MRPRF - Merlin Properties: Reaching Fair Value Time To Move To The Sidelines
- Merlin Properties has fully recovered from the COVID-19 pandemic and collects almost all the rent it is owed.
- The H2 FFO will be 6-8% higher than in the first half of the year.
- Despite this, the REIT is still trading at in excess of 16X the FFO.
- The book value is about 60% higher than the current share price, but I'm not comfortable with the average capitalization rate of 4.4% used to determine the fair value.
- I'm on the sidelines. It's a good REIT, but I don't see much upside from here.
For further details see:
Merlin Properties: Reaching Fair Value, Time To Move To The Sidelines