MERLIN Properties Annual Report 2018 / English

ı 48 ı € million Investment property 11,740.5 Derivatives (in non-current financial assets) 123.1 Equity method 169.1 Non-current assets 0.9 Total balance sheet items 12.033.6 IFRS-16 (concessions) (24.3) Equity method adjustment 31.5 Non-current assets adjustment 0.3 Total valuation 12,041.1 € Thousand Long term Short term Total Financial debt 5,213,946 37,911 5,251,857 Loan arrangement costs (95,745) (53) (95,799) Debt interest expenses - 37,829 37,829 Mark-to-market of interest-rate hedging contracts 39,807 1,123 40,930 Other financial liabilities (i.e. legal deposits) 113,297 6,174 119,471 Total debt 5,271,305 82,983 5,354,288 NOTES TO THE CONSOLIDATED BALANCE SHEET FINANCIAL DEBT BREAKDOWN Fair value of the portfolio corresponds to the appraisal value delivered by CBRE and Savills as of 31 December 2018, It is important to note that in accordance with accounting regulations the increase of value in equity method is not reflected in the financial statements. The referred appraisal value is reflected in the following accounting Items: During the period, MERLIN has refinanced the Tree portfolio mortgage loan for an aggregate amount of € 716.9 million. This refinancing has extended the maturity from 30 September 2024 to 31 March 2031 plus 3 extensions of one year. The interest margin has been reduced by 55 bps to 1.20% over reference rate. The balance of long term debt and short term debt includes Company’s outstanding financial debt, mark-to-market of interest-rate and inflation hedging contracts and other financial liabilities, corresponding to guarantees and legal deposits received. The breakdown of gross financial debt is as follows: FINANCIAL DEBT