MERLIN Properties Annual Report 2021

MERLIN Properties | 9 Following a difficult 1H, operating performance improved through the year, leading to a beat in the FFO guidance provided to the market. The Company managed to grow in all of its key financial and operating metrics such as occupancy (94.5% +21 bps YoY), LfL rental income (+0.2% YoY) and cash flow generation (€ 273.0m in FFO, +4.1% YoY). In the following years, growth will be fuelled by Best II & III deliveries and, more importantly, by the Digital Infrastructure Plan (Mega), which construction will begin in 2022 AT A GLANCE FFO PER SHARE / AFFO PER SHARE FFO per share has exceeded the guidance provided to the market (€ 0.56 per share) AFFO ps €0.55 (+4.2%YoY) FFO ps €0.58 (+4.1%YoY) AFFO ps FFO ps 2021 2017 2018 2019 2020 0.62 0.61 0.67 0.56 0.58 0.58 0.58 0.65 0.53 0.55 EPRA NTA PER SHARE Another year delivering EPRA NTA growth, mainly driven by the momentum of logistics EPRA NTA per share increase € 16.11 (+4.2% increase YoY) LfL GAV increase +2.0% NAV ps EPRA NTA ps 2017 2018 2019 2020 13.25 14.81 15.60 15.68 16.11 15.39 15.46 2021 Loan to Value 39.2% Cost of debt 1.76% spot (2.07% hedged) FINANCIAL DEBT MERLIN continues its deleveraging process (39.2% LTV vs 39.9% in FY20), reducing the cost of debt Cost of debt (hedged) (%) Loan to Value (%) 2.23% 2.13% 2.09% 2.12% 2.07% 43.6% 40.7% 39.9% 39.2% 39.5% 2017 2018 2019 2020 2021 GRI AND NRI Gross rents back to positive figures. Net rents are experiencing a healthy growth (+4.9%) as the commercial policy effect fades away GRI € 505m (+0.4% YoY) NRI € 462m (+4.9% YoY) GRI (€m) 453 474 512 469 500 526 503 505 2017 2018 2019 2020 2021 441 462 NRI (€m)