Merlin Properties Earnings: Concerns Around Data Center Business Overblown; Shares Attractive
Merlin Properties reported a strong set of 2026 third-quarter results and raised guidance for funds from operations once more, to EUR 0.58 per share.
Merlin Properties SOCIMI SA MRL
Bulls Say, Bears Say
Bulls
Merlin boasts the largest data center development pipeline in Iberia, and the addressable customer base has broadened materially thanks to AI.
Bears
Data center execution risk is substantial and capital-intensive. Slippage in permitting, grid connection, or customer demand could impair yield-on-cost assumptions.
Trading Information
- Previous Close Price
- €11.78
- Day Range
- €11.70–11.94
- 52-Week Range
- €11.13–15.92
- Bid/Ask
- €11.62 / €11.95
- Shares Outstanding
- 619.18M
- Market Cap
- €7.24B
- Volume/Avg
- 5M / 1M
Key Statistics
- Price/Earnings (Normalized)
- 9.45
- Price/Sales
- 12.14
- Dividend Yield (Trailing)
- 1.84%
- Dividend Yield (Forward)
- 3.42%
- Dividend Payment Schedule
- May, Dec
- Total Yield
- 1.84%
Company Profile
Merlin Properties is Spain’s largest listed SOCIMI/REIT, managing a EUR 12.6 billion portfolio across offices, logistics, shopping centers, and data centers. Over the coming years, it will bring at least 730 megawatts of data center capacity online, increasing its gross rental income contribution from just 6% in 2025 to 65% by 2032. Its total GRI will more than triple to EUR 1.8 billion, driven by its Mega Plan. Additionally, it has a pipeline of 4.4 GW worth of land at varying stages of readiness that it can develop.
- Sector
- Real Estate
- Industry
- REIT - Office
- Stock Style Box
- Mid Core
- Total Number of Employees
- 296
Competitors
Valuation
Metric | MRL | DLR | EQIX |
|---|---|---|---|
Price/Earnings (Normalized) | 9.45 | 75.40 | 47.02 |
Price/Book Value | 0.77 | 2.51 | 7.30 |
Price/Sales | 12.14 | 9.35 | 10.54 |
Price/Cash Flow | 21.32 | 22.02 | 23.57 |
Price/Earnings
MRL
DLR
EQIX
Financial Strength
Metric | MRL | DLR | EQIX |
|---|---|---|---|
Quick Ratio | 1.01 | 0.43 | 1.08 |
Current Ratio | 1.06 | 0.43 | 1.29 |
Interest Coverage | 7.04 | 3.21 | 3.78 |
Quick Ratio
MRL
DLR
EQIX
Profitability
Metric | MRL | DLR | EQIX |
|---|---|---|---|
Return on Assets (Normalized) | 5.88% | 2.39% | 5.51% |
Return on Equity (Normalized) | 10.04% | 5.09% | 15.76% |
Return on Invested Capital (Normalized) | 7.08% | 3.53% | 7.02% |
Return on Assets
MRL
DLR
EQIX
REIT - Office Industry Comparables
1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| BXP Inc BXP | LOCK|rfrbG^ | LOCK|w^@ | $10B | |||
| Merlin Properties SOCIMI SA ADR MPTYY | — | LOCK|w^N | $8B | |||
| Merlin Properties SOCIMI SA MRPRF | — | LOCK|qN% | $8B | |||
| Alexandria Real Estate Equities Inc ARE | LOCK|?fkT&w% | LOCK|Wx< | $8B | |||
| Nippon Building Fund Inc NBFJF | — | LOCK|?#ml | $7B | |||
| Vornado Realty Trust VNO | LOCK|wS^CXT | LOCK|@pZ | $6B | |||
| Gecina Nom GECFF | — | LOCK|@Y^ | $5B | |||
| Cousins Properties Inc CUZ | — | LOCK|LQ | $5B | |||
| Kilroy Realty Corp KRC | LOCK|!lG^Nr^ | LOCK|?j | $4B | |||
| SL Green Realty Corp SLG | LOCK|>j>$^s^ | LOCK|!Vp | $3B |
United States