WARIMPEX

Report on the First Quarter of 2023

2

WARIMPEX REPORT ON THE FIRST QUARTER OF 2023

WARIMPEX GROUP

Key Figures

in EUR '000

1-3/2023

Change

1-3/2022

Investment Properties revenues

10,018

54%

6,522

Hotels revenues

2,424

109%

1,162

Development and Services revenues

504

-40%

839

Total revenues

12,946

52%

8,523

Expenses directly attributable to revenues

-4,241

29%

-3,276

Gross income from revenues

8,705

66%

5,247

Gains or losses from the disposal of properties

-

-

-

EBITDA

5,599

92%

2,911

Depreciation, amortisation, and remeasurement

-322

-92%

-4,172

EBIT

5,276

-

-1,261

Financial result

-3,217

13%

-2,854

Profit or loss for the

period

1,350

-

-4,381

Net cash flow from operating activities

10,202

362%

2,210

Equity and liabilities

437,029

18%

371,132

Equity

160,924

43%

112,370

Equity ratio

37%

7 pp

30%

Number of shares

54,000,000

-

54,000,000

Earnings per share in EUR

0.03

-

-0.08

Number of treasury shares

1,939,280

-

1,939,280

Number of office and

commercial properties

9

1

8

Lettable office space

(adjusted for proportionate share of ownership)

126,300 m2

28,800 m²

97,500 m2

Area with sustainability certificates (adjusted for proportionate share of ownership)

75,400 m2

21,600 m²

53,800 m2

In % of the total floor area

60%

5 pp

55%

Number of hotels

4

-

4

Number of rooms (adjusted for proportionate share of ownership)

831

-

831

31/12/20221

Change

31.12.20211

Gross asset value (GAV) in EUR millions

429.3

17%

365.8

NNNAV per share in EUR

3.78

37%

2.76

EPRA NTA

3.59

36%

2.63

1 As no external valuation of the portfolio was completed as at 31 March 2023 or 31 March 2022, the latest available values are shown.

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REPORT ON THE FIRST QUARTER OF 2023 WARIMPEX

FOREWORD BY THE CHAIRMAN OF THE MANAGEMENT BOARD

Dear Shareholders,

Warimpex remains on solid financial footing in the 2023 financial year. Our operational performance has improved, and our development projects in the office segment are proceeding according to plan. Management continues to focus on the current geopolitical situation in connection with the conflict in Ukraine as well as the increase in costs resulting from the inflation trend and the higher interest rates.

Significant improvement in result for period

Amidst these market conditions, Warimpex improved its result for the period from minus EUR 4.4 million in the prior- year period to EUR 1.4 million overall. This can be attributed primarily to higher revenues from both offices and hotels as well as the elimination of negative property valuation results that were recognised in the first quarter of 2022.

Specifically, revenues from the rental of office properties rose from EUR 6.5 million in the prior-year period to EUR 10.0 million due to the higher occupancy rate of the Polish office properties and the fact that Avior Tower, which was completed in St. Petersburg in the third quarter of 2022, was fully let out. Revenues from hotels doubled to EUR 2.4 million - the result for the prior-year period was still impacted by the coronavirus pandemic. Total revenues improved by 52 per cent to EUR

12.9 million, while the expenses directly attributable to revenues increased by 29 per cent to EUR 4.2 million. This equates to gross income from revenues of EUR 8.7 million versus EUR 5.2 million in the prior year, which represents an increase of 66 per cent.

As a result, EBITDA rose from EUR 2.9 million to EUR 5.6 million and EBIT from minus EUR 1.3 million to EUR 5.3 million. Finance income (including earnings from joint ventures) went from minus EUR 2.9 million to minus EUR 3.2 million.

Office buildings under construction or in planning phase

In the office development segment, Mogilska 35 Office with 11,900 square metres of net floor space in Krakow will be completed in the summer and the Red Tower office building with 12,400 square metres of space in Łódź is being modernised on a step-by-step basis while the letting process continues to progress. Further new projects are being planned: Building permits have been secured for Chopin Office with roughly 21,200 square metres of space in Krakow and the MC 55 office building with around 38,500 square metres of space in the Polish city of Białystok. The planning for the West Yard 29 office building with roughly 13,800 square metres of space in the German city of Darmstadt is already at an advanced stage.

Outlook

Our operational focus is on making preparations for con­ struction and obtaining building permits for our development projects as well as continuing ongoing construction and renovation activities in Krakow and Łódź. In addition, we are pursuing the goal of implementing sustainability concepts at our properties and obtaining corresponding certifications for these measures. Several of our properties have already been classified as EU Taxonomy-aligned. We will continue on this course in the future.

Vienna, May 2023

Franz Jurkowitsch

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WARIMPEX REPORT ON THE FIRST QUARTER OF 2023

Report on the First Quarter of 2023

Economic conditions

Ukraine crisis

Attention remained particularly focused on the geopolitical developments in the first quarter of 2023. On 24 February 2022, Russian troops invaded Ukraine, thus starting a conflict that has resulted in significant economic upheavals due to the international sanctions imposed against Russia as well as the reactions in Russia and will most likely continue to have an impact for some time. The rouble, which had stabilised again starting in April 2022 following the initial substantial depreciation, weakened somewhat again in the first quarter of 2023.

In addition, inflation rose significantly in the Eurozone in 2022, due in part to energy price increases and shortages caused by the Ukraine conflict. The ECB reacted by raising the key interest rate in multiple steps starting in July 2022.

For information about the impact of the Ukraine conflict on the Group, please refer to the information in the consolidated financial statements as at 31 December 2022, section 3.4.1., and the section "Outlook" in the management report.

COVID-19

While the first quarter of 2022 was still in part impacted by restrictions due to the pandemic, no effects related to the coronavirus were discernible during the reporting period.

Assets, Financial Position,

and Earnings Situation

Earnings situation

Development of revenues

The rise in revenues from the rental of office properties (Investment Properties revenues) from EUR 6.5 million to EUR 10.0 million is due to the higher occupancy rate of the Polish office properties as well as additional revenues from Avior Tower, which has been fully occupied since the beginning of 2023.

In the first quarter of 2023, revenues in the Hotels segment increased to EUR 2.4 million, which represents an increase of 109 per cent compared with the prior-year period. The development of revenues in the first quarter of 2022 was still stunted by the COVID-19 pandemic.

Total revenues improved by 52 per cent to EUR 12.9 million, while the expenses directly attributable to revenues increased by 29 per cent to EUR 4.2 million. This led to a 66 per cent increase in gross income from revenues to EUR 8.7 million (prior year: EUR 5.2 million).

Gains or losses from the disposal of properties

As in the first quarter of 2022, the Group conducted no real estate transactions in the first quarter of 2023.

EBITDA - EBIT

EBITDA (earnings before interest, taxes, depreciation, amorti­­ sation, and gains/losses on the remeasurement of investment­ properties) rose from EUR 2.9 million to EUR 5.6 million, primarily due to the increase in revenues.

EBIT improved considerably, climbing from minus EUR 1.3 million to EUR 5.3 million. This can be attributed in part to the higher operating result (EBITDA) and in part to the elimination of negative valuation results from Russian properties that were recognised in the first quarter of 2022.

Financial result

Finance income (including earnings from joint ventures) went from minus EUR 2.9 million to minus EUR 3.2 million.

Financing expenses broke down as follows:

in EUR '000

1-3/2023

1-3/2022

Composition

Interest on short-term borrowings,

(3,149)

(2,176)

project loans, and other loans

Interest on bonds

(156)

(49)

Interest on lease liabilities

(22)

(18)

Other finance expenses

(138)

(66)

Unrealised losses on

(49)

-

derivative financial instruments

Other

(13)

-

(3,527)

(2,310)

Profit or loss for the period

The result for the period for the Warimpex Group increased from minus EUR 4.4 million in the prior-year period to EUR 1.4 million.

Financial position

Changes in the most important assets and liabilities:

in EUR '000

Investment properties

Changes in 2023

REPORT ON THE FIRST QUARTER OF 2023 WARIMPEX

5

Developed

Development

Reserve

properties

properties

properties

Total

Carrying amounts at 1 January

336,835

30,128

21,500

388,463

Additions/investments

447

3,294

71

3,812

Capitalised borrowing costs

-

57

-

57

Disposals

(156)

-

-

(156)

Net measurement result

121

(19)

(58)

44

Exchange adjustments

(17,505)

99

(755)

(18,160)

Carrying amounts at 31 March

319,742

33,560

20,758

374,060

in EUR '000

Property, plant, and equipment Changes in 2023

Hotels

Other Right-of-use property, plant, assets and equipment

Total

Carrying amounts at 1 January

33,362

896

2,149

36,408

Additions

164

183

40

387

Disposals

(7)

-

-

(7)

Scheduled depreciation and amortisation

(380)

(78)

(84)

(542)

Impairment reversals

183

-

-

183

Exchange adjustments

(1,922)

(1)

(9)

(1,932)

Carrying amounts at 31 March

31,400

1,000

2,097

34,497

in EUR '000

Financial liabilities

Changes in 2023

Project loans

Working capital loans

Bonds

Loans from minorities and others

Lease liabilities

Total

Carrying amounts at 1 January

206,753

14,556

12,627

8,897

2,136

244,970

Borrowing (cash flow)

4,843

8

-

-

-

4,851

Repayment (cash flow)

(2,297)

(5,005)

-

(1,000)

(113)

(8,416)

Change in accumulated interest

123

-

223

77

8

431

Changes in foreign exchange rates

(8,389)

-

-

(164)

(12)

(8,564)

Other changes

-

-

-

9

175

184

Carrying amounts at 31 March

201,034

9,558

12,850

7,819

2,194

233,455

thereof current (due < 1 year)

10,474

4,550

2,047

1,326

423

18,819

thereof non-current (due > 1 year)

190,560

5,008

10,804

6,493

1,771

214,636

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Disclaimer

Warimpex Finanz- und Beteiligungs AG published this content on 26 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2023 16:26:16 UTC.