Gateway Real Estate : Q1 statement / Q1 financial report 2025

About this update from Gateway Real Estate Ag

2 5 interim management statement as of march 31 gateway real estate ag Interim management statement as of March 31, 2025 at a glance key financial indicators in € thousand 01/01- 03/31/2025 01/01- 03/31/2024 Financial performance indicators Revenue 11,473 39,200 Gross profit 27,835 28,932 ebit adjusted 8,612 10,047 ebt -4,691 -4,757 Consolidated profit/loss -6,348 -5,800 Earnings per share in € -0.03 -0.03 Financial position and liquidity ratios 03/31/2025 12/31/2024 Total assets 1,284,683 1,272,298 Equity 63,862 70,210 Equity ratio 5.0% 5.5% Cash and cash equivalents 4,475 10,179 Net financial debt 1,051,033 1,024,284 Portfolio indicators 03/31/2025 12/31/2024 Average gross development volume (gdv) in € billion 4 4 Number of projects (as of end of March) 10 10 For technical reasons, rounding differences may occur in tables and references compared to the mathematically precise values. 02 gateway real estate ag Interim management statement as of March 31, 2025 overview of the first three months of 2025 gateway closes the first Quarter of 2025 with a consolidated net loss ebit amounts to €-4.7 million in the first three months of 2025 gross development volume (gdv) amounts to €3.8 billion as of march 31, 2025 ebit adjusted reaches €8.6 million in the first three months of 2025 earnings per share amount to €-0.03 in the first three months of 2025 forecast for 2025: ebit adjusted of €110-120 million and ebt of €20-30 million 03 gateway real estate ag Interim management statement as of March 31, 2025 about us gateway real estate ag, together with its subsidiaries, is one of the leading listed developers of residential real estate and urban Quarters in germany, using resource-saving wood construction methods. the focus of our real estate development activities is on sustainability and responsible use of resources. our aim is to minimize detrimental effects on the environment by following a green building approach. thus, we make a significant contribution to reducing the carbon dioxide concentration in the earth's atmosphere. we develop sustainable and modern living Quarters using wood construction methods across germany, primarily in selected high-growth regions. we are committed to the highest level of professionalism and sustainability in project development and to delivering tailor-made risk-optimized solutions, and can rely on an experienced management team. a challenging and sustainable project development that is in line with market needs reQuires an intense collaboration of specialists that complement and inspire each other. in terms of development, we cover the entire value chain from the acQuisition of land and projects through development and construction to the sale of the properties. 04 Interim management statement as of March 31, 2025 Fundamental information on the Group and strategy interim group management report fundamental information on the group and strategy Gateway Real Estate ag (in the following also referred to as "gateway", "Company" or "Group", in each case referring to the gateway Group as a whole) is a listed developer of residential real estate in Germany with a market capitalization of around €148 million (as of March 31, 2025). Established in 2006, gateway can look back on extensive expertise in the German real estate market and is currently (as of March 31, 2025) developing real estate with a gross development volume (gdv) of €3.7 billion. In this context, gateway focuses on Germany's selected high-growth areas and covers all of the important steps in the value creation chain of a development project with its own in-house teams. In all of its project developments, gateway pursues the strategy of generating attractive margins and, at the same time, minimizing the project development risk by means of a detailed process management. In fiscal year 2020, the Management Board and the Supervisory Board jointly decided to build residential real estate in future also for the Company's own portfolio (build-to-hold). Since then, in the context of this extended corporate strategy, gateway has been increasingly seeking to develop residential real estate for long-term holding and administration to generate sustainable rental revenues. Accordingly, the Standing Assets and Residential Properties Development segments will be expanded further in the medium term. In 2021, gateway sold all its shares in Development Partner ag and, except for three commercial properties development projects in Berlin, discontinued nearly all its activities in the Commercial Properties Development segment in order to focus its development activities increasingly on the Residential Properties Development segment and develop residential real estate and urban quarters. However, as the necessary shareholder approval could not be obtained, three development projects for commercial properties in Berlin have remained in gateway's ownership and are planned to be sold over time. gateway regularly carries out sensitivity analyses in connection with the calculation and supervision of projects and the related financing arrangements, in which the effects of potential increases in construction costs are examined and suitable countermeasures taken to offset them are reviewed. Upon purchase, all our projects are generally evaluated and analyzed on an individual basis. In order to facilitate a close cost control and management, a regular internal meeting is held each month for each project, with the Management Board also being involved in each case. In connection with all sales of real estate and development projects, the Management Board, in turn, has to liaise with the Real Estate Committee, which consists of two members of the Supervisory Board and must grant its approval for the transaction. When acquiring new plots of land, gateway focuses on space where there are no finally approved zoning or land use plans. This enables gateway to leverage potential value thanks to its long-standing expertise in the process of obtaining planning permissions and to actively determine the planning process for developments early on. gateway's focus as regards land purchases is always on real estate development rather than the speculative resale of undeveloped sites. Accordingly, gateway also lives up to its corporate social responsibility by newly constructing much needed residential space in Germany. In connection with the sale of its development projects, gateway primarily addresses institutional investors, operates on the basis of lean and recurring sales structures and primarily follows a forward sales model pursuant to which properties are sold to investors once the building permit is obtained. gateway then completes the projects, but generates revenue already upon the conclusion of a forward sales contract based on the progress of the construction activities. This strategy, together with contractually agreed payment schedules, enables gateway to generate long-term and stable cash flows from its development projects. gateway is continuing its existing business of holding properties to generate stable and sustainable cash flows in order to diversify risk. Interim management statement as of March 31, 2025 Business development Financial position Cash flows business development In the first three months of 2025, the existing project developments progressed as planned. The progress of the SoHo Mannheim project led to revenues of €11.2 million. financial position The gateway Group's total assets increased slightly as of March 31, 2025 by €12.4 million to €1,284.7 million (December 31, 2024: €1,272.3 million). On the assets side, the increase mainly resulted from current assets, which rose by €12.5 million to €1,076.3 million. This was primarily attributable to an increase in inventories of €15.6 million, driven by the ongoing capitalization of construction work and construction period interest in the amount of €22.4 million, less the disposal of project costs of €-7.1 million in connection with the forward sale of the SoHo Mannheim project. In addition, other financial assets increased by €2.2 million, which was mainly due to the increase in contract assets from forward sales, in particular in the SoHo Mannheim project. By contrast, cash and cash equivalents decreased by €5.7 million to €4.5 million as a result of the cash flows described above. On the liabilities side, the Group's non-current liabilities amounted to €183.1 million as of the reporting date (December 31, 2024: €180.8 million). The majority was attributable to non-current financial liabilities in the amount of €144.2 million (December 31, 2024: €144.3 million). Current liabilities increased to €1,037.7 million as of March 31, 2025 (December 31, 2024: €1,021.2 million). Of this amount, €90.0 million was attributable to trade payables (December 31, 2024: €88.0 million) and €904.3 million to current financial liabilities (December 31, 2024: €883.2 million). The increase mainly resulted from accrued interest and additions to financing for project developments. Other current provisions decreased by €4.3 million to €15.8 million as a result of utilizations. The gateway Group's equity amounted to €63.8 million as of March 31, 2025 (December 31, 2024: €70.2 million). The decrease is attributable to the negative consolidated total comprehensive income of €-6.3 million. Due to the increase in total assets, the equity ratio decreased slightly to 5.0% (December 31, 2024: 5.5%). cash flows The cash flows incurred in the first three months of the fiscal year 2025 led overall to a decrease in cash and cash equivalents as of March 31, 2025. The decrease mainly resulted from cash flows from operating activities, which were characterized by the repayment of liabilities. In the same period of the previous year, the net decrease in cash and cash equivalents primarily resulted from the repayment of financing for the Hamburg Seevestraße project in the amount of €35.0 million. The cash inflows generated from the disposal of the project in the same amount increased cash flows from operating activities; however, these were reduced over time due to progressing construction activities and the associated expansion of inventories. - condensed cash flow statement in € thousand 01/01- 03/31/2025 01/01- 03/31/2024 Cash flows from operating activities -14,898 16,792 Cash flows from investing activities -125 2,865 Cash flows from financing activities 9,320 -23,702 Net decrease in cash and cash equivalents -5,703 -4,045 Cash and cash equivalents as of 01/01 10,179 8,121 Cash and cash equivalents as of the end of the period 4,475 4,076 Cash flows from operating activities amounted to €-14.9 million in the first three months of the fiscal year 2025 (Q1 2024: €16.8 million). The cash outflow mainly resulted from the expansion of inventories as well as the repayment of current liabilities. In the same period of the previous year, positive cash flows from operating activities were generated in particular due to the disposal of the Hamburg Seevestraße project property in the amount of €35.0 million. Cash flows from investing activities were negative at €-0.1 million and thus below the prior-year figure of €2.9 million. The cash outflows mainly resulted from investments in yield properties. In the previous year, cash inflows were generated from government grants for a project of the SoHo Mannheim project development. Interim management statement as of March 31, 2025 Cash flows from financing activities amounted to €9.3 million (Q1 2024: €-23.7 million). This mainly resulted from the repayment of loans in the amount of €-5.1 million and proceeds from the raising of financial loans in the amount of €14.4 million. In the same period of the previous year, loan liabilities were repaid in connection with the financing of the Hamburg Seevestraße project in the amount of €25.4 million. Overall, there was a net decrease in cash and cash equivalents of €-5.7 million in the first three months of the fiscal year 2025. Accordingly, cash and cash equivalents amounted to €4.5 million as of March 31, 2025, after €10.2 million as of December 31, 2024. financial performance In the first quarter of 2025, the Group generated revenues of €11.5 million (Q1 2024: €39.2 million). These mainly resulted from the progress of a forward sale contract for the "SoHo Mannheim" project in the amount of €7.6 million. In the same period of the previous year, revenues were significantly influenced by the sale of the Hamburg Seevestraße project property with a purchase price of €35.0 million. Revenue from rental services decreased slightly to €3.9 million (Q1 2024: €4.2 million). Changes in inventories amounted to €15.3 million (Q1 2024: €-11.0 million) and mainly consist of ongoing capitalized construction work and construction period interest totaling €22.4 million. This was offset by the disposal of project costs of €-7.1 million relating to the "SoHo Mannheim" project. In the previous year, the disposal of the Hamburg Seevestraße project property in the amount of €-35.0 million had a significant impact. Including the increase in other operating income by €0.4 million to €1.1 million, total operating income amounted to €27.8 million (Q1 2024: €28.9 million). Costs for raw materials and consumables used amounted to €14.3 million in the reporting period and thus decreased by €0.3 million compared to the prior-year period. They mainly comprise production costs of inventory properties of €9.2 million (Q1 2024: €13.3 million), impairment losses of €3.8 million (Q1 2024: €0.0 million), and operating costs of rented properties of €1.3 million (Q1 2024: €1.4 million). In the first three months of the fiscal year 2025, employee benefits expense increased by €0.4 million to €1.3 million due to a higher headcount. Other operating expenses amounted to €3.6 million, slightly above the prior-year level of €3.3 million. In this context, impairment losses on receivables in the amount of €1.4 million were recognized (Q1 2024: €1.8 million). Overall, gateway generated an operating result of €-8.6 million in the first three months of the fiscal year 2025 (Q1 2024: €10.0 million). Financial performance Report on risks and opportunities Net finance costs for the first three months of the fiscal year 2025 amounted to €-13.3 million (Q1 2024: €-14.8 million) and include interest expenses of €15.9 million (Q1 2024: €18.0 million). Interest expenses were offset by interest income of €2.6 million (Q1 2024: €3.2 million). Earnings before tax (ebt) amounted to €-4.7 million (Q1 2024: €-4.8 million). After deducting income taxes of €1.6 million (Q1 2024: €1.0 million), the consolidated net loss for the first three months of the fiscal year 2025 amounted to €-6.3 million (Q1 2024: €-5.8 million). This corresponds to basic earnings per share of €-0.03 (Q1 2024: €-0.03) and diluted earnings per share of €-0.03 (Q1 2024: €-0.03). ebit adjusted amounted to €8.6 million (Q1 2024: €10.0 million). report on risks and opportunities The risks that Gateway Real Estate ag is exposed to within the framework of its business activities, as well as the opportunities arising for the Company were described in detail in the 2024 Annual Report on pages 42-50. In this context, the Group's risk management system was explained, property-specific and company-specific risks and their respective probability of occurrence were presented as well as their potential financial effects were classified based on a risk classification. Overall, the ability of the Group to continue as a going concern is dependent on sufficient liquidity being generated through the scheduled realization of project sales and on unplanned outflows of liquidity being avoided as part of loan extensions. If, contrary to the expectations of the Management Board, a significant portion of the financing that has not yet been extended is not prolonged and, at the same time, the sale of significant projects cannot be realized as planned - in particular not at the intended dates and disposal prices - this would jeopardize the continued existence of the subsidiaries involved in these projects. Any deviations from the measures set forth in the extension agreements could likewise jeopardize the continued existence of the subsidiaries involved in these projects. Due to guarantees and sureties granted as of the reporting date in the amount of €85.5 million, such a development could also have an impact on the parent company and thus on the entire Group. Based on the progress of the projects, the Management Board currently does not anticipate that these guarantees and sureties will be utilized. Interim management statement as of March 31, 2025 In this context, we expressly refer to the disclosures in the notes to the 2024 consolidated financial statements in the sections "2.1 Basis of the consolidated financial statements" on page 65, "3.7 Liquidity risk" on page 87, "8.8 Significant events after the reporting date" on page 129 as well as the disclosures in the 2024 Group management report in the sections "3.2.2 Company-specific risks" on page 45 and "3.2.3 Overall assessment of the risk situation" on page 50, where the Management Board describes the existing going concern risks with respect to financing and liquidity. Financial difficulties of other companies may open up opportunities to acquire properties in particularly attractive locations or subject to particularly favorable terms. This would also offer the opportunity to acquire properties at prices that are lower than originally assumed. For further details, we refer to the report on opportunities in the 2024 Annual Report on page 50. Report on expected developments report on expected developments outlook for the gateway group By way of an ad hoc announcement dated 31 March 2026, gateway published preliminary and unaudited figures for the fiscal year 2025. Based on these preliminary and as yet unaudited figures, the Management Board expects the fiscal year 2025 to be concluded with earnings before taxes (ebt) in a range of €110-120 million and an adjusted ebit of €20-30 million. As a result of the disposals carried out, the Management Board expects gross development value (gdv) to decline in 2025. Interim management statement as of March 31, 2025 ifrs consolidated statement of financial position interim consolidated financial statements as of march 31, 2025 ifrs consolidated statement of financial position as of march 31, 2025 assets in € thousand 03/31/2025 12/31/2024 Non-current assets Intangible assets and goodwill 0 0 Property, plant and equipment 0 0 Investment properties 113,412 113,300 Investments accounted for using the equity method 0 0 Other non-current financial assets 82,770 85,027 Deferred tax assets 12,154 12,057 208,336 210,384 Current assets Inventories 910,406 894,739 Trade receivables 1,147 2,677 Income tax receivables 128 135 Other financial assets 17,758 13,691 Other non-financial assets 62,852 60,913 Cash and cash equivalents 4,475 10,179 Non-current assets held for sale 79,580 79,580 1,076,347 1,061,914 1,284.683 1,272,298 eQuity and liabilities in € thousand 03/31/2025 12/31/2024 Equity Subscribed capital 186,764 186,764 Reserves -389,131 -389,131 Retained earnings 279,743 285,973 Non-controlling interests -13,514 -13,396 63,862 70,210 Non-current liabilities Non-current financial liabilities 144,235 143,667 Deferred tax liabilities 410 431 Other non-current financial liabilities 38,429 36,741 183,074 180,839 Current liabilities Other current provisions 15,777 20,035 Current financial liabilities 904,334 883,206 Income tax liabilities 5,521 6,581 Trade payables 89,989 88,039 Other financial liabilities 6,529 7,159 Other non-financial liabilities 5,117 5,529 Long-term debt held for sale 10,480 10,600 1,037,747 1,021,249 1,284,683 1,272,298 Interim management statement as of March 31, 2025 ifrs consolidated statement of comprehensive income ifrs consolidated statement of comprehensive income from january 1 to march 31, 2025 in € thousand 01/01- 03/31/2025 01/01- 03/31/2024 Total Total Revenue 11,473 39,200 Changes in inventories of finished goods and work in progress 15,284 -10,983 Other operating income 1,078 714 Gross profit 27,835 28,932 Raw materials and consumables used -14,308 -14,650 Employee benefits expense -1,334 -935 Amortization, depreciation and impairment on intangible assets and property, plant and equipment -13 -24 Other operating expenses -3,568 -3,276 Operating profit 8,612 -10,047 Finance income 2,612 3,226 Finance costs -15,914 -18,030 Net finance costs -13,302 -14,804 Profit/loss before tax -4,691 -4,757 Income tax expense -1,658 -1,043 Profit/loss for the period -6,348 -5,800 Other comprehensive income/loss 0 0 Total comprehensive income/loss for the period -6,348 -5,800 Attributable to equity holders of the parent company -6,230 -4,473 Attributable to non-controlling interests -118 -1,328 Earnings per share (basic) -0.03 -0.03 Earnings per share (diluted) -0.03 -0.03 Interim management statement as of March 31, 2025 ifrs consolidated statement of cash flows ifrs consolidated statement of cash flows from january 1 to march 31, 2025 in € thousand 01/01- 03/31/2025 01/01- 03/31/2024* Cash flows from operating activities Total comprehensive income/loss for the period -6,348 -5,800 Adjustments for: Impairment losses 3,813 1,962 Tax expenses 1,658 1,042 Net finance costs 13,302 14,800 Changes in: Inventories -19,467 11,206 Trade receivables and other receivables 1,529 -183 Other financial assets 699 -247 Non-financial assets -1,837 1,827 Trade payables and other payables 1,932 -668 Non-financial liabilities -512 84 Other provisions as well as assets and provisions for employee benefits -4,258 11 Other financial liabilities -685 -1,064 Interest paid -3,624 -5,978 Income taxes received 9 0 Income taxes paid -1,110 -200 Cash flows from operating activities -14,898 16.792 Cash flows from investing activities Payments for investments in investment properties -112 -524 Proceeds from government grants 0 3,389 Purchase of property, plant and equipment -13 0 Cash flows from investing activities -125 -2,865 Cash flows from financing activities Cash inflows from new (financial) loans 14,386 17,482 Payments for lease liabilities -4 -40 Repayments of loans -5,062 -41,144 Cash flows from financing activities 9,320 -23,702 Net change in cash and cash equivalents -5,703 -4,045 Cash and cash equivalents as of 01/01 10,179 8,121 Cash and cash equivalents as of the end of the period 4,475 4,076 * Prior-year figures have been partially restated (see Chapter 5. Restatements in accordance with ias 8, Annual Report 2024) Zwischenmitteilung zum 31. März 2025 ifrs consolidated statement of changes in equity ifrs consolidated statement of changes in eQuity from january 1 to march 31, 2025 Equity attributable to equity holders of the parent company Subscribed Retained Non-controlling Total in € thousand capital Reserves earnings Total interests equity Balance as of 01/01/2024 186,764 -389,131 408,361 205,994 7,901 213,895 Restatements in accordance with ias 8* 0 0 -1,053 -1,053 0 -1,053 Profit/loss 0 0 -4,473 -4,473 -1,328 -5,800 Balance as of 03/31/2024 186,764 -389,131 402,836 200,469 6,573 207,042 Balance as of 01/01/2025 186,764 -389,131 285,767 83,606 -13,396 70,210 Profit/loss 0 0 -6,230 -6,230 -118 -6,348 Balance as of 03/31/2025 186,764 -389,131 279,743 77,376 -13,514 63,862 * The opening balance of equity as of 1 January 2024 was retrospectively adjusted as part of an error correction in accordance with IAS 8. The comparative information presented reflects the corrected amounts in order to ensure a consistent and comparable presentation. gateway real estate ag Interim management statement as of March 31, 2025 financial calendar financial calendar | imprint April 30, 2026 Publication Annual Financial Report May 29, 2026 Publication Quarterly Statement (call-date Q1) August 2026 Annual General Meeting (for the financial years 2024 and 2025) September 30, 2026 Publication Half-yearly Financial Report November 30, 2026 Publication Quarterly Statement (call-date Q3) imprint Publisher Gateway Real Estate ag Hardenbergstr. 28a 10623 Berlin, Germany T +49 30 40 363 47-0 F +49 30 40 363 47-99 [email protected] https://www.gateway-re.de Project management gfd - Gesellschaft für Finanzkommunikation mbH, Frankfurt am Main, Germany Gestaltung 2dKontor - Aabenraa, Denmark this is a convenience translation of the german language interim management statement as of march 31, 2025 of gateway real estate ag, which is provided to english speaking readers for informational purposes only. only the german version of this document is legally binding. no warranty is made as to the accuracy of this translation and gateway real estate ag assumes no liability whatsoever with respect thereto.

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