MERLIN is transforming from Iberia’s top commercial REIT into an AI-ready digital infrastructure landlord—powered by scarce grid access and a multi-phase data center buildout.
Overview
MERLIN Properties is the leading listed real estate platform in Iberia and an IBEX-35 constituent, operating under Spain’s SOCIMI REIT regime focused on acquiring, actively managing, and selectively rotating prime commercial assets across Spain and Portugal. By FY2025 it managed a diversified portfolio with GAV of ~€12.63bn spanning offices, logistics, shopping centers, and a fast-scaling data center division. The company’s cash flows are predominantly rent-based and backed by long-term leases with high-quality tenants; 2025 operational strength included ~95.4% occupancy and positive release spreads, demonstrating pricing power in an inflationary backdrop. Financially, 2025 was a standout year: total revenue ~€565m, EBITDA ~€416m (+9.7% YoY), FFO ~€327m (€0.58/share), and NAV per share of €15.36 (+7.3%). A key highlight was a ~€359m revaluation uplift in the data center portfolio, signaling market validation of the MEGA plan. With conservative leverage (LTV 28.9%), ~€2.0bn liquidity, and 100% fixed-rate debt (no maturities until late 2026), MERLIN enters the next expansion phase with unusual balance-sheet protection. Strategically, the company is transitioning from a traditional diversified REIT toward becoming critical AI-ready infrastructure in Southern Europe, with Phase III aiming to materially expand capacity and support a multi-year step-change in revenue and valuation profile.