MERLIN Properties Annual Report 2022

40 | Annual report | 2022 Gross rents (€ 452,842 thousand) less incentives of € 24,688 thousand equals to gross rents net of incentives of € 428,154 thousand. After deducting porfolio operating expenses not recharged to the tenants & collection loss (€ 49,276 thousand) the resulting amount is € 378,878 thousand of net rents. The total amount of operating expenses of the Company in the period is € 58,562 thousand, with the following breakdown: i. € 35,659 thousand correspond to personnel expenses ii. € 16,446 thousand of Opex general expenses iii. € 4,014 thousand corresponding to the 2017-2019 long-term incentive plan (LTIP), already expired and the 2022-2024 long- term incentive plan (LTIP) iv. € 2,443 thousand of Opex non-overheads operating expenses. The reconciliation between gross rents of the period and FFO is as follows: Gross rents Gross rents net of incentives Net rents after incentives and propex non rechargeable Other operating income Personnel expenses General expenses (opex) Net financial result, recurring taxes & other FFO EBITDA Incentives Propex non recharged & Collection loss (€m) 428.2 378.9 290.5 334.7 452.8 (44.2) (16.4) (35.7) 7.9 (49.3) (24.7) NOTES TO THE CONSOLIDATED INCOME STATEMENT