Warimpex Finanz und Beteiligungs : Report on the First Half of 2023

WARIMPEX

Report on the First Half of 2023

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	WARIMPEX REPORT ON THE FIRST HALF OF 2023
				WARIMPEX GROUP
				Key Figures
		in EUR '000		1-6/2023	Change	1-6/2022
		Investment Properties revenues	19,415	32%	14,691
		Hotels revenues		5,914	55%	3,826
		Development and Services revenues	929	-41%	1,585
		Total revenues		26,258	31%	20,101
		Expenses directly attributable to revenues	-9,004	25%	-7,207
		Gross income from revenues	17,254	34%	12,895
		Gains or losses from the disposal of properties	-	-	2,821
		EBITDA		11,264	5%	10,741
		Depreciation, amortisation, and remeasurement	-4,825	-	5,993
		EBIT		6,440	-62%	16,733
		Financial result		-5,208	-	947
		Profit or loss for the	period	214	-98%	13,421
		Net cash flow from	operating activities	16,565	162%	6,324
		Equity and liabilities	416,074	-16%	495,055
		Equity		149,085	-16%	176,713
		Equity ratio		36%	-	36%
		Number of shares		54,000,000	-	54,000,000
		Earnings per share in EUR	0.00	-	0.26
		Number of treasury shares	1,939,280	-	1,939,280
		Number of office and commercial properties	9	1	8
		Lettable office space	126,300 m2	21,600 m2	104,700 m2
		m2 with sustainability certificates	75,400 m2	18,600 m2	56,800 m2
		In % of the total floor area	60%	6 pp	54%
		Number of hotels		4	-	4
		Number of rooms		831	-	831
				30/6/2023	Change	31/12/2022
		Gross asset value (GAV) in EUR millions	393.9	-8%	429.3
		NNNAV per share in EUR	3.33	-12%	3.78
		EPRA NTA per share in EUR	3.16	-12%	3.59
		End-of-period share price in EUR	0.78	20%	0.65

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REPORT ON THE FIRST HALF OF 2023 WARIMPEX

Contents

1. Key Figures

1. Foreword

1. Semi-AnnualConsolidated Management Report

1. Economic Environment

1. Markets

1. Assets, Financial Position, and Earnings Situation

1. Real Estate Assets

1. Material Risks and Uncertainties and Other Disclosures

1. Events after the Reporting Date

1. Outlook

1. Condensed Consolidated Interim Financial Statements as at 30 June 2023
2. Condensed Consolidated Income Statement
3. Condensed Consolidated Statement of Comprehensive Income
4. Condensed Consolidated Statement of Financial Position
5. Condensed Consolidated Statement of Cash Flows
6. Condensed Consolidated Statement of Changes in Equity
7. Notes to the Condensed Consolidated Interim Financial Statements

1. Declaration by the Management Board

1. Financial Calendar

1. Publication Details

MC55 Office

Białystok, PL

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WARIMPEX REPORT ON THE FIRST HALF OF 2023

FOREWORD BY THE CHAIRMAN OF THE MANAGEMENT BOARD

Dear Shareholders,

For Warimpex, the first half of 2023 was characterised by a further improvement in revenues and EBITDA and the progression of the construction activities in Krakow as planned. At the same time, we are still experiencing elevated interest rates, increased volatility for property valuations, and currency fluctuations for the Russian rouble, which depreciated compared with the prior-year period. We anticipated this and aligned our financing strategy accordingly. Therefore, we are able to report a positive result at the half-year mark despite declines in property values, losses in the financial result, and a lack of sales proceeds.

Strong operational performance

Total revenues improved by 31 per cent to EUR 26.3 million in the first half of 2023. This can be attributed to increased revenues from the rental of office properties in Poland, from Avior Tower in St. Petersburg, which has been fully occupied since January 2023, and a further recovery in the Hotels segment, where the results for 2022 were still stunted by the COVID-19 pandemic. Although no real estate transactions were completed in the first half of 2023 - the B52 property in Budapest was sold at a profit in the first half of 2022 - EBITDA rose by 5 per cent to EUR 11.3 million thanks to the revenue increases.

The changes in economic conditions are reflected in EBIT, which declined by EUR 10.3 million from EUR 16.7 million to EUR 6.4 million due to a negative result from property valuations. This includes measurement losses of EUR 5.5 million as well as write-ups of EUR 1.9 million, whereas a measurement gain of EUR 7.3 million was generated in the prior-year period. The financial result went from EUR 0.9 million to minus EUR 5.2 million, primarily due to changes in foreign exchange rates. In total, this resulted in a slight profit for the period of EUR 0.2 million, down from EUR 13.4 million in the prior-year period.

Office developments with a focus on sustainability

We are sticking to our strategy when it comes to our development projects: The focus is on office developments targeted at obtaining the optimal sustainability certification for the given property that also meets the requirements of the new EU Taxonomy.

Accordingly, Mogilska 35 Office in Krakow with 11,900 square metres of net floor space and BREEAM - Excellent certification is nearing completion. The office space at Red Tower in Łódź spanning 12,400 square metres is being modernised on a step- by-step basis while the letting process continues to progress. Innovative concepts are also being implemented at the property: In May, for example, a second coworking space was opened that offers new possibilities for flexible working models and is being received well.

Building permits have been secured for further Polish office developments in Krakow (Chopin Office with roughly 21,200 square metres) and Białystok (MC 55 with roughly 38,500 square metres). In the German city of Darmstadt, planning for the West Yard 29 office building with roughly 13,800 square metres of space is at an advanced stage. There are still no new developments planned in Russia.

Outlook for 2023

We continue to monitor the geopolitical developments related to the conflict in Ukraine, the resulting inflation trend, and the elevated key interest rates very closely. In our industry, we are seeing a rise in the cost of project financing. As a listed, family- run company, we are oriented towards the long term and - not least thanks to strong cash flows from our existing properties - have the flexibility to take advantage of economically favourable time windows to push ahead with development projects on our property reserves and execute transactions.

With strong operating business and solid occupancy rates in our portfolio of modern existing properties, we expect the positive development of our business to continue for the current financial year despite the uncertain economic conditions.

Vienna, August 2023

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REPORT ON THE FIRST HALF OF 2023 WARIMPEX

Franz

Jurkowitsch

CHAIRMAN OF THE MANAGEMENT BOARD