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:

Key Details

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.)