Jefferies cuts Mercialys to 'hold' amid Casino's woes

Mercialys SA

02/10/2024 07:22

** Jefferies cuts French property management company
Mercialys  MERY.PA  to "hold" from "buy" as supermarket chain
Casino  CASP.PA  will close stores owned by Mercialys
    ** Out of 19 outlets closing this week, six are located in
Mercialys' shopping centres, while two are directly owned by it,
accounting for 1.2% of the firm's annual rents
    ** Jefferies says the closures bring higher risk of
jeopardizing the turnover of other shops in Mercialys' shopping
centres
    ** It expects a rental income loss of around 8%, assuming
that not all stores would close immediately
    ** "For the time being, we assume that Casino will stop
paying its rents in 2025 along with another 0.3% rent loss in
2025 due to higher vacancies," Jefferies says
    ** It cuts Mercialys' PT by 3.8% to 12.50 euros ($13.82)
from 13 euros
    
($1 = 0.9044 euros)

 (Reporting by Gianluca Lo Nostro)
 ((gianluca.lonostro@thomsonreuters.com;))