Merlin Properties SOCIMI S A : 6M 2021 Results Report

6 M 2 1 r e s u l t s r e p o r t

F o r t h e p e r i o d e n d e d o n J u n e 3 0 , 2 0 2 1

MERLIN Properties, the leading Socimi in the Spanish real estate market

01

Executive Summary 04

02	03
Business	Investments,
performance	divestments
	and capex
16	26

04	05
Portfolio	Financial
valuation	statement
30	34

06	07
Events	EPRA
post-closing	metrics
42	44

08

Stock Exchange evolution

46

APPENDIX

EPRA

metrics calculation 51

Reconciliation of the alternative performance measures 57

List

of assets 58

6 M 2 1 r e s u l t s r e p o r t

For the period ended on

June 30, 2021

01 Executive Summary

| 5

CONSOLIDATED PERFORMANCE

(2.2%)			(€ million)	6M21	6M20	YoY
Gross rents like-for-like YoY
	Total revenues	252.7	259.4	(2.6%)
(3.8%)			Gross rents	248.5	256.6	(3.2%)
	FFO per share YoY		Gross rents after	219.8	221.2	(0.6%)
				incentives
+0.6%
		Net rents after propex	196.1	198.7	(1.3%)
		& collection losses
	NTA per share YTD		Gross-to-net margin(1)	89.2%	89.8%
				EBITDA(2)	179.2	184.1	(2.7%)
• Covid-19 rent reliefs to tenants amount to € 19.6m		Margin	72.1%	71.8%
	in the period, recorded as a one-off expense (not
	straight lined)		FFO(3)	129.2	134.3	(3.8%)
• FFO per share of € 0.27, 3.8% decline compared		Margin	52.0%	52.3%
	to 6M20. We reconfirm the guidance for 2021		AFFO	124.4	125.4	(0.8%)
	(€ 0.56 per share)		Net earnings	190.3	70.9	+168.3%
• Flat valuation (+0.5% LfL vs FY20). Offices and
	net leases resilient. Logistics up. Shopping centers		(€ per share)	6M21	6M20	YoY
	and hotels down. NTA per share stands at € 15.55
		FFO	0.27	0.29	(3.8%)
	(+0.6% vs FY20) after paying a € 0.30 dividend		AFFO	0.26	0.27	(0.8%)
	during the semester
				EPS	0.41	0.15	+168.3%
				EPRA NTA	15.55	15.46	+0.5%

BUSINESS PERFORMANCE

(2.9%)		+1.0%	(2.0%)
	Offices	Logistics	S. Centers
Rents like-for-like YoY
+6.8%		+3.3%	+5.9%
	Offices	Logistics	S. Centers
	Release spread
	+56 bps			93.7%

Occupancy vs 31/03/2021

• Offices: 173,457 sqm contracted.

LfL of (2.9%) and release spread of +6.8%

• Logistics: 191,072 sqm contracted.

LfL of +1.0% and release spread of +3.3%

• Shopping centers: 16,271 sqm contracted. LfL of (2.0%) and release spread of +5.9%

1. Net of incentives
2. Excludes non-overhead costs items (€ 1.7m) plus LTIP accrual (€ 5.6m)
3. FFO equals EBITDA less net interest payments, less minorities, less recurring income taxes plus share in earnings of equity method
4. Portfolio in operation for the 6M20 (€ 244.7m of GRI) and for the 6M21 (€ 239.3m of GRI)

6M21	Contracted	Rent	Leasing	Occ. vs
activity	31/03/21
	sqm	€ m	Lfl	Release	Bps
	change	spread
Offices	173,457	111.5	(2.9%)	+6.8%	(20)
Logistics	191,072	32.2	+1.0%	+3.3%	+151
Shopping	16,271	57.2	(2.0%)	+5.9%	+42
centers
Net leases	n.a.	43.0	(0.1%)	n.m.	0
Other	n.a.	4.5	n.m.	n.m.	0
Total	380,800	248.5	(2.2%)		+56

Gross rents bridge

(€m)	LfL(4)
	(2.2%)
256.6			248.5
	(5.4)	(2.7)
6M20	Like-for-Like	Balance	6M21
	growth	acquisitions,
		disposals, other