Funds from operations (FFO) are up +3.7% to Euro 105.5 million, and +3.1% to Euro 1.13 per share, higher than the target for earnings per share growth of at least +2%.
The +4.1% organic growth in invoiced rents reflects the positive impact of the various actions carried out on the portfolio, achieving +2.8% average positive reversion in addition to a moderate indexation rate of +1.9%.
Tenant retailer sales are up +1.0% compared with 2019, the last normalized reference year.
The EBITDA margin came to a high level of 83.2%, with the strict control over operating costs helping offset the additional costs temporarily sustained in connection with the finalization of the process to bring functions in-house.
The Company’s balance sheet and liquidity were further strengthened by the successful refinancing operation carried out during the first quarter, which made it possible to extend the maturity and improve liquidity. Illustrating this, the Company’s next bond maturity will not be until February 2026. Alongside this, Mercialys has continued moving forward with its ongoing divestment strategy, with Euro 87 million (including transfer taxes) of sales completed in 2022. The loan to value ratio (LTV excluding transfer taxes) shows a significant decrease to 35.3% at end-2022, compared with 36.7% at end-2021.
The Company’s sound financial structure and positive recurrent cash generation offer headroom for new investments, which had been held back to a great extent since 2020. In addition to its priority areas for development over the medium term (service platforms, maximization of spaces), Mercialys aims to accelerate its growth through targeted and accretive acquisitions and the resumption of its project pipeline.
The portfolio value including transfer taxes is up slightly like-for-like at end-2022 (+0.9%) despite a limited 4bp increase in the average appraisal rate, highlighting the resilience of Mercialys’ portfolio. The EPRA NDV came to Euro 20.9 per share, up +19.0% for the full year and +6.6% for the second half of the year.
Proposed dividend of Euro 0.96 per share for 2022, offering a 9.8% yield on the closing share price from end-2022. The dividend represents 85% of (FFO), in line with the objective announced by the Company.
2023 objectives: In an environment in which interest rates and inflation could remain high for some time, the Company is moving forward in 2023 with confidence thanks to the visibility offered by the resilient profile of its assets. The Company will continue to carefully monitor the solvency of its client retailers, while also protecting its balance sheet positions. Mercialys is targeting growth of at least +2.0% in FFO per share, with the dividend to range from 85% to 95% of 2023 FFO.