JPMorgan's analyst Vanessa Guy has increased the price target for Merlin Properties (MRPRF, Financial) from EUR 13.90 to EUR 14.50. The analyst maintains an Overweight rating on the company's shares, reflecting a positive outlook on their performance. This adjustment suggests a strong belief in the firm's potential growth and financial health.
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.
