COMPANY OVERVIEW NOVEMBER 2018

Transcription

1 COMPANY OVERVIEW NOVEMBER 2018

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 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 Value Creation Capital Structure Outlook 2018 Portfolio in detail Offices Shopping Centers Logistics Subsidiaries

4 MERLIN today Overview LARGEST AND MOST DIVERSIFIED SPANISH REIT Fast facts (1) 996 ASSETS (2) 11.7bn GAV 500m GRI 4.0m sqm GLA OWNED (2) 93% OCCUPANCY RATE 4.6% GROSS YIELD 5.9 years WAULT Offices Portfolio breakdown (1) 19% 23% 8% 19% 10% 19% 5% by GAV (3) 3% by GRI High Street retail Logistics Other (4) 49% 45% Shopping Centers Capital structure (5) > 5.3bn MARKET CAP 6.7bn / EPRA NAV PER SHARE 41.8% LTV 5.7 years AV. MATURITY 2.2% AV. INTEREST RATE BBB STANDARD & POOR S Baa2 MOODY S Company 9M2018 (1) Including disposals post 9M18 (2) Fully consolidated excluding assets where MERLIN holds a minority stake (3) GAV of land under development included in its respective category (offices and logistics) (4) Includes 3 hotels, non-core yielding assets and non-core land (5) Reported as of 9M18. LTV, average maturity and average interest rate pro-forma after disposals 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 Strategy Asset categories evolution (by GRI) (1) M 18 PF (2) 5 % 12 % 14 % 69 % 13 % 12% 6 % 37 % 20 % 7 % 3 % 47 % 21 % 13 % 3 % 46 % 32 % 23 % (1) 17 % Offices High Street Retail Shopping centers Logistics Other (3) (1) Passing GRI as of 31 December of each year (2) Pro-forma to include logistics WIP and office WIP (3) Other includes hotels, non core land and miscellaneous also includes rented residential ı 7 ı

8 POSITIONING

9 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 140 ASSETS 1,272 K SQM 5.4 BN GAV 223 M GRI WIP (3) 4 ASSETS 96 K SQM 0.4 BN GAV 24 M GRI 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 18 ASSETS 549 K SQM 2.3 BN GAV 116 M GRI TRES AGUAS 50% 1 ASSET 68 K SQM 9 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 46 ASSETS 1,101 K SQM 0.8 BN GAV 50 M GRI (4) WIP (3) 9 PROJECTS 493 K SQM 0.3 BN GAV 21 M GRI ZAL PORT 48.5% 49 ASSETS 615 K SQM 42 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 760 ASSETS 396 K SQM 2.2 BN GAV 94 M GRII (1) Excluding non-core land (2) Data for Minority Stakes is reported for 100% of the subsidiary (3) GAV: includes acquisition cost plus estimated Capex. GRI: total expected goss rents (4) Deducting ground lease expenses ı 9 ı

10 FY Positioning 16 Financial Results GAV summary (1) Gross yield 4.1% 5.1% 4.5% 6.4% - 4.6% 11,489 11,677 5,407 GAV ( million) Offices Shopping centers 2,258 High Street Retail 2,168 Logistics 782 Other (2) 875 TOTAL Minority stakes 188 TOTAL with minority stakes /sqm AG 4,250 4,225 5, ,616 Source: Company (1) Reported GAV as of 30/06/18 + Acquisitions at cost + Capex 3Q18 - Disposals post 9M18 (2) Other includes logistics WIP, land for development, non-core land and miscellaneous ı 10 ı

11 Positioning Occupancy and WAULT (1) 89% 91% 98% 99% 93% AVERAGE OCCUPANCY years AVERAGE WAULT Office Shopping centers Logistics High street retail (1) Reported as of 9M18 ı 11 ı

12 Positioning Trading update 9M 2018 GOOD PERFORMANCE AND PROSPECTS ACROSS THE BOARD Rent LfL YoY (1) sqm contracted Release spread (2) #contracts Office +0.3% 235, % 202 Shopping Centres +3.9% 71, % 189 High street retail +3.8% Logistics +8.2% 347, % 21 Other +14.7% TOTAL +2.8% 654, (1) EPRA standard porfolio in operation for 9M17 ( GRI) and 9M18 ( GRI). (2) LTM Change in rent in renewals and relets ı 12 ı

13 Positioning Dividend distribution evolution 2018 DPS GUIDANCE OF 0.50 REPRESENTS +9% GROWTH YOY Calculated on the basis of 80% of AFFO Payment in two instalments All cash +9% 0.50 p.s. ( per share) +15% 0.46 p.s. 235m 0.40 p.s. 216m 160m 0.19 p.s. (Eurmillion) 0,0 60m E Source: Company ı 13 ı

14 VALUE CREATION

15 Value creation Landmark I and Flagship Plans Landmark Plan I Torre Chamartín Torre Glòries Monumental Marqués de Pombal 3 Adequa Castellana 83 Alcalá 40 Diagonal 605 Plaza Ruiz Picasso Alfonso XI Flagship Plan Larios Arturo Soria Plaza El Saler Tres Aguas Porto Pi Artea X-Madrid Pending Capex (1) 291.9m Expected rents 42.6m (1) As from June 2018 ı 15 ı

16 Value creation Best II Plan Madrid-Pinto II B Madrid San Fernando II Madrid Azuqueca II Madrid- Azuqueca III Guadalajara Cabanillas Park II Guadalajara Cabanillas Park I F Guadalajara Cabanillas X Toledo Seseña Pending Capex 189.8m Expected rents 20.5m Additional GLA + 493K sqm Yield on Cost (1) 8.1% (1) Total investment of logistics WIP is 253.9m, out of which 189.8m are pending as from June 2018 ı 16 ı

17 Value creation Investment & divestment activity Investment activity Compelling, return-enhancing pipeline of ca. 500m seeking to expand in: - Logistics - Portugal + 28m expected rents Divestment activity + 550m non-core disposal program: - Testa Residencial - Aedas homes 1.7% - Selected non-core assets - 19m passing rents ı 17 ı

18 Value creation Potential rental growth Not considering market rental growth nor inflation Including 6.2 from projects delivered in 9M18 ( m) +32% Gross rents % 0.85 (2) FFO per share /12/17 Reversionary potential Landmark I Flagship Best II Net acquisitions & disposals balance Potential Annual Gross rents (1) Includes Torre Glòries, Torre Chamartín, Adequa and X-Madrid (2) Assuming an EBITDA margin of 84% over gross rents and 120m of net financial expense ı 18 ı

19 Value creation EXCELLENT VALUE CREATION December 2015 December 2016 Testa acquisition Combination with MVC April 2017 Contribution by banks September 2017 June 2018 Contribution by Acciona SLA cancellation MRL stake 100% 34.2% 16.2% 12.7% 17.0% MRL attributed NAV ( m) SIMULTANEOUSLY IMPROVING TESTA RESIDENCIAL PROFILE: THE LEADER IN THE MARKET #units 1,519 4,706 7,992 9,084 10,615 GRI ( m) GAV ( m) ,738 2,179 2,637 SOLD 321m Dispo price +3.0% Premium to transaction cut off date +1.6% Premium to MRL attributed NAV 155m Value creation (NAV m fees) ı 19 ı

20 CAPITAL STRUCTURE

21 Debt position Debt schedule and metrics 9M 2018 FURTHER LEVERAGE REDUCTION AND LIMITED EXPOSURE TO INTEREST RATE MOVEMENTS Unsecured loans 1, Unsecured bonds Secured bank loans , years average maturity 4 4Q ( million) 30/09/2018 (1) 31/12/2017 Net financial debt 4,883 4,904 LTV 41.8% 43.6% Average cost (fully loaded with hedging) 2.2% 2.2% Fixed interest rate 98.5% 98.6% Non-mortgage debt 8.1% 79% (1) Reported as of 9M18. LTV, average maturity and average interest rate pro-forma after disposals ı 21 ı

22 PORTFOLIO IN DETAIL

23 OFFICES

24 Offices Strategy 1 Leverage on leadership position to offer the widest range of options to clients 2 Concentrate capex on converting B buildings in A locations into A buildings in A locations Continue driving Empowering our Creation of occupancy growth, unique management collaborative most notably in new platform with 360 co-working spaces business areas in-house teams in selected assets ı 24 ı

25 Offices Overview PRIME SPACES IN BOTH CBD AND NBA OFFERING A WIDE VARIETY OF SOLUTIONS TO CLIENTS Fast facts Reversion in MVC assets Existing WIP Breakdown By geography By location By product # ASSETS GLA (sqm) 1,272 k 98 k GAV ( M) GRI ( M) 223 GROSS YIELD 4.1% OCCUPANCY 89% 5, (1) 24 (1 ) 6.1% By GAV By GAV Madrid 80% Prime + CBD 39% Barcelona 13% NBA 49% Lisbon 6% Periphery 12% Other Spain 1% By GAV Multi tenant 66% Single tenant 34% 1,028K MAD (75%) 249K BCN (18%) 70K LISBON (5%) Top 10 tenants (1) GAV: acquisition cost plus estimated Capex. GRI: total expected gross rents ı 25 ı

26 Offices Up-coming refurbishments Scope Budget % executed GLA (sqm) Monumental Full refurb (incl. SC) 28.0m 6% 22,387 Adequa Phase I Refurbishment of former Renault and integration in the complex 4.7m 100% 27,399 Marqués de Pombal Lobby + common areas + exterior terrace 1.6m 5% 12,460 Diagonal 605 Full refurb 8.6m 6% 14,795 ı 26 ı

27 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 undergoing GLA 37,614 sqm ERV 10.3m ERV YoC 6.5% Acquisition 142m Investment 15m Delivery Jul-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 near completion with good savings over original budget GLA 17,733 sqm ERV 3.9m ERV YoC 6.25% Acquisition 31.0m Investment 31.0m Delivery Apr-18 A tower with highest standards in the market & an additional building Located in the heart of Adequa business park GLA 41,670 sqm ERV 10.1m Capex 57.2m Delivery 2021 Torre Adequa ı 27 ı

28 Offices Madrid ı 28 ı

29 Offices 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. Castellana, Plaza Pablo Ruíz Picasso (Sollube) Location: CBD GLA: 11,650 sqm Location: CBD GLA: 15,254 sqm Location: CBD GLA: 31,576 sqm 7. Alcalá, Príncipe de Vergara, Alfonso XI, 6 Location: CBD GLA: 9,315 sqm Location: CBD GLA: 10,732 sqm Location: CBD GLA: 9,945 sqm 10. Pedro de Valdivia, Beatriz de Bobadilla, Princesa, 3 Location: CBD GLA: 6,721 sqm Location: CBD GLA: 16,979 sqm Location: CBD GLA: 17,810 sqm ı 29 ı

30 Offices Madrid (II) 13. Princesa, 5 Location: CBD GLA: 5,788 sqm 14. Ventura Rodríguez, 7 Location: CBD GLA: 10,071 sqm 15. Juan Esplandiú, Location: CBD GLA: 28,008 sqm 16. Eucalipto, 33 Location: CBD GLA: 7,185 sqm 17. Eucalipto, 25 Location: CBD GLA: 7,368 sqm 18. Santiago de Compostela, 94 GLA: 13,130 sqm 19. Parking Princesa * Location: CBD GLA: Ulises, GLA: 9,575 sqm 21. Josefa Valcárcel, 48 GLA: 19,893 sqm 22. Alvento GLA: 32,928 sqm 23. Cristalia GLA: 11,712 sqm 24. Trianón GLA: 18,400 sqm * Below ground surface has not taken into account for G.L.A. purposes ı 30 ı

31 Offices Madrid (III) 25. Ribera del Loira, Ribera del Loira, Partenón, GLA: 39,150 sqm GLA: 54,960 sqm GLA: 19,609 sqm 28. Partenón, Arturo Soria, Torre Chamartin (WIP) GLA: 18,343 sqm GLA: 3,206 sqm GLA: 16,639 sqm 31. Arturo Soria, Manoteras, Fuente de la Mora, 9 GLA: 6,615 sqm GLA: 7,515 sqm GLA: 4,482 sqm 34. Aquamarina 35. Vía Norte 36. María de Portugal, 9-13 GLA: 10,856 sqm GLA: 37,224 sqm GLA: 17,191 sqm ı 31 ı

32 Offices Madrid (IV) 37. Las Tablas 38. Av. de Burgos, Manuel Pombo Angulo, 20 GLA: 27,073 sqm GLA: 6,176 sqm GLA: 3,623 sqm 40. Miniparc Alcobendas, I-II GLA: 12,472 sqm 41. Av. de Bruselas, 24 GLA: 9,164 sqm 42. Av. de Bruselas, 26 GLA: 8,895 sqm 43. Av. de Bruselas, 33 GLA: 33,718 sqm 44. Av. de Europa, 1 Location: Periphery GLA: 25,211 sqm 45. María de Portugal I GLA: 17,139 sqm 46. Adequa GLA: 117,598 sqm (1) 47. Francisco Delgado, 9 Location: Periphery GLA: 9,896 sqm 48. Costa Brava, 2-4 Location: Periphery GLA: 16,000 sqm ı 32 ı

33 Offices Madrid (V) 49. Av. de Aragón, Ática, Ática XIX Location: Periphery GLA: 3,890 sqm Location: Periphery GLA: 36,722 sqm Location: Periphery GLA: 15,411 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 Location: Periphery GLA: 23,567 sqm Location: Periphery GLA: 32,665 sqm (1) GLA includes WIP projects in Adequa complex. If excluded, GLA would be 75,928 sqm ı 33 ı

34 Offices Barcelona ı 34 ı

35 Offices Barcelona (I) 1. Diagonal, Diagonal, Diagonal, 458 City: Barcelona Location: CBD GLA: 14,795 sqm City: Barcelona Location: CBD GLA: 9,664 sqm City: Barcelona Location: CBD GLA: 4,174 sqm 4. Balmes, Vilanova, Gran Vía Cortes Catalanas, 385 City: Barcelona Location: CBD GLA: 6,187 sqm City: Barcelona Location: CBD GLA: 16,494 sqm City: Barcelona Location: CBD GLA: 5,190 sqm 7. Citypark Cornella 8. WTC 6 9. WTC 8 City: Barcelona Location: Periphery GLA: 12,916 sqm City: Barcelona GLA: 14,461 sqm City: Barcelona GLA: 14,542 sqm 10. Av. Parc Logistic, (PLZFA) City: Barcelona GLA: 11,411 sqm 11. Av. Parc Logistic, (PLZFB) City: Barcelona GLA: 10,652 sqm 12. Diagonal, 211 (Torre Glòries) City: Barcelona Location: CBD GLA: 37,614 sqm ı 35 ı

36 Offices Barcelona (II) 13. Diagonal, Llull, 283 (Poblenou 15. Muntadas I City: Barcelona Location: CBD GLA: 5,934 sqm City: Barcelona GLA: 31,337 sqm City: Barcelona GLA: 24,380 sqm 16. Muntadas II 17. Sant Cugat I 18. Sant Cugat II City: Barcelona GLA: 3,783 sqm City: Barcelona GLA: 15,379 sqm City: Barcelona GLA: 10,008 sqm ı 36 ı

37 Offices Lisbon ı 37 ı

38 Offices Lisbon 1. Monumental 2. Marqués de Pombal, 3 3. Lisboa Expo City: Lisbon Location: CBD GLA: 16,892 sqm City: Lisbon Location: Prime GLA: 12,460 sqm City: Lisbon GLA: 6,740 sqm 4. Torre Lisboa 5. Central Office 6. Torre Zen City: Lisbon GLA: 13,715 sqm City: Lisbon GLA: 10,310 sqm City: Lisbon GLA: 10,207 sqm ı 38 ı

39 SHOPPING CENTERS

40 Shopping Centers Strategy 1 Consolidate position as a major player in dominant and urban malls in the Iberian peninsula 2 Concentrate capex on updating and repositioning existing core assets to better align with evolving consumer tastes 3 Continue to re-tenant malls by attracting newer, more dynamic retailers 4 Creating experience and embracing technology ı 40 ı

41 Shopping Centers Overview URBAN AND DOMINANT ASSETS OFFERING NATIONAL SCALE IN HIGH GDP/CAPITA AREAS Fast facts Reversion in MVC assets Breakdown Fully Consol. Tres Aguas (1) # ASSETS 18 1 By geography By type By size (2) GLA (sqm) 549 k 67 k GRI ( M) GAV ( M) 2,258 By GAV By GAV By GAV GROSS YIELD 5.1% OCCUPANCY 91% (3) ANNUAL FOOTFALL 108 m pax Madrid 15% Catalonia 14% Galicia 14% Valencia 11% Andalusia 7% Murcia 4% Lisbon 20% Other Spain 15% Urban 51% Dominant 33% Secondary 16% Large 36% Medium 24% Extra-large 33% Small 7% Top 10 tenants (1) 100% of Tres Aguas of which MERLIN owns 50% (2) As per the definition of AECC (Spanish Shopping Center Association) (3) Excluding X-Madrid and retail units recently acquired to be refurbished in Larios and Porto Pi ı 41 ı

42 Shopping Centers Up-coming refurbishments (1) Scope Budget % executed GLA (sqm) Delivery Arturo Soria Façade, acceses, installations, terraces and floors 5.1m 96% 6,959 Apr-19 Phase II Larios Full refurb 24.8m 32% 45,076 May-19 X-Madrid Full revamp 36.3m 28% 47,424 Jun-19 Porto Pi Full refurb 20.1m 7% 58,779 Dec-20 El Saler Extension (+2,700 sqm), façade and accesses 22.4m 8% 47,013 Jun-20 (1) Capex Budget and GLA include 100% of the asset, regardless of MERLIN s stake in the Owners Community ı 42 ı

43 Shopping Centers Spain & Portugal ı 43 ı

44 Shopping Centers Spain & Portugal (I) 1. Marineda 2. Arturo Soria 3. Centro Oeste City: A Coruña GLA: 176,000 sqm MRL GLA: 100,207 sqm GLA: 6,959 sqm MRL GLA: 5,974 sqm GLA: 33,000 sqm MRL GLA: 10,876 sqm 4. Tres Aguas 5. Leroy Merlin Getafe 6. X-Madrid GLA: 67,972 sqm (1) GLA: 10,007 sqm GLA: 47,424 sqm 7. Larios 8. Porto Pi 9. Artea City: Malaga GLA: 45,076 sqm MRL GLA: 37,843 sqm City: Mallorca GLA: 58,779 sqm MRL GLA: 32,578 sqm City: Bilbao GLA: 40,932 sqm MRL GLA: 24,323 sqm 10. Arenas 11. Vilamarina 12. La Fira City: Barcelona GLA: 31,918 sqm City: Barcelona GLA: 32,227 sqm City: Reus GLA: 29,013 sqm (1) MERLIN owns 50% ı 44 ı

45 Shopping Centers Spain & Portugal (II) 13. El Saler 14. La Vital Factory Bonaire + Medianas City: Valencia GLA: 47,013 sqm MRL GLA: 26,262 sqm City: Gandía GLA: 23,383 sqm MRL GLA: 20,868 sqm City: Valencia GLA: 22,143 sqm 17. Thader 18. Monumental 19. Almada City: Murcia GLA: 48,646 sqm City: Lisbon GLA: 5,495 sqm City: Lisbon GLA: 81,951 sqm MRL GLA: 60,049 sqm ı 45 ı

46 High Street Retail Branches Supermarkets Plaza de los Cubos Fnac Callao Torre Madrid ı 46 ı

47 High Street Retail Branches Supermarkets Plaza de los Cubos Location: Spain GLA: 302,078 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 47 ı

48 LOGISTICS

49 Logistics Strategy 1 National footprint to serve 100% of client needs 2 State-of-the-art facilities suitable for 3PLs and end-users (e-commerce) Diversified 3product offering: Cross docking, large cube, cold storage and hazard materials 4 Expand last mile solutions in the first isochrone of main cities ı 49 ı

50 Logistics Overview NATIONAL FOOTPRINT IN MAIN LOGISTICS HUBS Fast facts Reversion in MVC assets Existing # ASSETS GLA (Sqm) 1,101 k 469 k 493 k GAV ( m) GRI ( m) (2) GROSS YIELD 6.4% WIP Consolidated ZAL Port (1) Consolidated ZAL Port (1) +2.2m sqm under management 8.1% OCCUPANCY 98% 98% n.a k 10 (2) 100% Breakdown By reach By GAV National 46% Regional 31% Ports 19% Production related 3% By geography By tenant type By GAV 3PL multi-client 46% 3PL mono-client 30% End user 24% By GAV Basque Country 6% Sevilla 7% Catalonia 19% Madrid 64% Other Spain 5% Top 10 tenants (1) Figures reported for 100% of ZAL Port (2) Total expected gross rents. GAV includes acquisition cost plus estimated Capex ı 50 ı

51 Logistics 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 468k sqm of built warehouses, 400k sqm of land for potential development (122 k sqm under costruction) and more than 400k sqm of land let under leasehold schemes. Top tenants 30/06/2018 Revenues 24.7m EBITDA 12.6m Net debt 75.7m Occupancy (%) 98% Leasing activity Contracted 76,024 sqm Release spread +11.9% # Contracts 29 Ownership PLZF ZAL BCN ZAL Prat 48.5% 51.5% El Prat Airport Port of Barcelona ı 51 ı

52 Logistics WIP GLA (sqm) ERV ( m) Investment ( m) ERV YoC Madrid-Pinto II B 29, % Madrid-San Fernando II 34, % Guadalajara-Azuqueca II 98, % Guadalajara-Azuqueca III 51, % Guadalajara-Cabanillas Park I F 19, % Guadalajara-Cabanillas Park II 210, % Guadalajara-Cabanillas X 21, % Toledo-Seseña 28, % Total 493, % ı 52 ı

53 Logistics Spain ı 53 ı

54 Logistics Location of main hubs (Madrid) Name GLA (sqm) 1 Madrid - Coslada 28,491 2 Madrid - Coslada Complex 36,234 3 Madrid - San Fernando II 34,224 4 Madrid - San Fernando I 11,165 5 Madrid - Meco I 35,285 6 Madrid - Meco II 59,891 7 Guadalajara - Azuqueca I 27,995 8 Guadalajara - Azuqueca III 51,000 9 Guadalajara - Azuqueca II 98, Guadalajara - Alovera 38, Guadalajara - Cabanillas Park II 210, Guadalajara -Cabanillas I 70, Guadalajara - Cabanillas Park I 217, Guadalajara - Cabanillas X 21, Guadalajara - Cabanillas Y 15, Madrid - Getafe 16, Madrid - Getafe (Los Olivos) 11, Madrid - Getafe (Gavilanes) 39, Madrid - Pinto 70, Toledo - Seseña 28,541 ı 54 ı

55 Logistics Madrid (I) 1. Madrid Coslada GLA: 28,491 sqm 2. Madrid Coslada Complex GLA: 36,234 sqm 3. Madrid-San Fernando II GLA: 34,224 sqm 4. Madrid-San Fernando I GLA: 11,165 sqm 5. Madrid Meco I GLA: 35,285 sqm 6. Madrid Meco II GLA: 59,891 sqm 7. Guadalajara Azuqueca I 8. Guadalajara Azuqueca III 9. Guadalajara Azuqueca II City: Guadalajara City: Guadalajara Barcelona City: Guadalajara GLA: 27,995 sqm GLA: 51,000 sqm GLA: 98,000 sqm Azuqueca Plot Madrid 10. Guadalajara Alovera City: Guadalajara GLA: 38,763 sqm 11. Guadalajara Cabanillas Park II City: Guadalajara GLA: 210,678 sqm 12. Guadalajara Cabanillas I City: Guadalajara GLA: 70,134 sqm ı 55 ı

56 Logistics Madrid (II) 13. Guadalajara Cabanillas Park I City: Guadalajara GLA: 217,608 sqm 14. Guadalajara Cabanillas X City: Guadalajara GLA: 21,544 sqm 15. Guadalajara Cabanillas Y City: Guadalajara GLA: 15,075 sqm 16. Madrid-Getafe GLA: 16,242 sqm 17. Madrid - Getafe (Los Olivos) GLA: 11,488 sqm 18. Madrid Getafe (Gavilanes) GLA: 39,576 sqm 19. Madrid Pinto GLA: 70,116 sqm 20. Toledo - Seseña City: Toledo GLA: 28,541 sqm ı 56 ı

57 Logistics Location and access in main hubs (Barcelona) Stock Name GLA (sqm) 1 Barcelona - ZAL Port 590,700 2 Barcelona - Granada Penedés 16,758 3 Barcelona - Lliça del Vall 14,911 4 Barcelona - Sant Esteve 16,811 5 Barcelona - Castellbisbal 21,508 6 Barcelona - PLZF 132,554 ı 57 ı

58 Logistics Barcelona 1. Barcelona - ZAL Port City: Barcelona GLA: 527,954 sqm 2. Barcelona Granada Penedés City: Barcelona GLA: 16,758 sqm 3. Barcelona Lliça del Vall City: Barcelona GLA: 14,911 sqm 4. Barcelona Sant Esteve City: Barcelona GLA: 16,811 sqm 5. Barcelona Castellbisbal City: Barcelona GLA: 21,508 sqm 6. Barcelona PLZF City: Barcelona GLA: 132,554 sqm ı 58 ı

59 Logistics Rest of Spain 1. Zaragoza Pedrola 2. Zaragoza Plaza 3. Zaragoza - Plaza Logistics City: Zaragoza GLA: 21,579 sqm City: Zaragoza GLA: 20,764 sqm City: Zaragoza GLA:11,262 sqm 4. Valencia Almussafes 5. Vitoria - Jundiz 6. Vitoria - Jundiz II City: Valencia GLA: 26,613 sqm City: Vitoria GLA: 72,717 sqm City: Vitoria GLA:26,775 sqm 7. Sevilla - ZAL 8. Lisbon - Lisbon Land City: Sevilla GLA: 114,128 sqm City: Lisbon GLA: 642,540 sqm (buildable) ı 59 ı

60 Paseo de la Castellana, Madrid