Mercialys (MERY) H2 2024 earnings summary

Executive summary

• Net recurrent earnings rose 3.8% year-over-year to €113.1 million, or €1.21 per share, exceeding targets and supported by strong operational performance in a volatile environment.

• Strategic focus on dominant suburban shopping centers and diversification of tenant base enhanced portfolio stability and reduced single-tenant risk.

• Portfolio occupancy remained high at 97.1–98%, with core sites at 2% vacancy and financial vacancy at a multi-year low.

• Active asset management, including disposals and targeted investments, streamlined the portfolio and improved operational efficiency.

• Maintained a strong dividend yield, averaging 10.2% over 2021–2024, with €361m distributed.

Financial highlights

• Net recurrent earnings reached €113.1 million (+3.8% YoY), or €1.21 per share (+3.7%), with rental revenues up 0.9% to €179.5 million, driven by 3.9% organic growth and indexation.

• EBITDA was €147.2 million, down 1.5% YoY, with a high margin of 82%.

• Net income attributable to owners was €53.8 million, stable year-over-year.

• Dividend of €1.00 per share proposed, yielding 6.1–9.9% on NDV/closing price.

• EPRA NTA per share was €16.29 at year-end; EPRA NDV at €16.45 per share.

Outlook and guidance

• 2025 net recurrent earnings targeted at €1.22–€1.25 per share, with a minimum dividend of €1.00 per share.

• Confident in addressing challenges from 2024 disposals and 2026 bond refinancing, supported by strong operational performance and balance sheet.

• Continued focus on acquisitions, investment pipeline (€417.5m), and ESG progress under the FAIR IMPACTS 2030 strategy.

• Consumption in France expected to remain steady, supported by wage growth, high savings rates, and the "silver economy."