Profit stagnates at French firm with Simon Property ties

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Klepierre SA, the Paris-based shopping-center landlord that's 27-percent owned by Simon Property Group Inc., said first-half profit was little changed as disposals curbed rental income growth.

Pretax earnings excluding one-time charges, known as net current cash flow, increased to the equivalent of $1.21 a share from about $1.20 a year earlier, the company said in a statement after the market closed Tuesday.

Klepierre, Europe’s second-largest publicly traded mall operator by market value, predicted a “slight” drop in the full-year figure after the company issued more shares in May. Indianapolis-based Simon bought its stake in the French company from BNP Paribas SA in March for about $2 billion.

Klepierre said it’s on target to raise about $1.2 billion from disposals by the end of 2013 after selling or agreeing to sell $630 million of real estate in the first half.

The company manages or owns properties valued at about $20 billion. Net asset value fell to about $35.90 a share from $38.10 at the end of last year, according to Tuesday’s statement.

Rental income gained 3.2 percent, to $590 million, Klepierre said. The company has dropped 5.2 percent in Paris trading in the past 12 months, cutting its market value to roughly $6.3 billion.

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