MERLIN Properties: Solid Operationally, Data Centres On Track

Research evidence excerpt

MERLIN Properties: Solid Operationally, Data Centres On Track

Update

May 13, 2026 05:30 PM GMT

Morgan Stanley & Co. International plc+MMERLIN Properties | Europe Ana Escalante

Equity Analyst

Solid Operationally, Data Ana.Escalante@morganstanley.comBart Gysens, CFA +44 20 7425-3271

Bart.Gysens@morganstanley.com +44 20 7425-5862

Centres On Track Paula Bayer

Research Associate

Paula.Bayer@morganstanley.com +44 20 7425-3053

Reaction to earnings

MERLIN Properties (MRL.MC, MRL SQ)

Unchanged In-line Largely unchanged

Property | Spain

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Overweight

Source: Company data, Morgan Stanley Research Industry View Attractive

Price target €16.5

Shr price, close (May 13, 2026) €14.7

Merlin published 1Q26 results. We are Overweight. 52-Week Range €15.5-10.0

NAV per shr (12/26e) €16.4

EPS (12/26e)** €0.54

Key Takeaways EPRA EPS, dil (12/26e) €0.52

EPRA LTV (12/26e) (%) 29

Data centre pipeline progressing in line with management expectations. Net debt/EBITDA (12/26e) 8.1

Expects "substantial revaluation" of its data centre assets in 1H. ** = Based on consensus methodology

Solid operational results in its "traditional" asset classes.

Data centre development pipeline progressing as planned. Merlin expects the

fully let 64MW of IT capacity in phase 1 to be fully operational by 3Q26, while it

continued progressing with construction works and permit submissions for phases 2

and 3, in line with the CEO comments at the AGM two weeks ago. No further pre-

lets announced, but we note that Merlin wants to be deliberately measured in

signing data centre pre-lets to avoid penalties from potential delays (next data

centre deliveries not yet pre-let scheduled for end 2027).

Results highlights.