Next Re SIIQ S p A : Annual financial report 2022 (Courtesy translation)

Annual Financial

Report

The Annual financial report 2022 has been translated into the English language solely for the convenience of international readers. The version compliant with the provisions of the Commission Delegated Regulation (EU) 2019/815 is the document named "Relazione finanziaria annuale al 31.12.2022 (formato ESEF)" published on the company website www.nextresiiq.iton April 20, 2023

CONTENTS
1. COMPANY PROFILE	3
COMPANY INFORMATION AND STRUCTURE	3
GROUP STRUCTURE	3
COMPANY OFFICES/POSITIONS	4
SHAREHOLDING STRUCTURE AS AT 31 DECEMBER 2022	5
2. DIRECTORS' REPORT ON OPERATIONS	6
CONSOLIDATED FINANCIAL HIGHLIGHTS	6
RELEVANT EVENTS DURING THE YEAR	8
EVENTS FOLLOWING THE REPORTING PERIOD	11
STOCK PERFORMANCE	12
THE ECONOMIC CONTEXT AND THE REAL ESTATE MARKET	14
REAL ESTATE PORTFOLIO	15
ECONOMIC PERFORMANCE ANALYSIS	25
BALANCE SHEET ANALYSIS	27
TRANSACTIONS WITH RELATED PARTIES	28
LEGAL AND REGULATORY FRAMEWORK OF LISTED REAL ESTATE INVESTMENT COMPANIES (SIIQ)	30
RISK MANAGEMENT	33
CORPORATE GOVERNANCE	38
REMUNERATION REPORT	40
ORGANISATIONAL MODEL & CODE OF ETHICS	40
EQUITY INVESTMENTS HELD BY DIRECTORS AND MEMBERS OF THE BOARD OF STATUTORY AUDITORS	41
OTHER INFORMATION ON THE MANAGEMENT	41
UPDATE ON THE IMPACT OF COVID-19	43
FORESEEABLE PERFORMANCE TREND	43
NEXT RE SIIQ S.P.A. - SIGNIFICANT DATA	44
RECONCILIATION BETWEEN THE SHAREHOLDERS' EQUITY AND THE PARENT COMPANY'S NET PROFIT AND THE
SHAREHOLDERS' EQUITY AND THE CONSOLIDATED NET PROFIT;	48
PROPOSED ALLOCATION OF OPERATING RESULTS FOR THE PERIOD	49
EPRA PERFORMANCE INDICATOR	50
3. CONSOLIDATED FINANCIAL STATEMENTS OF THE NEXT RE SIIQ S.P.A. GROUP	59
CONSOLIDATED FINANCIAL STATEMENTS	59
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	60
CONSOLIDATED STATEMENT OF PROFIT/(LOSS)	61
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME	62
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	63
CONSOLIDATED CASH-FLOW STATEMENT	64
CONSOLIDATED PROFIT (LOSS) PER SHARE	65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	66
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS	98
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ANNEXES	99
REPORT OF THE INDEPENDENT AUDITORS	101
4. FINANCIAL STATEMENTS OF NEXT RE SIIQ S.P.A	107
FINANCIAL STATEMENTS OF NEXT RE	107
STATEMENT OF FINANCIAL POSITION	108
STATEMENT OF PROFIT/(LOSS)	109
STATEMENT OF OTHER COMPREHENSIVE INCOME	110
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY	111
CASH FLOW STATEMENT	112
NOTES TO THE FINANCIAL STATEMENTS	113
MANAGEMENT AND COORDINATION ACTIVITIES	153
CERTIFICATION OF THE FINANCIAL STATEMENTS	160
ANNEXES	161
REPORT OF THE INDEPENDENT AUDITORS	163
REPORT OF THE BOARD OF STATUTORY AUDITORS	170
VALUATIONS OF INDEPENDENT EXPERTS	190

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Company profile

1. COMPANY PROFILE

Company information and structure

NEXT RE SIIQ S.p.A. (hereinafter also referred to as "NEXT RE" or the "Company" or the "Parent Company") with registered office in Rome, Via Zara 28, Tax Code and VAT no. 00388570426, REA number RM-1479336, is a real estate investment company with shares listed on the Euronext Milan market ("EXM") organised and managed by Borsa Italiana S.p.A.

The Company currently manages a portfolio consisting of office and commercial properties and is focused on asset classes that are aimed to meet the needs of new patterns and styles of real estate use, which reflect the economy and society's characteristics of access, utility and experience. The categories engaged look at Life- cycle Living & Hospitality, Leisure & Wellness, Smart Office Space, Omnichannel Retail & Distribution.

Group structure

The NEXT RE group (hereinafter also referred to as the "Group") includes, in addition to the Parent Company, the wholly-owned subsidiary Fidelio Engineering S.r.l. (hereinafter also "Fidelio" or the "Subsidiary").

The corporate purpose of the Subsidiary is to carry out activities in Italy and abroad aimed at redeveloping and enhancing the value of areas subject to real estate development or existing buildings subject to redevelopment. The Subsidiary commenced operations in the fourth quarter of 2022.

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Company profile

Company offices/positions

Board of Directors

At the date of approval of this Report, the composition of the Board of Directors was as follows:

Giancarlo Cremonesi	Chairman
Stefano Cervone	Managing Director
Daniela Becchini	Independent Director
Giuseppe Colombo	Director
Camilla Giugni	Independent Director
Eleonora Linda Lecchi	Independent Director
Giovanni Naccarato	Vice-Chairman and Director
Luca Nicodemi	Independent Director
Maria Spilabotte	Independent Director
Board of Statutory Auditors

At the date of approval of this Report, the composition of the Board of Statutory Auditors was as follows:

Luigi Mandolesi	Chairman
Sara Mattiussi	Statutory Auditor
Domenico Livio Trombone	Statutory Auditor
Sergio Mariotti	Alternate Auditor
Barbara Premoli	Alternate Auditor

The manager in charge pursuant to Article 154-bis paragraph 2 TUF (Consolidated Finance Act)

Francesca Rossi

Independent Auditors

EY S.p.A. is appointed as statutory auditor for the period 2021-2029.

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