Mercialys reports a 13.7% decline in the triple NAV over the course of one year

At the end of July 2021, Mercialys’ EPRA NDV ANR is down 13.7% over 12 months, falling from €19.90 per share in July 2020 to €17.17 this year. This represents a decline of -6.8% over 6 months, reflecting “a portfolio value adjustment, the effect of the fair value of fixed rate debt, and an increase in the number of securities in circulation to give after partial portfolio repayment.” stock dividends,” according to the press release.

in 1^{He is} Half of 2021, rental income amounted to 84.7 million euros, a decrease of -8.0% compared to 1^{He is} Half of 2020, reflecting a decrease in rental bills and a slight decrease in entry fees and non-specialty allowances. The current fiscal vacancy rate was 4% in the first half of 2021, slightly up from the 3.8% level observed at the end of 2020.

The net financial expenditure used in calculating the foreign fuel fund amounted to 16.1 million euros against. €10.1 million at the end of June 2020, reflecting the full-year impact of the bond issuance that took place in July 2020. This same effect is reflected in the average effective cost of debt drawn out, which is 1.9% compared to the 1.4% rate observed for the whole of 2020.

Mercialys’ assets were valued at €3,185.6 million, including fees, down -2.2% over 6 months and -9.6% over 12 months. In the constant range, it is down -2.2% over 6 months and -4.5% over 12 months. Excluding rights, assets were €2996.6 million, down -2.3% over 6 months and -9.6% over 12 months. In the constant range, it is down -2.3% in 6 months and -4.5% in 12 months. In addition, the debt ratio (LTV) is 38.3% exclusive of fees and 36% inclusive of fees. The portfolio is worth €3,186 million including transfer fees, down -2.2% over 6 months. The average rate of return on reviews is 5.74% vs. 5.72% end of December 2020.

Activity close to 2019 levels

In the first half of 2021, the group announced that the attendance of these centers reached, between the reopening of shops on May 19 and June 30, 2021, 91% of the pre-crisis activity observed in 2019. The month of May increased by +8.4% against. 2020 and June by +5.6%, “which attests to the unchanging attraction of physical commerce. Signs re-establish development dynamics on the basis of limited rent adjustments”, according to Mercelles.

In addition, the group recorded a decrease in net rents by -1.9% to €84 million. They include net income + 0.9 million euros and + 0.2 million euros related to the reversal of provisions that became moot as a result of negotiations concluded under the second^NS 2020, plus an income of +0.5 million euros linked to the tax credit recognized so far under these same negotiations.

Implementation of state aid in 2^NS Semester 2021 rent collection must be printed. Total recoveries for 2020 increased by 7 million euros during the first half of 2021 to 88.3%, including 4.1 million euros for the second and third quarters of 2020. This rate for the first half of 2021 was 75%, negatively affected by administrative closures and delays in implementation Support measures for trademarks that the state has committed to following the administrative closures associated with the third inventory. “However, the French government has made a public commitment to provide aid, other than the Solidarity Fund, to allow tenants who are subject to administrative closure to pay their rent in particular. Therefore no debt write-off has been set for the past half year,” the press release specifies.

Outlook – Perspectives

For Mercelles, the context accompanying the reopening of businesses since May 19, 2021 seems encouraging, and the forced savings made by the French during this period of the health crisis can be gradually released in favor of consumption. However, doubts remain during the coming months due to changes in the health situation, as well as due to the possible application of the health card in shopping centers.

In this context, the company expects: “Excluding the effects of a further deterioration in health, including the impact of any measures associated with ‘health pass’ (reduction in attendance, additional weakening of brands, possible reduction in rental variables and temporary trade contribution, increased expenses for additional operating), an operating result (FFO) per share stable at least in 2021 compared to 2020.”