MERLIN Properties Annual Report 2023

MERLIN Properties | 53 Notes (€ thousand) Include: Administrative/operating expense line per IFRS income statement 18 108,170 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 108,170 Direct vacancy costs 7,127 EPRA Costs (excluding direct vacancy costs) B 101,043 Gross Rental Income less ground rents – per IFRS (1) 444,155 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 444,155 EPRA Cost Ratio (including direct vacancy costs) A/C 24.4% EPRA Cost Ratio (excluding direct vacancy costs) B/C 22.7% MERLIN’s has a policy of not capitalising any overhead or operating expenses (1) Gross Rental income (€ 475.6m) - incentives (€ 28.4m) - ground lease rents (€ 3.1m) EPRA COST RATIOS