Saint Croix Immobilier SOCIMI S A : Financial report

SAINT CROIX HOLDING IMMOBILIER,

SOCIMI, S.A.

Financial Statements for the year ended on 31 December 2021 and Management Report

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Table of Contents

Annual Report____________________________________________________________________________ 2

1. Company's activity _________________________________________________________________ 8
2. Applicable law ____________________________________________________________________ 10
3. Basis for presenting the financial statements __________________________________________ 12
4. Profit distribution__________________________________________________________________ 14
5. Accounting principles and accounting and measurement rules __________________________ 14
6. Property investment _______________________________________________________________ 20
7. Operating leases __________________________________________________________________ 26
8. Other financial assets and investments in related companies ____________________________ 26
9. Trade and other accounts receivable ________________________________________________ 29
10. Cash and cash equivalents _________________________________________________________ 29
11. Information on the nature of financial instruments and their level of risk ___________________ 29
12. Total equity and shareholders' equity ________________________________________________ 31
13. Current and non-current liabilities ___________________________________________________ 34
14. Hedge instruments ________________________________________________________________ 36
15. Disclosure on supplier payment deferrals _____________________________________________ 37
16. Guarantees undertaken with third parties _____________________________________________ 37
17. Public administrations and tax situation_______________________________________________ 38
18. Income and expenses _____________________________________________________________ 42
19. Related-partytransactions and balances______________________________________________ 43
20. Remuneration for the Board of Directors and Senior Management________________________ 44
21. Information on conflicts of interest among the Directors_________________________________ 45
22. Other information _________________________________________________________________ 45
23. Environmental information__________________________________________________________ 46
24. Segmented reporting ______________________________________________________________ 46
25. International Financial Reporting Standards ___________________________________________ 48
26. Subsequent disclosures____________________________________________________________ 48

Annex 1. Reporting requirements as a REIT__________________________________________________ 49

Management Report _____________________________________________________________________ 53

1. Explanation of figures at 31 December 2021 __________________________________________ 54
2. Valuation of real estate assets_______________________________________________________ 59
3. Segmented reporting ______________________________________________________________ 59
4. Property Investment _______________________________________________________________ 61
5. Disclosure on supplier payment deferrals _____________________________________________ 61
6. Earnings per share ________________________________________________________________ 62
7. Acquisition of treasury shares_______________________________________________________ 62
8. Research and development activities ________________________________________________ 62
9. Main risks to the Company _________________________________________________________ 62
10. Outlook for 2022 __________________________________________________________________ 64
11. Information on conflicts of interest among the Directors_________________________________ 64
12. Subsequent disclosures____________________________________________________________ 64
13. Annual Corporate Governance Report _______________________________________________ 64

Directors' Responsibility Statement ________________________________________________________ 153

Diligence in Drawing Up the Financial Statements ___________________________________________ 154

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Tel: [phone]	Rafael Calvo 18
Fax: [phone]	28010 Madrid
www.bdo.es	España

Audit report on the financial statements issued by an independent auditor

Translation of a report originally issued in Spanish based on our work performed in accordance with generally accepted auditing standards in Spain. In the event of a discrepancy, the Spanish- language version prevails

To the Shareholders of Saint Croix Holding Immobilier, SOCIMI, S.A.:

Report on the financial statements

Opinion

We have audited the financial statements of Saint Croix Holding Immobilier, SOCIMI, S.A. (the Company), which comprise the balance sheet at 31 December 2021, the profit and loss account, the statement of changes in equity, the statement of cash flows and the report for the financial year ended on that date.

In our opinion, the accompanying financial statements give, in all material respects, a true and fair view of the Company's equity and financial position as at 31 December 2021, as well as its results and cash flows for the financial year ending on said date, in accordance with the application of the regulatory framework of financial information (identified in note 3 of the report) and, in particular, with the accounting principles and criteria contained therein.

Basis for opinion

We have performed our audit in accordance with the current regulations governing the auditing of accounts in Spain. Our responsibilities in accordance with these regulations are described later in the section Auditor's Responsibilities relating to the audit of the financial statements of our report.

We are independent of the Company in accordance with the ethical requirements, including those of independence, which are applicable to our audit of the financial statements in Spain as required by the regulations governing the activity of auditing accounts. Accordingly, we have not provided services other than those of the audit of accounts nor have concurred situations or circumstances that, in accordance with the provisions of the aforementioned governing regulations, have compromised the necessary independence.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key audit matters

The key audit matters are matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. Our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole, and in the formation of our opinion on these and we do not express a separate opinion on those matters.

BDO Auditores, S.L.P., sociedad limitada española, inscrita en el Registro Oficial de Auditores de Cuentas nº S1.273, es miembro de BDO International Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas.

Registro Mercantil de Barcelona, Tomo 47.820, Sección 8ª Folio 201, Hoja nº B-563.253 (Inscripción 124) CIF: B-82387572

Tel: [phone]	Rafael Calvo 18
Fax: [phone]	28010 Madrid
www.bdo.es	España

Key Audit matters

Audit response

Valuation of property investments at financial year-end

The heading "Property Investments" in the attached balance sheet includes the carrying values at 31 December 2021 of the land and buildings owned by the Company in accordance with the detail shown in note 6 of the annual report.

Note 5.1 of the report describes the valuation criteria for these assets at financial year-end. For the application of these criteria, the Company's management has relied on valuations performed by an independent expert, which include important elements of judgment, in particular with regard to updated market values and discounted income.

The analysis of the reasonableness of the net carrying value of these assets at 31 December 2021 has been considered a key Audit matter.

We have performed, amongst others, the following audit procedures:

• Understanding and analysis of the policies and procedures followed by the Company's management for the valuation of property investments at financial year-end.
• Obtaining the valuation report at financial year-end 2021 for the property investments owned by the Company, prepared by an independent expert.
• Evaluation of the competence and independence of the external valuator, as well as the reasonableness of the valuation methodologies and the assumptions used, involving valuation experts in the engagement team to help with said analysis.
• Evaluation of the competence and independence of the auditor's expert mentioned in previous paragraph.
• Analysis of the reasonableness of the calculations made by the Company's management to determine, where appropriate, the impairment losses at 31 December 2021, based on the aforementioned valuation report.

- Evaluation of the suitability and adequacy of the information included by the Company's management in the annual report in relation to the valuation of these assets.

BDO Auditores, S.L.P., sociedad limitada española, inscrita en el Registro Oficial de Auditores de Cuentas nº S1.273, es miembro de BDO International Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas.

Registro Mercantil de Barcelona, Tomo 47.820, Sección 8ª Folio 201, Hoja nº B-563.253 (Inscripción 124) CIF: B-82387572

Tel: [phone]	Rafael Calvo 18
Fax: [phone]	28010 Madrid
www.bdo.es	España

Other information: Management report

The other information comprises exclusively the management report for financial year 2021, the formulation of which is the responsibility of the Company's management and does not form an integral part of the financial statements.

Our audit opinion on the financial statements does not cover the management report. Our responsibility regarding the information contained in the management report is defined in the regulation governing financial statement audit work, which establishes two distinct levels of responsibility:

1. Checking solely that certain information included in the Annual Corporate Governance Report and Annual Report on Remuneration of Directors, referred to Audit Act, has been provided in accordance with applicable regulations and, if not, report that fact. In this regard, the Annual Corporate Governance Report and Annual Report on Remuneration of Directors have been included by reference in the management report.
2. Evaluate and report on concordance of the rest of the information included in the management report and the financial statements, based on the knowledge of the Company obtained during the audit of the aforementioned financial statements, as well as evaluate and report on whether the content and presentation of the management report are in accordance with applicable regulations. If, based on the work we have performed, we conclude that material misstatements exist, we are required to report that fact.

Based on the work performed, as described in the previous paragraph, we have verified that the information contained in section a) above is provided in accordance with applicable regulations and the rest of the information contained in the management report agrees with that in the financial statements for financial year 2021 and its content and presentation is in accordance with the applicable regulations.

The responsibility of the management and the audit committee in respect of the financial statements

The management are responsible for formulating the accompanying financial statements, so that they give a true image of the assets, the financial situation and the results of the Company, in accordance with the regulatory framework on financial information applicable to the Entity in Spain, and of the internal control that they consider necessary to allow the preparation of the financial statements free of material misstatement, due to fraud or error.

In the preparation of the financial statements, the management are responsible for assessing the Company's ability to continue as a going concern, revealing, as appropriate, the matters related with a company in operation and using the accounting principle of a going concern except if the management intend to liquidate the Company or cease operations, or if there is no other realistic alternative.

The audit committee is responsible for supervising the process of preparing and presenting the financial statements.

BDO Auditores, S.L.P., sociedad limitada española, inscrita en el Registro Oficial de Auditores de Cuentas nº S1.273, es miembro de BDO International Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas.

Registro Mercantil de Barcelona, Tomo 47.820, Sección 8ª Folio 201, Hoja nº B-563.253 (Inscripción 124) CIF: B-82387572