EPH European Property Holdings PLC announces Unaudited Interim Results for the Six Months to 30 June 2023 and appointment of Management Committee Members

29 September 2023, Limassol, Cyprus / Ad hoc announcement pursuant to Art. 53 LR

BUSINESS HIGHLIGHTS FIRST HALF YEAR OF 2023

• With an established portfolio of high-quality properties in prime locations in Europe occupied by tenants with strong credit ratings, combined with professional asset management, EPH European Property Holdings PLC (“EPH” or the “Company”) has demon-strated operational stability in the first six months of 2023, despite the ongoing market environment challenges. As a result, EPH not only achieved almost full occupancy throughout its European portfolio, it also increased rental income.
• The sale of the Company’s Russian portfolio was concluded in April 2023, following the Extraordinary General Meeting (held on 1 November 2022) at which the shareholders of EPH authorised the Board of Directors to sell EPH Group’s entire Russian property portfolio by way of a management buyout.
• Upon disposal of the Russian segment in the first half of 2023, the Company reclassified the negative balance of the currency translation adjustment reserve ("CTA") accumulated on the Group`s operations in Russia and amounting to EUR 163 million to profit or loss statement. This reclassification resulted in recognition of a loss of EUR 163 million and a corresponding positive change in CTA reserve balance, thus, having zero effect on the equity of the Group.
• EPH’s real estate portfolio now consists of nine core assets. The properties are located in prime locations in Vienna (Austria) and four German markets (Berlin, Hamburg, Stuttgart and Dresden). All properties are let on long-term leases to tenants with strong credit ratings. Due to the quality of the properties and the professional asset management, the Group’s European portfolio per-formed above expectations during the reporting period.
• A milestone in the operating business was the completion of the LASS 1 refurbishment project in Vienna and the realisation of initial rental income. The property is located near the city centre of Vienna in the promising, up-and-coming 2nd district and has a total area of almost 45,000 square meters. Tenants include the Wiener Gesundheitsverbund, Wiener ArbeitnehmerInnen Förderungsfonds , and ISS Austria, the property's facility manager.
• Despite the positive operating performance of the European real estate portfolio, the economic development in Europe led to a downward adjustment of fair values of the properties in Germany and Austria. As a result, EPH recorded a loss from continuing operations in the first half of 2023.

FINANCIAL HIGHLIGHTS FIRST HALF YEAR OF 2023