Advero Properties SOCIMI S A : 2023 Results

ADVERO Properties SOCIMI, S.A. Iradier, 21 - 08017 Barcelona. NIF A67077628. R.M. Barcelona, Tomo 46146, Folio 129, Hoja 510970

Barcelona, 12 April 2024

OTHER RELEVANT INFORMATION

ADVERO PROPERTIES SOCIMI, S.A. ("ADVERO" or "the Company"), in compliance with the provisions of article 17 of Market Abuse Regulation (EU) No. 596/2014 and of article 227 of the Law 6/2023, of 17 of March, of Capital Markets and Investment Services, and concordant provisions, as well as Circular 3/2020 of segment BME Growth in BME MTF Equity, hereby submits the following information, which has been prepared under the exclusive responsibility of the issuer and its administrators:

• Results note for the year ended 31 December 2023 (in English).
• Profit and loss account and Balance sheet as of 31 December 2023, prepared following the International Financial Reporting Standards (IFRS) for information purposes, according to the conversion procedures report reviewed by Ernst & Young, S.L. (in English).
• Audit report, Annual financial statements, and Management report for 2023 (in Spanish)
• Report on the organizational structure and internal control system (in English).

Yours sincerely,

D. Pablo Corbera Elizalde

Representing RIUARAN, SL

Chairman of ADVERO PROPERTIES SOCIMI, S.A.

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ADVERO Properties SOCIMI, S.A. Iradier, 21 - 08017 Barcelona. NIF A67077628. R.M. Barcelona, Tomo 46146, Folio 129, Hoja 510970

2023 Results Note

ADVERO CLOSED A NEW YEAR OF GROWTH AND IMPROVED PROFITABILITY, AFTER REACHING RENT INCOME OF €2.62M (+44%), OPERATING RESULT OF €0.47M (+48%) AND NET PROFIT OF €0.20M (+35%)

• Organic revenue growth of 11% from existing assets, and 33% from new acquisitions between 2022 and 2023.
• According to international accounting standards (IFRS), net result stood at €2.6m, mainly resulting from the value generation in new acquisitions and the revaluation of the existing portfolio.
• The company managed to increase its gross asset value by 13% to €60.2m, through a combination of asset acquisitions and maintaining the value of existing assets, after offsetting the effects of the increased cost of capital.
• The company's shares appreciated by 9% in the year, up to €10.9 per share, well in line with its net value (NAV).
• Spanish accounting standards set the net profit at €0.20m from profit of €0.15m in 2022, allowing for a new dividend distribution that will top up the increase in share price in 2023.
• Net financial debt stood at 20.1% of the portfolio value (LTV), of which, 61% is financed at a fix interest rate of 2% to 2036.

Barcelona, April 12, 2024. - ADVERO Properties SOCIMI, S.A., a real estate investment company listed on BME Growth, specialized in middle-income rental housing, closed a new year of growth, showing again the resilience of its business model in the face of complex political-economic situations.

ADVERO consolidated the integration of the asset portfolio acquired in mid-2022, which enabled the company to double its size last year. It also conducted two new acquisitions of residential buildings in 2023, while improving the management of its portfolio.

ADVERO closed 2023 with 24 buildings in its portfolio for a total of 389 homes, 211 parking spaces, 82 storage units and 3 retail units.

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Operating performance

ADVERO's Portfolio by Number of Buildings1

This includes the building acquired in Madrid in February 2024

ADVERO's offering of quality rental housing to the middle-income segment proved to be in high and increasing demand once again in 2023. The company kept another year of occupancy levels above 98%, and a short time-to-let on its apartment rotations.

The company closed 2022 with a gross rental income of 2.62 million euros, a 44% increase from the 1.81 million euros achieved in 2022.

This increase was a combination of organic growth from the improvement in rents from existing assets (+11% year-on-year),and the remainder through inorganic growth from (i) the full-yearconsolidation of assets acquired in 2022, and (ii) the two new acquisitions of 2023.

ADVERO's continued improvement in operating management and efficiencies, combined with the dilution of its fixed costs over a larger income base, resulted in an operating result of 0.47 million euros, +48% compared to the end of 2022.

The company maintained its low debt level policy in 2023, with a net financial debt of 12.1 million euros, 20.1% over the gross value of the portfolio at year end. 61% of this debt is financed at an average fixed rate of 2% with an average maturity in 2036. In 2023, the variable rate debt had an average cost of 4%. In accordance with the company's debt policy, the net financial debt will in no case exceed 30% of the value of the assets.

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All the above helped ADVERO close 2023 with a positive net profit according to Local-GAAP of 0.20

million euros (+35% versus 2022) and an operating cash flow of 0.68 million euros (+36%), triggering

one more year the distribution of dividends from ordinary results, to be approved in the general shareholders' meeting.

Value generation

ADVERO's investment proposition, based predominantly on acquiring under-managed residential assets from financial institutions, to provide quality housing to the growing number of middle- income renters in Spain, has resulted in a resilient business model. This was specially demonstrated over the last three years, through Covid-19 and the economic uncertainty from the recent wars.

According to an independent appraisal carried out by Savills Aguirre Newman, ADVERO's asset

portfolio at the end of 2023 was valued at 60.2 million euros, a 38% revaluation against the total investment of 43.8 million euros.

The year-on-year increase in GAV from 2022's appraisal was a result of the growth in the number of homes in the portfolio, as well as the maintenance of portfolio value of the existing assets, despite the significant increase in the cost of capital.

The confluence of war conflicts, which increased the risk and, therefore, the cost of capital, combined with historic inflation and the consequent rise in interest rates to try to control it, had an impact in practically all sectors of activity in 2022 and 2023. However, ADVERO's value proposition, based on the correlation between inflation, salaries and, consequently, the available income to pay rent, gives the Company certain immunity against upward movements in inflation. Furthermore, the increase in both uncertainty and interest rates benefits the company, as it channels greater demand towards rental housing.

The loss of value suffered by assets of all kinds in other segments was offset in the case of ADVERO by: a) the increase in rents compared to the last valuation; b) optimization of operating expenses; and c) the improvement in rental growth expectations in the residential rental segment in Spain.

All of the above does not mean that the negative effects of these years' events do not have an impact on ADVERO's business model, but rather that the company has levers that offset them and prevent value deterioration in the portfolio.

This was evidenced in the financial statements prepared according to international accounting

standards (IFRS), where the performance of the business, together with the value generated through new acquisitions and the existing portfolio, set the net profit in 2023 in 2.6 million euros.

As a company incorporated in Spain, ADVERO prepares its financial statements in accordance with the Spanish Generally Accepted Accounting Principles (Local-GAAP). This accounting methodology most significantly differs from that of the international regulations (IFRS) in that the variation in value of the real estate and bank financing is reflected only in the latter. Included in this results note

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is a profit and loss account and a balance sheet, prepared according to GAAP principles. ADVERO's IFRS financial statements are solely for information purposes, and they are subject to an agreed- upon procedures report by Ernst & Young.

ADVERO's Portfolio Evolution

In February 2024 ADVERO acquired its 25th residential property, in the city of Madrid, at that time managing a total of 402 homes, 227 parking spaces, 89 storage rooms and 3 retail units, in a

portfolio valued at 62.1 million euros.

On a full-year basis, ADVERO's portfolio should result in revenues of 3 million euros.

Share price evolution

ADVERO listed on the BME MTF Equity (Spain) on November 8, 2019, at a value of 6.50 euros per share. At the end of 2023, the company's shares were trading at 10.90 euros per share, reflecting a 68% increase since listing and a 9% increase in 2023, in line with the portfolio's fundamental value, which currently stands at €10.8 euros.

Future growth plans

The imbalance between offer and demand in the middle-income residential market in Spain is at the core of ADVERO's ambition to keep growing its presence in existing and new locations in the country.

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Since its start of activity in February 2018, the company has financed its growth through a combination of capital increases and bank debt, the latter with a limitation of up to 30% of the value of the portfolio.

ADVERO has a growth plan with a long-term vision, supported by a stable shareholder base that wishes to continue consolidating the company in the middle-income residential segment.

At the end of 2023, ADVERO's shareholding structure was divided into thirds between institutional investors, family offices with relevant stakes and representation on the board of directors, and free float.

ADVERO's Shareholding Structure

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Annex 1: Financial Statements

Audited Profit and Loss Accounts of 2022 and 2023 - Spanish GAAP (in thousands of euros)

PROFIT & LOSS ACCOUNT	2022	2023	Evol.
A) ONGOING OPERATIONS
1.	Total Income	1,815	2,618	44%
	a) Rendering of services	1,815	2,618
2.	Other operating income	-	5
	a) Ancillary income and other current management	-	5
3.	Personnel expenses	(82)	(254)
	a) Wages, salaries and other	(63)	(191)
	b) Social charges	(19)	(63)
4.	Other operating expenses	(1,104)	(1,419)
	a) External services	(1,027)	(1,232)
	b) Taxes	(61)	(115)
	c) Losses, impairment and variation in trade operations	(4)	(57)
	d) Other operating expenses	(12)	(14)
5.	Variation in the fair value of investment properties	-	-
6.	Depreciation of fixed assets	(349)	(476)
7.	Other results	42	-
8.	Impairment and gain or loss on disposal of assets	(1)	-
A.1) OPERATING INCOME	321	475	48%
9.	Financial income	9	16
	a) Participations in equity instruments	8	-
	b) Other financial income	1	16
10. Financial expenses	(179)	(286)
	a) For debts with third parties	(179)	(286)
11. Variation in fair value variation in financial instruments	-	-
	a) For debts with third parties	-	-
	b) Trading portfolio and others	-	-
A.2) FINANCIAL RESULT	(170)	(271)
A.3) EARNINGS BEFORE TAXES	150	204
12. Taxes on profits	-	-
A.4) NET RESULT	150	204
Net Cash Flow	499	679	36%

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Audited Balance Sheet as of 31 December 2021 and 2022 - Spanish GAAP (in thousands of euros)

Assets	31/12/2022	31/12/2023
Non-current assets	36,824	43,150
Intangible fixed assets	50	42
Fixed assets	81	202
Property investments	36,685	42,898
Long-Term Investment in Subsidiaries	6	6
Long-term financial investments	1	1

Current assets	2,841	953
Accounts receivable	195	153
Short-term financial investments	140	219
Prepaid Expenses	43	17
Cash and cash equivalents	2,464	564
TOTAL ASSETS	39,665	44,103
Equity & Liabilities	31/12/2022	31/12/2023
Shareholders' equity	31,172	30,875
Own funds	31,172	30,875
Share Capital	21,085	21,085
Share Premium	11,146	11,146
Retained Earnings	(900)	(1,072)
Treasury Stock	(155)	(234)
Other Equity Instruments	(155)	(155)
Net Result of the year	150	(204)
Non-current liabilities	7,512	11,592
Long-term debt	7,512	11,592
Current liabilities	981	1,536
Short-term debt	776	1,256
Accounts payable	205	280
TOTAL EQUITY AND LIABILITIES	39,665	44,103

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About ADVERO Properties SOCIMI, S.A.

ADVERO Properties SOCIMI, S.A. is a Spanish publicly traded real estate investment trust established in August 2017 with the aim of facilitating the supply of quality middle-income rental housing in Spain. The company concentrates its investments exclusively in residential assets, located on the outskirts of large cities or middle-income neighbourhoods, with full ownership of the property to facilitate the creation of cohesive tenant communities.

About ADVERO's shares

Share Capital: 4,217,061 shares

Accrued warrants: 842,412 warrants

Market Cap at 31/12/2022: 42.17 million euros

Stock exchange: BME MTF Equity (España)

Stock ticker : YADV

ISIN: ES0105448007

More information can be found on the "Investors" section of www.adveroproperties.com

[e-mail]: [phone]

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Profit and loss account and Balance sheet as of 31 December 2023, prepared following the International Financial Reporting Standards (IFRS) for information purposes, according to the conversion procedures report reviewed by Ernst & Young, S.L. (in English)