Klépierre Aktie

Hello, and welcome to the Klépierre's First Half 2026 Financial Results Presentation hosted by Jean-Marc Jestin, Chairman of the Executive Board; and Stephane Tortajada, CFO. Please note that this conference is being recorded. [Operator Instructions] I will now hand you over to your host, Jean-Marc Jestin, to begin today's conference. Please go ahead, sir.

Good evening, everyone, and thank you for joining us today to discuss our first half 2026 results. We started the year on a strong footing, carrying over our solid operational momentum from 2025 in a very volatile geopolitical and macroeconomic environment. The retail market has proven strong and demand for high-quality retail space in our malls continue to exceed supply, contributing to a robust leasing tension and boosting our rental uplift.

Our unique retail platform and mix offering provide us with great confidence in our ability to pursue continued growth, sustainable value creation and further increase our shareholder returns.

Over the first half of the year, the group delivered a 4.4% increase in net rental income to EUR 571.9 million. This performance was underpinned by a 3.3% like-for-like growth and generated a solid 4.8% EBITDA growth powered by disciplined cost management, which enabled a remarkable 60 basis points improvement in our EBITDA margin to 86.7%. Overall, we delivered a net current cash flow of EUR 1.36 per share.

Bolstered by sustained demand for profitable, well-located space, combined with very limited new supply, rental uplift on renewals and relettings grew by 5%, while leasing volume was up 8%. Footfall monetization gathered pace with mall income solutions up 13.4% in H1. Our occupancy rate edged up to 97.1%.

Our venues have gained further ground with retailer sales climbing 3.9%, comfortably outpacing national sales indices, and footfall edged up by 1.2%. This positive trajectory was broad-based across all our regions, notably in Southern Europe, which has remained very dynamic across all segments.

With structural tailwinds, a supportive consumption backdrop and strong operating performance all in play, we continue to be compounding our NAV growth, up 5.3% over first half to EUR 37.8 per share. Overall, this marks a growth of more than 10% over the last 12 months and above 20% over the last 2 years.

On top of this, adding the EUR 1.9 dividend paid, we serve our shareholders with a total accounting return of 10.6% year-to-date. We have another half year to go, and as I said, we remain highly confident in further capital appreciation.

We are lifting our 2026 guidance to at least EUR 1.15 billion in EBITDA and to a net current cash flow per share at the high end of EUR 2.77 to EUR 2.8 range.

Let me now highlight what makes our business model so special. We own the right malls in the right places for retailers, a unique portfolio, 70 assets, each a leader in its catchment area, and together, they welcome 720 million visitors a year. We are positioned in the most dynamic parts of Continental Europe where revenue per capita runs 20% above national averages.

Throughout the past years, we have been nimble in allocating capital to capture growth in the most dynamic catchment areas. Spain, Italy and Portugal clearly stand out as we have invested heavily in growing our footprint, including through value-accretive acquisition and targeted extensions. The most recent Bari acquisition and full consolidation of Portimão perfectly illustrate this strategy, reinforcing our position in high-growth markets where our scale, retailer relationships and operational expertise provides significant incremental value.

Today, our Southern European platform has grown to represent 45% of the group net rental income. Great locations are only half the story. We actively manage what is inside our venues. Our portfolio is a dynamic retail platform that we continuously shape to stay ahead of evolving consumer needs. Since 2019, we have grown health, wellness and entertainment-related sales from 30% to 36% of our retail mix. As visitors not only come to our malls to shop and purchase the latest fashionable pieces, but also to splurge on leisure experiences.

While the fashion sector continued to evolve rapidly and remain a key traffic driver, we continue to promote the category's leading brands and fastest-growing concepts. These dynamics have greatly contributed to steadily increasing footfall and the destination bappeal of Klépierre malls. And with 78% of our malls covering the full range of category killers, we offer the complete retail experience. That breadth is precisely what drove the top brands and the footfall to our destination venues, Zara, Sephora, Mango, Uniqlo, Normal or JDSports to name a few.

Our success comes down to active retenanting and speed of execution. Over the last 2 years, lettings to new tenants made up 48% of our total leasing volume. We are highly committed to delivering space and continuously refreshing our venues, opening and enlarging stores for established leaders and fast-growing emerging brands.

Our success lies in speed of execution, a key competitive advantage, allowing swift retail expansion and market share gains by our leading omnichannel retailer with some banners growing their footprint with us by more than 400% since 2019. This active retenanting and fast execution translate directly into strong numbers on the ground. Just over the past 2 years, across our flagship assets, sales density grew between 15% and 32% from Field's in Copenhagen and Le Gru in Italy, to Nueva Condomina and La Gavia in Spain. This strategy pays off, fueling strong leasing tension and contributes to maintaining an elevated occupancy rate across the portfolio.

Demand for space in our venues remain exceptionally strong. We are capturing the leasing tension in our portfolio and this translate into another leasing volume growth of 8% year-on-year over the first half of 2026. At the same time, occupancy edged higher than a year ago to 97.1%. Such leasing tension release further rental uplift on renewals and relettings, reaching a very strong plus 5% year-on-year and consistent with the prior 4 years middle single-digit growth.

Allow me now to stress a significant incremental source of organic growth above and beyond our traditional rental activities. We strive to monetize our qualified 720 million annual visitors. Through targeted specialty leasing actions, retail media campaigns in our malls and car parking services, mall income has accelerated further to 13% growth over the first half. Today, it represents 10% of the group total net rental income, and we expect that weight to further increase as we anticipate growth to remain in the double digits in the foreseeable future.

Our mall income strategy rests on several complementary growth levers. In specialty leasing, we are hiring mall dedicated managers and rolling out a full digital platform to accelerate execution. In retail media, we continue to be modernizing our screen inventory and moving to a more profitable hybrid model.

Finally, in mobility, we are expanding paid smart dynamic parking pricing to capture the scarcity of city center space while rolling out EV charging spaces.

Before we take your questions, let me highlight a few points that underscore the strength of our performance. Our top line growth consistently outpaces indexation. In the first half of 2026, like-for-like net rental income grew 2.5 points above indexation. It's not the market handing it to us through inflation, we are earning it. This is a clear and repeated demonstration of the real structural value we create.

Looking ahead, our growth potential remains fully intact, supported by 3 pillars. Our unique portfolio generates EUR 13 billion in annual retailer sales. Best-in-class leasing and asset management platform, highly supportive market dynamics with no new supply and scarcity of physical alternatives, together, this provides us with a long and visible runway for further growth.

To conclude, our like-for-like net rental income has grown on average 3% above indexation since December 2023, while our NAV was up 26% over the same period. Backed by a fortress balance sheet, the best credit ratings and a historically low net debt-to-EBITDA ratio of 6.6x, our platform continue to deliver sustainable, high organic growth.

Thank you for your attention, and I will now open the floor to questions.

[Operator Instructions] The next question comes from Pierre-Emmanuel Clouard from Jefferies.

So the first one actually is on, I guess you have the question every quarter, but on potential acquisitions. It would be nice if you can guide us through what you are seeing in the market? And if you are foreseeing any large acquisition in the foreseeable future?

Thank you, Pierre-Emmanuel, for your question, which is not the first time we have it. So as you know, we have a fortress balance sheet, and we are still committed to use it to make accretive acquisition. But -- and we are looking at different opportunities all over Europe. But we stay very disciplined both in quality and pricing and acquisition will come when it comes.

Okay. Then my second question is on your EBITDA guidance. If I'm correct, your EBITDA guidance implies a plus 3.2% year-on-year growth, while you already delivered plus 5% in H1. Should we expect any material deceleration in H2? Or should we be aware of anything happening in H2?

No, you should not expect any kind of deceleration in H2. It's just that you have kind of seasonality in the business. And we think this guidance is the right one at this time. We think we are more or less in line with market expectations also. So it's the right place to be, I think, at this time.

Okay. Understood. And my last one is more specific about your retail sales and footfall figures. Can you give us the Q2 numbers for footfall, and retail sales, it seems to decelerate a bit in Q2?

Stephane is looking at it. I think we should look at it over the last 6 months. It has been, as you have seen, a very, very strong Southern Europe, but also Northwest and Central Europe and even Scandinavia. The only region where we see more lukewarm environment is France, where it's only growing by 1.4% and the situation is not really improving or deteriorating. But I would say the pattern that we have seen in Q1 is -- in Q2 is quite similar across the regions.

And I think when we look at the segments, the good news is that all the segments are positive. It's not for the first time, it's now for 2 or 3 years. And even fashion has also delivered a very strong performance with plus 4%. So I would say before looking at the Q1 and Q2 differences, but Stephane, maybe you can add.

Yes. Basically, our Q2 retailer sale is 3.5%. And the footfall in Q2 is plus 1.4%. So basically, it's quite consistent with the trend in Q1. That's why we think the trend of H1 is quite consistent. There is no big difference between Q1 and Q2.

But January was very strong, February a bit lukewarm, March, positive -- very positive, sorry, April a little bit shy of March, May was super strong, June was very strong. So it fluctuates from one month to another. So -- but on -- and I think it has been a good news to see sales developing so well all over the regions and all over the segments.

And I will add that the first view we have for July footfall, we do not have the retail side, it's still early, but it's around 1.5%. So again, very consistent with the trend we have seen in H1 and in Q2.

Okay. That's Clear. And maybe 1 quick follow-up question on potential acquisition. Given your current share price that is now trading above NAV, would you consider any contribution in kind with potential sellers? Or is it something that you are not considering today?

Well, what I like in your question is the world potential. So as long as everything is potential, we can elaborate and speculate. So I think we have been successful over the past years to do some very accretive acquisition. Just maybe to -- that I don't frustrate you too much, I think the investment market has recovered in many places. We have seen more capital being deployed in Spain and even in Portugal, a bit in Central Europe and a bit in Italy. So the investment market is stronger even though it has not completely recovered from pre-COVID times. And so we see a bit more competition, I would say, in the -- on the market. But once more, we are very -- we want to be very disciplined and the Board of the company is also very disciplined on quality and pricing. And yes, it takes a bit more time than what we would have expected, but we are still confident that we will have opportunities.

The way we are going to finance it in the future will always be in the best way for our shareholders return. And yes, and we'll have to be accretive NAV and cash flow. So it will depend at that time where our share price stands.

The next question comes from Frederic Renard from Kepler.

I was waiting to come back on the Pierre-Emmanuel's question on acquisition and I am sorry for that. But you just mentioned that you are very disciplined in terms of pricing. But the way market might see it is that you have the lowest cost of equity at the moment of the retail companies and probably the lowest cost of debt as well. So on top of that, your leverage is quite low. So aren't you afraid of missing opportunities that might be accretive at some point just because you are probably too selective? That's the first question.

Well, selective, so we can turn around the issue as long as we want. But I think the -- when we say we are disciplined, I think we have strategy we want to focus on the large cities and for assets where we can bring value. So in fact, in many circumstances, there are some assets of great quality, but we can't really add value and then pricing is challenging for us. So I think our shareholders will always favor discipline and if it comes with timing, it's okay. So we have seen many transactions of assets yielding quite high, which do not fit to our strategy. So I think, yes, our shareholders favor discipline and even if it comes with timing.

So we have a very strong balance sheet. We are among the few, okay, being able to deliver such growth, okay, with the net debt, which is -- net debt to EBITDA, which is declining and the net debt, which is stable. So we are also pruning the portfolio. We have been selling a couple of assets. So we are long-term committed. So we don't look at our -- at the portfolio size or quality short term, we really look at long term. So we may have some time a bit more disposal and less acquisition, but we are still committed to use our balance sheet the best we can for our shareholders. So -- and I think that's -- and maybe I hope we will not have the same question coming.

No, that's fair. Maybe a second question is, what is explaining the acceleration of -- or at least the acceleration rhythm, I mean, the inflection point? So you had a 13% increase in the mall income in H1 2026 versus full year 2025. Is it a specific lever that is increasing faster than what you may have thought initially? Or how should we read into that?

No, I think what we -- even if you know we are not -- we don't really like to itemize too much the business, okay? But we think we -- there is a lot of question about ancillary income. I think the value of our footfall is much higher than what we sought 5 or 6 years ago. So we clearly have identified 3 levers. We don't talk too much about data and AI, And, okay, we are very on the ground, okay? And there our 3 levers that are contributing each to a good monetization of the footfall, so it's specialty leasing, it's also retail media we are improving quite fast, and also mobility as we explained in the presentation. So we really think it's -- we are not really at the beginning of the journey, but we still have a long road to go, and we see it as -- yes, as a new source of revenue going forward.

And also maybe to add a bit of color for you, Fred. We have better occupancy in specialty leasing. We have stronger rental uplift in specialty leasing. So obviously, that's why the specialty leasing is increasing and accelerating. And because we have put in place a strategy relying on on-the-ground people making the jobs. That's what we have explained in the presentation. We have hired dedicated managers in the shopping malls to boost the brand activations, the events and to boost the specialty leasing that's why specialty leasing is increasing and accelerating on the retail media because we expand and modernize all our screen inventory. So basically, it's a very specific strategy and with very dedicated action and it pays.

Okay. It's fair. And maybe if I may, a last one. I see capital appreciation still at 2.6%, so it's a very good level. I see that the yield is going down. How can you justify lower yield in a higher interest rate environment just purely on rental growth?

No. Basically, we have 2 points. The first point is the cash flow growth. So basically, if you split the 2.6% increase -- like-for-like increase in the portfolio value, 2% come from cash flow growth because the cash flow growing above appraisal expectation. So that's the first point. Because of mall income, because of rental uplift, all what we have explained in the presentation about the growth of the cash flow in H1. Second point, we have 0.6% coming from a better market metrics. And it's just because the discount rate has slightly decreased. The exit rate is the same, but the discount rate has slightly decreased because the investment market, as explained by Jean-Marc, has been much more active in retail in the last 12 months than it has been in the last 4 years. So basically, there is an acceleration of the direct investment market. And the appraisal translated in a lower discount rate because it's less risky.

The next question comes from Kai Klose from Berenberg.

I've got just one question, if I may. This is on the CapEx or the capital expenditure, which, in the first half '26 were a little lower compared to H1 last year. I think that might be seasonal. But could you maybe give an indication what you're planning to spend in the second half as a rough number?

I think for the second half, the CapEx will be probably around EUR 50 million.

Just because in the CapEx you see, in first half, you have EUR 72 million. And if you split the EUR 72 million, the like-for-like is around EUR 53 million, and we expect like-for-like to stay around this level of EUR 50 million in the second half. And you have extension CapEx amounting to EUR 19 million. And obviously, on the extension CapEx, it may be slightly higher than what we have seen in H1.

Yes, probably because we are starting 2 extensions, so -- but that will be not a very material number anyway.

The next question comes from Nicolas Vaysselier from BNPP.

Coming back on the acquisition and investment side. I mean, clearly, you're delevering quite quickly given the operational performance of the firm. I was wondering if no change to the acquisition plans, could you be looking to be doing more in terms of investment CapEx in refurbishment or an extension or even to go in more -- into more complex development projects? And then the acquisition side, I was wondering if you have appetite for doing more deals like you've done in Portugal this year, taking out some minority interest in existing assets? That's my first question.

And secondly, perhaps how do you see indexation playing out into H2 and next year?

Okay. So thank you very much, Nicolas, for all those questions, just more than 2. Okay. For on acquisition, I'm not going to repeat myself. So sorry to skip this one. On development project, we are committed to continue enlarging the -- our flagship malls when required by the leasing tension we are facing. So we are currently doing 1 in -- 1 or 2 in Italy, and then we are starting 1 in France. And we will do -- probably next year, we'll start 1 in Spain. So it will be probably on the top 40 malls where we are deploying CapEx. The return on CapEx, it will never be more than EUR 100 million, EUR 150 million per year, I would say, and the return we are getting on those additional extension will be around 8% to 9%. That's what we have been delivering.

So this is -- we put money at play in our malls, not only to get the return I just explained, but to make our assets even better and to increase footfall. We have, just in the presentation, gave some -- given some example where we have done some retenanting and sometimes a bit of refurb, sometimes a bit of extension or a bit CapEx intensive asset management initiative. And as you can see in Field's, in La Gavia, in Plenilunio, sales density over a certain period of time, it's quite amazing.

So we are dedicated to focus our CapEx -- development CapEx on making our assets better because the leasing tension is really big in our venues. And we are not committed to make any, I would say, complicated development project, greenfield, as you know, we don't like that. And I think it's probably with very low return. And on indexation, maybe you can add something, Stephane.

Yes. Just for your information, Nicolas, you will find in the management report detail because we have a EUR 600 million pipeline of expansion going forward, and we are just deploying our capital on this pipeline, but accelerating could be a challenge because there are a lot of regulation in Europe, and you cannot just accelerate, you need also building permits or the authorization. But we have this EUR 600 million pipeline. So we are confident to deliver it over time.

And then for the question for the way we do acquisition, I'm sorry, but we're not going to tell exactly what we are chasing. And yes, for Portimão, we had the opportunity after 15 years of JV to repurchase our partner, but there is no specific strategy when it comes to our JV partners.

So on indexation, obviously, the inflation environment is quite volatile and has been very volatile over H1. For H2, indexation has already been done. So basically, the full year indexation is 0.8%, and we index invoices for the tenants beginning of the year. So it has been done and it will be 0.8% for the full year for 2026. For 2027, what we see today based on inflation forecast by country is something which could be around 1.4%, 1.5%. But again, it will depend upon the volatility of inflation in H2 will give us the final number for indexation in 2027. But the first computation we have is around 1.4%, 1.5%.

[Operator Instructions] The next question comes from Tom Berry from Green Street.

Just a quick question on, I guess, the other side from a disposal perspective. The Scandinavia portfolio is performing less strongly. Is that something that you would consider sort of recycling out to the higher-growth markets of Southern Europe?

I would say, no. I think the -- if we look at big picture, I think we -- the top 70 assets we own, it's 95% of the portfolio. So we have -- we still own a couple of assets, which by nature are not the most dominant in their catchment area. Doesn't mean they are bad, but they -- we don't have a lot of, I would say, prospect of development and probably they are growing not as fast as the others. But -- so we continuously disposes and recycle, and -- but there is no specific area where we should be concerned or have a specific focus. So it's a bit everywhere. So we will probably, in H2, announce a couple of disposals, but they will be quite minor in amount, maybe EUR 100 million.

Yes. For the H1, we had very limited number. I think it's EUR 15 million. It may accelerate in H2. So for the full year, we could be around EUR 120 million, but H2 is not done yet. But yes, it's more or less EUR 120 million, I think, for the full year.

The next question comes from Valerie Jacob from Bernstein.

I just have a follow-up question on mall income. I mean it's been growing very fast. It's now 10% of the total net rental income. And I just wanted to have your view on the further growth potential, how big do you think it can be in your business? Can we go to 15%, 20%? How do you think about it?

The -- I think the -- for the foreseeable future, let's say, for the next 3 years, even though it's always difficult to predict that, but the business plan for us is to continue to grow it double digit. So we have a very ambitious plan for that. We and the team, they have a road map, which is very ambitious. So I'm confident we can deliver most of it. So this will continue to deliver, yes, double digit for the next couple of years. And then after that, we'll have to look at other sources of revenue. I think we are at the very early stage of how we can monetize our footfall. And what we are doing today, we were not doing it 6 years ago. So I'm quite optimistic.

And just a follow-up on that. I mean, as you showed in the presentation, you've been outperforming indexation quite strongly in the past few years. If I think of the past coming years, your vacancy -- your occupancy, sorry, is quite high, your margins as well and your rental uplift have been around 5% for the past few years. So there is a lot of growth in mall income as we just discussed. But am I missing something? Do you have like another avenue for continuing to outperform indexation that strongly?

No, I think the performance we had over the last 3 years, including H1, show different things. I think the -- first of all, the very starting point of growth is that retailer sales have been growing all over the places and clearly are outpacing national retail indexes. And that's -- the fundamentals are very good. And I think the flight to quality and -- creates a lot of leasing tension, but also customer loyalty and engagement with our venues. So I think this is very -- this flight to quality and the fact that only big malls are taking market share, I think it's very encouraging.

Starting from there, indexation is low and -- but we can always deliver. So the most important is that we still have a reversionary potential. The level of OCR, we always qualify it as at a reasonably low level compared to some of our peers or some other regions. And as sales are also growing, so the -- we have a continuous improvement of our ERVs and so reversion is up. Occupancy is also at a high level. So this will not be a big change in the next year. Maybe we can still improve it in some regions, but this is not a driver. So reversion, low OCR, higher ERVs because the sales are developing a very strong leasing demand, that's the main driver for growth. Specialty leasing, it's not coming from another planet. That's a lot of work. That's also an interesting source of very stable cash flow. And I think we also are doing a bit of extension. So we focus a lot on like-for-like, but I would like to come back to the -- one of the first page of the presentation. We do 4% NRI growth, okay, with a stable debt, okay?

So we are -- even our CapEx intensity, which is quite low, is also generating growth with the debt which is going down. So I think the engine is also when we do development and we are putting CapEx in our malls for extension or refurbishment, it's delivering growth top line. And so it's a combination of different factors. So I'm still very positive.

I think the -- we should not underestimate that the retail environment around us can be complicated. There are many, many malls or high streets that are suffering. And really, the flight to quality give a premium and this will be the big support for growth in the next 3 to 5 years.

[Operator Instructions] The next question comes from Jonathan Kownator from GS.

Just a follow-up to the discussion, which was really interesting. Does that mean that you're essentially expecting the reversion that you capture to increase from the sort of the 5% level that you're generating right now? If your sales increase and your ACR decreases, does that mean that you can continue to push the rent higher?

Well, I think reversion, it's plus 5%. That's a healthy number. But I think what we are -- and I just said, I think the fact that sales are growing at that level, okay, in an environment where GDP growth is what it is in Europe. And clearly, the sales is helping. So every time sales are outpacing indexation by 200 or 300 basis points, okay, this is increasing automatically our ERVs. And that's good news. And then it creates new reversion on the portfolio. So yes, the fundamentals are very strong. And I think we will still deliver substantial reversion on reletting and renewals.

Okay. Maybe one follow-up. both Inditex and HM as 2 examples, who are highlighting that they're continuing to invest CapEx in the their store network, reducing also some of the tail perhaps. But what do you see in your malls in terms of retailers reinvesting in their concepts, putting new CapEx? Are you seeing an accelerating pace, a constant pace, a decreasing pace? What can you tell us from the retailers that you have in your malls?

The -- so we have 11,000 stores, and we have 4,000 -- a bit less than 4,000 retailers. So we can go one by one. But I think the -- what I think is interesting is that in the presentation, what we wanted to indicate that the segment, which has been going through a big transformation has been the apparel or fashion segment in many places, but also the shoes segment. So the -- as you can see, the -- and it's quite substantial on a short period of time to see that the segment, which is wealth -- sorry, health, beauty and entertainment going from 30% to 36% of the sales. It's a big change, which means that the curation of the fashion segment, which was very dominant in the past in our malls, the curation has been delivering positive sales development. And those who are replacing those tenants, they are investing in their stores.

I think the strength of the platform we have is that we are committed to seize any development opportunity of good retailers. So we gave a couple of names in the presentation, but brands like Rituals, like Normal, it's -- for you maybe those names are very -- you are very familiar with, but but they are opening new countries. So I think where we are also very strong, we offer a platform for growth in different countries. So today, some of the brands that were very strong in Spain or very strong in France are now going to Italy and they are investing CapEx.

So I think the -- there is plenty of brands that are really investing in their concept, but also in their supply chain, in their loyalty system and so on, so yes, I think, is thriving in all the segments. So they are, I would say, the usual suspects, and most of them are really investing in our malls, but also emerging brands that were not existing or not as big as they are today, which are also investing in our malls, making new stores.

Expansion of site has been a key driver over the last 3 years. And I think it will continue. The flight to quality for us means a fight for CapEx. So we need to be committed and the speed of execution that's -- we -- it's not just being an observer of what is happening on the retail, it's just the fight for CapEx. And if we are good in executing, obviously, you need to have the best malls, but if you have the best portfolio and you had speed of execution, then you can deliver fantastic growth of retailers. And we have provided some examples and some of them, in a couple of years, they have expanded in our portfolio by 200%, 150%, sometimes 400%. And this speed of execution, this is driving footfall and driving sales.

There are no more questions. So I hand the conference back to the management for any closing comments.

So thank you very much for attending and listening to us. So this has been a very strong half year, very strong retailer sales, good KPIs, good occupation, a lot of leasing deals, strong reversion and growing cash flow and also asset appreciation. So this has been a very strong H1, and we are also very confident on the rest of the year, and we will see you soon. Thank you very much for attending. And for those who are taking an early day break, have -- enjoy it. Thank you very much.

Thank you. Bye-bye.

Hello, and welcome to the Klépierre 2025 Full Year Results Presentation, hosted by Jean-Marc Jestin, Chairman of the Executive Board; and Stephane Tortajada, CFO. Please note that this conference is being recorded.

[Operator Instructions] I will now hand you over to your host, Jean-Marc Jestin, to begin today's conference. Please go ahead, sir.

Good evening, everyone, and thank you for joining us. I'm pleased to present Klépierre's full year results together with Stephane Tortajada, our Group CFO. And once again, 2025 has proven to be a remarkable year for your company. Before presenting our detailed full year results, I would like to stress in the first few slides that our strong 2025 earnings build on our sustained track record.

Over the past 3 years, Klépierre has delivered unmatched growth across the board. Our net rental income has risen by 21%, underscoring the exceptionally strong demand from omnichannel retailers, while our EBITDA has increased by 23%, reflecting the significant operational leverage inherent to our business model.

In addition, our disciplined balance sheet management, combined with our operational excellence, has enabled us to grow our net current cash flow per share by 21%. This outstanding track record reflects the unique quality of platform of leading shopping centers located in the most dynamic and affluent catchment area of Continental Europe.

In recent years, we have undertaken a profound transformation of our portfolio to further align with new consumer behaviors and the continuous expansion needs of major international brands. Since 2020, we have completed over EUR 2 billion of noncore asset disposals, allowing us to refocus the portfolio on malls with the strongest fundamentals while also completing three accretive acquisitions. This reshaping of the portfolio has resulted in net current cash flow per share growth well ahead of retail peers.

Over the past 3 years, not only have we significantly outperformed the European property sector, but also the wider European equity market in terms of earnings growth. Specifically, we generated earnings growth 4x higher than that of the top 20 companies of the EPRA Developed Europe Index and up to 20x that of the broad Euro STOXX 600 index.

Since the valuation through, we have benefited from continued appreciation of our assets that have already delivered 20% NTA growth. Today, our top 70 malls account for 95% of the value of our portfolio. Combining these solid capital-driven returns with consistent and uninterrupted dividend growth, we delivered a total accounting return of more than 31% over the last 2 years. Such a performance is 50% above the second-best performer, and twice that of #3.

Now delving into our 2025 performance. Retailer sales across our malls rose by 3.4% on a like-for-like basis, underpinned by solid consumer spending and our ability to attract leading retail brands, while enhancing the shopping experience. This strong performance, once again, translated into market share gains with retailer sales growth running at twice the pace of national retail indices. Over the years, this momentum delivered a 4.6% rental uplift on renewals and relettings and pushed occupancy up by 60 basis points to 97.1%.

At the same time, occupancy cost ratios improved further to 12.5%, providing us clear headroom for additional rental uplift. More income posted a strong 12.1% increase, supported by the continued expansion of specialty leasing and retail media across the portfolio, and once again, our results beat guidance.

In 2025, we have delivered a net current cash flow per share of EUR 2.72, marking a 5% jump year-on-year. This result was well above the initial guidance of EUR 2.60, EUR 2.65 per share. The group has achieved a 5.1% increase in net rental income to EUR 1.120 billion, outperforming indexation by 330 basis points. This performance was underpinned by a 4.5% like-for-like growth and fueled a 5.5% EBITDA growth. This was supported by controlled payroll and G&A, which enabled a 50 basis points improvement to our EBITDA margin to 87.3%.

For the second consecutive year, our NAV grew 9% again. This increase has brought our NAV per share to EUR 35.9, compared to EUR 32.8 in 2024. Overall, this marks a 19% growth over the last 2 years. Such an increase is driven on the one hand by a positive cash flow effect triggered by an increase in net rental income and, on the other hand, by a positive market effect fueled by slight decrease in discount rates during the past year.

Over 2025, as was the case the prior year, Klépierre generated a remarkable total accounting return of 15% or 31% over the last 2 years. Following our strong operational and financial results, we will propose to shareholders at the forthcoming Annual General Meeting on May 7, the distribution of a cash dividend of EUR 1.9 per share for 2025, representing a 6% spot dividend yield.

Obviously, our achievements are the fruit of a clear strategy that allows us to confidently continue growing in the years to come. We strongly believe in our capacity to deliver further growth through organic means, extensions as well as value-creative acquisitions. First, let me turn to our organic growth drivers. We have consistently delivered rental uplift over the past years, and our ability to continue doing so in the coming years remains fully intact. At the same time, mall income represents a major opportunity to monetize our EUR 720 million annual footfall.

Second, our ability to reshape our shopping centers is unrivaled. At Klépierre, we have the expertise to adjust the scale of our malls and fulfill our retailers' constant demand. To accommodate such demand, we are launching extensions when necessary. Every single project we carry out delivers a minimum 8% hurdle rate, strengthening our shopping centers with increased footfall and retailer sales allowing further market share gains in the catchment area. In parallel, we pursue an active external growth strategy.

We acquire assets, for which we are certain we can create value, assets that both strong fundamentals that are endorsed by leading international retailers and for which we see operating efficiency and significant incremental rental growth potential. But make no mistake, the best portfolio is the one that delivers the highest returns for shareholders.

So why do our malls remain so highly regarded? Because our malls are rightsized for their catchment areas and deliver high sales density per square meter, enabling a gradual rental uplift over time. Additionally, investments to create streaming shopping experiences for our visitors remain core to our strategy. These investments are carried in a highly disciplined manner in order to maximize our cash flow generation and shareholders return.

In addition, new supply in prime shopping centers is extremely limited, which increases further scarcity in the quality space. The A asset category is the one and only that benefits from this setup. As a consequence, our occupancy rate has steadily increased over the past years, reaching 97.1% at the end of 2025, and this is 130 basis points higher than 3 years ago.

In the meantime, category killers continue to expand their store size to support their omnichannel strategy and better meet the needs of their customers. And to keep up with the evolving needs of our retailers, we strive to make continuous portfolio optimizations. By actively rotating our tenant mix, we bring in higher productivity retailers, we elevate our offer and seamlessly replace slower-performing retailers. This ongoing rebalancing enabled us to dramatically increase sales density while clearly enhancing the customer experience through the introduction of innovative brands and the expansion of our leisure and experiential offer.

Consequently, we have seen our overall retail mix shift steadily over the past 5 years, moving towards health-oriented wellness and entertainment categories. Our Health & Beauty and Dining segments, for example, have been the fastest growing over the past 2 years. To name a few brands, Rituals, Normal and Aroma-Zone, a fast-growing pioneer in DIY cosmetics, continue to boom. Our Dining options and retailer mix are once again being refreshed to attract and retain a diverse and evolving demographic as the number of households continue to grow and ongoing urbanization brings more visitors to our malls.

Klépierre continued to maintain a very healthy OCR of 12.5%, compared with 15.9% for listed destination peers. This performance is a direct consequence of our retenanting campaigns that focus on introducing the best retail concepts, delivering exceptionally high sales density. In 2025, sustained leasing tension and continued low OCR drove a solid rental uplift of 4.6% after annual increases of at least 4% every single year since 2022.

Let me now stress the other key source of incremental organic growth, mall income. This encompasses our specialty leasing and retail media activities as well as parking and EV charging stations. These levels have been reactivated recently since 2022 and have been growing at an annual average of 12% ever since. We expect further sustained growth going forward. Specialty Leasing through [indiscernible] pop-ups and Retail Media enables our business partner to engage more directly, more deeply with shopping center visitors.

The core premise of Klépierre's offering to retailers and business partners is at annual 720 million qualified audience, I just mentioned earlier. Such a large cohort provides immediate brand visibility, allowing large-scale promotions, whether through pop-up stores during festive season, major promotional campaigns in our malls or even full mall domination by omnichannel on national brands.

Our nascent retail media business model is clearly shifting from a previously outsourced advertising agency type to a hybrid model. We are actively pursuing to regain full control of our mall ecosystem and better leverage our long-standing relationships with brands and business partner. Practically, by accelerating the deployment of digital screens, including the latest giant led screen technology, we are highly confident in our ability to generate significantly higher average media revenue per footfall than currently.

Overall, Specialty Leasing and Retail Media are two highly complementary and synergistic activities, that let me remind you, require very little CapEx. Regarding parkings, we have taken several initiatives in order to introduce paid parking in a number of countries, in particular, in Southern Europe.

Now turning to our other growth pillar, namely accretive capital allocation. We have the means to achieve our ambition as we have a rock-solid balance sheet, historically low leverage ratio and top credit ratings among our Continental European peer group. Our value creative capital allocation consists of critical extension as we continue to accompany and fulfill anchor omnichannel and iconic international retailers demand in their pursuit of ever larger flagship stores.

Beyond the incremental rental income generated by each extension, such projects unlock substantial value, creating a halo effect across the entire center by driving stronger footfall, lifting total retailer turnover and strengthening leasing extension.

Ultimately, such extensions allow us to gain further market share in the best catchment areas. And to be specific, over the past few years, we have launched very successful extension projects. In the Paris region, for instance, we extended our [indiscernible] mall Créteil Soleil. We subsequently initiated a similar transformative operation in Bologna at Gran Reno, and the results speak for themselves. Rents increased by double digit, if not triple digit since the extensions. Both shopping centers recorded a strong double-digit growth in sales density.

If we take the Créteil Soleil example, rents were up close to 30%, and average sales density per square meter for the whole center increased by 20% since the completion of our extension. This demonstrates again our unique expertise to transform our shopping malls into unrivaled shopping and entertainment venues.

In the same spirit, we have recently launched 3 additional major projects that we are confident, will create further value for our portfolio and for our shareholders. Following the completion of the latest French extension at Odysseum, Montpellier, we have initiated two major transformative projects in Italy, at Le Gru in Turin and Romagna in Rimini. And once completed, this extension will raise both assets into the super prime mall category and will boost our rental growth momentum in 2027.

In parallel, we continue to have appetite for external growth. Any prospective acquisition must not only meet our financial criteria, but most critically, allows us to enhance operational performance through reversion, retenanting and the ability to rolling out our mall income solutions.

O'Parinor and Romaest acquisition in 2024 strongly illustrate our strategy and clinical execution with significant value creation of 71% and 64%, respectively. Our most recent acquisition of Casamassima, the leading mall in the Mari metropolitan area in Italy, meets exactly our requirements, and we will be applying the same recipe, and we are looking forward to generating a high single-digit return as early as in 2026.

In summary, we are confident about 2026 as our organic rental uplift and more income drivers are well positioned in addition to our capacity to carry out high-value extensions and selective acquisition come on top.

Moving to 2026. The resilient macroeconomic and consumption environment, coupled with healthy retail sales backdrop underpin a continuous recovery of the European transaction market. According to European retail investment volumes are to reach over EUR 35.5 billion in 2025, i.e., a 5% increase year-on-year. Shopping centers, in particular, have continued to regain favor with investments accounting for close to 1/3 of total volumes since the start of 2025. This improved investment environment was illustrated by multiple prime mall landmark transactions in 2025.

As a consequence, the strong operating performance of our malls continue to feed the expansionary valuation cycle of our portfolio. Over the last 12 months, our total portfolio valuation increased by 4.9% on a like-for-like basis. Our well-anchored growth profile was reflected into a slight risk premium compression in 2025, though remaining well above those of other asset classes. We believe this compression represents the early innings of a durable ongoing trend.

Building on the positive momentum, we disposed EUR 205 million of small-scale assets, 8% above appraisal value and at a 5.6% blended net initial yield. While we enjoy high visibility on long-term rental growth in a more conducive capital environment, our sound financial structure also provides us great comfort in terms of refinancing and remains a key competitive advantage.

We secured more than EUR 1 billion of long-term financing in the past year with an average 8.5-year maturity at a highly competitive blended yield of 3.3%. The proceeds were notably used for repaying a EUR 500 million bond maturing in February 2026, significantly limiting the impact of refinancing activities on our expected net current cash flow generation for the coming year.

Looking ahead to 2026, as we believe a firmer market is set to provide tailwind for capital appreciation, and as we benefit from visibility on the cost of debt, we expect to achieve a minimum of EUR 1.13 billion of EBITDA and at least EUR 2.75 net current cash flow per share.

Thank you for your attention, and I will now open the floor to questions with Stephane.

[Operator Instructions] The next question comes from Pierre-Emmanuel Clouard from Jefferies.

So my first question would be on the guidance, I know that, I don't know, Jean-Marc and Stephane, you never itemized the guidance, but it seems a bit cautious in my view. So it would be nice if you can give us, let's say, the main building blocks of the guidance, especially on the NII like-for-like rental growth that you are expecting in 2026, in light of the deceleration of indexation, especially in France, and maybe also the expected cost of debt increase that we might expect in 2026.

Okay. Thank you, Pierre-Emmanuel. So I will say first that the guidance is bang in line with the Bloomberg consensus. So I'm not sure it's cautious, I would say it's in line with the market expectation. And second point, I will mention also that this is a usual pattern of guidance at Klépierre because you follow Klépierre for a very long time now that, I think, it's a usual pattern of giving guidance at the beginning of the year. I would not say cautious, I would say, just as usual.

So indexation, you're right, will be lower in 2026 compared to 2025. We may expect indexation around 0.8%, we had 1.8% in 2025. But as Jean-Marc just explained, we feel that we have a lot of levers internal growth first, but also extension plus the acquisition we have just completed end of December in Bari that obviously will be positive for 2026. And for the, you mentioned also the cost of debt, as we have said, we have already covered all the financing for 2026. So you should not expect a big jump in the cost of debt in 2026 for sure.

Okay. And my second question is on obviously your firepower. So if you can give us a view on your current firepower today, in order to keep your A minus rating? And what's your minimum yield requirement, when you are ready to buy assets, I would say, I'll take my chances, but if you have anything to say about the [indiscernible] portfolio, it would be interesting. And also on disposals, what's left in the noncore bucket in 2026 in your view?

Okay. Thank you, Pierre Emmanuel. You have exceeding the 2 questions, but...

It's a blended one.

Yes, and I will answer with pleasure. I think the -- and I will add on the guidance. When we elaborate a budget, we do it very carefully, and we do that at the end of the year in September, October. And what we have also -- and we take what we know for certain, and we have done some disposals also that will have a full year impact, and we have integrated, as usual, no acquisition in 2026 and development project that we have launched, even though they are not very long in terms of construction, they will deliver in 2027.

When it comes to acquisition, we have been quite successful over the recent past to seize some very interesting opportunities where we can really create value. So to the question of what can we do, we look at different type of opportunities. We are extremely selective in terms of pricing. Pricing, it's a combination of, obviously, accretion day 1, compared to our financial metrics, but also the reversionary potential that we can deliver in, I would say, in the next 3 to 4 years. So it's difficult to indicate kind of a threshold that will apply from Scandinavia to Portugal or Italy or France.

I would say we have -- we think we still have some opportunities to look at, but for the time being, there is nothing ready to go. And we don't really comment on rumors. So on the portfolio, you mentioned it's market knowledge that this is for sale. We suspect there is a lot of competition on it. And as you know, we don't really like competition. So we cannot comment. It's a very slow process, we will see.

For disposals, we are still doing it one by one. So just as a reminder, the top 70 assets, that's 95%. So by telling it, we said that there is 5% that are noncore, 5%, it's EUR 1 billion, and EUR 1 billion, when you sell it at EUR 200 million every year, it will take quite a distance to finish it, but we have no pressure to do that. We do it at a good net initial yield above appraisal value. We don't like the impact of dilution. So we tried to combine it with acquisition. So we do it steadily and try to protect the shareholders' return. So yes, we will continue, and it will take some couple of years to finish.

The next question comes from Florent Laroche-Joubert from ODDO BHF.

Actually, I would have a first question, a follow-up question on the guidance for 2026. So I agree with Pierre-Emmanuel that it seems to be very first. And actually, I just looked at what you published last year at the same day, and it was actually quite more the same type of guidance, and we can see that today you deliver plus 5%. So maybe, could you please tell us how you beat your guidance, so we understand that you just put things for which you are maybe sure at 100%. But how can we take into account, for example, some growth, I don't know, in more income or some growth due to revisions, maybe that would be very useful.

No. Thank you, Florent, and happy to see you are in line with Pierre-Emmanuel, but -- the -- on the guidance, as I said, we build and we take what is certain, okay? So most of the time, if we do better than the guidance is because we are delivering what we have at work. So in this presentation, we have remind, I think, the main cylinders for the growth. But this is under construction and needs to be done and to be delivered.

So there is a very high visibility on our rental, on our occupancy, on our rent collection. But on mall income, retail media, retailer sales, also we always assume that retailer sales will be flat because we can't do better than that. And most of the time, we are delivering more than expected, but as this is under construction, we take it as it comes.

So we update the market on our performance on those cylinders. So what we can say that the beginning of the year in terms of sales is very good. We have a good sales for January which allow us also to be more optimistic, even though it's only 1 month. So the sale-based rent, the appetite from retailers is also quite linked to the sales environment. So -- and that's where most of our overall performance come from.

Okay. That's very useful. And maybe a second question on the valuation of assets. So we can see that you have a significant increase this year. You tell us that maybe this is the beginning of cycle. Could you maybe give us maybe more color on your discussion with appraisals on that?

Yes. The first building block for valuation is the cash flow. As you have just said, in 2025, we had better cash flow than expected 1 year before. So just because when you have a better cash flow, it directly translates into a better valuation. This is the first point. So it plays. Second point, it's obviously the fact that we have seen more and more transactions for very prime mature assets in various geography, France, Eastern Europe, Spain, at a very compressed yield starting by 5.

So for the appraisers, it gives really them the comfort to decrease the risk premium they add on the discount rate because obviously, a few years ago, 3, 4 years ago, they were quite cautious because they did not see any significant transaction. Now we see more and more transaction coming. So it gives them the comfort just to decrease the risk premium. So I think when you add these 2 building blocks, it gives us a lot of confidence in the path of decreasing the net initial yield and increasing the valuation going forward.

[Operator Instructions] The next question comes from Frederic Renard from Kepler Cheuvreux.

First, maybe, can you comment on the performance of your mall by geography, which area currently the best and, which are doing worst?

Thank you, Frederic, for your question. It's a very wide question. So are you talking about retailer sales or organic performance or?

Yes.

Yes, retailer sales, I think the pattern is for the last 3 years, I would say, and 2025 is just a confirmation of this pattern. Sales have been increasing everywhere in all geographies, but in Germany. We have a very small exposure in Germany, but the only exception where our sales have been slightly declining, it's Germany. All the rest is positive.

The second pattern is that it's more dynamic in South Europe. So clearly, the Italy, Spain, Portugal are doing more than the average. And together with the Netherlands, it's not really country-specific, it's more asset-specific than country-specific, but that's to answered your question. And there are some variances in Scandinavia. It's below the average, but it's positive.

And France has been a bit more lukewarm, I would say, in 2025 and also beginning of 2026. This is not only in our malls, I think it's something you have been able to see with other release. But overall, I think this is a remarkable year. And when it comes to the segments, they have been all positive, all positive. There is only from time to time, I would say, an accident in some segments like electronics or home equipment on decoration, but even fashion has been positive. And the beginning of 2026, it's everywhere, it's positive, but Germany, every segment is positive, including fashion.

Southern Europe is doing above the average, and for January, the sales that we have just connected is above 2025 numbers, so for 2025 was at 3.8% and January, it's above. So it's quite interesting. What has maybe sometimes when we look at the month to month. So sometimes, months can be a bit slow and the other one, much stronger. So there is quite a bit of volatility from a month to another, but overall, October has been very strong. November has been very strong. December have been weaker, January is very strong. So that's -- there is -- so the geographies are not really meaningful to us because they are all positive.

Okay. Understood. And maybe a second one, I'd like to come back on the capital allocation, if I may. I mean, the stock price has been clearly on fire over the last 3 years on the back of very good assets and liability management, still liability management that put you in a very good shape. But today, it seems to me the capital structure is inadequate and the net debt to EBITDA will continue to go down. And actually, as you mentioned, that you have a good lever from an organic point of view and that will continue like this. So you mentioned that we didn't like competition or you don't like competition. But actually, competition is increasing a bit everywhere for retail. So are you afraid of missing the right opportunities in this market?

Never. Never. No, I think we take it easy, I think, okay? We are in a long-term business, okay? And if we look at the capital allocation, I think there is one strategy, which is very clear. 2025 was the 10th anniversary of the big transformation at Klépierre. You remember, we did the disposal of convenience shopping centers in '15, we acquired Corio. We had, at that time, 300 assets we acquired 57 from Corio. We are left with 70% for 95% of the portfolio. So the capital allocation that's something you build step by step, okay? And you have to make it carefully.

There are so many examples of people going big time, okay? So we do it carefully. So our net debt to EBITDA -- our balance sheet -- and that was -- is, I think, a good achievement is that even though we continue to grow the EBITDA, grow the earnings, grow the dividend, uninterrupted, we deleverage the company, okay? So this is not an objective to deleverage the company. It's just a consequence of managing very well the capital allocation.

So the -- we have a lot of room for maneuver. We have done a very good acquisition, as you have seen in my presentation, where we have created 71% value in O'Parinor, 50-something percent in RomaEst, Casamassima will be there. So we are very -- I don't know if we are selective. We do it a try. Timing is always an issue. It's going to be this year, going to be next year, we'll see, okay? So we invest for the long term. We invest for our shareholders, and we want to find the right product where we can build the rents up quite quickly. So I hope it answered your question. So we are in a strong position, so we cannot regret that, but we will not rush.

The next question comes from Alexandre Xerri from All Invest.

Just one question on my side, also on the capital allocation. With current very limited discount on net asset value. Does this advantage could influence your M&A strategy? And could you consider, in other words, acquisition using equity markets? Thanks to this advantage.

Thank you for the question. That's a question for which I don't have an answer because there is nothing on the radar. There is nothing to build on that. I think the performance of share prices, the testament to the quality of the portfolio, the testament to our capacity never to disappoint to continue to grow, to pay dividend, to have a very strong balance sheet. And as you said, we have ample opportunities to raise capital. So we have easy access to debt, low cost of debt. So unfortunately, your question is too broad, and I can't really answer to that.

But maybe what I could add is that the most accretive way to make acquisition is to be financed by debt. And we have a lot of room of maneuver of firepower is huge today, really huge, because when we increase our EBITDA, we increase our firepower, because -- to keep the same rating.

So I think what we will first do is to look at our internal resources to make it very accretive if we make acquisitions. And then if we have really some very large acquisition, we may think about equity capital market, but the first stage will really be from internal resources.

Okay. Understood. So maybe have you fixed an LTV level, you will not go beyond?

No. We do not really think about LTV. We are more focused on ratings and net debt-to-EBITDA. Net debt-to-EBITDA today is 6.7x, which is the historic low at Klépierre. The rating is the best ever at Klépierre. It's A range, for sure. So basically, we want to keep a high level of rating and have net debt-to-EBITDA, which is in the right range to be A-rated. So basically, we target net debt-to-EBITDA 7.5 around, which is the right place to be for the rating.

Now let me hand the conference back to the management for any written questions.

We have an incoming question regarding taxation on dividends for 2025. So if management could provide us some answers as to whether or not it includes an emission premium.

Yes. So for 2025, we have a SIIC dividend from Klépierre French tax-exempt activities of EUR 0.87 per share and non-SIIC dividend of EUR 1.03 per share. So we do not use the premium in 2025 to answer your question. And the SIIC dividend from French tax exempt obviously, is not eligible for the 40% tax rebate in the tax -- French tax code. .

So thank you, Michael, for your question. .

The next question comes from Tom Berry from Green Street.

A couple of questions really. I guess how many on a capital allocation front, how many more Casamassima style opportunities do you think are out there in the future? Do you think your focus is more tilted towards the value-add side of things? Or do you think maybe more on a stabilized portfolio basis? And then a second question just on the French operating market is obviously a little bit weaker than the others, such as Italy and Spain. How much does that sort of poor macro weigh on your '26 forecast and reversionary potential?

Okay. Thank you for your question. I will try to be specific. So for the I think for the acquisition, if we will only look in countries where we already have a very strong footprint, we think we have a very strong underwriting expertise in France, in Italy and Iberia, probably better than the rest of Europe. So that's probably where we have done a lot very recently. And if we come look 5 years ago, we bought 2 malls in Spain. I think we -- the criteria for us to invest are very simple. It's a big city, regional malls, lifestyle malls, a good set of retailers, strong leasing demand and high sales per square meter. And from there, what can we build? Can we add value? So we try to find something which is not really value add. It's more very strong performance, very good fundamentals where we can roll over our expertise.

And so we will never compromise too much on the fundamentals, okay, and the sales per square meter. And if the OCRs are too elevated or there is not so much a reversion, probably, we are not a good buyer for that. So this is what I would say on the capital allocation profile we are looking for. And I missed the second one, that's for disposals or?

But what I could say maybe on the French environment because you say it looks tough. But when you look at 2025 and if you look at the NRI like-for-like geography. In France, we had plus 4.6%, which is really strong. And in Southern Europe, which is the strongest true, 5.1%. So in terms of NII growth, France was just slightly below Southern Europe, but at a very strong pace. So what I would say is that the French market, there is a lot of buzz about politics, macro, blah, blah, blah, but at the end of the day, consumption is fine. And what we see is that we gain market share in our catchment area.

So, so far, we say the French market is more an impression and a feeling of being weak, but on the ground, in the number, it's fine.

The next question comes from Celine Huynh from Barclays.

Mark, I do apologize in advance for this question. I know you're not going to like it. Simon Properties, the management of Simon recently mentioned on the earnings call, having issued EUR 1.5 million of Klépierre shares. So I was just wondering if you could comment on that? And what are your conversations like with Simon currently regarding the stake?

Thank you for the question. And obviously, I will not be upset, why should I? So I know, I think, if the -- as you know, Simon, is a shareholder of Klépierre and if you have any question regarding their shareholding, I can only recommend you to ask the question directly to them.

So when it comes to the Simon implication in the company, it has been of great support so far, including yesterday where we had our Board meeting to close 2025. So they are still on Board. So on this question, I'm neither upset or surprised, but if you want answers, you should ask them.

There are no more questions, so I hand the conference back to the management for any closing comments.

So thank you very much, all of you, for attending, listening and understanding our fantastic 2025 results and our guidance for 2026. Thank you for your questions. And we will take the road and meet our investors in London and in Paris, and looking forward to do so. Thank you very much.