Q3 2024 MERLIN Properties SOCIMI SA Earnings Call Transcript
Key Points
- Merlin Properties SOCIMI SA (MRPRF) reported an organic FFO increase of close to 7%, indicating strong financial performance.
- The overall occupancy rate improved to 95.6%, with growth across all asset classes.
- The company secured large leases, including a 15-megawatt lease in Barcelona, expected to boost income by EUR 23 million next year.
- Merlin Properties announced a dividend of EUR 0.18 per share, payable on December 10, reflecting confidence in its financial health.
- Moody's upgraded the company's debt rating to BAA1, following an upgrade by S&P to BBB+, highlighting improved creditworthiness.
- The potential elimination of the SOCIMI regime has created uncertainty, impacting the company's stock price negatively.
- The proposed tax changes could impact FFO by approximately 8.5%, necessitating strategic adjustments.
- The company faces challenges in sheltering income from double taxation, particularly from Portuguese sources.
- The recent capital increase led to a dilution effect, worsening FFO and NPA metrics by 11% and 7%, respectively.
- Flooding in Spain caused minor operational disruptions, although no significant asset damage was reported.
Dear ladies and gentlemen, welcome, and thank you for joining MERLIN's nine months '24 trading update conference call. As in previous quarterly results, our CEO, Ismael Clemente, will provide you with the main highlights of the period.
(Operator Instructions)
Thank you, Ines. Good afternoon, everyone. Welcome to MERLIN third quarter results presentation. On Monday, we were heading to approve the Board of Directors and report to market an excellent set of results, both quantitatively and qualitatively, given particularly the progress on the data center business plan.
Disgracefully, given the news about the attempted modification of the SOCIMI regime, these results have been all a sudden overshadowed by uncertainty and anger, two of the worst enemies of the stock market. Our shares plummeted on Tuesday by more than 7%, and we have been unable to
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