MERLIN Properties Annual Report 2019 / English

46 | Annual Report | 2019 € million Notes Investment property 7 12,169.2 Derivatives (in non-current assets) 7 124.7 Equity method 9 347.0 Non current financial assets (1) 10 103.9 Non-current assets n.a 0.9 Total balance sheet items 12,745.6 IFRS-16 (concessions) 7 (27.8) Equity method adjustment n.a 33.2 Non-current assets adjustment n.a 0.4 Total valuation 12,751.3 € Thousand Long term Short term Total Financial debt 5,552,612 14,604 5,567,216 Loan arrangement costs (107,105) (3) (107,109) Debt interest expenses - 37,126 37,126 Mark-to-market of interest-rate hedging contracts 95,695 1,231 96,926 Other financial liabilities (i.e. legal deposits) 120,464 6,576 127,040 Total debt 5,661,666 59,533 5,721,199 NOTES TO THE CONSOLIDATED BALANCE SHEET FINANCIAL DEBT BREAKDOWN Fair value of the portfolio corresponds to the appraisal value delivered by CBRE, Savills and JLL as of 31 December 2019. The referred appraisal value is reflected in the following accounting Items: FINANCIAL DEBT During the period, MERLIN has refinanced: I. Its existing term loans and revolving credit facilities (RCF) through a € 1.55bn ESG indexed financing, being the largest of its kind in the European REIT spectrum. The facility consists of a € 850m term loan and a € 700m RCF. II. A € 67.9m secured bank loan on 7 logistics assets. Additionally, MERLIN issued unsubordinated ordinary bonds for an aggregate principal amount of 500 million Euros. The Notes have been issued with a maturity of 15 years, at an issue price of 99.174% of nominal value, and an annual coupon of 1.875% (midswap + 165 bps). This 15 year bond is the longest issuance executed by an Spanish real estate company as the issuance date. As a result, average cost of debt has been reduced and average maturity extended. 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: (1) Includes DCN loan and Aedas stake