Press

19/07/2024

Strong first semester for MERLIN Properties, with gross rents growing 4.4%, surpassing € 248 million

  • Strong operating performance continues, with satisfactory rental growth (+2.8% LfL) and positive release spreads in all asset categories
  • EBITDA reached € 188.4m, +3.7% compared to 6M23
  • Funds From Operations (FFO) improvement up to € 147.8m
  • Revaluation of data centers (+13.3% vs. FY23) reverted the deterioration in valuations caused by the increase in interest rates
  • S&P has upgraded MERLIN’s debt rating to BBB+ on the basis of sustained lower leverage and expanding cash flow base
  • The net asset value according to EPRA (EPRA NTA) stands at €15.11 p.s., after distributing 24 cents of dividend in the second quarter

 

 

Madrid, 19th July – MERLIN Properties has closed the first semester of 2024 with total revenues of €253.7 million (including gross rents of €248.2 million), EBITDA of €188.4 million, FFO of €147.8 million (31 cents of euro per share) and net earnings of €132.8 million.

The gross asset value (GAV) stands at € 11,375 million, with no decrease in appraisals thanks to the revaluation of data centers (+13.3% vs. FY23). The net asset value amounts to €7,097 million (€15.11 per share), with a slight increase of +0.2% compared to December 2023.

The Loan-to-Value (LTV) stands at 35.6% (vs. 35.0% in FY23), with a liquidity position of €1,572 million. 97.2% of debt is fixed and the average maturity period is 4.8 years.

 

Business Performance

Like-for-like increase in rents (+1.8%) and renewals (+1.1%) in offices. Occupancy remains stable and will improve towards year-end, set to exceed our highest historical figure reaching 93%. The recovery of the A-1 stands out (+70,000 sqm since 2018), thanks to initiatives such as MERLIN Hub and the proximity of the Chamartín Operation.

Yet another semester with an excellent performance in the logistics portfolio, with like-for-like rents growing a +4.1%, release spreads increasing by +2.9% and occupancy standing at 97.6%, which is set to improve towards year-end. Turn-key project signed this semester with Total, for the delivery of an 18,133 sqm warehouse in Cabanillas Park II, and with XPO, for the delivery of a 2,477 sqm warehouse in Sevilla ZAL. Within the Landbank (511k sqm), 33k sqm have been pre-let and 179k with HoT signed, which will be turning into pre-lets in the upcoming months.

Excellent business performance in shopping centers, with a strong like-for-like increase in rents (+3.3%) and renewals (+6.4%). Occupancy cost ratio continues at historical lows (11.5%) and footfall (+3.3%) and tenant sales (+5.0%) are performing better than in 2023.

 

In Phase II of data centers (200 MW), the construction license for LIS01-VFX has already been granted and power is secured for 100 MW AI Campus. BIO02-ARA has power in place for additional 94 MW and the construction license is expected to be obtained in 4Q24.

Investment and divestment activity

MERLIN’s gross asset value (GAV) amounts to €11,375 million as of 30th of June 2024 according to the appraisal value delivered by Savills, CBRE and JLL. By asset category, it is worth highlighting the value created in the data centers and logistics developments (€53.5m), which compensates the value loss in the remaining operating portfolio (-€48.7). The net asset value amounts to €7,097 million, which is equivalent to €15.11 EPRA NTA per share.

 

 

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 development, acquisition and management of commercial property in the Iberian region. MERLIN Properties mainly invests in offices, shopping centers, logistics facilities and data centers, 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, MSCI Small Caps indices and DJSI.

Please visit www.merlinproperties.com to learn more about the company.

 

For further information please contact:

Nuria Salas, nsalas@tinkle.es, +34 629 56 84 71

Sarah Estébanez, sestebanez@tinkle.es, +34 636 62 80 41