Company Reports

Merlin Properties is aggressively scaling its data center portfolio to be the primary revenue driver; data centers are forecast to account for 65% of gross rental income by 2032. This strategy leverages Iberia’s relative advantages over legacy European hubs: land and energy abundance and subsea cable connectivity. Meanwhile, the group maintains its position in traditional asset classes (offices, logistics, and shopping centers).

Merlin Properties reported a good set of first-half results that broadly met or exceeded company-compiled consensus expectations. Funds from operations guidance was raised for the year, and the timeline for data center pipeline deliveries was accelerated. Overall, it was a very reassuring release.

Merlin Properties is aggressively scaling its data center portfolio to be the primary revenue driver; data centers are forecast to account for 65% of gross rental income by 2032. This strategy leverages Iberia’s relative advantages over legacy European hubs: land and energy abundance and subsea cable connectivity. Meanwhile, the group maintains its position in traditional asset classes (offices, logistics, and shopping centers).

We’re initiating coverage of Merlin Properties, the Spanish office, logistics, shopping, and data center REIT.

Merlin Properties is aggressively scaling its data center portfolio, making it the group's primary revenue driver, with data centers forecast to account for 65% of gross rental income by 2032. This strategy leverages Iberia’s relative advantages over legacy FLAP-D European hubs: land and energy abundance and subsea cable connectivity. While doing so, it maintains its position in traditional asset classes (offices, logistics, and shopping centers).