Mercialys (MERY) Investor presentation summary

Company profile and portfolio

• Operates 47 shopping centers focused on large and neighborhood formats in dynamic French regions, with a total leasable area of 766,412 sq.m and an appraised asset value of €2,879.4m as of June 30, 2024.

• Portfolio is concentrated on high-potential assets, with an average value per center of €61m and a BBB rating with a stable outlook.

• 83.1% EBITDA margin and 36.9% loan-to-value (LTV) ratio, proforma for recent hypermarket disposals.

Financial performance and resilience

• Rental revenues reached €178.3m, with organic growth averaging +3.6% annually since 2015 (excluding 2020), and +4.1% in H1 2024.

• H1 2024 net recurrent earnings rose to €59.3m (+3.3%), or €0.63 per share, exceeding the full-year growth target.

• Portfolio value rebounded with a +2.3% like-for-like increase in H1 2024, driven by rent effects.

• Portfolio yield at 6.68% delivers a +340 bp premium over the risk-free rate.

• Financial vacancy rate stabilized at 3.0% in H1 2024, with a sustainable occupancy cost ratio for tenants.

Strategic asset management and development

• Sale of four hypermarkets in July 2024 for €117.5m strengthened liquidity and investment capacity, aligning with asset rotation strategy.

• Development pipeline totals €432m, with projects in retail, dining, leisure, and tertiary activities scheduled through 2028.

• Synergies with hypermarket operators focus on visibility, footfall, and flexible site adaptation, including potential re-anchoring.

• Progress on key projects includes pre-letting rates of 63% for Saint-André and 47% for Valence 2, with further administrative steps planned.