Merlin Properties SOCIMI S A : 3M 2024 Executive Summary

3M24 RESULTS

Trading Update

CONSOLIDATED PERFORMANCE

+3.8%

Gross rents like-for-like YoY

(4.4%)

FFO per share YoY

• Strong operating performance continues, with healthy rental growth (+3.8% LfL)
• FFO conversion impacted by the drag of data centers and higher financial costs (-4.4% FFO vs 3M23)
• Occupancy remains stable at 95.8%
• € 3.0m in non-core divestments with minimal investment activity. Further € 79.3m non-core disposals signed and expected to be executed in FY24 at a double digit premium to FY23 GAV
• S&P has upgraded MERLIN's credit rating to BBB+ on the basis of sustained lower leverage and expanding cash flow base
• No valuation during the period. NTA per share standing at € 15.20
• € 0.24 per share final 2023 dividend to be paid out on June 4th

(€ million)	3M24	3M23	YoY
Total revenues	127.3	121.4	4.9%
Gross rents	124.2	119.2	4.2%
Gross rents after	117.5	112.5	4.5%
incentives
Net rents after propex	104.1	100.9	3.2%
& collection losses
Gross-to-net margin(1)	88.6%	89.7%
EBITDA(2)	93.6	90.4	3.6%
Margin	75.4%	75.8%
FFO(3)	72.0	75.3	(4.4%)
Margin	58.0%	63.1%
AFFO	70.1	72.6	(3.5%)
Net earnings	64.8	66.2	(2.1%)

(€ per share)	3M24	3M23	YoY
FFO	0.15	0.16	(4.4%)
AFFO	0.15	0.15	(3.5%)
EPS	0.14	0.14	(2.1%)
EPRA NTA	15.20	15.82	(3.9%)

BUSINESS PERFORMANCE

Rents like-for-like YoY

+2.8%	+4.9%	+4.8%
Offices	Logistics	S. Centers
Release spread
+3.4%	+5.2%	+7.8%
Offices	Logistics	S. Centers

Occupancy vs 31/12/2023

3M24	Contracted	Rent	Leasing	Occ. vs
activity	31/12/23
	sqm	€m	LfL	Release	Bps
	change	spread
Offices	48,195	66.6	2.8%	3.4%	(30)
Logistics	47,429	20.9	4.9%	5.2%	(56)
Shopping	15,160	33.0	4.8%	7.8%	(20)
centers
Data	n.a.	0.4	n.a.	n.a.	n.a.
Centers
Other	n.a.	3.3	+8.0%	n.m.	(44)
Total	110,784	124.2	+3.8%		(37)

(37 bps)95.8%

• Offices: 48,195 sqm contracted.
  LfL of +2.8% and release spread of +3.4%
• Logistics: 47,429 sqm contracted.
  LfL of +4.9% and release spread of +5.2%
• Shopping centers: 15,160 sqm contracted. LfL of +4.8% and release spread of +7.8%

1. Net of incentives
2. Excludes non-overhead costs items (€ 1.9m) plus LTIP accrual (€ 0.7m)
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 3M23 (€ 115.1m of GRI) and for 3M24 (€ 119.5m of GRI)

Gross rents bridge

(€m)	LfL(4)
	+3.8%

119.2	+4.4	(0.6)	124.2
3M23	Like-for-Like	Balance	3M24
	growth	acquisitions,
		disposals & other

MERLIN Properties3M24 RESULTS Trading Update

OFFICES

Gross rents bridge						Rents breakdown
(€m)
				LfL(1)								Gross rents	Passing rent	WAULT
			+2.8%									3M24 (€ m)	(€/sqm/m)	(yr)
			+1.7			+2.1		66.6			Madrid	46.6	20.4	3.2
62.8						Barcelona	11.0	21.5	2.8
													Lisbon	8.3	21.9	4.0
													Other	0.6	11.9	6.2
		3M23	Like-for-Like	Balance	3M24
			growth	acquisitions,				Total	66.5	20.7	3.3
							disposals & other

Leasing activity

• Positive rental increase on renewals continues (+3.4%) despite the high CPI indexation captured in 2022-2023
• 1Q24 leasing activity highlights:
• • 9,315 sqm renewal with Ministerio de Interior (Spanish Government) in Alcalá 38-40, Madrid
  • 7,962 sqm new leases with Willis Tower Watson and Globant in Plaza Ruiz Picasso 11, Madrid
  • 2,641 sqm new lease with Emerson in PE Las Tablas, Madrid
  • 2,442 sqm renewal with UPS in PE Alvento, Madrid
  • 2,216 sqm new lease with Mango in Diagonal 514, Barcelona
  • 2,112 sqm renewal with IQVIA in Juan Esplandiu 11-13, Madrid
  • 1,541 sqm new lease with Grupo Serveo in PE Via Norte, Madrid

						LTM
sqm	Contracted	Out	In	Renewals(2)	Net	Release spread	# Contracts
Madrid	40,745	(15,753)	25,099	15,646	9,346	+3.2%	92
Barcelona	7,450	(4,039)	5,264	2,186	1,225	+3.9%	41
Lisbon	-	-	-	-	-	n.m.	n.m.
Total	48,195	(19,792)	30,363	17,832	10,571	+3.4%	137

Occupancy

• Resilient occupancy (92.2%)
• By markets, best performer this quarter has been, once again, Madrid NBA A-1

	Stock		1,151,668 sqm
	WIP		164,603 sqm
	Stock incl. WIP	1,316,271 sqm
	Occupancy rate(3)
				Change bps
	3M24	3M23
Madrid	90.7%	89.7%	+97
Barcelona	92.8%	95.9%	(309)
Lisbon	99.9%	100.0%	(15)
Other	100.0%	100.0%	-
Total	92.2%	92.2%	(1)

1. Portfolio in operation for 3M23 (€ 60.9m of GRI) and for 3M24 (€ 62.6m 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 extension, Torre Lisboa, PE Cerro Gamos 2, 3 & 5, Encinar, PLZFA and Josefa Valcarcel 48

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MERLIN Properties3M24 RESULTS Trading Update

LOGISTICS

Gross rents bridge

Rents breakdown

(€m)

LfL(1)

Gross rents

Passing rent

WAULT

+4.9%

+0.2

20.9

3M24 (€ m)

(€/sqm/m)

(yr)

19.7

+1.0

Madrid

13.4

4.3

3.8

Barcelona

3.0

7.8

2.5

Other

4.5

4.6

1.8

3M23

Like-for-Like

Balance

3M24

growth

acquisitions,

Total

20.9

4.7

3.2

disposals & other

Leasing activity

• Compelling organic performance (+4.9% LfL), in line with rental increases on renewals (+5.2% release spread)
• 1Q24 leasing activity highlights:
• • 47,429 sqm new lease with Pepco in A2-Cabanillas Park II B

						LTM
sqm	Contracted	Out	In	Renewals	Net	Release spread	# Contracts
Madrid	47,429	(2,850)	47,429	-	44,579	+2.2%	6
Barcelona	-	(3,892)	-	-	(3,892)	+12.7%	3
Other	-	(2,192)	-	-	(2,192)	n.m.	n.m.
Total	47,429	(8,934)	47,429	-	38,495	+5.2%	10

Occupancy

• The portfolio continues running virtually at full occupancy (98.4%)
• MERLIN efforts are now focused on transforming into pre-lets the HoTs for the landbank development

Stock	1,510,808 sqm		Occupancy rate
WIP(2)	557,350 sqm				bps
	3M24	3M23
Best II	167,038 sqm
Madrid	98.4%	96.0%	+237
Best III	390,312 sqm
Barcelona	95.7%	92.5%	+321
Stock incl. WIP	2,068,158 sqm
ZAL Port	757,003 sqm	Other	99.4%	100.0%	(60)
Stock managed	2,825,161 sqm		Total	98.4%	96.8%	165

1. Portfolio in operation for 3M23 (€ 19.6m of GRI) and for 3M24 (€ 20.6m of GRI)
2. WIP includes in progress and Landbank Best II & III

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MERLIN Properties	3M24 RESULTS Trading Update

LOGISTICS (CONT.)

INVESTMENTS, REFURBISHMENTS AND DEVELOPMENTS

Logistics development program (as of 31/03/2024)

• 525k sqm have been delivered to date achieving a YoC at delivery of 7.8%
• 557k sqm of Landbank, all of which has now reached ready to build status, distributed among selected locations in Madrid, Lisbon, Valencia and Seville

Logistics pipeline as of 3M24

	GLA	Pending capex	Expected GRI	YoC(1)
	(sqm)	(€m)	(€m)	(%)
Near term pipeline	141k	78	8.2	7.6%
(2025)
Medium term pipeline	98k	61	6.1	7.6%
(2026-2027)
Non-committed	318k	162	17.7	±7.0%
long-term pipeline(2)

• Ca. 40% of total landbank with HoT (113k sqm in the short term and 98k sqm in the medium term)

DATACENTERS

• MAD01-GET,BCN01-PLZF and BIO03-ARAData Centers fully operational and delivered to the anchor tenant, proving to market best-in-classtechnical specifications (1.15 PUE and 0.0 WUE).
• LIS01-VFXData Center license granted and power secured for a >90 MW AI Campus
• BIO02-ARA(76 MW) extension construction license expected before year end

Data Centers pipeline (up to 60 MW IT capacity) w/o Lisbon

Capex Invested	2024 Capex	+2025 Capex	Expected	Stabilized	Stabilized
stabilized GRI
as of 3M24	(€m)	(€m)	GRI YoC(1) (%)	NOI YoC (%)
(€m)
283	120	163	c.81	c.14.4%	>10%

• Fully licensed land and power available for an additional 200 MW of IT capacity
• The company continues studying strategic alternatives to fund the program

1. Including land cost
2. To be developed on a pre-let basis

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MERLIN Properties3M24 RESULTS Trading Update

SHOPPING CENTERS

Gross rents bridge			Rents breakdown
(€m)
							Gross rents	Passing rent	WAULT
		LfL(1)					3M24 (€ m)	(€/sqm/m)	(yr)
	+4.8%
				TOTAL	33.0		25.5	2.2
33.5	+1.5	(2.0)	33.0

					Footfall and tenant sales
					vs 3M23
3M23	Like-for-Like	Balance	3M24
	growth	acquisitions,
		disposals & other			Tenant sales	+8.1%
					Footfall	+6.6%
					OCR	11.6%

Leasing activity

• Footfall (+6.6% vs 3M23) and sales (+8.1% vs 3M23) setting new records and enabling rental growth while maintaining affordable rents (11.6% OCR in 3M24)
• LfL rental increase (+4.8%) continues performing satisfactorily
• 1Q24 leasing activity highlights:
• • 3,049 sqm new lease with Zara and 1,013 sqm new lease (extension) Zara Home and Oysho in Almada
  • 1,916 sqm renewal with Mercadona in Arenas
  • 1,877 sqm renewal with Altafit in Porto Pi
  • 1,011 sqm new lease with El Txiringuito in X-Madrid
  • 844 sqm renewal with Mango in La Vital
  • 557 sqm renewal with La Tagliatela in Saler

						LTM
sqm	Contracted	Out	In	Renewals	Net	Release spread	# Contracts
Total	15,160	(8,523)	7,643	7,518	(880)	+7.8%	80

Occupancy
• Occupancy stands at 96.0%	Stock			431,349 sqm
• Best performer this quarter has been	Tres Aguas(2)			67,940 sqm
X-Madrid	Stock with Tres Aguas		499,289 sqm
		Occupancy rate
		3M24	3M23	bps
	Total	96.0%	94.4%	+161

1. Portfolio in operation for 3M23 (€ 31.4m of GRI) and for 3M24 (€ 32.9m of GRI)
2. Tres Aguas at 100% allocation

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MERLIN Properties	3M24 RESULTS Trading Update

BALANCE SHEET

• LTV stands at 35.0%
• No further maturities until November 2026 after tackling May 2025 maturity with a mix of banking debt (secured and unsecured) and bond financing, under satisfactory terms
• S&P has upgraded MERLIN's credit rating to BBB+ on the basis of sustained lower leverage and expanding cash flow base

Corporate rating	Outlook
BBB+	Stable
Baa2	Positive

Ratios	31/03/2024	31/12/2023
LTV (Inc. TC)	35.0%	35.0%
Av. Interest rate	2.38%	2.38%
Av. Maturity (years)	4.9	5.1
Unsecured debt to total debt	90.6%	90.4%
Interest rate fixed	99.7%	99.7%
Liquidity position (€m)(1)	1,393	1,309

	€ million
GAV	11,314.8
Gross financial debt	4,626
Cash and equivalents(2)	(561)
Net financial debt	4,065
NTA	7,139

INVESTMENTS, DIVESTMENTS AND CAPEX

• € 3.0m in non-core divestments. During the quarter € 79.3m of disposals signed and expected to be executed in FY24 at a double digit premium to FY23 GAV for which € 10.4m in deposits have been received by May 2024
• Muted acquisitions during 3M24, limited to consolidating a 100% ownership in Plaza Ruiz Picasso extension, a c. 4,500 sqm building adjacent to our Plaza Ruiz Picasso development. Works are expected to begin in 3Q25
• Capex efforts continue focused on Best II & III and Digital Infrastructure Plan (Mega)
• Plaza Ruiz Picasso 11 continues welcoming tenants, with 7,962 sqm to Willis Tower Watson
  and Globant and 6,188 sqm to our coworking subsidiary (LOOM) with 50% already fitted-out and delivered and the rest already committed with end-users. 10,493 sqm for IBM were already delivered in December 2023

	Offices	Retail	Logistics	Data Centers	€ million
Acquisitions	Plaza Ruiz Picasso				8.1
extension
				Bilbao Arasur (Data Center)
Greenfield			A2-Cabanillas Park II Madrid-Getafe (Data Center)	25.5
development			Lisboa-Park	Barcelona PLZF (Data Center)
				Lisboa (Data Center)
	Plaza Ruiz Picasso	Callao 5
Refurbishments	PE Cerro Gamos			12.7
Marineda
	Josefa Valcarcel 48
Like-for-like portfolio					3.2
(Defensive Capex)(3)
Total					49.5

1. Includes cash (€ 545.3m) and treasury stock (€ 15.4m) and undrawned credit facilities (€ 832.4m) in 3M24
2. Includes cash (€ 545.3m) and treasury stock (€ 15.4m)
3. € 1.9m are capitalized in balance sheet and € 1.3m are expensed in P&L

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MERLIN Properties	3M24 RESULTS Trading Update

APPENDIX

1. Consolidated Profit and Loss
2. Consolidated Balance Sheet

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MERLIN Properties	3M24 RESULTS Trading Update

1. Consolidated Profit and Loss

(€ thousand)	31/03/2024	31/03/2023
Gross rents	124,208	119,247
Offices	66,622	62,832
Logistics	20,887	19,721
Shopping centers	32,956	33,519
Data Centers	418	-
Other	3,325	3,175
Other income	3,107	2,158
Total Revenues	127,315	121,405
Incentives	(6,661)	(6,741)
Total Operating Expenses	(29,627)	(25,357)
Propex	(13,428)	(11,612)
Personnel expenses	(8,865)	(8,604)
Opex general expenses	(4,764)	(4,084)
Opex non-overheads	(1,869)	(356)
LTIP Provision	(701)	(701)
Accounting EBITDA	91,027	89,307
Depreciation	(578)	(466)
Gain / (losses) on disposal of assets	429	2,515
Provisions	582	(7)
Change in fair value of investment property	-	-
EBIT	91,460	91,349
Net financial expenses	(25,391)	(19,707)
Debt amortization costs	(1,869)	(1,367)
Change in fair value of financial instruments	(49)	(6,039)
Share in earnings of equity method instruments	2,490	3,620
PROFIT BEFORE TAX	66,641	67,856
Income taxes	(1,854)	(1,683)
PROFIT (LOSS) FOR THE PERIOD RECURRING OPERATIONS	64,787	66,173
Minorities	-	-
PROFIT (LOSS) FOR THE PERIOD ATTRIBUTABLE	64,787	66,173

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MERLIN Properties	3M24 RESULTS Trading Update

2. Consolidated Balance Sheet

(€ thousand)

ASSETS	31/03/2024	EQUITY AND LIABILITIES	31/03/2024
NON CURRENT ASSETS	11,532,728	EQUITY	6,615,293

Intangible assets

Property, plant and equipment

Investment property

Investments accounted by the equity method

Non-current financial assets

Deferred tax assets

1,474	Subscribed capital	469,771
8,348	Share premium	3,541,379
10,684,996	Reserves	2,548,984
539,978	Results from previous exercises	97,610
220,359	Treasury stock	(15,440)
77,573	Other equity holder contributions	540
	Interim dividend	(93,673)
	Profit for the period	64,788
	Valuation adjustments	1,334
	NON-CURRENT LIABILITIES	5,393,088

		Long term debt	4,763,091
		Long term provisions	16,807
		Deferred tax liabilities	613,190
CURRENT ASSETS	674,373	CURRENT LIABILITIES	198,720

Trade and other receivables

Short term investments in group companies and associates

Short-term financial assets

Cash and cash equivalents

Other current assets

54,739	Short term debt	48,978
3,159	Trade and other payables	131,910
1,841	Other current liabilities	17,832

545,295

69,339

TOTAL ASSETS	12,207,101	TOTAL EQUITY AND LIABILITIES	12,207,101

APM: definitions and reconciliation of APMs to the latest audited financial accounts can be found on page 57 of https://ir.merlinproperties.com/wp-content/uploads/2024/02/Results-report-3M24-4-1.pdf

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Paseo de la Castellana, 257 28046 Madrid

[phone] [e-mail] www.merlinproperties.com