An Introduction To Spain's Number 1 REIT: Merlin Properties

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About: MERLIN Properties SOCIMI, S.A. (MRPRF), Includes: SYRVF, SYRVY
by: Investment Works
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Summary

Merlin Properties, Spain's largest REIT, boasts a robust, diversified, commercial real estate portfolio of high-quality assets.

At €12/share, the stock trades at an 11% discount to NAV and a 4.8% AFFO yield, offering relatively good value.

The stock offers investors the opportunity to diversify into REITs, which are less vulnerable to broader market swings and into a growing European market.

We forecast at least 7% in annual returns, with further upside potential, absent any major macroeconomic setbacks.

Our return estimate assumes dividend yield of 3.8%, rent increases of 2%, and AFFO growth of 1.2% from reinvestment.

Today, we present our analysis of Merlin Properties (MRPRF, MRL.MC) - Spain's largest REIT by net asset value and market capitalization, at about €6 billion.

This first freely-available comprehensive research piece on Merlin Properties