MERLIN Properties Annual Report 2019 / English

| 65 In 2020, MERLIN expects to continue with high occupancy rates and the maintenance of strong cash flow due to the long remaining lease period (5.6 years from 31 December 2019, weighted by each tenant rents) The Company also expects to continue with the acquisition of assets that fit within its investment strategy. To this end, it holds a cash position of € 384.7 million. In this regard, in 2019, in accordance to our best estimates, average payment period to suppliers was 34 days. The Company uses interest rates hedging financial instruments to manage the exposure to the interest rates fluctuation in its financing. The Company Policy consists of maintaining the net non- current financial debt from third parties at fix rate. To achieve the target, the Company operates with interest rates swaps that hedge their corresponding loans. Regarding R + D and other innovative initiatives, MERLIN has promoted several technological projects to position the company in the vanguard of customer solutions and internal management. Among them it can be highlighted: • Special projects: - Sensorisation program for office buildings (in partnership with signify) and shopping centers (in partnership with Vodafone) - Last mile logistics - Implementation of third-party technologies (e.g. KeepEyeOnBall, Mayordomo and Fillit) - Customer experience app • Mentoring : Proptech Challenge organized with ISDI • Sponsoring: agreement with Fifth Wall, the largest venture capital firm focused on the global real estate industry and property technology for the Built World Outlook / R+D information / other