MERLIN Properties Annual Report 2022

MERLIN Properties | 51 Notes (€ thousand) Include: Administrative/operating expense line per IFRS income statement 13 113,491 Net service charge costs/fees Management fees less actual/estimated profit element Other operating income/recharges intended to cover overhead expenses less any related profits Share of Joint Ventures expenses Exclude (if part of the above): Investment property depreciation Ground rent costs Service charge costs recovered through rents but not separately invoiced EPRA Costs (including direct vacancy costs) A 113,491 Direct vacancy costs 9,164 EPRA Costs (excluding direct vacancy costs) B 104,327 Gross Rental Income less ground rents – per IFRS (1) 425,637 Less: service fee and service charge costs components of Gross Rental Income (if relevant) Add: share of Joint Ventures (Gross Rental Income less ground rents) Gross Rental Income C 425,637 EPRA Cost Ratio (including direct vacancy costs) A/C 26.7% EPRA Cost Ratio (excluding direct vacancy costs) B/C 24.5% MERLIN’s has a policy of not capitalising any overhead and operating expenses (1) Gross Rental income (€ 452.8m) - incentives (€ 24.7m) - ground lease rents (€ 2.5m) EPRA COST RATIOS