Meridia Real Estate III SOCIMI S A : Informe primer trimestre del ejercicio 2024

Q1 2024

QUARTERLY REPORT

Meridia III

Meridia Real Estate III, SOCIMI, S.A.

March 2024

2 · Meridia III · Q1 2024 Quarterly Report

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Q1 2024 QUARTERLY REPORT

Meridia III Meridia Real Estate III, SOCIMI, S.A.

March 2024

4 · Meridia III · Q1 2024 Quarterly Report

Important Notice and Disclaimer

This report ("Report") was prepared by Meridia Capital Partners SGEIC, S.A. ("Meridia") for investor informational purposes only and may not be used for any other purpose.

This Report includes information about the past performance of the Meridia Real Estate III, SOCIMI, S.A (the "Vehicle) investments. Past performance is not necessarily indicative of future results and there can be no assurance that the Vehicle or any of its investments will achieve or continue to achieve results comparable to its past performance. Similarly, there can be no assurance that the Vehicle will be able to implement its investment strategy or achieve its investment objective.

Unless specifically otherwise indicated, all performance information presented herein is calculated on a "gross" basis without giving effect to management fees, carried interest fees, transaction costs and other expenses to be borne by investors, which will reduce returns and in the aggregate may be substantial.

Statements contained in the Report that are not historical facts (such as those relating to current and future market conditions and trends in respect thereof) are based on current expectations, estimates, projections, opinions and/or beliefs of Meridia. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained in this Report constitutes "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue," "target" or "believe" or the negatives thereof or other comparable terminology. Due to various risks and uncertainties, actual events or results, including the actual performance of the Vehicle, may differ materially from those expressed or contemplated in such forward- looking statements.

Nothing contained in this Report may be relied upon as a guarantee, promise, forecast or representation as to future events or result and thus no representation is made or assurance given that the above-mentioned statements, views, projections or forecasts are correct or that the objectives of the Vehicle will be achieved. Investors must determine for themselves what reliance (if any) they should place on such statements, views, projections or forecasts and none of the Vehicle, Meridia or any of their respective directors, officers, employees, members, partners, shareholders or affiliates assumes any responsibility for the accuracy or completeness of such information.

This document does not constitute a recommendation, offer to sell or purchase the shares of the Company, nor can it in any way be considered an invitation to enter into any contract or commitment in relation to any share, investment, investment management service or advisory service. Potential investors should carefully consider whether an investment is suitable for them in light of their circumstances, knowledge and financial resources, so they should consult their own professional and independent advisers.

It is expressly pointed out that Meridia's valuations of unrealized investments are based on assumptions that Meridia believes are reasonable under the circumstances and, consequently, the actual realized returns on unrealized investments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the valuations used in the performance data contained herein are based. Accordingly, the actual realized returns on these unrealized investments may differ materially from the returns indicated herein.

Certain information contained herein has been obtained from published sources and/or prepared by other parties, which in certain cases has not been updated through the date hereof. While such information is believed to be reliable for the purpose used herein, none of the Vehicle, Meridia or any of their respective directors, officers, employees, members, partners, shareholders or affiliates assumes any responsibility for the accuracy or completeness of such information.

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Table of contents

I.	Letter from the management	6
II.	Executive summary	8
III.	Vehicle's overview	10
IV.	Deal by deal overview	20
V.	Environmental, Social and	32
	Governance issues (ESG)
VI. Financial statements	34

I.

Letter from the management

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Dear Investors,

We hope this letter finds you well.

Please find enclosed Meridia III ("the Vehicle")'s Q1 24 quarterly report.

As of March 31st, 2024, Meridia III's total outstanding investments amounted to €195.1 million. Total equity invested (having deducted distributions) amounted to €73.7 million.

Based on the latest financial statements included in this Quarterly Report, total net NAV (including distributions) stands at €298.5 million and 1.62x net equity multiple (post carried interest estimate), which compares with a total net NAV of €298.2 million and 1.62x net equity multiple showed in Q4 2023.

Meridia continues to work intensively on all existing assets, carrying out various asset management initiatives to increase occupancy rates and improve tenant mix.

Disposals

Meridia continues to assess the market whilst evaluating the optimal liquidity window to carry on with its disposals programme.

Portfolio Overview

Equity exposure of the remaining portfolio is split between office (75.9%), retail (22.8%) and residential (1.4%).

As of March 31st, 2024, our portfolio comprised 8 properties: 5 office buildings, 1 shopping centre and 2 residential assets.

Asset and Project Management Updates

The main highlights of the quarter are:

- The completion of the works for the handover of the remaining available space in Virgilio (Project Insur- ance) to the new tenant whose contact was signed during the previous quarter. With this, the building has reached full occupancy.

- 2 lease agreement renewals signed in Barnasud (Project Beatle), helping us to maintain overall occupancy at the shopping center.

On Project Management:

Project Smart: Various improvement projects have been approved during Q1 24.

Project Beatle: The construction of the new entertainment alley is currently underway and must be completed for the opening in Q2 24. The tenant, Ilusiona, has initiated works, expected to be completed by Q2 24.

Project Ice: The construction works have been completed in Q1 24 including all licence documents and City Hall inspections.

As always, we remain at your disposal. Sincerely,

The Meridia Team

II. Executive summary

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Meridia III

• A €190 m equity value added vehicle focused on the Spanish real estate sector
• Primary focus on Madrid / Barcelona
• 2016 vintage
• All real estate segments

Key highlights during Q1 2024

At Vehicle level:

Vehicle's overview:

• Total capital calls since inception: €184.0 m (96.8%).
• Acquired c. 300,000 sqm in real estate.
• Equity Realesed: €129.3 m (68.1%).
• Distribution: €217.4 m.
• Current Equity deployed: €73.7 m (1) (38.8%).
• 15.9% Madrid, 84.1% Barcelona.
• 75.9% Office, 1.4% Residential and 22.8% Retail.
• Total funds invested (incl. debt): €195.1 m
• Financing: average LTC 56%
• NAV + Distributions after carried interests: €298.5 m;
  EM: 1.62x (unrealised)

1. Excluding €7.9 m co-investment.

At market level:

• From a market standpoint, the Spanish economy has experienced a significant improvement in 2023 and is expected to sustain growth into 2024. With stabilized inflation, heightened competitiveness, and restored confidence, the economic outlook remains promising. Building upon robust performances in 2023 (2.4%) and 2023 (5.8%), the projected GDP growth for Spain in 2024 stands at 1.7% - moderate but certainly above the European average. The European Central Bank (ECB) currently indicates no imminent plans for substantial interest rate reductions. Consequently, the mortgage market in Spain is expected to remain tight, serving as key factor for constraining property prices.

Investment Name	Location	Investment Type	Entry Date	% Drawn of Total Fund
Project Insurance	Madrid	Office	apr-16	6.2%
Project Ice	Barcelona	Residential	jul-17	0.5%
Project Beatle	Barcelona	Retail	nov-17	8.8%
Project Smart	Barcelona	Office	dec-18	23.2%
Total Unrealised				38.8%

III.

Vehicle's overview