Merlin Properties has closed the 2024 financial year with a net profit of 283.8 million euros, an increase of 6.2% compared to the previous year. The company recorded total revenues of €516.7 million, of which €500.4 million was from gross rents. EBITDA reached 379.2 million euros, up 3.3% on 2023, while operating profit (FFO) was 310.8 million euros, up 9.4% on the previous year.
Operating performance was positive in all business areas, with a 3.4% growth in Like-for-Like rents and a positive release spread in all asset classes. The revaluation of data centres (+16.9% vs. 2023) offset the slight downward adjustment in other asset classes due to the evolution of yields.
Gross asset value (GAV) remained at EUR 11,540 million, while net asset value (EPRA NTA) amounted to EUR 8,071 million, equivalent to EUR 14.32 per share. This figure already reflects the impact of the capital increase and the distribution of a dividend of EUR 0.18 in the second half.
The company has reduced its debt level to 28.3% (compared to 35% in 2023) and has liquidity of EUR 2,364 million. Both S&P (BBB+) and Moody's (Baa1) have upgraded the socimi's rating, highlighting its low level of debt and its cash flow generation profile.
Business performance
In offices, Merlin recorded a 3.9% growth in comparable revenues and a 2.3% increase in rental renewals. Occupancy reached 93.7%, a record high, with Madrid benefiting from a reduction in supply due to building conversions to residential and hotel use.
In logistics, the company increased comparable rents by 2.8% and rental renewals by 1.4%, with occupancy at 99.4%, setting an all-time record. During 2024, Merlin has signed several turnkey projects, including three warehouses in Lisbon Logistics Park with 134,695 sqm, an 18,133 sqm warehouse in Cabanillas Park II for Total and a 2,477 sqm warehouse in Sevilla ZAL for XPO. Of the 511,000 sqm of land in the development pipeline, 155,000 sqm are already pre-leased and 77,000 sqm have signed letters of interest.
In shopping centres, the company recorded 2.7% growth in comparable revenues and 3.3% growth in rental renewals. The vacancy rate remains at historic lows (11.2%), while inflows have increased by 2.5% and sales by 5.5% compared to 2023. Occupancy reached 96.5%, the highest level ever recorded.
Growth in data centres and forecast for 2025
As part of its MEGA plan, the socimi has made progress in Phase I (64 MW), with three data centres (MAD01-GET, BCN01-PLZF and BIO03-ARA) that already have 26 MW equipped and ready to operate, of which 21.2 MW are leased. In Phase II (203 MW), the company has obtained licences for LIS01-VFX and BIO02-ARA and has started construction work. In addition, it has reached an agreement with the government of Extremadura to develop two artificial intelligence campuses with a capacity of 1 GW each in Navalmoral de la Mata and Valdecaballeros. It has also acquired land in Tres Cantos (Madrid) for the construction of a 30 MW data centre, with the possibility of expansion up to 160 MW.
Looking ahead to 2025, Merlin estimates an FFO of approximately €0.54 per share, with a dividend similar to that of 2024, set at €0.40 per share.
