MERLIN Properties Annual Report 2023

40 | Annual report | 2023 Gross rents (€ 475,614 thousand) less incentives of € 28,407 thousand equals to gross rents net of incentives of € 447,207 thousand. After deducting porfolio operating expenses not recharged to the tenants & collection loss (€ 43,500 thousand) the resulting amount is € 403,707 thousand of net rents. The total amount of operating expenses of the Company in the period is € 54,961 thousand, with the following breakdown: i. € 31,759 thousand correspond to personnel expenses ii. € 17,651 thousand of Opex general expenses iii. € 2,804 thousand corresponding to the long-term incentive plan (LTIP) iv. € 2,747 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) 447.2 403.7 284.2 367.0 475.6 (82.7) (17.7) (31.8) 12.7 (43.5) (28.4) NOTES TO THE CONSOLIDATED INCOME STATEMENT