MERLIN Properties estimates a distribution of at least 60 million euros in cash to its shareholders for FY2015

• A shareholder distribution of over 0.45 euros per share will be partly settled in the form of dividends and partly as a refund on the issue premium; payable in two installments in September 2015 and in 2016, once the General Shareholders Meeting approves 2015 annual accounts

• MERLIN Properties will become one of the Spanish stock exchange’s leading companies in terms of remuneration in cash to shareholders

• Within 6 months of listing, MERLIN Properties has invested 100% of the funds raised in the IPO in a portfolio of commercial real estate assets with a gross leasable area of over 680,000 square meters

• Taking into account the annualised financial year, the portfolio would have reached €128.3 million of gross rental income, with an average gross yield of 6.03%

MERLIN Properties estimates a cash distribution of over €60 million for 2015 financial year, as notified by the company to the CNMV (Spanish Stock Market Authority). This remuneration, which will be paid fully in cash, will amount to over €0.45 per share, distributed partly as a dividend and partly as a share premium refund.The shareholders remuneration for 2015 will be paid in two instalments, September 2015 and 2016, once the AGM approves the previous year’s accounts. With this payment, MERLIN Properties would deliver a remuneration rate that is highly competitive by international standards and above the IBEX 35 average.

2014 financial statements with a very positive result

MERLIN Properties has formulated the 2014 consolidated financial statements, with gross rental income of €56.6 million, EBITDA of €38.0 million and net profit of €49.7 million, in accordance with IFRS. Taking into account EPRA standards, 2014 EPRA earnings were €20.4 million. Finally, including the accounting depreciation of its assets, as required by Spanish GAAP, the individual net result for the group’s parent company is negative (€-3.1 million), which means that no dividend allocated to the 2014 financial year would be paid.

These results show the performance of the company from 30 June 2014 – when the company was listed on the stock exchange as a REIT to the end of the financial year. During such six month period, MERLIN Properties has deployed the total amount of funds obtained at IPO and has constructed a portfolio of high quality assets with a current market value of €2.23 billionand a gross leasable area of 680,045 square metres. Annualizing the six months period, the portfolio would have reached €128.3 million of gross rental income, with an average gross yield of 6.03%.

MERLIN Properties’ net financial debt (short- and long-term debt minus cash) at the end of the financial year was €859 million, representing a levarage ratio of 38.5%, and a net asset value of €1.35 billion (€10.5 per share). Most of the debt has a maturity profile beyond 9 years, with an average interest cost of almost 4% until the end of 2017 and 2.7% onwards. The company’s cash position at the end of 2014 was over €150 million.

With the recent financing of the Marineda shopping centre, the cash position of MERLIN is over €280 million, which the Company will use to continue its acquisition of high-quality assets consistent with the company’s stated strategy of creating a balanced portfolio focused on office buildings, high street retail, shopping centres and logistics facilities.