JUNE 2017 MERLIN PROPERTIES COMPANY OVERVIEW

Transcription

1 JUNE 2017 MERLIN PROPERTIES COMPANY OVERVIEW

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 Capital Structure Appendix Governance Portfolio in detail

4 MERLIN today Overview LARGEST AND MOST DIVERSIFIED SPANISH REIT Fast facts 1,157 ASSETS (1) 10.1 bn GAV (2) m GRI (3) 3,159 k sqm GLA OWNED (4) 92.3% OCCUPANCY RATE (4) 5.1% GROSS YIELD 7.1 years WAULT (4) 16.1% 19.9% Portfolio breakdown 6.3% 21.9% 8.3% 22.4% 7.5% by GAV (2) 2.6% by GRI (3) 48.3% 46.8% Offices Shopping Centers Other (5) High Street retail Logistics Capital structure > 5.0 bn MARKET CAP 5.3 bn / EPRA NAV PER SHARE 45.6% LTV (6) 6.6 years AV. MATURITY (7) 2.2% AV. INTEREST RATE (7) BBB STANDARD & POOR S Baa2 MOODY S (1) 1,157 fully owned assets and 53 assets managed under equity method (2) GAV: appraised value as of December capex + acquisitions at cost - disposals. GAV of land under development included in its respective category (offices and logistics) (3) Annualized gross/net rents calculated as passing gross/net rent as of March 31, multiplied by 12. GRI and net rents include fully consolidated assets (4) Calculated for income producing consolidated assets (5) Includes 3 hotels, non-core yielding assets and non-core land (6) 1Q17 reported net financial debt divided by GAV (7) Proforma figures as at 31/03/2017 after May 2017 bond issuance and potential debt repayments 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 Dividend policy: 80% of AFFO One of the most cost efficient REIT s 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 4.6 BN GAV 218 M GRI WIP 2 ASSETS 54 K SQM 0.2 BN GAV 15 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 1.6 BN GAV 93 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 37 ASSETS 870 K SQM 0.5 BN GAV 38 M GRI WIP 10 ASSETS 368 K SQM 0.1 BN GAV 17 M GRI (3) ZAL PORT 32% 42 ASSETS 416 K SQM 24 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 930 ASSETS 460 K SQM 2.2 BN GAV 103 M GRII (1) Not including other, land for future development (Adequa) and non-core land (2) Data for Minority Stakes is reported for 100% of the subsidiary (3) Total expected gross rents (4) Gross annual rent as of December 31st 2016, deducting ground lease expenses ı 8 ı

9 FY Positioning 16 Financial Results GAV summary Gross yield 4.8% 5.7% 4.7% 7.3% 5.1% 9,717 10,052 4,572 GAV (1) ( million) Offices Shopping centers 1,614 High Street Retail 2,203 Logistics 529 Other (2) 798 TOTAL Minority stakes 334 TOTAL with minority stakes /sqm AG 3,644 3,546 4, Source: Company (1) GAV: appraised value as of December capex + acquisitions at cost - disposals (2) Other includes logistics WIP, office WIP, hotels, land for development, non-core land and miscellaneous ı 9 ı

10 Positioning Occupancy and WAULT OCCUPANCY IMPROVEMENT POTENTIAL AFTER MVC Occupancy and WAULT per asset type (1) 88.6% 90.1% 100.0% % 92.3% MERLIN av. Occupancy MERLIN av. WAULT Offices Shopping centers High street retail Logistics Source: Company (1) WAULT by rents means the weighted average unexpired lease term, calculated as of 31 March 2017 ı 10 ı

11 Positioning MVC occupancy performance since acquisition SIGNIFICANT HIKE IN MVC OCCUPPANCY OFFICES SHOPPING CENTERS (1) 84.7% 86.9% 84.1% 86.2% 87.8% 77.9% At acquisition 31/12/ /03/2017 At acquisition (1) 31/12/ /03/2017 Source: Company (1) Excluding Opcion shopping center ı 11 ı

12 Positioning Maturity profile BALANCED MATURITY PROFILE Combined lease maturity profile (%GRI) (1) % 5.0% 1.2% 0.2% 17% 0.1% % 3.4% 1.4% 1.5% 11% 0.4% % 2.7% 1.2% 0.1% 0.6% 13% % 2.1% 1.2% 0.6% 9% > % 15.3% 8.5% 8.7% 1.2% 50% Office Shopping Centers Logistics High Street retail Other (1) Maturity profile as from 31/12/2016 ı 12 ı

13 Positioning Tenant base DIVERSIFIED SOUND TENANT BASE Top-20 tenants 19.4 % GRI 26.5 % GRI 20 % GRI Triple net cash flow Compulsory term until 2039 Annual uplift of 1.5x HICP Deflation protected ı 13 ı

14 Positioning Trading update Q GOOD PERFORMANCE AND PROSPECTS ACROSS THE BOARD Rent LfL YoY (1) Release spread (2) sqm contracted #contracts Occupancy QoQ (bps) Office +2.8% +3.6% 178, Shopping Centres +4.9% +9.7% 30, High street retail +0.9% n.m Logistics +3.7% +8.0% 67, Other +5.7% n.m TOTAL +2.6% +102 (1) EPRA standard porfolio in operation for the 1Q16 and for the 1Q17 (2) Change in rent in renewals and renegotiations that have taken place in 1Q17 (all portfolio) ı 14 ı

15 Positioning Dividend distribution evolution DPS GUIDANCE REPRESENTS +10% GROWTH YOY 2017 VS 2016 Calculated on the basis of 80% of AFFO Payment in two instalments All cash Minimun guidance 0.40 FY 2017 distribution management guidance MINIMUM 0.44 (2) m m 0.04 Ahead of guidance ( 20m) m , E per share Interim Final/complementary (1) Source: Company (1) Following approval by AGM of FY accounts (2) Guidance given reflects the hotels disposal ( 0.07 per share FFO) and maintenance capex ( 0.03 per share) ı 15 ı

16 OFFICES

17 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 54 k GAV ( M) GRI ( M) (1) Existing 218 GROSS YIELD 4.8% OCCUPANCY 89% WIP 4, K MAD (76%) 249K BCN (19%) 48 K LISBON (4%) Breakdown By geography By location By product By GAV (2) By GAV (2) By GAV Madrid 80% Barcelona 16% Lisbon 3% Other Spain 1% Top 10 tenants NBA 54% Prime + CBD 35% Periphery 11% Multitenant 63% Single tenant 37% 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 March 31, multiplied by 12 (2) Including acquisitions and disposals post 1Q17 ı 17 ı

18 Offices WIP Torre Glòries One of the most iconic buildings in Barcelona Located in the prime area of Diagonal junction with Plaza de les Glòries Originally designed by Jean Nouvel, ground level plus 34 floors, plus an auditorium GLA 37,614 sqm ERV 10.3m ERV YoC 6.5% Acquisition 142m Investment 15m Delivery Mar-18 GLA 16,639 sqm Torre Chamartín LEED Platinum tower, located in the junction between A-1 and M-30 AAA specifications, led by arquitect Miguel Oriol ERV 4.3m ERV YoC 6.2% Acquisition 31.0m Investment 38.0m Delivery Mar-18 ı 18 ı

19 Offices Refurbishments Scope Budget % executed GLA (sqm) Delivery Pre-let Avda. Europa Full refurb 6.6m 85% 12,605 Sep % Puerta de las Naciones Full refurb 5.0m 80% 10,619 Dec % Eucalipto 33 Lobby and common areas 3.4m 10% 7,185 Oct-17 Initial phase Balmes Full refurb 2.8m 0% 6,187 Jun % ı 19 ı

20 SHOPPING CENTERS

21 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) 1,614 GROSS YIELD 5.7% Tres Aguas (1) GRI ( M) OCCUPANCY 90% ANNUAL FOOTFALL 100 m pax Breakdown By geography By type By size (2) Madrid 21% Galicia 19% Catalonia 17% Valencia 13% Top 10 tenants By GAV By GAV By GAV Andalucía 7% Murcia 4% Lisbon 1% Other Spain 18% Urban 63% Dominant 19% Secondary 18% Very large 19% Large 44% Medium 28% Small 9% 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 March 31, multiplied by 12 ı 21 ı

22 Shopping Centers Capex program Marineda A Coruña El Saler Valencia Thader Murcia Arturo Soria Madrid Creation of an sports area with an extension of 3,402 of GLA 88% of the GLA pre-let Capex: 1.6 m 3,100 sqm GLA extension, including 450 sqm of new terraces overlooking Ciudad de las Artes complex Full refurbishment of façade plus improvement of accesses General improvement of common areas Capex: 13.1 m Works to accommodate a themed park by Nickelodeon (Parques Reunidos) in a brand new concept General refurbishment of common areas Capex: 8.9 m Creation of iconic entrances and improvement of external façades Improvement of exterior terraces and foodcourt experience Refurbishment of interior design (floors, lights, signage) Capex: 2.8 m Larios Málaga Full refurbishment of complex, including floors, façades, parking, lighting and elevators Capex: 9.9 m ı 22 ı

23 LOGISTICS

24 Logistics Overview NATIONAL FOOTPRINT IN MAIN LOGISTICS HUBS Fast facts Reversion in MVC assets Existing WIP ZAL Port (1) # ASSETS Breakdown By geography By reach By tenant type GLA (Sqm) 870 k 368 k 416 k GAV ( m) By GAV By GAV By GAV GRI ( m) (2) GROSS YIELD 7.3% OCCUPANCY 97% 96.7% Madrid 52% Barcelona 26% Sevilla 8% Basque Country 7% Other Spain 7% National 39% Regional 31% Ports 26% Production Related 4% 3PL multi-client 47% 3PL mono-client 34% End user 19% LAND FOR ADDITIONAL BUILDABILITY (Sqm) 1,376 k c. 400 k 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 March 31, multiplied by 12 ı 24 ı

25 Logistics WIP HIGH RETURNS ACHIEVED IN A PROGRAM THAT WILL INCREASE FOOTPRINT BY 70% GLA COSTS FUNDING RENT Logistics WIP Projects # Total (sqm) Pre-let (sqm) % pre-let Land ( m) Building ( m) Total ( m) Already invested ( m) 2017 ( m) 2018 ( m) ERV ( m) ERV Yield Cabanillas (Nave E) 1 49, % Meco II 1 59, % Pinto I 1 11,098 11, % % Pinto II 1 59,017 59, % % Sevilla ZAL I 1 5,400 5, % % Azuqueca II 1 98, % Gavilanes 2 39, % San Fernando I 1 11, % San Fernando II 1 34, % Total Logistic WIP Projects ,161 75, % % +17 m of additional annual rents 9.1% Yield on cost +368 k sqm of additional footprint 21% pre-let ı 25 ı

26 Logistics Location and access in 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 II 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 - Cabanillas II Madrid - Getafe (Gavilanes) 98,000 49,790 39, Madrid - Pinto 70, San Fernando II 34, San Fernando I 11,165 ı 26 ı

27 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 27 ı

28 SUBSIDIARIES

29 Subsidiaries Testa Residencial CREATING THE NATIONAL LEADER PRIOR TO MONETIZATION Description Key Metrics National leader in the attractive rented residential market in Spain Mostly comprising free housing (69%) and Madrid representing the largest location by units (46%) Managed by personnel assigned from Testa Residencial and Gesfontesta under MERLIN s supervision # Units 7,992 Free 5,940 Protected 2,052 GRI ( m) 56.3 Gross Yield 3.2% GAV ( m) 1,738.3 Net debt ( m) NAV ( m) 1,376.8 Ownership Other 16.2% 44.1% 33.7% 3.9% 2.1% ı 29 ı

30 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 and 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 416k sqm of built warehouses, 400k sqm of land for potential development and more than 400k sqm of leasable land. 31/12/ /12/2015 GRI (post canon) 24 m 24 m Occupancy (%) 96.7% 95.6% PLZF Top tenants Ownership ZAL BCN 32.0% 63.0% 5.0% El Prat Airport ZAL Prat Port of Barcelona ı 30 ı

31 CAPITAL STRUCTURE

32 Capital Structure Debt schedule and metrics 1Q 2017 AVERAGE MATURITY INCREASES TO 6.6 YEARS AND COST REDUCES TO 2.2% 1,160 Secured loans Unsecured loans Unsecured bonds , Q-4Q >2026 BBB Baa2 Net debt LTV Average interest rate (spot) Average maturity Unsecured debt/total debt Policy <50% >50% 31/03/17 Proforma (1) 4,575.1 m 45.6% 2.2% 6.6 years 76.1% 31/03/17 4,570.1 m 45.6% 2.3% 6.0 years 75.6% 31/12/16 4,471.1 m 45.5% 2.3% 6.2 years 75.6% Fixed rate debt >60% 99.2% 88.7% 88.7% Source: Company Note: Debt schedule includes reported debt as at 31/03/2017 less unsecured debt repayment ( 200m in April 2017) (1) Debt proforma includes debt at 31/03/2017, less unsecured debt repayment ( 200m), plus bond issuance ( 600m in May 2017) and proforma debt repayments ı 32 ı

33 APPENDIX

34 GOVERNANCE

35 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 35 ı

36 Governance Remuneration policy New Plan INVESTOR ALIGNED, LONG - TERM ORIENTATION AND INCORPORATION OF BEST 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 Shareprice (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 36 ı

37 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 Shareprice 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 Shareprice 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 37 ı

38 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 38 ı

39 PORTFOLIO IN DETAIL

40 Portfolio in detail Office - Madrid ı 40 ı

41 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 41 ı

42 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. 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. Churruca 11. Alcalá Princesa 3 Location: CBD GLA: 16,979 sqm Location: CBD GLA: 9,315 sqm Location: CBD GLA: 17,810 sqm ı 42 ı

43 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 16 Location: CBD GLA: 7,185 sqm Location: CBD GLA: 7,368 sqm GLA: 9,575 sqm 19. Josefa Valcárcel Arturo Soria Manoteras 18 GLA: 19,893 sqm GLA: 6,615 sqm GLA: 7,515 sqm 22. Fuente de la Mora Santiago de Compostela Costa Brava 2-4 GLA: 4,482 sqm GLA: 13,130 sqm Location: Periphery GLA: 16,000 sqm ı 43 ı

44 Portfolio in detail Office - Madrid (III) 25. Isla Chamartin (WIP) 26. Aquamarina 27. Via Norte GLA: 16,639 sqm GLA: 10,856 sqm GLA: 37,224 sqm 28. María de Portugal 9-13 GLA: 17,191 sqm 29. María de Portugal 1,1 GLA: 5,749 sqm 30. María de Portugal 1,2 GLA: 5,749 sqm 31. María de Portugal 1,3 GLA: 5,641 sqm 32. Las Tablas GLA: 27,073 sqm 33. Padres Dominicos 7 GLA: 6,176 sqm 34. El Encinar GLA: 3,623 sqm 35. Miniparc Alcobendas I GLA: 9,195 sqm 36. Miniparc Alcobendas II GLA: 3,347 sqm ı 44 ı

45 Portfolio in detail Office - Madrid (IV) 37. Av. de Bruselas Av. de Bruselas Av. de Bruselas 33 GLA: 9,164 sqm GLA: 8,895 sqm GLA: 33,718 sqm 40. Av. de Europa 41. Francisco Delgado 9 (Vegacinco) 42. Alvento Location: Periphery GLA: 25,210 sqm Location: Periphery GLA: 9,896 sqm GLA: 32,928 sqm 43. Cristalia 44. Trianón 45. Ribera del Loira GLA: 11,707 sqm GLA: 18,400 sqm GLA: 39,150 sqm 46. Ribera del Loira Partenón Partenón GLA: 54,960 sqm GLA: 19,609 sqm GLA: 18,343 sqm ı 45 ı

46 Portfolio in detail Office - Madrid (V) 49. Av. de Aragón Ática 1, 2, 3, 4, 5, Ática XIX Location: Periphery GLA: 3,890 sqm Location: Periphery GLA: 7,080 sqm, 5,644 sqm, 5,746 sqm, 4,936 sqm, 9,526 sqm, 3,790 sqm Location: Periphery GLA: 15,441 sqm 52. Cerro Gamos El Plantío 54. Conpenhague 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) 58. Arturo Soria 128 GLA: 3,206 sqm ı 46 ı (1) GLA includes WIP projects in Adequa complex. If excluded, GLA would be 75,928 sqm

47 Portfolio in detail Office - Barcelona ı 47 ı

48 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 48 ı

49 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 Torre Glories 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. Poblenou 22@ Llull 8. Vilanova Gran Vía Cortes 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 49 ı

50 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. PLZFA 18. PLZFB City: Barcelona GLA: 10,008 sqm City: Barcelona GLA: 11,411 sqm City: Barcelona GLA: 10,652 sqm ı 50 ı

51 Portfolio in detail Office - Lisbon ı 51 ı

52 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 52 ı

53 Portfolio in detail Shopping centers ı 53 ı

54 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. Nassica 6. Opción GLA: 65,890 sqm (1) GLA: 10,007 sqm GLA: 37,165 sqm 7. Artea 8. Las Arenas 9. Vilamarina City: Bilbao GLA: 24,323 sqm City: Barcelona GLA: 31,918 sqm City: Barcelona GLA: 32,224 sqm 10. La Fira 11. Porto Pi 12. El Saler City: Reus GLA: 29,013 sqm City: Mallorca GLA: 58,779 sqm MRL GLA: 26,559 sqm City: Valencia GLA: 22,967 sqm (1) MERLIN owns 50% ı 54 ı

55 Portfolio in detail Shopping centers (II) 13. Factory Bonaire + Medianas 14. La Vital 15. Thader City: Valencia GLA: 27,466 sqm MRL GLA: 21,504 sqm City: Gandía GLA: 20,853 sqm City: Murcia GLA: 48,646 sqm 16. Larios 17. Monumental City: Malaga GLA: 45,076 sqm City: Lisboa GLA: 5,495 sqm ı 55 ı

56 Portfolio in detail Logistics - Spain ı 56 ı

57 Portfolio in detail Logistics - Madrid ı 57 ı

58 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 Alovera City: Guadalajara GLA: 38,763 sqm 8. Guadalajara Cabanillas I City: Guadalajara GLA: 70,134 sqm 9. Guadalajara Cabanillas II City: Guadalajara GLA: 202,103 sqm 10. Madrid-Getafe GLA: 16,242 sqm 11. Madrid-Getafe (Los Olivos) GLA: 11,488 sqm 12. Madrid Getafe (Gavilanes) GLA: 39,576 sqm ı 58 ı

59 Portfolio in detail Logistics - Madrid (II) 13. Madrid Pinto 14. San Fernando - I 15. San Fernando - II GLA: 70,115 sqm GLA: 11,165 sqm GLA: 34,224 sqm ı 59 ı

60 Portfolio in detail Logistics - Barcelona ı 60 ı

61 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 61 ı

62 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 62 ı

63 Portfolio in detail High Street Retail Branches Supermarkets Plaza de los Cubos Fnac Callao Torre Madrid ı 63 ı

64 Paseo de la Castellana, Madrid