MERLIN Properties Annual Report 2022

| 61 Dividends policy The Company’s dividend policy takes into account sustainable levels of distribution and reflects the Company’s expectation of obtaining recurring profits. The Group does not intend to create reserves that cannot be distributed to shareholders, except those required by law. Under the REIT regime, after complying with any relevant requirement of the Ley de Sociedades de Capital, the Parent company will be required to adopt agreements to distribute the profit obtained in the year to shareholders in the form of dividends and this distribution must be approved within six months of the end of each year, as follows: (i) at least 50% of the profit from the transfer of properties and shares or equity interests in qualified subsidiaries, provided that the remaining profit is reinvested in other real estate assets within no more than three years of the date of the transfer, otherwise, 100% of the profit must be distributed as dividends after such period has elapsed; (ii) 100% of the profit obtained from receiving the dividends paid by qualified subsidiaries; (iii) at least 80% of the remaining profit obtained. If the resolution to distribute dividends is not passed within the legally established period, the Parent company will lose its REIT status for the financial year to which the dividends refer. The Company’s dividend policy establishes a minimum distribution of 80% of the AFFO (“Adjusted FFO”), understood as the cash flow from operations less interest paid and less ordinary maintenance expenses for the assets. On 27 May 2022, the final dividend for 2022 was paid in the amount of € 117,112 thousands (€ 0.25 per share). In addition, an interim dividend of profit for the year of € 351,169 thousands (€ 0.75 per share) was paid on 18 August 2022. Lastly, on 2 December 2022, an interim dividend of € 93,646 thousands (€ 0.20 per share) was paid out of the profit for 2022.