MERLIN Properties Annual Report 2021

| 47 Performance Measure Definition 31/12/2021 € million € per share EPRA Earnings Earnings from core operational activities 273.0 0.58 EPRA NRV EPRA Net Reinstatement Value: assumes that entities never sell assets and aims to represent the value required to rebuild the entity 8,015 17.06 EPRA NTA EPRA Net Tangible Assets: assumes that entities buy and sell assets, thereby crystallizing certain levels of unavoidable deferred tax 7,567 16.11 EPRA NDV EPRA Net Disposal Value: represents the shareholders’ value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax 6,950 14.80 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 3.8% 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) 3.9% EPRA vacancy rate (1) Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio 6.1% EPRA Cost ratio (including direct vacancy costs) Running costs of the Company divided by recurring rents including direct vacancy costs 20.5% EPRA Cost ratio (excluding direct vacancy costs) Running costs of the Company divided by recurring rents excluding direct vacancy costs 18.2% EPRA costs (excluding non-recurring costs) Recurring running costs of the Company divided by recurring rents 19.9% 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. (1) ERV of occupied units under operations € 529.2m, ERV of vacant units under operations € 34.4m EPRA Metrics