{ "documentInfo": { "documentType": "https://xbrl.org/2021/xbrl-json", "features": { "xbrl:canonicalValues": true }, "namespaces": { "ifrs-full": "https://xbrl.ifrs.org/taxonomy/2022-03-24/ifrs-full", "iso4217": "http://www.xbrl.org/2003/iso4217", "mer": "http://www.merlinproperties.com/20231231", "scheme": "http://standards.iso.org/iso/17442", "xbrl": "https://xbrl.org/2021", "xbrli": "http://www.xbrl.org/2003/instance" }, "taxonomy": [ "http://www.merlinproperties.com/20231231/959800L8KD863DP30X04-2023-12-31.xsd" ] }, "facts": { "f-1": { "value": "1570000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherIntangibleAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-2": { "value": "1746000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherIntangibleAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-3": { "value": "469771000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IssuedCapital", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-4": { "value": "469771000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IssuedCapital", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-5": { "value": "7142000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PropertyPlantAndEquipment", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-6": { "value": "6323000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PropertyPlantAndEquipment", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-7": { "value": "3541379000", "decimals": -3, "dimensions": { "concept": "ifrs-full:SharePremium", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-8": { "value": "3541379000", "decimals": -3, "dimensions": { "concept": "ifrs-full:SharePremium", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-9": { "value": "10639763000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-10": { "value": "10714200000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-11": { "value": "2729403000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherReserves", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-12": { "value": "3023630000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherReserves", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-13": { "value": "537288000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-14": { "value": "500300000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InvestmentAccountedForUsingEquityMethod", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-15": { "value": "540000", "decimals": -3, "dimensions": { "concept": "mer:OtherEquityHolderContributions", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-16": { "value": "540000", "decimals": -3, "dimensions": { "concept": "mer:OtherEquityHolderContributions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-17": { "value": "202109000", "decimals": -3, "dimensions": { "concept": "mer:SubtotalNonCurrentFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-18": { "value": "211048000", "decimals": -3, "dimensions": { "concept": "mer:SubtotalNonCurrentFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-19": { "value": "-9475000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ReserveOfCashFlowHedges", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-20": { "value": "12798000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ReserveOfCashFlowHedges", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-21": { "value": "3429000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DerivativeFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-22": { "value": "18882000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DerivativeFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-23": { "value": "15410000", "decimals": -3, "dimensions": { "concept": "ifrs-full:TreasuryShares", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-24": { "value": "17166000", "decimals": -3, "dimensions": { "concept": "ifrs-full:TreasuryShares", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-25": { "value": "198680000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-26": { "value": "192166000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-27": { "value": "-93673000", "decimals": -3, "dimensions": { "concept": "mer:InterimDividend", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-28": { "value": "-444815000", "decimals": -3, "dimensions": { "concept": "mer:InterimDividend", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-29": { "value": "77573000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-30": { "value": "78646000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-31": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "mer:ProfitLossAttributableToOwnersOfTheParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-32": { "value": "263087000", "decimals": -3, "dimensions": { "concept": "mer:ProfitLossAttributableToOwnersOfTheParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-33": { "value": "11465445000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-34": { "value": "11512263000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-35": { "value": "6539038000", "decimals": -3, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-36": { "value": "6849224000", "decimals": -3, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-37": { "value": "6539038000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-38": { "value": "6849224000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-39": { "value": "3283337000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-40": { "value": "3279334000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-41": { "value": "1223731000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentLoansReceived", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-42": { "value": "189866000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentPortionOfNoncurrentLoansReceived", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-43": { "value": "171262000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherNoncurrentFinancialLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-44": { "value": "156398000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherNoncurrentFinancialLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-45": { "value": "613190000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-46": { "value": "613479000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-47": { "value": "20181000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-48": { "value": "12670000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentProvisions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-49": { "value": "5311701000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-50": { "value": "4251747000", "decimals": -3, "dimensions": { "concept": "ifrs-full:NoncurrentLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-51": { "value": "20966000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-52": { "value": "775036000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentBondsIssuedAndCurrentPortionOfNoncurrentBondsIssued", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-53": { "value": "50976000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InventoriesTotal", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-54": { "value": "44508000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InventoriesTotal", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-55": { "value": "4528000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentLoansReceivedAndCurrentPortionOfNoncurrentLoansReceived", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-56": { "value": "2806000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentLoansReceivedAndCurrentPortionOfNoncurrentLoansReceived", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-57": { "value": "62598000", "decimals": -3, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentReceivables", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-58": { "value": "49840000", "decimals": -3, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentReceivables", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-59": { "value": "7369000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherCurrentFinancialLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-60": { "value": "9020000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherCurrentFinancialLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-61": { "value": "4990000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherCurrentFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-62": { "value": "2960000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherCurrentFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-63": { "value": "164008000", "decimals": -3, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-64": { "value": "146850000", "decimals": -3, "dimensions": { "concept": "ifrs-full:TradeAndOtherCurrentPayables", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-65": { "value": "20179000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentPrepaymentsAndOtherCurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-66": { "value": "12463000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentPrepaymentsAndOtherCurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-67": { "value": "7591000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-68": { "value": "5234000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-69": { "value": "461223000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-70": { "value": "429449000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-71": { "value": "10210000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-72": { "value": "11566000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherCurrentLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-73": { "value": "599966000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-74": { "value": "539220000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-75": { "value": "214672000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-76": { "value": "950512000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CurrentLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-77": { "value": "12065411000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-78": { "value": "12051483000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-79": { "value": "12065411000", "decimals": -3, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-80": { "value": "12051483000", "decimals": -3, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-81": { "value": "464779000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-82": { "value": "439038000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Revenue", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-83": { "value": "4754000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-84": { "value": "2650000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-85": { "value": "34845000", "decimals": -3, "dimensions": { "concept": "ifrs-full:EmployeeBenefitsExpense", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-86": { "value": "39673000", "decimals": -3, "dimensions": { "concept": "ifrs-full:EmployeeBenefitsExpense", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-87": { "value": "73325000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherExpenseByNature", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-88": { "value": "73818000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherExpenseByNature", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-89": { "value": "-7023000", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnDisposalsOfInvestmentProperties", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-90": { "value": "11561000", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnDisposalsOfInvestmentProperties", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-91": { "value": "2075000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DepreciationAndAmortisationExpense", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-92": { "value": "1885000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DepreciationAndAmortisationExpense", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-93": { "value": "36000", "decimals": -3, "dimensions": { "concept": "ifrs-full:RevenueFromGovernmentGrants", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-94": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:RevenueFromGovernmentGrants", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-95": { "value": "-7410000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ChangesInOtherProvisions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-96": { "value": "-160000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ChangesInOtherProvisions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-97": { "value": "335984000", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnFairValueAdjustmentInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-98": { "value": "249272000", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnFairValueAdjustmentInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-99": { "value": "8907000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-100": { "value": "88441000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-101": { "value": "-6232000", "decimals": -3, "dimensions": { "concept": "mer:ChangeInFairValueOfAllFinancialInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-102": { "value": "41226000", "decimals": -3, "dimensions": { "concept": "mer:ChangeInFairValueOfAllFinancialInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-103": { "value": "10106000", "decimals": -3, "dimensions": { "concept": "ifrs-full:FinanceIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-104": { "value": "3942000", "decimals": -3, "dimensions": { "concept": "ifrs-full:FinanceIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-105": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnDisposalsOfInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-106": { "value": "-283000", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnDisposalsOfInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-107": { "value": "127786000", "decimals": -3, "dimensions": { "concept": "ifrs-full:FinanceCosts", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-108": { "value": "109203000", "decimals": -3, "dimensions": { "concept": "ifrs-full:FinanceCosts", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-109": { "value": "39923000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-110": { "value": "24033000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-111": { "value": "90000", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationRecognisedInProfitOrLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-112": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationRecognisedInProfitOrLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-113": { "value": "-74992000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-114": { "value": "48156000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-115": { "value": "8505000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-116": { "value": "6800000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-117": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-118": { "value": "41356000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-119": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-120": { "value": "221731000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-121": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-122": { "value": "263087000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-123": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-124": { "value": "263087000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-125": { "value": "-0.18", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-126": { "value": "0.09", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-127": { "value": "-0.18", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-128": { "value": "0.09", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-129": { "value": "0", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-130": { "value": "0.47", "decimals": 2, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-131": { "value": "0", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-132": { "value": "0.47", "decimals": 2, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShareFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f-133": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-134": { "value": "41356000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-135": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-136": { "value": "221731000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossFromDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-137": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-138": { "value": "263087000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-139": { "value": "-17747000", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeNetOfTaxCashFlowHedgesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-140": { "value": "12781000", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeNetOfTaxCashFlowHedgesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-141": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeNetOfTaxCashFlowHedgesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-142": { "value": "90577000", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeNetOfTaxCashFlowHedgesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-143": { "value": "-17747000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-144": { "value": "103358000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-145": { "value": "-4526000", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTaxContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-146": { "value": "17000", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTaxContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-147": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTaxDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-148": { "value": "-23157000", "decimals": -3, "dimensions": { "concept": "mer:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTaxDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-149": { "value": "-4526000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-150": { "value": "-23140000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-151": { "value": "-105770000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-152": { "value": "343305000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-153": { "value": "-105770000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeFromContinuingOperationsAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-154": { "value": "54154000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeFromContinuingOperationsAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-155": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeFromDiscontinuedOperationsAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-156": { "value": "289151000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeFromDiscontinuedOperationsAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-157": { "value": "-105770000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-158": { "value": "343305000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-159": { "value": "469771000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-160": { "value": "3647876000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-161": { "value": "2566276000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-162": { "value": "540000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-163": { "value": "512217000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-164": { "value": "-70033000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-165": { "value": "-67420000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-166": { "value": "-32305000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-167": { "value": "7026923000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-168": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-169": { "value": "7026923000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-170": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-171": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-172": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-173": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-174": { "value": "263087000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-175": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-176": { "value": "80218000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-177": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-178": { "value": "343305000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-179": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-180": { "value": "343305000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-181": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-182": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-183": { "value": "-442185000", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-184": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-185": { "value": "512217000", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-186": { "value": "-70033000", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-187": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-188": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-189": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-190": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-191": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-192": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-193": { "value": "106497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-194": { "value": "10614000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-195": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-196": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-197": { "value": "444815000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-198": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-199": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-200": { "value": "561926000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-201": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-202": { "value": "561926000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-203": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-204": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-205": { "value": "51217000", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-206": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-207": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-208": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-209": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-210": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-211": { "value": "51217000", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-212": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-213": { "value": "51217000", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-214": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-215": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-216": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-217": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-218": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-219": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-220": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-221": { "value": "142000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-222": { "value": "142000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-223": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-224": { "value": "142000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-225": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-226": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-227": { "value": "4014000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-228": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-229": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-230": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-231": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-232": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-233": { "value": "4014000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-234": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-235": { "value": "4014000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-236": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-237": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-238": { "value": "23865000", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-239": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-240": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-241": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-242": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-243": { "value": "-14133000", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-244": { "value": "9731000", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-245": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-246": { "value": "9731000", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-247": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-248": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-249": { "value": "-35000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-250": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-251": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-252": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-253": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-254": { "value": "864000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-255": { "value": "828000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-256": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-257": { "value": "828000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-258": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-259": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-260": { "value": "-5548000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-261": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-262": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-263": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-264": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-265": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-266": { "value": "-5548000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-267": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-268": { "value": "-5548000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-269": { "value": "469771000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-270": { "value": "3541379000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-271": { "value": "3023630000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-272": { "value": "540000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-273": { "value": "263087000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-274": { "value": "-444815000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-275": { "value": "12798000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-276": { "value": "-17166000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-277": { "value": "6849224000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-278": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-279": { "value": "6849224000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-280": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-281": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-282": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-283": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-284": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-285": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-286": { "value": "-22273000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-287": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-288": { "value": "-105770000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-289": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-290": { "value": "-105770000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-291": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-292": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-293": { "value": "181728000", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-294": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-295": { "value": "263087000", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-296": { "value": "-444815000", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-297": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-298": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-299": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-300": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-301": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:DistributionOfResults", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-302": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-303": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-304": { "value": "113350000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-305": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-306": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-307": { "value": "93673000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-308": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-309": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-310": { "value": "207023000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-311": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-312": { "value": "207023000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaid", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-313": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-314": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-315": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-316": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-317": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-318": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-319": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-320": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-321": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-322": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-323": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:PerimeterVariations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-324": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-325": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-326": { "value": "-252000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-327": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-328": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-329": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-330": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-331": { "value": "418000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-332": { "value": "166000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-333": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-334": { "value": "166000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-335": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-336": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-337": { "value": "2804000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-338": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-339": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-340": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-341": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-342": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-343": { "value": "2804000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-344": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-345": { "value": "2804000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-346": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-347": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-348": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-349": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-350": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-351": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-352": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-353": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-354": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-355": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-356": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ShareBasedPayments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-357": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-358": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-359": { "value": "-371000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-360": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-361": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-362": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-363": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-364": { "value": "1338000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-365": { "value": "967000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-366": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-367": { "value": "967000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseThroughShareBasedPaymentTransactionsStockPlanEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-368": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-369": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-370": { "value": "-1330000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-371": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-372": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-373": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-374": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-375": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-376": { "value": "-1330000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-377": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-378": { "value": "-1330000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-379": { "value": "469771000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:EUR" } }, "f-380": { "value": "3541379000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:EUR" } }, "f-381": { "value": "2729403000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:EUR" } }, "f-382": { "value": "540000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:OtherEquityHolderContributionsMember", "unit": "iso4217:EUR" } }, "f-383": { "value": "-83497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:ProfitLossAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-384": { "value": "-93673000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "mer:InterimDividendMember", "unit": "iso4217:EUR" } }, "f-385": { "value": "-9475000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:EUR" } }, "f-386": { "value": "-15410000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:EUR" } }, "f-387": { "value": "6539038000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:EUR" } }, "f-388": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:EUR" } }, "f-389": { "value": "6539038000", "decimals": -3, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-390": { "value": "227965000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivitiesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-391": { "value": "222155000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivitiesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-392": { "value": "-74992000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-393": { "value": "48156000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-394": { "value": "436354000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForReconcileProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-395": { "value": "283772000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForReconcileProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-396": { "value": "2075000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDepreciationAndAmortisationExpense", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-397": { "value": "1885000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDepreciationAndAmortisationExpense", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-398": { "value": "-335984000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForGainsLossesOnFairValueAdjustmentInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-399": { "value": "-249272000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForGainsLossesOnFairValueAdjustmentInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-400": { "value": "7410000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForProvisions", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-401": { "value": "4174000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForProvisions", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-402": { "value": "7023000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForLossesGainsOnDisposalOfNoncurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-403": { "value": "-11561000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForLossesGainsOnDisposalOfNoncurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-404": { "value": "10106000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForFinanceIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-405": { "value": "3942000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForFinanceIncome", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-406": { "value": "-127786000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForFinanceIncomeCost", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-407": { "value": "-109203000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForFinanceIncomeCost", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-408": { "value": "6232000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForFairValueGainsLosses", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-409": { "value": "-41226000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForFairValueGainsLosses", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-410": { "value": "39923000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-411": { "value": "24033000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForUndistributedProfitsOfInvestmentsAccountedForUsingEquityMethod", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-412": { "value": "-127000", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-413": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:OtherAdjustmentsToReconcileProfitLoss", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-414": { "value": "35077000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-415": { "value": "9637000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInWorkingCapital", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-416": { "value": "-6468000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-417": { "value": "-5811000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInInventories", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-418": { "value": "-12758000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAndOtherReceivables", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-419": { "value": "-1684000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInTradeAndOtherReceivables", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-420": { "value": "-9746000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInOtherCurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-421": { "value": "-2987000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForDecreaseIncreaseInOtherCurrentAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-422": { "value": "5347000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-423": { "value": "19614000", "decimals": -3, "dimensions": { "concept": "ifrs-full:AdjustmentsForIncreaseDecreaseInTradeAndOtherPayables", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-424": { "value": "-11452000", "decimals": -3, "dimensions": { "concept": "mer:AdjustmentsForDecreaseIncreaseInOtherAssetsAndLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-425": { "value": "-18769000", "decimals": -3, "dimensions": { "concept": "mer:AdjustmentsForDecreaseIncreaseInOtherAssetsAndLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-426": { "value": "98320000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-427": { "value": "100136000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-428": { "value": "109299000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-429": { "value": "100588000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-430": { "value": "8994000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-431": { "value": "1980000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-432": { "value": "-1985000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefund", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-433": { "value": "1528000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefund", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-434": { "value": "-274747000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivitiesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-435": { "value": "1184254000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivitiesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-436": { "value": "315528000", "decimals": -3, "dimensions": { "concept": "mer:PaymentsForInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-437": { "value": "997196000", "decimals": -3, "dimensions": { "concept": "mer:PaymentsForInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-438": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-439": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsUsedInObtainingControlOfSubsidiariesOrOtherBusinessesClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-440": { "value": "308172000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PurchaseOfInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-441": { "value": "370161000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PurchaseOfInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-442": { "value": "1101000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-443": { "value": "644000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-444": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ContributionsFromDiscontinuedInvestmentActivites", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-445": { "value": "-619727000", "decimals": -3, "dimensions": { "concept": "mer:ContributionsFromDiscontinuedInvestmentActivites", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-446": { "value": "5349000", "decimals": -3, "dimensions": { "concept": "mer:ContributionsToAssociatedCompaniesAndOtherNonCurrentInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-447": { "value": "5593000", "decimals": -3, "dimensions": { "concept": "mer:ContributionsToAssociatedCompaniesAndOtherNonCurrentInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-448": { "value": "906000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-449": { "value": "1071000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PurchaseOfIntangibleAssetsClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-450": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOrMaturityOfFinancialInstrumentsClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-451": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOrMaturityOfFinancialInstrumentsClassifiedAsInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-452": { "value": "40781000", "decimals": -3, "dimensions": { "concept": "mer:ProceedsFromSalesOfInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-453": { "value": "2181450000", "decimals": -3, "dimensions": { "concept": "mer:ProceedsFromSalesOfInvestments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-454": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ProceedsFromSalesOfFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-455": { "value": "1987400000", "decimals": -3, "dimensions": { "concept": "mer:ProceedsFromSalesOfFinancialAssets", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-456": { "value": "40781000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-457": { "value": "109402000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfInvestmentProperty", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-458": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:InflowsOfCashFromInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-459": { "value": "84648000", "decimals": -3, "dimensions": { "concept": "ifrs-full:InflowsOfCashFromInvestingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-460": { "value": "78556000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivitiesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-461": { "value": "-1700436000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivitiesContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-462": { "value": "198660000", "decimals": -3, "dimensions": { "concept": "mer:ProceedsAndPaymentsFromEquityInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-463": { "value": "406475000", "decimals": -3, "dimensions": { "concept": "mer:ProceedsAndPaymentsFromEquityInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-464": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:OtherEquityInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-465": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:OtherEquityInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-466": { "value": "-418000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-467": { "value": "142000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-468": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:PaymentsOfOtherEquityInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-469": { "value": "106497000", "decimals": -3, "dimensions": { "concept": "ifrs-full:PaymentsOfOtherEquityInstruments", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-470": { "value": "207023000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-471": { "value": "455429000", "decimals": -3, "dimensions": { "concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-472": { "value": "7945000", "decimals": -3, "dimensions": { "concept": "mer:CollectionOfDividendsOrRefundsOfIssuancePremiumOfAssociatedCompanies", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-473": { "value": "4162000", "decimals": -3, "dimensions": { "concept": "mer:CollectionOfDividendsOrRefundsOfIssuancePremiumOfAssociatedCompanies", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-474": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:CollectionOfDividendsFromDiscontinuedActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-475": { "value": "51144000", "decimals": -3, "dimensions": { "concept": "mer:CollectionOfDividendsFromDiscontinuedActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-476": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:ContributionsFromDiscontinuedFinancialActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-477": { "value": "100287000", "decimals": -3, "dimensions": { "concept": "mer:ContributionsFromDiscontinuedFinancialActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-478": { "value": "277216000", "decimals": -3, "dimensions": { "concept": "mer:ProceedsAndPaymentsFromFinancialLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-479": { "value": "-1293961000", "decimals": -3, "dimensions": { "concept": "mer:ProceedsAndPaymentsFromFinancialLiabilities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-480": { "value": "1021625000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-481": { "value": "81760000", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-482": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:CancellationOfInterestRateDerivatives", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-483": { "value": "24329000", "decimals": -3, "dimensions": { "concept": "mer:CancellationOfInterestRateDerivatives", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-484": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromIssueOfBondsNotesAndDebentures", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-485": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:ProceedsFromIssueOfBondsNotesAndDebentures", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-486": { "value": "1623000", "decimals": -3, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-487": { "value": "851750000", "decimals": -3, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-488": { "value": "742786000", "decimals": -3, "dimensions": { "concept": "ifrs-full:RepaymentsOfBondsNotesAndDebentures", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-489": { "value": "548300000", "decimals": -3, "dimensions": { "concept": "ifrs-full:RepaymentsOfBondsNotesAndDebentures", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-490": { "value": "31774000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseInCashAndCashEquivalentsContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-491": { "value": "-294027000", "decimals": -3, "dimensions": { "concept": "mer:IncreaseDecreaseInCashAndCashEquivalentsContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-492": { "value": "429449000", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-493": { "value": "723476000", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-494": { "value": "461223000", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-495": { "value": "429449000", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsContinuingOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-496": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivitiesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-497": { "value": "36596000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivitiesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-498": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivitiesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-499": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivitiesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-500": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivitiesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-501": { "value": "-174872000", "decimals": -3, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivitiesDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-502": { "value": "0", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-503": { "value": "-138276000", "decimals": -3, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-504": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-505": { "value": "143245000", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2022-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-506": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsIncorporatedInTheTransactionDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-507": { "value": "4969000", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsIncorporatedInTheTransactionDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-508": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2024-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-509": { "value": "0", "decimals": -3, "dimensions": { "concept": "mer:CashAndCashEquivalentsDiscontinuedOperations", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00", "unit": "iso4217:EUR" } }, "f-510": { "value": "
Merlin Properties SOCIMI, S.A. and Subsidiaries
Notes to the consolidated financial statements
for the year ended
31 December 2023
1.\u00a0 \u00a0 Nature and activity of the Group
Merlin Properties SOCIMI, S.A. (the \"Parent Company\") was incorporated in Spain on 25 March 2014
under the Corporate Enterprises Act. On 22 May 2014, the Parent requested to be included in the tax
regime for listed companies investing in the property market (REITs), effective from 25 March 2014
(date of incorporation of the Parent).
On 27 February 2017, the Parent changed its registered office from Paseo de la Castellana 42 to
Paseo de la Castellana 257, Madrid, Spain.
The Parent Company's corporate purpose, as in its bylaws, is as follows:
\u2013 The acquisition and development of urban real estate for subsequent leasing, including the
refurbishment of buildings as per the VAT Act;
\u2013 The holding of equity interests in other REITs or in other non-resident entities in Spain with the
same corporate purpose and which operate under a similar regime as that established for
REITs with respect to the mandatory profit distribution policy enforced by law or by the bylaws;
\u2013 The holding of equity interests in other resident or non-resident entities in Spain whose
corporate purpose is to acquire urban real estate for subsequent leasing, and which operate
under the same regime as that established for REITs with respect to the mandatory profit
distribution policy enforced by law or by the bylaws, and which meet the investment
requirements stipulated for these companies; and
\u2013 The holding of shares or equity interests in collective real estate investment undertakings
regulated by Law 35/2003, of 4 November, on collective investment undertakings, or any
statute that may replace this in the future.
In addition to the economic activity relating to the main corporate purpose, the Parent may also carry
on any other ancillary activities, i.e., those that generate income, which in total represents less than
20% of its income in each tax period, or those that may be considered ancillary activities by law at the
time.
The activities included in the Parent's corporate purpose may be indirectly performed, either wholly or
in part, through the ownership of shares or equity interests in companies with a similar or identical
corporate purpose.
The direct and, where applicable, indirect performance of any activities which are reserved under
special legislation are excluded. If the law prescribes the need for a professional qualification,
administrative authorisation, entry in a public register, or any other requirement for the purpose of
exercising any of the activities within the corporate purpose, no such activity can be exercised until all
the applicable professional or administrative requirements have been met.
Merlin Properties SOCIMI, S.A. and Subsidiaries (\"the Group\") engage mainly in the acquisition and
management (through leasing to third parties) of offices, industrial buildings, logistic centres, data
centres, shops and shopping centres, and they may also invest, to a lesser extent, in other assets for
lease.
On 30 June 2014, the Parent was floated on the Spanish stock market through the issuance of EUR
125,000 thousand shares, with a share premium of EUR 1,125,000 thousand. Merlin Properties
SOCIMI, S.A.'s shares/securities have been listed on the electronic trading system of the Spanish
stock exchanges since 30 June 2014.
On 15 January 2020, the Parent's shares were listed on Euronext Lisbon under a dual listing.
The Parent Company and the majority of its subsidiaries are governed by Spanish Law 11/2009, of 26
October, as amended by Spanish REITs Act (Ley 16/2012, de 27 de diciembre, por la que se regulan
las Sociedades Anonimas Cotizadas de Inversion en el Mercado Inmobiliario). Article 3 of that Act sets
out the investment requirements for these types of companies, namely:
1. At least 80% of a REIT's assets must be invested in urban real estate for leasing purposes
and/or in land to be developed for leasing purposes provided that such development starts
within three years of acquisition, along with investments in the capital or equity of other
entities referred to in section 1, Article 2 of the Act.
The value of the assets will be determined according to the average of the individual balance
sheets for each quarter of the year, whereby the REIT may opt to calculate such value by
taking into account the market value of the assets included in such balance sheets instead of
their carrying amount, in which case that value would apply to all balance sheets for the year.
For these purposes, the money and credit rights arising from the disposal of these properties
or shareholdings, if applicable, during the same year or previous years will not be calculated,
provided that, in this latter case, the reinvestment period referred to in Article 6 of this Act has
not elapsed.
2.Similarly, at least 80% of the income for the tax period for each year, excluding that arising
from the disposal of shareholdings and properties used in fulfilment of its primary corporate
purpose, once the holding period referred to below has elapsed, should come from the lease
of properties and from dividends or shares in profit from these investments.
This percentage is calculated based on consolidated profit if the company is a Parent
Company of a group, as defined in Article 42 of the Spanish Commercial Code, irrespective of
the place of residence and the obligation to prepare consolidated financial statements. Said
group will exclusively comprise the REIT and all the other entities referred to in section 1,
Article 2 of that Act.
3.The REIT's real estate assets must be leased for at least three years. The time that the
properties have been offered for lease, up to a maximum of one year, will be included for the
purposes of this calculation.
This period will be calculated:
a) In the case of properties that are included in the REIT's assets before it avails itself of
the regime, from the date of commencement of the first tax period in which the special
tax regime set forth in this Act is applied, provided that the property is leased or
offered for lease at that date. Otherwise, the following paragraph must be apply.
b) In the case of properties developed or acquired subsequently by the REIT, from the
date on which they were leased or offered for lease for the first time.
c) Shares or equity investments in entities referred to in section 1, Article 2 of the Act
must be kept in the REIT's asset base for a period of at least three years after their
acquisition or, if applicable, from the beginning of the first tax period during which the
special tax regime in the Law applies.
As in transitional provision one of Law 11/2009, of 26 December, amended by Law 16/2012, of 27
December, governing listed companies investing in the property market, these companies may opt to
apply the special tax regime under Article 13 of this Act, even when the requirements stipulated therein
are not fulfilled, under the condition that such requirements are met within two years of the date
application of the REIT tax regime is sought.
REITs are taxed at a rate of 0% for corporate income tax. However, where dividends distributed to an
equity holder owning at least 5% of the REIT's share capital are exempt from taxation or taxed below
10%, such REIT will be subject to a special charge of 19% of the dividends distributed to said equity
holder, in respect of corporate income tax. If deemed applicable, this special charge must be be paid
by the REIT within two months after the dividend distribution date.
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.
The transitional period in which the Company had to meet all requirements of this tax regime ended in
2017. 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 2023.
Consequently, the Group's consolidated financial statements and the individual financial statements of
the Parent for 2023, prepared by its Directors, which are awaiting approval by the General Meeting,
have been prepared under the REIT Regime. However, the directors of the Parent consider that the
above financial statements will be approved without any material changes.
On the other hand, the financial statements for 2023 for the companies that make up the Group are
pending preparation by their respective Directors and are expected to be approved by their respective
General Shareholders' or Partners' Meetings within the deadlines established by applicable law.
The separate and consolidated financial statements published by Merlin Properties, SOCIMI, S.A. for
2022 prepared by its directors were approved by the Directors at the Annual General Meeting on 27
April 2023.
The 2022 separate annual financial statements of the Group companies, which were prepared by their
respective directors, were approved at the respective General Meetings within the periods in
applicable tax legislation.
In view of the business activities currently performed by the Group, it does not have any environmental
liability, expenses, assets, provisions or contingencies that might be material with respect to its equity,
financial position or results. Therefore, no specific disclosures relating to environmental issues are
included in these notes to the consolidated financial statements.
The Company did not change its corporate or trading name in 2023 or 2022.
2.\u00a0 \u00a0 Basis of presentation of the consolidated financial statements
2.1 Regulatory framework
The regulatory financial reporting framework applicable to the Group consists of the following:
\u2013 The Spanish Commercial Code and all other Spanish commercial laws.
\u2013 International Financial Reporting Standards (IFRSs) as adopted by the European Union
pursuant to Regulation (EC) No 1606/2002 of the European Parliament and Law 62/2003, of
30 December, on tax, administrative and social security measures, and applicable rules and
circulars of the Spanish National Securities Market Commission (CNMV);
\u2013 Law 11/2009, of 26 October, amended by REITs Act and all other commercial law; and
\u2013 All other applicable Spanish accounting legislation.
2.2 Basis of presentation of the consolidated financial statements
The consolidated financial statements for 2023 were obtained from the accounting records and
financial statements of the Parent and consolidated companies, and have been prepared in
accordance with the regulatory financial reporting framework described in Note 2.1 and, accordingly,
they constitute a fair presentation of the Group's consolidated equity and financial position at 31
December 2023 and the consolidated results of its operations, the changes in consolidated equity and
the consolidated cash flows in the year then ended.
Given that the accounting policies and measurement bases applied in preparing the Group's
consolidated financial statements for 2023 may differ from those applied by some of the Group
companies, the necessary adjustments and reclassifications were made on consolidation to unify
these policies and bases and to make them compliant with IFRSs as adopted by the European Union
To present the various items composing the consolidated financial statements in a uniform manner,
the accounting, policies and measurement bases used by the Parent were applied to all the
consolidated companies.
2.2.1 Adoption of Financial Reporting Standards and Interpretations effective as from 1 January\u00a0 2023
In 2023 the following standards, amendments and interpretations entered into force, which, where
applicable, were used by the Group in preparing these financial statements:
Standards, Amendments and
Interpretations
Description
Mandatory application in the
financial years beginning on or
after:
Amendments to IAS 1
Disclosure of accounting policies
Amendments that require companies to
appropriately identify the material accounting
policy information that should be disclosed in the
financial statements.
01 January 2023
Amendments to IAS 8
Definition of accounting estimate
Amendments and clarifications to help entities
distinguish changes in accounting estimates.
01 January 2023
Amendments to IAS 12
Deferred tax related to assets and liabilities
arising from a single transaction
Guidelines on the accounting treatment of
deferred tax related to assets and liabilities
arising from lease transactions and
decommissioning obligations.
01 January 2023
Amendments to IFRS 17
Insurance contracts - Initial application of
IFRS 17 and IFRS 9. Comparative
information
Amendments to the transition requirements of
IFRS 17 for insurers that apply to IFRS 17 and
IFRS 9 for the first time at the same time.
01 January 2023
Amendments to IAS 12
Tax reform \u2013 Pillar 2 Model Rules
This amendment introduces a mandatory
temporary exemption to the recognition of
deferred taxes from IAS 12 in connection with
the entry into force of the Pillar 2 international tax
model. It also includes additional disclosure
requirements.
01 January 2023
IFRS 17 Insurance contracts
Replaces IFRS 4 and includes the principles of
registration, measurement, presentation and
breakdown of insurance contracts with the
objective that the entity provides relevant and
reliable information that allows users of financial
information to determine the effect that insurance
contracts have on financial statements
01 January 2023
These standards and amendments have not had a significant impact.
All accounting policies and measurement bases with a significant effect on the consolidated financial
statements were applied.
2.2.2 Standards not yet in force in 2023
The following standards were not yet in force in 2023, either because their effective date is
subsequent to the date of the consolidated financial statements or because they had not yet been
adopted by the European Union.
Standards, Amendments and
Interpretations
Description
Mandatory application in the
financial years beginning on or
after:
Amendments to IFRS 16
Liabilities for leases in a sale under
subsequent lease
This change clarifies the subsequent accounting
of lease liabilities arising in sales and
subsequent leasebacks.
01 January 2024
Amendments to IAS 1
Classification of liabilities as current and non-
current and those subject to covenants
Clarifications regarding the presentation of
liabilities as current or non-current, and in
particular those maturing conditional on
compliance with covenants.
01 January 2024
Amendments to IAS 7 and IFRS 7
Supplier financing arrangements
This amendment introduces requirements for
discounting information specific to financial
agreements with suppliers and their effects on
the Company's liabilities and cash flows,
including liquidity risk and associated risk
management.
1 January 2024 (1)
Amendments to IAS 21
Lack of convertibility
This amendment establishes an approach that
specifies when one currency can be exchanged
for another, and if it is not, the exchange rate to
be used.
1 January 2025 (1)
(1) Approved for use in the European Union
At present, the Group is assessing the impacts that the future application of standards with a
mandatory application date from 1 January\u00a0 2024 could have on the consolidated financial statements
once they come into force, although these impacts are not expected to be significant.
2.3Functional currency
These consolidated financial statements are presented in euros, since the euro is the functional
currency in the area in which the Group operates.
2.4 Comparative information
The information relating to 2022 contained in these notes to the consolidated financial statements is
presented solely for comparison purposes with similar information relating to the year ended 31
December 2023.
2.5 Responsibility for the information and use of estimates
The information in these consolidated financial statements is the responsibility of the Parent's
directors.
In the Group's consolidated financial statements for 2023 estimates were occasionally made by the
senior executives of the Group and of the consolidated companies, later ratified by the directors, to
quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These
estimates relate basically to the following:
\u2013 The market value of the Group's property assets (see Note 5.1). The Group obtained
valuations from independent experts at 31 December 2023.
\u2013 The fair value of certain financial instruments (see Notes 5.5 and 5.6).
\u2013 The assessment of provisions and contingencies (see Note 5.11)
\u2013 Management of financial risk and, in particular, of liquidity risk and climate change risk (see
Note 23).
\u2013 The recovery of deferred tax assets and the tax rate applicable to temporary differences (see
Note 5.13).
\u2013 Compliance with the requirements that govern listed real estate investment companies (see
Note 1).
Changes in estimates:
Although these estimates were made based on the best information available at 31 December 2023,
future events may require that these estimates be modified prospectively (upwards or downwards),
according to IAS 8. The effects of any change would be recognised in the corresponding consolidated
income statement.
2.6Basis of consolidation applied
All companies over which effective control is exercised by virtue of holding a majority of the voting
rights in their representation and decision-making bodies and the power to determine the company's
financial and operational policies were fully consolidated; and companies in which the Group owns
more than a 20% interest and exercises significant influence without holding a majority of the voting
rights were accounted for using the equity method (see Note 9). Likewise,a significant influence on the
investments held by the Group with a participation rate of less than 20% is considered to exist if it has
representation on the Board of these companies of the parties related to it.
A number of adjustments have been made to align the accounting principles and measurement bases
of Group companies with those of the Parent, including the application of International Financial
Reporting Standards measurement bases to all Group companies and associates.
It was not necessary to unify accounting periods since the balance sheet date of all the Group
companies and associates is 31 December of each year.
2.6.1 Subsidiaries
Subsidiaries are considered to be those companies over which the Parent directly or indirectly
exercises control through subsidiaries. The Parent Company has control over a subsidiary when it is
exposed or has rights to variable returns from its involvement with the subsidiary, and when it has the
ability to exercise its power to affect its returns. The Parent Company has power when the voting
rights are sufficient to give it the ability to direct the relevant activities of the subsidiary. The Parent
Company is exposed or has rights to variable returns from its involvement with the subsidiary when its
returns from its involvement have the potential to vary as a result of the subsidiary's performance.
The financial statements of the subsidiaries are fully consolidated with those of the Parent.
Accordingly, all material balances and effects of the transactions between consolidated companies are
eliminated on consolidation.
Any third-party interests in the Group's equity and profit or loss are recognised under \"Non-controlling
interests\" in the consolidated statement of financial position and \"Result attributable to non-controlling
interests\" in the consolidated income statement and consolidated comprehensive income statement.
The results of subsidiaries acquired or sold during the year are included in the consolidated income
statements from the effective date of acquisition or until the effective date of disposal, as appropriate.
Appendix I includes information on Group companies and associates.
2.6.2 Associates
The companies listed in Appendix I, over which Merlin Properties, SOCIMI, S.A. does not exercise
control but rather has a significant influence, are included under \"Investments accounted for using the
equity method\" in the accompanying consolidated statement of financial position and are measured
using the equity method, which consists of the value of the net assets and any goodwill of the
associate. The share of these companies' net profit or loss for the year is included under \"Share of
results of associates accounted for using the equity method\" in the accompanying consolidated
income statement.
2.6.3 Inter-group transactions
Gains or losses on transactions between consolidated companies are eliminated on consolidation and
deferred until they are realised with third parties outside the Group. The capitalised expenses of Group
work on non-current assets are recognised at production cost, and any intra-Group results are
eliminated. Receivables and payables between consolidated Group companies and any intra-Group
income and expenses were eliminated.
2.6.4 First-time consolidation differences
At the date of an acquisition, the assets and liabilities of a subsidiary are measured at their fair values
at that date. Any excess of the cost of acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. When there is an negative difference between the acquisition cost
and the fair values of the identifiable net assets acquired (i.e. a discount on acquisition), the valuations
of the net assets are reviewed and, if applicable, said difference i is credited to profit or loss in the
period in which the acquisition is made.
2.6.5 Business combinations
The Group accounts for business combinations using the purchase method. The date of acquisition is
the date on which the Group takes control of the acquiree.
The consideration paid is calculated at the date of acquisition as the sum of the fair values of the
assets delivered, the liabilities incurred and assumed and the equity instruments issued by the Group
in exchange for control of the business acquired. Acquisition costs, such as professional fees, do not
form part of the cost of the business combination, but are taken directly to the consolidated income
statement.
Where applicable, the contingent consideration is recognised at the acquisition-date fair value.
Subsequent changes to the fair value of the contingent consideration are taken to the consolidated
income statement unless this change arises within the one-year period established as the provisional
accounting period, in which case the business combination will be modified.
Goodwill is calculated as the excess of the aggregate of the consideration transferred, any non-
controlling interests, and the fair value of any previously acquired interest less the net identifiable
assets acquired.
If the acquisition cost of the identifiable net assets is less than their fair value, the related difference is
recognised in the consolidated income statement for the year.
2.6.6 Scope of consolidation
The companies composing the Merlin Group at 31 December 2023, along with information relating to
the consolidation method, are listed in Appendix I of the consolidated financial statements.
2.7 Quantitative and qualitative information on current economic and geopolitical impacts
The main risk materialized in 2023 has been the uncertainty regarding the future evolution of the
markets and, therefore, of the investment, in a context in which the risks surrounding growth prospects
are increasing, considering that both interest rates and inflation rates will not reverse appreciably in
the short term.
This increase in interest rates has directly led to a reduction in the valuations of the group's real estate
investments by affecting both the exit yields and the discount rates used by independent external
valuators.
In recent quarters, the sharp rise in global inflation has required a synchronized, very rapid, and
intense tightening of monetary policies by the world's major central banks, although the pace of
tightening has been slowing during fiscal 2023.
Thus, based on a better-than-expected performance in 2023, the outlook for 2024 is for a continuation
of current trends, with overall growth very similar to that of 2023. During 2023, overall growth has been
able to hold up considerably better than expected, at around 3% compared to the 2.3% forecast for
2023, thanks to the support of the labor market and accumulated savings. However, some of the
incipient signs of weakening activity have already been seen recently in Spain and other economies,
which could already be reflecting some of the adverse effects of the tightening of financial conditions
on macroeconomic aggregates.
On the other hand, it is true, however, that the incipient signs of a slowdown in core inflation in Spain
and other countries should still be confirmed in the coming months.
There are also other very significant materialized risks. At an international level, geopolitical
uncertainties continue with the new conflict in the Middle East, which, although in this case has not
caused a sharp increase in energy prices, as occurred in other past wars in the area, still poses a
significant risk to global trade, as the recent attacks in the Red Sea and the war in Ukraine have
stalled with uncertain future developments. Not to mention a possible (but not likely) conflict between
China and Taiwan that could increase supply chain and global trade uncertainties.
Domestically, we highlight uncertainty over the outcome of political and social tensions, which could
lead to changes in legislation and other factors that could significantly impact Spain's overall economic
growth, as well as the environment in which the group operates in Catalonia and Spain as a whole, as
indicated by various players in the Spanish real estate market.
Measurement of fair value of investment property
The Group adjusted the fair value of its real estate investments according to IAS 40. This fair value is
determined using the reference of the valuations made by independent third parties every six months
so that, at the close of each six-month period, the fair value reflects the market conditions of the
elements of the investment properties at that date.
At 31 December 2023, the valuations performed by CBRE Valuation Advisory, S.A., Jones Lang
LaSalle, S.A. and Savills Consultores Inmobiliarios, S.A. did not indicate any type of uncertainty
regarding the market value of the Group's investment property.
The measurement methodology described in Note 7 was not changed.
With respect to the data centres activity, in 2023, the Group has integrated in its fair value the assets
built and that began operating in the year as the Group\u2019s Management believe that they meet the
necessary requirements to be measured at market value.
In this regard, although those assets are in their initial phase of activity, it should be pointed out that
assumptions of growth in occupancies, rent and standardised margins in mature markets have been
considered for these assets, as well as the rate of progress of the capacity expansion works.
Therefore, the valuation of those assets is highly sensitive to the achievement of the assumptions
considered, and there may be significant changes in value in case of deviations on them.
Meanwhile, the details of main assumptions used in the appraisals at December 2023 and December
2022 based on the nature of the assets and the sensitivities to increases and decreases of those
variables are included in Note 7.
Liquidity risk
In the opinion of the Parent's directors, the current economic situation of high inflation and interest rate
increases by the central banks may have a significant impact on the overall financial position of the
companies, which could be divided into the liquidity risk of the companies or groups and the liquidity
risk of customers (credit risk).
In this context, at 31 December 2023, the Group had a leverage ratio, understood as a debt to the fair
value of the assets (LTV) of 35% (this ratio is obtained from dividing the Company's net debt between
the fair value of the assets including transaction costs) and cash and cash equivalents (including
treasury shares) of EUR 476,633 thousand. There are no relevant debt maturities of the Group in the
next 12 months. The Group has a liquidity position, including the corporate credit line and undrawn
borrowings, of EUR 1,309 million (see Note 14).
The Parent's Directors and Management Team are constantly monitoring the evolution of the current
situation and the effects it may have on the credit market, and they believe that the Group's situation
at 31 December 2023 ensures that it will be solvent to fulfil the obligations on the balance sheet at 31
December 2023, and there is no material uncertainty about the continuity of the Group's operations.
Credit risk
With respect to the application of the simplified approach of impairment and credit risk, and also taking
into consideration other differential factors of the Group's portfolio of tenants and the characteristics of
their leases, and the amounts collected thus far, the Group has concluded that the increased credit
risk of its customers has not been significantly affected, this risk falling below 1% of turnover.
In relation to its other financial assets exposed to credit risk, which mainly correspond to loans to
associates and third parties, the Directors of the Parent have determined that there has not been a
significant increase in the risk, considering the measures agreed in some cases with tenants and the
long-term expectations based on the historical experience with those entities, which make it possible
to estimate that the credit risk will remain in line with the previous year.
3.\u00a0 \u00a0 Changes in the scope of consolidation
2023
The following changes in the scope of consolidation took place in 2023:
On 7 November 2023, the Group acquired 100% of the shares representing the share capital of Merlin
Edged, S.L.U. for EUR 3 thousand. At the date of preparation of these Consolidated Financial
Statements, this company was inactive.
On 13 January 2023, the Group acquired 7.32% of the shares representing the share capital of
Moregal Hotels, S.L. for EUR 1,585 thousand. The company owns land for tertiary use in the city of
Malaga.
In 2023, Metroparque, S.A. was fully split up with the winding-up of the company Metroparque, S.A.
through the en bloc transfer of its Shopping Centre business to Merlin Retail, S.L. and its Offices
business to Merlin Oficinas, S.L. (both wholly owned by Merlin Properties SOCIMI, S.A.). This
transaction had no effect on the Consolidated Financial Statements.
During 2023, the Group increased its stake in Silicius Real Estate, SOCIMI, S.A. to 17.91% (17.80%
previously) due to the distribution of a dividend by means of promissory notes convertible into shares
amounting to EUR 1,554 thousand.
2022
The following changes in the scope of consolidation took place in 2022.
-Departure of Tree Inversiones Inmobiliarias SOCIMI, S.A. (\"Tree\") from the scope
(discontinuation of the Net Lease branch of activity)
On 1 February 2022, the Group sent BBVA a communication containing, inter alia, a proposal to sell
100% of the shares of Tree Inversiones Inmobiliarias SOCIMI, S.A. In accordance with BBVA's right of
first refusal, on 1 April 2022 the Group received a communication from BBVA regarding its acceptance
of the proposed sale of Tree, which was subject, inter alia, to the approval of the Spanish National
Markets and Competition Commission (CNMC). On 1 June 2022, the CNMC authorised the
transaction and the sale was finalised on 15 June 2022.
Based on the above, the sale price of Tree Inversiones Inmobiliarias SOCIMI, S.A. amounted to EUR
1,987,400 thousand, which after early settlement of the debt associated with Tree and the transaction
costs, generating a gain at a consolidated level of EUR 215,452 thousand. In addition, Tree
Inversiones Inmobiliarias Socimi, S.A. has contributed EUR 6,279 thousand to the results up to the
date of the sale, after considering the effects of the liquidation of derivative financial instruments that it
held, and those that it had due to the application of IFRS 9 in past refinancings in previous financial
years.
Prior to the sale, on 21 March 2022, Tree Inversiones Inmobiliarias SOCIMI, S.A. agreed to distribute
a dividend of EUR 53,908 thousand to Merlin Properties SOCIMI, S.A. charged to profit for 2021.
For this reason, this Net Lease branch of activity was presented as discontinued in these consolidated
financial statements as of 31 December 2022.
The impact that the sale of Tree Inversiones Inmobiliarias SOCIMI, S.A. had on the consolidated
income statement at 31 December 2022 (in thousands of euros) is shown below:
Item
Net Lease
Profit/(Loss) after tax generated prior to
disposal
6,279
Loss from disposal
215,452
Profit for the year from discontinued
operations net of tax
221,731
The income, expenses and profit/(loss) before tax for the discontinued operations recognised in the
consolidated income statement are as follows (in thousands of euros):
Income statement
2022 (*)
Net Income (Note 18.a)
38,104
Other operating expenses (Note 18.b)
(1,231)
Impairment and gains or losses on disposal of non-current assets
101
Changes in value of investment property (Note 7)
-
PROFIT/(LOSS) FROM OPERATIONS
36,974
Finance costs (Note 18.d)
(53,852)
Changes in fair value in financial instruments (Notes 13.7 and 14.3)
23,157
FINANCIAL PROFIT/(LOSS)
(30,695)
PROFIT BEFORE TAX ON DISCONTINUED OPERATIONS
6,279
Income tax (Note 17)
-
PROFIT/(LOSS) FOR THE PERIOD CORRESPONDING TO DISCONTINUED
OPERATIONS
6,279
(*) 5-month and 14-day period
The net cash flows attributable to the operating, investment and financing activities of the discontinued
activities are as follows (in thousands of euros):
2022 (*)
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES:
36,596
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES:
-
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES:
(174,872)
(*) 5-month and 14-day period
-Entrants in the scope of consolidation
On 27 July 2022, Slack Tailwind Systems, S.L.U and Slow Rise Spain, S.L.U. entered into the scope
of consolidation. The Parent Company acquired 100% of the shares of both companies for EUR 3
thousand each. Subsequently, on 29 July and 15 September 2022, these companies have purchased,
respectively, part of the Serantes building in Madrid (see Note 7), this asset being their most relevant
contribution to the consolidated financial statements as of 31 December 2022.
On 3 August 2022, the Parent acquired 100% of the share capital of Generous Profile Unipessoal Lda.
for EUR 9 thousand. Subsequently, on 12 August 2022, Generous Profile Unipessoal Lda acquired the
Liberdade 195 building (see Note 7), and this asset was the most significant contribution to the
consolidated financial statements at 31 December 2022. In 2023, Generous Profile Unipessoal Lda.
has changed its corporate name to MPLIB \u2013 Investimentos Imobili\u00e1rios, Unipessoal Lda.
-Liquidation of PK Hoteles 22, S.L.
In 2022 the shareholders at the General Meeting of PK Hoteles 22, S.L. unanimously resolved to
liquidate the company, which is 32.50% owned by the Group. This transaction generated EUR 289
thousand in losses in the 2022 income statement.
4.\u00a0 \u00a0 Distribution of the Parent's profit
The distribution of profit proposed by the Parent's directors for approval by its shareholders at the
Annual General Meeting is as follows:
Thousands of euros
Profit/(Loss) for the year
97,610
Distribution:
To legal reserves
-
To offset interim dividend
93,673
Dividends
3,937
To voluntary reserves
-
Other dividends distributed
On 16 November 2023, the Parent's Board approved the distribution of an interim dividend charged to
earnings for 2023 in the amount of EUR 93,673 thousand.
On 27 April 2023, the General Shareholders Meeting approved the distribution of a supplementary
dividend charged to profit for 2022 in the amount of EUR 113,350 thousand.
In the last five years, the Company distributed the following dividends and Share Premium refunds:
2023
2022
2021
2020
2019
Shareholder remuneration
207,023
561,926
210,099
68,518
232,347
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 2023, calculated based on
appraisals performed by JLL and CBRE, independent appraisers not related to the Group, amounted
to EUR 10,566,124 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 2023, 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
2023.
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 2023, advance payments
amounting to EUR 18,682 thousand that are recorded in the heading \"Trade and other payables\" 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 2023, 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.
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.
Following the sale of the Net Lease branch of activity (see Note 3), the Group no longer holds income
derivatives.
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
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
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:
\u2013100% of the profit from dividends or shares in profits distributed by the entities referred to in
section 1, Article 2 of Law 11/2009.
\u2013At 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.
\u2013At 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:
\u2013Provisions: 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
\u2013Contingent 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 offices,
shopping centres, logistics units and data centres. 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.
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 communication of 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.
In this respect, the Group has recognised an expense of EUR 2,804 thousand in 2023 (EUR 2,804
thousand in 2022) with a balancing entry to reserves.
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 2023, 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:
\u2013 Assets 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.
\u2013 Liabilities 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.
\u2013 Derivative financial instruments not held for trading are classified as current or non-current
according to the period of maturity or periodic settlement.
5.17 Financial information by branch activity
In relation to IFRS 8 on operating segments, the Group\u2019s Management identifies them internally under
the definition of branch of activity, an aspect to be considered when reading the attached consolidated
financial statements and related financial information.
The Group groups its branches of activity based on the nature of the assets in the various areas in
which it implements its strategy. In this sense, each branch of activity 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 of them, 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.
6.\u00a0 \u00a0 Financial information by branch of activities
a) Criteria
Group management has segmented its activities into the branches of activity detailed below according
to the type of assets acquired and managed:
\u2013Office buildings
\u2013Shopping centres
\u2013Logistics assets
\u2013\u00a0 \u00a0 Data centers
\u2013Others: Assets not included in the above branches of activity, which mainly correspond to 3 hotels
(which are part of other buildings corresponding to the offices and shopping centre branches of
activity), non-strategic land 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 branches of
activity (prepared using a management approach) and the Group's consolidated financial statements.
The profits of each branch of activity, and each asset within each of them, are used to measure
performance as the Group considers this information to be the most relevant when evaluating the
results of the branches of activity compared with other groups operating in the same businesses.
The Group performed its business activities in Spain and Portugal in the year ended 31 December
2023.
In fiscal year 2023, the Group has identified the management of Data Center assets as a branch of
activity, an aspect to be considered in order to compare the information with the previous fiscal year in
which the aforementioned branch of activity was under development.
b) Basis and methodology for information by branch of activity
The information by branch of activity 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 branches of activity follow the same accounting policies as the Group,
which are described in Note 5.
The ordinary income of the branch of activity relates to ordinary revenue directly attributable to the
branch of activity plus the relevant proportion of the Group\u2019s general income that can be allocated on a
reasonable basis to that segment. The ordinary income of each branch of activity does not include
interest or dividend income, gains on the disposal of investment property, debt recoveries or
cancellation.
The expenses of each branch of activity 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 branch of activity.
The profit or loss of the branch of activity is presented before any adjustment for non-controlling
interests.
The assets and liabilities of the branches of activity are those directly related to each branch of
activity'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.
Branch of activities information
The information by branch of activity at 31 December 2023 is presented below:
Thousands of euros
2023
Office
buildings
Shopping
centres
Logistics
Data
Centers
Other
Corporate
Unit
Group total
Revenue from non-Group customers
Rental income
239,411
116,129
77,399
539
13,729
-
447,207
Services rendered
11,721
2,075
-
2,499
-
1,277
17,572
Net income
251,132
118,204
77,399
3,038
13,729
1,277
464,779
Other operating income
3,643
252
167
-
1
691
4,754
Staff costs
(6,958)
(6,672)
(2,024)
(295)
-
(18,896)
(34,845)
Operating expenses
(30,688)
(14,842)
(2,259)
(5,377)
(3,463)
(16,696)
(73,325)
Gains or losses on disposals of non-current
assets
95
(10,376)
399
-
2,859
-
(7,023)
Depreciation and amortisation charge
(642)
-
-
-
(12)
(1,421)
(2,075)
Allocation of grants relating to non-
financial assets and others
36
-
-
-
-
-
36
Allocation/Excess provisions
-
-
-
(1,212)
-
(6,198)
(7,410)
Changes in fair value of investment
property
(307,108)
(125,127)
51,150
92,081
(46,980)
-
(335,984)
Profit/(Loss) from operations
(90,490)
(38,561)
124,832
88,235
(33,866)
(41,243)
8,907
Changes in fair value of financial
instruments - Other
-
-
(660)
-
-
(5,572)
(6,232)
Finance income
-
6
-
-
-
10,100
10,106
Finance expenses
(4,050)
-
(8,708)
(8,885)
(1,606)
(104,537)
(127,786)
Gains on disposal of financial instruments
-
-
-
-
-
-
-
Share of results of companies accounted for
using the equity method
-
-
-
-
-
39,923
39,923
Translation differences
-
-
-
-
-
90
90
Profit/(Loss) before tax
(94,540)
(38,555)
115,464
79,350
(35,472)
(101,239)
(74,992)
Income tax
(1,328)
(4,307)
(1,904)
-
-
(966)
(8,505)
Profit/(Loss) for the year
(95,868)
(42,862)
113,560
79,350
(35,472)
(102,205)
(83,497)
Thousands of euros
At 31 December 2023
Office
buildings
Shopping
centres
Logistics
Data
Centers
Other
Corporate
Unit
Group total
Investment property
6,289,822
2,005,848
1,648,314
350,177
345,602
-
10,639,763
Non-current financial assets-
27,540
25,329
12,827
261
2,150
134,002
202,109
Derivatives
-
-
3,429
-
-
-
3,429
Other financial assets
27,540
25,329
9,398
261
2,150
134,002
198,680
Deferred tax assets
768
22
3,492
-
-
73,291
77,573
Other non-current assets
4,554
1
2
-
1,559
539,884
546,000
Non-current assets
6,322,684
2,031,200
1,664,635
350,438
349,311
747,177
11,465,445
Trade receivables
19,850
17,471
7,888
3,819
4,033
9,537
62,598
Other current financial assets
111
196
(1)
-
63
4,621
4,990
Other current assets
76,197
55,628
9,071
9,222
72
382,188
532,378
Current assets
96,158
73,295
16,958
13,041
4,168
396,346
599,966
Total assets
6,418,842
2,104,495
1,681,593
363,479
353,479
1,143,523
12,065,411
Non-current bank borrowings and
debenture issues
285,179
-
68,901
-
75,670
4,077,318
4,507,068
Other non-current liabilities
344,640
253,165
94,596
10,205
19,039
82,988
804,633
Non-current liabilities
629,819
253,165
163,497
10,205
94,709
4,160,306
5,311,701
Current liabilities
54,832
29,980
18,742
18,090
10,746
82,282
214,672
Total liabilities
684,651
283,145
182,239
28,295
105,455
4,242,588
5,526,373
The information by branch of activity at 31 December 2022 is presented below:
Thousands of euros
2022 (*)
Office
buildings
Shopping
centres
Logistics
Data
Centers
Other
Corporate
Unit
Group
total
Revenue from non-Group customers
Rental income
230,438
114,481
70,877
5
12,353
-
428,154
Services rendered
7,862
1,471
-
-
-
1,551
10,884
Net income
238,300
115,952
70,877
5
12,353
1,551
439,038
Other operating income
934
318
356
-
2
1,040
2,650
Staff costs
(6,962)
(6,880)
(2,449)
(302)
-
(23,080)
(39,673)
Operating expenses
(32,649)
(17,872)
(2,682)
(214)
(3,509)
(16,892)
(73,818)
Gains or losses on disposals of non-current
assets
3,985
544
(13)
-
7,045
-
11,561
Depreciation and amortisation charge
(548)
-
-
-
(13)
(1,324)
(1,885)
Allocation/Excess provisions
-
-
-
-
-
(160)
(160)
Changes in fair value of investment
property
(149,149)
(81,387)
(16,374)
-
(2,362)
-
(249,272)
Profit/(Loss) from operations
53,911
10,675
49,715
(511)
13,516
(38,865)
88,441
Changes in fair value of financial
instruments - Other
-
-
6,965
-
-
34,261
41,226
Finance income
-
-
-
-
-
3,942
3,942
Finance expenses
(295)
-
(4,546)
-
-
(104,362)
(109,203)
Gains on disposal of financial instruments
-
-
-
-
-
(283)
(283)
Share of results of companies accounted for
using the equity method
-
-
-
-
-
24,033
24,033
Profit/(Loss) before tax
53,616
10,675
52,134
(511)
13,516
(81,274)
48,156
Income tax
(3,316)
1,174
(253)
-
-
(4,405)
(6,800)
Profit/(Loss) for the year
50,300
11,849
51,881
(511)
13,516
(85,679)
41,356
(*) Restated information to include Data Centers branch of activity
Thousands of euros
At 31 December 2022 (*)
Office
buildings
Shopping
centres
Logistics
Data Centers
Other
Corporate
Unit
Group total
Investment property
6,509,874
2,134,503
1,558,011
114,441
397,371
-
10,714,200
Non-current financial assets-
25,990
29,384
14,668
-
394
140,611
211,048
Derivatives
-
-
6,084
-
-
12,798
18,882
Other financial assets
25,990
29,384
8,584
-
394
127,813
192,166
Deferred tax assets
908
78
3,580
-
-
74,080
78,646
Other non-current assets
4,200
18
-
-
1,454
502,697
508,369
Non-current assets
6,540,972
2,163,983
1,576,259
114,441
399,219
717,388
11,512,263
Trade receivables
13,838
15,592
7,273
24
3,487
9,626
49,840
Other current financial assets
111
181
(1)
-
3,748
(1,080)
2,960
Other current assets
38,932
31,750
20,316
103
1,800
393,520
486,420
Current assets
52,881
47,523
27,588
127
9,035
402,066
539,220
Total assets
6,593,853
2,211,506
1,603,847
114,568
408,254
1,119,454
12,051,483
Non-current bank borrowings and
debenture issues
13,196
-
68,428
-
-
3,387,577
3,469,200
Other non-current liabilities
336,026
222,558
86,258
212
25,758
111,734
782,547
Non-current liabilities
349,222
222,558
154,686
212
25,758
3,499,311
4,251,747
Current liabilities
48,861
31,526
12,128
17,711
8,518
831,768
950,512
Total liabilities
398,083
254,084
166,814
17,923
34,276
4,331,079
5,202,259
(*) Restated information to include Data Centers branch of activity
C) Geographical segment reporting
When presenting the information by geographic area, branch of activity revenue is grouped according
to the geographical location of the assets. Branch of activity 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:
2023
Thousands of euros
Rental income
%
Investment
property
%
Madrid
208,681
48%
5,799,909
54%
Catalonia
68,073
14%
1,498,010
14%
Andalusia
21,600
5%
303,354
3%
Valencia
17,713
4%
282,167
3%
Galicia
17,895
4%
328,731
3%
Castille-La Mancha
26,833
6%
662,635
6%
Basque Country
12,937
3%
362,225
3%
Rest of Spain
9,602
2%
171,101
2%
Portugal
63,873
14%
1,231,631
12%
Total
447,207
100%
10,639,763
100%
2022
Thousands of euros
Rental income
%
Investment
property
%
Madrid
208,192
50%
5,954,945
54%
Catalonia
64,914
13%
1,522,841
14%
Andalusia
19,951
5%
298,314
3%
Valencia
16,662
4%
294,782
3%
Galicia
16,823
4%
302,041
3%
Castille-La Mancha
23,757
6%
631,589
6%
Basque Country
11,926
3%
273,138
3%
Rest of Spain
8,755
2%
196,049
2%
Portugal
57,174
13%
1,240,501
12%
Total
428,154
100%
10,714,200
100%
D) Main customers
The table below lists the most important tenants as of 31 December 2023 and 2022, and the primary
characteristics of each of them:
2023
Position
Name
Type
% of total
%
accumulated
Maturity
of Income
1
Endesa
Offices
4.2%
4.2%
2024-2030
2
Inditex
Shopping centres /
Logistics
3.3%
7.5%
2024-2025
3
Comunidad de Madrid
Offices
2.5%
10.0%
2024-2031
4
T\u00e9cnicas Reunidas
Offices
2.4%
12.4%
2025
5
Hotusa
Hotels
1.6%
14.0%
2028
6
PWC
Offices
1.5%
15.5%
2028
7
BPI
Offices
1.5%
17.0%
2031
8
Logista
Logistics
1.4%
18.4%
2025-2040
9
Indra
Offices
1.3%
19.7%
2030
10
IBM
Offices
1.3%
21.0%
2030
2022
Position
Name
Type
% of total
%
accumulated
Maturity
of Income
1
Endesa
Offices
4.2%
4.2%
2024-2030
2
Inditex
Shopping centres /
Logistics
3.3%
7.5%
2023-2025
3
Comunidad de Madrid
Offices
2.5%
10.0%
2023-2031
4
T\u00e9cnicas Reunidas
Offices
2.4%
12.4%
2025
5
PwC
Offices
1.8%
14.2%
2028
6
Hotusa
Hotels
1.5%
15.7%
2028
7
BPI
Offices
1.5%
17.2%
2031
8
Indra
Offices
1.5%
18.7%
2024
9
FNAC
Shopping centres
1.4%
20.1%
2023-2025
10
XPO
Logistics
1.3%
21.4%
2024-2025
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 2023 and 2022 were as follows:
\u00a0
Thousands of euros
2023
2022
Beginning balance
10,714,200
12,297,257
Additions for the financial year
308,172
370,161
Disposals
(46,625)
(1,703,946)
Changes in value of investment property
(335,984)
(249,272)
Closing balance
10,639,763
10,714,200
Investment property is recognised at fair value. Expense recognised in the 2023 consolidated income
statement from measuring investment property at fair value amounted to EUR 335,984 thousand
(EUR 249,272 thousand in 2022).
Investment property comprises property assets mainly in the offices, shopping centres, logistics and
data centres branches of activity.
Additions and assets acquired in the 2023 and 2022 financial years are as follows:
Thousands of euros
2023
2022
Purchases
23,756
144,077
Offices
-
136,861
Shopping centres
15,451
-
Logistics
8,305
7,216
Additions
284,416
226,084
308,172
370,161
The acquisitions made during 2023 relate to the purchase of a space next to the Marineda Shopping
Centre in La Coru\u00f1a, premises in a shopping centre and the acquisition of land for logistics use in
Valencia.
The additions for 2023 mainly relate to the development of data centres, as well as 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 Plaza Ruiz Picasso.
Derecognitions in 2023 mainly relate to the sale of two shopping centres in Barcelona and Valencia,
as well as a logistics warehouse in Zaragoza. The accounting result of those derecognitions was a
loss of EUR 9,995 thousand recognised under \u201cGain/(loss) on disposal of assets\u201d in the accompanying
consolidated income statement.
The additions made in 2022 related 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 divestments in 2022 related 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/(loss) on disposal of assets' in
the accompanying consolidated income statement.
At 31 December 2023, the Group had real estate assets amounting to EUR 1,046,328 thousand (EUR
265,443 thousand in 2022) to guarantee various loans. At 31 December 2023, the balance of those
loans amounted to EUR 433,364 thousand (EUR 84,987 thousand at the end of 2022) (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 2023 or 2022.
All properties included under \"Investment property\" were insured as of 31 December 2023.
At 31 December 2023, the Group had no firm purchase commitments for investment property, without
considering the investments committed in constructions and improvements.
In 2023 and 2022 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 2023 and 2022, 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 10,566,124 thousand (EUR 10,558,975 in 2022). This measurement does not include the value
of the use rights recognised by the application of IFRS 16 for EUR 51,903 thousand (EUR 37,152
thousand in 2022) 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 21,736 thousand (EUR 118,072
thousand in 2022). 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 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. In the case of data centres, 7-year
projections were used, which is the period considered for the stabilisation of the market. 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 2023 and 2022
were as follows:
Thousands of euros
2023
2022
Valuation services
651
459
Total
651
459
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:
2023
Thousands of euros
Total
Level 1
Level 2
Level 3
Fair value measurement
Investment property:
Offices
Land
2,172,572
-
-
2,172,572
Buildings
4,117,250
-
-
4,117,250
Shopping centres
Land
379,805
-
-
379,805
Buildings
1,626,043
-
-
1,626,043
Logistics-
Land
405,689
-
-
405,689
Buildings
1,242,625
-
-
1,242,625
Data Centers-
Land
31,852
-
-
31,852
Buildings
318,325
-
-
318,325
Other-
Land
148,680
-
-
148,680
Buildings
196,922
-
-
196,922
Total assets measured at fair value
10,639,763
-
-
10,639,763
2022
Thousands of euros
Total
Level 1
Level 2
Level 3
Fair value measurement
Investment property:
Offices
Land
2,238,869
-
-
2,238,869
Buildings
4,271,005
-
-
4,271,005
Shopping centres
Land
433,159
-
-
433,159
Buildings
1,701,344
-
-
1,701,344
Logistics-
Land
374,180
-
-
374,180
Buildings
1,183,830
-
-
1,183,830
Data Centers (*) -
Land
21,889
-
-
21,889
Buildings
92,552
-
-
92,552
Other-
Land
175,439
-
-
175,439
Buildings
221,933
-
-
221,933
Total assets measured at fair value
10,714,200
-
-
10,714,200
(*) Valued at cost
No assets were reclassified from one level to another during 2023 or 2022. At 31 December 2023 and
2022, the gross surface areas and occupancy rates of the assets were as follows:
2023
Square metres (*)
Occupancy
rate (%)
Gross leasable area
Comm. of
Madrid
Catalonia
Comm. of
Valencia
Galicia
Andalusia
Basque
Country
Castille-
La
Mancha
Rest of
Spain
Portugal
Total
Offices
812,916
205,506
-
-
15,078
-
-
-
123,832
1,157,332
92.5%
Shopping
centres
74,606
31,905
49,897
118,105
37,956
25,922
-
32,869
60,089
431,349
96,2% (**)
Logistics
330,375
132,100
61,604
-
139,218
99,491
633,841
21,579
45,171
1,463,379
99.0%
Data Centers
22,508
22,131
-
-
-
17,600
-
-
-
62,239
n.a. (1)
Other
38,161
16,472
-
5,898
-
46
-
-
-
60,577
98.0%
Total surface
area
1,278,566
408,114
111,501
124,003
192,252
143,059
633,841
54,448
229,092
3,174,876
96.2%
% weight
40.3%
12.9%
3.5%
3.9%
6.1%
4.5%
20.0%
1.7%
7.2%
100.0%
(*) Not including square metres of ongoing projects or land.
(**) Excluding vacant units acquired for refurbishment.
(1) The market standard for data centres is to measure occupancy on the basis of processing capacity, and not in relation to
leasable surface area. At 31 December 2023, the Group's 3 data centres currently in operation had a processing available
capacity of 9 MW, with 6.2 MW (68.9%) committed at that date. The Group considers as committed capacity the capacity
physically occupied at the reference date or with respect to which, without being occupied at that date, there are contractual
commitments reserving that capacity to ensure the future growth of the Group's customers.
2022
Square metres (*)
Occupancy
rate (%)
Gross leasable area
Comm. of
Madrid
Catalonia
Comm. of
Valencia
Galicia
Andalusia
Basque
Country
Castille-
La
Mancha
Rest of
Spain
Portugal
Total
Offices
814,938
205,312
-
-
15,078
-
-
-
137,547
1,172,875
92.5%
Shopping
centres
75,685
64,096
64,352
100,577
37,956
25,922
-
32,758
60,049
461,395
95.0%
Logistics
330,375
132,100
61,604
-
138,777
99,491
633,926
42,343
45,171
1,483,787
97.0%
Data Centers
-
-
-
-
-
-
-
-
-
-
n.a. (1)
Other
38,043
20,540
-
5,898
-
46
-
-
-
64,527
97.3%
Total surface
area
1,259,041
422,048
125,956
106,475
191,811
125,459
633,926
75,101
242,767
3,182,584
95.1%
% weight
39,6%
13,3%
4,0%
3,3%
6,0%
3,9%
19,9%
2,4%
7,6%
100,0%
(*) Not including square metres of ongoing projects or land
(1) During 2022, the Group's data centres were under construction.
Hypotheses used in the valuation
In relation to the determination of the fair value of investment property, the significant non-observable
input data used in the measurement of fair value corresponds to the rental income, the futureexit
yields and the rate used to discount the cash flows of the projections.
The quantitative information on the significant non-observable input data used in measuring fair value
is shown below.
2023
Exit yield
Discount rate
Offices
3.70% - 7.35%
5.20% - 10.10%
Shopping centres
3,92% - 7,75%
6.25% - 9.75%
Logistics
4.75% - 6.25%
6.25% - 9.50%
Data Centers
5.50% - 6.25%
12.00%
Other
4.50% - 7.50%
5.25% - 16.00%
2022
Exit yield
Discount rate
Offices
3.15% - 7.25%
5.15% - 10.25%
Shopping centres
3.75% - 8.50%
6.25% - 11.50%
Logistics
4.25% - 6.75%
5.50% - 15.00%
Data Centers (*)
n.a.
n.a.
Other
4.00% - 7.75%
4.00% - 15.50%
(*) Valued at cost in 2022
Market rents: the amounts per square metre used in the valuation have ranged between 61.79 and
2.41 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 2023
Thousands of euros
31.12.2023
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in IRR
(206,813)
(408,786)
(798,719)
(206,813)
(408,786)
(798,719)
Decrease in IRR
211,785
428,677
878,346
211,785
428,677
878,346
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
31.12.2022
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in IRR
(209,672)
(414,387)
(809,469)
(209,672)
(414,387)
(809,469)
Decrease in IRR
214,765
434,763
891,041
214,765
434,763
891,041
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
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 2023
Thousands of euros
Assets
Consolidated profit/(loss) before tax
1%
5%
10%
1%
5%
10%
Increase in rents
83,131
415,654
831,308
83,131
415,654
831,308
Decrease in rents
(83,131)
(415,654)
(831,308)
(83,131)
(415,654)
(831,308)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
Assets
Consolidated profit/(loss) before tax
1%
5%
10%
1%
5%
10%
Increase in rents
84,038
420,192
840,385
84,038
420,192
840,385
Decrease in rents
(84,038)
(420,192)
(840,385)
(84,038)
(420,192)
(840,385)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
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 2023
Thousands of euros
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in exit yield
(293,554)
(562,416)
(1,037,559)
(293,554)
(562,416)
(1,037,559)
Decrease in exit yield
321,810
676,164
1,504,467
321,810
676,164
1,504,467
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in exit yield
(324,196)
(619,262)
(1,136,413)
(324,196)
(619,262)
(1,136,413)
Decrease in exit yield
357,865
754,929
1,695,592
357,865
754,929
1,695,592
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Details of the \"Change in value of investment property\" in the accompanying consolidated income
statement are as follows:
Type of asset
Thousands of euros
2023
2022
Offices
(307,108)
(149,149)
Shopping centres
(125,127)
(81,387)
Logistics
51,150
(16,374)
Data Centers
92,081
-
Other
(46,980)
(2,362)
(335,984)
(249,272)
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 2023, the Group recorded an expense of EUR 751 thousand (EUR 705 thousand in 2022)
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 2023 and 2022 were as follows:
% occupancy
2023
2022
Offices
92.5
92.5
Shopping centres
96.2
95.0
Logistics
99.0
97,0
Data Centers
68.9 (1)
n.a. (2)
Other
98.0
97.3
(1) The market standard for data centres is to measure occupancy on the basis of processing
capacity, and not in relation to leasable surface area. At 31 December 2023, the Group's 3 data
centres currently in operation had a processing available capacity of 9 MW, with 6.2 MW (68.9%)
committed at that date. The Group considers as committed capacity the capacity physically occupied
at the reference date or with respect to which, without being occupied at that date, there are
contractual commitments reserving that capacity to ensure the future growth of the Group's
customers.
(2) During 2022, the Group's data centres were under construction.
At 31 December 2023 and 2022, gross lease income and the fair value of each of the assets were as
follows:
2023
Thousands of euros
Rent
Value
Gross (a)
Fair
Offices
254,831
6,289,822
Shopping centres
125,776
2,005,848
Logistics
80,273
1,648,314
Data Centers
539
350,177
Other
14,196
345,602
Total
475,615
10,639,763
(a)\u00a0 The gross income indicated in the table above refers to income from leases (Note 6) of the properties\u00a0
accrued since their incorporation into the Group, without taking into account credits or rent straight-lining.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
2022
Thousands of euros
Rent
Value
Gross (a)
Fair
Offices
242,716
6,509,875
Shopping centres
123,840
2,134,503
Logistics
73,558
1,558,010
Data Centers (b)
5
114,441
Other
12,723
397,371
Total
452,842
10,714,200
(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.
(b) Valued at cost
The leases agreements 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 2023 and 2022, the future minimum lease payments under non-cancellable operating
leases (calculated at the nominal amount) are as follows:
Thousands of euros
2023
2022
Up to a year
443,771
384,244
1 to 5 years
893,441
759,723
Over 5 years
202,804
186,838
Total
1,540,016
1,330,805
In 2023, the Group recorded EUR 8,224 thousand (EUR 6,707 thousand in 2022) due to lease income
relating variable lease payments not benchmarked against a rate or index.
9.\u00a0 \u00a0 Investments accounted for using the equity method
The changes in 2023 and 2022 in investments in companies accounted for using the equity method
are as follows:
Thousands of euros
2023
2022
Beginning balance
500,300
482,784
Additions made during the year
6,678
1,824
Payments made in the financial year
-
(4,189)
Transfers
(110)
-
Dividends
(9,503)
(4,152)
Profit/(Loss) for the year
39,923
24,033
Closing balance
537,288
500,300
In relation to investments accounted for using the equity method, the additions in 2023 related mainly
to the subscription of the capital increase carried out by Crea Madrid Nuevo Norte, S.A., which led to
an increase of EUR 3,040 thousand, the distribution in shares of a dividend of Silicius Real Estate
SOCIMI, S.A. amounting to EUR 1,554 thousand and the purchase of 7.32% of Moregal Hotels, S.L.\u00a0
(Note 3) for EUR 1,585 thousand.
The remaining change in 2023 corresponded to the result obtained by the investees.
The investee Silicius Real Estate SOCIMI, S.A. holds a purchase option on its shares held by the
Group, the fair value of which is recognised in \"Other current financial liabilities\". Its final settlement
will not be in cash but will affect, where appropriate, the adjustment of the final value of the ownership
interest (see Note 14.3).
In relation to the shares held using the equity method, the additions in 2022 related 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 related 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 change in 2022 corresponded to the result obtained by the investees.
A breakdown of investments in companies accounted for using the equity method and the profit or loss
attributable to the Group at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Associate
Line of business
Registered
office
Percentage of
ownership
Investment
Profit/(loss)
attributed to
the Group
Crea Madrid Nuevo Norte,
S.A
\"Operaci\u00f3n Chamart\u00edn\" construction
development and property operation
Madrid
14.46%
175,269
(565)
Silicius Real Estate
SOCIMI, S.A.
Sale and lease of property
Madrid
17.91%
93,089
(3,264)
Centro Intermodal de
Log\u00edstica, S.A.
Management of the port concession
of the logistics activity area
Barcelona
48.50%
237,221
50,119
Paseo Comercial Carlos III,
S.A.
Lease of shopping centre
Madrid
50.00%
26,868
(5,337)
Provitae Centros
Asistenciales, S.L.
Healthcare services
Madrid
50.00%
2,320
(996)
Other investments
2,521
(34)
537,288
39,923
2022
Thousands of euros
Associate
Line of business
Registered
office
Percentage of
ownership
Investment
Profit/(loss)
attributed to
the Group
Crea Madrid Nuevo Norte,
S.A
\"Operaci\u00f3n Chamart\u00edn\" construction
development and property operation
Madrid
14.46%
172,794
(616)
Silicius Real Estate
SOCIMI, S.A.
Sale and lease of property
Madrid
17.80%
95,855
2,667
Centro Intermodal de
Log\u00edstica, S.A.
Management of the port concession
of the logistics activity area
Barcelona
48.50%
194,982
18,556
Paseo Comercial Carlos III,
S.A.
Lease of shopping centre
Madrid
50%
32,205
2,487
Provitae Centros
Asistenciales, S.L.
Healthcare services
Madrid
50%
3,316
(198)
Other investments
1,148
1,137
500,300
24,033
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:
2023
Thousands of euros
Provitae
Centros
Asistenciales,
S.L.
Paseo
Comercial
Carlos III,
S.A.
Centro
Intermodal de
Log\u00edstica,
S.A. (CILSA)
Madrid
Nuevo Norte,
S.A.
Silicius Real
Estate
SOCIMI,
S.A.
Other
Non-current assets
7,036
125,673
753,103
6,055
612,201
7,213
Current assets
8
7,859
40,584
193,141
29,774
14,451
Non-current liabilities
-
69,185
169,518
1,027
279,652
12
Current liabilities
2,404
4,403
25,583
8,981
26,691
12,359
Revenue
-
8,719
84,898
-
34,554
1,586
Operating profit/(loss)
(1,992)
(10,674)
87,092
(3,907)
(26,901)
(448)
2022
Thousands of euros
Provitae
Centros
Asistenciales,
S.L.
Paseo
Comercial
Carlos III,
S.A.
Centro
Intermodal de
Log\u00edstica,
S.A. (CILSA)
Madrid
Nuevo Norte,
S.A.
Silicius Real
Estate
SOCIMI,
S.A.
Other
Non-current assets
9,090
142,316
653,500
5,349
727,972
6,956
Current assets
2
5,861
31,070
175,060
11,569
3,987
Non-current liabilities
192
60,615
101,289
984
300,388
896
Current liabilities
2,268
3,275
19,695
7,356
48,302
1,974
Revenue
-
8,359
79,272
-
40,044
579
Operating profit/(loss)
(396)
4,974
32,990
(4,258)
15,467
(453)
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.
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 2023 and 2022 is as follows:
Classification of financial assets by category:
Thousands of euros
2023
2022
Non-current:
At fair value-
Interest rate derivatives
3,429
18,882
At cost-
Equity instruments
9,915
9,191
At amortised cost-
Loans to third parties
130,107
126,230
Loans to associates
3,303
3,268
Deposits and guarantees
55,355
53,477
202,109
211,048
Current:
At cost-
Investments in associates
3,148
2,498
At amortised cost-
Loans to third parties
236
236
Other financial assets
1,606
226
Trade and other receivables
62,598
49,840
67,588
52,800
The carrying amount of financial assets recognised at amortised cost does not differ from their fair
value.
Derivatives
At year-end 2023 and 2022, the measurement of interest rate derivatives with a debit balance was
recognised under 'Derivatives' (see Note 14).
Loans to third parties
\"Other non-current financial assets\" included the loan granted to Desarrollos 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 2023, due to the annual capitalisation of interest, the
outstanding amount was EUR 92,219 thousand in principal and EUR 318 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 37,571 thousand euros (35,189 thousand euros in 2022).
Deposits and guarantees
\"Deposits and guarantees\" primarily includes the guarantees provided by lessees as security
amounting to EUR 53,796 thousand (EUR 51,988 thousand at 31 December 2022), which the Group
has deposited with the housing authority (Instituto de la Vivienda) in each region. At 31 December
2023, guarantees provided by lessees as security amounted to EUR 64,567 thousand (EUR 62,964
thousand at 31 December 2022) and were recognised under \"Non-current liabilities \u2013 Other financial
liabilities\" on the liability side of the accompanying consolidated statement of financial position for
2023 (see Note 15).
Classification of financial assets by maturity:
The classification of financial assets by maturity at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Less than 1
year
From 1 to 5
years
Over 5 years
Undetermined
maturity
Total
Interest rate derivatives
-
-
3,429
-
3,429
Equity instruments
-
-
-
9,915
9,915
Loans to third parties and associates
236
22,089
111,321
-
133,646
Deposits and guarantees
-
-
-
55,355
55,355
Investments in Group companies and associates
3,148
-
-
-
3,148
Other financial assets
1,606
-
-
-
1,606
Trade and other receivables
62,598
-
-
-
62,598
Total financial assets
67,588
22,089
114,750
65,270
269,697
2022
Thousands of euros
Less than 1
year
From 1 to 5
years
Over 5 years
Undetermined
maturity
Total
Interest rate derivatives
-
6,084
12,798
-
18,882
Equity instruments
-
-
-
9,191
9,191
Loans to third parties and associates
236
20,863
108,635
-
129,734
Deposits and guarantees
-
-
-
53,477
53,477
Investments in Group companies and associates
2,498
-
-
-
2,498
Other financial assets
226
-
-
-
226
Trade and other receivables
49,840
-
-
-
49,840
Total financial assets
52,800
26,947
121,433
62,668
263,848
11.\u00a0 \u00a0 Trade and other receivables
At 31 December 2023 and 2022, the heading \"Trade and other receivables\" included the following
items:
Thousands of euros
2023
2022
Trade and notes receivable
45,820
34,411
Sales debentures
6,186
6,718
Associates
589
549
Sundry accounts receivable
1,263
1,523
Remuneration payable
184
184
Other receivables from public authorities (Note 17)
19,515
17,849
Impairment of trade receivables
(10,959)
(11,394)
62,598
49,840
\"Trade and notes receivable\" in the accompanying consolidated statement of financial position at 31
December 2023 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
2022).
At 31 December 2023 and 2022, a breakdown by age of overdue receivables not considered impaired
is as follows:
Thousands of euros
2023
2022
Less than 30 days
7,927
1,947
31 to 60 days
1,748
1,987
61 to 90 days
1,002
1,469
Over 90 days
286
17
10,963
5,420
At 31 December 2023 and 2022, 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 2023 and 2022 were as follows:
Thousands of
euros
Balance at 31 December 2021
(13,324)
Charges for the year
(1,408)
Reversals/amounts used
3,279
Other
59
Balance at 31 December 2022
(11,394)
Charges for the year
(939)
Reversals/amounts used
1,320
Other
54
Balance at 31 December 2023
(10,959)
Losses from bad debts amounted to EUR 58 thousand in 2023. 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 branches of activity information in Note 6.
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 2023 and 2022, the amount included under \"Cash and cash equivalents\" was
unrestricted, except for EUR 5,527 thousand and EUR 4,720 thousand, respectively.
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 2023, 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 2023
and the average market price for the fourth quarter amounted to EUR 10.06 and EUR 8.72 per share,
respectively.
At 31 December 2023, 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:
Shares
% of share
capital
Direct
Indirect
Total
Banco Santander, S.A.
89,400,553
26,072,123
115,472,676
24.58%
Nortia Capital Investment Holding, S.L.
38,371,083
-
38,371,083
8.17%
BlackRock, INC
-
23,488,538
23,488,538
5.00%
Information from Banco Santander and Nortia Capital Investment Holding, S.L. was obtained from the
Register of Members book at year-end 2023.
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 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Legal reserve
93,954
74,094
Reserves of consolidated companies
2,286,573
2,935,532
Other reserves
348,876
14,004
Total other reserves
2,729,403
3,023,630
During the financial year 2023, the increase in \"Other reserves\" is mainly due to the undistributed
profit from the transfer of properties and shares or holdings referred to in section 1 of Article 2 of Law
11/2009, of 26 October, regulating REITs. This amount corresponds to the undistributed profits from
the divestment of the Net Lease branch of activity in 2022 and must be reinvested in other properties
or holdings assigned to the fulfilment of the Parent's main corporate purpose within three years of the
date of transfer.
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 2023, the Group had reached the legally required minimum in the Consolidated Text
of the Corporate Enterprises Act for this reserve.
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 2023 and 2022 in \"Reserves in consolidated companies\" are as follows:
Thousands of euros
31/12/2022
Incorporation of
prior year\u00b4s
results
Distribution of
reserves
Other changes
31/12/2023
Reserves in
consolidated
companies
2,935,532
263,087
(910,716)
(1,330)
2,286,573
Thousands of euros
31/12/2021
Incorporation of
prior year\u00b4s
results
Distribution of
reserves
Other changes
31/12/2022
Reserves in
consolidated
companies
2,467,203
512,217
(89,608)
45,720
2,935,532
The distribution mainly corresponds to the amount of interim dividends for 2022 and 2023, as well as
the reclassification of the reserves subject to reinvestment as indicated in the previous section.
Dividends
On 16 November 2023, the Board approved the distribution of an interim dividend charged to earnings
for 2023 in the amount of EUR 93,673 thousand.
On 27 April 2023, the General Shareholders Meeting approved the distribution of a supplementary
dividend charged to profit for 2022 in the amount of EUR 113,350 thousand.
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 2023, the Parent held treasury shares amounting to EUR 15,410 thousand.
The changes in 2023 and 2022 were as follows:
Number of
Thousands of
Shares
euros
Balance at 1 January 2022
2,885,491
32,305
Additions
6,625
122
Disposals
(1,355,932)
(15,261)
Balance at 31 December 2022
1,536,184
17,166
Additions
83,106
689
Disposals
(220,166)
(2,445)
Balance at 31 December 2023
1,399,124
15,410
The General Meeting held on 27 April 2023 revoked the authorisation granted by the General Meeting
of 10 April 2019 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 retirements of 220,166 treasury shares (average cost of EUR 11.10 per share) relate mainly to the
delivery of shares to employees under the flexible remuneration plan in the amount of EUR 1,338
thousand and to sales under the Group's liquidity agreement for securities listed on the Lisbon Stock
Exchange. This liquidity agreement has made net sales of 16,840 shares (EUR 418 thousand) in
2023.
At 31 December 2023, the Parent held treasury shares representing 0.298% 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.
Thousands of euros
2023
2022
Total financial debt (b)
4,526,244
4,238,774
Less - Cash and cash equivalents and Other current
financial assets (a)
(476,633)
(446,615)
Net debt
4,049,611
3,792,159
Equity
6,539,038
6,849,224
Total capital
10,588,649
10,641,383
Debt-to-equity ratio
38%
36%
1. In both 2023 and 2022, the amount in treasury shares is included
as Other current financial assets
2. Gross debt amounts without considering debt arrangement expenses and interest
accrued and unpaid.
13.6 Earnings per share
Basic
Basic earnings per share are calculated by dividing net profit attributable to common equity holders of
the Parent by the weighted average number of outstanding shares during the period, excluding
treasury shares.
A breakdown of the calculation of basic earnings per share is as follows:
\u00a0
\u00a0
\u00a0
2023
2022
Weighted average number of shares outstanding
(thousands)
468,324
467,891
Continuing operations
Profit (Loss)\u00a0 for the period attributable to the Parent
(thousands of euros)
(83,497)
41,356
Basic earnings/ Loss per share (euros)
(0.18)
0.09
Discontinued Activities
Profit (Loss)\u00a0 for the period attributable to the Parent
(thousands of euros)
-
221,731
Basic earnings/ Loss per share (euros)
-
0.47
The average number of ordinary shares outstanding is calculated as follows:
Number of Shares (Thousands)
2023
2022
Ordinary shares at beginning of period
469,771
469,771
Treasury shares
(1,399)
(1,536)
Average adjustment of outstanding shares
(48)
(344)
Weighted average number of ordinary shares outstanding at 31
December (thousands of shares)
468,324
467,891
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 2023, 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/loss.
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. The changes in the balance of this heading in
2023 and 2022 are as follows:
Thousands of
euros
Balance at 31 December 2021
(67,420)
Changes in the fair value of hedges in the year
80,218
Balance at 31 December 2022
12,798
Changes in the fair value of hedges in the year
(22,273)
Balance at 31 December 2023
(9,475)
The balance at year-end 2023 relates to the valuation of the interest rate hedges that the Parent
subscribed in 2023 and 2022 to cover the new syndicated and mortgage financing for April 2023 to
July 2030\u00a0 (see Note 14).
14.\u00a0 \u00a0 Current and non-current financial liabilities
At 31 December 2023 and 2022 current and non-current liabilities were as follows:
Thousands of euros
2023
2022
Non-current:
Measured at amortised cost-
Syndicated loan
665,000
-
Syndicated loan arrangement expenses
(3,889)
-
Total syndicated loan
661,111
-
Non-mortgage loan
127,880
111,000
Mortgage loans
431,735
83,256
Loan arrangement expenses
(6,470)
(4,390)
Total other loans
553,145
189,866
Debentures and bonds
3,300,000
3,300,000
Debenture issue expenses
(16,663)
(20,666)
Total debentures and bonds
3,283,337
3,279,334
Total amortised cost
4,497,593
3,469,200
Measured at fair value
Derivative financial instruments
9,475
-
Total at fair value
9,475
-
Total non-current
4,507,068
3,469,200
Current:
Measured at amortised cost
Syndicated loan
1,144
195
Debentures and bonds
20,966
775,152
Mortgage loans
2,943
1,843
Revolving credit facility
525
410
Non-mortgage loan
291
347
Loan arrangement expenses
-
(116)
Total amortised cost
25,869
777,831
Measured at fair value
Derivative financial instruments
(375)
11
Total at fair value
(375)
11
Total current
25,494
777,842
There is no material difference between the carrying amount and the fair value of financial liabilities at
amortised cost.
The details of the Parent\u00b4s rating are as follows:
AGENCY
RATING
OUTLOOK
LAST REVIEW
PREVIOUS
Standard & Poor\u00b4s
BBB
Positive
30/05/2023
BBB Positive
Moody\u00b4s
Baa2
Positive
24/07/2023
Baa2 Positive
14.1 Loans
The breakdown of mortgage loans at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2023
Long-term
Short-term
Short-term
interest
Syndicated loan
665,000
(3,889)
665,000
-
1,144
Non-mortgage loan
220,225
(283)
127,880
-
291
Revolving credit facilities
740,000
(3,191)
-
-
525
Mortgage loans - other assets
441,000
(2,996)
431,735
1,629
1,314
Total
2,066,225
(10,359)
1,224,615
1,629
3,274
2022
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2022
Long-term
Short-term
Short-term
interest
Syndicated loan
600,000
-
-
-
195
Non-mortgage loan
220,225
(271)
111,000
-
347
Revolving credit facilities
700,000
(2,486)
-
-
410
Mortgage loans - other assets
91,000
(1,633)
83,256
1,731
112
Total
1,611,225
(4,390)
194,256
1,731
1,064
Syndicated loans and revolving credit facility - Parent
On 25 April 2019, the Group arranged a senior syndicated loan for EUR 1,550 million, including two
tranches, a corporate loan of EUR 850 million and a corporate credit facility of EUR 700 million
maturing 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 syndicated 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 syndicated loan for EUR 850
million.
In 2022, as a result of the early cancellation of this facility, the application of amortized cost in relation
to IFRS 9 represented a financial cost of EUR 4,213 thousand.
On 18 November 2022, the Parent arranged a new senior syndicated loan for EUR 600 million with
the possibility of being arranged before 24 April 2023 for the repayment of the bond maturing in 2023.
This facility has a maturity of 5 years from its disposal and accrues a market rate of EURIBOR plus
130 basis points. For the period in which the facility is not drawn down, a commission for the
unarranged balance of 26 basis points applies. As of, 20 April 2023 the Parent had drawn down this
facility in full.
In addition, on the same date, a novation agreement was entered into for the senior syndicated loan
including a Tranche B corresponding to a revolving credit line with a limit of EUR 700,000 thousand .
This new credit line has a maturity of 5 years with the possibility of two optional one-year extensions.
The revolving credit line accrues interest at a rate of EURIBOR + 100 basis points and incorporates a
cost adjustment mechanism based on four sustainability criteria.
On 18 July 2023, the novation of the syndicated loan and the credit line was signed. The senior
syndicated loan was increased to EUR 665 million with the incorporation of the amounts of the
bilateral loans from Kutxabank and Unicaja described in the following section. In addition, the credit
line limit was increased to EUR 740 million. At the end of December 2023 this line was not drawn
down.
These funds have the same commitment to maintain certain coverage ratios as the Group bonds and
in the facilities from Banco Sabadell and the European Investment Bank. 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's directors have confirmed that these
ratios were met at 31 December 2023 and do not expect that they will not be fulfilled in the coming
years.
Unsecured loans of the Parent
On 18 November 2022, the Parent arranged a loan without mortgage guarantee with Banco Sabadell
for EUR 60 million, maturing in January 2028 and accruing a market rate of EURIBOR 120 basis
points.
This facility includes commitments to maintain the coverage ratios described in the previous point. The
Parent's directors have confirmed that these ratios were met at 31 December 2023 and do not expect
that they will not be fulfilled in the coming years.
On 31 March 2023, the Parent arranged a loan without mortgage guarantee with Kutxabank, S.A. for
EUR 30 million, maturing 5 years after drawdown and accruing a market rate of EURIBOR + 130 basis
points. For the period in which the facility is not drawn down, a commission for the unarranged
balance of 26 basis points applies. As of 20 April 2023, this facility has been fully drawn down.
On 24 April 2023, the Parent arranged and drew down a loan without mortgage guarantee with
Unicaja Banco, S.A. for EUR 35 million, maturing 5 years after drawdown and accruing a market rate
of EURIBOR + 130 basis points.
On 18 July 2023, both entities (Kutxabank, S.A. and Unicaja Banco, S.A.) assented the senior
syndicated loan, becoming part of it.
Loans from the European Investment Bank
On 20 December 2018, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 51 million. On 4 November 2019, the Parent arranged the second tranche of the mortgage-
free loan with the European Investment Bank for EUR 64 million, with both tranches 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 facility. This loan accruals a fixed interest rate of 60 basis
points. On 20 December 2022, the Group drew down EUR 22 million at a rate of 358 basis points,
meaning the first tranche of EUR 51 million was drawn down in full.
On 20 December 2023, the Group had drawn down EUR 16.9 million at a rate of 386 basis points.
This loan corresponds to the first drawdown of the second tranche of EUR 64 million.
On 16 December 2021, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 45.2 million and maturing in 10 years. 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's directors have confirmed that these
ratios were met at 31 December 2023 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 2023 and 2022, the Group's subsidiaries had taken out the following mortgage loans:
2023
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
11,735
1,629
182
Mortgage
ING
70,000
70,000
-
29
Mortgage
BBVA
180,000
180,000
-
99
Mortgage
Allianz
170,000
170,000
-
1,004
Mortgage
Total
441,000
431,735
1,629
1,314
2022
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
13,256
1,731
100
Mortgage
ING
70,000
70,000
-
12
Mortgage
Total
91,000
83,256
1,731
112
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). It also envisages 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 can lead to certain
savings in the financial burden. The Parent's directors have confirmed that these ratios were met at 31
December 2023 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 2023, the application of the amortised cost in relation to these concepts involved a financial cost of
EUR 362 thousand (EUR 363 thousand in 2022).
On 27 July 2023, the Parent arranged a loan with BBVA secured by a mortgage on the Torre
Castellana. The loan is for EUR 180 million, with a term of 7 years, and accrues interest at a market
rate of EURIBOR + 110 basis points.
On 15 November 2023, the Parent entered into a loan with Allianz secured by a mortgage on a
portfolio of 4 office buildings in Madrid. The loan is for EUR 170 million, with a term of 10 years, and
accrues interest at a fixed rate of 4.523%.
These facilities require 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). The Parent's directors have confirmed that these ratios were met at 31
December 2023 and do not expect that they will not be fulfilled in the coming years.
Maturity of debt
The breakdown by maturity of these loan principals is as follows:
2023
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2024
-
1,629
-
1,629
2025
-
1,721
-
1,721
2026
-
71,808
-
71,808
2027
-
1,900
-
1,900
2028
725,000
1,996
-
726,996
Over 5 years
67,880
354,310
-
422,190
792,880
433,364
-
1,226,244
2022
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2023
-
1,731
-
1,731
2024
-
1,654
-
1,654
2025
-
1,743
-
1,743
2026
-
71,818
-
71,818
2027
-
1,890
-
1,890
Over 5 years
111,000
6,151
-
117,151
111,000
84,987
-
195,987
The Group had undrawn loans and credit facilities at 31 December 2023 with a number of financial
institutions totalling EUR 832.3 million (EUR 1,409 million at 31 December 2022).
None of the Group's debt was denominated in non-euro currencies at 31 December 2023 or 2022.
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 37,901 thousand in 2023 (EUR 8,595 thousand
in 2022) and is recognised in the accompanying consolidated income statement for 2023.
At 31 December 2023 and 2022, the debt arrangement expenses had been deducted from the
balance of \"Bank borrowings\". During the 2023 financial year, the Group has allocated an expense of
EUR 4,286 thousand (in 2022 EUR 8,827 thousand were allocated) under the heading \"Financial
expenses\" of the attached consolidated income statement (see Note 18.d). 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 supplement
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 programme up
to an amount of EUR 6,000 million, the increase being performed on 21 March 2021. On 27 April
2023, the General Meeting authorised the bond-issue programme up to the same amount. On 4
August 2022 and 11 May 2023, the programme was updated 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 25 April 2023, the Group repaid the bond at its maturity in an amount of EUR 742.8 million.
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 ratio compliance obligations
as the syndicated loan and the revolving credit facility.
The breakdown at 31 December 2023 and 2022 of the bonds issued by Parent is as follows:
2023
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
may-25
600
1.750%
MS +82 b.p.s.
3.94%
Luxemburg
nov-26
800
1.875%
MS +74 b.p.s.
3.32%
Luxemburg
jul-27
500
2.375%
MS +105 b.p.s.
3.54%
Luxemburg
sep-29
300
2.375%
MS +102 b.p.s.
3.44%
Luxemburg
jun-30
500
1.375%
MS +176 b.p.s.
4.18%
Luxemburg
dic-34
600
1.875%
MS +184 b.p.s.
4.35%
Luxemburg
3,300
1.898%
2022
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
April 2023
743
2.225%
MS +98 b.p.s.
3.32%
Luxembourg
May 2025
600
1.750%
MS +115 b.p.s.
4.44%
Luxembourg
November 2026
800
1.875%
MS +168 b.p.s.
4.88%
Luxembourg
July 2027
500
2.375%
MS +183 b.p.s.
5.01%
Luxembourg
September 2029
300
2.375%
MS +210 b.p.s.
5.24%
Luxembourg
June 2030
500
1.375%
MS +205 b.p.s.
5.18%
Luxembourg
December 2034
600
1.875%
MS +232 b.p.s.
5.46%
Luxembourg
4,043
1.958%
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 2023 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 67,755 thousand (EUR 81,040
thousand in 2022) and is recognised in the accompanying consolidated income statement for 2023.
The accrued interest payable at 31 December 2023 amounted to EUR 20,966 thousand (EUR 32,366
thousand in 2022). Debt arrangement expenses taken to the consolidated income statement in 2023
amounted to EUR 4,119 thousand (EUR 4,901 thousand in 2022).
14.3 Derivatives
A breakdown of the financial instruments as of 31 December 2023 is as follows:
Thousands of euros
2023
2022
Non-current:
Asset interest rate
(3,429)
(18,882)
Liability interest rate
9,475
-
Other (Note 9)
14,828
9,256
Total non-current
20,874
(9,626)
Current:
Interest rate derivatives
(375)
11
Total current
(375)
11
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 2023 and 2022 is as follows:
2023
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
(3,429)
9,475
Current:
Interest rate derivatives
-
(375)
Total derivatives recognised
(3,429)
9,100
2022
.
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
18,882
-
Current:
Interest rate derivatives
-
11
Total derivatives recognised
18,882
11
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 67,900
thousand at a cost of 0.31%.
In addition to the early repayment of the EUR 850 million syndicated loan, in June 2022, the Group
cancelled the interest rate hedging instruments associated with this corporate syndicated loan.
In 2023 and 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 665,000 thousand at a
fixed cost of 2.537%.
In 2022, an interest rate hedge 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%.
In addition, in 2023, an interest rate hedge was contracted to cover BBVA's mortgage loan until its
maturity in July 2030 for a notional amount of EUR 180,000 thousand and a fixed cost of 2.363%.
The interest rate derivatives contracted by the Group and their fair values are as follows:
2023
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2023
2024
2025
2026
years
Syndicated Parent Company
2.537%
7,546
665,000
665,000
665,000
665,000
665,000
Non-mortgage - Parent Company
2.512%
562
60,000
60,000
60,000
60,000
60,000
Mortgage - Parent Company
2.363%
1,012
180,000
180,000
180,000
180,000
180,000
Other subsidiaries
0.310%
(3,449)
67,900
67,900
67,900
67,900
67,900
5,671
972,900
972,900
972,900
972,900
972,900
2022
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2022
2023
2024
2025
years
Syndicated Parent Company (starting
2023)
2.574%
(11,394)
-
500,000
500,000
500,000
500,000
Non-mortgage - Parent Company
2.512%
(1,386)
60,000
60,000
60,000
60,000
60,000
Other subsidiaries
0.310%
(6,091)
67,900
67,900
67,900
67,900
67,900
(18,871)
127,900
627,900
627,900
627,900
627,900
The Group has opted for hedge accounting, suitably designating the hedging relationships in which
these financial instruments are hedging instruments of the financing used by the Group. In this
manner, the Group has neutralized flow variations stemming from interest payments and fixed the rate
to be paid for said financing. The derivatives that are highly effective prospectively and retrospectively,
cumulatively, since the date of designation, are those associated with the Banco Sabadell new
syndicated financing and bilateral loan and the BBVA mortgage loan, so their changes in value are
recognised in equity.
The Group has recognised in equity the fair value of the derivatives that meet the effectiveness
requirements, without considering any tax effect due to adhering to the REIT regime. Under the
heading 'Changes in fair value in financial instruments' of the consolidated income statement, the
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 expense in the amount of EUR 660
thousand in 2023 (income of EUR 35,348 thousand in 2022).
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 2023 and 2022 would be as follows:
2023
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(20,530)
19,887
643
5% reduction in credit risk rate
19,948
(19,317)
(631)
2022
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(13,030)
12,130
901
5% reduction in credit risk rate
13,446
(12,524)
(921)
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 2023 and 2022
was as follows:
2023
Thousands of euros
31/12/2022
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Reclasific
ation
Accrued
interest
Other
adjustments
31/12/2023
Long-term loans
194,256
1,031,880
-
(1,629)
-
108
1,224,615
Short-term loans
2,385
(1,623)
(33,457)
1,629
35,444
-
4,378
Short-term revolving
credit facilities
410
-
(2,342)
-
2,457
-
525
L/T bonds
3,300,000
-
-
-
-
-
3,300,000
S/T bonds
775,152
(742,786)
(79,152)
-
67,755
(3)
20,966
4,272,203
287,471
(114,951)
-
105,656
105
4,550,484
2022
Thousands of euros
31/12/2021
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Discontinu
ed Ops
Principal
Debt
Accrued
interest
Interest
accrued
Discontinu
ed Ops
Other
adjustments
31/12/2022
Long-term loans
1,623,758
(768,000)
-
(659,771)
(1,731)
-
-
-
194,256
Short-term loans
13,154
(1,750)
(6,574)
(13,482)
1,731
6,398
2,908
-
2,385
Short-term revolving
credit facilities
410
-
(2,198)
-
-
2,197
-
1
410
L/T bonds
4,042,786
-
-
-
(742,786)
-
-
-
3,300,000
S/T bonds
588,622
(548,300)
(88,999)
-
742,786
81,040
-
3
775,152
6,268,730
(1,318,050)
(97,771)
(673,253)
-
89,635
2,908
4
4,272,203
In addition, under the interest rate hedging agreements signed (see Note 14.3), the net balance of the
settlements amounted to EUR 5,652 thousand in 2023 (negative balance of EUR 2,819 thousand in
2022).
14.5 Debt arrangement expenses
Changes in debt arrangement expenses during 2023 and 2022 are as follows:
Thousands of euros
31/12/2022
Allocation to
profit and loss
account \u2013
Amortised cost
Impact of
IFRS 9 on
income
statement
Capitalisations
31/12/2023
of arrangement
expenses
Non-mortgage financing
2,757
(3,730)
-
8,336
7,363
Mortgage loans - other assets
1,633
(194)
(362)
1,919
2,996
Debentures and bonds
20,782
(4,119)
-
-
16,663
25,172
(8,043)
(362)
10,255
27,022
Thousands of euros
31/12/2021
Allocation to
profit and loss
account \u2013
Amortised cost
Impact of
IFRS 9 on
income
statement
Capitalisations
31/12/2022
Discontinued
Ops
of arrangement
expenses
Non-mortgage financing
10,855
(4,125)
(4,213)
-
240
2,757
Senior syndicated loan (Tree)
48,106
-
-
(48,106)
-
-
Mortgage loans - other assets
2,123
(127)
(363)
-
-
1,633
Debentures and bonds
25,683
(4,901)
-
-
-
20,782
86,767
(9,153)
(4,576)
(48,106)
240
25,172
.
15.\u00a0 \u00a0 Other current and non-current liabilities
Details of this heading at 31 December 2023 and 2022 are as follows:
Thousands of euros
2023
2022
Non-current
Current
Non-current
Current
Other provisions
20,181
-
12,670
-
Guarantees and deposits received
84,190
1,976
86,407
3,791
Deferred tax liabilities
613,190
-
613,479
-
Other payables
71,794
5,393
58,485
5,229
Other (Note 9)
14,828
-
9,256
-
Borrowings from Group companies and associates
450
-
2,250
-
Other current liabilities
-
10,210
-
11,566
Total
804,633
17,579
782,547
20,586
\"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 4,510 thousand (EUR 4,619 thousand in 2022).
\"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.On February 10, 2022, the tax authorities notified the
Parent Company of the commencement of verification and investigation proceedings relating to
corporate income tax, value added tax and withholdings on account for various years. In this regard
and based on the best estimates of the amounts to be paid in the tax assessments and supplementary
tax returns for the years subsequent to those inspected, in 2023 the Group recorded a provision of
EUR 5,862 thousand under \"Provisions\" in the accompanying consolidated income statement (see
Notes 17.f and 24).
\"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 and the majority of its subsidiaries adhere to the REIT 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 2023), 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%.
16.\u00a0 \u00a0 Trade and other payables
Details of this heading at 31 December 2023 and 2022 are as follows:
Thousands of euros
2023
2022
Current:
Suppliers
84,585
74,814
Payables to suppliers - Group companies and associates
1,800
1,800
Various creditors
8,660
9,341
Pendings remunerations
12,612
16,190
Other payables to public authorities (Note 17)
31,392
27,044
Advances from customers
24,959
17,661
164,008
146,850
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
second final provision 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.
Days
2023
2022
Average period of payment to suppliers
39
25
Ratio of transactions settled
39
24
Ratio of transactions not yet settled
35
33
Thousands of euros
2023
2022
Total payments made
478,960
345,878
Total payments outstanding
41,125
71,590
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 of 60 days are
detailed below.
2023
2022
Monetary volume (thousands of euros)
446,079
345,129
Percentage of total payments made
93.1%
99.7%
Number of invoices
34,949
36,196
Percentage of total invoices
79.9%
99.9%
17.\u00a0 \u00a0 Tax situation
a) Tax receivables and tax payables
The breakdown of the main tax receivables and payables at 31 December 2023 and 2022 is as
follows:
2023
Thousands of euros
Tax assets
Tax liabilities
No
No
Current
Current
Current
Current
Public Treasury for withholdings and other items
-
17,530
-
24,365
VAT
-
1,985
-
6,712
Tax assets
77,573
-
-
-
Corporate income tax
-
-
-
7,591
Payable to the Social Security
-
-
-
315
Deferred tax liabilities
-
-
613,190
-
77,573
19,515
613,190
38,983
2022
Thousands of euros
Tax assets
Tax liabilities
No
No
Current
Current
Current
Current
Public Treasury for withholdings and other items
-
14,572
-
21,095
VAT
-
3,277
-
5,650
Tax assets
78,646
-
-
-
Corporate income tax
-
-
-
5,234
Payable to the Social Security
-
-
-
300
Deferred tax liabilities
-
-
613,479
-
78,646
17,849
613,479
32,279
b) Reconciliation of the accounting profit/loss to the taxable profit/tax loss
At 31 December 2023, 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 2023 and 2022 is as
follows:
Thousands of euros
2023
2022
Profit/(Loss) before tax
(74,992)
48,156
Permanent differences:
-Consolidation adjustments to profit or loss
(12,658)
5,847
-Tax adjustments Operating profit
(41,471)
786,007
-Non-deductible finance costs
-
-
-Profit and loss accounted for using the equity method
(39,923)
(24,033)
-Other permanent differences
(6,873)
19,972
Temporary differences:
-Changes in the value of investment property
335,984
249,272
-Adjustments to depreciation and amortisation
(52,005)
(50,308)
Tax loss carryforwards
-
(1,469)
Adjusted taxable profit
108,062
1,033,444
The Parent 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, and, in 2022 the tax income obtained
from the divestment 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
2023 and 2022 is taxed at 0% and therefore the deferred tax liability is also zero.
c) Reconciliation of accounting profit and tax expense
Thousands of euros
2023
2022
Income/(Expense):
Expense for change in value of investment property (a)
209
(1,684)
Expense for disposal of properties within the REIT regime (b)
-
(1,102)
Expense for disposal of properties outside the REIT regime
-
-
Expense for gain/(loss) at standard rate
(7,737)
(5,836)
Other items
(977)
1,822
Total corporate income tax expense
(8,505)
(6,800)
Current tax
(7,737)
(5,836)
Deferred tax and other adjustments to taxation
(768)
(964)
Total corporate income tax expense
(8,505)
(6,800)
(a)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.
(b)In 2022, 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 2023 is as follows:
2023
Thousands of euros
Recognised
Fiscal
Tax base
credit
Tax loss carryforwards:
2009
134,567
33,642
2010
1,650
413
2011
86,402
21,600
2014
13,313
3,328
2015
-
-
2018
718
180
2019
1,374
343
2022
1,337
335
2023
-
-
Total tax loss carryforwards
239,361
59,841
Other deferred taxes recognised
70,928
17,732
Total capitalised deferred tax assets
310,289
77,573
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 2023 is as follows:
Thousands of
euros
Not recognised
Tax base
Tax loss carryforwards:
2009
52,955
2010
5,673
2011
1,214
2012
1,676
2013
440
2014
17,987
2015
-
2016
456
2017
2,199
2018
505
2019
3,603
2020
14,815
2021
6,828
2022
6,096
2023
59,796
Total tax loss carryforwards
174,243
e)Deferred tax liabilities
As indicated above, the deferred tax liabilities arise mainly from the business combinations performed
in recent years and the non-REIT subsidiaries (resident in Portugal, which meet the requirements of
article 2.1 (c) of the REIT Law to be considered as eligible assets for that regime).
The changes at 31 December 2023 and 2022 are as follows:
Thousands of
euros
Total deferred tax liabilities at 31 December 2021
681,013
Increase in value of investment property
1,684
Reductions due to disposals
(68,944)
Temporary differences
(274)
Total deferred tax liabilities at 31 December 2022
613,479
Increase (decrease) in value of investment property
(209)
Reductions due to disposals
-
Temporary differences
(80)
Total deferred tax liabilities at 31 December 2023
613,190
In 2022, derecognitions due to sale related 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 stipulated 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 legislation, 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 statute of limitations has
expired. At year-end 2022, the Parent\u00a0 was open for income tax audit for the periods 2020 to 2022,
VAT and income tax withholdings for 2020 to 2023, and Business Tax (IAE) and Property Tax (IBI) for
2021 to 2024. The subsidiaries was open for income tax audit for the periods 2019 to 2022, VAT and
income tax withholdings for 2020 to 2023, and Business Tax (IAE) and Property Tax (IBI) for 2021 to
2024. 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 the other hand, on February 10, 2022, the Tax Agency notified the Parent Company of the
commencement of verification and investigation proceedings relating to Corporate Income Tax for the
financial years 2016 to 2019, Value Added Tax and withholdings on account of Non-Resident Income
Tax and capital gains tax for the financial years 2018 to 2019. These actions have been finalized by
signing in conformity on February 21, 2024 and the amounts payable have been recorded under
\"Provisions\" in the accompanying consolidated income statement (Notes 15 and 24).
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.
18.\u00a0 \u00a0 Revenue and expenses
a) Net income
The breakdown of ordinary income of the Group relating to 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Rental income
447,207
428,154
Income from services rendered
17,572
10,884
464,779
439,038
b) Other operating expenses
The breakdown of the balance of this heading of the consolidated income statement corresponding to
the 2023 and 2022 financial years is as follows:
Thousands of euros
2023
2022
Non-recoverable expenses of leased properties
43,823
49,096
Overheads-
Professional services
11,304
11,821
Travel expenses
1,061
976
Insurance
703
794
Other
4,583
2,856
Costs associated with asset acquisitions and financing
2,166
2,112
Losses on, impairment of and change in provisions
(323)
180
Other current operating expenses
9,708
5,652
Other exceptional expenses
300
331
73,325
73,818
c) Staff costs and average headcount
The detail of the staff costs in 2023 and 2022 was as follows:
Thousands of euros
2023
2022
Wages, salaries and similar expenses
27,711
32,056
Termination benefits
282
-
Social security costs
3,548
3,085
Other employee benefit costs
500
518
Long-term incentive plan
2,804
4,014
34,845
39,673
The average number of employees at the various Group companies in 2023 and 2022 was 257 and
250 respectively.
A breakdown of the headcount at 2023 and 2022 year-end, by category, is as follows:
2023
Women
Men
Total
Senior management
1
27
28
Middle management
28
52
80
Other professionals
97
61
158
126
140
266
2022\u00a0 \u00a0
Women
Men
Total
Senior management
1
27
28
Middle management
27
55
82
Other professionals
89
61
150
117
143
260
The average number of employees at the Group in 2023 and 2022 with a disability equal to or
greater than 33%, by category, was as follows:
Categories
2023
2022
Senior management
-
-
Middle management
1
1
Other professionals
5
6
6
7
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
Thousands of euros
2023
2022
Finance income:
Interest on loans
1,880
2,098
Interest on deposits and current accounts
8,226
1,844
10,106
3,942
Finance costs:
Interest on loans and other credits
(109,516)
(103,382)
Other finance costs
(18,270)
(5,821)
(127,786)
(109,203)
Net finance expense
(117,680)
(105,261)
In 2023 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 37,901 thousand and EUR 67,755 thousand, respectively
(EUR 8,595 and EUR 81,040 thousand in 2022 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 8,405 thousand (EUR 13,729 thousand in
2022), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
incomes associated with interest rate derivatives amounting to EUR 4,545 thousand (losses of EUR
18 thousand in 2022).
e) Contribution to consolidated profit
The contribution of each company included in the scope of consolidation to profit for 2023 and 2022
was as follows:
Thousands of euros
Company
2023
2022
Full consolidation:
Merlin Properties SOCIMI, S.A. (1)
(277,112)
122,450
Tree Inversiones Inmobiliarias, SOCIMI, S.A.
\u2014
6,279
Merlin Retail, S.L.
12,481
11,975
Merlin Oficinas, S.L.
(44,034)
(5,279)
Merlin Log\u00edstica, S.L.
93,112
26,363
Varitelia Distribuciones, S.L.U.
(10,445)
3,489
Metroparque, S.A. (2)
\u2014
1,366
La Vital Centro Comercial y de Ocio, S.L.
2,222
3,355
Global Carihuela Patrimonio Comercial, S.L.U.
15,203
2,258
Parques Log\u00edsticos de la Zona Franca, S.A.
31,194
(2,548)
Sevisur Log\u00edstica, S.A.
11,452
10,931
The Exhibitions Company, S.A.
(1,218)
(1,467)
Innovaci\u00f3n Colaborativa, S.L.U.
4,795
1,715
Promosete Invest. Inmobiliaria, S.A.
3
1,072
Pra\u00e7a do Marqu\u00e9s - Servicios auxiliares, S.A.
968
2,515
MPCVI - Compra e Venda Imobili\u00e1ria, S.A.
(157)
1,340
MPEP - Properties Escrit\u00f3rios Portugal, S.A.
38
681
MP Monumental, S.A.
499
20,296
MP Torre A, S.A.
(360)
(657)
Forum Almada \u2013 Gestao Centro Comercial, Lda
13,339
18,870
Torre dos Oceanus Investimentos Inmobiliarios,S.A.
248
1,377
Torre Arts Investimentos Inmobiliarios,S.A.
(3,321)
3,970
Torre Fern\u00e3o Magalh\u00e3es Investimentos Inmobiliarios,S.A.
64
1,418
VFX Log\u00edstica, S.A.
27,919
7,210
Other companies
(310)
75
Equity method:
Paseo Comercial Carlos III, S.A.
(5,337)
2,487
Centro Intermodal de Log\u00edstica, S.L.
50,119
18,556
Provitae, S.L.
(996)
(198)
Sicilius Real Estate SOCIMI S.A.
(3,264)
2,667
Crea Madrid Nuevo Norte, S.A.
(565)
(616)
Other investments
(34)
1,137
Total
(83,497)
263,087
(1) In 2022, it includes EUR 215,452 thousand associated with discontinued activity disposed of
(2) Company split up in 2023 (See Note 3)
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 2023 and 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:
2023
Nature of
relationship
Thousands of euros
Related party
Revenue
Expense
Assets
Liabilities
Banco Santander, S.A. (a)
Financing
2,559
382
-
100,000
Banco Santander, S.A. (a)
Cash
-
-
130,728
-
Banco Santander, S.A. (b)
Lease
825
-
-
391
Banco Santander, S.A. (b)
Services
-
144
-
-
Banco Santander, S.A. (c)
Asset disposal
8,600
-
-
-
P\u00ba Comer. Carlos III, S.A. (d)
Financing
29
-
2,619
-
Provitae Centros Asistenciales, S.L. (e)
Financing
39
-
1,198
-
Silicius Real Estate SOCIMI, S.A. (f)
Financing
-
-
-
2,250
12,052
526
134,545
102,641
2022
Nature of
relationship
Thousands of euros
Related party
Revenue
Expense
Assets
Liabilities
Banco Santander, S.A. (a)
Financing
5,860
2,326
-
-
Banco Santander, S.A. (a)
Cash
-
-
201,077
-
Banco Santander, S.A. (b)
Lease
752
23
-
392
Banco Santander, S.A. (b)
Services
-
75
-
-
P\u00ba Comer. Carlos III, S.A. (d)
Financing
29
-
2,590
-
Provitae Centros Asistenciales, S.L. (e)
Financing
-
-
1,131
-
Silicius Real Estate SOCIMI, S.A. (f)
Financing
-
-
-
4,050
6,641
2,424
204,798
4,442
Transactions executed with significant shareholders
During 2023, only the shareholder Banco Santander, S.A. held the status of significant shareholder
pursuant to the regulations in force.
a)Financing transactions
At 31 December 2023, the Group had no loans taken out with shareholders except for a corporate
credit line of EUR 740 million, which was not drawn down at 31 December 2023, in which Banco
Santander, S.A.'s share was EUR 100 million (see Note 14).
At 31 December 2023, the Group had bank balances deposited with Banco Santander, S.A.
amounting to EUR 130,728 thousand (which included the accounts on behalf of the associate Edged
Spain, S.L.U. for EUR 469 thousand).
In 2023, the finance costs incurred in transactions with Santander, S.A. amounted to EUR 382
thousand, which included EUR 61 thousand in guarantee fees and EUR 18 thousand in current
account management costs.
The Group has guarantee lines granted to MERLIN Properties SOCIMI, S.A. by the shareholder
Banco Santander, S.A. for EUR 3,069 thousand .
The income of EUR 2,559 thousand corresponds to ordinary remuneration from current accounts held
by MERLIN Properties SOCIMI, S.A. at Banco Santander.
b)Leases and services rendered
In 2023 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 4 years, and in 2023
they generated income of EUR 825 thousand (EUR 752 thousand in 2022) 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 391 thousand (EUR 392
thousand in 2022).
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 80 thousand.
c)\u00a0 Asset sale transactions
On 28 June 2023, the Group sold a logistics warehouse in Zaragoza to Santander Lease S.A. EFC, a
company of the Banco Santander Group, for EUR 8,600 thousand, generating a consolidated profit of
EUR 409 thousand.
Transactions with companies accounted for using the equity method
d)Paseo Comercial Carlos III S.A.
At 31 December 2023, the Parent, together with the other shareholder of the associate and as a
condition of bank financing, had a loan of EUR 2,619 thousand in force, including EUR 80 thousand of
accrued interest (EUR 51 thousand in 2022), granted on 27 July 2020 to the associate Paseo
Comercial Carlos III, S.A. Which manages a shopping centre in Madrid.
e)Provitae Centros Asistenciales, S.L.
At 31 December 2023, the Parent had an existing loan amounting to EUR 1,198 thousand (EUR 1,131
thousand at 31 December 2022), which included EUR 182 thousand of accrued interest (EUR 144
thousand in 2022), granted on 10 January 2002 to the associate Provitae Centro Asistenciales, S.L.
with a land holding in Villajoyosa.
f)Silicius Real Estate SOCIMI, S.A.
The Parent had outstanding obligations to pay amounting to EUR 2,250 thousand, recorded as \"Other
current and non-current financial liabilities\".
Dividends and other profits distributed to related parties (thousands of euros)
Thousands of euros
2023
2022
Significant shareholders
50,290
136,701
Banco Santander, S.A.
50,290
136,701
Directors and managers
3,002
8,245
Directors
1,806
4,806
Executives
1,196
3,439
53,292
144,946
.
20.\u00a0 \u00a0 Information on Directors
The Parent's directors and the parties related thereto did not have any conflicts of interest that had to
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 2023 and 2022, salaries, per diem attendance fees and any other type of
compensation paid to members of the Parent's managing bodies totalled EUR 6,239 thousand and
EUR 7,917 thousand, as detailed below:
Thousands of euros
2023
2022
Fixed and variable remuneration
6,010
7,673
Statutory compensation
-
-
Termination benefits
-
-
Per diems
218
234
Life and health insurance
11
10
6,239
7,917
In relation to the above amounts, the executive directors have received payments totalling EUR\u00a0 3,618
thousand corresponding to the variable remuneration for 2022, the deferred variable remuneration for
2021 and the extraordinary incentive for 2022. At 31 December 2023, unpaid accrued amounts are
maintained, associated with the variable remuneration for 2021 to 2023 for the amount of EUR 4,447
thousand, of which EUR 1,886 thousand are recognised under \"Non-current provisions\" and EUR
2,561 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 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 9,058 thousand at 31 December 2023.
The breakdown, by board member, of the amounts disclosed above is as follows:
Thousands of euros
2023
2022
Director:
Remuneration of board members
Javier Garc\u00eda Carranza Benjumea
Chairman - Proprietary director
-
-
Ismael Clemente Orrego
CEO
2,686
3,507
Miguel Ollero Barrera
Executive director
1,843
2,679
Mar\u00eda Luisa Jord\u00e1 Castro
Independent director
187
189
Ana Garc\u00eda Fau
Independent director
207
207
George Donald Johnston
Independent director
187
172
Fernando Ortiz Vaamonde
Independent director
142
142
Juan Mar\u00eda Aguirre Gonzalo
Independent director
177
182
Pilar Cavero Mestre
Independent director
152
152
Francisca Ortega Hern\u00e1ndez Agero
Proprietary director
167
169
Emilio Novela Berl\u00edn
Independent director
185
187
Mar\u00eda Ana Forner Beltr\u00e1n
Proprietary director
78
177
Ignacio Gil-Casares Satr\u00fastegui
Proprietary director
142
144
Juan Antonio Alcaraz Garc\u00eda
Proprietary director
75
-
6,228
7,907
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 320 thousand (EUR 400 thousand in 2022).
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 2023 and 2022, is
summarised as follows:
2023
Thousands of euros
Number of persons
Fixed and variable
remuneration
Other
remuneration
Total
9
5,800
32
5,832
2022
Thousands of euros
Number of persons
Fixed and variable
remuneration
Other
remuneration
Total
9
7,324
31
7,355
In relation to the above amounts, Senior Management received payments totalling EUR 4,516
thousand corresponding to the variable remuneration for 2022, the deferred variable remuneration for
2021 and the extraordinary incentive for 2022. At 31 December\u00a0 2023, unpaid accrued amounts are
maintained, associated with the variable remuneration for 2021 to 2023 for the amount of EUR 6,361
thousand, of which EUR 2,624 thousand are recognised under \"Non-current provisions\" and EUR
3,737 thousand 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 the first half of
2022, Senior Management received 444,950 shares corresponding to the second 50% of the amount
of the incentive referenced to the EPRA NAV, with the 2017-2019 Incentive Plan settled.
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's shares, if certain
objectives are fulfilled.
In this regard, as of 31 December 2022, the Group 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 Parent 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 Parent 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:
Metrics
Definition
Weighting
Absolute TSR
Relative TSR
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.
50%
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.
35%
Net carbon issues
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).
10%
Environment and Company
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.
5%
In 2023, the Company recognised the expense in the amount of EUR 2,804 thousand (EUR 2,804
thousand in 2022), corresponding to the vested portion of the 2022-2024 Incentive Plan, with a
balancing entry under reserves.
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:
Thousands of euros
2023
2022
Audit services
680
658
Other audit-related services:
Other attest services
147
141
Total audit and related services
827
799
Services required by applicable law
Tax advisory services
-
-
Other services
-
-
Total other services
-
-
Total
827
799
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.
For its part, the audit services include, in addition to the statutory annual audit, services from revisions
of intermediate periods.
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.
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:
\u2022 Assessing 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
\u2022 Taking 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 2023, the average occupancy rate of the asset
portfolio was 96.2%, 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 2023 are as follows.
2023
Thousands of euros
Less than 3
months
More than 3
and less than
o 6 months
6 months to
1 year
Over 1 year
(*)
Total
Loans to third parties
-
-
236
133,410
133,646
Equity instruments
-
-
-
9,915
9,915
Investments in associates
-
-
3,148
-
3,148
Guarantees and deposits
-
-
-
55,355
55,355
Trade and other receivables
28,169
25,039
9,390
-
62,598
Other current financial assets
1,606
-
-
-
1,606
Cash and cash equivalents
461,223
-
-
-
461,223
Total
490,998
25,039
12,774
198,680
727,491
(*) derivatives are not included
2022
Thousands of euros
Less than 3
months
More than 3
and less than
o 6 months
6 months to
1 year
Over 1 year
(*)
Total
Loans to third parties
-
-
236
129,498
129,734
Equity instruments
-
-
-
9,191
9,191
Investments in associates
-
-
2,498
-
2,498
Guarantees and deposits
-
-
-
53,477
53,477
Trade and other receivables
22,428
19,936
7,476
49,840
Other current financial assets
226
-
-
-
226
Cash and cash equivalents
429,449
-
-
-
429,449
Total
452,103
19,936
10,210
192,166
674,415
(*) derivatives are not included
Cash and cash equivalents
The Group has cash and cash equivalents of EUR 461,223 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. At 31 December
2023, the Group's working capital amounted to EUR 385,294 thousand
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 2024.
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 2023 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:
2023
Thousands of euros
Less than 1
month
1 to 3
months
3 months to 1
year
Over 1
year
Total
Bank borrowings
395
-
1,234
1,224,615
1,226,244
Other non-current liabilities and guarantees
-
-
-
84,190
84,190
Trade and other payables (excluding payables to
public authorities)
30,735
70,360
31,521
-
132,616
Total
31,130
70,360
32,755
1,308,805
1,443,050
2022
Thousands of euros
Less than 1
month
1 to 3
months
3 months to 1
year
Over 1
year
Total
Bank borrowings
421
-
1,309
194,257
195,987
Other non-current liabilities and guarantees
-
-
-
86,407
86,407
Trade and other payables (excluding payables to
public authorities)
26,538
66,052
27,216
-
119,806
Total
26,959
66,052
28,525
280,664
402,200
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 2023, the percentage of debt the interest rate of which is covered by the above
financial instruments was 99.7%. 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 2023, 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 2023.
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 whose main functions are to advise the Board, among other aspects, on environmental and
sustainability issues, and 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 2023 the Group certified or obtained the renewal of 36 assets. The
Group considers the certification process of its assets as an early response to the demands that the
market will place on property lessors in the medium term and which will enable it to maintain its
current competitive position.
Additionally, the Group obtained a 83% rating in the 2023 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 2023,
91 buildings composing a surface area of 1,232,053 m2 were certified, 3 more buildings than in 2022.
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, 88 buildings are certified
composing a surface area of 1,232,053 m2, 3 more than in 2022. The assets included in this system
aim to reduce total energy consumption, measured in kilowatt hours for the square metres occupied,
by 8% in 2026 compared with by 8% compared to 2022, based on the implementation of MAEs
(energy saving measures).
In 2023, the Group continued to perform an analysis of the entire portfolio to determine the carbon
footprint of each of its assets, and the additional measures necessary to reduce the above carbon
footprint. The Group\u2019s progress over the last few years has enabled the Company to meet its
emissions reduction objective and its \u201cPathway to Net Zero\u201d for 2030, thus getting a head start on the
European strategy for decarbonisation 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 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.
The Group's financing policies are also aligned with the Group's sustainability objectives through the
Green Financing Programme published in April 2022 and the conversion of 100% of its bonds in
circulation into green bonds.
Currently, 98.2% of the Group's debt with credit and bond institutions is linked to the Green Financing
Programme or ESG criteria (see Note 14).
The Green Financing Programme, 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
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, while increasing the Group's operating costs, are aimed at anticipating
regulatory developments and building customer loyalty.
It has also committed to report in the Statement of Non-Financial Information (SNFI) in accordance
with TCFD recommendations 1.
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. In\u00a0
2022, the decarbonisation targets included in its \"Road to Net Zero\" were validated and approved by
the SBTi initiative.
24.\u00a0 \u00a0 Events after the reporting period
In January, the Group signed a \u20ac 150M secured bank loan maturing in 2034 @130 bps margin. The
loan is expected to be drawn in March 2024.
In January, the Group issued a \u20ac 100M tap on the 2.375% note due in September 2029 (3.93% cost).
In relation to the verification and investigation actions that during the year 2022, the Tax Agency
communicated to the Parent Company (Note 17), on February 21, 2024, the following acts in
accordance\u00a0 have been signed:
\u2022 Corporate Income Tax (CIT) for the years 2016 to 2019, by virtue of which an amount of
13,984 thousand euros was determined to be returned to the Parent Company, which includes
tax liability and interest on arrears. This recognizes the effects of the Constitutional Court
ruling of January 19th, 2024, which annuls certain provisions of Royal Decree-Law 3/2016 that
had an impact on the tax base of the CIT for the years 2016 to 2019.
\u2022 Value Added Tax (VAT) for the years 2018 to 2019, by virtue of which an amount of 799
thousand euros was determined to be paid, which includes tax liability and interest on arrears.
\u2022 Withholdings on account of the Income Tax for Non-Residents for the years 2018 to 2019, by
virtue of which an amount of 834 thousand euros was determined to be paid, which includes
tax liability and interest on arrears.
\u2022 Withholdings and payments on account on the Income from Capital for the years 2018 and
2019, by virtue of which no amount was determined to be paid or returned.
The resulting amounts to be paid have been recorded in the fiscal year 2023, under the heading
\"Provisions\" of the attached consolidated income statement (Note 15).
Appendix I - Group companies and associates 2023
Company
Line of business/Location
Ownership
interest
Thousands of euros
Consolidatio
n method
Auditor
Share
capital
Profit/(Loss)
Other
Total
Dividends
Carrying amount
From
operations
Net
Shareholder
s' Equity
Equity
Received
Cost
Impairmen
t
Merlin Retail, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
24,212
7,231
5,718
378,597
408,527
13,330
390,432
-
Global
Integration
Deloitte
Merlin Oficinas, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
32,797
16,763
16,097
768,987
817,881
22,377
824,488
-
Global
Integration
Deloitte
Merlin Log\u00edstica, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
34,290
32,352
15,841
319,496
369,628
43,842
353,842
-
Global
Integration
Deloitte
Sevisur Log\u00edstica
Urban development, construction and operation
of logistics and common services buildings. Ctra.
de la Esclusa, 15. 41011, Seville.
100%
17,220
4,954
4,285
10,335
31,840
3,906
37,629
-
Global
Integration
Deloitte
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
100%
15,701
1,720
925
105,845
122,471
-
118,310
-
Global
Integration
Deloitte
The Exhibitions Company ,
S.A.U.
Provision of all kinds of technical, commercial or
economic services/ Paseo de la Castellana 257,
Madrid
100%
180
(1,218)
(1,158)
2,044
1,066
-
4,287
(3,221)
Global
Integration
N/A
Gescentesta, S.L.U.
Provision of Services / Paseo de la Castellana
257, Madrid
100%
3
249
250
1,054
1,307
-
3
-
Global
Integration
N/A
La Vital Centro Comercial y de
Ocio, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
14,846
3,742
4,130
19,302
38,278
2,896
56,788
-
Global
Integration
Deloitte
Desarrollo Urbano de Patraix,
S.A.
Land management / Avda. Bar\u00f3n de Carcer, 50,
Valencia
100%
2,790
(2)
(341)
22,186
24,635
-
25,090
(455)
Global
Integration
N/A
Sadorma 2003, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
73
598
1,608
19,016
20,696
-
25,485
(4,788)
Global
Integration
N/A
Global Murex Iberia, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
14
(1)
88
(15,438)
(15,336)
-
-
-
Global
Integration
N/A
Varitelia Distribuciones,
S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
15,443
(10,613)
(19,604)
6,110
1,949
1,150
172,979
(171,031)
Global
Integration
Deloitte
Global Carihuela, Patrimonio
Comercial S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
3,303
15,127
12,766
4,510
20,579
1,371
34,102
(13,524)
Global
Integration
Deloitte
Innovaci\u00f3n Colaborativa, S.L.
Selection, contracting, fitting out, organization
and management of coworking spaces / Paseo de
la Castellana 257, Madrid
100%
15
(2,719)
(3,021)
(1,087)
(4,093)
-
15,868
(15,868)
Global
Integration
N/A
Milos Asset Development,
Acquisition, ownership, administration, disposal
and development of land located within the
\"Distrito Castellana Norte\" project / Paseo de la
Castellana 257, Madrid
100%
3
(3)
(407)
136
(268)
-
3
(2)
Global
Integration
N/A
Slack Tailwind Systems, S.L.U
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
1,014
(14)
(75)
(10)
930
-
1,014
(74)
Global
Integration
Deloitte
Slow Rise Spain, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
7,724
312
33
1
7,757
-
7,724
-
Global
Integration
Deloitte
Merlin Edged, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
3
-
-
-
3
-
3
-
Global
Integration
N/A
MPCVI \u2013 Compra e Venda
Imobili\u00e1ria, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
1,050
1,162
198
5,980
7,228
198
6,418
-
Global
Integration
Deloitte
Portugal
MPEP \u2013 Properties Escrit\u00f3rios
Portugal, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
684
(248)
662
464
-
1,085
-
Global
Integration
Deloitte
Portugal
MP Monumental, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,498
12
25,554
25,616
214
41,570
-
Global
Integration
Deloitte
Portugal
MP Torre A, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
874
(137)
9,498
9,410
404
20,101
-
Global
Integration
Deloitte
Portugal
VFX Log\u00edstica, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5,050
21,837
21,562
19,873
46,486
-
30,182
-
Global
Integration
Deloitte
Portugal
Promosete, Invest. Inmobil.
SA.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
200
1,976
1,221
7,515
8,936
837
10,384
-
Global
Integration
Deloitte
Portugal
Pra\u00e7a Do Marqu\u00eas servi\u00e7os
Auxiliares, SA
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
15,893
3,566
886
61,273
78,052
1,982
56,361
-
Global
Integration
Deloitte
Portugal
Torre Dos Oceanus
Investimentos
Inmobiliarios,S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,018
838
3,319
4,207
827
15,912
-
Global
Integration
Deloitte
Portugal
Forum Almada \u2013 Gest\u00e3o
Centro Comercial Sociedade
Unipessoal, Lda.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5
20,714
9,914
83,801
93,720
-
89,453
-
Global
Integration
Deloitte
Portugal
Forum Almada II, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
10,000
13,374
9,594
75,471
95,065
-
325,660
-
Global
Integration
Deloitte
Portugal
Torre Arts\u00a0 Investimentos
Imobiliarios, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
2,971
2,267
78,153
80,520
2,097
80,281
-
Global
Integration
Deloitte
Portugal
Torre Fernao Magalhaes\u00a0
Investimentos Imobiliarios,
S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
1,537
1,193
25,370
26,663
673
26,055
-
Global
Integration
Deloitte
Portugal
MPLIB \u2013 Investimentos
Imobili\u00e1rios, Unipessoal Lda.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
2,000
(1,079)
(3,562)
54,252
52,690
-
56,808
(4,118)
Global
Integration
Deloitte
Portugal
Paseo Comercial Carlos III,
S.A.
Real estate acquisition and development for
leasing / Avda. San Mart\u00edn Valdeiglesias, 20\u00a0
28922 Madrid
50%
8,698
4,328
491
25,902
35,091
-
25,668
-
Equity
method
Deloitte
Provitae Centros Asistenciales,
S.L.
Real estate acquisition and development for
leasing / C. Fuencarral, 123. Madrid
50%
6,314
(1,340)
(1,417)
(258)
4,639
-
5,061
(2,742)
Equity
method
Deloitte
G36 Development, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 93, Madrid
50%
3
21
21
8
32
-
2
-
Equity
method
N/A
Centro Intermodal de Log\u00edstica
S.A. (CILSA)
Development, management and implementation
of logistics activities in the port system / Avenida
Ports d\u2019Europa 100, Barcelona
48.5%
18,920
26,942
17,443
124,043
160,406
7,880
95,688
-
Equity
method
EY
Pazo de Congresos de Vigo,
S.A.
Execution project, construction and operation of
the Vigo Conference Center / Avda. Garc\u00eda
Barb\u00f3n, I. Vigo
44.44%
n.d\u00a0
n.d\u00a0
n.d.\u00a0
n.d.\u00a0
-
-
3,600
(3,600)
Equity
method
N/A
Parking del Palau, S.A.
Real estate acquisition and development for
leasing / Paseo de la Alameda, s/n. Valencia
33%
1,698
22
24
440
2,162
66
2,137
(1,265)
Equity
method
BDO
Araba Log\u00edstica, S.A.
Real estate acquisition and development for
leasing / Avda. \u00c1lava s/n Rivabellosa (\u00c1lava)
25.14%
1,750
911
391
2,925
5,066
-
2,257
(2,257)
Equity
method
Mazars
Crea Madrid Nuevo Norte,
S.A.
Performing all types of real estate activities /
Paseo de la Castellana 216, Madrid
14.46%
227,535
(5,858)
(3,907)
(34,440)
189,188
-
177,485
(2,216)
Equity
method
KPMG
Moregal Hotels, S.L.
Real estate acquisition and development for
leasing / Alameda de Col\u00f3n , 9, M\u00e1laga
7.32%
5,307
(34)
(26)
1,205
6,486
-
1,585
(2)
Equity
method
n.d
Silicius Real Estate, SOCIMI,
S.A.
Performing all types of real estate activities /
Calle de Vel\u00e1zquez, 123, Madrid
17.8%
31,394
(7,558)
(26,900)
331,139
335,633
1,554
88,572
-
Equity
method
PWC
Edged Spain, S.L.U
Provision of Data Center services / Paseo de la
Castellana 257, Madrid
50%
3
223
223
(224)
2
-
2
-
Equity
method
Deloitte
Appendix I - Group companies and associates 2022
Company
Line of business/Location
Ownership
interest
Thousands of euros
Consolidation
method
Auditor
Share
capital
Profit/(Loss)
Other
Total
Dividends
Carrying amount
From
operations
Net
Shareholders'
Equity
Equity
Received
Cost
Impairme
nt
Merlin Retail, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
17,963
13,998
13,330
236,491
267,784
42,922
251,408
-
Global
Integration
Deloitte
Merlin Oficinas, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
29,674
22,934
22,377
718,601
770,652
16,130
771,345
-
Global
Integration
Deloitte
Merlin Log\u00edstica, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
28,166
29,978
33,842
274,082
336,090
31,544
292,304
-
Global
Integration
Deloitte
Sevisur Log\u00edstica
Urban development, construction and operation of
logistics and common services buildings. Ctra. de la
Esclusa, 15. 41011, Seville.
100%
17,220
4,438
4,249
9,910
31,379
3,455
37,629
-
Global
Integration
Deloitte
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
100%
15,701
(1,253)
(1,172)
107,017
121,546
5,903
118,310
-
Global
Integration
Deloitte
The Exhibitions Company ,
S.A.U.
Provision of all kinds of technical, commercial or
economic services/ Paseo de la Castellana 257,
Madrid
100%
180
(1,452)
(1,430)
3,474
2,224
-
4,287
(2,063)
Global
Integration
N/A
Gescentesta, S.L.U.
Provision of Services / Paseo de la Castellana 257,
Madrid
100%
3
177
121
933
1,057
-
3
-
Global
Integration
N/A
Metroparque, S.A.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
56,194
8,477
8,808
33,086
98,088
8,186
231,557
-
Global
Integration
Deloitte
La Vital Centro Comercial y
de Ocio, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
14,846
3,152
3,218
18,980
37,044
2,245
56,788
-
Global
Integration
Deloitte
Desarrollo Urbano de Patraix,
S.A.
Land management / Avda. Bar\u00f3n de Carcer, 50,
Valencia
100%
2,790
(3)
(83)
22,270
24,977
-
25,090
(114)
Global
Integration
N/A
Sadorma 2003, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
73
(2)
231
18,785
19,089
-
25,485
(6,396)
Global
Integration
N/A
Global Murex Iberia, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
14
\u2014
21
(15,459)
(15,424)
-
-
-
Global
Integration
N/A
Varitelia Distribuciones,
S.L.U.
Real estate acquisition and development for leasing /\u00a0
Paseo de la Castellana 257, Madrid
100%
15,443
3,344
1,150
6,110
22,703
333
172,979
(150,277)
Global
Integration
Deloitte
Global Carihuela, Patrimonio
Comercial S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3,303
2,123
1,578
4,358
9,239
-
34,102
(24,863)
Global
Integration
Deloitte
Innovaci\u00f3n Colaborativa, S.L.
Selection, contracting, fitting out, organization and
management of coworking spaces / Paseo de la
Castellana 257, Madrid
100%
15
(3,049)
(3,092)
2,005
(1,072)
-
15,868
(15,868)
Global
Integration
N/A
Milos Asset Development,
Acquisition, ownership, administration, disposal and
development of land located within the \"Distrito
Castellana Norte\" project / Paseo de la Castellana
100%
3
-
(114)
250
139
-
3
-
Global
Integration
N/A
Slack Tailwind Systems,
S.L.U
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3
(10)
(10)
-
(7)
-
3
(3)
Global
Integration
Deloitte
Slow Rise Spain, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3
82
82
-
85
-
3
-
Global
Integration
Deloitte
MPCVI \u2013 Compra e Venda
Imobili\u00e1ria, S.A.
Real estate acquisition and development for leasing /
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
1,050
1,095
208
5,969
7,227
277
6,418
-
Global
Integration
Deloitte
Portugal
MPEP \u2013 Properties
Escrit\u00f3rios Portugal, S.A.
Real estate acquisition and development for leasing /
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
50
677
(241)
903
712
-
1,085
-
Global
Integration
Deloitte
Portugal
MP Monumental, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,502
214
6,632
6,896
-
22,648
-
Global
Integration
Deloitte
Portugal
MP Torre A, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
1,538
414
73
537
-
10,686
-
Global
Integration
Deloitte
Portugal
VFX Log\u00edstica, S.A.
Real estate acquisition and development for leasing.
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
5,050
6,406
5,614
11,060
21,724
-
25,153
(2,417)
Global
Integration
Deloitte
Portugal
Promosete, Invest. Inmobil.
SA.
Real estate acquisition and development for leasing.\u00a0
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
200
1,554
837
7,385
8,422
1,323
10,384
-
Global
Integration
Deloitte
Portugal
Pra\u00e7a Do Marqu\u00eas servi\u00e7os
Auxiliares, SA
Real estate acquisition and development for leasing.\u00a0
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
15,893
3,178
2,086
61,169
79,148
2,008
56,361
-
Global
Integration
Deloitte
Portugal
Torre Dos Oceanus
Investimentos
Inmobiliarios,S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
1,933
827
3,319
4,196
593
15,912
-
Global
Integration
Deloitte
Portugal
Forum Almada \u2013 Gest\u00e3o
Centro Comercial Sociedade
Unipessoal, Lda.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5
16,556
10,013
16,908
26,926
-
32,573
-
Global
Integration
Deloitte
Portugal
Forum Almada II, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
10,000
13,028
9,153
66,132
85,285
-
325,660
-
Global
Integration
Deloitte
Portugal
Torre Arts\u00a0 Investimentos
Imobiliarios, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
2,755
2,097
78,153
80,350
2,177
80,281
-
Global
Integration
Deloitte
Portugal
Torre Fernao Magalhaes\u00a0
Investimentos Imobiliarios,
S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
869
673
25,370
26,143
995
26,055
-
Global
Integration
Deloitte
Portugal
Generous Profile , Unipessoal
LDA.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
2,000
(27)
(547)
54,799
56,252
-
56,808
(556)
Global
Integration
Deloitte
Portugal
Paseo Comercial Carlos III,
S.A.
Real estate acquisition and development for leasing /
Avda. San Mart\u00edn Valdeiglesias, 20\u00a0 28922 Madrid
50%
8,698
2,864
3,978
21,915
34,591
-
25,668
-
Equity method
Deloitte
Provitae Centros
Asistenciales, S.L.
Real estate acquisition and development for leasing /
C. Fuencarral, 123. Madrid
50%
6,314
944
944
(1,202)
6,056
-
5,061
(1,746)
Equity method
Deloitte
G36 Development, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana, 93 Madrid
50%
3
21
21
8
32
1,040
2
-
Equity method
N/A
Centro Intermodal de
Log\u00edstica S.A. (CILSA)
Development, management and implementation of
logistics activities in the port system / Avenida Ports
d\u2019Europa 100, Barcelona
49%
18,920
25,289
17,079
123,701
159,700
2,556
95,688
-
Equity method
EY
Pazo de Congresos de Vigo,
S.A.
Execution project, construction and operation of the
Vigo Conference Center / Avda. Garc\u00eda Barb\u00f3n, I.
Vigo
44%
n.d
n.d
n.d.
n.d.
-
-
3,600
(3,600)
Equity method
n.d
Parking del Palau, S.A.
Real estate acquisition and development for leasing /
Paseo de la Alameda, s/n. Valencia
33%
1,698
42
40
459
2,197
-
2,137
(1,052)
Equity method
BDO
Araba Log\u00edstica, S.A.
Real estate acquisition and development for leasing /
Avda. \u00c1lava s/n Rivabellosa (\u00c1lava)
25%
1,750
911
391
2,925
5,066
-
2,257
(2,257)
Equity method
Mazars
Crea Madrid Nuevo Norte,
S.A.
Performing all types of real estate activities / Paseo
de la Castellana 216, Madrid
14%
206,509
(6,081)
(4,058)
(36,574)
165,877
-
174,445
(1,651)
Equity method
KPMG
Silicius Real Estate, SOCIMI,
S.A.
Performing all types of real estate activities / Calle
de Vel\u00e1zquez, 123, Madrid
18%
30,955
13,299
15,017
341,871
387,843
307
87,018
-
Equity method
PWC
Edged Spain, S.L.U
Provision of Data Center services / Paseo de la
Castellana 257, Madrid
50%
3
96
88
(211)
(120)
-
2
(2)
Equity method
Deloitte
Equity
method
", "dimensions": { "concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-511": { "value": "
Merlin Properties SOCIMI, S.A. (the \"Parent Company\") was incorporated in Spain on 25 March 2014
under the Corporate Enterprises Act. On 22 May 2014, the Parent requested to be included in the tax
regime for listed companies investing in the property market (REITs), effective from 25 March 2014
(date of incorporation of the Parent).
On 27 February 2017, the Parent changed its registered office from Paseo de la Castellana 42 to
Paseo de la Castellana 257, Madrid, Spain.
The Parent Company's corporate purpose, as in its bylaws, is as follows:
\u2013 The acquisition and development of urban real estate for subsequent leasing, including the
refurbishment of buildings as per the VAT Act;
\u2013 The holding of equity interests in other REITs or in other non-resident entities in Spain with the
same corporate purpose and which operate under a similar regime as that established for
REITs with respect to the mandatory profit distribution policy enforced by law or by the bylaws;
\u2013 The holding of equity interests in other resident or non-resident entities in Spain whose
corporate purpose is to acquire urban real estate for subsequent leasing, and which operate
under the same regime as that established for REITs with respect to the mandatory profit
distribution policy enforced by law or by the bylaws, and which meet the investment
requirements stipulated for these companies; and
\u2013 The holding of shares or equity interests in collective real estate investment undertakings
regulated by Law 35/2003, of 4 November, on collective investment undertakings, or any
statute that may replace this in the future.
In addition to the economic activity relating to the main corporate purpose, the Parent may also carry
on any other ancillary activities, i.e., those that generate income, which in total represents less than
20% of its income in each tax period, or those that may be considered ancillary activities by law at the
time.
The activities included in the Parent's corporate purpose may be indirectly performed, either wholly or
in part, through the ownership of shares or equity interests in companies with a similar or identical
corporate purpose.
The direct and, where applicable, indirect performance of any activities which are reserved under
special legislation are excluded. If the law prescribes the need for a professional qualification,
administrative authorisation, entry in a public register, or any other requirement for the purpose of
exercising any of the activities within the corporate purpose, no such activity can be exercised until all
the applicable professional or administrative requirements have been met.
Merlin Properties SOCIMI, S.A. and Subsidiaries (\"the Group\") engage mainly in the acquisition and
management (through leasing to third parties) of offices, industrial buildings, logistic centres, data
centres, shops and shopping centres, and they may also invest, to a lesser extent, in other assets for
lease.
On 30 June 2014, the Parent was floated on the Spanish stock market through the issuance of EUR
125,000 thousand shares, with a share premium of EUR 1,125,000 thousand. Merlin Properties
SOCIMI, S.A.'s shares/securities have been listed on the electronic trading system of the Spanish
stock exchanges since 30 June 2014.
On 15 January 2020, the Parent's shares were listed on Euronext Lisbon under a dual listing.
The Parent Company and the majority of its subsidiaries are governed by Spanish Law 11/2009, of 26
October, as amended by Spanish REITs Act (Ley 16/2012, de 27 de diciembre, por la que se regulan
las Sociedades Anonimas Cotizadas de Inversion en el Mercado Inmobiliario). Article 3 of that Act sets
out the investment requirements for these types of companies, namely:
1. At least 80% of a REIT's assets must be invested in urban real estate for leasing purposes
and/or in land to be developed for leasing purposes provided that such development starts
within three years of acquisition, along with investments in the capital or equity of other
entities referred to in section 1, Article 2 of the Act.
The value of the assets will be determined according to the average of the individual balance
sheets for each quarter of the year, whereby the REIT may opt to calculate such value by
taking into account the market value of the assets included in such balance sheets instead of
their carrying amount, in which case that value would apply to all balance sheets for the year.
For these purposes, the money and credit rights arising from the disposal of these properties
or shareholdings, if applicable, during the same year or previous years will not be calculated,
provided that, in this latter case, the reinvestment period referred to in Article 6 of this Act has
not elapsed.
2.Similarly, at least 80% of the income for the tax period for each year, excluding that arising
from the disposal of shareholdings and properties used in fulfilment of its primary corporate
purpose, once the holding period referred to below has elapsed, should come from the lease
of properties and from dividends or shares in profit from these investments.
This percentage is calculated based on consolidated profit if the company is a Parent
Company of a group, as defined in Article 42 of the Spanish Commercial Code, irrespective of
the place of residence and the obligation to prepare consolidated financial statements. Said
group will exclusively comprise the REIT and all the other entities referred to in section 1,
Article 2 of that Act.
3.The REIT's real estate assets must be leased for at least three years. The time that the
properties have been offered for lease, up to a maximum of one year, will be included for the
purposes of this calculation.
This period will be calculated:
a) In the case of properties that are included in the REIT's assets before it avails itself of
the regime, from the date of commencement of the first tax period in which the special
tax regime set forth in this Act is applied, provided that the property is leased or
offered for lease at that date. Otherwise, the following paragraph must be apply.
b) In the case of properties developed or acquired subsequently by the REIT, from the
date on which they were leased or offered for lease for the first time.
c) Shares or equity investments in entities referred to in section 1, Article 2 of the Act
must be kept in the REIT's asset base for a period of at least three years after their
acquisition or, if applicable, from the beginning of the first tax period during which the
special tax regime in the Law applies.
As in transitional provision one of Law 11/2009, of 26 December, amended by Law 16/2012, of 27
December, governing listed companies investing in the property market, these companies may opt to
apply the special tax regime under Article 13 of this Act, even when the requirements stipulated therein
are not fulfilled, under the condition that such requirements are met within two years of the date
application of the REIT tax regime is sought.
REITs are taxed at a rate of 0% for corporate income tax. However, where dividends distributed to an
equity holder owning at least 5% of the REIT's share capital are exempt from taxation or taxed below
10%, such REIT will be subject to a special charge of 19% of the dividends distributed to said equity
holder, in respect of corporate income tax. If deemed applicable, this special charge must be be paid
by the REIT within two months after the dividend distribution date.
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.
The transitional period in which the Company had to meet all requirements of this tax regime ended in
2017. 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 2023.
Consequently, the Group's consolidated financial statements and the individual financial statements of
the Parent for 2023, prepared by its Directors, which are awaiting approval by the General Meeting,
have been prepared under the REIT Regime. However, the directors of the Parent consider that the
above financial statements will be approved without any material changes.
On the other hand, the financial statements for 2023 for the companies that make up the Group are
pending preparation by their respective Directors and are expected to be approved by their respective
General Shareholders' or Partners' Meetings within the deadlines established by applicable law.
The separate and consolidated financial statements published by Merlin Properties, SOCIMI, S.A. for
2022 prepared by its directors were approved by the Directors at the Annual General Meeting on 27
April 2023.
The 2022 separate annual financial statements of the Group companies, which were prepared by their
respective directors, were approved at the respective General Meetings within the periods in
applicable tax legislation.
In view of the business activities currently performed by the Group, it does not have any environmental
liability, expenses, assets, provisions or contingencies that might be material with respect to its equity,
financial position or results. Therefore, no specific disclosures relating to environmental issues are
included in these notes to the consolidated financial statements.
The Company did not change its corporate or trading name in 2023 or 2022.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-512": { "value": "Merlin Properties SOCIMI, S.A. (the \"Parent Company\")", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-513": { "value": "Merlin Properties SOCIMI, S.A.", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-514": { "value": "Merlin Properties SOCIMI, S.A.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-515": { "value": "SOCIMI, S.A.", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-516": { "value": "Spain", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-517": { "value": "Paseo de la Castellana 257, Madrid, Spain.", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-518": { "value": "Spain", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-519": { "value": "The Parent Company's corporate purpose, as in its bylaws, is as follows:\u2013 The acquisition and development of urban real estate for subsequent leasing, including the refurbishment of buildings as per the VAT Act;\u2013 The holding of equity interests in other REITs or in other non-resident entities in Spain with the same corporate purpose and which operate under a similar regime as that established for REITs with respect to the mandatory profit distribution policy enforced by law or by the bylaws;\u2013 The holding of equity interests in other resident or non-resident entities in Spain whose corporate purpose is to acquire urban real estate for subsequent leasing, and which operate under the same regime as that established for REITs with respect to the mandatory profit distribution policy enforced by law or by the bylaws, and which meet the investment requirements stipulated for these companies; and\u2013 The holding of shares or equity interests in collective real estate investment undertakings regulated by Law 35/2003, of 4 November, on collective investment undertakings, or any statute that may replace this in the future.In addition to the economic activity relating to the main corporate purpose, the Parent may also carry on any other ancillary activities, i.e., those that generate income, which in total represents less than 20% of its income in each tax period, or those that may be considered ancillary activities by law at the time.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-520": { "value": "
Consequently, the Group's consolidated financial statements and the individual financial statements of
the Parent for 2023, prepared by its Directors, which are awaiting approval by the General Meeting,
have been prepared under the REIT Regime. However, the directors of the Parent consider that the
above financial statements will be approved without any material changes.
On the other hand, the financial statements for 2023 for the companies that make up the Group are
pending preparation by their respective Directors and are expected to be approved by their respective
General Shareholders' or Partners' Meetings within the deadlines established by applicable law.
The separate and consolidated financial statements published by Merlin Properties, SOCIMI, S.A. for
2022 prepared by its directors were approved by the Directors at the Annual General Meeting on 27
April 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-521": { "value": "The Company did not change its corporate or trading name in 2023 or 2022.", "dimensions": { "concept": "ifrs-full:ExplanationOfChangeInNameOfReportingEntityOrOtherMeansOfIdentificationFromEndOfPrecedingReportingPeriod", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-522": { "value": "
2.\u00a0 \u00a0 Basis of presentation of the consolidated financial statements
2.1 Regulatory framework
The regulatory financial reporting framework applicable to the Group consists of the following:
\u2013 The Spanish Commercial Code and all other Spanish commercial laws.
\u2013 International Financial Reporting Standards (IFRSs) as adopted by the European Union
pursuant to Regulation (EC) No 1606/2002 of the European Parliament and Law 62/2003, of
30 December, on tax, administrative and social security measures, and applicable rules and
circulars of the Spanish National Securities Market Commission (CNMV);
\u2013 Law 11/2009, of 26 October, amended by REITs Act and all other commercial law; and
\u2013 All other applicable Spanish accounting legislation.
2.2 Basis of presentation of the consolidated financial statements
The consolidated financial statements for 2023 were obtained from the accounting records and
financial statements of the Parent and consolidated companies, and have been prepared in
accordance with the regulatory financial reporting framework described in Note 2.1 and, accordingly,
they constitute a fair presentation of the Group's consolidated equity and financial position at 31
December 2023 and the consolidated results of its operations, the changes in consolidated equity and
the consolidated cash flows in the year then ended.
Given that the accounting policies and measurement bases applied in preparing the Group's
consolidated financial statements for 2023 may differ from those applied by some of the Group
companies, the necessary adjustments and reclassifications were made on consolidation to unify
these policies and bases and to make them compliant with IFRSs as adopted by the European Union
To present the various items composing the consolidated financial statements in a uniform manner,
the accounting, policies and measurement bases used by the Parent were applied to all the
consolidated companies.
2.2.1 Adoption of Financial Reporting Standards and Interpretations effective as from 1 January\u00a0 2023
In 2023 the following standards, amendments and interpretations entered into force, which, where
applicable, were used by the Group in preparing these financial statements:
Standards, Amendments and
Interpretations
Description
Mandatory application in the
financial years beginning on or
after:
Amendments to IAS 1
Disclosure of accounting policies
Amendments that require companies to
appropriately identify the material accounting
policy information that should be disclosed in the
financial statements.
01 January 2023
Amendments to IAS 8
Definition of accounting estimate
Amendments and clarifications to help entities
distinguish changes in accounting estimates.
01 January 2023
Amendments to IAS 12
Deferred tax related to assets and liabilities
arising from a single transaction
Guidelines on the accounting treatment of
deferred tax related to assets and liabilities
arising from lease transactions and
decommissioning obligations.
01 January 2023
Amendments to IFRS 17
Insurance contracts - Initial application of
IFRS 17 and IFRS 9. Comparative
information
Amendments to the transition requirements of
IFRS 17 for insurers that apply to IFRS 17 and
IFRS 9 for the first time at the same time.
01 January 2023
Amendments to IAS 12
Tax reform \u2013 Pillar 2 Model Rules
This amendment introduces a mandatory
temporary exemption to the recognition of
deferred taxes from IAS 12 in connection with
the entry into force of the Pillar 2 international tax
model. It also includes additional disclosure
requirements.
01 January 2023
IFRS 17 Insurance contracts
Replaces IFRS 4 and includes the principles of
registration, measurement, presentation and
breakdown of insurance contracts with the
objective that the entity provides relevant and
reliable information that allows users of financial
information to determine the effect that insurance
contracts have on financial statements
01 January 2023
These standards and amendments have not had a significant impact.
All accounting policies and measurement bases with a significant effect on the consolidated financial
statements were applied.
2.2.2 Standards not yet in force in 2023
The following standards were not yet in force in 2023, either because their effective date is
subsequent to the date of the consolidated financial statements or because they had not yet been
adopted by the European Union.
Standards, Amendments and
Interpretations
Description
Mandatory application in the
financial years beginning on or
after:
Amendments to IFRS 16
Liabilities for leases in a sale under
subsequent lease
This change clarifies the subsequent accounting
of lease liabilities arising in sales and
subsequent leasebacks.
01 January 2024
Amendments to IAS 1
Classification of liabilities as current and non-
current and those subject to covenants
Clarifications regarding the presentation of
liabilities as current or non-current, and in
particular those maturing conditional on
compliance with covenants.
01 January 2024
Amendments to IAS 7 and IFRS 7
Supplier financing arrangements
This amendment introduces requirements for
discounting information specific to financial
agreements with suppliers and their effects on
the Company's liabilities and cash flows,
including liquidity risk and associated risk
management.
1 January 2024 (1)
Amendments to IAS 21
Lack of convertibility
This amendment establishes an approach that
specifies when one currency can be exchanged
for another, and if it is not, the exchange rate to
be used.
1 January 2025 (1)
(1) Approved for use in the European Union
At present, the Group is assessing the impacts that the future application of standards with a
mandatory application date from 1 January\u00a0 2024 could have on the consolidated financial statements
once they come into force, although these impacts are not expected to be significant.
2.3Functional currency
These consolidated financial statements are presented in euros, since the euro is the functional
currency in the area in which the Group operates.
2.4 Comparative information
The information relating to 2022 contained in these notes to the consolidated financial statements is
presented solely for comparison purposes with similar information relating to the year ended 31
December 2023.
2.5 Responsibility for the information and use of estimates
The information in these consolidated financial statements is the responsibility of the Parent's
directors.
In the Group's consolidated financial statements for 2023 estimates were occasionally made by the
senior executives of the Group and of the consolidated companies, later ratified by the directors, to
quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These
estimates relate basically to the following:
\u2013 The market value of the Group's property assets (see Note 5.1). The Group obtained
valuations from independent experts at 31 December 2023.
\u2013 The fair value of certain financial instruments (see Notes 5.5 and 5.6).
\u2013 The assessment of provisions and contingencies (see Note 5.11)
\u2013 Management of financial risk and, in particular, of liquidity risk and climate change risk (see
Note 23).
\u2013 The recovery of deferred tax assets and the tax rate applicable to temporary differences (see
Note 5.13).
\u2013 Compliance with the requirements that govern listed real estate investment companies (see
Note 1).
Changes in estimates:
Although these estimates were made based on the best information available at 31 December 2023,
future events may require that these estimates be modified prospectively (upwards or downwards),
according to IAS 8. The effects of any change would be recognised in the corresponding consolidated
income statement.
2.6Basis of consolidation applied
All companies over which effective control is exercised by virtue of holding a majority of the voting
rights in their representation and decision-making bodies and the power to determine the company's
financial and operational policies were fully consolidated; and companies in which the Group owns
more than a 20% interest and exercises significant influence without holding a majority of the voting
rights were accounted for using the equity method (see Note 9). Likewise,a significant influence on the
investments held by the Group with a participation rate of less than 20% is considered to exist if it has
representation on the Board of these companies of the parties related to it.
A number of adjustments have been made to align the accounting principles and measurement bases
of Group companies with those of the Parent, including the application of International Financial
Reporting Standards measurement bases to all Group companies and associates.
It was not necessary to unify accounting periods since the balance sheet date of all the Group
companies and associates is 31 December of each year.
2.6.1 Subsidiaries
Subsidiaries are considered to be those companies over which the Parent directly or indirectly
exercises control through subsidiaries. The Parent Company has control over a subsidiary when it is
exposed or has rights to variable returns from its involvement with the subsidiary, and when it has the
ability to exercise its power to affect its returns. The Parent Company has power when the voting
rights are sufficient to give it the ability to direct the relevant activities of the subsidiary. The Parent
Company is exposed or has rights to variable returns from its involvement with the subsidiary when its
returns from its involvement have the potential to vary as a result of the subsidiary's performance.
The financial statements of the subsidiaries are fully consolidated with those of the Parent.
Accordingly, all material balances and effects of the transactions between consolidated companies are
eliminated on consolidation.
Any third-party interests in the Group's equity and profit or loss are recognised under \"Non-controlling
interests\" in the consolidated statement of financial position and \"Result attributable to non-controlling
interests\" in the consolidated income statement and consolidated comprehensive income statement.
The results of subsidiaries acquired or sold during the year are included in the consolidated income
statements from the effective date of acquisition or until the effective date of disposal, as appropriate.
Appendix I includes information on Group companies and associates.
2.6.2 Associates
The companies listed in Appendix I, over which Merlin Properties, SOCIMI, S.A. does not exercise
control but rather has a significant influence, are included under \"Investments accounted for using the
equity method\" in the accompanying consolidated statement of financial position and are measured
using the equity method, which consists of the value of the net assets and any goodwill of the
associate. The share of these companies' net profit or loss for the year is included under \"Share of
results of associates accounted for using the equity method\" in the accompanying consolidated
income statement.
2.6.3 Inter-group transactions
Gains or losses on transactions between consolidated companies are eliminated on consolidation and
deferred until they are realised with third parties outside the Group. The capitalised expenses of Group
work on non-current assets are recognised at production cost, and any intra-Group results are
eliminated. Receivables and payables between consolidated Group companies and any intra-Group
income and expenses were eliminated.
2.6.4 First-time consolidation differences
At the date of an acquisition, the assets and liabilities of a subsidiary are measured at their fair values
at that date. Any excess of the cost of acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. When there is an negative difference between the acquisition cost
and the fair values of the identifiable net assets acquired (i.e. a discount on acquisition), the valuations
of the net assets are reviewed and, if applicable, said difference i is credited to profit or loss in the
period in which the acquisition is made.
2.6.5 Business combinations
The Group accounts for business combinations using the purchase method. The date of acquisition is
the date on which the Group takes control of the acquiree.
The consideration paid is calculated at the date of acquisition as the sum of the fair values of the
assets delivered, the liabilities incurred and assumed and the equity instruments issued by the Group
in exchange for control of the business acquired. Acquisition costs, such as professional fees, do not
form part of the cost of the business combination, but are taken directly to the consolidated income
statement.
Where applicable, the contingent consideration is recognised at the acquisition-date fair value.
Subsequent changes to the fair value of the contingent consideration are taken to the consolidated
income statement unless this change arises within the one-year period established as the provisional
accounting period, in which case the business combination will be modified.
Goodwill is calculated as the excess of the aggregate of the consideration transferred, any non-
controlling interests, and the fair value of any previously acquired interest less the net identifiable
assets acquired.
If the acquisition cost of the identifiable net assets is less than their fair value, the related difference is
recognised in the consolidated income statement for the year.
2.6.6 Scope of consolidation
The companies composing the Merlin Group at 31 December 2023, along with information relating to
the consolidation method, are listed in Appendix I of the consolidated financial statements.
2.7 Quantitative and qualitative information on current economic and geopolitical impacts
The main risk materialized in 2023 has been the uncertainty regarding the future evolution of the
markets and, therefore, of the investment, in a context in which the risks surrounding growth prospects
are increasing, considering that both interest rates and inflation rates will not reverse appreciably in
the short term.
This increase in interest rates has directly led to a reduction in the valuations of the group's real estate
investments by affecting both the exit yields and the discount rates used by independent external
valuators.
In recent quarters, the sharp rise in global inflation has required a synchronized, very rapid, and
intense tightening of monetary policies by the world's major central banks, although the pace of
tightening has been slowing during fiscal 2023.
Thus, based on a better-than-expected performance in 2023, the outlook for 2024 is for a continuation
of current trends, with overall growth very similar to that of 2023. During 2023, overall growth has been
able to hold up considerably better than expected, at around 3% compared to the 2.3% forecast for
2023, thanks to the support of the labor market and accumulated savings. However, some of the
incipient signs of weakening activity have already been seen recently in Spain and other economies,
which could already be reflecting some of the adverse effects of the tightening of financial conditions
on macroeconomic aggregates.
On the other hand, it is true, however, that the incipient signs of a slowdown in core inflation in Spain
and other countries should still be confirmed in the coming months.
There are also other very significant materialized risks. At an international level, geopolitical
uncertainties continue with the new conflict in the Middle East, which, although in this case has not
caused a sharp increase in energy prices, as occurred in other past wars in the area, still poses a
significant risk to global trade, as the recent attacks in the Red Sea and the war in Ukraine have
stalled with uncertain future developments. Not to mention a possible (but not likely) conflict between
China and Taiwan that could increase supply chain and global trade uncertainties.
Domestically, we highlight uncertainty over the outcome of political and social tensions, which could
lead to changes in legislation and other factors that could significantly impact Spain's overall economic
growth, as well as the environment in which the group operates in Catalonia and Spain as a whole, as
indicated by various players in the Spanish real estate market.
Measurement of fair value of investment property
The Group adjusted the fair value of its real estate investments according to IAS 40. This fair value is
determined using the reference of the valuations made by independent third parties every six months
so that, at the close of each six-month period, the fair value reflects the market conditions of the
elements of the investment properties at that date.
At 31 December 2023, the valuations performed by CBRE Valuation Advisory, S.A., Jones Lang
LaSalle, S.A. and Savills Consultores Inmobiliarios, S.A. did not indicate any type of uncertainty
regarding the market value of the Group's investment property.
The measurement methodology described in Note 7 was not changed.
With respect to the data centres activity, in 2023, the Group has integrated in its fair value the assets
built and that began operating in the year as the Group\u2019s Management believe that they meet the
necessary requirements to be measured at market value.
In this regard, although those assets are in their initial phase of activity, it should be pointed out that
assumptions of growth in occupancies, rent and standardised margins in mature markets have been
considered for these assets, as well as the rate of progress of the capacity expansion works.
Therefore, the valuation of those assets is highly sensitive to the achievement of the assumptions
considered, and there may be significant changes in value in case of deviations on them.
Meanwhile, the details of main assumptions used in the appraisals at December 2023 and December
2022 based on the nature of the assets and the sensitivities to increases and decreases of those
variables are included in Note 7.
Liquidity risk
In the opinion of the Parent's directors, the current economic situation of high inflation and interest rate
increases by the central banks may have a significant impact on the overall financial position of the
companies, which could be divided into the liquidity risk of the companies or groups and the liquidity
risk of customers (credit risk).
In this context, at 31 December 2023, the Group had a leverage ratio, understood as a debt to the fair
value of the assets (LTV) of 35% (this ratio is obtained from dividing the Company's net debt between
the fair value of the assets including transaction costs) and cash and cash equivalents (including
treasury shares) of EUR 476,633 thousand. There are no relevant debt maturities of the Group in the
next 12 months. The Group has a liquidity position, including the corporate credit line and undrawn
borrowings, of EUR 1,309 million (see Note 14).
The Parent's Directors and Management Team are constantly monitoring the evolution of the current
situation and the effects it may have on the credit market, and they believe that the Group's situation
at 31 December 2023 ensures that it will be solvent to fulfil the obligations on the balance sheet at 31
December 2023, and there is no material uncertainty about the continuity of the Group's operations.
Credit risk
With respect to the application of the simplified approach of impairment and credit risk, and also taking
into consideration other differential factors of the Group's portfolio of tenants and the characteristics of
their leases, and the amounts collected thus far, the Group has concluded that the increased credit
risk of its customers has not been significantly affected, this risk falling below 1% of turnover.
In relation to its other financial assets exposed to credit risk, which mainly correspond to loans to
associates and third parties, the Directors of the Parent have determined that there has not been a
significant increase in the risk, considering the measures agreed in some cases with tenants and the
long-term expectations based on the historical experience with those entities, which make it possible
to estimate that the credit risk will remain in line with the previous year.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-523": { "value": "
2.1 Regulatory framework
The regulatory financial reporting framework applicable to the Group consists of the following:
\u2013 The Spanish Commercial Code and all other Spanish commercial laws.
\u2013 International Financial Reporting Standards (IFRSs) as adopted by the European Union
pursuant to Regulation (EC) No 1606/2002 of the European Parliament and Law 62/2003, of
30 December, on tax, administrative and social security measures, and applicable rules and
circulars of the Spanish National Securities Market Commission (CNMV);
\u2013 Law 11/2009, of 26 October, amended by REITs Act and all other commercial law; and
\u2013 All other applicable Spanish accounting legislation.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-524": { "value": "
2.2.1 Adoption of Financial Reporting Standards and Interpretations effective as from 1 January\u00a0 2023
In 2023 the following standards, amendments and interpretations entered into force, which, where
applicable, were used by the Group in preparing these financial statements:
Standards, Amendments and
Interpretations
Description
Mandatory application in the
financial years beginning on or
after:
Amendments to IAS 1
Disclosure of accounting policies
Amendments that require companies to
appropriately identify the material accounting
policy information that should be disclosed in the
financial statements.
01 January 2023
Amendments to IAS 8
Definition of accounting estimate
Amendments and clarifications to help entities
distinguish changes in accounting estimates.
01 January 2023
Amendments to IAS 12
Deferred tax related to assets and liabilities
arising from a single transaction
Guidelines on the accounting treatment of
deferred tax related to assets and liabilities
arising from lease transactions and
decommissioning obligations.
01 January 2023
Amendments to IFRS 17
Insurance contracts - Initial application of
IFRS 17 and IFRS 9. Comparative
information
Amendments to the transition requirements of
IFRS 17 for insurers that apply to IFRS 17 and
IFRS 9 for the first time at the same time.
01 January 2023
Amendments to IAS 12
Tax reform \u2013 Pillar 2 Model Rules
This amendment introduces a mandatory
temporary exemption to the recognition of
deferred taxes from IAS 12 in connection with
the entry into force of the Pillar 2 international tax
model. It also includes additional disclosure
requirements.
01 January 2023
IFRS 17 Insurance contracts
Replaces IFRS 4 and includes the principles of
registration, measurement, presentation and
breakdown of insurance contracts with the
objective that the entity provides relevant and
reliable information that allows users of financial
information to determine the effect that insurance
contracts have on financial statements
01 January 2023
These standards and amendments have not had a significant impact.
All accounting policies and measurement bases with a significant effect on the consolidated financial
statements were applied.
", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-525": { "value": "
2.2.2 Standards not yet in force in 2023
The following standards were not yet in force in 2023, either because their effective date is
subsequent to the date of the consolidated financial statements or because they had not yet been
adopted by the European Union.
Standards, Amendments and
Interpretations
Description
Mandatory application in the
financial years beginning on or
after:
Amendments to IFRS 16
Liabilities for leases in a sale under
subsequent lease
This change clarifies the subsequent accounting
of lease liabilities arising in sales and
subsequent leasebacks.
01 January 2024
Amendments to IAS 1
Classification of liabilities as current and non-
current and those subject to covenants
Clarifications regarding the presentation of
liabilities as current or non-current, and in
particular those maturing conditional on
compliance with covenants.
01 January 2024
Amendments to IAS 7 and IFRS 7
Supplier financing arrangements
This amendment introduces requirements for
discounting information specific to financial
agreements with suppliers and their effects on
the Company's liabilities and cash flows,
including liquidity risk and associated risk
management.
1 January 2024 (1)
Amendments to IAS 21
Lack of convertibility
This amendment establishes an approach that
specifies when one currency can be exchanged
for another, and if it is not, the exchange rate to
be used.
1 January 2025 (1)
(1) Approved for use in the European Union
At present, the Group is assessing the impacts that the future application of standards with a
mandatory application date from 1 January\u00a0 2024 could have on the consolidated financial statements
once they come into force, although these impacts are not expected to be significant.
", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-526": { "value": "
2.3Functional currency
These consolidated financial statements are presented in euros, since the euro is the functional
currency in the area in which the Group operates.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-527": { "value": "
2.5 Responsibility for the information and use of estimates
The information in these consolidated financial statements is the responsibility of the Parent's
directors.
In the Group's consolidated financial statements for 2023 estimates were occasionally made by the
senior executives of the Group and of the consolidated companies, later ratified by the directors, to
quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These
estimates relate basically to the following:
\u2013 The market value of the Group's property assets (see Note 5.1). The Group obtained
valuations from independent experts at 31 December 2023.
\u2013 The fair value of certain financial instruments (see Notes 5.5 and 5.6).
\u2013 The assessment of provisions and contingencies (see Note 5.11)
\u2013 Management of financial risk and, in particular, of liquidity risk and climate change risk (see
Note 23).
\u2013 The recovery of deferred tax assets and the tax rate applicable to temporary differences (see
Note 5.13).
\u2013 Compliance with the requirements that govern listed real estate investment companies (see
Note 1).
Changes in estimates:
Although these estimates were made based on the best information available at 31 December 2023,
future events may require that these estimates be modified prospectively (upwards or downwards),
according to IAS 8. The effects of any change would be recognised in the corresponding consolidated
income statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-528": { "value": "
Changes in estimates:
Although these estimates were made based on the best information available at 31 December 2023,
future events may require that these estimates be modified prospectively (upwards or downwards),
according to IAS 8. The effects of any change would be recognised in the corresponding consolidated
income statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-529": { "value": "
2.6Basis of consolidation applied
All companies over which effective control is exercised by virtue of holding a majority of the voting
rights in their representation and decision-making bodies and the power to determine the company's
financial and operational policies were fully consolidated; and companies in which the Group owns
more than a 20% interest and exercises significant influence without holding a majority of the voting
rights were accounted for using the equity method (see Note 9). Likewise,a significant influence on the
investments held by the Group with a participation rate of less than 20% is considered to exist if it has
representation on the Board of these companies of the parties related to it.
A number of adjustments have been made to align the accounting principles and measurement bases
of Group companies with those of the Parent, including the application of International Financial
Reporting Standards measurement bases to all Group companies and associates.
It was not necessary to unify accounting periods since the balance sheet date of all the Group
companies and associates is 31 December of each year.
2.6.1 Subsidiaries
Subsidiaries are considered to be those companies over which the Parent directly or indirectly
exercises control through subsidiaries. The Parent Company has control over a subsidiary when it is
exposed or has rights to variable returns from its involvement with the subsidiary, and when it has the
ability to exercise its power to affect its returns. The Parent Company has power when the voting
rights are sufficient to give it the ability to direct the relevant activities of the subsidiary. The Parent
Company is exposed or has rights to variable returns from its involvement with the subsidiary when its
returns from its involvement have the potential to vary as a result of the subsidiary's performance.
The financial statements of the subsidiaries are fully consolidated with those of the Parent.
Accordingly, all material balances and effects of the transactions between consolidated companies are
eliminated on consolidation.
Any third-party interests in the Group's equity and profit or loss are recognised under \"Non-controlling
interests\" in the consolidated statement of financial position and \"Result attributable to non-controlling
interests\" in the consolidated income statement and consolidated comprehensive income statement.
The results of subsidiaries acquired or sold during the year are included in the consolidated income
statements from the effective date of acquisition or until the effective date of disposal, as appropriate.
Appendix I includes information on Group companies and associates.
2.6.2 Associates
The companies listed in Appendix I, over which Merlin Properties, SOCIMI, S.A. does not exercise
control but rather has a significant influence, are included under \"Investments accounted for using the
equity method\" in the accompanying consolidated statement of financial position and are measured
using the equity method, which consists of the value of the net assets and any goodwill of the
associate. The share of these companies' net profit or loss for the year is included under \"Share of
results of associates accounted for using the equity method\" in the accompanying consolidated
income statement.
2.6.3 Inter-group transactions
Gains or losses on transactions between consolidated companies are eliminated on consolidation and
deferred until they are realised with third parties outside the Group. The capitalised expenses of Group
work on non-current assets are recognised at production cost, and any intra-Group results are
eliminated. Receivables and payables between consolidated Group companies and any intra-Group
income and expenses were eliminated.
2.6.4 First-time consolidation differences
At the date of an acquisition, the assets and liabilities of a subsidiary are measured at their fair values
at that date. Any excess of the cost of acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. When there is an negative difference between the acquisition cost
and the fair values of the identifiable net assets acquired (i.e. a discount on acquisition), the valuations
of the net assets are reviewed and, if applicable, said difference i is credited to profit or loss in the
period in which the acquisition is made.
2.6.5 Business combinations
The Group accounts for business combinations using the purchase method. The date of acquisition is
the date on which the Group takes control of the acquiree.
The consideration paid is calculated at the date of acquisition as the sum of the fair values of the
assets delivered, the liabilities incurred and assumed and the equity instruments issued by the Group
in exchange for control of the business acquired. Acquisition costs, such as professional fees, do not
form part of the cost of the business combination, but are taken directly to the consolidated income
statement.
Where applicable, the contingent consideration is recognised at the acquisition-date fair value.
Subsequent changes to the fair value of the contingent consideration are taken to the consolidated
income statement unless this change arises within the one-year period established as the provisional
accounting period, in which case the business combination will be modified.
Goodwill is calculated as the excess of the aggregate of the consideration transferred, any non-
controlling interests, and the fair value of any previously acquired interest less the net identifiable
assets acquired.
If the acquisition cost of the identifiable net assets is less than their fair value, the related difference is
recognised in the consolidated income statement for the year.
2.6.6 Scope of consolidation
The companies composing the Merlin Group at 31 December 2023, along with information relating to
the consolidation method, are listed in Appendix I of the consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-530": { "value": "
2.6.1 Subsidiaries
Subsidiaries are considered to be those companies over which the Parent directly or indirectly
exercises control through subsidiaries. The Parent Company has control over a subsidiary when it is
exposed or has rights to variable returns from its involvement with the subsidiary, and when it has the
ability to exercise its power to affect its returns. The Parent Company has power when the voting
rights are sufficient to give it the ability to direct the relevant activities of the subsidiary. The Parent
Company is exposed or has rights to variable returns from its involvement with the subsidiary when its
returns from its involvement have the potential to vary as a result of the subsidiary's performance.
The financial statements of the subsidiaries are fully consolidated with those of the Parent.
Accordingly, all material balances and effects of the transactions between consolidated companies are
eliminated on consolidation.
Any third-party interests in the Group's equity and profit or loss are recognised under \"Non-controlling
interests\" in the consolidated statement of financial position and \"Result attributable to non-controlling
interests\" in the consolidated income statement and consolidated comprehensive income statement.
The results of subsidiaries acquired or sold during the year are included in the consolidated income
statements from the effective date of acquisition or until the effective date of disposal, as appropriate.
Appendix I includes information on Group companies and associates.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-532": { "value": "
2.6.2 Associates
The companies listed in Appendix I, over which Merlin Properties, SOCIMI, S.A. does not exercise
control but rather has a significant influence, are included under \"Investments accounted for using the
equity method\" in the accompanying consolidated statement of financial position and are measured
using the equity method, which consists of the value of the net assets and any goodwill of the
associate. The share of these companies' net profit or loss for the year is included under \"Share of
results of associates accounted for using the equity method\" in the accompanying consolidated
income statement.
5.3 Investments accounted for using the equity method
At 31 December 2023, 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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-531": { "value": "
2.6.2 Associates
The companies listed in Appendix I, over which Merlin Properties, SOCIMI, S.A. does not exercise
control but rather has a significant influence, are included under \"Investments accounted for using the
equity method\" in the accompanying consolidated statement of financial position and are measured
using the equity method, which consists of the value of the net assets and any goodwill of the
associate. The share of these companies' net profit or loss for the year is included under \"Share of
results of associates accounted for using the equity method\" in the accompanying consolidated
income statement.
Appendix I - Group companies and associates 2023
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-534": { "value": "
2.6.4 First-time consolidation differences
At the date of an acquisition, the assets and liabilities of a subsidiary are measured at their fair values
at that date. Any excess of the cost of acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. When there is an negative difference between the acquisition cost
and the fair values of the identifiable net assets acquired (i.e. a discount on acquisition), the valuations
of the net assets are reviewed and, if applicable, said difference i is credited to profit or loss in the
period in which the acquisition is made.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-533": { "value": "
2.6.4 First-time consolidation differences
At the date of an acquisition, the assets and liabilities of a subsidiary are measured at their fair values
at that date. Any excess of the cost of acquisition over the fair values of the identifiable net assets
acquired is recognised as goodwill. When there is an negative difference between the acquisition cost
and the fair values of the identifiable net assets acquired (i.e. a discount on acquisition), the valuations
of the net assets are reviewed and, if applicable, said difference i is credited to profit or loss in the
period in which the acquisition is made.
Goodwill is calculated as the excess of the aggregate of the consideration transferred, any non-
controlling interests, and the fair value of any previously acquired interest less the net identifiable
assets acquired.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-536": { "value": "
2.6.5 Business combinations
The Group accounts for business combinations using the purchase method. The date of acquisition is
the date on which the Group takes control of the acquiree.
The consideration paid is calculated at the date of acquisition as the sum of the fair values of the
assets delivered, the liabilities incurred and assumed and the equity instruments issued by the Group
in exchange for control of the business acquired. Acquisition costs, such as professional fees, do not
form part of the cost of the business combination, but are taken directly to the consolidated income
statement.
Where applicable, the contingent consideration is recognised at the acquisition-date fair value.
Subsequent changes to the fair value of the contingent consideration are taken to the consolidated
income statement unless this change arises within the one-year period established as the provisional
accounting period, in which case the business combination will be modified.
Goodwill is calculated as the excess of the aggregate of the consideration transferred, any non-
controlling interests, and the fair value of any previously acquired interest less the net identifiable
assets acquired.
If the acquisition cost of the identifiable net assets is less than their fair value, the related difference is
recognised in the consolidated income statement for the year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-535": { "value": "
2.6.5 Business combinations
The Group accounts for business combinations using the purchase method. The date of acquisition is
the date on which the Group takes control of the acquiree.
The consideration paid is calculated at the date of acquisition as the sum of the fair values of the
assets delivered, the liabilities incurred and assumed and the equity instruments issued by the Group
in exchange for control of the business acquired. Acquisition costs, such as professional fees, do not
form part of the cost of the business combination, but are taken directly to the consolidated income
statement.
Where applicable, the contingent consideration is recognised at the acquisition-date fair value.
Subsequent changes to the fair value of the contingent consideration are taken to the consolidated
income statement unless this change arises within the one-year period established as the provisional
accounting period, in which case the business combination will be modified.
Goodwill is calculated as the excess of the aggregate of the consideration transferred, any non-
controlling interests, and the fair value of any previously acquired interest less the net identifiable
assets acquired.
If the acquisition cost of the identifiable net assets is less than their fair value, the related difference is
recognised in the consolidated income statement for the year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-537": { "value": "
2.7 Quantitative and qualitative information on current economic and geopolitical impacts
The main risk materialized in 2023 has been the uncertainty regarding the future evolution of the
markets and, therefore, of the investment, in a context in which the risks surrounding growth prospects
are increasing, considering that both interest rates and inflation rates will not reverse appreciably in
the short term.
This increase in interest rates has directly led to a reduction in the valuations of the group's real estate
investments by affecting both the exit yields and the discount rates used by independent external
valuators.
In recent quarters, the sharp rise in global inflation has required a synchronized, very rapid, and
intense tightening of monetary policies by the world's major central banks, although the pace of
tightening has been slowing during fiscal 2023.
Thus, based on a better-than-expected performance in 2023, the outlook for 2024 is for a continuation
of current trends, with overall growth very similar to that of 2023. During 2023, overall growth has been
able to hold up considerably better than expected, at around 3% compared to the 2.3% forecast for
2023, thanks to the support of the labor market and accumulated savings. However, some of the
incipient signs of weakening activity have already been seen recently in Spain and other economies,
which could already be reflecting some of the adverse effects of the tightening of financial conditions
on macroeconomic aggregates.
On the other hand, it is true, however, that the incipient signs of a slowdown in core inflation in Spain
and other countries should still be confirmed in the coming months.
There are also other very significant materialized risks. At an international level, geopolitical
uncertainties continue with the new conflict in the Middle East, which, although in this case has not
caused a sharp increase in energy prices, as occurred in other past wars in the area, still poses a
significant risk to global trade, as the recent attacks in the Red Sea and the war in Ukraine have
stalled with uncertain future developments. Not to mention a possible (but not likely) conflict between
China and Taiwan that could increase supply chain and global trade uncertainties.
Domestically, we highlight uncertainty over the outcome of political and social tensions, which could
lead to changes in legislation and other factors that could significantly impact Spain's overall economic
growth, as well as the environment in which the group operates in Catalonia and Spain as a whole, as
indicated by various players in the Spanish real estate market.
Measurement of fair value of investment property
The Group adjusted the fair value of its real estate investments according to IAS 40. This fair value is
determined using the reference of the valuations made by independent third parties every six months
so that, at the close of each six-month period, the fair value reflects the market conditions of the
elements of the investment properties at that date.
At 31 December 2023, the valuations performed by CBRE Valuation Advisory, S.A., Jones Lang
LaSalle, S.A. and Savills Consultores Inmobiliarios, S.A. did not indicate any type of uncertainty
regarding the market value of the Group's investment property.
The measurement methodology described in Note 7 was not changed.
With respect to the data centres activity, in 2023, the Group has integrated in its fair value the assets
built and that began operating in the year as the Group\u2019s Management believe that they meet the
necessary requirements to be measured at market value.
In this regard, although those assets are in their initial phase of activity, it should be pointed out that
assumptions of growth in occupancies, rent and standardised margins in mature markets have been
considered for these assets, as well as the rate of progress of the capacity expansion works.
Therefore, the valuation of those assets is highly sensitive to the achievement of the assumptions
considered, and there may be significant changes in value in case of deviations on them.
Meanwhile, the details of main assumptions used in the appraisals at December 2023 and December
2022 based on the nature of the assets and the sensitivities to increases and decreases of those
variables are included in Note 7.
Liquidity risk
In the opinion of the Parent's directors, the current economic situation of high inflation and interest rate
increases by the central banks may have a significant impact on the overall financial position of the
companies, which could be divided into the liquidity risk of the companies or groups and the liquidity
risk of customers (credit risk).
In this context, at 31 December 2023, the Group had a leverage ratio, understood as a debt to the fair
value of the assets (LTV) of 35% (this ratio is obtained from dividing the Company's net debt between
the fair value of the assets including transaction costs) and cash and cash equivalents (including
treasury shares) of EUR 476,633 thousand. There are no relevant debt maturities of the Group in the
next 12 months. The Group has a liquidity position, including the corporate credit line and undrawn
borrowings, of EUR 1,309 million (see Note 14).
The Parent's Directors and Management Team are constantly monitoring the evolution of the current
situation and the effects it may have on the credit market, and they believe that the Group's situation
at 31 December 2023 ensures that it will be solvent to fulfil the obligations on the balance sheet at 31
December 2023, and there is no material uncertainty about the continuity of the Group's operations.
Credit risk
With respect to the application of the simplified approach of impairment and credit risk, and also taking
into consideration other differential factors of the Group's portfolio of tenants and the characteristics of
their leases, and the amounts collected thus far, the Group has concluded that the increased credit
risk of its customers has not been significantly affected, this risk falling below 1% of turnover.
In relation to its other financial assets exposed to credit risk, which mainly correspond to loans to
associates and third parties, the Directors of the Parent have determined that there has not been a
significant increase in the risk, considering the measures agreed in some cases with tenants and the
long-term expectations based on the historical experience with those entities, which make it possible
to estimate that the credit risk will remain in line with the previous year.
", "dimensions": { "concept": "mer:QuantitativeAndQualitativeInformationOnTheImpactsOfCovid19AndTheWarInUkraineTextBlock", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-538": { "value": "
Measurement of fair value of investment property
The Group adjusted the fair value of its real estate investments according to IAS 40. This fair value is
determined using the reference of the valuations made by independent third parties every six months
so that, at the close of each six-month period, the fair value reflects the market conditions of the
elements of the investment properties at that date.
At 31 December 2023, the valuations performed by CBRE Valuation Advisory, S.A., Jones Lang
LaSalle, S.A. and Savills Consultores Inmobiliarios, S.A. did not indicate any type of uncertainty
regarding the market value of the Group's investment property.
The measurement methodology described in Note 7 was not changed.
With respect to the data centres activity, in 2023, the Group has integrated in its fair value the assets
built and that began operating in the year as the Group\u2019s Management believe that they meet the
necessary requirements to be measured at market value.
In this regard, although those assets are in their initial phase of activity, it should be pointed out that
assumptions of growth in occupancies, rent and standardised margins in mature markets have been
considered for these assets, as well as the rate of progress of the capacity expansion works.
Therefore, the valuation of those assets is highly sensitive to the achievement of the assumptions
considered, and there may be significant changes in value in case of deviations on them.
Meanwhile, the details of main assumptions used in the appraisals at December 2023 and December
2022 based on the nature of the assets and the sensitivities to increases and decreases of those
variables are included in Note 7.
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.
Following the sale of the Net Lease branch of activity (see Note 3), the Group no longer holds income
derivatives.
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
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-539": { "value": "
Liquidity risk
In the opinion of the Parent's directors, the current economic situation of high inflation and interest rate
increases by the central banks may have a significant impact on the overall financial position of the
companies, which could be divided into the liquidity risk of the companies or groups and the liquidity
risk of customers (credit risk).
In this context, at 31 December 2023, the Group had a leverage ratio, understood as a debt to the fair
value of the assets (LTV) of 35% (this ratio is obtained from dividing the Company's net debt between
the fair value of the assets including transaction costs) and cash and cash equivalents (including
treasury shares) of EUR 476,633 thousand. There are no relevant debt maturities of the Group in the
next 12 months. The Group has a liquidity position, including the corporate credit line and undrawn
borrowings, of EUR 1,309 million (see Note 14).
The Parent's Directors and Management Team are constantly monitoring the evolution of the current
situation and the effects it may have on the credit market, and they believe that the Group's situation
at 31 December 2023 ensures that it will be solvent to fulfil the obligations on the balance sheet at 31
December 2023, and there is no material uncertainty about the continuity of the Group's operations.
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. At 31 December
2023, the Group's working capital amounted to EUR 385,294 thousand
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 2024.
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 2023 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:
2023
Thousands of euros
Less than 1
month
1 to 3
months
3 months to 1
year
Over 1
year
Total
Bank borrowings
395
-
1,234
1,224,615
1,226,244
Other non-current liabilities and guarantees
-
-
-
84,190
84,190
Trade and other payables (excluding payables to
public authorities)
30,735
70,360
31,521
-
132,616
Total
31,130
70,360
32,755
1,308,805
1,443,050
2022
Thousands of euros
Less than 1
month
1 to 3
months
3 months to 1
year
Over 1
year
Total
Bank borrowings
421
-
1,309
194,257
195,987
Other non-current liabilities and guarantees
-
-
-
86,407
86,407
Trade and other payables (excluding payables to
public authorities)
26,538
66,052
27,216
-
119,806
Total
26,959
66,052
28,525
280,664
402,200
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-540": { "value": "
The Parent's Directors and Management Team are constantly monitoring the evolution of the current
situation and the effects it may have on the credit market, and they believe that the Group's situation
at 31 December 2023 ensures that it will be solvent to fulfil the obligations on the balance sheet at 31
December 2023, and there is no material uncertainty about the continuity of the Group's operations.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-541": { "value": "
Credit risk
With respect to the application of the simplified approach of impairment and credit risk, and also taking
into consideration other differential factors of the Group's portfolio of tenants and the characteristics of
their leases, and the amounts collected thus far, the Group has concluded that the increased credit
risk of its customers has not been significantly affected, this risk falling below 1% of turnover.
In relation to its other financial assets exposed to credit risk, which mainly correspond to loans to
associates and third parties, the Directors of the Parent have determined that there has not been a
significant increase in the risk, considering the measures agreed in some cases with tenants and the
long-term expectations based on the historical experience with those entities, which make it possible
to estimate that the credit risk will remain in line with the previous year.
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 2023 are as follows.
2023
Thousands of euros
Less than 3
months
More than 3
and less than
o 6 months
6 months to
1 year
Over 1 year
(*)
Total
Loans to third parties
-
-
236
133,410
133,646
Equity instruments
-
-
-
9,915
9,915
Investments in associates
-
-
3,148
-
3,148
Guarantees and deposits
-
-
-
55,355
55,355
Trade and other receivables
28,169
25,039
9,390
-
62,598
Other current financial assets
1,606
-
-
-
1,606
Cash and cash equivalents
461,223
-
-
-
461,223
Total
490,998
25,039
12,774
198,680
727,491
(*) derivatives are not included
2022
Thousands of euros
Less than 3
months
More than 3
and less than
o 6 months
6 months to
1 year
Over 1 year
(*)
Total
Loans to third parties
-
-
236
129,498
129,734
Equity instruments
-
-
-
9,191
9,191
Investments in associates
-
-
2,498
-
2,498
Guarantees and deposits
-
-
-
53,477
53,477
Trade and other receivables
22,428
19,936
7,476
49,840
Other current financial assets
226
-
-
-
226
Cash and cash equivalents
429,449
-
-
-
429,449
Total
452,103
19,936
10,210
192,166
674,415
(*) derivatives are not included
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-542": { "value": "
3.\u00a0 \u00a0 Changes in the scope of consolidation
2023
The following changes in the scope of consolidation took place in 2023:
On 7 November 2023, the Group acquired 100% of the shares representing the share capital of Merlin
Edged, S.L.U. for EUR 3 thousand. At the date of preparation of these Consolidated Financial
Statements, this company was inactive.
On 13 January 2023, the Group acquired 7.32% of the shares representing the share capital of
Moregal Hotels, S.L. for EUR 1,585 thousand. The company owns land for tertiary use in the city of
Malaga.
In 2023, Metroparque, S.A. was fully split up with the winding-up of the company Metroparque, S.A.
through the en bloc transfer of its Shopping Centre business to Merlin Retail, S.L. and its Offices
business to Merlin Oficinas, S.L. (both wholly owned by Merlin Properties SOCIMI, S.A.). This
transaction had no effect on the Consolidated Financial Statements.
During 2023, the Group increased its stake in Silicius Real Estate, SOCIMI, S.A. to 17.91% (17.80%
previously) due to the distribution of a dividend by means of promissory notes convertible into shares
amounting to EUR 1,554 thousand.
2022
The following changes in the scope of consolidation took place in 2022.
-Departure of Tree Inversiones Inmobiliarias SOCIMI, S.A. (\"Tree\") from the scope
(discontinuation of the Net Lease branch of activity)
On 1 February 2022, the Group sent BBVA a communication containing, inter alia, a proposal to sell
100% of the shares of Tree Inversiones Inmobiliarias SOCIMI, S.A. In accordance with BBVA's right of
first refusal, on 1 April 2022 the Group received a communication from BBVA regarding its acceptance
of the proposed sale of Tree, which was subject, inter alia, to the approval of the Spanish National
Markets and Competition Commission (CNMC). On 1 June 2022, the CNMC authorised the
transaction and the sale was finalised on 15 June 2022.
Based on the above, the sale price of Tree Inversiones Inmobiliarias SOCIMI, S.A. amounted to EUR
1,987,400 thousand, which after early settlement of the debt associated with Tree and the transaction
costs, generating a gain at a consolidated level of EUR 215,452 thousand. In addition, Tree
Inversiones Inmobiliarias Socimi, S.A. has contributed EUR 6,279 thousand to the results up to the
date of the sale, after considering the effects of the liquidation of derivative financial instruments that it
held, and those that it had due to the application of IFRS 9 in past refinancings in previous financial
years.
Prior to the sale, on 21 March 2022, Tree Inversiones Inmobiliarias SOCIMI, S.A. agreed to distribute
a dividend of EUR 53,908 thousand to Merlin Properties SOCIMI, S.A. charged to profit for 2021.
For this reason, this Net Lease branch of activity was presented as discontinued in these consolidated
financial statements as of 31 December 2022.
The impact that the sale of Tree Inversiones Inmobiliarias SOCIMI, S.A. had on the consolidated
income statement at 31 December 2022 (in thousands of euros) is shown below:
Item
Net Lease
Profit/(Loss) after tax generated prior to
disposal
6,279
Loss from disposal
215,452
Profit for the year from discontinued
operations net of tax
221,731
The income, expenses and profit/(loss) before tax for the discontinued operations recognised in the
consolidated income statement are as follows (in thousands of euros):
Income statement
2022 (*)
Net Income (Note 18.a)
38,104
Other operating expenses (Note 18.b)
(1,231)
Impairment and gains or losses on disposal of non-current assets
101
Changes in value of investment property (Note 7)
-
PROFIT/(LOSS) FROM OPERATIONS
36,974
Finance costs (Note 18.d)
(53,852)
Changes in fair value in financial instruments (Notes 13.7 and 14.3)
23,157
FINANCIAL PROFIT/(LOSS)
(30,695)
PROFIT BEFORE TAX ON DISCONTINUED OPERATIONS
6,279
Income tax (Note 17)
-
PROFIT/(LOSS) FOR THE PERIOD CORRESPONDING TO DISCONTINUED
OPERATIONS
6,279
(*) 5-month and 14-day period
The net cash flows attributable to the operating, investment and financing activities of the discontinued
activities are as follows (in thousands of euros):
2022 (*)
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES:
36,596
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES:
-
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES:
(174,872)
(*) 5-month and 14-day period
-Entrants in the scope of consolidation
On 27 July 2022, Slack Tailwind Systems, S.L.U and Slow Rise Spain, S.L.U. entered into the scope
of consolidation. The Parent Company acquired 100% of the shares of both companies for EUR 3
thousand each. Subsequently, on 29 July and 15 September 2022, these companies have purchased,
respectively, part of the Serantes building in Madrid (see Note 7), this asset being their most relevant
contribution to the consolidated financial statements as of 31 December 2022.
On 3 August 2022, the Parent acquired 100% of the share capital of Generous Profile Unipessoal Lda.
for EUR 9 thousand. Subsequently, on 12 August 2022, Generous Profile Unipessoal Lda acquired the
Liberdade 195 building (see Note 7), and this asset was the most significant contribution to the
consolidated financial statements at 31 December 2022. In 2023, Generous Profile Unipessoal Lda.
has changed its corporate name to MPLIB \u2013 Investimentos Imobili\u00e1rios, Unipessoal Lda.
-Liquidation of PK Hoteles 22, S.L.
In 2022 the shareholders at the General Meeting of PK Hoteles 22, S.L. unanimously resolved to
liquidate the company, which is 32.50% owned by the Group. This transaction generated EUR 289
thousand in losses in the 2022 income statement.
", "dimensions": { "concept": "mer:DisclosureOfChangesInConsolidationPerimeterTextBlock", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-543": { "value": "Departure of Tree Inversiones Inmobiliarias SOCIMI, S.A. (\"Tree\") from the scope
(discontinuation of the Net Lease branch of activity)
On 1 February 2022, the Group sent BBVA a communication containing, inter alia, a proposal to sell
100% of the shares of Tree Inversiones Inmobiliarias SOCIMI, S.A. In accordance with BBVA's right of
first refusal, on 1 April 2022 the Group received a communication from BBVA regarding its acceptance
of the proposed sale of Tree, which was subject, inter alia, to the approval of the Spanish National
Markets and Competition Commission (CNMC). On 1 June 2022, the CNMC authorised the
transaction and the sale was finalised on 15 June 2022.
Based on the above, the sale price of Tree Inversiones Inmobiliarias SOCIMI, S.A. amounted to EUR
1,987,400 thousand, which after early settlement of the debt associated with Tree and the transaction
costs, generating a gain at a consolidated level of EUR 215,452 thousand. In addition, Tree
Inversiones Inmobiliarias Socimi, S.A. has contributed EUR 6,279 thousand to the results up to the
date of the sale, after considering the effects of the liquidation of derivative financial instruments that it
held, and those that it had due to the application of IFRS 9 in past refinancings in previous financial
years.
Prior to the sale, on 21 March 2022, Tree Inversiones Inmobiliarias SOCIMI, S.A. agreed to distribute
a dividend of EUR 53,908 thousand to Merlin Properties SOCIMI, S.A. charged to profit for 2021.
For this reason, this Net Lease branch of activity was presented as discontinued in these consolidated
financial statements as of 31 December 2022.
The impact that the sale of Tree Inversiones Inmobiliarias SOCIMI, S.A. had on the consolidated
income statement at 31 December 2022 (in thousands of euros) is shown below:
Item
Net Lease
Profit/(Loss) after tax generated prior to
disposal
6,279
Loss from disposal
215,452
Profit for the year from discontinued
operations net of tax
221,731
The income, expenses and profit/(loss) before tax for the discontinued operations recognised in the
consolidated income statement are as follows (in thousands of euros):
Income statement
2022 (*)
Net Income (Note 18.a)
38,104
Other operating expenses (Note 18.b)
(1,231)
Impairment and gains or losses on disposal of non-current assets
101
Changes in value of investment property (Note 7)
-
PROFIT/(LOSS) FROM OPERATIONS
36,974
Finance costs (Note 18.d)
(53,852)
Changes in fair value in financial instruments (Notes 13.7 and 14.3)
23,157
FINANCIAL PROFIT/(LOSS)
(30,695)
PROFIT BEFORE TAX ON DISCONTINUED OPERATIONS
6,279
Income tax (Note 17)
-
PROFIT/(LOSS) FOR THE PERIOD CORRESPONDING TO DISCONTINUED
OPERATIONS
6,279
(*) 5-month and 14-day period
The net cash flows attributable to the operating, investment and financing activities of the discontinued
activities are as follows (in thousands of euros):
2022 (*)
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES:
36,596
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES:
-
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES:
(174,872)
(*) 5-month and 14-day period
", "dimensions": { "concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-544": { "value": "
4.\u00a0 \u00a0 Distribution of the Parent's profit
The distribution of profit proposed by the Parent's directors for approval by its shareholders at the
Annual General Meeting is as follows:
Thousands of euros
Profit/(Loss) for the year
97,610
Distribution:
To legal reserves
-
To offset interim dividend
93,673
Dividends
3,937
To voluntary reserves
-
Other dividends distributed
On 16 November 2023, the Parent's Board approved the distribution of an interim dividend charged to
earnings for 2023 in the amount of EUR 93,673 thousand.
On 27 April 2023, the General Shareholders Meeting approved the distribution of a supplementary
dividend charged to profit for 2022 in the amount of EUR 113,350 thousand.
In the last five years, the Company distributed the following dividends and Share Premium refunds:
2023
2022
2021
2020
2019
Shareholder remuneration
207,023
561,926
210,099
68,518
232,347
Dividends
On 16 November 2023, the Board approved the distribution of an interim dividend charged to earnings
for 2023 in the amount of EUR 93,673 thousand.
On 27 April 2023, the General Shareholders Meeting approved the distribution of a supplementary
dividend charged to profit for 2022 in the amount of EUR 113,350 thousand.
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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-545": { "value": "
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 2023, calculated based on
appraisals performed by JLL and CBRE, independent appraisers not related to the Group, amounted
to EUR 10,566,124 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 2023, 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
2023.
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 2023, advance payments
amounting to EUR 18,682 thousand that are recorded in the heading \"Trade and other payables\" 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 2023, 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.
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.
Following the sale of the Net Lease branch of activity (see Note 3), the Group no longer holds income
derivatives.
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
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
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:
\u2013100% of the profit from dividends or shares in profits distributed by the entities referred to in
section 1, Article 2 of Law 11/2009.
\u2013At 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.
\u2013At 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:
\u2013Provisions: 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
\u2013Contingent 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 offices,
shopping centres, logistics units and data centres. 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.
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 communication of 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.
In this respect, the Group has recognised an expense of EUR 2,804 thousand in 2023 (EUR 2,804
thousand in 2022) with a balancing entry to reserves.
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 2023, 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:
\u2013 Assets 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.
\u2013 Liabilities 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.
\u2013 Derivative financial instruments not held for trading are classified as current or non-current
according to the period of maturity or periodic settlement.
5.17 Financial information by branch activity
In relation to IFRS 8 on operating segments, the Group\u2019s Management identifies them internally under
the definition of branch of activity, an aspect to be considered when reading the attached consolidated
financial statements and related financial information.
The Group groups its branches of activity based on the nature of the assets in the various areas in
which it implements its strategy. In this sense, each branch of activity 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 of them, 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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-546": { "value": "
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 2023, calculated based on
appraisals performed by JLL and CBRE, independent appraisers not related to the Group, amounted
to EUR 10,566,124 thousand (see Note 7).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-547": { "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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-548": { "value": "
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 2023, 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
2023.
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 2023, advance payments
amounting to EUR 18,682 thousand that are recorded in the heading \"Trade and other payables\" 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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-549": { "value": "
At 31 December 2023, 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
2023.
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 2023, advance payments
amounting to EUR 18,682 thousand that are recorded in the heading \"Trade and other payables\" of
the consolidated statement of financial position.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-550": { "value": "
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.
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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-551": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-552": { "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", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-553": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-554": { "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", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-555": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-556": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-557": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-558": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-559": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-560": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-561": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-567": { "value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
The breakdown, by type, of the balance of this heading in the consolidated statement of financial
position at 31 December 2023 and 2022 is as follows:
Classification of financial assets by category:
Thousands of euros
2023
2022
Non-current:
At fair value-
Interest rate derivatives
3,429
18,882
At cost-
Equity instruments
9,915
9,191
At amortised cost-
Loans to third parties
130,107
126,230
Loans to associates
3,303
3,268
Deposits and guarantees
55,355
53,477
202,109
211,048
Current:
At cost-
Investments in associates
3,148
2,498
At amortised cost-
Loans to third parties
236
236
Other financial assets
1,606
226
Trade and other receivables
62,598
49,840
67,588
52,800
The carrying amount of financial assets recognised at amortised cost does not differ from their fair
value.
Derivatives
At year-end 2023 and 2022, the measurement of interest rate derivatives with a debit balance was
recognised under 'Derivatives' (see Note 14).
Loans to third parties
\"Other non-current financial assets\" included the loan granted to Desarrollos 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 2023, due to the annual capitalisation of interest, the
outstanding amount was EUR 92,219 thousand in principal and EUR 318 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 37,571 thousand euros (35,189 thousand euros in 2022).
Deposits and guarantees
\"Deposits and guarantees\" primarily includes the guarantees provided by lessees as security
amounting to EUR 53,796 thousand (EUR 51,988 thousand at 31 December 2022), which the Group
has deposited with the housing authority (Instituto de la Vivienda) in each region. At 31 December
2023, guarantees provided by lessees as security amounted to EUR 64,567 thousand (EUR 62,964
thousand at 31 December 2022) and were recognised under \"Non-current liabilities \u2013 Other financial
liabilities\" on the liability side of the accompanying consolidated statement of financial position for
2023 (see Note 15).
Classification of financial assets by maturity:
The classification of financial assets by maturity at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Less than 1
year
From 1 to 5
years
Over 5 years
Undetermined
maturity
Total
Interest rate derivatives
-
-
3,429
-
3,429
Equity instruments
-
-
-
9,915
9,915
Loans to third parties and associates
236
22,089
111,321
-
133,646
Deposits and guarantees
-
-
-
55,355
55,355
Investments in Group companies and associates
3,148
-
-
-
3,148
Other financial assets
1,606
-
-
-
1,606
Trade and other receivables
62,598
-
-
-
62,598
Total financial assets
67,588
22,089
114,750
65,270
269,697
2022
Thousands of euros
Less than 1
year
From 1 to 5
years
Over 5 years
Undetermined
maturity
Total
Interest rate derivatives
-
6,084
12,798
-
18,882
Equity instruments
-
-
-
9,191
9,191
Loans to third parties and associates
236
20,863
108,635
-
129,734
Deposits and guarantees
-
-
-
53,477
53,477
Investments in Group companies and associates
2,498
-
-
-
2,498
Other financial assets
226
-
-
-
226
Trade and other receivables
49,840
-
-
-
49,840
Total financial assets
52,800
26,947
121,433
62,668
263,848
At 31 December 2023 and 2022, the heading \"Trade and other receivables\" included the following
items:
Thousands of euros
2023
2022
Trade and notes receivable
45,820
34,411
Sales debentures
6,186
6,718
Associates
589
549
Sundry accounts receivable
1,263
1,523
Remuneration payable
184
184
Other receivables from public authorities (Note 17)
19,515
17,849
Impairment of trade receivables
(10,959)
(11,394)
62,598
49,840
\"Trade and notes receivable\" in the accompanying consolidated statement of financial position at 31
December 2023 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
2022).
At 31 December 2023 and 2022, a breakdown by age of overdue receivables not considered impaired
is as follows:
Thousands of euros
2023
2022
Less than 30 days
7,927
1,947
31 to 60 days
1,748
1,987
61 to 90 days
1,002
1,469
Over 90 days
286
17
10,963
5,420
At 31 December 2023 and 2022, 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 2023 and 2022 were as follows:
Thousands of
euros
Balance at 31 December 2021
(13,324)
Charges for the year
(1,408)
Reversals/amounts used
3,279
Other
59
Balance at 31 December 2022
(11,394)
Charges for the year
(939)
Reversals/amounts used
1,320
Other
54
Balance at 31 December 2023
(10,959)
Losses from bad debts amounted to EUR 58 thousand in 2023. 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 branches of activity information in Note 6.
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 2023 and 2022, the amount included under \"Cash and cash equivalents\" was
unrestricted, except for EUR 5,527 thousand and EUR 4,720 thousand, respectively.
At 31 December 2023 and 2022 current and non-current liabilities were as follows:
Thousands of euros
2023
2022
Non-current:
Measured at amortised cost-
Syndicated loan
665,000
-
Syndicated loan arrangement expenses
(3,889)
-
Total syndicated loan
661,111
-
Non-mortgage loan
127,880
111,000
Mortgage loans
431,735
83,256
Loan arrangement expenses
(6,470)
(4,390)
Total other loans
553,145
189,866
Debentures and bonds
3,300,000
3,300,000
Debenture issue expenses
(16,663)
(20,666)
Total debentures and bonds
3,283,337
3,279,334
Total amortised cost
4,497,593
3,469,200
Measured at fair value
Derivative financial instruments
9,475
-
Total at fair value
9,475
-
Total non-current
4,507,068
3,469,200
Current:
Measured at amortised cost
Syndicated loan
1,144
195
Debentures and bonds
20,966
775,152
Mortgage loans
2,943
1,843
Revolving credit facility
525
410
Non-mortgage loan
291
347
Loan arrangement expenses
-
(116)
Total amortised cost
25,869
777,831
Measured at fair value
Derivative financial instruments
(375)
11
Total at fair value
(375)
11
Total current
25,494
777,842
There is no material difference between the carrying amount and the fair value of financial liabilities at
amortised cost.
The details of the Parent\u00b4s rating are as follows:
AGENCY
RATING
OUTLOOK
LAST REVIEW
PREVIOUS
Standard & Poor\u00b4s
BBB
Positive
30/05/2023
BBB Positive
Moody\u00b4s
Baa2
Positive
24/07/2023
Baa2 Positive
14.1 Loans
The breakdown of mortgage loans at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2023
Long-term
Short-term
Short-term
interest
Syndicated loan
665,000
(3,889)
665,000
-
1,144
Non-mortgage loan
220,225
(283)
127,880
-
291
Revolving credit facilities
740,000
(3,191)
-
-
525
Mortgage loans - other assets
441,000
(2,996)
431,735
1,629
1,314
Total
2,066,225
(10,359)
1,224,615
1,629
3,274
2022
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2022
Long-term
Short-term
Short-term
interest
Syndicated loan
600,000
-
-
-
195
Non-mortgage loan
220,225
(271)
111,000
-
347
Revolving credit facilities
700,000
(2,486)
-
-
410
Mortgage loans - other assets
91,000
(1,633)
83,256
1,731
112
Total
1,611,225
(4,390)
194,256
1,731
1,064
Syndicated loans and revolving credit facility - Parent
On 25 April 2019, the Group arranged a senior syndicated loan for EUR 1,550 million, including two
tranches, a corporate loan of EUR 850 million and a corporate credit facility of EUR 700 million
maturing 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 syndicated 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 syndicated loan for EUR 850
million.
In 2022, as a result of the early cancellation of this facility, the application of amortized cost in relation
to IFRS 9 represented a financial cost of EUR 4,213 thousand.
On 18 November 2022, the Parent arranged a new senior syndicated loan for EUR 600 million with
the possibility of being arranged before 24 April 2023 for the repayment of the bond maturing in 2023.
This facility has a maturity of 5 years from its disposal and accrues a market rate of EURIBOR plus
130 basis points. For the period in which the facility is not drawn down, a commission for the
unarranged balance of 26 basis points applies. As of, 20 April 2023 the Parent had drawn down this
facility in full.
In addition, on the same date, a novation agreement was entered into for the senior syndicated loan
including a Tranche B corresponding to a revolving credit line with a limit of EUR 700,000 thousand .
This new credit line has a maturity of 5 years with the possibility of two optional one-year extensions.
The revolving credit line accrues interest at a rate of EURIBOR + 100 basis points and incorporates a
cost adjustment mechanism based on four sustainability criteria.
On 18 July 2023, the novation of the syndicated loan and the credit line was signed. The senior
syndicated loan was increased to EUR 665 million with the incorporation of the amounts of the
bilateral loans from Kutxabank and Unicaja described in the following section. In addition, the credit
line limit was increased to EUR 740 million. At the end of December 2023 this line was not drawn
down.
These funds have the same commitment to maintain certain coverage ratios as the Group bonds and
in the facilities from Banco Sabadell and the European Investment Bank. 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's directors have confirmed that these
ratios were met at 31 December 2023 and do not expect that they will not be fulfilled in the coming
years.
Unsecured loans of the Parent
On 18 November 2022, the Parent arranged a loan without mortgage guarantee with Banco Sabadell
for EUR 60 million, maturing in January 2028 and accruing a market rate of EURIBOR 120 basis
points.
This facility includes commitments to maintain the coverage ratios described in the previous point. The
Parent's directors have confirmed that these ratios were met at 31 December 2023 and do not expect
that they will not be fulfilled in the coming years.
On 31 March 2023, the Parent arranged a loan without mortgage guarantee with Kutxabank, S.A. for
EUR 30 million, maturing 5 years after drawdown and accruing a market rate of EURIBOR + 130 basis
points. For the period in which the facility is not drawn down, a commission for the unarranged
balance of 26 basis points applies. As of 20 April 2023, this facility has been fully drawn down.
On 24 April 2023, the Parent arranged and drew down a loan without mortgage guarantee with
Unicaja Banco, S.A. for EUR 35 million, maturing 5 years after drawdown and accruing a market rate
of EURIBOR + 130 basis points.
On 18 July 2023, both entities (Kutxabank, S.A. and Unicaja Banco, S.A.) assented the senior
syndicated loan, becoming part of it.
Loans from the European Investment Bank
On 20 December 2018, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 51 million. On 4 November 2019, the Parent arranged the second tranche of the mortgage-
free loan with the European Investment Bank for EUR 64 million, with both tranches 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 facility. This loan accruals a fixed interest rate of 60 basis
points. On 20 December 2022, the Group drew down EUR 22 million at a rate of 358 basis points,
meaning the first tranche of EUR 51 million was drawn down in full.
On 20 December 2023, the Group had drawn down EUR 16.9 million at a rate of 386 basis points.
This loan corresponds to the first drawdown of the second tranche of EUR 64 million.
On 16 December 2021, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 45.2 million and maturing in 10 years. 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's directors have confirmed that these
ratios were met at 31 December 2023 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 2023 and 2022, the Group's subsidiaries had taken out the following mortgage loans:
2023
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
11,735
1,629
182
Mortgage
ING
70,000
70,000
-
29
Mortgage
BBVA
180,000
180,000
-
99
Mortgage
Allianz
170,000
170,000
-
1,004
Mortgage
Total
441,000
431,735
1,629
1,314
2022
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
13,256
1,731
100
Mortgage
ING
70,000
70,000
-
12
Mortgage
Total
91,000
83,256
1,731
112
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). It also envisages 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 can lead to certain
savings in the financial burden. The Parent's directors have confirmed that these ratios were met at 31
December 2023 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 2023, the application of the amortised cost in relation to these concepts involved a financial cost of
EUR 362 thousand (EUR 363 thousand in 2022).
On 27 July 2023, the Parent arranged a loan with BBVA secured by a mortgage on the Torre
Castellana. The loan is for EUR 180 million, with a term of 7 years, and accrues interest at a market
rate of EURIBOR + 110 basis points.
On 15 November 2023, the Parent entered into a loan with Allianz secured by a mortgage on a
portfolio of 4 office buildings in Madrid. The loan is for EUR 170 million, with a term of 10 years, and
accrues interest at a fixed rate of 4.523%.
These facilities require 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). The Parent's directors have confirmed that these ratios were met at 31
December 2023 and do not expect that they will not be fulfilled in the coming years.
Maturity of debt
The breakdown by maturity of these loan principals is as follows:
2023
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2024
-
1,629
-
1,629
2025
-
1,721
-
1,721
2026
-
71,808
-
71,808
2027
-
1,900
-
1,900
2028
725,000
1,996
-
726,996
Over 5 years
67,880
354,310
-
422,190
792,880
433,364
-
1,226,244
2022
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2023
-
1,731
-
1,731
2024
-
1,654
-
1,654
2025
-
1,743
-
1,743
2026
-
71,818
-
71,818
2027
-
1,890
-
1,890
Over 5 years
111,000
6,151
-
117,151
111,000
84,987
-
195,987
The Group had undrawn loans and credit facilities at 31 December 2023 with a number of financial
institutions totalling EUR 832.3 million (EUR 1,409 million at 31 December 2022).
None of the Group's debt was denominated in non-euro currencies at 31 December 2023 or 2022.
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 37,901 thousand in 2023 (EUR 8,595 thousand
in 2022) and is recognised in the accompanying consolidated income statement for 2023.
At 31 December 2023 and 2022, the debt arrangement expenses had been deducted from the
balance of \"Bank borrowings\". During the 2023 financial year, the Group has allocated an expense of
EUR 4,286 thousand (in 2022 EUR 8,827 thousand were allocated) under the heading \"Financial
expenses\" of the attached consolidated income statement (see Note 18.d). 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 supplement
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 programme up
to an amount of EUR 6,000 million, the increase being performed on 21 March 2021. On 27 April
2023, the General Meeting authorised the bond-issue programme up to the same amount. On 4
August 2022 and 11 May 2023, the programme was updated 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 25 April 2023, the Group repaid the bond at its maturity in an amount of EUR 742.8 million.
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 ratio compliance obligations
as the syndicated loan and the revolving credit facility.
The breakdown at 31 December 2023 and 2022 of the bonds issued by Parent is as follows:
2023
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
may-25
600
1.750%
MS +82 b.p.s.
3.94%
Luxemburg
nov-26
800
1.875%
MS +74 b.p.s.
3.32%
Luxemburg
jul-27
500
2.375%
MS +105 b.p.s.
3.54%
Luxemburg
sep-29
300
2.375%
MS +102 b.p.s.
3.44%
Luxemburg
jun-30
500
1.375%
MS +176 b.p.s.
4.18%
Luxemburg
dic-34
600
1.875%
MS +184 b.p.s.
4.35%
Luxemburg
3,300
1.898%
2022
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
April 2023
743
2.225%
MS +98 b.p.s.
3.32%
Luxembourg
May 2025
600
1.750%
MS +115 b.p.s.
4.44%
Luxembourg
November 2026
800
1.875%
MS +168 b.p.s.
4.88%
Luxembourg
July 2027
500
2.375%
MS +183 b.p.s.
5.01%
Luxembourg
September 2029
300
2.375%
MS +210 b.p.s.
5.24%
Luxembourg
June 2030
500
1.375%
MS +205 b.p.s.
5.18%
Luxembourg
December 2034
600
1.875%
MS +232 b.p.s.
5.46%
Luxembourg
4,043
1.958%
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 2023 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 67,755 thousand (EUR 81,040
thousand in 2022) and is recognised in the accompanying consolidated income statement for 2023.
The accrued interest payable at 31 December 2023 amounted to EUR 20,966 thousand (EUR 32,366
thousand in 2022). Debt arrangement expenses taken to the consolidated income statement in 2023
amounted to EUR 4,119 thousand (EUR 4,901 thousand in 2022).
14.3 Derivatives
A breakdown of the financial instruments as of 31 December 2023 is as follows:
Thousands of euros
2023
2022
Non-current:
Asset interest rate
(3,429)
(18,882)
Liability interest rate
9,475
-
Other (Note 9)
14,828
9,256
Total non-current
20,874
(9,626)
Current:
Interest rate derivatives
(375)
11
Total current
(375)
11
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 2023 and 2022 is as follows:
2023
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
(3,429)
9,475
Current:
Interest rate derivatives
-
(375)
Total derivatives recognised
(3,429)
9,100
2022
.
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
18,882
-
Current:
Interest rate derivatives
-
11
Total derivatives recognised
18,882
11
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 67,900
thousand at a cost of 0.31%.
In addition to the early repayment of the EUR 850 million syndicated loan, in June 2022, the Group
cancelled the interest rate hedging instruments associated with this corporate syndicated loan.
In 2023 and 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 665,000 thousand at a
fixed cost of 2.537%.
In 2022, an interest rate hedge 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%.
In addition, in 2023, an interest rate hedge was contracted to cover BBVA's mortgage loan until its
maturity in July 2030 for a notional amount of EUR 180,000 thousand and a fixed cost of 2.363%.
The interest rate derivatives contracted by the Group and their fair values are as follows:
2023
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2023
2024
2025
2026
years
Syndicated Parent Company
2.537%
7,546
665,000
665,000
665,000
665,000
665,000
Non-mortgage - Parent Company
2.512%
562
60,000
60,000
60,000
60,000
60,000
Mortgage - Parent Company
2.363%
1,012
180,000
180,000
180,000
180,000
180,000
Other subsidiaries
0.310%
(3,449)
67,900
67,900
67,900
67,900
67,900
5,671
972,900
972,900
972,900
972,900
972,900
2022
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2022
2023
2024
2025
years
Syndicated Parent Company (starting
2023)
2.574%
(11,394)
-
500,000
500,000
500,000
500,000
Non-mortgage - Parent Company
2.512%
(1,386)
60,000
60,000
60,000
60,000
60,000
Other subsidiaries
0.310%
(6,091)
67,900
67,900
67,900
67,900
67,900
(18,871)
127,900
627,900
627,900
627,900
627,900
The Group has opted for hedge accounting, suitably designating the hedging relationships in which
these financial instruments are hedging instruments of the financing used by the Group. In this
manner, the Group has neutralized flow variations stemming from interest payments and fixed the rate
to be paid for said financing. The derivatives that are highly effective prospectively and retrospectively,
cumulatively, since the date of designation, are those associated with the Banco Sabadell new
syndicated financing and bilateral loan and the BBVA mortgage loan, so their changes in value are
recognised in equity.
The Group has recognised in equity the fair value of the derivatives that meet the effectiveness
requirements, without considering any tax effect due to adhering to the REIT regime. Under the
heading 'Changes in fair value in financial instruments' of the consolidated income statement, the
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 expense in the amount of EUR 660
thousand in 2023 (income of EUR 35,348 thousand in 2022).
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 2023 and 2022 would be as follows:
2023
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(20,530)
19,887
643
5% reduction in credit risk rate
19,948
(19,317)
(631)
2022
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(13,030)
12,130
901
5% reduction in credit risk rate
13,446
(12,524)
(921)
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 2023 and 2022
was as follows:
2023
Thousands of euros
31/12/2022
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Reclasific
ation
Accrued
interest
Other
adjustments
31/12/2023
Long-term loans
194,256
1,031,880
-
(1,629)
-
108
1,224,615
Short-term loans
2,385
(1,623)
(33,457)
1,629
35,444
-
4,378
Short-term revolving
credit facilities
410
-
(2,342)
-
2,457
-
525
L/T bonds
3,300,000
-
-
-
-
-
3,300,000
S/T bonds
775,152
(742,786)
(79,152)
-
67,755
(3)
20,966
4,272,203
287,471
(114,951)
-
105,656
105
4,550,484
2022
Thousands of euros
31/12/2021
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Discontinu
ed Ops
Principal
Debt
Accrued
interest
Interest
accrued
Discontinu
ed Ops
Other
adjustments
31/12/2022
Long-term loans
1,623,758
(768,000)
-
(659,771)
(1,731)
-
-
-
194,256
Short-term loans
13,154
(1,750)
(6,574)
(13,482)
1,731
6,398
2,908
-
2,385
Short-term revolving
credit facilities
410
-
(2,198)
-
-
2,197
-
1
410
L/T bonds
4,042,786
-
-
-
(742,786)
-
-
-
3,300,000
S/T bonds
588,622
(548,300)
(88,999)
-
742,786
81,040
-
3
775,152
6,268,730
(1,318,050)
(97,771)
(673,253)
-
89,635
2,908
4
4,272,203
In addition, under the interest rate hedging agreements signed (see Note 14.3), the net balance of the
settlements amounted to EUR 5,652 thousand in 2023 (negative balance of EUR 2,819 thousand in
2022).
14.5 Debt arrangement expenses
Changes in debt arrangement expenses during 2023 and 2022 are as follows:
Thousands of euros
31/12/2022
Allocation to
profit and loss
account \u2013
Amortised cost
Impact of
IFRS 9 on
income
statement
Capitalisations
31/12/2023
of arrangement
expenses
Non-mortgage financing
2,757
(3,730)
-
8,336
7,363
Mortgage loans - other assets
1,633
(194)
(362)
1,919
2,996
Debentures and bonds
20,782
(4,119)
-
-
16,663
25,172
(8,043)
(362)
10,255
27,022
Thousands of euros
31/12/2021
Allocation to
profit and loss
account \u2013
Amortised cost
Impact of
IFRS 9 on
income
statement
Capitalisations
31/12/2022
Discontinued
Ops
of arrangement
expenses
Non-mortgage financing
10,855
(4,125)
(4,213)
-
240
2,757
Senior syndicated loan (Tree)
48,106
-
-
(48,106)
-
-
Mortgage loans - other assets
2,123
(127)
(363)
-
-
1,633
Debentures and bonds
25,683
(4,901)
-
-
-
20,782
86,767
(9,153)
(4,576)
(48,106)
240
25,172
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-566": { "value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-565": { "value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-564": { "value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
In addition, Note 7 includes information regarding the determination of the fair value of investment
property.
.", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-563": { "value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
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 2023 and 2022, 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 10,566,124 thousand (EUR 10,558,975 in 2022). This measurement does not include the value
of the use rights recognised by the application of IFRS 16 for EUR 51,903 thousand (EUR 37,152
thousand in 2022) 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 21,736 thousand (EUR 118,072
thousand in 2022). 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 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. In the case of data centres, 7-year
projections were used, which is the period considered for the stabilisation of the market. 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 2023 and 2022
were as follows:
Thousands of euros
2023
2022
Valuation services
651
459
Total
651
459
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:
2023
Thousands of euros
Total
Level 1
Level 2
Level 3
Fair value measurement
Investment property:
Offices
Land
2,172,572
-
-
2,172,572
Buildings
4,117,250
-
-
4,117,250
Shopping centres
Land
379,805
-
-
379,805
Buildings
1,626,043
-
-
1,626,043
Logistics-
Land
405,689
-
-
405,689
Buildings
1,242,625
-
-
1,242,625
Data Centers-
Land
31,852
-
-
31,852
Buildings
318,325
-
-
318,325
Other-
Land
148,680
-
-
148,680
Buildings
196,922
-
-
196,922
Total assets measured at fair value
10,639,763
-
-
10,639,763
2022
Thousands of euros
Total
Level 1
Level 2
Level 3
Fair value measurement
Investment property:
Offices
Land
2,238,869
-
-
2,238,869
Buildings
4,271,005
-
-
4,271,005
Shopping centres
Land
433,159
-
-
433,159
Buildings
1,701,344
-
-
1,701,344
Logistics-
Land
374,180
-
-
374,180
Buildings
1,183,830
-
-
1,183,830
Data Centers (*) -
Land
21,889
-
-
21,889
Buildings
92,552
-
-
92,552
Other-
Land
175,439
-
-
175,439
Buildings
221,933
-
-
221,933
Total assets measured at fair value
10,714,200
-
-
10,714,200
(*) Valued at cost
No assets were reclassified from one level to another during 2023 or 2022. At 31 December 2023 and
2022, the gross surface areas and occupancy rates of the assets were as follows:
2023
Square metres (*)
Occupancy
rate (%)
Gross leasable area
Comm. of
Madrid
Catalonia
Comm. of
Valencia
Galicia
Andalusia
Basque
Country
Castille-
La
Mancha
Rest of
Spain
Portugal
Total
Offices
812,916
205,506
-
-
15,078
-
-
-
123,832
1,157,332
92.5%
Shopping
centres
74,606
31,905
49,897
118,105
37,956
25,922
-
32,869
60,089
431,349
96,2% (**)
Logistics
330,375
132,100
61,604
-
139,218
99,491
633,841
21,579
45,171
1,463,379
99.0%
Data Centers
22,508
22,131
-
-
-
17,600
-
-
-
62,239
n.a. (1)
Other
38,161
16,472
-
5,898
-
46
-
-
-
60,577
98.0%
Total surface
area
1,278,566
408,114
111,501
124,003
192,252
143,059
633,841
54,448
229,092
3,174,876
96.2%
% weight
40.3%
12.9%
3.5%
3.9%
6.1%
4.5%
20.0%
1.7%
7.2%
100.0%
(*) Not including square metres of ongoing projects or land.
(**) Excluding vacant units acquired for refurbishment.
(1) The market standard for data centres is to measure occupancy on the basis of processing capacity, and not in relation to
leasable surface area. At 31 December 2023, the Group's 3 data centres currently in operation had a processing available
capacity of 9 MW, with 6.2 MW (68.9%) committed at that date. The Group considers as committed capacity the capacity
physically occupied at the reference date or with respect to which, without being occupied at that date, there are contractual
commitments reserving that capacity to ensure the future growth of the Group's customers.
2022
Square metres (*)
Occupancy
rate (%)
Gross leasable area
Comm. of
Madrid
Catalonia
Comm. of
Valencia
Galicia
Andalusia
Basque
Country
Castille-
La
Mancha
Rest of
Spain
Portugal
Total
Offices
814,938
205,312
-
-
15,078
-
-
-
137,547
1,172,875
92.5%
Shopping
centres
75,685
64,096
64,352
100,577
37,956
25,922
-
32,758
60,049
461,395
95.0%
Logistics
330,375
132,100
61,604
-
138,777
99,491
633,926
42,343
45,171
1,483,787
97.0%
Data Centers
-
-
-
-
-
-
-
-
-
-
n.a. (1)
Other
38,043
20,540
-
5,898
-
46
-
-
-
64,527
97.3%
Total surface
area
1,259,041
422,048
125,956
106,475
191,811
125,459
633,926
75,101
242,767
3,182,584
95.1%
% weight
39,6%
13,3%
4,0%
3,3%
6,0%
3,9%
19,9%
2,4%
7,6%
100,0%
(*) Not including square metres of ongoing projects or land
(1) During 2022, the Group's data centres were under construction.
Hypotheses used in the valuation
In relation to the determination of the fair value of investment property, the significant non-observable
input data used in the measurement of fair value corresponds to the rental income, the futureexit
yields and the rate used to discount the cash flows of the projections.
The quantitative information on the significant non-observable input data used in measuring fair value
is shown below.
2023
Exit yield
Discount rate
Offices
3.70% - 7.35%
5.20% - 10.10%
Shopping centres
3,92% - 7,75%
6.25% - 9.75%
Logistics
4.75% - 6.25%
6.25% - 9.50%
Data Centers
5.50% - 6.25%
12.00%
Other
4.50% - 7.50%
5.25% - 16.00%
2022
Exit yield
Discount rate
Offices
3.15% - 7.25%
5.15% - 10.25%
Shopping centres
3.75% - 8.50%
6.25% - 11.50%
Logistics
4.25% - 6.75%
5.50% - 15.00%
Data Centers (*)
n.a.
n.a.
Other
4.00% - 7.75%
4.00% - 15.50%
(*) Valued at cost in 2022
Market rents: the amounts per square metre used in the valuation have ranged between 61.79 and
2.41 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 2023
Thousands of euros
31.12.2023
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in IRR
(206,813)
(408,786)
(798,719)
(206,813)
(408,786)
(798,719)
Decrease in IRR
211,785
428,677
878,346
211,785
428,677
878,346
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
31.12.2022
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in IRR
(209,672)
(414,387)
(809,469)
(209,672)
(414,387)
(809,469)
Decrease in IRR
214,765
434,763
891,041
214,765
434,763
891,041
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
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 2023
Thousands of euros
Assets
Consolidated profit/(loss) before tax
1%
5%
10%
1%
5%
10%
Increase in rents
83,131
415,654
831,308
83,131
415,654
831,308
Decrease in rents
(83,131)
(415,654)
(831,308)
(83,131)
(415,654)
(831,308)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
Assets
Consolidated profit/(loss) before tax
1%
5%
10%
1%
5%
10%
Increase in rents
84,038
420,192
840,385
84,038
420,192
840,385
Decrease in rents
(84,038)
(420,192)
(840,385)
(84,038)
(420,192)
(840,385)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
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 2023
Thousands of euros
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in exit yield
(293,554)
(562,416)
(1,037,559)
(293,554)
(562,416)
(1,037,559)
Decrease in exit yield
321,810
676,164
1,504,467
321,810
676,164
1,504,467
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in exit yield
(324,196)
(619,262)
(1,136,413)
(324,196)
(619,262)
(1,136,413)
Decrease in exit yield
357,865
754,929
1,695,592
357,865
754,929
1,695,592
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Details of the \"Change in value of investment property\" in the accompanying consolidated income
statement are as follows:
Type of asset
Thousands of euros
2023
2022
Offices
(307,108)
(149,149)
Shopping centres
(125,127)
(81,387)
Logistics
51,150
(16,374)
Data Centers
92,081
-
Other
(46,980)
(2,362)
(335,984)
(249,272)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-562": { "value": "
The Group's financial assets and liabilities measured at fair value were as follows at 31 December
2023:
2023
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(9,475)
(14,828)
(24,303)
Financial instruments - assets (Note 14.3)
-
3,804
-
3,804
-
(5,671)
(14,828)
(20,499)
2022
Thousands of euros
Level 1
Level 2
Level 3
Total
Derivative financial instruments (Note 14.3)
-
(11)
(9,256)
(9,267)
Financial instruments - assets (Note 14.3)
-
18,882
-
18,882
-
18,871
(9,256)
9,615
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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-568": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-569": { "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:
\u2013100% of the profit from dividends or shares in profits distributed by the entities referred to in
section 1, Article 2 of Law 11/2009.
\u2013At 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.
\u2013At 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-570": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-571": { "value": "
5.11 Provisions
When preparing the consolidated financial statements the Parent's directors made a distinction
between:
\u2013Provisions: 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
\u2013Contingent 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-572": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-573": { "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 offices,
shopping centres, logistics units and data centres. 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-574": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-575": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-576": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-577": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-578": { "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.
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 communication of 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.
In this respect, the Group has recognised an expense of EUR 2,804 thousand in 2023 (EUR 2,804
thousand in 2022) with a balancing entry to reserves.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-579": { "value": "
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 communication of 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.
In this respect, the Group has recognised an expense of EUR 2,804 thousand in 2023 (EUR 2,804
thousand in 2022) with a balancing entry to reserves.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTermsAndConditionsOfSharebasedPaymentArrangementExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-581": { "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 2023, 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-580": { "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 2023, the Group does not have commitments for this item, and there is
no Downsizing Plan in force.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-582": { "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:
\u2013 Assets 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.
\u2013 Liabilities 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.
\u2013 Derivative 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-583": { "value": "
5.17 Financial information by branch activity
In relation to IFRS 8 on operating segments, the Group\u2019s Management identifies them internally under
the definition of branch of activity, an aspect to be considered when reading the attached consolidated
financial statements and related financial information.
The Group groups its branches of activity based on the nature of the assets in the various areas in
which it implements its strategy. In this sense, each branch of activity 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 of them, assess its performance and for which differentiated financial information is
available.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-584": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-585": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-586": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-587": { "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.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-588": { "value": "
6.\u00a0 \u00a0 Financial information by branch of activities
a) Criteria
Group management has segmented its activities into the branches of activity detailed below according
to the type of assets acquired and managed:
\u2013Office buildings
\u2013Shopping centres
\u2013Logistics assets
\u2013\u00a0 \u00a0 Data centers
\u2013Others: Assets not included in the above branches of activity, which mainly correspond to 3 hotels
(which are part of other buildings corresponding to the offices and shopping centre branches of
activity), non-strategic land 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 branches of
activity (prepared using a management approach) and the Group's consolidated financial statements.
The profits of each branch of activity, and each asset within each of them, are used to measure
performance as the Group considers this information to be the most relevant when evaluating the
results of the branches of activity compared with other groups operating in the same businesses.
The Group performed its business activities in Spain and Portugal in the year ended 31 December
2023.
In fiscal year 2023, the Group has identified the management of Data Center assets as a branch of
activity, an aspect to be considered in order to compare the information with the previous fiscal year in
which the aforementioned branch of activity was under development.
b) Basis and methodology for information by branch of activity
The information by branch of activity 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 branches of activity follow the same accounting policies as the Group,
which are described in Note 5.
The ordinary income of the branch of activity relates to ordinary revenue directly attributable to the
branch of activity plus the relevant proportion of the Group\u2019s general income that can be allocated on a
reasonable basis to that segment. The ordinary income of each branch of activity does not include
interest or dividend income, gains on the disposal of investment property, debt recoveries or
cancellation.
The expenses of each branch of activity 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 branch of activity.
The profit or loss of the branch of activity is presented before any adjustment for non-controlling
interests.
The assets and liabilities of the branches of activity are those directly related to each branch of
activity'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.
Branch of activities information
The information by branch of activity at 31 December 2023 is presented below:
Thousands of euros
2023
Office
buildings
Shopping
centres
Logistics
Data
Centers
Other
Corporate
Unit
Group total
Revenue from non-Group customers
Rental income
239,411
116,129
77,399
539
13,729
-
447,207
Services rendered
11,721
2,075
-
2,499
-
1,277
17,572
Net income
251,132
118,204
77,399
3,038
13,729
1,277
464,779
Other operating income
3,643
252
167
-
1
691
4,754
Staff costs
(6,958)
(6,672)
(2,024)
(295)
-
(18,896)
(34,845)
Operating expenses
(30,688)
(14,842)
(2,259)
(5,377)
(3,463)
(16,696)
(73,325)
Gains or losses on disposals of non-current
assets
95
(10,376)
399
-
2,859
-
(7,023)
Depreciation and amortisation charge
(642)
-
-
-
(12)
(1,421)
(2,075)
Allocation of grants relating to non-
financial assets and others
36
-
-
-
-
-
36
Allocation/Excess provisions
-
-
-
(1,212)
-
(6,198)
(7,410)
Changes in fair value of investment
property
(307,108)
(125,127)
51,150
92,081
(46,980)
-
(335,984)
Profit/(Loss) from operations
(90,490)
(38,561)
124,832
88,235
(33,866)
(41,243)
8,907
Changes in fair value of financial
instruments - Other
-
-
(660)
-
-
(5,572)
(6,232)
Finance income
-
6
-
-
-
10,100
10,106
Finance expenses
(4,050)
-
(8,708)
(8,885)
(1,606)
(104,537)
(127,786)
Gains on disposal of financial instruments
-
-
-
-
-
-
-
Share of results of companies accounted for
using the equity method
-
-
-
-
-
39,923
39,923
Translation differences
-
-
-
-
-
90
90
Profit/(Loss) before tax
(94,540)
(38,555)
115,464
79,350
(35,472)
(101,239)
(74,992)
Income tax
(1,328)
(4,307)
(1,904)
-
-
(966)
(8,505)
Profit/(Loss) for the year
(95,868)
(42,862)
113,560
79,350
(35,472)
(102,205)
(83,497)
Thousands of euros
At 31 December 2023
Office
buildings
Shopping
centres
Logistics
Data
Centers
Other
Corporate
Unit
Group total
Investment property
6,289,822
2,005,848
1,648,314
350,177
345,602
-
10,639,763
Non-current financial assets-
27,540
25,329
12,827
261
2,150
134,002
202,109
Derivatives
-
-
3,429
-
-
-
3,429
Other financial assets
27,540
25,329
9,398
261
2,150
134,002
198,680
Deferred tax assets
768
22
3,492
-
-
73,291
77,573
Other non-current assets
4,554
1
2
-
1,559
539,884
546,000
Non-current assets
6,322,684
2,031,200
1,664,635
350,438
349,311
747,177
11,465,445
Trade receivables
19,850
17,471
7,888
3,819
4,033
9,537
62,598
Other current financial assets
111
196
(1)
-
63
4,621
4,990
Other current assets
76,197
55,628
9,071
9,222
72
382,188
532,378
Current assets
96,158
73,295
16,958
13,041
4,168
396,346
599,966
Total assets
6,418,842
2,104,495
1,681,593
363,479
353,479
1,143,523
12,065,411
Non-current bank borrowings and
debenture issues
285,179
-
68,901
-
75,670
4,077,318
4,507,068
Other non-current liabilities
344,640
253,165
94,596
10,205
19,039
82,988
804,633
Non-current liabilities
629,819
253,165
163,497
10,205
94,709
4,160,306
5,311,701
Current liabilities
54,832
29,980
18,742
18,090
10,746
82,282
214,672
Total liabilities
684,651
283,145
182,239
28,295
105,455
4,242,588
5,526,373
The information by branch of activity at 31 December 2022 is presented below:
Thousands of euros
2022 (*)
Office
buildings
Shopping
centres
Logistics
Data
Centers
Other
Corporate
Unit
Group
total
Revenue from non-Group customers
Rental income
230,438
114,481
70,877
5
12,353
-
428,154
Services rendered
7,862
1,471
-
-
-
1,551
10,884
Net income
238,300
115,952
70,877
5
12,353
1,551
439,038
Other operating income
934
318
356
-
2
1,040
2,650
Staff costs
(6,962)
(6,880)
(2,449)
(302)
-
(23,080)
(39,673)
Operating expenses
(32,649)
(17,872)
(2,682)
(214)
(3,509)
(16,892)
(73,818)
Gains or losses on disposals of non-current
assets
3,985
544
(13)
-
7,045
-
11,561
Depreciation and amortisation charge
(548)
-
-
-
(13)
(1,324)
(1,885)
Allocation/Excess provisions
-
-
-
-
-
(160)
(160)
Changes in fair value of investment
property
(149,149)
(81,387)
(16,374)
-
(2,362)
-
(249,272)
Profit/(Loss) from operations
53,911
10,675
49,715
(511)
13,516
(38,865)
88,441
Changes in fair value of financial
instruments - Other
-
-
6,965
-
-
34,261
41,226
Finance income
-
-
-
-
-
3,942
3,942
Finance expenses
(295)
-
(4,546)
-
-
(104,362)
(109,203)
Gains on disposal of financial instruments
-
-
-
-
-
(283)
(283)
Share of results of companies accounted for
using the equity method
-
-
-
-
-
24,033
24,033
Profit/(Loss) before tax
53,616
10,675
52,134
(511)
13,516
(81,274)
48,156
Income tax
(3,316)
1,174
(253)
-
-
(4,405)
(6,800)
Profit/(Loss) for the year
50,300
11,849
51,881
(511)
13,516
(85,679)
41,356
(*) Restated information to include Data Centers branch of activity
Thousands of euros
At 31 December 2022 (*)
Office
buildings
Shopping
centres
Logistics
Data Centers
Other
Corporate
Unit
Group total
Investment property
6,509,874
2,134,503
1,558,011
114,441
397,371
-
10,714,200
Non-current financial assets-
25,990
29,384
14,668
-
394
140,611
211,048
Derivatives
-
-
6,084
-
-
12,798
18,882
Other financial assets
25,990
29,384
8,584
-
394
127,813
192,166
Deferred tax assets
908
78
3,580
-
-
74,080
78,646
Other non-current assets
4,200
18
-
-
1,454
502,697
508,369
Non-current assets
6,540,972
2,163,983
1,576,259
114,441
399,219
717,388
11,512,263
Trade receivables
13,838
15,592
7,273
24
3,487
9,626
49,840
Other current financial assets
111
181
(1)
-
3,748
(1,080)
2,960
Other current assets
38,932
31,750
20,316
103
1,800
393,520
486,420
Current assets
52,881
47,523
27,588
127
9,035
402,066
539,220
Total assets
6,593,853
2,211,506
1,603,847
114,568
408,254
1,119,454
12,051,483
Non-current bank borrowings and
debenture issues
13,196
-
68,428
-
-
3,387,577
3,469,200
Other non-current liabilities
336,026
222,558
86,258
212
25,758
111,734
782,547
Non-current liabilities
349,222
222,558
154,686
212
25,758
3,499,311
4,251,747
Current liabilities
48,861
31,526
12,128
17,711
8,518
831,768
950,512
Total liabilities
398,083
254,084
166,814
17,923
34,276
4,331,079
5,202,259
(*) Restated information to include Data Centers branch of activity
C) Geographical segment reporting
When presenting the information by geographic area, branch of activity revenue is grouped according
to the geographical location of the assets. Branch of activity 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:
2023
Thousands of euros
Rental income
%
Investment
property
%
Madrid
208,681
48%
5,799,909
54%
Catalonia
68,073
14%
1,498,010
14%
Andalusia
21,600
5%
303,354
3%
Valencia
17,713
4%
282,167
3%
Galicia
17,895
4%
328,731
3%
Castille-La Mancha
26,833
6%
662,635
6%
Basque Country
12,937
3%
362,225
3%
Rest of Spain
9,602
2%
171,101
2%
Portugal
63,873
14%
1,231,631
12%
Total
447,207
100%
10,639,763
100%
2022
Thousands of euros
Rental income
%
Investment
property
%
Madrid
208,192
50%
5,954,945
54%
Catalonia
64,914
13%
1,522,841
14%
Andalusia
19,951
5%
298,314
3%
Valencia
16,662
4%
294,782
3%
Galicia
16,823
4%
302,041
3%
Castille-La Mancha
23,757
6%
631,589
6%
Basque Country
11,926
3%
273,138
3%
Rest of Spain
8,755
2%
196,049
2%
Portugal
57,174
13%
1,240,501
12%
Total
428,154
100%
10,714,200
100%
D) Main customers
The table below lists the most important tenants as of 31 December 2023 and 2022, and the primary
characteristics of each of them:
2023
Position
Name
Type
% of total
%
accumulated
Maturity
of Income
1
Endesa
Offices
4.2%
4.2%
2024-2030
2
Inditex
Shopping centres /
Logistics
3.3%
7.5%
2024-2025
3
Comunidad de Madrid
Offices
2.5%
10.0%
2024-2031
4
T\u00e9cnicas Reunidas
Offices
2.4%
12.4%
2025
5
Hotusa
Hotels
1.6%
14.0%
2028
6
PWC
Offices
1.5%
15.5%
2028
7
BPI
Offices
1.5%
17.0%
2031
8
Logista
Logistics
1.4%
18.4%
2025-2040
9
Indra
Offices
1.3%
19.7%
2030
10
IBM
Offices
1.3%
21.0%
2030
2022
Position
Name
Type
% of total
%
accumulated
Maturity
of Income
1
Endesa
Offices
4.2%
4.2%
2024-2030
2
Inditex
Shopping centres /
Logistics
3.3%
7.5%
2023-2025
3
Comunidad de Madrid
Offices
2.5%
10.0%
2023-2031
4
T\u00e9cnicas Reunidas
Offices
2.4%
12.4%
2025
5
PwC
Offices
1.8%
14.2%
2028
6
Hotusa
Hotels
1.5%
15.7%
2028
7
BPI
Offices
1.5%
17.2%
2031
8
Indra
Offices
1.5%
18.7%
2024
9
FNAC
Shopping centres
1.4%
20.1%
2023-2025
10
XPO
Logistics
1.3%
21.4%
2024-2025
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-589": { "value": "The Group performed its business activities in Spain and Portugal in the year ended 31 December 2023.In fiscal year 2023, the Group has identified the management of Data Center assets as a branch of activity, an aspect to be considered in order to compare the information with the previous fiscal year in which the aforementioned branch of activity was under development.", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-590": { "value": "
The breakdown of and changes in items included under the Investment Property heading in the
consolidated statement of financial position in 2023 and 2022 were as follows:
\u00a0
Thousands of euros
2023
2022
Beginning balance
10,714,200
12,297,257
Additions for the financial year
308,172
370,161
Disposals
(46,625)
(1,703,946)
Changes in value of investment property
(335,984)
(249,272)
Closing balance
10,639,763
10,714,200
Investment property is recognised at fair value. Expense recognised in the 2023 consolidated income
statement from measuring investment property at fair value amounted to EUR 335,984 thousand
(EUR 249,272 thousand in 2022).
Investment property comprises property assets mainly in the offices, shopping centres, logistics and
data centres branches of activity.
Additions and assets acquired in the 2023 and 2022 financial years are as follows:
Thousands of euros
2023
2022
Purchases
23,756
144,077
Offices
-
136,861
Shopping centres
15,451
-
Logistics
8,305
7,216
Additions
284,416
226,084
308,172
370,161
The acquisitions made during 2023 relate to the purchase of a space next to the Marineda Shopping
Centre in La Coru\u00f1a, premises in a shopping centre and the acquisition of land for logistics use in
Valencia.
The additions for 2023 mainly relate to the development of data centres, as well as 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 Plaza Ruiz Picasso.
Derecognitions in 2023 mainly relate to the sale of two shopping centres in Barcelona and Valencia,
as well as a logistics warehouse in Zaragoza. The accounting result of those derecognitions was a
loss of EUR 9,995 thousand recognised under \u201cGain/(loss) on disposal of assets\u201d in the accompanying
consolidated income statement.
The additions made in 2022 related 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 divestments in 2022 related 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/(loss) on disposal of assets' in
the accompanying consolidated income statement.
At 31 December 2023, the Group had real estate assets amounting to EUR 1,046,328 thousand (EUR
265,443 thousand in 2022) to guarantee various loans. At 31 December 2023, the balance of those
loans amounted to EUR 433,364 thousand (EUR 84,987 thousand at the end of 2022) (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 2023 or 2022.
All properties included under \"Investment property\" were insured as of 31 December 2023.
At 31 December 2023, the Group had no firm purchase commitments for investment property, without
considering the investments committed in constructions and improvements.
In 2023 and 2022 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 2023 and 2022, 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 10,566,124 thousand (EUR 10,558,975 in 2022). This measurement does not include the value
of the use rights recognised by the application of IFRS 16 for EUR 51,903 thousand (EUR 37,152
thousand in 2022) 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 21,736 thousand (EUR 118,072
thousand in 2022). 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 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. In the case of data centres, 7-year
projections were used, which is the period considered for the stabilisation of the market. 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 2023 and 2022
were as follows:
Thousands of euros
2023
2022
Valuation services
651
459
Total
651
459
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:
2023
Thousands of euros
Total
Level 1
Level 2
Level 3
Fair value measurement
Investment property:
Offices
Land
2,172,572
-
-
2,172,572
Buildings
4,117,250
-
-
4,117,250
Shopping centres
Land
379,805
-
-
379,805
Buildings
1,626,043
-
-
1,626,043
Logistics-
Land
405,689
-
-
405,689
Buildings
1,242,625
-
-
1,242,625
Data Centers-
Land
31,852
-
-
31,852
Buildings
318,325
-
-
318,325
Other-
Land
148,680
-
-
148,680
Buildings
196,922
-
-
196,922
Total assets measured at fair value
10,639,763
-
-
10,639,763
2022
Thousands of euros
Total
Level 1
Level 2
Level 3
Fair value measurement
Investment property:
Offices
Land
2,238,869
-
-
2,238,869
Buildings
4,271,005
-
-
4,271,005
Shopping centres
Land
433,159
-
-
433,159
Buildings
1,701,344
-
-
1,701,344
Logistics-
Land
374,180
-
-
374,180
Buildings
1,183,830
-
-
1,183,830
Data Centers (*) -
Land
21,889
-
-
21,889
Buildings
92,552
-
-
92,552
Other-
Land
175,439
-
-
175,439
Buildings
221,933
-
-
221,933
Total assets measured at fair value
10,714,200
-
-
10,714,200
(*) Valued at cost
No assets were reclassified from one level to another during 2023 or 2022. At 31 December 2023 and
2022, the gross surface areas and occupancy rates of the assets were as follows:
2023
Square metres (*)
Occupancy
rate (%)
Gross leasable area
Comm. of
Madrid
Catalonia
Comm. of
Valencia
Galicia
Andalusia
Basque
Country
Castille-
La
Mancha
Rest of
Spain
Portugal
Total
Offices
812,916
205,506
-
-
15,078
-
-
-
123,832
1,157,332
92.5%
Shopping
centres
74,606
31,905
49,897
118,105
37,956
25,922
-
32,869
60,089
431,349
96,2% (**)
Logistics
330,375
132,100
61,604
-
139,218
99,491
633,841
21,579
45,171
1,463,379
99.0%
Data Centers
22,508
22,131
-
-
-
17,600
-
-
-
62,239
n.a. (1)
Other
38,161
16,472
-
5,898
-
46
-
-
-
60,577
98.0%
Total surface
area
1,278,566
408,114
111,501
124,003
192,252
143,059
633,841
54,448
229,092
3,174,876
96.2%
% weight
40.3%
12.9%
3.5%
3.9%
6.1%
4.5%
20.0%
1.7%
7.2%
100.0%
(*) Not including square metres of ongoing projects or land.
(**) Excluding vacant units acquired for refurbishment.
(1) The market standard for data centres is to measure occupancy on the basis of processing capacity, and not in relation to
leasable surface area. At 31 December 2023, the Group's 3 data centres currently in operation had a processing available
capacity of 9 MW, with 6.2 MW (68.9%) committed at that date. The Group considers as committed capacity the capacity
physically occupied at the reference date or with respect to which, without being occupied at that date, there are contractual
commitments reserving that capacity to ensure the future growth of the Group's customers.
2022
Square metres (*)
Occupancy
rate (%)
Gross leasable area
Comm. of
Madrid
Catalonia
Comm. of
Valencia
Galicia
Andalusia
Basque
Country
Castille-
La
Mancha
Rest of
Spain
Portugal
Total
Offices
814,938
205,312
-
-
15,078
-
-
-
137,547
1,172,875
92.5%
Shopping
centres
75,685
64,096
64,352
100,577
37,956
25,922
-
32,758
60,049
461,395
95.0%
Logistics
330,375
132,100
61,604
-
138,777
99,491
633,926
42,343
45,171
1,483,787
97.0%
Data Centers
-
-
-
-
-
-
-
-
-
-
n.a. (1)
Other
38,043
20,540
-
5,898
-
46
-
-
-
64,527
97.3%
Total surface
area
1,259,041
422,048
125,956
106,475
191,811
125,459
633,926
75,101
242,767
3,182,584
95.1%
% weight
39,6%
13,3%
4,0%
3,3%
6,0%
3,9%
19,9%
2,4%
7,6%
100,0%
(*) Not including square metres of ongoing projects or land
(1) During 2022, the Group's data centres were under construction.
Hypotheses used in the valuation
In relation to the determination of the fair value of investment property, the significant non-observable
input data used in the measurement of fair value corresponds to the rental income, the futureexit
yields and the rate used to discount the cash flows of the projections.
The quantitative information on the significant non-observable input data used in measuring fair value
is shown below.
2023
Exit yield
Discount rate
Offices
3.70% - 7.35%
5.20% - 10.10%
Shopping centres
3,92% - 7,75%
6.25% - 9.75%
Logistics
4.75% - 6.25%
6.25% - 9.50%
Data Centers
5.50% - 6.25%
12.00%
Other
4.50% - 7.50%
5.25% - 16.00%
2022
Exit yield
Discount rate
Offices
3.15% - 7.25%
5.15% - 10.25%
Shopping centres
3.75% - 8.50%
6.25% - 11.50%
Logistics
4.25% - 6.75%
5.50% - 15.00%
Data Centers (*)
n.a.
n.a.
Other
4.00% - 7.75%
4.00% - 15.50%
(*) Valued at cost in 2022
Market rents: the amounts per square metre used in the valuation have ranged between 61.79 and
2.41 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 2023
Thousands of euros
31.12.2023
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in IRR
(206,813)
(408,786)
(798,719)
(206,813)
(408,786)
(798,719)
Decrease in IRR
211,785
428,677
878,346
211,785
428,677
878,346
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
31.12.2022
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in IRR
(209,672)
(414,387)
(809,469)
(209,672)
(414,387)
(809,469)
Decrease in IRR
214,765
434,763
891,041
214,765
434,763
891,041
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
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 2023
Thousands of euros
Assets
Consolidated profit/(loss) before tax
1%
5%
10%
1%
5%
10%
Increase in rents
83,131
415,654
831,308
83,131
415,654
831,308
Decrease in rents
(83,131)
(415,654)
(831,308)
(83,131)
(415,654)
(831,308)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
Assets
Consolidated profit/(loss) before tax
1%
5%
10%
1%
5%
10%
Increase in rents
84,038
420,192
840,385
84,038
420,192
840,385
Decrease in rents
(84,038)
(420,192)
(840,385)
(84,038)
(420,192)
(840,385)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
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 2023
Thousands of euros
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in exit yield
(293,554)
(562,416)
(1,037,559)
(293,554)
(562,416)
(1,037,559)
Decrease in exit yield
321,810
676,164
1,504,467
321,810
676,164
1,504,467
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
31 December 2022
Thousands of euros
Assets
Consolidated profit/(loss) before tax
0.25%
0.50%
1%
0.25%
0.50%
1%
Increase in exit yield
(324,196)
(619,262)
(1,136,413)
(324,196)
(619,262)
(1,136,413)
Decrease in exit yield
357,865
754,929
1,695,592
357,865
754,929
1,695,592
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Details of the \"Change in value of investment property\" in the accompanying consolidated income
statement are as follows:
Type of asset
Thousands of euros
2023
2022
Offices
(307,108)
(149,149)
Shopping centres
(125,127)
(81,387)
Logistics
51,150
(16,374)
Data Centers
92,081
-
Other
(46,980)
(2,362)
(335,984)
(249,272)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-592": { "value": "
At 31 December 2023, the Group had no firm purchase commitments for investment property, without
considering the investments committed in constructions and improvements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-591": { "value": "
At 31 December 2023, the Group had no firm purchase commitments for investment property, without
considering the investments committed in constructions and improvements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-593": { "value": "
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 2023, the Group recorded an expense of EUR 751 thousand (EUR 705 thousand in 2022)
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 2023 and 2022 were as follows:
% occupancy
2023
2022
Offices
92.5
92.5
Shopping centres
96.2
95.0
Logistics
99.0
97,0
Data Centers
68.9 (1)
n.a. (2)
Other
98.0
97.3
(1) The market standard for data centres is to measure occupancy on the basis of processing
capacity, and not in relation to leasable surface area. At 31 December 2023, the Group's 3 data
centres currently in operation had a processing available capacity of 9 MW, with 6.2 MW (68.9%)
committed at that date. The Group considers as committed capacity the capacity physically occupied
at the reference date or with respect to which, without being occupied at that date, there are
contractual commitments reserving that capacity to ensure the future growth of the Group's
customers.
(2) During 2022, the Group's data centres were under construction.
At 31 December 2023 and 2022, gross lease income and the fair value of each of the assets were as
follows:
2023
Thousands of euros
Rent
Value
Gross (a)
Fair
Offices
254,831
6,289,822
Shopping centres
125,776
2,005,848
Logistics
80,273
1,648,314
Data Centers
539
350,177
Other
14,196
345,602
Total
475,615
10,639,763
(a)\u00a0 The gross income indicated in the table above refers to income from leases (Note 6) of the properties\u00a0
accrued since their incorporation into the Group, without taking into account credits or rent straight-lining.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
2022
Thousands of euros
Rent
Value
Gross (a)
Fair
Offices
242,716
6,509,875
Shopping centres
123,840
2,134,503
Logistics
73,558
1,558,010
Data Centers (b)
5
114,441
Other
12,723
397,371
Total
452,842
10,714,200
(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.
(b) Valued at cost
The leases agreements 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 2023 and 2022, the future minimum lease payments under non-cancellable operating
leases (calculated at the nominal amount) are as follows:
Thousands of euros
2023
2022
Up to a year
443,771
384,244
1 to 5 years
893,441
759,723
Over 5 years
202,804
186,838
Total
1,540,016
1,330,805
In 2023, the Group recorded EUR 8,224 thousand (EUR 6,707 thousand in 2022) 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-594": { "value": "
The changes in 2023 and 2022 in investments in companies accounted for using the equity method
are as follows:
Thousands of euros
2023
2022
Beginning balance
500,300
482,784
Additions made during the year
6,678
1,824
Payments made in the financial year
-
(4,189)
Transfers
(110)
-
Dividends
(9,503)
(4,152)
Profit/(Loss) for the year
39,923
24,033
Closing balance
537,288
500,300
In relation to investments accounted for using the equity method, the additions in 2023 related mainly
to the subscription of the capital increase carried out by Crea Madrid Nuevo Norte, S.A., which led to
an increase of EUR 3,040 thousand, the distribution in shares of a dividend of Silicius Real Estate
SOCIMI, S.A. amounting to EUR 1,554 thousand and the purchase of 7.32% of Moregal Hotels, S.L.\u00a0
(Note 3) for EUR 1,585 thousand.
The remaining change in 2023 corresponded to the result obtained by the investees.
The investee Silicius Real Estate SOCIMI, S.A. holds a purchase option on its shares held by the
Group, the fair value of which is recognised in \"Other current financial liabilities\". Its final settlement
will not be in cash but will affect, where appropriate, the adjustment of the final value of the ownership
interest (see Note 14.3).
In relation to the shares held using the equity method, the additions in 2022 related 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 related 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 change in 2022 corresponded to the result obtained by the investees.
A breakdown of investments in companies accounted for using the equity method and the profit or loss
attributable to the Group at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Associate
Line of business
Registered
office
Percentage of
ownership
Investment
Profit/(loss)
attributed to
the Group
Crea Madrid Nuevo Norte,
S.A
\"Operaci\u00f3n Chamart\u00edn\" construction
development and property operation
Madrid
14.46%
175,269
(565)
Silicius Real Estate
SOCIMI, S.A.
Sale and lease of property
Madrid
17.91%
93,089
(3,264)
Centro Intermodal de
Log\u00edstica, S.A.
Management of the port concession
of the logistics activity area
Barcelona
48.50%
237,221
50,119
Paseo Comercial Carlos III,
S.A.
Lease of shopping centre
Madrid
50.00%
26,868
(5,337)
Provitae Centros
Asistenciales, S.L.
Healthcare services
Madrid
50.00%
2,320
(996)
Other investments
2,521
(34)
537,288
39,923
2022
Thousands of euros
Associate
Line of business
Registered
office
Percentage of
ownership
Investment
Profit/(loss)
attributed to
the Group
Crea Madrid Nuevo Norte,
S.A
\"Operaci\u00f3n Chamart\u00edn\" construction
development and property operation
Madrid
14.46%
172,794
(616)
Silicius Real Estate
SOCIMI, S.A.
Sale and lease of property
Madrid
17.80%
95,855
2,667
Centro Intermodal de
Log\u00edstica, S.A.
Management of the port concession
of the logistics activity area
Barcelona
48.50%
194,982
18,556
Paseo Comercial Carlos III,
S.A.
Lease of shopping centre
Madrid
50%
32,205
2,487
Provitae Centros
Asistenciales, S.L.
Healthcare services
Madrid
50%
3,316
(198)
Other investments
1,148
1,137
500,300
24,033
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:
2023
Thousands of euros
Provitae
Centros
Asistenciales,
S.L.
Paseo
Comercial
Carlos III,
S.A.
Centro
Intermodal de
Log\u00edstica,
S.A. (CILSA)
Madrid
Nuevo Norte,
S.A.
Silicius Real
Estate
SOCIMI,
S.A.
Other
Non-current assets
7,036
125,673
753,103
6,055
612,201
7,213
Current assets
8
7,859
40,584
193,141
29,774
14,451
Non-current liabilities
-
69,185
169,518
1,027
279,652
12
Current liabilities
2,404
4,403
25,583
8,981
26,691
12,359
Revenue
-
8,719
84,898
-
34,554
1,586
Operating profit/(loss)
(1,992)
(10,674)
87,092
(3,907)
(26,901)
(448)
2022
Thousands of euros
Provitae
Centros
Asistenciales,
S.L.
Paseo
Comercial
Carlos III,
S.A.
Centro
Intermodal de
Log\u00edstica,
S.A. (CILSA)
Madrid
Nuevo Norte,
S.A.
Silicius Real
Estate
SOCIMI,
S.A.
Other
Non-current assets
9,090
142,316
653,500
5,349
727,972
6,956
Current assets
2
5,861
31,070
175,060
11,569
3,987
Non-current liabilities
192
60,615
101,289
984
300,388
896
Current liabilities
2,268
3,275
19,695
7,356
48,302
1,974
Revenue
-
8,359
79,272
-
40,044
579
Operating profit/(loss)
(396)
4,974
32,990
(4,258)
15,467
(453)
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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-595": { "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 2023 and 2022 is as follows:
Classification of financial assets by category:
Thousands of euros
2023
2022
Non-current:
At fair value-
Interest rate derivatives
3,429
18,882
At cost-
Equity instruments
9,915
9,191
At amortised cost-
Loans to third parties
130,107
126,230
Loans to associates
3,303
3,268
Deposits and guarantees
55,355
53,477
202,109
211,048
Current:
At cost-
Investments in associates
3,148
2,498
At amortised cost-
Loans to third parties
236
236
Other financial assets
1,606
226
Trade and other receivables
62,598
49,840
67,588
52,800
The carrying amount of financial assets recognised at amortised cost does not differ from their fair
value.
Derivatives
At year-end 2023 and 2022, the measurement of interest rate derivatives with a debit balance was
recognised under 'Derivatives' (see Note 14).
Loans to third parties
\"Other non-current financial assets\" included the loan granted to Desarrollos 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 2023, due to the annual capitalisation of interest, the
outstanding amount was EUR 92,219 thousand in principal and EUR 318 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 37,571 thousand euros (35,189 thousand euros in 2022).
Deposits and guarantees
\"Deposits and guarantees\" primarily includes the guarantees provided by lessees as security
amounting to EUR 53,796 thousand (EUR 51,988 thousand at 31 December 2022), which the Group
has deposited with the housing authority (Instituto de la Vivienda) in each region. At 31 December
2023, guarantees provided by lessees as security amounted to EUR 64,567 thousand (EUR 62,964
thousand at 31 December 2022) and were recognised under \"Non-current liabilities \u2013 Other financial
liabilities\" on the liability side of the accompanying consolidated statement of financial position for
2023 (see Note 15).
Classification of financial assets by maturity:
The classification of financial assets by maturity at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Less than 1
year
From 1 to 5
years
Over 5 years
Undetermined
maturity
Total
Interest rate derivatives
-
-
3,429
-
3,429
Equity instruments
-
-
-
9,915
9,915
Loans to third parties and associates
236
22,089
111,321
-
133,646
Deposits and guarantees
-
-
-
55,355
55,355
Investments in Group companies and associates
3,148
-
-
-
3,148
Other financial assets
1,606
-
-
-
1,606
Trade and other receivables
62,598
-
-
-
62,598
Total financial assets
67,588
22,089
114,750
65,270
269,697
2022
Thousands of euros
Less than 1
year
From 1 to 5
years
Over 5 years
Undetermined
maturity
Total
Interest rate derivatives
-
6,084
12,798
-
18,882
Equity instruments
-
-
-
9,191
9,191
Loans to third parties and associates
236
20,863
108,635
-
129,734
Deposits and guarantees
-
-
-
53,477
53,477
Investments in Group companies and associates
2,498
-
-
-
2,498
Other financial assets
226
-
-
-
226
Trade and other receivables
49,840
-
-
-
49,840
Total financial assets
52,800
26,947
121,433
62,668
263,848
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-596": { "value": "
Derivatives
At year-end 2023 and 2022, the measurement of interest rate derivatives with a debit balance was
recognised under 'Derivatives' (see Note 14)
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. The changes in the balance of this heading in
2023 and 2022 are as follows:
Thousands of
euros
Balance at 31 December 2021
(67,420)
Changes in the fair value of hedges in the year
80,218
Balance at 31 December 2022
12,798
Changes in the fair value of hedges in the year
(22,273)
Balance at 31 December 2023
(9,475)
The balance at year-end 2023 relates to the valuation of the interest rate hedges that the Parent
subscribed in 2023 and 2022 to cover the new syndicated and mortgage financing for April 2023 to
July 2030\u00a0 (see Note 14).
14.3 Derivatives
A breakdown of the financial instruments as of 31 December 2023 is as follows:
Thousands of euros
2023
2022
Non-current:
Asset interest rate
(3,429)
(18,882)
Liability interest rate
9,475
-
Other (Note 9)
14,828
9,256
Total non-current
20,874
(9,626)
Current:
Interest rate derivatives
(375)
11
Total current
(375)
11
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 2023 and 2022 is as follows:
2023
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
(3,429)
9,475
Current:
Interest rate derivatives
-
(375)
Total derivatives recognised
(3,429)
9,100
2022
.
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
18,882
-
Current:
Interest rate derivatives
-
11
Total derivatives recognised
18,882
11
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 67,900
thousand at a cost of 0.31%.
In addition to the early repayment of the EUR 850 million syndicated loan, in June 2022, the Group
cancelled the interest rate hedging instruments associated with this corporate syndicated loan.
In 2023 and 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 665,000 thousand at a
fixed cost of 2.537%.
In 2022, an interest rate hedge 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%.
In addition, in 2023, an interest rate hedge was contracted to cover BBVA's mortgage loan until its
maturity in July 2030 for a notional amount of EUR 180,000 thousand and a fixed cost of 2.363%.
The interest rate derivatives contracted by the Group and their fair values are as follows:
2023
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2023
2024
2025
2026
years
Syndicated Parent Company
2.537%
7,546
665,000
665,000
665,000
665,000
665,000
Non-mortgage - Parent Company
2.512%
562
60,000
60,000
60,000
60,000
60,000
Mortgage - Parent Company
2.363%
1,012
180,000
180,000
180,000
180,000
180,000
Other subsidiaries
0.310%
(3,449)
67,900
67,900
67,900
67,900
67,900
5,671
972,900
972,900
972,900
972,900
972,900
2022
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2022
2023
2024
2025
years
Syndicated Parent Company (starting
2023)
2.574%
(11,394)
-
500,000
500,000
500,000
500,000
Non-mortgage - Parent Company
2.512%
(1,386)
60,000
60,000
60,000
60,000
60,000
Other subsidiaries
0.310%
(6,091)
67,900
67,900
67,900
67,900
67,900
(18,871)
127,900
627,900
627,900
627,900
627,900
The Group has opted for hedge accounting, suitably designating the hedging relationships in which
these financial instruments are hedging instruments of the financing used by the Group. In this
manner, the Group has neutralized flow variations stemming from interest payments and fixed the rate
to be paid for said financing. The derivatives that are highly effective prospectively and retrospectively,
cumulatively, since the date of designation, are those associated with the Banco Sabadell new
syndicated financing and bilateral loan and the BBVA mortgage loan, so their changes in value are
recognised in equity.
The Group has recognised in equity the fair value of the derivatives that meet the effectiveness
requirements, without considering any tax effect due to adhering to the REIT regime. Under the
heading 'Changes in fair value in financial instruments' of the consolidated income statement, the
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 expense in the amount of EUR 660
thousand in 2023 (income of EUR 35,348 thousand in 2022).
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 2023 and 2022 would be as follows:
2023
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(20,530)
19,887
643
5% reduction in credit risk rate
19,948
(19,317)
(631)
2022
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(13,030)
12,130
901
5% reduction in credit risk rate
13,446
(12,524)
(921)
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-597": { "value": "
Deposits and guarantees
\"Deposits and guarantees\" primarily includes the guarantees provided by lessees as security
amounting to EUR 53,796 thousand (EUR 51,988 thousand at 31 December 2022), which the Group
has deposited with the housing authority (Instituto de la Vivienda) in each region. At 31 December
2023, guarantees provided by lessees as security amounted to EUR 64,567 thousand (EUR 62,964
thousand at 31 December 2022) and were recognised under \"Non-current liabilities \u2013 Other financial
liabilities\" on the liability side of the accompanying consolidated statement of financial position for
2023 (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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-598": { "value": "
At 31 December 2023 and 2022, the heading \"Trade and other receivables\" included the following
items:
Thousands of euros
2023
2022
Trade and notes receivable
45,820
34,411
Sales debentures
6,186
6,718
Associates
589
549
Sundry accounts receivable
1,263
1,523
Remuneration payable
184
184
Other receivables from public authorities (Note 17)
19,515
17,849
Impairment of trade receivables
(10,959)
(11,394)
62,598
49,840
\"Trade and notes receivable\" in the accompanying consolidated statement of financial position at 31
December 2023 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
2022).
At 31 December 2023 and 2022, a breakdown by age of overdue receivables not considered impaired
is as follows:
Thousands of euros
2023
2022
Less than 30 days
7,927
1,947
31 to 60 days
1,748
1,987
61 to 90 days
1,002
1,469
Over 90 days
286
17
10,963
5,420
At 31 December 2023 and 2022, 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 2023 and 2022 were as follows:
Thousands of
euros
Balance at 31 December 2021
(13,324)
Charges for the year
(1,408)
Reversals/amounts used
3,279
Other
59
Balance at 31 December 2022
(11,394)
Charges for the year
(939)
Reversals/amounts used
1,320
Other
54
Balance at 31 December 2023
(10,959)
Losses from bad debts amounted to EUR 58 thousand in 2023. 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 branches of activity information in Note 6.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-599": { "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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-600": { "value": "
The changes in the impairment losses and bad debt in 2023 and 2022 were as follows:
Thousands of
euros
Balance at 31 December 2021
(13,324)
Charges for the year
(1,408)
Reversals/amounts used
3,279
Other
59
Balance at 31 December 2022
(11,394)
Charges for the year
(939)
Reversals/amounts used
1,320
Other
54
Balance at 31 December 2023
(10,959)
Losses from bad debts amounted to EUR 58 thousand in 2023. The majority of impaired receivables
are overdue by more than six months.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-601": { "value": "
\"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 2023 and 2022, the amount included under \"Cash and cash equivalents\" was
unrestricted, except for EUR 5,527 thousand and EUR 4,720 thousand, respectively.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-602": { "value": "
At 31 December 2023 and 2022, the amount included under \"Cash and cash equivalents\" was
unrestricted, except for EUR 5,527 thousand and EUR 4,720 thousand, respectively.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-603": { "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 2023, 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 2023
and the average market price for the fourth quarter amounted to EUR 10.06 and EUR 8.72 per share,
respectively.
At 31 December 2023, 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:
Shares
% of share
capital
Direct
Indirect
Total
Banco Santander, S.A.
89,400,553
26,072,123
115,472,676
24.58%
Nortia Capital Investment Holding, S.L.
38,371,083
-
38,371,083
8.17%
BlackRock, INC
-
23,488,538
23,488,538
5.00%
Information from Banco Santander and Nortia Capital Investment Holding, S.L. was obtained from the
Register of Members book at year-end 2023.
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 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Legal reserve
93,954
74,094
Reserves of consolidated companies
2,286,573
2,935,532
Other reserves
348,876
14,004
Total other reserves
2,729,403
3,023,630
During the financial year 2023, the increase in \"Other reserves\" is mainly due to the undistributed
profit from the transfer of properties and shares or holdings referred to in section 1 of Article 2 of Law
11/2009, of 26 October, regulating REITs. This amount corresponds to the undistributed profits from
the divestment of the Net Lease branch of activity in 2022 and must be reinvested in other properties
or holdings assigned to the fulfilment of the Parent's main corporate purpose within three years of the
date of transfer.
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 2023, the Group had reached the legally required minimum in the Consolidated Text
of the Corporate Enterprises Act for this reserve.
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 2023 and 2022 in \"Reserves in consolidated companies\" are as follows:
Thousands of euros
31/12/2022
Incorporation of
prior year\u00b4s
results
Distribution of
reserves
Other changes
31/12/2023
Reserves in
consolidated
companies
2,935,532
263,087
(910,716)
(1,330)
2,286,573
Thousands of euros
31/12/2021
Incorporation of
prior year\u00b4s
results
Distribution of
reserves
Other changes
31/12/2022
Reserves in
consolidated
companies
2,467,203
512,217
(89,608)
45,720
2,935,532
The distribution mainly corresponds to the amount of interim dividends for 2022 and 2023, as well as
the reclassification of the reserves subject to reinvestment as indicated in the previous section.
Dividends
On 16 November 2023, the Board approved the distribution of an interim dividend charged to earnings
for 2023 in the amount of EUR 93,673 thousand.
On 27 April 2023, the General Shareholders Meeting approved the distribution of a supplementary
dividend charged to profit for 2022 in the amount of EUR 113,350 thousand.
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 2023, the Parent held treasury shares amounting to EUR 15,410 thousand.
The changes in 2023 and 2022 were as follows:
Number of
Thousands of
Shares
euros
Balance at 1 January 2022
2,885,491
32,305
Additions
6,625
122
Disposals
(1,355,932)
(15,261)
Balance at 31 December 2022
1,536,184
17,166
Additions
83,106
689
Disposals
(220,166)
(2,445)
Balance at 31 December 2023
1,399,124
15,410
The General Meeting held on 27 April 2023 revoked the authorisation granted by the General Meeting
of 10 April 2019 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 retirements of 220,166 treasury shares (average cost of EUR 11.10 per share) relate mainly to the
delivery of shares to employees under the flexible remuneration plan in the amount of EUR 1,338
thousand and to sales under the Group's liquidity agreement for securities listed on the Lisbon Stock
Exchange. This liquidity agreement has made net sales of 16,840 shares (EUR 418 thousand) in
2023.
At 31 December 2023, the Parent held treasury shares representing 0.298% 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.
Thousands of euros
2023
2022
Total financial debt (b)
4,526,244
4,238,774
Less - Cash and cash equivalents and Other current
financial assets (a)
(476,633)
(446,615)
Net debt
4,049,611
3,792,159
Equity
6,539,038
6,849,224
Total capital
10,588,649
10,641,383
Debt-to-equity ratio
38%
36%
1. In both 2023 and 2022, the amount in treasury shares is included
as Other current financial assets
2. Gross debt amounts without considering debt arrangement expenses and interest
accrued and unpaid.
13.6 Earnings per share
Basic
Basic earnings per share are calculated by dividing net profit attributable to common equity holders of
the Parent by the weighted average number of outstanding shares during the period, excluding
treasury shares.
A breakdown of the calculation of basic earnings per share is as follows:
\u00a0
\u00a0
\u00a0
2023
2022
Weighted average number of shares outstanding
(thousands)
468,324
467,891
Continuing operations
Profit (Loss)\u00a0 for the period attributable to the Parent
(thousands of euros)
(83,497)
41,356
Basic earnings/ Loss per share (euros)
(0.18)
0.09
Discontinued Activities
Profit (Loss)\u00a0 for the period attributable to the Parent
(thousands of euros)
-
221,731
Basic earnings/ Loss per share (euros)
-
0.47
The average number of ordinary shares outstanding is calculated as follows:
Number of Shares (Thousands)
2023
2022
Ordinary shares at beginning of period
469,771
469,771
Treasury shares
(1,399)
(1,536)
Average adjustment of outstanding shares
(48)
(344)
Weighted average number of ordinary shares outstanding at 31
December (thousands of shares)
468,324
467,891
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 2023, 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/loss.
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. The changes in the balance of this heading in
2023 and 2022 are as follows:
Thousands of
euros
Balance at 31 December 2021
(67,420)
Changes in the fair value of hedges in the year
80,218
Balance at 31 December 2022
12,798
Changes in the fair value of hedges in the year
(22,273)
Balance at 31 December 2023
(9,475)
The balance at year-end 2023 relates to the valuation of the interest rate hedges that the Parent
subscribed in 2023 and 2022 to cover the new syndicated and mortgage financing for April 2023 to
July 2030\u00a0 (see Note 14).
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-604": { "value": "
13.1 Share capital
As of 31 December 2023, 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 2023
and the average market price for the fourth quarter amounted to EUR 10.06 and EUR 8.72 per share,
respectively.
At 31 December 2023, 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:
Shares
% of share
capital
Direct
Indirect
Total
Banco Santander, S.A.
89,400,553
26,072,123
115,472,676
24.58%
Nortia Capital Investment Holding, S.L.
38,371,083
-
38,371,083
8.17%
BlackRock, INC
-
23,488,538
23,488,538
5.00%
Information from Banco Santander and Nortia Capital Investment Holding, S.L. was obtained from the
Register of Members book at year-end 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-605": { "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 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Legal reserve
93,954
74,094
Reserves of consolidated companies
2,286,573
2,935,532
Other reserves
348,876
14,004
Total other reserves
2,729,403
3,023,630
During the financial year 2023, the increase in \"Other reserves\" is mainly due to the undistributed
profit from the transfer of properties and shares or holdings referred to in section 1 of Article 2 of Law
11/2009, of 26 October, regulating REITs. This amount corresponds to the undistributed profits from
the divestment of the Net Lease branch of activity in 2022 and must be reinvested in other properties
or holdings assigned to the fulfilment of the Parent's main corporate purpose within three years of the
date of transfer.
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 2023, the Group had reached the legally required minimum in the Consolidated Text
of the Corporate Enterprises Act for this reserve.
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.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-606": { "value": "
13.4 Treasury shares
At 31 December 2023, the Parent held treasury shares amounting to EUR 15,410 thousand.
The changes in 2023 and 2022 were as follows:
Number of
Thousands of
Shares
euros
Balance at 1 January 2022
2,885,491
32,305
Additions
6,625
122
Disposals
(1,355,932)
(15,261)
Balance at 31 December 2022
1,536,184
17,166
Additions
83,106
689
Disposals
(220,166)
(2,445)
Balance at 31 December 2023
1,399,124
15,410
The General Meeting held on 27 April 2023 revoked the authorisation granted by the General Meeting
of 10 April 2019 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 retirements of 220,166 treasury shares (average cost of EUR 11.10 per share) relate mainly to the
delivery of shares to employees under the flexible remuneration plan in the amount of EUR 1,338
thousand and to sales under the Group's liquidity agreement for securities listed on the Lisbon Stock
Exchange. This liquidity agreement has made net sales of 16,840 shares (EUR 418 thousand) in
2023.
At 31 December 2023, the Parent held treasury shares representing 0.298% of its share capital.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-607": { "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.
Thousands of euros
2023
2022
Total financial debt (b)
4,526,244
4,238,774
Less - Cash and cash equivalents and Other current
financial assets (a)
(476,633)
(446,615)
Net debt
4,049,611
3,792,159
Equity
6,539,038
6,849,224
Total capital
10,588,649
10,641,383
Debt-to-equity ratio
38%
36%
1. In both 2023 and 2022, the amount in treasury shares is included
as Other current financial assets
2.", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-608": { "value": "
13.6 Earnings per share
Basic
Basic earnings per share are calculated by dividing net profit attributable to common equity holders of
the Parent by the weighted average number of outstanding shares during the period, excluding
treasury shares.
A breakdown of the calculation of basic earnings per share is as follows:
\u00a0
\u00a0
\u00a0
2023
2022
Weighted average number of shares outstanding
(thousands)
468,324
467,891
Continuing operations
Profit (Loss)\u00a0 for the period attributable to the Parent
(thousands of euros)
(83,497)
41,356
Basic earnings/ Loss per share (euros)
(0.18)
0.09
Discontinued Activities
Profit (Loss)\u00a0 for the period attributable to the Parent
(thousands of euros)
-
221,731
Basic earnings/ Loss per share (euros)
-
0.47
The average number of ordinary shares outstanding is calculated as follows:
Number of Shares (Thousands)
2023
2022
Ordinary shares at beginning of period
469,771
469,771
Treasury shares
(1,399)
(1,536)
Average adjustment of outstanding shares
(48)
(344)
Weighted average number of ordinary shares outstanding at 31
December (thousands of shares)
468,324
467,891
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 2023, 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/loss.", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-609": { "value": "
At 31 December 2023 and 2022 current and non-current liabilities were as follows:
Thousands of euros
2023
2022
Non-current:
Measured at amortised cost-
Syndicated loan
665,000
-
Syndicated loan arrangement expenses
(3,889)
-
Total syndicated loan
661,111
-
Non-mortgage loan
127,880
111,000
Mortgage loans
431,735
83,256
Loan arrangement expenses
(6,470)
(4,390)
Total other loans
553,145
189,866
Debentures and bonds
3,300,000
3,300,000
Debenture issue expenses
(16,663)
(20,666)
Total debentures and bonds
3,283,337
3,279,334
Total amortised cost
4,497,593
3,469,200
Measured at fair value
Derivative financial instruments
9,475
-
Total at fair value
9,475
-
Total non-current
4,507,068
3,469,200
Current:
Measured at amortised cost
Syndicated loan
1,144
195
Debentures and bonds
20,966
775,152
Mortgage loans
2,943
1,843
Revolving credit facility
525
410
Non-mortgage loan
291
347
Loan arrangement expenses
-
(116)
Total amortised cost
25,869
777,831
Measured at fair value
Derivative financial instruments
(375)
11
Total at fair value
(375)
11
Total current
25,494
777,842
There is no material difference between the carrying amount and the fair value of financial liabilities at
amortised cost.
The details of the Parent\u00b4s rating are as follows:
AGENCY
RATING
OUTLOOK
LAST REVIEW
PREVIOUS
Standard & Poor\u00b4s
BBB
Positive
30/05/2023
BBB Positive
Moody\u00b4s
Baa2
Positive
24/07/2023
Baa2 Positive
14.1 Loans
The breakdown of mortgage loans at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2023
Long-term
Short-term
Short-term
interest
Syndicated loan
665,000
(3,889)
665,000
-
1,144
Non-mortgage loan
220,225
(283)
127,880
-
291
Revolving credit facilities
740,000
(3,191)
-
-
525
Mortgage loans - other assets
441,000
(2,996)
431,735
1,629
1,314
Total
2,066,225
(10,359)
1,224,615
1,629
3,274
2022
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2022
Long-term
Short-term
Short-term
interest
Syndicated loan
600,000
-
-
-
195
Non-mortgage loan
220,225
(271)
111,000
-
347
Revolving credit facilities
700,000
(2,486)
-
-
410
Mortgage loans - other assets
91,000
(1,633)
83,256
1,731
112
Total
1,611,225
(4,390)
194,256
1,731
1,064
Syndicated loans and revolving credit facility - Parent
On 25 April 2019, the Group arranged a senior syndicated loan for EUR 1,550 million, including two
tranches, a corporate loan of EUR 850 million and a corporate credit facility of EUR 700 million
maturing 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 syndicated 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 syndicated loan for EUR 850
million.
In 2022, as a result of the early cancellation of this facility, the application of amortized cost in relation
to IFRS 9 represented a financial cost of EUR 4,213 thousand.
On 18 November 2022, the Parent arranged a new senior syndicated loan for EUR 600 million with
the possibility of being arranged before 24 April 2023 for the repayment of the bond maturing in 2023.
This facility has a maturity of 5 years from its disposal and accrues a market rate of EURIBOR plus
130 basis points. For the period in which the facility is not drawn down, a commission for the
unarranged balance of 26 basis points applies. As of, 20 April 2023 the Parent had drawn down this
facility in full.
In addition, on the same date, a novation agreement was entered into for the senior syndicated loan
including a Tranche B corresponding to a revolving credit line with a limit of EUR 700,000 thousand .
This new credit line has a maturity of 5 years with the possibility of two optional one-year extensions.
The revolving credit line accrues interest at a rate of EURIBOR + 100 basis points and incorporates a
cost adjustment mechanism based on four sustainability criteria.
On 18 July 2023, the novation of the syndicated loan and the credit line was signed. The senior
syndicated loan was increased to EUR 665 million with the incorporation of the amounts of the
bilateral loans from Kutxabank and Unicaja described in the following section. In addition, the credit
line limit was increased to EUR 740 million. At the end of December 2023 this line was not drawn
down.
These funds have the same commitment to maintain certain coverage ratios as the Group bonds and
in the facilities from Banco Sabadell and the European Investment Bank. 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's directors have confirmed that these
ratios were met at 31 December 2023 and do not expect that they will not be fulfilled in the coming
years.
Unsecured loans of the Parent
On 18 November 2022, the Parent arranged a loan without mortgage guarantee with Banco Sabadell
for EUR 60 million, maturing in January 2028 and accruing a market rate of EURIBOR 120 basis
points.
This facility includes commitments to maintain the coverage ratios described in the previous point. The
Parent's directors have confirmed that these ratios were met at 31 December 2023 and do not expect
that they will not be fulfilled in the coming years.
On 31 March 2023, the Parent arranged a loan without mortgage guarantee with Kutxabank, S.A. for
EUR 30 million, maturing 5 years after drawdown and accruing a market rate of EURIBOR + 130 basis
points. For the period in which the facility is not drawn down, a commission for the unarranged
balance of 26 basis points applies. As of 20 April 2023, this facility has been fully drawn down.
On 24 April 2023, the Parent arranged and drew down a loan without mortgage guarantee with
Unicaja Banco, S.A. for EUR 35 million, maturing 5 years after drawdown and accruing a market rate
of EURIBOR + 130 basis points.
On 18 July 2023, both entities (Kutxabank, S.A. and Unicaja Banco, S.A.) assented the senior
syndicated loan, becoming part of it.
Loans from the European Investment Bank
On 20 December 2018, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 51 million. On 4 November 2019, the Parent arranged the second tranche of the mortgage-
free loan with the European Investment Bank for EUR 64 million, with both tranches 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 facility. This loan accruals a fixed interest rate of 60 basis
points. On 20 December 2022, the Group drew down EUR 22 million at a rate of 358 basis points,
meaning the first tranche of EUR 51 million was drawn down in full.
On 20 December 2023, the Group had drawn down EUR 16.9 million at a rate of 386 basis points.
This loan corresponds to the first drawdown of the second tranche of EUR 64 million.
On 16 December 2021, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 45.2 million and maturing in 10 years. 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's directors have confirmed that these
ratios were met at 31 December 2023 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 2023 and 2022, the Group's subsidiaries had taken out the following mortgage loans:
2023
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
11,735
1,629
182
Mortgage
ING
70,000
70,000
-
29
Mortgage
BBVA
180,000
180,000
-
99
Mortgage
Allianz
170,000
170,000
-
1,004
Mortgage
Total
441,000
431,735
1,629
1,314
2022
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
13,256
1,731
100
Mortgage
ING
70,000
70,000
-
12
Mortgage
Total
91,000
83,256
1,731
112
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). It also envisages 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 can lead to certain
savings in the financial burden. The Parent's directors have confirmed that these ratios were met at 31
December 2023 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 2023, the application of the amortised cost in relation to these concepts involved a financial cost of
EUR 362 thousand (EUR 363 thousand in 2022).
On 27 July 2023, the Parent arranged a loan with BBVA secured by a mortgage on the Torre
Castellana. The loan is for EUR 180 million, with a term of 7 years, and accrues interest at a market
rate of EURIBOR + 110 basis points.
On 15 November 2023, the Parent entered into a loan with Allianz secured by a mortgage on a
portfolio of 4 office buildings in Madrid. The loan is for EUR 170 million, with a term of 10 years, and
accrues interest at a fixed rate of 4.523%.
These facilities require 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). The Parent's directors have confirmed that these ratios were met at 31
December 2023 and do not expect that they will not be fulfilled in the coming years.
Maturity of debt
The breakdown by maturity of these loan principals is as follows:
2023
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2024
-
1,629
-
1,629
2025
-
1,721
-
1,721
2026
-
71,808
-
71,808
2027
-
1,900
-
1,900
2028
725,000
1,996
-
726,996
Over 5 years
67,880
354,310
-
422,190
792,880
433,364
-
1,226,244
2022
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2023
-
1,731
-
1,731
2024
-
1,654
-
1,654
2025
-
1,743
-
1,743
2026
-
71,818
-
71,818
2027
-
1,890
-
1,890
Over 5 years
111,000
6,151
-
117,151
111,000
84,987
-
195,987
The Group had undrawn loans and credit facilities at 31 December 2023 with a number of financial
institutions totalling EUR 832.3 million (EUR 1,409 million at 31 December 2022).
None of the Group's debt was denominated in non-euro currencies at 31 December 2023 or 2022.
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 37,901 thousand in 2023 (EUR 8,595 thousand
in 2022) and is recognised in the accompanying consolidated income statement for 2023.
At 31 December 2023 and 2022, the debt arrangement expenses had been deducted from the
balance of \"Bank borrowings\". During the 2023 financial year, the Group has allocated an expense of
EUR 4,286 thousand (in 2022 EUR 8,827 thousand were allocated) under the heading \"Financial
expenses\" of the attached consolidated income statement (see Note 18.d). 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 supplement
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 programme up
to an amount of EUR 6,000 million, the increase being performed on 21 March 2021. On 27 April
2023, the General Meeting authorised the bond-issue programme up to the same amount. On 4
August 2022 and 11 May 2023, the programme was updated 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 25 April 2023, the Group repaid the bond at its maturity in an amount of EUR 742.8 million.
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 ratio compliance obligations
as the syndicated loan and the revolving credit facility.
The breakdown at 31 December 2023 and 2022 of the bonds issued by Parent is as follows:
2023
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
may-25
600
1.750%
MS +82 b.p.s.
3.94%
Luxemburg
nov-26
800
1.875%
MS +74 b.p.s.
3.32%
Luxemburg
jul-27
500
2.375%
MS +105 b.p.s.
3.54%
Luxemburg
sep-29
300
2.375%
MS +102 b.p.s.
3.44%
Luxemburg
jun-30
500
1.375%
MS +176 b.p.s.
4.18%
Luxemburg
dic-34
600
1.875%
MS +184 b.p.s.
4.35%
Luxemburg
3,300
1.898%
2022
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
April 2023
743
2.225%
MS +98 b.p.s.
3.32%
Luxembourg
May 2025
600
1.750%
MS +115 b.p.s.
4.44%
Luxembourg
November 2026
800
1.875%
MS +168 b.p.s.
4.88%
Luxembourg
July 2027
500
2.375%
MS +183 b.p.s.
5.01%
Luxembourg
September 2029
300
2.375%
MS +210 b.p.s.
5.24%
Luxembourg
June 2030
500
1.375%
MS +205 b.p.s.
5.18%
Luxembourg
December 2034
600
1.875%
MS +232 b.p.s.
5.46%
Luxembourg
4,043
1.958%
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 2023 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 67,755 thousand (EUR 81,040
thousand in 2022) and is recognised in the accompanying consolidated income statement for 2023.
The accrued interest payable at 31 December 2023 amounted to EUR 20,966 thousand (EUR 32,366
thousand in 2022). Debt arrangement expenses taken to the consolidated income statement in 2023
amounted to EUR 4,119 thousand (EUR 4,901 thousand in 2022).
14.3 Derivatives
A breakdown of the financial instruments as of 31 December 2023 is as follows:
Thousands of euros
2023
2022
Non-current:
Asset interest rate
(3,429)
(18,882)
Liability interest rate
9,475
-
Other (Note 9)
14,828
9,256
Total non-current
20,874
(9,626)
Current:
Interest rate derivatives
(375)
11
Total current
(375)
11
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 2023 and 2022 is as follows:
2023
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
(3,429)
9,475
Current:
Interest rate derivatives
-
(375)
Total derivatives recognised
(3,429)
9,100
2022
.
Thousands of euros
Assets
Liabilities
Financial
Financial
Non-current:
Interest rate derivatives
18,882
-
Current:
Interest rate derivatives
-
11
Total derivatives recognised
18,882
11
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 67,900
thousand at a cost of 0.31%.
In addition to the early repayment of the EUR 850 million syndicated loan, in June 2022, the Group
cancelled the interest rate hedging instruments associated with this corporate syndicated loan.
In 2023 and 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 665,000 thousand at a
fixed cost of 2.537%.
In 2022, an interest rate hedge 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%.
In addition, in 2023, an interest rate hedge was contracted to cover BBVA's mortgage loan until its
maturity in July 2030 for a notional amount of EUR 180,000 thousand and a fixed cost of 2.363%.
The interest rate derivatives contracted by the Group and their fair values are as follows:
2023
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2023
2024
2025
2026
years
Syndicated Parent Company
2.537%
7,546
665,000
665,000
665,000
665,000
665,000
Non-mortgage - Parent Company
2.512%
562
60,000
60,000
60,000
60,000
60,000
Mortgage - Parent Company
2.363%
1,012
180,000
180,000
180,000
180,000
180,000
Other subsidiaries
0.310%
(3,449)
67,900
67,900
67,900
67,900
67,900
5,671
972,900
972,900
972,900
972,900
972,900
2022
Thousands of euros
Outstanding notional amount at each date
Interest rate
Interest
Fair
Subsequent
Contracted
Value
2022
2023
2024
2025
years
Syndicated Parent Company (starting
2023)
2.574%
(11,394)
-
500,000
500,000
500,000
500,000
Non-mortgage - Parent Company
2.512%
(1,386)
60,000
60,000
60,000
60,000
60,000
Other subsidiaries
0.310%
(6,091)
67,900
67,900
67,900
67,900
67,900
(18,871)
127,900
627,900
627,900
627,900
627,900
The Group has opted for hedge accounting, suitably designating the hedging relationships in which
these financial instruments are hedging instruments of the financing used by the Group. In this
manner, the Group has neutralized flow variations stemming from interest payments and fixed the rate
to be paid for said financing. The derivatives that are highly effective prospectively and retrospectively,
cumulatively, since the date of designation, are those associated with the Banco Sabadell new
syndicated financing and bilateral loan and the BBVA mortgage loan, so their changes in value are
recognised in equity.
The Group has recognised in equity the fair value of the derivatives that meet the effectiveness
requirements, without considering any tax effect due to adhering to the REIT regime. Under the
heading 'Changes in fair value in financial instruments' of the consolidated income statement, the
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 expense in the amount of EUR 660
thousand in 2023 (income of EUR 35,348 thousand in 2022).
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 2023 and 2022 would be as follows:
2023
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(20,530)
19,887
643
5% reduction in credit risk rate
19,948
(19,317)
(631)
2022
Thousands of euros
Scenario
Liabilities
Equity
Consolidated
profit before tax
5% rise in credit risk rate
(13,030)
12,130
901
5% reduction in credit risk rate
13,446
(12,524)
(921)
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 2023 and 2022
was as follows:
2023
Thousands of euros
31/12/2022
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Reclasific
ation
Accrued
interest
Other
adjustments
31/12/2023
Long-term loans
194,256
1,031,880
-
(1,629)
-
108
1,224,615
Short-term loans
2,385
(1,623)
(33,457)
1,629
35,444
-
4,378
Short-term revolving
credit facilities
410
-
(2,342)
-
2,457
-
525
L/T bonds
3,300,000
-
-
-
-
-
3,300,000
S/T bonds
775,152
(742,786)
(79,152)
-
67,755
(3)
20,966
4,272,203
287,471
(114,951)
-
105,656
105
4,550,484
2022
Thousands of euros
31/12/2021
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Discontinu
ed Ops
Principal
Debt
Accrued
interest
Interest
accrued
Discontinu
ed Ops
Other
adjustments
31/12/2022
Long-term loans
1,623,758
(768,000)
-
(659,771)
(1,731)
-
-
-
194,256
Short-term loans
13,154
(1,750)
(6,574)
(13,482)
1,731
6,398
2,908
-
2,385
Short-term revolving
credit facilities
410
-
(2,198)
-
-
2,197
-
1
410
L/T bonds
4,042,786
-
-
-
(742,786)
-
-
-
3,300,000
S/T bonds
588,622
(548,300)
(88,999)
-
742,786
81,040
-
3
775,152
6,268,730
(1,318,050)
(97,771)
(673,253)
-
89,635
2,908
4
4,272,203
In addition, under the interest rate hedging agreements signed (see Note 14.3), the net balance of the
settlements amounted to EUR 5,652 thousand in 2023 (negative balance of EUR 2,819 thousand in
2022).
14.5 Debt arrangement expenses
Changes in debt arrangement expenses during 2023 and 2022 are as follows:
Thousands of euros
31/12/2022
Allocation to
profit and loss
account \u2013
Amortised cost
Impact of
IFRS 9 on
income
statement
Capitalisations
31/12/2023
of arrangement
expenses
Non-mortgage financing
2,757
(3,730)
-
8,336
7,363
Mortgage loans - other assets
1,633
(194)
(362)
1,919
2,996
Debentures and bonds
20,782
(4,119)
-
-
16,663
25,172
(8,043)
(362)
10,255
27,022
Thousands of euros
31/12/2021
Allocation to
profit and loss
account \u2013
Amortised cost
Impact of
IFRS 9 on
income
statement
Capitalisations
31/12/2022
Discontinued
Ops
of arrangement
expenses
Non-mortgage financing
10,855
(4,125)
(4,213)
-
240
2,757
Senior syndicated loan (Tree)
48,106
-
-
(48,106)
-
-
Mortgage loans - other assets
2,123
(127)
(363)
-
-
1,633
Debentures and bonds
25,683
(4,901)
-
-
-
20,782
86,767
(9,153)
(4,576)
(48,106)
240
25,172
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-610": { "value": "
14.1 Loans
The breakdown of mortgage loans at 31 December 2023 and 2022 is as follows:
2023
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2023
Long-term
Short-term
Short-term
interest
Syndicated loan
665,000
(3,889)
665,000
-
1,144
Non-mortgage loan
220,225
(283)
127,880
-
291
Revolving credit facilities
740,000
(3,191)
-
-
525
Mortgage loans - other assets
441,000
(2,996)
431,735
1,629
1,314
Total
2,066,225
(10,359)
1,224,615
1,629
3,274
2022
Thousands of euros
Bank borrowings
Initial
loan/Limit
Expenses
incurred from
formalising
loans (Note
14.5)
31.12.2022
Long-term
Short-term
Short-term
interest
Syndicated loan
600,000
-
-
-
195
Non-mortgage loan
220,225
(271)
111,000
-
347
Revolving credit facilities
700,000
(2,486)
-
-
410
Mortgage loans - other assets
91,000
(1,633)
83,256
1,731
112
Total
1,611,225
(4,390)
194,256
1,731
1,064
Syndicated loans and revolving credit facility - Parent
On 25 April 2019, the Group arranged a senior syndicated loan for EUR 1,550 million, including two
tranches, a corporate loan of EUR 850 million and a corporate credit facility of EUR 700 million
maturing 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 syndicated 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 syndicated loan for EUR 850
million.
In 2022, as a result of the early cancellation of this facility, the application of amortized cost in relation
to IFRS 9 represented a financial cost of EUR 4,213 thousand.
On 18 November 2022, the Parent arranged a new senior syndicated loan for EUR 600 million with
the possibility of being arranged before 24 April 2023 for the repayment of the bond maturing in 2023.
This facility has a maturity of 5 years from its disposal and accrues a market rate of EURIBOR plus
130 basis points. For the period in which the facility is not drawn down, a commission for the
unarranged balance of 26 basis points applies. As of, 20 April 2023 the Parent had drawn down this
facility in full.
In addition, on the same date, a novation agreement was entered into for the senior syndicated loan
including a Tranche B corresponding to a revolving credit line with a limit of EUR 700,000 thousand .
This new credit line has a maturity of 5 years with the possibility of two optional one-year extensions.
The revolving credit line accrues interest at a rate of EURIBOR + 100 basis points and incorporates a
cost adjustment mechanism based on four sustainability criteria.
On 18 July 2023, the novation of the syndicated loan and the credit line was signed. The senior
syndicated loan was increased to EUR 665 million with the incorporation of the amounts of the
bilateral loans from Kutxabank and Unicaja described in the following section. In addition, the credit
line limit was increased to EUR 740 million. At the end of December 2023 this line was not drawn
down.
These funds have the same commitment to maintain certain coverage ratios as the Group bonds and
in the facilities from Banco Sabadell and the European Investment Bank. 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's directors have confirmed that these
ratios were met at 31 December 2023 and do not expect that they will not be fulfilled in the coming
years.
Unsecured loans of the Parent
On 18 November 2022, the Parent arranged a loan without mortgage guarantee with Banco Sabadell
for EUR 60 million, maturing in January 2028 and accruing a market rate of EURIBOR 120 basis
points.
This facility includes commitments to maintain the coverage ratios described in the previous point. The
Parent's directors have confirmed that these ratios were met at 31 December 2023 and do not expect
that they will not be fulfilled in the coming years.
On 31 March 2023, the Parent arranged a loan without mortgage guarantee with Kutxabank, S.A. for
EUR 30 million, maturing 5 years after drawdown and accruing a market rate of EURIBOR + 130 basis
points. For the period in which the facility is not drawn down, a commission for the unarranged
balance of 26 basis points applies. As of 20 April 2023, this facility has been fully drawn down.
On 24 April 2023, the Parent arranged and drew down a loan without mortgage guarantee with
Unicaja Banco, S.A. for EUR 35 million, maturing 5 years after drawdown and accruing a market rate
of EURIBOR + 130 basis points.
On 18 July 2023, both entities (Kutxabank, S.A. and Unicaja Banco, S.A.) assented the senior
syndicated loan, becoming part of it.
Loans from the European Investment Bank
On 20 December 2018, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 51 million. On 4 November 2019, the Parent arranged the second tranche of the mortgage-
free loan with the European Investment Bank for EUR 64 million, with both tranches 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 facility. This loan accruals a fixed interest rate of 60 basis
points. On 20 December 2022, the Group drew down EUR 22 million at a rate of 358 basis points,
meaning the first tranche of EUR 51 million was drawn down in full.
On 20 December 2023, the Group had drawn down EUR 16.9 million at a rate of 386 basis points.
This loan corresponds to the first drawdown of the second tranche of EUR 64 million.
On 16 December 2021, the Parent arranged a mortgage-free loan with the European Investment Bank
for EUR 45.2 million and maturing in 10 years. 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's directors have confirmed that these
ratios were met at 31 December 2023 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 2023 and 2022, the Group's subsidiaries had taken out the following mortgage loans:
2023
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
11,735
1,629
182
Mortgage
ING
70,000
70,000
-
29
Mortgage
BBVA
180,000
180,000
-
99
Mortgage
Allianz
170,000
170,000
-
1,004
Mortgage
Total
441,000
431,735
1,629
1,314
2022
Thousands of euros
Original
Long-term
Short-term
Financial institution
Loan
Term
Term
Interest
Collateral
Caixabank
21,000
13,256
1,731
100
Mortgage
ING
70,000
70,000
-
12
Mortgage
Total
91,000
83,256
1,731
112
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). It also envisages 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 can lead to certain
savings in the financial burden. The Parent's directors have confirmed that these ratios were met at 31
December 2023 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 2023, the application of the amortised cost in relation to these concepts involved a financial cost of
EUR 362 thousand (EUR 363 thousand in 2022).
On 27 July 2023, the Parent arranged a loan with BBVA secured by a mortgage on the Torre
Castellana. The loan is for EUR 180 million, with a term of 7 years, and accrues interest at a market
rate of EURIBOR + 110 basis points.
On 15 November 2023, the Parent entered into a loan with Allianz secured by a mortgage on a
portfolio of 4 office buildings in Madrid. The loan is for EUR 170 million, with a term of 10 years, and
accrues interest at a fixed rate of 4.523%.
These facilities require 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). The Parent's directors have confirmed that these ratios were met at 31
December 2023 and do not expect that they will not be fulfilled in the coming years.
Maturity of debt
The breakdown by maturity of these loan principals is as follows:
2023
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2024
-
1,629
-
1,629
2025
-
1,721
-
1,721
2026
-
71,808
-
71,808
2027
-
1,900
-
1,900
2028
725,000
1,996
-
726,996
Over 5 years
67,880
354,310
-
422,190
792,880
433,364
-
1,226,244
2022
Thousands of euros
Revolving
Syndicated
Secured
line of
loans and other
loans
Loans
credit
Total
2023
-
1,731
-
1,731
2024
-
1,654
-
1,654
2025
-
1,743
-
1,743
2026
-
71,818
-
71,818
2027
-
1,890
-
1,890
Over 5 years
111,000
6,151
-
117,151
111,000
84,987
-
195,987
The Group had undrawn loans and credit facilities at 31 December 2023 with a number of financial
institutions totalling EUR 832.3 million (EUR 1,409 million at 31 December 2022).
None of the Group's debt was denominated in non-euro currencies at 31 December 2023 or 2022.
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 37,901 thousand in 2023 (EUR 8,595 thousand
in 2022) and is recognised in the accompanying consolidated income statement for 2023.
At 31 December 2023 and 2022, the debt arrangement expenses had been deducted from the
balance of \"Bank borrowings\". During the 2023 financial year, the Group has allocated an expense of
EUR 4,286 thousand (in 2022 EUR 8,827 thousand were allocated) under the heading \"Financial
expenses\" of the attached consolidated income statement (see Note 18.d). 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-611": { "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 supplement
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 programme up
to an amount of EUR 6,000 million, the increase being performed on 21 March 2021. On 27 April
2023, the General Meeting authorised the bond-issue programme up to the same amount. On 4
August 2022 and 11 May 2023, the programme was updated 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 25 April 2023, the Group repaid the bond at its maturity in an amount of EUR 742.8 million.
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 ratio compliance obligations
as the syndicated loan and the revolving credit facility.
The breakdown at 31 December 2023 and 2022 of the bonds issued by Parent is as follows:
2023
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
may-25
600
1.750%
MS +82 b.p.s.
3.94%
Luxemburg
nov-26
800
1.875%
MS +74 b.p.s.
3.32%
Luxemburg
jul-27
500
2.375%
MS +105 b.p.s.
3.54%
Luxemburg
sep-29
300
2.375%
MS +102 b.p.s.
3.44%
Luxemburg
jun-30
500
1.375%
MS +176 b.p.s.
4.18%
Luxemburg
dic-34
600
1.875%
MS +184 b.p.s.
4.35%
Luxemburg
3,300
1.898%
2022
Maturity
Face value
Coupon
Listed price
Return
Market
(Millions of Euros)
April 2023
743
2.225%
MS +98 b.p.s.
3.32%
Luxembourg
May 2025
600
1.750%
MS +115 b.p.s.
4.44%
Luxembourg
November 2026
800
1.875%
MS +168 b.p.s.
4.88%
Luxembourg
July 2027
500
2.375%
MS +183 b.p.s.
5.01%
Luxembourg
September 2029
300
2.375%
MS +210 b.p.s.
5.24%
Luxembourg
June 2030
500
1.375%
MS +205 b.p.s.
5.18%
Luxembourg
December 2034
600
1.875%
MS +232 b.p.s.
5.46%
Luxembourg
4,043
1.958%
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 2023 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 67,755 thousand (EUR 81,040
thousand in 2022) and is recognised in the accompanying consolidated income statement for 2023.
The accrued interest payable at 31 December 2023 amounted to EUR 20,966 thousand (EUR 32,366
thousand in 2022). Debt arrangement expenses taken to the consolidated income statement in 2023
amounted to EUR 4,119 thousand (EUR 4,901 thousand in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-612": { "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 2023 and 2022
was as follows:
2023
Thousands of euros
31/12/2022
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Reclasific
ation
Accrued
interest
Other
adjustments
31/12/2023
Long-term loans
194,256
1,031,880
-
(1,629)
-
108
1,224,615
Short-term loans
2,385
(1,623)
(33,457)
1,629
35,444
-
4,378
Short-term revolving
credit facilities
410
-
(2,342)
-
2,457
-
525
L/T bonds
3,300,000
-
-
-
-
-
3,300,000
S/T bonds
775,152
(742,786)
(79,152)
-
67,755
(3)
20,966
4,272,203
287,471
(114,951)
-
105,656
105
4,550,484
2022
Thousands of euros
31/12/2021
Impact on cash
No impact on cash
Principal
Debt
Interest
paid
Discontinu
ed Ops
Principal
Debt
Accrued
interest
Interest
accrued
Discontinu
ed Ops
Other
adjustments
31/12/2022
Long-term loans
1,623,758
(768,000)
-
(659,771)
(1,731)
-
-
-
194,256
Short-term loans
13,154
(1,750)
(6,574)
(13,482)
1,731
6,398
2,908
-
2,385
Short-term revolving
credit facilities
410
-
(2,198)
-
-
2,197
-
1
410
L/T bonds
4,042,786
-
-
-
(742,786)
-
-
-
3,300,000
S/T bonds
588,622
(548,300)
(88,999)
-
742,786
81,040
-
3
775,152
6,268,730
(1,318,050)
(97,771)
(673,253)
-
89,635
2,908
4
4,272,203
In addition, under the interest rate hedging agreements signed (see Note 14.3), the net balance of the
settlements amounted to EUR 5,652 thousand in 2023 (negative balance of EUR 2,819 thousand in
2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-613": { "value": "
15.\u00a0 \u00a0 Other current and non-current liabilities
Details of this heading at 31 December 2023 and 2022 are as follows:
Thousands of euros
2023
2022
Non-current
Current
Non-current
Current
Other provisions
20,181
-
12,670
-
Guarantees and deposits received
84,190
1,976
86,407
3,791
Deferred tax liabilities
613,190
-
613,479
-
Other payables
71,794
5,393
58,485
5,229
Other (Note 9)
14,828
-
9,256
-
Borrowings from Group companies and associates
450
-
2,250
-
Other current liabilities
-
10,210
-
11,566
Total
804,633
17,579
782,547
20,586
\"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 4,510 thousand (EUR 4,619 thousand in 2022).
\"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.On February 10, 2022, the tax authorities notified the
Parent Company of the commencement of verification and investigation proceedings relating to
corporate income tax, value added tax and withholdings on account for various years. In this regard
and based on the best estimates of the amounts to be paid in the tax assessments and supplementary
tax returns for the years subsequent to those inspected, in 2023 the Group recorded a provision of
EUR 5,862 thousand under \"Provisions\" in the accompanying consolidated income statement (see
Notes 17.f and 24).
\"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 and the majority of its subsidiaries adhere to the REIT 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 2023), 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-615": { "value": "
Details of this heading at 31 December 2023 and 2022 are as follows:
Thousands of euros
2023
2022
Non-current
Current
Non-current
Current
Other provisions
20,181
-
12,670
-
Guarantees and deposits received
84,190
1,976
86,407
3,791
Deferred tax liabilities
613,190
-
613,479
-
Other payables
71,794
5,393
58,485
5,229
Other (Note 9)
14,828
-
9,256
-
Borrowings from Group companies and associates
450
-
2,250
-
Other current liabilities
-
10,210
-
11,566
Total
804,633
17,579
782,547
20,586
\"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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-614": { "value": "
Details of this heading at 31 December 2023 and 2022 are as follows:
Thousands of euros
2023
2022
Non-current
Current
Non-current
Current
Other provisions
20,181
-
12,670
-
Guarantees and deposits received
84,190
1,976
86,407
3,791
Deferred tax liabilities
613,190
-
613,479
-
Other payables
71,794
5,393
58,485
5,229
Other (Note 9)
14,828
-
9,256
-
Borrowings from Group companies and associates
450
-
2,250
-
Other current liabilities
-
10,210
-
11,566
Total
804,633
17,579
782,547
20,586
\"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 4,510 thousand (EUR 4,619 thousand in 2022).
\"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.On February 10, 2022, the tax authorities notified the
Parent Company of the commencement of verification and investigation proceedings relating to
corporate income tax, value added tax and withholdings on account for various years. In this regard
and based on the best estimates of the amounts to be paid in the tax assessments and supplementary
tax returns for the years subsequent to those inspected, in 2023 the Group recorded a provision of
EUR 5,862 thousand under \"Provisions\" in the accompanying consolidated income statement (see
Notes 17.f and 24).
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-616": { "value": "
The Parent and the majority of its subsidiaries adhere to the REIT 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 2023), 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 2023 is as follows:
2023
Thousands of euros
Recognised
Fiscal
Tax base
credit
Tax loss carryforwards:
2009
134,567
33,642
2010
1,650
413
2011
86,402
21,600
2014
13,313
3,328
2015
-
-
2018
718
180
2019
1,374
343
2022
1,337
335
2023
-
-
Total tax loss carryforwards
239,361
59,841
Other deferred taxes recognised
70,928
17,732
Total capitalised deferred tax assets
310,289
77,573
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 2023 is as follows:
Thousands of
euros
Not recognised
Tax base
Tax loss carryforwards:
2009
52,955
2010
5,673
2011
1,214
2012
1,676
2013
440
2014
17,987
2015
-
2016
456
2017
2,199
2018
505
2019
3,603
2020
14,815
2021
6,828
2022
6,096
2023
59,796
Total tax loss carryforwards
174,243
e)Deferred tax liabilities
As indicated above, the deferred tax liabilities arise mainly from the business combinations performed
in recent years and the non-REIT subsidiaries (resident in Portugal, which meet the requirements of
article 2.1 (c) of the REIT Law to be considered as eligible assets for that regime).
The changes at 31 December 2023 and 2022 are as follows:
Thousands of
euros
Total deferred tax liabilities at 31 December 2021
681,013
Increase in value of investment property
1,684
Reductions due to disposals
(68,944)
Temporary differences
(274)
Total deferred tax liabilities at 31 December 2022
613,479
Increase (decrease) in value of investment property
(209)
Reductions due to disposals
-
Temporary differences
(80)
Total deferred tax liabilities at 31 December 2023
613,190
In 2022, derecognitions due to sale related 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 stipulated 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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-617": { "value": "
Details of this heading at 31 December 2023 and 2022 are as follows:
Thousands of euros
2023
2022
Current:
Suppliers
84,585
74,814
Payables to suppliers - Group companies and associates
1,800
1,800
Various creditors
8,660
9,341
Pendings remunerations
12,612
16,190
Other payables to public authorities (Note 17)
31,392
27,044
Advances from customers
24,959
17,661
164,008
146,850
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
second final provision 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.
Days
2023
2022
Average period of payment to suppliers
39
25
Ratio of transactions settled
39
24
Ratio of transactions not yet settled
35
33
Thousands of euros
2023
2022
Total payments made
478,960
345,878
Total payments outstanding
41,125
71,590
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 of 60 days are
detailed below.
2023
2022
Monetary volume (thousands of euros)
446,079
345,129
Percentage of total payments made
93.1%
99.7%
Number of invoices
34,949
36,196
Percentage of total invoices
79.9%
99.9%
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-618": { "value": "
17.\u00a0 \u00a0 Tax situation
a) Tax receivables and tax payables
The breakdown of the main tax receivables and payables at 31 December 2023 and 2022 is as
follows:
2023
Thousands of euros
Tax assets
Tax liabilities
No
No
Current
Current
Current
Current
Public Treasury for withholdings and other items
-
17,530
-
24,365
VAT
-
1,985
-
6,712
Tax assets
77,573
-
-
-
Corporate income tax
-
-
-
7,591
Payable to the Social Security
-
-
-
315
Deferred tax liabilities
-
-
613,190
-
77,573
19,515
613,190
38,983
2022
Thousands of euros
Tax assets
Tax liabilities
No
No
Current
Current
Current
Current
Public Treasury for withholdings and other items
-
14,572
-
21,095
VAT
-
3,277
-
5,650
Tax assets
78,646
-
-
-
Corporate income tax
-
-
-
5,234
Payable to the Social Security
-
-
-
300
Deferred tax liabilities
-
-
613,479
-
78,646
17,849
613,479
32,279
b) Reconciliation of the accounting profit/loss to the taxable profit/tax loss
At 31 December 2023, 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 2023 and 2022 is as
follows:
Thousands of euros
2023
2022
Profit/(Loss) before tax
(74,992)
48,156
Permanent differences:
-Consolidation adjustments to profit or loss
(12,658)
5,847
-Tax adjustments Operating profit
(41,471)
786,007
-Non-deductible finance costs
-
-
-Profit and loss accounted for using the equity method
(39,923)
(24,033)
-Other permanent differences
(6,873)
19,972
Temporary differences:
-Changes in the value of investment property
335,984
249,272
-Adjustments to depreciation and amortisation
(52,005)
(50,308)
Tax loss carryforwards
-
(1,469)
Adjusted taxable profit
108,062
1,033,444
The Parent 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, and, in 2022 the tax income obtained
from the divestment 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
2023 and 2022 is taxed at 0% and therefore the deferred tax liability is also zero.
c) Reconciliation of accounting profit and tax expense
Thousands of euros
2023
2022
Income/(Expense):
Expense for change in value of investment property (a)
209
(1,684)
Expense for disposal of properties within the REIT regime (b)
-
(1,102)
Expense for disposal of properties outside the REIT regime
-
-
Expense for gain/(loss) at standard rate
(7,737)
(5,836)
Other items
(977)
1,822
Total corporate income tax expense
(8,505)
(6,800)
Current tax
(7,737)
(5,836)
Deferred tax and other adjustments to taxation
(768)
(964)
Total corporate income tax expense
(8,505)
(6,800)
(a)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.
(b)In 2022, 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 2023 is as follows:
2023
Thousands of euros
Recognised
Fiscal
Tax base
credit
Tax loss carryforwards:
2009
134,567
33,642
2010
1,650
413
2011
86,402
21,600
2014
13,313
3,328
2015
-
-
2018
718
180
2019
1,374
343
2022
1,337
335
2023
-
-
Total tax loss carryforwards
239,361
59,841
Other deferred taxes recognised
70,928
17,732
Total capitalised deferred tax assets
310,289
77,573
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 2023 is as follows:
Thousands of
euros
Not recognised
Tax base
Tax loss carryforwards:
2009
52,955
2010
5,673
2011
1,214
2012
1,676
2013
440
2014
17,987
2015
-
2016
456
2017
2,199
2018
505
2019
3,603
2020
14,815
2021
6,828
2022
6,096
2023
59,796
Total tax loss carryforwards
174,243
e)Deferred tax liabilities
As indicated above, the deferred tax liabilities arise mainly from the business combinations performed
in recent years and the non-REIT subsidiaries (resident in Portugal, which meet the requirements of
article 2.1 (c) of the REIT Law to be considered as eligible assets for that regime).
The changes at 31 December 2023 and 2022 are as follows:
Thousands of
euros
Total deferred tax liabilities at 31 December 2021
681,013
Increase in value of investment property
1,684
Reductions due to disposals
(68,944)
Temporary differences
(274)
Total deferred tax liabilities at 31 December 2022
613,479
Increase (decrease) in value of investment property
(209)
Reductions due to disposals
-
Temporary differences
(80)
Total deferred tax liabilities at 31 December 2023
613,190
In 2022, derecognitions due to sale related 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 stipulated 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 legislation, 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 statute of limitations has
expired. At year-end 2022, the Parent\u00a0 was open for income tax audit for the periods 2020 to 2022,
VAT and income tax withholdings for 2020 to 2023, and Business Tax (IAE) and Property Tax (IBI) for
2021 to 2024. The subsidiaries was open for income tax audit for the periods 2019 to 2022, VAT and
income tax withholdings for 2020 to 2023, and Business Tax (IAE) and Property Tax (IBI) for 2021 to
2024. 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 the other hand, on February 10, 2022, the Tax Agency notified the Parent Company of the
commencement of verification and investigation proceedings relating to Corporate Income Tax for the
financial years 2016 to 2019, Value Added Tax and withholdings on account of Non-Resident Income
Tax and capital gains tax for the financial years 2018 to 2019. These actions have been finalized by
signing in conformity on February 21, 2024 and the amounts payable have been recorded under
\"Provisions\" in the accompanying consolidated income statement (Notes 15 and 24).
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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-619": { "value": "
a) Tax receivables and tax payables
The breakdown of the main tax receivables and payables at 31 December 2023 and 2022 is as
follows:
2023
Thousands of euros
Tax assets
Tax liabilities
No
No
Current
Current
Current
Current
Public Treasury for withholdings and other items
-
17,530
-
24,365
VAT
-
1,985
-
6,712
Tax assets
77,573
-
-
-
Corporate income tax
-
-
-
7,591
Payable to the Social Security
-
-
-
315
Deferred tax liabilities
-
-
613,190
-
77,573
19,515
613,190
38,983
2022
Thousands of euros
Tax assets
Tax liabilities
No
No
Current
Current
Current
Current
Public Treasury for withholdings and other items
-
14,572
-
21,095
VAT
-
3,277
-
5,650
Tax assets
78,646
-
-
-
Corporate income tax
-
-
-
5,234
Payable to the Social Security
-
-
-
300
Deferred tax liabilities
-
-
613,479
-
78,646
17,849
613,479
32,279
", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-620": { "value": "
18.\u00a0 \u00a0 Revenue and expenses
a) Net income
The breakdown of ordinary income of the Group relating to 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Rental income
447,207
428,154
Income from services rendered
17,572
10,884
464,779
439,038
b) Other operating expenses
The breakdown of the balance of this heading of the consolidated income statement corresponding to
the 2023 and 2022 financial years is as follows:
Thousands of euros
2023
2022
Non-recoverable expenses of leased properties
43,823
49,096
Overheads-
Professional services
11,304
11,821
Travel expenses
1,061
976
Insurance
703
794
Other
4,583
2,856
Costs associated with asset acquisitions and financing
2,166
2,112
Losses on, impairment of and change in provisions
(323)
180
Other current operating expenses
9,708
5,652
Other exceptional expenses
300
331
73,325
73,818
c) Staff costs and average headcount
The detail of the staff costs in 2023 and 2022 was as follows:
Thousands of euros
2023
2022
Wages, salaries and similar expenses
27,711
32,056
Termination benefits
282
-
Social security costs
3,548
3,085
Other employee benefit costs
500
518
Long-term incentive plan
2,804
4,014
34,845
39,673
The average number of employees at the various Group companies in 2023 and 2022 was 257 and
250 respectively.
A breakdown of the headcount at 2023 and 2022 year-end, by category, is as follows:
2023
Women
Men
Total
Senior management
1
27
28
Middle management
28
52
80
Other professionals
97
61
158
126
140
266
2022\u00a0 \u00a0
Women
Men
Total
Senior management
1
27
28
Middle management
27
55
82
Other professionals
89
61
150
117
143
260
The average number of employees at the Group in 2023 and 2022 with a disability equal to or
greater than 33%, by category, was as follows:
Categories
2023
2022
Senior management
-
-
Middle management
1
1
Other professionals
5
6
6
7
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
Thousands of euros
2023
2022
Finance income:
Interest on loans
1,880
2,098
Interest on deposits and current accounts
8,226
1,844
10,106
3,942
Finance costs:
Interest on loans and other credits
(109,516)
(103,382)
Other finance costs
(18,270)
(5,821)
(127,786)
(109,203)
Net finance expense
(117,680)
(105,261)
In 2023 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 37,901 thousand and EUR 67,755 thousand, respectively
(EUR 8,595 and EUR 81,040 thousand in 2022 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 8,405 thousand (EUR 13,729 thousand in
2022), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
incomes associated with interest rate derivatives amounting to EUR 4,545 thousand (losses of EUR
18 thousand in 2022).
e) Contribution to consolidated profit
The contribution of each company included in the scope of consolidation to profit for 2023 and 2022
was as follows:
Thousands of euros
Company
2023
2022
Full consolidation:
Merlin Properties SOCIMI, S.A. (1)
(277,112)
122,450
Tree Inversiones Inmobiliarias, SOCIMI, S.A.
\u2014
6,279
Merlin Retail, S.L.
12,481
11,975
Merlin Oficinas, S.L.
(44,034)
(5,279)
Merlin Log\u00edstica, S.L.
93,112
26,363
Varitelia Distribuciones, S.L.U.
(10,445)
3,489
Metroparque, S.A. (2)
\u2014
1,366
La Vital Centro Comercial y de Ocio, S.L.
2,222
3,355
Global Carihuela Patrimonio Comercial, S.L.U.
15,203
2,258
Parques Log\u00edsticos de la Zona Franca, S.A.
31,194
(2,548)
Sevisur Log\u00edstica, S.A.
11,452
10,931
The Exhibitions Company, S.A.
(1,218)
(1,467)
Innovaci\u00f3n Colaborativa, S.L.U.
4,795
1,715
Promosete Invest. Inmobiliaria, S.A.
3
1,072
Pra\u00e7a do Marqu\u00e9s - Servicios auxiliares, S.A.
968
2,515
MPCVI - Compra e Venda Imobili\u00e1ria, S.A.
(157)
1,340
MPEP - Properties Escrit\u00f3rios Portugal, S.A.
38
681
MP Monumental, S.A.
499
20,296
MP Torre A, S.A.
(360)
(657)
Forum Almada \u2013 Gestao Centro Comercial, Lda
13,339
18,870
Torre dos Oceanus Investimentos Inmobiliarios,S.A.
248
1,377
Torre Arts Investimentos Inmobiliarios,S.A.
(3,321)
3,970
Torre Fern\u00e3o Magalh\u00e3es Investimentos Inmobiliarios,S.A.
64
1,418
VFX Log\u00edstica, S.A.
27,919
7,210
Other companies
(310)
75
Equity method:
Paseo Comercial Carlos III, S.A.
(5,337)
2,487
Centro Intermodal de Log\u00edstica, S.L.
50,119
18,556
Provitae, S.L.
(996)
(198)
Sicilius Real Estate SOCIMI S.A.
(3,264)
2,667
Crea Madrid Nuevo Norte, S.A.
(565)
(616)
Other investments
(34)
1,137
Total
(83,497)
263,087
(1) In 2022, it includes EUR 215,452 thousand associated with discontinued activity disposed of
(2) Company split up in 2023 (See Note 3)", "dimensions": { "concept": "mer:DisclosureOfIncomeAndExpenseTextBlock", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-623": { "value": "
a) Net income
The breakdown of ordinary income of the Group relating to 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Rental income
447,207
428,154
Income from services rendered
17,572
10,884
464,779
439,038
b) Other operating expenses
The breakdown of the balance of this heading of the consolidated income statement corresponding to
the 2023 and 2022 financial years is as follows:
Thousands of euros
2023
2022
Non-recoverable expenses of leased properties
43,823
49,096
Overheads-
Professional services
11,304
11,821
Travel expenses
1,061
976
Insurance
703
794
Other
4,583
2,856
Costs associated with asset acquisitions and financing
2,166
2,112
Losses on, impairment of and change in provisions
(323)
180
Other current operating expenses
9,708
5,652
Other exceptional expenses
300
331
73,325
73,818
c) Staff costs and average headcount
The detail of the staff costs in 2023 and 2022 was as follows:
Thousands of euros
2023
2022
Wages, salaries and similar expenses
27,711
32,056
Termination benefits
282
-
Social security costs
3,548
3,085
Other employee benefit costs
500
518
Long-term incentive plan
2,804
4,014
34,845
39,673
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-622": { "value": "
a) Net income
The breakdown of ordinary income of the Group relating to 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Rental income
447,207
428,154
Income from services rendered
17,572
10,884
464,779
439,038
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-621": { "value": "
a) Net income
The breakdown of ordinary income of the Group relating to 2023 and 2022 is as follows:
Thousands of euros
2023
2022
Rental income
447,207
428,154
Income from services rendered
17,572
10,884
464,779
439,038
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-625": { "value": "
b) Other operating expenses
The breakdown of the balance of this heading of the consolidated income statement corresponding to
the 2023 and 2022 financial years is as follows:
Thousands of euros
2023
2022
Non-recoverable expenses of leased properties
43,823
49,096
Overheads-
Professional services
11,304
11,821
Travel expenses
1,061
976
Insurance
703
794
Other
4,583
2,856
Costs associated with asset acquisitions and financing
2,166
2,112
Losses on, impairment of and change in provisions
(323)
180
Other current operating expenses
9,708
5,652
Other exceptional expenses
300
331
73,325
73,818
c) Staff costs and average headcount
The detail of the staff costs in 2023 and 2022 was as follows:
Thousands of euros
2023
2022
Wages, salaries and similar expenses
27,711
32,056
Termination benefits
282
-
Social security costs
3,548
3,085
Other employee benefit costs
500
518
Long-term incentive plan
2,804
4,014
34,845
39,673
The average number of employees at the various Group companies in 2023 and 2022 was 257 and
250 respectively.
A breakdown of the headcount at 2023 and 2022 year-end, by category, is as follows:
2023
Women
Men
Total
Senior management
1
27
28
Middle management
28
52
80
Other professionals
97
61
158
126
140
266
2022\u00a0 \u00a0
Women
Men
Total
Senior management
1
27
28
Middle management
27
55
82
Other professionals
89
61
150
117
143
260
The average number of employees at the Group in 2023 and 2022 with a disability equal to or
greater than 33%, by category, was as follows:
Categories
2023
2022
Senior management
-
-
Middle management
1
1
Other professionals
5
6
6
7
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-624": { "value": "
b) Other operating expenses
The breakdown of the balance of this heading of the consolidated income statement corresponding to
the 2023 and 2022 financial years is as follows:
Thousands of euros
2023
2022
Non-recoverable expenses of leased properties
43,823
49,096
Overheads-
Professional services
11,304
11,821
Travel expenses
1,061
976
Insurance
703
794
Other
4,583
2,856
Costs associated with asset acquisitions and financing
2,166
2,112
Losses on, impairment of and change in provisions
(323)
180
Other current operating expenses
9,708
5,652
Other exceptional expenses
300
331
73,325
73,818
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-626": { "value": "
Thousands of euros
2023
2022
Wages, salaries and similar expenses
27,711
32,056
Termination benefits
282
-
Social security costs
3,548
3,085
Other employee benefit costs
500
518
Long-term incentive plan
2,804
4,014
34,845
39,673
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-627": { "value": "
The average number of employees at the various Group companies in 2023 and 2022 was 257 and
250 respectively.
A breakdown of the headcount at 2023 and 2022 year-end, by category, is as follows:
2023
Women
Men
Total
Senior management
1
27
28
Middle management
28
52
80
Other professionals
97
61
158
126
140
266
2022\u00a0 \u00a0
Women
Men
Total
Senior management
1
27
28
Middle management
27
55
82
Other professionals
89
61
150
117
143
260
The average number of employees at the Group in 2023 and 2022 with a disability equal to or
greater than 33%, by category, was as follows:
Categories
2023
2022
Senior management
-
-
Middle management
1
1
Other professionals
5
6
6
7
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-632": { "value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
Thousands of euros
2023
2022
Finance income:
Interest on loans
1,880
2,098
Interest on deposits and current accounts
8,226
1,844
10,106
3,942
Finance costs:
Interest on loans and other credits
(109,516)
(103,382)
Other finance costs
(18,270)
(5,821)
(127,786)
(109,203)
Net finance expense
(117,680)
(105,261)
In 2023 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 37,901 thousand and EUR 67,755 thousand, respectively
(EUR 8,595 and EUR 81,040 thousand in 2022 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 8,405 thousand (EUR 13,729 thousand in
2022), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
incomes associated with interest rate derivatives amounting to EUR 4,545 thousand (losses of EUR
18 thousand in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-631": { "value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
Thousands of euros
2023
2022
Finance income:
Interest on loans
1,880
2,098
Interest on deposits and current accounts
8,226
1,844
10,106
3,942
Finance costs:
Interest on loans and other credits
(109,516)
(103,382)
Other finance costs
(18,270)
(5,821)
(127,786)
(109,203)
Net finance expense
(117,680)
(105,261)
In 2023 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 37,901 thousand and EUR 67,755 thousand, respectively
(EUR 8,595 and EUR 81,040 thousand in 2022 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 8,405 thousand (EUR 13,729 thousand in
2022), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
incomes associated with interest rate derivatives amounting to EUR 4,545 thousand (losses of EUR
18 thousand in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-630": { "value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
Thousands of euros
2023
2022
Finance income:
Interest on loans
1,880
2,098
Interest on deposits and current accounts
8,226
1,844
10,106
3,942
Finance costs:
Interest on loans and other credits
(109,516)
(103,382)
Other finance costs
(18,270)
(5,821)
(127,786)
(109,203)
Net finance expense
(117,680)
(105,261)
In 2023 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 37,901 thousand and EUR 67,755 thousand, respectively
(EUR 8,595 and EUR 81,040 thousand in 2022 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 8,405 thousand (EUR 13,729 thousand in
2022), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
incomes associated with interest rate derivatives amounting to EUR 4,545 thousand (losses of EUR
18 thousand in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-629": { "value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
Thousands of euros
2023
2022
Finance income:
Interest on loans
1,880
2,098
Interest on deposits and current accounts
8,226
1,844
10,106
3,942
Finance costs:
Interest on loans and other credits
(109,516)
(103,382)
Other finance costs
(18,270)
(5,821)
(127,786)
(109,203)
Net finance expense
(117,680)
(105,261)
In 2023 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 37,901 thousand and EUR 67,755 thousand, respectively
(EUR 8,595 and EUR 81,040 thousand in 2022 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 8,405 thousand (EUR 13,729 thousand in
2022), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
incomes associated with interest rate derivatives amounting to EUR 4,545 thousand (losses of EUR
18 thousand in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-628": { "value": "
d) Finance income and costs
The breakdown of these items in the consolidated income statement is as follows:
Thousands of euros
2023
2022
Finance income:
Interest on loans
1,880
2,098
Interest on deposits and current accounts
8,226
1,844
10,106
3,942
Finance costs:
Interest on loans and other credits
(109,516)
(103,382)
Other finance costs
(18,270)
(5,821)
(127,786)
(109,203)
Net finance expense
(117,680)
(105,261)
In 2023 finance costs include mainly the interest corresponding to the bank borrowings and obligations
detailed in the Note 14 amounting to EUR 37,901 thousand and EUR 67,755 thousand, respectively
(EUR 8,595 and EUR 81,040 thousand in 2022 respectively). The amounts above does not include
amortisation of debt formalisation costs amounting to EUR 8,405 thousand (EUR 13,729 thousand in
2022), from application of the effective interest rate on financial debt (see Note 14.5), and the financial
incomes associated with interest rate derivatives amounting to EUR 4,545 thousand (losses of EUR
18 thousand in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-633": { "value": "
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 2023 and 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:
2023
Nature of
relationship
Thousands of euros
Related party
Revenue
Expense
Assets
Liabilities
Banco Santander, S.A. (a)
Financing
2,559
382
-
100,000
Banco Santander, S.A. (a)
Cash
-
-
130,728
-
Banco Santander, S.A. (b)
Lease
825
-
-
391
Banco Santander, S.A. (b)
Services
-
144
-
-
Banco Santander, S.A. (c)
Asset disposal
8,600
-
-
-
P\u00ba Comer. Carlos III, S.A. (d)
Financing
29
-
2,619
-
Provitae Centros Asistenciales, S.L. (e)
Financing
39
-
1,198
-
Silicius Real Estate SOCIMI, S.A. (f)
Financing
-
-
-
2,250
12,052
526
134,545
102,641
2022
Nature of
relationship
Thousands of euros
Related party
Revenue
Expense
Assets
Liabilities
Banco Santander, S.A. (a)
Financing
5,860
2,326
-
-
Banco Santander, S.A. (a)
Cash
-
-
201,077
-
Banco Santander, S.A. (b)
Lease
752
23
-
392
Banco Santander, S.A. (b)
Services
-
75
-
-
P\u00ba Comer. Carlos III, S.A. (d)
Financing
29
-
2,590
-
Provitae Centros Asistenciales, S.L. (e)
Financing
-
-
1,131
-
Silicius Real Estate SOCIMI, S.A. (f)
Financing
-
-
-
4,050
6,641
2,424
204,798
4,442
Transactions executed with significant shareholders
During 2023, only the shareholder Banco Santander, S.A. held the status of significant shareholder
pursuant to the regulations in force.
a)Financing transactions
At 31 December 2023, the Group had no loans taken out with shareholders except for a corporate
credit line of EUR 740 million, which was not drawn down at 31 December 2023, in which Banco
Santander, S.A.'s share was EUR 100 million (see Note 14).
At 31 December 2023, the Group had bank balances deposited with Banco Santander, S.A.
amounting to EUR 130,728 thousand (which included the accounts on behalf of the associate Edged
Spain, S.L.U. for EUR 469 thousand).
In 2023, the finance costs incurred in transactions with Santander, S.A. amounted to EUR 382
thousand, which included EUR 61 thousand in guarantee fees and EUR 18 thousand in current
account management costs.
The Group has guarantee lines granted to MERLIN Properties SOCIMI, S.A. by the shareholder
Banco Santander, S.A. for EUR 3,069 thousand .
The income of EUR 2,559 thousand corresponds to ordinary remuneration from current accounts held
by MERLIN Properties SOCIMI, S.A. at Banco Santander.
b)Leases and services rendered
In 2023 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 4 years, and in 2023
they generated income of EUR 825 thousand (EUR 752 thousand in 2022) 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 391 thousand (EUR 392
thousand in 2022).
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 80 thousand.
c)\u00a0 Asset sale transactions
On 28 June 2023, the Group sold a logistics warehouse in Zaragoza to Santander Lease S.A. EFC, a
company of the Banco Santander Group, for EUR 8,600 thousand, generating a consolidated profit of
EUR 409 thousand.
Transactions with companies accounted for using the equity method
d)Paseo Comercial Carlos III S.A.
At 31 December 2023, the Parent, together with the other shareholder of the associate and as a
condition of bank financing, had a loan of EUR 2,619 thousand in force, including EUR 80 thousand of
accrued interest (EUR 51 thousand in 2022), granted on 27 July 2020 to the associate Paseo
Comercial Carlos III, S.A. Which manages a shopping centre in Madrid.
e)Provitae Centros Asistenciales, S.L.
At 31 December 2023, the Parent had an existing loan amounting to EUR 1,198 thousand (EUR 1,131
thousand at 31 December 2022), which included EUR 182 thousand of accrued interest (EUR 144
thousand in 2022), granted on 10 January 2002 to the associate Provitae Centro Asistenciales, S.L.
with a land holding in Villajoyosa.
f)Silicius Real Estate SOCIMI, S.A.
The Parent had outstanding obligations to pay amounting to EUR 2,250 thousand, recorded as \"Other
current and non-current financial liabilities\".
Dividends and other profits distributed to related parties (thousands of euros)
Thousands of euros
2023
2022
Significant shareholders
50,290
136,701
Banco Santander, S.A.
50,290
136,701
Directors and managers
3,002
8,245
Directors
1,806
4,806
Executives
1,196
3,439
53,292
144,946
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-634": { "value": "
20.\u00a0 \u00a0 Information on Directors
The Parent's directors and the parties related thereto did not have any conflicts of interest that had to
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 2023 and 2022, salaries, per diem attendance fees and any other type of
compensation paid to members of the Parent's managing bodies totalled EUR 6,239 thousand and
EUR 7,917 thousand, as detailed below:
Thousands of euros
2023
2022
Fixed and variable remuneration
6,010
7,673
Statutory compensation
-
-
Termination benefits
-
-
Per diems
218
234
Life and health insurance
11
10
6,239
7,917
In relation to the above amounts, the executive directors have received payments totalling EUR\u00a0 3,618
thousand corresponding to the variable remuneration for 2022, the deferred variable remuneration for
2021 and the extraordinary incentive for 2022. At 31 December 2023, unpaid accrued amounts are
maintained, associated with the variable remuneration for 2021 to 2023 for the amount of EUR 4,447
thousand, of which EUR 1,886 thousand are recognised under \"Non-current provisions\" and EUR
2,561 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 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 9,058 thousand at 31 December 2023.
The breakdown, by board member, of the amounts disclosed above is as follows:
Thousands of euros
2023
2022
Director:
Remuneration of board members
Javier Garc\u00eda Carranza Benjumea
Chairman - Proprietary director
-
-
Ismael Clemente Orrego
CEO
2,686
3,507
Miguel Ollero Barrera
Executive director
1,843
2,679
Mar\u00eda Luisa Jord\u00e1 Castro
Independent director
187
189
Ana Garc\u00eda Fau
Independent director
207
207
George Donald Johnston
Independent director
187
172
Fernando Ortiz Vaamonde
Independent director
142
142
Juan Mar\u00eda Aguirre Gonzalo
Independent director
177
182
Pilar Cavero Mestre
Independent director
152
152
Francisca Ortega Hern\u00e1ndez Agero
Proprietary director
167
169
Emilio Novela Berl\u00edn
Independent director
185
187
Mar\u00eda Ana Forner Beltr\u00e1n
Proprietary director
78
177
Ignacio Gil-Casares Satr\u00fastegui
Proprietary director
142
144
Juan Antonio Alcaraz Garc\u00eda
Proprietary director
75
-
6,228
7,907
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 320 thousand (EUR 400 thousand in 2022).
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 2023 and 2022, is
summarised as follows:
2023
Thousands of euros
Number of persons
Fixed and variable
remuneration
Other
remuneration
Total
9
5,800
32
5,832
2022
Thousands of euros
Number of persons
Fixed and variable
remuneration
Other
remuneration
Total
9
7,324
31
7,355
In relation to the above amounts, Senior Management received payments totalling EUR 4,516
thousand corresponding to the variable remuneration for 2022, the deferred variable remuneration for
2021 and the extraordinary incentive for 2022. At 31 December\u00a0 2023, unpaid accrued amounts are
maintained, associated with the variable remuneration for 2021 to 2023 for the amount of EUR 6,361
thousand, of which EUR 2,624 thousand are recognised under \"Non-current provisions\" and EUR
3,737 thousand 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 the first half of
2022, Senior Management received 444,950 shares corresponding to the second 50% of the amount
of the incentive referenced to the EPRA NAV, with the 2017-2019 Incentive Plan settled.
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's shares, if certain
objectives are fulfilled.
In this regard, as of 31 December 2022, the Group 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 Parent 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 Parent 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:
Metrics
Definition
Weighting
Absolute TSR
Relative TSR
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.
50%
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.
35%
Net carbon issues
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).
10%
Environment and Company
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.
5%
In 2023, the Company recognised the expense in the amount of EUR 2,804 thousand (EUR 2,804
thousand in 2022), corresponding to the vested portion of the 2022-2024 Incentive Plan, with a
balancing entry under reserves.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-635": { "value": "
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 320 thousand (EUR 400 thousand in 2022).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInsuranceContractsExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-636": { "value": "
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:
Thousands of euros
2023
2022
Audit services
680
658
Other audit-related services:
Other attest services
147
141
Total audit and related services
827
799
Services required by applicable law
Tax advisory services
-
-
Other services
-
-
Total other services
-
-
Total
827
799
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.
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": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-637": { "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.
First, the Parent of the Group, in 2021, formed a Sustainability and Innovation Committee under the
Board whose main functions are to advise the Board, among other aspects, on environmental and
sustainability issues, and 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 2023 the Group certified or obtained the renewal of 36 assets. The
Group considers the certification process of its assets as an early response to the demands that the
market will place on property lessors in the medium term and which will enable it to maintain its
current competitive position.
Additionally, the Group obtained a 83% rating in the 2023 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 2023,
91 buildings composing a surface area of 1,232,053 m2 were certified, 3 more buildings than in 2022.
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, 88 buildings are certified
composing a surface area of 1,232,053 m2, 3 more than in 2022. The assets included in this system
aim to reduce total energy consumption, measured in kilowatt hours for the square metres occupied,
by 8% in 2026 compared with by 8% compared to 2022, based on the implementation of MAEs
(energy saving measures).
In 2023, the Group continued to perform an analysis of the entire portfolio to determine the carbon
footprint of each of its assets, and the additional measures necessary to reduce the above carbon
footprint. The Group\u2019s progress over the last few years has enabled the Company to meet its
emissions reduction objective and its \u201cPathway to Net Zero\u201d for 2030, thus getting a head start on the
European strategy for decarbonisation 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 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.
The Group's financing policies are also aligned with the Group's sustainability objectives through the
Green Financing Programme published in April 2022 and the conversion of 100% of its bonds in
circulation into green bonds.
Currently, 98.2% of the Group's debt with credit and bond institutions is linked to the Green Financing
Programme or ESG criteria (see Note 14).
The Green Financing Programme, 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
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, while increasing the Group's operating costs, are aimed at anticipating
regulatory developments and building customer loyalty.
It has also committed to report in the Statement of Non-Financial Information (SNFI) in accordance
with TCFD recommendations 1.
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. In\u00a0
2022, the decarbonisation targets included in its \"Road to Net Zero\" were validated and approved by
the SBTi initiative.", "dimensions": { "concept": "mer:DisclosureOfEnvironmentRelatedInformationTextBlock", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-638": { "value": "
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:
\u2022 Assessing 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
\u2022 Taking 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 2023, the average occupancy rate of the asset
portfolio was 96.2%, 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 2023 are as follows.
2023
Thousands of euros
Less than 3
months
More than 3
and less than
o 6 months
6 months to
1 year
Over 1 year
(*)
Total
Loans to third parties
-
-
236
133,410
133,646
Equity instruments
-
-
-
9,915
9,915
Investments in associates
-
-
3,148
-
3,148
Guarantees and deposits
-
-
-
55,355
55,355
Trade and other receivables
28,169
25,039
9,390
-
62,598
Other current financial assets
1,606
-
-
-
1,606
Cash and cash equivalents
461,223
-
-
-
461,223
Total
490,998
25,039
12,774
198,680
727,491
(*) derivatives are not included
2022
Thousands of euros
Less than 3
months
More than 3
and less than
o 6 months
6 months to
1 year
Over 1 year
(*)
Total
Loans to third parties
-
-
236
129,498
129,734
Equity instruments
-
-
-
9,191
9,191
Investments in associates
-
-
2,498
-
2,498
Guarantees and deposits
-
-
-
53,477
53,477
Trade and other receivables
22,428
19,936
7,476
49,840
Other current financial assets
226
-
-
-
226
Cash and cash equivalents
429,449
-
-
-
429,449
Total
452,103
19,936
10,210
192,166
674,415
(*) derivatives are not included
Cash and cash equivalents
The Group has cash and cash equivalents of EUR 461,223 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. At 31 December
2023, the Group's working capital amounted to EUR 385,294 thousand
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 2024.
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 2023 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:
2023
Thousands of euros
Less than 1
month
1 to 3
months
3 months to 1
year
Over 1
year
Total
Bank borrowings
395
-
1,234
1,224,615
1,226,244
Other non-current liabilities and guarantees
-
-
-
84,190
84,190
Trade and other payables (excluding payables to
public authorities)
30,735
70,360
31,521
-
132,616
Total
31,130
70,360
32,755
1,308,805
1,443,050
2022
Thousands of euros
Less than 1
month
1 to 3
months
3 months to 1
year
Over 1
year
Total
Bank borrowings
421
-
1,309
194,257
195,987
Other non-current liabilities and guarantees
-
-
-
86,407
86,407
Trade and other payables (excluding payables to
public authorities)
26,538
66,052
27,216
-
119,806
Total
26,959
66,052
28,525
280,664
402,200
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 2023, the percentage of debt the interest rate of which is covered by the above
financial instruments was 99.7%. 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 2023, 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 2023.
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 whose main functions are to advise the Board, among other aspects, on environmental and
sustainability issues, and 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 2023 the Group certified or obtained the renewal of 36 assets. The
Group considers the certification process of its assets as an early response to the demands that the
market will place on property lessors in the medium term and which will enable it to maintain its
current competitive position.
Additionally, the Group obtained a 83% rating in the 2023 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 2023,
91 buildings composing a surface area of 1,232,053 m2 were certified, 3 more buildings than in 2022.
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, 88 buildings are certified
composing a surface area of 1,232,053 m2, 3 more than in 2022. The assets included in this system
aim to reduce total energy consumption, measured in kilowatt hours for the square metres occupied,
by 8% in 2026 compared with by 8% compared to 2022, based on the implementation of MAEs
(energy saving measures).
In 2023, the Group continued to perform an analysis of the entire portfolio to determine the carbon
footprint of each of its assets, and the additional measures necessary to reduce the above carbon
footprint. The Group\u2019s progress over the last few years has enabled the Company to meet its
emissions reduction objective and its \u201cPathway to Net Zero\u201d for 2030, thus getting a head start on the
European strategy for decarbonisation 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 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.
The Group's financing policies are also aligned with the Group's sustainability objectives through the
Green Financing Programme published in April 2022 and the conversion of 100% of its bonds in
circulation into green bonds.
Currently, 98.2% of the Group's debt with credit and bond institutions is linked to the Green Financing
Programme or ESG criteria (see Note 14).
The Green Financing Programme, 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
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, while increasing the Group's operating costs, are aimed at anticipating
regulatory developments and building customer loyalty.
It has also committed to report in the Statement of Non-Financial Information (SNFI) in accordance
with TCFD recommendations 1.
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. In\u00a0
2022, the decarbonisation targets included in its \"Road to Net Zero\" were validated and approved by
the SBTi initiative.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-639": { "value": "
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:
\u2022 Assessing 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
\u2022 Taking 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 2023, the average occupancy rate of the asset
portfolio was 96.2%, with a weighted average unexpired lease term of 3.2 years (weighted by GRI).
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-640": { "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 2023, the percentage of debt the interest rate of which is covered by the above
financial instruments was 99.7%. The impact of interest rate fluctuations is explained in Note 14.3.
", "dimensions": { "concept": "mer:CashFlowInterestRateRiskAndFairValueRiskTextBlock", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-641": { "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 2023, the functional currency of all
subsidiaries and associates of the MERLIN Group was the euro.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-642": { "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 whose main functions are to advise the Board, among other aspects, on environmental and
sustainability issues, and 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 2023 the Group certified or obtained the renewal of 36 assets. The
Group considers the certification process of its assets as an early response to the demands that the
market will place on property lessors in the medium term and which will enable it to maintain its
current competitive position.
Additionally, the Group obtained a 83% rating in the 2023 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 2023,
91 buildings composing a surface area of 1,232,053 m2 were certified, 3 more buildings than in 2022.
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, 88 buildings are certified
composing a surface area of 1,232,053 m2, 3 more than in 2022. The assets included in this system
aim to reduce total energy consumption, measured in kilowatt hours for the square metres occupied,
by 8% in 2026 compared with by 8% compared to 2022, based on the implementation of MAEs
(energy saving measures).
In 2023, the Group continued to perform an analysis of the entire portfolio to determine the carbon
footprint of each of its assets, and the additional measures necessary to reduce the above carbon
footprint. The Group\u2019s progress over the last few years has enabled the Company to meet its
emissions reduction objective and its \u201cPathway to Net Zero\u201d for 2030, thus getting a head start on the
European strategy for decarbonisation 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 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.
The Group's financing policies are also aligned with the Group's sustainability objectives through the
Green Financing Programme published in April 2022 and the conversion of 100% of its bonds in
circulation into green bonds.
Currently, 98.2% of the Group's debt with credit and bond institutions is linked to the Green Financing
Programme or ESG criteria (see Note 14).
The Green Financing Programme, 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
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, while increasing the Group's operating costs, are aimed at anticipating
regulatory developments and building customer loyalty.
It has also committed to report in the Statement of Non-Financial Information (SNFI) in accordance
with TCFD recommendations 1.
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. In\u00a0
2022, the decarbonisation targets included in its \"Road to Net Zero\" were validated and approved by
the SBTi initiative.", "dimensions": { "concept": "mer:DisclosureOfClimateChangeManagementTextBlock", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-643": { "value": "
24.\u00a0 \u00a0 Events after the reporting period
In January, the Group signed a \u20ac 150M secured bank loan maturing in 2034 @130 bps margin. The
loan is expected to be drawn in March 2024.
In January, the Group issued a \u20ac 100M tap on the 2.375% note due in September 2029 (3.93% cost).
In relation to the verification and investigation actions that during the year 2022, the Tax Agency
communicated to the Parent Company (Note 17), on February 21, 2024, the following acts in
accordance\u00a0 have been signed:
\u2022 Corporate Income Tax (CIT) for the years 2016 to 2019, by virtue of which an amount of
13,984 thousand euros was determined to be returned to the Parent Company, which includes
tax liability and interest on arrears. This recognizes the effects of the Constitutional Court
ruling of January 19th, 2024, which annuls certain provisions of Royal Decree-Law 3/2016 that
had an impact on the tax base of the CIT for the years 2016 to 2019.
\u2022 Value Added Tax (VAT) for the years 2018 to 2019, by virtue of which an amount of 799
thousand euros was determined to be paid, which includes tax liability and interest on arrears.
\u2022 Withholdings on account of the Income Tax for Non-Residents for the years 2018 to 2019, by
virtue of which an amount of 834 thousand euros was determined to be paid, which includes
tax liability and interest on arrears.
\u2022 Withholdings and payments on account on the Income from Capital for the years 2018 and
2019, by virtue of which no amount was determined to be paid or returned.
The resulting amounts to be paid have been recorded in the fiscal year 2023, under the heading
\"Provisions\" of the attached consolidated income statement (Note 15).
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-645": { "value": "
Appendix I - Group companies and associates 2023
Company
Line of business/Location
Ownership
interest
Thousands of euros
Consolidatio
n method
Auditor
Share
capital
Profit/(Loss)
Other
Total
Dividends
Carrying amount
From
operations
Net
Shareholder
s' Equity
Equity
Received
Cost
Impairmen
t
Merlin Retail, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
24,212
7,231
5,718
378,597
408,527
13,330
390,432
-
Global
Integration
Deloitte
Merlin Oficinas, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
32,797
16,763
16,097
768,987
817,881
22,377
824,488
-
Global
Integration
Deloitte
Merlin Log\u00edstica, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
34,290
32,352
15,841
319,496
369,628
43,842
353,842
-
Global
Integration
Deloitte
Sevisur Log\u00edstica
Urban development, construction and operation
of logistics and common services buildings. Ctra.
de la Esclusa, 15. 41011, Seville.
100%
17,220
4,954
4,285
10,335
31,840
3,906
37,629
-
Global
Integration
Deloitte
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
100%
15,701
1,720
925
105,845
122,471
-
118,310
-
Global
Integration
Deloitte
The Exhibitions Company ,
S.A.U.
Provision of all kinds of technical, commercial or
economic services/ Paseo de la Castellana 257,
Madrid
100%
180
(1,218)
(1,158)
2,044
1,066
-
4,287
(3,221)
Global
Integration
N/A
Gescentesta, S.L.U.
Provision of Services / Paseo de la Castellana
257, Madrid
100%
3
249
250
1,054
1,307
-
3
-
Global
Integration
N/A
La Vital Centro Comercial y de
Ocio, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
14,846
3,742
4,130
19,302
38,278
2,896
56,788
-
Global
Integration
Deloitte
Desarrollo Urbano de Patraix,
S.A.
Land management / Avda. Bar\u00f3n de Carcer, 50,
Valencia
100%
2,790
(2)
(341)
22,186
24,635
-
25,090
(455)
Global
Integration
N/A
Sadorma 2003, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
73
598
1,608
19,016
20,696
-
25,485
(4,788)
Global
Integration
N/A
Global Murex Iberia, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
14
(1)
88
(15,438)
(15,336)
-
-
-
Global
Integration
N/A
Varitelia Distribuciones,
S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
15,443
(10,613)
(19,604)
6,110
1,949
1,150
172,979
(171,031)
Global
Integration
Deloitte
Global Carihuela, Patrimonio
Comercial S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
3,303
15,127
12,766
4,510
20,579
1,371
34,102
(13,524)
Global
Integration
Deloitte
Innovaci\u00f3n Colaborativa, S.L.
Selection, contracting, fitting out, organization
and management of coworking spaces / Paseo de
la Castellana 257, Madrid
100%
15
(2,719)
(3,021)
(1,087)
(4,093)
-
15,868
(15,868)
Global
Integration
N/A
Milos Asset Development,
Acquisition, ownership, administration, disposal
and development of land located within the
\"Distrito Castellana Norte\" project / Paseo de la
Castellana 257, Madrid
100%
3
(3)
(407)
136
(268)
-
3
(2)
Global
Integration
N/A
Slack Tailwind Systems, S.L.U
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
1,014
(14)
(75)
(10)
930
-
1,014
(74)
Global
Integration
Deloitte
Slow Rise Spain, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
7,724
312
33
1
7,757
-
7,724
-
Global
Integration
Deloitte
Merlin Edged, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
3
-
-
-
3
-
3
-
Global
Integration
N/A
MPCVI \u2013 Compra e Venda
Imobili\u00e1ria, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
1,050
1,162
198
5,980
7,228
198
6,418
-
Global
Integration
Deloitte
Portugal
MPEP \u2013 Properties Escrit\u00f3rios
Portugal, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
684
(248)
662
464
-
1,085
-
Global
Integration
Deloitte
Portugal
MP Monumental, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,498
12
25,554
25,616
214
41,570
-
Global
Integration
Deloitte
Portugal
MP Torre A, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
874
(137)
9,498
9,410
404
20,101
-
Global
Integration
Deloitte
Portugal
VFX Log\u00edstica, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5,050
21,837
21,562
19,873
46,486
-
30,182
-
Global
Integration
Deloitte
Portugal
Promosete, Invest. Inmobil.
SA.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
200
1,976
1,221
7,515
8,936
837
10,384
-
Global
Integration
Deloitte
Portugal
Pra\u00e7a Do Marqu\u00eas servi\u00e7os
Auxiliares, SA
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
15,893
3,566
886
61,273
78,052
1,982
56,361
-
Global
Integration
Deloitte
Portugal
Torre Dos Oceanus
Investimentos
Inmobiliarios,S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,018
838
3,319
4,207
827
15,912
-
Global
Integration
Deloitte
Portugal
Forum Almada \u2013 Gest\u00e3o
Centro Comercial Sociedade
Unipessoal, Lda.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5
20,714
9,914
83,801
93,720
-
89,453
-
Global
Integration
Deloitte
Portugal
Forum Almada II, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
10,000
13,374
9,594
75,471
95,065
-
325,660
-
Global
Integration
Deloitte
Portugal
Torre Arts\u00a0 Investimentos
Imobiliarios, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
2,971
2,267
78,153
80,520
2,097
80,281
-
Global
Integration
Deloitte
Portugal
Torre Fernao Magalhaes\u00a0
Investimentos Imobiliarios,
S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
1,537
1,193
25,370
26,663
673
26,055
-
Global
Integration
Deloitte
Portugal
MPLIB \u2013 Investimentos
Imobili\u00e1rios, Unipessoal Lda.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
2,000
(1,079)
(3,562)
54,252
52,690
-
56,808
(4,118)
Global
Integration
Deloitte
Portugal
Paseo Comercial Carlos III,
S.A.
Real estate acquisition and development for
leasing / Avda. San Mart\u00edn Valdeiglesias, 20\u00a0
28922 Madrid
50%
8,698
4,328
491
25,902
35,091
-
25,668
-
Equity
method
Deloitte
Provitae Centros Asistenciales,
S.L.
Real estate acquisition and development for
leasing / C. Fuencarral, 123. Madrid
50%
6,314
(1,340)
(1,417)
(258)
4,639
-
5,061
(2,742)
Equity
method
Deloitte
G36 Development, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 93, Madrid
50%
3
21
21
8
32
-
2
-
Equity
method
N/A
Centro Intermodal de Log\u00edstica
S.A. (CILSA)
Development, management and implementation
of logistics activities in the port system / Avenida
Ports d\u2019Europa 100, Barcelona
48.5%
18,920
26,942
17,443
124,043
160,406
7,880
95,688
-
Equity
method
EY
Pazo de Congresos de Vigo,
S.A.
Execution project, construction and operation of
the Vigo Conference Center / Avda. Garc\u00eda
Barb\u00f3n, I. Vigo
44.44%
n.d\u00a0
n.d\u00a0
n.d.\u00a0
n.d.\u00a0
-
-
3,600
(3,600)
Equity
method
N/A
Parking del Palau, S.A.
Real estate acquisition and development for
leasing / Paseo de la Alameda, s/n. Valencia
33%
1,698
22
24
440
2,162
66
2,137
(1,265)
Equity
method
BDO
Araba Log\u00edstica, S.A.
Real estate acquisition and development for
leasing / Avda. \u00c1lava s/n Rivabellosa (\u00c1lava)
25.14%
1,750
911
391
2,925
5,066
-
2,257
(2,257)
Equity
method
Mazars
Crea Madrid Nuevo Norte,
S.A.
Performing all types of real estate activities /
Paseo de la Castellana 216, Madrid
14.46%
227,535
(5,858)
(3,907)
(34,440)
189,188
-
177,485
(2,216)
Equity
method
KPMG
Moregal Hotels, S.L.
Real estate acquisition and development for
leasing / Alameda de Col\u00f3n , 9, M\u00e1laga
7.32%
5,307
(34)
(26)
1,205
6,486
-
1,585
(2)
Equity
method
n.d
Silicius Real Estate, SOCIMI,
S.A.
Performing all types of real estate activities /
Calle de Vel\u00e1zquez, 123, Madrid
17.8%
31,394
(7,558)
(26,900)
331,139
335,633
1,554
88,572
-
Equity
method
PWC
Edged Spain, S.L.U
Provision of Data Center services / Paseo de la
Castellana 257, Madrid
50%
3
223
223
(224)
2
-
2
-
Equity
method
Deloitte
Appendix I - Group companies and associates 2022
Company
Line of business/Location
Ownership
interest
Thousands of euros
Consolidation
method
Auditor
Share
capital
Profit/(Loss)
Other
Total
Dividends
Carrying amount
From
operations
Net
Shareholders'
Equity
Equity
Received
Cost
Impairme
nt
Merlin Retail, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
17,963
13,998
13,330
236,491
267,784
42,922
251,408
-
Global
Integration
Deloitte
Merlin Oficinas, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
29,674
22,934
22,377
718,601
770,652
16,130
771,345
-
Global
Integration
Deloitte
Merlin Log\u00edstica, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
28,166
29,978
33,842
274,082
336,090
31,544
292,304
-
Global
Integration
Deloitte
Sevisur Log\u00edstica
Urban development, construction and operation of
logistics and common services buildings. Ctra. de la
Esclusa, 15. 41011, Seville.
100%
17,220
4,438
4,249
9,910
31,379
3,455
37,629
-
Global
Integration
Deloitte
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
100%
15,701
(1,253)
(1,172)
107,017
121,546
5,903
118,310
-
Global
Integration
Deloitte
The Exhibitions Company ,
S.A.U.
Provision of all kinds of technical, commercial or
economic services/ Paseo de la Castellana 257,
Madrid
100%
180
(1,452)
(1,430)
3,474
2,224
-
4,287
(2,063)
Global
Integration
N/A
Gescentesta, S.L.U.
Provision of Services / Paseo de la Castellana 257,
Madrid
100%
3
177
121
933
1,057
-
3
-
Global
Integration
N/A
Metroparque, S.A.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
56,194
8,477
8,808
33,086
98,088
8,186
231,557
-
Global
Integration
Deloitte
La Vital Centro Comercial y
de Ocio, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
14,846
3,152
3,218
18,980
37,044
2,245
56,788
-
Global
Integration
Deloitte
Desarrollo Urbano de Patraix,
S.A.
Land management / Avda. Bar\u00f3n de Carcer, 50,
Valencia
100%
2,790
(3)
(83)
22,270
24,977
-
25,090
(114)
Global
Integration
N/A
Sadorma 2003, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
73
(2)
231
18,785
19,089
-
25,485
(6,396)
Global
Integration
N/A
Global Murex Iberia, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
14
\u2014
21
(15,459)
(15,424)
-
-
-
Global
Integration
N/A
Varitelia Distribuciones,
S.L.U.
Real estate acquisition and development for leasing /\u00a0
Paseo de la Castellana 257, Madrid
100%
15,443
3,344
1,150
6,110
22,703
333
172,979
(150,277)
Global
Integration
Deloitte
Global Carihuela, Patrimonio
Comercial S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3,303
2,123
1,578
4,358
9,239
-
34,102
(24,863)
Global
Integration
Deloitte
Innovaci\u00f3n Colaborativa, S.L.
Selection, contracting, fitting out, organization and
management of coworking spaces / Paseo de la
Castellana 257, Madrid
100%
15
(3,049)
(3,092)
2,005
(1,072)
-
15,868
(15,868)
Global
Integration
N/A
Milos Asset Development,
Acquisition, ownership, administration, disposal and
development of land located within the \"Distrito
Castellana Norte\" project / Paseo de la Castellana
100%
3
-
(114)
250
139
-
3
-
Global
Integration
N/A
Slack Tailwind Systems,
S.L.U
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3
(10)
(10)
-
(7)
-
3
(3)
Global
Integration
Deloitte
Slow Rise Spain, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3
82
82
-
85
-
3
-
Global
Integration
Deloitte
MPCVI \u2013 Compra e Venda
Imobili\u00e1ria, S.A.
Real estate acquisition and development for leasing /
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
1,050
1,095
208
5,969
7,227
277
6,418
-
Global
Integration
Deloitte
Portugal
MPEP \u2013 Properties
Escrit\u00f3rios Portugal, S.A.
Real estate acquisition and development for leasing /
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
50
677
(241)
903
712
-
1,085
-
Global
Integration
Deloitte
Portugal
MP Monumental, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,502
214
6,632
6,896
-
22,648
-
Global
Integration
Deloitte
Portugal
MP Torre A, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
1,538
414
73
537
-
10,686
-
Global
Integration
Deloitte
Portugal
VFX Log\u00edstica, S.A.
Real estate acquisition and development for leasing.
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
5,050
6,406
5,614
11,060
21,724
-
25,153
(2,417)
Global
Integration
Deloitte
Portugal
Promosete, Invest. Inmobil.
SA.
Real estate acquisition and development for leasing.\u00a0
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
200
1,554
837
7,385
8,422
1,323
10,384
-
Global
Integration
Deloitte
Portugal
Pra\u00e7a Do Marqu\u00eas servi\u00e7os
Auxiliares, SA
Real estate acquisition and development for leasing.\u00a0
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
15,893
3,178
2,086
61,169
79,148
2,008
56,361
-
Global
Integration
Deloitte
Portugal
Torre Dos Oceanus
Investimentos
Inmobiliarios,S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
1,933
827
3,319
4,196
593
15,912
-
Global
Integration
Deloitte
Portugal
Forum Almada \u2013 Gest\u00e3o
Centro Comercial Sociedade
Unipessoal, Lda.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5
16,556
10,013
16,908
26,926
-
32,573
-
Global
Integration
Deloitte
Portugal
Forum Almada II, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
10,000
13,028
9,153
66,132
85,285
-
325,660
-
Global
Integration
Deloitte
Portugal
Torre Arts\u00a0 Investimentos
Imobiliarios, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
2,755
2,097
78,153
80,350
2,177
80,281
-
Global
Integration
Deloitte
Portugal
Torre Fernao Magalhaes\u00a0
Investimentos Imobiliarios,
S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
869
673
25,370
26,143
995
26,055
-
Global
Integration
Deloitte
Portugal
Generous Profile , Unipessoal
LDA.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
2,000
(27)
(547)
54,799
56,252
-
56,808
(556)
Global
Integration
Deloitte
Portugal
Paseo Comercial Carlos III,
S.A.
Real estate acquisition and development for leasing /
Avda. San Mart\u00edn Valdeiglesias, 20\u00a0 28922 Madrid
50%
8,698
2,864
3,978
21,915
34,591
-
25,668
-
Equity method
Deloitte
Provitae Centros
Asistenciales, S.L.
Real estate acquisition and development for leasing /
C. Fuencarral, 123. Madrid
50%
6,314
944
944
(1,202)
6,056
-
5,061
(1,746)
Equity method
Deloitte
G36 Development, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana, 93 Madrid
50%
3
21
21
8
32
1,040
2
-
Equity method
N/A
Centro Intermodal de
Log\u00edstica S.A. (CILSA)
Development, management and implementation of
logistics activities in the port system / Avenida Ports
d\u2019Europa 100, Barcelona
49%
18,920
25,289
17,079
123,701
159,700
2,556
95,688
-
Equity method
EY
Pazo de Congresos de Vigo,
S.A.
Execution project, construction and operation of the
Vigo Conference Center / Avda. Garc\u00eda Barb\u00f3n, I.
Vigo
44%
n.d
n.d
n.d.
n.d.
-
-
3,600
(3,600)
Equity method
n.d
Parking del Palau, S.A.
Real estate acquisition and development for leasing /
Paseo de la Alameda, s/n. Valencia
33%
1,698
42
40
459
2,197
-
2,137
(1,052)
Equity method
BDO
Araba Log\u00edstica, S.A.
Real estate acquisition and development for leasing /
Avda. \u00c1lava s/n Rivabellosa (\u00c1lava)
25%
1,750
911
391
2,925
5,066
-
2,257
(2,257)
Equity method
Mazars
Crea Madrid Nuevo Norte,
S.A.
Performing all types of real estate activities / Paseo
de la Castellana 216, Madrid
14%
206,509
(6,081)
(4,058)
(36,574)
165,877
-
174,445
(1,651)
Equity method
KPMG
Silicius Real Estate, SOCIMI,
S.A.
Performing all types of real estate activities / Calle
de Vel\u00e1zquez, 123, Madrid
18%
30,955
13,299
15,017
341,871
387,843
307
87,018
-
Equity method
PWC
Edged Spain, S.L.U
Provision of Data Center services / Paseo de la
Castellana 257, Madrid
50%
3
96
88
(211)
(120)
-
2
(2)
Equity method
Deloitte
Equity
method
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "f-644": { "value": "
Appendix I - Group companies and associates 2023
Company
Line of business/Location
Ownership
interest
Thousands of euros
Consolidatio
n method
Auditor
Share
capital
Profit/(Loss)
Other
Total
Dividends
Carrying amount
From
operations
Net
Shareholder
s' Equity
Equity
Received
Cost
Impairmen
t
Merlin Retail, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
24,212
7,231
5,718
378,597
408,527
13,330
390,432
-
Global
Integration
Deloitte
Merlin Oficinas, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
32,797
16,763
16,097
768,987
817,881
22,377
824,488
-
Global
Integration
Deloitte
Merlin Log\u00edstica, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
34,290
32,352
15,841
319,496
369,628
43,842
353,842
-
Global
Integration
Deloitte
Sevisur Log\u00edstica
Urban development, construction and operation
of logistics and common services buildings. Ctra.
de la Esclusa, 15. 41011, Seville.
100%
17,220
4,954
4,285
10,335
31,840
3,906
37,629
-
Global
Integration
Deloitte
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
100%
15,701
1,720
925
105,845
122,471
-
118,310
-
Global
Integration
Deloitte
The Exhibitions Company ,
S.A.U.
Provision of all kinds of technical, commercial or
economic services/ Paseo de la Castellana 257,
Madrid
100%
180
(1,218)
(1,158)
2,044
1,066
-
4,287
(3,221)
Global
Integration
N/A
Gescentesta, S.L.U.
Provision of Services / Paseo de la Castellana
257, Madrid
100%
3
249
250
1,054
1,307
-
3
-
Global
Integration
N/A
La Vital Centro Comercial y de
Ocio, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
14,846
3,742
4,130
19,302
38,278
2,896
56,788
-
Global
Integration
Deloitte
Desarrollo Urbano de Patraix,
S.A.
Land management / Avda. Bar\u00f3n de Carcer, 50,
Valencia
100%
2,790
(2)
(341)
22,186
24,635
-
25,090
(455)
Global
Integration
N/A
Sadorma 2003, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
73
598
1,608
19,016
20,696
-
25,485
(4,788)
Global
Integration
N/A
Global Murex Iberia, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
14
(1)
88
(15,438)
(15,336)
-
-
-
Global
Integration
N/A
Varitelia Distribuciones,
S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
15,443
(10,613)
(19,604)
6,110
1,949
1,150
172,979
(171,031)
Global
Integration
Deloitte
Global Carihuela, Patrimonio
Comercial S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
3,303
15,127
12,766
4,510
20,579
1,371
34,102
(13,524)
Global
Integration
Deloitte
Innovaci\u00f3n Colaborativa, S.L.
Selection, contracting, fitting out, organization
and management of coworking spaces / Paseo de
la Castellana 257, Madrid
100%
15
(2,719)
(3,021)
(1,087)
(4,093)
-
15,868
(15,868)
Global
Integration
N/A
Milos Asset Development,
Acquisition, ownership, administration, disposal
and development of land located within the
\"Distrito Castellana Norte\" project / Paseo de la
Castellana 257, Madrid
100%
3
(3)
(407)
136
(268)
-
3
(2)
Global
Integration
N/A
Slack Tailwind Systems, S.L.U
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
1,014
(14)
(75)
(10)
930
-
1,014
(74)
Global
Integration
Deloitte
Slow Rise Spain, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
7,724
312
33
1
7,757
-
7,724
-
Global
Integration
Deloitte
Merlin Edged, S.L.U.
Real estate acquisition and development for
leasing / Paseo de la Castellana 257, Madrid
100%
3
-
-
-
3
-
3
-
Global
Integration
N/A
MPCVI \u2013 Compra e Venda
Imobili\u00e1ria, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
1,050
1,162
198
5,980
7,228
198
6,418
-
Global
Integration
Deloitte
Portugal
MPEP \u2013 Properties Escrit\u00f3rios
Portugal, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
684
(248)
662
464
-
1,085
-
Global
Integration
Deloitte
Portugal
MP Monumental, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,498
12
25,554
25,616
214
41,570
-
Global
Integration
Deloitte
Portugal
MP Torre A, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
874
(137)
9,498
9,410
404
20,101
-
Global
Integration
Deloitte
Portugal
VFX Log\u00edstica, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5,050
21,837
21,562
19,873
46,486
-
30,182
-
Global
Integration
Deloitte
Portugal
Promosete, Invest. Inmobil.
SA.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
200
1,976
1,221
7,515
8,936
837
10,384
-
Global
Integration
Deloitte
Portugal
Pra\u00e7a Do Marqu\u00eas servi\u00e7os
Auxiliares, SA
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
15,893
3,566
886
61,273
78,052
1,982
56,361
-
Global
Integration
Deloitte
Portugal
Torre Dos Oceanus
Investimentos
Inmobiliarios,S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,018
838
3,319
4,207
827
15,912
-
Global
Integration
Deloitte
Portugal
Forum Almada \u2013 Gest\u00e3o
Centro Comercial Sociedade
Unipessoal, Lda.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5
20,714
9,914
83,801
93,720
-
89,453
-
Global
Integration
Deloitte
Portugal
Forum Almada II, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
10,000
13,374
9,594
75,471
95,065
-
325,660
-
Global
Integration
Deloitte
Portugal
Torre Arts\u00a0 Investimentos
Imobiliarios, S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
2,971
2,267
78,153
80,520
2,097
80,281
-
Global
Integration
Deloitte
Portugal
Torre Fernao Magalhaes\u00a0
Investimentos Imobiliarios,
S.A.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
1,537
1,193
25,370
26,663
673
26,055
-
Global
Integration
Deloitte
Portugal
MPLIB \u2013 Investimentos
Imobili\u00e1rios, Unipessoal Lda.
Real estate acquisition and development for
leasing /Avda. Dom Jo\u00e3o, 45, Lisbon
100%
2,000
(1,079)
(3,562)
54,252
52,690
-
56,808
(4,118)
Global
Integration
Deloitte
Portugal
Paseo Comercial Carlos III,
S.A.
Real estate acquisition and development for
leasing / Avda. San Mart\u00edn Valdeiglesias, 20\u00a0
28922 Madrid
50%
8,698
4,328
491
25,902
35,091
-
25,668
-
Equity
method
Deloitte
Provitae Centros Asistenciales,
S.L.
Real estate acquisition and development for
leasing / C. Fuencarral, 123. Madrid
50%
6,314
(1,340)
(1,417)
(258)
4,639
-
5,061
(2,742)
Equity
method
Deloitte
G36 Development, S.L.
Real estate acquisition and development for
leasing / Paseo de la Castellana 93, Madrid
50%
3
21
21
8
32
-
2
-
Equity
method
N/A
Centro Intermodal de Log\u00edstica
S.A. (CILSA)
Development, management and implementation
of logistics activities in the port system / Avenida
Ports d\u2019Europa 100, Barcelona
48.5%
18,920
26,942
17,443
124,043
160,406
7,880
95,688
-
Equity
method
EY
Pazo de Congresos de Vigo,
S.A.
Execution project, construction and operation of
the Vigo Conference Center / Avda. Garc\u00eda
Barb\u00f3n, I. Vigo
44.44%
n.d\u00a0
n.d\u00a0
n.d.\u00a0
n.d.\u00a0
-
-
3,600
(3,600)
Equity
method
N/A
Parking del Palau, S.A.
Real estate acquisition and development for
leasing / Paseo de la Alameda, s/n. Valencia
33%
1,698
22
24
440
2,162
66
2,137
(1,265)
Equity
method
BDO
Araba Log\u00edstica, S.A.
Real estate acquisition and development for
leasing / Avda. \u00c1lava s/n Rivabellosa (\u00c1lava)
25.14%
1,750
911
391
2,925
5,066
-
2,257
(2,257)
Equity
method
Mazars
Crea Madrid Nuevo Norte,
S.A.
Performing all types of real estate activities /
Paseo de la Castellana 216, Madrid
14.46%
227,535
(5,858)
(3,907)
(34,440)
189,188
-
177,485
(2,216)
Equity
method
KPMG
Moregal Hotels, S.L.
Real estate acquisition and development for
leasing / Alameda de Col\u00f3n , 9, M\u00e1laga
7.32%
5,307
(34)
(26)
1,205
6,486
-
1,585
(2)
Equity
method
n.d
Silicius Real Estate, SOCIMI,
S.A.
Performing all types of real estate activities /
Calle de Vel\u00e1zquez, 123, Madrid
17.8%
31,394
(7,558)
(26,900)
331,139
335,633
1,554
88,572
-
Equity
method
PWC
Edged Spain, S.L.U
Provision of Data Center services / Paseo de la
Castellana 257, Madrid
50%
3
223
223
(224)
2
-
2
-
Equity
method
Deloitte
Appendix I - Group companies and associates 2022
Company
Line of business/Location
Ownership
interest
Thousands of euros
Consolidation
method
Auditor
Share
capital
Profit/(Loss)
Other
Total
Dividends
Carrying amount
From
operations
Net
Shareholders'
Equity
Equity
Received
Cost
Impairme
nt
Merlin Retail, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
17,963
13,998
13,330
236,491
267,784
42,922
251,408
-
Global
Integration
Deloitte
Merlin Oficinas, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
29,674
22,934
22,377
718,601
770,652
16,130
771,345
-
Global
Integration
Deloitte
Merlin Log\u00edstica, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
28,166
29,978
33,842
274,082
336,090
31,544
292,304
-
Global
Integration
Deloitte
Sevisur Log\u00edstica
Urban development, construction and operation of
logistics and common services buildings. Ctra. de la
Esclusa, 15. 41011, Seville.
100%
17,220
4,438
4,249
9,910
31,379
3,455
37,629
-
Global
Integration
Deloitte
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
100%
15,701
(1,253)
(1,172)
107,017
121,546
5,903
118,310
-
Global
Integration
Deloitte
The Exhibitions Company ,
S.A.U.
Provision of all kinds of technical, commercial or
economic services/ Paseo de la Castellana 257,
Madrid
100%
180
(1,452)
(1,430)
3,474
2,224
-
4,287
(2,063)
Global
Integration
N/A
Gescentesta, S.L.U.
Provision of Services / Paseo de la Castellana 257,
Madrid
100%
3
177
121
933
1,057
-
3
-
Global
Integration
N/A
Metroparque, S.A.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
56,194
8,477
8,808
33,086
98,088
8,186
231,557
-
Global
Integration
Deloitte
La Vital Centro Comercial y
de Ocio, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
14,846
3,152
3,218
18,980
37,044
2,245
56,788
-
Global
Integration
Deloitte
Desarrollo Urbano de Patraix,
S.A.
Land management / Avda. Bar\u00f3n de Carcer, 50,
Valencia
100%
2,790
(3)
(83)
22,270
24,977
-
25,090
(114)
Global
Integration
N/A
Sadorma 2003, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
73
(2)
231
18,785
19,089
-
25,485
(6,396)
Global
Integration
N/A
Global Murex Iberia, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
14
\u2014
21
(15,459)
(15,424)
-
-
-
Global
Integration
N/A
Varitelia Distribuciones,
S.L.U.
Real estate acquisition and development for leasing /\u00a0
Paseo de la Castellana 257, Madrid
100%
15,443
3,344
1,150
6,110
22,703
333
172,979
(150,277)
Global
Integration
Deloitte
Global Carihuela, Patrimonio
Comercial S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3,303
2,123
1,578
4,358
9,239
-
34,102
(24,863)
Global
Integration
Deloitte
Innovaci\u00f3n Colaborativa, S.L.
Selection, contracting, fitting out, organization and
management of coworking spaces / Paseo de la
Castellana 257, Madrid
100%
15
(3,049)
(3,092)
2,005
(1,072)
-
15,868
(15,868)
Global
Integration
N/A
Milos Asset Development,
Acquisition, ownership, administration, disposal and
development of land located within the \"Distrito
Castellana Norte\" project / Paseo de la Castellana
100%
3
-
(114)
250
139
-
3
-
Global
Integration
N/A
Slack Tailwind Systems,
S.L.U
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3
(10)
(10)
-
(7)
-
3
(3)
Global
Integration
Deloitte
Slow Rise Spain, S.L.U.
Real estate acquisition and development for leasing /
Paseo de la Castellana 257, Madrid
100%
3
82
82
-
85
-
3
-
Global
Integration
Deloitte
MPCVI \u2013 Compra e Venda
Imobili\u00e1ria, S.A.
Real estate acquisition and development for leasing /
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
1,050
1,095
208
5,969
7,227
277
6,418
-
Global
Integration
Deloitte
Portugal
MPEP \u2013 Properties
Escrit\u00f3rios Portugal, S.A.
Real estate acquisition and development for leasing /
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
50
677
(241)
903
712
-
1,085
-
Global
Integration
Deloitte
Portugal
MP Monumental, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
2,502
214
6,632
6,896
-
22,648
-
Global
Integration
Deloitte
Portugal
MP Torre A, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
1,538
414
73
537
-
10,686
-
Global
Integration
Deloitte
Portugal
VFX Log\u00edstica, S.A.
Real estate acquisition and development for leasing.
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
5,050
6,406
5,614
11,060
21,724
-
25,153
(2,417)
Global
Integration
Deloitte
Portugal
Promosete, Invest. Inmobil.
SA.
Real estate acquisition and development for leasing.\u00a0
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
200
1,554
837
7,385
8,422
1,323
10,384
-
Global
Integration
Deloitte
Portugal
Pra\u00e7a Do Marqu\u00eas servi\u00e7os
Auxiliares, SA
Real estate acquisition and development for leasing.\u00a0
Av. Fontes Pereira de Melo, N\u00ba 51, Lisbon
100%
15,893
3,178
2,086
61,169
79,148
2,008
56,361
-
Global
Integration
Deloitte
Portugal
Torre Dos Oceanus
Investimentos
Inmobiliarios,S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
50
1,933
827
3,319
4,196
593
15,912
-
Global
Integration
Deloitte
Portugal
Forum Almada \u2013 Gest\u00e3o
Centro Comercial Sociedade
Unipessoal, Lda.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
5
16,556
10,013
16,908
26,926
-
32,573
-
Global
Integration
Deloitte
Portugal
Forum Almada II, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
10,000
13,028
9,153
66,132
85,285
-
325,660
-
Global
Integration
Deloitte
Portugal
Torre Arts\u00a0 Investimentos
Imobiliarios, S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
2,755
2,097
78,153
80,350
2,177
80,281
-
Global
Integration
Deloitte
Portugal
Torre Fernao Magalhaes\u00a0
Investimentos Imobiliarios,
S.A.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
100
869
673
25,370
26,143
995
26,055
-
Global
Integration
Deloitte
Portugal
Generous Profile , Unipessoal
LDA.
Real estate acquisition and development for leasing /
Avda. Dom Jo\u00e3o, 45, Lisbon
100%
2,000
(27)
(547)
54,799
56,252
-
56,808
(556)
Global
Integration
Deloitte
Portugal
Paseo Comercial Carlos III,
S.A.
Real estate acquisition and development for leasing /
Avda. San Mart\u00edn Valdeiglesias, 20\u00a0 28922 Madrid
50%
8,698
2,864
3,978
21,915
34,591
-
25,668
-
Equity method
Deloitte
Provitae Centros
Asistenciales, S.L.
Real estate acquisition and development for leasing /
C. Fuencarral, 123. Madrid
50%
6,314
944
944
(1,202)
6,056
-
5,061
(1,746)
Equity method
Deloitte
G36 Development, S.L.
Real estate acquisition and development for leasing /
Paseo de la Castellana, 93 Madrid
50%
3
21
21
8
32
1,040
2
-
Equity method
N/A
Centro Intermodal de
Log\u00edstica S.A. (CILSA)
Development, management and implementation of
logistics activities in the port system / Avenida Ports
d\u2019Europa 100, Barcelona
49%
18,920
25,289
17,079
123,701
159,700
2,556
95,688
-
Equity method
EY
Pazo de Congresos de Vigo,
S.A.
Execution project, construction and operation of the
Vigo Conference Center / Avda. Garc\u00eda Barb\u00f3n, I.
Vigo
44%
n.d
n.d
n.d.
n.d.
-
-
3,600
(3,600)
Equity method
n.d
Parking del Palau, S.A.
Real estate acquisition and development for leasing /
Paseo de la Alameda, s/n. Valencia
33%
1,698
42
40
459
2,197
-
2,137
(1,052)
Equity method
BDO
Araba Log\u00edstica, S.A.
Real estate acquisition and development for leasing /
Avda. \u00c1lava s/n Rivabellosa (\u00c1lava)
25%
1,750
911
391
2,925
5,066
-
2,257
(2,257)
Equity method
Mazars
Crea Madrid Nuevo Norte,
S.A.
Performing all types of real estate activities / Paseo
de la Castellana 216, Madrid
14%
206,509
(6,081)
(4,058)
(36,574)
165,877
-
174,445
(1,651)
Equity method
KPMG
Silicius Real Estate, SOCIMI,
S.A.
Performing all types of real estate activities / Calle
de Vel\u00e1zquez, 123, Madrid
18%
30,955
13,299
15,017
341,871
387,843
307
87,018
-
Equity method
PWC
Edged Spain, S.L.U
Provision of Data Center services / Paseo de la
Castellana 257, Madrid
50%
3
96
88
(211)
(120)
-
2
(2)
Equity method
Deloitte
Equity
method
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:959800L8KD863DP30X04", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } } } }