Shopper Park Plus Nyilvánosan Muködo Reszvenytársaság : Group 2024 Q1 report

Németh Gábor

Bárány Kristóf Péter

Shopper Park Plus Plc.

Consolidated condensed non-audited interim financial statements prepared in accordance with International Financial Reporting Standards as adopted by the European Union

For the three months period ending 31.03.2024

(English translation of the original report)

Shopper Park Plus Plc. - Consolidated condensed non audited interim
	financial statements for the three months period ending 31.03.2024
Table of contents
Consolidated statement of comprehensive income for three months period ending 31.03.2024	3
Consolidated statement of financial position (balance sheet)	4
Consolidated statement of changes in equity for the three months period ending 31.03.2024	5
Consolidated cash flow statement for the three months period ending 31.03.2024	6
Condensed supplementary notes to the consolidated interim financial statements	7
1.	General background	7
2.	Other statements related to the interim financial statements	8
3.	Significant changes in the consodliated statement of financial position	8
4.	Segment information	9
5.	Fair valuation gains on investment property	10
6.	Rental income	11
7.	Net service result	11
8.	Administrative expenses	11
9.	Related parties	12
10.	Financial instruments	14
11.	Income taxes	15
12.	Valuation of financial instruments	15
13.	Contingent assets, contingent liabilities and commitments	19
14.	Events after the balance sheet date of the interim financial statements	19

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Shopper Park Plus Plc. - Consolidated condensed non audited interim financial statements for the three months period ending 31.03.2024

Consolidated statement of comprehensive income for three months period ending 31.03.2024

		Not audited 3	Not audited 3
Data in EUR	Note	months period	months period
		ending 31.03.2024	ending 31.03.2023
Rental income	6	5 976 998	5 354 177
Operating fees and other revenue	7	5 351 118	8 268 457
Operating and other property-related expenses	7	(6 275 493)	(9 446 226)
Gross result		5 052 623	4 176 408
Administrative expenses	8	(797 877)	(861 251)
Fair valuation gains on investment properties	5	2 797 771	852 044
Operating result		7 052 517	4 167 201
Financial income		283 157	524 970
Financial expenses		(2 677 247)	(2 870 627)
Profit before tax		4 658 427	1 821 544
Income tax	11	(270 128)	(113 021)
Result of the current period		4 388 299	1 708 523
Of which attributable to owners of the parent
company		4 388 299	1 708 523
Other comprehensive income to be reclassified to
profit or loss for the period
Fair value change of cash-flow hedge		390 772	(66 653)
Other comprehensive income not to be reclassified to
profit or loss for the period:
Result on financial instruments measured against
other comprehensive income		0	0
Other comprehensive income for the period		390 772	(66 653)
Overall comprehensive income		4 779 071	1 641 870
Of which attributable to owners of the parent
company		4 779 071	1 641 870
Earnings per share		0,34	0,18
Basic and diluted EPS for share type A		0,34	0,18
Basic and diluted EPS for share type B		0,34	0,18

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Shopper Park Plus Plc. - Consolidated condensed non audited interim financial statements for the three months period ending 31.03.2024

Consolidated statement of financial position (balance sheet)

	Data in EUR			Note			Not audited			31.12.2023
					31.03.2024
Assets
Fixed assets				292 158 189		288 659 065
Investment properties	5		292 150 000		288 650 000
Other fixed assets				8 189		9 065
Current assets				39 871 902		49 389 451
Lease and other accounts receivables				5 158 098		6 014 227
Current income tax receivable				399 009		354 962
Other receivables				3 574 489		3 449 003
Bank security accounts				9 444 962		9 932 613
Cash and cash equivalents				21 295 344		29 638 646
Total assets				332 030 091		338 048 516
Equity and liabilities
Equity				165 663 332		160 884 261
Registered capital				1 307 762		1 307 762
Capital reserve				130 521 762		130 521 762
Cash-flow hedge	12		(778 020)		(1 168 792)
Retained earnings				30 223 529		18 733 477
Profit of the period				4 388 299		11 490 052
Non-current liabilities				144 639 371		145 740 650
Long-term loans and borrowings	3		132 632 620		134 091 701
Tenant deposits				6 567 791		6 454 241
Deferred tax liabilities				4 896 784		4 646 884
Other non-current liabilities				542 176		547 824
Current liabilities				21 727 388	31 423 605
Short-term loans and borrowings	3		6 000 000		5 906 250
Accounts payables				1 449 736		397 457
Current income tax liabilities				204 307		204 006
Negative fair value of cash-flow hedge	12		778 020		1 168 792
Other current liabilities	3		13 295 325		23 747 100
Total liabilities				166 366 759		177 164 255
Total equity and liabilities				332 030 091		338 048 516

4

Consolidated statement of changes in equity for the three months period ending 31.03.2024.

	Data in EUR			Registered			Capital reserve			Cash-flow			Retained			Profit of the			Total
			capital					hedge			earnings			current year
	Balance on 31.12.2022	963 200		95 356 800		262 797		(327 699)	22 913 974		119 169 072
	Total comprehensive income for the year	0	0	0	0	11 490 052		11 490 052
	Total other comprehensive income for the year							(1 431 589)								(1 431 589)
	Transfer of previous year's profit to retained earnings	0	0	0	22 913 974		(22 913 974)		0
	Dividends paid to shareholders of the parent company	0	0	0	(3 852 800)		0	(3 852 800)
	Transaction cost related to the issue of capital
	instrument	0	(1 703 151)		0	0	0	(1 703 151)
	Increase in share capital and capital reserve	344 562		36 868 113		0	0	0	37 212 675
	Balance on 31.12.2023	1 307 762		130 521 762		(1 168 792)		18 733 477		11 490 052		160 884 261
	Total comprehensive income for the period	0	0	0	0	4 388 299		4 388 299
	Total other comprehensive income for the period							390 772								390 772
	Transfer of previous year's profit to retained earnings	0	0	0	11 490 052		(11 490 052)		0
	Closing balance on 31.03.2024	1 307 762		130 521 762		(778 020)	30 223 529		4 388 299		165 663 332

Consolidated cash flow statement for the three months period ending 31.03.2024

				Not audited 3			Not audited 3
	Data in EUR			months period			months period
			ending			ending
				31.03.2024			31.03.2023
Cash flow from operating activities:
Profit before tax	4 658 427		1 821 544
Corrections:
	Fair value of investment properties	(2 797 771)		(852 044)
	Currency conversion	181 310		94 360
	Increase / decrease of provisions	0	(2 600)
	Other corrections of the result	2 117 497		1 736 181
Changes in accounts receivables and other receivables	771 562		(5 527 167)
Increase / decrease in deposits and tenant deposits	113 550		67 971
Increase / decrease in restricted cash balances	487 651		412 933
Decrease/increase in account payables and other current payables	(9 405 144)		4 262 310
Income tax paid	(63 974)		(247 707)
Net cash flow from operating activities	(3 936 892)		1 765 781
Cash flow from investing activities
Acquisition of investment properties	(702 229)		(537 956)
Net cash flow from investing activities	(702 229)	(537 956)
Cash flow from financing activities
Repayment of loans/borrowings to 3rd parties	(1 406 250)		(1 312 500)
Interest paid	(2 116 621)		(1 736 042)
Net cash flow from financing activities	(3 522 871)		(3 048 542)
Net change in cash and cash equivalents	(8 161 992)		(1 820 717)
Cash and cash equivalents at the beginning of the year	29 638 646		4 491 793
Exchange rate gains/ (losses) on cash and cash equivalents	(181 310)		(94 360)
Period-end balance of cash and cash equivalents	21 295 344		2 576 716

Shopper Park Plus Plc. - Consolidated condensed non audited interim financial statements for the three months period ending 31.03.2024

Condensed supplementary notes to the consolidated interim financial statements

1. General background

Name of the parent company:	Shopper Park Plus Plc.
Tax number:	27033498-2-44
Registered seat:	1015. Budapest, Batthyány street 3. ground floor 1.
Company registration number:	01-10-140433
Website:	www.shopperparkplus.hu

Shopper Park Plus Plc. (SPP, Parent Company or Company) was incorporated on 9. July, 2019 as Graduw Invest Zrt. The name of the Company was changed to Shopper Park Plus Zrt. on 23 January 2023. On 27.10.2023, the Company was transformed into a Public Limited Company, thus changing its name to Shopper Park Plus Plc., its ordinary shares are listed in the Premium category of the Budapest Stock Exchange. Its share capital is EUR 1,307,762.

The majority controlling shareholder of the Parent Company is Penta CEE Holding Ltd. from 20. December 2021, with its registered office at 1015. Budapest, Batthyány street 3. ground floor 1, Hungary. The Final Parent company of the Company is Adventum Penta Fund SCA SICAV-RAIF.

On 31 March 2024 the share capital of the Company consisted of 11,577,618 dematerialised ordinary shares of series A with a nominal value of EUR 0.1 each, representing equal and identical membership rights, and 1,500,000 dematerialized preference shares of series B with a nominal value of EUR 0.1 each, representing equal and identical membership rights. Series B voting preference shares carry ten times the voting rights of Series A shares in certain decisions. No convertible or exchangeable shares were issued in the current period or in prior financial years. There were no transactions to acquire own shares in the current period or in prior financial years.

Registered principal activity of the Company: 6810 Sale and purchase of own real estate.

The group is active in the development, management and renovation of commercial real estates. The Group develops its current properties with an intention to letting them on the basis of operating leases. However, this does not exclude the possibility of selling them in the future as part of the group's ongoing business activities.

Representatives of the Company:
Bárány Kristóf Péter	Marton András	Németh Gábor
1011 Budapest	1124 Budapest	1118 Budapest
Ponty street 6.	Nárcisz street 56. 2. floor 5.	Radóc street 10.
Joint representation right	Joint representation right	Joint representation right

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Shopper Park Plus Plc. - Consolidated condensed non audited interim financial statements for the three months period ending 31.03.2024

Transformation into a regulated real estate investment trust

The Company was registered by the National Tax and Customs Administration on 8. January, 2022, with effect from 1 January, 2022, as a Regulated Real Estate Investment Pre-Company and as a Regulated Real Estate Investment Trust on 12 January 2024, with effect from 26 October 2023.

Shopper Park Plus Plc, as a Regulated Real Estate Investment Trust, is exempt from paying corporate tax and local business tax.

There are no regulated real estate investment project companies among the companies directly or indirectly owned by the Company.

2. Other statements related to the interim financial statements

These financial statements were prepared in accordance with International Accounting Standard 34 as adopted by the European Union. No new standard has been applied in the preparation of the interim financial statements, because it does not have a material impact on the financial statements.

The accounting policies applied in the interim financial statements are consistent with those applied in the comparative period and in the most recently published financial statements of 2023. The accounting policies presented have not changed from those applied at the year end. The interim financial statements should be read in conjunction with the previous year's financial statements.

There were no changes in the estimates used compared to the reference period.

There were no changes in the structure of the group in 2024.

No ordinary shares were issued by the Company during the period presented.

The interim financial statements are prepared on a going concern basis.

3. Significant changes in the consodliated statement of financial position

Loans and borrowings

The balance of loans and borrowings (short and long together) at 31.12.2023 was EUR 139 997 951, which decreased to EUR 138 632 620 at 31.03.2024. The decrease is due to the repayment of the principal of the bank loan.

Other current liabilities

The balance of other non-current liabilities at 31.12.2023 was EUR 23 747 100, which decreased to EUR 13 295 325 at 31.03.2024. The main reason for the decrease is the payment of retained purchase prices of the properties.

Investments

During the 3-month period under review, the cost of improvements to buildings amounted to EUR 702 229.

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Shopper Park Plus Plc. - Consolidated condensed non audited interim financial statements for the three months period ending 31.03.2024

	Not audited 3 months	Not audited 3 months
Data in EUR	period ending	period ending
	31.03.2024	31.03.2023
Amounts capitalised on investment property	702 229	537 956
-of which leasing fee	44 841	36 647

4. Segment information

Segments are defined on the basis of the geographical breakdown of the Group's properties in Hungary and the Czech Republic.

The distribution in 2024 is as follows:

			Group level
Data in EUR	Hungary	Czechia	expenses	Total
			and income
Rental income	4 343 347	1 633 651		5 976 998
Operating fees and other revenue	4 507 072	844 046		5 351 118
Operating and other property-related expenses	(5 053 240)	(1 222 253)		(6 275 493)
Gross result	3 797 179	1 255 444		5 052 623
Administrative expenses			(797 877)	(797 877)
Fair valuation gains on investment properties	1 820 344	977 427		2 797 771
Operating result	5 617 523	2 232 871	(797 877)	7 052 517
Financial income			283 157	283 157
Financial expenses			(2 677 247)	(2 677 247)
Profit before tax	5 617 523	2 232 871	(3 191 967)	4 658 427
Income tax	(20 228)	(249 900)		(270 128)
Result of the current year	5 597 295	1 982 971	(3 191 967)	4 388 299
Assets classifiable to segments
Investment properties	220 620 000	71 530 000		292 150 000
Lease and other accounts receivables	4 934 800	223 298		5 158 098
Current income tax receivable	0	399 009		399 009
Other receivables	2 910 813	663 677		3 574 489
Cash and cash equivalents	20 348 672	946 671		21 295 344
Liabilities classifiable to segments
Tenant deposits	5 956 213	611 578		6 567 791
Deferred tax liabilities	0	4 896 784		4 896 784
Accounts payables	1 367 144	20 481		1 387 625
Current income tax liabilities	204 307	0		204 307

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Shopper Park Plus Plc. - Consolidated condensed non audited interim financial statements for the three months period ending 31.03.2024

The distribution in 2023 is as follows:

			Group level
Data in EUR	Hungary	Czechia	expenses and	Total
			income
Rental income	4 093 586	1 260 591		5 354 177
Operating fees and other revenue	6 914 961	1 353 496		8 268 457
Operating and other property-related expenses	(7 742 926)	(1 703 300)		(9 446 226)
Gross result	3 265 621	910 786		4 176 408
Administrative expenses			(861 251)	(861 251)
Fair valuation gains on investment properties	624 082	227 962		852 044
Operating result	3 889 703	1 138 748	(861 251)	4 167 201
Financial income			524 970	524 970
Financial expenses			(2 870 627)	(2 870 627)
Profit before tax	3 889 703	1 138 748	(3 206 908)	1 821 544
Income tax	(21 219)	(91 802)		(113 021)
Result of the current year	3 868 484	1 046 946	(3 206 908)	1 708 523
Assets classifiable to segments
Investment properties	210 650 000	70 385 000		281 035 000
Lease and other accounts receivables	9 257 223	1 597 484		10 854 707
Current income tax receivable	0	71 103		71 103
Other receivables	11 649 150	22 314		11 671 464
Cash and cash equivalents	1 724 819	851 897		2 576 716
Liabilities classifiable to segments
Tenant deposits	5 377 331	639 338		6 016 669
Deferred tax liabilities	0	3 455 619		3 455 619
Accounts payables	1 157 732	535 714		1 693 446
Current income tax liabilities	26 551	0		26 551
Provisions	0	152 062		152 062

5. Fair valuation gains on investment property

When determining the fair value of investment properties - like when preparing the 2023 financial statements - the Group has established an independent valuer of real estate, CBRE Kft. The fair value determined by the independent valuer for all properties is the same as the value stated in the financial statements.

The fair value of investment properties has increased by 1.2% since the end of 2023.

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