MERLIN Properties SOCIMI (MRL) H2 2025 earnings summary

Executive summary

• Achieved record operational and financial results for FY2025, driven by exceptional data center performance, high occupancy, and strong rental growth across all asset classes.

• Data center division fully de-risked for phase I, significant progress in phase II, and groundwork for phase III underway, contributing to a €359m uplift in asset value.

• Total revenues reached €565m, EBITDA €416m (+9.7% YoY), net profit €786.1m, and FFO €326.7m (+5.1% YoY), supported by asset revaluations and robust FFO generation.

• Maintained low leverage (LTV 28.9%), €2bn liquidity, and 100% fixed-rate debt with no maturities until late 2026.

• Delivered double-digit total shareholder return (+10.2% YoY) and share price outperformed sector indexes.

Financial highlights

• Gross rents reached €541.9m (+3.5% like-for-like), FFO €326.7m (+5.1% YoY), and net profit €786.1m, driven by data center revaluation.

• EPRA NTA per share at €15.36 (+7.3% YoY), GAV increased to €12,630m (+4.7% like-for-like), and EPRA net income yield of 4.6%.

• Dividend per share proposed at €0.44, slightly above the 80% payout threshold, with €0.20 already paid.

• AFFO reached €304.7m (+4.6% YoY), and NOI margin for data centers was ~70%.

• Occupancy rates: offices 94.2%, logistics 96.4%, shopping centers 97.0%, overall 95.6%.

Outlook and guidance

• 2026 guidance indicates flat FFO and dividend per share at €0.58 and €0.44, respectively, as higher financial expenses offset topline growth.

• Expectation for continued strong data center leasing, targeting over 200 MW let or pre-let by FY26.

• Office and shopping center occupancy expected to remain stable; logistics may improve if key assets are leased.

• No change in share count assumed for 2026 guidance.

• Data center pipeline remains robust, with high visibility on delivery dates and strong pre-letting activity.