Mercialys SA (STU:M8Y) (Q2 2026) Earnings Call Highlights: Strong Growth in Rental Income and ...

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• Net Organic Rent Growth:Up 2.9%.

• Total Net Rental Income:Increased by 4.5%.

• EBITDA:Up 4.8% with a margin increase of 70 basis points to 82.7%.

• Recurring Net Income:Increased by 4.1% or 3.9% per share.

• Portfolio Value:Increased by 4.6% on a like-for-like basis.

• Loan-to-Value (LTV) Ratio:41.9%, down 10 basis points over a year.

• Footfall Growth:Increased by 4.5%, with a stronger momentum of 6.5% from June 1 to July 15.

• Invoice Gross Rents:Up 3.8% to 91.9 million.

• Net Recurrent Earnings:64.1 million, up 4.1% year-on-year.

• Portfolio Value at End of June:3.06 billion, up 0.7% over six months and 4.6% over 12 months.

• EPRA NTA:Up 3.8% to 16.23 per share.

• Net Debt:1.2 billion with an average cost of bond debt at 3.2%.

• ICR (Interest Coverage Ratio):4.1 times.

• Net Debt to EBITDA Ratio:8.5 times.

• Warning! GuruFocus has detected 11 Warning Signs with STU:M8Y.

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Release Date: July 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Mercialys SA ( STU:M8Y ) reported a strong performance with net organic rent growth up by 2.9% and total net rental income increasing by 4.5%.

• The company's EBITDA rose by 4.8%, with an improved EBITDA margin of 82.7%, indicating effective cost management.

• Mercialys SA upgraded its 2026 guidance for recurring net income and dividend, reflecting confidence in its financial trajectory.

• The company achieved a total shareholder return of nearly 15% over the last six months, supported by a dividend and positive stock price evolution.

• Footfall increased sharply by 4.5%, outperforming the national benchmark, demonstrating the attractiveness of Mercialys SA's shop/park model.

Negative Points

• The macroeconomic environment remains volatile, posing potential challenges to sustained growth.

• Indexation has slowed significantly to only 0.1% over the semester, which could impact future rent growth.

• The company faces execution risks related to the restructuring of hypermarkets, which could lead to temporary dips in top-line revenue.

• Mercialys SA's financial expenses increased by EUR4.9 million due to the normalization of the company's average cost of debt.

• The ongoing restructuring projects create distorting effects on the P&L, with overlapping operations affecting visibility on financial performance.

Q & A Highlights

Q: Could you provide more details on your organic growth excluding indexation? A: Vincent Ravat, CEO: Our organic growth was positively influenced by several factors, including the quick re-letting of spaces after retailer liquidations and strong contributions from casual leasing operations. Additionally, variable parts of leasing added to the growth. Over the past 12 months, we've maintained a trend above 2%, which slightly improved by the end of the semester.