Excellent year for MERLIN Properties, with +5.2% rental growth and more than €500 million of gross rents

• Good operating performance, with LfL rental growth of 3.4% and positive release spread across all asset classes
• EBITDA reached € 379.2 million, +3.3% compared to FY23
• Funds From Operations (FFO) improvement up to €310.8 million (+9.4% vs. FY23)
• Data centers’ revaluation (+16.9% vs. FY23) offset a slight decline due to yield adjustment in other asset classes
• Both S&P (BBB+) and Moody’s (Baa1) upgraded the Company’s rating for its low leverage and improved cash flow generation profile
• Net asset value according to EPRA (EPRA NTA) stands at €14.32 per share,
  already diluted after the capital increase and the distribution of the 18 cents dividend in the second half of the year

Madrid, 27^th February – MERLIN Properties closed 2024 with total revenues of €516.7 million (including gross rents of €500.4 million), EBITDA of €379.2 million, operating profit (FFO) of €310.8 million (€55 cents per share) and net earnings of €283.8 million.

Gross asset value (GAV) stood at €11.5 billion, virtually unchanged thanks to the revaluation of data centers (+16.9% vs. FY23). Net asset value reached €8,071 million (€14.32 per share).

The Loan-to-Value (LTV) is at 28.3% (vs. 35.0% in FY23), with a liquidity position of €2.4 billion. 100% of debt is fixed and average maturity is 4.3 years.

Business Performance

Positive like-for-like rental growth (+3.9%) and release spread (+2.3%) in offices. The occupancy rate reached a record high of 93.7%. The performance of Madrid was particularly noteworthy, benefiting from the first signs of imbalance between supply and demand due to the wave of residential and hotel conversions.

Logistics portfolio performance continues to be impressive for yet another year, with like-for-like rents growing at +2.8%, release spread (+1.4%) and occupancy at 99.4%, setting an all-time high that is hard to replicate.

Several turnkey projects were signed during the year, including: three logistics warehouses in Lisbon Logistics Park with an end customer absorbing 134,695 sqm, plus a 18,133 sqm warehouse in Cabanillas Park II for Total and a 2,477 sqm warehouse in Sevilla ZAL for XPO. Of the total landbank (511,000 sqm), 155,000 sqm are pre-let and 77,000 sqm have signed letters of interest, which will crystallise into pre-lets in the coming months.

Strong operating performance in shopping centers, with strong like-for-like rental growth (+2.7%) and release spread on renewals (+3.3%). Occupancy cost ratio remains at historical lows (11.2%) and footfall (+2.5%) and tenant sales (+5.5%) have performed better than in 2023. Occupancy ends at record highs (96.5%).

In Phase I (64 MW) of the development of our MEGA plan the MAD01-GET, BCN01-PLZF and BIO03-ARA data centers already have 26 MW equipped and ready for operation, of which 21.2 MW are let. Within Phase II (203 MW), construction licenses have been obtained for LIS01-VFX and BIO02-ARA and work has begun. An agreement has also been signed with the regional government of Extremadura to develop two AI campuses with an IT capacity of 1 GW each in Navalmoral de la Mata and Valdecaballeros and the acquisition of land in Tres Cantos (Madrid) has been signed to build a 30MW data center, which can be expanded in the future by successive buildings to create a 160MW mini-campus.

Portfolio valuation

MERLIN’s Gross Asset Value (‘GAV’) amounts to €11,540 million at 31 December 2024, according to appraisals carried out by Savills, CBRE and JLL. By asset category, it is worth highlighting the value created during the year in data center developments (€60.3m). Net asset value amounted to €8,071m, equivalent to €14.32 EPRA NTA per share.

2025 Outlook

Finally, we estimate around € 0.54 p.s. FFO for 2025 corresponding to a similar dividend per share as 2024’s proposal (€ 0.40 p.s.).

About MERLIN Properties

MERLIN Properties SOCIMI, S.A. (MC:MRL) is the largest real estate company trading on the Spanish Stock Exchange. Specialized in the development, acquisition and management of commercial property in the Iberian region. MERLIN Properties mainly invests in offices, shopping centers, logistics facilities and data centers, within the Core and Core Plus segments, forming part of the benchmark IBEX-35, Euro STOXX 600, FTSE EPRA/NAREIT Global Real Estate, GPR Global Index, GPR-250 Index, MSCI Small Caps indices and DJSI.

Please visit www.merlinproperties.com to learn more about the company.

For further information please contact:

Nuria Salas, nsalas@tinkle.es, +34 629 56 84 71

Sarah Estébanez, sestebanez@tinkle.es, +34 636 62 80 41