MERLIN Properties Annual Report 2024

MERLIN Properties | 49 Notes (€ thousand) Include: (i) Administrative/operating expense line per IFRS income statement 18 132,787 (ii) Net service charge costs/fees (iii) Management fees less actual/estimated profit element (iv) Other operating income/recharges intended to cover overhead expenses less any related profits (v) Share of Joint Ventures expenses Exclude (if part of the above): (vi) Investment property depreciation (vii) Ground rent costs (viii) Service charge costs recovered through rents but not separately invoiced EPRA Costs (including direct vacancy costs) A 132,787 (ix) Direct vacancy costs 9,972 EPRA Costs (excluding direct vacancy costs) B 122,815 (x) Gross Rental Income less ground rents – per IFRS (1) 466,785 (xi) Less: service fee and service charge costs components of Gross Rental Income (if relevant) (xii) Add: share of Joint Ventures (Gross Rental Income less ground rents) Gross Rental Income C 466,785 EPRA Cost Ratio (including direct vacancy costs) A/C 28.4% EPRA Cost Ratio (excluding direct vacancy costs) B/C 26.3% MERLIN’s has a policy of not capitalising any overhead or operating expenses (1) Gross Rental income (€ 498.1m) - incentives (€ 29.8m) - ground lease rents (€ 3.8m) EPRA COST RATIOS