Merlin Properties Reports Strong Operational Performance

Merlin Properties (OTC) ( (MRPRF) ) has released its Q4 earnings. Here is a breakdown of the information Merlin Properties (OTC) presented to its investors.

Merlin Properties (OTC) is a leading real estate investment trust (REIT) in Europe, focusing on office, logistics, shopping centers, and data centers, with a significant presence in Spain and Portugal.

The latest earnings report from Merlin Properties highlights a robust operating performance across all asset classes, with a record high occupancy rate of 96.7% and a notable increase in rents by 3.4% on a like-for-like basis. Despite these positive operational metrics, the company reported a negative total shareholder return of -2.3% year-over-year, primarily due to a capital increase.

Key financial metrics include a solid funds from operations (FFO) growth of 9.4% year-over-year, reaching €310.8 million. The company has also accelerated its data center capacity deployment, with 26 MW of IT in operation and plans for over 2 GW in the pipeline. However, the EPRA net tangible assets per share decreased by 5.0% year-over-year to €14.32, impacted by cash dividend distribution and capital increase.

Merlin Properties maintains a low leverage position with a loan-to-value ratio of 28.3%, positioning itself at the lower end of the European REIT universe, which allows for growth opportunities. The company’s cost of debt remains competitive at 2.55% spot rate, with a hedged rate of 2.46%.

Looking ahead, Merlin Properties aims to continue its strong operational performance and strategic expansion in data centers, with an estimated FFO per share of €0.54 for 2025, aligning with a similar dividend per share proposal as in 2024.