Mercialys (MERY) H1 2026 earnings summary

Executive summary

• Strong first-half 2026 performance driven by Shop Park model repositioning, operational execution, and broad-based growth across all key financial and operational indicators, with market share gains and portfolio expansion.

• Upgraded full-year 2026 guidance for recurring net income (NRE) to €1.30–€1.32 per share and dividend to at least €1.02 per share, reflecting confidence in operational momentum.

• Portfolio value increased, supported by accretive acquisitions, disciplined development pipeline, and asset transformations.

• Total shareholder return reached nearly 15% over six months, supported by €1 per share dividend and stock price growth.

Financial highlights

• Net rental income up 4.5% year-over-year to €87.2m; organic rental growth at 2.9%.

• EBITDA up 4.8% to €76.2m, margin improved by 70bps to 82.7%.

• Net recurrent earnings (NRE) up 4.1% to €64.1m (€0.69/share, +3.9%).

• EPRA NTA up 3.8% to €16.23/share; EPRA NRV up 4.3%; EPRA NDV up 4.4%.

• Loan-to-value ratio at 41.9%; net financial debt at €1.2bn; average cost of bond debt 3.2%.

Outlook and guidance

• Full-year 2026 NRE target raised to €1.30–€1.32/share; dividend target increased to at least €1.02/share.

• Medium-term growth trajectory reaffirmed, driven by operational outperformance, reversion, external growth, and disciplined development.

• Expect to be a net buyer in H2 2026, with €70m targeted for acquisitions, mainly in France.

• Pipeline CapEx of €100m planned for 2026–2028, with a minimum IRR hurdle of 10%.

• Expectation of indexation tailwind from end-2026/2027 as inflation normalizes.