MERLIN Properties Annual Report 2019 / English

44 | Annual Report | 2019 Gross rents (€ 525,918 thousand) less incentives of € 14,393 thousand equals to gross rents net of incentives of € 511,525 thousand. After deducting porfolio operating expenses not recharged to the tenants & collection loss (€48,263 thousand) the resulting amount is € 463,262 thousand of net rents. The total amount of operating expenses of the Company in the period is € 91,651 thousand, with the following breakdown: i. € 32,284 thousand correspond to personnel expenses. ii. € 10,186 thousand of general expenses. iii. € 44,242 thousand corresponding to the long-term incentive plan (LTIP) accrued. iv. € 4,939 thousand of non-overheads operating expenses. They correspond mainly to expenses related to financing and refinancing activity and to expenses for the acquisition of portuguese asset companies. The sum of the personnel expenses (excluding the amount accrued for the LTIP) and the Opex general expenses of the Company are within the threshold of overheads of the Company, prevailing this period the 0.575% of the EPRA NAV of the Company. The reconciliation between gross rents of the period and FFO is as follows: NOTES TO THE CONSOLIDATED INCOME STATEMENT Gross rents Gross rents net of incentives Net rents after incentives and propex non rechargeable Other operating income Personnel expenses Opex general expenses Net financial result, recurring taxes & other FFO EBITDA 525.9 511.5 463.3 313.3 425.5 4.7 (32.3) (10.2) (112.2) Incentives (14.4) Propex non recharged & Collection loss (48.3) (€ m)