Noratis : Financial report first half-year 2021

Financial Report

First Half-Year 2021

abridged version 1

OVERVIEW

Group Key Figures

(IFRS)

	2020	1st half-year 2020	1st half-year 2021
Revenue (EUR million)	28.7	14.0	59.8
EBIT (EUR million)	8.2	4.5	13.3
EBT (EUR million)	4.2	2.5	10.2
Consolidated net income (EUR million)	2.8	1.8	7.3
Earnings per share (basic, EUR) *	0.69	0.49	1.52
Total assets (EUR million)	367.6	269.8	376.2
Units sold	86	32	289
Units acquired	1,045	155	543
Units	3,366	2,530	3,620
Rental space of the property portfolio (rounded)	225,000	167,000	244,000
* based on IFRS (weighted number of shares)

1 only the German version of the half year report is relevant concerning the reporting standards of Noratis AG

Noratis AG

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CONTENTS

04 Letter from the Management Board

06 Noratis on the Capital Markets

11 Interim Consolidated Financial Statements

17 Group Management Report

29 Financial Calendar / Imprint / Contact

3	Financial Report First Half-Year 2021

LETTER FROM THE MANAGEMENT BOARD

Dear shareholders,

Noratis AG can look back on another highly successful performance in the first half of 2021. We continued to expand our property portfolio and returned to making our first portfolio sales in line with our strategy. As a result, Noratis is on track to achieve its planned growth for 2021 including significantly increasing EBIT and EBT year-on-year.

Our focus on developing residential property portfolios in Germany continued to serve us well in the first half of 2021. Noratis AG was once again able to announce several portfolio acquisitions thanks to our many years of experience and our exceptional network in the real estate sector. We increased our property portfolio to 3.732 units as of the end of June 2021, including properties that have already been contractually secured but not yet recognised in the financial statements.

We acquired 242 residential units in Münster, 150 in Gelsen- kirchen and 82 in Celle. The transfer of benefits and associated risks for 112 units will only take place in the second half of 2021. As properties are only recognised in the financial statements after benefits and risks have been transferred, our total assets of EUR 376.2 million as of the end of June 2021 do not yet take these properties into account.

Having deliberately refrained from larger portfolio sales during the 2020 financial year in order to grow our property portfolio faster, we resumed our sales activities during the first half of 2021. We sold 96 residential units in Mölln and Ratzeburg in

Schleswig-Holstein as well as 185 residential units in Neu-Isen- burg near Frankfurt for which we were able to realise our developer margin. By completing these disposals, we were able to hit our portfolio sales target for the full year already in the first six months.

Our regional subsidiary Noratis West also made highly encouraging progress in the first six months of 2021. Overall, the subsidiary acquired 38 residential units and sold on six.

The resumption of portfolio sales had a distinctly positive impact on earnings as expected. Earnings before interest and tax (EBIT) rose to EUR 13.3 million, up from EUR 4.5 million in the first half of 2020. Earnings before tax (EBT) climbed from EUR 2.5 million a year earlier to EUR 10.2 million. Consolidated profit improved to EUR 7.3 million from EUR 1.8 million in the prior-year period. As a result, our earnings figures for the first half of 2021 have already significantly surpassed those of the full year 2020, when EBT amounted to EUR 4.2 million and consolidated profit reached EUR 2.8 million.

Noratis AG

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LETTER FROM THE MANAGEMENT BOARD

Igor Christian Bugarski	André Speth
CEO	CFO

Revenue rose to EUR 59.8 million, up from EUR 14.0 million in the first half of 2020. In addition to sales proceeds, the higher rental income generated by the enlarged property portfolio also had a positive impact, with rental income increasing to EUR

10.2 million in the first half of 2021 after EUR 8.0 million in the prior-year period. This rise also reflects our focus on generating sustainable positive results from portfolio management.

The figures for the first half of 2021 show that Noratis is very much on track to achieve its revenue and earnings growth targets for the full year. We plan to continue expanding our property portfolio through acquisitions in the second half of 2021. In doing so, our aim is to not only grow in existing locations - as we did in Celle in the first half of the year - but also to establish a presence in new locations, as we did in Münster and Gelsen- kirchen during the first six months of 2021.

Kind regards,

Igor Christian Bugarski

André Speth

Noratis AG's positive performance would not be possible without the unwavering dedication of our employees. We would therefore like to take this opportunity to thank them very much for their commitment. Our thanks also go to our business partners for their loyal cooperation. Last but not least, we would like to thank you, our shareholders, for your commitment and loyalty to Noratis AG. We hope you will continue to give us your support.

5	Financial Report First Half-Year 2021