Advero Properties SOCIMI S A : H1 2023 Results

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

Barcelona, 23 October 2023

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 228 of the Consolidated Text of the Spanish Securities Market Law, approved by means of Royal Legislative Decree 6/2023, of 17th March, and concordant provisions, as well as in Circular 3/2020 of BME Growth within MTF Equity, hereby submits the following information, which has been prepared under the exclusive responsibility of the issuer and its administrators:

• Information note on the results for the first half of 2023
• Unqualified limited review report on the interim financial statements for the period ended 30 June 2023 (in Spanish)

This documentation is also available on the investor section of the Company's website, www.adveroproperties.com.

Yours sincerely,

D. Pablo Corbera Elizalde

En representación de RIUARAN, S.L

Presidente de ADVERO PROPERTIES SOCIMI, S.A.

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

Results for the 1st half of 2023

THE SIGNIFICANT GROWTH IN ADVERO'S ASSET PORTFOLIO DURING 2022 ENABLED THE COMPANY TO CLOSE THE FIRST HALF OF 2023 WITH A 45% INCREASE IN PROFIT AND 81% GROWTH IN NET CASH FLOW.

• The active acquisition policy has taken the company from 173 homes at the beginning of 2022 to 368 at the end of June 2023.
• In the first half of 2023, revenues amounted to €1.23m, 64% higher than revenues as of June 2022.
• EBITDA of €0.40m, an increase of 69% from €0.24m in the previous period.
• After depreciation and financial results, net profit amounted to € 0.055 million, an increase of 45%.
• Net cash flow reached €0.28m, 81% higher than in June 2022.
• Net debt to portfolio value ratio of 16% at the end of the first half, mostly financed at an average fixed rate of 1.9% over 15 years.
• Share appreciation of 5% since the beginning of the 2023.

Barcelona, 23 October 2023 - ADVERO Properties SOCIMI, S.A., a real estate investment company listed on BME Growth, specialising in middle-income rental housing, made significant progress in its growth strategy throughout 2022, with the achievement of important milestones that have been reflected in its results in the first half of 2023.

Following the acquisitions made in the previous four financial years since its commencement of activity in February 2018, which enabled it to close 2021 with 11 residential buildings in its portfolio with a total of 173 homes, ADVERO has since acquired 12 additional buildings, bringing its portfolio to 23 residential properties with a total of 368 homes in the cities of Madrid, Malaga, Cordoba and the metropolitan area of Barcelona.

Operational developments

ADVERO's strategic focus on middle-income rental buildings, and the strong demand for rental housing in Spain, which is highly unbalanced with the supply available in the market, has continued to facilitate the company's strong business performance, with occupancy rates of 98% in the first half of 2023.

The company closed the first six months of 2023 with a turnover of 1.23 million euros, compared to 0.75 million euros in June 2022, an increase of 64%, as a result of the acquisitions in 2022 and revenue optimisation on the assets in the portfolio.

These circumstances, combined with the fixed component of part of the operating costs, allowed ADVERO to increase its EBITDA by 69% to 0.40 million euros, compared to 0.24 million euros in the previous period, representing an increase in EBITDA margin from 32% to 33%.

Image 1: ADVERO's Portfolio

Financing for growth

ADVERO finances its growth through a combination of capital increases and bank debt, the latter with a target limit of 30% of the portfolio value.

Since the start of business in February 2018, ADVERO has carried out capital increases for a total amount of € 32 million, all of which was used for the acquisition of residential assets.

In addition, at the end of the first half of 2023, the net debt to portfolio value ratio stood at 16%, with 73% of this debt financed at an average fixed rate of 1.9% over 15 years.

After amortisation and financial expenses, ADVERO ended June 2023 with a net profit of 0.055 million

euros, compared to 0.038 million euros in June 2022. The company also achieved a net cash generation after interests of 0.28 million euros in the period, 81% higher than the 0.15 million euros in H1 2022.

Shareholder return

The estimated value of ADVERO's portfolio at the end of the first half of 2023 stood at 57.31 million euros, which brings the net value per share to 10.68 euros as of 30 September 2023 (105% appreciation since the first capital increase in 2018).

The strength of the mid-market residential rental sector allowed ADVERO to offset the effect of the increase in the cost of capital on the valuation of its portfolio at the end of 2022. In the same vein, in the first half of 2023, the company's rental contract turnover levels stood at 24%, with an average increase in rents of 10% in new contracts, as a result of the high demand in the sector.

As of this writing, ADVERO shares are trading at 10.50 euros per share, accumulating a revaluation in 2023 of 5%, and bringing the company's market capitalisation to 44 million euros.

ADVERO expects the growth of its portfolio over the previous year to be fully transferred to the full year results in 2023, and to be able to continue consolidating its dividend policy as a complement to the profitability that the company is accumulating through share appreciation.

About ADVERO Properties SOCIMI, S.A.

ADVERO Properties SOCIMI, S.A. es una sociedad de inversión inmobiliaria constituida en agosto de 2017 con la voluntad de facilitar la oferta de vivienda de alquiler de renta media en España. La compañía concentra su inversión en activos exclusivamente residenciales; ubicados en la periferia de grandes ciudades o barrios de renta media; con propiedad íntegra del inmueble para facilitar la creación de comunidades de inquilinos cohesionadas.

About ADVERO's shares

Shares oustanding: 4.217.061 shares

Excercisable warrants: 843.412 warrants

Market capitalisation on 20/10/2023: 44.2 M€

Trading exchange: BME MTF Equity (Spain)

Trading ticker: YADV

ISIN: ES0105448007

More information is available in the "Investors" section in www.adveroproperties.com

Contact

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Ashleigh Page

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Profit and Loss Account at 30 June 2023 and 30 June 2022

That supports the limited audit review of the financial statements for the first half of 2023 performed by EY

- Ernst & Young, S.L.

P&L (in thousands of euros)	1S 2022	1S 2023	Evol.
Total Income	0.749	1.229	64%
Total costs	-0.512	-0.829
EBITDA	0.236	0.401	69%
Amortization	-0.117	-0.226
Financial result	-0.081	-0.119
Net result	0.038	0.055	45%
Net cash flow	0.155	0.281	81%
% income	21%	23%

Balance sheet at 30 June 2023 and 31 December 2022

That supports the limited audit review of the financial statements for the first half of 2023 performed by EY

- Ernst & Young, S.L.

Assets (in thousands of euros)	31/12/2022	30/06/2023
Non-Current Assets	36,824	40,411
Intangible assets	50	63
Fixed assets	81	208
Property investments	36.685	40.132
Long-Term Investment in Subsidiaries	6	6
Long-term financial investments	1	2
Current Assets	2,841	1,981
Accounts receivable	195	84
Short-term financial investments	140	155
Prepaid Expenses	43	54
Cash and cash equivalents	2.464	1.688
TOTAL ASSETS	39,665	42,391
Equity & Liabilities (in thousands of euros)	31/12/2022	30/06/2023
Shareholders' Equity	31,172	31,176
Share Capital	21,085	21,085
Share Premium	11,146	11,146
Reserves	(900)	(938)
Treasury Stock	(155)	(154)
Other Equity Instruments	54	55
Negative Retained Earnings	(209)	(209)
Positive Retained Earnings	-	-
Net Result of the year	150	55
Non-current liabilities	7,512	10,265
Long-term debt	7,512	10,265
Current liabilities	981	1.085
Short-term debt	776	797
Accounts payable	205	288
TOTAL EQUITY AND LIABILITIES	39,665	42,391

ADVERO PROPERTIES SOCIMI, S.A.

ESTADOS FINANCIEROS INTERMEDIOS CORRESPONDIENTES AL PERÍODO DE 6 MESES TERMINADO EL 30 DE JUNIO DE 2023

ADVERO PROPERTIES SOCIMI, S.A.

Balance intermedio al 30 de junio de 2023

	(Expresado en euros)
ACTIVO	Notas	30/06/2023 (*)	31/12/2022
A) ACTIVO NO CORRIENTE
	40.412.000	36.823.699
I. Inmovilizado intangible	5	63.355	50.429
II. Inmovilizado material	6	208.544	81.484
III. Inversiones inmobiliarias	7	40.132.253	36.684.688
1.	Terrenos		17.553.952	17.053.243
2.	Construcciones		22.578.301	19.631.445
IV. Inversiones en empresas grupo y asoc	9	6.313	6.313
V. Inversiones financieras a largo plazo	9	1.535	785
B) ACTIVO CORRIENTE
	1.979.107	2.841.344
I. Deudores comerciales y otras cuentas a cobrar	9	83.471	194.929
1.	Clientes ventas y prestación de servicios		79.358	85.160
2.	Deudores varios		679	82.080
3.	Otros créditos con las Administraciones Públicas		3.434	-
4.	Anticipo a acreedores		-	27.689
II. Inversiones financieras a corto plazo	9	154.792	139.887
III. Periodificaciones a corto plazo	9	53.876	42.880
IV. Efectivo y otros activos líquidos equivalentes	9	1.686.968	2.463.648
TOTAL ACTIVO (A+B)
	42.391.107	39.665.043

Las notas 1 a 20 descritas en las notas explicativas forman parte integrante de los estados financieros intermedios.

(*) Cifras no auditadas

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ADVERO PROPERTIES SOCIMI, S.A.

Balance intermedio al 30 de junio de 2023

	(Expresado en euros)
PATRIMONIO NETO Y PASIVO	Notas	30/06/2023 (*)	31/12/2022
A) PATRIMONIO NETO
	31.039.981	31.172.136
A-1) Fondos propios		31.039.982	31.172.136
I. Capital social	10.1	21.085.305	21.085.305
II. Prima de emisión	10.2	11.146.389	11.146.389
III. Reservas		(938.183)	(900.440)
1.	Reserva legal	10.3	30.491	15.443
2.	Otras reservas	10.6	(968.674)	(915.883)
IV. Acciones y participaciones en patrimonio propias	10.5	(153.686)	(154.557)
V. Resultados negativos de ejercicios anteriores		(209.481)	(209.481)
VI. Otras aportaciones de socios	10.6.3	29.443	29.443
VII. Resultado del período	10.6.5	55.194	150.477
VIII. Otros instrumentos de patrimonio	10.6.2	25.000	25.000
B) PASIVO NO CORRIENTE
	10.265.912	7.512.121
I. Deudas a largo plazo	11	10.265.912	7.512.121
1.	Deudas con entidades de crédito		10.265.912	7.512.121
C) PASIVO CORRIENTE
	1.085.214	980.786
I. Deudas a corto plazo		797.187	776.171
1.	Deudas con entidades de crédito	11	328.834	521.822
2.	Otras deudas a corto plazo	11	468.353	254.349
II. Acreedores comerciales y otras cuentas a pagar		288.027	204.615
1.	Otros acreedores	11	235.519	171.374
2.	Personal		5.810	-
3.	Otras deudas con las Administraciones Públicas		46.698	33.241
TOTAL PATRIMONIO NETO Y PASIVO (A+B+C)
	42.391.107	39.665.043

Las notas 1 a 20 descritas en las notas explicativas forman parte integrante de los estados financieros intermedios.

(*) Cifras no auditadas

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ADVERO PROPERTIES SOCIMI, S.A.

Cuenta de pérdidas y ganancias intermedia correspondiente al periodo de 6 meses terminado el 30 de junio de

2023 (Expresada en euros)

		1 de enero de 2023	1 de enero de
CUENTA DE PÉRDIDAS Y GANANCIAS INTERMEDIA	Notas	a 30 de junio de	2022 a 30 de
		2023 (*)	junio de 2022 (*)
Importe neto de la cifra de negocios	14.1	1.211.934	740.295
Gastos de personal	14.2	(116.953)	(25.590)
Otros gastos de explotación	14.3	(711.612)	(504.409)
Amortización del inmovilizado e inversiones inmobiliarias	5,6,7	(225.835)	(121.357)
Otros resultados	15	17.515	9.094
A) RESULTADO DE EXPLOTACIÓN		175.049	98.033
Ingresos financieros	16	8.243	8.026
Gastos financieros	16	(128.098)	(89.361)
Variación de valor razonable en instrumentos financieros	9	-	-
RESULTADO FINANCIERO	16	(119.855)	(81.335)
RESULTADO ANTES DE IMPUESTOS		55.194	16.698
Impuestos sobre beneficios	12	-	-
RESULTADO DEL PERIODO		55.194	16.698

Las notas 1 a 20 descritas en las notas explicativas forman parte integrante de los estados financieros intermedios.

(*) Cifras no auditadas

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