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Investing.com -- Merlin Properties stock gained 4% after the real estate company raised its 2025 funds from operations per share (FFOps) guidance and reported strong first-half results.
The Spanish commercial property owner increased its 2025 FFOps forecast by 3.7% to €0.56 from "around €0.54" previously. This comes as the company reported a 12.8% YoY increase in H1-25 FFO to €166.6 million, though FFO per share decreased 6% YoY to €0.30 due to the impact of last year’s capital increase.
Total (EPA:TTEF) revenues for the first half rose 8.5% YoY to €275.3 million, continuing the momentum seen in the first quarter when revenues grew 8.4%. Like-for-like gross rental income growth accelerated to 3.4% in H1-25, up from 2.7% in Q1-25 and 2.8% in H1-24.
The company’s portfolio value showed signs of recovery, increasing 3.2% compared to December 2024, following flat performance in the previous fiscal year. This improvement contributed to a 5% rise in EPRA Net Tangible Assets per share to €15.04 since December 2024.
Merlin’s data center expansion remains on track with 45.2 MW IT capacity leased across three locations, representing contracted passing rent of €66 million per year upon delivery. This is expected to generate approximately €31 million in gross rental income in 2025 and €62 million in 2026.
The company’s shopping center division performed particularly well, with tenant sales up 5.8% YoY and footfall improving by 2.4% YoY in the first half. Meanwhile, the company’s overall occupancy rate stood at 95.4% at the end of June, down 130 basis points quarter-over-quarter.
Merlin maintained a solid financial position with a loan-to-value ratio of 28.6% and liquidity of €1.65 billion at the end of June 2025.
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