Gateway Real Estate AgXETR: GTY

Q1 statement / Q1 financial report 2025

· Issued by 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
  1. 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

  2. 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.

  3. 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%).

  4. 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.

  5. 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).

  6. 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

  7. 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

info@gateway-re.de 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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