MERLIN PROPERTIES COMPANY OVERVIEW OCTOBER 2017

Transcription

1 MERLIN PROPERTIES COMPANY OVERVIEW OCTOBER 2017

2 DISCLAIMER This presentation has been prepared by MERLÍN Properties, SOCIMI, S.A. (the Company) for informational use only. The information contained in this presentation does not purport to be comprehensive or to contain all the information that a prospective purchaser of securities of the Company may desire or require in deciding whether or not to purchase such securities, and has not been verified by the Company or any other person. The information contained in this document is subject to change without notice. Neither the Company nor any of affiliates, advisors or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of any information contained or referred to in this document. Each of the Company and its employees, officers, directors, advisors, agents or affiliates expressly disclaims any and all liabilities whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this presentation, the information contained or referred to therein, any errors therein or omissions therefrom or otherwise arising in connection with this presentation. Neither the Company, nor any of its affiliates, advisors or agents undertakes any obligation to provide the recipients with access to additional information or to update this document or to correct any inaccuracies in the information contained or referred to therein. Certain statements in this document regarding the market and competitive position data may be based on the internal analyses of the Company, which involve certain assumptions and estimates. These internal analyses may have not been verified by any independent sources and there can be no assurance that the assumptions or estimates are accurate. Additionally, certain information in this presentation may be based on management accounts and estimates of the Company and may have not been audited or reviewed by the Company s auditors, whereas the information on Metrovacesa S.A. and on certain competitors contained herein is based on publicly available information which has not been verified by the Company. Accordingly, recipients should not place undue reliance on this information. This information is provided to the recipients for informational purposes only and recipients must undertake their own investigation of the Company. The information providing herein is not to be relied upon in substitution for the recipient s own exercise of independent judgment with regard to the operations, financial condition and prospects of the Company. Neither this presentation nor any copy of it shall be taken, transmitted into, disclosed, diffused, send, published or distributed in the United States, Canada, Australia or Japan. The distribution of this presentation in other jurisdictions may also be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. In particular, any offer that might result from the transaction herein escribed will not be made, directly or indirectly, in the United States of America, or by use of mails, or by any means or instrumentality (including, without limitation, facsimile transmission, telephone and internet) of interstate or foreign commerce of, or any facilities of any national securities exchange of, the United States, Canada, Australia or Japan. The securities of the Company have not been and, should there be an offering, will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act) and, subject to certain exceptions, may not be offered or sold in the United States. The securities of the Company have not been and, should there be an offering, will not be registered under the applicable securities laws of any state or jurisdiction of Canada or Japan and, subject to certain exceptions, may not be offered or sold within Canada or Japan or to or for the benefit of any national, resident or citizen of Canada or Japan. THIS PRESENTATION DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER FOR SALE OR SOLICITATION OF ANY OFFER TO BUY ANY SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTION, NOR SHALL IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR COMMITMENT TO SELL OR PURCHASE SHARES. ANY DECISION TO SELL OR PURCHASE SHARES IN ANY OFFERING SHOULD BE MADE SOLELY ON THE BASIS OF PUBLICLY AVAILABLE INFORMATION. This presentation may include forwardlooking statements. These forwardlooking statements involve known and unknown risks, uncertainties and other factors, which may cause such actual results, performance or achievements, or industry results, to be materially different from those expressed or implied by these forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of the Company and the environment in which they expect to operate in the future. Forward-looking statements speak only as of the date of this presentation and the Company expressly disclaim any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation, any change in their expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. In reviewing this presentation, the recipient is agreeing to, and accepting, the foregoing restrictions and limitations. ı 2 ı

3 Contents Strategy Positioning Offices Shopping Centers Logistics Subsidiaries Value creation Capital Structure Appendix Governance Portfolio in detail

4 MERLIN today Overview LARGEST AND MOST DIVERSIFIED SPANISH REIT Fast facts 1,159 ASSETS (1) 10.5bn GAV (2) 467.3m GRI (3) 3,210 k sqm GLA OWNED (1) 93.1% OCCUPANCY RATE (4) 4.9% GROSS YIELD 6.7 years WAULT (4) 16.2% 19.6% Portfolio breakdown 6.9% 21.1% 8.8% 22.3% 7.4% by GAV (2) 2.7% by GRI (3) 48.4% 46.6% Offices Shopping Centers Other (4) High Street retail Logistics Capital structure > 5.0 bn MARKET CAP 5.6 bn / EPRA NAV PER SHARE 45.6% LTV 6.2 years AV. MATURITY 2.2% AV. INTEREST RATE BBB STANDARD & POOR S Baa2 MOODY S (1) Fully consolidated excluding assets where MERLIN holds a minority stake (2) GAV: appraised value as of June GAV of land under development included in its respective category (offices and logistics) (3) Annualized gross rents calculated as passing gross rent as of June 30, multiplied by 12. GRI includes fully consolidated assets (4) Includes 3 hotels, non-core yielding assets and non-core land ı 4 ı

5 STRATEGY

6 Strategy Strategy pillars A CLEARLY DEFINED STRATEGY INSPIRED BY THE BEST U.S. REIT PRACTICES Office Shopping Centers 40 % 20 % Breadth of prime space Madrid, Barcelona and Lisbon Core & Core Plus Spain & Portugal Urban or Dominant National scale Best governance practices Investment grade capital structure Logistics National footprint One-stop shop solution for 3PL One of the world s most cost efficient REIT s Dividend policy: 80% of AFFO High Street Retail 20 % 20 % High triple net cash flow Inflation multiplier ı 6 ı

7 POSITIONING

8 Positioning Fast facts #1 REIT IN OFFICE, HIGH STREET RETAIL AND LOGISTICS + #2 REIT IN SHOPPING CENTERS FULLY CONSOLIDATED (1) #1 Office Flexibility to offer multitenant or headquarter buildings Capacity to adapt to the needs of the tenant Existing 138 ASSETS 1,255 K SQM 4.8 BN GAV 218 M GRI WIP 3 ASSETS 96 K SQM 0.4 BN GAV (3) 24 M GRI (3) MINORITY STAKES (2) #2 Shopping Centers Mainly urban footprint in high GDP/ capita areas in Spain Reference landlord for top retailers Critical mass with retail brands 17 ASSETS 455 K SQM 1.7 BN GAV 92 M GRI TRES AGUAS 50% 1 ASSET 67 K SQM 10 M GRI #1 Logistics One-stop-shop solution for logistics operators wishing to operate across Spain Big footprint to match the rapid development of 3PL activity Existing 38 ASSETS 921 K SQM 0.6 BN GAV 41 M GRI WIP 13 ASSETS 580 K SQM 0.3 BN GAV (3) 24 M GRI (3) ZAL PORT 32% 43 ASSETS 431 K SQM 26 M GRI (4) #1 High Street retail Excellent conditions of BBVA lease agreement: triple net lease with 1.5x HICP annual uplift Optimization of retail space in office buildings 929 ASSETS 460 K SQM 2.2 BN GAV 104 M GRII (1) Excluding non-core land (2) Data for Minority Stakes is reported for 100% of the subsidiary (3) Total expected gross rents. GAV includes acquisition cost plus estimated Capex (4) Deducting ground lease expenses ı 8 ı

9 FY Positioning 16 Financial Results GAV summary Gross yield 4.6% 5.4% 7.0% 4.7% % 10,113 10,459 4,772 GAV ( million) Offices Shopping centers 1,694 Logistics 590 High Street Retail 2,208 Other 294 Land for development (incl WIP) (1) 422 Non-core land 132 TOTAL Equity method 346 TOTAL /sqm AG 3,803 3, ,798 2, ,371 Source: Company (1) Including Non income producing assets such us Logistic WIP and office WIP (Torre Charmatin and Torre Glories) ı 9 ı

10 Positioning Trading update 6M2017 GOOD PERFORMANCE AND PROSPECTS ACROSS THE BOARD Rent LfL YoY (1) sqm contracted Release spread (2) #contracts Occ. 30/06/17 Occupancy vs 31/12/16 (bps) Office +2.7% 236, % % +132 Shopping Centres +3.0% 71, % % +68 High street retail +0.9% - n.m % - Logistics +6.9% 183, % % +329 Other +11.2% - n.m % (36) TOTAL +2.6% 490, % +177 (1) EPRA standard porfolio in operation for the 6M16 and for the 6M17 (2) Change in rent in renewals and relets that have taken place in 6M16 (all portfolio) ı 10 ı

11 Positioning Dividend distribution evolution DPS GUIDANCE REPRESENTS +15% GROWTH YOY 2017 VS 2016 Calculated on the basis of 80% of AFFO Payment in two instalments All cash ( per share) 0.40 p.s m 0.46 p.s m New guidance +15% +4.6% 0.44 p.s. Previous guidance 9.4m (Guidance Update) 0.19 p.s m (Eurmillion) 0,0 60.0m E Source: Company ı 11 ı

12 OFFICES

13 Offices Overview PRIME SPACES IN BOTH CBD AND NBA OFFERING A WIDE VARIETY OF SOLUTIONS TO CLIENTS Fast facts Reversion in MVC assets # ASSETS GLA (sqm) 1,255 k 96 k GAV ( M) GRI ( M) Existing 218 (1) GROSS YIELD 4.8% OCCUPANCY 89% WIP 4, (2) 24 (2) 990K MAD (76%) 249K BCN (19%) 48 K LISBON (4%) Breakdown By geography By location By product By GAV By GAV By GAV Madrid 82% Barcelona 13% Lisbon 4% Other Spain 1% Top 10 tenants NBA 51% Multi tenant 63% Prime + CBD 37% Single tenant 37% Periphery 12% 35% GRI Value drivers Breadth of prime space in Madrid, Barcelona and Lisbon Reversion in MVC assets Capex program Selective development (1) Annualized gross rental income calculated as passing gross rents as of June 30, multiplied by 12 (2) GAV includes acquisition cost plus estimated Capex. Total expected gross rents ı 13 ı

14 Offices Developments One of the most iconic buildings in Barcelona, located in the prime area of Diagonal junction with Plaza de les Glòries New lobby almost completed, floors redesign works recently commenced GLA 37,614 sqm ERV 10.3m ERV YoC 6.5% Acquisition 142m Investment 15m Delivery Mar-18 Torre Glòries Torre Chamartín LEED Platinum tower, located in the junction between A-1 and M-30 AAA specifications, led by arquitect Miguel Oriol Works well advanced with good savings over original budget GLA 16,639 sqm ERV 3.9m ERV YoC 6.25% Acquisition 31.0m Investment 31.0m Delivery Mar-18 A tower with highest standards in the market Located in the heart of Adequa business park GLA 41,670 sqm ERV 10.1m Capex 57.2m Delivery 2021 Torre Adequa ı 14 ı

15 Offices Up-coming refurbishments Scope Budget % executed GLA (sqm) Delivery Pre-let Avda. Europa Full refurb 6.6m 100% 12,605 Sep % Puerta de las Naciones Full refurb 5.0m 86% 10,619 Dec % Eucalipto 33 Lobby + common areas 3.4m 11% 7,185 Oct-17 Initial phase Balmes Full refurb 1.8m 1% 6,187 Jun % Juan Esplandiu Façade + lobby + individual floors 1.8m 58% 28,008 Dec-17 84% ı 15 ı

16 SHOPPING CENTERS

17 Shopping Centers Overview URBAN AND DOMINANT ASSETS OFFERING NATIONAL SCALE IN HIGH GDP/CAPITA AREAS Fast facts Reversion in MVC assets Fully Consol. # ASSETS 17 1 GLA (sqm) 455 k 67 k GAV ( M) 1,694 GROSS YIELD 5.4% Tres Aguas (1) GRI ( M) OCCUPANCY 89% ANNUAL FOOTFALL 100 m pax Breakdown By geography By type By size (2) Catalonia 19% Galicia 18% Madrid 17% Valencia 13% By GAV By GAV By GAV Top 10 tenants Andalusia 8% Murcia 5% Lisbon 1% Other Spain 19% Urban 61% Secondary 21% Dominant 18% Large 43% Medium 31% Extra-large 18% Small 8% 28% GRI Value drivers Dominant and urban Capex Program Integration with e-commerce (1) 100% of Tres Aguas of which MERLIN owns 50% (2) Annualized gross rental icome calculated as passing gross rent as of June 30, multiplied by 12 ı 17 ı

18 Shopping Centers Up-coming refurbishments Scope Budget % executed GLA (sqm) Delivery Pre-let Marineda Sports area creation 1.6m 100% 3,402 Sep-17 91% El Saler Extension (+3,100 sqm), façade and accesses 13.1m 5% 23,086 Dec-18 n.a. Thader Nickelodeon park and common areas 8.9m 85% 5,096 Oct % Arturo Soria Façade, accesses, installations, lighting and floors 2.8m 16% 5,974 April-18 n.a. ı 18 ı

19 LOGISTICS

20 Logistics Overview NATIONAL FOOTPRINT IN MAIN LOGISTICS HUBS Fast facts Reversion in MVC assets Existing WIP # ASSETS GLA (Sqm) 921 k 580 k 431 k GAV ( m) (3) ZAL Port (1) Breakdown By geography By reach By tenant type By GAV By GAV By GAV GRI ( m) 41 (2) 24 (3) 26 GROSS YIELD 7.0% OCCUPANCY 99% 96% Madrid 57% Catalonia 24% Sevilla 8% Basque Country 5% Other Spain 6% National 44% Regional 28% Ports 24% Production related 4% 3PL multi-client 51% 3PL mono-client 19% End user 30% Top 10 tenants 54% GRI Value drivers National footprint to offer one stop shop solutions Location and access in main logistics hubs Turn-key and development program (1) Figures reported for 100% of ZAL Port (2) Annualized gross rental icome calculated as passing gross rent as of June 30, multiplied by 12 (3) Total expected gross rents. GAV includes acquisition cost plus estimated Capex ı 20 ı

21 Logistics Up-coming refurbishments Budget % executed GLA (sqm) Delivery Pre-let Meco II 29.4m 100% 59,891 Jul % Pinto I 5.8m 100% 11,098 Jul % Pinto II 20.2m 50% 59,017 Jul % Azuqueca II 47.4m - 98,000 Built to suit - Sevilla ZAL I 2.7m 10% 5,400 Jan % Madrid-Getafe (Gavilanes) 32.1m 100% 39,576 Dec-17 - ı 21 ı

22 Logistics Location of main hubs (Madrid) Stock Name GLA (sqm) 1 Madrid - Coslada 28,490 2 Madrid - Coslada Complex 36,234 3 Madrid - Meco I 35, Guadalajara - Azuqueca I Guadalajara - Alovera Guadalajara - Cabanillas I Guadalajara - Cabanillas Park I 27,995 38,763 70, , Madrid - Getafe 16, Madrid - Getafe (Los Olivos) 11,488 WIP Name GLA (sqm) 4 Madrid - Meco II 59, Guadalajara - Azuqueca II Guadalajara - Azuqueca III Guadalajara - Cabanillas Park II Madrid - Getafe (Gavilanes) 98,000 51, ,678 39, Madrid - Pinto 70, San Fernando I 11,165 ı 22 ı

23 Logistics Location and access in main hubs (Barcelona) Stock Name GLA (sqm) 1 Barcelona - ZAL Port 415,907 2 Barcelona - PLZF 131,003 3 Barcelona - Lliça del Vall 14,911 4 Barcelona - Sant Esteve 16,812 5 Barcelona - Granada Penedés 16,758 6 Barcelona - Castellbisbal 21,508 ı 23 ı

24 SUBSIDIARIES

25 Subsidiaries Testa Residencial CREATING THE NATIONAL LEADER Description Key Metrics National leader in the attractive rented residential market in Spain Mostly comprising free housing (77%) and Madrid representing the largest location by units (64%) Internally managed under MERLIN s supervision # Units 9,084 Free 6,991 Protected 2,093 GRI ( m) 70 Gross Yield 3.2% GAV ( m) 2,179 Net debt ( m) NAV ( m) 1,875.5 Ownership Other 13% 39% 26% 21% 1% ı 25 ı

26 Subsidiaries CILSA Description Key Metrics ZAL Port manages the logistics area of the Port of Barcelona. Conveniently located in Barcelona s primest logistics area, enjoys direct access to railway and port services, only 4 km away from El Prat airport. ZAL Port is divided into 2 main logistics areas (ZAL Prat and ZAL Barcelona) which together comprise over 431k sqm of built warehouses, 400k sqm of land for potential development and more than 400k sqm of land let under leasehold schemes. 31/06/2017 GRI (post canon) 26m Occupancy (%) 96% PLZF Top tenants Ownership ZAL BCN ZAL Prat 32.0% 63.0% 5.0% El Prat Airport Port of Barcelona ı 26 ı

27 VALUE CREATION

28 Value creation Delivered BALMES 236 6,187 sqm GLA 100% Occupancy 8m Capex mostly borne by tenant ( 1.8 by MRL) THE PLAN Transformation of a multi-tenant C asset in an excellent location into a B+ mono-tenant HQ ACTIONS Commercialization by internal leasing team Technical supervision by internal technical team Pre-let to Eugin, Spanish leader in fertility investigation Occupancy 59% 100% ( /sqm/m) % % ROI ı 28 ı

29 Value creation Delivered MARINEDA SPORTS AREA 3,402 sqm GLA 2.5m Total Cost THE PLAN Transformation of an unborn luxury brands area, with high vacancy, into a sports related area 91% Occupancy Succesful retenanting 0.45m Rents ACTIONS Redesign to improve visibility, vertical connections and interior design 1 st store in a shopping center in Spain Largest gym operation in NW Spain Change of flooring, lighting, furniture and digitalization 18% ROI Re-tenanting plan In-house project management 2 nd store in a shopping center in Spain 1 st store in Galicia ı 29 ı

30 Value creation Delivered MERLIN-CABANILLAS PARK I 202,607 sqm GLA Largest Park built since % Occupancy 8.2% Yield on cost 30% valuation uplift THE PLAN Development of a large logistics park in the main hub in Spain, with the highest specifications to meet the needs of 3PLs and e-commerce companies ACTIONS Forward purchase agreement with two developers Price set in an inflationary market No construction risk Leasing risk reduced through rental guarantees Project monitored in-house MRL leasing team led commercialization 100% Occupancy 7.8m Annual rents Top tier tenants ı 30 ı

31 Value creation EXCELLENT VALUE CREATION (+31% UPLIFT) December 2015 December 2016 April 2017 September 2017 Testa portfolio Testa + Metrovacesa portfolio Testa + Metrovacesa + banks portfolio Testa + Metrovacesa + banks + Acciona portfolio NAV ,377 1,816 MRL stake 100% 34.2% 16.2% 12.7% MRL attributed NAV SIMULTANEOUSLY IMPROVING TESTA RESIDENCIAL PROFILE: THE LEADER IN THE MARKET #units 1,519 4,706 7,992 9,084 GRI GAV ,738 2,179 ı 31 ı

32 Value creation Future growth drivers Delivery Year Torre Glòries 2018 Pending Capex Expected Rent Development Refurbishment Logistics WIP Torre Chamartin 2018 Adequa 2021 Offices Shopping centers Meco II 2017 Pinto I 2017 Pinto II 2017 Gavilanes 2018 Sevilla ZAL 2018 Azuqueca II 2018 Azuqueca III 2018 San Fernando m 24m 174m 12m 230m 24m Cabanillas Park II 2021 ı 32 ı

33 Cash flow Potential rental growth ( m) +22% /06/17 Annual Gross rents Reversionary (1) potential WIP & Development (2) Refurbishment Potential Annual Gross rents (1) Not considering any rental market growth nor inflation (2) Includes Torre Glòries, Torre Chamartín, Adequa and Logistic WIP ı 33 ı

34 CAPITAL STRUCTURE

35 Debt position Debt schedule and metrics 6M 2017 LONG-TERM, BALANCED MATURITY PROFILE Unsecured loans Unsecured bonds Secured bank loans Leasing BBB Baa2 30/06/17 31/12/16 Gross financial debt 5,216m 5,193m Cash 451m 722m Net financial debt 4,765m 4,471m GAV 10,459m 9,824m LTV 45.6% 45.5% Average cost 2.24% 2.26% Floating interest rate 1.6% 11.3% Average maturity (years) Liquidity 871m 949m Non-mortgage debt 75.8% 75.6% Source: Company ı 35 ı

36 APPENDIX

37 GOVERNANCE

38 Governance BoD composition BoD / Audit &Control / Remuneration & Nomination BOARD REDUCED TO 13 MEMBERS: 8 INDEPENDENT / 3 PROPIETARY / 2 EXECUTIVE Mr. Javier García-Carranza Non-Executive Chairman Mrs. Francisca Ortega Propietary Director Mr. José Ferrís Propietary Director Mr. Ismael Clemente CEO & Executive Vice-Chairman Mr. Miguel Ollero Executive Director Mrs. Pilar Cavero Independent Director Mr. Juan María Aguirre Independent Director Mrs. María Luisa Jordá Independent Director Chairman A&C Committee Mrs. Ana García Fau Independent Director Next year target: 11 members Mr. John Gómez Hall Independent Director Mr. Donald Johnston Independent Director Chairman A&R Committee Mr. Alfredo Fernández Independent Director Mr. Fernando Ortiz Independent Director Mrs. Mónica Martín de Vidales Secretary Mr. Ildefonso Polo del Mármol Vice-Secretary Appointments and Remuneration Committee Audit and Control Committee Independent Directors ı 38 ı

39 Governance Remuneration policy Plan INVESTOR ALIGNED, LONG - TERM ORIENTED INCORPORATING BEST MARKET PRACTICES Overheads reduction as from 2018 onwards OVERHEADS - HIGHER OF: onwards GRI 6% 5.75% 5.5% NAV 0.6% 0.575% 0.55% TOTAL OVERHEADS - RUNNING COSTS = BONUS POOL (1) Long - term incentive plan ( LTIP ) long-term oriented 3 years performance period LTIP linked to Share price (1/3) EPRA NAV (2/3) LTIP Caps, both globally and individually for Executive Directors Other best practices provisions Clawback + malus Non - compete Severance regime: 2x (fixed + STIP) Policy to own MERLIN shares: 3x fixed salary (1) Ultimate authority over the size and distribution of the STIP is the Nominations and Remunerations Committee and BoD ı 39 ı

40 Governance Remuneration policy LTIP LONGER-TERM ORIENTATION (3 YEARS) AND GLOBAL + EXECUTIVE DIRECTORS CAPS Pillars Plan for period only 3-year measurement period Metrics: 1/3 based on Share price TSR + 2/3 based on EPRA NAV TSR Hurdles on both Metrics Caps 1 ST HURDLE 2 ND HURDLE 31/12/16 31/12/19 TSR Rate 24% 31/12/16 31/12/19 TSR Rate 36% Absolute global Caps (for 3 year period): On Share price TSR: 37.5m On EPRA NAV TSR: 75.0m TOTAL: 112.5m Executive Directors Cap: 625% of fixed salary INCENTIVE (6 million shares, 1.26% fully diluted) 6% of TSR 9% of TSR ( 1.9 bn of return to shareholders generated) Maximum number of shares for Executive Directors: 2 million TSR = (Share Price or EPRA NAV per share End of Period) minus (Share Price or EPRA NAV per share Beginning of Period) plus (dividends per share in the period) TSR Rate = TSR divided by Share Price or EPRA NAV per share Beginning of Period ı 40 ı

41 Governance Remuneration policy Potential maximum dilution GLOBAL CAP REPRESENTS 1.26% OF POTENTIAL MAXIMUM DILUTION IN 3 YEARS, WHICH EQUALS 0.42% ANNUALIZED DILUTION TOTAL POTENTIAL MAXIMUM ANNUAL DILUTION IS ONE OF THE LOWEST IN EUROPE 1.02% 0.97% 1.86% 1.14% 0.42% LTIP 0.42% LTIP 0.6% Overheads & Salaries 0.55% Overheads & Salaries MERLIN Today MERLIN 2020 Spanish peers average European peers average Source: Company ı 41 ı

42 PORTFOLIO IN DETAIL

43 Portfolio in detail Office - Madrid ı 43 ı

44 Portfolio in detail Office - Madrid prime and CBD Castellana, 280 Eucalipto, 25 Plaza Castilla Castellana, 278 M-30 Ventas bullring Cuzco Bernabeu Stadium Eucalipto, 33 Lima Nuevos Ministerios Azca Avda. America Castellana, 259 Castellana, 93 Ppe. Vergara, 187 Gregorio Marañón Maria de Molina Emilio Castelar Príncipe de Vergara Bravo Murillo Pza. Trias Bertran, 7 Castellana, José Abascal Serrano Paseo de la Castellana Colón Calle Alcalá Retiro P. Valdivia, 10 Puerta de Alcalá J.M. Churruca Cibeles Alfonso XI, 6 Bank of Spain Madrid Town Hall V. Rodríguez, 7 Parliament Alcalá, 40 Princesa, 3 Princesa, 5 Gran Vía ı 44 ı

45 Portfolio in detail Office - Madrid (I) 1. Torre Castellana, Castellana, Castellana, 278 Location: CBD GLA: 21,390 sqm Location: CBD GLA: 16,918 sqm Location: CBD GLA: 14,468 sqm 4. Castellana, 93 (Cadagua) 5. Plaza Pablo Ruíz Picasso (Sollube) 6. Castellana, Location: CBD GLA: 11,651 sqm Location: CBD GLA: 31,576 sqm Location: CBD GLA: 15,254 sqm 7. Príncipe de Vergara, Alfonso XI, 6 9. Pedro de Valdivia, 10 Location: CBD GLA: 10,732 sqm Location: CBD GLA: 9,945 sqm Location: CBD GLA: 6,721 sqm 10. Beatriz de Bobadilla, Alcalá, Princesa, 3 Location: CBD GLA: 16,979 sqm Location: CBD GLA: 9,315 sqm Location: CBD GLA: 17,810 sqm ı 45 ı

46 Portfolio in detail Office - Madrid (II) 13. Princesa, Ventura Rodríguez, Juan Esplandiú, Location: CBD GLA: 5,788 sqm Location: CBD GLA: 10,071 sqm Location: CBD GLA: 28,008 sqm 16. Eucalipto, Eucalipto, Ulises, Location: CBD GLA: 7,185 sqm Location: CBD GLA: 7,368 sqm GLA: 9,575 sqm 19. Josefa Valcárcel, Arturo Soria, Arturo Soria, 128 GLA: 19,893 sqm GLA: 6,615 sqm GLA: 3,206 sqm 22. Manoteras, Fuente de la Mora, Santiago de Compostela, 94 GLA: 7,515 sqm GLA: 4,482 sqm GLA: 13,130 sqm ı 46 ı

47 Portfolio in detail Office - Madrid (III) 25. Costa Brava, Torre Chamartin (WIP) 27. Aquamarina Location: Periphery GLA: 16,000 sqm GLA: 16,639 sqm GLA: 10,856 sqm 28. Vía Norte 29. María de Portugal, María de Portugal, 1 GLA: 37,224 sqm GLA: 17,191 sqm GLA: 5,749 sqm 31. María de Portugal, María de Portugal, Las Tablas GLA: 5,749 sqm GLA: 5,641 sqm GLA: 27,073 sqm 34. Av. de Burgos, 210 GLA: 6,176 sqm 35. Manuel Pombo Angulo, 20 GLA: 3,623 sqm 36. Miniparc Alcobendas, I GLA: 9,195 sqm ı 47 ı

48 Portfolio in detail Office - Madrid (IV) 37. Miniparc Alcobendas, II GLA: 3,347 sqm 38. Av. de Bruselas, 24 GLA: 9,164 sqm 39. Av. de Bruselas, 26 GLA: 8,895 sqm 40. Av. de Bruselas, 33 GLA: 33,718 sqm 41. Av. de Europa, 1 Location: Periphery GLA: 25,210 sqm 42. Francisco Delgado, 9 Location: Periphery GLA: 9,896 sqm 43. Alvento GLA: 32,928 sqm 44. Cristalia GLA: 11,707 sqm 45. Trianón GLA: 18,400 sqm 46. Ribera del Loira, GLA: 39,150 sqm 47. Ribera del Loira, 60 GLA: 54,960 sqm 48. Partenón, GLA: 19,609 sqm ı 48 ı

49 Portfolio in detail Office - Madrid (V) 49. Partenón, Av. de Aragón, Ática GLA: 18,343 sqm Location: Periphery GLA: 3,890 sqm Location: Periphery GLA: 52,163 sqm 52. Cerro Gamos, El Plantío 54. Copenhague, 4-8 Location: Periphery GLA: 35,498 sqm Location: Periphery GLA: 7,068 sqm Location: Periphery GLA: 5,972 sqm 55. Alvia 56. Euronova 57. Adequa Location: Periphery GLA: 23,567 sqm Location: Periphery GLA: 32,665 sqm GLA: 120,814 sqm (1) (1) GLA includes WIP projects in Adequa complex. If excluded, GLA would be 75,928 sqm ı 49 ı

50 Portfolio in detail Office - Barcelona ı 50 ı

51 Portfolio in detail Office - Barcelona prime and CBD Ronda de Dalt B-20 Barrio de Gracia Sagrada Familia Pza. Glories Torre Glories Diagonal, 199 Diagonal Mar Balmes, Diagonal, 514 Diagonal, 458 Avenida Diagonal Vilanova Parc 22@ Parc Ciutadella Port Olimpic Pza F. Macia Paseo de Gracia Rambla de Cataluña Pza. Cataluña Catedral Barrio Gótico Barceloneta Pza. Mª Cristina Diagonal, 605 Gran Via de Las Cortes Catalanas Ronda Litoral B-10 Port Barcelona Pza. España Camp Nou Stadium Montjuïc Stadium ı 51 ı

52 Portfolio in detail Office - Barcelona (I) 1. Diagonal, Diagonal, Balmes, City: Barcelona Location: CBD GLA: 14,795 sqm City: Barcelona Location: CBD GLA: 9,664 sqm City: Barcelona Location: CBD GLA: 6,188 sqm 4. Diagonal, Diagonal, Diagonal, 211 (Torre Glòries) City: Barcelona Location: CBD GLA: 4,033 sqm City: Barcelona Location: CBD GLA: 5,934 sqm City: Barcelona Location: CBD GLA: 37,614 sqm 7. Llull, 283 (Poblenou 22@) 8. Vilanova, Gran Vía Cortes Catalanas, 385 City: Barcelona GLA: 31,337 sqm City: Barcelona Location: CBD GLA: 16,494 sqm City: Barcelona Location: CBD GLA: 5,190 sqm 10. Citypark Cornella 11. WTC WTC 8 City: Barcelona Location: Periphery GLA: 12,901 sqm City: Barcelona GLA: 14,461 sqm City: Barcelona GLA: 14,542 sqm ı 52 ı

53 Portfolio in detail Office - Barcelona (II) 13. Muntadas I 14. Muntadas II 15. Sant Cugat I City: Barcelona GLA: 24,380 sqm City: Barcelona GLA: 3,783 sqm City: Barcelona GLA: 15,379 sqm 16. Sant Cugat II 17. Av. Parc Logistic, (PLZFA) 18. Av. Parc Logistic, (PLZFB) City: Barcelona GLA: 10,008 sqm City: Barcelona GLA: 11,411 sqm City: Barcelona GLA: 10,652 sqm ı 53 ı

54 Portfolio in detail Office - Lisbon ı 54 ı

55 Portfolio in detail Office - Lisbon 1. Monumental 2. Torre Lisboa 3. Lisboa Expo City: Lisbon Location: CBD GLA: 16,892 sqm City: Lisbon GLA: 13,715 sqm City: Lisbon GLA: 6,740 sqm 4. Central Office City: Lisbon GLA: 10,310 sqm ı 55 ı

56 Portfolio in detail Shopping centers ı 56 ı

57 Portfolio in detail Shopping centers (I) 1. Marineda 2. Arturo Soria 3. Centro Oeste City: A Coruña GLA: 176,000 sqm MRL GLA: 100,187 sqm GLA: 6,959 sqm MRL GLA: 5,974 sqm GLA: 33,000 sqm MRL GLA: 10,876 sqm 4. Tres Aguas 5. Las Arenas 6. Artea GLA: 65,890 sqm (1) City: Barcelona GLA: 31,918 sqm City: Bilbao GLA: 24,323 sqm 7. Porto Pi 8. Larios 9. Monumental City: Mallorca GLA: 58,779 sqm MRL GLA: 26,559 sqm City: Malaga GLA: 45,076 sqm City: Lisboa GLA: 5,495 sqm 10. El Saler 11. La Vital 12. Thader City: Valencia GLA: 22,967 sqm City: Gandía GLA: 20,853 sqm City: Murcia GLA: 48,646 sqm (1) MERLIN owns 50% ı 57 ı

58 Portfolio in detail Shopping centers (II) 13. La Fira 14. Vilamarina 15. Factory Bonaire + Medianas City: Reus GLA: 29,013 sqm City: Barcelona GLA: 32,224 sqm City: Valencia GLA: 27,466 sqm MRL GLA: 21,504 sqm 16. Nassica 17. Opción GLA: 10,007 sqm GLA: 37,165 sqm ı 58 ı

59 Portfolio in detail Logistics - Spain ı 59 ı

60 Portfolio in detail Logistics - Madrid ı 60 ı

61 Portfolio in detail Logistics - Madrid (I) 1. Madrid Coslada 2. Madrid Coslada Complex 3. Madrid Meco I GLA: 28,490 sqm GLA: 36,234 sqm GLA: 35,285 sqm 4. Madrid Meco II 5. Guadalajara Azuqueca I 6. Guadalajara Azuqueca II City: Guadalajara Barcelona City: Guadalajara GLA: 59,891 sqm GLA: 27,995 sqm GLA: 98,000 sqm Azuqueca Plot Madrid 7. Guadalajara Azuqueca III City: Guadalajara GLA: 51,000 sqm 8. Guadalajara Alovera City: Guadalajara GLA: 38,763 sqm 9. Guadalajara Cabanillas I City: Guadalajara GLA: 70,134 sqm 10. Guadalajara Cabanillas Park I City: Guadalajara GLA: 202,600 sqm 11. Guadalajara Cabanillas Park II City: Guadalajara GLA: 210,678 sqm 12. Madrid-Getafe GLA: 16,242 sqm ı 61 ı

62 Portfolio in detail Logistics - Madrid (II) 13. Madrid-Getafe (Los Olivos) 14. Madrid Getafe (Gavilanes) 15. Madrid Pinto GLA: 11,488 sqm GLA: 39,576 sqm GLA: 70,115 sqm 16. San Fernando - I GLA: 11,165 sqm ı 62 ı

63 Portfolio in detail Logistics - Barcelona ı 63 ı

64 Portfolio in detail Logistics - Barcelona 1. Barcelona - ZAL Port 2. Barcelona PLZF 3. Barcelona Lliça del Vall City: Barcelona GLA: 415,907 sqm City: Barcelona GLA: 131,003 sqm City: Barcelona GLA: 14,911 sqm 4. Barcelona Sant Esteve City: Barcelona GLA: 16,812 sqm 5. Barcelona Granada Penedés City: Barcelona GLA: 16,758 sqm 6. Barcelona Castellbisbal City: Barcelona GLA: 21,508 sqm ı 64 ı

65 Portfolio in detail Logistics - Rest of Spain 1. Zaragoza Plaza 2. Zaragoza Pedrola 3. Valencia Almussafes City: Zaragoza GLA: 20,764 sqm City: Zaragoza GLA: 21,579 sqm City: Valencia GLA: 26,612 sqm 4. Vitoria - Jundiz 5. Sevilla - ZAL Sevilla 6. Lisbon - Lisbon Land City: Vitoria GLA: 72,717 sqm City: Sevilla GLA: 109,724 sqm City: Lisbon GLA: 642,540 sqm (buildable) ı 65 ı

66 Portfolio in detail High Street Retail Branches Supermarkets Plaza de los Cubos Fnac Callao Torre Madrid ı 66 ı

67 Portfolio in detail High Street Retail Branches Supermarkets Plaza de los Cubos Location: Spain GLA: 366,601 sqm Location: Cataluña GLA: 64,252 sqm Location: Madrid GLA: 13,479 sqm Callao, 5 Torre Madrid Location: Madrid GLA: 11,629 sqm Location: Madrid GLA: 4,393 sqm ı 67 ı

68 Paseo de la Castellana, Madrid