MERLIN Properties Annual Report 2024

4 | Annual report | 2024 José Luis de Mora Non-Executive Chairman Letter from the Chairman Dear Shareholders, I am pleased to present you the 2024 MERLIN Properties (“MERLIN” or the “Company”) Annual Report. The Annual Report details the Annual Accounts and all relevant information relating to the financial year 2024 in a very detailed manner. In a context characterized by geopolitical tensions and markets volatility, all the foundations of the Company’s future growth and value creation project were consolidated during 2024, though our data centers division, while the excellent portfolio of traditional assets (offices, shopping centers and logistics) enjoyed great performance, with a portfolio occupancy rate at its highest historical levels of 96.7%. On the other hand, our industry is by definition very capital-intensive and therefore very sensitive to interest rate levels. Although our rents are updated annually with inflation, the value of the assets is very significantly determined by the rate at which they are discounted. Therefore, we faced high levels of interest rates in 2024, which impacted the value of our assets and the cost of our long-term financing. In terms of value creation, 2024 has been a very positive year for MERLIN Properties in all its operating metrics and, more importantly, in all the asset categories in which it operates. This year we have seen how MERLIN achieved growth in its two key metrics: rents and occupancy. At consolidated level, the Company achieved gross rents of € 500.4 million and cash flow generation (“FFO”) of € 310.8 million or € 55 cents per share, a growth of 9.4% vs. 2023. By business segment, offices ended the year above the forecasts given to the market at the beginning of the year. Occupancy stood at 93.7% and we had a 3.9% LfL rental growth. Rents of € 287.7 million and the renovation of Plaza Ruiz Picasso 11 building is completed and leased to tenants such as IBM, SAP, All the foundations of the Company’s future growth and value creation project were consolidated during 2024.