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Merlin leads the rises of the Ibex despite the cut of JP Morgan


Merlin Properties This Thursday the Ibex company has risen the most, with increases of over 7%. However, he has received negative news, which is that JP Morgan has cut its target price to 9.50 euros from the previous 11 euros, while reiterating his advice to 'overweight'. The socimi is currently trading at levels of 8.25 euros.

Merlin Properties announced earlier this month that suspends the payment of the complementary dividend, for which it planned to distribute a total of 0.32 euros per share, due to the impact of the coronavirus. It also communicated the board's decision to reduce the remuneration of its directors by 25%.

In addition, the CEO of the company, Ismael Clemente, and the other members of its senior management have agreed not to collect the variable remuneration or 'bonus' that would correspond to them in 2020.

Likewise, Merlin, which has Santander Bank as its first partner, has analyzed the investment plan it is currently undertaking to improve its portfolio of offices and shopping centers and build new logistics warehouses and has decided "temporarily to limit its execution" to the projects it already has underway and whose rent is compromised, given its "ability to generate income in the short and medium term". The rest will be deferred.

Specifically, the socimi details that the set of actions in execution and generating short-term income, that is, those that will continue to run, require a total investment of 247.7 million for the next four years, of which 167, 4 million are expected to be disbursed in 2020.


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