Saint Croix Immobilier SOCIMI S A : Annual financial and audit reports

SAINT CROIX HOLDING IMMOBILIER, SOCIMI, S.A.

Financial Statements and Directors' Report for the financial year 2023 together with the Audit Report of Financial Statements emitted by an Independent Auditor

This version of the financial statements is a free translation of the original, which was prepared in Spanish. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of the financial statements takes precedence over this translation.

SAINT CROIX HOLDING IMMOBILIER, SOCIMI, S.A.

Financial Statements and Directors' Report for the financial year 2023 together with the Audit Report of Financial Statements emitted by an Independent Auditor

AUDIT REPORT ON THE FINANCIAL STATEMENTS ISSUED BY AN INDEPENDENT AUDITOR

FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2023:

• Balance Sheets at 31 December 2023 and 2022
• Profit and Loss Account for the financial years 2023 and 2022
• Statement of Changes in Equity for the financial years 2023 and 2022
• Cash Flow Statements for the financial years 2023 and 2022
• Annual report for the financial year 2023

DIRECTORS' REPORT FOR THE FINANCIAL YEAR 2023

SAINT CROIX HOLDING IMMOBILIER, SOCIMI, S.A.

Audit Report of Financial Statements emitted by an Independent

Auditor

Tel: [phone]	Génova 27
Fax: [phone]	28004 Madrid
www.bdo.es	España

Audit report on the financial statements issued by an independent auditor

Translation of a report originally issued in Spanish based on our work performed in accordance with generally accepted auditing standards in Spain. In the event of a discrepancy, the Spanish- language version prevails

To the Shareholders of Saint Croix Holding Immobilier, SOCIMI, S.A.:

Report on the financial statements

Opinion

We have audited the financial statements of Saint Croix Holding Immobilier, SOCIMI, S.A. (the Company), which comprise the balance sheet at 31 December 2023, the profit and loss account, the statement of changes in equity, the statement of cash flows and the report for the financial year ended on that date.

In our opinion, the accompanying financial statements give, in all material respects, a true and fair view of the Company's equity and financial position as at 31 December 2023, as well as its results and cash flows for the financial year ending on said date, in accordance with the application of the regulatory framework of financial information (identified in note 3 of the report) and, in particular, with the accounting principles and criteria contained therein.

Basis for opinion

We have performed our audit in accordance with the current regulations governing the auditing of accounts in Spain. Our responsibilities in accordance with these regulations are described later in the section Auditor's Responsibilities relating to the audit of the financial statements of our report.

We are independent of the Company in accordance with the ethical requirements, including those of independence, which are applicable to our audit of the financial statements in Spain as required by the regulations governing the activity of auditing accounts. Accordingly, we have not provided services other than those of the audit of accounts nor have concurred situations or circumstances that, in accordance with the provisions of the aforementioned governing regulations, have compromised the necessary independence.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key audit matters

The key audit matters are matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. Our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole, and in the formation of our opinion on these and we do not express a separate opinion on those matters.

BDO Auditores, S.L.P., sociedad limitada española, inscrita en el Registro Oficial de Auditores de Cuentas nº S1.273, es miembro de BDO International Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas.

Registro Mercantil de Barcelona, Tomo 47.820, Sección 8ª Folio 201, Hoja nº B-563.253 (Inscripción 124) CIF: B-82387572

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Key Audit matters

Audit response

Valuation of property investments at financial year-end

The heading "Property Investments" in the attached balance sheet includes the net values at 31 December 2023 of the land and buildings owned by the Company in accordance with the detail shown in note 7 of the annual report.

Notes 5.2 and 5.3 of the report describe the valuation criteria for these assets at financial year-end. For the application of these criteria, the Company's management has relied on valuations performed by an independent expert, which include elements of judgment presenting varying degrees of subjectivity.

The analysis of the reasonableness of the recoverable value of these assets as at 31 December 2023 has been considered the key audit matter.

We have performed, amongst others, the following audit procedures:

• Understanding and analysis of the policies and procedures followed by the Company's management for the valuation of property investments at financial year- end.
• Obtaining the valuation report prepared by the independent expert as of the fiscal year-end date. Based on this report, an analysis of the reasonableness of the calculations performed by the Company's management for determining the recoverable amounts of the property investments as of December 31, 2023.
• Evaluation of the competence and independence of the external valuator, as well as the reasonableness of the valuation methodologies and the assumptions used, involving valuation experts in the engagement team to help with said analysis.
• Evaluation of the suitability and adequacy of the information included by the Company's management in the annual report in relation to the valuation of these assets.

Other information: Management report

The other information comprises exclusively the management report for financial year 2023, the formulation of which is the responsibility of the Company's management and does not form an integral part of the financial statements.

BDO Auditores S.L.P. es una sociedad limitada española independiente, miembro de BDO lnternational Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas. BDO es la marca comercial utilizada por toda la red BDO y para todas sus firmas miembro.

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Our audit opinion on the financial statements does not cover the management report. Our responsibility regarding the management report, defined in the regulation governing financial statement audit work, consists of:

1. Checking solely that certain information included in the Annual Corporate Governance Report and Annual Report on Remuneration of Directors, referred to Audit Act, has been provided in accordance with applicable regulations and, if not, report that fact.
2. Evaluate and report on concordance of the rest of the information included in the management report and the financial statements, based on the knowledge of the Company obtained during the audit of the aforementioned financial statements, as well as evaluate and report on whether the content and presentation of the management report are in accordance with applicable regulations. If, based on the work we have performed, we conclude that material misstatements exist, we are required to report that fact.

Based on the work performed, as described in the previous paragraph, we have verified that the information contained in section a) above is provided in accordance with applicable regulations and the rest of the information contained in the management report agrees with that in the financial statements for financial year 2023 and its content and presentation is in accordance with the applicable regulations.

The responsibility of the management and the audit committee in respect of the financial statements

The management are responsible for formulating the accompanying financial statements, so that they give a true image of the assets, the financial situation and the results of the Company, in accordance with the regulatory framework on financial information applicable to the Entity in Spain, and of the internal control that they consider necessary to allow the preparation of the financial statements free of material misstatement, due to fraud or error.

In the preparation of the financial statements, the management are responsible for assessing the Company's ability to continue as a going concern, revealing, as appropriate, the matters related with a company in operation and using the accounting principle of a going concern except if the management intend to liquidate the Company or cease operations, or if there is no other realistic alternative.

The audit committee is responsible for supervising the process of preparing and presenting the financial statements.

The auditor's responsibility for the audit of the financial statements

Our objectives are to obtain reasonable assurance that the financial statements as a whole are free from material misstatement, due to fraud or error, and to issue an audit report that contains our opinion.

BDO Auditores S.L.P. es una sociedad limitada española independiente, miembro de BDO lnternational Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas. BDO es la marca comercial utilizada por toda la red BDO y para todas sus firmas miembro.

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Reasonable assurance is a high degree of assurance, but is not a guarantee that an audit conducted in accordance with the regulations governing the audit activity in force in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the current regulations governing the account auditing activity in Spain, we exercise professional judgment and maintain an attitude of professional skepticism throughout the audit. Also:

We identify and assess the risks of material misstatement in the financial statements, due to fraud or error, design and perform audit procedures to respond to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or circumvention of internal control.

We obtain knowledge of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and disclosures made by management.
• We conclude whether the use, by management2, of the accounting principle of the company as a going concern is adequate and, based on the audit evidence obtained, we conclude on whether or not there is a material uncertainty related to events or conditions that can generate significant doubts about the ability of the Company to continue as a going concern. If we conclude that there is material uncertainty, we are required to draw attention in our audit report to the corresponding information disclosed in the financial statements or, if such disclosures are not adequate, we express a modified opinion. Our conclusions are based on the audit evidence obtained at the date of our audit report. However, future events or conditions may cause the Company to cease to be a going concern.
• We evaluate the overall presentation, structure and content of the financial statements, including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

BDO Auditores S.L.P. es una sociedad limitada española independiente, miembro de BDO lnternational Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas. BDO es la marca comercial utilizada por toda la red BDO y para todas sus firmas miembro.

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We are required to communicate with the Entity's audit committee regarding, amongst other matters, the planned scope and timing of the audit and significant findings, including any significant deficiencies in internal control that we identify during the course of the audit.

We are also required to provide the Entity's audit committee with a statement that we have complied with the relevant ethical requirements, including those of independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Amongst the matters that have been communicated to the Entity's audit committee, we determine those that have been of the greatest significance in the audit of the financial statements of the current period and that are, consequently, the key matters of the audit.

We describe those matters in our audit report unless legal or regulatory provisions prohibit public disclosure of the matter.

Report on other legal and regulatory requirements

Additional report for the audit committee

The opinion expressed in this report is consistent with what was stated in our additional report for the Company's audit committee dated 6 March 2024.

Contract period

The Ordinary General Shareholders' Meeting held on 27 April 2023 appointed us as auditors for one-year period corresponding to the fiscal year ended December 31, 2023.

Prior to this, the Ordinary General Shareholders 'Meeting held on June 30, 2020, appointed us as auditors of the Company for a period of three years, and we have been continuously performing the audit work since the fiscal year ended December 31, 2020."

BDO Auditores, S.L.P. (ROAC S1273) (ROAC - Official Registry of Account Auditors)

Francisco J. Giménez Soler (ROAC 21.667)

Partner

6 March 2024

BDO Auditores S.L.P. es una sociedad limitada española independiente, miembro de BDO lnternational Limited, una compañía limitada por garantía del Reino Unido y forma parte de la red internacional BDO de empresas independientes asociadas. BDO es la marca comercial utilizada por toda la red BDO y para todas sus firmas miembro.

SAINT CROIX HOLDING IMMOBILIER,

SOCIMI, S.A.

Financial Statements for the year ended on 31 December 2023 and Management Report

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Table of Contents

Annual Report____________________________________________________________________________ 2

1. Company's activity _________________________________________________________________ 8
2. Applicable law ____________________________________________________________________ 10
3. Basis for presenting the financial statements __________________________________________ 12
4. Profit distribution__________________________________________________________________ 14
5. Accounting principles and accounting and measurement rules __________________________ 14
6. Property, plant and equipment ______________________________________________________ 21
7. Property investment _______________________________________________________________ 22
8. Operating leases __________________________________________________________________ 28
9. Other financial assets and investments in related companies ____________________________ 28
10. Trade and other accounts receivable ________________________________________________ 30
11. Cash and cash equivalents _________________________________________________________ 31
12. Information on the nature of financial instruments and their level of risk ___________________ 31
13. Total equity and shareholders' equity ________________________________________________ 32
14. Current and non-current liabilities ___________________________________________________ 36
15. Hedge instruments ________________________________________________________________ 37
16. Disclosure on supplier payment deferrals _____________________________________________ 38
17. Guarantees undertaken with third parties _____________________________________________ 39
18. Public administrations and tax situation_______________________________________________ 39
19. Income and expenses _____________________________________________________________ 44
20. Related-partytransactions and balances______________________________________________ 45
21. Remuneration for the Board of Directors and Senior Management________________________ 47
22. Information on conflicts of interest among the Directors_________________________________ 48
23. Other information _________________________________________________________________ 48
24. Environmental information__________________________________________________________ 49
25. Segmented reporting ______________________________________________________________ 49
26. International Financial Reporting Standards ___________________________________________ 50
27. Subsequent disclosures____________________________________________________________ 51

Annex 1. Reporting requirements as a REIT__________________________________________________ 52

Management Report _____________________________________________________________________ 56

1. Explanation of figures at 31 December 2023 __________________________________________ 57
2. Valuation of real estate assets_______________________________________________________ 61
3. Segmented reporting ______________________________________________________________ 62
4. Property Investment _______________________________________________________________ 63
5. Disclosure on supplier payment deferrals _____________________________________________ 64
6. Earnings per share ________________________________________________________________ 65
7. Acquisition of treasury shares_______________________________________________________ 65
8. Research and development activities ________________________________________________ 65
9. Main risks to the Company _________________________________________________________ 65
10. Outlook for 2024 __________________________________________________________________ 66
11. Information on conflicts of interest among the Directors_________________________________ 67
12. Subsequent disclosures____________________________________________________________ 67
13. Annual Corporate Governance Report and Annual Report on Directors' Remuneration ______ 68

Directors' Responsibility Statement _________________________________________________________ 69

Diligence in Drawing Up the Financial Statements ____________________________________________ 70

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