Budapesti Ingatlan Hasznosítási es Fejlesztesi : BIF 2025 Half-Year Report

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2025 Half-Year Report Budapesti Ingatlan Hasznosítási és Fejlesztési nyilvánosan működő Részvénytársaság 2025 Half-Year Report Contents Consolidated, non-audited Financial Statements of Budapesti Ingatlan Hasznosítási és Fejlesztési nyilvánosan működő Részvénytársaság prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union for the period ending on 30 June 2025 - Interim Consolidated Financial Statements for H1 2025 Consolidated Business (management) Report to the Consolidated, non-audited Financial Statements of Budapesti Ingatlan Hasznosítási és Fejlesztési nyilvánosan működő Részvénytársaság prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union for the period ending on 30 June 2025 Declaration of liability Consolidated, non-audited Financial Statements of Budapesti Ingatlan Hasznosítási és Fejlesztési nyilvánosan működő Részvénytársaság prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union for the period ending on 30 June 2025 - Interim Consolidated Financial Statements for H1 2025 Table of Contents Consolidated Interim Financial Statements 3 Consolidated Interim Statement of Comprehensive Income 4 Consolidated Statement of Interim Changes in Equity 5 Consolidated Interim Cash-Flow Statement 6 Notes to the Statements - General corporate information, Key elements of the accounting policy, Additional explanations and Other additional information 7 General corporate information 7 Company profile 7 Officers and controlled companies 7 Officers in H1 2025 7 Change in senior executives, employees in strategic positions in H1 2025 8 Remuneration of senior executives in H1 2025 8 Persons authorized to sign the Interim Consolidated Financial Statements 8 Ownership structure 9 Information on the consolidated subsidiary 9 Key elements of the accounting policy 10 Approval and statement on compliance with the International Financial Reporting Standards 10 Basis of preparing the report 10 Valuation basis 10 Details of the business combination and the consolidated companies 11 Additional explanations 11 Investment property 11 Intangible and tangible assets 12 Investments in related companies 13 Financial assets 13 Deferred tax assets 13 Inventories 13 Trade receivables 14 Other short-term receivables and prepaid expenses and accrued income 14 Cash and cash equivalents 14 Subscribed capital and capital reserve 14 Revaluation reserve 15 Repurchased treasury shares 15 Retained earnings and profit for the year 16 Non-current financial liabilities 16 Provisions 16 Deferred tax liabilities 16 Other long-term liabilities 17 Short-term financial liabilities 17 Trade payables 17 Other short-term liabilities, and accrued expenses and deferred income 17 Net sales revenue 18 Other operating income 18 Own performance capitalized 19 Raw materials, consumables and other external charges 19 Staff costs 19 Depreciation and impairment 20 Other operating expenditure 20 Income from and expenses of financial operations 21 Actual tax expenditure 21 Deferred tax expense 22 Earnings per share 22 Information on business lines 22 P/L from fair valuation 24 Financial instruments 24 Remuneration of the Board of Directors and the Supervisory Board 24 1 Other additional information 25 Off-balance sheet items, litigation and other legal proceedings 25 Off-balance sheet items that may affect the Company's future liabilities 25 Litigation and other legal proceedings 27 Significant events after the end of the interim period (30 June 2025) 28 Special and other regulated disclosures in 2025 28 Authorization to publish financial statements 28 Declaration of Liability 28 2 Consolidated Interim Financial Statements HUF '000' Explanations* 30/06/2025 31/12/2024 ASSETS Non-current assets Investment property 1 84,302,259 84,300,782 Intangible assets 2 4,537 4,060 Goodwill 2 0 0 Land, buildings, concessions, licences and similar rights 2 81,074 82,079 Plant, other equipment and installations 2 2,592,600 2,632,574 Construction and reconstruction in progress 2 226,053 265,089 Investments in related companies 3 0 0 Financial assets 4 379,017 927,339 Deferred tax assets 5 0 0 Non-current assets, total 87,585,540 88,211,923 Current assets Inventories 6 74,751 79,245 Trade receivables 7 241,019 345,331 Other short-term receivables, and prepaid expenses and 8 1,447,557 1,348,712 accrued income Cash and cash equivalents 9 12,876,542 13,943,645 Current assets, total 14,639,869 15,716,933 Assets, total 102,225,409 103,928,856 LIABILITIES Equity Subscribed capital 10 2,870,244 2,870,244 Capital reserve 10 6,048,215 6,048,215 Revaluation reserve 11 731,904 731,904 Equity shares repurchased 12 -1,681,561 -1,681,561 Retained earnings 13 67,355,386 59,305,371 P/L for the reporting year 13 3,061,034 10,802,473 Equity allocated to the parent company, total: 78,385,222 78,076,646 Long-term liabilities Financial liabilities 14 16,988,865 17,895,603 Provisions for expected liabilities 15 38,763 26,733 Deferred tax liabilities 16 27,421 14,157 Other long-term liabilities 17 1,876,908 1,863,721 Long-term liabilities, total 18,931,957 19,800,214 Current liabilities Financial liabilities 18 1,774,258 1,775,556 Trade payables 19 694,332 846,381 Other short-term liabilities, and accrued expenses and deferred income 20 2,439,640 3,430,059 Current liabilities, total 4,908,230 6,051,996 Liabilities and equity, total 102,225,409 103,928,856 *No. of additional explanations 3 4 Consolidated Interim Statement of Comprehensive Income HUF '000' Explanations* H1 2025 H1 2024 Net sales revenue 21 6,683,410 6,327,412 Other operating income 22 108,236 83,427 Changes in internally generated inventories 23 0 -15,141 Capitalized value of internally generated assets 23 0 0 Raw materials, consumables and other external charges 24 -2,252,154 -1,227,480 Staff costs 25 -823,476 -567,055 Depreciation and impairment 26 -73,728 -99,283 Other operating expenditure 27 -730,464 -770,961 Operating P/L 2,911,824 3,730,919 Financial income 28 465,170 305,423 Financial expenses 28 -260,860 -235,772 P/L before tax 3,116,134 3,800,570 Actual tax expenditure 29 -41,836 -30,215 Deferred tax 30 -13,264 0 P/L after tax 3,061,034 3,770,355 Of this: Parent company's share 3,061,034 3,770,355 External owner's share 0 0 Other comprehensive income 0 0 Change in the fair value of other properties less taxes 0 0 Tax effect of changes in the fair value of other properties 0 0 Total comprehensive income 3,061,034 3,770,355 Of this: Parent company's share 3,061,034 3,770,355 External owner's share Weighted average ordinary shares 267,942,096 264,510,234 Earnings per share (HUF) Fund 31 11.42 14.25 Diluted 31 11.42 14.25 *No. of additional explanations Interim Consolidated Financial Statements for H1 2025 (non-audited) Consolidated Statement of Interim Changes in Equity Explanations* 10 12 10 11 13 13 P/L for the Equity Non- HUF '000' Subscribed capital Equity shares repurchased Capital reserve Revaluation reserve Retained earnings reporting year allocated to the parent company, total controlling participation Equity, total 5 31/12/2023 2,870,244 -2,304,224 6,048,215 731,904 44,360,298 10,567,736 62,274,173 62,274,173 Reclassification of P/L from the previous year Dividend 10,567,736 0 -10,567,736 0 0 Total comprehensive income 3,770,355 3,770,355 3,770,355 30/06/2024 2,870,244 -2,304,224 6,048,215 731,904 54,928,034 3,770,355 66,044,528 66,044,528 Sale of equity share 622,663 4,377,337 5,000,000 5,000,000 Total comprehensive income 7,032,118 7,032,118 7,032,118 31/12/2024 2,870,244 -1,681,561 6,048,215 731,904 59,305,371 10,802,473 78,076,646 78,076,646 Reclassification of P/L from the previous year 10,802,473 -10,802,473 Dividend -2,752,458 -2,752,458 -2,752,458 Total comprehensive income 3,061,034 3,061,034 3,061,034 30/06/2025 2,870,244 -1,681,561 6,048,215 731,904 67,355,386 3,061,034 78,385,222 78,385,222 *No. of additional explanations Consolidated Interim Cash-Flow Statement HUF '000' Explanations* 2025 H1 H1 2024 P/L before tax 3,116,134 3,800,570 Adjustments of the profit before taxes 18,040 -8,255 Adjusted profit before taxes 3,134,174 3,792,315 Net interest expenses 28 -228,839 7,002 Depreciation 26 73,728 31,375 Impairment (buyer) 26 0 0 Impairment of goodwill 26 0 67,908 Credit loss (buyer) 26 0 0 Unrealized exchange rate difference 0 0 Adjustment due to inventory fair valuation 27 0 10,893 P/L from a fair valuation 22, 27, 33 548,222 576,376 Provisions for liabilities 15 12,030 8,864 Revenues from the sale of tangible assets 0 -732 Assets provided for no consideration, scrapping 27 0 0 Change in trade receivables 7, 26 104,312 -42,313 Change in other current assets 6, 8 -94,352 221,008 Change in accounts payable 19 -152,049 156,063 Changes in other short-term liabilities 20 -990,419 -945,660 Change in short-term financial liabilities 18 13,188 0 Non-refundable subsidy received 0 0 Interest paid 28 -213,109 -215,089 Interest received 28 441,948 208,087 Income tax paid 29 -41,836 -30,215 Damages paid 0 0 Cash-flow from business activity 2,606,998 3,845,882 Purchase of tangible assets 1, 2 -545,186 -4,130,360 Cash proceeds from the sale of property, plant and equipment 0 732 Removal from consolidation 0 0 Increase in lease receivables 0 0 Decrease in lease receivables 548,321 0 Funds used for investments 3,135 -4,129,628 Income from capital issues 0 0 Dividend 13 -2,752,458 0 Equity purchase (-)/sale (+) 0 0 Interest paid 0 0 Loans 14 0 94,500 Loan repayment 14, 18 -750,448 -723,373 Increase in lease liabilities 0 0 Decrease in lease liabilities -156,290 0 Cash flow from financing activity -3,659,196 -628,873 Change in liquid assets -1,049,063 -912,619 Revaluation of foreign currency-denominated liquid assets -18,040 8,255 Balance-sheet change in liquid assets -1,067,103 -904,364 Cash flow from financing activities 9 -1,067,103 -904,364 Opening cash and cash equivalents 9 13,943,645 6,336,433 Closing cash and cash equivalents *No. of additional explanations 9 12,876,542 5,432,069 6 Notes to the Statements - General corporate information, Key elements of the accounting policy, Additional explanations and Other additional information General corporate information Company profile Budapesti Ingatlan Hasznosítási és Fejlesztési nyilvánosan működő Részvénytársaság (hereinafter: the "Company" or "BIF") was established on 31 January 1995 by transformation. Its legal predecessor is Budapesti Ingatlanhasznosítási és Fejlesztési Kft., which was founded on 1 January 1994 by the State Property Agency with a share capital of HUF 1 million. The subscribed capital of the Company is HUF 2,870,244,400, which consists of 287,024,440 ordinary registered shares, each with a nominal value of HUF 10, produced in a dematerialized form. Since 20 October 2017, the Company has been active as a regulated real estate investment pre-company (hereinafter: "SZIE"/"Pre-REIT") under Act CII of 2011 on regulated real estate investment companies (hereinafter: "SZIT"/"REIT Act"), and since 31 December 2018, it has been active as a regulated real estate investment company (hereinafter: "SZIT"/"REIT"). The Company is engaged in real estate development and utilization for its own properties (offices and other buildings and parking garages) by leasing out, further development and the sale of construction sites in its ownership, the implementation of real estate developments on them, and the utilization and sale of completed properties. The operational management of the Company is performed by the Board of Directors. The Company's shares are traded in the "PREMIUM" category of the Budapest Stock Exchange. The Company's notices are published on: the BSE ( https://www.bet.hu ) website, the MNB website ( https://www.kozzetetelek.mnb.hu ) and the Company's own website ( https://www.bif.hu ). The chartered IFRS accountant responsible for the preparation of this IFRS Interim Consolidated Financial Statements for H1 2025 is Dr Katalin Horváth Kalácska (H-1082 Budapest, Hock János u. 4-6.; chartered accountant registration number: 123362). The Company's auditor is Quercus Audit Könyvvizsgáló és Gazdasági Tanácsadó Kft. (registered office: H-8200 Veszprém, Radnóti tér 2/C, person responsible for the audit: Tölgyes András József). Officers and controlled companies Officers in H1 2025 Members of the Company's Board of Directors Name Position Beginning of assignment End of assignment Dr Anna Ungár President 30/04/2022 30/04/2027 Kristóf Berecz Vice-President 30/04/2022 30/04/2027 Dr Frigyes Hárshegyi member 30/04/2022 30/04/2027 Julian Tzvetkov member 30/04/2022 30/04/2027 Miklós Vaszily member 30/04/2022 30/04/2027 Members of the Company's Audit Committee Name Position Beginning of assignment End of assignment Dr Frigyes Hárshegyi member 30/04/2022 30/04/2027 Julian Tzvetkov member 30/04/2022 30/04/2027 Miklós Vaszily member 30/04/2022 30/04/2027 7 Ownership interest of executives, employees in strategic positions in the Company (30 June 2025) Nature Name Position Beginning of assignment End of assignment Direct shareholding (number of shares) Percentage of BIF shares with indirect influence BOD Dr Anna Ungár President of the BOD* and as from 4 May, 2022, also Chief Executive Officer 30/04/2022 30/04/2027 0 74.87% BOD Kristóf Berecz Vice-President and as from 1 December, 2018, Chief Executive Officer 30/04/2022 30/04/2027 0 74.87% BOD Dr Frigyes Hárshegyi Member of the BOD and the AC** 30/04/2022 30/04/2027 0 0 BOD Julian Tzvetkov member of the BOD and the AC 30/04/2022 30/04/2027 0 0 BOD Miklós Vaszily member of the BOD and the AC 30/04/2022 30/04/2027 0 0 SP Róbert Hrabovszki Deputy CEO, CFO 19/03/2018 Open-ended*** 0 0 *Board of Directors **Audit Committee ***Nature of employment Change in senior executives, employees in strategic positions in H1 2025 There was no change in the composition of the Board of Directors or the Audit Committee in the period between 1 January 2025 and 30 June 2025. None took place in the management of the Company in H1 2025. Remuneration of senior executives in H1 2025 By its resolution adopted on 30 April, 2025, the General Meeting of the Company decided that in the business year 2025, the members of the Board of Directors should perform their duties without remuneration, and the members of the Audit Committee should perform their duties for a gross monthly remuneration of HUF 400,000 per member in the business year of 2025. Persons authorized to sign the Interim Consolidated Financial Statements According to Article 15.2 of the Articles of Association, the following persons are authorized to sign for the Company: The President of the Board of Directors jointly with another member of the Board of Directors or with an employee authorized to represent the Company, The Vice-President of the Board of Directors, jointly with another member of the Board of Directors or an employee authorized to represent the Company. The Board of Directors is authorized to decide on the employees authorized to represent the Company. 8 Ownership structure Company owners holding more than 5% of the shares based on the shareholders' register and on the owners' individual declarations Shareholder 31 December 2024 30 June 2025 Number of shares Equity interest (%) Number of shares Equity interest (%) PIÓ-21 Kft. 214,889,885 74.87* 214,889,885 74.87* Equity shares** Assets managed by Mónika Káldi, trusted asset manager 16,101,240 5.61 15,731,240 5.48 Other shareholders 56,033,315 19.52 56,403,315 19.65 Total 287,024,440 100.00 287,024,440 100.00 * Of which an indirect share of 0.57% through the Company's subsidiary, BFIN Asset Management AG ** The Company may not exercise shareholder rights by the BIF ordinary shares in its ownership. The number of ordinary shares of BIF owned by the Company does not exceed 5%. Information on the consolidated subsidiary Vote and ownership shares Subsidiary Registered office 30 June 2025 31 December 2024 Harsánylejtő Kft. 1065 Budapest, Bajcsy-Zsilinszky út 57. 100.00% 100.00% The equity data of Harsánylejtő Kft. (as of 30 June 2025), '000': Equity 704,796 Subscribed capital 3,000 Committed reserve 792,500 Retained earnings -227,900 P/L after tax 137,196 The managing director of Harsánylejtő Ingatlanforgalmazó és -kezelő Kft. (hereinafter: "Harsánylejtő Kft." or "Subsidiary") is Dr. Anna Ungár, holding full power signatory rights with effect from 1 September 2024. The P/L of Harsánylejtő Ltd. for the reporting period is mainly derived from the rental started by the Company in the base year and from the activities of a building construction project, previously performed as a consultant and advisor, and then in the reporting year as a general contractor. Vote and ownership shares* "Sub-subsidiary" Registered office 30 June 2025 31 December 2024 Marischka Kft. 1012 Budapest Logodi u. 42. 100.00% 100.00% *indirect ownership through the Subsidiary The equity data of Marischka Kft. (as of 30 June 2025), '000': Equity -57,083 Subscribed capital 3,000 Committed reserve 106,000 Retained earnings -99,064 P/L after tax -67,019 With the acquisition of 100% of the shares of Marischka Kft. by Harsánylejtő Kft. on 9 May 2024, this company was also included in the scope of consolidation. The managing director of the limited liability company is János Bokor, who has full power signatory rights, with effect from 1 January 2021. 9 Marischka Kft. has been operating restaurants under the name "Marischka" on the ground floor of the property located at 99 Attila Street and 42 Logodi Street (residential property), in District I of Budapest, H-1012, since 1 August 2021, as well as under the name "Babutzi Breakfast, Brunch & Lunch" on the ground floor of the Major Udvar (Városmajor u. 12) office building (located at 12-14 Városmajor Street in District XII of Budapest) since 17 October 2022. In addition, the restaurant in the Flórián Udvar Office Building has also been operated by Marischka Kft. since 1 August 2024. On 14 August 2025, Harsánylejtő Kft. settled the equity position of Marischka Kft. by paying an additional contribution of HUF 61 million, as ordered by the founders' resolution. Key elements of the accounting policy In these Consolidated Interim Financial Statements, the Company has applied the same accounting policies and the same method of computation as in the last annual financial statements. There is no cyclicality or seasonality in the operation of the Company. These interim consolidated financial statements have not been audited by an independent auditor. Approval and statement on compliance with the International Financial Reporting Standards The Board of Directors has approved the Interim Consolidated Financial Statements. These Interim Consolidated Financial Statements have been compiled on the basis of the Financial Reporting Standards promulgated and filed in the form of a regulation in the Official Journal of the European Union (EU). IFRS comprises standards and interpretations worded by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC). Unless otherwise indicated, the Interim Consolidated Financial Statements are presented in Hungarian forint, rounded to the thousand. Basis of preparing the report The interim consolidated financial statements have been prepared in accordance with the standards and IFRIC interpretations published and effective as of 1 January 2025, as adopted by the European Union (hereinafter referred to as "IFRS"). The Interim Consolidated Financial Statements have been compiled on the basis of the direct cost principle, with the exception of the cases where IFRS requires the application of a different method of measurement, as described in the accounting policy. Valuation basis For the Interim Consolidated Financial Statements, the measurement basis is the original cost, except for the following assets and liabilities, which are stated at fair value: derivative financial instruments, financial instruments at fair value through profit or loss and investment property. During the compilation of the financial statements compliant with the IFRS standards the management needs to apply professional judgment, estimates and assumptions that have an impact on the applied accounting policy and on the sum total of the assets and liabilities, revenues and costs recognized in the report. The estimates and related assumptions are based on past experiences and numerous other factors, which can be considered as reasonable under the given conditions, and which have a result that lays the ground for the estimate of the book value of the assets and liabilities that cannot otherwise be clearly specified from other sources. The actual results may differ from these estimates. Estimates and basic assumptions are regularly reviewed. Modifications of the accounting estimates are disclosed in the period when a particular estimate is modified if the modification only affects the given year, and in the period of modification as well as in future periods if the modification affects both the current and the future years. 10 Details of the business combination and the consolidated companies Vote and ownership shares Subsidiary Registered office 30 June 2025 31 December 2024 Harsánylejtő Kft. 1065 Budapest, Bajcsy-Zsilinszky út 57. 100.00% 100.00% Vote and ownership shares* Sub-subsidiary Registered office 30 June 2025 31 December 2024 Marischka Kft. 1012 Budapest Logodi u. 42. 100.00% 100.00% *indirect ownership through the Subsidiary Additional explanations Investment property HUF '000' as at 31 December 2024 84,300,782 Change in fair value -548,222 Change in assets in the course of construction 241,985 Capitalization 307,714 Sales 0 as at 30 June 2025 84,302,259 as at 31 December 2024 84,300,782 as at 30 June 2025 84,302,259 Investment properties are valued by an independent valuer based on the following criteria: According to Article 11 (1) of Act CII of 2011 on regulated real estate investment companies, the valuation of properties in the portfolio of a regulated real estate investment company may be performed by the market sales comparison appraisal method, the income appraisal method, or the method based on cost appraisal with the proviso that the choice of the appraisal method must be justified in detail and subsequently, the same method must be used for each property in each period. The value of the investment property changed in H1 2025 as a result of the following: Change to the fair value of investment properties (see also paragraphs 22 and 27); Change in assets in the course of construction arises from the ongoing developments of the existing properties; Investments realized in the course of the year on the existing properties, completion of developments in progress. There were no sales in the six months under review. The Volosko1 property is measured at cost in accordance with paragraph 53 of IAS40. ‌1 Property located at 320170 Volosko, parcel number 132/9 (Volosko), in Croatia 11 Profit from income-generating investment property HUF '000' H1 2025 H1 2024 Net sales revenue 6,032,661 4,964,963 Other operating income 69,817 9,804 Capitalized value of internally generated assets 0 0 Changes in internally generated inventories 0 0 Raw materials, consumables and other external charges -1,725,495 -1,036,704 Staff costs -165 0 Depreciation and impairment -16,869 -11,414 Other operating expenditure -697,059 -750,389 Revenues from financial operations 30,602 7,541 Expenses on financial operations -199,228 -199,861 P/L before tax 3,494,264 2,983,940 The increase of approximately 22% in net sales of investment properties compared to the base period was mainly due to the enforcement of rent and operating fee increases (indexations) under the lease agreements and the proceeds from office fit-out works carried out in line with the tenant's requirements related to the lease of BIF Tower (the 13-storey category "A" office building located at 114-116 Üllői Street, District X of Budapest). Other operating income increased by 7 times the base period due to a significant compensation received by the Company in the period for the early termination of a fixed-term contract. Of other operating expenses, HUF 149 million is accounted for by building taxes settled with various local governments, and also includes the adverse effect on the fair value measurement of investment properties (approximately HUF 548 million, see also Section 27). Intangible and tangible assets HUF '000' Intangible assets Other properties Machinery and equipment Assets in the course of construction and advances Total Gross book value 31 December 2024 18,522 101,342 2,917,832 265,089 3,302,785 Increase Decrease 2,123 0 0 0 31,103 0 0 -39,036 33,226 -39,036 30 June 2025 20,645 101,342 2,948,935 226,053 3,296,975 31 December 2024 14,462 19,263 285,258 0 318,983 Annual write-off 1,646 1,005 71,077 0 73,728 30 June 2025 16,108 20,268 356,335 0 392,711 Net book value 31 December 2024 4,060 82,079 2,632,574 265,089 2,983,802 30 June 2025 4,537 81,074 2,592,600 226,053 2,904,264 Increase in the gross value of technical machinery and equipment was due to the acquisition of office administrative and computer equipment. Increase in intangible assets resulted from the acquisition of various software tools. There were no changes in the other real property category in H1 2025. Decrease in the work in progress is due to the activation of completed projects. 12 Goodwill appears as a new element in the Company's consolidated balance sheet in the base year, valued as the difference between the purchase price of the Marischka Kft. share and its net asset value at the time of acquisition, but with a value of zero due to the 100% impairment recognized. HUF '000' Goodwill Description Opening Increase Decrease Closing Goodwill 67,908 0 0 67,908 Impairment of goodwill -67,908 0 0 -67,908 Total 0 0 0 0 Investments in related companies The H1 2025 balance sheet does not include any amounts under Investments in associated companies, similarly to the year 2024. Although Marischka Kft. included in the company group on 9 May, 2024 as a 100% subsidiary of Harsánylejtő Kft., the Company fully incorporates both Harsánylejtő Kft. and Marischka Kft. into the consolidation process, thus the value of these investments is eliminated during consolidation. Financial assets In the consolidated balance sheet of the Company, a new line item appears under Financial Assets, which relates to a long-term leased property managed by Harsánylejtő Kft. and subleased on a long-term basis. This line item represents the portion of the receivable treated as a long-term lease in accordance with IFRS standards that extends beyond one year. HUF '000' 30/06/2025 31/12/2024 Financial assets 379,017 927,339 Total 379,017 927,339 Deferred tax assets Due to its REIC status, the Company has no deferred tax assets. Inventories HUF '000' 30/06/2025 31/12/2024 Raw materials 14,398 18,892 Work in progress 26,376 26,376 Finished product 0 0 Goods 33,977 33,977 Prepayments on inventories 0 0 Total 74,751 79,245 The overwhelming majority (81%) of the Inventories is made up of the cost of the Company's building plots and the value of the property developments booked on these plots. There were no changes in either inventories or work in progress in H1 2025. With the acquisition of Marischka Kft., performed in 2024, raw materials (restaurant) have been added to the inventory, accounting for 19% of the total inventory. 13 Trade receivables HUF '000' 30/06/2025 31/12/2024 Trade receivables -15,889 -61,941 Impairment -202,030 -202,030 Credit loss -16,645 -16,645 Adjustment due to trade debtors with a credit balance 475,583 625,947 Total 241,019 345,331 The "accounts receivable" line shows a significant increase of approximately HUF 104 million (-30%) compared to the year-end, primarily resulting from two opposing changes: (i) HUF 46 million increase in accounts receivable and (ii) a HUF 150 million decrease in rent and operational fees that have been prepaid by tenants but only relate to the following period (reflected under the correction line for customers with outstanding balances). However, the amount of impairment losses recognized and the amount of credit losses recognized in accordance with IFRS 9 remained unchanged in H1 2025. Other short-term receivables and prepaid expenses and accrued income HUF '000' 30/06/2025 31/12/2024 Receivables from leases 749,140 752,607 Other receivables 483,729 483,072 Accruals 165,356 109,204 Suppliers with a debit balance, and taxes 49,332 3,829 Total 1,447,557 1,348,712 Reasons for the change in the current period: Lease receivables appeared as a new item in 2024 under "Other short-term receivables". This pertains to a long-term leased property managed by Harsánylejtő Kft. and subleased on a long-term basis, and represents the portion of the receivable treated as a long-term lease in accordance with IFRS standards that is due within one year. Other receivables include VAT on advances received from tenants, VAT that affects H1 2025 on rental and operating fee invoices due in H2 2025, and the deductible VAT amounts that will appear in the next period's VAT return. Accrued income and prepaid expenses increased by HUF 56 million (51%), partly due to the accrual of pro-rata fees and costs paid to suppliers in H1 2025 but to be recognized in the second half of the year (HUF 53 million) and partly due to the accrual of revenues relating to H1 2025 but only due in H2 2025 (HUF 112 million). The balance due between suppliers and taxes in the amount of HUF 13 million results from VAT receivables, while HUF 36 million arises from reclassification of advance payments to suppliers. Cash and cash equivalents HUF '000' 30/06/2025 31/12/2024 Cash on hand 8,629 6,848 Bank 12,867,913 13,936,797 Total 12,876,542 13,943,645 The main reason for the approximately HUF 1,067 million decrease (-8%) in cash and cash equivalents in H1 2025 was the dividend payment performed in June 2025. Subscribed capital and capital reserve The share capital of the Company is HUF 2,870,244 thousand, consisting of 287,024,440 ordinary shares of HUF 10 each in dematerialized form as of 30 June 2025. The share capital according to IFRS is the same as the share capital registered by the Companies Court. 14 The amount of the Company's subscribed capital did not change in H1 2025. Subscribed capital HUF '000' 30/06/2025 31/12/2024 Opening 2,870,244 2,870,244 Increase 0 0 Decrease 0 0 Closing 2,870,244 2,870,244 Capital reserve HUF '000' 30/06/2025 31/12/2024 Opening 6,048,215 6,048,215 Increase 0 0 Decrease 0 0 Closing 6,048,215 6,048,215 The capital reserve includes the amount of the difference between the nominal value and the consideration of the shares at the time of the share issue, and the value of the funds and assets placed in the capital reserve, however, there was no such share transaction performed in H1 2025. Revaluation reserve HUF '000' 30/06/2025 31/12/2024 Opening 731,904 731,904 Increase 0 0 Decrease 0 0 Closing 731,904 731,904 In the balance sheets of 2024 and H1 2025, the Company recognizes in the valuation reserve the previous revaluation of the Aranykéz Street Parking Garages (the property at 4-6 Aranykéz Street, District V of Budapest), recognized in accordance with the fair value model under IAS16 (and adjusted for deferred tax). Repurchased treasury shares The Company recognizes its equity shares in the balance sheet at cost as repurchased treasury shares reducing the equity. The number of treasury shares owned by the Company decreased from 22,514,206 to 11,778,639 by the end of the base year, as 10,735,567 treasury shares were sold in September 2024, with a derecognized carrying amount of HUF 622,663 thousand. During the reporting period, the number of treasury shares held by the Company remained at 11,778,639, as there were no transactions involving treasury shares in H1 2025. HUF '000' 30/06/2025 31/12/2024 Opening -1,681,561 -2,304,224 Increase 0 0 Decrease 0 622,663 Closing -1,681,561 -1,681,561 15 Retained earnings and profit for the year HUF '000' 30/06/2025 31/12/2024 Retained earnings Opening 70,107,844 54,928,034 Increase 0 4,377,337 Decrease -2,752,458 0 Closing 67,355,386 59,305,371 P/L year for the reporting 3,061,034 10,802,473 Closing 70,416,420 70,107,844 The opening amount of retained earnings shows an increase due to the transfer of the profit of HUF 10,802,473 thousand for the year 2024, while the decrease for the reporting period was due to the dividend amount voted by the General Meeting, which is payable on the profit for the year 2024, with payments starting on 6 June 2025. Non-current financial liabilities HUF '000' 30/06/2025 31/12/2024 Lease liabilities 259,511 415,801 Long-term loans 16,729,354 17,479,802 Total 16,988,865 17,895,603 Lease liabilities have appeared as a new item in 2024 under "Long-term financial liabilities", and pertain to a long-term leased property managed by Harsánylejtő Kft. This represents the portion of the obligation treated as a lease in accordance with IFRS standards that extends beyond one year. Long-term loans include the full amount of long-term bank loans. The main figures for each bank loan are given in Section IV.1.1. The instalments of these bank loans due in H2 2025 and H1 2026 are included in short-term borrowings (see: Section 18). Provisions HUF '000' 30/06/2025 31/12/2024 Provisions for contingent liabilities 38,763 26,733 Total 38,763 26,733 In H1 2025, in its accounts the Company only recognized a provision for untaken holidays of approximately HUF 25.4 million, with a further provision of approximately HUF 13.4 million arising from the provision for expected liabilities recognized by the Subsidiary in previous years. Deferred tax liabilities Due to transformation into Pre-REIT, the Company has eliminated the previously recognized deferred tax liability, as in the future its tax liability is not expected to arise in the normal course of business. However, due to the differing acquisition costs of high-value tangible assets purchased by the Subsidiary in the reporting year according to HAS and IFRS, as well as the differences in depreciation recognized by accounting and corporation tax laws, the subsidiary incurred a deferred tax liability of HUF 14 million, which increased by an additional HUF 13 million in the reporting period. HUF '000' 30/06/2025 31/12/2024 Deferred tax liabilities 27,421 14,157 Total 27,421 14,157 16 Other long-term liabilities HUF '000' 30/06/2025 31/12/2024 Other long-term liabilities 1,292,287 898,676 Lease-related liabilities 584,621 965,045 Total 1,876,908 1,863,721 31% of the "other long-term liabilities" arise from the present value of the differences between those amounts treated as lease liabilities and lease receivables regarding a property leased long-term by Harsánylejtő Kft. This amounts to the portion extending beyond one year, which is 69%, and results from the transfer of deposits related to the Company's long-term lease agreements (those due beyond 12 months after the reporting period), which is 44% higher than the previous year. Short-term financial liabilities HUF '000' 30/06/2025 31/12/2024 Short-term portion of loans 1,500,899 1,500,899 Other financial liabilities 273,359 274,657 Total 1,774,258 1,775,556 85% of the current financial liabilities consist of the amounts due within one year (in H2 2025 and H1 2026) from the Company's long-term bank loans (see also Section 14 above), while 15% relates to the portion of the lease liabilities of Harsánylejtő Kft. calculated according to IFRS that is due within the year. Trade payables HUF '000' 30/06/2025 31/12/2024 Trade payables 694,332 846,381 Total 694,332 846,381 Suppliers decreased by HUF 152 million (18%) compared to the previous year-end. At the end of the reporting period, 65% of the accounts payable is from the books of the Company, 33% from the books of the Subsidiary and 2% from the books of the Sub-Subsidiary. Other short-term liabilities, and accrued expenses and deferred income HUF '000' 30/06/2025 31/12/2024 Advances + security deposit + VAT adjustment 887,611 1,154,821 Wages + taxes + wage taxes 534,377 501,177 Liabilities to owners in relation to dematerialization 75,280 75,280 Accruals 448,191 1,045,714 Adjustment due to trade debtors with a credit balance 494,181 653,067 Other 0 0 Total 2,439,640 3,430,059 17 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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