MERLIN Properties Annual Report 2019 / English

We also understood that our solidarity and empathy should not be restrained, translating into half measures or complicated sophistry that could trigger grievances or litigation with our clients. From this perspective we launched a two-phase commercial policy targeting tenants whose businesses were affected by the state of alarm. In the first phase, during the mandatory closure, we relieved 100% of the rent. In the second phase, since the re-opening, we established incentives that will gradually decrease as normality returns, concluding definitively at year- end. The policy was warmly received by an overwhelming majority of clients and has become the benchmark in the market. Our swift understanding of the seriousness of the situation also led us to capitalise on two qualities that I would say are the hallmarks of this Company: accuracy and transparency. After many conversations with our clients, we were able to make a relatively precise diagnosis of the foreseeable impact on 2020 cash flows: roughly €60 million. And, aware that uncertainty is the enemy of our shareholders and of markets in general, we publicly explained in great detail the calculations used to arrive at this figure, reserving the right to modify these calculations should circumstances change. Undoubtedly, the challenge we face is unprecedented and we will have to overcome significant difficulties in the short term, but rest assured that the Company is equipped to withstand the damage of the crisis that lies ahead, and the team I lead will work tirelessly toward that end, because they are accustomed to challenges, because they have the experience gleaned from past economic crises, and because they have the knowledge and temperament necessary to helm the ship in the storm and guide it to safe harbour.