Mercialys, a leading French real estate investment trust (REIT) specializing in retail spaces, reported robust financial performance for the first half of 2026, prompting an upward revision of its full-year guidance. The company’s net recurrent earnings (NRE) rose 4.1% year-on-year to Euro 64.1 million, or Euro 0.69 per share, reflecting successful operational execution of its Shop•Park hybrid retail model. Driven by this momentum, Mercialys increased its full-year NRE target to a range of Euro 1.30 to Euro 1.32 per share, up from the previous minimum of Euro 1.29, and raised its dividend target to at least Euro 1.02 per share from Euro 1.00.

The strong earnings growth was underpinned by a 4.8% increase in EBITDA to Euro 76.3 million, with the EBITDA margin expanding by 70 basis points to 82.7%. This improvement resulted from organic rental growth of 2.9% and disciplined cost management, including early gains from an artificial intelligence program aimed at reducing operating expenses. Net rental income grew by 4.5% to Euro 87.2 million, with reversion rents contributing 2.3% as they offset a decline in indexation effects to just 0.1%.

Operational Highlights

The company’s portfolio demonstrated significant outperformance against national benchmarks during the period. Footfall across Mercialys’ sites increased by 4.5%, surpassing the Quantaflow national panel by 370 basis points, while retailer sales grew by 2.3%, exceeding the FACT national index by 280 basis points. The current financial vacancy rate remained low at 2.1%, with 90% of vacant units linked to recent apparel retailer liquidations already re-let. Notable new leases included signings with Legami, Primark, Action, and everyday-low-price retailers Normal and Adopt.

Portfolio Value and Financial Structure

Mercialys’ portfolio appraisal value, including transfer taxes, reached Euro 3,063.2 million at the end of June 2026, representing a 4.6% increase over 12 months. The average appraisal yield rate remained stable at 6.63%. EPRA net tangible assets (NTA) per share rose 3.8% to Euro 16.23, while EPRA net revenue value (NRV) and net distributable value (NDV) per share increased by 4.3% and 4.4% respectively.

The company maintained a robust balance sheet with a loan-to-value (LTV) ratio of 41.9%, improving by 10 basis points year-on-year. Net financial debt stood at Euro 1.2 billion, with an average cost of bond debt at 3.2% and an average maturity of 3.8 years. Standard & Poor’s reaffirmed Mercialys’ BBB rating with a stable outlook on October 17, 2025.

What the Numbers Show

A key analytical observation is the shift in revenue drivers: reversion rents have become the primary engine of organic growth, contributing 2.3%, while indexation effects dropped sharply to 0.1% from 2.5% in the prior year. This transition highlights the portfolio’s ability to generate value through active leasing and tenant mix optimization rather than relying solely on inflation-linked adjustments. Additionally, the expansion of the EBITDA margin by 70 basis points alongside revenue growth indicates effective cost control and operational leverage, reinforcing the sustainability of the raised dividend and NRE targets.

Mercialys has disclosed the resources recorded in its liquidity account entrusted to Oddo BHF SCA as of June 30, 2026. The account held 261,741 shares and Euro 4,355,705.39. This represents a change from the 305,365 shares and Euro 3,663,832.39 recorded at December 31, 2025.

The liquidity agreement was implemented on January 2, 2019, with initial resources of 345,930 shares and Euro 2,389,808.95. The agreement aims to ensure the liquidity of Mercialys shares on the market.

Transaction Activity (January 1, 2026 – June 30, 2026)

Between January 1, 2026, and June 30, 2026, the liquidity account executed a total of 7,072 transactions. The activity comprised both purchases and sales to manage market liquidity.

Mercialys is a French limited company (société anonyme) with a capital of Euro 93,886,501. Its registered office is located at 16-18, rue du Quatre-Septembre, 75002 Paris, France.