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