MERLIN Properties Annual Report 2021

86 | Annual Report | 2021 (€ thousand) Notes 31/12/2021 Property expenses not recharged to tenants 18 b (46,319) Collection loss 18 b (2,312) Personnel expenses 18 c (1) (40,627) Opex general expenses 18 b (14,262) Opex non-overheads 18 b and c (2,612) LTIP accrual 18 c 11,498 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) (94,634) Gross rents n.a 505,319.0 Less: incentives n.a (42,856.0) Less: ground rent costs 0.0 Gross rental income 18 a 462,463.0 EPRA Cost ratio (including direct vacancy costs) 20.5% EPRA Cost ratio (excluding direct vacancy costs) 18.2% As per MERLIN’s policy the company does not capitalize overheads or operating expenses EPRA COST RATIO (1) Excluding severances