Entry fees and electricity margin ** Reimbursement of works, various indemnities and tax allowances ( 22M) 02/09/ ANNUAL RESULTS 33

34 Income statement, total share In millions of euros Change 2010/2009 M % Rents 912,2 880,1 32,1 3,6% Other rental income 18,0 15,4 2,6 17,1% LEASE INCOME 930,2 895,5 34,7 3,9% Building expenses (real estate) -2,7-2,7 0,0 0,2% Non recovered rental expenses -38,3-37,0-1,3 3,6% Building expenses (owner) -61,4-58,9-2,5 4,2% NET LEASE INCOME 827,8 796,9 30,9 3,9% Management, administrative and related income 76,5 80,8-4,3-5,3% Other operating income 22,0 27,1-5,1-18,7% Survey costs -4,0-3,3-0,7 21,8% Payroll expense -104,6-103,7-0,9 0,9% Other general expenses -35,4-34,5-0,9 2,6% Amortization allowance for investment property -407,8-369,1-38,7 10,5% Amortization allowance on PPE -8,5-5,0-3,4 68,0% Provisions -0,9-4,4 3,5-80,2% Proceeds from sales of investment property 127,3 87,0 40,3 46,4% Proceeds from sales of short term assets -1,9-0,3-1,5 - RESULTS OF OPERATIONS 489,4 471,3 18,1 3,8% Net cost of debt -295,4-291,9-3,5 1,2% Effects of discounting -0,6-0,9 0,3-33,9% Share in earnings of equity-method investees 1,7 2,4-0,6-26,7% EARNINGS BEFORE TAXES 194,1 180,9 13,2 7,3% Corporate income tax -11,7 26,8-38,5-143,7% NET EARNINGS 182,4 207,7-25,2-12,1% 02/09/ ANNUAL RESULTS 34

35 Income statement, group share In millions of euros Change 2010 / 2009 M % Rents 728,2 722,5 5,7 0,8% Other rental income 13,5 11,8 1,7 14,4% LEASE INCOME 741,7 734,3 7,4 1,0% Building expenses (real estate) -2,4-2,3-0,1 2,6% Non recovered rental expenses -30,4-29,4-1,0 3,3% Building expenses (owner) -42,9-43,7 0,8-1,9% NET LEASE INCOME 666,0 658,9 7,2 1,1% Management, administrative and related income 67,6 70,3-2,6-3,7% Other operating income 16,7 21,5-4,8-22,3% Survey costs -3,9-3,3-0,6 18,5% Payroll expense -92,4-91,4-1,0 1,1% Other general expenses -33,3-30,6-2,7 8,9% Amortization allowance for investment property -334,5-312,3-22,2 7,1% Amortization allowance on PPE -6,9-4,7-2,1 44,9% Provisions -0,8-4,2 3,4-80,9% Proceeds of sales of investment property 115,0 86,4 28,5 33,0% Proceeds of sales of short term assets -1,9-0,3-1,5 456,6% RESULTS OF OPERATIONS 390,6 390,2 0,3 0,1% Net cost of debt -257,0-255,1-1,9 0,7% Effects of compounding. -0,6-0,9 0,3-34,0% Share in earnings of equity-method investees 1,7 2,2-0,6-26,3% EARNINGS BEFORE TAX 133,9 136,5-2,6-1,9% Corporate income tax -9,4 25,6-35,0-136,5% NET EARNINGS 124,6 162,1-37,5-23,1% 02/09/ ANNUAL RESULTS 35

36 Value enhancement: +4.2% constant portfolio Change in appraised values (transfer duties included), constant portfolio M - Group share 12/31/ /31/2009 Change 6 months Change 12 months Shopping centers ,8% 4,2% France-Belgium ,8% 7,3% Scandinavia ,9% 5,1% Italy-Greece ,2% 1,1% Iberia ,3% -0,8% Central Europe ,3% -0,5% Retail Klémurs ,9% 8,7% Offices ,3% 0,9% TOTAL ,8% 4,2% M - Total share 12/31/ /31/2009 Change 6 months Change 12 months TOTAL ,8% 4,5% * For Scandinavia, changes are on a constant portfolio and exchange rate basis. 02/09/ ANNUAL RESULTS 36

37 Development pipeline In millions of euros Estimated cost 1 outlay Amounts to Expected net initial yield 2 Floor area (sq.m.) Aqua Portim ão (Portimão, Portugal)* 40,5 13,6 7,1% Q % 81% Le Millénaire (Aubervilliers, Paris)* 190,9 39,0 7,4% Q % 88% Gare Saint-Lazare (Paris) 150,0 37,7 8,0% Q % 33% Perpignan Claira (extension/renovation, France) 30,7 30,6 8,8% Q % 30% Emporia (Malmö, Sweden) 304,2 151,5 7,4% Q % 70% MGR 3 floor area Claye-Souilly (extension/renovation - France) 94,9 67,0 7,3% Q Bègles Rives d'arcins (extension - France) 59,9 54,9 7,7% Q Carré Jaude 2 (Clermont-Ferrand - France) 99,0 80,4 7,6% Q Besançon Pasteur (France) 54,0 50,1 7,4% Q Other operations (commercial restructuration Créteil Soleil ) COMMITTED PROJECTS ,3% Expected opening date Marseille Bourse (extension/renovation - France)* 16,4 15, Q 2013 Grand Portet (extension/renovation - France) 53,1 52, Mölndal (Sweden) 169,3 145, Torp (Sweden) 124,8 116, Q 2015 Nancy-Bonsecours (France) 146,0 99, Q 2016 Asane (Norway) 103,8 101, Pre-let rate (%) CONTROLLED PROJECTS ~ 8% IDENTIFIED PROJECTS = TOTAL * Klépierre share (50%) 1 Estimated cost price after provisions, ex-interest expense. 2 Net expected rents / total tentative investments, ex-interest expense. 3 MGR: Minimum Guaranteed Rent. 4 Committed projects: projects currently being completed and over which Klépierre has control of the property and has obtained the required permits and authorizations. 5 Controlled projects: projects at an advanced design phase over which Klépierre has control of the property (acquisition completed or promise with suspensive conditions pending delivery of required permits and authorizations) but has not yet received the required permits and authorizations. 6 Identified projects: projects for which negotiations and deals are under way. 02/09/ ANNUAL RESULTS 37

38 Debt maturity profile Authorizations in millions of euros Klépierre (EUR) Steen & Strøm 02/09/ ANNUAL RESULTS 38

39 Rents (in M) Klémurs: robust cash-flow Strong NAV growth Net current cash-flow (in M) % +3,4% EPRA NNNAV / share (en ) % ,2 23,4 23,6 23,8 24,2 24,4 24,6 24, ,2 21,4 21,6 21,8 22,2 22,4 22,6 22,8 20,2 20,4 20,6 20,8 18,2 18,4 18,6 18,8 19,2 19,4 19,6 19,8 17,2 17,4 17,6 17,8 15,2 15,4 15,6 15,8 16,2 16,4 16,6 16,8 14,2 14,4 14,6 14,8 12,2 12,4 12,6 12,8 13,2 13,4 13,6 13,8 10,2 10,4 10,6 10,8 11,2 11,4 11,6 11,8 Distribution per share (in ) 1.54* % * Subject to shareholders approval on April 5, /09/ ANNUAL RESULTS 39

40 Sustainable development: key pillar of our business 1/2 Klépierre s approach includes: Employment, social and environmental considerations A global view encompassing 13 countries Concern for buy-in and feedback from people in the field Ongoing and long-term goals are based on: Realistic action plan ( ) Specific and targeted actions 02/09/ ANNUAL RESULTS 40

41 Sustainable development: key pillar of our business 2/2 Our daily efforts: Conduct dynamic management of human resources Optimize the energy performances of our assets Improve water management and waste enhancement Limit pollution and preserve biodiversity Place clients at the center of our approach Put down deep roots in the community 93% of employees surveyed say they are proud to work for Klépierre Recent accomplishments: Workplace Society International development of SégéCampus Diversity Charter (07/2010) signed and daylong session held in-house to raise employee awareness of the issue Traveling exhibition on the issue of biodiversity, more than 30 French shopping centers took part Norway held a nationwide campaign on climate change (Mister Green) to coincide with Copenhagen Summit -15% Decrease in average consumption of electricity for Klépierre s European holdings between 2005 and 2009 Environment ISO certification for Ségécé Spain and the La Gavia (Spain) and Parque Nascente (Portugal) centers Improvement in energy measurement in shopping centers (such as Foncière Louvain La Neuve, 28% reduction in power consumption 2009 to 2010) 02/09/ ANNUAL RESULTS 41

42 Sustainable development: market and players acknowledge our commitment Ratings steadily rise Notation SAM Research 2006 Sco re to tal D imensio n enviro nnementale D imensio n so ciale D imensio n éco no mique Continental Europe s only listed real estate investment firm in these 6 indices: ASPI Eurozone (since 2004) Kempen SNS European SRI Universe (since 2010) Dow Jones Sustainability Index Europe (in 2004 and since 2007) Ethibel Excellence (since 2009) Ethibel Pioneer (since 2010) Dow Jones Sustainability Index World (since 2004) 02/09/ ANNUAL RESULTS 42

43 Macroeconomic outlook SCANDINAVIA (20%) Unemployment rate Household spending Household debt* Norway 3.9% 2.8% 82.7% Sweden 8.0% 3.0% 83.5% Denmark 7.2% 1.6% 157.2% FRANCE/BELGIUM (39%) Unemployment rate Household spending Household debt* France 9.1% 1.6% 69.5% Belgium 8.8% 1.7% 54.7% CENTRAL EUROPE (8%) Unemployment rate Household spending Household debt* Poland 8.9% 3.0% 33.0% Hungary 11.7% 2.0% 40.8% Czech Republic 7.1% 1.5% 30.5% Slovakia 13.4% 0.4% 47.8% Unemployment rate IBERIA (11%) Household spending Household debt* Spain 19.1% 1.7% 90.2% Portugal 11.4% -0.7% 111.4% ITALY/GREECE (13%) Unemployment rate Household spending Household debt* Italy 8.5% 0.6% 53.3% Greece 14.5% -4.3% 61.7% Source GDP growth for 2011 / Rate of unemployment / Growth in household spending: OECD Economic Outlook No. 88 November 2010 Source EU Economic data pocketbook - Issue number 2/ th December 2010 *In the absence of data for 2009, 2008 data used 02/09/ ANNUAL RESULTS 43