France's Mercialys nine-month rental revenue rises
France's Mercialys nine-month rental revenue rises
Overview
France retail real estate firm's nine-month rental revenue rose 2.6% to EUR 138 mln
Company reported 5.4% rise in footfall and 3% increase in retailer sales year-to-date
Financial occupancy rate reached 98.2% at end-September
Outlook
Mercialys confirms 2026 RNR per share target of €1.30-€1.32
Company maintains 2026 dividend target of at least €1.02 per share
Company expects positive rent indexation to support growth in 2027 and 2028
Result Drivers
MARKET SHARE GAINS - Co said its Shop•Park model helped it gain market share by meeting household purchasing power constraints
ANCHOR TENANTS - Co attributed positive footfall trends to strong performance of anchor food retailers like Leclerc, Intermarché and Lidl
LOW-PRICE OFFERING - Everyday-low-price focus by majority of retailers helped capture shifting retail demand
Company press release: ID:nBw5jcPVXa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Rental Revenue |
| EUR 138 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy"
Wall Street's median 12-month price target for Mercialys SA is €11.50, about 18.8% above its October 14 closing price of €9.68
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Oct 14 - Lufthansa wins race for €1.2 billion stake in Portuguese carrier TAP
Oct 15 - French inflation rises to 3.4% in September, highest since January 2024
Oct 12 - French third-quarter growth seen at 0.1%, central bank says
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)