Publicação
Equity research - Merlin Properties Socimi, S.A.
| Resumo: | The purpose of this report is to estimate an investment recommendation for the Real Estate Company Merlin Properties SOCIMI, S.A. for the end of 2021, following the standards and recommendations of the CFA Institute. This report only considers public information up to August 25th, 2021. Thus, the report does not assume any events or circumstances that have occurred after that date. The choice to carry out this work with Merlin Properties SOCIMI, S.A. was born in Erasmus+ at Bocconi University in Milan, where I had the opportunity to take Real Estate in Finance course. Merlin Properties SOCIMI SA is the market-leading SOCIMI listed on the Spanish IBEX 35 index. Founded in 2014, it has a diversified portfolio of assets in the Iberian Peninsula, consisting mainly of investments in office’s, logistics’ and shopping center segments. Additionally, my interest in this Company was intensified by the fact that, over the past few years, it has expanded the exposure of its Portfolio to Portugal, including buildings such as Monumental, Logistics complex in Vila Franca de Xira or Almada Fórum. The portfolio composed of 11 assets currently represents 9% of its Gross Asset Value and EUR 36 million of its Gross Rental Income in the Lisbon metropolitan area. The valuation model chosen was the Dividend Discounted Model. This choice was motivated by the fact that the recurrent distribution of results is part of the company's strategic pillars. The SOCIMI regime requires the recurrent distribution of earnings to be part of this special taxation regime. Additionally, a Discounted Cash Flow Model was also carried out using the Cash Flow to the Equity and a Relative Valuation, taking into account the choice of a group of peers’ companies. In the end, a BUY recommendation with a target price of € 11.59 was obtained, representing an increase of 21.10% compared to the share price on August 25th, 2021 with a medium risk level, motivated by the uncertainty of the pandemic in the future and the impact of remote working in the office segment. |
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| Autores principais: | Fonseca, Ruben Daniel Neves da |
| Assunto: | Equity Research Valuation Merlin Properties Real Estate REIT Avaliação de Empresas Imobiliário |
| Ano: | 2021 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | The purpose of this report is to estimate an investment recommendation for the Real Estate Company Merlin Properties SOCIMI, S.A. for the end of 2021, following the standards and recommendations of the CFA Institute. This report only considers public information up to August 25th, 2021. Thus, the report does not assume any events or circumstances that have occurred after that date. The choice to carry out this work with Merlin Properties SOCIMI, S.A. was born in Erasmus+ at Bocconi University in Milan, where I had the opportunity to take Real Estate in Finance course. Merlin Properties SOCIMI SA is the market-leading SOCIMI listed on the Spanish IBEX 35 index. Founded in 2014, it has a diversified portfolio of assets in the Iberian Peninsula, consisting mainly of investments in office’s, logistics’ and shopping center segments. Additionally, my interest in this Company was intensified by the fact that, over the past few years, it has expanded the exposure of its Portfolio to Portugal, including buildings such as Monumental, Logistics complex in Vila Franca de Xira or Almada Fórum. The portfolio composed of 11 assets currently represents 9% of its Gross Asset Value and EUR 36 million of its Gross Rental Income in the Lisbon metropolitan area. The valuation model chosen was the Dividend Discounted Model. This choice was motivated by the fact that the recurrent distribution of results is part of the company's strategic pillars. The SOCIMI regime requires the recurrent distribution of earnings to be part of this special taxation regime. Additionally, a Discounted Cash Flow Model was also carried out using the Cash Flow to the Equity and a Relative Valuation, taking into account the choice of a group of peers’ companies. In the end, a BUY recommendation with a target price of € 11.59 was obtained, representing an increase of 21.10% compared to the share price on August 25th, 2021 with a medium risk level, motivated by the uncertainty of the pandemic in the future and the impact of remote working in the office segment. |
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