Merlin Properties SOCIMI SA (XMAD:MRL)

Q1 2025 MERLIN Properties SOCIMI SA Earnings Call Transcript

May 14, 2025 / 01:00PM GMT

Release Date Price: €10.55 (+3.23%)

Transcript

Key Points

Positve

Merlin Properties SOCIMI SA (MRPRF) 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

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.

Ines Arellano

MERLIN Properties SOCIMI SA - Director, IR Contact

Good afternoon ladies and gentlemen. Welcome and thank you for joining MERLIN's first quarter trading update conference call. As we always do on first and third quarter, our CEO, Ismael Clemente, will briefly go to the main highlights of the quarter and then we'll open the line for Q&A. (Operator Instructions)

Ismael Clemente Orrego

MERLIN Properties SOCIMI SA - Chief Executive Officer, Executive Vice Chairman of the Board of Directors

Thank you, Enad. Welcome to MERLIN first-quarter results presentation. It's been a pretty solid quarter overall. In terms of consolidated performance, growth rents went up by 2.7%. It was okay. And particularly we improved significantly our margins. And the FFO went up by almost 17%, which is good.

We have significantly shrunk the dilution caused by the capital increase. So we are running at present at minus 2.6% FFO per share, which is remarkable given the new share count. In terms of MTA, despite not having revalued in the quarter, we are running

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