EPH European Property Holdings PLC announces 2023 Year-End Result

26 April 2024, Limassol, Cyprus / Ad hoc announcement pursuant to Art. 53 LR

BUSINESS HIGHLIGHTS 2023

• Despite the challenging market environment, EPH European Property Holdings PLC (“EPH” or the “Company”) maintained operational stability in 2023. This success can be attributed to its established portfolio of high-quality properties in prime locations in Europe, and professional asset management. As a result, EPH once again achieved almost full occupancy throughout its European portfolio, and exceeded own expectations by increasing net rental income by 26 percent compared to the previous year.
• As of 31 December 2023, EPH’s real estate portfolio consisted of eight core assets (and one parking garage) in outstanding locations in Germany and Vienna, all of which meet high sustainability standards. Seven out of eight office and hotel buildings have already been awarded certificates in DGNB Platinum, DGNB Gold, or LEED Gold.
• 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 up-and-coming 2nd district and has a total area of almost 45,000 square metres. Tenants include the Wiener Gesundheitsverbund, Wiener ArbeitnehmerInnen Förderungsfonds, and ISS Austria, the property’s facility manager.
• While EPH’s primary investment focus remains on prestigious office properties in prime locations in major European cities, the Company also sees attractive further potential in the hotel sector. EPH already owns two hotels in Germany, located in Dresden and Berlin, and expanded its property portfolio with the acquisition of a 5-star hotel in Vevey by Lake Geneva in Switzerland. The acquisition was signed in 2023 and closed in January 2024, which means the property is not consolidated in the Group’s accounts for the year 2023. This historic hotel offers 16,000 square metres of space, 71 luxurious rooms, two restaurants, and a spa facility. EPH intends to redevelop the historic hotel, originally constructed in 1842, over the next few years. By strategically adding this value-add asset to the portfolio and acquiring the hotel operations with approximately 70 full-time employees, EPH is demonstrating confidence in the potential of the Swiss hotel market.
• Despite the positive operating performance, economic developments 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 2023.

FINANCIAL HIGHLIGHTS 2023