MERLIN Properties Annual Report 2020 / English

84 | Annual Report | 2020 EPRA COST RATIO (€ thousand) Notes 31/12/2020 Property expenses not recharged to tenants 18 b (45,454) Collection loss 18 b (1,740) Personnel expenses 18 c (39,721) Opex general expenses 18 b (12,144) Opex non-overheads 18 b and 18 c (6,235) LTIP accrual 18 c 18,232 Exclude: Investment property depreciation - Ground rent costs - Service charge recovered through rents but not invoiced separately - Expenses related to 3rd party asset management services - EPRA Cost ratio (including direct vacancy costs) (87,062) Gross rents 8.2 503,448.0 Less: incentives n.a (62,386.0) Less: ground rent costs 0.0 Gross rental income 18 a 441,062.0 EPRA Cost ratio (including direct vacancy costs) 19.7% EPRA Cost ratio (excluding direct vacancy costs) 17.2% Note: as a per MERLIN’s policy the company does not capitalize overheads or operating expenses.