NSI N.V., - RESULTS: Q1 2022 trading update

TRADING UPDATE

Q1 2022

• - CMD today to showcase NSI's new transition to an even stronger and better business

• - Existing asset portfolio offers substantial internal potential for value-creation

• - New leases signed in Q1 on average 13.8% ahead of ERV

• - EPRA vacancy rate at 6.3% at Q1 2022

• - LTV at 27.1% underpins all initiatives

Index

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INDEX

NSI HIGHLIGHTS 3

CEO COMMENTS 4

SPOTLIGHT: SLOTERDIJK 5

INCOME, COSTS AND RESULT 8

REAL ESTATE PORTFOLIO 9

BALANCE SHEET, NAV AND FINANCING 11

FINANCIAL CALENDAR

Publication half year results H1 2022	14 July 2022	For additional info please contact:
Publication trading update Q3 2022	13 October 2022	NSI N.V.
Publication preliminary results FY 2022	26 January 2023	Investor Relations
Publication annual report 2022	10 March 2023
Laura Gomez Zuleta
AGM	15 April 2022	T [phone]
Ex-dividend date (final dividend 2021)	20 April 2022	[e-mail]
Record date	21 April 2022
Stock dividend election period	22 April - 5 May 2022	Publication date:
Payment date	10 May 2022	14 April 2022

3 NSI TRADING UPDATE - Q1 2022

NSI HIGHLIGHTS

KEY FINANCIAL METRICS

REVENUES AND EARNINGS

Q1 2022 Q1 2021 Change
Net rental income Net rental income - like-for-like Direct investment result Indirect investment result	12,773 12,004 8,600 1,004	13,224 -3.4% 10,916 10.0% 9,018 -4.6% -392 -356.2%
Total investment result	9,604	8,626 11.3%
Earnings per share EPRA earnings per share EPRA cost ratio (excl. direct vacancy costs)	0.49 0.44 25.8%	0.45 0.47 9.0% -6.6% 28.3% -2.5 pp

BALANCE SHEET

31 March 2022 31 December 2021 Change
Investment property Net debt Other assets / liabilities	1,333,473 -365,760 -9,650	1,338,034 -0.3% -382,073 -4.3% -7,504 28.6%
Equity	958,062	948,457 1.0%
IFRS equity per share EPRA NTA per share Net LTV Number of ordinary shares outstanding Weighted average number of ordinary shares outstanding	48.64 48.67 27.1% 19,698,207 19,698,207	48.15 1.0% 48.23 0.9% 28.2% -1.1 pp 19,698,207 19,499,825 1.0%

KEY PORTFOLIO METRICS

31 March 2022 Amsterdam Other G4 Other NL TOTAL 31 December 2021 Change
Number of properties Market value (€ m) Lettable area (sqm k) 23 795 178 15 13 356 198 124 85 Annual contracted rent (€ m) ERV (€ m) 37 46 23 14 25 15 EPRA net initial yield Reversionary yield 3.7% 6.2% 4.5% 4.8% 7.2% 7.5% EPRA vacancy 6.0% 7.7% 4.9% Wault 4.2 4.4 2.6	51 1,349 387 75 86 4.1% 6.7% 6.3% 3.9	52 -1.9% 1,355 -0.4% 409 -5.3% 76 -1.7% 87 -1.5% 4.1% 6.7% 0.0 pp -0.1 pp 5.9% 0.4 pp 4.1 -3.2%

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CEO COMMENTS

In Q1 2022 the latest (and last?) Covid surge abated and by late March all Covid-related restrictions were lifted by Government. By then the focus had fully shifted to the situation in Ukraine and the very high level of inflation permeating all of Europe. The long term economic ramifications of all these events are as yet unclear and likely to remain so for some time to come.

Strong like-for-like NRI growth

Notwithstanding the uncertain economic environment NSI has experienced a strong Q1. Operationally, in Q1 new leases were signed on average 13.8% ahead of ERV. The like-for-like increase in NRI in Q1 of 10.0% is helped by positive lease indexation, but the level is set to fall back in the coming quarters, as maintenance expenditure is set to pick up. The tenant retention rate during Q1 was high at 72.5%.

The vacancy rate is up by 0.4% in Q1 to 6.3%. There is no major individual driver of this change during the quarter.

In the investment market we continue to see good demand for the most prime assets, in spite of the now higher interest rate environ-ment, with prime yields still hovering at just above 3%. The invest-ment market is polarising as assets in secondary or tertiary loca-tions, with relatively short lease lengths and poor sustainability credentials, are seeing capital values decline.

High indexation

Dutch CPI reached a level of 9.7% in March and it is now widely expected that CPI will end up at close to 5 - 6% for the whole of 2022. Whilst we expect inflation in time to abate, we believe the outlook is for an economy that will have to adjust to operating at a persistently higher price level going forward.

We expect to benefit from higher indexation to be applied to our lease contracts in 2022, at on average 4.5 - 5.0%, but we do not expect market rents (ERVs) to move much. As such, the indexation is set to bring forward the capture of most of our remaining positive lease reversion (+ 7.8% in Q1 2022, excluding Laanderpoort circa + 5%).

Development

We continue to make progress in all our development projects. At Well House the application for the building permit has been submitted post the quarter end and we are still well on track to start the project in September 2022.

On completion of Well House, foreseen in late 2025, the existing lease with Spaces for Vivaldi II will expire, as Spaces will move to Well House. Spaces has pre-let 20% of Well House and will in addition provide a variety of white-label services to NSI to operate the reception and meeting rooms in the building. We have already started to prepare initial plans to fully redevelop and modernise Vivaldi II.

In Q1 2022 we received Municipal approval for the preliminary design of Laanderpoort. At Vitrum we started the final design phase and the engineering process for the required relocation of some of the existing underground infrastructure.

In the capital markets day presentation this morning, which can be found on the website, we show the potential profitability of the development pipeline, including a clear sensitivity analysis. In addition, we present the identified medium and long term devel-opment potential in our portfolio. None of this is set in stone, but with a circa € 700m development cost (medium term) the size and potential is material to the overall business.

Bernd Stahli

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NSI THRAALDFIYNEGAURPRDEASTUEL-TSQ1- H20122021

SLOTERDIJK

AMSTERDAM SLOTERDIJK: FROM MONO-FUNCTIONAL OFFICE DISTRICT TO ATTRACTIVE PLACE TO BE

The office district of Amsterdam Sloterdijk is gradually changed from a mono-functional working area into a unique neighbourhood. Sustainable office buildings are combined with unusual hotels and striking residential buildings, adding new life to Sloterdijk.

History of Sloterdijk

As early as the thirteenth century, the Spaarndammerdijk was created to protect the rural area of Sloten from the still undrained IJ river. In the west, at the height of the Spaarne, the Spaarndam was built and in the east, at the height of

Aerial photo before the office area in Sloterdijk was built, 1975.

the Amstel, the (Amster)dam. In between was the small river Slooter and that is where the Slooterdam appeared. Trade developed on the Slooterdam and a small harbour was built. In 1465, Filips de Goede granted the village the privilege of building a weigh house for local farmers. The village was named Slooterdyck and started to grow.

Source: Stadsarchief Amsterdam.

The construction of the Haarlemmertrekvaart in 1631 brought new prosperity to the village. Industry grew around Sloterdijk and in 1839, the first train to operate in The Netherlands traveled from Sloterdijk to Haarlem. In the second half of the nineteenth century the North Sea Canal was constructed. The subsequent impoldering of the IJ transformed the surroundings of the centuries-old village of Sloterdijk into an agricultural area.

The port of Amsterdam

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Haarlemmerweg and the Haarlemmervaart. Source: Stadsarchief Amsterdam.

The reconstruction of the Netherlands after the Second World War resulted in a call for more space for heavy industry. In the 1960s, the fields along the North Sea Canal therefore made way for the Western Port Area. Under the inspiring leadership of former port alderman Joop den Uyl, the IJ polder was transformed into a port area with large-scale storage and transhipment facilities for fossil fuels. The port of Amsterdam is still one of the largest petroleum ports in Europe today.

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