MERLIN Properties Annual Report 2019 / English

| 71 MERLIN has entered a framework agreement with Endesa, in order to supply all multi- tenant office assets with electricity from renewable energy sources. At the start of the second half of the year, 98 assets were added to this agreement, representing the 84% of total multi-tenant offices, in terms of area. Therefore, around 21% of the electricity consumed in 2019 in MERLIN’s assets over which the Company exercises management control has been generated from renewable sources, representing 79,272 GJ of electricity consumption. The percentage of office assets under these agreements will increase, while current agreements with the electricity utilities of this type of assets get to an end, until covering the 100% of multi-tenant office assets. Energy consumption in assets in which MERLIN does not have operational control In absolute terms, the consumption registered for the assets in which MERLIN does not exert operational control was of 13,072 GJ in 2019, divided by the assets of offices (54,1% of that consumption) and logistics (45,9% remaining). Particularly, 7,068 GJ were registered in office assets (meaning 0.260 GJ/ sqm, in terms of energy intensity). From these, 70.5% area attributed to electricity consumption and 29.5% to natural gas consumption. Regarding to the logistics assets, energy consumption reached 6,004 GJ (0.107 GJ/sqm in terms of energy intensity), all of it related to electricity consumption. In terms of the Like for Like portfolio (formed by two office assets), energy consumption accounted for 6,823 GJ, from which 4,762 GJ related to electricity and 2,061 GJ to natural gas. Electricity consumption at MERLIN’s corporate headquarters and LOOM spaces MERLIN has two headquarters, one in Madrid and another in Barcelona, with around 61% and 6% of the Group’s total workforce, respectively, MERLIN only controls consumption at its Madrid corporate headquarters, so information is only reported for these installations. In this way, electricity consumption for this property, with a total area of 1,855 sqm, has reached 724 GJ in 2019, equivalent to an electricity intensity of 0.39 GJ/sqm, 6% less than in 2018. Additionally, with the integration of LOOM in 2019, MERLIN has three assets which provide flexispace exclusively, under the LOOM trademark (“Fábrica de Tapices, Huertas and Salamanca”), of which it is the lessee. Of these three assets, it only has control over electricity consumption in Huertas and Salamanca, representing a total area of 3,119 sqm (1,188 sqm in Huertas and 1,931 sqm in Salamanca). The electricity consumption registered in 2019 in those properties amounted to 584 GJ; 212 GJ in Huertas (with data available since july 2019) and 372 GJ in Salamanca (with data available since april 2019). Water consumption In Like for Like terms, water consumption amounted to 694,047 m 3 in 2019. This consumption includes offices (49.5%), shopping centres (49.9%) and logistics assets (0.6%) and represents an increase of 5.1% compared with 2018, mainly due to an increase in the consumption registered in the shopping centres of this portfolio. With respect to the office asset portfolio Like for Like, water consumption has amounted to 343,743 m 3 , representing an slight increase of 0.1% compared with 2018. Additionally, water consumption in the shopping centres portfolio on a Like for Like basis has risen in a 10.8%, reaching 346,328 m 3 in 2019. This increase is associated with the drop in rainfall experienced during the year in locations such as the Marineda shopping centre, which uses rainwater, the completion of the refurbishment work that took place at the La Fira shopping centre and the rise in temperatures, recorded in 2019, that, along with the drop in rainfall, have probably caused an overall need for watering.