MERLIN Properties SOCIMI
Market Cap
€3.1b
Last Updated
2020/03/30 23:31 UTC
Data Sources
Company Financials +
Executive Summary
MERLIN Properties SOCIMI, S.A. (MC:MRL) is one of the largest real estate company trading on the Spanish Stock Exchange, with a market capitalization of approximately 6,200 million euros, specialized in the acquisition and management of commercial property in the Iberian region.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -8.7% per year for the next 3 years
Snowflake Analysis
Undervalued second-rate dividend payer.
Similar Companies
Share Price & News
How has MERLIN Properties SOCIMI's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MRL's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.4%
MRL
4.1%
ES REITs
6.6%
ES Market
1 Year Return
-42.6%
MRL
-14.0%
ES REITs
-26.3%
ES Market
Return vs Industry: MRL underperformed the Spanish REITs industry which returned -14% over the past year.
Return vs Market: MRL underperformed the Spanish Market which returned -26.3% over the past year.
Shareholder returns
| MRL | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | 4.1% | 6.6% |
| 30 Day | -42.2% | -22.6% | -21.9% |
| 90 Day | -47.4% | -23.9% | -28.0% |
| 1 Year | -40.6%-42.6% | -9.7%-14.0% | -23.7%-26.3% |
| 3 Year | -29.1%-35.8% | -2.0%-11.3% | -25.5%-32.6% |
| 5 Year | -22.9%-46.2% | -0.6%-23.4% | -28.5%-40.2% |
Price Volatility Vs. Market
How volatile is MERLIN Properties SOCIMI's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
Can We See Significant Institutional Ownership On The MERLIN Properties SOCIMI, S.A. (BME:MRL) Share Register?2 months ago | Simply Wall St
Are Insiders Buying MERLIN Properties SOCIMI, S.A. (BME:MRL) Stock?4 months ago | Simply Wall St
What Type Of Shareholder Owns MERLIN Properties SOCIMI, S.A.'s (BME:MRL)?Valuation
Is MERLIN Properties SOCIMI undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MRL (€6.73) is trading below our estimate of fair value (€13.9)
Significantly Below Fair Value: MRL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MRL is good value based on its PE Ratio (5.5x) compared to the REITs industry average (14.5x).
PE vs Market: MRL is good value based on its PE Ratio (5.5x) compared to the Spanish market (14.1x).
Price to Earnings Growth Ratio
PEG Ratio: MRL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MRL is good value based on its PB Ratio (0.5x) compared to the ES REITs industry average (1x).
Next Steps
Future Growth
How is MERLIN Properties SOCIMI forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-8.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRL's earnings are forecast to decline over the next 3 years (-8.7% per year).
Earnings vs Market: MRL's earnings are forecast to decline over the next 3 years (-8.7% per year).
High Growth Earnings: MRL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MRL's revenue (5% per year) is forecast to grow faster than the Spanish market (4.2% per year).
High Growth Revenue: MRL's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MRL's Return on Equity is forecast to be low in 3 years time (5.2%).
Next Steps
Past Performance
How has MERLIN Properties SOCIMI performed over the past 5 years?
31.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRL has a large one-off gain of €333.0M impacting its December 31 2019 financial results.
Growing Profit Margin: MRL's current net profit margins are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: MRL's earnings have grown significantly by 31.5% per year over the past 5 years.
Accelerating Growth: MRL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MRL had negative earnings growth (-34.1%) over the past year, making it difficult to compare to the REITs industry average (50.2%).
Return on Equity
High ROE: MRL's Return on Equity (8.4%) is considered low.
Next Steps
Financial Health
How is MERLIN Properties SOCIMI's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: MRL has a high level of physical assets or inventory.
Debt Coverage by Assets: MRL's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: MRL's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if MRL has a sufficient allowance for bad loans.
Low Risk Liabilities: MRL reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if MRL has an acceptable proportion of non-loan assets held.
Low Risk Deposits: MRL has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if MRL has an appropriate level of bad loans.
Next Steps
Dividend
What is MERLIN Properties SOCIMI's current dividend yield, its reliability and sustainability?
7.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRL's dividend (7.73%) is higher than the bottom 25% of dividend payers in the Spanish market (2.98%).
High Dividend: MRL's dividend (7.73%) is low compared to the top 25% of dividend payers in the Spanish market (8.22%).
Stability and Growth of Payments
Stable Dividend: MRL has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MRL's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.7%), MRL's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MRL's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average board tenure
CEO
Ismael Clemente Orrego (49yo)
no data
Tenure
€2,450,000
Compensation
Mr. Ismael Clemente Orrego serves as the Chief Executive Officer of Merlin Properties Socimi, S.A. Mr. Orrego is a Partner of MAGIC Real Estate responsible for the origination and structuring of real estat ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Vice-Chairman | no data | €2.45m | 0.25% €8.0m | |
| Corporate MD | 5.83yrs | €2.40m | 0.25% €7.8m | |
| Independent Director | 3.5yrs | €134.00k | 0.0026% €80.7k | |
| Non-Executive Independent Director | 4.58yrs | €100.00k | 0.021% €663.9k | |
| Non-Executive Independent Director | 5.75yrs | €129.00k | no data | |
| Independent Director | 5yrs | €117.00k | 0.010% €316.2k | |
| Non-Executive Independent Director | 5.75yrs | €129.00k | 0.0030% €94.8k | |
| Non-Executive Independent Director | 5.75yrs | €115.00k | 0.014% €442.5k | |
| Non-Executive Chairman of the Board | 3yrs | no data | 0.018% €569.2k | |
| Independent Director | 1.83yrs | €111.00k | 0.0030% €94.8k |
4.8yrs
Average Tenure
53.5yo
Average Age
Experienced Board: MRL's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MRL insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
MERLIN Properties SOCIMI, S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: MERLIN Properties SOCIMI, S.A.
- Ticker: MRL
- Exchange: BME
- Founded:
- Industry: Diversified REITs
- Sector: Real Estate
- Market Cap: €3.127b
- Shares outstanding: 464.69m
- Website: https://www.merlinproperties.com
Number of Employees
Location
- MERLIN Properties SOCIMI, S.A.
- Paseo de la Castellana, 257
- Madrid
- Madrid
- 28046
- Spain
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MRL | BME (Bolsas y Mercados Espanoles) | Yes | Common Shares | ES | EUR | Jun 2014 |
| MRLE | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Common Shares | GB | EUR | Jun 2014 |
| 0QVM | LSE (London Stock Exchange) | Yes | Common Shares | GB | EUR | Jun 2014 |
| MEQA | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jun 2014 |
| MRPR.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jun 2014 |
| MERL | WBAG (Wiener Boerse AG) | Yes | Common Shares | AT | EUR | Jun 2014 |
| MRL | ENXTLS (Euronext Lisbon) | Yes | Common Shares | PT | EUR | Jun 2014 |
Biography
MERLIN Properties SOCIMI, S.A. (MC:MRL) is one of the largest real estate company trading on the Spanish Stock Exchange, with a market capitalization of approximately 6,200 million euros, specialized in the acquisition and management of commercial property in the Iberian region. MERLIN Properties mainly invests in offices, shopping centers and logistics facilities, within the Core and Core Plus segments, forming part of the benchmark IBEX-35, Euro STOXX 600, FTSE EPRA/NAREIT Global Real Estate, GPR Global Index, GPR-250 Index, and MSCI Small Caps indices.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 23:31 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.