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MERLIN Properties SOCIMI SA (ES:MRL)
BME:MRL
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MERLIN Properties SOCIMI SA
(BME:MRL)
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Rating:75Outperform
Price Target:
€14.50
▲(14.90% Upside)
MERLIN Properties SOCIMI SA demonstrates strong financial performance with a robust balance sheet and improving profitability. The technical indicators suggest positive momentum, and the valuation is attractive with a reasonable P/E ratio and a solid dividend yield. These factors collectively contribute to a favorable stock score.
MERLIN Properties SOCIMI SA (MRL) vs. iShares MSCI Spain ETF (EWP)
Market Cap
$7.18B
Dividend Yield2.92%
Average Volume (3M)754.62K
Price to Earnings (P/E)10.8
Beta (1Y)0.83
Revenue Growth7.19%
EPS Growth470.92%
CountryES
Employees282
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.14
Shares Outstanding563,724,900
10 Day Avg. Volume884,887
30 Day Avg. Volume754,623
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 Cap1.37
Enterprise Value/Revenue18.97
Enterprise Value/Gross Profit23.09
Enterprise Value/Ebitda23.78
Forecast
1Y Price Target
$14.18Price Target Upside12.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
MERLIN Properties SOCIMI SA Business Overview & Revenue Model
Company DescriptionMERLIN Properties SOCIMI, SA, one of the main real estate companies listed on the Spanish Stock Exchange (IBEX-35), has as its main activity the acquisition and management of tertiary real estate assets in the Iberian Peninsula. The Company is a public limited company incorporated as a SOCIMI. The main activity of the Company is the acquisition, active management, operation and selective rotation of quality commercial real estate assets in the investment segment Core and Core Plus, mainly in Spain and, to a lesser extent, in Portugal. The Company focuses on the office, retail and logistics market.
How the Company Makes MoneyMERLIN Properties generates revenue primarily through the leasing of its real estate assets. The company earns rental income from tenants occupying its office buildings, retail spaces, and logistics properties. In addition to rental income, MERLIN Properties may also engage in the sale of assets within its portfolio to realize capital gains. The company's earnings are further supported by its strategic partnerships and joint ventures, which enable it to expand its asset base and enhance its market presence. MERLIN Properties' focus on high-quality, well-located assets allows it to maintain stable occupancy rates and achieve competitive rental yields, contributing significantly to its overall revenue.
MERLIN Properties SOCIMI SA Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong FFO growth and successful data center expansion, coupled with high occupancy rates and a stable dividend payout. However, challenges were noted in the logistics sector and a minor negative release spread in the office segment, alongside a decline in NTA. Despite these challenges, the company's strategic moves in data centers and overall solid performance contribute to a positive outlook.Q1-2025 Updates
Positive Updates
Strong FFO Growth
FFO increased by 16.9%, almost offsetting the dilution from the capital increase, indicating strong operational performance.
Data Center Expansion
Acquisition of two sites in Madrid with 115 megawatts available, enabling the development of 78 megawatts of IT capacity.
High Occupancy Rates
Occupancy remained high at 96.7%, demonstrating strong demand and efficient management of properties.
Dividend Announcement
A final dividend of €0.40, with €0.22 to be paid on May 26, complementing the 2024 dividend, reflecting shareholder confidence.
Commercialization Achievements
Successful lease of 18 megawatts IT in Azure and pre-letting of 6 megawatts in Barcelona, strengthening market leadership in the Iberian Peninsula.
Negative Updates
Minor Negative Release Spread in Offices
A release spread of minus 1.3% in offices due to a single transaction, although the contract was extended until 2032.
Logistics Sector Challenges
Logistics rents lagged behind other segments at 1.8%, with noted departures such as Decathlon, although some spaces were re-let.
NTA Decline
NTA per share showed a decline of 4.8%, reflecting ongoing adjustments due to the capital increase.
Company Guidance
During the first quarter of the fiscal year 2025, MERLIN's performance showcased several key metrics. Gross rents increased by 2.7%, while the funds from operations (FFO) rose by nearly 17%, despite a 2.6% decline in FFO per share due to a capital increase. The net tangible assets (NTA) remained at minus 4.8%. The company also expanded its data center capabilities in Madrid, acquiring two sites with a potential IT capacity of 78 megawatts. The occupancy rate remained high at 96.7%, and a €37.4 million non-core asset sale was achieved at a double-digit premium. The release spread reflected a mixed performance across sectors, with a positive trend in logistics and shopping centers. Notably, the FFO for the quarter suggested a slight improvement over the annual guidance of 0.59, yet the company opted for prudency amid global economic uncertainties.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 | 519.81M | 503.02M | 464.78M | 439.04M | 382.83M | 446.13M |
| Gross Profit | 426.95M | 508.64M | 420.96M | 389.94M | 336.51M | 400.68M |
| EBITDA | 414.55M | 430.52M | 36.60M | 153.42M | 518.04M | 193.29M |
| Net Income | 303.18M | 283.76M | -83.50M | 263.09M | 512.22M | 56.36M |
Balance Sheet | ||||||
| Total Assets | 13.60B | 13.46B | 12.07B | 12.05B | 14.27B | 13.48B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 1.56B | 461.22M | 427.45M | 942.87M | 259.62M |
| Total Debt | 5.23B | 4.92B | 4.52B | 4.25B | 6.19B | 5.68B |
| Total Liabilities | 6.01B | 5.96B | 5.53B | 5.20B | 7.25B | 6.78B |
| Stockholders Equity | 7.59B | 7.50B | 6.54B | 6.85B | 7.03B | 6.70B |
Cash Flow | ||||||
| Free Cash Flow | 62.82M | 297.30M | 225.96M | 220.44M | 158.79M | 132.09M |
| Operating Cash Flow | 62.82M | 316.78M | 227.97M | 222.16M | 162.46M | 134.66M |
| Investing Cash Flow | -57.69M | -294.38M | -274.75M | 1.18B | -454.00K | -229.87M |
| Financing Cash Flow | 126.92M | 1.07B | 78.56M | -1.70B | 335.39M | 93.21M |
MERLIN Properties SOCIMI SA Technical Analysis
Positive
12.62
Price Trends
12.57
Positive
11.72
Positive
10.83
Positive
Market Momentum
0.05
Positive
47.90
Neutral
30.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:MRL, the sentiment is Positive. The current price of 12.62 is below the 20-day moving average (MA) of 12.69, above the 50-day MA of 12.57, and above the 200-day MA of 10.83, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 30.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:MRL.
MERLIN Properties SOCIMI SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 258.45M | 12.55 | ― | 3.96% | 31.65% | 46.61% | |
75 Outperform | 1.44B | 12.38 | 2.13% | 4.30% | 30.74% | 67.62% | |
75 Outperform | $7.18B | 10.82 | 9.06% | 2.92% | 7.19% | 470.92% | |
74 Outperform | 3.41B | 7.02 | 5.41% | 5.45% | -16.98% | ― | |
62 Neutral | 1.55B | 22.77 | 7.22% | 17.79% | -19.93% | -42.19% | |
50 Neutral | 198.56M | -6.46 | -11.69% | ― | 20.94% | 4.76% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
ES:MRL
MERLIN Properties SOCIMI SA
12.75
1.58
14.12%
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13.90
5.55
66.47%
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17.30
4.65
36.76%
GB:0KBV
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0.94
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-6.93%
DE:3AZ
Arima Real Estate SOCIMI SA
7.00
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-15.66%
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.