MERLIN Properties Annual Report 2023

32 | Annual report | 2023 DEVELOPMENTS / WORK IN PROGRESS (WIP) BEST II & III PLANS (LOGISTICS) DATA CENTERS MERLIN continues expanding its logistics footprint trough the developments / WIP program in logistics. As of 31 st December 2023, the main KPIs of the Best II and III plans are the following: • 478k sqm of Best II and III projects have been delivered to date achieving an YoC average of 7.8% • A2-Cabanillas Park II B (47k sqm) finished and fully let in 1Q24 • MAD01-GET, BCN01-PLZF and BIO03- ARA Data Centers fully operational and delivered to the anchor tenant, proving to market best-in-class technical specifications (1.15 PUE and 0.0 WUE) • LIS01-VFX Data Center license expected in 1Q24 • Given the increase in the demand due to Generative AI, the company is accelerating its IT MEP (Mechanical, Electrical and Plumbing) procurement and repowering facilities where the opportunity arises (1) Including land cost (2) To be developed on a pre-let basis (3) € 306m including down payments and pre-orders Logistics pipeline as of FY23 GLA (sqm) Pending capex (€m) Expected GRI (€m) YoC (1) (%) Yield on Pending Capex (%) Near term pipeline by 2Q25 189k 78 10.4 7.6% 13.3% Medium term pipeline (2026-2027) 98k 61 6.1 7.6% 10.0% Non-committed long-term pipeline (2) 318k 162 17.7 ±7.0% 11.0% Capex invested as of FY23 (€m) 2024 Capex (€m) 2025-2026 Capex (€m) Expected stabilized GRI (€m) Stabilized GRI YoC (1) (%) Stabilized NOI YoC (%) 258 (3) 144 163 81 14.4% >10% • 557k sqm of Landbank, all of which have reached ready-to-build status, distributed among selected locations in Madrid, Lisbon, Valencia and Seville Logistics development program (as from 31/12/2023)