Mercialys

Latest Results (22.01.2026):

Mercialys — full-year 2023 results (covering year ended December 31, 2023 and including Q4 2023): the company delivered resilient operating performance with net recurrent earnings (NRE) of €109.0m (+3.3%, €1.17/share), supported by +4.1% like‑for‑like organic rent growth and tight vacancy, while portfolio valuations fell (like‑for‑like -7.0%) and EPRA NDV per share declined to €17.10 (-18.4%) reflecting higher appraisal yields and marked‑to‑market revaluations of fixed‑rate debt. Management proposes a €0.99/share dividend and targets at least +2.0% NRE per share growth in 2024 with a 75–95% NRE payout range.

Profitability

Net recurrent earnings (NRE) €109.0m (+3.3% vs 2022), NRE per share €1.17 (+3.3%) — performance exceeds the ≥+2% growth target set for 2023.

Operating income and margins

Invoiced rents €177.5m (+2.8% current; +4.1% like‑for‑like). EBITDA €149.4m (+3.6%) with EBITDA margin 83.9% (vs 83.2% in 2022), reflecting strong letting and tight cost control.

Occupancy & retailer health

Current financial vacancy 2.9% (stable year‑on‑year), total vacancy 4.4%. Tenant sales +2.2% in 2023; occupancy cost ratio improved to 10.7% (from 11.1%), and rent/charges collection rate 96.3% at end‑Jan 2024.

Tenant mix / food retail realignment

Major change to food anchoring: Casino exposure economically 17.4% in 2023 but expected to be replaced progressively by Intermarché, Auchan and Carrefour (pro‑forma shares ~5.2%, 4.1% and 2.0% of rents respectively), improving rental risk profile from 2024.

Balance sheet and liquidity

Drawn debt €1,192m, cash €118m at end‑2023, LTV excl. transfer taxes 38.9%, LTV incl. transfer taxes 36.4%. Interest coverage (ICR) 5.1x — well above covenant minimums; €385m of undrawn facilities available.

Funding costs & hedging

Real average cost of drawn debt 2.3% for 2023 (up from 2.0% in 2022). Fixed‑rate debt hedging ~96% in 2023 with target to reach 100% hedging on residual debt in 2024.

Portfolio valuation and NAV metrics

Portfolio value incl. transfer taxes €2,872.0m (LFL -7.0% year). Average appraisal yield 6.61% (+86bp vs 2022). EPRA NDV €17.10/share (-18.4% year), driven by yield decompression and fair‑value impact on fixed‑rate debt.

Capital allocation & dividend

Board proposes €0.99 dividend per share for 2023 (+3.1% vs 2022), representing 85% of NRE and a 9.9% yield on 2023 year‑end closing price. 2024 dividend policy range set at 75–95% of 2024 NRE to preserve investment capacity.

Growth pipeline and M&A

Project pipeline ~€429m at end‑2023 (retail, dining/leisure, tertiary), with strict hurdle: projects must deliver ≥250bp above refinancing cost. Acquisitions in 2023 include initial stake in Imocom Partners to enhance retail‑park exposure and development capabilities.

Guidance for 2024

Targets: NRE per share growth of at least +2.0% vs 2023 and dividend payout of 75–95% of 2024 NRE. Company emphasizes selective project deployment and preservation of a sound financial structure amid higher interest rates.