MERLIN Properties Annual Report 2021

6 | Annual Report | 2021 Mr. Javier García-Carranza Non-Executive Chairman Letter from the Chairman Dear Shareholders, It is with great pleasure that I present to you MERLIN Properties (“MERLIN” or the “Company”) 2021 Annual Report. The Annual Report includes the annual Financial Statements and all of the information relevant to the 2021 fiscal year. Following a complicated first semester, the 2021 operating results have improved during the year, beating the FFO guidance provided to the market, closing the year with €0.58 per share (vs. €0.56 indicated to the market). All key financial and operating metrics such as occupancy (94.5%, +21 bps vs. 2020), LfL rents (+0.2% vs. 2020) or FFO (€ 273.0m, +4.1% vs. 2020) have increased compared to 2020. In the upcoming years, growth will be fuelled by the deliveries of Best II & III plans, and more so, by the Digital Infrastructure Plan (Mega) whose construction will begin in 2022. By asset class, offices have remained in line with expectations. Occupancy stands at 90.1%, with a slight decrease in LfL rents of 1.2%. Gross rental income amounts to € 228.6 million and two Landmark projects, Castellana 85 in Madrid, and Monumental in Lisbon, have been delivered and are 100% let. Following these deliveries, Landmark plan is nearing completion, with only Plaza Ruiz Picasso left and whose delivery is expected for the last quarter of 2023. Logistics continues growing, mainly driven by the acceleration of e-commerce due to the pandemic. MERLIN is the undisputable leader in the Iberian Peninsula and the reference solution for logistics operators. Rents in the period have amounted to € 65.9 million, virtual full occupancy of the portfolio and increase in LfL rents of 1.6%. Best II &