Merlin Pptys Socimi Ord

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Good afternoon, ladies and gentlemen. Thank you for joining Merlin's 6M26 results presentation. You can find all the materials that will be presented in today's call on our website. I will please ask you to be advised by the disclaimer contained in it. Our CEO, Ismael Clemente, along with our two directors, Inés Arellano and Francisco Rivas, will walk you through the main highlights of the first six months of 2026. We'll then open the line for Q&A, where you'll have to press star five. With no further delay, I pass the floor to Ismael.

Thank you, Teresa. Thank you for attending Merlin Properties' first house 2026 results. I will be following the presentation that we have prepared for the occasion. So regarding the main highlights in operating performance, financial performance, and value creation for the period, I would like to remark that we continued enjoying strong operation in all of our traditional asset classes with a 3.3% like-for-like rental growth. We continue to enjoy a very high overall occupancy with a 94.7% pending the incorporation of data centers as of In the three traditional asset classes, the one that showed the strongest performance was, once again, shopping centers with a 6.4% like-for-like growth. Because in logistics, we had a relatively good risk spread, but we lost occupancy. And in offices, we had a good occupancy performance, but we had a relatively low C. Thank you very much. Thank you. Very close to recover the dilution caused by the capital increase, which is, I think, a remarkable achievement. In terms of value creation, we increased GAF by 3.7%, with most of that growth coming from data centers, because actually in traditional asset classes, there was a very slight yield expansion, which probably will follow. In coming months and years owing to the interest rate environment that we are going through. We strengthened our balance sheet with 768 million capital increase that you all know, and we reduced the loan-to-value to 24.5%. With a liquidity of 2.6 billion that basically takes care of the most immediate maturities together with the bank syndicate refinancing that we are preparing for the second half of the year. We maintained our investment grade rating both with S&P and Moody's. And most importantly, because it brings a little bit more color to the table in terms of value creation, the most salient feature of the quarter or half of the year was the good execution in Megaplan. In the past quarter, we were at 112 megawatts commercialized. We have now reached 160 because we converted The Arasur One situation that in the first quarter was in advanced negotiations. We had signed ahead of terms and we had attached technical and financial documentation. That was now, it is now signed and as a consequence we are 160 megawatts late. We provided to you an indication on the full year results presentation of We believe that we are in a position to far exceed that mark because we have three different avenues that we can explore. The most immediate, I believe, is the conversion into a full-format lease of the head of terms and exchange of documentation taking place in Lisbon, where we had Significant Demand, we have like four different tracks open, two of them very well advanced and we believe that with one of the two we are going to finish soon documentation and therefore end up having a full format list that we can report. but beyond that we have 48 megawatts in Getafe which are booked that eventually we can also work between now and end of the year to convert and we are recently working on a combined pack of 30 and 20 interest cantos and naval moral that eventually could result also in a significant Although I believe that we'll probably extend more into 2027 because we are just starting to entertain those conversations. As commented, Bilbao Arasur 1 and Bilbao Arasur 2 fully let, which is very important because for many years all of you have been asking whether we were able to sign through pre-lets and now We are clearly in that situation. My colleague Fran will comment later on that we are reaching a situation now in which, in reality, we are going after commercialization. So we are finishing a product behind our commercialization pace, which is a very nice place to be because we are enlarging and strengthening our dominance in the Iberian Peninsula while You know, we gain a lot of visibility on future cash flow through very advanced pre-leases. If the lease is to be converted, the interesting summary is that 100% of phase one will be let, 70% of phase two, and yet 25% of phase three. Three, which I believe will be a remarkable achievement, particularly for those of you who attended our Capital Markets Day in Arasur in March because, you know, clearly this is exceeding the projections that we internally had and that we conveyed to you on that occasion. And all that while maintaining a disciplined capital recycling. We have sold 75 million as of July and we still have 90 million of divestments signed that we will be converting between end of this year and beginning of next. Those that are reinforcing our internal capital recycling and helping the funding of particularly phase three as we speak. The NTA stands at 15.99 euro per share, which is very interesting. That puts our shares at a 4% to 5% NAV discount, which eventually I hope will be overcome during the week, because for some reason today our trading has been weak. But frankly speaking, I don't know why. This is important because that Mónica Eloisa Martín de Vidales Godino Shareholders. In terms of key financial and operating metrics, the growth rental income stood at 292 million plus 10% like for like. The total income has been like 307. So this year for the first time in our history, we are likely to exceed the 600 million mark in terms of total income, the top line of the company. FFO wise, we converted 180 million plus 8% year on year. We cannot simply multiply this by two because there are a number of things that are different in first and second half, but that gives us confidence to send or to rephrase our guidance in terms of total cash flow for the year from the previous 327 to 340. Mónica Eloisa Martín de Vidales Godino Total shares outstanding of 620 million, which we believe is the correct way to do it, because if we were to pay a dividend today, it would need to be calculated on the basis of that number of shares. But if we were to use the weighted metric, as many of our rivals do, the increase would have been 2.6% and the per share metric 0.30. Our loan-to-value continues to be very low, 24.5%. and the increasing GAF like for like 3.7 that basically together with the operating FFO brings our total shareholder return year on year to plus 9%, 9.1% which is I believe a very interesting mark. And that's it basically for the key financial and operating remarks. I will pass the floor to my colleague Inés Arellano that will discuss the traditional asset classes and then Fran will talk about data centers.