Slide 1: 2023 Full-Year Results
2023 FULL-YEAR RESULTS February 15, 2024
Slide 2: Preliminary remarks
Preliminary remarks THE 2023 FULL-YEAR consolidated financial statements were approved by the Board of Directors on February 14, 2024 THE AUDIT PROCEDURES have been completed by the statutory auditors. The audit certification report is underway 2023 FULL YEAR RESULTS 2
Slide 3: Contents
Contents 01 02 03 04 Earnings outperformance & Strong letting activity & 2023 Full-year earnings Outlook high returns for shareholders substantial risk profile improvement Page 4 Page 10 Page 22 Page 31 2023 FULL YEAR RESULTS 3
Slide 4: Earnings outperformance & high returns for shareholders
01 EARNINGS OUTPERFORMANCE & high returns for shareholders
Slide 5: Mercialys outperformed its 2023 earnings target
Mercialys outperformed its 2023 earnings target €1.17 net recurrent earnings (NRE) per share up +3.3% vs. 2022, above the +2% target Restated in 2022 and 2023 for exceptional items related to the health crisis period, NRE per share would be up +11.0% in 2023 INCREASE IN 2023 MERCIALYS RETAILERS’ SAL
Slide 6: The dividend yield remains central to Mercialys' business model
The dividend yield remains central to Mercialys’ business model Proposed dividend up +3.1%, corresponding to 85% of 2023 NRE / share (2) DIVIDEND AS % OF NET RECURRENT EARNINGS (NRE) MERCIALYS’ SHAREHOLDER RETURN VS. SBF 120 & EPRA EUROZONE INDEX 90% Dividend moderation (base 100 at Jan. 1st, 2021)
Slide 7: New milestones achieved with our sustainable roadmap looking ahead to 2030
New milestones successfully achieved with our sustainable roadmap looking ahead to 2030 FOR OUR STORES › Asset certification: 100% of strategic assets certified FOR OUR ENVIRONMENT (in line with target) › Carbon neutrality: 15.2 kgCO2eq.sq.m vs. 23.3kg in 2017 › Responsible retail offering and servi
Slide 8: Mercialys continues to be one of Europe's top CSR performers
Mercialys continues to be one of Europe’s top CSR performers Score : 8,8 (2) #1 on SBF 120 BPR Rating: A Score: 93.4/100 Score: 89/100 Industry and Rating: B- Grand Prix “All Gold Award 2023 Green Star status A List status N/A Regional Top-Rated Rating: A Prime status Categories” sBPR #2 on maintain
Slide 9: 2024 target: Steady NRE growth profile enabling a balanced dividend return
2024 target: Steady NRE growth profile enabling a balanced dividend return CHANGE IN NET RECURRENT EARNINGS / SHARE Increase of at least +2% vs. 2023 THIS DISTRIBUTION DIVIDEND POLICY RANGE WILL Dividend ranging from 75% to 95% of 2024 NRE CONTRIBUTE TO A SUSTAINED 2024 RETURN, WITH THE FINANCIAL RE
Slide 10: Strong letting activity & substantial risk profile improvement
02 STRONG LETTING ACTIVITY & substantial risk profile improvement
Slide 11: Mercialys' risk profile to be radically improved and anchored by major French food retailers
Mercialys’ risk profile to be radically improved and its portfolio anchored by the major French food retailers THE LIST OF HYPERMARKETS OPERATED BY CASINO AND PORTFOLIO WILL BENEFIT FROM EXPOSURE TRANSFERRED TO AUCHAN AND INTERMARCHÉ HAS BEEN TO THE MAJOR FOOD RETAIL BRANDS PUBLISHED BY LSA (Jan 22,
Slide 12: Mercialys is strengthening its global value proposition for customers
Mercialys is strengthening its global value proposition for customers BREAKDOWN OF MERCIALYS’ RENTAL INCOME BY CUSTOMER NEEDS THE HYPERMARKET ANCHOR (2023) IS CENTRAL TO THE SHOPPING CENTERS’ Discretionary VALUE PROPOSITION Essential retail retail 36.6% 29.3% The hypermarket channel accounts for 45%
Slide 13: Significant footfall growth for Mercialys shopping centers
Significant footfall growth for Mercialys shopping centers, despite underperformance by Casino hypermarkets in 2023 CUMULATIVE CHANGE IN FOOTFALL BESANÇON HYPERMARKET: AT END-DECEMBER 2023 (1) CHANGE IN 2023 FOOTFALL (% change vs. FY 2022) (% change vs. 2022) -8.7% Hypermarkets 37.5% Mercialys ex. H
Slide 14: 2023 increase in retailer sales
2023 increase in retailer sales: illustrating the appeal of Mercialys shopping centers RELATIVE PERFORMANCE OF MERCIALYS’ CHANGE IN CHANGE IN CONSUMPTION SEGMENTS TENANT SALES (1) vs BENCHMARK (2) IN VALUE (2) +4.8% (2023 vs. 2022 - % change) (2019 - 2023) -130 bp +32.0% +3.5% +29.0% +3.3% -110 bp +
Slide 15: Intense letting efforts contributing to balanced rental income
Intense letting efforts contributing to balanced rental income BREAKDOWN AND EVOLUTION OF MERCIALYS’ RENTAL INCOME BY BUSINESS SECTOR (% of annualized rental income end-2023 - change vs. end-2018) (Aix-en-Provence) -670 bp Food-anchored tenants + 40 bp 3.0% Services (Paris Saint-Didier) 20.9% (Renne
Slide 16: Rental dynamics helping strengthen leading assets
Rental dynamics helping strengthen leading assets… ANGERS ESPACE ANJOU Total financial vacancy 1.8% 1.6% 2022 2023 NÎMES CAP COSTIÈRES Total financial vacancy 1.5% 0.7% 2022 2023 2023 FULL YEAR RESULTS 16
Slide 17: …or relaunch sites
…or relaunch sites TOULOUSE FENOUILLET Total financial vacancy 5.5% 5.4% 2022 2023 ANNECY SEYNOD Total financial vacancy 4.9% 3.6% 2022 2023 2023 FULL YEAR RESULTS 17
Slide 18: Financial vacancy rate stable vs. 2022 at a low level
Financial vacancy rate stable vs. 2022 at a low level FINANCIAL VACANCY RATE (1) (2) 5.4% 4.9% 4.4% 4.7% 4.4% 3.0% 3.2% 1.6% 1.7% 1.5% 1.4% 1.5% 0.5% 0.7% 3.8% 3.2% 3.3% 2.5% 2.5% 2.9% 2.9% 2018 2019 2020 2021 2022 H1 2023 2023 Current financial vacancy rate Strategic financial vacancy rate Total fi
Slide 19: Major realignment of Mercialys' food retail rental exposure
Major realignment of Mercialys’ food retail rental exposure FOOD RETAILER MIX IN MERCIALYS’ RENTAL BASE End 2023 (1) End 2023 (2) 0,8% 3,4% 0,4% 9,8% 3.4% 0.8% 0.4% Casino 3.6% 10,9% (Corsica) 16,8% 20.9% of Casino (Corsica) the rental 16.8% base 74.9% 25,4% 32,5% Food retail consolidation with the
Slide 20: Measured OCR for tenants and normalized recovery rate
Measured OCR for tenants and normalized recovery rate OCR REMAINS SUSTAINABLE FOR MERCIALYS’ TENANTS, DESPITE THE IMPACT OF INDEXATION OCCUPANCY COST RATIO (1) COLLECTION OF RENTS AND CHARGES (at end-2023) (2) 11.1% 97.3% 10.7% 96.1% 96.2% 10.3% 10.3% 10.3% 10.5% 10.4% n/a due to store closures duri
Slide 21: Strict cost control on property charges and energy
Strict cost control on property charges and energy in particular BREAKDOWN OF PROPERTY AND SERVICE CHARGES CHANGE IN ENERGY CONSUMPTION (2023) (In kwh/sq.m on communal areas) -22.5% 149 151 Energy 117 21% Other property and service charges 79% 2021 2022 2023 Average charges billed to tenants Average
Slide 22: 2023 Full-Year Earnings
aA ze SB Ee = s 2 E = EE 03 2023 FULL-YEAR EARNINGS PIERCIALYS
Slide 23: Organic growth driven by indexation and variable rents
Organic growth driven by indexation and variable rents ORGANIC GROWTH €173.3m +4.1% €178.0m +2.7% +€6.3m +€1.9m +€0.8m Lease rights €0.5m Lease rights -€0.5m -€1.4m €0.7m -€2.0m -€0.2m €177.5m +2.8% €172.6m Rental revenues Acquisitions Strategic vacancy Indexation Contribution Contribution Actions c
Slide 24: Net recurrent earnings of €109.0m (+3.3%)
Net recurrent earnings of €109.0m (+3.3%), with +3.3% per share, above the +2.0% target €1.13 €1.17 /SHARE /SHARE +3.3% EBITDA MARGIN 83.9% + €0.2m + €0.1m €109.0m +3.3% +11.0% €105.5m + €4.7m + €0.3m - €0.7m - €0.2m - €0.9m Net recurrent earnings Change in Change in Change in Change in Change in Ch
Slide 25: Significant appraisal yield shift in H2 2023
Significant appraisal yield shift in H2 2023, offsetting a sustained positive trend for rents Change in portfolio value excluding transfer taxes CHANGE ON A LIKE-FOR-LIKE BASIS (1) H1 2023 H2 2023 FY 2023 of which rent effect +4.0% +2.4% +6.1% of which yield effect -7.4% -6.1% -13.1% TOTAL CHANGE IN
Slide 26: Portfolio yields 6.61% at end-2023, 405 bp premium above risk-free rate
Mercialys’ portfolio yields 6.61% at end-2023, a historically high 405 bp premium above the risk-free rate Potential yield and EPRA NIY 12/2018 12/2019 12/2020 12/2021 12/2022 06/2023 12/2023 Average appraisal yield rate 5.10% 5.26% 5.72% 5.71% 5.75% 6.21% 6.61% EPRA Net Initial Yield 4.81% 4.94% 5.
Slide 27: Change in EPRA NDV per share
Change in EPRA NDV per share (2) - €2.04 EPRA NDV €20.94 + €1.17 › €17.10/share (1) › Down -9.1% over 6 months › Down -18.4% over 12 months - €0.96 - €1.53 EPRA NRV Rent effect + €1.90 › €18.25/share - €0.49 €17.10 › Down -4.1% over 6 months Yield effect - €4.07 › Down -11.2% over 12 months Other ef
Slide 28: Healthy level of liquidity, with well-spread debt maturities
Healthy level of liquidity, with well-spread debt maturities DEBT SCHEDULE AT END-DECEMBER 2023 (in €m) 500 Commercial paper 300 27 200 15 150 DRAWN DEBT Bonds Jan.2024 Apr.2024 Feb.2026 July.2027 Nov.2027 2028 Feb.2029 Revolving credit facility 180 UNDRAWN DEBT 30 40 40 45 50 Confirmed Bank facilit
Slide 29: Cost of debt still low at end-2023, with strong hedging profile
Cost of debt still low at end-2023, with a strong hedging profile moving forward CHANGE IN MERCIALYS’ COST OF DRAWN DEBT AND HEDGING VS. RATE ENVIRONMENT 4.0% 100% 3.5% 90% › Mercialys benefited from fixed to variable 3.0% 2.7% 2.7% 2.6% 2.6% 2.6% 2.6% 80% hedging over 2014 to H1 2022, leading to a
Slide 30: Sound financial profile
Sound financial profile CHANGE IN LTV AND ICR CHANGE IN NET DEBT / EBITDA 5.9x 7.6x 5.1x 5.1x 7.2x 7.1x 36.7% 38.9% 34.4% 35.3% 36.4% 33.0% 2021 2022 2023 2021 2022 2023 LTV (%) - excluding transfer taxes LTV (%) - including transfer taxes ICR (x) LARGE COVENANT HEADROOM AT END-2023 STANDARD & POOR’
Slide 31: Outlook
04 OUTLOOK PIERCIALYS
Slide 32: Real estate fundamentals represent a strong platform for medium-term investment
Mercialys’ real estate fundamentals represent a strong platform for medium-term investment Portfolio that represents both a platform for shopping center brands and also those usually adapted to retail parks, and that benefits from adapted financial conditions while clients ~110 million enjoy their e
Slide 33: Defensive profile enabling distribution and controlled investment
In a volatile environment, Mercialys maintains a defensive profile enabling distribution and controlled investment 38.9% LTV 250 bp spread between yields on projects at end-2023 or acquisitions and refinancing cost BOLT-ON ACQUISITIONS DEVELOPMENT PIPELINE › Acquisitions primarily targeting the comp
Slide 34: Multi-use real estate tool with the acquisition of Imocom Partners
Mercialys is developing a multi-use real estate tool with the acquisition of Imocom Partners TRANSACTION STRUCTURED IN TWO PHASES › 30% of Imocom Partners acquired for €5.7m in Dec. 2023 › Mercialys will acquire the remaining 70% in H1 2025 (1) › Immocom Partners’ current management will accompany a
Slide 35: Pipeline with a strong multi-usage focus
Pipeline with a strong multi-usage focus TOTAL INVESTMENT STILL COMPLETION (€m) INVESTMENT TO BE COMMITTED DATE COMMITTED PROJECTS 20.2 18.8 2024 / 2026 Tertiary activities 20.2 18.8 2024 / 2026 CONTROLLED PROJECTS 181.2 171.3 2024 / 2026 Retail 152.2 142.6 2024 / 2026 Dining and leisure 14.1 14.0 2
Slide 36: Medium-term developments spread across the portfolio
Morlaix Paris Chartres Brest Rennes Quimper Montargis Angers Tours Medium-term Besançon Lanester developments Dijon Niort spread across Clermont-Ferrand Annecy Annemasse the portfolio Brive Le Puy-en-Velay Saint-Etienne Grenoble Aurillac Valence Agen Rodez Millau Nîmes Reunion Island Montauban Arles
Slide 37: Grenoble Caserne de Bonne (2025e)
Grenoble Caserne de Bonne (2025e) Restructuring the shopping center’s covered section, transforming the retail offer into the city-center medium- sized formats and integrating a festive food market 3,000 SQ.M OF RESTRUCTURED SURFACES: › Creation of 3 medium-sized stores for more than 2,000 sq.m › Cr
Slide 38: Reunion Island Sainte Marie Duparc (2026e)
Reunion Island Sainte Marie Duparc (2026e) EXTENSION OF THE SHOPPING CENTER, ON MERCIALYS’ LAND BANK, TO COMPLETE THE RETAIL OFFER AND INTEGRATE NEW USES OVER 11,300 SQ.M OF ADDITIONAL SPACE : › 3,900 sq.m of shops › 1,900 sq.m of small and medium-sized stores › 2,000 sq.m of leisure spaces › 950 sq
Slide 39: Reunion Island Saint André (2026e)
Reunion Island Saint André (2026e) DEVELOPMENT OF A LAND RESERVE OWNED BY MERCIALYS, COVERING MORE THAN THREE HECTARES IN THE SAINT ANDRÉ DISTRICT (EAST OF THE ISLAND) CREATION OF A RETAIL PARK OF ALMOST 13,000 SQ.M: › 8,900 sq.m of medium-sized stores › 750 sq.m of shops › 650 sq.m of medical cente
Slide 40: Real estate partner for France's leading hypermarket operators
Real estate partner for France’s leading hypermarket operators and ready to support their realignment around their food offering SINCE ACQUIRING HYPERMARKETS IN 2014 AND 2015, MERCIALYS HAS SUCCESSFULLY TRANSFORMED SIGNIFICANT HYPERMARKET SPACE INTO STORES OR MEDIUM-SIZED UNITS › Mercialys to captur
Slide 41: Appendices
APPENDICES PIERCIALYS
Slide 42: Financial calendar
Financial calendar 2024 2024 ANNUAL CONFERENCE SHAREHOLDERS’ CALL ON 2024 MEETING HALF-YEAR RESULTS APRIL 18 APRIL 25 JULY 24 JULY 25 OCTOBER 17 ACTIVITY AT PRESS RELEASE ACTIVITY AT MARCH 31, 2024 ON 2024 SEPTEMBER 30, 2024 (after market close) HALF-YEAR RESULTS (after market close) (after market c
Slide 43: Rental income structure
Rental income structure OVER 900 RETAILERS AND 2,038 LEASES BREAKDOWN OF MERCIALYS’ BREAKDOWN OF MERCIALYS’ RENTAL INCOME BY TYPE OF RETAILER RENTAL INCOME BY TYPE OF RETAILER CONSOLIDATED VISION ECONOMIC EXPOSURE (% of annualized rental income at Dec. 31, 2023 and Dec. 31, 2022) (% of annualized re
Slide 44: 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 including rights at December 31, 2023) 73.5 61.5 65.9 64.1 59.6 12,227 14,940 17,049 16,570 16,090 16,095 48.7 7% 6% 3% 3% 4% 4% 32% 31% 31% 32% 33% 45
Slide 45: Lease expiry schedule effectively staggered over time
Lease expiry schedule effectively staggered over time LEASE EXPIRY SCHEDULE (percentage of leases expiring / guaranteed minimum rent at December 31, 2023) 23.2% (1) 14.8% 13.5% 9.3% 8.6% 6.7% 6.6% 5.1% 4.4% 3.9% 3.9% Expired at 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 and Dec.31, 2023 beyon
Slide 46: Breakdown of food retail anchors (owned by Mercialys)
Breakdown of food retail anchors (owned by Mercialys) SITES CURRENT FOOD FUTURE FOOD % ownership RETAILER RETAILER (1) ANNEMASE Casino Hyper Intermarché 100% LANESTER Casino Hyper Carrefour 100% QUIMPER Casino Hyper Intermarché 100% MARSEILLE-PDC Casino Hyper Intermarché 100% GRENOBLE Monoprix Monop
Slide 47: Breakdown of food retail anchors (not owned by Mercialys)
Breakdown of food retail anchors (not owned by Mercialys) SITES CURRENT FOOD FUTURE FOOD RETAILLER RETAILER (1) MONTAUBAN Super U Super U RENNES Super U Super U RODEZ Super U Super U PARIS MASSENA Casino Super Intermarché PARIS ST DIDIER Casino Super Auchan MILLAU Casino Super Intermarché VALENCE Ca
Slide 48: Shareholding structure
Shareholding structure SHAREHOLDING STRUCTURE NUMBER OF SHARES (At December 31, 2023) AXA IM DECEMBER DECEMBER DECEMBER Treasury shares 31, 2021 31, 2022 31, 2023 5.0% Blackrock 0.6% inc Number of shares 6.0% outstanding at the 93,886,501 93,886,501 93,886,501 end of the period Average number 93,179
Slide 49: EPRA performance indicators
EPRA performance indicators DECEMBER 31, 2022 JUNE 30, 2023 DECEMBER 31, 2023 EPRA earnings - € per share 1.13 0.62 1.17 EPRA NRV - € per share 20.54 19.03 18.25 EPRA NTA - € per share 18.42 16.99 16.29 EPRA NDV - € per share 20.94 18.80 17.10 EPRA net initial yield - % 5.29% 5.63% 5.97% EPRA “toppe
Slide 50: Net recurrent earnings & EPRA earnings
Net recurrent earnings & EPRA earnings IN THOUSANDS OF EUROS DECEMBER 31, 2022 DECEMBER 31, 2023 Invoiced rents 172,602 177,495 Lease rights 674 515 Rental revenues 173,277 178.010 Property taxes -13,948 -14,265 Rebilling to tenants 11,701 12,048 Non-recovered property taxes -2,247 -2,217 Service ch
Slide 51: Net income attributable to owners of the parent
Net income attributable to owners of the parent IN THOUSANDS OF EUROS DECEMBER 31, 2022 DECEMBER 31, 2023 Net recurrent earnings 105,524 108,961 Depreciation and amortization -37,729 -38,540 Other operating income and expenses 1,630 -22,447 Impact of hedging ineffectiveness, banking default risk, ne
Slide 52: Balance sheet
Balance sheet IN THOUSANDS OF EUROS DECEMBER 31, 2022 DECEMBER 31, 2023 Intangible assets 3,381 3,144 Property, plant and equipment other than investment property 4,743 5,825 Investment property 1,907,148 1,864,950 Right-of-use assets 10,184 10,615 Investments in associates 35,203 39,557 Other non-c
Slide 53: Breakdown of assets
Breakdown of assets Average appraisal yield rate: 6.61% at December 31, 2023 APPRAISAL VALUE APPRAISAL VALUE GROSS LEASABLE AREA APPRAISED NET (EXCL. TRANSFER TAXES) (INCL. TRANSFER TAXES) NUMBER AT DECEMBER 31, 2023 RENTAL INCOME OF ASSETS AT DECEMBER 31, 2023 AT DECEMBER 31, 2023 TYPE OF PROPERTY
Slide 54: 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