Merlin Properties: Positive DC revaluation comes through and more to come: 1H26 First Take

Research evidence excerpt

Merlin Properties: Positive DC revaluation comes through and more to come: 1H26 First Take

J P M O R G A N Europe Equity Research

28 July 2026

Merlin Properties Overweight

MRL.MC, MRL SM

Positive DC revaluation comes through and more to Price (27 Jul 26):€15.38

come: 1H26 First Take Price Target (Dec-27):€19.00

Our Take: A good update overall with continued operational progress across European Property

ACbusiness lines. Datacentres will take the headlines though, with Merlin recording Neil Green, CFA

a €372m revaluation uplift in the period, mostly from DCs – the ‘substantial (44-20) 7134-4478

revaluation from DCs expected in 1H26’ – that was flagged on the 1Q26 call. This neil.d.green@jpmorgan.com

took EPRA NTA to €15.99, a touch ahead of the company's compiled consensus J.P. Morgan Securities plc

at €15.85. Furthermore, MRL added that they are now on track to ‘far exceed’ FY26 Krishna Sathwik Beechu

IT leasing guidance of 200MW and added FY26 FFO guidance of €0.55 per share (91-22) 6157 5847

krishna.s.beechu@jpmchase.com

- broadly where market expectations were. We see this update as endorsing the J.P. Morgan India Private Limited

investment case for Merlin shares and remain positive.

• Noteworthy Areas: (*) Like-for-like rental growth reached +3.3%, driven

primarily by shopping centres (+6.4%), which benefited from strong leasing

momentum and positive rental reversion. Offices delivered +2.4% LfL growth,

supported by resilient demand across core markets, while logistics grew

+1.2%, reflecting a more moderate leasing environment. (*) Portfolio

occupancy moderated to 94.7% at June-end (vs. 95.6% at FY25), with declines

in offices (93.6%, -60bps) and logistics (95.0%, -140bps) outweighing stable

retail performance. Shopping centres remained highly occupied at 96.9%