In This Article:
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Occupancy Rate: Overall portfolio occupancy reached 96.7%, with logistics at a historical high of 99.4%.
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Like-for-Like Growth: Offices reported a like-for-like growth of 3.9%, logistics at 2.8%, and shopping centers at 2.7%.
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Occupancy Cost Ratio: Shopping centers achieved an occupancy cost ratio of 11.2%, a historical minimum.
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Funds From Operations (FFO): FFO was positively impacted by a capital increase and high interest rates, although specific figures were not disclosed.
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Loan-to-Value (LTV): LTV stands at 28%, with all debt at a fixed rate and no maturities until November 2026.
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Net Tangible Assets (NTA): NTA decreased from 1,508 to 1,432 due to capital increase dilution.
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Gross Rental Income (GRI): GRI increased by approximately 25 million.
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Debt Rating Upgrades: Both Moody's and S&P upgraded the company's debt rating.
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Data Centers: Signed a 150 MW IT block in Barcelona, with ongoing negotiations for an 18 MW block in Azur.
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Divestments: Sold 73 million of non-core assets, with 53 million signed for future sales.
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Estimated FFO for 2025: Projected to be around 54 per share, flat compared to the previous year.
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Dividend Proposal: Suggesting a $0.22 per share dividend for the 2024 financial year.
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Merlin Properties SOCIMI SA (MRPRF) achieved a record occupancy rate of 96.7% across its portfolio, indicating strong demand for its properties.
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The company reported significant rental growth in its office and logistics sectors, with logistics reaching a historical occupancy record of 99.4%.
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Shopping centers performed exceptionally well, with a like-for-like growth of 2.7% and a low occupancy cost ratio of 11.2%, suggesting strong tenant performance.
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Merlin Properties SOCIMI SA's financial position is robust, with a low loan-to-value (LTV) ratio of 28% and no major debt maturities until November 2026.
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The company successfully completed a capital increase to fund its data center development, which is expected to drive future cash flow growth.
Negative Points
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The company faces increasing financing costs, with interest expenses expected to rise significantly through 2025 and 2026.
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Merlin Properties SOCIMI SA's guidance for 2025 indicates a relatively flat cash flow, partly due to rising financial expenses and ongoing investments in data centers.
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There is some weakness in the Barcelona office market, which has impacted overall office performance.
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The company's dividend was reduced, which may send a negative signal to investors despite the rationale of reinvesting in growth.
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Merlin Properties SOCIMI SA's data center division is currently a negative contributor to cash flow, with profitability not expected until 2027.