Mercialys Aktie

Ladies and gentlemen, welcome to the Mercialys presentation regarding its 2026 Half Year Results. It will be structured in two parts. First, a presentation by Mercialys management team, represented by Mr. Vincent Ravat, Group CEO. Afterwards, there will be a Q&A session during which you can ask oral questions through your computer or by joining the conference call.

I will now hand over to Mr. Vincent Ravat. Sir, please go ahead.

Good morning, everyone. Thank you for joining us this morning. I'm pleased to present our 2026 half year results. We have, across the semester, delivered a very strong performance in an environment that remains volatile. Our performance combines organic growth, financial discipline, balance sheet strength and the acceleration of value creation drivers. Over the next slides, I will show you why we see this momentum as structural for us. This presentation will follow 3 chapters: first, the resilience and growth of the past semester; second, the Shop Park levers that fuel it; and third, how it all converts into financial performance.

Let me open the first part of our presentation. We are demonstrating that our growth endures, even as the macroeconomic backdrop stays turbulent. Over time, we have constantly refocused our portfolio on accessible, convenient and value-oriented formats that households tend to turn to. That is what feeds our current footfall and retailer sales growth, our occupancy, and ultimately, our rental income. It all shows in our half year indicators, as shown on Page 4.

All our major metrics are moving upwards this semester. Our net organic rent growth is up plus 2.9%. Our total net rental income are up plus 4.5%. Our EBITDA is up plus 4.8%, with an EBITDA margin up 70 basis points at 82.7%. That leads our recurring net income to increase by plus 4.1% or plus 3.9% per share. Meanwhile, our portfolio value is rising plus 4.6% on a like-for-like basis. This contributes to our LTV staying firmly under control at 41.9%, down 10 basis points over a year. All in all, we continue to create value while maintaining a sound balance sheet, and these strong indicators set the tone for the full year perspectives.

On Slide 5, our guidance upgrade illustrates the confidence we have for our full year trajectory. We are raising our 2026 target for recurring net income to between EUR 1.3 and EUR 1.32 per share from at least EUR 1.29 that we had set back in February. We are also raising, consequently, our 2026 dividend guidance to at least EUR 1.02 per share.

On Page 6, we see the translation of our overall performance for our shareholders. Our total shareholder return reached nearly 15% over the last 6 months. It was supported by the dividend of EUR 1 per share paid fully in May 2026, but also by our positive stock price evolution for the first 6 months of the year. In a sector where the cost of capital remains highly observed, this combination of yield and stock growth should be perceived as a positive marker.

We come to Slide 7, which details a key part of our operational performance. The growth in footfall and sales of our retailers confirms the attractiveness of our indoor/outdoor shop park model. Our footfall increased sharply by plus 4.5%, and the momentum continued even stronger at the end of the semester, with a plus 6.5% from 1st of June to the 15th of July. We outperformed largely the national benchmark index, respectively by plus 370 basis points and plus 280 basis points for footfall and retailer sales. The transformations we are carrying out in Brest, Nimes, Aix, Marseille and Niort are contributing positively, and their positive effect should strengthen further while they last. Our assets are not that subject to the current lukewarm consumption market that we see through the lenses of the national benchmark year-to-date that I just described. Our portfolio continues to gain market share, both in terms of traffic and in terms of sales.

On Slide 8, I would like to put our performance in the general context of the consumption in France. French consumption remains mildly affected by inflation, but we see 2 strong buffers that are working in favor of a gradual improvement. Firstly, the high level of household savings illustrated on the left of the slide that consumers have started to tap into. And secondly, the substantial level of social transfer illustrated in the bar chart on the right. For Mercialys, both should be additional background supports in the medium term. It should especially be the case for us because our assets meet the current needs of consumers, proximity, accessibility, and above all, price accessibility, as we will see further ahead.

Slide 9 highlights our organic growth engine. Our plus 2.9% organic growth in net rents was driven by a very dynamic commercial effort. It was also driven by a gradually improving rental reversion of plus 2.3% captured on our portfolio. Meanwhile, indexation has slowed significantly down to only plus 0.1% over the semester from, you remember, above 2% 6 months ago. An important point to highlight is that even when indexation is less supportive, we keep finding growth via the quality of our leasing team and in the sheer demand for our location, helped by low OCRs. But inflation could be back sooner than anticipated. And as we see on projection on the graph on the right-hand side of the slide, should inflation go up towards 2% from 2027 onwards, as it is projected by Banque de France, indexation would once again become an additional tailwind for organic growth further ahead.

Arriving at Slide 10, the plus 24% of relating signs signed in the first half of the year compared to H1 2025 confirm the depth of the demand that I just outlined. Financial vacancy is close to our historically lowest levels, while our occupancy cost ratio remains stable at one of the lowest level among our peers. Besides, not stated here, but worth noting, our collection rate is up 50 basis points at 97.2% year-on-year. In other words, our rental growth is not achieved at the cost of the weakening of our retailers' P&L and solvency. It is based on a sustainable sales rental combination dynamics.

Slide 11 details the likely upcoming favorable regulatory tailwind for physical retail that we expect. The European Union and France, in particular, are gradually implementing measures that aim at leveling the playing field for physical retailers. Indeed, a range of duties and processing fees on small parcel shipment from outside the EU have already started to increase the real cost of these models, especially for the ultra-fast fashion e-commerce pure players. For physical retailers, this should work as a structural support aimed at reinstating some of their competitiveness.

To conclude this first part, Slide 12 shows that we have a continuous commitment on ESG that can also act as a financial lever. Our decarbonization trajectory, portfolio certification and transparency strengthen our company and portfolio quality and positive image. As a reminder, we have already achieved 57% reduction in Scope 1 and 2 emissions on a trajectory leading us towards carbon neutrality, 95% of our portfolio value is certified BREEAM In-Use and we receive regular recognition in terms of ISR, the latest being an all categories award for our first place among SBF 120 listed companies for the quality and the transparency of our financial and extra financial reporting.

We open the second part with Slide 13. Having shown the resilience and growth of the first half, I will now detail the operational levers that fuel this performance.

On slide 14, we show our shop park model is proving its commercial efficiency. As you already know, the shop park roadmap is structured around 8 guiding principles detailed on the left. On the right of the slide, we see that with around EUR 1,300 in turnover per square meter generated per million visitors per year, shop park assets outperform the European benchmarks on that metric. This measure of revenue productivity is, according to us, a very interesting and telling indicator. It shows that our model converts traffic into sales at a very high rate, much higher than other asset formats. Reason for that being that footfall and sales to CapEx efficiency has always been central to our approach.

Slide 15 links our real estate strategy to current demographic dynamics, as we have explained in previous presentations. We deliberately focused our portfolio in regions that benefit from favorable population trends and higher economic growth, with a bonus boost from senior population spending power. This gives us a genuine competitive advantage being in resilient catchment areas that are typically less volatile and better performing than the country's average. We also capture this way the economic depth of France's regional territories, where competition for prime retail space is far lower than in large international metropolis.

In Slide 16, we highlight our belief that seniors are a major under-leveraged growth driver in the retail real estate sector. The over 65s already represent about 22% of the French and European Union population. That is 15 million consumers just in France. They have structurally higher purchasing power than the average consumer. They are more physically store-oriented than the rest of the consumers. We see on the right, 137 store visits a year for the plus 65 against 94 for the 24 to 35 years old with no children. And those consumers are also more loyal and are attached to trusted brands for their spending. It is a profile that is perfectly compatible with our shop park model, proximity, ease of access, choice among well-known top-of-mind brands. We believe this is not a marginal trend. It will be a long-term demographic driver needing to be properly addressed like we are doing.

Slide 17 shows how we turn today's consumer environment into an opportunity. We see on the survey results, detailed on the left of the slide, that consumers are comparing more and hunting for the best value for money. There is not one single question in this very recent survey where price does not come on top. At Mercialys, we meet that demand head-on with an everyday low price proposition. More than 75% of our tenants already offer value-oriented ranges all year round, and we are targeting 90% of EDLP, as we call them, brands across our portfolio soon.

Slide 18 focuses on how this translates into our leasing. We signed 97 leases in the first half of 2026, with a deliberate effort to tilt our mix towards consumers' preferred names, wider choice and attractive price positioning. We are also gradually approaching our strategic objectives of higher diversification of our commercial risks, being no consumer segment at more than 15% of our rents and no brand at more than 3% of our rental income. This diversification is particularly focused on textile retailers, as everybody has already acknowledged that the personal item segment is a maturing one. It is facing heavy competition from e-commerce, the second-hand market and from network rationalization.

This is an evolution that we anticipated rather than one we are enduring, as shown on Slide 19. Indeed, over the last 6 months, 90% of the square meters concerned with textile retailers' failure on our portfolio have already been relet, 20% of them to brands outside the personal items segment. This reletting momentum is the clearest evidence that we can rotate our tenant mix faster than the market natural movement.

Transformation on our portfolio is one of the drivers of our growth. Slide 20 sets out our pipeline roadmap. We plan more than EUR 100 million of CapEx over '26, '28, followed by around EUR 200 million over '29, '31. We have a minimum IRR hurdle of 10% for any of our projects. Importantly, we will continue to have a controlled progressive activation of this pipeline within a strict balance sheet discipline.

Let's turn to Slide 21 with some illustrations of this pipeline with Marseille and Nimes. In Nimes, our current ongoing transformation is meant to improve the customer journey and differentiates our mix. Primark is yet to open, but our asset management efforts are already visible and generating plus 15% footfall in the first half of 2026 versus 2025 with zero current vacancy on this asset. In Marseille, we are restructuring a large hypermarket space into a more relevant proposition with around 80% already pre-let and a total value creation potential of plus 10%. This includes a new hypermarket operator, which we have signed on terms already and several other units, of which one MSU that was actually signed yesterday. These 2 examples show that we know how to turn existing assets into growth platform.

Slide 22 continues with our ongoing projects in Grenoble and Saint-Andre on the Reunion Island. In Grenoble, we are replacing a closed shopping mall with a more efficient indoor/outdoor format. Just like for Marseille, there is a temporary downside on top line until rents of new tenants kick in fully in 2028. We currently have a 90% pre-letting. We expect to generate 20% additional net rents on this asset. In Saint-Andre, we benefit for this retail park development from a dense catchment area with low local competition. Our project is more than 90% pre-let, up 10 points from 6 months ago. We expect a yield above 9%.

On Slide 23, we turn to our external growth. It will remain highly selective and disciplined. Our acquisition of the Toulouse retail park in the first half perfectly illustrates our main criteria: prime asset, limited vacancy or potential for occupancy improvement, a mix that can be aligned with our everyday low price positioning and an attractive yield. Looking ahead, we are clear about our investment criteria. Quality takes precedence with headline return and earnings accretion just after in terms of priority. We grow only when it creates value, both financially and operationally. We expect to be net buyer over the coming semester with some asset rotation on the menu as well in order to stay in line with our financial discipline of maintaining our BBB rating.

We open the third part with Slide 24. Having covered the operational and strategic levers, let me turn now to their financial translations.

Slide 25 shows the momentum around our top line revenues. Invoiced gross rents are up plus 3.8% at EUR 91.9 million and gross rental income reached EUR 92.2 million for the semester, while net rents are up plus 4.5% over the same period. It is driven by an organic growth of plus 2.9% in net rents. You will note that the temporary and favorable effect was linked to the ongoing restructuring of the Brest and Niort site affecting our top line. The full completion and the new rents of which will only take effect in 2027. Additionally, as explained in the pipeline section, we have started restructuring the Marseille Plan de Campagne hypermarket with several effect on gross rents to be underlined. One, the lease breaks with Intermarche, against which we received an indemnity. Two, the associated loss of rent over the period. Three, the reletting of this unit and the progressing, kicking in of positive effects on top line in S2, 2027. Overall, several tailing effects for lasting upward performance with a normalized top line not to be expected before 2028.

On Slide 26, artificial intelligence starts to become a measurable lever for us as well. We are moving from roadmap to first concrete gains. We now have 10 automated structural processes with annualized savings equal to around 1% of our G&A, excluding HR costs. AI agents are deployed on rental management and retailer relations. AI allows for 20x faster access to asset and tenant data than before. AI will be a lever for operational efficiency and scalability. We have a medium-term target of 5% of our OpEx in savings.

Slide 27 lets you read our operational performance straight through to our account's bottom line. Our EBITDA comes to EUR 76.2 million, up plus 4.8% compared with the first half of 2025. Our EBITDA margin improved by 70 bps to 82.7%, benefiting from the increase in rents and cost discipline. Our cost discipline is also reflected in the improvement of our EPRA cost ratio, down 70 bps over 12 months. Our net recurrent earnings come to EUR 64.1 million, up 4.1% year-over-year. At EUR 69 per share, it translates into a growth of plus 3.9% only per share, related to a temporary increase in the average number of shares due to our liquidity program. You can see that our NRI growth is achieved despite the rise in our financial expenses that are up EUR 4.9 million. They are related to the normalization of the company's average cost of debt.

Slide 28 addresses our portfolio value. At the end of June, it comes to EUR 3.06 billion, including transfer taxes. It is up plus 0.7% over 6 months and plus 4.6% over 12 months on a current basis. Over 12 months, this increase combines a rent effect of plus 1.3%, a yield effect of plus 2.5% and a scope effect of plus 0.8%. Over the half year, rental growth at plus 0.5% has a scope effect of plus 0.8%, offset a slight pressure on yields of minus 0.6%. Our average appraisal yield rates comes to 6.63%, virtually stable compared with the end of 2025.

Value creation shows through in our EPRA net asset values, as shown on Slide 29. Our EPRA NAV indicators are up over 12 months. EPRA NTA is up plus 3.8%, EPRA NRV up plus 4.3% and EPRA NDV up plus 4.4%. The increase in NTA to EUR 16.23 per share is supported by net recurrent earnings and the revaluation of assets, despite the payment of EUR 1 per share dividend on May 6, which mechanically reduces the 6 months indicators.

We are now at Slide 30 to address our financial structure that remains very solid. Our net debt stands at EUR 1.2 billion, with an average cost of bond debt of 3.2% and an average maturity of 3.8 years. No repayments are due before the EUR 150 million bond of November 2027. Our loan-to-value ratio comes to 41.9%, is the ratio including transfer taxes and the financial lease from the Saint-Genis acquisition. It is improving by 10 bps over 12 months, and it is up over the semester because of the full dividend payment in first half, as I just mentioned for the NAV. Our ICR stands at 4.1x and our net debt to EBITDA ratio at 8.5x. These ratios leave a room relative to the covenants, which are of an LTV below 55%, excluding transfer tax and an ICR above 2x. Our Standard & Poor's BBB stable outlook rating was last reaffirmed on October 17 last year.

To conclude, Slide 31 brings together the pillars of our sustainable value creation that I just described. We have a refocused portfolio, record occupancy, a reservoir of reversion and retail outperformance. We are closing a very strong first half with enhanced visibility, activated growth levers still ahead of us and an asset-light model that will be reinforced by AI. That is why we are confident in raising our ambitions for the full year. At last, important information before I conclude. As of the 2026 financial year, to facilitate intra-sector benchmarking for our investors and analysts, we now account for our investment properties at fair value instead of amortized cost. You will see how it translates in our first half financial report that was published yesterday.

Thank you very much for listening. I'm now happy to take your questions.

[Operator Instructions] The next question comes from Florent Laroche-Joubert from ODDO BHF. Please go ahead.

I would have 3 questions, if I may, and I propose you to ask them one by one. My first question will be maybe to come back to the Slide 25. Would it be possible to have more colors on your organic growth, excluding indexation? Because I think it's quite significant, and it could be good to understand better how you have been able to build that.

Florent, for organic growth, there are quite a few factors that have played actively and positively. The first factor, as mentioned, is that we had important negative impact from liquidations of retailer at the end of last year that we have quickly relet with also some immediate effect from temporary relettings that have weighed positively on that organic growth. We had, as you saw, a very strong second trimester where we had contribution that was very positive from casual leasing operation additional revenues. We also had positive effects on additional rents coming from variable part of the leasing. So if you compare that on long-term basis, and then we've always said that the first quarter, because there are some specific impacts on a quarter that's very tiny in terms of length of time. If you look at long-term trends, I think we were on a trend over 12 months at the end of the first trimester that was above 2%. That has slightly improved, but it's still the long-term trend that we are on at the end of the semester.

Okay. Yes, my second question would be on your projects for acquisition. We understand that you have the ambition to be a net buyer in the coming semester, notably maybe to initiate some acquisition in H2. So would it be possible maybe to have more colors about maybe the type of assets that you are looking for? Maybe the volume of acquisitions that you ambition to do. And in terms of location, is it located only in France or are you looking in some other countries?

We are on the same path we described at the beginning of the year, both in terms of net quantum and in terms of type and quality of assets. The net quantum, we always said, was something around EUR 70 million, of which we have already spent around EUR 20 million. We also have, as I mentioned, potential for disposal that could help us make more acquisition and balance them with some disposals so that we maintain healthy LTV and other debt ratios. We are still focused in France on regions that we described over and over as allowing us or giving us more possibility for growth. So we focus on that regions. We have also started, as I mentioned, in February, to look outside France. But for the moment, there is nothing specific planned.

Okay. And maybe my third question would be on your development pipeline. So you have presented a significant number of projects, but would it be possible maybe to have maybe more colors in terms of CapEx by project, in terms of general cost? I don't know if in your reports there is a table with your development pipeline with all these details.

As mentioned, our development pipeline has a very important quality, is that we are able to activate and stop rather quickly any type of project. For the part that's shown as the 2026 to 2028, around EUR 100 million, this is what we are currently working on, and you can allow and spread that over the three years. So count EUR 30 million for 2026, EUR 30 million for 2027 and EUR 30 million for 2028. If you add that up to the external growth, EUR 70 million plus EUR 30 million, you had about EUR 100 million investment that we had announced back in February. So we are on that path and delivering.

The next question comes from Legrand Benjamin from Kepler Cheuvreux.

Just 2 questions from my side. The first one is regarding the footfall, which is increasing quite importantly over H1. I was just wondering if there was anything specific related to that growth, especially that we are in France. If you could give a bit more color regarding this, that would be interesting. And then the second point is regarding the guidance uplift. If I'm reading the numbers, it seems that you've got a few one-offs and notably a reversal of provisions. And I'm just wondering if the guidance uplift is related to those one-offs or if it's really the operational performance that is driving you to upgrade the guidance?

In terms of footfall, I think what's interesting in this first semester is that over the past few years, retail parks have been the craze among investors with something that was not taken into account is the fact that climate changes can affect the way a consumer behaves. And the consumers have realized in the semester trimester, and it shows in the media, we have a lot of requests for interviews about that subject, that the consumers are turning back to formats of shopping centers that are both indoor and outdoor. They don't want outdoor only, it's too hot. They don't want indoor only because sometimes it gets milder. They want something that's in between. And our shop park model is exactly that.

A combination of indoor and outdoor format that we have built taking into account potential effect of climate change because we were exposed early to it. As you know, our geographic focus has been a lot in the south part of France, where we have felt those effects before. And so it pays off. Right now what we see is that our shop parks are becoming the new place of the villages, if I can call them so. I think it's France Info, the national radio, that was calling them that way. And we have seen like an increasingly strong activity related to that, that positively translated in our numbers. After -- another positive effect, as I described, as being the transformation work that we carried on some assets with a boost in terms of footfall, I mentioned Aix, I mentioned Nimes, I mentioned La Valentine. All those centers are seeing positive trends, and the wind blows in their back. Those trends will last and they will carry increasing take-up of market share for us locally. So these are the factors that explain those very interesting numbers.

In terms of guidance uplift and your comment, we had indeed in the first semester, a positive unwinding of some litigation leading to a provision reversal in the first half. They are in good part related to the progressive extinction of risks and litigation associated with the unwinding of operations related to Groupe Casino that we had provisions. I think you were among the analysts pointing to some time ago the risk associated to Casino. Our team is working and have been working to unwind that risk. Sometimes it leads to litigation. It's unwinding now and it's very positive for the company as it clears the risk ahead.

At this stage, we do not expect further significant effect in the second semester. But by nature, we cannot forecast it. We don't know as they are related to litigation. Therefore, to answer your question, in no way are we making any bets on provisions to revise our guidance. We cannot. It could be also a negative provision in the second semester. We have very positive broad-based recurrent indicators that support those revised targets, and that's on those indicators that we have revised the guidance, not on unwinding of litigations.

But just to make sure I fully understand, when you had your guidance in the first place, that was not forecasted either. So the EUR 2 million additional one-off that you now recognized was not in your initial guidance. Just to make sure I understand fully. You did not forecast that.

We didn't know, otherwise there would not be provision. So we had the guidance of at least EUR 1.29. We are revising according to the flow, but they are mostly based on strong indicators. We could have, like we had in other years, negative provisions in the second semester. This is not, like I said, the basis on the guidance revision.

The next question comes from Stephanie Dossmann from Jefferies.

Maybe a follow-up first on the question of Benjamin. To put it in other words, without this reversal, would you have raised your guidance? This is my first question.

Yes.

Okay. Fair enough. The second question relates again to this kind of one-off this semester, the indemnity fee. I am struggling to understand how it works. You stated EUR 5.5 million indemnity fee in total, which is spread over, let's say, 6 months. But it relates to the rents paid by or that Intermarche should have paid from January '26 to June '27. So first, is this correct? And does that mean that it is not an indemnity, but it is only the real amount -- the total amount of rents for this period from January '26 to June '27?

Yes.

Okay. So it doesn't come on top of the rent. So it's something like a one-off of EUR 1.9 million for this year and a potential loss if you are not reletting the space. But what I understand is that you have plans to replace Intermarche. At the end of the day, is it EUR 1.9 million one-off for this year?

Consider it as a replacement and a smoothing effect from the job that we have to carry to insulate our shareholders in terms of bottom line from effect of restructuring. You had, and the other analyst as well, identified some time ago the risk related to the restructuring of hypermarkets. We told you there was both an opportunity to restructure our assets to something that was more adapted to consumption trends. And there was also a risk of execution with potential dips in our top line that we needed to look to address.

And we've had consecutively, and this is probably why you have difficulties to reconcile that during the first semester of both 2025 and the first semester of 2026, 4 major operations of these types, Brest, Niort, Plan de Campagne and Grenoble that I described in the pipeline. They create distorting effects both ups and downs due to their timing. And because they imply, first, positive indemnities from departing tenant, which we have negotiated and we cannot disclose fully because they are linked to legal documents that prevent us from doing this apart from disclosing them in our accounts, loss of passing rent during the restructuring period which you are talking about, and new forward rent with upside, which I described also in the pipeline, when the new retail merchandising mix is fully in place.

The difficulty I realize for you is that these operations are overlapping each other with scissor effect on our P&L. And we try to give you the most visibility, but consider that the visibility we want to give you is visibility on both the trajectory of a top line, and that trajectory is growth. And visibility on the trajectory on that bottom line, which we have also stated in the first -- in February over our 3 years, and that trajectory is also growth path. And then it's our job to do the recipe to address risk, restructuring and adapt our portfolio so that we can stay on those trajectories. So count on us. And the teams are doing very positive jobs, and it shows in our numbers.

For sure. And my last question would be on the renewals and relettings. You said that you had a double-digit increase in your reletting this half year. And I was wondering how much of your annual rent base is it in H1? And actually, how much is the contribution of those in the 2.2% like-for-like rental growth above indexation?

I don't have the numbers in hand, not now with me. I propose that we pass you those detail afterwards, if you may.

The next question comes from [ Tom Berry ] from Green Street. Please go ahead.

So at the full year results Q&A, you mentioned that the Board had discussed a share buyback given the discount. Has that moved forward in any way or has capital allocation shifted more towards the acquisition pipeline that you flagged? And then related to that, would you consider raising equity to fund and deleverage for the right deals? And what yield on cost do you underwrite on those new acquisitions?

Thank you for your question, Tom. We have regular conversations at the Board about our capital structure and allocation. We look at all possible measures. There are no new specific developments that I can comment on that are not addressed in the presentation. Yes, all those subjects are always discussed as options by the Board and will be activated if and when necessary. For the moment, I have no announcement to make on that.

And is there anything on the yield on costs that you guys look at for new acquisitions? I know you said the unlevered IRR of 10%.

Yes, this is always a consideration. We trade at multiples of our net recurrent earnings that are quite elevated, that makes it more difficult for us to buy quality assets that are relative or accretive in terms of earnings per share. That makes our job complicated until the market gives us some release by buying more of the stocks and bringing those multiples down. But we accept that, we've been delivering on that and we are confident that we can continue to deliver same way.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you very much, everyone. And we remain at your disposal for any further questions, and Stephanie will get back to you. Thank you. Have a great day.

Ladies and gentlemen, welcome to the Mercialys presentation regarding its 2025 full year results. It will be structured in 2 parts. First, a presentation by Mercialys' management team represented by Mr. Vincent Ravat, Group CEO. Afterwards, there will be a Q&A session during which you can oral questions through your computer or by joining the conference call.

I will now hand over to Mr. Vincent Ravat. Sir, please go ahead.

Good morning, everyone. Thank you for attending this presentation of our 2025 full year results. Our presentation today is built around 4 main messages. First of all, the momentum created by the repositioning of our portfolio. Secondly, the foundations we have put in place to gain the preference of retailers and consumers. Thirdly, the strength of our results and our financial structure. And finally, our distribution policy and our outlook for 2026.

2025 was special for us. In October, we celebrated Mercialys' 25th anniversary. 2025 also marked a change of momentum for the company. For several years now, we have been undergoing a profound transformation of our portfolio. 2025 showed that this strategic change is now well advanced and already bearing fruit.

Slide 5, we note that there is a general positive consensus about commercial real estate sector. This is especially the case for the companies with portfolio of assets in the right locations and in the right format. Three factors will support future performance for those company. First, population is still growing in the suburban areas, while administrative constraints for new supply have increased.

The second factor is a tighter consumer spending, which means that everyday low price policies are fundamental to create shoppers' preference. Thirdly, retail and commercial real estate are polarizing. So portfolio selectivity will be central to performance. In the past few years, we have shaped and we continue to shape our portfolio of assets around these conditions of success. This is why we believe we are among the companies that are well positioned for positive performance forward.

Slide 6, you can see a summary of the journey we have undertaken to do so, where we come from, where we stand and where we are aiming soon to be. Our starting point was a dispersed portfolio of hypermarket-dependent assets. Today, we are no longer exposed to any hypermarket dependence. We used to have a portfolio spread across France, often including in areas with low economic dynamism. We have actively refocused our portfolio on the most dynamic regions and metropolitan cities.

At the same time, we have strengthened the local dominance of our assets. Today, more than 85% of our assets have more than 50 shops, and this percentage increases every year. In this respect, today, 80% of our portfolio now exceeds 3 million visitors annually, and we have in sight a 95 percentage soon. Finally, within 3 years, our assets will have more than 90% of the consumers' preferred brands in their merchandising mix. Our portfolio is now made up of mostly dominant assets in their local area, no longer just convenience centers.

The strategic repositioning is directly reflected in the very positive momentum of our 2025 figures, summed up on Slide 7. This is our best overall set of results since 2019. Our EBITDA margin is gaining 40 bps at 82.4%. Our rental revenues are on the rise despite perimeter effects related to disposals in 2024. Our recurring net income grew year-on-year by a solid plus 3.9% to EUR 117.5 million. This is the second highest level of NRE since 2011. At the same time, on a like-for-like basis, the value of our portfolio increased by nearly 4% in the second half of the year to exceed now EUR 3 billion. Our LTV ratio is improving consequently by 260 bps in 6 months to 39.5%. And finally, our EPRA NTA is up 8.5% since end of June.

Slide 8, we ought to highlight that these financial performances are not temporary nor cyclical. They are here to stay. They are the results of our constructed, coherent and disciplined model. It is based on the 8 strategic pillars of our Shop Park roadmap. Let me recap them. A geographically refocused portfolio; two, assets of the right size dominant in their catchment area; three, selectivity in our assets and in their commercial offer; four, accessibility in terms of price positioning; five, industrial and rental diversification to limit rental risk; six, seven and eight, cost-efficient asset operation, full commitment to environment. As shown here, these are the pillars that will continue to support both the growth in our retailers' turnover and hence, our net rental income growth. This strategy translates into very concrete terms for our shareholders.

On Slide 9, provided that our Board proposed EUR 1 dividend per share, is approved by our general meeting to be held on April 23, for 2025, Mercialys would have delivered double-digit return to its shareholders, a total shareholder return of 18.4% and a 10.2% return on equity. Our solid model offers investors a visible recurring and distributable cash flow generation.

This value creation is accompanied by our commitment to sector-leading ISR ratings and demanding forward ESG trajectory as illustrated on Slide 10. 2025 marks 10 consecutive years of recognition at the highest ISR level for Mercialys. Operationally, we have reduced our greenhouse gas emissions by 57% since 2017, and we are now embarked on a new certified net zero trajectory covering all Scopes, 1, 2 and 3. We have equipped almost 85% of our centers with charging points. We have brought 86% of our main assets to an excellent or outstanding BREEAM In-Use rating. Last year, we have also obtained the leading score among French SBF 120 companies in terms of gender equality at 96%.

As I mentioned earlier, we are repositioned. We have a solid model, and we have momentum. All these elements allow us to set our sights on an attractive medium-term trajectory detailed Slide 11. Over the period 2026-2028, we expect a trajectory of growth of our rental revenues between plus 5% and plus 7% on a compound annual basis, of which we consider that between 0% to 1% could come from indexation, of which we consider that 1.5% to 2% could come from our organic rental growth through more reversion, more variable rent, more casual leasing and less and even further less vacancy. The rest of the growth would be contributed by new acquisitions and by our pipeline based on current planning of deliveries. This growth in top line should offset the expected increase of our financial costs.

All in all, by 2028, this would support an average net recurrent earnings growth of between plus 2% and plus 4% with a dividend policy targeting an annual payout around 80% of the NRE per share. In any circumstances, our capital allocation will continue to be extremely disciplined with a goal of a net debt over EBITDA ratio below 8x and an ICR ratio above 3.5x, both well above our bank covenants. We have seen how we have laid solid foundations to deliver a strong and steady financial performance. It is because these foundations drive retailer and consumer preferences locally that our assets can outperform.

Let's see how we do it in details in the following slides. First of all, it is important to realize that there is a high level of polarization of regional sociodemographic trends across France. Consequently, retail performances have not been equal across all regions. In the past few years, we have followed this polarization to reshape our asset portfolio. As you can see on Slide 13, we have focused our portfolio on regional capitals and the French Sunbelt. That is a focus on the areas that capture most of the demographic and economic growth in France. In a country marked by a strong polarization of territories, being positioned in the right geographic areas is a decisive advantage in securing turnover growth.

Beyond localization, we have also profoundly changed our marketing and digital approach. Our Shop Parks have become true omnichannel platforms capable of generating additional physical traffic from powerful digital levers. Our permanent active asset management is amplified by this industrialized marketing strategy. These are 3 drivers that we focus our attention on. Firstly, the retail brand's local visibility. We have reached 417 million views of our content in 2025 with a coverage of 100% of the population in our portfolio catchment areas.

Second driver, enhancing click & collect and ship from store for our retailers. For 5 years now, we have been offering local logistics solution to our retailers. We will soon reach 1 million visits for packages, pickups and drop-offs, which themselves drive 25% incremental on-site purchases. Thirdly, we develop exclusive events, either thematic or eco-responsible, that contribute directly to increased on-site traffic and conversion.

Preference from consumers also comes from supply. Today, 80% of French consumer favorite brands are present in our Shop Parks, as you can see on screen. It is an extremely strong marker of the quality and relevance of our current commercial mix. Our strategy is to further concentrate our portfolio offer on the top-of-mind brands while equally integrating e-commerce players when it reinforces the attractiveness of our sites.

Slide 16. This attractiveness is accompanied by a strong discipline on diversification of our exposure to avoid any concentration of operational risks. In 2025, we have re-tenanted 100,000 square meters of our portfolio, that is to say 14% of our total portfolio surface area. At the same time, we are steadily reducing the share of the top 10 tenants in our rent roll from 32% 5 years ago to 25% today, and then we will reduce it further. Our objective remains unchanged. No individual rental exposure above 3% in the medium term, no excessive industrial exposure to any retailer either.

Slide 17, we present another element driving our positive momentum. In a context where purchasing power remains under pressure, our everyday low-price proposition is a real economic shock absorber and a strong footfall and sales driver. It allows retailers to preserve their volumes and consumers to maintain their appetite and satisfy their appetite for acquisition of physical goods. This positioning is clearly an edge on inflation, which translates very concretely into our continuously improving collection rates, reaching 97.8% at the end of 2025.

The attractivity of our refocused portfolio is reflected in our business activity on Slide 18. In 2025, we have signed nearly 200 leases, a lot of them with new brands on our portfolio. This is an increase of 10% compared to 2025, showing the strength of the demand for our assets. These signings mainly concern segments of daily consumption, home equipment, sport, beauty and accessible catering. Primark, Aroma-zone, Mango, Adidas, Lidl, Leclerc, Grand Frais, Volfoni, Tedi, Maxi Zoo, B&M, Biotech or Normal are all leading brands in their segments signed in our portfolio in the last 12 months, with a lot of them being international leaders. All of these levers I have just described resulted in a very clear operational outperformance of our assets in 2025.

Slide 19, we can see that over 12 months, our portfolio footfall increased by plus 3.9%. This is 300 basis points above the national index. Meanwhile, retailer sales also increased by 2.6% over the same period, 280 basis points above the national index. It is worth noting as well that our outperformance in terms of sales versus the French national panel increased by a further 40 bps to 340 basis points for the month of December alone. These indicators confirm the relevance of our commercial offer and positioning. Since the beginning of 2026, the first indications are for a continuation of these positive trends.

This dynamic is reflected in our other operating indicators, Page 20. Thanks to strong letting efforts, I just described, in 2025, our current financial vacancy has dropped to an all-time low of 2% at year-end. At the same time, our retailers' occupancy cost ratio remains among the lowest in the sector at 10.9% and even lower at 10% if we include the food stores OCR. This combination creates a healthy rental tension, which constitutes a natural lever for positive reversion.

In 2025, renewals and relocation were done at a 2.2% reversion rate, up 190 basis points from their 2024 level. You will note that we do not include reletting of vacant units nor short-term contracts in the calculation of our reversion rate.

Our future growth will be sustained via not only the organic drivers that we have just seen, but also by our project pipeline, which will further strengthen our dynamic. As illustrated on Slide 21, we have a large portfolio of projects that can be adjusted, activated or deferred according to the economic context. We will remain very disciplined in our capital allocation with a strict 10% IRR hurdle rate for deployment. Part of the short- and medium-term projects have already been activated to drive our growth in the coming few years.

And we are currently deploying 3 categories of projects, strengthening, extension, new creation, which I will illustrate now individually. The first category, Page 22, are projects that reinforce existing assets to help them gain local leadership when they do not have it already. Two of these projects are underway in Brest and Niort. In Brest, the opening of the first MSUs, including Leclerc, has already generated an increase of plus 50% in footfall. We also expect positive reversion on leases for the rest of the assets as well as a revaluation to come upon completion in September 2026. This asset is becoming the leading asset in Brest metropolis.

In Niort, we are following a similar logic, accelerated execution, commercial strengthening, all with very significant expected effect on traffic of at least plus 30%. This reinforcement should also lead to a revaluation of the asset.

Secondly, in terms of the projects, beyond these reinforcement projects I just mentioned, we are also deploying extensions to create additional rent on sites that are already dominant as shown on Slide 23. Our approach is very simple. We capitalize on assets that are already leaders and we add additional attractiveness features. Two illustrations here. In Grenoble, we will create a deli-gourmet promenade and add MSUs by gaining on common areas. Our project is already 80% pre-let. Work will start soon, and we expect plus 20% additional net rent for the asset.

In Angers, we have acquired 1.6 hectares of land immediately adjacent to our leading local Shop Park. We will be filling administrative authorization in 2026 for a 15,000 square meter potential retail development. Our target is to increase our total rent on this site by 15% upon completion.

This sequenced CapEx-light developments with quick returns are best illustrated by the transformation example over time of our Toulouse Shop Park on Slide 24. This is a textbook Mercialys business case, a consistent step-by-step transformation strategy that gradually increases the retail offer, overall quality and attendance of the site.

Around 10 years ago, we owned a convenience center with an hypermarket and 24 shops with 2 million footfall. It was already not bad at the time for this type of neighborhood asset. In 10 years, we have grown this asset retail offer to 130 shops and restaurants with more than 6.6 million visitors in 2025, and footfall continued to grow by another 3% in January. Our additional ongoing new project initiatives have a clear ambition for this asset to exceed 7.5 million visits within 3 years and become the #1 asset in terms of footfall in the Toulouse metropolis area.

Finally, our third category of projects on Page 25 consists of new creation on selected geographies and secured land plots. In Saint-Andre, in the Reunion Island, we are developing a mixed-use business park on a land reserve we already own. In an area with low commercial density and favorable consumption dynamics, our project is fully authorized, already pre-let on more than 80% of its total retail GLA of 11,000 square meters. There is little complexity in the development scheme, and our approach is CapEx frugal with an expected yield on cost above 8.5%.

In Ferney-Voltaire, on a plot of land bordering Geneva, we are targeting a 17,000 square meter mixed-use development in partnership. The yield on cost is expected above 8%. Given the attractiveness and wealthiness of this cross-border area, we have already received retailers marks of interest for over 80% of the total GLA. Together with our developments, our acquisitions are part of a very disciplined investment logic, improving quality, strengthening leadership and creating value quickly.

Slide 26, we see that we invested EUR 176 million in 2025 for an average return of around 9%, with value creation already visible. NAV is up by more than 20% in the scope concern. We intend to pursue our investment campaign in 2026, which could reach up to EUR 100 million depending on our level of disposals. We already have specific acquisition targets in sight. We are giving here, on Page 26, the example of a retail park adjacent to our Toulouse asset that we are targeting in order to consolidate the local market share of the Shop Park as explained earlier.

Our post-acquisition model is also industrialized. We act on 4 levels: improving merchandising, vacancy, expenses and ancillary revenues. As you can see on Slide 27, with the case of Saint-Genis Shop Park acquired last year, we have already signed new lease with Maxi Zoo, and we have active leads with new retailers like Mango, Decathlon or Aroma-Zone. Our goals in 2026 are to: one, reduce vacancy by 50%; two, increase rent by 5%; three, reduce charges by at least 10%; and four, develop specialty leasing income by plus 10%. Overall, in the medium term, our ambition is to create additional appraisal value of plus 30% to plus 40% of the acquisition price.

Beyond our organic growth and project pipelines, we now fully hone another growth engine, the ImocomPartners asset management platform. As at beginning of 2026, the platform has 33 retail parks under management, approximately 400,000 square meters of GLA for EUR 40 million in annual net rental income. ImocomPartners provides us with a platform of expertise and asset-light growth with recurring revenues that could be comforted by operational strategies -- synergies. In the medium term, there is a strong potential of value creation with the launch of new funds and the ramp-up of assets under management, which would contribute positively to our EBITDA growth.

Slide 30. I will now move on to financial results and funding metrics. Let's start with rental revenues. Our rental revenues reached EUR 180.6 million at end 2025. On a pro forma basis, taking into account the temporary IFRS accounting impacts related to already relet spaces of Brest and Niort detailed on the bottom right of this slide, our rental revenues grew by plus 1.7% compared to 2024. This growth includes the total negative scope effects of 2024, offset by 2025 acquisitions. This highlights our organic performance.

Indeed, on a like-for-like basis, our gross rental revenues increased by plus 2.8%. It is important to note that we are talking here about gross rental revenues from indexation and leasing activity only. Our figure of plus 2.8% does not include doubtful debtors' effect nor JV marketing or other type of fees. Beyond the growth of the top line, we have embarked on a structured approach to optimize our cost base.

Slide 31. In 2025, we launched the first operational deployment of artificial intelligence in our back office with 3 very concrete objectives: automating recurring functions with low added value, optimizing commercial and rental management processes and using our data to accelerate decision-making and pro rata temporary effects. Over time, we expect associated productivity gains could contribute to plus 0.25 to plus 0.5 points of additional EBITDA margin.

If we move on to the analysis of the evolution of our net recurrent earnings on Slide 32, we see here that our EBITDA increased by EUR 1.7 million. This brings the EBITDA margin to 82.4%. Our financial expenses grew by EUR 6 million in the meantime. This change is mainly due to the increase in debt marginal cost and to our refinancing operations. The change of our other operating items amounting to, as I mentioned earlier, to plus EUR 5.1 million is mainly due to indemnities received for early lease termination. IFRS standards imposed an accounting treatment outside rental income. It is worth noting that more than 90% of the GLA concerned by these indemnities I just mentioned has already been relet. The new rents will take effect in 2026 and 2027 after store setup period, hence, our pro forma presentation 2 slides ago.

Finally, change in equity associates and non-controlling interest have been mostly impacted by the change in the consolidation method of the ImocomPartners fund management company and the impacts of change of other minority interest due to acquisitions and disposals. On the basis of these elements, our net recurring earnings stood at EUR 117.5 million for 2025. Its increase is plus 3.9% over 12 months. This represents EUR 1.26 per share, also up plus 3.9%. This performance is at the top end of the range of the guidance we revised last year.

Slide 33. Our operating performance, rent growth and net acquisitions are also reflected in the positive evolution of the valuation of our portfolio. In 2025, the value of our portfolio exceeded the EUR 3 billion mark, up 10.1% over 12 months. This increase was driven by a positive rent effect for plus 2% and a scope effect for plus 8%. Meanwhile, capitalization rates stayed stable. Our appraisal yield remained flat at 6.65%, maintaining a premium of more than 300 basis points over the risk-free rate. This leaves potential for further revaluation given the current operational strength of our asset base and the associated level of our key performance indicators.

Slide 34. This portfolio revaluation is reflected in our NAV. EPRA net tangible assets came to EUR 16.96 per share, up plus 8.5% over 6 months and plus 4.1% over 12 months. The positive change over 12 months takes into account the following impacts: the payment of EUR 1 of dividends; the net recurrent earnings growth for plus EUR 1.26; the positive change in unrealized capital gains for EUR 1.41, including a negative effect linked to the change in valuation rates and positive effect linked to rents; and fourth, other items in relation to the accounting for minus EUR 0.99, mainly in relation to amortization and depreciation. I remind you that our accounting is on the historical cost method. Regarding our EPRA NDV, it is up plus 9.5% over 6 months and plus 5.1% over a year to reach EUR 17.29 per share.

Slide 35, we highlight that our current performance and our future growth remains supported by a robust financial structure. At the end of 2025, our banking covenant LTV, excluding duties, stood at 40.4%. Note that the LTV on screen is not taking into account the financial lease associated with our Lyon acquisition. Including this financial lease, our LTV stood at 39.5%, including rights at end of December. It is down 260 basis points over 6 months. These levels are all much lower than the 55% banking covenant that applies to all our confirmed bank lines.

Our ICR ratio stood at 4.9x as of December 31, well above the minimum level set by our covenants. Both our ICR ratio and net debt over EBITDA ratio were partially impacted at end of December by the pro rata temporary effect of the acquisition of Saint-Genis in Ain, which occurred in June. We had more debt, but half the EBITDA contribution. Note also that on October 17, Standard & Poor's reiterated Mercialys' BBB stable outlook rating.

Slide 36. As you know, in June 2025, Mercialys issued a EUR 300 million bond oversubscribed 5x with a maturity of 7 years. This [ emission ] illustrated investors' confidence in the credit quality of the company. It is intended to allow the redemption of the EUR 300 million bond maturing this month and carrying a coupon of 1.8%. At the end of December 2025, the average maturity of our drawn debt was 3.5 years. We also maintained a high level of coverage of our fixed rate debt at 89%. Additionally, Mercialys also has EUR 390 million of undrawn financial resources. All of our undrawn bank resources include ESG criteria.

I hope that with these results and through this presentation, we have shown that Mercialys combines portfolio strength, high recurrent profitability, balance sheet discipline and a high growth potential.

Building on these strengths, we expect a solid 2026 performance. We are targeting an earnings per share of at least EUR 1.29 with a dividend of at least EUR 1 per share. Our underlying growth of earnings shall be supported by continued strong retail operating performance with continued footfall and retail sales growth. It will be supported by the positive impacts of our dynamic leasing, by the ramp-up of some of our projects and by positive impacts of 2025 and new 2026 acquisition and as well a continued focus -- with a continued focus on cost discipline. Our guidance also incorporates and reflects the increase I mentioned of our cost of debt and the effect of disposals associated with our permanent asset rotation policy.

Well, that is all for me for today. Thank you for listening, and we can now follow up with the Q&A session.

[Operator Instructions] The next question comes from Florent Laroche-Joubert from ODDO BHF.

I would ask maybe 1 or 2 questions. So my first question would be on your development and investment plan. So could you give us maybe more color on the CapEx you are able or you're willing to invest in the coming years or for a year? And maybe also what would be the targeted credit profile for the next year? So do you still target maybe LTV ratio below -- around 40%? And maybe also, would it be possible to have some more color on the deliveries for the pipeline that you expect?

Okay. I'll start with maybe your second question. In terms of pipeline delivery, basically, what you can expect for 2026 are the delivery of small projects that are CapEx light that we started in 2024 and 2025 and that will contribute to additional rents in our projects. I mentioned about Brest and Niort. We are talking there about building walls to separate the unit to transform it and then to create reversion on the former space. We have also other initiatives like in Grenoble that will be due a little bit later. But basically, at the moment, what we are focusing on in strengthening our portfolio, and that's the type of delivery you can expect for '26 and '27.

In terms of acquisition, I mentioned a potential about EUR 100 million. As you know, and as I mentioned, it will also depend on the amount of disposal that we will realize during the year. We are always looking at liquidity and rotation of our portfolio because this is important to support our confidence in the level of valuation of our assets and then to contribute to general liquidity of the company. So depending on these disposals, we estimate that we have firepower of around EUR 100 million for 2026.

The balance between investment, new acquisitions, disposal and CapEx is always in mind for us and adamant criteria of maintaining our BBB perspective, stable rating from S&P. There are sets of criteria that S&P shares with us that are required, and we stick by them in a very orthodox way. So don't think that we will put that in danger in any sort of way. And we feel confident that we can both invest and maintain those criteria and this balance sheet equilibrium.

Okay. So that means that you can target potential acquisition investment for EUR 100 million maybe in the next 12 months, and then we will see what you are able to do for the next years, 2027 and 2028.

Yes, plus some potential disposal if we deem them interesting at the time with, of course, the pro rata effects of any acquisitions when they occur and when we communicate on them.

Yes. But in your guidance -- there is no acquisition included in the guidance. And today, you have very advanced discussions, significant to be added maybe later in the guidance.

We always include all perimeter effects in our guidance, and these perimeter effects can be from acquisitions, from disposal, but also from variation in our P&L. And I mentioned about the financing cost increase. What we provide to the investor is something that is clear. The management of how we invest, how we sell assets, how much value we create is ours -- it's our job. What we give you is something that -- is visibility on what we will deliver in terms of net recurrent earnings per share for the year to come.

The next question comes from Valerie Jacob from Bernstein.

Just maybe a follow-up question on the previous question about your investment strategy and capital allocation. You -- in terms of how you think about your pipeline, you said you have a criteria of 10% IRR. Currently in your pipeline, do you have projects that are above this hurdle rate? And if you do, why don't you launch them? I mean, I guess my question is how you think about development versus acquisition? And maybe to finish also, how you think about share buyback in this context? I've got another question, but I'll ask the question after.

This is an interesting question. This is part of what's thrilling in our jobs, to make the right choices of capital allocation. Our belief is that any investment should provide return within a short-term period. So when we see that we can either launch or start projects with low CapEx and high yield that can be compressed in time with short-term delivery, we do it, especially if they strengthen our assets. When we see that we have very relative acquisition potential, we will go for them because they are immediately contributive, especially if we think we can improve the KPIs of those assets.

So what we have in mind is short-term delivery on capital allocation. That's the driver. Plus a level of yield that's highly relative. And it's the combination of the 2 that's important. So no investment below 8% yield on cost. But then the difference between something that's long term at 8% and something that's short term at a little bit lower yield makes a lot of difference in our choices.

Okay. And maybe -- so you didn't answer about share buyback, right? How do you think about that versus acquisition and development?

I said in many road shows in the past that I thought buying back share was less interesting than investing in our industrial know-how. Now seeing how our shares trade and have been trading over the past year, lagging with inadequation in my mind between the strength of our underlying performance and where our share stands relatively, it's true that I started to ask myself -- and this is a discussion we had with the Board of the possibility of buying back share. We have not decided to do so in this sequence of results, but this is a thinking that's clearly in our mind.

Okay. And I've got another question about your recent acquisition and Saint-Genis. You said during the presentation that the assets' valuation were up more than 20% since you bought it, over the past 6 months. So I just wanted to understand what happened? I mean, was it a lucky buy? Or did you do anything to improve the valuation of the asset over the past few months? If you could share some details.

In the last 5 years or more, we have been transforming assets that are disliked into powerhouse. The assets I'm talking about are assets somehow that have no name. They are not retail parks. They are not convenience centers. They are not hypermarket galleries. They are in between. They are dominant -- they are assets that can become dominant in their local areas. They are assets that have an amplitude of offer that's very wide. They are assets that are convenient, that are low cost. And this category that we have named Shopping Park because it bears no name really, embodied by our Shop Park brand, is a category that was overlooked and little looked by investors.

When we went for the Saint-Genis acquisition, we faced little competition in those bids. Probably I should not say that too much publicly because that could attract investors in the future. But on these categories of assets where we see a huge potential and we deliver strong performance, there are little investors showing up. And so when you have a willing seller and you have a few counterparts as buyers, you make good deals and you make -- and the yields that we reach later on reflects the stability and the low risk on the cash flows.

We have a lot of our assets that are not considered prime shopping malls only, where we had 0 vacancy in the last 10 years because they are in secondary cities in France and where the risk on the performance is limited, which should definitely be translated into the valuation yield. So yes, for the assets that we work on, there is a big discrepancy between the yield as a reflection of the transaction on the market and the yield as a reflection of the risk on operational performance and on recurrence of cash flows.

The next question comes from Amal Aboulkhouatem from Degroof Petercam.

Congratulations for this result. I have 2 questions on my side. And the first one would be on the operational performance when it comes to retail sales, but also footfall. Is there any base effect to see behind the strong results as -- 2024 was impacted by the casino transition. Could that be an explanation for your strong outperformance?

It's interesting you're asking this question because this is something I failed to mention. Actually, our footfall performance in 2025 did not include the assets where the base effect could have been extremely positive because it would have wrapped our overall performance to a level that would not have been credible. So basically -- for instance, the Brest assets indeed has a huge base effect between 2024 and 2025, but it's not included in our report of footfall growth. The footfall growth comes from the other assets where we have a basis of comparison that's equal. So it's really -- and the performance that we are publishing are really the underlying performance of our model, not related to base effects.

Okay. Second question would be, again, on the investment policy and strategy. Just -- so we see you did a very great acquisition in 2025. How do you look at the market in 2026? Do you think this is replicable, meaning that do you see still potential targets that would, let's say, tick all the boxes at still attractive prices? You mentioned the retail park adjustments to your Toulouse portfolio -- your Toulouse asset, but have you identified more potential targets at this stage?

Yes, we are clear on the targets that we would like to acquire. We have a set list that we are looking at. We still see a few potential buyers. Probably it's because all those assets -- and this is true for commercial real estate in general -- are difficult to manage. We have a specific know-how that we know how to apply on those assets that a lot of investors, especially nonspecialists, cannot replicate easily. After -- and therefore, the yields on acquisition could reflect that, meaning being quite high.

After -- the difficulty is more on the vendor side, where we see vendors hesitating because probably they see what we do and they think maybe there is a possibility. So that limits a little bit the number of assets on sales. But we are very confident that there will be -- there are opportunities currently. And also, the fact that because the yields are high, the bank having a little bit more confidence about commercial real estate tend to refinance those potential vendors who hold the assets, which flows a little bit the dynamic of rotation on the market. But there are enough products that we like on the market for us to deliver what I just presented.

And is there any like plan to look at acquisition outside of France?

We -- despite all the political and economic turmoil in France, we still like the country. It has a very stable consumption base. We think, as we mentioned, that when we are focused on the right geographies, there is still a lot of potential. So that's our main focus. We are strong in France. We know the market to -- and each millimeter square of it. And so that's where we believe we can deliver most.

Now there is always this question of diversifying of our rental base, of the fact that our share drag or comparative share drag to our performance could also be related to some defiance from investors about any companies too exposed to France. And so this is also a question that the Board and I discuss and that we look at.

The next question comes from Benjamin Legrand from Kepler.

I have actually a few questions. You're mentioning disposals, but I was just wondering what kind of assets would you be disposing? Will it be smaller noncore assets? Or would you be looking at mature assets? And then on your acquisition plan, which would be financed through disposals, would you also be looking at new equity going forward? And related to that, your guidance for 2028, I mean, the midterm, is on earnings per share, right? It's not earnings only. I mean, if you do equity raise. That would be it for me.

In terms of the disposals, what we've always said and we continue to say and think is the fact that there is no trophy asset in our portfolio. Basically, the key for a REIT like us is to have full liquidity on the whole portfolio, not liquidity on a small part and then the rest overvalued. Then there's no ability to be sold. So anything could be sold. If it's at the right price, valued properly by the market, we could consider selling it. And we've shown in the last 6 years that basically we are ready to dispose of anything if the purchase circumstances are the right ones.

So there are multiple options. We have demand on some assets. People see the job that we are doing, especially locally. We have an average asset value of around EUR 70 million, which provides us many options in terms of seller type. So anything is possible. And then obviously, depending on the amount of what we could sell, then we would look at reallocating in order to be able to deliver the guidance that you have on screen or you must have still on screen right now.

In terms of equity raise, this is something that we mentioned in road shows. We saw that what some of our peers have done. We think this is clever. It's true that our stock trades at a huge discount, which creates a hurdle rate to -- for -- to have a relative acquisition a bit more complicated. But if we estimate that there are fantastic opportunities on the market that could be relative for our shareholders, great for the company overall portfolio strength, yes, we will consider looking at the option of equity raise.

[Operator Instructions] The next question comes from Alex Kolsteren from Van Lanschot Kempen.

I think my colleagues asked most questions, but I have one remaining. In that growth outlook, what do you assume will happen with the reletting of the hypermarket maturing next year summer?

Sorry, I could not hear precisely. What you're asking is the potential reversion on the hypermarket reletting?

Yes. Is that sort of accounted for in that growth outlook, 5% to 7%?

Yes. Basically, the hypermarket transformation is part of our overall strategy. And when we cut the hypermarket size related to new units, this creates a reversion. So at the moment, it's not accounted for in the reversion that we have published or at least any of these -- none of these operations are accounted for in the numbers that -- of reversion that we have published for last year.

That's understood. But I'm more talking about the outlook for '26 to '28. And then the organic growth figure is 1.5% to 2%. So my question is, is part of that 1.5% to 2% accounted for by the reletting of hypermarket space to non-hypermarket tenants?

Yes, of course. We count on this reletting to not only contribute to our organic growth but also contribute to the strength of our retail assets. This was part of our strategy. Remember back in 2015 and '16 when we said we are buying hypermarket walls in order to be able to transform them because we see that the hypermarket is changing and the operators will have to reduce their space to concentrate on food only, and so those spaces will have to be reconfigured? It's better to be in control of that reconfiguration, as we are, because we can do what is good for us instead of suffering the potential consequences of those reconfiguration as a weakness.

[Operator Instructions]

I think there are no further questions. So I think we'll end this conference on that. Thank you all, and I wish you a very pleasant day and a very pleasant result season.