By Pietro Lombardi
Klepierre SA said Friday that business conditions strengthened in the third quarter, as people returned to malls and the collection of rents from retailers improved, but offered a cautious outlook for the rest of 2020 after new restrictions were imposed in countries affected by new waves of coronavirus cases.
The French shopping-mall operator said total revenue fell 7.9% in the first nine months of the year to 918.5 million euros ($1.09 billion). Rental income from shopping centers, which accounts for most of the company's revenue, fell 7.1%.
"During the third quarter of 2020, Klepierre observed an encouraging recovery in terms of sales, footfall and collection rates, marking a clear improvement compared to the first half of the year," it said.
However, new restrictions to curb recent waves of coronavirus cases affect roughly 10% of its portfolio.
Looking at the fourth quarter, "Klepierre is maintaining a cautious stance regarding how the pandemic will evolve and impact its various geographies and the group's businesses."