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MERLIN Properties SOCIMI SA (ES:MRL)
BME:MRL
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MERLIN Properties SOCIMI SA (MRL) AI Stock Analysis

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MERLIN Properties SOCIMI SA

(BME:MRL)

Rating:71Outperform
Price Target:
€11.50
▲(0.79%Upside)
MERLIN Properties SOCIMI SA demonstrates a strong financial recovery with improved profitability and robust financial metrics. The stock's technical indicators are positive, indicating bullish momentum, though potential overbought conditions warrant caution. Valuation metrics suggest reasonable value but limited upside. Overall, the company's strong fundamentals and market performance are slightly offset by valuation constraints.

MERLIN Properties SOCIMI SA (MRL) vs. iShares MSCI Spain ETF (EWP)

MERLIN Properties SOCIMI SA Business Overview & Revenue Model

Company DescriptionMERLIN Properties SOCIMI SA (MRL) is a leading real estate investment company based in Spain, primarily engaged in the acquisition, development, and management of commercial real estate assets. The company's portfolio includes office buildings, shopping centers, logistics facilities, and hotels, predominantly located in the Iberian Peninsula. As a SOCIMI (Spanish Real Estate Investment Trust), MERLIN Properties benefits from a favorable tax regime, allowing it to focus on maximizing returns for its shareholders through strategic asset management and growth initiatives.
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:May 13, 2025
(Q1-2025)
|
% Change Since: 11.64%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a company experiencing strong growth in key areas such as FFO and data centers, with high occupancy rates and successful asset sales. However, challenges remain with a decrease in NTA, lagging logistics performance, and potential CapEx delays. While the highlights suggest positive momentum, the lowlights indicate areas of concern that balance the overall outlook.
Q1-2025 Updates
Positive Updates
Significant FFO Increase
FFO increased by almost 17%, significantly improving margins and nearly offsetting dilution from the capital increase.
Expansion in Data Centers
Acquired two sites in Madrid with 115 megawatts available, allowing for the development of 78 megawatts of IT capacity. Pre-letted 6 megawatts in Barcelona, enhancing leadership in the Iberian Peninsula.
High Occupancy Rates
Maintained a high occupancy rate of 96.7% across the portfolio, with an organic growth of 2.7% like-for-like.
Strong Performance in Shopping Centers
Shopping centers showed a strong performance with a release spread of 3%, described as performing like a rocket.
Asset Sales at Premium
Sold €37.4 million of non-core assets at a low double-digit premium, with more sales signed for 2025.
Negative Updates
Decrease in NTA
NTA declined by 4.8% due to the dilution from the capital increase, with no revaluation during the quarter.
Logistics Segment Lagging
Logistics segment growth at 1.8%, lagging behind other segments such as offices and shopping centers.
Negative Release Spread in Offices
Reported a negative release spread of -1.3% in offices due to a single transaction with rent loss.
Potential Delays in Phase 2 CapEx
CapEx for Phase 2 data centers in 2025 appears reduced by over 15%, raising concerns about potential project delays or demand issues.
Vacancy in Logistics
Anticipated a significant exit in logistics, with a projected vacancy of 47,000 square meters due to a tenant departure.
Company Guidance
During the first quarter trading update call for MERLIN, CEO Ismael Clemente discussed the company's performance and guidance. Consolidated gross rents increased by 2.7%, and the funds from operations (FFO) rose by 16.9%, improving the FFO per share to minus 2.6% despite a capital increase. The net tangible assets (NTA) were at minus 4.8%. Occupancy remained strong at 96.7%, and the company completed €37.4 million in non-core asset sales. A final dividend of €0.40 was approved, with €0.22 payable on May 26. In the data center sector, MERLIN acquired two sites in Madrid, adding 115 megawatts of power capacity. For the rest of 2025, the company maintained its guidance of €0.54 FFO, with potential for slight improvement, while expressing a cautious outlook due to 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
70
Positive
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.
Balance Sheet
75
Positive
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.
Cash Flow
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue494.57M464.78M439.04M382.83M446.13M
Gross Profit427.20M420.96M389.94M336.51M400.68M
EBITDA430.52M36.60M153.42M518.04M193.29M
Net Income283.76M-83.50M263.09M512.22M56.36M
Balance Sheet
Total Assets13.46B12.07B12.05B14.27B13.48B
Cash, Cash Equivalents and Short-Term Investments1.56B461.22M427.45M942.87M259.62M
Total Debt4.92B4.52B4.25B6.19B5.68B
Total Liabilities5.96B5.53B5.20B7.25B6.78B
Stockholders Equity7.50B6.54B6.85B7.03B6.70B
Cash Flow
Free Cash Flow297.30M225.96M220.44M158.79M132.09M
Operating Cash Flow316.78M227.97M222.16M162.46M134.66M
Investing Cash Flow-294.38M-274.75M1.18B-454.00K-229.87M
Financing Cash Flow1.07B78.56M-1.70B335.39M93.21M

MERLIN Properties SOCIMI SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.41
Price Trends
50DMA
10.81
Positive
100DMA
10.20
Positive
200DMA
10.21
Positive
Market Momentum
MACD
0.15
Positive
RSI
63.83
Neutral
STOCH
76.53
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 11.41 is above the 20-day moving average (MA) of 11.11, above the 50-day MA of 10.81, and above the 200-day MA of 10.21, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 76.53 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
€252.88M12.1613.85%8.23%18.54%82.83%
ESCOL
77
Outperform
€3.66B11.085.79%5.08%27.76%
ESMRL
71
Outperform
$6.28B19.834.25%3.81%8.04%
70
Outperform
€1.60B21.536.76%9.16%-16.61%-31.62%
70
Outperform
€1.39B20.623.13%5.40%-12.40%47.21%
67
Neutral
€6.30B-12.81506.30%7.00%7.07%23.52%
ESARM
47
Neutral
€197.27M-11.03%20.94%4.76%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:MRL
MERLIN Properties SOCIMI SA
11.41
1.48
14.94%
ES:ISUR
Inmobiliaria del Sur
13.80
5.83
73.24%
ES:RLIA
Realia Business
0.92
-0.04
-4.66%
ES:COL
Inmobiliaria Colonial
5.84
0.71
13.85%
ES:HOME
Neinor Homes
17.72
6.54
58.57%
ES:ARM
Arima Real Estate SOCIMI SA
7.60
-0.80
-9.52%

MERLIN Properties SOCIMI SA Corporate Events

MERLIN Properties Mourns the Loss of Board Member Emilio Novela Berlín
May 17, 2025

MERLIN Properties SOCIMI, S.A. announced the passing of board member Mr. Emilio Novela Berlín, highlighting his exceptional contributions and irreplaceable human values. The board expressed deep condolences to his family, acknowledging the significant impact of his loss on the company.

The most recent analyst rating on (ES:MRL) stock is a Buy with a EUR12.50 price target. To see the full list of analyst forecasts on MERLIN Properties SOCIMI SA stock, see the ES:MRL Stock Forecast page.

MERLIN Properties Reports Strong Q1 2025 Performance with Increased Rents and High Occupancy
May 13, 2025

MERLIN Properties reported a robust first quarter in 2025, with a 6.7% increase in gross rents to €132.5 million and an EBITDA of €102.0 million, marking an 8.9% rise compared to the previous year. The company maintained high occupancy levels at 96.7% and announced a final dividend of 22 cents per share for the 2024 financial year. The logistics portfolio showed strong performance with near-full occupancy and increased rents, while the office segment experienced a slight negative release spread due to a contract renewal in Madrid.

The most recent analyst rating on (ES:MRL) stock is a Buy with a EUR12.50 price target. To see the full list of analyst forecasts on MERLIN Properties SOCIMI SA stock, see the ES:MRL Stock Forecast page.

MERLIN Properties Announces Dividend and Reserve Distribution
Apr 30, 2025

MERLIN Properties SOCIMI, S.A. announced that its Ordinary General Meeting has approved the distribution of ordinary dividends and a reserve distribution to shareholders. The record date for determining eligible shareholders is set for May 9, 2025, with the payment date scheduled for May 26, 2025. Banco Santander, S.A. will act as the payment agent for these distributions.

MERLIN Properties Approves Board and Committee Appointments at Shareholders’ Meeting
Apr 30, 2025

MERLIN Properties SOCIMI SA held its General Shareholders’ Meeting on April 30, 2025, where all proposed agreements were approved as per the Board of Directors’ recommendations. The meeting resulted in the re-election and appointment of directors, maintaining the board at fourteen members and organizing the Audit and Control, Appointments and Remuneration, and Sustainability and Innovation Committees, which could impact the company’s governance and strategic direction.

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.Date of analysis: May 17, 2025