Mercialys (MERY) H1 2024 earnings summary

Executive summary

• Completed transition away from Casino Group, now fully multi-anchored with major French food retailers, improving rental risk profile and supporting resilient earnings.

• Shopping centers outperformed the broader retail sector, driven by a rebalanced merchandising mix, dynamic tenant activity, and significant footfall increases at key sites.

• Portfolio focused on affordable retail, with 88% of properties in high-potential suburban catchment areas and 72% located in French suburban areas.

• Consumer trends show strong price sensitivity and a shift toward responsible, value-driven shopping, with hypermarkets and private labels dominating food retail.

• Maintained a low financial vacancy rate and sustainable occupancy cost ratios for tenants.

Financial highlights

• Invoiced rents reached €91.4M, up 4% year-over-year; rental income rose 3.9% to €91.6M.

• EBITDA increased 5.2% to €76.1M; EBITDA margin improved to 83.1%.

• Recurring net earnings grew 3.3% to €59.3M; recurring EPS up 3.0% to €0.63, exceeding annual target.

• Net income attributable to owners was €36.3M, up from €30.4M in H1 2023.

• EPRA NDV per share was €16.53 at end-June 2024, down -3.3% over six months; EPRA NTA per share declined 6.7% year-over-year to €15.85.

Outlook and guidance

• 2024 recurring EPS/NRE per share growth targeted at least 2% over 2023, with dividend payout expected between 75%-95% of recurring net income.

• Continued focus on ESG progress, carbon neutrality by 2030, and prudent financial management.