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Merlin Properties (OTC) (ES:MRL)
:MRL
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MERLIN Properties SOCIMI SA
(OTC:MRL)
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Select Model
Rating:65Neutral
Price Target:
€13.50
▼(-0.22% Downside)
MERLIN Properties shows strong financial recovery and attractive valuation, which are significant strengths. However, the technical indicators suggest a bearish trend, and the earnings call revealed some operational challenges. These factors contribute to a moderate overall stock score.
Positive Factors
High Occupancy Rates
High occupancy rates indicate strong demand for MERLIN's properties, ensuring stable rental income and supporting long-term revenue growth.
Data Center Expansion
Expansion in data centers positions MERLIN in a high-growth sector, potentially increasing future revenue streams and enhancing competitive advantage.
Strong Financial Performance
Improved financial metrics reflect efficient operations and robust demand, supporting sustainable profitability and shareholder value.
Negative Factors
Logistics Sector Challenges
Occupancy challenges in logistics could impact rental income stability and growth, requiring strategic adjustments to maintain sector performance.
Environmental Assessment Delays
Delays in environmental assessments can postpone project timelines, affecting revenue realization and strategic expansion plans.
European Union Program Delays
Delays in the EU program may hinder competitive positioning and revenue generation from new projects, impacting long-term growth.
MERLIN Properties SOCIMI SA (MRL) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€7.10B
Dividend Yield3.01%
Average Volume (3M)830.40K
Price to Earnings (P/E)11.1
Beta (1Y)0.71
Revenue Growth7.09%
EPS Growth369.07%
CountryES
Employees282
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.14
Shares Outstanding563,724,900
10 Day Avg. Volume836,117
30 Day Avg. Volume830,397
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)0.69
Price to Sales (P/S)10.30
P/FCF Ratio17.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€14.97Price Target Upside10.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.56
Revenue Forecast (FY)€547.64M
MERLIN Properties SOCIMI SA Business Overview & Revenue Model
Company DescriptionMERLIN Properties SOCIMI SA (MRL) is a leading real estate investment trust (REIT) based in Spain, primarily focused on the acquisition, development, and management of commercial properties. The company specializes in the office, retail, and logistics sectors, with a significant portfolio concentrated in major Spanish cities such as Madrid and Barcelona, as well as select assets in other European markets. MERLIN aims to generate stable and recurring income through its high-quality real estate assets while delivering value to its shareholders.
How the Company Makes MoneyMERLIN Properties generates revenue primarily through rental income from its diversified portfolio of commercial properties. The company leases office spaces, retail units, and logistics facilities to a range of tenants, which includes multinational corporations and local businesses. Key revenue streams include long-term lease agreements that provide predictable cash flows, as well as property management services. The company may also realize gains from property sales or development projects, contributing to its earnings. Strategic partnerships with other real estate firms and stakeholders enhance its market presence and may lead to joint ventures on new developments, further diversifying its income sources.
MERLIN Properties SOCIMI SA Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlights strong financial performance and stable occupancy rates across asset classes, with significant progress in Data Center expansion. However, there are challenges with logistics occupancy, environmental assessment delays, and uncertainties around the EU Gigafactory program. The sentiment is balanced with both positive and negative aspects.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Gross rents increased by 3.4% like-for-like, and FFO per share grew by 6.4% year-on-year, despite higher financial expenses. The NTA per share increased by 5.7% year-on-year, contributing to a theoretical TSR of 8.4% for the period.
High Occupancy Rates
The company's occupancy rate remains very stable at 95.5%, with strong activity in Offices, Logistics, and Shopping Centers, totaling over 700,000 square meters in transactions.
Data Center Expansion
The Mega Plan for Data Centers is progressing successfully, with preparations for Phase 3 underway. The company is targeting to pre-commercialize 48 megawatts by April for Phase 2, with advanced documentation for 20 megawatts.
Shopping Centers Performance
Shopping Centers saw a like-for-like growth of 3.5%, with a lease spread of 4.2%, supported by the extension of Marineda in La Coruna.
Negative Updates
Logistics Sector Challenges
Logistics experienced a drop in like-for-like growth to 1.7% due to a 200 basis points loss in occupancy, despite a strong release spread of 5.7%.
Environmental Assessment Delays
Projects in Madrid are facing delays due to required double environmental assessments, impacting the timeline for Tres Cantos and Getafe by 6 months to a year.
European Union Program Delays
The EU Gigafactory program is delayed by 4 months, affecting the competitive advantage and commercialization timeline for Phase 2 of Data Centers.
Company Guidance
During MERLIN Properties' 9M25 trading update call, the company reported a 3.4% increase in like-for-like gross rents and a stable occupancy rate at 95.5%, despite a slight 10 basis point decrease. The financial performance was bolstered by a 6.4% year-on-year rise in FFO per share, driven by strong contributions from the data center division, and a 5.7% increase in NTA per share, leading to a theoretical TSR of 8.4%. The company executed over 700,000 square meters in transactions across Offices, Logistics, and Shopping Centers. However, challenges included higher financial expenses due to an earlier-than-anticipated bond issuance and delays in the EU Gigafactory program, impacting the competitive advantage in the data center sector. Despite these challenges, MERLIN remains proactive in commercialization efforts and anticipates exceeding its 2025 CapEx commitments.MERLIN Properties SOCIMI SA Financial Statement Overview
Summary
MERLIN Properties SOCIMI SA exhibits a strong financial recovery with improved profitability and robust balance sheet metrics. While cash flow metrics show positive trends, there's potential for enhancing cash conversion. The company is on a solid financial footing with opportunities for further strengthening its cash flow management.Income Statement
The company shows a strong recovery in profitability with a significant increase in Net Income from a loss in the previous year to a substantial profit, reflecting improved operational performance. Revenue growth is moderate, but the EBIT and EBITDA margins are healthy, indicating efficient cost management.70
Positive
Balance Sheet
The balance sheet is robust with a healthy equity base as evidenced by a strong equity ratio. The debt-to-equity ratio is reasonable, suggesting a well-managed leverage position. Return on Equity has improved significantly due to increased net income, signaling strong shareholder returns.75
Positive
Cash Flow
Free Cash Flow has shown growth, indicating improved operational efficiency. The Operating Cash Flow to Net Income ratio is strong, but the Free Cash Flow to Net Income ratio could be better, suggesting room for improvement in cash generation relative to profits.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 522.21M | 503.02M | 504.70M | 439.04M | 382.83M | 446.13M |
| Gross Profit | 449.71M | 508.64M | 420.96M | 389.94M | 336.51M | 400.68M |
| EBITDA | 814.12M | 430.52M | 36.60M | 153.42M | 518.04M | 193.29M |
| Net Income | 663.86M | 283.76M | -83.50M | 263.09M | 512.22M | 56.36M |
Balance Sheet | ||||||
| Total Assets | 13.37B | 13.46B | 12.07B | 12.05B | 14.27B | 13.48B |
| Cash, Cash Equivalents and Short-Term Investments | 849.19M | 1.56B | 461.22M | 427.45M | 942.87M | 252.87M |
| Total Debt | 4.44B | 4.92B | 4.52B | 4.25B | 6.19B | 5.68B |
| Total Liabilities | 5.49B | 5.96B | 5.53B | 5.20B | 7.25B | 6.78B |
| Stockholders Equity | 7.89B | 7.50B | 6.54B | 6.85B | 7.03B | 6.70B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 297.30M | 225.96M | 220.44M | 158.79M | 132.09M |
| Operating Cash Flow | 0.00 | 316.78M | 227.97M | 222.16M | 162.46M | 134.66M |
| Investing Cash Flow | 0.00 | -294.38M | -274.75M | 1.18B | -454.00K | -229.87M |
| Financing Cash Flow | 0.00 | 1.07B | 78.56M | -1.70B | 335.39M | 93.21M |
MERLIN Properties SOCIMI SA Technical Analysis
Negative
13.53
Price Trends
12.98
Negative
12.68
Negative
11.38
Positive
Market Momentum
-0.13
Negative
41.51
Neutral
73.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:MRL, the sentiment is Negative. The current price of 13.53 is above the 20-day moving average (MA) of 12.71, above the 50-day MA of 12.98, and above the 200-day MA of 11.38, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:MRL.
MERLIN Properties SOCIMI SA Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €262.17M | 12.73 | 10.13% | 3.93% | 31.65% | 46.61% | |
74 Outperform | €3.38B | 7.04 | 8.84% | 5.74% | -16.98% | ― | |
65 Neutral | €7.10B | 11.08 | 8.09% | 3.01% | 7.09% | 369.07% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | €1.59B | 13.93 | 3.83% | 3.99% | 30.74% | 67.62% | |
62 Neutral | €1.72B | 23.47 | 5.74% | 16.98% | -19.93% | -42.19% | |
50 Neutral | €235.08M | ― | -6.13% | ― | 4.98% | 41.96% |
* Real Estate Sector Average
ES:MRL
MERLIN Properties SOCIMI SA
12.58
2.42
23.87%
ES:COL
Inmobiliaria Colonial
5.23
0.09
1.77%
ES:ISUR
Inmobiliaria del Sur
14.00
5.41
62.98%
ES:HOME
Neinor Homes
18.08
4.71
35.28%
ES:RLIA
Realia Business
1.01
>-0.01
-0.50%
ES:ARM
Arima Real Estate SOCIMI SA
7.40
-0.90
-10.84%
MERLIN Properties SOCIMI SA Corporate Events
Merlin Properties Reports Strong Earnings and Growth
Nov 15, 2025
Merlin Properties (OTC) is a leading real estate company operating in the office, logistics, and shopping center sectors, known for its strategic investments and high occupancy rates across its portfolio.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.