MERLIN Properties Annual Report 2021

| 53 The Company maintains a dividend policy that takes into account sustainable levels of distributions and shows the Company’s forecast in relation to obtaining recurring profits. The Company does not intend to create reserves that cannot be distributed to the shareholders, other than those required by law. According to the Spanish regime for REIT’s, the Company will be obligated to adopt agreements to distribute the profits obtained in this financial year in the form of dividends to shareholders, after complying with any relevant requirement of the Spanish Corporation Law. The Company will be obligated to agree its distribution within six months of the close of each financial period, in the following manner: (i) at least 50% of the profits derived from the transfer of real properties, shares, or shareholdings in qualified affiliates, provided that the remaining profits are reinvested in other real estate assets within a maximum period of three years from the date of transmission or, if not, 100% of the profits must be distributed as dividends at the end of this three year period; (ii) 100% of the profits obtained by receiving dividends paid by qualified subsidiaries; (iii) at least 80% of the rest of the obtained profits. If the dividend distribution agreement is not adopted within the legal timeframe, the Company will lose its REIT status during the financial year to which the dividends refer. In accordance with the Prospectus, MERLIN Properties targets to deliver a dividend yield of between 4% and 6% over the initial IPO price. The Company’s dividend policy is established as the distribution of a minimum of the 80% cash flow from operations less the payment of interests and less the payment of recurring expenses of maintaining assets (AFFO). On 19 May 2021, the final dividend for 2020 was paid out, amounting to EUR 140,055 thousand. Furthermore, on 3 December 2021, the Company’s Board of Directors resolved to distribute EUR 70,033 thousand as an interim dividend charged to profit for 2021. Dividend policy Type Date Concept € per share Interim 2015 28-oct-15 Dividend 0.0775 Final 2015 27-apr-16 Dividend 0.005692 Final 2015 27-apr-16 Share premium distribution 0.102608 Total 2015 0.19 Interim 2016 25-oct-16 Dividend 0.185 Interim 2016 25-oct-16 Share premium distribution 0.02 Final 2016 18-may-17 Dividend 0.10071014 Final 2016 18-may-17 Share premium distribution 0.09928767 Total 2016 0.40 Interim 2017 25-oct-17 Dividend 0.20 Final 2017 25-may-18 Dividend 0.02053654 Final 2017 25-may-18 Share premium distribution 0.23946346 Total 2017 0.46 Interim 2018 25-oct-18 Dividend 0.20 Final 2018 07-may-19 Dividend 0.20270039 Final 2018 07-may-19 Share premium distribution 0.09729961 Total 2018 0.50 Interim 2019 28-oct-19 Dividend 0.20 Final 2019 8-jul-19 Dividend 0.14741659 Total 2019 0.35 Final 2020 19-may-21 Share premium distribution 0.30 Total 2020 0.30 Interim 2021 03-dec-21 Dividend 0.15 Total 2021 0.15