MERLIN Properties Annual Report 2017 / English

ı 13 ı Annual Report 2017 Strategy MERLIN Properties Socimi, S.A. (“MERLIN”, “MERLIN Properties” or the “Company”) is a company devoted to delivering sustainable return to shareholders through the acquisition, active management and selective rotation of high quality commercial real estate assets in the “Core” and “Core plus” segments. Breadth of prime space Madrid, Barcelona and Lisbon Office 40 % Urban or Dominant National scale Shopping Centers 20 % Core & Core Plus Spain & Portugal Investment grade capital structure Dividend policy: 80% of AFFO One of the world’s most cost efficient REIT’s Best governance practices National footprint “One-stop shop” solution for 3PL Logistics 20 % High triple net cash flow Inflation multiplier High Street Retail 20 % ORGANIZATION AND STRUCTURE