MERLIN Properties progressively recovers from Covid-19

  • Operating profit exceeds € 129 million (€0.27 per share), -3.8% vs. 6M20. Forecast FFO in 3Q and 4Q allows to meet guidance for 2021 (€0.56 per share)
  • Overall valuations flat vs. FY20, with offices and logistics in positive territory and shopping centers slightly down
  • Net asset value as per EPRA recommendations (“EPRA NTA”) stands at €15.55 per share, with a 0.6% growth FY20
  • LTV stands at 40.5%, after the distribution to shareholders of €0.30 per share


Madrid, 29th July – MERLIN Properties reported 6M21 results, with total revenues of €252.7 million (including gross rents of € 248.5 million), EBITDA of €179.2 million and operating profit of €129.2 million (€0.27 per share). Net earnings of €190.3 million, representing a 168.3% increase vs. 6M20.

The gross asset value (GAV) of the portfolio amounts to €12,893 million (+0.6% vs. FY20) with logistics (+4.0%) and offices (+0.4%) delivering positive LfL growth and shopping centers adjusting -1.5%. The net asset value of the portfolio amounts to €7,304 million (€15.55 per share), with an increase of 0.6% vs FY20 after distributing to shareholders €0.30 per share in the semester.

MERLIN Properties continues to actively manage its balance sheet, issuing a €500m – 9yr bond to repay the bond maturing in 2022 (with ca. 100 bps of cost savings). Strong liquidity position of €1,650 million.


  • Business performance

Positive release spread (+6.8%) does not offset the increased vacancy and negative CPI indexation in Q1 which has resulted in a LfL rental decrease in the period of -2.9%. Occupancy erosion finding its bottom and expected to recover slightly during the second half of the year, reconfirming FY21 occupancy guidance of ca. 90%.

  • Landmark Plan I

The Plan is almost complete with Castellana 85 and Monumental already delivered, fully occupied. The only pending asset is Plaza Ruiz Picasso, with works starting in September and a very attractive yield on cost. The asset will incorporate the latest in smart sensor technology to optimize performance.



  • Business performance

Logistics continues delivering good performance, with positive LfL (+1.0%) and release spread (+3.3%). Record high leasing activity with more than 275k sqm signed, which represent ca. 50% market share in the period. Two turnkey projects signed in the last available plot in Cabanillas Park I and the first plot in Cabanillas Park II, with an anchor client that marks the inauguration of the development. Substantial improvement in occupancy up to 96.2% (+151 bps vs. 3M21) after reletting on a long-term basis the spaces let temporarily in 2020.

  • Best Plan II & III

All Best II & III delivered assets are 100% let (ca. 320k sqm) to high quality tenants such as Carrefour, Dachser, Amazon, UPS, 4PX, Truck&Wheel, amongst others. Additionally, two turnkey projects signed, DSV in Cabanillas Park I for 44,858 sqm, and Logista in Cabanillas Park II for 47,080 sqm.

As a continuation of the Best plans, in order to expand our array of client services, we are launching a Digital Infrastructure Plan (Mega) with 4 Data Centers located across the Iberian Peninsula. Compelling stabilized low double digit YoC that outperforms conventional logistics and will become one of MERLIN’s pillars of growth in the upcoming years.


Shopping centers

  • Business performance

Footfall and tenant sales recovering despite the heavy restrictions during most of 1H and the lack of tourism, significantly improving vs. 2020, but still -31.4% and -32.0% YTD vs. same period 2019, which will be set as the reference period for comparison purposes hereinafter. Good operating performance, with +5.9% release spread, improvement in occupancy to 93.3% (+42 bps vs. 3M21), a very high re-tenanting rate of the spaces vacated due to Covid-19 and, most importantly, an early de-risking of 50% of the rents maturing in 2022, with less than 10% delta on net rents to FY19 pre-Covid.

  • Flagship Plan

Flagship plan completed with delivery of the last two shopping centers in the Plan (Porto Pi and Saler).

Preserving portfolio value

The gross asset value (GAV) of MERLIN amounts to €12,893 million as of June 30th 2021, following the appraisals performed by Savills, CBRE and JLL, versus a GAV of €12,811 million in FY20. By asset categories, the outstanding quality of our office’s portfolio (+0.4%) and the exponential growth of logistics (+4.0%) offsets the slight adjustments in shopping centers (-1.5%) and hotels.

Covid-19 commercial policy for 6M21 amounts to €19.6m (-29% vs. 6M20) in line with the guidance provided to the market in FY20. The Company faces insignificant collection default.

Net asset value amounts to €7,304 million, equivalent to €15.55 EPRA NTA per share, with a slight increase of 0.6% versus FY20.

As part of its non-core asset disposals policy, MERLIN has divested YTD circa €109 million at premium, including 3 non-core logistics assets, 1 office building in Madrid, 1 BBVA branch, 2 supermarkets and its stake in Aedas.


About MERLIN Properties

MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange. Specialized in the acquisition and management of commercial property in the Iberian region, MERLIN Properties mainly invests in offices, shopping centers and logistics facilities, within the Core and Core Plus segments, forming part of the benchmark IBEX-35, Euro STOXX 600, FTSE EPRA/NAREIT Global Real Estate, GPR Global Index, GPR-250 Index, and MSCI Small Caps indices.

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For further information please contact:

Nuria Salas,, +34 629 56 84 71

Sarah Estébanez,, +34 636 62 80 41