Slide 1: 2024 Full-Year Results
2024 FULL-YEAR RESULTS February 12, 2025
Slide 2: Preliminary remarks
Preliminary remarks 2024 FULL-YEAR consolidated financial statements were approved by the Board of Directors on February 12, 2025 THE AUDIT PROCEDURES have been completed by the statutory auditors. The audit certification report is underway 2024 FULL-YEAR RESULTS 2
Slide 3: Contents
Contents 01 02 03 04 01 Re-anchored portfolio generating a recurrent return 02 Strong financial foundations to drive investment 03 2024 full-year earnings Outlook 04 Re-anchored portfolio Strong financial foundations 2024 full-year earnings Outlook generating a recurrent to drive investment return P
Slide 4: Re-anchored portfolio generating a recurrent return
01 RE-ANCHORED PORTFOLIO generating a recurrent return
Slide 5: Fulfilling the REIT promise: NRE upward trend and strong dividend yield
Fulfilling the REIT promise: Net Recurrent Earnings on a regular upward trend and strong dividend yield 3.4% NET RECURRENT EARNINGS CAGR FOR 2021-24 10.2% AVERAGE DIVIDEND YIELD WITH A STRONG FINANCIAL STRUCTURE OVER 2021-2024 LTV (1) < 37% €361m of dividends (2) maintained over the period distribut
Slide 6: Mercialys focused on peripheral shopping centers, the dominant consumption model in France
Mercialys focused on peripheral shopping centers, the ultra-dominant consumption model in France Among the general population, the suburban shopping center is by far the preferred model for grocery shopping, well ahead of city-center formats Over 50% of the population of French cities live in their
Slide 7: Proven liquidity across the cycles, instrumental in withdrawal from non-strategic centers
Proven liquidity for Mercialys across the cycles, instrumental in its withdrawal from non-strategic centers DISPOSALS COMPLETED CONTRIBUTING TO IMPROVED RENTAL EXPOSURE 28.7% 27.3% Objective: no 22.7% 22.4% 21.0% 20.5% individual tenant > 5% of rental income 5.6% 230 135 101 82 27 4 27 2018 2019 202
Slide 8: Ongoing geographic and qualitative portfolio repositioning
Ongoing geographic and qualitative portfolio repositioning resulting in high and stable occupancy level 4 SITES 33 LEADING SHOPPING CENTERS 9 NON-CORE SITES < 2% OF THE PORTFOLIO VALUE 95% OF THE PORTFOLIO VALUE < 4% OF THE PORTFOLIO VALUE to be redeveloped catalyst for rent reversion in the medium
Slide 9: Network built around key French metropolitan cities
Network built around key French metropolitan cities in 4 major geographical areas MEDIAN ANNUAL STANDARD OF PARIS LIVING (2021) (1) €23,420 €22,810 BREST RENNES €21,990 €21,400 TOURS 24% 27% DIJON Rhône-Alpes, 4 TARGET GEOGRAPHICAL AREAS with some Brittany, Swiss border of France’s highest living st
Slide 10: Balanced selection of food retail anchors and rental exposure
Balanced selection of food retail anchors and rental exposure to food operators for Mercialys MERCIALYS’ ECONOMIC RENTAL EXPOSURE (1) TO HYPERMARKETS & SUPERMARKETS AT END-2024 5.2% 1.6% 0.2% 0.1% 2.1% 5.6% 1.2% ONGOING OPERATIONAL TRANSITION AND PROJECTS UNDER CONSIDERATION INCORPORATING MID-SIZE S
Slide 11: Positive market share impact of consolidation of French food retailers
Positive market share impact of the consolidation of French food retailers benefiting consumers’ purchasing power MARKET SHARES OF FOOD DISTRIBUTOR GROUPS IN FRANCE PRICE RANKING OF FRENCH FOOD RETAILERS (2) AT END-2024 AND CHANGE VS. 2023 (1) AVERAGE BASKET PRICE (2) 24.7% Significant market share
Slide 12: Pricing, variety and accessibility at the heart of shopping center attractiveness
Pricing, variety and accessibility are at the heart of the attractiveness of shopping centers, across all generations The convenience of both access and “everything under the same roof”, along with price affordability, are at the heart of shopping centers' appeal The return to physical retail is par
Slide 13: Merchandizing-mix evolution and top-tier brands signed over last 5 years
Merchandizing-mix evolution and top-tier brands signed over the last 5 years contributing to the leadership of Mercialys’ centers BREAKDOWN AND EVOLUTION OF MERCIALYS’ ANNUALIZED RENTAL INCOME BY BUSINESS SECTOR (%) -220 bp 2020 2021 2022 2023 2024 29.2% -430 bp +300 bp 17.3% +240 bp 19.0% 14.7% +30
Slide 14: New food anchors boosting footfall and retailer sales in 2024
New food anchors already starting to boost footfall and retailer sales in 2024 before their upcoming renovations CUMULATIVE CHANGE IN FOOTFALL CUMULATIVE CHANGE IN RETAILER SALES AT END-DECEMBER 2024 (1) AT END-DECEMBER 2024 (1) (% change vs. FY 2023) (% change vs. FY 2023) Mercialys +2.7% Mercialys
Slide 15: OCR driving medium-term reversion potential while supporting low vacancy
OCR driving medium-term reversion potential while supporting the low vacancy rate OCCUPANCY COST RATIO EXCLUDING ANNUAL COLLECTION RATE FOR LARGE FOOD STORES (1) RENTS AND CHARGES 11.1% 97.2% 97.7% 10.9% 10.8% 96.2% 10.7% 2022 2023 H1 2024 2024 Collection of 2023 rents & Collection of 2023 rents & c
Slide 16: Financial vacancy rate at its lowest level since 2019
Financial vacancy rate at its lowest level since 2019, with 2.0% for core assets, close to a frictional level FINANCIAL VACANCY RATE 2.0% AVERAGE VACANCY RATE ON THE 33 CORE ASSETS ACCOUNTING FOR 5.4% 95% OF MERCIALYS’ PORTFOLIO VALUATION 4.9% 4.4% 4.4% 4.1% 95% 1.6% 1.7% 3.2% 1.5% 1.5% 1.2% 0.7% 3.
Slide 17: Positive reversion of +0.3% on core operations
Positive reversion of +0.3% on core operations, with strong fundamentals to fuel medium-term potential 2024 REVERSION ON STANDARD RELETTINGS AND RENEWALS: +0.3% Transitioning of 6 small units into mid-size stores suited to Sector repositioning of a mid-sized store in Marseille: attract leading brand
Slide 18: Steady progress with our sustainability roadmap with 2030 in sight
Steady progress with our sustainability roadmap with 2030 in sight, supporting operational efficiency FOR OUR STORES › Asset certification: 100% of strategic assets certified FOR OUR ENVIRONMENT (in line with target) › Carbon neutrality: 13.7 kgCO2eq.sq.m vs. 23.3 kg in 2017 › Responsible retail off
Slide 19: Moving towards carbon neutrality: new carbon trajectory to SBTi
Moving towards carbon neutrality: new carbon trajectory to be submitted to SBTi for certification A MORE AMBITIOUS CARBON TRAJECTORY FOR MERCIALYS (in kgCO² / sq.m) 30 FORMER TRAJECTORY, certified in 2019, compatible 25 with a temperature increase of less than 2°C 20 15 10 TRAJECTORY REVISED TO ALIG
Slide 20: Strong financial foundations to drive investment
02 STRONG FINANCIAL FOUNDATIONS to drive investment
Slide 21: 2 bond operations achieved in Q3 2024
2 bond operations achieved in Q3 2024, improving the liquidity, maturity and cost of drawn debt Refinancing operations concluded in September 2024, illustrating Mercialys’ smooth access to the market, enabling it to extend its debt maturity (3.8 years at end-2024), while optimizing financing costs 7
Slide 22: Optimized cost of debt, with significant margin vs. appraisal yield
Optimized cost of debt, with a significant margin vs. the appraisal yield 2.0% average cost of drawn debt, optimized through the bond operations and a dynamic cash management policy Following the adjustment of appraisal yields over 2020-2024, the spread with the average cost of drawn debt reached 46
Slide 23: Sound credit metrics, allowing for capital deployment
Sound credit metrics, allowing for capital deployment STANDARD & POOR’S RATING: BBB / STABLE EXTENSIVE COVENANT HEADROOM AT END-2024 Renewed on October 24, 2024 both on LTV (< 55%) and ICR (> 2x) CHANGE IN NET DEBT / EBITDA CHANGE IN LTV AND ICR 5.9x 5.5x 9.1x 5.0x 5.1x 5.1x 7.6x 38.1% 38.9% 38.2% 3
Slide 24: Acquisition of the remaining 70% shares in Imocom Partners
Acquisition of the remaining 70% shares in Imocom Partners in Q1 2025 2nd PHASE OF THE TRANSACTION TO BE COMPLETED IN FEB. 2025 › 30% of Imocom Partners acquired for €5.7m in Dec. 2023 › Mercialys will acquire the remaining 70% in Feb. 2025 (1) STEADY RETURNS FROM THE EXISTING LEADING RETAIL STRONG
Slide 25: Accretive development pipeline and potential acquisitions
Accretive development pipeline and potential acquisitions TOTAL INVESTMENT STILL COMPLETION (€m) INVESTMENT TO BE SPENT DATE COMMITTED PROJECTS 22.8 22.2 2025/2027 Tertiary activities 21.5 20.9 2027 CONTROLLED PROJECTS 184.4 175.9 2025/2028 Retail 144.2 136.1 2025/2028 Dining and leisure 11.1 11.0 2
Slide 26: Transforming an aging site into a neighborhood in Saint-Denis
Transforming an aging site into an open, landscaped neighborhood in Saint-Denis (Paris Region) In 2025, Mercialys, in partnership with the developer Telamon, will be able to continue the project in Saint-Denis (Paris Region) This involves the creation of 270 residential units and student housing for
Slide 27: New mixed-use business park in Saint-André (Reunion Island)
Development of a new mixed-use business park on Mercialys’ land bank in Saint-André (Reunion Island) Mercialys is working on the administrative authorizations for the development of a 15,000 sq.m mixed-use business park in Saint- André (north-east of Reunion Island), expanding its network in this re
Slide 28: Mixed-use project in Angers
Implementation of Mercialys’ expertise on mixed-use project in Angers MERCIALYS’ SHOPPING LAND BANK CENTER Mercialys signed a sales agreement in Jan. 2025 with a public institution for a 1.6 ha land bank in Angers, adjacent to the Company’s leading shopping center. ANGERS SITE – BEFORE THE PROJECT T
Slide 29: Project under consideration on Brest's hypermarket
Project under consideration on Brest’s hypermarket FOOD ANCHOR MID-SIZE STORE MID-SIZE STORE MID-SIZE STORE HYPERMARKET MERCIALYS owns 51% of the hypermarket, and 100% of the adjacent shopping center P 71 STORES AND 7 MID- Development of a hypermarket, SIZE STORES OVER > P 36,000 SQ.M 3 new mid-size
Slide 30: Potential restructuring of Niort's hypermarket
Potential restructuring of Niort’s hypermarket, a key driver for revitalizing the entire site BEFORE MERCIALYS owns 51% of the hypermarket, and 25% of the adjacent shopping center Zoom on the Food retal area Addition of 3 anchor mid-size stores and a supermarket already SUPERMARKET MEDIUM-SIZE STORE
Slide 31: 2024 Full-Year Earnings
03 2024 FULL-YEAR EARNINGS PIERCIALYS
Slide 32: Full impact of 3rd year of sustained indexation in organic growth
Full impact of the 3rd year of sustained indexation reflected in organic growth Organic growth €178.0m +3.9% €179.5m +0.9% Lease rights +€7.1m €0.0m +€0.5m Lease rights €0.4m €0.5m -€0.8m -€0.3m -€4.9m +0.9% €177.5m €179.2m Rental revenues Acquisitions Strategic vacancy Indexation Contribution Contr
Slide 33: Net recurrent earnings of €113.1m (+3.8%)
Net recurrent earnings of €113.1m (+3.8%), with +3.7% per share, significantly above the +2.0% target €1.17 €1.21 +3.7% /SHARE /SHARE EBITDA margin 82.0% €113.1m +3.8% €109.0m + €1.5m + €1.4m + €2.4m + €2.6m + €0.0m - €0.1m - €3.6m NRE Change in Change in Change in Change in Change in Change Change
Slide 34: Rebound in like-for-like appraisal values
Positive impact from rents throughout the year, leading to a rebound in like-for-like appraisal values Change in portfolio value excluding transfer taxes LIKE-FOR-LIKE CHANGE (1) H1 2024 H2 2024 FY 2024 Of which rent effect +2.3% +1.3% +3.3% Of which yield effect -2.0% -0.7% -2.3% TOTAL CHANGE IN PO
Slide 35: Appraisal yield at 6.65%, spread vs. risk-free rate
Mercialys appraisal yield at 6.65%, offering a 344 bp spread vs. the risk-free rate Potential yield and EPRA NIY 12/2019 12/2020 12/2021 12/2022 12/2023 06/2024 12/2024 Average appraisal yield rate 5.26% 5.72% 5.71% 5.75% 6.61% 6.68% 6.65% EPRA Net Initial Yield 4.94% 5.28% 5.24% 5.29% 5.97% 6.04% 5
Slide 36: Stable EPRA NTA and change in EPRA NDV
Stable EPRA NTA and change in EPRA NDV generated by the impacts of fair value of fixed-rate debt and derivatives (2) + €1.22 €17.10 EPRA NDV - €0.04 › €16.45/share (1) €16.45 - €0.57 › Down -0.5% over 6 months - €0.25 - €1.00 › Down -3.8% over 12 months EPRA NRV Rent effect › €18.23/share + €0.96 ›
Slide 37: Outlook
04 OUTLOOK PIERCIALYS
Slide 38: The consumption engine is still running in France
The consumption engine is still running in France HOUSEHOLD CONSUMPTION REMAINS “SILVER ECONOMY”: A STRONG MID- HOUSEHOLD SAVING RATE: A POWERFUL STEADY TERM DRIVER FOR THE RETAIL SECTOR CONSUMPTION RESERVE CHANGE IN HOUSEHOLD CONSUMPTION POPULATION BY AGE GROUP HOUSEHOLD SAVING RATE (France – growt
Slide 39: 2025 target: steady NRE growth enabling a balanced dividend return
2025 target: steady NRE growth profile enabling a balanced dividend return NET RECURRENT EARNINGS Ranging from 1.22 € to 1.25 € / share DIVIDEND At least 1.0 € / share ESG Goal of carbon neutrality & continued progress on our strategy 2024 FULL-YEAR RESULTS 39
Slide 40: Appendices
APPENDICES PIERCIALYS
Slide 41: Financial calendar
Financial calendar 2025 2025 ANNUAL CONFERENCE SHAREHOLDERS’ CALL ON 2025 MEETING HALF-YEAR RESULTS APRIL 16 APRIL 29 JULY 24 JULY 25 OCTOBER 16 ACTIVITY AT PRESS RELEASE ACTIVITY AT MARCH 31, 2025 ON 2025 SEPTEMBER 30, 2025 (after market close) HALF-YEAR RESULTS (after market close) (after market c
Slide 42: Mercialys portfolio and shareholding structure
Mercialys portfolio and shareholding structure SHAREHOLDING STRUCTURE (at December 31, 2024) LEADING LISTED FRENCH REAL ESTATE COMPANY THAT IS A COMMERCIAL REAL ESTATE PURE PLAYER Treasury shares › Mercialys' portfolio is focused on large and neighborhood Blackrock inc 0.9% shopping centers that are
Slide 43: Mercialys continues to be one of Europe's top CSR performers
Mercialys continues to be one of Europe’s top CSR performers Score: 7.8 (2) BPR Score: 91/100 Industry and Grand Prix ESG Gold Award 2024 Green Star status Rating: A- Score: 87/100 Regional Top-Rated Rating: AA N/A Award sBPR Score 93.6/100 ESG Company Gold Award Score : 8.8 #1 on SBF 120 BPR Rating
Slide 44: Breakdown of food retail anchors (owned by Mercialys)
Breakdown of food retail anchors (owned by Mercialys) SITES % OWNERSHIP BY MERCIALYS NEW CURRENT FOOD OPERATOR TRANSFER DATE Annemase 100% Intermarché Apr 30, 2024 Ajaccio 60% Auchan Oct 16, 2024 Angers 51% Auchan May 31, 2024 Besancon 25% Intermarché Oct 15, 2023 Brest 51% Casino Hyperfrais Pending
Slide 45: Breakdown of food retail anchors (not owned by Mercialys)
Breakdown of food retail anchors (not owned by Mercialys) SITES NEW CURRENT FOOD OPERATOR TRANSFER DATE Agen Intermarché Apr 30, 2024 Aix-en-Provence Auchan May 31, 2024 Albertville Intermarché Oct 15, 2023 Angoulême Auchan Apr 30, 2024 Anglet Leclerc Not concerned Annecy Auchan Apr 30, 2024 Arles A
Slide 46: Shopping center portfolio structure
Shopping center portfolio structure NUMBER OF SHOPPING CENTERS SHOPPING CENTER BREAKDOWN BY SIZE AND AVERAGE VALUE (% of portfolio gross asset value incl. transfer taxes at Dec. 31, 2024) 73.5 69.9 65.9 62.5 61.5 59.6 14,940 17,049 16,570 16,090 16,095 15,867 6% 3% 3% 4% 4% 4% 58 48 49 48 48 44 32%
Slide 47: Lease expiry schedule effectively staggered over time
Lease expiry schedule effectively staggered over time BREAKDOWN OF MERCIALYS’ LEASE EXPIRY SCHEDULE RENTAL INCOME BY TYPE OF RETAILER CONSOLIDATED VISION (percentage of leases expiring / guaranteed minimum rent (% of annualized rental income at at December 31, 2024) Dec. 31, 2024 and Dec. 31, 2023)
Slide 48: EPRA performance indicators
EPRA performance indicators DECEMBER 31, 2023 JUNE 30, 2024 DECEMBER 31, 2024 EPRA earnings - € per share 1.17 0.63 1.21 EPRA NRV - € per share 18.25 17.80 18.23 EPRA NTA - € per share 16.29 15.85 16.29 EPRA NDV - € per share 17.10 16.53 16.45 EPRA net initial yield - % 5.97% 6.04% 5.93% EPRA “toppe
Slide 49: Net recurrent earnings & EPRA earnings
Net recurrent earnings & EPRA earnings IN THOUSANDS OF EUROS DECEMBER 31, 2023 DECEMBER 31, 2024 Invoiced rents 177,495 179,151 Lease rights 515 384 Rental revenues 178,010 179,534 Property taxes -14,265 -14,531 Rebilling to tenants 12,048 12,153 Non-recovered property taxes -2,217 -2,378 Service ch
Slide 50: Net income attributable to owners of the parent
Net income attributable to owners of the parent IN THOUSANDS OF EUROS DECEMBER 31, 2023 DECEMBER 31, 2024 Net recurrent earnings 108,961 113,129 Depreciation and amortization -38,540 -37,828 Other operating income and expenses -22,447 -7,195 Impact of hedging ineffectiveness, banking default risk an
Slide 51: Balance sheet
Balance sheet IN THOUSANDS OF EUROS DECEMBER 31, 2023 DECEMBER 31, 2024 Intangible assets 3,144 3,424 Property, plant and equipment other than investment property 5,825 7,445 Investment property 1,864,950 1,720,595 Right-of-use assets 10,615 14,784 Investments in associates 39,557 40,315 Other non-c
Slide 52: Breakdown of assets
Breakdown of assets Average appraisal yield rate: 6.65% at December 31, 2024 APPRAISAL VALUE APPRAISAL VALUE GROSS LEASABLE AREA APPRAISED NET (EXCL. TRANSFER TAXES) (INCL. TRANSFER TAXES) NUMBER AT DECEMBER 31, 2024 RENTAL INCOME AT DECEMBER 31, 2024 AT DECEMBER 31, 2024 TYPE OF PROPERTY OF ASSETS
Slide 53: Disclaimer
Disclaimer › This communication contains forward-looking information and statements about Mercialys. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, obj