Half Year 2026 MERLIN Properties SOCIMI SA Earnings Call Transcript
Key Points
- Strong operational performance with 3.3% like-for-like rental growth and high overall occupancy of 94.7% across traditional asset classes.
- Double-digit revenue growth of 11.7% and solid FFO growth of 8% despite higher financial expenses, nearing recovery of dilution from the capital increase.
- Excellent execution in the data center Mega Plan, with commercialized capacity surging to 160 megawatts and a target to far exceed the 200-megawatt full-year guidance.
- Significant value creation with a 3.7% increase in GAV, driven by data centers, and a strengthened balance sheet with a low 24.5% loan-to-value ratio.
- Robust performance in shopping centers with 6.4% like-for-like rental growth, 8.4% increase in tenant sales, and affordable occupancy costs of 10.8%.
- Logistics segment experienced a loss in occupancy despite good lease spreads, indicating some market normalization.
- Office portfolio in Barcelona suffered from a tenant exit in Torre Glories, leading to the lowest occupancy level in that market at 84.4%.
- Financial expenses continue to rise, impacting FFO per share, which declined 1.8% year-on-year on a total share count basis.
- Construction costs and permitting delays remain a challenge, particularly for logistics and office developments, with some projects facing administrative hurdles.
- Data center development is partially funded, requiring future capital raises or convertible bond issuances, which could dilute shareholders.
Good afternoon, ladies and gentlemen. Thank you for joining MERLIN's 6M '26 results presentation. You can find all the materials that will be presented in today's call on our website. I will please ask you to be advised by the disclaimer contained in it. Our CEO, Ismael Clemente, along with the two directors, Ines Arellano and Francisco Rivas, will walk you through the main highlights of the first six months of 2026.
We'll then open the line for Q&A. (Operator Instructions)
With no further delay, I pass the floor to Ismael.
Thank you, Theresa. Thank you for attending MERLIN Properties first half 2026 results. I will be following the presentation that we have prepared for the occasion. So regarding the main highlights in operating performance, financial performance and value creation for the period, I would like to remark that we continued enjoying strong operation in all of our traditional asset classes with a 3
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