MERLIN Properties Annual Report 2021

38 | Annual Report | 2021 Gross rents (€ 505,319 thousand) less incentives of € 42,856 thousand equals to gross rents net of incentives of € 462,463 thousand. After deducting porfolio operating expenses not recharged to the tenants & collection loss (€ 48,631 thousand) the resulting amount is € 413,832 thousand of net rents. The total amount of operating expenses of the Company in the period is € 57,501 thousand, with the following breakdown: i. € 29,129 thousand correspond to personnel expenses. ii. € 14,262 thousand of Opex general expenses. iii. € 11,498 thousand corresponding to the 2017-2019 long-term incentive plan (LTIP), already expired and the extraordinary incentive of 2021. iv. € 2,612 thousand of Opex non-overheads operating expenses. The reconciliation between gross rents of the period and FFO is as follows: Gross rents Gross rents net of incentives Net rents after incentives and propex non rechargeable Other operating income Personnel expenses General expenses (opex) Net financial result, recurring taxes & other FFO EBITDA 505.3 462.5 413.8 273.0 377.2 6.8 (29.1) (14.3) (104.2) Incentives (42.9) Propex non recharged & Collection loss (48.6) (€ m) NOTES TO THE CONSOLIDATED INCOME STATEMENT