IBERIAN DAILY 17 JULY + 2Q’24 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACCIONA, ACCIONA ENERGÍA, ACS, MERLIN PROPERTIES, NEINOR HOMES, TALGO.At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 2Q’24 results to be released over the coming days in Spain.
Second straight session in the red
European stock markets fell once again, whereas in the US the market continues to move rate cut forecasts forward. In the STOXX 600, the best-performing sectors were Construction and Travel & Leisure, whereas Basic Materials and Consumer Goods (for the second straight day) suffered the biggest losses. On the macro side, in Germany July’s ZEW index fell less than expected. In Spain, the Govt. raised its 2024-25 GDP growth forecast to 2.4% and 2.2% (vs. the previous 2.05% and 1.9%) and raised the spending ceiling excl. regional funds for 2025 by +3.2% (3.3% and 3.4% for 2026-27) in order to offset the lower transfers of European funds, which would leave the deficit at -2.5% vs. -3.0% expected for 2024 (-2.1% and -1.8% for 2026-27). In the US, June’s retail sales came in much better than expected, with growth excluding the most volatile components especially standing out. By contrast, the NAHB residential real estate sector confidence for July fell unexpectedly. On another note, Donald Trump warned that he will ask allies to toughen restrictions on microchip exports to China, while supporting Powell continuing as Fed Chair. In US business results, Bank of America, State Street and Morgan Stanley beat expectations.
What we expect for today
Stock markets would open with slight drops, with all eyes on results and on the ECB meeting to be held tomorrow. Currently, S&P futures are down -0.22% (the S&P 500 ended +0.32% higher vs. the European closing bell). Asian stock markets are falling (China’s CSI 300 -0.13%, Japan’s Nikkei -0.44%).
Today in the UK we will learn June’s inflation, in the euro zone June’s final inflation and in the US June’s industrial output, building permits and housing starts. In US business results, US Bancorp, Alcoa and Prologis, among others, will release their earnings.
COMPANY NEWS
MERLIN PROPERTIES, OVERWEIGHT
According to the press, MRL has called for a Board meeting to approve a € 1 Bn capital increase with preemptive rights in order to fund the expansion of the datacentre business. The amount mentioned is equivalent to 20% of the company’s market cap and 14% of NTA’23 (adjusted for the dividend paid out in 2Q’24). According to the same sources, the deal would have the support of the main shareholders, among them Santander (22%), and it would be carried out in the parent company and not a specific vehicle. MRL has been working on this deal since the second half of last year, and thus the news, if confirmed, would not be a surprise. We think the capital increase could generate value for shareholders, as the datacentre segment in Spain, where MRL began to focus more than three years ago, is in an explosive growth stage, offers very interesting returns and is destined to offset the more limited growth in office and shopping centre rents (where occupancy is already very high and potential price growth is low). We also welcome the main shareholders supporting the deal.
Acciona is the parent company of a construction group. Co. is engaged in general construction activities in the areas of civil engineering and buildings, including railways, marine and hydraulic works, motorways and airports, town planning, conduits, pavements, parking lots, and industrial and urban buildings. In addition, Co. is engaged in the provision of real estate services, the operation of parking lots, telecommunications, services, ecology and alternative means of energy. Co.'s operations are organized in six business divisions: Infrastructures, Real Estate, Energy, Water, Environmental & Urban Services and Logistic & Transport Services.
ACS Actividades de Construccion y Servicios is a holding company. Through its subsidiaries, Co.'s activities are divided into the following areas: Construction, engaged in the construction of civil works, and residential and non-residential building construction; industrial services, engaged in the development of applied engineering services, installations and the maintenance of industrial infrastructures in the energy, communications and control systems sectors; services, groups together environmental services, the outsourcing of building maintenance services, logistics and transport services; and concessions, mainly engaged in transport infrastructure concessions.
Merlin Properties SOCIMI SA is a Spain-based company engaged in the operation of a real estate investment trust (REIT). The Company focuses on the acquisition, management and rental of commercial properties located in the Iberian Peninsula, primarily in Spain. The Company's activities are divided into the following segments: Office buildings, operating a portfolio of office space; High-street retail, engaged in leasing retail stores; Shopping centers, engaged in managing department stores; Logistics, operating logistics warehouses and distribution centers, and Others. The Company's other activities include property management services rendered to third parties.
Neinor Homes SA, formerly Neinor Homes SLU, is a Spain-based company engaged in the real estate sector. The Company focuses on the design, construction and promotion of residential properties. It develops housing projects in various Spanish cities, such as Malaga, Madrid, Barcelona, Cordoba, Vizcaya, Alicante, Almeria and Gerona.
Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.