MERLIN Raises 2026 FFO Guidance as Worst-Case Scenario Cuts Mega Plan to 704 MW

MERLIN Properties raised its 2026 funds from operations (FFO) guidance to €0.58 per share from €0.55, while a modeled worst case tied to Spain’s proposed Royal Decree would reduce its Mega Plan to 704 megawatts.

FFO increased 11.9%. Like-for-like growth across offices, shopping centers and logistics was 3.4%, and overall occupancy was 95%.

In the modeled scenario, the Mega Plan would decline from 724 MW to 704 MW. The case includes €863 million in battery energy storage system capex, of which €553 million was described as a sunk cost. Yield on cost would be 7% lower in that scenario.

Management also said a new financing platform removes refinancing risk for the next three years.