MERLIN Properties Annual Report 2023

| 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 as required by law. Under the REIT regime, after complying with any relevant requirement of the Corporate Enterprises Act, the Parent will be required to pass resolutions 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; (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 will lose its REIT status for the financial year to which the dividends refer. The Company’s dividend policy establishes a distribution of 80% of the AFFO (“Adjusted FFO”), understood as the cash flow from operations less interest paid and ordinary maintenance expenses and capex for the assets. On 27 April 2023, the General Meeting of Shareholders approved the distribution of a supplementary dividend from the profit for 2022 in the amount of EUR 113,350 thousand euros (EUR 0.242 per share). In addition, on 16 November 2023, the Company’s Board of Directors approved the distribution of an interim dividend of EUR 93,673 thousand (EUR 0.20 per share) from the profit for 2023 .