9M 2016 results

Strong growth & Capital appreciation

Hotel Sandos San Blas, Tenerife

LEGAL DISCLAIMER

2

This presentation has been prepared by Hispania Activos Inmobiliarios SOCIMI, S.A. (the “Company”) for informational use only.

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The information contained in this document is subject to change without notice. Neither the Company nor any of affiliates, advisors or agents makes any representation or

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approval, unless the Company´s Board proposes to keep and actively manage all or some of the Company´s portfolio on a permanent basis, in which case, the favorable vote of

the relevant majority of shareholders will be required

HIGHLIGHTS (I)

3

STRONG GROWTH IN RENTS AND CAPITAL APPRECIATION

Source: Hispania

Note:

1 Calculated based on LTM adjusted EPRA NAV by the capital increase closed in June 2016

+119%vs. 9M 2015 lfl in gross

rental revenues

A DELIVERING ON OPERATING PERFORMANCE

B A BUSINESS MODEL DESIGNED TO BENEFIT

FROM MARKET GROWTH

C DOUBLE DIGIT VALUE CREATION

€78Mof net rental revenues

over 9M 2016

+24xincrease of attributed core

FFO vs. 9M 2015 (€33M)

+18%LTM EPRA NAV

growth1

HIGHLIGHTS (II)

4

SOLID PERFORMANCE ACCROSS THE THREE ASSET CLASSES

Source: Hispania

HOTELS €63M +17.9x

OFFICES €11M +1.6x

RESI €3M +1.3x

TOTAL €78M +6.1x

9M 2016 net rents vs. 9M 2015

Further accretive hotel acquisitions

HIGHLIGHTS (III)

5

SIGNIFICANT FURTHER GROWTH POTENTIAL

Hotels under repositioning coming into full operation

Improvement hotels performance flowing into higher rents

Progressing towards our reversionary yield in the office portfolio

Double digit returns on sales of our residential portfolio

HO

TE

LS

OF

FIC

E &

RE

SI

9M 2016 RESULTS OVERVIEW

Meliá Jardines del Teide, Tenerife

+175%

9M 2016 CONSOLIDATED INCOME STATEMENT

7

NET RENTS & EBITDA ACCELERATING IN Q3 2016 BY 22% AND 25%, RESPECTIVELY

Source: Hispania

Notes: (1) 9M 2016 versus 9M 2015; (2) Excluding one-off expenses of €1.5 million for H1 2016, €0.1 million for Q3 2016 and €1.6 million for 9M 2015; (3) Including €112.4 million of property valuation results registered

in H1 2016 as a consequence of the appraisal values released by CBRE; (4) Based on the adjusted average number of shares of 89.5 million for H1 2016, 108.3 million for Q3 2016, 93.7 million for the 9M 2016 and 70.8

million for the 9M 2015; (5) Defined as recurring EBITDA minus financial results minus maintenance capex and adjusted by minorities and rental revenues straight-lining

(€m) H1 2016 Q3 2016 9M 2016 ∆ (%)1 lfl (%)19M 2015

Net rental income (NOI) 48.2 29.3 77.5 +115%12.6 6.1x

Hotels 39.0 24.4 63.4 +4.4x3.5 +17.9x

Offices 7.2 3.7 10.9 +33%6.7 +1.6x

Residential 2.0 1.1 3.1 +19%2.4 +1.3x

Recurring EBITDA2 39.3 24.6 64.0 -3.2 +20.2x

as % of gross revenues 65% 62% 64% -16% +48p.p.

EBIT3 149.2 24.6 173.7 -16.3 +10.7x

Attributable to Hispania 120.1 16.6 136.7 -12.9 + 10.6x

EPS (€/share)4 1.34 0.15 1.46 -0.18 +8.0x

Attributable core FFO5 20.8 11.9 32.7 -1.3 +24.2x

Hispania’s consolidated income statement summary

IMPLIED YIELDS OVERVIEW

8

HIGH YIELDING PORTFOLIO WITH SIGNIFICANT REVERSIONARY POTENTIAL

Source: Hispania

Notes:

1 See annex for further details on the methodology calculationº

2 Excluding full repositioning projects (San Miguel hotel portfolio, Guadalmina, Holiday Inn, Maza, Portinatx, Las Agujas, Torre M30, Aurelio Menéndez and Avenida de Burgos (floor))

3 Including the before mentioned full repositioning projects

(data as of 9M 2016)

HOTEL

PROPERTIES

OFFICE

PROPERTIES

RESIDENTIAL

PROPERTIES

TOTAL

8.4%

3.6%

2.1%

6.2%

8.4%

4.2%

2.2%

6.4%

8.5%

5.4%

3.7%

7.2%

0.9%

2.5%

1.6%

1.5%

EPRA net initial

yield on GAV1,2

EPRA topped-up

NIY on GAV1,2

Upside from repositioning projects (EPRA on GAV)

Reversion yield1 Upside (%)

7.6%

2.9%

2.1%

5.7%

Net initial yield1,3

20 2335 28

39

497

1 year 2 years 3 years 4 years 5 years > 5 years

PRUDENT FINANCING PROFILE

9

ROBUST BALANCE SHEET WITH NO NEW FINANCINGS OVER THE LAST QUARTER

Source: Hispania

Notes:

1 Cash adjusted by the disbursement linked to the acquisition of the loan attributed to the Dunas hotel portfolio transaction

2 Excluding any impact from negative interest rate

3 Defined as EBITDA over financial expenses

Long-term debt maturity profile as of 30 September 2016 (€m)

Ke

y f

inan

cin

g t

erm

s a

s o

f 3

0 S

ep

tem

ber

201

6

Interest

cover3 3.9x

Average

all-in cost2 2.7%

Fixed

interest96%

Gross LTV 38%

Net LTV1 14%

Unencum-

bered assets12%

Hispania focuses on achieving investment grade rating

€642M

WALT: 7.2 years

41.940.4

32.7

15.2

4.6

15.8

3.2 1.6

7.7

77.5

NOI SG&A Straight-line

adjustments

Financial

results

FFO Maintenance

capex

One-off

expenses

Core FFO Minorities Attributable

core FFO

CORE FFO AT A GLANCE

10

DELIVERING ON CASH GENERATION STRENGTH AND DIVIDEND PAYMENT

9M 2016 attributable core FFO bridge (€m)1

Source: Hispania

Notes:

1 Defined as recurring EBITDA minus financial expenses minus maintenance capex and adjusted by minorities and rental revenues straight-lining

2 Based on last reported EPRA NAV per share

57% increase from H1 2016 in the attributable core FFO

June 2016: €10.4 million

November 2016: €17 million

May / June 2017: c.€13 million

Total dividend: c.€40 million

0.37€/Sdividend per share

3.0% NAV dividend yield2

10.34

10.97

12.24

0.63

0.96

0.17

0.15

0.01

Adjusted EPRA

NAV 9M 2015

Revaluation,

net income &

others (attributed)

Adjusted

EPRA NAV 2015

Valuation surplus

(attributed)

H1 2016 net

income (attr.)

Q3 2016 net

income (attr.)

Others EPRA NAV

9M 2016

EPRA NAV OVERVIEW

11

+18% LTM EPRA NAV INCREASE

Source: Hispania

Note:

1 Adjusted by the rights issue completed in June 2016 (net proceeds raised amounted to €222 million as of 9M 2016)

12-month change in adjusted EPRA NAV per share (€/share)1

10%

Acceleration of the contribution of the net income to EPRA NAV growth

HOTELS

Hotel Gran Bahía Real, Fuerteventura

PERFORMANCE OF THE HOTEL PORTFOLIO

13

9M 2016 NET RENTS INCREASE DRIVEN BY EXCELLENT OCCUPANCY AND CONTINUED

ADR GROWTH

Source: Hispania

Notes:

1 Excluding San Miguel hotel portfolio, Oasis and Portinatx as no comparable analysis is available. Maza hotel and Las Agujas land plot excluded as well

2 Including F&B and other revenues

3 Excluding Teguise

Occupancy ADR RevPar total2

9M 20161 vs. 9M 2015

Net rent

Canary Islands

(fixed & variable)

3,934 keys3

87% +3 p.p. €140 +16% €122 +20% €36M

Canary Islands

(fixed rent)

630 keys

91% +7 p.p. €187 +12% €170 +21% €4M

Balearic Islands

(fixed & variable)

1,915 keys

88% +5 p.p. €131 +11% €115 +17% €9M

Peninsula &

Urban hotels

905 keys

80% +6 p.p. €114 +0% €92 +8% €5M

Hotels to be

repositioned

492 keys

61% (3) p.p. €148 +7% €91 +2% €1M

Total1,3

7,876 keys85% +4 p.p. €139 +12% €119 +17% €55M

HOTEL STRATEGY DELIVERING HIGH RETURNS

14

OUR HOTEL PORTFOLIO HAS DELIVERED A LEVERED ROE OF 47%

Source: Hispania

Notes:

1 Accumulated revaluation up to H1 2016

2 Including existing minorities at BAY level

3 Excluding any of Hispania’s general expenses allocated to the hotel portfolio

Strong revaluation

(€m, in consolidated

terms)

Value creation and

returns analysis

19%Total accumulated

revaluation

36%Gross LTV

2

(data as of 9M 2016, on a consolidated basis)

1

Capex: €18M

16314

63

11

229

Revaluation NOI 2014-15 NOI 9M 2016 Total interestexpenses

Total return

(data as of 9M 2016, on a consolidated basis3)

+€66 million from operating performance

28%RoA3

47%RoE3

859

163

370

1,022

489

GAV Sept-2016 Revaluation Total investment Debt Equity

HOTEL PORTFOLIO YIELDS

15

OUTSTANDING YIELDS OF THE STABILIZED PORTFOLIO, WITH EXCEPTIONAL FURTHER

POTENTIAL FROM THE ASSETS UNDER REPOSITIONING

Source: Hispania

Notes:

1 Please see appendix for further detail on the calculation methodology

2 GAV as of 9M 2016 and including the value allocated to the shopping centres of the BAY portfolio when applicable

3 Repositioning projects include Guadalmina, Holiday Inn, Portinatx, San Miguel Ibiza portfolio and Las Agujas land plot

Yields overview (%)1

€749M GAV2 | 19 hotels

7,094 guestrooms

€138M GAV2 | 6 hotels

966 guestrooms

€886M GAV2 | 25 hotels

8,060 guestrooms

€136M GAV |

8 hotels | 1,289 keys

11.4%

7.1%

10.7%

3.5%

9.8%9.5%

6.4%

9.0%

2.9%

8.2%

Fixed and variable rent Fixed rents Total stabilised portfolio Repositioning projects Total portfolio

NPY on investment 9M 2016 NPY on GAV 9M 2016

€1,022M GAV |

33 hotels | 9,349 keys

3

HOTEL PORTFOLIO VALUE DRIVERS

16

POTENTIAL TO CONTINUE GROWING RENTS THROUGH OUR 3 STRATEGIC LEVERS

1

ATTRACTIVE

ACQUISITIONS

2

ASSET

REPOSITIONING

3

ASSET &

OPERATIONS

MANAGEMENT

EXCEPTIONAL EARNINGS GROWTH POTENTIAL

LEVER I – ATTRACTIVE ACQUISITIONS

17

Source: Hispania and Alimarket

Note:

1 Including Dunas, Maza and 125 keys for Las Agujas development

HISPANIA IS EXPECTING TO CLOSE c.€230M ACQUISITIONS IN THE COMING MONTHS

# Owner Hotels Rooms

1

2

3

4

5

6

7

8

9

10

Meliá

Hispania Activos Inmobiliarios

H10 Hoteles

Hoteles Globales

RIU Hotels & Resorts

Best Hotels

Iberostar

SEGIPSA

Hipotels

Grupotel Hotels & Resorts

37

37

43

41

27

23

21

102

29

34

10,969

10,5321

10,105

9,218

9,079

7,153

6,691

6,474

6,428

6,299

Ranking hotel owners in Spain

Reference investor in the Spanish hotel

industry2

1 Active pipeline of more than €450 million

to exceed initial target of 12,000 keys

Still highly fragmented and asset heavy3

Ability to deliver attractive term: 94%

transactions executed off-market4

Hispania is the largest owner of hotel properties in Spain, excluding hotel operator-owners

LEVER I – LATEST ACQUISITIONS

18

WE HAVE EXECUTED €38 MILLION OF NEW COMMITTED INVESTMENTS IN Q3 2016

OASIS RESORT PORTINATX

Transaction: 4 category star with 372 keys located at the

beachfront in the Teguise area (Lanzarote, the Canary Islands)

Strategic view: Complementing our offer (Lanzarote Barceló),

with high synergistic potential and a estimated capex of c.€4M

Operator: Barceló with a fixed & variable lease agreement

Expected stabilised net yield on investment: c.10.2%

€24M1 €14M1

Transaction: Hotel with 134 keys located at the beachfront of

Ibiza, ranked #1 by TripAdvisor in its area of influence

Strategic view: Full asset repositioning to turn into a 4 category

star for “Adults Only”, estimating a total capex of c.€7.5M

Operator: Barceló with a fixed & variable lease agreement

Expected stabilised net yield on investment: > 8%

Source: Hispania

Note:

1 Including the expected capex to be deployed as of the date of this presentation (all figures in attributed terms)

LEVER II – REPOSITION AND DEVELOPMENT

19

INVESTMENT IN CURRENT REPOSITIONINGS TO ADD €23M IN NET RENTS

San Miguel

Holiday Inn

Guadalmina

Las Agujas

Portinatx

Don

Gregory

Source: Hispania (all estimated data have been calculated as of the date of this presentation)

Notes:

1 Net investment after receivership process

2 Includes Ponent Playa, Bahía Real, Suites, Oasis and rest of Dunas assets (excl. Don Gregory)

1

Re-

opening

2018-19

2018

2018

2019

2017

2017

Subtotal

Other2

Total

Initial

invest.

€31M

€32M1

€24M

€12M

€11M

€22M

€132M

-

-

€18M

NOI yield

2016E

7.7%

0.6%

4.2%

0.0%

4.1%

8.0%

4.4%

-

-

Capex

€44M

€25M

€16M

€27M

€8M

€10M

€130M

€39M

€169M

€5M

Total

invest.

€75M

€57M

€40M

€39M

€19M

€32M

€262M

-

-

NOI

yield

c. 8.2%

c. 9.4%

c. 9.5%

c. 11.0%

c. 9.4%

c. 9.8%

c. 9.4%

-

-

Capex

return

c. 8%

c. 20%

c. 14%

c. 16%

c. 17%

c. 14%

c. 14%

c. 13%

c. 14%

Additional

NOI

€4M

€5M

€3M

€4M

€1M

€1M

€23M

Hotel property

9.4%5.3%

4.1%

NOI yield 2016E Repositoning

improvement

Expected NOI

yield

LEVER II – REPOSITIONING CASE STUDY

20

DRIVING-UP QUALITY, INCOME AND VALUATION WITH LOW RISK REPOSITIONINGS

Portinaxt Hotel – Ibiza Low risk repositioning investments

Key actions to be implemented

Capex: Full refurbishment of the 134 keys, with estimated budget of c.€8M

Common areas: Relocation of the lobby, upgrading of restaurant & swimming

pool areas

Expected re-opening: May 2017 and to be operated by Barceló

Total investment

cost: €19 million

Stabilised NOI:

€1.8 million

Value at current

average portfolio

yield: €24 million

Source: Hispania (all estimated data have been calculated as of the date of this presentation

Economical impact

Repositioning very well

consolidated & yielding

asset

Located in proven

locations (Ibiza)

High impact repositioning

but not brownfield projects

Las Agujas being an

extension of an existing

asset with excellent

performance and high

visibility of future demand

LEVER III – ASSET & OPERATIONS MANAGEMENT

21

Source: Hispania

A KEY SOURCE OF FURTHER VALUE IS EXTRACTING SYNERGIES IN OUR PORTFOLIO

1

REVENUES SYNERGIES

2

COST SYNERGIES

Integrated negotiation with tour-

operators and OTAs

Pricing strategy / Yield management

Purchase / contracting platform

Shared back-office services

Improvement of control systems

3

CAPEX SYNERGIES

Share best capex improvements

across different hotels

Monitoring / optimisation of

maintenance capex of hotels

Investing in a joint direct channel

Marketing & Advertising campaigns

Change of operatorsUNTAPPED

POTENTIAL GIVEN

THE RECENT AND

FAST BUILD UP OF

THE PORTFOLIO

HOTELS OUTLOOK 2016

22

ROBUST GROWING TREND IN THE SPANISH HOTEL MARKET CONFIRMED

Source: Hispania

Note:

1 Data as of 7 November 2016, comparing to the same period of previous year

BAY Barceló portfolio bookings performance for the next three months1

Booking on

revenues

November December January

+33% +29% +56%

Occupancy

+6.0 p.p. +7.1 p.p. +14.4 p.p.

ADR

+6% +4% +3%

UK booking

revenues+47% +24% +79%

HIGH ADR GROWTH

TO CONTINUE

NO IMPACT FROM BREXIT

IN THE SHORT-TERM

NO NEW CAPACITY

1

2

3

OFFICES

Comandante Azcarraga 3 Building, Madrid

ASSET MANAGEMENT ACTIVITY – OCCUPANCY

24

STEADY AND PROGRESSIVE INCREASE IN OCCUPANCY RATES

Source: Hispania

Letting activity evolution

STRATEGY Like-for-like portfolio: +18 p.p.

New long leases with reputed

and creditworthiness tenants

Pre-let of 100% of Aurelio

Menéndez building to Uría

Menéndez

Cristalia: 67% occupied by

Aegón

New GLA signed during the

9M 2016 period: 18,671 sqm

Renewal surface: 14,055 sqm

over the 9M 2016

Total gross rental activity:

c.33,000 sqm

65%

77%

84%

9M2015 2015YE 9M 2016

+19 p.p. LTM improvement in occupancy rate

124,731 153,621 153,621

Total available SBA (sqm)

+18 p.p lfl increase

65%

83%

9M 2015 9M 2016 lfl

Like-for-like: 124,731

+8%above previous rents for renewal

leases (12.0 €/sqm/month)

ASSET MANAGEMENT ACTIVITY – RENTS

25

COTINUOUS RENTAL GROWTH WITH NEW LETS 13% ABOVE AVERAGE MARKET

RENTS OF THE AREA

Source: Hispania

+63%net passing rents

increase vs. 9M 2015

A OUTPERFORMING THE MARKET

C CLOSE TO TENANTS NEEDS

+10%in contracted rents on a like-for-

like basis (14.4 €/sqm/month)

+13%above average market rents of

the area for new leases signed

(16.6 €/sqm/month)

B CONSTANT MONITORING OF MARKET DYNAMICS

24.3

28.4

6.6

2.2

4.0

15.6

Annualised2016 NOI

Full occupancy at averagemarket rents

Letting above averagemarket rents

Annualised NOI at100% occupancy

Repositioning projects Reversionary NOI

OFFICE PORTFOLIO YIELDS

26

HIGH QUALITY PORTFOLIO APPROACHING AN OPTIMISED 6.3% NET YIELD ON GAV

Source: Hispania

Notes:

1 Excluding Torre M30, Aurelio Menéndez building and Avenida de Burgos (floor)

2 Existing vacancy rented at average market rents

3 Assuming the vacant space is rented at current rental levels when these rents are higher than current average market rents

4 Including Torre M30, Aurelio Menéndez building and Avenida de Burgos (floor)

Reversionary NOI potential as of 9M 2016 (€m)

Net passing yield on GAV on stabilised portfolio

Net reversion yield on GAV on stabilized portfolio

Net reversion yield on investment

4.1%

6.3%

7.1%

32

4

1 1

REPOSITIONING STRATEGY – TORRE M30 CASE STUDY

27

TORRE M30 PROJECT COMPLETED AND OCCUPIED BY ILUNION

Source: Hispania

July 2014 acquisition – fully rent to Ilunion

€26MAcquisition cost

(2,293 €/sqm)

69%occupancy rate

10.5€/sqm monthly market rent

100%let for 15 years

16.5€/sqm monthly

(+57% from market rent)

€37MTotal investment with

€10.6 million capex

(3,224 €/sqm)

Pre-repositioning Post-repositioning

4.0% yield on cost 7.0% yield on cost

REPOSITIONING STRATEGY – AURELIO MENÉNDEZ CASE STUDY

28

SUCCESSFUL PRE-LETTING OF 100% OF PV AUDITORIO TO URÍA MENÉNDEZ

Source: Hispania

Sept 2015 acquisition – fully rent to Uría

€18M

82%occupancy rate

12.8€/sqm monthly market rent

100%let for minimum 8 years

+ %above previous market

rents and ERV

2.8% yield on cost 6.0% yield on cost

Pre-repositioning Post-repositioning

€23MTotal investment with

€5.1 million capex

(4,785 €/sqm)

Acquisition cost

(3,726 €/sqm)

LATEST ACQUISITION – VILLAGE DEVELOPMENT

29

ENHANCING PORTFOLIO QUALITY AND UPSIDE POTENTIAL WITH A UNIQUE ASSET

Source: Hispania

Attractive acquisition price: c.€32 million plus > €50M

of development cost

Highest quality and unique office space in Madrid

Total SBA: more than 33,000 sqm + 792 parkings

Leed Platinum certification projected

Unique size for single tenant

Flexible design to accommodate multiple tenants

Commercialisation underway

Demanding area by large corporates due to location

and asset quality

Expected net yield on total investment: >7.0%

RESIDENTIAL

Isla del Cielo Building, Barcelona

ASSET MANAGEMENT ACTIVITY

31

STEADY PROGRESS ON OUR TOTAL RETURN RESIDENTIAL STRATEGY

Source: Hispania

31

Portfolio average monthly rent and occupancy evolution

8.8

9.3

10.1

9M 2015 2015YE 9M 2016

€/sqm/month

Growth lfl: +14%

Progress on dwellings upgrade

Isla del Cielo: 18 new dwellings

upgraded in Q3 2016 (64 in total)

Sanchinarro: 20 new dwellings

upgrade in Q3 2016 (75 in total)

Rental level progressing:

Overall portfolio (excluding

upgraded units): 9.1 €/sqm

Isla del Cielo upgraded units:

18.8 €/sqm/month

Sanchinarro upgraded units:

12.2 €/sqm/month

Hispania’s repositioning program is delivering strong results in optimising rental growth

86% 86%

84%

9M 2015 2015YE 9M 2016

Occupancy (%)

95%

98%

Adjusted

by the

units not

available

for renting

ISLA DEL CIELO – RETAIL SALE

32

INITIAL SALE OF DWELLINGS CONFIRMS DOUBLE-DIGIT RETURN EXPECTATIONS

It is expected to deliver good results at the time of the individual disposal of the portfolio

Preparing the asset for retail disposal

Reducing the commercialization of units for rent

Accelerating the number of units under refurbishment (4 to 8 monthly)

Commercialisation strategy already in place

Carried out test with one dwelling disposal related to Tower A

Implied equity IRR: above 20%

Implied equity multiple: c.2x

Source: Hispania

2016 OUTLOOK

Hotel Barceló Teguise Beach, Lanzarote

2016 OUTLOOK

35

HISPANIA CONFIRMS A SOLID OUTLOOK FOR 2016

VACATIONAL HOTEL MARKET TO CONTINUE TO SHOW VERY STRONG PERFORMANCE

OFFICE PORTFOLIO EXPECTED TO END THE YEAR AT CURRENT LEVELS OF RENTS AND

OCCUPANCY

ACCELERATION OF OUR REPOSITIONING PLANS IN RESIDENTIAL

CONTINUE VERY FOCUSED ON DELIVERING ON OUR HOTEL PIPELINE

ON TRACK TO PRESENT HISPANIA’S STRATEGIC REVIEW WITH THE 2016YE RESULTS

IMPORTANT MILESTONES EXPECTED TO BE REACHED IN SOME OF OUR MAJOR HOTEL

REPOSITIONING PROJECTS

ANNEX

Cristalia Play Building, Madrid

EPRA YIELDS DEFINITION

36

EPRA net passing yield on cost: refers to annual income from the net cash flows of non-recoverable operational costs derived from the

rental of the Portfolio, with respect to the investment amount in the Portfolio. In the hotel segment, the assets under management and in

development (Holiday Inn Bernabéu, Guadalmina, Hotel Maza, Las Agujas, Portinatx, and San Miguel portfolio) are excluded. In the

office segment, the assets in development (Torre 30 and Aurelio Menéndez buildings) are excluded.

EPRA net passing yield on GAV: refers to annual income from the net cash flows of non-recoverable operational costs derived from

the rental of the Portfolio, with respect to the market value of the Portfolio increased by estimated transaction costs. In the hotel segment,

the assets under management and in development (Holiday Inn Bernabéu, Guadalmina, Hotel Maza, Las Agujas, Portinatx, and San

Miguel portfolio) are excluded. In the office segment, the assets in development (Torre 30 and Aurelio Menéndez buildings) are

excluded.

EPRA reversion yield on cost: refers to the estimated annual net cash flow income of non-recoverable operational costs derived from

the rental of the Portfolio, using the market value of the net income of the Portfolio on the date of the calculation, in relation to the

investment amount of the Portfolio. With regard to the office and residential portfolios, net income is estimated for each asset considering

in nature and its location. The triple net contract hypothesis is used, meaning that it is assumed the operational costs will be reassigned

to the tenants. With regard to the hotel portfolio, the Group considers that the EPRA net reversion yield on cost is equivalent to the EPRA

net initial yield on cost for those hotels that are currently leased out to an operator which does not form part of the Group because there

are not comparable market references for the hotel assets of the Group. EPRA net reversion yield on cost includes the best estimate of

annual net cash flow income of the assets in development or currently managed internally by the Group, calculated over the gross

estimated investment of such assets once the development is finalised and the planned repositioning work completed.

EPRA reversion yield on GAV: refers to the estimated annual net cash flow income of non-recoverable operational costs derived from

the rental of the Portfolio, using the market value of the net income of the Portfolio on the date of the calculation, in relation to the market

value of the Portfolio increased by estimated transaction costs. With regard to the office and residential portfolios, net income is

estimated for each asset considering in nature and its location. The triple net contract hypothesis is used, meaning that it is assumed the

operational costs will be reassigned to the tenants. With regard to the hotel portfolio, the Group considers that the EPRA net reversion

yield on GAV is equivalent to the EPRA net initial yield on GAV for those hotels that are currently leased out to an operator which does

not form part of the Group because there are not comparable market references for the hotel assets of the Group. EPRA net reversion

yield on GAV includes the best estimate of annual net cash flow income of the assets in development or currently managed internally by

the Group, calculated over the gross estimated investment of such assets once the development is finalised and the planned

repositioning work completed.

EPRA “Topped-up” net initial yield: this measures incorporates an adjustment to the EPRA net passing yield in respect of the

expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and stepped rents).

YIELDS DEFINITION

37

Net passing yield on cost: refers to annual net operating incomes derived from the rental of the Portfolio, with respect to the investment

amount in the Portfolio. In the hotel segment, the assets under management and in development (Holiday Inn Bernabéu, Guadalmina,

Hotel Maza, Las Agujas, Portinatx, and San Miguel portfolio) are excluded. In the office segment, the assets in development (Torre 30

and Aurelio Menéndez buildings) are excluded.

Net passing yield on GAV: refers to annual net operating incomes derived from the rental of the Portfolio, with respect to the market

value of the Portfolio. In the hotel segment, the assets under management and in development (Holiday Inn Bernabéu, Guadalmina,

Hotel Maza, Las Agujas, Portinatx, and San Miguel portfolio) are excluded. In the office segment, the assets in development (Torre 30

and Aurelio Menéndez buildings) are excluded.

Net reversion yield on cost: refers to the estimated annual net operating incomes derived from the rental of the Portfolio, using the

market value of the net income of the Portfolio on the date of the calculation, in relation to the investment amount of the Portfolio. With

regard to the office and residential portfolios, net income is estimated for each asset considering in nature and its location. The triple net

contract hypothesis is used, meaning that it is assumed the operational costs will be reassigned to the tenants. With regard to the hotel

portfolio, the Group considers that the net reversion yield on cost is equivalent to the net initial yield on cost for those hotels that are

currently leased out to an operator which does not form part of the Group because there are not comparable market references for the

hotel assets of the Group. Net reversion yield on cost includes the best estimate of annual net operating income of the assets in

development or currently managed internally by the Group, calculated over the gross estimated investment of such assets once the

development is finalised and the planned repositioning work completed.

Net reversion yield on GAV: refers to the estimated annual net operating income derived from the rental of the Portfolio, using the

market value of the net income of the Portfolio on the date of the calculation, in relation to the market value of the Portfolio. With regard

to the office and residential portfolios, net income is estimated for each asset considering in nature and its location. The triple net

contract hypothesis is used, meaning that it is assumed the operational costs will be reassigned to the tenants. With regard to the hotel

portfolio, the Group considers that the net reversion yield on GAV is equivalent to the net initial yield on GAV for those hotels that are

currently leased out to an operator which does not form part of the Group because there are not comparable market references for the

hotel assets of the Group. Net reversion yield on GAV includes the best estimate of annual net operating income of the assets in

development or currently managed internally by the Group, calculated over the gross estimated investment of such assets once the

development is finalised and the planned repositioning work completed.