Graphisoft Park Ingatlanfejleszto Európai Reszvenytársaság : Quarterly Report 2025 Q1

About this update from Graphisoft Park Se

GRAPHISOFT PARK SE Interim Management Report - First Quarter 2025 May 13, 2025 Executive Summary The pro forma net profit for the first quarter of 2025 is 2.22 million euros, which is slightly higher by 4% than the same period of the previous year. This result is primarily due to the stable tenant base of the office park: the vacancy rate typical of the Budapest office market in recent years did not occur in Graphisoft Park, which -despite the decreasing rate of rent indexation - ensures the favorable development of sales revenue. Graphisoft Park's occupancy rate has been stable at 94% for almost a year, significantly exceeding the current average of 86% for the Budapest office market. Despite the uncertain economic environment, our tenants are continuously extending their leases and are typically committed to longer terms than the national average. This is due, on the one hand, to the unique natural features of the Park, the environment created by the technological and IT focus, and, on the other hand, to the ability to flexibly adapt to changing tenant needs. Significant contract extensions over the past year have increased the average remaining lease term to 5 years by the end of 2024, followed by several smaller contract renewals this year, reinforcing WAULT's 5-year value. A figure that reflects tenant commitment even more is the average lease term since each tenant's first lease agreement, which has increased to nearly 16 years this year. In the current unpredictable global economic environment, we are leaving our previously published 2025 forecast unchanged for the time being. We continue to expect continuous developments in line with ESG goals, including their cost implications, and we do not expect extraordinary compensation to be paid for early terminations of contracts, which was reported as one-off income in the previous year, so overall, based on our current estimates, a net profit of 7 million euros is expected in 2025, which is lower than the previous year. Dividend payment As announced by the Company on April 29, 2025, the General Meeting decided to pay a dividend of around 7.2 million euros, equivalent to 90% of the previous year's pro forma profit, that is 71 euro cents per ordinary share. The Company will pay the dividend to shareholders in euros, as in the previous year, with the starting date of May 30, 2025. Development areas The Company has a building permit for the development of a new office of nearly 4,000 m² next to the South Park building, which, in addition to high occupancy, can provide flexibility to handle future tenant needs. The Company will decide on the launch of the project later, depending on the construction and market conditions. However, based on current office market trends, no significant increase in demand for offices is expected in the near future, so the Company is investigating residential and service development opportunities in its larger southern development area, for which it has signed a cooperation agreement with Synergy Construction Hungary Kft. Following the completion of the assessment, the partner company will also have the opportunity to purchase the area or the project company that owns it. Administrative lawsuit As a result of the previous gas production activity, the northern development area is contaminated, and its rehabilitation is the responsibility of MVM Next Energiakereskedelmi Zrt. Since 2015, the official deadlines for the completion of the remediation have been extended several times. Most recently, on December 20 2024, the latest deadline for the completion of the first phase of the remediation, December 31 2024, was abolished by a decision of the Deputy State Secretary for Environmental Protection at the Ministry of Energy and a mandatory review of the remediation method was prescribed by December 31, 2026, without setting any new deadline for the actual completion of the remediation. Graphisoft Park initiated an administrative lawsuit against the decision on January 21, 2025, as according to its position, the decision violates the Constitution, and the rule of law norms were not applied. On May 6, 2025, the administrative court upheld Graphisoft Park's claim and annulled the decision ordering the review procedure due to serious procedural violations. However, the conflict with the Constitution and EU legislation has not yet been examined, because the previous decision had to be annulled due to the procedural violation. A new procedure is expected to be initiated regarding the review. The expected date of commencement and completion of the remediation remains uncertain and cannot be estimated. Property portfolio and fair value of net assets At the end of the first quarter of 2025, the independent valuer estimated the fair value of the real estate portfolio at 223.8 million euros, which represents nearly 7 million euro decrease compared to the end of 2024. This decrease is primarily related to the fair value of the completed and delivered properties (6.5 million euros): the higher expected yield reflects the general economic and office market risks, including the vacancy rate in the Budapest office market, the stagnation of developments, and the valuer also took into account the expected costs of energy modernization of the buildings in the near future. The resulting decrease in fair value was, however, mitigated by recent significant contract extensions and stable occupancy of the office park, so the fair value of the revenue generating properties decreased by 3% to 209 million euros. The fair value 1 of the development lands decreased by a smaller amount (300 thousand euros): the change in the value of the lands was caused by the updated development costs and potential rental fees; with a slightly higher rate of return, their estimated fair value totaled 14.4 million euros at the end of the period. Due to the interest levels experienced in the eurozone, the fair value 2 of the interest rate swap hedging transactions concluded by the Company to fix the interest rates of its euro-based loans is still favorable, which increase is reflected in equity (net asset value). In the meantime, the Company's outstanding loan portfolio went down to 77.4 million euros due to continuous repayments. At the end of the quarter the Company's cash balance is more than 14 million euros, which, after the dividend payment of 7.2 million euros approved by the AGM, ensures the long-term safe operation of the company, the financing of tenant designs, building upgrades and renovations (with particular regard to the larger investments planned under our ESG strategy - see below), as well as the financing of smaller new developments that may become necessary in the event of such a demand. In addition, the cash balance also forms a reserve for the possible negative effects of changing economic conditions. Overall, due to the decrease in the fair value of the real estate portfolio and, on the other hand, the decreasing outstanding loans, and the increasing cash reserve, the net asset fair value of the Company reached 165 million euros, about 3 million euros below the value at the end of the previous year. ‌1 The fair value of all development lands was determined as the present value of potential future office development and does not take into account the expected impact of any potential residential development. ‌2 The fair value of hedges is intended, among other things, to estimate how much more expensive (in the case of a negative fair value, cheaper) a similar loan could be obtained today. In addition to the current market interest rate environment, the fair value is influenced by several external factors (HUF/EUR exchange rate, monetary policy measures or future interest rate expectations). The development of these factors may result in a significant and in some cases unpredictable changes in the direction and degree of change in the fair value. [thousands of EUR] Dec 31, 2023 Dec 31, 2024 March 31, 2025 Completed, delivered properties 211,762 215,919 209,360 Development lands 13,710 14,660 14,410 Estimated fair value of the entire property portfolio 225,472 230,579 223,770 Net asset value at estimated fair value 158,228 167,816 164,567 Net asset value at fair value per share (EUR) 15.69 16.64 16.32 Net asset value per share (EUR)3 15.09 15.95 15.66 Pro forma results Our 2025 Q1 "pro forma" results developed favorably: with stable occupancy, rental revenue reached a similar level to the previous year. The other income basically reflects the results of the construction and renovation of the rental property requested and financed by tenants, which also remained unchanged compared to the same period of the previous year. The 12% increase in operating expenses reflects some smaller, planned one-off expenses and primarily the impact of inflationary fee increases. Depreciation decreased by 4% compared to the same period of the previous year due to the depletion of certain older assets. At the same time, the financial result is more favorable: although the interest income realized on free funds fell short of the previous year in the changed interest rate environment, the interest payable on the capital outstanding decreased due to the loan repayments, and there were no significant exchange rate losses on our assets held in forint. As a combined effect of all of this, EBITDA in the first quarter of 2025 is almost identical, while profit after tax is around 4% higher than the previous year. (million euros) 2024 Q1 actual 2025 Q1 actual Rental revenue 4.31 4.34 Other income (net) 0.12 0.11 Operating expense (0.32) (0.36) EBITDA 4.11 4.09 Depreciation (1.61) (1.54) Operating profit 2.50 2.55 Net financial result (0.36) (0.31) Profit before tax 2.14 2.24 Income tax expense (0.01) (0.02) Net profit 2.13 2.22 ‌3 IFRS consolidated own equity per share Forecast In our forecasts for 2025, we still expect rental revenue of 16.7 million euros. This is about 3% lower than in 2024, as further minor vacancies cannot be ruled out in the remainder of the year due to the uncertain economic environment, and because the indexation of rental fees will also be reduced. In 2024, relatively significant lump-sum compensations paid by some tenants for space reductions before the end of their contracts were also included in other income, and we do not expect such one-off items in 2025. Assuming the average development of other income, we expect 500 thousand euros less than the amount in 2024. In terms of operating expenses, an increase of approximately 13% is expected in 2025, partly due to the increase in service fees, the increase in personnel payments and new cost elements arising in connection with the targets set in the ESG strategy. The capitalization of energy efficiency developments may offset the expected decrease in depreciation due to the depletion of certain older assets, so we expect a depreciation expense like the previous year in 2025. We do not expect a significant change in financial costs, and a net financial expense of 1.6 million euros is expected. Overall, we expect a lower net result of 7 million euros for 2025, falling short of the outstanding results of 2023 and 2024 due to one-off items. (million euros) 2023 actual 2024 actual 2025 forecast Rental revenue 16.85 17.26 16.7 Other income (net) 0.57 1.00 0.5 Operating expense (1.61) (1.86) (2.1) EBITDA 15.81 16.40 15.1 Depreciation (6.94) (6.45) (6.4) Operating profit 8.87 9.95 8.7 Net financial result (0.99) (1.63) (1.6) Profit before tax 7.88 8.32 7.1 Income tax expense (0.02) (0.36) (0.1) Net profit 7.86 7.96 7.0 ESG strategy In addition to the transformation of the function of the office spaces, an important aspect and goal is the continuous reduction of the carbon footprint of the buildings, as well as the development and implementation of the Park's ESG strategy together with the tenants. The Company presented its considerations, objectives and their follow-up in the sustainability reports of the last two years. Our Company is not currently subject to the provisions of the CSRD 4 and the Hungarian ESG Act, however, we have begun preparations for the corresponding reporting obligations and are continuously monitoring the regulations applicable to the Company and their changes. Our 2024 sustainability report, like previous ones, was prepared in accordance with the GRI5 standards and published on April 24, 2025. Already in 2023 and 2024, as a key part of our objectives, solar panels and heat pumps were installed in some buildings, in line with the needs and decarbonization goals of the respective tenants. In 2025, we will launch further energy improvements in several larger buildings (installation of additional heat pumps and new energy-saving devices, replacement of windows and doors, luminaires), exceeding the previous years in value and volume. ‌4 Corporate Sustainability Reporting Directive ‌5 Global Reporting Initiative In addition, it is equally important to implement efficient building operations and encourage conscious energy consumption. After 2022, also in 2023, in cooperation with the tenants, we managed to achieve significant savings in both gas and electricity consumption. We will continue to maintain cooperation and intensive relationship, as well as the monitoring of consumption (both for the energy consumption of devices and equipment, as well as for usage habits). In 2024, energy consumption did not decrease significantly further anymore, as gas consumption remained at a similar level to the previous year, while electricity consumption increased. This was largely due to the decrease in the home office ratio, the increase in energy consumption associated with greater office presence, and the rise of electric cars. The aim of our developments for the next two years is to reduce our carbon footprint by installing energy-saving equipment, while also offsetting the additional consumption arising from the increasing use of offices. In addition to improving energy efficiency, our goal is to prioritize the aspects of conscious material use (e.g. lifecycle, quality, recyclability), minimize waste generated during office design and operation, and maintain and develop the green park, environment and biodiversity that gives the Park its unique character. * * * We believe that the unique office park provided by Graphisoft Park, located in a truly green environment, will continue to be in demand by companies employing technology- and knowledge-based, highly qualified employees, and we can expect an occupancy rate of over 90%, which exceeds the Budapest office market. The Company's strategy articulated nearly 30 years ago also works in the light of the hybrid working that has become common in recent years. Although the way and extent of office use and the distribution of the various functions of the rented areas are undergoing significant changes, research and development activities that require a high degree of creativity and intensive cooperation cannot exist without at least partial personal presence. The target market defined by the Company at the beginning, which are domestic and international enterprises dealing with technological development, proved to be a good choice even during uncertain economic prospects, since the key to success in this field is attracting talent. This is greatly enhanced by the high-quality and environmentally conscious architecture, a uniquely quiet park rich in ancient trees, on the truly green bank of the Danube, surrounded by the monuments of the former Óbuda Gas Works and preserved in a modern way. Bojár Gábor Chairman of Board of Directors Kocsány János Chief Executive Officer Financial highlights IFRS, consolidated, thousand EUR Results: Results March 31, 2024 March 31, 2025 3 months ended Rental revenue 4,311 4,341 Operating expense (318) (357) Other income (net) 122 105 EBITDA 4,115 4,089 Depreciation and amortization (1,613) (1,544) Operating profit 2,502 2,545 Net interest expense (283) (306) Other financial result (78) 3 Profit before tax 2,141 2,242 Income tax expense (5) (23) Pro forma profit after tax (1) 2,136 2,219 Pro forma profit after tax per share (EUR) (2) 0.21 0.22 Valuation difference of investment properties 1,047 (6,583) Unrecognized depreciation 1,555 1,488 Profit after tax according to financial statements 4,738 (2,876) Profit after tax per share according to financial statements (EUR) (2) 0.47 (0.29) "Pro forma" results show profit and loss according to the cost model. Treasury shares possessed by the Company and employee shares are excluded when the earnings per share value is determined (refer to Note 1.3 to the financial statements). IFRS, consolidated, thousand EUR Asset value: December 31,2024 March 31, 2025 Fair value of properties 215,919 209,360 - from this book value (1) 214,265 207,784 Fair value of development lands 14,660 14,410 - from this book value (1) 8,517 8,517 Entire property portfolio at estimated fair value 230,579 223,770 Net asset value at estimated fair value (2) 167,816 164,567 Net asset value at cost (1) 160,813 157,874 Number of ordinary shares outstanding (thousands) 10,083 10,083 Net asset value at fair value per share (euro) (2) (3) 16.64 16.32 Net asset value at book value per share (euro) (1) (3) 15.95 15.66 Investment properties and investment properties under construction are fair valued in the financial statements, while development lands and owner-occupied property are stated at cost. Development lands are presented under "Investment properties" and owner-occupied properties under "(Owner-occupied) Property, plant and equipment" in the balance sheet. As a result, instead of accounting depreciation, current period change in fair value is presented in the profit or loss. Estimated net asset fair value contains both development lands and owner-occupied properties on fair value instead of cost. Treasury shares possessed by the Company and employee shares are excluded when the earnings per share value is determined (refer to Note 1.3 to the financial statements). Net asset value at book value and net asset value at fair value (equity) are disclosed in Note 23 to the financial statements. Detailed Analysis In this business report, Graphisoft Park presents the progress made toward its goals in the following areas: 2025 Q1 results ("pro forma" results and results according to the financial statements), Utilization, occupancy, Modernization plans, Financing, Forecast for 2025, Real estate portfolio and development potential, Further growth opportunities. 2025 Q1 "Pro forma" results The 2025 first quarter "Pro forma" results changed compared to the same period of 2024 because of the following main factors: Rental revenue (2025: 4,341 thousand euros; 2024: 4,311 thousand euros) together with stable tenant base exceeded the previous year by a minimal amount, 30 thousand euros, or 0.7%. Operating expense (2025: 357 thousand euros; 2024: 318 thousand euros) increased by 12% compared to the same period of last year, which was increased by smaller one-off items, in addition to personnel costs and inflation-following fee increases for certain services. Other income (2025: 105 thousand euros; 2024: 122 thousand euros) is largely the result of periodical developments and refurbishments of the rental property based on the request and expense of the tenants. Depreciation charge (2025: 1,544 thousand euros; 2024: 1,613 thousand euros) is 4% lower than in the previous year, mainly due to the depletion of some older assets. EBITDA (2025: 4,089 thousand euros; 2024: 4,115 thousand euros) is almost the same, while operating profit (2025: 2,545 thousand euros; 2024: 2,502 thousand euros) increased slightly by 43 thousand euros, or 2% compared to the previous year, due to the lower depreciation. Net interest expense (2025: 306 thousand euros; 2024: 283 thousand euros) increased by 23 thousand euros or 8% compared to prior year. The interest paid was less because of the declining principal amounts due to loan repayments, but at the same time, in the changed interest environment, the interest income realized on free funds decreased compared to the result of the previous year. Other financial result (2025: 3 thousand euros gain; 2024: 78 thousand euros loss) is primarily influenced by the exchange rate differences of our forint-denominated assets. The balance of income tax expense (2025: 23 thousand euros; 2024: 5 thousand euros) contains the innovation contribution and the corporate income tax and local business tax of the Group member Graphisoft Park Engineering & Management Kft. The other companies in the Group are exempt from corporate income tax and local business tax obligations based on their regulated real estate investment company status. A significant portion of the 2024 full year income tax expense was the result of the Group's self-revision performed in 2024 Q4 regarding the prior years' innovation contribution. Overall, net profit (2025: 2,219 thousand euros; 2024: 2,136 thousand euros) is 83 thousand euros, or 4% higher compared to the same period of last year. With income-generating activities remaining unchanged, the small profit increase is primarily due to lower depreciation and a more favorable exchange rate difference than in the previous year. 2025 Q1 results according to the financial statements The 2025 Q1 result according to the financial statements is 5,095 thousand euros lower than the "pro forma" result due to the following two factors: unrecognized depreciation of investment properties increased the results by 1,488 thousand euros, while fair value changes decreased the result by 6,583 thousand euros. The negative effects of the general economic outlook and risks specific to the office market - such as the vacancy rate in the Budapest office market, the stagnation of developments and the low number of transactions - as well as the increasing costs associated with the energy modernization of the buildings were partially compensated by taking into account the periodic contract extensions and the Park's loyal tenant base. Thus, the independent valuer reduced the fair value of the properties by approximately 3%. Consequently, the result according to the financial statements in the current period is a loss of 2.9 million euros, in contrast to the 2024 Q1 result of 4.7 million euros profit. Details of changes in fair values are disclosed in Note 9 (Investment property) to the financial statements. Utilization, occupancy Occupancy rate of Graphisoft Park's gross leasable area developed as follows (at the end of each quarter): Period: 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 Occupancy of gross leasable area (%): 95% 95% 94% 94% 94% Gross leasable area (m 2 ): 82,000 82,000 82,000 82,000 82,000 Following a temporary, slight reduction caused by the COVID crisis, occupancy remained stable at 97-98% in 2022-2023, despite the high, volatile energy prices and recessionary environment that characterized the period. At the same time, in 2023, during the renewal of the contracts of several larger tenants, requests to reduce the area arose, thereby reducing the occupancy to 95% by the end of the year. As a result of further minor vacancies during 2024, the occupancy rate decreased to 94%, however, this occupancy level - which also exists in the first quarter of 2025 - continues to exceed the Budapest office market average (86%), proving the significant and long-lasting demand for office parks dominated by green surroundings as work environments. Modernization plans From 2023, the focus of our renovation and modernization programs will be on projects that increase energy efficiency and optimize energy consumption, which we will implement in constant consultation and cooperation with our tenants. In 2023, in 2 larger buildings (affecting about 16,000 m 2 of leasable area), significant energy efficiency improvements were made (installation of heat pumps and smaller solar panels, replacement of office and improving the energetic properties of some building structural elements). In 2024, we started similar renovations on additional buildings (5,800 m 2 ), improving the energy efficiency of our buildings and reducing the carbon footprint of the entire park's operation. In 2025 and in 2026, we will start energy improvements in value and volume exceeding those of previous years on several larger buildings (installation of additional heat pumps and new, energy-saving devices, replacement of doors and windows, luminaires), worth more than 3 million euros according to our current estimates. In the past period - partly due to the emerging energy crisis - we put a lot of emphasis on monitoring energy consumption, and in cooperation with the tenants, by consciously reducing consumption, we achieved savings of nearly 20% in 2022, and another 10% in 2023. In 2024 however, energy consumption did not decrease significantly further: while gas consumption remained at a similar level to the previous year, electricity consumption increased , which can be largely attributed to the decrease in the home office ratio , the increase in energy consumption associated with greater office presence, and the rise of electric cars . The aim of our developments for the next two years is to reduce our carbon footprint by installing energy-saving equipment, while also offsetting the additional consumption resulting from the increased use of offices. In addition, in all building modernization projects, in addition to energy efficiency, we also keep in mind the conscious use of materials (lifecycle, quality, recyclability) and the minimization of waste generated during the renovation. Financing Between 2015 and 2019, the Company borrowed a total of 119,600 thousand euros from Erste Bank Hungary Zrt. and UniCredit Bank Hungary Zrt. 4 times to finance its development goals, refinance its previous loan, and optimize its capital structure. The first two development loans took place within the framework of the National Bank of Hungary's Funding for Growth Scheme. The term of each loan is 10 years, and the interest rates are fixed for the entire term of each loan through currency and interest rate swaps (CCIRSs and IRSs), currently with an average interest rate of 1.91%. At the end of June 30, 2024, the nominal value of all outstanding loans is 77 million euros , which is currently 35% of the property fair value . The positive fair value of the interest rate swaps (EUR 1.9 million) reflects the difference between the current financing conditions available in the higher interest rate environment and the Company's fixed loan rates. Bank Initial loan value Due date Outstanding loan amount on March 31, 2025 (thousand euros) (thousand euros) Erste Bank Hungary Zrt 15,600 27.12.2025 6,769 UniCredit Bank Hungary Zrt 24,000 23.12.2026 14,000 Erste Bank Hungary Zrt 40,000 31.12.2027 27,073 UniCredit Bank Hungary Zrt 40,000 15.12.2029 29,563 Sum 119,600 77,405 Forecast for 2025 We successfully extended lease agreements with several tenants in the first quarter of 2025, but at the same time, further vacancies may arise in the uncertain economic environment, primarily due to possible space reduction requests from some tenants, and we also expect a decrease in indexation. We do not expect one-off revenues like those of the past two years (fees paid as compensation for space reduction before the end of the contract) in 2025. Our forecast considered the inflationary increase in operating costs and the unchanged level of depreciation due to continuous developments aligned with our ESG goals. (million euros) 2023 actual 2024 actual 2025 forecast Rental revenue 16.85 17.26 16.7 Other income (net) 0.57 1.00 0.5 Operating expense (1.61) (1.86) (2.1) EBITDA 15.81 16.40 15.1 Depreciation (6.94) (6.45) (6.4) Operating profit 8.87 9.95 8.7 Net financial result (0.99) (1.63) (1.6) Profit before tax 7.88 8.32 7.1 Income tax expense (0.02) (0.36) (0.1) Net profit 7.86 7.96 7.0 Due to the changing habits of office use and the weakening economic environment, in 2023-2024 some of the tenants only extended their contracts for a smaller area, which resulted in a small decrease in occupancy. In our rental revenue forecast for 2025, in addition to this year's contract extensions, we have considered that additional vacancies may arise for a similar reason. In addition, we took into account the decrease in the indexation of rental prices. Based on all of this, we expect rental revenue of 16.7 million euros for 2025 , about half a million euros less than the previous year. Other income traditionally includes income received for renovations requested by tenants, but in 2024, the compensation to be received for the reduction of certain rental areas before their expiration also increased the other income. In 2025 , we no longer count on one-off items like this, so the balance of other income and expenses is expected to be around 500 thousand euros , which is about half of the previous year. We expect operating costs to increase by 13% in 2025 , due to, among other things, inflationary increases in service fees, increased personnel payments, and cost elements necessary to achieve the goals set out in our ESG strategy. As a combined effect of the above, according to our current calculations, EBITDA is expected to decrease to 15.1 million euros in 2025 , falling short of the previous year. In 2024, the depreciation (which does not appear in the consolidated accounts according to the SZIT rules) due to the depletion of some older assets decreased, however, in 2025 , as a result of the capitalization of energy efficiency improvements, no further decrease of a similar magnitude is expected. As part of the net financial result , due to the continuous loan repayments, the interest payable on the capital outstanding will decrease. In 2024, due to changes in the interest rate environment, we no longer realized interest income of a similar magnitude to 2023, and the volatility of the forint also caused large exchange rate losses. We do not expect significant changes in financial costs in 2025 . As a result of all this, the expected pro forma net profit for 2025 may be around 7 million euros , significantly below the outstanding results of 2023 and 2024 due to one-off items. Further development opportunities By the completion of the developments in the core and the southern area from September 2018, Graphisoft Park has 82,000 m 2 gross leasable area as well as underground parking for around 2,000 cars available for its tenants, ensuring the green dominance in the Park. An additional 4,000 m 2 of leasable office space can be developed at the southern end of the largely built-out area called South Park I. In 2022 we received building permission for the possible development; however, the Company will decide on the initiation of the project at a later date, taking into account the conditions and the possibilities of the construction, in particular the development of raw material and energy prices, the possible capacity limitations and the general economic prospects, in addition to the requests of the tenants. In view of the expected decrease in the office market, the Company is examining the possibility of developing residential and service functions in this area, which would be more appropriate from urban design, urban planning, and business point of view in this area, instead of further office building development, as it is located far from the central area and is also separated by a public road. In this regard, Graphisoft Park concluded a cooperation agreement with Synergy Construction Hungary Kft. After the conclusion of the examination, the partner company will have the opportunity to purchase the area and the project company that owns it under the conditions specified in the Cooperation Agreement. In the northern area no further preparatory work or development is allowed until MVM Next Energiakereskedelmi Zrt. completes its mandated rehabilitation duties in the area, which is currently considered uncertain (see details below in the "Main risk factors - rehabilitation of the northern development area" section). After the remediation, this northern development area together with the unused part of the monument area will provide room for another 42,000 m 2 gross leasable area. Altogether this gives office development potential of around additional 46,000 m 2 gross leasable area, and as such, the gross leasable area might increase to 128,000 m 2 in the whole Graphisoft Park. In addition to the above, we should mention that next to the 18 hectares of the former Óbuda Gas Works owned by the Company, there is another 12 hectares of development land owned by the Municipality of Budapest. Following the required remediation, according to the currently valid regulations, an additional 120,000 m 2 area can be developed , for which an underground garage suitable for accommodating around 3,000 cars can also be built. If the Municipality of Budapest wishes to sell its development areas, the Company has the right of pre-emption for the larger part of it (7.5 hectares). Educational function Key characteristic of the Graphisoft Park concept is the sustained synergy between teams of startup entrepreneurs, global IT and technology focused companies and educational institutions as leading edge "knowledge-factories". In this spirit, the IBS International Business School , as well as AIT-Budapest , which is based primarily for students from the United States, and the Real School , which focuses on environmentally conscious education from an early age, were also located in the Park. Partnering relationships based on tight collaboration between technology firms, start-ups and educational institutions have been shaped among these three main pillars of Graphisoft Park, resulting in mutual support and strengthening and stimulating cooperation. The enhanced physical proximity and meaningful collaboration act as an attractive force and is recognized as a convenient source by all the three sectors. The management of the Park is consciously supporting the balanced presence of all three pillars and application of the full potential offered by their collaboration. We are open to accommodate educational institutions that act as knowledge centers and knowledge factories and fit the Park's concept. Tenant loyalty Graphisoft Park's tenants make longer commitments than the national average. In addition to the Park's unique natural features, the technological and IT focus created the milieu in which globally listed companies have long been tenants in the Park, such as SAP (since 2005), Microsoft (since 1998), Servier (since 2007 ), and, of course, Graphisoft SE, the software company that founded the Park but is now operating as an independent tenant since 1998. It should be noted that in addition to our large tenants, the smaller tenants also spend an average rental period of more than 5 years in the Park, with their expiring contracts being extended annually. Due to the characteristics of the Park, we can meet the growth needs of the tenants: start-ups can become tenants of the Park with up to a 1-year contract, and later on, they are also provided with the opportunity to expand in line with their growth trajectory. The average lease term in the Park calculated with the starting date of current tenants' earliest lease agreements (in certain cases lease agreements concluded with the predecessor of Graphisoft Park Group) is 16 years . At the same time, the weighted average lease term to expiry is still 5 years because of some contract extensions in the current year. Creative work, research and educational activities are further supported by the Park's Management by sustainably ensuring inspiring environment and numerous cultural services. Our goals are the increase of comfort levels, thus the levels of productivity for all Park tenant's creative and productive staff, the development of tools for promoting communities, hosting of relevant events and programs for further improvement of creative work conditions for all our tenants. For this reason, we organize many open-air music events, periodic photo and painting exhibitions in the Park, and one of the largest outdoor collections of contemporary sculptures in Budapest is also located here. Furthermore, we constantly expand the possibilities of various leisure, sports and recreational activities. We do all this consciously, because loyal employees affiliated with the Park can guarantee the competitiveness of our tenants in the market. Management is committed to make the Park feel as a comfortable, pleasant second home for all resident employees, more than just a work-place. Main risk factors associated with the areas Contaminated northern development area: Due to the prior gasification activity the northern development area is still contaminated. The rehabilitation of this area is the duty of the polluter Capital City Gas Works (currently MVM Next Energiakereskedelmi Zrt.). Background The decision to impose a remediation obligation was finally made in 2015, after nearly 20 years of delay. In its decision dated June 29, 2015, file number PE/KTF/1096-39/2015, the Érdi District Office of the Pest County Government Office, as the environmental protection authority, obliged Fővárosi Gázművek Zrt. to remediate the damage in two phases; in the first phase essentially regarding the geological medium (soil exchange and removal) and in the second phase regarding the groundwater. The decision stipulated a deadline of November 30, 2017 for the implementation of the first phase, while the deadline for the second phase was April 30, 2019. The obligor did not start the actual remediation within the time specified for completion but carried out internal administrative preparatory activities. The obligor requested an extension of the deadline several times, which it received in turn. A deadline extension granted in 2018 was challenged by Graphisoft Park in administrative court proceedings, which it won in court, however, after the decision made on December 12, 2019, the Pest County Government Office conducted new proceedings. In the resolution dated April 30, 2020, the Pest County Government Office stated new deadlines of May 31, 2021, and September 30, 2022. Government Decree nr. 286/2021 (V. 27.) on the establishment of rules related to certain administrative authority procedures was published under the epidemiological and emergency regulations on May 27, 2021. Pursuant to Section 1 of the Government Decree in force between May 28, 2021, and June 24, 2021, the polluter became entitled to request an extension of the deadline for remediation from the environmental authority, which was obliged to grant the extension. MVM Next Energiakereskedelmi Zrt. submitted the relevant request, which was approved by the authority and the decree ruled out the possibility of an appeal, so the current deadline for carrying out remediation and submitting the final documentation was December 31, 2022. We requested information from MVM Next Energiakereskedelmi Zrt. about its implementation plans related to the said deadline, to which we received the following information in response. MVM Next Energiakereskedelmi Zrt. still has the necessary permits to call for the construction tender and start construction, and has prepared the necessary documentation for the tender, however, despite its best intentions, it cannot make any responsible statement about the expected completion date of the remediation. On December 23, 2022, Government Decree of 566/2022 (XII. 23) was published, which deals with the establishment of rules related to certain administrative authority procedures. On the basis of this decree, the legal entity obliged to remediate became entitled to request an extension of the remediation deadline from the environmental protection authority. If the application was submitted, the authority was obliged again to grant the deadline extension. MVM Next Energiakereskedelmi Zrt., which is obliged to remediate the damage, submitted its request for this on December 27, 2022, which was granted by the authority on December 28, 2022. The decree ruled out the possibility of an appeal, so the currently valid new deadline for carrying out the remediation and submitting the final documentation would have been December 31, 2024 , and the deadline for the remediation of certain sub-areas and for sub-surface water would have been April 30, 2026 . However, as of November 19, 2024, the legal environment regarding remediation has changed again, and the legal amendment that entered into force requires a so-called mandatory review for remediation that has not started within 5 years. During the mandatory review, a new, so-called "revised intervention plan" is prepared and thus the deadline for remediation is amended again. The review is ordered by the Deputy State Secretary responsible for Environmental Regulatory Affairs. Accordingly, based on the decision of the Deputy State Secretary responsible for Environmental Regulatory Affairs of the Ministry of Energy dated December 20, 2024 , the deadline for submitting a new, revised intervention plan to be prepared by MVM Energiakereskedelmi Zrt. is December 31, 2026 . During the review period, the implementation of the previous intervention plan cannot be started. The Company initiated an administrative lawsuit against the decision ordering the review on January 21, 2025. According to our position presented in the court proceedings, the decision violates the Constitution, and the rule of law norms were not applied in the decision-making process. In the administrative lawsuit, the Budapest Municipality joined the proceedings on the side of Graphisoft Park, while MVM Next Energiakereskedelmi Zrt. on the side of the Deputy State Secretary responsible for Environmental Regulatory Affairs. On May 6, 2025, the administrative court upheld Graphisoft Park's claim and annulled the decision ordering the review procedure due to serious procedural violations. The conflict with the Constitution and EU legislation was not examined, because the previous decision had to be annulled anyway due to the procedural violation. It should be noted that the repeated modification of the deadlines for completing the remediation, detailed above, always occurred immediately before the deadlines expired, but no substantive remediation ever began before these deadlines. Current status The expected start and completion date of the remediation remains uncertain and cannot be estimated. We will continue to inform the Shareholders and capital market participants about the developments of the matter. Flood risk: Potential flood risk due to the location on the Danube waterfront, which is to be reckoned with for the increasing water level fluctuation, despite the old Gasworks rampart protecting the area even during the historical high floods in 2013. Economic environment: Since the properties in Graphisoft Park are mainly rented by stable companies, operating in research & development, the utilization of the office park decreased only slightly as a direct effect of the crisis caused by the coronavirus, the surge in inflation and the drastic change in energy prices, and it stands at 94%. At the same time, difficulties caused by economic conditions, the change in tenant behavior and the emerging oversupply in the office market may again result in temporary or longer-term vacancies, so we must once again consider demands for reducing office space and the permanent transformation of office use. Taking into account the risks affecting the rental revenue and the economic environment, due to the increase in market yield expectations, a further, possibly significant devaluation of the fair value of properties cannot be excluded. *** Forecasts published here are based on the valid lease contracts in effect at the time of writing this report. Factors significantly affecting results are the economic environment, the changes in the HUF/EUR exchange rate (of which effects on the Company's results are unpredictable due to year-on-year fluctuations), the inflation rate and the regulatory environment with special regards to the tax regulations. In this forecast we calculate with 410 HUF/EUR exchange rate, euro inflation rate of 2.5% and unchanged legal and taxation environment till the end of 2025. Forward-looking statements - The forward-looking statements contained in this Interim Management Report involve inherent risks and uncertainties, may be determined by additional factors, other than the ones mentioned above, therefore the actual results may differ materially from those contained in any forecast. Statement of responsibility - We declare that the attached Quarterly Report which have been prepared in accordance with the International Financial Reporting Standards and to the best of our knowledge, give a true and fair view of the assets, liabilities, financial position and profit or loss of Graphisoft Park SE and its subsidiaries included in the consolidation, and the Business Report gives a fair view of the position, development and performance of Graphisoft Park SE and its subsidiaries included in the consolidation, together with a description of the principal risks and uncertainties of its business. Budapest, May 13, 2025 Bojár Gábor Chairman of Board of Directors Kocsány János Chief Executive Officer GRAPHISOFT PARK SE QUARTERLY REPORT for the quarter ended March 31, 2025 in accordance with International Financial Reporting Standards (IFRS) (consolidated, unaudited) Budapest, May 13, 2025 Kocsány János Chief Executive Officer Farkas Ildikó Chief Financial Officer CONTENTS: Page(s) Consolidated Balance Sheet 3 Consolidated Statement of Income 4 Consolidated Statement of Comprehensive Income 5 Consolidated Statement of Changes in Shareholders' Equity 6 Consolidated Statement of Cash Flows 7 Notes to the quarterly Report 8-27 Notes December 31, 2024 March 31, 2025 Cash and cash equivalents 3 12,993 14,434 Trade receivables 4 1,571 2,091 Current tax receivable 5 382 330 Other current assets 6 2,999 3,191 Current assets 17,945 20,046 Investment property 9 222,782 216,301 (Owner-occupied) Property, Plant and Equipment 7 1,177 1,149 Intangible assets 8 33 42 Long-term financial assets 13 3,504 3,375 Non-current assets 227,496 220,867 TOTAL ASSETS 245,441 240,913 Short-term loans 12 11,576 11,527 Trade payables 10 721 800 Current tax liability 5 473 525 Short-term financial liability 13 1,656 1,497 Other short-term liabilities 11 3,574 3,378 Current liabilities 18,000 17,727 Long-term loans 12 66,340 65,099 Other long-term liabilities 14 288 213 Non-current liabilities 66,628 65,312 TOTAL LIABILITIES 84,628 83,039 Share capital 1.3 250 250 Retained earnings 159,556 156,679 Treasury shares 22 (979) (978) Cash flow hedge reserve 13 4,407 4,328 Revaluation reserve of properties 681 681 Accumulated translation difference (3,102) (3,086) Shareholders' equity 160,813 157,874 TOTAL LIABILITIES & EQUITY 245,441 240,913 Notes 3 months ended March 31, 2024 March 31, 2025 Property rental revenue 4,311 4,341 Revenue 15 4,311 4,341 Property related expense 16 (38) (47) Employee related expense 16 (171) (169) Other operating expense 16 (109) (141) Depreciation and amortization 7, 16 (58) (56) Operating expense (376) (413) Valuation gains / (losses) from investment property 9 1,047 (6,583) Other income 17 122 105 OPERATING PROFIT / (LOSS) 5,104 (2,550) Interest income 18 109 61 Interest expense 18 (392) (367) Exchange rate difference 19 (78) 3 Financial result (361) (303) PROFIT / (LOSS) BEFORE TAX 4,743 (2,853) Income tax expense 20 (5) (23) PROFIT / (LOSS) FOR THE PERIOD 4,738 (2,876) Attributable to equity holders of the parent 4,738 (2,876) Basic earnings per share (EUR) 21 0.47 (0.29) Diluted earnings per share (EUR) 21 0.47 (0.29) Attention : This is an excerpt of the original content. 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