MERLIN Properties Annual Report 2017 / English

ı 96 ı ALTERNATIVE MEASURES OF PERFORMANCE In accordance with the recommendations issued by the European Securities and Markets Authority (ESMA), the alternative measures of performance are described as follows. Glossary Average debt maturity (years) It represents the average debt duration of the Company until maturity. Average Passing Rent It represents the rent for sqm/month to which an asset or category of assets is rented as of 31 December. EBITDA Earnings before net revaluations, amortizations, provisions, interest and taxes. EPRA costs Recurring running costs of the Company divided by recurring rents. EPRA Earnings (€ thousand) Recurring earnings from core operational activities. EPRA NAV (€ thousand) EPRA Net Asset Value (EPRA NAV) is calculated based on the consolidated shareholders’ equity of the Group adjusted to include properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a longterm investment property business model, as per EPRA’s recommendations. EPRA NNNAV (€ thousand) EPRA NAV adjusted to include the fair value of financial instruments, debt and deferred taxes. EPRA Net Initial Yield Annualised rental income based on the cash passing rents at the balance sheet date, less nonrecoverable property operating expenses, divided by the market value of the property, increased with acquisition costs. EPRA “topped-up” NIY Adjustment to the EPRA Net Initial Yield in respect of the expiration of rentfree periods (or other unexpired lease incentives such as discounted rent periods and step rents). EPRA Vacancy Rate Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio. FFO Recurring result of the Company calculated as EBITDA less debt interest expenses of the period. GAV Value of the commercial portfolio in accordance with the latest external valuation available as of 31 December 2017 plus advanced payments for turn-key projects and developments. Gross annualized rents Passing rent as of 31 December multiplied by 12. Gross yield It represents the gross yield of an asset or category of assets. It is calculated by dividing the annualized gross rent between the latest available GAV. Recurring EBITDA EBITDA less non-recurring general expenses of the Company. Recurring FFO FFO less non-recurring general expenses of the Company. Release Spread Difference between the new rent signed and the old prevailing rent on renewals (same space, same tenant) or relets (same space, different tenant) during the period of analysis Rents Like-for-Like Difference between the rents received in the period of analysis and the rents received on the similar period one year before for the same perimeter of assets WAULT Weighted average unexpired lease term, calculated as the number of years of unexpired lease term, as from 31 December 2017, until the lease contract expiration, weighted by the gross rent of each individual lease contract.