MERLIN Properties Annual Report 2019 / English

| 51 Performance Measure Definition 31/12/2019 € million € per share EPRA Earnings (€ million) Earnings from core operational activities 313.3 0.67 EPRA NAV (€ million) EPRA Net Asset Value (EPRA NAV) is calculated based on the consolidated shareholders’ equity of the Group adjusted to include properties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long-term investment property business model, as per EPRA’s recommendations 7,330.7 15.60 EPRA NNNAV (€ million) EPRA NAV adjusted to include the fair value of financial instruments, debt and deferred taxes 6,742.2 14.35 EPRA Net Initial Yield Annualized rental income based on the cash passing rents at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with acquisition costs 4.0% EPRA “topped-up” NIY Adjustment to the EPRA Net Initial Yield in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents) 4.1% EPRA vacancy rate Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio 5.2% EPRA costs Running costs of the Company divided by recurring rents 18.7% EPRA costs (excluding non-recurring costs) Recurring running costs of the Company divided by recurring rents 17.7% MERLIN Properties has been awarded by EPRA with the gold award of best practices in financial reporting. It is the highest recognition for an outstanding compliance with the best practices. EPRA Metrics