MERLIN Properties Annual Report 2018 / English

ı 98 ı ALTERNATIVE PERFORMANCE MEASURES In accordance with the recommendations issued by the European Securities and Markets Authority (ESMA), the alternative performance measures (“APM”) are described as follows. GLOSSARY Average debt maturity (years) This APM represents the average debt duration of the Company until maturity. It is a relevant metric as it provides the investor with the relevant information about the repayment commitments of the financial liabilities. It is calculated as the addition of the pending years to maturity of each loan multiplied by its outstanding loan amount and divided by the total outstanding amount of all loans. Given the nature of the metric, it is not possible to reconcile it with the Group financial statements but the main information is available in note 15 of the consolidated financial statements. Average passing rentt It represents the rent per square meter per month at which an asset or category of assets are rented at a moment in time. The average passing rent is a relevant performance metric as it shows the implied rents of all the prevailing lease contracts of the company at a moment in time per square meter and per month enabling the comparison with market rents. Given the nature of the metric, it is not possible to reconcile it with the financial statements. 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 last twelve months. The release spread provides the investor with a view on the prospective rental behaviour when negotiating with the tenants. It is calculated on a lease by lease basis and therefore it is not possible to reconcile it with the financial statements. Rents Like-for-like Amount of the gross rents (note 9.2 of consolidated financial statements) comparable between two periods. It is calculated on an asset by asset basis excluding from both periods the rents derived from acquisitions or disposals executed in such periods as well as other adjustments like early termination penalties from lease contracts. We consider the rental like-for-like growth a relevant metric to understand the evolution of rents os an asset or an asset category. It is calculated on an asset by asset basis and therefore it is not possible to reconcile it with the financial statements. Gross annualized rents Passing rent as of the balance sheet date multiplied by 12. We consider the gross annualized rents a relevant performance metric as it represents the total amount of rents of the prevailing lease contracts at a given time enabling the calculation of the return of each asset (Gross yield). Given the nature of the metric, it is not possible to reconcile it with the financial statements. GAV The GAV is the Gross Asset Value as of the latest available valuation report plus the advanced payments of turn-key projects and developments at cost. The GAV is a standard valuation metric for comparison purpose, recognized on a global