MERLIN Properties Annual Report 2019 / English

| 13 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. Strategy Offices Breadth of prime space Madrid, Barcelona and Lisbon 45 % Net leases High triple net cash flow Inflation multiplier 15 % Shopping Centers Urban or Dominant National scale 20 % Logistics National footprint “One-stop shop” solution for 3PL 20 % Organization and structure 2 . INVESTMENT GRADE CAPITAL STRUCTURE CORE & CORE PLUS SPAIN & PORTUGAL 1. DIVIDEND POLICY: 80% OF AFFO 3 . ONE OF THE WORLD’S MOST COST EFFICIENT REIT’S 4. BEST GOVERNANCE PRACTICES 5.