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Play the reduction of the Klépierre haircut with a turbo call

Weakened by the two periods of confinement, this shopping center property company has a solid balance sheet excluding the hypothesis of a call to the market. The arrival of vaccines should further reduce the discount on the value of the assets. The movement can be played with leverage by means of a turbo call.

With a redundancy of 50% in the space of the last month, the Klépierre stock is experiencing a resurrection as spectacular as its descent into hell in the wake of the contagion of the coronavirus to Europe. In question, the property company had to close for the first time for nearly two months 80% of its hundred shopping centers held in the portfolio in the spring. And again repeated in November on half of the portfolio. Weakened, tenants have, fortunately for a small part, not been able to honor their rents during the closing of their store or have asked for a reduction. At this stage, this has translated into a limited decline of 7.9% in Klépierre’s income at the end of September (918.5 million) and the property company has still not concluded negotiations with its tenants. However, this is the most reassuring in the short term and that the company has a solid balance sheet with net debt representing 40% of the value of its portfolio, which fell only 2.8% in the first half of the year. . Positioned in shopping centers located in the largest cities of Europe (in France, Italy, Spain and the Scandinavian countries), the group is not under pressure to sell at all costs. This allows it to backlash while the covid vaccines arrive and the stores in its centers reopen. A prospect that the market has started to anticipate. But the stock market discount of the Klépierre share of 45% compared to the value of the portfolio of centers (after deduction of net debt) of 34.9 euros per share.

Leverage of 3.54 times

A turbo call issued by BNP-Paribas with no expiry date and with a safety threshold set at 14.43 euros makes it possible to bet on the continued catching up of the action. Be careful, this must not drop below the security threshold of the certificate, otherwise the turbo will immediately lose almost all of its value. Despite everything, the large gap between the share price and this safety threshold limits the risk and allows the time necessary to unwind the position. Meanwhile, the call has an attractive leverage of 3.54 times. So in the optimistic hypothesis of a further rebound in Klépierre share to 21 euros for example, the turbo will appreciate by 41.5%. But conversely if the stock ebbs to 16 euros, the call will lose 52.8% of its value.

Our advice: buy a Klépierre turbo call issued by BNO-Paribas (code: FRBNPP021PR0); term: unlimited; security threshold: 14.43 euros; level of funding: 13.4779 euros; portion: 1 share for 10 turbos; price: 0.53 euro; amount: 1

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