MERLIN Properties SOCIMI (MRL) Q2 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in H1 2025, with high occupancy and rental growth across all asset classes, and a 95.4% occupancy rate as of June 30, 2025.

• FFO increased 12.8% year-over-year, driven by improved margins, asset revaluation, and data center expansion.

• Net profit surged to €512.9m from €132.8m, mainly due to revaluation gains.

• Raised FFO guidance for 2025 to €0.56 per share and proposed a dividend increase to €0.42 per share.

• Completed €183.2m in non-core divestments at a premium to GAV, with further sales signed for 2025-2026.

Financial highlights

• Total revenues rose 8.5% year-over-year to €275.3m; gross rents after incentives up 6.5% to €249.6m.

• EBITDA increased 9.0% to €205.3m; FFO up 12.8% to €166.6m; AFFO up 12.2% to €159.8m.

• IFRS net profit surged to €512.9m from €132.8m, mainly due to revaluation gains.

• EPRA NTA per share at €15.04, up from €14.32 at year-end.

• Gross asset value (GAV) increased to €12.1 billion, up 3.2% like-for-like from December 2024.

Outlook and guidance

• FFO guidance for 2025 raised to €0.56 per share; dividend proposal increased to €0.42 per share.

• 2026 FFO expected to be relatively flat, with significant growth anticipated from 2027 as new logistics and data center projects come online.

• Market outlook remains positive, especially in offices and shopping centers, with continued strong private consumption in Spain.

• Analyst consensus target price is €13.08, with most recommendations at buy or overweight.