Carmila's Record Growth Signals a Turning Point for Retail Real Estate

PARIS, France – February 18, 2026 – European commercial real estate firm Carmila has posted record-breaking 2025 annual results, showcasing a powerful combination of operational excellence, strategic acquisitions, and innovative revenue diversification that has driven its earnings to new heights. The company reported an 8.8% surge in Net Rental Income (NRI) to €403.1 million and an 8.7% increase in recurring earnings per share (EPS) to €1.81, comfortably beating its initial targets and signaling robust health in a sector still navigating post-pandemic realities.

The impressive performance is built on what Carmila describes as its "three growth engines": strong organic growth from its existing assets, significant investment growth fueled by the successful integration of acquisitions, and a burgeoning innovation arm that is transforming its shopping centers into multi-faceted commercial hubs. This trifecta has not only boosted profitability but has also led to what the company calls a "turning point" in its portfolio valuation, a potential bellwether for the wider European retail property market.

Marie Cheval, Chair and Chief Executive Officer of Carmila, commented on the results, stating, “In 2025, Carmila demonstrated the ability of its model to deliver profitable growth across all its levers. The strong 8.7% growth in our recurring earnings per share reflects our operational excellence and the successful integration of Galimmo, as well as the contribution of our new innovative businesses — including Retail Media — as genuine high-margin growth drivers.”

A New Blueprint for the Shopping Center

At the core of Carmila's success is the strategic reinvention of its properties. Moving far beyond the traditional retail model, the company is transforming its 250 shopping centers into "Local LifeHubs." These are vibrant ecosystems anchored by Carrefour hypermarkets that integrate shopping with healthcare, services, dining, and leisure, attracting over 600 million visitors annually. This strategy has proven effective, with footfall rising 0.8% and retailer sales growing 0.9% in 2025.

This foundation supports the most forward-looking part of Carmila's strategy: its innovation growth engine. This division contributed €27 million to recurring earnings in 2025, a 14% increase from the previous year. These high-margin, low-capital activities are diversifying revenue streams away from a sole reliance on rent. Key initiatives include:

• Specialty Leasing: Generating €15 million in earnings, this segment leverages short-term rentals for pop-up stores and promotional events. The rollout of its "Clickstand" digital platform, which allows real-time booking of temporary spaces across 120 centers, is automating and scaling this flexible retail model.
• Retail Media: This high-potential business generated €2.6 million in earnings. In a major strategic move, Carmila has partnered with Carrefour, JCDecaux, and Unlimitail to create "Carmila Retail Media." This venture allows brands to target consumers directly on their shopping journey through digital and physical advertising, monetizing the company's vast footfall and data.
• Next Tower and Connectivity: Generating €3.5 million, this initiative monetizes the company's physical footprint by developing 5G antenna sites and Wi-Fi infrastructure, tapping into the critical need for digital connectivity.

This diversification is not just about adding revenue; it's about creating a more resilient and integrated commercial platform that deepens relationships with both retailers and consumers.

The Galimmo Gamble and a Market Turning Point

Carmila's investment growth engine, which added a substantial 5.3% to net rental income, was powerfully driven by the acquisition of Galimmo. The integration of the Galimmo portfolio, purchased in mid-2024 for approximately €300 million, has been a resounding success. Carmila's management expertise has revitalized these assets, boosting their occupancy by 100 basis points to 94% and achieving a record collection rate of 98.1%. The acquisition, made at a significant discount to Galimmo's net asset value, proved immediately accretive and showcases Carmila’s ability to identify and execute value-adding deals.

Perhaps the most significant news from the 2025 results is the reported "turning point" in portfolio valuation. The value of Carmila's portfolio rose 1.3% on a like-for-like basis to €6.7 billion. Critically, the Net Initial Yield (NIY) decreased for the first time in seven years, from 6.57% to 6.56%. While a small shift, this stabilization in yield is a crucial indicator that the market may be pricing in higher future growth and lower risk for these types of assets. This trend aligns with broader signs of recovery in the European real estate market, which has benefited from stabilizing interest rates. Carmila's ability to complete €69 million in asset disposals at appraisal values further validates the strength and liquidity of its portfolio.

Balancing Growth with Shareholder Rewards

Despite its aggressive growth and investment strategy, Carmila has remained firmly focused on delivering value to its shareholders. The company has proposed a 9% increase in its dividend to €1.36 per share, continuing a trend of steady growth since 2021. This is complemented by an active share buyback policy, with a new €10 million program set to launch, following €30 million in buybacks executed in 2025.

Beyond immediate returns, the intrinsic value of the company continues to climb. The EPRA Net Tangible Assets (NTA) per share, a key metric for REITs, increased by 1.5% to €26.52. This performance is underpinned by a robust balance sheet, with a manageable Loan-to-Value (LTV) ratio of 38.8% and strong credit ratings from S&P and Fitch. This financial discipline provides the stability needed to pursue growth while rewarding investors.

Looking ahead to 2026, Carmila projects continued momentum, forecasting a 2% growth in recurring earnings per share to €1.84. The company has confirmed its "net buyer" strategy, earmarking €100 million for new acquisitions to capitalize on market opportunities. With a clear strategy, a strong financial position, and a proven ability to innovate and execute, Carmila appears well-positioned to navigate the evolving retail landscape. This positions Carmila not just as a survivor of the retail shift, but as a proactive architect of its future.