| |
| |
Profit/(Loss) after tax generated prior to disposal | |
| |
Profit for the year from discontinued operations net of tax | |
The distribution of profit proposed by the Parent's directors for approval by its shareholders at the
Annual General Meeting is as follows:
| |
| |
| |
Profit/(Loss) for the year | |
| |
| |
To offset interim dividend | |
| |
| |
Other dividends distributed
On 4 May 2022, the General Shareholders Meeting approved the distribution of a dividend charged to
\"share premium\" in the amount of EUR 106,497 thousand, and the distribution of an additional
dividend charged to 2021 profit for EUR 10,614 thousand.
On 28 July 2022, the Board approved the distribution of an interim dividend charged to earnings for
2022 in the amount of EUR 351,169 thousand.
On 10 November 2022, the Board approved the distribution of a dividend of EUR 93,646 thousand
charged to the profit for 2022.
In the last five years, the Company distributed the following dividends and Share Premium refunds:
Dividends
On 4 May 2022, the General Meeting approved the distribution of a dividend charged to \"share
premium\" in the amount of EUR 106,497 thousand, and the distribution of an additional dividend
charged to 2021 profit for EUR 10,614 thousand, both dividends being paid on 27 May 2022.
On 28 July 2022, the Board approved the distribution of an interim dividend charged to earnings for
2022 in the amount of EUR 351,169 thousand.
On 10 November 2022, the Board approved the distribution of a dividend of EUR 93,646 thousand
charged to the profit for 2022.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
5.\u00a0 \u00a0 Accounting policies
The main accounting policies and measurement bases applied in preparing the Group's consolidated
financial statements, which comply with the IFRSs in force at that date, are as follows:
5.1 Investment property
Investment property comprises buildings under construction and development for use as investment
property held (by the owner or by the tenant as an asset under usage rights), which are partially or
fully held to generate revenue, profits or both, rather than for use in the production or supply of goods
or services, or for the Group's administrative purposes or sale in the ordinary course of business.
All assets and usage rights (through the corresponding administrative concession or area right granted
by a public body) classified as real estate investments are in operation with various tenants. These
properties are earmarked for leasing to third parties. The Parent Company's directors do not plan to
dispose of these assets in the coming 12 months and have therefore decided to recognise them as
investment property in the consolidated statement of financial position.
Investment property is carried at fair value at the reporting date and is not depreciated. Investment
property includes land, buildings, usage rights of concessionaire projects and other constructions held
to earn rentals or with the aim of achieving gains on the sale as a result of future increases in the
respective market prices.
Gains or losses arising from changes in the fair value of investment property are included in the
income statement for the year in which they arise.
While construction work is in progress, the costs of construction work and finance costs are
capitalised. The above assets are recognised at fair value when they become operational.
According to IAS 40, the Group periodically determines the fair value of its investment property so that
the fair value reflects the actual market conditions of the investment property items at that date. This
fair value is determined every six months based on the appraisals undertaken by independent experts.
The market value of the Group's investment property at 31 December 2022, calculated based on
appraisals performed by JLL and CBRE, independent appraisers not related to the Group, amounted
to EUR 10,558,975 thousand (see Note 7).
5.2 Inventories
Land held for sale or integration into property development is considered as inventories. The Group
considers that its inventories do not meet the requirements of IAS 40 for consideration as investment
property.
At 31 December 2022, certain land acquired in 2020 was recognised as inventories, which form part of
an increased development area and are considered to be inventories as they are intended for sale.
Pursuant to the future sale agreement reached with a third party, the land resulting in final residential
use will be transferred to said third party, once all the buildable areas corresponding to each of the
uses are finally assigned by the approved and registered Reparcelling Project. . In accordance with
the above, the intended use of the land will be its recovery through sale, and the Group's objective is
not to obtain rental income on the land. Therefore, they were recognised as inventories at the end of
2022.
In relation to them, the Group has agreements with third parties for the future sale of those intended
for residential use and for which it has received, as of 31 December 2022, advance payments
amounting to 17,031 thousand euros that are recorded in the heading \"Other Current Financial
Liabilities\" of the consolidated statement of financial position.
The Group values its inventories at acquisition cost (or at market value if the latter is lower), including
both the acquisition cost of the land and plots, the urban planning costs, the construction costs and the
personnel directly related to the real estate activity, and, where applicable, financial expenses to the
extent that those expenses correspond to the period of urban planning and construction, provided that
they are inventories that need a period of more than one year to be able to be sold. If the inventories
are registered at a cost price higher than their market value, the appropriate valuation adjustments are
made, recording the corresponding impairment.
5.3 Investments accounted for using the equity method
At 31 December 2022, this heading in the consolidated statement of financial position included the
amount corresponding to the percentage of shareholders' equity of the investee relating to the Parent
and accounted for using the equity method once aligned to the accounting criteria applied by the
Group. In addition, and after accounting for these investments using the equity method, the Group
decides whether or not an additional impairment loss needs to be recognised as regards the Group's
net investment in the associate.
5.4 Leases
At the beginning of a contract, the Group assesses whether the contract is or contains a lease. A
contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
The group reassesses whether a contract is, or contains, a lease only if the terms of the contract
change.
5.4.1 Tenant
For a contract containing a lease component and one or more additional leases or non-leases, the
Group will distribute the consideration of the contract to each component of the lease based on the
relative price regardless of the lease component and the aggregate price independent of the
components that are non-lease components.
The relative price, independent of the lease and non-lease components, will be determined based on
the price that the landlord, or a similar supplier, would charge an entity separately for that component
or for a similar component. If there is no readily available separate observable price, the Group will
estimate the separate price, maximising the use of observable information.
The Group chose not to apply the recognition and measurement requirements indicated in IFRS 16 to
short-term leases in which the underlying asset is of low value, recognising the lease payments
associated with leases as a straight-line expense over the lease term.
Initial recognition
At the commencement date, a tenant recognises a right-of-use asset and a lease liability. At the
commencement date, a tenant will measure a right-of-use asset at cost. The cost of the right-of-use
asset includes:
a)the amount of the initial measurement of the lease liability measured at the
commencement date at the present value of the lease payments that were not paid at
that date. Lease payments will be discounted using the interest rate specified in the
lease, if that rate could be easily determined. If that rate cannot be easily determined,
the tenant will use the tenant's incremental loan rate.
b.lease payments paid before or from the commencement date, less leases received;
c.the initial direct costs incurred by the tenant; and
d.an estimate of the costs incurred by the tenant when dismantling and eliminating the
underlying asset, restoring the location where it is located or restoring the underlying
asset to the condition required by the terms of the lease, unless those costs are
incurred to produce inventories. The tenant could incur obligations as a result of these
costs either at the commencement date or as a result of using the underlying asset for
a specified period.
At the start date, the lease payments included in the measurement of the lease liability comprise the
following payments for the right to use the underlying asset during the lease term that are not paid at
the commencement date:
a.fixed payments, less any leases receivable;
b.variable lease payments, which depend on an index or rate, initially measured using
the index or rate at the commencement date;
c.amounts expected to be paid by the tenant as guarantees of residual value;
d.the exercise price of a call option if the tenant is reasonably confident of exercising
that option;
e.late lease payments if the lease term reflects that the tenant will exercise an option to
terminate the lease.
Subsequent measurement of the right-of-use asset
After the commencement date, the Group will measure its right-of-use assets using the cost model,
unless it applies the fair value model of IAS 40 'Investment properties' to its investment properties and
rights of use that meet the definition of investment property (see Note 5.1). If the right of use of the
assets relates to a class of property, plant and equipment to which the tenant applies the revaluation
model of IAS 16, the tenant may choose to use that revaluation model for all right-of-use assets of
assets related to that class of property, plant and equipment.
Subsequent measurement of lease liabilities
After the commencement date, the Group will measure a lease liability by:
a)increasing the carrying amount to reflect interest on the lease liability;
b.reducing the carrying amount to reflect the lease payments paid; and
c.re-measuring the carrying amount to reflect the new measurements or changes in the
lease and also to reflect the essentially fixed lease payments that have been revised.
5.4.2 Landlord
A landlord will classify each lease as an operating lease or a finance lease.
A lease will be classified as a finance lease when it substantially transfers all the risks and rewards
inherent to owning an underlying asset. A lease will be classified as an operating lease if it does not
substantially transfer all the risks and rewards inherent to owning an underlying asset.
Finance leases
At the commencement of the lease term, the Group recognises finance leases in the consolidated
statement of financial position at amounts equal to the fair value of the leased asset or, if lower, the
present value of the minimum lease payments. To calculate the present value of the lease payments
the interest rate in the finance lease is used.
The cost of assets acquired under finance leases is presented in the consolidated statement of
financial position based on the nature of the leased asset. These assets relate in full to investment
property and are measured in accordance with that in Note 5.1.
Operating leases
A landlord recognises lease payments from operating leases as income on a straight-line basis or on
another systematic basis. The landlord will apply another systematic basis if it is more representative
of the structure with which the profit from the use of the asset is reduced.
In relation to the rent subsidies that the Group granted to certain tenants during the COVID-19
pandemic, they did not entail any contractual changes and, therefore, the accounting treatment given
to the subsidies was to recognise lower income, and not accruing any impact on the balance sheet.
The Group will recognise the costs as expenses, including depreciation, incurred to obtain the lease
income. It will also add the initial direct costs incurred to obtain an operating lease to the carrying
amount of the underlying asset and recognise these costs as an expense over the lease term, on the
same basis as the lease income.
5.5 Financial instruments
Financial instruments are recognised when the Group becomes a party to the contractual provisions of
the instrument. From 1 January 2018, the Group classified its financial assets in accordance with IFRS
9 \"Financial Instruments\".
The classification of financial assets will depend both on how an entity manages its financial
instruments (its business model) and on the existence and characteristics of the contractual cash flows
of the financial assets. Based on the above, the asset is measured at amortised cost, at fair value
through changes in other comprehensive income or at fair value through changes in profit or loss for
the period, as follows:
\u2013If the objective of the business model is to hold a financial asset to collect contractual cash
flows and, depending on the terms of the contract, cash flows that are solely payments of
principal and interest on that principal are received on specified dates, the financial asset is
measured at amortised cost.
\u2013If the objective of the business model is both to collect contractual cash flows and sell financial
assets and, depending on the terms of the contract, cash flows that are solely payments of
principal and interest on that principal are received on specified dates, the financial asset is
measured at fair value through other comprehensive income (equity).
Outside these scenarios, the remaining assets will be measured at fair value through changes in
losses and gains. All equity instruments (e.g. shares) are, by default, measured in this category. This is
because their contractual flows do not meet the characteristic of being only payments of principal and
interest. Financial derivatives are also classified as financial assets at fair value through profit or loss
unless they are designated as hedging instruments.
For the purposes of measurement, financial assets should be classified into one of the following
categories, with the accounting policies of each category being as follows:
1.Financial assets at amortised cost: these assets are subsequently recognised at their initial
cost amortised in accordance with the effective interest method. This amortised cost will be
reduced by any impairment loss. They are recognised in the consolidated income statement
for the period when the financial asset is de-recognised or impaired, or due to exchange
differences. Interest calculated using the effective interest method is recognised in the income
statement under the heading 'Financial income'.
2.Financial assets at fair value with profit or loss: financial assets at fair value with profit or loss
are recognised initially and subsequently at fair value, excluding transaction costs, which are
charged to the income statement. Gains or losses from changes in fair value are presented in
the income statement under the heading 'Changes in the fair value of financial instruments' in
the period in which they originated. Any dividends and interest also leads to financial results.
3.Debt instruments at fair value with changes in total profit or loss: These instruments are
subsequently recognised at fair value, recognising changes in fair value in 'Other
comprehensive income'. Interest income, impairment losses and exchange differences are
recognised in the consolidated income statement. When sold or derecognised, the
accumulated fair value adjustments recognised in \"Other comprehensive income\" are included
in the income statement as 'other financial income/(expenses)'.
4.Equity instruments at fair value with changes in total profit or loss: They are subsequently
measured at fair value. Dividends are only recorded in profits and loss, unless the dividends
clearly represent a recovery in the cost of the investment. Other gains or losses are
recognised as 'Other comprehensive income' and are never reclassified as profit or loss.
5.Financial assets at cost: Financial assets that should be classified in the above category, but
their fair value cannot reliably be estimated.
Impairment of financial assets
The impairment model applies to financial assets measured at amortised cost that include the item
\"Customers and other receivables\".
The impairment model is based on a dual measurement approach, under which there will be an
impairment provision based on expected losses over the next 12 months or based on expected losses
over the entire life of the asset. The fact that determines the transition from the first approach to the
second is that there is a significant decline in creditworthiness.
The deterioration of the Group's receivables was not significant, taking into account that the risk of
default was less than 1% of turnover and that the Group has deposits from its tenants to secure its
loans.
Financial liabilities
The main financial liabilities held by the Group companies are held-to-maturity financial liabilities,
which are measured at amortised cost. The financial liabilities held by the Group companies are
classified as:
1.Bank loans and other loans: loans from banks and other lenders are recognised by the
proceeds received, net of transaction costs.
Borrowings are subsequently measured at amortised cost. Any difference between the proceeds
(net of transaction costs) and the redemption value is recognised in the income statement over the
term of the borrowings using the effective interest method.
Financial debt is eliminated from the consolidated statement of financial position when the
obligation specified in the agreement is paid, cancelled or expired. The difference between the
carrying amount of a financial liability that has been cancelled or transferred to another party and
the consideration paid, including any transferred assets other than the cash or liabilities assumed,
is recognised in profit or loss for the year as other financial income or expenses.
Exchanges of debt instruments between the Group and the counterparty or substantial changes in
the liabilities initially recognised are accounted for as a cancellation of the original liability and the
recognition of a new financial liability, provided that the instruments have substantially different
terms. The Group considers that the terms are substantially different if the discounted present
value of the cash flows under the new terms, including any fees paid net of any fees received and
discounted using the original effective interest rate, is at least ten per cent different from the
discounted present value of the remaining cash flows of the original financial liability.
If the exchange is recognised as a cancellation of the original financial liability, the costs or fees
are recognised in the consolidated income statement as part of the consolidated income
statement. Otherwise, the modified flows are discounted at the original effective interest rate,
recognising any difference with the prior carrying amount, in profit or loss. Likewise, the costs or
fees adjust the carrying amount of the financial liability and are amortised by the amortised cost
method for the remaining life of the modified liability.
The Group recognises the difference between the carrying amount of a financial liability or the part
of it cancelled or transferred to a third party and the consideration paid, including any assets
transferred other than the cash or liabilities assumed in profit or loss.
The Group will account for exchanges of debt instruments with a lender, provided that the
instruments have substantially different conditions, such as a cancellation of the original financial
liability and subsequent recognition of a new financial liability. Similarly, a substantial change in the
terms of an existing financial liability or a part of it will be recognised as a cancellation of the
original financial liability and a subsequent recognition of a new financial liability. The difference
between the carrying amount of the cancelled financial liability and the consideration paid, which
includes any transferred assets other than cash or any liabilities assumed, will be recognised in
profit or loss for the year.
If it is determined that the new terms or changes of a financial liability are not substantially different
from the existing ones and it is therefore determined that the change is not substantial, the existing
financial liability will not be derecognised. The Group will recalculate the gross carrying amount of
the financial liability and recognise a change gain or loss in profit/(loss). The gross carrying
amount of the financial liability will be recalculated as the present value of the renegotiated or
modified contractual cash flows discounted at the original effective interest rate of the financial
liability.
2.Trade and other payables: trade payables are initially recognised at fair value and are
subsequently measured at amortised cost using the effective interest method.
The Group derecognises financial liabilities when the obligations giving rise to them cease to exist.
5.6 Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge the risks to which its future activities,
transactions and cash flows are exposed. These risks are mainly due to changes in interest rates.
Among the various transactions, the Group uses certain financial instruments as economic hedges.
Derivatives are initially recognised at fair value on the date on which the derivative contract is signed
and are subsequently measured at fair value at each reporting date. Subsequent changes in fair value
are recognised depending on whether the derivative has been designated as a hedging instrument
and, if so, on the nature of the item being hedged.
At the beginning of the hedging relationship, the Group documents the economic relationship between
the hedging instruments and the hedged items, including whether changes in the cash flows of the
hedging instruments are expected to offset changes in the cash flows of the hedged items. The Group
documents its risk management objective and strategy to undertake its hedge transactions.
The effective part of the changes in the fair value of the derivatives that are designated and classified
as cash flow hedges is recognised in the cash flow hedge reserve under equity. The loss or gain
relating to the ineffective part is immediately recognised in the consolidated income for the year under
'Changes in the fair value of financial instruments' in the consolidated income statement.
Gains or losses relating to the effective part of the change in the intrinsic value of the option
agreements are recognised in the cash flow reserve hedge under equity. Changes in the time value of
option agreements that relate to the hedged item ('aligned time value') are recognised under other
comprehensive income in the costs of the hedge reserve in equity.
When forward contracts are used to hedge expected transactions, the Group generally designates
only the change in the fair value of the forward contract related to the cash component as the hedging
instrument. Gains or losses related to the effective part of the change in the cash component of
forward contracts are recognised in the cash flow hedge reserve under equity. The change in the
forward element of the contract related to the hedged item is recognised in other comprehensive
income on the costs of the hedge reserve under equity. In some cases, the gains or losses
corresponding to the effective part of the change in fair value of the full term contract are recognised in
the cash flow hedge reserve under equity.
\u2013Cash flow hedges: In hedges of this nature, the portion of the gain or loss on the hedging
instrument that has been determined to be an effective hedge is recognised temporarily in
equity and is recognised in the income statement in the same period during which the hedged
item affects profit or loss, unless the hedge relates to a forecast transaction that results in the
recognition of a non-financial asset or a non-financial liability, in which case the amounts
recognised in equity are included in the initial cost of the asset or liability when it is acquired or
assumed.
\u2013Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated
or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gains or
losses on the hedging instrument recognised in equity are retained in equity until the forecast
transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative
gain or loss recognised in equity is transferred to net profit or loss for the year.
Derivatives embedded in other financial instruments or other host contracts are treated as separate
derivatives when their risks and characteristics are not closely related to those of the host contracts
and provided that the host contracts are not measured at fair value by recognising changes in fair
value in the consolidated statement of comprehensive income.
The fair value of the derivative financial instruments is calculated using the valuation techniques
described in Note 5.7 below.
5.7 Valuation techniques and applicable assumptions to measure fair value
The fair value of financial assets and liabilities is calculated as followed:
\u2013The fair value of financial assets and liabilities with standard terms and that are traded on
active, liquid markets is calculated by reference to prices quoted in the market.
\u2013The fair value of financial assets and liabilities (except derivative instruments) is calculated in
accordance with the generally accepted valuation models based on discounted cash flows
using the prices of observable market transactions and the contributor prices of similar
instruments.
\u2013The fair value of interest rate swaps is calculated by discounting future settlements between
fixed and floating interest rates to their present value, in line with implicit market interest rates,
obtained from long-term interest rate swap curves. Implicit volatility is used to calculate the fair
values of caps and floors using option valuation models.
Likewise, in the valuation of derivative financial instruments, the risk inherent to the element or position
hedged must be effectively eliminated during the entire expected term of the hedge and there must be
adequate documentation evidencing the specific designation of the financial derivative to hedge
certain balances or transactions and how this effectiveness was intended to be achieved and
measured. Moreover, pursuant to IFRS 13 and due to the inherent risk, the credit risk of the parties to
the contract (both their own risk and that of the counterparty) must be included in the valuation of the
derivatives. The Group applied the discounted cash flow method, considering a discount rate affected
by the Merlin Group's own credit risk.
Valuation methodology for the embedded Tree derivative
Until the date of sale of TreeIn particular for the measurement of the implicit derivative of the income,
the Group based its estimate on the future total income arising from the agreement adjusted by the
counterparty's credit risk. The estimate of future rental income was based on the eurozone inflation
swaps (harmonised CPI in the euro area excluding tobacco) at the time of the analysis, and it
considered the credit risk of the corresponding counterparty. The measurement approach used was
based on the discounted cash flow model.
The following information was used in determining the value of the embedded income derivative (see
Note 10):
\u2013Forward curve of the consumer price index of the Euro area without tobacco (HICP).
\u2013Volatility of the HICP to calculate the value of the land (0%) included in leases.
\u2013EUR discount factors for calculating the present value of future income (sum of the
components of future income and value of land).
\u2013Credit risk charges (Credit Default Swap) for the calculation of the adjustment for the value of
the counterparty's credit risk (CVA).
HICP forward curve
For the construction of the curve, the 30-year zero coupon swap was used. From year to year, the
annual rates were integrated and interpolated, applying seasonality adjustments, to obtain the forward
rate curve.
HICP volatility
0% was taken as an initial premium for land. Subsequently, the volatility of each future settlement or
forward year by year (floorlet) was calculated. Once the volatilities and forward rates were available,
the amount of the land component was determined.
EUR discount factors
Since the market standard requires swap derivatives to be discounted at the Overnight indexed swap
rate, both Euribor and Eonia rates were included in the yield curve data. The yield curve data used for
the calculations were:
\u2013Deposit fees: 1D, 2D, 3D
\u2013Fixing of the Euribor: 1M, 3M and 6M
\u2013Euribor Futures: between 6M and 2Y
\u2013Euribor Swap Rates: from 2Y to 30Y
\u2013EONIA swap base fees: up to 30Y
\u2013Credit Default Swap (CDS) rates
\u2013CDS market data were used and interpolated for the specific deadlines or periods of the rents.
We used the 'Current Exposure Method' to calculate the CVA.
After the sale of the Net Lease segment, the Group no longer had any additional income derivatives at
31 December 2022.
Financial instruments measured subsequent to initial recognition at fair value are grouped into levels 1
to 3 based on the degree to which the fair value is observable:
\u2013Level 1: those measured using quoted prices (unadjusted) in active markets for identical
assets or liabilities.
\u2013Level 2: those measured using inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
\u2013Level 3: those measured using valuation techniques, including inputs for the asset or liability
that are not based on observable market data (non-observable inputs).
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2022:
2022
| | | | |
| |
| | | | |
| | | | |
Derivative financial instruments (Note 14.3) | | | | |
Financial instruments - assets (Note 14.3) | | | | |
| | | | |
2021
| | | | |
| |
| | | | |
| | | | |
Derivative financial instruments (Note 14.3) | | | | |
Embedded derivatives (Note 10) | | | | |
Financial assets at fair value through profit or loss (Note 10) | | | | |
| | | | |
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
5.8 Equity instruments
An equity instrument is a contract that evidences a residual interest in the assets of the Parent after
deducting all of its liabilities.
Capital instruments issued by the Parent are recognised in equity at the proceeds received, net of
issue costs.
The Parent Company's equity instruments acquired by the Group are recognised separately at cost
and deducted from equity in the consolidated statement of financial position, regardless of why they
were acquired. No gains or losses from transactions involving own equity instruments are recognised
in the consolidated income statement.
The subsequent amortisation of the equity instruments of the Parent gives rise to a capital reduction
for the nominal amount of said shares and the positive or negative difference between the acquisition
price and the nominal value of the shares is charged or credited to accounts of reserves.
The transaction costs related to own equity instruments are recognised as a decrease in equity, net of
any related tax effect.
5.9 Distributions to shareholders
Dividends are paid in cash and recognised as a reduction in equity when the pay-outs are approved by
shareholders at the Annual General Meeting.
The Parent Company is subject to the special regime for REITs. As in Article 6 of Law 11/2009, of 26
October 2009, amended by REITs Act 2012 opting to pay tax under the special tax regime are required
to distribute the profit generated during the year to shareholders as dividends. Once the corresponding
commercial obligations have been fulfilled, said distribution must be agreed within six months from
year end, and the dividends paid within 30 days from the date on which the pay-out is agreed.
Moreover, as specified in Law 11/2009, of 26 October 2009, amended by Law 16/2012, of 27
December, the Parent must distribute the following as dividends:
\u2022100% of the profit from dividends or shares in profits distributed by the entities referred to in
section 1, Article 2 of Law 11/2009.
\u2022At least 50% of the profits arising from the transfer of the properties, shares or ownership
interests referred to in section 1, Article 2 of Law 11/2009, subsequent to expiry of the time
limits referred to in section 2, Article 3 of Law 11/2009, which are used for pursuit of the
entities' principal corporate purpose. The remainder of these profits must be reinvested in
other property or investments used for the pursuit of said activity within three years after the
transfer date. Otherwise these profits should be distributed in full together with any profit
arising in the year in which the reinvestment period expires. If the items to be reinvested are
transferred prior to the end of the holding period, that profit must be distributed in full together
with, if applicable, the profit generated during the year in which the items were transferred.
The obligation to distribute profit does not apply to the portion of the profit attributable to prior
years in which the Company was not included under the special tax regime in this Act.
\u2022At least 80% of the remaining profits obtained. When dividend distributions are charged to
reserves generated from profits in a year in which the special tax regime applied, the
distribution must necessarily be approved as set out above.
5.10 Cash and cash equivalents
The Group includes under this heading cash and short-term highly liquid investments maturing in less
than three months that are readily convertible to cash and which are subject to an insignificant risk of
changes in value. The interest income associated with these transactions is recognised as income
when accrued while unmatured interest is presented in the consolidated statement of financial position
as an addition to the balance of the above heading.
5.11 Provisions
When preparing the consolidated financial statements the Parent's directors made a distinction
between:
\u2022Provisions: credit balances covering present obligations arising from past events with respect
to which it is probable that an outflow of resources embodying economic benefits that is
uncertain as to its amount and/or timing will be required to settle the obligations; and
\u2022Contingent liabilities: possible obligations that arise from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more future events not
wholly within the Group's control.
The consolidated financial statements include all the provisions with respect to which it is likely that the
obligation will have to be settled. Contingent liabilities are not recognised in the consolidated financial
statements but rather are disclosed in the notes to the consolidated financial statements, unless the
possibility of an outflow in settlement is considered to be remote.
Provisions are measured at the present value of the best possible estimate of the amount required to
settle or transfer the obligation, taking into account the information available on the event and its
consequences. Where discounting is used, adjustments made to provisions are recognised as finance
cost on an accrual basis.
The compensation receivable from a third party on settlement of the obligation is recognised as an
asset, provided there is no doubt that the reimbursement will take place, unless there is a legal
relationship whereby a portion of the risk has been externalised, as a result of which the Group is not
liable, in which case, the compensation will be taken into account when estimating, if appropriate, the
amount of the related provision.
5.12 Revenue recognition
Revenue and expenses are recognised on an accrual basis, i.e. when the actual flow of the related
goods and services occurs, regardless of when the resulting monetary or financial flow arises. Rental
income is measured at the fair value of the consideration received, net of discounts and taxes.
Discounts (rent waivers and rebates) granted to lessees are recognised as a reduction in rental
income when it is probable that conditions precedent will be fulfilled requiring them to be granted.
Discounts are recognised by expensing the total rent waiver or rebate on a straight-line basis over the
term of the lease in force. If a lease is cancelled earlier than expected, any outstanding rent waiver or
rebate is recognised in the last period prior to the end of the agreement.
Leasing of investment property to third parties
The Group companies' principal activity comprises the acquisition and leasing of primarily Shopping
centres, logistics units and offices. The Group's ordinary income is generated from the leasing of this
investment property to third parties.
Ordinary income from the leasing of investment property is recognised taking into account the stage of
completion of the transaction at the reporting date, provided the result of the transaction can be
reliably estimated. Income from the Group's leases is recognised by Group companies on a monthly
basis pursuant to the conditions and amounts agreed with the lessees in the various agreements. This
income is only recognised when it can be measured reliably and it is probable that the economic
benefits from the lease will be received.
Where the outcome of services rendered cannot be measured reliably, revenue is recognised to the
extent that the expenses incurred are deemed recoverable.
Service charges re-billed to lessees are recognised net of other operating expenses.
5.13 Income tax
5.13.1 General regime
Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax
expense (deferred tax income).
The current income tax expense is the amount payable by the Group as a result of income tax
settlements for a given year. Tax credits and other tax benefits, excluding tax withholdings and pre-
payments, and tax loss carryforwards from prior years effectively offset in the current year reduce the
current income tax expense.
The deferred tax expense or income relates to the recognition and derecognition of deferred tax
assets and liabilities. These include temporary differences measured at the amount expected to be
payable or recoverable on differences between the carrying amounts of assets and liabilities and their
tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates
that are expected to apply in the period when the asset is realised or the liability is settled.
Deferred tax liabilities are recognised for all taxable temporary differences, unless the temporary
difference arises from the initial recognition of goodwill, goodwill for which amortisation is not
deductible for tax purposes or the initial recognition of other assets and liabilities in a transaction that
affects neither accounting profit (loss) nor taxable profit (tax loss).
Deferred tax assets are recognised for temporary differences to the extent that it is considered
probable that the consolidated companies will have sufficient taxable profits in the future against which
the deferred tax asset can be utilised, and the deferred tax assets do not arise from the initial
recognition of other assets and liabilities in a transaction that affects neither accounting profit (loss) nor
taxable profit (tax loss). The other deferred tax assets (tax loss, temporary differences and tax credit
carryforwards) are only recognised if it is considered probable that the consolidated companies will
have sufficient future taxable profits against which they can be utilised.
The deferred tax assets recognised are reassessed at the end of each reporting period and the
appropriate adjustments are made to the extent that there are doubts as to their future recoverability.
Also, unrecognised deferred tax assets are reassessed at the end of each reporting period and are
recognised to the extent that it has become probable that they will be recovered through future taxable
profits.
5.13.2 REIT regime
The REIT special tax regime, as amended by Law 16/2012 of 27 December, is based on a 0%
corporate income tax rate, provided certain requirements are met. Particularly noteworthy amongst
those conditions is that at least 80% of income must come from urban real estate used for leasing
purposes and acquired in full ownership or through holdings in Spanish or foreign companies,
regardless of whether or not they are listed on organised markets, that meet the same investment and
profit distribution requirements. Likewise, the main sources of income for these entities must come
from the real estate market, either through leasing the properties, their subsequent sale after a
minimum lease period, or the income generated from holdings in entities with similar characteristics.
Nevertheless, tax is accrued in proportion to dividend distributions. Dividends received by the
shareholders are exempt, unless the recipient is a legal person subject to corporate income tax or a
permanent establishment of a foreign entity, in which case a deduction in the tax liability is established,
so that these earnings are taxed at the shareholder's rate. However, the remaining earnings must be
not be taxed provided that they are not distributed to shareholders.
As in Transitional Provision Nine of Law 11/2009, of 26 October, amended by Law 16/2012, of 27
December, which regulate REITs, the entity will be subject to a special tax rate of 19% on the total
dividends or profit shares distributed to shareholders with a shareholding in the entity of 5% or more,
when these dividends are exempt or taxed at a rate below 10% in the shareholders. The Group has
therefore established the procedure guaranteeing confirmation by shareholders of their tax rate,
proceeding where applicable, to withhold 19% of the dividend distributed to shareholders that do not
meet the above tax requirements.\u00a0 \u00a0 \u00a0
With effect for financial years beginning on or after 1 January 2021, Law 11/2021, of 9 July, on
measures to prevent and combat tax fraud amended Article 9 (4) of Spanish Law 11/2009, of 26
October, regulating REITs. Specifically, a special tax of 15% was introduced on the amount of profit
obtained in the year which is not distributed, in the portion that arises from: a) income that has not
been taxed at the general corporate income tax rate and, b) income that does not arise from the
transfer of eligible assets, once the three-year maintenance period has elapsed, which has been
included in the three-year reinvestment period in Article 6.1.b) of Law 16/2012, of 27 December. This
special tax will be considered corporate income tax and will accrue on the day of the agreement to
apply profit for the year by the general shareholders meeting or equivalent body. The self-assessment
and payment of the tax must be performed within two months of the accrual.
5.14 Share-based payments
The Parent Company recognises, on the one hand, the goods and services received as an asset or as
an expense, depending on their nature, when they are received and, on the other, the related increase
in equity, if the transaction is equity-settled, or the related liability if the transaction is settled with an
amount based on the value of the equity instruments.
In the case of equity-settled transactions, both the services rendered and the increase in equity are
measured at the fair value of the equity instruments granted, by reference to the grant date. In the
case of cash-settled share-based payments, the goods and services received and the related liability
are recognised at the fair value of the latter, by reference to the date on which the requirements for
recognition are met.
2017-2019 Incentive Plan
Also, at the General Meeting held on 26 April 2017, the shareholders approved a remuneration plan
for the management team and other important members of the Group's workforce, the measurement
period of which is from 1 January 2017 to 31 December 2019 (the \"2017-2019 Incentive Plan\").
According to the plan, the members of the management team may be entitled to receive: (i) a certain
monetary amount in accordance with the increase of the share price and (ii) Parent Company shares,
if certain objectives are fulfilled, referenced against the EPRA NAV.
In this regard, in 2022 the Group recorded an expense in the amount of EUR 1,210 thousand
corresponding to the last tranche accrued by the 2017-2019 Incentive Plan, with a counterpart charge
to reserves ending the plan and its registration.
2022 \u2013 2024 Incentive Plan
The General Shareholder Meeting held on 4 May 2022 approved a long-term incentive plan consisting
of the delivery of a maximum number of MERLIN Properties, SOCIMI, S.A. ordinary shares equal to
3,491,767 shares (representing 0.74% of the share capital), aimed at the members of the
management and management team of the MERLIN Group, including the executive directors of the
Parent (LTIP 2022-2024).
The LTIP will be implemented through a performance share single cycle plan with a target
measurement period of 3 years; beginning on 1 January 2022 and ending on 31 December 2024 and
will be payable through the delivery of shares of the Parent in 2025, once (i) compliance with the
specific targets established for 2022-2024 has been verified and (ii) the beneficiary has remained in
the MERLIN Group.
With respect to the targets or metrics to which the plan is linked (see Note 20), it includes market and
non-market conditions.
With respect to the market condition 'Total shareholder profitability,' the Group applied a valuation
methodology for the underlying assets on the date of delivery of the incentive associated with the
Monte Carlo simulation method. The Monte Carlo simulation is a statistical method applied to the
financial modelling on the probability of different results where a random or independent variable
comes into play. In this regard, the Monte Carlo simulation method applied by the Group was based on
a Brownian motion model, which makes it possible to simulate the possible paths that the underlying
asset can follow (price of Merlin's share and EPRA Nareit Development Europe index) from the
repetition of random samples to obtain different numerical results. For the development of the
simulation, the generation of the random variable was performed by applying a standard normal
distribution N (0.1). To this end, the average or expected value corresponding to the spot price of the
Merlin share was established at the date of communicating the incentive and a standard deviation to
describe the change as regards the average, based on the volatility of the share.
With respect to the non-market conditions of i) EPRA NTA, ii) Net carbon and environment emissions
and iii) the Environment and Company, the Group estimated its compliance with them at each
measurement date during the term of the plan with the best information available.
5.15 Employee obligations
Under current labour legislation, the Group companies are required to pay termination benefits to
employees terminated under certain conditions.
When a restructuring plan is approved by the directors, made public and communicated to employees,
the Group recognises the provisions required to meet any future payments resulting from their
application. These provisions are calculated in accordance with the best estimates available of the
foreseeable costs.
In this sense, at 31 December 2022, the Group does not have commitments for this item, and there is
no Downsizing Plan in force.
5.16 Current assets and liabilities
The Group classifies its assets and liabilities as current and non-current in the consolidated statement
of financial position. To this end, current assets and current liabilities are those that meet the following
criteria:
\u2022Assets are classified as current when they are expected to be realised, or are intended for
sale or consumption, during the course of the Group's normal operating cycle, when they are
held primarily for the purpose of being traded, when they are expected to be realised within
twelve months after the reporting date, or when they constitute cash or a cash equivalent,
unless they are restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting date.
\u2022Liabilities are classified as current when they are expected to be settled during the course of
the Group's normal operating cycle, when they are held primarily for the purpose of being
traded, when they are expected to be settled within twelve months after the reporting date, or
when the Group does not have an unconditional right to defer repayment of the liability for at
least twelve months after the reporting date.
\u2022Derivative financial instruments not held for trading are classified as current or non-current
according to the period of maturity or periodic settlement.
5.17 Segment information
The Group groups its segments based on the nature of the assets in the various areas in which it
implements its strategy. In this sense, each operating segment is a component of the Group that
performs business activities from which it can earn revenue and incur expenses. The operating results
of each segment are regularly reviewed by the Group's management to decide on the resources to be
allocated to each segment, assess its performance and for which differentiated financial information is
available.
5.18 Earnings per share
Basic earnings per share are calculated by dividing net profit or loss attributable to the Parent
shareholders by the weighted average number of ordinary shares outstanding during the year,
excluding the average number of shares of the Parent held by the Group companies.
For the calculation of the diluted profit per share, the Group calculates the amounts of the diluted
earnings per share for the profit for the year attributable to the shareholders of the Parent and, where
applicable, the profit for the year of the ongoing activities attributable to those holders of equity
instruments.
To calculate the diluted earnings per share, the Group takes the profit or loss for the year attributable
to the holders of ordinary equity instruments and the weighted average number of shares in circulation
for all the dilutive effects inherent to the potential ordinary shares.
5.19 Environment
The Group performs activities whose primary purpose is to prevent, mitigate or repair environmental
damage caused by its operations, see climate change management policies in Note 23.
Expenses incurred in connection with these environmental activities are recognised as other operating
expenses in the year in which they are incurred. However, because of their nature, the Group's
business activities do not have a significant environmental impact.
5.20 Consolidated statements of cash flows
The following terms are used in the consolidated statements of cash flows (prepared using the indirect
method) with the meanings specified:
1.Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly
liquid investments that are subject to an insignificant risk of changes in value.
2.Operating activities: the principal revenue-producing activities of the entities composing the
consolidated Group and other activities that are not investing or financing activities.
3.Investing activities: the acquisition and disposal of long-term assets and other investments not
included in cash and cash equivalents.
4.Financing activities: activities that result in changes in the size and composition of the equity
and liabilities that are not operating activities.
5.21 Discontinued Business
A discontinued business is any component of the Group that has been sold or otherwise arranged, or
that has been classified as held for sale and, among other conditions, represents a significant
business line or area that can be considered separate from the rest.
For these types of transactions, the Group included in the consolidated income statement and in a
single line item entitled \"Profit/(Loss) for the period from discontinued operations net of tax\" both the
profit/(loss) after tax on discontinued activities and the profit/(loss) after tax recognised by fair value
measurement less costs to sell or by the disposal of the items constituting the discontinued activity.
In addition, when transactions are classified as discontinued, the Group presents in the above
accounting item the amount of the previous year corresponding to the activities that were discontinued
on the closing date of the corresponding consolidated financial statements.
At the beginning of 2022, the Group identified the activity called Net Lease as a discontinued segment,
given its commitment to divestment in the short term. On 31 December 2022, the above divestment
process was completed by adjusting comparative financial information to the reporting requirements
for discontinued activities (see Note 3).
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5.1 Investment property
Investment property comprises buildings under construction and development for use as investment
property held (by the owner or by the tenant as an asset under usage rights), which are partially or
fully held to generate revenue, profits or both, rather than for use in the production or supply of goods
or services, or for the Group's administrative purposes or sale in the ordinary course of business.
All assets and usage rights (through the corresponding administrative concession or area right granted
by a public body) classified as real estate investments are in operation with various tenants. These
properties are earmarked for leasing to third parties. The Parent Company's directors do not plan to
dispose of these assets in the coming 12 months and have therefore decided to recognise them as
investment property in the consolidated statement of financial position.
Investment property is carried at fair value at the reporting date and is not depreciated. Investment
property includes land, buildings, usage rights of concessionaire projects and other constructions held
to earn rentals or with the aim of achieving gains on the sale as a result of future increases in the
respective market prices.
Gains or losses arising from changes in the fair value of investment property are included in the
income statement for the year in which they arise.
While construction work is in progress, the costs of construction work and finance costs are
capitalised. The above assets are recognised at fair value when they become operational.
According to IAS 40, the Group periodically determines the fair value of its investment property so that
the fair value reflects the actual market conditions of the investment property items at that date. This
fair value is determined every six months based on the appraisals undertaken by independent experts.
The market value of the Group's investment property at 31 December 2022, calculated based on
appraisals performed by JLL and CBRE, independent appraisers not related to the Group, amounted
to EUR 10,558,975 thousand (see Note 7).
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"value": "
While construction work is in progress, the costs of construction work and finance costs are
capitalised. The above assets are recognised at fair value when they become operational.
The Group values its inventories at acquisition cost (or at market value if the latter is lower), including
both the acquisition cost of the land and plots, the urban planning costs, the construction costs and the
personnel directly related to the real estate activity, and, where applicable, financial expenses to the
extent that those expenses correspond to the period of urban planning and construction, provided that
they are inventories that need a period of more than one year to be able to be sold. If the inventories
are registered at a cost price higher than their market value, the appropriate valuation adjustments are
made, recording the corresponding impairment.
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5.2 Inventories
Land held for sale or integration into property development is considered as inventories. The Group
considers that its inventories do not meet the requirements of IAS 40 for consideration as investment
property.
At 31 December 2022, certain land acquired in 2020 was recognised as inventories, which form part of
an increased development area and are considered to be inventories as they are intended for sale.
Pursuant to the future sale agreement reached with a third party, the land resulting in final residential
use will be transferred to said third party, once all the buildable areas corresponding to each of the
uses are finally assigned by the approved and registered Reparcelling Project. . In accordance with
the above, the intended use of the land will be its recovery through sale, and the Group's objective is
not to obtain rental income on the land. Therefore, they were recognised as inventories at the end of
2022.
In relation to them, the Group has agreements with third parties for the future sale of those intended
for residential use and for which it has received, as of 31 December 2022, advance payments
amounting to 17,031 thousand euros that are recorded in the heading \"Other Current Financial
Liabilities\" of the consolidated statement of financial position.
The Group values its inventories at acquisition cost (or at market value if the latter is lower), including
both the acquisition cost of the land and plots, the urban planning costs, the construction costs and the
personnel directly related to the real estate activity, and, where applicable, financial expenses to the
extent that those expenses correspond to the period of urban planning and construction, provided that
they are inventories that need a period of more than one year to be able to be sold. If the inventories
are registered at a cost price higher than their market value, the appropriate valuation adjustments are
made, recording the corresponding impairment.
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"value": "
At 31 December 2022, certain land acquired in 2020 was recognised as inventories, which form part of
an increased development area and are considered to be inventories as they are intended for sale.
Pursuant to the future sale agreement reached with a third party, the land resulting in final residential
use will be transferred to said third party, once all the buildable areas corresponding to each of the
uses are finally assigned by the approved and registered Reparcelling Project. . In accordance with
the above, the intended use of the land will be its recovery through sale, and the Group's objective is
not to obtain rental income on the land. Therefore, they were recognised as inventories at the end of
2022.
In relation to them, the Group has agreements with third parties for the future sale of those intended
for residential use and for which it has received, as of 31 December 2022, advance payments
amounting to 17,031 thousand euros that are recorded in the heading \"Other Current Financial
Liabilities\" of the consolidated statement of financial position.
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5.4 Leases
At the beginning of a contract, the Group assesses whether the contract is or contains a lease. A
contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
The group reassesses whether a contract is, or contains, a lease only if the terms of the contract
change.
5.4.1 Tenant
For a contract containing a lease component and one or more additional leases or non-leases, the
Group will distribute the consideration of the contract to each component of the lease based on the
relative price regardless of the lease component and the aggregate price independent of the
components that are non-lease components.
The relative price, independent of the lease and non-lease components, will be determined based on
the price that the landlord, or a similar supplier, would charge an entity separately for that component
or for a similar component. If there is no readily available separate observable price, the Group will
estimate the separate price, maximising the use of observable information.
The Group chose not to apply the recognition and measurement requirements indicated in IFRS 16 to
short-term leases in which the underlying asset is of low value, recognising the lease payments
associated with leases as a straight-line expense over the lease term.
Initial recognition
At the commencement date, a tenant recognises a right-of-use asset and a lease liability. At the
commencement date, a tenant will measure a right-of-use asset at cost. The cost of the right-of-use
asset includes:
a)the amount of the initial measurement of the lease liability measured at the
commencement date at the present value of the lease payments that were not paid at
that date. Lease payments will be discounted using the interest rate specified in the
lease, if that rate could be easily determined. If that rate cannot be easily determined,
the tenant will use the tenant's incremental loan rate.
b.lease payments paid before or from the commencement date, less leases received;
c.the initial direct costs incurred by the tenant; and
d.an estimate of the costs incurred by the tenant when dismantling and eliminating the
underlying asset, restoring the location where it is located or restoring the underlying
asset to the condition required by the terms of the lease, unless those costs are
incurred to produce inventories. The tenant could incur obligations as a result of these
costs either at the commencement date or as a result of using the underlying asset for
a specified period.
At the start date, the lease payments included in the measurement of the lease liability comprise the
following payments for the right to use the underlying asset during the lease term that are not paid at
the commencement date:
a.fixed payments, less any leases receivable;
b.variable lease payments, which depend on an index or rate, initially measured using
the index or rate at the commencement date;
c.amounts expected to be paid by the tenant as guarantees of residual value;
d.the exercise price of a call option if the tenant is reasonably confident of exercising
that option;
e.late lease payments if the lease term reflects that the tenant will exercise an option to
terminate the lease.
Subsequent measurement of the right-of-use asset
After the commencement date, the Group will measure its right-of-use assets using the cost model,
unless it applies the fair value model of IAS 40 'Investment properties' to its investment properties and
rights of use that meet the definition of investment property (see Note 5.1). If the right of use of the
assets relates to a class of property, plant and equipment to which the tenant applies the revaluation
model of IAS 16, the tenant may choose to use that revaluation model for all right-of-use assets of
assets related to that class of property, plant and equipment.
Subsequent measurement of lease liabilities
After the commencement date, the Group will measure a lease liability by:
a)increasing the carrying amount to reflect interest on the lease liability;
b.reducing the carrying amount to reflect the lease payments paid; and
c.re-measuring the carrying amount to reflect the new measurements or changes in the
lease and also to reflect the essentially fixed lease payments that have been revised.
5.4.2 Landlord
A landlord will classify each lease as an operating lease or a finance lease.
A lease will be classified as a finance lease when it substantially transfers all the risks and rewards
inherent to owning an underlying asset. A lease will be classified as an operating lease if it does not
substantially transfer all the risks and rewards inherent to owning an underlying asset.
Finance leases
At the commencement of the lease term, the Group recognises finance leases in the consolidated
statement of financial position at amounts equal to the fair value of the leased asset or, if lower, the
present value of the minimum lease payments. To calculate the present value of the lease payments
the interest rate in the finance lease is used.
The cost of assets acquired under finance leases is presented in the consolidated statement of
financial position based on the nature of the leased asset. These assets relate in full to investment
property and are measured in accordance with that in Note 5.1.
Operating leases
A landlord recognises lease payments from operating leases as income on a straight-line basis or on
another systematic basis. The landlord will apply another systematic basis if it is more representative
of the structure with which the profit from the use of the asset is reduced.
In relation to the rent subsidies that the Group granted to certain tenants during the COVID-19
pandemic, they did not entail any contractual changes and, therefore, the accounting treatment given
to the subsidies was to recognise lower income, and not accruing any impact on the balance sheet.
The Group will recognise the costs as expenses, including depreciation, incurred to obtain the lease
income. It will also add the initial direct costs incurred to obtain an operating lease to the carrying
amount of the underlying asset and recognise these costs as an expense over the lease term, on the
same basis as the lease income.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
5.5 Financial instruments
Financial instruments are recognised when the Group becomes a party to the contractual provisions of
the instrument. From 1 January 2018, the Group classified its financial assets in accordance with IFRS
9 \"Financial Instruments\".
The classification of financial assets will depend both on how an entity manages its financial
instruments (its business model) and on the existence and characteristics of the contractual cash flows
of the financial assets. Based on the above, the asset is measured at amortised cost, at fair value
through changes in other comprehensive income or at fair value through changes in profit or loss for
the period, as follows:
\u2013If the objective of the business model is to hold a financial asset to collect contractual cash
flows and, depending on the terms of the contract, cash flows that are solely payments of
principal and interest on that principal are received on specified dates, the financial asset is
measured at amortised cost.
\u2013If the objective of the business model is both to collect contractual cash flows and sell financial
assets and, depending on the terms of the contract, cash flows that are solely payments of
principal and interest on that principal are received on specified dates, the financial asset is
measured at fair value through other comprehensive income (equity).
Outside these scenarios, the remaining assets will be measured at fair value through changes in
losses and gains. All equity instruments (e.g. shares) are, by default, measured in this category. This is
because their contractual flows do not meet the characteristic of being only payments of principal and
interest. Financial derivatives are also classified as financial assets at fair value through profit or loss
unless they are designated as hedging instruments.
For the purposes of measurement, financial assets should be classified into one of the following
categories, with the accounting policies of each category being as follows:
1.Financial assets at amortised cost: these assets are subsequently recognised at their initial
cost amortised in accordance with the effective interest method. This amortised cost will be
reduced by any impairment loss. They are recognised in the consolidated income statement
for the period when the financial asset is de-recognised or impaired, or due to exchange
differences. Interest calculated using the effective interest method is recognised in the income
statement under the heading 'Financial income'.
2.Financial assets at fair value with profit or loss: financial assets at fair value with profit or loss
are recognised initially and subsequently at fair value, excluding transaction costs, which are
charged to the income statement. Gains or losses from changes in fair value are presented in
the income statement under the heading 'Changes in the fair value of financial instruments' in
the period in which they originated. Any dividends and interest also leads to financial results.
3.Debt instruments at fair value with changes in total profit or loss: These instruments are
subsequently recognised at fair value, recognising changes in fair value in 'Other
comprehensive income'. Interest income, impairment losses and exchange differences are
recognised in the consolidated income statement. When sold or derecognised, the
accumulated fair value adjustments recognised in \"Other comprehensive income\" are included
in the income statement as 'other financial income/(expenses)'.
4.Equity instruments at fair value with changes in total profit or loss: They are subsequently
measured at fair value. Dividends are only recorded in profits and loss, unless the dividends
clearly represent a recovery in the cost of the investment. Other gains or losses are
recognised as 'Other comprehensive income' and are never reclassified as profit or loss.
5.Financial assets at cost: Financial assets that should be classified in the above category, but
their fair value cannot reliably be estimated.
Impairment of financial assets
The impairment model applies to financial assets measured at amortised cost that include the item
\"Customers and other receivables\".
The impairment model is based on a dual measurement approach, under which there will be an
impairment provision based on expected losses over the next 12 months or based on expected losses
over the entire life of the asset. The fact that determines the transition from the first approach to the
second is that there is a significant decline in creditworthiness.
The deterioration of the Group's receivables was not significant, taking into account that the risk of
default was less than 1% of turnover and that the Group has deposits from its tenants to secure its
loans.
Financial liabilities
The main financial liabilities held by the Group companies are held-to-maturity financial liabilities,
which are measured at amortised cost. The financial liabilities held by the Group companies are
classified as:
1.Bank loans and other loans: loans from banks and other lenders are recognised by the
proceeds received, net of transaction costs.
Borrowings are subsequently measured at amortised cost. Any difference between the proceeds
(net of transaction costs) and the redemption value is recognised in the income statement over the
term of the borrowings using the effective interest method.
Financial debt is eliminated from the consolidated statement of financial position when the
obligation specified in the agreement is paid, cancelled or expired. The difference between the
carrying amount of a financial liability that has been cancelled or transferred to another party and
the consideration paid, including any transferred assets other than the cash or liabilities assumed,
is recognised in profit or loss for the year as other financial income or expenses.
Exchanges of debt instruments between the Group and the counterparty or substantial changes in
the liabilities initially recognised are accounted for as a cancellation of the original liability and the
recognition of a new financial liability, provided that the instruments have substantially different
terms. The Group considers that the terms are substantially different if the discounted present
value of the cash flows under the new terms, including any fees paid net of any fees received and
discounted using the original effective interest rate, is at least ten per cent different from the
discounted present value of the remaining cash flows of the original financial liability.
If the exchange is recognised as a cancellation of the original financial liability, the costs or fees
are recognised in the consolidated income statement as part of the consolidated income
statement. Otherwise, the modified flows are discounted at the original effective interest rate,
recognising any difference with the prior carrying amount, in profit or loss. Likewise, the costs or
fees adjust the carrying amount of the financial liability and are amortised by the amortised cost
method for the remaining life of the modified liability.
The Group recognises the difference between the carrying amount of a financial liability or the part
of it cancelled or transferred to a third party and the consideration paid, including any assets
transferred other than the cash or liabilities assumed in profit or loss.
The Group will account for exchanges of debt instruments with a lender, provided that the
instruments have substantially different conditions, such as a cancellation of the original financial
liability and subsequent recognition of a new financial liability. Similarly, a substantial change in the
terms of an existing financial liability or a part of it will be recognised as a cancellation of the
original financial liability and a subsequent recognition of a new financial liability. The difference
between the carrying amount of the cancelled financial liability and the consideration paid, which
includes any transferred assets other than cash or any liabilities assumed, will be recognised in
profit or loss for the year.
If it is determined that the new terms or changes of a financial liability are not substantially different
from the existing ones and it is therefore determined that the change is not substantial, the existing
financial liability will not be derecognised. The Group will recalculate the gross carrying amount of
the financial liability and recognise a change gain or loss in profit/(loss). The gross carrying
amount of the financial liability will be recalculated as the present value of the renegotiated or
modified contractual cash flows discounted at the original effective interest rate of the financial
liability.
2.Trade and other payables: trade payables are initially recognised at fair value and are
subsequently measured at amortised cost using the effective interest method.
The Group derecognises financial liabilities when the obligations giving rise to them cease to exist.
5.6 Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge the risks to which its future activities,
transactions and cash flows are exposed. These risks are mainly due to changes in interest rates.
Among the various transactions, the Group uses certain financial instruments as economic hedges.
Derivatives are initially recognised at fair value on the date on which the derivative contract is signed
and are subsequently measured at fair value at each reporting date. Subsequent changes in fair value
are recognised depending on whether the derivative has been designated as a hedging instrument
and, if so, on the nature of the item being hedged.
At the beginning of the hedging relationship, the Group documents the economic relationship between
the hedging instruments and the hedged items, including whether changes in the cash flows of the
hedging instruments are expected to offset changes in the cash flows of the hedged items. The Group
documents its risk management objective and strategy to undertake its hedge transactions.
The effective part of the changes in the fair value of the derivatives that are designated and classified
as cash flow hedges is recognised in the cash flow hedge reserve under equity. The loss or gain
relating to the ineffective part is immediately recognised in the consolidated income for the year under
'Changes in the fair value of financial instruments' in the consolidated income statement.
Gains or losses relating to the effective part of the change in the intrinsic value of the option
agreements are recognised in the cash flow reserve hedge under equity. Changes in the time value of
option agreements that relate to the hedged item ('aligned time value') are recognised under other
comprehensive income in the costs of the hedge reserve in equity.
When forward contracts are used to hedge expected transactions, the Group generally designates
only the change in the fair value of the forward contract related to the cash component as the hedging
instrument. Gains or losses related to the effective part of the change in the cash component of
forward contracts are recognised in the cash flow hedge reserve under equity. The change in the
forward element of the contract related to the hedged item is recognised in other comprehensive
income on the costs of the hedge reserve under equity. In some cases, the gains or losses
corresponding to the effective part of the change in fair value of the full term contract are recognised in
the cash flow hedge reserve under equity.
\u2013Cash flow hedges: In hedges of this nature, the portion of the gain or loss on the hedging
instrument that has been determined to be an effective hedge is recognised temporarily in
equity and is recognised in the income statement in the same period during which the hedged
item affects profit or loss, unless the hedge relates to a forecast transaction that results in the
recognition of a non-financial asset or a non-financial liability, in which case the amounts
recognised in equity are included in the initial cost of the asset or liability when it is acquired or
assumed.
\u2013Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated
or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gains or
losses on the hedging instrument recognised in equity are retained in equity until the forecast
transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative
gain or loss recognised in equity is transferred to net profit or loss for the year.
Derivatives embedded in other financial instruments or other host contracts are treated as separate
derivatives when their risks and characteristics are not closely related to those of the host contracts
and provided that the host contracts are not measured at fair value by recognising changes in fair
value in the consolidated statement of comprehensive income.
The fair value of the derivative financial instruments is calculated using the valuation techniques
described in Note 5.7 below.
5.8 Equity instruments
An equity instrument is a contract that evidences a residual interest in the assets of the Parent after
deducting all of its liabilities.
Capital instruments issued by the Parent are recognised in equity at the proceeds received, net of
issue costs.
The Parent Company's equity instruments acquired by the Group are recognised separately at cost
and deducted from equity in the consolidated statement of financial position, regardless of why they
were acquired. No gains or losses from transactions involving own equity instruments are recognised
in the consolidated income statement.
The subsequent amortisation of the equity instruments of the Parent gives rise to a capital reduction
for the nominal amount of said shares and the positive or negative difference between the acquisition
price and the nominal value of the shares is charged or credited to accounts of reserves.
The transaction costs related to own equity instruments are recognised as a decrease in equity, net of
any related tax effect.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzYwNDczMTQxMzIxNjg_bacf8f43-d28d-47d3-a93c-d79829b671eb": {
"value": "
The classification of financial assets will depend both on how an entity manages its financial
instruments (its business model) and on the existence and characteristics of the contractual cash flows
of the financial assets. Based on the above, the asset is measured at amortised cost, at fair value
through changes in other comprehensive income or at fair value through changes in profit or loss for
the period, as follows:
\u2013If the objective of the business model is to hold a financial asset to collect contractual cash
flows and, depending on the terms of the contract, cash flows that are solely payments of
principal and interest on that principal are received on specified dates, the financial asset is
measured at amortised cost.
\u2013If the objective of the business model is both to collect contractual cash flows and sell financial
assets and, depending on the terms of the contract, cash flows that are solely payments of
principal and interest on that principal are received on specified dates, the financial asset is
measured at fair value through other comprehensive income (equity).
Outside these scenarios, the remaining assets will be measured at fair value through changes in
losses and gains. All equity instruments (e.g. shares) are, by default, measured in this category. This is
because their contractual flows do not meet the characteristic of being only payments of principal and
interest. Financial derivatives are also classified as financial assets at fair value through profit or loss
unless they are designated as hedging instruments.
For the purposes of measurement, financial assets should be classified into one of the following
categories, with the accounting policies of each category being as follows:
1.Financial assets at amortised cost: these assets are subsequently recognised at their initial
cost amortised in accordance with the effective interest method. This amortised cost will be
reduced by any impairment loss. They are recognised in the consolidated income statement
for the period when the financial asset is de-recognised or impaired, or due to exchange
differences. Interest calculated using the effective interest method is recognised in the income
statement under the heading 'Financial income'.
2.Financial assets at fair value with profit or loss: financial assets at fair value with profit or loss
are recognised initially and subsequently at fair value, excluding transaction costs, which are
charged to the income statement. Gains or losses from changes in fair value are presented in
the income statement under the heading 'Changes in the fair value of financial instruments' in
the period in which they originated. Any dividends and interest also leads to financial results.
3.Debt instruments at fair value with changes in total profit or loss: These instruments are
subsequently recognised at fair value, recognising changes in fair value in 'Other
comprehensive income'. Interest income, impairment losses and exchange differences are
recognised in the consolidated income statement. When sold or derecognised, the
accumulated fair value adjustments recognised in \"Other comprehensive income\" are included
in the income statement as 'other financial income/(expenses)'.
4.Equity instruments at fair value with changes in total profit or loss: They are subsequently
measured at fair value. Dividends are only recorded in profits and loss, unless the dividends
clearly represent a recovery in the cost of the investment. Other gains or losses are
recognised as 'Other comprehensive income' and are never reclassified as profit or loss.
5.Financial assets at cost: Financial assets that should be classified in the above category, but
their fair value cannot reliably be estimated.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjE_d683ba4a-a0a6-4e64-822c-766908c1b2c5": {
"value": "Financial assets at fair value with profit or loss: financial assets at fair value with profit or loss
are recognised initially and subsequently at fair value, excluding transaction costs, which are
charged to the income statement. Gains or losses from changes in fair value are presented in
the income statement under the heading 'Changes in the fair value of financial instruments' in
the period in which they originated. Any dividends and interest also leads to financial results.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjI_f88a45cd-74a0-48b4-8bdc-f1ad15743596": {
"value": "
Impairment of financial assets
The impairment model applies to financial assets measured at amortised cost that include the item
\"Customers and other receivables\".
The impairment model is based on a dual measurement approach, under which there will be an
impairment provision based on expected losses over the next 12 months or based on expected losses
over the entire life of the asset. The fact that determines the transition from the first approach to the
second is that there is a significant decline in creditworthiness.
The deterioration of the Group's receivables was not significant, taking into account that the risk of
default was less than 1% of turnover and that the Group has deposits from its tenants to secure its
loans.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
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"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjM_3f798327-87fc-4856-96de-4cdbbaaa3c55": {
"value": "
Financial liabilities
The main financial liabilities held by the Group companies are held-to-maturity financial liabilities,
which are measured at amortised cost. The financial liabilities held by the Group companies are
classified as:
1.Bank loans and other loans: loans from banks and other lenders are recognised by the
proceeds received, net of transaction costs.
Borrowings are subsequently measured at amortised cost. Any difference between the proceeds
(net of transaction costs) and the redemption value is recognised in the income statement over the
term of the borrowings using the effective interest method.
Financial debt is eliminated from the consolidated statement of financial position when the
obligation specified in the agreement is paid, cancelled or expired. The difference between the
carrying amount of a financial liability that has been cancelled or transferred to another party and
the consideration paid, including any transferred assets other than the cash or liabilities assumed,
is recognised in profit or loss for the year as other financial income or expenses.
Exchanges of debt instruments between the Group and the counterparty or substantial changes in
the liabilities initially recognised are accounted for as a cancellation of the original liability and the
recognition of a new financial liability, provided that the instruments have substantially different
terms. The Group considers that the terms are substantially different if the discounted present
value of the cash flows under the new terms, including any fees paid net of any fees received and
discounted using the original effective interest rate, is at least ten per cent different from the
discounted present value of the remaining cash flows of the original financial liability.
If the exchange is recognised as a cancellation of the original financial liability, the costs or fees
are recognised in the consolidated income statement as part of the consolidated income
statement. Otherwise, the modified flows are discounted at the original effective interest rate,
recognising any difference with the prior carrying amount, in profit or loss. Likewise, the costs or
fees adjust the carrying amount of the financial liability and are amortised by the amortised cost
method for the remaining life of the modified liability.
The Group recognises the difference between the carrying amount of a financial liability or the part
of it cancelled or transferred to a third party and the consideration paid, including any assets
transferred other than the cash or liabilities assumed in profit or loss.
The Group will account for exchanges of debt instruments with a lender, provided that the
instruments have substantially different conditions, such as a cancellation of the original financial
liability and subsequent recognition of a new financial liability. Similarly, a substantial change in the
terms of an existing financial liability or a part of it will be recognised as a cancellation of the
original financial liability and a subsequent recognition of a new financial liability. The difference
between the carrying amount of the cancelled financial liability and the consideration paid, which
includes any transferred assets other than cash or any liabilities assumed, will be recognised in
profit or loss for the year.
If it is determined that the new terms or changes of a financial liability are not substantially different
from the existing ones and it is therefore determined that the change is not substantial, the existing
financial liability will not be derecognised. The Group will recalculate the gross carrying amount of
the financial liability and recognise a change gain or loss in profit/(loss). The gross carrying
amount of the financial liability will be recalculated as the present value of the renegotiated or
modified contractual cash flows discounted at the original effective interest rate of the financial
liability.
2.Trade and other payables: trade payables are initially recognised at fair value and are
subsequently measured at amortised cost using the effective interest method.
The Group derecognises financial liabilities when the obligations giving rise to them cease to exist.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjQ_cc0dd62b-88ed-45af-bb90-1b483a526b85": {
"value": "Bank loans and other loans: loans from banks and other lenders are recognised by the
proceeds received, net of transaction costs.
Borrowings are subsequently measured at amortised cost. Any difference between the proceeds
(net of transaction costs) and the redemption value is recognised in the income statement over the
term of the borrowings using the effective interest method.
Financial debt is eliminated from the consolidated statement of financial position when the
obligation specified in the agreement is paid, cancelled or expired. The difference between the
carrying amount of a financial liability that has been cancelled or transferred to another party and
the consideration paid, including any transferred assets other than the cash or liabilities assumed,
is recognised in profit or loss for the year as other financial income or expenses.
Exchanges of debt instruments between the Group and the counterparty or substantial changes in
the liabilities initially recognised are accounted for as a cancellation of the original liability and the
recognition of a new financial liability, provided that the instruments have substantially different
terms. The Group considers that the terms are substantially different if the discounted present
value of the cash flows under the new terms, including any fees paid net of any fees received and
discounted using the original effective interest rate, is at least ten per cent different from the
discounted present value of the remaining cash flows of the original financial liability.
If the exchange is recognised as a cancellation of the original financial liability, the costs or fees
are recognised in the consolidated income statement as part of the consolidated income
statement. Otherwise, the modified flows are discounted at the original effective interest rate,
recognising any difference with the prior carrying amount, in profit or loss. Likewise, the costs or
fees adjust the carrying amount of the financial liability and are amortised by the amortised cost
method for the remaining life of the modified liability.
The Group recognises the difference between the carrying amount of a financial liability or the part
of it cancelled or transferred to a third party and the consideration paid, including any assets
transferred other than the cash or liabilities assumed in profit or loss.
The Group will account for exchanges of debt instruments with a lender, provided that the
instruments have substantially different conditions, such as a cancellation of the original financial
liability and subsequent recognition of a new financial liability. Similarly, a substantial change in the
terms of an existing financial liability or a part of it will be recognised as a cancellation of the
original financial liability and a subsequent recognition of a new financial liability. The difference
between the carrying amount of the cancelled financial liability and the consideration paid, which
includes any transferred assets other than cash or any liabilities assumed, will be recognised in
profit or loss for the year.
If it is determined that the new terms or changes of a financial liability are not substantially different
from the existing ones and it is therefore determined that the change is not substantial, the existing
financial liability will not be derecognised. The Group will recalculate the gross carrying amount of
the financial liability and recognise a change gain or loss in profit/(loss). The gross carrying
amount of the financial liability will be recalculated as the present value of the renegotiated or
modified contractual cash flows discounted at the original effective interest rate of the financial
liability.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjU_c2c52531-9936-44fa-896d-839cf38ff2b7": {
"value": "Trade and other payables: trade payables are initially recognised at fair value and are subsequently measured at amortised cost using the effective interest method.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjY_6b9d1c88-df21-4f79-8783-f90271280079": {
"value": "The Group derecognises financial liabilities when the obligations giving rise to them cease to exist",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjc_3938f612-e2c3-4236-b7aa-0d776f1c6d37": {
"value": "
5.6 Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge the risks to which its future activities,
transactions and cash flows are exposed. These risks are mainly due to changes in interest rates.
Among the various transactions, the Group uses certain financial instruments as economic hedges.
Derivatives are initially recognised at fair value on the date on which the derivative contract is signed
and are subsequently measured at fair value at each reporting date. Subsequent changes in fair value
are recognised depending on whether the derivative has been designated as a hedging instrument
and, if so, on the nature of the item being hedged.
At the beginning of the hedging relationship, the Group documents the economic relationship between
the hedging instruments and the hedged items, including whether changes in the cash flows of the
hedging instruments are expected to offset changes in the cash flows of the hedged items. The Group
documents its risk management objective and strategy to undertake its hedge transactions.
The effective part of the changes in the fair value of the derivatives that are designated and classified
as cash flow hedges is recognised in the cash flow hedge reserve under equity. The loss or gain
relating to the ineffective part is immediately recognised in the consolidated income for the year under
'Changes in the fair value of financial instruments' in the consolidated income statement.
Gains or losses relating to the effective part of the change in the intrinsic value of the option
agreements are recognised in the cash flow reserve hedge under equity. Changes in the time value of
option agreements that relate to the hedged item ('aligned time value') are recognised under other
comprehensive income in the costs of the hedge reserve in equity.
When forward contracts are used to hedge expected transactions, the Group generally designates
only the change in the fair value of the forward contract related to the cash component as the hedging
instrument. Gains or losses related to the effective part of the change in the cash component of
forward contracts are recognised in the cash flow hedge reserve under equity. The change in the
forward element of the contract related to the hedged item is recognised in other comprehensive
income on the costs of the hedge reserve under equity. In some cases, the gains or losses
corresponding to the effective part of the change in fair value of the full term contract are recognised in
the cash flow hedge reserve under equity.
\u2013Cash flow hedges: In hedges of this nature, the portion of the gain or loss on the hedging
instrument that has been determined to be an effective hedge is recognised temporarily in
equity and is recognised in the income statement in the same period during which the hedged
item affects profit or loss, unless the hedge relates to a forecast transaction that results in the
recognition of a non-financial asset or a non-financial liability, in which case the amounts
recognised in equity are included in the initial cost of the asset or liability when it is acquired or
assumed.
\u2013Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated
or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gains or
losses on the hedging instrument recognised in equity are retained in equity until the forecast
transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative
gain or loss recognised in equity is transferred to net profit or loss for the year.
Derivatives embedded in other financial instruments or other host contracts are treated as separate
derivatives when their risks and characteristics are not closely related to those of the host contracts
and provided that the host contracts are not measured at fair value by recognising changes in fair
value in the consolidated statement of comprehensive income.
The fair value of the derivative financial instruments is calculated using the valuation techniques
described in Note 5.7 below.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjg_02671c38-2b6e-444d-9911-7d8a81132a1e": {
"value": "
Derivatives are initially recognised at fair value on the date on which the derivative contract is signed
and are subsequently measured at fair value at each reporting date. Subsequent changes in fair value
are recognised depending on whether the derivative has been designated as a hedging instrument
and, if so, on the nature of the item being hedged.
Derivatives embedded in other financial instruments or other host contracts are treated as separate
derivatives when their risks and characteristics are not closely related to those of the host contracts
and provided that the host contracts are not measured at fair value by recognising changes in fair
value in the consolidated statement of comprehensive income.
The fair value of the derivative financial instruments is calculated using the valuation techniques
described in Note 5.7 below.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzA_f975ce9d-f299-4fbd-9b23-59b728311dd9": {
"value": "
At the beginning of the hedging relationship, the Group documents the economic relationship between
the hedging instruments and the hedged items, including whether changes in the cash flows of the
hedging instruments are expected to offset changes in the cash flows of the hedged items. The Group
documents its risk management objective and strategy to undertake its hedge transactions.
The effective part of the changes in the fair value of the derivatives that are designated and classified
as cash flow hedges is recognised in the cash flow hedge reserve under equity. The loss or gain
relating to the ineffective part is immediately recognised in the consolidated income for the year under
'Changes in the fair value of financial instruments' in the consolidated income statement.
Gains or losses relating to the effective part of the change in the intrinsic value of the option
agreements are recognised in the cash flow reserve hedge under equity. Changes in the time value of
option agreements that relate to the hedged item ('aligned time value') are recognised under other
comprehensive income in the costs of the hedge reserve in equity.
When forward contracts are used to hedge expected transactions, the Group generally designates
only the change in the fair value of the forward contract related to the cash component as the hedging
instrument. Gains or losses related to the effective part of the change in the cash component of
forward contracts are recognised in the cash flow hedge reserve under equity. The change in the
forward element of the contract related to the hedged item is recognised in other comprehensive
income on the costs of the hedge reserve under equity. In some cases, the gains or losses
corresponding to the effective part of the change in fair value of the full term contract are recognised in
the cash flow hedge reserve under equity.
\u2013Cash flow hedges: In hedges of this nature, the portion of the gain or loss on the hedging
instrument that has been determined to be an effective hedge is recognised temporarily in
equity and is recognised in the income statement in the same period during which the hedged
item affects profit or loss, unless the hedge relates to a forecast transaction that results in the
recognition of a non-financial asset or a non-financial liability, in which case the amounts
recognised in equity are included in the initial cost of the asset or liability when it is acquired or
assumed.
\u2013Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated
or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gains or
losses on the hedging instrument recognised in equity are retained in equity until the forecast
transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative
gain or loss recognised in equity is transferred to net profit or loss for the year.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzI_5fb5b6b2-fc10-43d5-942f-1a1c1e797e9d": {
"value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2022:
2022
| | | | |
| |
| | | | |
| | | | |
Derivative financial instruments (Note 14.3) | | | | |
Financial instruments - assets (Note 14.3) | | | | |
| | | | |
2021
| | | | |
| |
| | | | |
| | | | |
Derivative financial instruments (Note 14.3) | | | | |
Embedded derivatives (Note 10) | | | | |
Financial assets at fair value through profit or loss (Note 10) | | | | |
| | | | |
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzI_d7803e06-867b-4810-b9d2-0d1db52aacac": {
"value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2022:
2022
| | | | |
| |
| | | | |
| | | | |
Derivative financial instruments (Note 14.3) | | | | |
Financial instruments - assets (Note 14.3) | | | | |
| | | | |
2021
| | | | |
| |
| | | | |
| | | | |
Derivative financial instruments (Note 14.3) | | | | |
Embedded derivatives (Note 10) | | | | |
Financial assets at fair value through profit or loss (Note 10) | | | | |
| | | | |
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
Fair value measurement and sensitivity
All investment property leased or to be leased through operating leases are classified as investment
property.
According to IAS 40, the Group periodically determines the fair value of its investment property so that
the fair value reflects the actual market conditions of the investment property items at that date. This
fair value is determined each year based on the appraisals undertaken by independent experts.
The market value of the Group's investment property as of 31 December 2022 and 2021, calculated
based on appraisals performed by Savills Consultores Inmobiliarios, S.A., CBRE Valuation Advisory,
S.A. and Jones Lang LaSalle, S.A. independent appraisers not related to the Group, amounted to
EUR 10,558, 975 thousand (EUR 12,402,279 in 2021). This measurement does not include the value
of the use rights recognised by the application of IFRS 16 for EUR 37,152 thousand (EUR 34,805
thousand in 2021) or the amounts relating to advances paid by the Group to third parties for the
purchase of assets or other non-valued assets amounting to EUR 118,072 thousand (EUR 27,253
thousand in 2021) mainly assets intended for Data Centres. Likewise, the valuation for 2021 included
the value of the embedded derivative of the lease rent with BBVA for EUR 167,080 thousand, which
was recorded under \"Other non-current financial assets\". The valuation was performed in accordance
with the Appraisal and Valuation Standards issued by the Royal Institute of Chartered Surveyors
(RICS) of the United Kingdom and the International Valuation Standards (IVS) issued by the
International Valuation Standards Committee (IVSC). In relation to the fair value of the rights of use,
the Group also obtained valuations from independent third parties.
The method used to calculate the market value of the investment property involves drawing up ten-
year projections of income and expenses for each asset, adjusted at the reporting date using a market
discount rate. The residual amount at the end of year 10 is calculated by applying an exit yield or cap
rate to the net income projections for year 11. The market values obtained are analysed by calculating
and assessing the capitalisation of the returns implicit in these values. The projections are designed to
reflect the best estimate of future income and expenses from the investment properties. Both the exit
yield and discount rate are determined taking into account the national market and institutional market
conditions.
Fees paid by the Group to valuers for appraisal services rendered up to 31 December 2022 and 2021
were as follows:
(*) includes valuation of Net Lease segment
Breakdown of fair value of investment property
A breakdown of assets measured at fair value by their level in the fair value hierarchy is as follows:
2022
| | | | |
| |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total assets measured at fair value | | | | |
The quantitative information on the significant non-observable input data used in measuring fair value
is shown below.
2022
2021
(*) Discontinued activity and disposed of in 2022
Market rents: the amounts per square metre used in the valuation have ranged between 107.33 and
2.25 euros depending on the type of asset and location. The growth rates of the rents used in the
projections are mainly based on the CPI. It should be noted that the minimum range relates to a
logistics asset and the maximum range is a retail asset located in a prime zone.
Analysis of the sensitivity of the hypotheses
The effect of one-quarter, half and one point change in the required rates of return (the \"IRR\", the rate
used to discount the cash flows of the projections) on the consolidated assets and in the consolidated
income statement with respect to investment properties, would be as follows:
31 December 2022
| | | | | | |
| |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
31 December 2021 (*)
| | | | | | |
| |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
(*) Reexpresed information
The effect of a 1%, 5% and 10% change in the rents considered has the following impact on
investment property in consolidated assets and in the consolidated income statement:
31 December 2022
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
31 December 2021
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The effect of the quarter, half, and one point change in the considered exit yield, in the assumption
based on return calculated as the result of dividing the net operating income of the last year of the
period analysed by the estimated exit yield, on investment property in the consolidated asset and in
the consolidated income statement, would be as follows:
31 December 2022
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
31 December 2021 (*)
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
(*) Reexpresed information
Details of the \"Change in value of investment property\" in the accompanying consolidated income
statement are as follows:
| | |
| |
| |
| | |
| | |
| | |
| | |
| | |
| | |
(*) Reexpresed information | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNjA_3b9dda98-8870-443e-af09-4d488f7325df": {
"value": "
5.8 Equity instruments
An equity instrument is a contract that evidences a residual interest in the assets of the Parent after
deducting all of its liabilities.
Capital instruments issued by the Parent are recognised in equity at the proceeds received, net of
issue costs.
The Parent Company's equity instruments acquired by the Group are recognised separately at cost
and deducted from equity in the consolidated statement of financial position, regardless of why they
were acquired. No gains or losses from transactions involving own equity instruments are recognised
in the consolidated income statement.
The subsequent amortisation of the equity instruments of the Parent gives rise to a capital reduction
for the nominal amount of said shares and the positive or negative difference between the acquisition
price and the nominal value of the shares is charged or credited to accounts of reserves.
The transaction costs related to own equity instruments are recognised as a decrease in equity, net of
any related tax effect.
",
"dimensions": {
"concept": "mer:DescriptionOfAccountingPolicyForEquityInstrumentsTextBlock",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzM_e04349da-d4f9-414f-aaf9-ec5f2ecb1102": {
"value": "
5.9 Distributions to shareholders
Dividends are paid in cash and recognised as a reduction in equity when the pay-outs are approved by
shareholders at the Annual General Meeting.
The Parent Company is subject to the special regime for REITs. As in Article 6 of Law 11/2009, of 26
October 2009, amended by REITs Act 2012 opting to pay tax under the special tax regime are required
to distribute the profit generated during the year to shareholders as dividends. Once the corresponding
commercial obligations have been fulfilled, said distribution must be agreed within six months from
year end, and the dividends paid within 30 days from the date on which the pay-out is agreed.
Moreover, as specified in Law 11/2009, of 26 October 2009, amended by Law 16/2012, of 27
December, the Parent must distribute the following as dividends:
\u2022100% of the profit from dividends or shares in profits distributed by the entities referred to in
section 1, Article 2 of Law 11/2009.
\u2022At least 50% of the profits arising from the transfer of the properties, shares or ownership
interests referred to in section 1, Article 2 of Law 11/2009, subsequent to expiry of the time
limits referred to in section 2, Article 3 of Law 11/2009, which are used for pursuit of the
entities' principal corporate purpose. The remainder of these profits must be reinvested in
other property or investments used for the pursuit of said activity within three years after the
transfer date. Otherwise these profits should be distributed in full together with any profit
arising in the year in which the reinvestment period expires. If the items to be reinvested are
transferred prior to the end of the holding period, that profit must be distributed in full together
with, if applicable, the profit generated during the year in which the items were transferred.
The obligation to distribute profit does not apply to the portion of the profit attributable to prior
years in which the Company was not included under the special tax regime in this Act.
\u2022At least 80% of the remaining profits obtained. When dividend distributions are charged to
reserves generated from profits in a year in which the special tax regime applied, the
distribution must necessarily be approved as set out above.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzQ_1ceff972-adcd-48b7-8338-92a724ff556b": {
"value": "
5.10 Cash and cash equivalents
The Group includes under this heading cash and short-term highly liquid investments maturing in less
than three months that are readily convertible to cash and which are subject to an insignificant risk of
changes in value. The interest income associated with these transactions is recognised as income
when accrued while unmatured interest is presented in the consolidated statement of financial position
as an addition to the balance of the above heading.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzU_3812a3ff-2a7a-4b92-97e3-0eeaae668f93": {
"value": "
5.11 Provisions
When preparing the consolidated financial statements the Parent's directors made a distinction
between:
\u2022Provisions: credit balances covering present obligations arising from past events with respect
to which it is probable that an outflow of resources embodying economic benefits that is
uncertain as to its amount and/or timing will be required to settle the obligations; and
\u2022Contingent liabilities: possible obligations that arise from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more future events not
wholly within the Group's control.
The consolidated financial statements include all the provisions with respect to which it is likely that the
obligation will have to be settled. Contingent liabilities are not recognised in the consolidated financial
statements but rather are disclosed in the notes to the consolidated financial statements, unless the
possibility of an outflow in settlement is considered to be remote.
Provisions are measured at the present value of the best possible estimate of the amount required to
settle or transfer the obligation, taking into account the information available on the event and its
consequences. Where discounting is used, adjustments made to provisions are recognised as finance
cost on an accrual basis.
The compensation receivable from a third party on settlement of the obligation is recognised as an
asset, provided there is no doubt that the reimbursement will take place, unless there is a legal
relationship whereby a portion of the risk has been externalised, as a result of which the Group is not
liable, in which case, the compensation will be taken into account when estimating, if appropriate, the
amount of the related provision.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzc_e38138a4-6be7-4fdc-a3f4-dc969ada7fd7": {
"value": "Contingent liabilities: possible obligations that arise from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more future events not
wholly within the Group's control.
Contingent liabilities are not recognised in the consolidated financial
statements but rather are disclosed in the notes to the consolidated financial statements, unless the
possibility of an outflow in settlement is considered to be remote.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzg_80de715e-bcde-4823-ab04-09043d945a0e": {
"value": "
5.12 Revenue recognition
Revenue and expenses are recognised on an accrual basis, i.e. when the actual flow of the related
goods and services occurs, regardless of when the resulting monetary or financial flow arises. Rental
income is measured at the fair value of the consideration received, net of discounts and taxes.
Discounts (rent waivers and rebates) granted to lessees are recognised as a reduction in rental
income when it is probable that conditions precedent will be fulfilled requiring them to be granted.
Discounts are recognised by expensing the total rent waiver or rebate on a straight-line basis over the
term of the lease in force. If a lease is cancelled earlier than expected, any outstanding rent waiver or
rebate is recognised in the last period prior to the end of the agreement.
Leasing of investment property to third parties
The Group companies' principal activity comprises the acquisition and leasing of primarily Shopping
centres, logistics units and offices. The Group's ordinary income is generated from the leasing of this
investment property to third parties.
Ordinary income from the leasing of investment property is recognised taking into account the stage of
completion of the transaction at the reporting date, provided the result of the transaction can be
reliably estimated. Income from the Group's leases is recognised by Group companies on a monthly
basis pursuant to the conditions and amounts agreed with the lessees in the various agreements. This
income is only recognised when it can be measured reliably and it is probable that the economic
benefits from the lease will be received.
Where the outcome of services rendered cannot be measured reliably, revenue is recognised to the
extent that the expenses incurred are deemed recoverable.
Service charges re-billed to lessees are recognised net of other operating expenses.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzNzk_de86ad51-e29b-4063-8dac-f21224c1c0c9": {
"value": "
Discounts (rent waivers and rebates) granted to lessees are recognised as a reduction in rental
income when it is probable that conditions precedent will be fulfilled requiring them to be granted.
Discounts are recognised by expensing the total rent waiver or rebate on a straight-line basis over the
term of the lease in force. If a lease is cancelled earlier than expected, any outstanding rent waiver or
rebate is recognised in the last period prior to the end of the agreement.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODA_c2a67674-a640-43b6-8559-9897d1fa70b4": {
"value": "
5.13 Income tax
5.13.1 General regime
Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax
expense (deferred tax income).
The current income tax expense is the amount payable by the Group as a result of income tax
settlements for a given year. Tax credits and other tax benefits, excluding tax withholdings and pre-
payments, and tax loss carryforwards from prior years effectively offset in the current year reduce the
current income tax expense.
The deferred tax expense or income relates to the recognition and derecognition of deferred tax
assets and liabilities. These include temporary differences measured at the amount expected to be
payable or recoverable on differences between the carrying amounts of assets and liabilities and their
tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates
that are expected to apply in the period when the asset is realised or the liability is settled.
Deferred tax liabilities are recognised for all taxable temporary differences, unless the temporary
difference arises from the initial recognition of goodwill, goodwill for which amortisation is not
deductible for tax purposes or the initial recognition of other assets and liabilities in a transaction that
affects neither accounting profit (loss) nor taxable profit (tax loss).
Deferred tax assets are recognised for temporary differences to the extent that it is considered
probable that the consolidated companies will have sufficient taxable profits in the future against which
the deferred tax asset can be utilised, and the deferred tax assets do not arise from the initial
recognition of other assets and liabilities in a transaction that affects neither accounting profit (loss) nor
taxable profit (tax loss). The other deferred tax assets (tax loss, temporary differences and tax credit
carryforwards) are only recognised if it is considered probable that the consolidated companies will
have sufficient future taxable profits against which they can be utilised.
The deferred tax assets recognised are reassessed at the end of each reporting period and the
appropriate adjustments are made to the extent that there are doubts as to their future recoverability.
Also, unrecognised deferred tax assets are reassessed at the end of each reporting period and are
recognised to the extent that it has become probable that they will be recovered through future taxable
profits.
5.13.2 REIT regime
The REIT special tax regime, as amended by Law 16/2012 of 27 December, is based on a 0%
corporate income tax rate, provided certain requirements are met. Particularly noteworthy amongst
those conditions is that at least 80% of income must come from urban real estate used for leasing
purposes and acquired in full ownership or through holdings in Spanish or foreign companies,
regardless of whether or not they are listed on organised markets, that meet the same investment and
profit distribution requirements. Likewise, the main sources of income for these entities must come
from the real estate market, either through leasing the properties, their subsequent sale after a
minimum lease period, or the income generated from holdings in entities with similar characteristics.
Nevertheless, tax is accrued in proportion to dividend distributions. Dividends received by the
shareholders are exempt, unless the recipient is a legal person subject to corporate income tax or a
permanent establishment of a foreign entity, in which case a deduction in the tax liability is established,
so that these earnings are taxed at the shareholder's rate. However, the remaining earnings must be
not be taxed provided that they are not distributed to shareholders.
As in Transitional Provision Nine of Law 11/2009, of 26 October, amended by Law 16/2012, of 27
December, which regulate REITs, the entity will be subject to a special tax rate of 19% on the total
dividends or profit shares distributed to shareholders with a shareholding in the entity of 5% or more,
when these dividends are exempt or taxed at a rate below 10% in the shareholders. The Group has
therefore established the procedure guaranteeing confirmation by shareholders of their tax rate,
proceeding where applicable, to withhold 19% of the dividend distributed to shareholders that do not
meet the above tax requirements.\u00a0 \u00a0 \u00a0
With effect for financial years beginning on or after 1 January 2021, Law 11/2021, of 9 July, on
measures to prevent and combat tax fraud amended Article 9 (4) of Spanish Law 11/2009, of 26
October, regulating REITs. Specifically, a special tax of 15% was introduced on the amount of profit
obtained in the year which is not distributed, in the portion that arises from: a) income that has not
been taxed at the general corporate income tax rate and, b) income that does not arise from the
transfer of eligible assets, once the three-year maintenance period has elapsed, which has been
included in the three-year reinvestment period in Article 6.1.b) of Law 16/2012, of 27 December. This
special tax will be considered corporate income tax and will accrue on the day of the agreement to
apply profit for the year by the general shareholders meeting or equivalent body. The self-assessment
and payment of the tax must be performed within two months of the accrual.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODE_9cc2b5ad-ed25-4739-8362-58648cc2d312": {
"value": "
The deferred tax expense or income relates to the recognition and derecognition of deferred tax
assets and liabilities. These include temporary differences measured at the amount expected to be
payable or recoverable on differences between the carrying amounts of assets and liabilities and their
tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates
that are expected to apply in the period when the asset is realised or the liability is settled.
Deferred tax liabilities are recognised for all taxable temporary differences, unless the temporary
difference arises from the initial recognition of goodwill, goodwill for which amortisation is not
deductible for tax purposes or the initial recognition of other assets and liabilities in a transaction that
affects neither accounting profit (loss) nor taxable profit (tax loss).
Deferred tax assets are recognised for temporary differences to the extent that it is considered
probable that the consolidated companies will have sufficient taxable profits in the future against which
the deferred tax asset can be utilised, and the deferred tax assets do not arise from the initial
recognition of other assets and liabilities in a transaction that affects neither accounting profit (loss) nor
taxable profit (tax loss). The other deferred tax assets (tax loss, temporary differences and tax credit
carryforwards) are only recognised if it is considered probable that the consolidated companies will
have sufficient future taxable profits against which they can be utilised.
The deferred tax assets recognised are reassessed at the end of each reporting period and the
appropriate adjustments are made to the extent that there are doubts as to their future recoverability.
Also, unrecognised deferred tax assets are reassessed at the end of each reporting period and are
recognised to the extent that it has become probable that they will be recovered through future taxable
profits.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODI_47273db5-3f63-4c6f-bac7-2b082eaaadea": {
"value": "
5.13.2 REIT regime
The REIT special tax regime, as amended by Law 16/2012 of 27 December, is based on a 0%
corporate income tax rate, provided certain requirements are met. Particularly noteworthy amongst
those conditions is that at least 80% of income must come from urban real estate used for leasing
purposes and acquired in full ownership or through holdings in Spanish or foreign companies,
regardless of whether or not they are listed on organised markets, that meet the same investment and
profit distribution requirements. Likewise, the main sources of income for these entities must come
from the real estate market, either through leasing the properties, their subsequent sale after a
minimum lease period, or the income generated from holdings in entities with similar characteristics.
Nevertheless, tax is accrued in proportion to dividend distributions. Dividends received by the
shareholders are exempt, unless the recipient is a legal person subject to corporate income tax or a
permanent establishment of a foreign entity, in which case a deduction in the tax liability is established,
so that these earnings are taxed at the shareholder's rate. However, the remaining earnings must be
not be taxed provided that they are not distributed to shareholders.
As in Transitional Provision Nine of Law 11/2009, of 26 October, amended by Law 16/2012, of 27
December, which regulate REITs, the entity will be subject to a special tax rate of 19% on the total
dividends or profit shares distributed to shareholders with a shareholding in the entity of 5% or more,
when these dividends are exempt or taxed at a rate below 10% in the shareholders. The Group has
therefore established the procedure guaranteeing confirmation by shareholders of their tax rate,
proceeding where applicable, to withhold 19% of the dividend distributed to shareholders that do not
meet the above tax requirements.\u00a0 \u00a0 \u00a0
With effect for financial years beginning on or after 1 January 2021, Law 11/2021, of 9 July, on
measures to prevent and combat tax fraud amended Article 9 (4) of Spanish Law 11/2009, of 26
October, regulating REITs. Specifically, a special tax of 15% was introduced on the amount of profit
obtained in the year which is not distributed, in the portion that arises from: a) income that has not
been taxed at the general corporate income tax rate and, b) income that does not arise from the
transfer of eligible assets, once the three-year maintenance period has elapsed, which has been
included in the three-year reinvestment period in Article 6.1.b) of Law 16/2012, of 27 December. This
special tax will be considered corporate income tax and will accrue on the day of the agreement to
apply profit for the year by the general shareholders meeting or equivalent body. The self-assessment
and payment of the tax must be performed within two months of the accrual.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODM_90d96d58-18e3-4652-a4cf-43fc49846d9e": {
"value": "
5.14 Share-based payments
The Parent Company recognises, on the one hand, the goods and services received as an asset or as
an expense, depending on their nature, when they are received and, on the other, the related increase
in equity, if the transaction is equity-settled, or the related liability if the transaction is settled with an
amount based on the value of the equity instruments.
In the case of equity-settled transactions, both the services rendered and the increase in equity are
measured at the fair value of the equity instruments granted, by reference to the grant date. In the
case of cash-settled share-based payments, the goods and services received and the related liability
are recognised at the fair value of the latter, by reference to the date on which the requirements for
recognition are met.
2017-2019 Incentive Plan
Also, at the General Meeting held on 26 April 2017, the shareholders approved a remuneration plan
for the management team and other important members of the Group's workforce, the measurement
period of which is from 1 January 2017 to 31 December 2019 (the \"2017-2019 Incentive Plan\").
According to the plan, the members of the management team may be entitled to receive: (i) a certain
monetary amount in accordance with the increase of the share price and (ii) Parent Company shares,
if certain objectives are fulfilled, referenced against the EPRA NAV.
In this regard, in 2022 the Group recorded an expense in the amount of EUR 1,210 thousand
corresponding to the last tranche accrued by the 2017-2019 Incentive Plan, with a counterpart charge
to reserves ending the plan and its registration.
2022 \u2013 2024 Incentive Plan
The General Shareholder Meeting held on 4 May 2022 approved a long-term incentive plan consisting
of the delivery of a maximum number of MERLIN Properties, SOCIMI, S.A. ordinary shares equal to
3,491,767 shares (representing 0.74% of the share capital), aimed at the members of the
management and management team of the MERLIN Group, including the executive directors of the
Parent (LTIP 2022-2024).
The LTIP will be implemented through a performance share single cycle plan with a target
measurement period of 3 years; beginning on 1 January 2022 and ending on 31 December 2024 and
will be payable through the delivery of shares of the Parent in 2025, once (i) compliance with the
specific targets established for 2022-2024 has been verified and (ii) the beneficiary has remained in
the MERLIN Group.
With respect to the targets or metrics to which the plan is linked (see Note 20), it includes market and
non-market conditions.
With respect to the market condition 'Total shareholder profitability,' the Group applied a valuation
methodology for the underlying assets on the date of delivery of the incentive associated with the
Monte Carlo simulation method. The Monte Carlo simulation is a statistical method applied to the
financial modelling on the probability of different results where a random or independent variable
comes into play. In this regard, the Monte Carlo simulation method applied by the Group was based on
a Brownian motion model, which makes it possible to simulate the possible paths that the underlying
asset can follow (price of Merlin's share and EPRA Nareit Development Europe index) from the
repetition of random samples to obtain different numerical results. For the development of the
simulation, the generation of the random variable was performed by applying a standard normal
distribution N (0.1). To this end, the average or expected value corresponding to the spot price of the
Merlin share was established at the date of communicating the incentive and a standard deviation to
describe the change as regards the average, based on the volatility of the share.
With respect to the non-market conditions of i) EPRA NTA, ii) Net carbon and environment emissions
and iii) the Environment and Company, the Group estimated its compliance with them at each
measurement date during the term of the plan with the best information available.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODQ_26cc49f6-85a0-4666-b3df-3f2fdfdb3a59": {
"value": "
2017-2019 Incentive Plan
Also, at the General Meeting held on 26 April 2017, the shareholders approved a remuneration plan
for the management team and other important members of the Group's workforce, the measurement
period of which is from 1 January 2017 to 31 December 2019 (the \"2017-2019 Incentive Plan\").
According to the plan, the members of the management team may be entitled to receive: (i) a certain
monetary amount in accordance with the increase of the share price and (ii) Parent Company shares,
if certain objectives are fulfilled, referenced against the EPRA NAV.
In this regard, in 2022 the Group recorded an expense in the amount of EUR 1,210 thousand
corresponding to the last tranche accrued by the 2017-2019 Incentive Plan, with a counterpart charge
to reserves ending the plan and its registration.
2022 \u2013 2024 Incentive Plan
The General Shareholder Meeting held on 4 May 2022 approved a long-term incentive plan consisting
of the delivery of a maximum number of MERLIN Properties, SOCIMI, S.A. ordinary shares equal to
3,491,767 shares (representing 0.74% of the share capital), aimed at the members of the
management and management team of the MERLIN Group, including the executive directors of the
Parent (LTIP 2022-2024).
The LTIP will be implemented through a performance share single cycle plan with a target
measurement period of 3 years; beginning on 1 January 2022 and ending on 31 December 2024 and
will be payable through the delivery of shares of the Parent in 2025, once (i) compliance with the
specific targets established for 2022-2024 has been verified and (ii) the beneficiary has remained in
the MERLIN Group.
With respect to the targets or metrics to which the plan is linked (see Note 20), it includes market and
non-market conditions.
With respect to the market condition 'Total shareholder profitability,' the Group applied a valuation
methodology for the underlying assets on the date of delivery of the incentive associated with the
Monte Carlo simulation method. The Monte Carlo simulation is a statistical method applied to the
financial modelling on the probability of different results where a random or independent variable
comes into play. In this regard, the Monte Carlo simulation method applied by the Group was based on
a Brownian motion model, which makes it possible to simulate the possible paths that the underlying
asset can follow (price of Merlin's share and EPRA Nareit Development Europe index) from the
repetition of random samples to obtain different numerical results. For the development of the
simulation, the generation of the random variable was performed by applying a standard normal
distribution N (0.1). To this end, the average or expected value corresponding to the spot price of the
Merlin share was established at the date of communicating the incentive and a standard deviation to
describe the change as regards the average, based on the volatility of the share.
With respect to the non-market conditions of i) EPRA NTA, ii) Net carbon and environment emissions
and iii) the Environment and Company, the Group estimated its compliance with them at each
measurement date during the term of the plan with the best information available.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTermsAndConditionsOfSharebasedPaymentArrangementExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODU_7473c031-0660-4f4f-a04b-b1413868b82a": {
"value": "
5.15 Employee obligations
Under current labour legislation, the Group companies are required to pay termination benefits to
employees terminated under certain conditions.
When a restructuring plan is approved by the directors, made public and communicated to employees,
the Group recognises the provisions required to meet any future payments resulting from their
application. These provisions are calculated in accordance with the best estimates available of the
foreseeable costs.
In this sense, at 31 December 2022, the Group does not have commitments for this item, and there is
no Downsizing Plan in force.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODY_6ab250ca-5c50-480a-a5c1-4a572a16d0b3": {
"value": "
5.16 Current assets and liabilities
The Group classifies its assets and liabilities as current and non-current in the consolidated statement
of financial position. To this end, current assets and current liabilities are those that meet the following
criteria:
\u2022Assets are classified as current when they are expected to be realised, or are intended for
sale or consumption, during the course of the Group's normal operating cycle, when they are
held primarily for the purpose of being traded, when they are expected to be realised within
twelve months after the reporting date, or when they constitute cash or a cash equivalent,
unless they are restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting date.
\u2022Liabilities are classified as current when they are expected to be settled during the course of
the Group's normal operating cycle, when they are held primarily for the purpose of being
traded, when they are expected to be settled within twelve months after the reporting date, or
when the Group does not have an unconditional right to defer repayment of the liability for at
least twelve months after the reporting date.
\u2022Derivative financial instruments not held for trading are classified as current or non-current
according to the period of maturity or periodic settlement.
",
"dimensions": {
"concept": "mer:DescriptionOfAccountingPolicyForCurrentAssetsAndLiabilitiesTextBlock",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODc_23deeeb2-f98b-4d0f-b956-52499520c803": {
"value": "
5.17 Segment information
The Group groups its segments based on the nature of the assets in the various areas in which it
implements its strategy. In this sense, each operating segment is a component of the Group that
performs business activities from which it can earn revenue and incur expenses. The operating results
of each segment are regularly reviewed by the Group's management to decide on the resources to be
allocated to each segment, assess its performance and for which differentiated financial information is
available.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODg_381e6461-0b41-4440-a66b-b9b07a7fd3e4": {
"value": "
5.18 Earnings per share
Basic earnings per share are calculated by dividing net profit or loss attributable to the Parent
shareholders by the weighted average number of ordinary shares outstanding during the year,
excluding the average number of shares of the Parent held by the Group companies.
For the calculation of the diluted profit per share, the Group calculates the amounts of the diluted
earnings per share for the profit for the year attributable to the shareholders of the Parent and, where
applicable, the profit for the year of the ongoing activities attributable to those holders of equity
instruments.
To calculate the diluted earnings per share, the Group takes the profit or loss for the year attributable
to the holders of ordinary equity instruments and the weighted average number of shares in circulation
for all the dilutive effects inherent to the potential ordinary shares.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzODk_5da3d489-1c07-4980-8eba-960fe2c741a7": {
"value": "
5.19 Environment
The Group performs activities whose primary purpose is to prevent, mitigate or repair environmental
damage caused by its operations, see climate change management policies in Note 23.
Expenses incurred in connection with these environmental activities are recognised as other operating
expenses in the year in which they are incurred. However, because of their nature, the Group's
business activities do not have a significant environmental impact.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEnvironmentRelatedExpenseExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzQ5NDc4MDI1MDQzOTA_a0420ab0-daf8-4249-b7db-bad5adc5e275": {
"value": "
5.20 Consolidated statements of cash flows
The following terms are used in the consolidated statements of cash flows (prepared using the indirect
method) with the meanings specified:
1.Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly
liquid investments that are subject to an insignificant risk of changes in value.
2.Operating activities: the principal revenue-producing activities of the entities composing the
consolidated Group and other activities that are not investing or financing activities.
3.Investing activities: the acquisition and disposal of long-term assets and other investments not
included in cash and cash equivalents.
4.Financing activities: activities that result in changes in the size and composition of the equity
and liabilities that are not operating activities.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjMvZnJhZzo5OGNkYzk1OGUyYTA0YTZhOTYwYmU5ZDcyM2Y4MDlmNC90ZXh0cmVnaW9uOjk4Y2RjOTU4ZTJhMDRhNmE5NjBiZTlkNzIzZjgwOWY0XzYwNDczMTQxMzIxNjk_e00a4082-98a4-4896-9dea-0ad2a26e2da0": {
"value": "
5.21 Discontinued Business
A discontinued business is any component of the Group that has been sold or otherwise arranged, or
that has been classified as held for sale and, among other conditions, represents a significant
business line or area that can be considered separate from the rest.
For these types of transactions, the Group included in the consolidated income statement and in a
single line item entitled \"Profit/(Loss) for the period from discontinued operations net of tax\" both the
profit/(loss) after tax on discontinued activities and the profit/(loss) after tax recognised by fair value
measurement less costs to sell or by the disposal of the items constituting the discontinued activity.
In addition, when transactions are classified as discontinued, the Group presents in the above
accounting item the amount of the previous year corresponding to the activities that were discontinued
on the closing date of the corresponding consolidated financial statements.
At the beginning of 2022, the Group identified the activity called Net Lease as a discontinued segment,
given its commitment to divestment in the short term. On 31 December 2022, the above divestment
process was completed by adjusting comparative financial information to the reporting requirements
for discontinued activities (see Note 3).
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjYvZnJhZzpmODZjOGZmN2EzODc0MzllYTlmNzE1N2M3MGNkMjlhYi90ZXh0cmVnaW9uOmY4NmM4ZmY3YTM4NzQzOWVhOWY3MTU3YzcwY2QyOWFiXzQ5NDc4MDIzMzYxNDY_2a2efe8f-5065-415a-b364-60f1aa5f5d4c": {
"value": "
6.\u00a0 \u00a0 Segment reporting
a) Basis of segmentation
Group management has segmented its activities into the business segments detailed below according
to the type of assets acquired and managed:
\u2013Office buildings
\u2013Shopping centres
\u2013Logistics assets
\u2013Others: Assets not included in the above segments, which mainly correspond to 3 hotels, land
held for non-strategic purposes and other smaller assets.
Any revenue or expense that cannot be attributed to a specific line of business or relate to the entire
Group are attributed to the Parent as a \"Corporate unit/Other\", as are the reconciling items arising
from the reconciliation of the result of integrating the financial statements of the various lines of
business (prepared using a management approach) and the Group's consolidated financial
statements.
The profits of each segment, and each asset within each segment, are used to measure performance
as the Group considers this information to be the most relevant when evaluating the segments' results
compared to other groups operating in the same businesses.
The Group performed its business activities in Spain and Portugal in the year ended 31 December
2022.
b) Basis and methodology for business segment reporting
The segment information below is based on monthly reports prepared by Group management and is
generated using the same computer application that prepares all the Group's accounting information.
The accounting policies applied to prepare the segment information are the same as those used by
the Group, as described in Note 5.
Segment revenue relates to ordinary revenue directly attributable to the segment plus the relevant
proportion of the Group's general income that can be allocated on a reasonable basis to that segment.
Ordinary revenue of each segment does not include interest or dividend income, gains on the disposal
of investment property, debt recoveries or cancellation.
Segment expenses are calculated as the directly attributable expenses incurred in the operating
activities, plus the corresponding proportion of the expenses that can be reasonably allocated to the
segment.
The segment profit or loss is presented before any adjustment for non-controlling interests.
Segment assets and liabilities are those directly related to each segment's operations, plus the assets
and liabilities that can be directly attributed thereto using the above allocation system, and include the
proportional part of the assets and liabilities of joint ventures.
Segment reporting
Segment information about these businesses at 31 December 2022 is presented below:
| | | | | | |
| |
| | | | | | |
| | | | | | |
Revenue from non-Group customers | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Gains or losses on disposals of non-current assets | | | | | | |
Depreciation and amortisation charge | | | | | | |
Allocation/Excess provisions | | | | | | |
Changes in fair value of investment property | | | | | | |
Profit/(Loss) from operations | | | | | | |
| | | | | | |
Changes in fair value of financial instruments - Other | | | | | | |
| | | | | | |
| | | | | | |
Gains on disposal of financial instruments | | | | | | |
Share of results of companies accounted for using the equity method | | | | | | |
| | | | | | |
| | | | | | |
Profit/(Loss) for the year | | | | | | |
| | | | | | |
| |
| | | | | | |
| | | | | | |
| | | | | | |
Non-current financial assets- | | | | | | |
| | | | | | |
\u00a0 Other financial assets | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Other current financial assets | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Non-current bank borrowings and debenture issues | | | | | | |
Other non-current liabilities | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Segment information about these businesses at 31 December 2021 is presented below:
| | | | | | |
| |
| | | | | | |
| | | | | | |
Revenue from non-Group customers | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Gains or losses on disposals of non-current assets | | | | | | |
Depreciation and amortisation charge | | | | | | |
| | | | | | |
Changes in fair value of investment property | | | | | | |
Negative goodwill on business combinations | | | | | | |
Profit/(Loss) from operations | | | | | | |
| | | | | | |
Changes in fair value of financial instruments | | | | | | |
| | | | | | |
| | | | | | |
Gains on disposal of financial instruments | | | | | | |
Share of results of companies accounted for using the equity method | | | | | | |
| | | | | | |
| | | | | | |
Profit/(Loss) for the year | | | | | | |
(*) Reexpresed information
| | | | | | | |
| |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Non-current financial assets- | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other current financial assets | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Non-current bank borrowings and debenture issues | | | | | | | |
Other non-current liabilities | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
(*) Discontinued and sold in 2022
C) Geographical segment reporting
For the purposes of geographical segment reporting, segment revenue is grouped according to the
geographical location of the assets. Segment assets are also grouped according to their geographical
location.
The following tables summarises ordinary income and non-current investment property for each of the
assets held by the Group by geographical area:
2022
(a) Includes lease income for discontinued activities in 2021 amounting to EUR 85,373 thousand.
(b) It includes the amount of the embedded derivative described in Note 10
D) Main customers
The table below lists the most important tenants as of 31 December 2022, and the primary
characteristics of each of them:
2022
| | | | | |
| | | | | |
|
| | | | | |
| | | | | |
| | Shopping/Logistics centres | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
2021
| | | | | |
| | | | | |
|
| | | | | |
| | | | | |
| | | | | |
| | Shopping/Logistics centres | | | |
| | | | | |
| | | | | |
| PricewaterhouseCoopers, S.L. | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
(*) Discontinued and sold in 2022
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjYvZnJhZzpmODZjOGZmN2EzODc0MzllYTlmNzE1N2M3MGNkMjlhYi90ZXh0cmVnaW9uOmY4NmM4ZmY3YTM4NzQzOWVhOWY3MTU3YzcwY2QyOWFiXzQ5NDc4MDIzMzYxNDk_a155f8a4-3488-48db-a9c2-0fc47858960f": {
"value": "The Group performed its business activities in Spain and Portugal in the year ended 31 December 2022.",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NjkvZnJhZzplNjRiYWE5MGRkNzA0ZThhOTgyZDM0MDNlYmIxMDRhMy90ZXh0cmVnaW9uOmU2NGJhYTkwZGQ3MDRlOGE5ODJkMzQwM2ViYjEwNGEzXzQ5NDc4MDIzNTMxNzY_b38e6bb5-f0df-4c62-9e0f-f663ed75d73f": {
"value": "
7.\u00a0 \u00a0 Investment property
The breakdown of and changes in items included under the Investment Property heading in the
consolidated statement of financial position in 2022 and 2021 were as follows:
| | |
| |
| | |
| | |
| | |
Additions for the financial year | | |
| | |
Changes in value of investment property | | |
| | |
Investment property is recognised at fair value. The expense recognised in the 2022 consolidated
income statement from measuring investment property at fair value amounted to EUR 249,272
thousand (EUR 177,008 thousand from income in the 2021 financial year including the change in
value of the Net Lease segment discontinued in 2022).
Investment property mainly includes property assets in the office, shopping centre and logistics
segments.
Additions and assets acquired in the 2022 and 2021 financial years are as follows:
The additions made in 2022 relate to the purchase of an office building in Lisbon amounting to EUR
113 million, a plant in an office building in Barcelona amounting to EUR 5 million and several plants in
an office building in Madrid amounting to EUR 19 million and the acquisition of land in the Basque
Country for the construction of a Data Centre amounting to EUR 7 million.
The other additions for 2022 related to the improvement and adaptation work performed on certain
properties owned by the Group, highlighting, among others, certain logistics warehouses in Cabanillas
del Campo and office buildings such as Castellana 85 and the Cerro de lo Gamos Business Park in
Madrid, and the development of Data Centres.
The losses in 2022 relate mainly to the sale of the leased premises to BBVA through the sale of all the
shares that the Parent held by the subsidiary Tree Inversiones Inmobiliarias, SOCIMI, S.A. (see Note
3), the result of which is presented in the discontinued activities line item.
Also in 2022, the Group sold two business parks and premises held for non-strategic purposes in
Madrid, an office building in Zaragoza and premises in Catalonia. As a result of these divestments, the
Group obtained a gain of EUR 11,561 thousand recognised under 'Gain on disposal of assets' in the
accompanying consolidated income statement.
The additions made in 2021 related to the purchase of an office building and the purchase of a flight
right over a site used for office purposes in Madrid for EUR 21 million and the acquisition of two plots
of land to be used for logistic purposes in Madrid and Valencia for EUR 19 million.
The other additions for 2021 related to the improvement and adaptation work performed on certain
properties owned by the Group, including the office buildings Castellana 85, Avenida de Burgos 208,
Plaza Ruiz Picasso and Castellana 280 in Madrid, in Torre Glories, Pere IV in Barcelona and the
Monumental building in Lisbon. At the Porto P\u00ed and Saler shopping centres and in the logistics
developments located in the Community of Madrid.
The losses incurred in 2021 related mainly to the sale of 32 Caprabo supermarkets, an Office in
Madrid and four logistics warehouses, with a net positive result of EUR 4,057 thousand recognised
under \"Profit for the year from discontinued transactions net of tax\" and \"Profit for disposal of assets\"
respectively in the accompanying consolidated income statement.
At 31 December 2022, the Group had real estate assets amounting to EUR 265,443 thousand (EUR
2,039,558 thousand in 2021) to guarantee various loans and derivative financial instruments. At 31
December 2022, the balance of the loans amounted to EUR 84,987 thousand, while the financial
instruments had an asset balance of EUR 6,084 thousand (at the end of 2021 the balance of the loans
amounted to EUR 756,498 thousand and the financial instruments had a liability balance of EUR
73,265 thousand) (see Note 14). The Group holds no rights of use, seizure or similar situations as
regards its investment property. The Group did not hold financial leases in 2022 or 2021.
All properties included under \"Investment property\" were insured as of 31 December 2022.
As of 31 December 2022, the Group has firm purchase commitments for investment property
amounting to EUR 7,022 thousand, without considering the investments committed in constructions
and improvements.
In 2022 and 2021 no finance costs were capitalised in the cost of constructing the properties.
Fair value measurement and sensitivity
All investment property leased or to be leased through operating leases are classified as investment
property.
According to IAS 40, the Group periodically determines the fair value of its investment property so that
the fair value reflects the actual market conditions of the investment property items at that date. This
fair value is determined each year based on the appraisals undertaken by independent experts.
The market value of the Group's investment property as of 31 December 2022 and 2021, calculated
based on appraisals performed by Savills Consultores Inmobiliarios, S.A., CBRE Valuation Advisory,
S.A. and Jones Lang LaSalle, S.A. independent appraisers not related to the Group, amounted to
EUR 10,558, 975 thousand (EUR 12,402,279 in 2021). This measurement does not include the value
of the use rights recognised by the application of IFRS 16 for EUR 37,152 thousand (EUR 34,805
thousand in 2021) or the amounts relating to advances paid by the Group to third parties for the
purchase of assets or other non-valued assets amounting to EUR 118,072 thousand (EUR 27,253
thousand in 2021) mainly assets intended for Data Centres. Likewise, the valuation for 2021 included
the value of the embedded derivative of the lease rent with BBVA for EUR 167,080 thousand, which
was recorded under \"Other non-current financial assets\". The valuation was performed in accordance
with the Appraisal and Valuation Standards issued by the Royal Institute of Chartered Surveyors
(RICS) of the United Kingdom and the International Valuation Standards (IVS) issued by the
International Valuation Standards Committee (IVSC). In relation to the fair value of the rights of use,
the Group also obtained valuations from independent third parties.
The method used to calculate the market value of the investment property involves drawing up ten-
year projections of income and expenses for each asset, adjusted at the reporting date using a market
discount rate. The residual amount at the end of year 10 is calculated by applying an exit yield or cap
rate to the net income projections for year 11. The market values obtained are analysed by calculating
and assessing the capitalisation of the returns implicit in these values. The projections are designed to
reflect the best estimate of future income and expenses from the investment properties. Both the exit
yield and discount rate are determined taking into account the national market and institutional market
conditions.
Fees paid by the Group to valuers for appraisal services rendered up to 31 December 2022 and 2021
were as follows:
(*) includes valuation of Net Lease segment
Breakdown of fair value of investment property
A breakdown of assets measured at fair value by their level in the fair value hierarchy is as follows:
2022
| | | | |
| |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total assets measured at fair value | | | | |
The quantitative information on the significant non-observable input data used in measuring fair value
is shown below.
2022
2021
(*) Discontinued activity and disposed of in 2022
Market rents: the amounts per square metre used in the valuation have ranged between 107.33 and
2.25 euros depending on the type of asset and location. The growth rates of the rents used in the
projections are mainly based on the CPI. It should be noted that the minimum range relates to a
logistics asset and the maximum range is a retail asset located in a prime zone.
Analysis of the sensitivity of the hypotheses
The effect of one-quarter, half and one point change in the required rates of return (the \"IRR\", the rate
used to discount the cash flows of the projections) on the consolidated assets and in the consolidated
income statement with respect to investment properties, would be as follows:
31 December 2022
| | | | | | |
| |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
31 December 2021 (*)
| | | | | | |
| |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
(*) Reexpresed information
The effect of a 1%, 5% and 10% change in the rents considered has the following impact on
investment property in consolidated assets and in the consolidated income statement:
31 December 2022
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
31 December 2021
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The effect of the quarter, half, and one point change in the considered exit yield, in the assumption
based on return calculated as the result of dividing the net operating income of the last year of the
period analysed by the estimated exit yield, on investment property in the consolidated asset and in
the consolidated income statement, would be as follows:
31 December 2022
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
31 December 2021 (*)
| | | | | | |
| |
| | Consolidated profit/(loss) before tax |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
(*) Reexpresed information
Details of the \"Change in value of investment property\" in the accompanying consolidated income
statement are as follows:
| | |
| |
| |
| | |
| | |
| | |
| | |
| | |
| | |
(*) Reexpresed information | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
As of 31 December 2022, the Group has firm purchase commitments for investment property
amounting to EUR 7,022 thousand, without considering the investments committed in constructions
and improvements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzIvZnJhZzpiNWQ1ZTJjMjgyOGE0ZDMyOTNlNDIwMzBmYmY0ZWZkOC90ZXh0cmVnaW9uOmI1ZDVlMmMyODI4YTRkMzI5M2U0MjAzMGZiZjRlZmQ4XzQ5NDc4MDIzMzA2NDI_d781fab4-f422-4b55-babb-ba2c0fe7bc89": {
"value": "
8.\u00a0 \u00a0 Operating leases
8.1 Operating Leases - Tenant
The Group, in its position as a tenant, only maintains short-term and low-value leases, which, following
an analysis of the application of IFRS 16, recognises them as a straight-line expense over the lease
term. In 2022, the Group recorded an expense of EUR 705 thousand (EUR 699 thousand in 2021)
included under \"Other operating expenses\" in the accompanying consolidated income statement.
8.2 Operating leases \u2013 Landlord
The occupancy rates of the leased buildings at 31 December 2022 were as follows:
At 31 December 2022, gross lease income and the fair value of each of the assets were as follows:
2022
(a)The gross income indicated in the table above refers to income from leases (Note 6)
of the properties accrued since their incorporation into the Group, without taking into
account credits or rent straight-lining.
2021
(*) Activity discontinued in 2022
(a)The gross income indicated in the table above refers to income from leases (Note 6)
of the properties accrued in 2021 since their incorporation into the Group, without
taking into account credits and rental income straight-lining.
(b)Includes investment property and the Tree embedded derivative (Note 10).
The leases entered into between the Group and its customers include a fixed rent and, where
applicable, a variable rent linked to the lessee's performance.
At 31 December 2022, the future minimum lease payments under non-cancellable operating leases
(calculated at the nominal amount) are as follows:
(*) Reexpresed information
In 2022, the Group recorded EUR 6,707 thousand (EUR 4,477 thousand in 2021) due to lease income
relating variable lease payments not benchmarked against a rate or index.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzUvZnJhZzoxMmM5MDkzOWZkNTI0YzNiYTc2YThiODlmY2M1ZGEzMi90ZXh0cmVnaW9uOjEyYzkwOTM5ZmQ1MjRjM2JhNzZhOGI4OWZjYzVkYTMyXzQ5NDc4MDIzMzE4MDk_0f8f8906-79bb-469e-aa44-63e71dd8b606": {
"value": "
9.\u00a0 \u00a0 Investments accounted for using the equity method
The changes in 2022 in investments in companies accounted for using the equity method are as
follows:
| | |
| |
| | |
| | |
| | |
Additions made during the year | | |
Payments made in the financial year | | |
| | |
| | |
Profit/(Loss) for the year | | |
| | |
In relation to the shares held using the equity method, the additions for the year relate mainly to the
subscription of the capital increase made by Crea Madrid Nuevo Norte, S.A. as a result of the capital
increase performed in the year, which has resulted in an increase of EUR 1,511 thousand for the
Group. For its part, the decreases relate mainly to the liquidation of the investee PK Hoteles 22, S.L..
(Note 3) and the return of contributions to G36 Developments, S.L.
The remaining amount of the movements came from the results obtained from the investees in 2022.
The main changes in 2021 were as follows:
In 2021, the amount associated with the value of the purchase option that Silicius Real Estate
SOCIMI, S.A. held on the Group's share was transferred to \"Other non-current financial
liabilities\" (Derivatives). Its final settlement will not be in cash, but will entail, where appropriate, an
adjustment to the value of the ownership interest in Silicius Real Estate SOCIMI, S.A. (see Note 14.3).
The additions for the year related mainly to the capital contribution made by the Group as a result of
the capital increase performed in 2021 by Crea Madrid Nuevo Norte, S.A., which resulted in an
increase for the Group of EUR 2,922 thousand. On the other hand, the decreases corresponded in
their entirety to the return of Silicius Real Estate SOCIMI's S.A. Share Premium.
The remaining amount of the movements came from the results obtained from the investees in 2021
and to the acquisition of Edged Spain, S.L. (Note 3).
A breakdown of investments in companies accounted for using the equity method and the profit or loss
attributable to the Group at 31 December 2022 is as follows:
2022
| | | | | |
| | | | |
| | | | | Profit/(loss) attributed to the Group |
| | | | | |
| \u00a0\"Operaci\u00f3n Chamart\u00edn\" construction development and property operation | | | | |
| | | | | |
Silicius Real Estate SOCIMI, S.A. | \u00a0Sale and lease of property | | | | |
| | | | | |
Centro Intermodal de Log\u00edstica, S.A. | Management of the port concession of the logistics activity area | | | | |
| | | | | |
Paseo Comercial Carlos III, S.A. | | | | | |
| | | | | |
Provitae Centros Asistenciales, S.L. | \u00a0Healthcare services | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
2021
| | | | | |
| | | | |
| | | | | Profit/(loss) attributed to the Group |
| | | | | |
| \u00a0'Operaci\u00f3n Chamart\u00edn' construction development and property operation | | | | |
| | | | | |
Silicius Real Estate SOCIMI, S.A. | \u00a0Sale and lease of property | | | | |
| | | | | |
Centro Intermodal de Log\u00edstica, S.A. | Management of the port concession of the logistics activity area | | | | |
| | | | | |
Paseo Comercial Carlos III, S.A. | | | | | |
| | | | | |
Provitae Centros Asistenciales, S.L. | \u00a0Healthcare services | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
All companies detailed in the table above are accounted for using the equity method.
The key business indicators at 100% for the Group's associates (standardised using the regulatory
framework applicable to the Group) are as follows:
2022
| | | | | | |
| |
| Provitae Centros Asistenciales, S.L. | Paseo Comercial Carlos III, S.A. | Centro Intermodal de Log\u00edstica, S.A. (CILSA) | | Silicius Real Estate SOCIMI, S.A. | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
2021
| | | | | | |
| |
| Provitae Centros Asistenciales, S.L. | Paseo Comercial Carlos III, S.A. | Centro Intermodal de Log\u00edstica, S.A. (CILSA) | | Silicius Real Estate SOCIMI, S.A. | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
At the end of the year, there were no indications of impairment on the recoverable value of the
investments held, in addition to those already recorded.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzgvZnJhZzo3MzRhYjI0Y2I5YTA0ODQ2YjI4ZDgyZDBiNjVmNTlmZC90ZXh0cmVnaW9uOjczNGFiMjRjYjlhMDQ4NDZiMjhkODJkMGI2NWY1OWZkXzQ5NDc4MDIzMzQ4MTY_6bc62837-6679-4a00-aad9-33e43ab727ec": {
"value": "
10.\u00a0 \u00a0 Current and non-current financial assets
The breakdown, by type, of the balance of this heading in the consolidated statement of financial
position at 31 December 2022 is as follows:
Classification of financial assets by category:
| | |
| |
| | |
| | |
| | |
| | |
Derivative embedded in BBVA lease | | |
Interest rate derivatives | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Financial assets through profit or loss. | | |
| | |
Investments in associates | | |
| | |
| | |
| | |
Trade and other receivables | | |
| | |
The carrying amount of financial assets recognised at amortised cost does not differ from their fair
value.
Derivatives
At year-end 2022, the measurement of interest rate derivatives is recognised under 'Derivatives' (see
Note 14).
At year-end 2021, \"Derivatives\" included the value of the embedded derivative corresponding to the
inflation multiplier included in the lease with BBVA to revise rents annually. This derivative was part of
the Net Lease segment that was divested in 2022 (see Note 3).
Financial assets at fair value through profit or loss
At the end of 2020, this heading included 15.29% in Silicius Real Estate, SOCIMI, S.A. for EUR
86,521 thousand acquired by the Parent through an asset contribution. In the first half of 2021, the
Parent sold 353,966 shares for EUR 5,418 thousand, which did not have a significant impact on
results. The amount of the share after the sale was reduced to EUR 80,964 thousand, which the
Group reclassified to 'Current financial assets,' classified as financial assets with changes to the
income statement, of the accompanying consolidated statement of financial position. On 27 July 2022,
the Group sold 14.28% of the shares of Silicius Real Estate SOCIMI, S.A. for EUR 80,964 thousand,
the full amount of which was paid in cash.
Loans to third parties
\"Other non-current financial assets\" included the loan granted to Urban\u00edsticos Udra, S.A.U.,
shareholder of Crea Madrid Nuevo Norte, S.A., amounting to EUR 86,397 thousand, which accrues
market interest. At 31 December 2022, due to the annual capitalisation of interest, the outstanding
amount was EUR 90,728 thousand in principal and EUR 313 thousand in interest. In relation to this
loan, the Group has guarantees from the creditor associated with 10% of shares in Crea Madrid
Nuevo Norte, S.A., and no credit risk has been identified for the debtor.
Likewise, this heading also includes rental straight lining, marketing expenses and tenant set-up
expenses amounting to 35,189 thousand euros (30,700 thousand euros in 2021).
Deposits and guarantees
\"Deposits and guarantees\" primarily includes the guarantees provided by lessees as security
amounting to EUR 51,988 thousand (EUR 64,124 thousand at 31 December 2021), which the Group
has deposited with the housing authority (Instituto de la Vivienda) in each region. At 31 December
2022, guarantees provided by lessees as security amounted to EUR 62,964 thousand (EUR 73,842
thousand at 31 December 2021) and were recognised under \"Non-current liabilities \u2013 Other financial
liabilities\" on the liability side of the accompanying consolidated statement of financial position for 2022
(see Note 15).
Classification of financial assets by maturity:
The classification of financial assets by maturity at 31 December 2022 and 2021 is as follows:
2022
| | | | | |
| |
| | | | | |
| | | | | |
Interest rate derivatives | | | | | |
| | | | | |
Loans to third parties and associates | | | | | |
| | | | | |
Financial assets at fair value through profit or loss | | | | | |
| | | | | |
Trade and other receivables | | | | | |
| | | | | |
2021
| | | | | |
| |
| | | | | |
| | | | | |
Derivative embedded in BBVA lease(*) (*) | | | | | |
| | | | | |
Loans to third parties and associates | | | | | |
| | | | | |
Financial assets at fair value through profit or loss | | | | | |
| | | | | |
Trade and other receivables | | | | | |
| | | | | |
(*) Activity discontinued in 2022
14.\u00a0 \u00a0 Current and non-current financial liabilities
At 31 December 2022, current and non-current liabilities were as follows:
| | |
| |
| | |
| | |
| | |
Measured at amortised cost- | | |
| | |
Syndicated loan arrangement expenses | | |
| | |
Senior syndicated mortgage loan (Tree) | | |
Syndicated mortgage loan arrangement costs (Tree) | | |
Total senior syndicated mortgage loan (Tree) | | |
| | |
| | |
Loan arrangement expenses | | |
| | |
| | |
| | |
Total debentures and bonds | | |
| | |
| | |
Derivative financial instruments | | |
| | |
| | |
| | |
Measured at amortised cost | | |
| | |
Senior syndicated mortgage loan (Tree) | | |
| | |
| | |
Revolving credit facility | | |
| | |
Loan arrangement expenses | | |
| | |
| | |
Derivative financial instruments | | |
| | |
| | |
There is no material difference between the carrying amount and the fair value of financial liabilities at
amortised cost.
On 20 April 2016, the Parent was given a credit rating of \"BBB\" with stable outlook by Standard &
Poor's Rating Credit Market Services Europe Limited. On 2 May 2018, Standard & Poor's updated this
rating to \"BBB\" with a positive outlook, changing it to stable outlook due to the COVID-19 pandemic on
27 March 2020. On 12 April 2022, as a result of the sale of TREE Inversiones Inmobiliarias SOCIMI,
S.A.,& Standard & Poor's updated this outlook to positive.
Additionally, on 17 October 2016, the Company was given a credit rating of \"investment grade\" \"Baa2\"
by Moody's. On 27 May 2020, Moody's updated this rating to \"Baa2\" with a negative outlook due to the
COVID-19 pandemic. On 2 May 2022, as a result of the sale of TREE Inversiones Inmobiliarias
SOCIMI, S.A., Moody's updated this outlook to positive.
14.1 Loans
A breakdown of loans at 31 December 2022 is as follows:
2022
| | | | | |
| |
|
| | Expenses incurred from formalising loans (Note 14.5) | | |
| | | |
| | | | | |
| | | | | |
| | | | | |
Revolving credit facilities | | | | | |
Mortgage loans - other assets | | | | | |
| | | | | |
2021
| | | | | |
| |
|
| | Expenses incurred from formalising loans (Note 14.5) | | |
| | | |
| | | | | |
| | | | | |
| | | | | |
Revolving credit facilities | | | | | |
Senior syndicated mortgage loan (Tree) | | | | | |
Mortgage loans - other assets | | | | | |
| | | | | |
Syndicated loans and revolving credit facility - Parent Company
On 25 April 2019, the Group arranged a senior syndicated loan amounting to EUR 1,550million,
including two tranches, a corporate loan of EUR 850 million and a corporate credit facility of EUR 700
million due in 2024.
The initial maturity date for this revolving credit facility was 2024, with the possibility of two optional
one-year extensions. The second one-year extension was approved on 30 June 2021, and the new
maturity date is 9 May 2026.
The EUR 850 million corporate loan accrued an interest rate of the one-month EURIBOR + 120 basis
points, while the revolving credit facility yielded an interest rate of the one-month EURIBOR + 90 basis
points, and both incorporated a cost adjustment mechanism based on four sustainability criteria.
On 21 June 2022, the Group performed an early cancellation of the corporate loan for EUR 850
million.
In 2022, as a result of the early cancellation of this financing, the application of amortized cost in
relation to IFRS 9 represented a financial cost of EUR 4,213 thousand (EUR 1,790 thousand in 2021).
On 18 November 2022, the Parent arranged a new senior syndicated loan amounting to EUR 600
million with the possibility of being arranged before 24 April 2023 for the repayment of the bond
maturing in 2023. This financing will have a maturity of 5 years from its disposal and will accrue a
market rate of EURIBOR plus 130 basis points. For the period in which the financing is not drawn
down, a commission will be applied for the unarranged balance of 26 basis points. At year-end 2022,
the loan was not drawn down.
These funds incorporate commitments to maintain certain coverage ratios existing in the previous
financing, in Group bonds and in the financing from Banco Sabadell. These ratios are defined as the
ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio between
the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt, both without
mortgage guarantee (\"Unissued Ratio\"). In addition, they contemplate certain conditions linked to
compliance with environmental and sustainability factors that may result in certain savings in their
financial burden. The Parent Company's directors have confirmed that these ratios were met at 31
December 2022 and do not expect that they will not be fulfilled in the coming years.
Unsecured loans of the Parent
Banco Sabadell loan
On 18 November 2022, the Parent arranged a loan without mortgage guarantee with Banco Sabadell
amounting to EUR 60 million, maturing in January 2028 and accruing a market rate of EURIBOR 120
basis points.
This financing includes commitments to maintain certain coverage ratios described in the previous
section. The Parent Company's directors have confirmed that these ratios were met at 31 December
2022 and do not expect that they will not be fulfilled in the coming years.
Loans from the European Investment Bank
On 20 December 2018, the Parent formalised a loan without mortgage security with the European
Investment Bank in an amount of EUR 51 million. On 4 November 2019, the Parent formalised the
second tranche of the mortgage-free loan with the European Investment Bank amounting to EUR 64
million, amounting to EUR 115 million. This financing can be arranged through several loans with a
maturity of 10 years on each drawdown. This credit facility must be allocated to the development of
logistical assets in the Castille\u2013La Mancha region.
On 10 March 2020 and 26 October 2020, the Group drew down EUR 23.4 million and EUR 5.6 million
corresponding to the first tranche of the financing. This loan accruals a fixed interest rate of 60 basis
points. On 20 December 2022, the Group had drawn down EUR 22 million and 370 basis points.
These three loans complete the provision for the first tranche of EUR 51 million.
On 16 December 2021, the Parent formalised a loan without mortgage security with the European
Investment Bank in an amount of EUR 45.2 million and with 10-year maturity. This financing will be
used to make investments in energy efficiency. At year-end, this loan was not drawn down.
This financing includes commitments to maintain certain coverage ratios. These ratios are defined as
the ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio
between the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt,
both without mortgage guarantee (\"Unissued Ratio\"). The Parent Company's directors have confirmed
that these ratios were met at 31 December 2022 and do not expect that they will not be fulfilled in the
coming years.
\"Senior\" syndicated mortgage loan (Tree):
The senior syndicated mortgage loan of the subsidiary, Tree Investments Inmobiliarias SOCIMI, S.A.,
was signed on 29 July 2010 and novated for the first time on 30 December 2014.
The refinancing for 2014 and the first application of IFRS 9 'Financial Instruments' resulted in an
increase in reserves and a decrease in debt amounting to EUR 30,592 thousand at 1 January 2018,
and an increase in financial expenditure amounting to EUR 10,083 thousand in 2018.
On 29 November 2018, the senior syndicated loan was novated so that the initially scheduled maturity
in 2024 was postponed until 31 March 2031 with the possibility of extending the maturity annually for
the next 3 years until 31 March 2034. The third of these extensions was approved in 2022. This
financing accrues interest at a rate of 3-month EURIBOR + 120 basis point.
On 15 June 2022, as a result of the sale of the shares of TREE Inversiones Inmobiliarias S.A. to
BBVA, the Group repaid in advance the mortgage financing associated with the bank branches.
Mortgage loans - other assets
At 31 December 2022, the Group's subsidiaries had taken out the following mortgage loans:
2022
2021
On 26 March 2015, the Group subrogated a mortgage-backed loan taken out with Caixabank, S.A.
with a mortgage guarantee on the Alcal\u00e1 38-40 office building. This loan has a principal of EUR 21
million, a term of 15 years, an interest rate of 3-month EURIBOR + 150 basis points, a 4-year grace
period for the principal, and the principal is repayable in full using the French method over the
following 11 years.
On 26 April 2019, the Group entered into a novation agreement modifying the mortgage loan
subscribed on 4 December 2015 with ING Bank N.V. by the subsidiary Merlin Log\u00edstica S.L.U. The due
date for this financial arrangement, originally set to be in 2020, was extended until 2026. This financial
arrangement accrues an interest rate of EURIBOR at three months + 100 basis points; it includes a
financial cost adjustment mechanism based on meeting four sustainability criteria. On 26 March 2021,
the mortgage financing agreement was changed, extending the loan amount by EUR 2.1 million to a
total of EUR 70 million.
This loan requires that the company maintain and comply with certain coverage ratios, such as the
loan-to-value ratio and the ratio of the company's income used to service the debt (interest coverage
ratio, ICR). Additionally, it contemplates certain conditions linked to compliance with the following
factors associated with the environment and sustainability: i) sustainable capex, ii) LEED and BREAM
certifications, iii) AIS certifications and iv) green energy consumption, which may result in certain
savings in the financial burden. The Parent Company's directors have confirmed that these ratios were
met at 31 December 2022 and do not expect that they will not be fulfilled in the coming years.
In accordance with IFRS 9, the Group evaluated the nature of the refinancing undertaken of the
previous ING loan and concluded that it did not represented a material change (10% test). Therefore,
the difference between the value of the old debt at amortised cost and the new debt discounted at the
effective interest rate of the old debt was recognised as a lower financial expenses of EUR 2,291
thousand under \"Financial expenses\" on the 2019 consolidated income statement. This amount will
revert to the consolidated income statement for subsequent years in accordance with the effective
interest rate of the debt.
In 2022, the application of the amortised cost in relation to these concepts involved a financial cost of
EUR 362 thousand (EUR 363 thousand in 2021).
Maturity of debt
The breakdown by maturity of these loan principals is as follows:
2022
| | | | |
| |
| | | | |
| | | | |
| Syndicated and other loans | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
2021
| | | | | |
| |
| | | | | |
| | | | | |
| Syndicated and other loans | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
The Group had undrawn loans and credit facilities at 31 December 2022 with a number of financial
institutions totalling EUR 1,409 million (EUR 831.2 million at 31 December 2021).
None of the Group's debt was denominated in non-euro currencies at 31 December 2022 or 2021.
There are no significant differences between the fair values and carrying amounts of the Group's
financial liabilities.
The finance cost for interest on the loans totalled EUR 8,595 thousand in 2022 (EUR 13,257 thousand
in 2021) and is recognised in the accompanying consolidated income statement for 2022.
At 31 December 2022 and 2021, the debt arrangement expenses had been deducted from the
balance of \"Bank borrowings\". During the 2022 financial year, the Group has allocated an expense of
EUR 8,827 thousand (in 2021 EUR 4,433 thousand were allocated) under the heading \"Financial
expenses\" of the attached consolidated income statement (see Note 18.d) associated with additional
loans additional to those associated with the discontinued activity. This allocation in the accompanying
consolidated income statement includes both the first application of IFRS 9 and the allocation of the
debt to the income statement at amortised cost.
14.2 Debenture issues
On 12 May 2017, the Parent subscribed a Euro Medium Term Notes (EMTN) issue programme of up
to EUR 4,000 million, which will replace the original bond issue programme and its supplements
subscribed on 6 April 2016 and 14 October 2016, respectively, for an overall maximum amount of EUR
2,700 million.
On 18 May 2018, the Parent extended that bond-issue scheme (Euro Medium Term Notes - EMTN) up
to an amount of EUR 5,000 million.
On 17 June 2020, the General Meeting approved the extension of this bond issuance program up to
an amount of EUR 6,000 million, the increase being performed on 21 March 2021. On 4 August 2022,
the program was renewed for another year.
On 30 June 2021, the Parent issued a 9-year bond of EUR 500 million at 99.196% of the par value
and a coupon of 1.375%. These funds were used to prepay the bond maturing in May 2022 on 23
February 2022.
On 1 June 2022, the Group obtained the conversion of all its bonds into green bonds in accordance
with the Green Financing Framework published on 25 April 2022. The reclassification of bonds to
green bonds does not entail any changes in any other characteristics of the bonds, irrespective of their
terms, interest or maturities.
The terms of the bonds issued by the Group abide by UK laws and are traded on the Luxembourg
Stock Exchange. The bond issue scheme has the same guarantees and new ratio compliance
obligations as the syndicated loan and the revolving credit facility. At year-end 2022, the Group
complied with the covenants set forth in this contract and the directors consider that they will be met in
2023.
The breakdown at 31 December 2022 of the bonds issued by Parent Company is as follows:
2022
2021
(1)Due to the business combination with Metrovacesa performed in 2016, the Group recognised a bond issue launched
by Metrovacesa for EUR 700 million. The terms of the bonds were governed and interpreted according to UK laws
and were traded on the Irish Stock Exchange. This issue also included a series of compliance obligations and
guarantees, which is common in these types of transactions. The bond was paid in advance on 23 February 2022.
These bond issues include commitments to maintain certain coverage ratios. These ratios are defined
as the ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio
between the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt,
both without mortgage guarantee (\"Unissued Ratio\"). The Parent Company's directors have confirmed
that these ratios were met at 31 December 2022 and do not expect that they will not be fulfilled in the
coming years.
The finance cost for interest on the debenture issues amounted to EUR 81,040 thousand (EUR 89,330
thousand in 2021) and is recognised in the accompanying consolidated income statement for 2022.
The accrued interest payable at 31 December 2022 amounted to EUR 32,366 thousand (EUR 40,322
thousand in 2021). Debt arrangement expenses taken to the consolidated income statement in 2022
amounted to EUR 4,901 thousand (EUR 5,370 thousand in 2021).
14.3 Derivatives
A breakdown of the financial instruments as of 31 December 2022 is as follows:
| | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
| | |
To determine the fair value of the interest rate derivatives, the Group discounts the cash flows based
on the embedded derivatives determined by the Euribor interest rate curve in accordance with market
conditions on the measurement date.
These financial instruments were classified as level 2 according to the calculation hierarchy in IFRS 7,
except for those related to the investment in Silicius (see Note 9) classified as level 3.
A breakdown of the derivative financial instruments included in the consolidated statement of financial
position at 31 December 2022 is as follows:
2022
| | |
| |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
| | |
Interest rate derivatives | | |
Total derivatives recognised | | |
2021
. | | |
| |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
Derivative embedded in contract | | |
| | |
| | |
Interest rate derivatives | | |
Total derivatives recognised | | |
On 26 April 2019, the subsidiary Merlin Logistics S.L.U., in the framework of the refinancing of the
mortgage loan with ING Bank N.V., signed a new interest rate swap (IRS) to hedge the extension of
the maturity of the financing from 2020 to 2026. The notional contract amounts to EUR 67.9 million at
a cost of 0.31%.In addition to the early cancellation of the syndicated loan for 850 million euros, in
June 2022, the Group cancelled the interest rate hedging instruments associated with the corporate
syndicated loan.
In 2022 the Group subscribed new interest rate hedges to cover the new syndicated financing for April
2023 to April 2028. The notional contract amounts to EUR 500,000 thousand at a fixed cost of 2,574%.
In addition, interest rate coverage was contracted to cover Sabadell's mortgage loan until its maturity
in January 2028 for a notional amount of EUR 60,000 thousand and a fixed cost of 2.512%.
The interest rate derivatives contracted by the Group and their fair values are as follows:
2022
| | | | | | | |
| | |
| | | Outstanding notional amount at each date |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Syndicated Parent Company (starting 2023) | | | | | | | |
Non-mortgage - Parent Company | | | | | | | |
| | | | | | | |
| | | | | | | |
Group has registered as a result of derivative financial instruments that have not met the hedge
requirements due to inefficiency and due to cancellation of income in the amount of EUR 35,348
thousand in 2022 (negative EUR 9,804 thousand in 2021).
On adopting IFRS 13, the Group adjusted the measurement techniques for calculating the fair value of
its derivatives. The Group includes a bilateral credit risk adjustment to reflect both the own credit risk
and the counterpart party risk in the measurement of the fair value of the derivatives. The Group
applied the discounted cash flow method, considering a discount rate affected by its own credit risk.
To calculate the fair value of the financial derivatives, the Group used generally accepted
measurement techniques in the market, which account for current and future expected exposure,
adjusted by the probability of default and the potential loss given default affecting the contract. The
CVA (Credit Value Adjustment) or counterparty credit risk and DVA (Debt Value Adjustment) or own
credit risk were therefore estimated.
Current and expected exposure in the future is estimated using simulations of scenarios of fluctuations
in market variables, such as interest rate curves, exchange rates and volatilities as per market
conditions at the measurement date.
Furthermore, for the credit risk adjustment, the Group's net exposure has been taken into account with
regards to each of the counterparties, if the financial derivatives arranged with them are within a
financial transaction framework agreement that provides for netting positions. For counterparties for
whom credit information is available, the credit spreads have been obtained from the CDS (Credit
Default Swaps) quoted in the market; whereas for those with no available information, references from
peers have been used. The Group hired an independent expert to measure the fair value of the
derivatives.
The impact of interest rate derivatives on liabilities and profit or loss before tax of a 5% in the
estimated credit risk rate at 31 December 2022 and 2021 would be as follows:
2022
| | | |
| |
| | | Consolidated profit before tax |
| | | |
5% rise in credit risk rate | | | |
5% reduction in credit risk rate | | | |
| | | |
follows:
2022
| | | | | | | | | | |
| | |
| | | | |
| | | | | Interest accrued Discount option | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Short-term revolving credit facilities | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
2021
| | | | | | | | | | |
| | |
| | | | |
| | | | | Interest accrued Discount option | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Short-term revolving credit facilities | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | |
| |
| | |
| | |
| | |
| | |
Short-term revolving credit facilities | | |
| | |
| | |
| | |
| | |
| | |
Loan arrangement expenses | | |
| | |
Senior syndicated mortgage | | |
| | |
| | |
Total current and non-current liabilities | | |
In addition, under the interest rate hedging agreements signed (see Note 14.3), the net balance of the
settlements amounted to EUR 2,819 thousand in 2022 (EUR 5,306 thousand in 2021).
14.5 Debt arrangement expenses
Changes in debt arrangement expenses during 2022 and 2021 are as follows:
| | | | | | | |
| |
| | Allocation to profit and loss account \u2013 Amortised cost | Impact of IFRS 9 on income statement | | | |
| |
| | | | | | |
| | | | | | |
Senior syndicated loan (Tree) | | | | | | |
Mortgage loans - other assets | | | | | | |
| | | | | | |
| | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzgvZnJhZzo3MzRhYjI0Y2I5YTA0ODQ2YjI4ZDgyZDBiNjVmNTlmZC90ZXh0cmVnaW9uOjczNGFiMjRjYjlhMDQ4NDZiMjhkODJkMGI2NWY1OWZkXzQ5NDc4MDIzMzQ4MjY_d812db91-bd83-4efe-b093-a90e7f926330": {
"value": "
10.\u00a0 \u00a0 Current and non-current financial assets
The breakdown, by type, of the balance of this heading in the consolidated statement of financial
position at 31 December 2022 is as follows:
Classification of financial assets by category:
| | |
| |
| | |
| | |
| | |
| | |
Derivative embedded in BBVA lease | | |
Interest rate derivatives | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Financial assets through profit or loss. | | |
| | |
Investments in associates | | |
| | |
| | |
| | |
Trade and other receivables | | |
| | |
The carrying amount of financial assets recognised at amortised cost does not differ from their fair
value.
Derivatives
At year-end 2022, the measurement of interest rate derivatives is recognised under 'Derivatives' (see
Note 14).
At year-end 2021, \"Derivatives\" included the value of the embedded derivative corresponding to the
inflation multiplier included in the lease with BBVA to revise rents annually. This derivative was part of
the Net Lease segment that was divested in 2022 (see Note 3).
Financial assets at fair value through profit or loss
At the end of 2020, this heading included 15.29% in Silicius Real Estate, SOCIMI, S.A. for EUR
86,521 thousand acquired by the Parent through an asset contribution. In the first half of 2021, the
Parent sold 353,966 shares for EUR 5,418 thousand, which did not have a significant impact on
results. The amount of the share after the sale was reduced to EUR 80,964 thousand, which the
Group reclassified to 'Current financial assets,' classified as financial assets with changes to the
income statement, of the accompanying consolidated statement of financial position. On 27 July 2022,
the Group sold 14.28% of the shares of Silicius Real Estate SOCIMI, S.A. for EUR 80,964 thousand,
the full amount of which was paid in cash.
Loans to third parties
\"Other non-current financial assets\" included the loan granted to Urban\u00edsticos Udra, S.A.U.,
shareholder of Crea Madrid Nuevo Norte, S.A., amounting to EUR 86,397 thousand, which accrues
market interest. At 31 December 2022, due to the annual capitalisation of interest, the outstanding
amount was EUR 90,728 thousand in principal and EUR 313 thousand in interest. In relation to this
loan, the Group has guarantees from the creditor associated with 10% of shares in Crea Madrid
Nuevo Norte, S.A., and no credit risk has been identified for the debtor.
Likewise, this heading also includes rental straight lining, marketing expenses and tenant set-up
expenses amounting to 35,189 thousand euros (30,700 thousand euros in 2021).
Deposits and guarantees
\"Deposits and guarantees\" primarily includes the guarantees provided by lessees as security
amounting to EUR 51,988 thousand (EUR 64,124 thousand at 31 December 2021), which the Group
has deposited with the housing authority (Instituto de la Vivienda) in each region. At 31 December
2022, guarantees provided by lessees as security amounted to EUR 62,964 thousand (EUR 73,842
thousand at 31 December 2021) and were recognised under \"Non-current liabilities \u2013 Other financial
liabilities\" on the liability side of the accompanying consolidated statement of financial position for 2022
(see Note 15).
Classification of financial assets by maturity:
The classification of financial assets by maturity at 31 December 2022 and 2021 is as follows:
2022
| | | | | |
| |
| | | | | |
| | | | | |
Interest rate derivatives | | | | | |
| | | | | |
Loans to third parties and associates | | | | | |
| | | | | |
Financial assets at fair value through profit or loss | | | | | |
| | | | | |
Trade and other receivables | | | | | |
| | | | | |
2021
| | | | | |
| |
| | | | | |
| | | | | |
Derivative embedded in BBVA lease(*) (*) | | | | | |
| | | | | |
Loans to third parties and associates | | | | | |
| | | | | |
Financial assets at fair value through profit or loss | | | | | |
| | | | | |
Trade and other receivables | | | | | |
| | | | | |
(*) Activity discontinued in 2022
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzgvZnJhZzo3MzRhYjI0Y2I5YTA0ODQ2YjI4ZDgyZDBiNjVmNTlmZC90ZXh0cmVnaW9uOjczNGFiMjRjYjlhMDQ4NDZiMjhkODJkMGI2NWY1OWZkXzQ5NDc4MDIzMzQ4MjM_f97b05c8-8825-4a83-b46d-668db9818a59": {
"value": "
Derivatives
At year-end 2022, the measurement of interest rate derivatives is recognised under 'Derivatives' (see
Note 14).
At year-end 2021, \"Derivatives\" included the value of the embedded derivative corresponding to the
inflation multiplier included in the lease with BBVA to revise rents annually. This derivative was part of
the Net Lease segment that was divested in 2022 (see Note 3).
13.7 Valuation adjustments
This heading of the consolidated statement of financial position includes changes in the value of
financial derivatives designated as cash flow hedges. Changes in this heading in 2022 were as
follows:
| |
| |
| |
Balance at 31 December 2020 | |
Changes in the fair value of hedges in the year | |
Balance at 31 December 2021 | |
Changes in the fair value of hedges in the year | |
Balance at 31 December 2022 | |
The change in the derivative mainly relates to the reclassification to discontinued activities of the Net
Lease segment, which was settled in the sale made in the first half of the year, and recorded in the
income statement, in profit or loss for the year from discontinued operations net of tax (Note 3) for
EUR 67,420 thousand.
The balance at year-end 2022 relates to the valuation of the new interest rate hedges that the Group
has subscribed to cover the new syndicated financing for April 2023 to April 2028 (see Note 14).
14.3 Derivatives
A breakdown of the financial instruments as of 31 December 2022 is as follows:
| | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
| | |
To determine the fair value of the interest rate derivatives, the Group discounts the cash flows based
on the embedded derivatives determined by the Euribor interest rate curve in accordance with market
conditions on the measurement date.
These financial instruments were classified as level 2 according to the calculation hierarchy in IFRS 7,
except for those related to the investment in Silicius (see Note 9) classified as level 3.
A breakdown of the derivative financial instruments included in the consolidated statement of financial
position at 31 December 2022 is as follows:
2022
| | |
| |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
| | |
Interest rate derivatives | | |
Total derivatives recognised | | |
2021
. | | |
| |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
Derivative embedded in contract | | |
| | |
| | |
Interest rate derivatives | | |
Total derivatives recognised | | |
On 26 April 2019, the subsidiary Merlin Logistics S.L.U., in the framework of the refinancing of the
mortgage loan with ING Bank N.V., signed a new interest rate swap (IRS) to hedge the extension of
the maturity of the financing from 2020 to 2026. The notional contract amounts to EUR 67.9 million at
a cost of 0.31%.In addition to the early cancellation of the syndicated loan for 850 million euros, in
June 2022, the Group cancelled the interest rate hedging instruments associated with the corporate
syndicated loan.
In 2022 the Group subscribed new interest rate hedges to cover the new syndicated financing for April
2023 to April 2028. The notional contract amounts to EUR 500,000 thousand at a fixed cost of 2,574%.
In addition, interest rate coverage was contracted to cover Sabadell's mortgage loan until its maturity
in January 2028 for a notional amount of EUR 60,000 thousand and a fixed cost of 2.512%.
The interest rate derivatives contracted by the Group and their fair values are as follows:
2022
| | | | | | | |
| | |
| | | Outstanding notional amount at each date |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Syndicated Parent Company (starting 2023) | | | | | | | |
Non-mortgage - Parent Company | | | | | | | |
| | | | | | | |
| | | | | | | |
Group has registered as a result of derivative financial instruments that have not met the hedge
requirements due to inefficiency and due to cancellation of income in the amount of EUR 35,348
thousand in 2022 (negative EUR 9,804 thousand in 2021).
On adopting IFRS 13, the Group adjusted the measurement techniques for calculating the fair value of
its derivatives. The Group includes a bilateral credit risk adjustment to reflect both the own credit risk
and the counterpart party risk in the measurement of the fair value of the derivatives. The Group
applied the discounted cash flow method, considering a discount rate affected by its own credit risk.
To calculate the fair value of the financial derivatives, the Group used generally accepted
measurement techniques in the market, which account for current and future expected exposure,
adjusted by the probability of default and the potential loss given default affecting the contract. The
CVA (Credit Value Adjustment) or counterparty credit risk and DVA (Debt Value Adjustment) or own
credit risk were therefore estimated.
Current and expected exposure in the future is estimated using simulations of scenarios of fluctuations
in market variables, such as interest rate curves, exchange rates and volatilities as per market
conditions at the measurement date.
Furthermore, for the credit risk adjustment, the Group's net exposure has been taken into account with
regards to each of the counterparties, if the financial derivatives arranged with them are within a
financial transaction framework agreement that provides for netting positions. For counterparties for
whom credit information is available, the credit spreads have been obtained from the CDS (Credit
Default Swaps) quoted in the market; whereas for those with no available information, references from
peers have been used. The Group hired an independent expert to measure the fair value of the
derivatives.
The impact of interest rate derivatives on liabilities and profit or loss before tax of a 5% in the
estimated credit risk rate at 31 December 2022 and 2021 would be as follows:
2022
| | | |
| |
| | | Consolidated profit before tax |
| | | |
5% rise in credit risk rate | | | |
5% reduction in credit risk rate | | | |
| | | |
income statement, of the accompanying consolidated statement of financial position. On 27 July 2022,
the Group sold 14.28% of the shares of Silicius Real Estate SOCIMI, S.A. for EUR 80,964 thousand,
the full amount of which was paid in cash.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzgvZnJhZzo3MzRhYjI0Y2I5YTA0ODQ2YjI4ZDgyZDBiNjVmNTlmZC90ZXh0cmVnaW9uOjczNGFiMjRjYjlhMDQ4NDZiMjhkODJkMGI2NWY1OWZkXzQ5NDc4MDIzMzQ4MjI_bd85a286-5afd-423b-8999-455147d7cf9c": {
"value": "
Financial assets at fair value through profit or loss
At the end of 2020, this heading included 15.29% in Silicius Real Estate, SOCIMI, S.A. for EUR
86,521 thousand acquired by the Parent through an asset contribution. In the first half of 2021, the
Parent sold 353,966 shares for EUR 5,418 thousand, which did not have a significant impact on
results. The amount of the share after the sale was reduced to EUR 80,964 thousand, which the
Group reclassified to 'Current financial assets,' classified as financial assets with changes to the
income statement, of the accompanying consolidated statement of financial position. On 27 July 2022,
the Group sold 14.28% of the shares of Silicius Real Estate SOCIMI, S.A. for EUR 80,964 thousand,
the full amount of which was paid in cash.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
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}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzgvZnJhZzo3MzRhYjI0Y2I5YTA0ODQ2YjI4ZDgyZDBiNjVmNTlmZC90ZXh0cmVnaW9uOjczNGFiMjRjYjlhMDQ4NDZiMjhkODJkMGI2NWY1OWZkXzQ5NDc4MDIzMzQ4MjQ_6addef9a-e970-49e2-8e31-7ee14bb04047": {
"value": "
At the end of 2020, this heading included 15.29% in Silicius Real Estate, SOCIMI, S.A. for EUR
86,521 thousand acquired by the Parent through an asset contribution. In the first half of 2021, the
Parent sold 353,966 shares for EUR 5,418 thousand, which did not have a significant impact on
results. The amount of the share after the sale was reduced to EUR 80,964 thousand, which the
Group reclassified to 'Current financial assets,' classified as financial assets with changes to the
income statement, of the accompanying consolidated statement of financial position. On 27 July 2022,
the Group sold 14.28% of the shares of Silicius Real Estate SOCIMI, S.A. for EUR 80,964 thousand,
the full amount of which was paid in cash.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182NzgvZnJhZzo3MzRhYjI0Y2I5YTA0ODQ2YjI4ZDgyZDBiNjVmNTlmZC90ZXh0cmVnaW9uOjczNGFiMjRjYjlhMDQ4NDZiMjhkODJkMGI2NWY1OWZkXzQ5NDc4MDIzMzQ4MjU_82312f51-9b8c-459b-a490-24f3aa5c8641": {
"value": "
Deposits and guarantees
\"Deposits and guarantees\" primarily includes the guarantees provided by lessees as security
amounting to EUR 51,988 thousand (EUR 64,124 thousand at 31 December 2021), which the Group
has deposited with the housing authority (Instituto de la Vivienda) in each region. At 31 December
2022, guarantees provided by lessees as security amounted to EUR 62,964 thousand (EUR 73,842
thousand at 31 December 2021) and were recognised under \"Non-current liabilities \u2013 Other financial
liabilities\" on the liability side of the accompanying consolidated statement of financial position for 2022
(see Note 15).
The Company has granted no advances, loans or guarantees to any of its directors.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCollateralExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODEvZnJhZzplNmQxYzJkMzU5MmQ0N2FhOWIzYjA4MzA3MDg5ZjYyZi90ZXh0cmVnaW9uOmU2ZDFjMmQzNTkyZDQ3YWE5YjNiMDgzMDcwODlmNjJmXzQ5NDc4MDIzMjkwNDc_bcae6586-6126-4906-9cea-569b6bb84e2a": {
"value": "
11.\u00a0 \u00a0 Trade and other receivables
At 31 December 2022, the heading \"Trade and other receivables\" includes the following items:
| | |
| |
| | |
| | |
Trade and notes receivable | | |
| | |
| | |
Sundry accounts receivable | | |
| | |
Other receivables from public authorities (Note 17) | | |
Impairment of trade receivables | | |
| | |
\"Trade and notes receivable\" in the accompanying consolidated statement of financial position at 31
December 2022 mainly included the balances receivable from leasing investment property. In general
these receivables are interest free and the terms of collection range from immediate payment on billing
to payment at 30 days, while the average collection period is approximately 5 days (5 days in 2021).
At 31 December 2022, a breakdown by age of overdue receivables not considered impaired is as
follows:
At 31 December 2022 and 2021, no collection rights had been transferred to financial institutions.
In accordance with IFRS 9, the Group periodically analyses the risk of insolvency of its accounts
receivable by updating the related provision for impairment losses. The Group's directors consider that
the amount of trade and other receivables approximates their fair value.
The changes in the impairment losses and bad debt in 2022 and 2021 were as follows:
| |
| |
| |
| |
Balance at 31 December 2020 | |
| |
| |
| |
Balance at 31 December 2021 | |
| |
| |
| |
Balance at 31 December 2022 | |
Losses from bad debts amounted to EUR 2,051 thousand in 2022. The majority of impaired
receivables are overdue by more than six months.
Details of the concentration of customers (customers that account for a significant share of business)
are included in the segment information in Note 6.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODEvZnJhZzplNmQxYzJkMzU5MmQ0N2FhOWIzYjA4MzA3MDg5ZjYyZi90ZXh0cmVnaW9uOmU2ZDFjMmQzNTkyZDQ3YWE5YjNiMDgzMDcwODlmNjJmXzQ5NDc4MDIzMjkwNDg_29247523-74ab-41b2-8b28-7075ec3dceb8": {
"value": "
In accordance with IFRS 9, the Group periodically analyses the risk of insolvency of its accounts
receivable by updating the related provision for impairment losses. The Group's directors consider that
the amount of trade and other receivables approximates their fair value.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODEvZnJhZzplNmQxYzJkMzU5MmQ0N2FhOWIzYjA4MzA3MDg5ZjYyZi90ZXh0cmVnaW9uOmU2ZDFjMmQzNTkyZDQ3YWE5YjNiMDgzMDcwODlmNjJmXzQ5NDc4MDIzMjkwNDk_3980bfb0-1c6b-4bdf-beb2-284501417efa": {
"value": "
The changes in the impairment losses and bad debt in 2022 and 2021 were as follows:
| |
| |
| |
| |
Balance at 31 December 2020 | |
| |
| |
| |
Balance at 31 December 2021 | |
| |
| |
| |
Balance at 31 December 2022 | |
Losses from bad debts amounted to EUR 2,051 thousand in 2022. The majority of impaired
receivables are overdue by more than six months.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODQvZnJhZzo5ODcwODFmZmY1YzY0NTBhYjUyOTM0N2M3OTg3Y2JjYS90ZXh0cmVnaW9uOjk4NzA4MWZmZjVjNjQ1MGFiNTI5MzQ3Yzc5ODdjYmNhXzQ5NDc4MDIzMjY4ODU_223c5bf9-c265-4644-a9be-9f2b0914a627": {
"value": "
12.\u00a0 \u00a0 Cash and cash equivalents
\"Cash and cash equivalents\" includes the Group's cash and short-term bank deposits with an original
maturity of three months or less. The carrying amount of these assets does not differ from their fair
value.
At 31 December 2022 and 2021, the balance of \"Cash and cash equivalents\" is freely available,
except for EUR 4,720 thousand and EUR 6,534 thousand, respectively, which mainly include in 2022 a
deposit account associated with the purchase of an office building and in 2021 a reserve account to
pay the debt service for one quarter of a syndicated mortgage loan, maintained by the Group.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODQvZnJhZzo5ODcwODFmZmY1YzY0NTBhYjUyOTM0N2M3OTg3Y2JjYS90ZXh0cmVnaW9uOjk4NzA4MWZmZjVjNjQ1MGFiNTI5MzQ3Yzc5ODdjYmNhXzQ5NDc4MDIzMjY4ODc_549973f1-0f2d-42d4-a7cc-c153bc9c71a7": {
"value": "
At 31 December 2022 and 2021, the balance of \"Cash and cash equivalents\" is freely available,
except for EUR 4,720 thousand and EUR 6,534 thousand, respectively, which mainly include in 2022 a
deposit account associated with the purchase of an office building and in 2021 a reserve account to
pay the debt service for one quarter of a syndicated mortgage loan, maintained by the Group.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODcvZnJhZzplNjIzM2NmOTliZmE0NGI2ODgyY2E3MmUzZjk1NzI0Ni90ZXh0cmVnaW9uOmU2MjMzY2Y5OWJmYTQ0YjY4ODJjYTcyZTNmOTU3MjQ2XzQ5NDc4MDIzNDg4NTA_9ee4dd7c-fdd5-4804-af1b-5c7c282498ea": {
"value": "
13.\u00a0 \u00a0 Equity
A breakdown of \"Equity\" and of the changes therein is presented in the consolidated statement of
changes in equity.
13.1 Share capital
As of 31 December 2022, the share capital of Merlin Properties SOCIMI, S.A., amounted to EUR
469,771 thousand, represented by 469,770,750 fully subscribed and paid shares of EUR 1 par value
each, all of which are of the same class and confer the holders thereof the same rights.
All the Parent's shares can be publicly traded and are listed on the Madrid, Barcelona, Bilbao and
Valencia and Lisbon Stock Exchanges. The market price of the Parent's shares at 31 December 2022
and the average market price for the fourth quarter amounted to EUR 8.78 and EUR 8.65 per share,
respectively.
At 31 December 2022, according to information extracted from the CNMV, in relation to Royal Decree
1362/2007, of 19 October and Circular 2/2007, of 19 December, the shareholders with significant
holdings in the share capital of Merlin Properties SOCIMI, S.A., both direct and indirect, in excess of
3% of the share capital, are the following according to public information:
| | | | |
| | |
| | |
| | | | |
| | | | |
Nortia Capital Investment Holding, S.L. | | | | |
| | | | |
| | | | |
Information from Banco Santander and Manual Lao Hern\u00e1ndez (Nortia Capital Investment Holding,
S.L.) was obtained from the Register of Members book at year-end 2022.
13.2 Share premium
The Consolidated Text of the Corporate Enterprises Act expressly permits the use of the share
premium to increase capital and establishes no specific restrictions as to its use.
This reserve is unrestricted so long as its allocation does not lower equity to below the amount of
share capital.
On 4 May 2022, the General Meeting approved the distribution of an interim dividend charged to share
premium in the amount of EUR 106,497 thousand.
13.3 Other reserves
A breakdown of reserves at 31 December 2022 and 2021 is as follows:
| | |
| |
| | |
| | |
| | |
Reserves of consolidated companies | | |
| | |
| | |
Legal reserve
The legal reserve will be in accordance with Article 274 of the Consolidated Text of the Corporate
Enterprises Act, which stipulates, in all cases, that 10% of net profit for each year must be transferred
to the legal reserve until the balance of this reserve reaches at least 20% of the share capital.
This reserve cannot be distributed, and if it is used to offset losses, in the event no other reserves are
available for this purpose, it must be restored with future profits.
At 31 December 2022, the Group had not yet reached the legally required minimum in the
Consolidated Text of the Corporate Enterprises Act.
The legal reserve of companies which have chosen to avail themselves of the special tax regime in
Law 11/2009, , governing REITs, must not exceed 20% of share capital. The bylaws of these
companies may not establish any other type of restricted reserves.
Reserves in consolidated companies
The changes in 2022 in the heading \"Reserves in consolidated companies\" are as follows:
| | | | | |
| |
| | Incorporation of prior year\u00b4s results | | | |
| | | | | |
Reserves in consolidated companies | | | | | |
Dividends
On 4 May 2022, the General Meeting approved the distribution of a dividend charged to \"share
premium\" in the amount of EUR 106,497 thousand, and the distribution of an additional dividend
charged to 2021 profit for EUR 10,614 thousand, both dividends being paid on 27 May 2022.
On 28 July 2022, the Board approved the distribution of an interim dividend charged to earnings for
2022 in the amount of EUR 351,169 thousand.
On 10 November 2022, the Board approved the distribution of a dividend of EUR 93,646 thousand
charged to the profit for 2022.
13.4 Treasury shares
At 31 December 2022, the Parent held treasury shares amounting to EUR 17,166 thousand.
The changes in 2022 were as follows:
| | |
| | |
| | |
| | |
Balance at 1 January 2021 | | |
| | |
| | |
Balance at 31 December 2021 | | |
| | |
| | |
Balance at 31 December 2022 | | |
The General Meeting held on 10 April 2019 revoked the authorisation granted by the General Meeting
of April 2018 in the part not used and then authorised the acquisition of shares by the Company itself
or by a Group company, under Article 146 and related provisions of the Corporate Enterprises Act, in
accordance with the requirements and restrictions under the current law during the five-year period.
The withdrawals of treasury shares amounting to EUR 15,261 thousand (average cost of EUR 11.20
per share) mainly correspond to the second and final delivery of shares within the so-called 2017-2019
Incentive Plan (see Note 15) for EUR 14,133 thousand and to the delivery of shares to employees
within the flexible remuneration plan for EUR 864 thousand.
The Group had a liquidity agreement for the securities listed on the Lisbon Stock Exchange, with net
sales of 9,740 shares in 2022 (EUR 142 thousand).
At 31 December 2022, the Parent held treasury shares representing 0.327% of its share capital.
13.5 Capital management
The Group's capital management objectives are to safeguard its capacity to continue operating as a
going concern so that it can continue to provide returns to shareholders and to benefit interest groups,
and to maintain an optimum financial structure to reduce the cost of capital.
In line with the practices of other groups present in the sector, the Group controls its capital structure
through the debt ratio, calculated as net debt divided by total capital. Net debt is determined as the
sum of financial liabilities less cash and cash equivalents. Total capital is calculated as the sum of
equity plus net debt.
| | |
| |
| | |
| | |
| | |
Less - Cash and cash equivalents and Other current financial assets (a) | | |
| | |
| | |
| | |
| | |
1.In 2021 the current financial asset, net of the value of the option corresponding to
15.26% of Silicius Real Estate SOCIMI shares, was included (see Note 10) for EUR
80,964 thousand. Also, financial assets contributed in 2021 for the discontinued activity
are included (see Note 3) .In both 2022 and 2021, the amount of shares in the portfolio
is included as other current financial assets.
2.Gross debt amounts without considering debt formalisation expenses. 2021 includes
financial debt for the discontinued segment (see Note 3).
13.6 Earnings per share
Basic
Basic earnings per share are calculated by dividing the net profit attributable to common equity holders
of the Parent by the weighted average number of ordinary shares outstanding during the period,
excluding treasury shares.
A breakdown of the calculation of basic earnings per share is as follows:
| | |
| | |
| | |
| | |
Weighted average number of shares outstanding (thousands) | | |
| | |
| | |
Profit for the period attributable to the Parent (thousands of euros) | | |
Basic earnings per share (euros) | | |
| | |
| | |
Profit for the period attributable to the Parent (thousands of euros) | | |
Basic earnings per share (euros) | | |
Diluted
In accordance with paragraph 41 of IAS 33, potential ordinary shares are treated as dilutive when, and
only when, their conversion to ordinary shares could reduce the earnings per share of the continuing
activities. At 31 December 2022, there was no potential dilutive effect arising from the variable
remuneration that the Group had granted to its executives and key staff (see Note 20), basic profit
being in line with diluted profit.
13.7 Valuation adjustments
This heading of the consolidated statement of financial position includes changes in the value of
financial derivatives designated as cash flow hedges. Changes in this heading in 2022 were as
follows:
| |
| |
| |
Balance at 31 December 2020 | |
Changes in the fair value of hedges in the year | |
Balance at 31 December 2021 | |
Changes in the fair value of hedges in the year | |
Balance at 31 December 2022 | |
The change in the derivative mainly relates to the reclassification to discontinued activities of the Net
Lease segment, which was settled in the sale made in the first half of the year, and recorded in the
income statement, in profit or loss for the year from discontinued operations net of tax (Note 3) for
EUR 67,420 thousand.
The balance at year-end 2022 relates to the valuation of the new interest rate hedges that the Group
has subscribed to cover the new syndicated financing for April 2023 to April 2028 (see Note 14).
.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODcvZnJhZzplNjIzM2NmOTliZmE0NGI2ODgyY2E3MmUzZjk1NzI0Ni90ZXh0cmVnaW9uOmU2MjMzY2Y5OWJmYTQ0YjY4ODJjYTcyZTNmOTU3MjQ2XzQ5NDc4MDIzNDg4NTE_3e9383f2-bdd9-40f5-8078-b0d5a24a21eb": {
"value": "
13.1 Share capital
As of 31 December 2022, the share capital of Merlin Properties SOCIMI, S.A., amounted to EUR
469,771 thousand, represented by 469,770,750 fully subscribed and paid shares of EUR 1 par value
each, all of which are of the same class and confer the holders thereof the same rights.
All the Parent's shares can be publicly traded and are listed on the Madrid, Barcelona, Bilbao and
Valencia and Lisbon Stock Exchanges. The market price of the Parent's shares at 31 December 2022
and the average market price for the fourth quarter amounted to EUR 8.78 and EUR 8.65 per share,
respectively.
At 31 December 2022, according to information extracted from the CNMV, in relation to Royal Decree
1362/2007, of 19 October and Circular 2/2007, of 19 December, the shareholders with significant
holdings in the share capital of Merlin Properties SOCIMI, S.A., both direct and indirect, in excess of
3% of the share capital, are the following according to public information:
| | | | |
| | |
| | |
| | | | |
| | | | |
Nortia Capital Investment Holding, S.L. | | | | |
| | | | |
| | | | |
Information from Banco Santander and Manual Lao Hern\u00e1ndez (Nortia Capital Investment Holding,
S.L.) was obtained from the Register of Members book at year-end 2022.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODcvZnJhZzplNjIzM2NmOTliZmE0NGI2ODgyY2E3MmUzZjk1NzI0Ni90ZXh0cmVnaW9uOmU2MjMzY2Y5OWJmYTQ0YjY4ODJjYTcyZTNmOTU3MjQ2XzQ5NDc4MDIzNDg4NTI_f0199723-3374-4c47-93c5-172af4ae2ec2": {
"value": "
13.2 Share premium
The Consolidated Text of the Corporate Enterprises Act expressly permits the use of the share
premium to increase capital and establishes no specific restrictions as to its use.
This reserve is unrestricted so long as its allocation does not lower equity to below the amount of
share capital.
On 4 May 2022, the General Meeting approved the distribution of an interim dividend charged to share
premium in the amount of EUR 106,497 thousand.
13.3 Other reserves
A breakdown of reserves at 31 December 2022 and 2021 is as follows:
| | |
| |
| | |
| | |
| | |
Reserves of consolidated companies | | |
| | |
| | |
Legal reserve
The legal reserve will be in accordance with Article 274 of the Consolidated Text of the Corporate
Enterprises Act, which stipulates, in all cases, that 10% of net profit for each year must be transferred
to the legal reserve until the balance of this reserve reaches at least 20% of the share capital.
This reserve cannot be distributed, and if it is used to offset losses, in the event no other reserves are
available for this purpose, it must be restored with future profits.
At 31 December 2022, the Group had not yet reached the legally required minimum in the
Consolidated Text of the Corporate Enterprises Act.
The legal reserve of companies which have chosen to avail themselves of the special tax regime in
Law 11/2009, , governing REITs, must not exceed 20% of share capital. The bylaws of these
companies may not establish any other type of restricted reserves.
Reserves in consolidated companies
The changes in 2022 in the heading \"Reserves in consolidated companies\" are as follows:
| | | | | |
| |
| | Incorporation of prior year\u00b4s results | | | |
| | | | | |
Reserves in consolidated companies | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODcvZnJhZzplNjIzM2NmOTliZmE0NGI2ODgyY2E3MmUzZjk1NzI0Ni90ZXh0cmVnaW9uOmU2MjMzY2Y5OWJmYTQ0YjY4ODJjYTcyZTNmOTU3MjQ2XzQ5NDc4MDIzNDg4NTU_7ba58179-f72e-4914-a472-2793f9276d41": {
"value": "
13.4 Treasury shares
At 31 December 2022, the Parent held treasury shares amounting to EUR 17,166 thousand.
The changes in 2022 were as follows:
| | |
| | |
| | |
| | |
Balance at 1 January 2021 | | |
| | |
| | |
Balance at 31 December 2021 | | |
| | |
| | |
Balance at 31 December 2022 | | |
The General Meeting held on 10 April 2019 revoked the authorisation granted by the General Meeting
of April 2018 in the part not used and then authorised the acquisition of shares by the Company itself
or by a Group company, under Article 146 and related provisions of the Corporate Enterprises Act, in
accordance with the requirements and restrictions under the current law during the five-year period.
The withdrawals of treasury shares amounting to EUR 15,261 thousand (average cost of EUR 11.20
per share) mainly correspond to the second and final delivery of shares within the so-called 2017-2019
Incentive Plan (see Note 15) for EUR 14,133 thousand and to the delivery of shares to employees
within the flexible remuneration plan for EUR 864 thousand.
The Group had a liquidity agreement for the securities listed on the Lisbon Stock Exchange, with net
sales of 9,740 shares in 2022 (EUR 142 thousand).
At 31 December 2022, the Parent held treasury shares representing 0.327% of its share capital.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182ODcvZnJhZzplNjIzM2NmOTliZmE0NGI2ODgyY2E3MmUzZjk1NzI0Ni90ZXh0cmVnaW9uOmU2MjMzY2Y5OWJmYTQ0YjY4ODJjYTcyZTNmOTU3MjQ2XzQ5NDc4MDIzNDg4NTY_a462288b-0c3d-4bb7-b0f1-02720447f4d0": {
"value": "
13.5 Capital management
The Group's capital management objectives are to safeguard its capacity to continue operating as a
going concern so that it can continue to provide returns to shareholders and to benefit interest groups,
and to maintain an optimum financial structure to reduce the cost of capital.
In line with the practices of other groups present in the sector, the Group controls its capital structure
through the debt ratio, calculated as net debt divided by total capital. Net debt is determined as the
sum of financial liabilities less cash and cash equivalents. Total capital is calculated as the sum of
equity plus net debt.
| | |
| |
| | |
| | |
| | |
Less - Cash and cash equivalents and Other current financial assets (a) | | |
| | |
| | |
| | |
| | |
1.In 2021 the current financial asset, net of the value of the option corresponding to
15.26% of Silicius Real Estate SOCIMI shares, was included (see Note 10) for EUR
80,964 thousand. Also, financial assets contributed in 2021 for the discontinued activity
are included (see Note 3) .In both 2022 and 2021, the amount of shares in the portfolio
is included as other current financial assets.
2.Gross debt amounts without considering debt formalisation expenses. 2021 includes
financial debt for the discontinued segment (see Note 3).
",
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"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
13.6 Earnings per share
Basic
Basic earnings per share are calculated by dividing the net profit attributable to common equity holders
of the Parent by the weighted average number of ordinary shares outstanding during the period,
excluding treasury shares.
A breakdown of the calculation of basic earnings per share is as follows:
| | |
| | |
| | |
| | |
Weighted average number of shares outstanding (thousands) | | |
| | |
| | |
Profit for the period attributable to the Parent (thousands of euros) | | |
Basic earnings per share (euros) | | |
| | |
| | |
Profit for the period attributable to the Parent (thousands of euros) | | |
Basic earnings per share (euros) | | |
Diluted
In accordance with paragraph 41 of IAS 33, potential ordinary shares are treated as dilutive when, and
only when, their conversion to ordinary shares could reduce the earnings per share of the continuing
activities. At 31 December 2022, there was no potential dilutive effect arising from the variable
remuneration that the Group had granted to its executives and key staff (see Note 20), basic profit
being in line with diluted profit.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
14.\u00a0 \u00a0 Current and non-current financial liabilities
At 31 December 2022, current and non-current liabilities were as follows:
| | |
| |
| | |
| | |
| | |
Measured at amortised cost- | | |
| | |
Syndicated loan arrangement expenses | | |
| | |
Senior syndicated mortgage loan (Tree) | | |
Syndicated mortgage loan arrangement costs (Tree) | | |
Total senior syndicated mortgage loan (Tree) | | |
| | |
| | |
Loan arrangement expenses | | |
| | |
| | |
| | |
Total debentures and bonds | | |
| | |
| | |
Derivative financial instruments | | |
| | |
| | |
| | |
Measured at amortised cost | | |
| | |
Senior syndicated mortgage loan (Tree) | | |
| | |
| | |
Revolving credit facility | | |
| | |
Loan arrangement expenses | | |
| | |
| | |
Derivative financial instruments | | |
| | |
| | |
There is no material difference between the carrying amount and the fair value of financial liabilities at
amortised cost.
On 20 April 2016, the Parent was given a credit rating of \"BBB\" with stable outlook by Standard &
Poor's Rating Credit Market Services Europe Limited. On 2 May 2018, Standard & Poor's updated this
rating to \"BBB\" with a positive outlook, changing it to stable outlook due to the COVID-19 pandemic on
27 March 2020. On 12 April 2022, as a result of the sale of TREE Inversiones Inmobiliarias SOCIMI,
S.A.,& Standard & Poor's updated this outlook to positive.
Additionally, on 17 October 2016, the Company was given a credit rating of \"investment grade\" \"Baa2\"
by Moody's. On 27 May 2020, Moody's updated this rating to \"Baa2\" with a negative outlook due to the
COVID-19 pandemic. On 2 May 2022, as a result of the sale of TREE Inversiones Inmobiliarias
SOCIMI, S.A., Moody's updated this outlook to positive.
14.1 Loans
A breakdown of loans at 31 December 2022 is as follows:
2022
| | | | | |
| |
|
| | Expenses incurred from formalising loans (Note 14.5) | | |
| | | |
| | | | | |
| | | | | |
| | | | | |
Revolving credit facilities | | | | | |
Mortgage loans - other assets | | | | | |
| | | | | |
2021
| | | | | |
| |
|
| | Expenses incurred from formalising loans (Note 14.5) | | |
| | | |
| | | | | |
| | | | | |
| | | | | |
Revolving credit facilities | | | | | |
Senior syndicated mortgage loan (Tree) | | | | | |
Mortgage loans - other assets | | | | | |
| | | | | |
Syndicated loans and revolving credit facility - Parent Company
On 25 April 2019, the Group arranged a senior syndicated loan amounting to EUR 1,550million,
including two tranches, a corporate loan of EUR 850 million and a corporate credit facility of EUR 700
million due in 2024.
The initial maturity date for this revolving credit facility was 2024, with the possibility of two optional
one-year extensions. The second one-year extension was approved on 30 June 2021, and the new
maturity date is 9 May 2026.
The EUR 850 million corporate loan accrued an interest rate of the one-month EURIBOR + 120 basis
points, while the revolving credit facility yielded an interest rate of the one-month EURIBOR + 90 basis
points, and both incorporated a cost adjustment mechanism based on four sustainability criteria.
On 21 June 2022, the Group performed an early cancellation of the corporate loan for EUR 850
million.
In 2022, as a result of the early cancellation of this financing, the application of amortized cost in
relation to IFRS 9 represented a financial cost of EUR 4,213 thousand (EUR 1,790 thousand in 2021).
On 18 November 2022, the Parent arranged a new senior syndicated loan amounting to EUR 600
million with the possibility of being arranged before 24 April 2023 for the repayment of the bond
maturing in 2023. This financing will have a maturity of 5 years from its disposal and will accrue a
market rate of EURIBOR plus 130 basis points. For the period in which the financing is not drawn
down, a commission will be applied for the unarranged balance of 26 basis points. At year-end 2022,
the loan was not drawn down.
These funds incorporate commitments to maintain certain coverage ratios existing in the previous
financing, in Group bonds and in the financing from Banco Sabadell. These ratios are defined as the
ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio between
the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt, both without
mortgage guarantee (\"Unissued Ratio\"). In addition, they contemplate certain conditions linked to
compliance with environmental and sustainability factors that may result in certain savings in their
financial burden. The Parent Company's directors have confirmed that these ratios were met at 31
December 2022 and do not expect that they will not be fulfilled in the coming years.
Unsecured loans of the Parent
Banco Sabadell loan
On 18 November 2022, the Parent arranged a loan without mortgage guarantee with Banco Sabadell
amounting to EUR 60 million, maturing in January 2028 and accruing a market rate of EURIBOR 120
basis points.
This financing includes commitments to maintain certain coverage ratios described in the previous
section. The Parent Company's directors have confirmed that these ratios were met at 31 December
2022 and do not expect that they will not be fulfilled in the coming years.
Loans from the European Investment Bank
On 20 December 2018, the Parent formalised a loan without mortgage security with the European
Investment Bank in an amount of EUR 51 million. On 4 November 2019, the Parent formalised the
second tranche of the mortgage-free loan with the European Investment Bank amounting to EUR 64
million, amounting to EUR 115 million. This financing can be arranged through several loans with a
maturity of 10 years on each drawdown. This credit facility must be allocated to the development of
logistical assets in the Castille\u2013La Mancha region.
On 10 March 2020 and 26 October 2020, the Group drew down EUR 23.4 million and EUR 5.6 million
corresponding to the first tranche of the financing. This loan accruals a fixed interest rate of 60 basis
points. On 20 December 2022, the Group had drawn down EUR 22 million and 370 basis points.
These three loans complete the provision for the first tranche of EUR 51 million.
On 16 December 2021, the Parent formalised a loan without mortgage security with the European
Investment Bank in an amount of EUR 45.2 million and with 10-year maturity. This financing will be
used to make investments in energy efficiency. At year-end, this loan was not drawn down.
This financing includes commitments to maintain certain coverage ratios. These ratios are defined as
the ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio
between the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt,
both without mortgage guarantee (\"Unissued Ratio\"). The Parent Company's directors have confirmed
that these ratios were met at 31 December 2022 and do not expect that they will not be fulfilled in the
coming years.
\"Senior\" syndicated mortgage loan (Tree):
The senior syndicated mortgage loan of the subsidiary, Tree Investments Inmobiliarias SOCIMI, S.A.,
was signed on 29 July 2010 and novated for the first time on 30 December 2014.
The refinancing for 2014 and the first application of IFRS 9 'Financial Instruments' resulted in an
increase in reserves and a decrease in debt amounting to EUR 30,592 thousand at 1 January 2018,
and an increase in financial expenditure amounting to EUR 10,083 thousand in 2018.
On 29 November 2018, the senior syndicated loan was novated so that the initially scheduled maturity
in 2024 was postponed until 31 March 2031 with the possibility of extending the maturity annually for
the next 3 years until 31 March 2034. The third of these extensions was approved in 2022. This
financing accrues interest at a rate of 3-month EURIBOR + 120 basis point.
On 15 June 2022, as a result of the sale of the shares of TREE Inversiones Inmobiliarias S.A. to
BBVA, the Group repaid in advance the mortgage financing associated with the bank branches.
Mortgage loans - other assets
At 31 December 2022, the Group's subsidiaries had taken out the following mortgage loans:
2022
2021
On 26 March 2015, the Group subrogated a mortgage-backed loan taken out with Caixabank, S.A.
with a mortgage guarantee on the Alcal\u00e1 38-40 office building. This loan has a principal of EUR 21
million, a term of 15 years, an interest rate of 3-month EURIBOR + 150 basis points, a 4-year grace
period for the principal, and the principal is repayable in full using the French method over the
following 11 years.
On 26 April 2019, the Group entered into a novation agreement modifying the mortgage loan
subscribed on 4 December 2015 with ING Bank N.V. by the subsidiary Merlin Log\u00edstica S.L.U. The due
date for this financial arrangement, originally set to be in 2020, was extended until 2026. This financial
arrangement accrues an interest rate of EURIBOR at three months + 100 basis points; it includes a
financial cost adjustment mechanism based on meeting four sustainability criteria. On 26 March 2021,
the mortgage financing agreement was changed, extending the loan amount by EUR 2.1 million to a
total of EUR 70 million.
This loan requires that the company maintain and comply with certain coverage ratios, such as the
loan-to-value ratio and the ratio of the company's income used to service the debt (interest coverage
ratio, ICR). Additionally, it contemplates certain conditions linked to compliance with the following
factors associated with the environment and sustainability: i) sustainable capex, ii) LEED and BREAM
certifications, iii) AIS certifications and iv) green energy consumption, which may result in certain
savings in the financial burden. The Parent Company's directors have confirmed that these ratios were
met at 31 December 2022 and do not expect that they will not be fulfilled in the coming years.
In accordance with IFRS 9, the Group evaluated the nature of the refinancing undertaken of the
previous ING loan and concluded that it did not represented a material change (10% test). Therefore,
the difference between the value of the old debt at amortised cost and the new debt discounted at the
effective interest rate of the old debt was recognised as a lower financial expenses of EUR 2,291
thousand under \"Financial expenses\" on the 2019 consolidated income statement. This amount will
revert to the consolidated income statement for subsequent years in accordance with the effective
interest rate of the debt.
In 2022, the application of the amortised cost in relation to these concepts involved a financial cost of
EUR 362 thousand (EUR 363 thousand in 2021).
Maturity of debt
The breakdown by maturity of these loan principals is as follows:
2022
| | | | |
| |
| | | | |
| | | | |
| Syndicated and other loans | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
2021
| | | | | |
| |
| | | | | |
| | | | | |
| Syndicated and other loans | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
The Group had undrawn loans and credit facilities at 31 December 2022 with a number of financial
institutions totalling EUR 1,409 million (EUR 831.2 million at 31 December 2021).
None of the Group's debt was denominated in non-euro currencies at 31 December 2022 or 2021.
There are no significant differences between the fair values and carrying amounts of the Group's
financial liabilities.
The finance cost for interest on the loans totalled EUR 8,595 thousand in 2022 (EUR 13,257 thousand
in 2021) and is recognised in the accompanying consolidated income statement for 2022.
At 31 December 2022 and 2021, the debt arrangement expenses had been deducted from the
balance of \"Bank borrowings\". During the 2022 financial year, the Group has allocated an expense of
EUR 8,827 thousand (in 2021 EUR 4,433 thousand were allocated) under the heading \"Financial
expenses\" of the attached consolidated income statement (see Note 18.d) associated with additional
loans additional to those associated with the discontinued activity. This allocation in the accompanying
consolidated income statement includes both the first application of IFRS 9 and the allocation of the
debt to the income statement at amortised cost.
14.2 Debenture issues
On 12 May 2017, the Parent subscribed a Euro Medium Term Notes (EMTN) issue programme of up
to EUR 4,000 million, which will replace the original bond issue programme and its supplements
subscribed on 6 April 2016 and 14 October 2016, respectively, for an overall maximum amount of EUR
2,700 million.
On 18 May 2018, the Parent extended that bond-issue scheme (Euro Medium Term Notes - EMTN) up
to an amount of EUR 5,000 million.
On 17 June 2020, the General Meeting approved the extension of this bond issuance program up to
an amount of EUR 6,000 million, the increase being performed on 21 March 2021. On 4 August 2022,
the program was renewed for another year.
On 30 June 2021, the Parent issued a 9-year bond of EUR 500 million at 99.196% of the par value
and a coupon of 1.375%. These funds were used to prepay the bond maturing in May 2022 on 23
February 2022.
On 1 June 2022, the Group obtained the conversion of all its bonds into green bonds in accordance
with the Green Financing Framework published on 25 April 2022. The reclassification of bonds to
green bonds does not entail any changes in any other characteristics of the bonds, irrespective of their
terms, interest or maturities.
The terms of the bonds issued by the Group abide by UK laws and are traded on the Luxembourg
Stock Exchange. The bond issue scheme has the same guarantees and new ratio compliance
obligations as the syndicated loan and the revolving credit facility. At year-end 2022, the Group
complied with the covenants set forth in this contract and the directors consider that they will be met in
2023.
The breakdown at 31 December 2022 of the bonds issued by Parent Company is as follows:
2022
2021
(1)Due to the business combination with Metrovacesa performed in 2016, the Group recognised a bond issue launched
by Metrovacesa for EUR 700 million. The terms of the bonds were governed and interpreted according to UK laws
and were traded on the Irish Stock Exchange. This issue also included a series of compliance obligations and
guarantees, which is common in these types of transactions. The bond was paid in advance on 23 February 2022.
These bond issues include commitments to maintain certain coverage ratios. These ratios are defined
as the ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio
between the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt,
both without mortgage guarantee (\"Unissued Ratio\"). The Parent Company's directors have confirmed
that these ratios were met at 31 December 2022 and do not expect that they will not be fulfilled in the
coming years.
The finance cost for interest on the debenture issues amounted to EUR 81,040 thousand (EUR 89,330
thousand in 2021) and is recognised in the accompanying consolidated income statement for 2022.
The accrued interest payable at 31 December 2022 amounted to EUR 32,366 thousand (EUR 40,322
thousand in 2021). Debt arrangement expenses taken to the consolidated income statement in 2022
amounted to EUR 4,901 thousand (EUR 5,370 thousand in 2021).
14.3 Derivatives
A breakdown of the financial instruments as of 31 December 2022 is as follows:
| | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
| | |
To determine the fair value of the interest rate derivatives, the Group discounts the cash flows based
on the embedded derivatives determined by the Euribor interest rate curve in accordance with market
conditions on the measurement date.
These financial instruments were classified as level 2 according to the calculation hierarchy in IFRS 7,
except for those related to the investment in Silicius (see Note 9) classified as level 3.
A breakdown of the derivative financial instruments included in the consolidated statement of financial
position at 31 December 2022 is as follows:
2022
| | |
| |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
| | |
Interest rate derivatives | | |
Total derivatives recognised | | |
2021
. | | |
| |
| | |
| | |
| | |
| | |
Interest rate derivatives | | |
Derivative embedded in contract | | |
| | |
| | |
Interest rate derivatives | | |
Total derivatives recognised | | |
On 26 April 2019, the subsidiary Merlin Logistics S.L.U., in the framework of the refinancing of the
mortgage loan with ING Bank N.V., signed a new interest rate swap (IRS) to hedge the extension of
the maturity of the financing from 2020 to 2026. The notional contract amounts to EUR 67.9 million at
a cost of 0.31%.In addition to the early cancellation of the syndicated loan for 850 million euros, in
June 2022, the Group cancelled the interest rate hedging instruments associated with the corporate
syndicated loan.
In 2022 the Group subscribed new interest rate hedges to cover the new syndicated financing for April
2023 to April 2028. The notional contract amounts to EUR 500,000 thousand at a fixed cost of 2,574%.
In addition, interest rate coverage was contracted to cover Sabadell's mortgage loan until its maturity
in January 2028 for a notional amount of EUR 60,000 thousand and a fixed cost of 2.512%.
The interest rate derivatives contracted by the Group and their fair values are as follows:
2022
| | | | | | | |
| | |
| | | Outstanding notional amount at each date |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Syndicated Parent Company (starting 2023) | | | | | | | |
Non-mortgage - Parent Company | | | | | | | |
| | | | | | | |
| | | | | | | |
Group has registered as a result of derivative financial instruments that have not met the hedge
requirements due to inefficiency and due to cancellation of income in the amount of EUR 35,348
thousand in 2022 (negative EUR 9,804 thousand in 2021).
On adopting IFRS 13, the Group adjusted the measurement techniques for calculating the fair value of
its derivatives. The Group includes a bilateral credit risk adjustment to reflect both the own credit risk
and the counterpart party risk in the measurement of the fair value of the derivatives. The Group
applied the discounted cash flow method, considering a discount rate affected by its own credit risk.
To calculate the fair value of the financial derivatives, the Group used generally accepted
measurement techniques in the market, which account for current and future expected exposure,
adjusted by the probability of default and the potential loss given default affecting the contract. The
CVA (Credit Value Adjustment) or counterparty credit risk and DVA (Debt Value Adjustment) or own
credit risk were therefore estimated.
Current and expected exposure in the future is estimated using simulations of scenarios of fluctuations
in market variables, such as interest rate curves, exchange rates and volatilities as per market
conditions at the measurement date.
Furthermore, for the credit risk adjustment, the Group's net exposure has been taken into account with
regards to each of the counterparties, if the financial derivatives arranged with them are within a
financial transaction framework agreement that provides for netting positions. For counterparties for
whom credit information is available, the credit spreads have been obtained from the CDS (Credit
Default Swaps) quoted in the market; whereas for those with no available information, references from
peers have been used. The Group hired an independent expert to measure the fair value of the
derivatives.
The impact of interest rate derivatives on liabilities and profit or loss before tax of a 5% in the
estimated credit risk rate at 31 December 2022 and 2021 would be as follows:
2022
| | | |
| |
| | | Consolidated profit before tax |
| | | |
5% rise in credit risk rate | | | |
5% reduction in credit risk rate | | | |
| | | |
follows:
2022
| | | | | | | | | | |
| | |
| | | | |
| | | | | Interest accrued Discount option | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Short-term revolving credit facilities | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
2021
| | | | | | | | | | |
| | |
| | | | |
| | | | | Interest accrued Discount option | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Short-term revolving credit facilities | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | |
| |
| | |
| | |
| | |
| | |
Short-term revolving credit facilities | | |
| | |
| | |
| | |
| | |
| | |
Loan arrangement expenses | | |
| | |
Senior syndicated mortgage | | |
| | |
| | |
Total current and non-current liabilities | | |
In addition, under the interest rate hedging agreements signed (see Note 14.3), the net balance of the
settlements amounted to EUR 2,819 thousand in 2022 (EUR 5,306 thousand in 2021).
14.5 Debt arrangement expenses
Changes in debt arrangement expenses during 2022 and 2021 are as follows:
| | | | | | | |
| |
| | Allocation to profit and loss account \u2013 Amortised cost | Impact of IFRS 9 on income statement | | | |
| |
| | | | | | |
| | | | | | |
Senior syndicated loan (Tree) | | | | | | |
Mortgage loans - other assets | | | | | | |
| | | | | | |
| | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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14.1 Loans
A breakdown of loans at 31 December 2022 is as follows:
2022
| | | | | |
| |
|
| | Expenses incurred from formalising loans (Note 14.5) | | |
| | | |
| | | | | |
| | | | | |
| | | | | |
Revolving credit facilities | | | | | |
Mortgage loans - other assets | | | | | |
| | | | | |
2021
| | | | | |
| |
|
| | Expenses incurred from formalising loans (Note 14.5) | | |
| | | |
| | | | | |
| | | | | |
| | | | | |
Revolving credit facilities | | | | | |
Senior syndicated mortgage loan (Tree) | | | | | |
Mortgage loans - other assets | | | | | |
| | | | | |
Syndicated loans and revolving credit facility - Parent Company
On 25 April 2019, the Group arranged a senior syndicated loan amounting to EUR 1,550million,
including two tranches, a corporate loan of EUR 850 million and a corporate credit facility of EUR 700
million due in 2024.
The initial maturity date for this revolving credit facility was 2024, with the possibility of two optional
one-year extensions. The second one-year extension was approved on 30 June 2021, and the new
maturity date is 9 May 2026.
The EUR 850 million corporate loan accrued an interest rate of the one-month EURIBOR + 120 basis
points, while the revolving credit facility yielded an interest rate of the one-month EURIBOR + 90 basis
points, and both incorporated a cost adjustment mechanism based on four sustainability criteria.
On 21 June 2022, the Group performed an early cancellation of the corporate loan for EUR 850
million.
In 2022, as a result of the early cancellation of this financing, the application of amortized cost in
relation to IFRS 9 represented a financial cost of EUR 4,213 thousand (EUR 1,790 thousand in 2021).
On 18 November 2022, the Parent arranged a new senior syndicated loan amounting to EUR 600
million with the possibility of being arranged before 24 April 2023 for the repayment of the bond
maturing in 2023. This financing will have a maturity of 5 years from its disposal and will accrue a
market rate of EURIBOR plus 130 basis points. For the period in which the financing is not drawn
down, a commission will be applied for the unarranged balance of 26 basis points. At year-end 2022,
the loan was not drawn down.
These funds incorporate commitments to maintain certain coverage ratios existing in the previous
financing, in Group bonds and in the financing from Banco Sabadell. These ratios are defined as the
ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio between
the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt, both without
mortgage guarantee (\"Unissued Ratio\"). In addition, they contemplate certain conditions linked to
compliance with environmental and sustainability factors that may result in certain savings in their
financial burden. The Parent Company's directors have confirmed that these ratios were met at 31
December 2022 and do not expect that they will not be fulfilled in the coming years.
Unsecured loans of the Parent
Banco Sabadell loan
On 18 November 2022, the Parent arranged a loan without mortgage guarantee with Banco Sabadell
amounting to EUR 60 million, maturing in January 2028 and accruing a market rate of EURIBOR 120
basis points.
This financing includes commitments to maintain certain coverage ratios described in the previous
section. The Parent Company's directors have confirmed that these ratios were met at 31 December
2022 and do not expect that they will not be fulfilled in the coming years.
Loans from the European Investment Bank
On 20 December 2018, the Parent formalised a loan without mortgage security with the European
Investment Bank in an amount of EUR 51 million. On 4 November 2019, the Parent formalised the
second tranche of the mortgage-free loan with the European Investment Bank amounting to EUR 64
million, amounting to EUR 115 million. This financing can be arranged through several loans with a
maturity of 10 years on each drawdown. This credit facility must be allocated to the development of
logistical assets in the Castille\u2013La Mancha region.
On 10 March 2020 and 26 October 2020, the Group drew down EUR 23.4 million and EUR 5.6 million
corresponding to the first tranche of the financing. This loan accruals a fixed interest rate of 60 basis
points. On 20 December 2022, the Group had drawn down EUR 22 million and 370 basis points.
These three loans complete the provision for the first tranche of EUR 51 million.
On 16 December 2021, the Parent formalised a loan without mortgage security with the European
Investment Bank in an amount of EUR 45.2 million and with 10-year maturity. This financing will be
used to make investments in energy efficiency. At year-end, this loan was not drawn down.
This financing includes commitments to maintain certain coverage ratios. These ratios are defined as
the ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio
between the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt,
both without mortgage guarantee (\"Unissued Ratio\"). The Parent Company's directors have confirmed
that these ratios were met at 31 December 2022 and do not expect that they will not be fulfilled in the
coming years.
\"Senior\" syndicated mortgage loan (Tree):
The senior syndicated mortgage loan of the subsidiary, Tree Investments Inmobiliarias SOCIMI, S.A.,
was signed on 29 July 2010 and novated for the first time on 30 December 2014.
The refinancing for 2014 and the first application of IFRS 9 'Financial Instruments' resulted in an
increase in reserves and a decrease in debt amounting to EUR 30,592 thousand at 1 January 2018,
and an increase in financial expenditure amounting to EUR 10,083 thousand in 2018.
On 29 November 2018, the senior syndicated loan was novated so that the initially scheduled maturity
in 2024 was postponed until 31 March 2031 with the possibility of extending the maturity annually for
the next 3 years until 31 March 2034. The third of these extensions was approved in 2022. This
financing accrues interest at a rate of 3-month EURIBOR + 120 basis point.
On 15 June 2022, as a result of the sale of the shares of TREE Inversiones Inmobiliarias S.A. to
BBVA, the Group repaid in advance the mortgage financing associated with the bank branches.
Mortgage loans - other assets
At 31 December 2022, the Group's subsidiaries had taken out the following mortgage loans:
2022
2021
On 26 March 2015, the Group subrogated a mortgage-backed loan taken out with Caixabank, S.A.
with a mortgage guarantee on the Alcal\u00e1 38-40 office building. This loan has a principal of EUR 21
million, a term of 15 years, an interest rate of 3-month EURIBOR + 150 basis points, a 4-year grace
period for the principal, and the principal is repayable in full using the French method over the
following 11 years.
On 26 April 2019, the Group entered into a novation agreement modifying the mortgage loan
subscribed on 4 December 2015 with ING Bank N.V. by the subsidiary Merlin Log\u00edstica S.L.U. The due
date for this financial arrangement, originally set to be in 2020, was extended until 2026. This financial
arrangement accrues an interest rate of EURIBOR at three months + 100 basis points; it includes a
financial cost adjustment mechanism based on meeting four sustainability criteria. On 26 March 2021,
the mortgage financing agreement was changed, extending the loan amount by EUR 2.1 million to a
total of EUR 70 million.
This loan requires that the company maintain and comply with certain coverage ratios, such as the
loan-to-value ratio and the ratio of the company's income used to service the debt (interest coverage
ratio, ICR). Additionally, it contemplates certain conditions linked to compliance with the following
factors associated with the environment and sustainability: i) sustainable capex, ii) LEED and BREAM
certifications, iii) AIS certifications and iv) green energy consumption, which may result in certain
savings in the financial burden. The Parent Company's directors have confirmed that these ratios were
met at 31 December 2022 and do not expect that they will not be fulfilled in the coming years.
In accordance with IFRS 9, the Group evaluated the nature of the refinancing undertaken of the
previous ING loan and concluded that it did not represented a material change (10% test). Therefore,
the difference between the value of the old debt at amortised cost and the new debt discounted at the
effective interest rate of the old debt was recognised as a lower financial expenses of EUR 2,291
thousand under \"Financial expenses\" on the 2019 consolidated income statement. This amount will
revert to the consolidated income statement for subsequent years in accordance with the effective
interest rate of the debt.
In 2022, the application of the amortised cost in relation to these concepts involved a financial cost of
EUR 362 thousand (EUR 363 thousand in 2021).
Maturity of debt
The breakdown by maturity of these loan principals is as follows:
2022
| | | | |
| |
| | | | |
| | | | |
| Syndicated and other loans | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
2021
| | | | | |
| |
| | | | | |
| | | | | |
| Syndicated and other loans | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
The Group had undrawn loans and credit facilities at 31 December 2022 with a number of financial
institutions totalling EUR 1,409 million (EUR 831.2 million at 31 December 2021).
None of the Group's debt was denominated in non-euro currencies at 31 December 2022 or 2021.
There are no significant differences between the fair values and carrying amounts of the Group's
financial liabilities.
The finance cost for interest on the loans totalled EUR 8,595 thousand in 2022 (EUR 13,257 thousand
in 2021) and is recognised in the accompanying consolidated income statement for 2022.
At 31 December 2022 and 2021, the debt arrangement expenses had been deducted from the
balance of \"Bank borrowings\". During the 2022 financial year, the Group has allocated an expense of
EUR 8,827 thousand (in 2021 EUR 4,433 thousand were allocated) under the heading \"Financial
expenses\" of the attached consolidated income statement (see Note 18.d) associated with additional
loans additional to those associated with the discontinued activity. This allocation in the accompanying
consolidated income statement includes both the first application of IFRS 9 and the allocation of the
debt to the income statement at amortised cost.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTAvZnJhZzo4Y2JlYzMwZDk2N2M0NjQxOGZkZDU3ZmRiNWNiMGVjMy90ZXh0cmVnaW9uOjhjYmVjMzBkOTY3YzQ2NDE4ZmRkNTdmZGI1Y2IwZWMzXzQ5NDc4MDIzODI5OTI_cd93525d-341c-43cd-810a-226064b4e993": {
"value": "
14.2 Debenture issues
On 12 May 2017, the Parent subscribed a Euro Medium Term Notes (EMTN) issue programme of up
to EUR 4,000 million, which will replace the original bond issue programme and its supplements
subscribed on 6 April 2016 and 14 October 2016, respectively, for an overall maximum amount of EUR
2,700 million.
On 18 May 2018, the Parent extended that bond-issue scheme (Euro Medium Term Notes - EMTN) up
to an amount of EUR 5,000 million.
On 17 June 2020, the General Meeting approved the extension of this bond issuance program up to
an amount of EUR 6,000 million, the increase being performed on 21 March 2021. On 4 August 2022,
the program was renewed for another year.
On 30 June 2021, the Parent issued a 9-year bond of EUR 500 million at 99.196% of the par value
and a coupon of 1.375%. These funds were used to prepay the bond maturing in May 2022 on 23
February 2022.
On 1 June 2022, the Group obtained the conversion of all its bonds into green bonds in accordance
with the Green Financing Framework published on 25 April 2022. The reclassification of bonds to
green bonds does not entail any changes in any other characteristics of the bonds, irrespective of their
terms, interest or maturities.
The terms of the bonds issued by the Group abide by UK laws and are traded on the Luxembourg
Stock Exchange. The bond issue scheme has the same guarantees and new ratio compliance
obligations as the syndicated loan and the revolving credit facility. At year-end 2022, the Group
complied with the covenants set forth in this contract and the directors consider that they will be met in
2023.
The breakdown at 31 December 2022 of the bonds issued by Parent Company is as follows:
2022
2021
(1)Due to the business combination with Metrovacesa performed in 2016, the Group recognised a bond issue launched
by Metrovacesa for EUR 700 million. The terms of the bonds were governed and interpreted according to UK laws
and were traded on the Irish Stock Exchange. This issue also included a series of compliance obligations and
guarantees, which is common in these types of transactions. The bond was paid in advance on 23 February 2022.
These bond issues include commitments to maintain certain coverage ratios. These ratios are defined
as the ratio between the value of the assets over the outstanding debt (\"Loan to Value\"), the ratio
between the Group's revenue and the debt service (\"ICR\") and the ratio between assets and debt,
both without mortgage guarantee (\"Unissued Ratio\"). The Parent Company's directors have confirmed
that these ratios were met at 31 December 2022 and do not expect that they will not be fulfilled in the
coming years.
The finance cost for interest on the debenture issues amounted to EUR 81,040 thousand (EUR 89,330
thousand in 2021) and is recognised in the accompanying consolidated income statement for 2022.
The accrued interest payable at 31 December 2022 amounted to EUR 32,366 thousand (EUR 40,322
thousand in 2021). Debt arrangement expenses taken to the consolidated income statement in 2022
amounted to EUR 4,901 thousand (EUR 5,370 thousand in 2021).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTAvZnJhZzo4Y2JlYzMwZDk2N2M0NjQxOGZkZDU3ZmRiNWNiMGVjMy90ZXh0cmVnaW9uOjhjYmVjMzBkOTY3YzQ2NDE4ZmRkNTdmZGI1Y2IwZWMzXzQ5NDc4MDIzODI5OTQ_9e60c967-0eae-4982-96ca-5794e6fe1f5c": {
"value": "
14.4 Reconciliation of the carrying amount of the liabilities arising from financing activities
The breakdown of the financing activities and their impact on the Group's cash flows in 2022 was as
follows:
2022
| | | | | | | | | | |
| | |
| | | | |
| | | | | Interest accrued Discount option | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Short-term revolving credit facilities | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
2021
| | | | | | | | | | |
| | |
| | | | |
| | | | | Interest accrued Discount option | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Short-term revolving credit facilities | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | |
| |
| | |
| | |
| | |
| | |
Short-term revolving credit facilities | | |
| | |
| | |
| | |
| | |
| | |
Loan arrangement expenses | | |
| | |
Senior syndicated mortgage | | |
| | |
| | |
Total current and non-current liabilities | | |
In addition, under the interest rate hedging agreements signed (see Note 14.3), the net balance of the
settlements amounted to EUR 2,819 thousand in 2022 (EUR 5,306 thousand in 2021).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTMvZnJhZzpiNjIzYWUwNzNkOWE0YjJlYjE0NGVkYmVmYzI3MmEzNy90ZXh0cmVnaW9uOmI2MjNhZTA3M2Q5YTRiMmViMTQ0ZWRiZWZjMjcyYTM3XzQ5NDc4MDIzMzE4NTM_71d4312c-5e9b-47cc-93fe-0f9c8f879c7f": {
"value": "
15.\u00a0 \u00a0 Other current and non-current liabilities
Details of this heading at 31 December 2022 are as follows:
| | | | |
| |
| | |
| | | | |
| | | | |
| | | | |
Guarantees and deposits received | | | | |
| | | | |
| | | | |
| | | | |
Borrowings from Group companies and associates | | | | |
Other current liabilities | | | | |
| | | | |
\"Other provisions\" includes provisions for the risk assessment associated with a series of litigation and
third-party claims arising from the exercise of the Group's activity, which have been recognised in
accordance with the best existing estimates, and the provision corresponding to the variable
remuneration that will be paid in the long term for EUR 4,619 thousand (EUR 3,338 thousand in 2021).
\"Other provisions\" also includes liabilities for tax debts for which there are uncertainties as to their
amount or timing, whereby it is likely that the Group may have to dispose of resources to cancel these
obligations as the result of a present obligation.
\"Guarantees and deposits received\" primarily comprise the amounts deposited by lessees to secure
leases, which will be reimbursed at the end of the lease term.
The Parent Company and the majority of its subsidiaries adhere to the SOCIMI regime. Under this
regime, gains from the sale of assets are taxed at 0%, provided that certain requirements are met
(basically, the assets must have been held by the REIT for at least three years). Any gains from the
sale of assets acquired prior to joining the REIT tax regime will be distributed on a straight-line basis
(unless proven to be distributed otherwise) over the period during which the REIT owned them. Any
gains generated prior to joining the REIT tax regime will be taxed at the general rate, while a rate of
0% will be applied for the other years. In this regard, the Parent's directors estimated the tax rate
applicable to the tax gain on the assets acquired prior to their inclusion to the REIT regime (calculated
in accordance with the fair value of the assets obtained from expert appraisals at the date of the
business combination and as of 31 December 2022), recognising the related deferred tax liability.
The Parent's directors do not envisage disposing of any of the investment property acquired after the
Parent and its subsidiaries adhered to the REIT regime within three years, and have therefore not
recognised the deferred tax liability corresponding to the changes in fair value since the assets were
acquired as the applicable tax rate is 0%.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTMvZnJhZzpiNjIzYWUwNzNkOWE0YjJlYjE0NGVkYmVmYzI3MmEzNy90ZXh0cmVnaW9uOmI2MjNhZTA3M2Q5YTRiMmViMTQ0ZWRiZWZjMjcyYTM3XzQ5NDc4MDIzMzE4NTY_7d44d893-bd2f-4489-affc-11e2b633bbb0": {
"value": "
Details of this heading at 31 December 2022 are as follows:
| | | | |
| |
| | |
| | | | |
| | | | |
| | | | |
Guarantees and deposits received | | | | |
| | | | |
| | | | |
| | | | |
Borrowings from Group companies and associates | | | | |
Other current liabilities | | | | |
| | | | |
\"Other provisions\" includes provisions for the risk assessment associated with a series of litigation and
third-party claims arising from the exercise of the Group's activity, which have been recognised in
accordance with the best existing estimates, and the provision corresponding to the variable
remuneration that will be paid in the long term for EUR 4,619 thousand (EUR 3,338 thousand in 2021).
\"Other provisions\" also includes liabilities for tax debts for which there are uncertainties as to their
amount or timing, whereby it is likely that the Group may have to dispose of resources to cancel these
obligations as the result of a present obligation.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTMvZnJhZzpiNjIzYWUwNzNkOWE0YjJlYjE0NGVkYmVmYzI3MmEzNy90ZXh0cmVnaW9uOmI2MjNhZTA3M2Q5YTRiMmViMTQ0ZWRiZWZjMjcyYTM3XzQ5NDc4MDIzMzE4NTQ_dff7e92c-c0ff-4fdc-87f6-a8bde38aa408": {
"value": "
Details of this heading at 31 December 2022 are as follows:
| | | | |
| |
| | |
| | | | |
| | | | |
| | | | |
Guarantees and deposits received | | | | |
| | | | |
| | | | |
| | | | |
Borrowings from Group companies and associates | | | | |
Other current liabilities | | | | |
| | | | |
\"Guarantees and deposits received\" primarily comprise the amounts deposited by lessees to secure
leases, which will be reimbursed at the end of the lease term.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepositsFromCustomersExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTMvZnJhZzpiNjIzYWUwNzNkOWE0YjJlYjE0NGVkYmVmYzI3MmEzNy90ZXh0cmVnaW9uOmI2MjNhZTA3M2Q5YTRiMmViMTQ0ZWRiZWZjMjcyYTM3XzQ5NDc4MDIzMzE4NTc_d91df80f-8bcc-4a84-9bec-da08dcca30c8": {
"value": "
The Parent Company and the majority of its subsidiaries adhere to the SOCIMI regime. Under this
regime, gains from the sale of assets are taxed at 0%, provided that certain requirements are met
(basically, the assets must have been held by the REIT for at least three years). Any gains from the
sale of assets acquired prior to joining the REIT tax regime will be distributed on a straight-line basis
(unless proven to be distributed otherwise) over the period during which the REIT owned them. Any
gains generated prior to joining the REIT tax regime will be taxed at the general rate, while a rate of
0% will be applied for the other years. In this regard, the Parent's directors estimated the tax rate
applicable to the tax gain on the assets acquired prior to their inclusion to the REIT regime (calculated
in accordance with the fair value of the assets obtained from expert appraisals at the date of the
business combination and as of 31 December 2022), recognising the related deferred tax liability.
The Parent's directors do not envisage disposing of any of the investment property acquired after the
Parent and its subsidiaries adhered to the REIT regime within three years, and have therefore not
recognised the deferred tax liability corresponding to the changes in fair value since the assets were
acquired as the applicable tax rate is 0%.
d) Deferred tax assets recognised
A breakdown of the tax loss carryforwards at 31 December 2022 is as follows:
2022
| | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total tax loss carryforwards | | |
Other deferred taxes recognised | | |
Total capitalised deferred tax assets | | |
The \"Other deferred taxes recognised\" heading mainly includes the timing differences caused by the
limitation of the depreciation of the assets generated by the acquisition of the Testa and Metrovacesa
subgroup and the tax deductions pending application mainly due to reinvestment, and credits for
losses from companies absorbed in previous years.
The above deferred tax assets were recognised in the consolidated statement of financial position
since the Group's directors consider that, based on the best estimates of the Group's future results,
including certain tax planning measures, it is likely that these assets will be recovered.
A breakdown of the tax assets not recognised at 31 December 2022 is as follows:
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Total tax loss carryforwards | |
The sales losses relate mainly to the sale of the leased premises to BBVA through the sale of all the
shares held by the Parent from the subsidiary Tree Inversiones Inmobiliarias, SOCIMI, S.A. (see Note
3).
As in Note 17.b, the increase in value of investment property acquired by subsidiaries subject to the
REIT tax regime generate temporary differences at a tax rate of 0%, whereby no deferred tax liability
has been recognised.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTYvZnJhZzo4ZWQxYTE2OTlkMjk0OGVhYmE5Y2E1ZDQ2MThmMTFiNi90ZXh0cmVnaW9uOjhlZDFhMTY5OWQyOTQ4ZWFiYTljYTVkNDYxOGYxMWI2XzQ5NDc4MDIzMzk5MTc_662411c4-88dd-4dbe-a455-8564737a5b50": {
"value": "
16.\u00a0 \u00a0 Trade and other payables
Details of this heading at 31 December 2022 are as follows:
| | |
| |
| | |
| | |
| | |
| | |
Payables to suppliers - Group companies and associates | | |
| | |
| | |
Other payables to public authorities (Note 17) | | |
| | |
| | |
The carrying amount of the trade payables is similar to their fair value.
Information on the average period of payment to suppliers. Final Provision Two of Law 31/2014,
of 3 December
The information required by additional provision three of Spanish Law 15/2010, of 5 July (amended by
final provision two of Spanish Law 31/2014, of 3 December), prepared in accordance with the Spanish
Accounting and Audit Institute (ICAC) Resolution of 29 January 2016 on the disclosures to be included
in the notes to financial statements in relation to the average period of payment to suppliers in
commercial transactions, is detailed below.
| | |
| |
| | |
| | |
Average period of payment to suppliers | | |
Ratio of transactions settled | | |
Ratio of transactions not yet settled | | |
| | |
| | |
| |
| | |
| | |
| | |
Total payments outstanding | | |
| | |
In accordance with the ICAC Resolution, the average period of payment to suppliers was calculated by
taking into account the commercial transactions relating to the supply of goods or services for which
payment has accrued since the date of entry into force of Law 31/2014, of 3 December.
For the exclusive purpose of providing the information envisaged in this Resolution, payable to
suppliers are considered trade payables for debts with suppliers of goods and services, included under
\"Trade receivables and other payables\" under current liabilities in the attached balance sheet.
\"Average period of payment to suppliers\" is taken to be the period that elapses from the delivery of the
goods or the provision of the services by the supplier to the effective payment of the transaction.
The maximum legal period applicable to the Group in accordance with Law 11/2013, of 26 July was 30
days following the publication of the above law to date (unless the terms established therein are met
that would enable the above maximum period to be extended up to 60 days).
The monetary volume and number of invoices paid within the established legal period (60 days) are
detailed below.
| |
| |
| |
Monetary volume (thousands of euros) | |
Percentage of total payments made | |
| |
| |
Percentage of total invoices | |
| |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTkvZnJhZzo0YjUwMGIxOTllYWM0OGYxYThhZjhmYTFiN2YxYzBkZS90ZXh0cmVnaW9uOjRiNTAwYjE5OWVhYzQ4ZjFhOGFmOGZhMWI3ZjFjMGRlXzQ5NDc4MDIzNDU3NTU_6044bd06-21ba-408c-b3d1-9218dcbc339f": {
"value": "
17.\u00a0 \u00a0 Tax situation
a) Tax receivables and tax payables
The breakdown of the main tax receivables and payables at 31 December 2022 is as follows:
2022
| | | | |
| |
| | |
| | | | |
| | | | |
| | | | |
Public Treasury for withholdings and other items | | | | |
| | | | |
| | | | |
| | | | |
Payable to the Social Security | | | | |
| | | | |
| | | | |
2021
| | | | |
| |
| | |
| | | | |
| | | | |
| | | | |
Public Treasury for withholdings and other items | | | | |
| | | | |
| | | | |
| | | | |
Payable to the Social Security | | | | |
| | | | |
| | | | |
b) Reconciliation of the accounting profit/loss to the taxable profit/tax loss
At 31 December 2022, the taxable profit was calculated as the accounting profit for the year plus the
effect of changes in the fair value of investment property, and temporary differences due to the existing
limitations. At the reporting date of these financial statements, the Group did not recognise any
deferred tax assets in this regard, as it is generally subject to a tax rate of 0% as the Parent and the
majority of the subsidiaries adhere to the REIT regime.
The reconciliation of the accounting profit to consolidated income tax expense for the year at 31
December 2022 is as follows:
| | |
| |
| | |
| | |
| | |
| | |
-Consolidation adjustments to profit or loss | | |
-Tax adjustments Operating profit | | |
-Non-deductible finance costs | | |
-Profit and loss accounted for using the equity method | | |
-Other permanent differences | | |
| | |
| | |
-Changes in the value of investment property | | |
-Adjustments to depreciation and amortisation | | |
| | |
| | |
The Parent Company and a significant number of its subsidiaries adhere to the REIT regime. As
indicated in Note 5.13, the taxation of this scheme is constructed at a rate of 0%, provided that certain
requirements are met.
In relation to the permanent differences/consolidation adjustments to profit or loss, the results of the
companies integrated by the equity method are mainly included, as well as the tax capital gains
obtained from the disposal of Tree Inversiones Inmobiliarias, SOCIMI, S.A. (see Note 3) and the
incorporation of the amortisation expenses of the real estate investments not included under Income
before taxes on the accompanying consolidated income statement.
Temporary differences arose from the change in value of investment property (IAS 40 - Fair value
model). As the Parent's directors plan and state that investment property acquired by subsidiaries
already subject to the REIT tax regime will not be sold within three years, the fair value adjustment in
2022 and 2021 is taxed at 0% and therefore the deferred tax liability is also zero.
c) Reconciliation of accounting profit and tax expense
| | |
| |
| |
| | |
| | |
Expense for increase in value of investment property (a) | | |
Expense for disposal of properties within the REIT regime (b) | | |
Expense for disposal of properties outside the REIT regime | | |
Expense for gain/(loss) at standard rate | | |
| | |
Total corporate income tax expense | | |
| | |
Deferred tax and other adjustments to taxation | | |
Total corporate income tax expense | | |
(1)This corresponds to the increase in the value of the assets of the non-REIT subsidiaries
(resident in Portugal, which meet the requirements of article 2.1 [c] of the REITs Act to be
considered as eligible assets for the purposes of the above tax regime). The amount is the
result of applying the tax rate that the directors consider will be applicable to the capital gains.
(2)Adjustment corresponding to the profit arising in the Parent's individual financial statements for
the sale of an asset from the integration of Metrovacesa, the portion of which is taxed at the
general tax regime despite being sold within a period exceeding 3 years of its acquisition.
d) Deferred tax assets recognised
A breakdown of the tax loss carryforwards at 31 December 2022 is as follows:
2022
| | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total tax loss carryforwards | | |
Other deferred taxes recognised | | |
Total capitalised deferred tax assets | | |
The \"Other deferred taxes recognised\" heading mainly includes the timing differences caused by the
limitation of the depreciation of the assets generated by the acquisition of the Testa and Metrovacesa
subgroup and the tax deductions pending application mainly due to reinvestment, and credits for
losses from companies absorbed in previous years.
The above deferred tax assets were recognised in the consolidated statement of financial position
since the Group's directors consider that, based on the best estimates of the Group's future results,
including certain tax planning measures, it is likely that these assets will be recovered.
A breakdown of the tax assets not recognised at 31 December 2022 is as follows:
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Total tax loss carryforwards | |
The sales losses relate mainly to the sale of the leased premises to BBVA through the sale of all the
shares held by the Parent from the subsidiary Tree Inversiones Inmobiliarias, SOCIMI, S.A. (see Note
3).
As in Note 17.b, the increase in value of investment property acquired by subsidiaries subject to the
REIT tax regime generate temporary differences at a tax rate of 0%, whereby no deferred tax liability
has been recognised.
f) Years open to audit and tax inspections
Under current law, taxes cannot be deemed to have been definitively settled until the tax returns filed
have been reviewed by the tax authorities or until the four-year limiation period has expired. At year-
end 2022, the Parent and its subsidiaries were open for income tax audit for the periods 2018 to 2021,
VAT and income tax withholdings for 2019 to 2022, and Business Tax (IAE) and Property Tax (IBI) for
2020 to 2023. In accordance with Additional Provision Nine of Royal Decree Law 11/2020 of 31 March
and Additional Provision One of Royal Decree Law 15/2020 of 21 April, the period between 14 March
and 30 May 2020 will not count for the purposes of the limitation periods in Law 58/2003 of 17
December, on General Taxation, so that the usual deadlines are extended by 78 additional days.
The Parent's directors consider that the tax returns for the above taxes have been filed correctly and,
therefore, even in the event of discrepancies in the interpretation of current tax legislation in relation to
the tax treatment afforded to certain transactions, such liabilities as might arise would not have a
material effect on the accompanying financial statements. Also, Law 34/2015, of 21 September,
partially amending Law 58/2003, of 17 December, on General Taxation establishes the right of the tax
authorities to initiate a review and investigation procedure of the tax losses offset or carried forward or
tax credits taken or carried forward, which will become statute barred after ten years from the day on
which the regulatory period established for filing the tax return or self-assessment relating to the year
or the tax period in which the right to offset the tax loss or to apply the tax credits arose.
On 10 February 2022, the Tax Agency notified the Parent of the initiation of an audit and investigation
actions regarding income tax in 2016 to 2019 and value added tax and withholdings for the period of
2018 to 2019. At the date of authorization for issue of these consolidated financial statements, the
Parent was in the process of collecting the information required by the tax agency without any
proceedings having taken place on the date that they questioned the reports submitted in the years
being audited.
g) Disclosure requirements arising from REIT status, Law 11/2009, amended by Law 16/2012
and 11/2021
The disclosure requirements arising from the Parent and certain subsidiaries being considered REITs
are included in the related notes of the separate financial statements.
",
"dimensions": {
"concept": "mer:DisclosureOfPublicAdministrationsAndTaxStatusTextBlock",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY182OTkvZnJhZzo0YjUwMGIxOTllYWM0OGYxYThhZjhmYTFiN2YxYzBkZS90ZXh0cmVnaW9uOjRiNTAwYjE5OWVhYzQ4ZjFhOGFmOGZhMWI3ZjFjMGRlXzQ5NDc4MDIzNDU3NTY_64cb4a44-aac8-4160-b159-2072dac7de24": {
"value": "
a) Tax receivables and tax payables
The breakdown of the main tax receivables and payables at 31 December 2022 is as follows:
2022
| | | | |
| |
| | |
| | | | |
| | | | |
| | | | |
Public Treasury for withholdings and other items | | | | |
| | | | |
| | | | |
| | | | |
Payable to the Social Security | | | | |
| | | | |
| | | | |
2021
| | | | |
| |
| | |
| | | | |
| | | | |
| | | | |
Public Treasury for withholdings and other items | | | | |
| | | | |
| | | | |
| | | | |
Payable to the Social Security | | | | |
| | | | |
| | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MTM_f9653e34-8289-4f21-ad73-393dee7d4d8d": {
"value": "
18.\u00a0 \u00a0 Revenue and expenses
a) Net income
At 31 December 2022, the Group's revenue breakdown is as follows:
| | |
| |
| | |
| | |
| | |
Income from services rendered | | |
| | |
(*) Reexpresed information
c) Staff costs and average headcount
A breakdown of \"Staff costs\" at 31 December 2022 is as follows:
| | |
| |
| | |
| | |
Wages, salaries and similar expenses | | |
| | |
| | |
Other employee benefit costs | | |
| | |
| | |
The average number of employees at the various Group companies in 2022 and 2021 was 250 and
222 respectively.
A breakdown of the headcount at 2022 and 2021 year-end, by category, is as follows:
2022
2021\u00a0 \u00a0
The average number of employees at the Group in 2022 and 2021 with a disability equal to or
greater than 33%, by category, was as follows:
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
| | |
| |
| | |
| | |
| | |
| | |
Interest on deposits and current accounts | | |
| | |
| | |
Interest on loans and other credits | | |
| | |
| | |
| | |
(*) Reexpresed information
In 2022 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 8,595 thousand and EUR 81,040 thousand, respectively
(EUR 13,257 and EUR 89,330 thousand in 2021 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 13,729 thousand (EUR 9,540 thousand in
2021), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
costs associated with interest rate derivatives amounting to EUR 18 thousand (EUR 625 thousand in
2021).
e) Contribution to consolidated profit
The contribution of each company included in the scope of consolidation to profit for 2022 was as
follows:
| | |
| |
| | |
| | |
| | |
Merlin Properties SOCIMI, S.A. (*) | | |
Tree Inversiones Inmobiliarias, SOCIMI, S.A. | | |
| | |
| | |
Merlin Log\u00edstica, S.L. | | |
Varitelia Distribuciones, S.L.U. | | |
| | |
La Vital Centro Comercial y de Ocio, S.L. | | |
Global Carihuela Patrimonio Comercial, S.L.U. | | |
Parques Log\u00edsticos de la Zona Franca, S.A. | | |
Sevisur Log\u00edstica, S.A. | | |
The Exhibitions Company, S.A. | | |
Innovaci\u00f3n Colaborativa, S.L.U. | | |
Promosete Invest. Inmobiliaria, S.A. | | |
Pra\u00e7a do Marqu\u00e9s - Servicios auxiliares, S.A. | | |
MPCVI - Compra e Venda Imobili\u00e1ria, S.A. | | |
MPEP - Properties Escrit\u00f3rios Portugal, S.A. | | |
| | |
| | |
Forum Almada \u2013 Gestao Centro Comercial, Lda | | |
Torre dos Oceanus Investimentos Inmobiliarios,S.A. | | |
Torre Arts Investimentos Inmobiliarios,S.A. | | |
Torre Fern\u00e3o Magalh\u00e3es Investimentos Inmobiliarios,S.A. | | |
| | |
| | |
| | |
| | |
Paseo Comercial Carlos III, S.A. | | |
Centro Intermodal de Log\u00edstica, S.L. | | |
| | |
Sicilius Real Estate S.L. | | |
Madrid Crea Nuevo Norte, S.A. | | |
| | |
| | |
(*) Includes EUR 215,452 thousand associated with discontinued activity sold
",
"dimensions": {
"concept": "mer:DisclosureOfIncomeAndExpenseTextBlock",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MTU_78f50a5b-8561-4c1b-a528-6851a3690059": {
"value": "
18.\u00a0 \u00a0 Revenue and expenses
a) Net income
At 31 December 2022, the Group's revenue breakdown is as follows:
| | |
| |
| | |
| | |
| | |
Income from services rendered | | |
| | |
(*) Reexpresed information
c) Staff costs and average headcount
A breakdown of \"Staff costs\" at 31 December 2022 is as follows:
| | |
| |
| | |
| | |
Wages, salaries and similar expenses | | |
| | |
| | |
Other employee benefit costs | | |
| | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MTQ_36cf999b-9bd4-45db-a8b6-e852df27f154": {
"value": "
a) Net income
At 31 December 2022, the Group's revenue breakdown is as follows:
| | |
| |
| | |
| | |
| | |
Income from services rendered | | |
| | |
| | |
| |
| | |
| | |
| | |
Income from services rendered | | |
| | |
(*) Reexpresed information
c) Staff costs and average headcount
A breakdown of \"Staff costs\" at 31 December 2022 is as follows:
| | |
| |
| | |
| | |
Wages, salaries and similar expenses | | |
| | |
| | |
Other employee benefit costs | | |
| | |
| | |
The average number of employees at the various Group companies in 2022 and 2021 was 250 and
222 respectively.
A breakdown of the headcount at 2022 and 2021 year-end, by category, is as follows:
2022
2021\u00a0 \u00a0
The average number of employees at the Group in 2022 and 2021 with a disability equal to or
greater than 33%, by category, was as follows:
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MTY_76ff449c-3c85-4764-aa36-cfaba50173f5": {
"value": "
b) Other operating expenses
At 31 December 2022, a breakdown of \"Other operating expenses\" in the consolidated income
statement is as follows:
| | |
| |
| | |
| | |
Non-recoverable expenses of leased properties | | |
| | |
| | |
| | |
| | |
| | |
Costs associated with asset acquisitions and financing | | |
Losses on, impairment of and change in provisions | | |
Other current operating expenses | | |
Other exceptional expenses | | |
| | |
(*) Reexpresed information
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MTg_e9052705-b179-4461-8755-2aab211832b7": {
"value": "
A breakdown of \"Staff costs\" at 31 December 2022 is as follows:
| | |
| |
| | |
| | |
Wages, salaries and similar expenses | | |
| | |
| | |
Other employee benefit costs | | |
| | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MTk_2bae9e62-9a36-4bb0-bd69-e6f93157f125": {
"value": "
The average number of employees at the various Group companies in 2022 and 2021 was 250 and
222 respectively.
A breakdown of the headcount at 2022 and 2021 year-end, by category, is as follows:
2022
2021\u00a0 \u00a0
The average number of employees at the Group in 2022 and 2021 with a disability equal to or
greater than 33%, by category, was as follows:
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MjA_2bf8ecce-e683-4bbb-879b-065b93508bd6": {
"value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
| | |
| |
| | |
| | |
| | |
| | |
Interest on deposits and current accounts | | |
| | |
| | |
Interest on loans and other credits | | |
| | |
| | |
| | |
(*) Reexpresed information
In 2022 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 8,595 thousand and EUR 81,040 thousand, respectively
(EUR 13,257 and EUR 89,330 thousand in 2021 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 13,729 thousand (EUR 9,540 thousand in
2021), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
costs associated with interest rate derivatives amounting to EUR 18 thousand (EUR 625 thousand in
2021).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MjA_62caef0c-319f-4796-9412-55f4137b777e": {
"value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
| | |
| |
| | |
| | |
| | |
| | |
Interest on deposits and current accounts | | |
| | |
| | |
Interest on loans and other credits | | |
| | |
| | |
| | |
(*) Reexpresed information
In 2022 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 8,595 thousand and EUR 81,040 thousand, respectively
(EUR 13,257 and EUR 89,330 thousand in 2021 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 13,729 thousand (EUR 9,540 thousand in
2021), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
costs associated with interest rate derivatives amounting to EUR 18 thousand (EUR 625 thousand in
2021).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MjA_c9d1fb66-58c5-4ac5-8d02-241637cbf38e": {
"value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
| | |
| |
| | |
| | |
| | |
| | |
Interest on deposits and current accounts | | |
| | |
| | |
Interest on loans and other credits | | |
| | |
| | |
| | |
(*) Reexpresed information
In 2022 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 8,595 thousand and EUR 81,040 thousand, respectively
(EUR 13,257 and EUR 89,330 thousand in 2021 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 13,729 thousand (EUR 9,540 thousand in
2021), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
costs associated with interest rate derivatives amounting to EUR 18 thousand (EUR 625 thousand in
2021).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDIvZnJhZzo5NzM1YTYzMjhkOWY0NjNlYTA4NjA1Njc1MDhmNWQyYi90ZXh0cmVnaW9uOjk3MzVhNjMyOGQ5ZjQ2M2VhMDg2MDU2NzUwOGY1ZDJiXzQ5NDc4MDIzMzA5MjA_cd06e964-8958-4b2e-841d-a9fcfa33e92c": {
"value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
| | |
| |
| | |
| | |
| | |
| | |
Interest on deposits and current accounts | | |
| | |
| | |
Interest on loans and other credits | | |
| | |
| | |
| | |
(*) Reexpresed information
In 2022 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 8,595 thousand and EUR 81,040 thousand, respectively
(EUR 13,257 and EUR 89,330 thousand in 2021 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 13,729 thousand (EUR 9,540 thousand in
2021), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
costs associated with interest rate derivatives amounting to EUR 18 thousand (EUR 625 thousand in
2021).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MDUvZnJhZzo5MjBmMGZhMDNlYTE0OWExYWJlNDcyNGE4ZDM1N2MxMC90ZXh0cmVnaW9uOjkyMGYwZmEwM2VhMTQ5YTFhYmU0NzI0YThkMzU3YzEwXzQ5NDc4MDIzNDI2NDY_76d27c6b-69c4-4eb6-9d8b-8b18d2ba15cb": {
"value": "
19.\u00a0 \u00a0 Related party transactions
Related transactions performed by the Parent or its Subsidiaries with directors, with a holding of 10%
or more of the voting rights or represented on the Parent's Board, or with any other persons that must
be considered related parties in accordance with International Accounting Standards, adopted in
accordance with Regulation (EC) 1606/2002 of the European Parliament and of the Council of 19 July
2002 on the application of international accounting standards, are considered related transactions.
At 31 December 2022, a breakdown of any significant transactions, given their amount or importance,
performed between the Parent or its Group companies, and related parties, is as follows:
2022
| | | | | |
| | |
| | | | |
| | | | | |
Banco Santander, S.A. (a) | | | | | |
Banco Santander, S.A. (a) | | | | | |
Banco Santander, S.A. (b) | | | | | |
Banco Santander, S.A. (b) | | | | | |
P\u00ba Comer. Carlos III, S.A. (c) | | | | | |
Provitae Centros Asistenciales, S.L. (d) | | | | | |
Silicius Real Estate SOCIMI, S.A. (e) | | | | | |
| | | | | |
financing transactions was EUR 198,780 thousand in loans and EUR 305,191 thousand in notional
derivatives.
At 31 December 2022, the Group had bank balances deposited with Banco Santander, S.A.
amounting to EUR 201,077 thousand (which included the accounts on behalf of the associates Paseo
Comercial Carlos III, S.A. and Edged Spain, S.L.U. for EUR 2 thousand and EUR 19 thousand,
respectively).
In 2022, the finance costs incurred in transactions with Santander, S.A. amounted to EUR 2,326
thousand, which included EUR 55 thousand in guarantee fees and EUR 385 thousand in current
account management costs.
The Group has been granted guarantees by the shareholder Banco Santander, S.A. amounting to
EUR 5,455 thousand (EUR 3,940 thousand granted to MERLIN Properties SOCIMI, S.A. and EUR
1,516 thousand granted to the associate Paseo Comercial Carlos III, S.A.).
The revenue of EUR 5,860 thousand relates to the early cancellation of the derivatives associated with
the financing of the corporate syndicated loan and the mortgage financing of Tree Inversiones
Inmobiliarias, SOCIMI, S.A.
b)Leases and services rendered
In 2022 the Group had 5 leases with Banco Santander Group in various office properties and shopping
centres. The duration of the lease contracts covers a period of up to 5 years, and in 2022 they
generated income of EUR 752 thousand (EUR 636 thousand in 2021) including income from leasing,
and parking spaces and transfers of cash machine space in shopping centres. The guarantees
deposited to secure these agreements amounted to EUR 392 thousand (EUR 131 thousand in 2021).
In addition, the Group has contracted General Meeting and shareholder registration organisational
services amounting to EUR 64 thousand, in addition to listing agent services on the Euronext Lisbon
stock exchange and dividend agent for EUR 11 thousand.
Transactions with companies accounted for using the equity method
c)Paseo Comercial Carlos III S.A.
At 31 December 2022, the Parent, together with the other shareholder of the associate and as a
condition of bank financing, had a loan of EUR 2,590 thousand in force, including EUR 51 thousand of
accrued interest (EUR 29 thousand in 2021), granted on 27 July 2020 to the associate Paseo
Comercial Carlos III, S.A. Which manages a shopping centre in Madrid.
d)Provitae Centros Asistenciales, S.L.
At 31 December 2022, the Parent had an existing loan amounting to EUR 1,131 thousand (EUR 962
thousand at 31 December 2021), which included EUR 144 thousand of accrued interest (EUR 144
thousand in 2021), granted on 10 January 2002 to the associate Provitae Centro Asistenciales, S.L.
with a land holding in Villajoyosa.
e)Silicius Real Estate SOCIMI, S.A.
At 31 December 2021, the Parent had a \"financial asset at fair value through profit and loss\"
amounting to EUR 80,964 thousand corresponding to the value of the shares associated with the
liquidity mechanism maturing in February 2022, agreed in the non-monetary contribution made by the
Parent on 27 February 2020. In the first half of 2021, the Parent sold 353,966 shares for EUR 5,418
thousand.
On 27 July 2022, the Group exercised the option to sell 14.28% of the shares of Silicius Real Estate
SOCIMI, S.A. for EUR 80,964 thousand, the full amount of which was paid in cash (see Note 10).
The Parent Company also had outstanding obligations to pay amounting to EUR 4,050 thousand,
recorded as \"other current and non-current financial liabilities\".
f)G36 Developments, S.L.
At 31 December 2022, the Parent did not have any outstanding loans with this company. During the
first quarter of 2022, the company has cancelled the outstanding part (EUR 212 thousand) of the loan
for an amount EUR 625 thousand, granted on 1 October 2018 to the associated company G36
Developments, S.L., holder of an asset that will be dedicated to the management of flexible office
spaces. In February 2022 G36 Developments, S.L. sold the asset it held.
In 2022, G36 Developments, S.L. returned the contributions made in the 2018 capital increase; i.e.,
the share premium amounting to EUR 1,823 thousand and a capital reduction of EUR 202 thousand,
which resulted in the value of the Group's share in this company reaching EUR 2 thousand.
Dividends and other profits distributed to related parties (thousands of euros)
be reported in accordance with article 229 of the revised text of the Spanish Capital Companies Act.
Directors' compensation and other benefits
At 31 December 2022 and 2021, salaries, per diem attendance fees and any other type of
compensation paid to members of the Parent's managing bodies totalled EUR 8,151 thousand and
EUR 6,523 thousand, as detailed below:
| | |
| |
| | |
| | |
Fixed and variable remuneration | | |
| | |
| | |
| | |
Life and health insurance | | |
| | |
In addition to the above amounts and in relation to the variable remuneration in favour of Executive
Directors corresponding to the bonus for previous years, in 2022 an amount of EUR 3,250 thousand
was paid on the deferred amounts of the variable targets for 2016 and 2019 in accordance with the
conditions in the above plans.
At the end of 2022, unpaid accrued amounts associated with the variable remuneration for 2021
amounting to EUR 1,350 thousand were maintained, of which EUR 675 thousand were recognised
under 'Non-current provisions' and EUR 675 thousand under 'Trade and other accounts payable' in the
accompanying balance sheet.
Unpaid accrued amounts are maintained, associated with the variable remuneration for 2022 for the
amount of EUR\u00a0 4,186 thousand, of which EUR 1,243thousand are recognised under \"Non-current
provisions\" and EUR\u00a0 2,943 thousands under \"Trade and other accounts payable\" in the
accompanying balance sheet.
Also, in accordance with the 2017-2019 Incentive Plan, described in this same Note, in 2022 the
Executive Directors received 538,460 net shares corresponding to the second 50% of the amount of
the incentive referenced to the EPRA NAV, with the 2017-2019 Incentive Plan settled.
In April 2022 the Executive Directors received a total of EUR 750 thousand under the 2021 Special
Incentive.
As established in the Special Incentive for the sale of the BBVA portfolio, defined below, the Executive
Directors have accrued an amount of EUR 1,700.
In regards to the \"golden parachute\" clauses for executive directors and other senior executives of the
Company or its Group in the event of dismissal or takeover, these clauses provide for compensation
that represented a total commitment of EUR\u00a0 8,971 thousand as of 31 December 2022.
The breakdown, by board member, of the amounts disclosed above is as follows:
| | | |
| | |
| |
| | | |
| | | |
Remuneration of board members | | | |
Javier Garc\u00eda Carranza Benjumea | Chairman - Proprietary director | | |
| | | |
| | | |
Mar\u00eda Luisa Jord\u00e1 Castro | | | |
| | | |
| | | |
| | | |
Juan Mar\u00eda Aguirre Gonzalo | | | |
| | | |
Francisca Ortega Hern\u00e1ndez Agero | | | |
Emilio Novela Berl\u00edn | | | |
Mar\u00eda Ana Forner Beltr\u00e1n | | | |
Ignacio Gil-Casares Satr\u00fastegui | | | |
| | | |
| | | |
The Company has granted no advances, loans or guarantees to any of its directors.
The Parent's directors are covered by the \"Corporate Third-Party Liability Insurance Policies for
Directors and Executives\" taken out by the Parent to cover possible damages that may be claimed,
and that are evidenced as a result of a management error committed by its directors or executives,
and those of its subsidiaries, in discharging their duties. The premium amounted to an annual total of
EUR 400 thousand (EUR 493 thousand in 2021).
Remuneration and other benefits of senior executives
The remuneration of the Parent's senior executives, including the Head of Internal Audit, excluding
those who are also Board members (whose remuneration is disclosed above) in 2022 and 2021, is
summarised as follows:
2022
| | | |
|
| Fixed and variable remuneration | | |
| | | |
2021
| | | |
|
| Fixed and variable remuneration | | |
| | | |
In addition to the above amounts and in relation to the variable remuneration for Senior Management
corresponding to the prior years' bonuses, an amount of EUR 4,373 thousand was paid related to the
variable objectives, and the deferred amounts of the variable objectives for 2016 and 2019 in
accordance with the above plans.
At the end of 2022, unpaid accrued amounts associated with the variable remuneration for 2021 were
maintained for EUR 1,988 thousand, of which EUR 994 thousand were recognised under 'Non-current
provisions' and EUR 994 thousand under 'Trade and other accounts payable' in the accompanying
balance sheet.
Unpaid accrued amounts are maintained, associated with the variable remuneration for 2022 for the
amount of EUR\u00a0 5,229 thousand, of which EUR 1,707 thousand are recognised under \"Non-current
provisions\" and EUR 3,522 thousands under \"Trade and other accounts payable\" in the accompanying
balance sheet.
Also, in accordance with the 2017-2019 Incentive Plan, described in this same Note, in 2022 Senior
Management received 444,950 net shares corresponding to the second 50% of the amount of the
incentive referenced to the EPRA NAV, with the 2017-2019 Incentive Plan settled.
In 2021, two Senior Management staff left the company. In 2021 they received fixed and variable
remuneration of EUR 242 thousand, and other remuneration amounting to EUR 3 thousand. They
were also paid EUR 3,870 thousand corresponding to the deferred amounts of the variable targets for
2015, 2016, 2018 and 2019. There are no unpaid accrued amounts. In addition, in relation to the
remuneration plan associated with the 2017-2019 period, they received the payment of 591,766 net
shares arising from the entire amount corresponding to the incentive plan and linked to the increase in
the EPRA NAV in the period.
In April 2022 Senior Management received a total of EUR 540 thousand for the 2021 Special
Incentive.
As established in the Special Incentive for the sale of the BBVA portfolio, defined below, the Senior
Management have accrued an amount of EUR 1,709.
Special Incentive corresponding to TREE disposal
In application of the current Remuneration Policy, approved at the 2022 General Shareholders'
Meeting, the Board of Directors has decided to make use of the power to grant a special incentive
(hereinafter \"Special Incentive\") to the Executive Directors in the event of the success of extraordinary
corporate transactions that generate significant added value for the Company's shareholders and/or
generate an economic benefit or a significant value creation in the Company's assets.
In this regard, in fiscal year 2022, the sale of BBVA's branch portfolio through Tree Inversiones
Inmobiliarias SOCIMI, S.A. (100% subsidiary of MERLIN) was carried out for 1,987 million euros (sale
of TREE).\u00a0 This transaction resulted in a premium of 17.1% over the last valuation and reduced the
Group's net debt by 1,636 million euros, while simultaneously distributing an extraordinary dividend of
351 million euros (0.75 euros per share).
The Special Incentive has been extended to Senior Management and the rest of the beneficiaries of
the 2022-24 Long-Term Incentive Plan for a total amount of 4,450 thousand euros. The incentive will
be paid in the first quarter of 2023.
2021 Special Incentive
On 27 April 2021, the Parent's Annual General Meeting of Shareholders approved the implementation
of an exceptional variable remuneration scheme payable in cash for 2021 (the \"Special Incentive\"( for
members of the Company's management and management team).
The activation of the right to receive the \"Special incentive\" would take place if, after the period from 1
January 2021 to 31 December 2021, the level of fulfilment of the targets linked to the right to receive
the \"Special incentive\" had been reached.
In this regard, at 31 December 2021, the Group recognised the expense in the amount of EUR 2,737
thousand, corresponding to the vested portion of the 2021 Incentive Plan.
This special incentive was paid to its beneficiaries in April 2022.
2017 \u2013 2019 Incentive Plan
Also, at the General Meeting held on 26 April 2017, the shareholders approved a remuneration plan
for the management team and other important members of the Group's workforce, the measurement
period of which was from 1 January 2017 to 31 December 2019 (the \"2017-2019 Incentive Plan\").
According to the plan, the members of the management team could be entitled to receive: (i) a certain
monetary amount in accordance with the increase of the share price and (ii) Parent Company shares,
if certain objectives are fulfilled.
In this regard, as of 31 December 2022, the Company recognised the expense in the amount of EUR
1,210 thousand, corresponding to the vested portion of the 2017-2019 Incentive Plan, with a balancing
entry in reserves.
In 2022, a total of 1,262,398 net shares were paid corresponding to the second payment of the
incentive referenced to the EPRA NAV. With this payment, the 2017-2019 Incentive Plan was fully
settled and paid.
2022 \u2013 2024 Incentive Plan
The General Shareholder Meeting held on 4 May 2022 approved a long-term remuneration plan
consisting of the delivery of a number of ordinary shares of the Company equal to 3,491,767 shares
(representing 0.74% of the share capital), aimed at the management team and other relevant
members of the Group's workforce (the 2022-2024 Incentive Plan).
The 2022-2024 Incentive Plan consists of a single cycle with a target measurement period of 3 years,
beginning on 1 January 2022 and ending on 31 December 2024. If the targets are met, the shares will
be delivered in 2025, once the corresponding accounts for 2024 have been prepared and audited. All
shares delivered under the 2022-2024 Incentive Plan to executive directors will be subject to a 2-year
vesting period. The maximum number of shares assigned to the Executive Directors is 1,088,082
shares.
The specific number of shares of the Company that, within the maximum established, will be delivered
to the Beneficiaries of the 2022-2024 Incentive Plan at the end of the Plan will be conditional on the
fulfilment of the following objectives related to the creation of value for shareholders and sustainability:
| | |
| | |
| Absolute Total Shareholder Return (TSR) is the return on the share taking into account the cumulative change in the quoted value of the Company's share, including dividends and other similar concepts received by the shareholder in 2022-2024. The Relative TSR measures the evolution of the TSR of the Company's share in 2022-2024, in relation to the TSR experienced in the EPRA Nareit Developed Europe Index during the same period. | |
EPRA NTA 31/12/24 Dividends (2022-2024)/share | EPRA NTA is calculated based on the Company's consolidated equity and by adjusting certain items following the recommendations of the EPRA. On the other hand, the dividends paid and other similar concepts received by the shareholder during the period of measurement of targets (financial years 2022, 2023 and 2024) are taken into account. | |
| Level of reduction of the Company's CO2 emissions at 31 December 2024, compared to 31 December 2021, calculated for the comparable asset portfolio over which the Company has operational control (scope of the Company's zero net path). | |
| Progress on initiatives linked to improving the environment and society. In this sense, the economic and social impact of the Company's assets on the local communities located around said assets and the different interest groups will be assessed. | |
Directors and Executives\" taken out by the Parent to cover possible damages that may be claimed,
and that are evidenced as a result of a management error committed by its directors or executives,
and those of its subsidiaries, in discharging their duties. The premium amounted to an annual total of
EUR 400 thousand (EUR 493 thousand in 2021).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInsuranceContractsExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MTEvZnJhZzpjMWU2NTIxZmYwOTk0OTNkODNjMGY0NzI0YmVhM2RhMi90ZXh0cmVnaW9uOmMxZTY1MjFmZjA5OTQ5M2Q4M2MwZjQ3MjRiZWEzZGEyXzQ5NDc4MDIzMjczMTg_9b78263d-fe31-4408-95c8-50f91d7ddf3a": {
"value": "
21.\u00a0 \u00a0 Auditors' remuneration
The fees for financial audit services provided to the various companies composing the Merlin Group
and subsidiaries by the principal auditor, Deloitte, S.L., and entities related to the principal auditor and
other auditors is as follows:
| | |
| |
| | |
| | |
| | |
Other audit-related services: | | |
| | |
Total audit and related services | | |
Services required by applicable law | | |
| | |
| | |
| | |
| | |
(*) No services associated with discontinued activity
The heading \"Other audit-related services\" includes the verification services performed by the auditor
in the bond issue process, and certain agreed procedures related to the performance of covenants.
\"Other services\" includes technical and urban advisory services, and other advisory services.
For its part, the audit services include, in addition to the statutory annual audit, services from revisions
of intermediate periods.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MTQvZnJhZzo4YmQxZmIxNjBmMDE0NjQzYjQ2NmZhMjU0OTc5NDZjYy90ZXh0cmVnaW9uOjhiZDFmYjE2MGYwMTQ2NDNiNDY2ZmEyNTQ5Nzk0NmNjXzQ5NDc4MDIzMjYxNjY_ba04bdff-8860-4240-bf37-855edeecdb4b": {
"value": "
22.\u00a0 \u00a0 Environmental information
Given the activity in which the Group engages, it has no environmental liabilities, expenses, assets,
provisions or contingencies that could have a material impact on its equity, financial position and
results of its operations.
Therefore, no specific environmental disclosures have been included in these notes to the
consolidated financial statements.
",
"dimensions": {
"concept": "mer:DisclosureOfEnvironmentRelatedInformationTextBlock",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MTcvZnJhZzo0NDU0OWQwMmU2Yzc0ODkzOTA4N2FmYzEwYWEzYjliYS90ZXh0cmVnaW9uOjQ0NTQ5ZDAyZTZjNzQ4OTM5MDg3YWZjMTBhYTNiOWJhXzQ5NDc4MDIzNzM0MjU_a2511d8f-f43d-4644-82b7-788369444425": {
"value": "
23.\u00a0 \u00a0 Risk exposure
Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk and
cash flow interest rate risk. The Group's overall risk management programme is based on the
uncertainty of financial markets and aims to minimize the adverse effects of such risks on the financial
profitability of the Group.
Risk management is undertaken by the Group's Senior Management in accordance with the policies
approved by the Board. Senior Management identifies, evaluates and mitigates financial risks in close
collaboration with the Group's operating units. The Board issues the written global risk management
policies and the policies for specific areas, including those for covering market risk, interest rate risk
and liquidity risk and investing cash surpluses.
Market risk
Given the current status of the real-estate sector and to mitigate the effects thereof, the Group has
specific measures in place to minimize said impact on its financial position.
These measures are applied pursuant to the results of sensitivity analyses performed by the Group on
a regular basis. These analyses involve:
\u2022Assessing the economic environment in which the Group operates: Designing different
economic scenarios and modifying the key variables potentially affecting the Group. Identifying
interdependent variables and the extent of their relationship; and
\u2022Taking into account the time frame of the analyses: consideration is given to the periods over
which analyses are performed and any possible deviations thereof.
MERLIN Properties is exposed to market risk from possible vacancies or renegotiations of leases
when the leases expire. This risk could have a direct negative impact on the valuation of the
Company's assets.
However, market risk is mitigated by the customer acquisition and selection policies and the
mandatory lease compliance deadlines negotiated with them, and the guarantees that the Group has
associated with the leases. Therefore, at 31 December 2022, the average occupancy rate of the asset
portfolio was 95.1%, with a weighted average unexpired lease term of 3.2 years (weighted by GRI).
Credit risk
Credit risk is defined as the potential risk of loss in earnings to which the Group is exposed if a
customer or counterparty breaches its contractual obligations.
As a general rule, the Group places cash and cash equivalents with financial institutions with high
credit ratings.
The Group does not have significant concentrations of credit risk, having policies to limit the volume of
risk posed to customers and exposure to credit recovery risk is managed as part of normal activities
through, among other things, funds or guarantees deposited as collateral.
The Group has formal procedures to identify any impairment of trade receivables. Delays in payment
are detected through these procedures and individual analysis by business area and methods are
established to estimate impairment loss.
Details of the estimated maturities of the Group's financial assets in the consolidated statement of
financial position at 31 December 2022 are as follows.
2022
| | | | | |
| |
| | More than 3 and less than o 6 months | | | |
| | | | | |
| | | | | |
| | | | | |
Investments in associates | | | | | |
| | | | | |
Trade and other receivables | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
(*) derivatives are not included
2021
| | | | | |
| |
| | More than 3 and less than o 6 months | | | |
| | | | | |
| | | | | |
| | | | | |
Financial assets at fair value through profit or loss | | | | | |
Investments in associates | | | | | |
| | | | | |
Trade and other receivables | | | | | |
Other current financial assets | | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
(*) derivatives are not included
Cash and cash equivalents
The Group has cash and cash equivalents of EUR 429,449 thousand, which represents its maximum
exposure to the risk posed by these assets.
Cash and cash equivalents are deposited with banks and financial institutions.
Liquidity risk
Liquidity risk is defined as the risk of the Group encountering difficulties meeting its obligations
regarding financial liabilities settled in cash or with other financial assets.
To manage liquidity risk and meet its various funding requirements, the Group uses an annual cash
budget and a monthly cash projection, the latter being detailed and updated daily. The driving factor of
the working capital deficiency is the maturity of short-term obligations. At 31 December 2022, the
Group's working capital deficiency amounted to EUR 411,292 thousand
The working capital deficiency has the following noteworthy mitigating factors, (i) the generation of
recurrent cash from the businesses on which the Group bases its activity; and (ii) the financing lines
available for an amount of EUR 1,410 thousand and (iii) the capacity to renegotiate and obtain new
financing facilities based on the Group's long-term business plans and the quality of its assets.
At the date of preparation of the consolidated financial statements, taking into account the foregoing,
the Group had covered all its funding requirements to fully meet its commitments to suppliers,
providers of financing, employees and the authorities based on the cash flow forecast for 2023.
Likewise, the type of sector in which the Company operates, the investments it makes, the financing it
obtains to make such investments, the EBITDA they generate and the occupancy rates of the
properties, enables the liquidity risk to be mitigated and excess cash to be produced.
Any cash surpluses are used to make short-term investments in highly liquid deposits with no risk. The
acquisition of share options or futures, or any other high-risk deposits as a method of investing cash
surpluses, is not among the possibilities considered by the Group for investing cash surpluses.
Details of the Group's exposure to liquidity risk at 31 December 2022 are provided in the table below.
The tables present the results of the analysis of gross financial liabilities, excluding the cost of bond
issuance, by remaining contractual maturity date:
2022
| | | | | |
| |
| | | | | |
| | | | | |
Other non-current liabilities and guarantees | | | | | |
Trade and other payables (excluding payables to public authorities) | | | | | |
| | | | | |
2021
| | | | | |
| |
| | | | | |
| | | | | |
Other non-current liabilities and guarantees | | | | | |
Trade and other payables (excluding payables to public authorities) | | | | | |
| | | | | |
Cash flow interest rate risk and fair value risk
The Group manages its interest rate risk by borrowing at fixed and floating rates of interest. The
Group's policy is to ensure non-current net financing from third parties is at a fixed rate. To manage
this, the Group enters into interest rate swaps which are designated as hedges of the respective loans.
At 31 December 2022, the percentage of debt the interest rate of which is covered by the above
financial instruments was 99.6%. The impact of interest rate fluctuations is explained in Note 14.3.
Exchange rate risk
The Company's policy is to borrow in the same currency as that of the cash flows of each business.
Consequently, currently there is no foreign currency risk. However, noteworthy in this connection are
the exchange rate fluctuations arising in translating the financial statements of foreign companies
whose functional currency is not the euro. At 31 December 2022, the functional currency of all
subsidiaries and associates of the MERLIN Group was the euro.
Tax risk
As mentioned in Note 1, the Parent and part of its subsidiaries are subject to the special tax regime for
Real Estate Investment Trusts (REITs). The transitional period of the Parent ended in 2017 and,
therefore, compliance with all requirements established by the regime (see Notes 1 and 5.13) became
mandatory. Some of the more formal obligations that the Parent must meet involve the inclusion of the
term REIT in its company name, the inclusion of certain information in the notes to its separate
financial statements, the share price on the stock market, etc., and other obligations that require
estimates to be made and judgements to be applied by management that may become fairly complex,
especially considering that the REIT regime is relatively recent and was developed by the Directorate-
General of Taxes mainly in response to the queries posed by various companies. Group management,
based on the opinion of its tax advisers, assessed compliance with the requirements of the regime,
concluding that such requirements were met at 31 December 2022.
Accordingly, and also for the purpose of taking into consideration the financial effect of the regime, it
should be noted that, as in Article 6 of Law 11/2009, of 26 October 2009, amended by REITs Act (Ley
16/2012 de 27 de diciembre), and in the percentages in it, companies that have opted for the special
tax regime are required to distribute the profit generated during the year to their shareholders in the
form of dividends, once the related corporate obligations have been met. This distribution must be
approved within six months from each year-end, and the dividends paid in the month following the
date on which the pay-out is agreed (see Note 5.13).
If the Parent does not comply with the requirements in the regime or if the shareholders at the General
Meetings of these companies do not approve the dividend distribution proposed by the Board,
calculated in accordance with the requirements of this Act, it would not be complying therewith and,
accordingly, tax would have to be paid under the general regime, not the regime applicable to REITs.
Climate change management
Within the framework of the European Green Pact and the UN Sustainable Development Goals, the
Group is performing various actions on sustainability.
First, the Parent of the Group, in 2021, formed a Sustainability and Innovation Committee under the
Board that has the main competencies to advise the Board, among other aspects, on environmental
and sustainability issues; on the development of the Group's strategy on sustainability in its
relationships with stakeholders and in its publication and public communication; and to supervise the
communication and information to the market of any information that refers to sustainability issues and
non-financial information and to keep the ESG risk map updated (Environmental Social and
Governance).
In this regard, the Group included decision factors in relation to non-financial KPIs in its investment
and financing policies. In this line, the investment studies of real estate acquisitions and investments in
repositioning of the Group's assets take into account, among other factors, elements such as obtaining
energy efficiency certificates with the highest rating (see Note 7), air conditioning, lighting, solar
energy, irrigation of green areas, accessibility, etc.
When certifying assets, the Group selects the most appropriate framework and modality based on the
asset's phase, the characteristics of the building, its occupancy rate at the time of certification or the
tenants who occupy it.
We are continuing the process of certifying the portfolio under the standards of the leaders in this
market, BREEAM and LEED. In 2022 the Group certified or obtained the renewal of 33 assets. The
Group considers the process of certifying its assets as an anticipated response to the demands that
the market will place on property landlords in the medium term and which will enable it to maintain its
current competitive position.
Additionally, the Group obtained a 79% rating in the 2022 edition of GRESB, a platform that makes it
possible to harmonise and compare information related to sustainability criteria (environmental, social
and corporate governance - ESG) in real estate investments.
In addition, the Group has an Environmental Management System (EMS) certified according to ISO
14001, which is the umbrella under which it manages its portfolios and that incorporates new
properties into its scope every year.
From 2015, the Group performed plan for ISO 14001 (environmental management) and ISO 50001
(energy management) certifications to maintain and expand the number of real estate assets that have
at least ISO 14001 certification, and subsequently ISO 50001 certification (based on the
understanding that it is a natural step to obtain ISO 14001 certification before aspiring to ISO 50001).
This plan includes office buildings, shopping centres and logistics warehouses.\u00a0 ISO 14001, in 2022,
88 buildings composing a surface area of 1,214,796 m2 were certified, 4 more buildings than in 2021.
Since 2017, the Group has also performed a process of implementing an Energy Management System
under the ISO 50001 standard, which began in 2017. Currently, 84 buildings are certified composing a
surface area of 1,153,701 m2, 3 more than in 2021. The assets included in this system aim to reduce
total energy consumption by 8% compared to 2021, based on the implementation of MAEs (energy
saving measures).
In 2022, the Group performed an analysis of the entire portfolio to determine the carbon footprint of
each of its assets, and the measures necessary to reduce the above carbon footprint.
The path taken by the Group in 2022 enables the Company to meet its emissions reduction target and
its \"path to net zero\" by 2030, thus anticipating the European strategy of decarbonization of the
economy and ensuring the present and future survival of the Company and its assets.
The Group's path to net zero is a roadmap that includes improving the performance not only of the
company itself and those assets over which it has operational control, but also of the main agents
responsible for the Group's emissions throughout its value chain, including suppliers and tenants.
The Group's financing policies are also aligned with the Group's sustainability objectives through the
Green Financing Program published in April 2022 and the conversion of 100% of its bonds in
circulation into green bonds.
Currently, 98% of the Group's debt with credit and bond institutions is linked to the Green Financing
Program or ESG criteria (see Note 14).
The Green Financing Program, in line with best market practices, includes the following eligibility
criteria:
1.Green assets with the best LEED/BREEAM certification levels or energy efficiency certificates
and/or minimum carbon emission levels
2.Investments in Energy Efficiency
3.Investments in renewable energy
4.Investments in pollution control and prevention mechanisms
5.Investments in transport mechanisms with low carbon emissions
Financing linked to ESG targets includes a cost adjustment mechanism linked, in the Group's opinion,
to own credit risk, based on management indicators calculated based on four sustainability criteria that
must be met at least three times annually and cumulatively over the 2019-2025 period.\u00a0
At year-end 2022, the Company complied with the 4 indicators established and the directors consider
that they will be met in 2023.
The indicators for 2019-2022 were:
1.Aggregate investment of at least EUR 10.2 million in energy efficiency improvements across
the portfolio
2.Obtaining a total of at least 31 LEED and BREEAM external energy certifications with a
minimum rating of LEED Silver and BREEAM Good.
3.Obtaining a total of at least 38 AIS/DIGA certifications for disability access for all tenants and
consumers
4.Aggregate electricity consumption of at least 150 GW from renewable energy sources
In addition, the Group in its commitment to climate responsibility incorporated qualitative factors
related to the Group's sustainability strategy into the measurement targets for short-term variable
compensation for its staff and management team (see Note 20).
The above initiatives, although they entail an increase in operation costs for the Group, are aimed at
anticipating regulatory developments and increasing the loyalty of its customer base.
In addition, in 2022 the Group joined SBTi1, aligning its targets to achieve carbon neutrality with the
Science Based Targets. In addition, it also undertook to report in the Statement of Non-Financial
Information (NFI) in accordance with the recommendations of TCFD2.
Finally, the Group has also made progress in publishing its Path to Net Zero. The Group's Path to Net
Zero is a road map that includes improving the performance not only of the Company itself and of
those assets over which it has operational control, but of the main stakeholder responsible for the
Group's issues throughout its entire value chain, including suppliers and tenants. This strategy has 5
axes of action:
1.Operational carbon reduction: 85% of operational carbon reduction from baseline (2018) to
target (2028).
2.Reduction of embodied carbon: Embodied carbon footprint calculated in all new developments
and repositions.
3.Offset of residual emissions: The inevitable footprint will be mostly offset by duly certified own
initiatives.
4.Reduction in tenant emissions: Green clauses in all new contracts and reduction in the rental
price associated with their own credit risk for net zero tenants.
5.Renewable energy: Acquisition of 100% renewable energy and on-site generation of energy
through solar power panels (Sun Project).
All of the above is part of the Group's net zero path or commitment to combating climate change.",
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Market risk
Given the current status of the real-estate sector and to mitigate the effects thereof, the Group has
specific measures in place to minimize said impact on its financial position.
These measures are applied pursuant to the results of sensitivity analyses performed by the Group on
a regular basis. These analyses involve:
\u2022Assessing the economic environment in which the Group operates: Designing different
economic scenarios and modifying the key variables potentially affecting the Group. Identifying
interdependent variables and the extent of their relationship; and
\u2022Taking into account the time frame of the analyses: consideration is given to the periods over
which analyses are performed and any possible deviations thereof.
MERLIN Properties is exposed to market risk from possible vacancies or renegotiations of leases
when the leases expire. This risk could have a direct negative impact on the valuation of the
Company's assets.
However, market risk is mitigated by the customer acquisition and selection policies and the
mandatory lease compliance deadlines negotiated with them, and the guarantees that the Group has
associated with the leases. Therefore, at 31 December 2022, the average occupancy rate of the asset
portfolio was 95.1%, with a weighted average unexpired lease term of 3.2 years (weighted by GRI).
",
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"value": "
Cash flow interest rate risk and fair value risk
The Group manages its interest rate risk by borrowing at fixed and floating rates of interest. The
Group's policy is to ensure non-current net financing from third parties is at a fixed rate. To manage
this, the Group enters into interest rate swaps which are designated as hedges of the respective loans.
At 31 December 2022, the percentage of debt the interest rate of which is covered by the above
financial instruments was 99.6%. The impact of interest rate fluctuations is explained in Note 14.3.
",
"dimensions": {
"concept": "mer:CashFlowInterestRateRiskAndFairValueRiskTextBlock",
"language": "en",
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}
},
"id3VybDovL2RvY3MudjEvZG9jOjkzMDc2YWYzZDIzYTRhZmI4ZGY5ZGY3OWZjOTNjYzJjL3NlYzo5MzA3NmFmM2QyM2E0YWZiOGRmOWRmNzlmYzkzY2MyY183MTcvZnJhZzo0NDU0OWQwMmU2Yzc0ODkzOTA4N2FmYzEwYWEzYjliYS90ZXh0cmVnaW9uOjQ0NTQ5ZDAyZTZjNzQ4OTM5MDg3YWZjMTBhYTNiOWJhXzQ5NDc4MDIzNzM0NDM_d6e1d047-4924-4efd-b74a-2036bacb6fff": {
"value": "
Exchange rate risk
The Company's policy is to borrow in the same currency as that of the cash flows of each business.
Consequently, currently there is no foreign currency risk. However, noteworthy in this connection are
the exchange rate fluctuations arising in translating the financial statements of foreign companies
whose functional currency is not the euro. At 31 December 2022, the functional currency of all
subsidiaries and associates of the MERLIN Group was the euro.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
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},
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"value": "
Climate change management
Within the framework of the European Green Pact and the UN Sustainable Development Goals, the
Group is performing various actions on sustainability.
First, the Parent of the Group, in 2021, formed a Sustainability and Innovation Committee under the
Board that has the main competencies to advise the Board, among other aspects, on environmental
and sustainability issues; on the development of the Group's strategy on sustainability in its
relationships with stakeholders and in its publication and public communication; and to supervise the
communication and information to the market of any information that refers to sustainability issues and
non-financial information and to keep the ESG risk map updated (Environmental Social and
Governance).
In this regard, the Group included decision factors in relation to non-financial KPIs in its investment
and financing policies. In this line, the investment studies of real estate acquisitions and investments in
repositioning of the Group's assets take into account, among other factors, elements such as obtaining
energy efficiency certificates with the highest rating (see Note 7), air conditioning, lighting, solar
energy, irrigation of green areas, accessibility, etc.
When certifying assets, the Group selects the most appropriate framework and modality based on the
asset's phase, the characteristics of the building, its occupancy rate at the time of certification or the
tenants who occupy it.
We are continuing the process of certifying the portfolio under the standards of the leaders in this
market, BREEAM and LEED. In 2022 the Group certified or obtained the renewal of 33 assets. The
Group considers the process of certifying its assets as an anticipated response to the demands that
the market will place on property landlords in the medium term and which will enable it to maintain its
current competitive position.
Additionally, the Group obtained a 79% rating in the 2022 edition of GRESB, a platform that makes it
possible to harmonise and compare information related to sustainability criteria (environmental, social
and corporate governance - ESG) in real estate investments.
In addition, the Group has an Environmental Management System (EMS) certified according to ISO
14001, which is the umbrella under which it manages its portfolios and that incorporates new
properties into its scope every year.
From 2015, the Group performed plan for ISO 14001 (environmental management) and ISO 50001
(energy management) certifications to maintain and expand the number of real estate assets that have
at least ISO 14001 certification, and subsequently ISO 50001 certification (based on the
understanding that it is a natural step to obtain ISO 14001 certification before aspiring to ISO 50001).
This plan includes office buildings, shopping centres and logistics warehouses.\u00a0 ISO 14001, in 2022,
88 buildings composing a surface area of 1,214,796 m2 were certified, 4 more buildings than in 2021.
Since 2017, the Group has also performed a process of implementing an Energy Management System
under the ISO 50001 standard, which began in 2017. Currently, 84 buildings are certified composing a
surface area of 1,153,701 m2, 3 more than in 2021. The assets included in this system aim to reduce
total energy consumption by 8% compared to 2021, based on the implementation of MAEs (energy
saving measures).
In 2022, the Group performed an analysis of the entire portfolio to determine the carbon footprint of
each of its assets, and the measures necessary to reduce the above carbon footprint.
The path taken by the Group in 2022 enables the Company to meet its emissions reduction target and
its \"path to net zero\" by 2030, thus anticipating the European strategy of decarbonization of the
economy and ensuring the present and future survival of the Company and its assets.
The Group's path to net zero is a roadmap that includes improving the performance not only of the
company itself and those assets over which it has operational control, but also of the main agents
responsible for the Group's emissions throughout its value chain, including suppliers and tenants.
The Group's financing policies are also aligned with the Group's sustainability objectives through the
Green Financing Program published in April 2022 and the conversion of 100% of its bonds in
circulation into green bonds.
Currently, 98% of the Group's debt with credit and bond institutions is linked to the Green Financing
Program or ESG criteria (see Note 14).
The Green Financing Program, in line with best market practices, includes the following eligibility
criteria:
1.Green assets with the best LEED/BREEAM certification levels or energy efficiency certificates
and/or minimum carbon emission levels
2.Investments in Energy Efficiency
3.Investments in renewable energy
4.Investments in pollution control and prevention mechanisms
5.Investments in transport mechanisms with low carbon emissions
Financing linked to ESG targets includes a cost adjustment mechanism linked, in the Group's opinion,
to own credit risk, based on management indicators calculated based on four sustainability criteria that
must be met at least three times annually and cumulatively over the 2019-2025 period.\u00a0
At year-end 2022, the Company complied with the 4 indicators established and the directors consider
that they will be met in 2023.
The indicators for 2019-2022 were:
1.Aggregate investment of at least EUR 10.2 million in energy efficiency improvements across
the portfolio
2.Obtaining a total of at least 31 LEED and BREEAM external energy certifications with a
minimum rating of LEED Silver and BREEAM Good.
3.Obtaining a total of at least 38 AIS/DIGA certifications for disability access for all tenants and
consumers
4.Aggregate electricity consumption of at least 150 GW from renewable energy sources
In addition, the Group in its commitment to climate responsibility incorporated qualitative factors
related to the Group's sustainability strategy into the measurement targets for short-term variable
compensation for its staff and management team (see Note 20).
The above initiatives, although they entail an increase in operation costs for the Group, are aimed at
anticipating regulatory developments and increasing the loyalty of its customer base.
In addition, in 2022 the Group joined SBTi1, aligning its targets to achieve carbon neutrality with the
Science Based Targets. In addition, it also undertook to report in the Statement of Non-Financial
Information (NFI) in accordance with the recommendations of TCFD2.
Finally, the Group has also made progress in publishing its Path to Net Zero. The Group's Path to Net
Zero is a road map that includes improving the performance not only of the Company itself and of
those assets over which it has operational control, but of the main stakeholder responsible for the
Group's issues throughout its entire value chain, including suppliers and tenants. This strategy has 5
axes of action:
1.Operational carbon reduction: 85% of operational carbon reduction from baseline (2018) to
target (2028).
2.Reduction of embodied carbon: Embodied carbon footprint calculated in all new developments
and repositions.
3.Offset of residual emissions: The inevitable footprint will be mostly offset by duly certified own
initiatives.
4.Reduction in tenant emissions: Green clauses in all new contracts and reduction in the rental
price associated with their own credit risk for net zero tenants.
5.Renewable energy: Acquisition of 100% renewable energy and on-site generation of energy
through solar power panels (Sun Project).
All of the above is part of the Group's net zero path or commitment to combating climate change.",
"dimensions": {
"concept": "mer:DisclosureOfClimateChangeManagementTextBlock",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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24.\u00a0 \u00a0 Events after the reporting period
No significant events have occurred between December 31, 2022 and the date of preparation of these
Consolidated Financial Statements.
",
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},
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"value": "
Appendix I - Group companies and associates 2022
| | | | | | | | | | | | |
| Line of business/Location | | | | |
| | | | | |
| | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Merlin Log\u00edstica, S.L.U. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Urban development, construction and operation of logistics and common services buildings. Ctra. de la Esclusa, 15. 41011, Seville. | | | | | | | | | | | |
Parques Log\u00edsticos de la Zona Franca, S.A. | Real estate acquisition and development for leasing, Avda. 3 del Parc Log\u00edstic, n\u00ba 26, Barcelona\u00a0 | | | | | | | | | | | |
The Exhibitions Company , S.A.U. | Provision of all kinds of technical, commercial or economic services/ Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Provision of Services / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
La Vital Centro Comercial y de Ocio, S.L. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Desarrollo Urbano de Patraix, S.A. | Land management / Avda. Bar\u00f3n de Carcer, 50, Valencia | | | | | | | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Global Murex Iberia, S.L. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Varitelia Distribuciones, S.L.U. | Real estate acquisition and development for leasing /\u00a0 Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Global Carihuela, Patrimonio Comercial S.L. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Equity
| | | | Tree Inversiones Inmobiliarias, SOCIMI, S.A.U. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Merlin Log\u00edstica, S.L.U. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Urban development, construction and operation of buildings for logistics activities and common services. Ctra. de la Esclusa, 15. 41011, Seville | | | | | | | | | | | |
Parques Log\u00edsticos de la Zona Franca, S.A. | Acquisition and development of property assets for lease, Avda. 3 del Parc Log\u00edstic, n\u00ba 26, Barcelona | | | | | | | | | | | |
Exhibitions Company , S.A.U. | Provision of services of all kinds, technical, commercial or economic services/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Provision of services/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
La Vital Centro Comercial y de Ocio, S.L. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Desarrollo Urbano de Patraix, S.A. | Land management/Avda. Bar\u00f3n de Carcer, 50, Valencia | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Global Murex Iberia, S.L. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Varitelia Distribuciones, S.L.U. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| | | | | | | | | | | Pazo de Congresos de Vigo, S.A. | Project for the execution, construction and operation of the Vigo Convention Centre/Avda. Garc\u00eda Barb\u00f3n, I, Vigo | | | | | | | | | | | |
| Acquisition and development of property assets for lease/C. Pr\u00edncipe de Vergara, 15. Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Alameda, s/n. Valencia | | | | | | | | | | | |
Araba Log\u00edstica, S.A. | Acquisition and development of real estate for lease/Avda. \u00c1lava s/n Rivabellosa (\u00c1lava) | | | | | | | | | | | |
Distrito Castellana Norte, S.A. | Carrying out all types of real estate activity/Paseo de la Castellana 216, Madrid | | | | | | | | | | | |
Silicius Real Estate, S.L. | Carrying out all types of real estate activity/Calle de Vel\u00e1zquez, 123, Madrid | | | | | | | | | | | |
| Services provided by data processing centres/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
",
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}
},
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Appendix I - Group companies and associates 2022
| | | | | | | | | | | | |
| Line of business/Location | | | | |
| | | | | |
| | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Merlin Log\u00edstica, S.L.U. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Urban development, construction and operation of logistics and common services buildings. Ctra. de la Esclusa, 15. 41011, Seville. | | | | | | | | | | | |
Parques Log\u00edsticos de la Zona Franca, S.A. | Real estate acquisition and development for leasing, Avda. 3 del Parc Log\u00edstic, n\u00ba 26, Barcelona\u00a0 | | | | | | | | | | | |
The Exhibitions Company , S.A.U. | Provision of all kinds of technical, commercial or economic services/ Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Provision of Services / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
La Vital Centro Comercial y de Ocio, S.L. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Desarrollo Urbano de Patraix, S.A. | Land management / Avda. Bar\u00f3n de Carcer, 50, Valencia | | | | | | | | | | | |
| Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Global Murex Iberia, S.L. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Varitelia Distribuciones, S.L.U. | Real estate acquisition and development for leasing /\u00a0 Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Global Carihuela, Patrimonio Comercial S.L. | Real estate acquisition and development for leasing / Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Equity
| | | | Tree Inversiones Inmobiliarias, SOCIMI, S.A.U. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Merlin Log\u00edstica, S.L.U. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Urban development, construction and operation of buildings for logistics activities and common services. Ctra. de la Esclusa, 15. 41011, Seville | | | | | | | | | | | |
Parques Log\u00edsticos de la Zona Franca, S.A. | Acquisition and development of property assets for lease, Avda. 3 del Parc Log\u00edstic, n\u00ba 26, Barcelona | | | | | | | | | | | |
Exhibitions Company , S.A.U. | Provision of services of all kinds, technical, commercial or economic services/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Provision of services/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
La Vital Centro Comercial y de Ocio, S.L. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Desarrollo Urbano de Patraix, S.A. | Land management/Avda. Bar\u00f3n de Carcer, 50, Valencia | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Global Murex Iberia, S.L. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
Varitelia Distribuciones, S.L.U. | Acquisition and development of property assets for lease/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
| | | | | | | | | | | Pazo de Congresos de Vigo, S.A. | Project for the execution, construction and operation of the Vigo Convention Centre/Avda. Garc\u00eda Barb\u00f3n, I, Vigo | | | | | | | | | | | |
| Acquisition and development of property assets for lease/C. Pr\u00edncipe de Vergara, 15. Madrid | | | | | | | | | | | |
| Acquisition and development of property assets for lease/Paseo de la Alameda, s/n. Valencia | | | | | | | | | | | |
Araba Log\u00edstica, S.A. | Acquisition and development of real estate for lease/Avda. \u00c1lava s/n Rivabellosa (\u00c1lava) | | | | | | | | | | | |
Distrito Castellana Norte, S.A. | Carrying out all types of real estate activity/Paseo de la Castellana 216, Madrid | | | | | | | | | | | |
Silicius Real Estate, S.L. | Carrying out all types of real estate activity/Calle de Vel\u00e1zquez, 123, Madrid | | | | | | | | | | | |
| Services provided by data processing centres/Paseo de la Castellana 257, Madrid | | | | | | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:959800L8KD863DP30X04",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}