Merlin Properties: Socialist Attack On SOCIMIs Parried In Spain
Source: SeekingAlpha
2025-01-23 09:41:05 ET
Summary
- Merlin Properties' data center investments poise the company for significant new rent streams in an attractive market.
- The office segment is doing quite well and is not a significant liability for Merlin at this point.
- The big news since we last covered the stock was the risk that the SOCIMI designation would be eliminated from Spanish law, effectively eliminating REITs in Spain.
- Spain has a record of being somewhat shareholder-unfriendly, and it has not helped that the current government is socialist and will be until 2027.
- Merlin's valuation at 20x P/FFO is fair but high, reflecting safer office real estate, lower capital costs in Europe, and promising data center investments, but the SOCIMI saga is concerning.
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Merlin Properties: Socialist Attack On SOCIMIs Parried In Spain
Merlin Properties Socimi SA
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