Consolidated Management Report H1 2024

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Maranta (Boadilla del Monte)

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Table of Contents

At a glance

Land bank*

21,172

units under management (vs. 18,003 units

at 31 March 2024)

Active units

16,928

units under management (vs. 13,901 units

at 31 March 2024)

Units under construction

9,980

units under management (vs. 9,473 units under management at 30 Sept. 2023)

Units sold

1,492

BTS units (vs. H1 2023/24:

887 BTS + 327 BTR units)

Average sales price for BTS units

€429k

(vs. €415k in FY 2023/24)

Order book

4,289**

units sold (€1.69bn**) (vs. 4,280 units (€1.45bn) at 30 Sept. 2023

1. The land bank at 30 September 2024 includes the units owned by AEDAS Homes (including the Priesa Group units); the units held through joint ventures; the units being managed for third parties; and the units whose acquisition was committed to but not closed as of the reporting date.

(**) Includes the Priesa Group units.

1.1 Statement from the CEO, David Martínez

Throughout the first half of FY 2024/25, our business momentum remained undeniably strong, marked by accelerating sales volumes that inject good visibility into our ability to generate revenue and deliver our goals. In parallel, we made solid strategic inroads, leveraging our positioning as a benchmark developer and showcasing our ability to take advantage of new opportunities and our commitment to affordable housing.

During the reporting period (1 April - 30 September 2024), we closed the acquisition of the Priesa Group (known as Inmobiliaria Espa- cio), framed by our strategic goal of consolidating the fragmented Spanish market. In parallel, we expanded our business footprint by concluding our first three Flex Living transactions (one of which came from the Priesa Group portfolio), in response to market demand for new living concepts and reinforcing our position as an industrial partner of reference for institutional capital. Additionally, we were awarded concessions for three affordable rental housing developments comprising 944 units under the umbrella of Plan Vive III. We broke ground on those developments just two months after signing the agreement with the Madrid authorities, adding to the 3,582 affordable housing units under construction for Plan Vive I, which are being managed by our team.

Sales momentum and increased visibility around delivery of our guidance

Between April and September 2024, we sold a total of 1,492 Build- to-Sell (BTS) units, year-on-year growth of 68% (excluding Build-to- Rent, or BTR, sales), for a total of €641 million. That meant that by the September close, we had already sold 90% of the homes slated for delivery in FY 2024/25, 56% of those due delivery in FY 2025/26 and 18% of the FY 2026/27 target.

The growth in demand drove a significant increase in our absorption rates, which oscillated at around 6%-7% (compared a rate of under 4% in the first half of last year).

Our BTS units sold for an average price of €429,000 euros during the first half of the year, confirming our positioning in the mid to upper

David Martínez, CEO

segment of the market, where demand is stable and our buyers are comfortably off, with above-average income levels, and in search of high-quality homes.

This healthy business momentum lends visibility to the company's revenue goal of around €1 billion.

Selective investment in land

Framed by AEDAS Homes' policy of investing selectively, opportunistically and cautiously in land, between April and September 2024, we closed or committed to the acquisition of new land, all of which is classified as ready-to-build, with development capacity of 1,121 new housing units, for €111 million.

This strategy is translating into a premium quality and liquid land bank that lends itself to natural and recurring asset turnover. At September 2024, the land bank under management amounted to 21,172 units, of which 80% were active, i.e., either at the design, marketing or construction phase, or complete and pending delivery. We expect that this managed land bank will allow us to deliver our future revenue goals.

Our healthy business momentum lends visibility to our annual revenue goal of €1 billion.

01. H1 2024/25 Executive summary

Diversified and growing platform

At the reporting date, of the 16,928 active housing units, 66% were fully consolidated by AEDAS Homes (including some for which the investment had yet to close at the reporting date) and the remaining 34% were units held through vehicles jointly owned by the company or developments being managed for third parties.

This spectrum of formulae for managing the company's land is giving shape to a diversified platform that is well positioned to make the most of opportunities (and to respond to market demands) and makes rational use of our capital.

By product type, 64% of the active units were BTS units; 27% were concession units (i.e., affordable housing built on land awarded under concessions); 5% were BTR units; and the remaining 4% were Flex Living units.

At 30 September, we had almost 10,000 units under construction, more than 5,900 at the design or marketing phase, and over 1,000 complete and ready to deliver, amply demonstrating our ability to scale up.

Earnings performance and business metrics

On the earnings front, our business generated total revenue of €307 million in the first half, year-on-year growth of 33%, thanks largely to the delivery of 922 units (738 to retail customers and 184 to one institutional partner).

In a market characterised by growing demand, we generated an overall gross profit of €69 million, EBITDA of €28 million and net attributable profit of €25 million, significantly above the figures recorded a year earlier, thanks to accelerating business momentum coupled with the impact of corporate transactions.

Our healthy first-half earnings performance allowed us to defend our solid financial position. Inventories amounted to €1.66 billion at the end of the reporting period, down year-on-year as a result of our joint investing strategy whereby we have brought outside capital into the land bank. The value of our investments in associates (equity interests + loans) amounted to over €100 million. All in all, this allowed us to end the first-half with €134 million of cash and a leverage ratio (LTV) of 26.8%.

AEDAS Homes therefore remains highly solvent: most of our debt is long term; borrowing costs are optimum; and working capital funding is stable. This, together with our efficient and predictable business model, business diversification, strong positioning and product quality, has allowed us to maintain our external credit ratings.

Jointly-owned vehicles + Management only

34%

16,928

active units under

management

66%

Fully consolidated by AEDAS Homes

Commitment to affordable housing

We are proud to continue to support affordable housing initiatives through public-private partnership arrangements, as is evident in the growth of our Real Estate Services division, which is managing the development of over 4,500 homes earmarked for affordable rent. These public-private partnerships, which are proving an effective solution for tackling the housing affordability issue, especially for young people, are becoming more and more popular among the various public authorities. We at AEDAS Homes have a team of experts who are working to develop and implement this model.

Outlook for the real estate market

After a period marked by uncertainty, the macroeconomic context has stabilised in the last six months, with the Spanish economy registering sustained growth and the monetary authorities cutting their benchmark rates. These conditions paint an even brighter picture for the real estate sector in Spain, whose fundamentals remain very solid, underpinned by strong demand, which is easily outstripping the supply of new housing.

The most recent official statistics estimate that an average of 245,000+ new households will form annually in Spain over the next 15 years, while the sector as a whole is producing fewer than 100,000 units each year. These figures provide an idea of the tremendous challenge facing the sector on the production side and indeed all of Spanish society, as well as a picture of the opportunities lying in store.

At AEDAS Homes we are ready to take on this challenge, leveraging our leadership position, proven execution capabilities and experienced team of professionals, and to deliver on the strategic plans and goals we have set ourselves for the years to come.

At AEDAS Homes we are ready to take on the sector's challenges and deliver on the strategic plans and targets we have set ourselves for the years to come.

However, the forecast growth in demand does not appear to be translating into commensurate growth in new housing. According to the most recent figures released by Spain's Ministry of Transport, Mobility and Urban Agenda (the "Ministry"), between 2019 and 2023, the supply of new-build housing increased by close to 433 thousand units, which is equivalent to 87 thousand new-buildhomes per year (or just 66 thousand if self-builds are excluded from the numbers). Despite the fact that the supply of housing has picked up in 2024, as borne out by year-on-year growth of 8% in completed units between January and July (56k new units in 7M24 vs. 52k in 7M23 (45k new units vs. 41k excluding self-builds, respectively)), the flow is still insufficient to meet current and prospective demand. As a result, the sector is structurally imbalanced, a situation which is possibly being accentuated by the scarcity of zoned land rather than construction costs, which have been stabilising following a bout of sharp inflation starting in 2020 (between January and July 2024 the cost of materials increased by 1.0% on average, while labour costs increased by 1.6% on average relative to the equivalent 7M23 figures).

Trend in new home completions in Spain

(000 units)

Source: Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA)

New-build housing transactions averaged just under 67k units per annum in the last three years and the figures for the first half of 2024 point to similar transaction volumes to those observed in the first six months of 2023.

The Spanish home development sector remains solid, thanks to dynamic activity levels underpinned by social and demographic trends that foreshadow sustained and growing demand.

Trend in new-build home sale transactions in Spain

(000 units)

Source: Spanish Ministry of Transport, Mobility and Urban Agenda (MITMA)

This mismatch between supply and demand is driving price growth in the new-build segment relative to the existing-home segment.

In fact, new-build house prices increased by 8% year-on-year in the first half of 2024 and by over 11% year-on-year in the second quarter, compared to somewhat slower price growth in the existing- home segment of 6% year-on-yearin the first half and of 7% in the second quarter. Overall, house prices are up 6% year-to-date,having increased by almost 8% year-on-yearin the second quarter of 2024.

Trend in house prices in Spain (%)

(Change year-on-year by quarter)

A structural imbalance between supply and demand is driving price growth in the new-build segment relative to the existing-home segment.

13%

11%

9%

11.2%

7.8%