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Rental revenues stood at EUR 43.8m, down -3.7% YoY following last year's disposals. On a LfL basis, rents were up 2.7%, primarily driven by indexation (+2.5%).Mercialys confirms its FY guidance for net recurrent earnings per share of EUR 1.22 to EUR 1.25.We reiterate our ‘Buy' rating, with a EUR 14.50 TP.
Mercialys Mercialys SA
• Rents stood at EUR 179.5m, up +0.9% YoY and +3.9% on a LfL basis.• FFO stood at EUR 113.1m, up by 3.8% YoY and above FY24 guidance.• Dividend proposal stands at EUR 1.00 per share vs. EUR 0.99 in 2023.• Mercialys guides on a 2025 FFOps between EUR 1.22 and EUR 1.25.• ‘Buy' rating reiterated with a EUR 14.50 TP.
• Rents stood at EUR 134.7m, up 1.9% YoY. On a LfL basis, invoiced rents were up 4% YoY mostly driven by indexation (+4.2%).• End-September footfall was up 2.5% YoY ahead of the 1.2% increase recorded by the Quantaflow index.• FFO per share guidance (“at least 2.0% growth”) and dividend payout range at 75-95% of the FFO.• ‘Buy' reiterated on a decent trading update, supported by the undemanding multiples.• Mercialys is among our Real Estate Top Picks.
Now that the Casino saga is over
Rents stood at EUR 91.6m, up +3.9% YoY and +4.1% on a LfL basis (+4.4 % of which is attributed to indexation). FFO stood at EUR 59.3m, up by +3.3% YoY and above FY24 target of at least +2.0% (EUR 0.63 on a per share basis, +3.0% vs H1 2023).Portfolio value increased 0.4% vs December end at EUR 2.88bn. 2024 FFOps guidance reiterated (at least 2.0% YoY), dividend at 75- 95% of the FFO.We lift our rating from ‘Hold' to ‘Buy' and set our new TP at EUR 13.50 (from Under Review).Mercialys hosts a conference call today at 8:30 CET.
Rental revenues stood at EUR 45.5m, up 4.4% YoY. On a LfL basis, rents were up 4.6%, primarily driven by indexation (+4.6%). The company notes that it witnesses a moderation of reversion levels and focuses on limiting the volatility of the vacancy rate.Q1 footfall was up 2.9% vs 2.1% on the Quantaflow national index. The company continues to expect an upturn in footfall as part of the supermarket replacement. Q1 retailer sales were up 3.3% YoY, with the company witnessing an upturn in growth towards the end of the quarter.The company reiterates its 2024 guidance targeting FFOps growth of at
Invoiced rents landed at EUR 177.5m, up 2.8% YoY and 4.1% on a LfL basis. FFO per share stood at EUR 1.17, +3.3% YoY, a touch above our EUR 1.15 estimate. Proposed dividend for 2023 stands at EUR 0.99, representing 85% of the FFO.Portfolio value stood at EUR 2.87bn, down -7% YoY and -3.7% over 6 months on a LfL basis. Average gross appraisal yield stood at 6.61%.Mercialys' pro-forma economic exposure to food retail is as follows: Intermarché (5.2%), Auchan (4.1%) and Carrefour (2.0%). Casino group would represent 6.2% of rents. Mercialys guides for ‘at least +2% YoY FFOps' increase
Convenience and affordability at the core
Rents stood at EUR 132.6m, up 2.3% YoY. On a LfL basis, invoiced rents were up 4% YoY, primarily driven by indexation.Economic exposure to Casino drops to 17.5% from 18.3% following the transfer of two Casino stores partly owned by Mercialys to Intermarché. FFO per share guidance reiterated (+2% YoY, or EUR 1.15, DPe EUR 1.15) and a dividend of 85-95% of the FFO.‘Buy' reiterated on a decent update, further supported by the undemanding multiples vs peers.
In Q3 23 business continued at a pace very similar to that of the start of the year. Occupancy rates are holding up and Mercialys is deploying an intelligent strategy for the long term. The portfolio remains an attractive value play.
Following the reports from Wereldhave (covered) and Carmila (not covered), Mercialys confirmed a limited level of negative revaluations of around 4% over six and twelve months.
Like-for-like rents up 4.2% YoY driven primarily by the strong indexation (+3.8%).Portfolio value down 3.4% vs December end at EUR 2.99bn. Average appraisal yield up 46bps to 6.21%.OCR stood at 10.9%, declining 20bps vs December end.2023 FFOps guidance reiterated (at least +2% YoY or EUR 1.15), dividend at 85-95% of the FFO.Good results, solid balance sheet and a clear focus on affordable retail position the company well for the future. The news about the future of Casino would likely provide a relief for the stock, which has underperformed its peers by -23.6% (EPRA Eurozone Retail index).The stock trades at an
Affordable retail in the spotlight
As the first retail landlord to release its Q1, Mercialys has underscored the ending of the catch-up in retail occupancy. This was confirmed by Wereldhave earlier today.
On a LfL basis, rents were up 3% driven primarily by indexation (+3.6%) offset by the -1.2% negative impact resulting from vacancy from Camaïeu's liquidation (-0.7%) and a tenant's departure from a mid-size unit (-0.3%) already replaced.Several tenants representing ca. 1.5% of rental income have been placed into receivership or liquidation with the company closely monitoring the situation.2023 FFOps guidance reiterated (at least +2% YoY) and a dividend of 85-95% of 2022 FFO (EUR 0.98-1.09 per share). Buy reiterated.More details our note issued this morning
Mercialys closed its FY 22 with an affordable LTV ratio of 35%. This should support dividend payments in 2023-24 i.e. a 19% cash back.
Rents up 4.1% YoY on a LfL basis, primarily supported by the indexation as well good renewal and relettings activity.2022 FFOps at 1.13, up 3.1% YoY, dividend at EUR 0.96 (+4.3%). Both in line with our estimates.Portfolio value saw a 4bps YoY yield expansion to 5.75%, supported by low vacancy and indexation.Growth acceleration to be supported through targeted acquisitions and the resumption of project pipeline.2023 FFOps guidance ‘at least +2% YoY', with dividend at 85-95% of the FFOps.‘Buy' reiterated on sound operations and attractive valuation. 2023e dividend yield at a minimum of 9.3%.
In Q3 22, the top-line was almost flat ex-indexation. Guidance was confirmed. Betting on a cash dividend in 2023.
