IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 tracts refer to the leasing of spaces whose characteristics differ according to the space in which they are located and which, in general, can be summarized: - Leases in Shopping Centers: are, as a rule, for a period of 6 years, with a fixed monthly income or an income based on monthly sales, if this is greater than the fixed income - Leases in street locations: these are normally for longer periods of 10 to 20 years with a fixed monthly income, with the tenant having the option of terminating the lease for a shorter period. There are other contracts that are concluded for shorter terms and there is the lessee’s right to successive renewals up to a maximum term, which is generally 20 years. - Leases in concession spaces: for the contractual period with a variable income de- pending on annual sales subject to a guaranteed minimum annual value. There are lease agreements that provide for variable rents. In the case of Airports in Spain, pursuant to Law 13/2021, the minimum annual rents depend on the traffic of the Airports until the traffic for the year 2019 is reached, whereby variable rent contracts are considered until such traffic is reached. With the adoption of IFRS 16, the distinction between operating leases (off balance sheet) and finance leases (included in the balance sheet) was eliminated at the lessee level, having been replaced by a model in which an asset identified with a right is ac- counted for of use and a corresponding liability for all lease agreements. The right of use is initially measured at cost and subsequently at cost net of deprecia- tion and impairment, adjusted by remeasuring the lease liability. The right of use is constituted by the initial value of the lease liabilities and by initial di- rect costs and payments made to the lessor before the effective date of the lease, minus any lease incentives received. The Group applies the recognition exemption provided for in paragraph 6 of IFRS 16 to short-term leases and leases where the underlying asset has a low value. Amortization The right of use is depreciated on a straight-line basis over the term of the lease, com- prising the non-cancellable period during which the lessee has the right to use an un- derlying asset and (i) the periods covered by an option to extend the lease, if the lessee has a reasonable certainty to exercise that option; (ii) the periods covered by an option to terminate the lease, if the lessee is reasonably certain not to exercise that option. 447