Invest Securities confirms its buy recommendation on the stock, with a target price of E26.3.

The analyst points out that Klepierre's assets (E17.6 billion) are mainly invested in large shopping centers in continental Europe (including 37.5% in France).

He believes that the very good performance of retailer sales (at 2019 levels), occupancy (95.6%) and reversion (+3% over 9M 2022) are all factors that militate in favor of market rental values capable of roughly keeping pace with inflation.

The real estate company will also be able to rely on assets leased to solid tenants, most of which are located in high-potential catchment areas. Klepierre's debt profile is one of the most attractive of the real estate companies under coverage (average maturity of 6.5 years and LTV of 38.8%), while the portfolio's average yield of 5.2% makes it less sensitive to rising interest rates' says the research firm.

In our opinion, the property company should be able to post steady growth in its dividend over the medium term (TCMA 22e-26e of +4.5%), while maintaining its financial discipline," adds Invest Securities.

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