Mercialys outperforms the market in the first quarter
Despite a sluggish consumer environment and global geopolitical tensions, retail REIT Mercialys reported positive indicators for the first quarter of 2026. Driven by the transformation of its sites, the company has confirmed its full-year targets.
In a French market where households are prioritizing precautionary savings, Mercialys has managed to outperform its sector. At the end of March 2026, footfall across its centers rose by +3.9% on a like-for-like basis, representing a significant lead of 290 basis points over the national panel. Retailer sales followed this trend with a 2.2% increase. However, management noted a slowdown in March alone: uncertainty surrounding the USA-Iran conflict and the resurgence of inflation weighed on purchasing decisions, serving as a reminder of the current fragility of purchasing power.
Active management of rental risk
Invoiced rents amounted to EUR 44.5 million (+1.7%), benefiting from the integration of the Saint-Genis 2 site. While like-for-like growth slowed slightly (+2.0%), this is explained by near-zero indexation and persistent difficulties in the textile sector. Mercialys had to absorb the liquidations of several ready-to-wear brands (Kaporal, IKKS, Naf Naf). The vacancy rate rose mechanically to 2.4%, but the firm remains reassuring: the diversification strategy limits exposure to any single retailer, commercial momentum is strong with 50 leases signed in Q1 (+16%), and high-growth brands such as Action, Normal, or Mango are replacing vacated floor space.
Attractive yield and targets confirmed
The strength of the balance sheet allows Mercialys to propose a dividend of EUR 1 per share at the General Meeting on April 23, offering a yield of 9.1% (based on the annual closing price).
Confident for the remainder of the year, management confirmed its 2026 targets: a funds from operations (FFO) of at least EUR 1.29 per share. For 2027, the group already anticipates a potential rebound in rents thanks to the return of inflation, which is expected to boost the indexation index (ILC) in the second half of the year.
Mercialys is one of France's leading real estate companies. It is specialized in the holding, management and transformation of retail spaces, anticipating consumer trends, on its own behalf and for third parties.
At the end of 2025, Mercialys had a portfolio of 1,996 leases with a rental value of EUR 178.6 million on an annualized basis. It holds assets with an estimated value of EUR 3 billion (including transfer taxes).
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