Aedifica : N.V., - Halfjaarlijks financieel verslag 2022

Half year financial report

Regulated information

5 August 2022 - before opening of markets

Under embargo until 07:30 CET

AEDIFICA

Public limited liability company

Public regulated real estate company under Belgian law

Office: Rue Belliard 40 (box 11), 1040 Brussels Enterprise number: 0877.248.501 (RLE Brussels) (the 'Company')

Half year financial report 2022

Robust operational performance driving strong results

• EPRA Earnings* amounted to €85.9 million (+27% compared to 30 June 2021), or €2.36/share
• Rental income increased to €131.0 million (+21% compared to 30 June 2021)
• 4.2% increase in rental income on a like-for-like basis in the first six months of the year
• Weighted average unexpired lease term of 20 years and occupancy rate of 100%

Real estate portfolio* of nearly €5.3 billion as of 30 June 2022

• Increase of approx. €381 million compared to 31 December 2021 (+8%)
• 599 healthcare sites for approx. 44,300 users across 8 countries
• Investment programme of €820 million in pre-let development projects and acquisitions in progress. Over the 1st half, 14 projects were delivered for a total investment budget of approx. €63 million

Reinforcing capital structure and strong liquidity

• 41.0% debt-to-assets ratio as of 30 June 2022
• €309 million raised on capital markets through a capital increase via an accelerated private placement (€254 million) and two contributions in kind
• New long-term bank financing concluded amounting to €421 million, of which €258 million is linked to sustainability KPIs
• BBB investment-grade credit rating with a stable outlook reaffirmed by S&P

Outlook

• • Estimated EPRA Earnings* for the 2022 financial year slightly increased to €177 million (previously €175 million)
  • Considering the increased numbers of shares following the recent capital increases, the EPRA Earnings* per share are estimated at €4.64/share (previously €4.77/share)
  • The proposed dividend of €3.70/share (gross) is reconfirmed
• Alternative Performance Measure (APM) in accordance with ESMA (European Securities and Market Authority) guidelines published on 5 October 2015. Aedifica has used Alternative Performance Measures in accordance with ESMA guidelines in its financial communication for many years. Some of these APMs are recommended by the European Public Real Estate Association (EPRA) and others have been defined by the industry or by Aedifica in order to provide readers with a better understanding of the Company's results and performance. The APMs used in this half year financial report are identified with an asterisk (*). Performance measures defined by IFRS standards or by Law are not considered to be APMs, neither are those that are not based on the consolidated income statement or the balance sheet. The APMs are defined, annotated and connected with the most relevant line, total or subtotal of the financial statements, in Note 15 of the Condensed Consolidated Financial Statements.

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Half year financial report

Regulated information

5 August 2022 - before opening of markets

Under embargo until 07:30 CET

Consolidated key figures & EPRA performance indicators

Property-related key figures	30/06/2022	31/12/2021
Fair value of real estate portfolio* (in € million) 1	5,277	4,896
Number of properties	599	587
Gross yield based on fair value (in %)	5.4%	5.5%
EPRA Net Initial Yield (NIY) (in %)	4.9%	4.9%
EPRA Topped-up NIY (in %)	5.1%	5.1%
Occupancy rate (in %)	100%	100%
WAULT (in years)	20	20
Like-for-like rental growth (group currency, in %)	4.2%	1.9%
	30/06/2022	30/06/2021
EPRA Vacancy Rate (in %)	0.5%	0.4%
Financial key figures	30/06/2022	31/12/2021
Debt-to-assets ratio (in %)	41.0%	42.6%
Average cost of debt (in %)	1.3%	1.4%
Average cost of debt (incl. commitment fees, in %)	1.4%	1.6%
Weighted average maturity of drawn credit lines (in years)	5.2	5.7
Hedge ratio (in %)	83.2%	90.3%
	30/06/2022	30/06/2021
Rental income (in € million)	131.0	108.3
EPRA Earnings* (in € million)	85.9	67.4
Net result (owners of the parent) (in € million)	239.1	112.8
EPRA Cost Ratio (including direct vacancy costs)* (in %)	17.2%	17.4%
EPRA Cost Ratio (excluding direct vacancy costs)* (in %)	17.2%	17.4%
Key figures per share	30/06/2022	31/12/2021
EPRA NRV* (in €/share)	90.3	85.1
EPRA NTA* (in €/share)	78.4	72.8
EPRA NDV* (in €/share)	80.8	69.1
	30/06/2022	30/06/2021
EPRA Earnings* (in €/share)	2.36	2.02
Net result (owners of the parent) (in €/share)	6.57	3.39

Seniorenhaus Lessingstrasse in Wurzen (DE)

Care home acquired in February 2022

1 Including marketable investment properties, assets classified as held for sale*, development projects and the right of use related to plots of land held in 'leasehold' in accordance with IFRS 16.

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Half year financial report

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Under embargo until 07:30 CET

1. Interim Management Report2

1. Summary of the activities since 1 January 2022

In the first half of 2022, Aedifica has shown that - despite the increased volatility on the financial markets - it continues to live up to its ambitions as a leading European healthcare real estate investor. The international expansion continued unabatedly with numerous acquisitions and completions across Europe. The market's confidence in Aedifica's growth strategy was reflected in three successful capital increases that raised approx. €309 million, strengthening the Group to continue its growth momentum. Aedifica's ability to deliver these results despite a volatile macroeconomic environment due to high inflation, rising interest rates and the current geopolitical situation demonstrates the resilience of the healthcare real estate sector, which continues to require additional capacity due to an ageing European population.

EUROPEAN EXPANSION

Aedifica's ambitions were reaffirmed as the Group announced investments and developments in 42 sites across Europe for approx. €527 million (YTD). Furthermore, a total of 14 projects from the investment programme amounting to approx. €63 million were completed during the first half.

At the end of June, Aedifica's real estate portfolio has increased to 599 sites with a capacity of approx. 33,700 residents and approx. 10,600 children. The fair value of the real estate portfolio* increased by

approx. €381 million (+8%) to €5,277 million (compared to €4,896 million at the beginning of the financial year).

In addition, as of 30 June 2022, the Group has a total investment programme in pre-let development projects and acquisitions in progress of approx. €820 million (see section 3.2 of the property report). Considering this investment programme, Aedifica's total portfolio is expected to reach the €5.9 billion mark by the end of 2024.

2022 YTD investment total: €527m

	€23m
€185m	€65m
€24m
€119m
	€8m
€90m

€13m

DEFENSIVE FINANCIAL PROFILE

Aedifica's growth strategy continues to enjoy market confidence, as evidenced by the €254 million capital increase via accelerated bookbuilding (ABB) that was completed in June 2022 and which drew a great deal of interest from international institutional investors. This strengthened Aedifica's equity position and reduced the consolidated debt-to-assets ratio to 41.0% as at 30 June 2022. Moreover, financial liquidity was reinforced by contracting €421 million in new long-term bank financing. In July, S&P reaffirmed its BBB investment-grade rating with a stable outlook, reflecting the strength of the Group's balance sheet.

2 This Interim Management Report is an update of the Management Report issued as part of the 2021 Annual Financial Report. Only the significant changes that have taken place since publication of the Annual Financial Report are presented here.

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SOUND RESULTS

Aedifica focuses not only on investments and growth but also on managing its existing real estate assets. The result of this effort is reflected in an excellent rental income of €131.0 million (€108.3 million as at 30 June 2021, an increase of approx. 21%). The EPRA Earnings* are slightly above budget and amount to €85.9 million (€67.4 million as at 30 June 2021, an increase of approx. 27%), i.e. €2.36 per share. Aedifica's total profit amounts to €239.1 million, mainly driven by an increase in the fair value of the portfolio. Aedifica demonstrated its ability to grow the company while maintaining a strong focus on financial performance through an increase in earnings per share and a sound debt-to-assets ratio. Taking into account the volatile macroeconomic environment and the increased number of shares following the recent capital increase, these sound results allow Aedifica's Board of Directors to reaffirm the proposed gross dividend of €3.70 per share for the 2022 financial year and adjust the estimated EPRA Earnings* to €4.64 per share.

SUSTAINABLE GROWTH

Aedifica is paying more attention than ever to sustainability. In its recently published 2021 CSR report the Group stepped up its ambitions by developing a new CSR framework, committing to more ambitious short-, medium- and long-term CSR goals, and outlining how it will achieve net zero emissions across its portfolio by 2050 in a net zero carbon pathway. Matching its words with deeds, Aedifica has developed a green lease annex (see section 6.2). This common frame of reference will allow the Group and its operators to share data and best practices, thus improving the environmental performance of the portfolio. In addition, with 61% of new bank financing contracted in 2022 linked to sustainability KPIs, Aedifica underlines its wish to integrate ESG criteria into its financial policy. Moreover, the success of its ambitious CSR strategy is evidenced by the upgrade of the Company's MSCI rating from BBB to A.

Saamborgh Almere Buiten in Almere (NL)

Care home completed in February 2022

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2. Important events

2.1. Investments, completions and disposals during the 1st half

• €424 million in new investments and developments

During the first half of 2022, Aedifica carried out investments and announced new projects in 37 sites for a total volume of approx. €424 million.

Name	Type	Location	Date	Investment	Pipeline	Gross	Completion/	Lease	Operator
				(€ million) 1	(€ million) 2	rental yield	implementation
						(approx. %)
Belgium				11	10
Résidence Véronique	Acquisition &	Somme-Leuze	17/05/2022	11	10	4.5%	Q4 2024	27 yrs - NNN	Vulpia
	extension
Germany				7.5	-
An der Therme	Acquisition	Mühlhausen	29/06/2022	7.5	-	5%	-	WAULT 14 yrs	Alloheim
								- NN
Netherlands				12	2.5
Oosterbeek Warm Hart 3	Acquisition &	Oosterbeek	01/04/2022	4.5	2.5	5.5%	Q4 2022	20 yrs - NNN	Warm Hart
	development
CosMed Klinkiek 3	Acquisition	Bosch en Duin	25/05/2022	7.5	-	6%	-	15 yrs - NNN	Sandstep Healthcare
United Kingdom 4				83.5	90.5
Market Drayton Great Hales	Development	Market Drayton	17/02/2022	-	16	6%	Q1 2023	30 yrs - NNN	MMCG
Rawdon Green Lane	Acquisition &	Rawdon	24/03/2022	12	22.5	5.5%	Q3 2022	35 yrs - NNN	Danforth
Northampton Thompson	development	Northampton							Halcyon Care
Way									Homes
Dawlish	Acquisition &	Dawlish	01/04/2022	2.5	12.5	6.5%	Q4 2023	30 yrs - NNN	MMCG
	development
Channel Islands portfolio	Acquisition &	Jersey & Isle of	01/04/2022	54	15	6%	-	25 yrs - NNN	LV Care Group
(6 care homes)	extension	Man
Sleaford Ashfield Road	Acquisition &	Sleaford	31/05/2022	3	10	5.5%	Q4 2023	35 yrs - NNN	Torsion Care
	development
Hooton Road	Acquisition &	Hooton	01/06/2022	2	14.5	6%	Q1 2024	30 yrs - NNN	Sandstone Care
	development								Group
Creggan Bahn Court	Acquisition	Ayr	20/06/2022	10	-	6%	-	30 yrs - NNN	MMCG
Finland				-	65	6%
Äänekoski Ääneniementie	Development	Äänekoski	16/03/2022	-	2		Q4 2022	20 yrs - NN	Hoitokoti
									Ääneniemen Helmi
Liminka Saunarannantie 5	Development	Liminka	16/03/2022	-	2.5		Q3 2022	15 yrs - NN	Pilke
Kerava Lehmuskatu	Development	Kerava	16/03/2022	-	7.5		Q4 2022	20 yrs - NN	Municipality
Jyväskylä Ailakinkatu	Extension	Jyväskylä	22/03/2022	-	2		Q4 2022	15 yrs - NN	Municipality
Tampere Teräskatu	Development	Tampere	24/03/2022	-	8.5		Q4 2023	20 yrs - NN	Municipality
Helsinki Käräjätuvantie	Development	Helsinki	20/04/2022	-	8.5		Q4 2024	20 yrs - NN	Municipality
Helsinki Kutomokuja	Development	Helsinki	20/04/2022	-	8.5		Q4 2024	20 yrs - NN	Municipality
Oulu Jahtivoudintie 6	Acquisition &	Oulu	30/04/2022	-	18.5		Q3 2023	25 yrs - NN	Municipality
	extension
Valkeakoski Juusontie	Development	Valkeakoski	04/05/2022	-	2		Q1 2023	15 yrs - NN	Aurinkosilta
Oulu Pateniemenranta	Development	Oulu	06/05/2022	-	2		Q3 2023	15 yrs - NN	Pilke
Rovaniemi Rakkakiventie	Development	Rovaniemi	19/05/2022	-	3		Q1 2023	15 yrs - NN	Palvelukoti
									Kotipetäjä
Sweden 4				5.5	18	6%
Nynäshamn Källberga	Acquisition &	Nynäshamn	21/02/2022	2	16.5		Q4 2023	15 yrs - NN	Raoul
	development								Wallenbergskolan
Strängnäs Bivägen	Acquisition &	Strängnas	28/02/2022	0.5	1.5		Q1 2023	15 yrs - NN	Humana
	development
Staffanstorp Borggårdsallén	Acquisition	Staffanstorp	01/04/2022	3	-		-	14 yrs - NN	Municipality
Ireland				53	65.5
Dublin Crumlin	Acquisition &	Dublin	16/03/2022	5.5	26.5	5.5%	Q4 2023	25 yrs - NNN	Bartra Healthcare
	development
Silver Stream portfolio	Acquisition subject	Dundalk,	01/04/2022	35	22	5%	Over the next few	25 yrs -NNN	Silver Stream
(3 care homes)	to outstanding	Duleek,					weeks		Healthcare
	conditions	Riverstick
Dunshaughlin Business Park	Acquisition &	Dunshaughlin	11/05/2022	1.5	17	5%	Q4 2023	25 yrs - NNN	Grace Healthcare
	development
Craddock House Nursing	Acquisition	Naas	17/05/2022	11	-	5.5%	-	20 yrs -NNN	Virtue
Home
Total				172.5	251.5

1. The amounts in this column include the contractual value of the plots of land and the existing buildings. These investments generate rental income (sites under construction also generate limited rental income (except in Finland, Sweden and Spain), in particular for the plots of land that have already been acquired).
2. The amounts in this column are the budgets for development projects that Aedifica will finance or acquisitions of which the conditions precedent will be fulfilled in the course of the coming months. The development projects are listed in the overview of the investment programme (see section 3.2 of the property report).
3. This project is being developed within the joint venture with Dunavast-Sonneborgh, in which Aedifica holds a 75% stake.
4. Amounts in £ and SEK were converted into € based on the exchange rate of the transaction date.
5. This project has already been completed after 30 June 2022.
6. The acquisition of the existing building (€9 million) was completed on 1 August 2022.

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