Aedifica N.V., - Jaarlijks persbericht: jaarresultaten 2021

PRESS RELEASE

Regulated information

23 February 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')

Annual press release: 2021 annual results

• • EPRA Earnings* amounted to €151.5 million as of 31 December 2021 (+30% compared to 31 December 20201), or €4.35/share
  • Rental income increased to €232.1 million as of 31 December 2021 (+24% compared to 31 December 2020)
  • Confirmation of the proposed dividend of €3.40/share (gross)
  • Real estate portfolio* of approx. €4.9 billion as of 31 December 2021, an increase of approx. €1.1 billion (+28%) compared to 31 December 2020, the end of the previous financial year
  • 587 healthcare sites for 44,000 users across 8 countries:
  • • €1,213 million in Belgium (83 sites)
    • €1,058 million in Germany (101 sites)
    • €860 million in Finland (198 sites)
    • €822 million in the United Kingdom (102 sites)
    • €564 million in the Netherlands (72 sites)
    • €92 million in Ireland (9 sites)
    • €78 million in Sweden (22 sites)
  • Investment programme of €767 million in construction and renovation projects. In 2021, 41 projects were delivered for a total investment budget of approx. €289 million
  • Weighted average unexpired lease term of 20 years and occupancy rate of 100%
  • More than €330 million raised on capital markets through a capital increase via an accelerated private placement (€286 million) and 2 contributions in kind
  • 42.6% debt-to-assets ratio as of 31 December 2021
  • First issuer credit rating from S&P Global: BBB with a stable outlook
  • Successful issuance of inaugural €500 million Sustainability Bond
  • Outlook for the 2022 financial year: proposed dividend of €3.70/share (gross)
• 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 annual press release 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 Appendix 5.

1 In order to allow comparison with the previous period (due to the extension of the 2019/2020 financial year), the figures as of 31 December 2020 were derived on a 12- month basis (with the exception of the denominators (IAS 33) which were recalculated for each period).

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PRESS RELEASE

Regulated information

23 February 2022 - before opening of markets

Under embargo until 07:30 CET

Consolidated key figures & EPRA performance indicators2	31/12/2021	31/12/2020
		(12 months -
		restated period)
Property-related key figures
Fair value of real estate portfolio* (in € million) 3	4,896	3,815
Number of properties	587	496
Gross yield based on fair value (in %)	5.5%	5.8%
EPRA Net Initial Yield (NIY) (in %)	4.9%	5.2%
EPRA Topped-up NIY (in %)	5.1%	5.3%
Occupancy rate (in %)	100%	100%
EPRA Vacancy Rate (in %)	0.5%	0.2%
WAULT (in years)	20	19
Like-for-like rental growth (group currency, in %)	1.9%	1.0%
Financial key figures
Rental income (in € million)	232.1	187.5
EPRA Earnings* (in € million)	151.5	116.2
Net result (owners of the parent) (in € million)	281.8	103.9
EPRA Cost Ratio (including direct vacancy costs)* (in %)	16.7%	19.2%
EPRA Cost Ratio (excluding direct vacancy costs)* (in %)	16.7%	19.2%
Debt-to-assets ratio (in %)	42.6%	43.2%
Average cost of debt (in %)	1.4%	1.5%
Average cost of debt (incl. commitment fees, in %)	1.6%	1.7%
Weighted average maturity of drawn credit lines (in years)	5.7	4.4
Hedge ratio (in %)	90.3%	72.9%
Key figures per share
EPRA Earnings* (in €/share)	4.35	4.23
Net result (owners of the parent) (in €/share)	8.10	3.78
EPRA NRV* (in €/share)	88.36	74.01
EPRA NTA* (in €/share)	76.05	62.92
EPRA NDV* (in €/share)	72.35	58.70

1. In order to allow comparison with the previous period (due to the extension of the 2019/2020 financial year), the figures as of 31 December 2020 were derived on a 12-month basis (with the exception of the denominators (IAS 33) which were recalculated for each period.
2. 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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PRESS RELEASE

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23 February 2022 - before opening of markets

Under embargo until 07:30 CET

1. Summary of the activities of the 2021 financial year

In 2021, Aedifica has shown that it continues to live up to its ambitions as a leading European healthcare real estate investor. The international expansion continued unabatedly with numerous completions and acquisitions across the eight European countries in which the Group operates. The market's confidence in Aedifica's growth strategy was not only reflected in three capital increases that raised over €330 million, but also in the successful issuance of an inaugural €500 million Sustainability Bond supported by an investment-grade S&P credit rating, strengthening the Group to continue its growth momentum and sustainability efforts.

EUROPEAN EXPANSION

In 2021, Aedifica reaffirmed its international ambitions by implementing its first investments in Ireland and Spain. Throughout the year, the Group carried out investments and announced new projects of approx. €943.5 million in 100 care properties. Furthermore, a total of 41 projects from the investment programme amounting to approx. €289 million were completed.

All the investments carried out in 2021 have increased Aedifica's real estate portfolio to 587 sites with a capacity of more than 32,700 residents and over 11,000 children. The fair value of the real estate portfolio* increased by approx. €1,082 million (+28%)

to €4,896 million (compared to €3,815 million at the beginning of the financial year).

2021 investment total: €944m

	€56m
€110m	€95m

In addition, as of 31 December 2021, the	€63m
Group has a total investment programme in	€179m
pre-let	development	projects	and	€356m
acquisitions in progress of	approx.	€84m

€767 million (see Appendix 4). Considering
this investment programme, Aedifica's total
portfolio is expected to reach the €5.5 billion	€3m
mark by the end of 2024.

SOUND RESULTS

Aedifica focuses not only on investments and growth but also on managing its existing real estate assets. The result of this effort in 2021 is reflected in an excellent rental income of €232.1 million (€187.5 million a year earlier, an increase of approx. 24%). The EPRA Earnings* are above budget and amount to €151.5 million, i.e. €4.35 per share. Aedifica's total profit amounts to €282 million. 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. Based on these results, Aedifica's Board of Directors will propose to the Annual General Meeting on 10 May 2022 a gross dividend of €3.40 per share (subject to a reduced withholding tax of 15%).

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SUSTAINABLE GROWTH

Aedifica is paying more attention than ever to sustainability and puts its objectives into practice by investing in the (re)development and renovation of care properties (e.g. nearly zero-energy buildings in Ireland and the Netherlands). The Group's ambitious sustainability strategy is paying off, as evidenced by the scores of different ESG assessments. The GRESB score, the Green Star Rating and the MSCI rating all increased significantly, while the Sustainalytics Risk Rating continued to decrease and the Group's Sustainability Report was awarded an EPRA sBPR Gold Award for the second year in a row. In addition, Aedifica issued its first Sustainability Bond for a total size of €500 million, bringing the Group's green financing to 28%.

FUTURE GROWTH

In 2021, Aedifica once again proved that it can deliver on its growth ambitions even in a volatile macroeconomic environment. The Group intends to continue along this path in 2022 as well. In the new year, Aedifica already demonstrated its ambitions in terms of international growth with the completion of a series of projects in the Netherlands, Germany and Finland. In addition, various new investment opportunities are being analysed. Even without taking into account new investments, the Group's future growth is assured by its extensive investment programme. Through the combination of new investments and existing agreements on the development, acquisition, renovation, expansion and redevelopment of numerous sites, Aedifica can build up a portfolio of high-quality buildings that offer attractive net returns and further strengthen its position as a European market reference in listed healthcare real estate.

For the 2022 financial year, EPRA Earnings* are expected to amount to €4.77 per share. The Board of Directors anticipates a 9% increase in the gross dividend to €3.70 per share.

Seniorenzentrum Alte Zwirnerei in Gersdorf (DE)

Part of the portfolio transaction of 19 care homes in Germany, announced in April 2021

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PRESS RELEASE

Regulated information

23 February 2022 - before opening of markets

Under embargo until 07:30 CET

2. Important events

2.1. Investments, completions and disposals in 2021

• €943.5 million in new investments and developments

Aedifica carried out investments and announced new projects in 100 sites in Belgium, Germany, the Netherlands, the United Kingdom, Finland, Sweden, Ireland and Spain for a total volume of approx. €943.5 million.

Name

Type

Location

Date

Investment

Pipeline

Gross

Completion/

Lease

Operator

(€ million) 1

(€ million)

rental

implementation

2

yield

		(approx. %)
Belgium	20	64

8 Orpea care homes	Renovation & redevelopment	Brussels	28/05/2021	-	47	In line with	2024-2027	15-year lease	Orpea
	(focus on sustainability)					general BE		extension -
						rental yield		NNN
Domaine de la Rose	Acquisition	Durbuy	29/06/2021	20	-	4.5%	-	27 yrs - NNN	My-Assist
Blanche
Résidence le Douaire	Forward purchase	Anderlues	10/10/2021	-	17	4.5%	Q1 2024	27 yrs - NNN	Vulpia
Germany				286	70
Azurit portfolio	Acquisition	Germany	31/03/2021	245	-	5%	-	25 yrs - NN	Azurit
(19 sites)
5 care campuses that are	Acquisition & development	Germany	29/06/2021	8	70	5%	2022-2023	30 yrs - NNN	Master lease
part of the 2nd									with Specht
framework agreement									Gruppe
with Specht Gruppe
Haus Wedau &	Acquisition	Duisburg	26/11/2021	18	-	5.5%	-	25 yrs - NN	Procuritas
Haus Marxloh
Seniorenzentrum	Acquisition	Borna	01/12/2021	15	-	5%	-	25 yrs - NN	Azurit
Borna
Netherlands				23.5	39
Stepping Stones	Acquisition & development	Blaricum	26/01/2021	1	3	5.5%	Q2 2022	NNN	Korian
Blaricum 3									Netherlands
Martha Flora	Acquisition & development	Oegstgeest	25/02/2021	2	5	5.5%	Q2 2022	25 yrs - NNN	Martha Flora
Oegstgeest
Zuyder Haven Oss &	Acquisition	Oss &	30/03/2021	8	-	6%	-	WAULT 12 yrs	Zorghaven
Buyten Haven		Dordrecht						- NN	Groep
Dordrecht
Martha Flora Breda	Acquisition & development	Breda	28/05/2021	2.5	5	5.5%	Q4 2022	25 yrs - NNN	Martha Flora
De Volder Staete	Acquisition & development	Almere	06/07/2021	1.5	10	5.5%	Q4 2022	25 yrs - NNN	Amado Zorg
									Stichting
									Pinahuis
Alphen Raadhuisstraat	Acquisition & development	Alphen a/d Rijn	16/12/2021	3	4	5.5%	Q4 2022	15 yrs - NN	Stichting
4									Fundis
Waarder Molendijk 4	Acquisition & development	Waarder	16/12/2021	3	5	5.5%	Q2 2023	15 yrs - NN	Stichting
									Fundis
Tiel Bladergroenstraat	Acquisition & development	Tiel	16/12/2021	2.5	7	5.5%	Q2 2023	20 yrs - NNN	Saamborgh
United Kingdom 5				80	30
Abbot Care Home	Acquisition	Harlow	14/01/2021	45	-	5.5%	-	30 yrs - NNN	Excelcare
Stanley Wilson Lodge		Saffron Walden
St Fillans Care Home		Colchester
Shipley Canal Works	Acquisition & development	Shipley	05/03/2021	2	8	6%	Q3 2022	30 yrs - NNN	Burlington
Aylesbury Martin Dalby	Acquisition & development	Aylesbury	17/05/2021	2	10	7%	Q4 2022	30 yrs - NNN	Maria
									Mallaband
Wellingborough	Acquisition & development	Wellingborough	02/07/2021	3	12	5.5%	Q1 2022	35 yrs - NNN	Halcyon Care
Glenvale Park									Homes
The Uplands	Acquisition	Shrewsbury	25/10/2021	14	-	6.5%	-	30 yrs - NNN	Bondcare
Corby Priors Hall Park	Development	Corby	26/11/2021	14	-	5.5%	-	30 yrs - NNN	Halcyon Care
6									Homes
Finland				29.5	65
Jyväskylä Haukankaari	Development	Jyväskylä	28/01/2021	-	3	6%	Q1 2022	20 yrs - NN	Rinnekoti
Turku Herttuankulma	Development	Turku	28/01/2021	-	6	6%	Q4 2022	20 yrs - NN	Ikifit
Espoo	Acquisition	Espoo	01/02/2021	4	-	6.5%	-	20 yrs - NN	Pihlanjantertut
Rajamännynahde									Ry
Laukaa Peurungantie	Acquisition	Laukaa	19/02/2021	4	-	6.5%	-	15 yrs - NN	Peurunka Oy
Tampereen	Development	Tampere	15/03/2021	-	3	6.5%	Q1 2022	15 yrs - NN	Tampereen
Haiharansuu									ensija
									turvakoti
Kokkola Ilkantie	Acquisition	Kokkola	28/06/2021	12.5	-	7%	-	WAULT 8 yrs -	Multiple
Kokkola Metsämäentie								NN	tenants
Kokkola Kärrytie
Kangasala Vällintie	Development	Kangasala	28/06/2021	-	2.5	6.5%	Q4 2022	15 yrs - NN	Pilke
Oulu Juhlamarssi	Development	Oulu	28/06/2021	-	7	6.5%	Q3 2022	15 yrs - NN	Attendo
Kotka Särmääjänkatu 7	Development	Kotka	31/08/2021	3	-	6.5%	-	15 yrs - NN	Autismisäätiö
Kuopio Opistotie	Development	Kuopio	06/09/2021	2	11	6%	Q4 2022	15 yrs - NN	Norlandia
Helsinki Ensikodintie	Redevelopment	Helsinki	30/09/2021	-	12	6%	Q4 2022	30 yrs - NN	Helsingin
									Ensikoti

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