Carrefour Real Estate: An In-Depth Look at the Group’s Property Empire
Carrefour Property operates as the real estate arm linked to the French supermarket giant. In 2022, the group reported a notable rise in profits while revenue stayed largely stable, reflecting a business model built on ownership of prime retail and mixed-use assets that are leased to Carrefour supermarkets and other tenants. The year saw rental income mix and asset performance aligning with a strategy of owning a broad portfolio rather than relying solely on store operations.
This arm holds the majority of assets and then leases them to the main customers, with rents paid by the stores themselves. The portfolio includes a substantial stream of rental income from in-house tenants and a portion sourced from third parties. A ranking by a major Spanish newspaper placed Carrefour Property as a leading owner of shopping centers in Spain, boasting a substantial portfolio with hundreds of properties and millions of square meters of gross leasable area across retail, logistics, and mixed-use developments.
The group acknowledges that geopolitical tensions and transport disruptions impacted results, yet emphasizes a rapid and effective response to maintain property utilization. Moving forward, the strategy for 2023 centers on optimizing existing spaces, pursuing urban transformations where necessary, and seeking new operators for centers. Carrefour Property also aims to grow its assets under management, with a current emphasis on expanding the portfolio comprised of large-scale properties.
The company maintains a conservative debt profile. On its balance sheet dated December 31, 2022, short-term liabilities stood at a modest level, supported by manageable long-term obligations. Distribution to the parent company remained substantial in the previous two years, while the entity has provided limited disclosures beyond what is required by the Trade Registry.
Carrefour Real Estate Sales
Although Carrefour Property does not publish a market value for its entire asset base, estimates place the portfolio well above the two-billion-euro mark. The appraisal of a potential sale, assuming a full rent guarantee in a sale-and-leaseback scenario, suggests lower profitability and a higher selling price. A recent asset impairment review indicated no write-downs, a stance that stands in contrast to peers in the Ibex-35 index that reported portfolio devaluations during 2022.
In recent years, the unit has completed several divestments. In 2021, five hypermarkets with shopping galleries were sold for a substantial sum. In 2022, six supermarkets and two farms were transferred to group entities, with proceeds in the hundreds of millions of euros. Overall sales proceeds exceeded the asset carrying value by a considerable margin, underscoring the portfolio’s evolving composition and strategic focus on core assets.
Shopping Malls and Market Dynamics
Spanish shopping centers have bounced back from pandemic-era lows as visitor numbers recovered in 2022. Data from the leadership association for shopping centers indicates that traffic returned to near pre-crisis levels, while annual sales rose to levels supporting continued investment in retail real estate.
The year also featured active investment in asset acquisition and disposition. Notable transactions include a major shopping center purchase by an international fund and another center acquisition by a European investment firm. These movements reflect ongoing appetite for high-quality retail and mixed-use properties, with the market seeing robust demand from a range of global players in the sector.
Who Owns the Major Spanish Shopping Centers?
The landscape features Carrefour Property alongside Carmila as the largest owners in Spain, each boasting dozens of assets across the country. Other significant players include Alcampo with a strong footprint, as well as dedicated property groups and listed real estate companies. The field also includes international landlords and real estate specialists that operate on a global stage, underscoring the competitive and diversified nature of modern retail real estate ownership.