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Spanish real estate company Merlin Properties reported an 11.4% year-on-year rise in its core profit for the first quarter, supported by strong occupancy across its office, retail and logistics portfolio. The company posted EBITDA of EUR 113.6 million, compared to EUR 102 million in the same period last year. While occupancy dipped slightly to 95%, it remained stable at high levels. Merlin also continued to expand its data centre business, which currently contributes a small share of rental income but is expected to become a major revenue driver by 2030.
Spanish real estate group Merlin Properties reported improved first-quarter earnings during the past week as high occupancy levels across its core property businesses continued to support rental income growth. Advertisement
The company posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 113.6 million in the quarter, marking an increase of 11.4% from EUR 102 million recorded in the corresponding period last year.
Office leasing remained the company’s largest source of revenue during the quarter, followed by shopping centres and logistics assets. Merlin has traditionally maintained a strong commercial real estate portfolio across Spain and Portugal, with offices continuing to form a major part of its recurring rental income.
Occupancy across the portfolio stood at 95%, slightly lower by 0.6 percentage points compared to the end of 2025. Despite the marginal decline, the company said occupancy levels remained stable and continued to reflect healthy demand across its assets.
The company’s data centre business, which has emerged as a key growth segment in recent years, contributed around 9% of gross rents during the quarter. Merlin expects that share to increase significantly over the coming years, with data centres projected to account for nearly half of its total revenue by 2030.
Investment bank JPMorgan Chase said in a note that Merlin’s traditional businesses continued to perform steadily, while development activity in its data centre segment was progressing well operationally.
The company has been increasing its focus on digital infrastructure amid rising demand for cloud services, artificial intelligence workloads and data storage capacity across Europe. Several European property companies have been gradually shifting towards data centre investments due to their long-term rental potential and growing institutional interest.
Merlin also said it expects a substantial revaluation of its data centre assets in the first half of 2026, which could further strengthen the value of its portfolio going forward.
Source Reuters
5th Jun, 2025
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