This article first appeared on GuruFocus .
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Gross Rents Like-for-Like Growth:+3.4%
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FFO Per Share Growth:+6.4% year on year
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NTA Per Share Growth:+5.7% year on year
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Total Shareholder Return (TSR):+8.4% for the period
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Occupancy Rate:95.5%, stable overall
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Office Like-for-Like Growth:+3.8% year on year
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Logistics Like-for-Like Growth:+1.7% year on year
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Shopping Centers Like-for-Like Growth:+3.5% year on year
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Office Release Spread:0.2% (5.0% excluding specific deal)
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Logistics Release Spread:5.7%
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Shopping Centers Lease Spread:4.2%
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Transaction Volume:Over 700,000 square meters in the first nine months
Release Date: November 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Merlin Properties SOCIMI SA ( MRPRF ) reported a 3.4% increase in gross rents like-for-like, indicating strong performance in traditional asset classes.
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The company's Funds From Operations (FFO) increased by 6.4% year-on-year, despite higher financial expenses.
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Occupancy rates remain high and stable at 95.5%, showcasing the company's ability to maintain tenant retention.
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The MEGA Plan for Data Centers is progressing successfully, with significant pre-commercialization efforts underway.
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Merlin Properties SOCIMI SA ( MRPRF ) achieved a 5.7% increase in Net Tangible Assets (NTA) per share year-on-year, contributing to a theoretical Total Shareholder Return (TSR) of 8.4% for the period.
Negative Points
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The European Union's Gigafactory program has experienced delays, impacting the competitive advantage of Merlin Properties SOCIMI SA ( MRPRF ) in Phase III execution.
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Higher financial costs due to early bond issuance have eroded part of the company's margins.
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Logistics occupancy has decreased by 200 basis points, affecting the like-for-like growth in this segment.
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The requirement for double environmental assessments in Madrid projects has caused potential delays of six months to a year.
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The European Union program restricts commercialization to European names, narrowing the scope of potential clients for the company's data centers.
Q & A Highlights
Q: Can you clarify the comments on Phase III being delayed for four months and the strategy going forward? Are you going to try and pre-lease those 180 megawatts in the upsizing pipeline? A: The delay is due to the European Union Gigafactory program, which has been complicated and stressful. We are considering lifting the restriction on European Union commercialization to achieve the same results with less stress. We are not delayed in CapEx execution and are on track. However, we are facing delays in two Madrid projects due to double environmental assessments, which could push the cash flows of Phase II from 2029 to 2030. We are preparing for Phase III, which will overlap with the tail end of Phase II, and will communicate the scope in the February conference call.
Q: Are there any more environmental reviews for the other data centers under construction in Phase II? A: In Phase II, we are clear on all environmental studies, including Arasur building number 1. We are clear in Portugal and the Basque Country. The only pending assessments are in Getafe and Tres Cantos, where we need to conduct a second environmental assessment due to legislative requirements. We are advancing administrative red tape for Phase III to anticipate potential delays.
Q: If successful in the EU Gigafactory submission, how would the partnership work, and what would the EU contribute? A: We have chosen the offtaking modality, where 35% of the offtaking is guaranteed by the EU and local governments. For the 180 megawatts, 60 megawatts will be offtaken by the EU and local governments, and the rest will be commercialized with our clients. We are working on back-to-back agreements with clients irrespective of the EU outcome, aiming for 48 megawatts committed by April.
Q: What are your thoughts on the US investing heavily in data centers and AI, and should Europe follow suit? A: The US and Europe are different. In Spain, there is limited data center construction, but interest from significant accounts is growing. We are securing power for future projects to meet demand. Spain and Portugal have excess generation capacity, which is advantageous. We are preparing for Phase III and will present a funding plan in February, potentially involving external partners for large projects.
Q: Why should the European Union select an operator in Spain and Portugal for the program? A: The EU appreciates combined projects with more capacity and connectivity. Spain and Portugal have a unique grid system, which is advantageous. Our proposal offers a powerful option with more capacity and companies that could use our facilities. The EU aims to incentivize capacity and offer services to various entities within Europe.
Q: Do you have a cutoff date for moving on from the EU project and consortium? A: We haven't made a final decision, but we might wait until April. If delays continue or more administrative hurdles arise, we may pull out. We are committed to the country and believe the project could push the AI ecosystem in Spain and Portugal. However, delays reduce the program's attractiveness.
Q: Will you discuss the financing plan for Phase III in February? A: Yes, we will present the definition and scope of Phase III along with the funding plan. Phase III might include significant projects like Navalmoral de la Mata, which may require a separate analysis for funding. We may consider taking a partner for this project to bring additional value.
Q: When do you expect more competitive products in the data center market, and how could that impact Phase III? A: We don't expect significant competition before 2030. Currently, there is limited construction activity in Spain and Europe. Our Phase III will likely be commercialized on a clear market basis, with ready-for-service dates starting in 2028. The competitive landscape in Europe is challenging due to power availability and regulatory complexities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
