Goldman Sachs has revised its price target for Merlin Properties (MRPRF, Financial), increasing it slightly from EUR 13.40 to EUR 13.50 while maintaining its Buy rating on the stock. This adjustment reflects continued confidence in the company's market performance. Investors looking for data-driven insights on company performance and undervalued stocks can benefit from various analytical tools designed to aid in making informed investment choices.
MRPRF Key Business Developments
Release Date: May 14, 2025
- Gross Rents Growth: Increased by 2.7%.
- FFO Growth: Increased by 16.9% compared to the first quarter of 2024.
- FFO per Share: Running at minus 2.6% due to capital increase.
- NTA per Share: EUR 14.47.
- Final Dividend: EUR 0.40, with EUR 0.22 to be paid on May 26.
- Occupancy Rate: Maintained at 96.7%.
- Organic Growth: 2.7% like-for-like growth in the existing portfolio.
- Asset Sales: EUR 37.4 million of non-core sales at a low double-digit premium.
- Office Rent Growth: 2.9% increase.
- Logistics Rent Growth: 1.8% increase.
- Shopping Centers Rent Growth: 2.8% increase.
- Release Spread in Offices: 1.3% due to a specific contract renewal.
- Contracted Space: 115,000 square meters in offices.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Merlin Properties SOCIMI SA (MRPRF, Financial) reported a 2.7% increase in gross rents for the first quarter.
- The company's FFO increased by 16.9%, nearly offsetting the dilution from the capital increase.
- Occupancy rates remain high at 96.7%, showcasing strong operational performance.
- Merlin Properties has successfully pre-let 6 megawatts of repowering capacity in Barcelona, indicating strong demand.
- The company is on track to become a leader in IT operations in the Iberian Peninsula with its data center developments.
Negative Points
- FFO per share is down by 2.6% due to the capital increase, despite overall FFO growth.
- The logistics segment is lagging behind other segments with only a 1.8% rent increase.
- Merlin Properties experienced a negative release spread of 1.3% in offices due to a contract renewal at lower rents.
- The company is facing potential challenges in the logistics sector as online commerce growth slows to single digits.
- There is uncertainty regarding the US Artificial Intelligence Diffusion Act, affecting the company's expansion plans in Portugal.
