Merlin Properties Socimi S.a Stock Earnings Reports

Key points for investors: MERLIN reported solid operational and financial performance for 9M25: like-for-like gross rents +3.4% (offices +3.8%, shopping centers +3.5%, logistics +1.7%), FFO per share +6.4% y/y, NTA per share +5.7% y/y and overall occupancy steady at 95.5%. Data centers remain the main growth engine: Phase 2 deployment is progressing on schedule (CapEx on track and likely to be exceeded), with active commercialization efforts and a target to pre‑commercialize at least 48 MW of Phase 2 capacity by end‑April (20 MW already in advanced documentation). MERLIN remains exposed to EU Gigafactory program timing and political risk: the EU firm‑up submission has been delayed (~4 months so far) which reduces the timing advantage of EU support; the company is therefore proactively seeking direct commercial commitments independent of the EU program. Project risks include duplicate environmental assessments delaying two Madrid sites (Getafe and Tres Cantos) potentially shifting some cashflows from 2029 to 2030, and somewhat higher financial costs this period due to early bond issuance and excess cash waiting for planned bond timing. Management will provide a detailed Phase 3 scope and funding plan in the February full‑year 2025 results (including consideration of third‑party partners for very large projects such as Navalmoral).