Merlín Properties shares on the stock market: promising prospects for 2024 after a positive year.
Merlin Nepertiz completed 2023 with positive results, showing growth in key financial and operational indicators. Gross revenue increased by 5.0% to €475.6 million and EBITDA registered an increase of 9.7% to €367.0 million. Operating profit (“FFO”) also increased 9.6% excluding Pro Forma. Tree, reaching 284.2 million euros.
Despite a 3.4% decline in gross asset value, Merlin Properties was able to mitigate the valuation decline thanks to strong operating results. The company has maintained a balanced financial structure with low leverage of 35% LTV and an average maturity of 5.1 years.
By segment, significant increases in comparable rents were observed in offices and logistics, as well as significant increases in occupancy in shopping centers and data centers. Tenant sales at malls even exceeded pre-Covid levels, up 14%.
In terms of investment and divestment activities, Merlin Properties had moderate investment activity in 2023 and sold non-strategic assets worth €38.3 million.
In terms of sustainability, the company has improved its performance in sustainability ratings and has been included in the Dow Jones World Sustainability Index.
Occupancy levels are expected to continue through 2024 and rents will continue to rise due to inflation. However, data centers are expected to make a negative contribution to net cash flow at the end of the year. The estimated 2024 operating profit (FFO) is 59 euro cents per share.
Merlin Properties is in a strong position to look to the future, supported by its strong performance and focus on sustainability and operational excellence.
Technical analysis.
Merlin shares have been on an upward trend, although they have been correcting since late December last year.
This correction is forming in a bearish channel, yesterday it left support at 8.76 euros (levels where the long-term weighted average passes) and is trying to rebound. However, until it exceeds €9.24 again, we will not be able to complete the correction phase.
I would remain value neutral until I see improvement from the day’s close at €9.24.