Merlin Properties SOCIMI S A : 9M 2022 Executive Summary

9M22 RESULTS

Trading Update

CONSOLIDATED PERFORMANCE

+7.0%

Gross rents like-for-like YoY

Net Leases have been reclassified as discontinued operations in 9M22 and 9M21 results have been restated(1)

+11.0%

FFO per share YoY

+5.3%	+8.7%
EPRA NTA per share YoY	TSR YTD

• Strong operating performance accross the board, with occupancy increase (+105 bps YoY), attractive release spread (>5%) and rental growth (+7.0% LfL)
• FFO per share of € 0.48 +11.0% increase vs 9M21. On track to exceed the revisited guidance for 2022 (>€ 0.60 per share)
• During the quarter, MERLIN delivered 1 logistics warehouse and 2 office buildings in WIP, all fully let, totalling 52,255 sqm. In October, Cabanillas Park I J was delivered to DSV (45,241 sqm)
• Data Centers program on track; Bilbao, Madrid and Barcelona under construction with client delivery in Q2-Q32023
• FY22 office occupancy guidance (91.5%) revisited by +100 bps to 92.5%
• No revaluation in the period. NTA per share standing at € 16.52 after the € 0.75 extraordinary dividend paid out in August

BUSINESS PERFORMANCE

Rents like-for-like YoY

+5.6%	+9.0%	+6.5%
Offices	Logistics	S. Centers
Release spread
+5.1%	+8.0%	+5.3%
Offices	Logistics	S. Centers

Occupancy vs 30/06/2022

(0.07%) 95.1%

• Offices: 175,733 sqm contracted.
  LfL of +5.6% and release spread of +5.1%
• Logistics: 223,486 sqm contracted.
  LfL of +9.0% and release spread of +8.0%
• Shopping centers: 48,481 sqm contracted. LfL of +6.5% and release spread of +5.3%

1. As a result of the reclassification of Net Leases as discontinued operations, income from Net Leases is only considered in Net earnings, FFO and AFFO metrics. PF metrics have been added for ease of comparison
2. Net of incentives
3. Excludes non-overhead costs items (€ 2.4m) plus LTIP accrual (€ 3.7m)
4. FFO equals EBITDA less net interest payments, less minorities, less recurring income taxes plus share in earnings of equity method
5. Portfolio in operation for 9M21 (€ 296.0m of GRI) and for 9M22 (€ 316.7m of GRI)

(€ million)	9M22	9M21	YoY
Restated
Total revenues	340.9	316.9	+7.6%
Gross rents	335.0	311.0	+7.7%
Gross rents after	316.8	275.1	+15.2%
incentives
Net rents after propex	279.7	239.1	+17.0%
& collection losses
Gross-to-net margin(2)	88.3%	86.9%
EBITDA(3)	249.4	213.2	+17.0%
Margin	74.4%	68.5%
FFO(4)	224.1	201.9	+11.0%
Margin	66.9%	64.9%
AFFO	214.4	195.0	+10.0%
Net earnings	567.1	254.4	+122.9%

(€ per share)	9M22	9M21	YoY
FFO		0.48		0.43	+11.0%
AFFO		0.46		0.42	+10.0%
EPS		1.21		0.54	+122.9%
EPRA NTA		16.52		15.69	+5.3%
9M22	Contracted	Rent	Leasing	Occ. vs
activity	30/06/22
	sqm	€m	Lfl	Release	Bps
	change spread
Offices	175,733	179.8	+5.6%	+5.1%	+27
Logistics	223,486	54.2	+9.0%	+8.0%	(57)
Shopping	48,481	91.3	+6.5%	+5.3%	+42
centers
Other	n.a.	9.7	+28.5%	n.m.	-
Total	447,700	335.0	+7.0%		(7)

Gross rents bridge

(€m)	LfL(5)
	+7.0%
311.0	+20.8	+3.2	335.0
9M21	Like-for-Like	Balance	9M22
	growth	acquisitions,
		disposals & other

MERLIN Properties9M22 RESULTS Trading Update

OFFICES

Gross rents bridge				Rents breakdown
(€m)
			LfL(1)						Gross rents	Passing rent	WAULT
			+5.6%						9M22 (€ m)	(€/sqm/m)	(yr)
					+1.6	179.8
169.4	+8.8			Madrid	124.9	19.7	3.5
									Barcelona	30.2	20.3	2.3
									Lisbon	22.8	20.6	4.1
		9M21	Like-for-Like	Balance	9M22		Other	1.9	11.1	7.3
			growth	acquisitions,
					disposals & other				Total	179.8	19.8	3.4

Leasing activity

• Compelling rental increase (+5.6%) and release spread (+5.0%)
• 3Q22 leasing activity highlights:
• • 9,135 sqm renewal with BBVA in PE Las Tablas, Madrid
  • 6,141 sqm renewals with Genomica, Oney and Ribera Salud in PE Alvento, Madrid
  • 1,843 sqm new leases with Izharia, Chelion and Döhler in PE Alvia, Madrid
  • 922 sqm new lease with W2M Corporate in PE Alvento, Madrid
  • 874 sqm new lease with Kurita Iberica in Sant Cugat I, Barcelona
  • 610 sqm new lease with EDDM in Eucalipto 33, Madrid

						LTM
sqm	Contracted	Out	In	Renewals(2)	Net	Release spread	# Contracts
Madrid	116,450	(27,572)	33,146	83,304	5,574	+3.7%	85
Barcelona	37,205	(13,532)	19,926	17,279	6,394	+8.2%	45
Lisbon	22,078	(3,753)	20,920	1,158	17,167	+22.1%	8
Total	175,733	(44,857)	73,992	101,741	29,135	+5.1%	138

Occupancy

• Occupancy increase (+27 bps vs 6M22) for the fifth consecutive quarter
• By markets, best performer this quarter has been Lisbon, once again fully occupied

	Stock		1,172,058 sqm
	WIP			142,753 sqm
	Stock incl. WIP	1,314,811 sqm
	Occupancy rate(3)
				Change bps
	9M22	6M22
Madrid	88.2%	87.9%	+35
Barcelona	93.2%	94.1%	(90)
Lisbon	100.0%	99.6%	+36
Other	100.0%	100.0%	-
Total	90.7%	90.4%	+27

1. Portfolio in operation for 9M21 (€ 155.9m of GRI) and for 9M22 (€ 164.7m of GRI)
2. Excluding roll-overs
3. MERLIN policy excludes buildings under complete refurbishment. Buildings excluded this period are Plaza Ruiz Picasso, Plaza Ruiz Picasso II, Atica 1, PE Cerro Gamos, PLZFA, PE Atica XIX D and Adequa 4 & 7

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MERLIN Properties9M22 RESULTS Trading Update

LOGISTICS

Gross rents bridge				Rents breakdown
(€m)
			LfL(1)						Gross rents	Passing rent	WAULT
			+9.0%
									9M22 (€ m)	(€/sqm/m)	(yr)
48.7	+4.3	+1.2	54.2
	Madrid	33.9	4.2	3.5
								Barcelona	7.8	7.0	2.5
								Other	12.5	4.0	3.1
		9M21	Like-for-Like	Balance	9M22
			growth	acquisitions,				Total	54.2	4.4	3.3
				disposals & other

Leasing activity

• Strong organic performance (+9.0% LfL) fueled by occupancy gains, indexation and reversionary potential captured
• 3Q22 leasing activity highlights:
• • 47,211 sqm new lease with Logista in A2-Cabanillas Park II A, Madrid
  • 12,618 sqm renewal with Pallex in A2-San Fernando II, Madrid
  • 4,544 sqm new leases with Dia and Tamdis in Sevilla ZAL, Sevilla
  • 3,721 sqm new lease with Masiques in PLZF, Barcelona
  • 2,710 sqm new lease with Transmec de Bortoli in A2-Coslada Complex, Madrid

						LTM
sqm	Contracted	Out	In	Renewals	Net	Release spread	# Contracts
Madrid	164,958	(13,808)	93,310	71,648	79,502	+4.3%	5
Barcelona	6,446	(13,275)	6,446	-	(6,829)	+12.2%	2
Other	52,082	(4,544)	25,308	26,774	20,764	+19.1%	4
Total	223,486	(31,627)	125,064	98,422	93,437	+8.0%	11

Occupancy

• Virtual full occupancy at both MERLIN (98.6%) and ZAL Port (99.6%)

Stock	1,439,064 sqm		Occupancy rate
WIP(2)	650,020 sqm				bps
	9M22	6M22
Best II	259,708 sqm
Madrid	98.8%	99.7%	(92)
Best III	390,312 sqm
Barcelona	93.6%	93.6%	-
Stock incl. WIP	2,089,085 sqm
ZAL Port	736,217 sqm	Other	100.0%	100.0%	-
Stock managed	2,825,302 sqm		Total	98.6%	99.2%	(57)

1. Portfolio in operation for 9M21 (€ 47.3m of GRI) and for 9M22 (€ 51.6m of GRI)
2. WIP includes in progress and Landbank Best II & III

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MERLIN Properties	9M22 RESULTS Trading Update

LOGISTICS (CONT.)

INVESTMENTS, REFURBISHMENTS AND DEVELOPMENTS

Best II (as from 30/09/2022)

• 56% of Best II has been delivered achieving a 7.9% YoC
• Assets delivered YTD: Cabanillas Park I H and Cabanillas Park II A, totalling 70,488 sqm

	GLA (sqm)	ERV (€m)	Investment (€m)	ERV YoC
A2-Cabanillas Park I J	45,241	1.8	26.9	6.9%
A2-Cabanillas Park II B	47,342	2.1	25.7	8.1%
In progress	92,583
A2-Cabanillas Park II	116,125	5.1	62.8	8.1%
A2-Azuqueca III	51,000	2.3	30.1	7.7%
Landbank	167,125

Best III (as from 30/09/2022)

• 22% of Best III has been delivered achieving a 8.0% YoC
• No assets delivered YTD

	GLA (sqm)	ERV (€m)	Investment (€m)	ERV YoC
Lisbon Park	179,693	8.4	118.1	7.1%
Sevilla ZAL WIP	15,122	1.6	18.0	9.0%
A2-San Fernando III	98,924	5.1	54.9	9.3%
Valencia	96,572	4.4	56.2	7.8%
Landbank	390,312

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MERLIN Properties	9M22 RESULTS Trading Update

SHOPPING CENTERS

Gross rents bridge

(€m)

LfL(1) +6.5%

85.3	+5.6	+0.4	91.3
	9M21	Like-for-Like	Balance	9M22
		growth	acquisitions,
			disposals & other

Rents breakdown

	Gross rents	Passing rent	WAULT
	9M22 (€ m)	(€/sqm/m)	(yr)
MERLIN	91.3	22.2	2.2

Footfall and tenant sales(2)

	vs 9M21	vs 9M19
Tenant sales	+34.8%	+1.5%
Footfall	+24.7%	(9.2%)
OCR(3)	12.0%

Leasing activity

• Tenant sales above pre-Covid levels both on a YTD (+1.5% vs 9M19) and on a monthly basis (+6.1% vs September 2019)
• OCR at very healthy levels (12.0%)
• 3Q22 leasing activity highlights:
• • 3,229 sqm new lease (extension) with Zara in Saler
  • 1,533 sqm new lease with Ikono in Arenas
  • 932 sqm new lease with Bershka in Saler
  • 566 sqm new lease with Zara Home in Porto Pi
  • 450 sqm new lease with Skechers in Bonaire
  • 433 sqm new lease with Pepco in Saler

						LTM
sqm	Contracted	Out	In	Renewals	Net	Release spread	# Contracts
Total	48,481	(19,303)	21,790	26,691	2,487	+5.3%	188

Occupancy

• Occupancy continues increasing (+42 bps vs 6M22), reaching all time high figures for the fourth consecutive quarter, proving the resiliency of MERLIN´s portfolio
• Best performer this quarter has been Saler

Stock			461,431 sqm
Tres Aguas(4)			67,940 sqm
Stock with Tres Aguas		529,371 sqm
	Occupancy rate
	9M22	6M22	bps
Total	94.8%	94.3%	42

1. Portfolio in operation for 9M21 (€ 85.3m of GRI) and for 9M22 (€ 90.9m of GRI)
2. Excluding X-Madrid, opened in November 2019
3. Including the impact of the commercial policy
4. Tres Aguas at 100% allocation

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