2018 ANNUAL GENERAL SHAREHOLDERS MEETING Madrid, 7 May 2018
DISCLAIMER This presentation has been prepared by certain assumptions and estimates. These and, should there be an offering, will not be This presentation may include forward- MERLIN Properties SOCIMI, S.A. (the internal analyses may have not been verifjed registered under the U.S. Securities Act of looking statements. All statements other “Company”) for informational use only. by any independent sources and there can 1933, as amended (the “Securities Act”), or than statements of historical facts included be no assurance that the assumptions or the U.S. Investment Company Act of 1940, as in this presentation, including, without The information contained in this presentation estimates are accurate. Accordingly, undue amended (the “Investment Company Act”). limitation, those regarding the fjnancial does not purport to be comprehensive or to reliance should not be placed on any of the Such securities may not be offered or sold in position, business strategy, management contain all the information that a prospective industry, market or competitive position data the United States except on a limited basis, plans and objectives for future operations of purchaser of securities of the Company may contained in this presentation. Additionally, if at all, to Qualifjed Institutional Buyers (as the Company are forward-looking statements. desire or require in deciding whether or not certain information contained herein may defjned in Rule 144A under the Securities These forward-looking statements involve to purchase such securities. The information be based on management accounts and Act) in reliance on Rule 144A or another known and unknown risks, uncertainties and contained in this document is subject estimates of the Company and may have not exemption from, or transaction not subject to, other factors, which may cause such actual to change, verifjcation and completion been audited or reviewed by the Company’s the registration requirements of the Securities results, performance or achievements, or without notice. Neither the Company nor auditors. Recipients should not place undue Act. The securities of the Company have not industry results, to be materially different any of affjliates, advisors or agents makes reliance on this information. The fjnancial been and, should there be an offering, will not from those expressed or implied by these any representation or warranty, express or information included herein may have not be registered under the applicable securities forward-looking statements. These forward- implied, as to the accuracy or completeness been reviewed for accuracy or completeness laws of any state or jurisdiction of Canada looking statements are based on numerous of any information contained or referred to and, as such, should not be relied upon. or Japan and, subject to certain exceptions, assumptions regarding the present and future in this document. Each of the Company and may not be offered or sold within Canada or business strategies of the Company and the its affjliates, advisors or agents expressly This information is provided to the recipients Japan or to or for the benefjt of any national, environment in which they expect to operate disclaims any and all liabilities which may for informational purposes only and recipients resident or citizen of Canada or Japan. in the future. be based on this document, the information must undertake their own investigation of the contained or referred to therein, any errors Company. The information providing herein THIS PRESENTATION DOES NOT Forward-looking statements speak only therein or omissions therefrom. Neither the is not to be relied upon in substitution for CONSTITUTE OR FORM PART OF ANY as of the date of this presentation and the Company, nor any of its affjliates, advisors or the recipient’s own exercise of independent OFFER FOR SALE OR SOLICITATION OF Company expressly disclaim any obligation agents undertakes any obligation to provide judgment with regard to the operations, ANY OFFER TO BUY ANY SECURITIES or undertaking to release any update of, or the recipients with access to additional fjnancial condition and prospects of the NOR SHALL IT OR ANY PART OF IT FORM revisions to, any forward-looking statements information or to update this document or to Company. 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The is agreeing to, and accepting, the foregoing INFORMATION ON THE COMPANY . analyses of the Company, which involve securities of the Company have not been restrictions and limitations. 2
Agenda items Financial results 2017 1 ı 2 ı 3 ı 4 Portfolio performance 1 ı 2 ı 3 ı 4 Board of Directors composition 5 Capital and debt events 6 ı 7 ı 8 ı 9 Remuneration report 12 Future outlook
2017 Highlights | Financial and business performance • +2.0% FFO per share YoY, equivalent to +11.9% LfL growth, after overcoming Financial € 0.06 per share due to the disposal of hotels in 2016 performance • +18.0% EPRA NAV YoY, capturing the value created across the portfolio • DPS € 0.46, exceeding February 2017 guidance (€ 0.44) • Outstanding 21.6% total shareholder return • Capital structure: reduce leverage and limited exposure to future interest rate hikes • Excellent performance in offjce, shopping centers and logistics , with positive Business LfL growth and release spread across the board performance • Occupancy growing at a steady pace in offjces and shopping centers and accelerated in logistics Substantial value creation from WIP and refurbished assets delivered in the period • Value Development and refurbishment plan being executed on target • creation 4
2017 Highlights | Total shareholders return (TSR) EXCELLENT RETURN TO SHAREHOLDERS IN 2017 TSR + 21.6% (€ per share) 0.40 13.65 2.02 13.25 11.23 EPRA NAV NAV growth EPRA NAV EPRA NAV+DPS DPS Dec-16 Dec-17 2017 2017 2017 +9.4% Share revaluation in 2017 +13.3% Revaluation + dividend per share in 2017 5 Source: Company and Bloomberg
2017 Highlights | Proposed 2017 dividend TOTAL DISTRIBUTION OF € 216M FY 2017, € 29M AHEAD OF FEBRUARY GUIDANCE (+4.3%) INTERIM COMPLEMENTARY TOTAL DIVIDEND DIVIDEND PER SHARE PER SHARE (1) PER SHARE (2) TOTAL FY 17 DIVIDEND € 0.26 € 216M € 0.46 € 0.20 October 2017 (1) Total AGM May 2018 (1) 6 Source: Company (1) Dividend holders are 469.7m shares (2) Subject to AGM approval
FINANCIAL RESULTS 2017 Agenda items 1 ı 2 ı 3 ı 4
Financial results 2017 | Key metrics +11.9% (1) INCREASE IN FFO PER SHARE AND +18% IN NAV PER SHARE IFRS Recurring Recurring net profjt FFO AFFO (2) EPRA NAV 289.2 270.9 1,100.4 6,224.7 € million IFRS Recurring Recurring EPRA NAV FFO AFFO net profjt 13.25 0.62 0.58 2.34 € per share Per share +11.9% (1) +11.7% (1) +47.1% +18.0% vs 2016 (1) Pro-forma YoY after overcoming € 0.05 net per share between 2016 sales and 2017 acquisitions 8 (2) Recurring FFO less recurring investments in the portfolio
Financial results 2017 | Bridge gross rents OFFICE AND SHOPPING CENTERS SHOWING ROBUST UPWARDS TREND, ACCELERATED GROWTH IN LOGISTICS Offices +2.9% Mainly Metrovacesa Shopping centers +3.6% (€m) and Adequa LfL (1) Logistics +8.4% +2.7% High Street retail +0.9% +111.4 469.4 Other +7.2% 351.0 +7.0 2016 Like-for-Like Balance acquisitions, 2017 growth disposals and other 9 (1) Portfolio in operation in 2016 (€ 257.6m GRI) and in 2017 (€ 264.7m GRI) (2) Vestas, Endesa-Sevilla, UPS and Logista
Financial results 2017 | Bridge FFO MEANINGFUL FFO GROWTH OVERCOMING CASH FLOW LOST DUE TO 2016 DISPOSALS + 11.9% (€ per share) Hotels disposal 0.07 0.62 0.60 0.01 0.55 (0.06) FY 2016 Disposals Acquisitions FY 2016 net FY 2017 Growth 2016 2017 of disposals 2017 and acquisitions 10
Financial results 2017 | Assets valuation summary APPRAISALS PROGRESSIVELY REFLECTING IMPROVEMENTS IN THE QUALITY AND OCCUPANCY OF OUR PORTFOLIO AS WELL AS PREVAILING MARKET YIELDS, UNDERPINNED BY RECENT TRANSACTIONS PROVIDING GOOD BENCHMARKS 11,254 5,219 GAV (€ million) 2,348 1,753 866 648 421 Total Offices Shopping High street Logistics Other (1) Minority centers retail stakes Like-for-Like +17.5% GAV +13.2% 10.5% evolution +7.3% +6.4% Average MERLIN (2) Offices Shopping High street Logistics centers retail Source: Company 11 (1) Other includes logistics WIP developments, hotels, land under development, non-core land and miscellaneous (2) Including minority stakes and other assets
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