Aurora Eiendom AS

Quarterly Report • May 11, 2022

AURORA EIENDOM Q1 2022 REPORT

Table of contents

FINANCIAL DEVELOPMENTS

HIGHLIGHTS AND SUMMARY KEY FIGURES THE REAL ESTATE PORTFOLIO 06 10 08

ALTERNATIVE PERFORMANCE MEASURES

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

24

On February 28th Aurora Eiendom AS completed the acquisition of Buskerud Storsenter from Citycon Norway AS, as seller, at a property valuation of NOK 1.175 million. Buskerud Storsenter has 59 stores and a gross turnover of NOK 1.2 billion. The latest addition to the portfolio fits well into Aurora's strategy to grow by acquiring shopping centers with a leading position in their markets.

In connection with the acquisition, Aurora Eiendom completed a private placement raising gross proceeds of NOK 400 million. The private placement was fully pre-committed and the subscription price per share was NOK 101.

Aurora's 50%-owned company Alti Forvaltning AS has taken over the management of Buskerud Storsenter. Alti Forvaltning also entered into an agreement to manage Magasinet Kjøpesenter on behalf of Magasinet Drammen Invest AS from March 2022. Consequently, Alti Forvaltning grew its portfolio of shopping centers under management by 2 to a total of 33 in the quarter.

Gross tenant turnover in Q1-2022 for Aurora's shopping centers, including Buskerud Storsenter (full quarter) was NOK 1.3 billion, which is an increase of 10.4% from Q1-21. Tenant turnover continues to show positive development while footfall is not at pre-pandemic levels so far. We observe that our shopping center visitors complete more errands when visiting a center than before the pandemic – and drop-in visits are not as frequent as before. This trend is seen in car-based centers particularly, while shopping centers based centrally in city centers experience faster increase in footfall.

Leasing activity resulted in an increase in vacancy of 1.2 percentage points, mainly due to two larger office tenants. The occupancy of retail space remained stable in the quarter.

LETTER FROM THE CEO

New acquisition

First quarter of 2022

The shopping center sales performed at good levels in the first quarter of the year, following a strong second half of last year. The sales levels were high above the first quarter of 2021, which was negatively affected by the pandemic, but also above pre-pandemic levels in 2019. Despite increase in sales the footfall is still lagging behind pre-pandemic levels, which makes spend per customer the driver of the sales. With the community returning to normal after Covid-19 we observe that the footfall normalizes more and more for each passing week.

We are pleased to have started the new year with acquiring Buskerud Storsenter in Drammen municipality. A well held and modern shopping center of regional size, with a significant development potential and holding the leading position in its primary market Krokstadelva and Mjøndalen. The acquisition is in line with our growth ambitions and is an excellent complement to our portfolio.

On the negative side, we have general uncertainty in the world today, in a combination of inflation, war in Europe, rising interest rates and volatile markets. This has so far not negatively affected sales in our shopping centers, but we may see the effects of this in the future. Examples are reduced access to products in certain categories of our tenants' product range, increasing common costs for

Lars Ove Løseth CEO Aurora Eiendom AS

tenants and reduced purchasing power for customers due to elevated electricity prices and rising long term interest rates. As a counterweight the uncertainty caused by the war adds momentum to already high inflation levels, affecting the yearly adjustment of most of the portfolio's leases.

During the first quarter 13 leases of a total of 4 192 sqm. were extended, equal to 2.9 % of the property portfolio. Simultaneously new leases with a total of 428 sqm. started, and leases with a total of 2 229 sqm. expired or were terminated. This corresponds to an increase in vacancy of 1.2 percentage points. The increase in vacancy mainly relates to two office tenants, while the occupancy of retail space is virtually unchanged. On the way out of the pandemic, we are experiencing a high level of optimism among the retail tenants, and an increased willingness to invest in physical stores. This has resulted in us having several exciting new establishments in the time to come.

The traditional shopping center has typically been introverted and primarily communicated to its own common areas. This is also the case for several of the centers in our portfolio. We are actively working to open the centers up to be more in connection with the city life and activities around us. One of the significant changes we are making in the near future is the establishment of the restaurant Sabrura Sticks & Sushi in the façade of Nerstranda, to open the center towards the adjacent city square.

Another area of focus is to establish a greater offering of health services and medtail tenants, to provide our visitors with the possibility to complete even more errands at one location. We believe that this sector will be an important part of tenant mix going forward and are working on transforming some of our office areas for this purpose. Transforming shopping centers to not only be a place for shopping, but to also become a hub of services.

Aurora Eiendom Group

Key figures

Group Key Figures		Q1 2022	2021
Rental Income	NOK	83 122 490	158 043 738
Net income from property management	NOK	71 321 160	129 008 000
		31.03.2022	31.12.2021
Market value of property portfolio	NOK	6 487 100 000	5 222 900 000
Net interest bearing debt*	NOK	2 987 144 912	2 377 271 564
Outstanding shares		24 510 796	20 550 400
Equity per share	NOK	135.8	130.7
Alternative performance measures*		31.03.2022	31.12.2021
Interest coverage ratio		2.6	3.2
Loan to value (LTV)	%	46.0 %	45.5 %
EPRA earnings per share (EPS)	NOK	1.74	6.37
EPRA NRV per share	NOK	142	139
EPRA NTA per share	NOK	137	135
EPRA NDV per share	NOK	136	131
* See Alternative Performance Measures for details
Leasing activity		Q1 2022	YTD 2022

Leasing portfolio summary		Q1 2022	YTD 2022
Properties	#	6	6
GLA	sqm	146 152	146 152
Occupancy	%	91.2	91.2
WAULT	year	2.7	2.7
12 month rolling rent *	MNOK	368	368
12 month rolling rent *	NOK / sqm	2 762	2 762

The lease portfolio summary only refers to rent from leases tied to gross lettable area (GLA). For example, income from parking and specialty

leasing is not includeded.

Total area of leases started	sqm	428	428
Total area of leases ended	sqm	2 229	2 229
Net area leased	sqm	-1 801	-1 801
Net area leased	%	-1.2 %	-1.2 %
Average lease term for new leases	year	3.1	3.1
Total area of leases extended	sqm	4 192	4 192
Total area of leases extended	%	2.9 %	2.9 %
Average extension for extended leases	year	4.0	4.0

		Properties

The real estate portfolio

	Gross Tenant Turnover

(NOK million)	Q1 2022	Q1 2021	Q1 2020	Q1 2019
Amanda Storsenter*	218	213	221	254
Nerstranda	100	92	89	97
Alti Nordbyen	116	96	103	113
Vinterbro Senter	362	358	329	322
Farmandstredet	279	207	236	269
Buskerud Storsenter	245	231	221	236
Sum	1 320	1 196	1 200	1 292

*Turnover includes Coop OBS!, not owned by Aurora

Financial developments

Rental income

Gross rental income in the quarter was NOK 83.1 million compared to NOK 79.4 million in Q4 2021. The increase is mainly due to the acquisition of Buskerud Senter from March 1st.

Property related operational expenses and administrative expenses

Property related operational expenses consist of maintenance, property tax, leasehold insurance and other direct property cost. These costs amounted to NOK 6.5 million during the first quarter of 2022. For more information see note 4.

The administrative expenses were NOK 4.1 million. This represents the fee paid to Alti Forvaltning AS for managing the six shopping centers in the Aurora portfolio. Alti Forvaltning AS also provides management services to the parent company Aurora Eiendom AS, and the cost of this is included in the management fee. The management fee is calculated as a percentage of gross rental income less owner´s share of common costs.

Other operating income and expenses

Other operating income and expenses consists of income and expenses not related to the properties, such as provision and consultancy fees. These costs amounted to NOK 1.3 million and include legal fees and fees to Euronext Growth and VPS in connection with the transaction completed in Q1.

Net income from property management

Net income from property management was NOK 71.3 million. This is an increase of NOK 3.3 million compared to last quarter (NOK 68.0 million).

Fair value adjustments of investment properties

The fair value of the investment properties was adjusted by NOK 174.1 million in the quarter. After the acquisition of Buskerud Senter the Group's portfolio now consists of six shopping centers.

Share of results from associated companies

Aurora Eiendom AS has two associated companies. The management company Alti Forvaltning AS and JHG Invest AS. The Group's share of profit in these companies amounted to NOK 21 253 in the first quarter. During Q1 Aurora amortized NOK 1.3 million in excess book value paid related to their share in Alti Forvaltning AS. This is included in The Group's share of profit.

Financial income

Financial income is mainly interests on cash and cash equivalents.

Fair value adjustments on interest rate derivatives Aurora Eiendom AS has ten interest rate derivative contracts. Market value and position of these contracts amounted to NOK 90.2 million by the end of the quarter. This in an increase of NOK 98.9 million. The main reason of the increase is the rise of the NIBOR rates and especially the 10 year forward rates. The average maturity date of the Group's contracts are in late 2031.

Financial expenses

million compared to NOK 22.1 million in Q4 2021. The increase is mainly related to the increase in interest rate levels and new bank debt in connection with the acquisition of Buskerud Senter.

Summary

Profit before income tax was NOK 44.1 million. Pre-tax profit, including fair value adjustments of investment properties and interest rate derivatives, was NOK 317.1 million.

Balance sheet

The Group's assets amounted to NOK 7 090 million. Of this, investment properties amounted to NOK 6 487 million (92 %). Interest bearing debt was NOK 3 379 million (amortized) which is an increase of NOK 725 million since last quarter (NOK 2 654 million).

The equity totaled NOK 3 328 million (47 %).

Financing

The Group's debt portfolio consists of long-term debt with Norwegian banks. The remaining term for the debt portfolio is 2.25 years.

Financial expenses in the quarter amounted to NOK 27.3 NOK 404.8 million. >>

The Group's investment properties are pledged as security for the bank loans.

The Group's bank loans incorporate financial covenants related to minimum liquidity, loan-to-value and interest cover ratio. Aurora Eiendom was in compliance with conditions in the credit agreements as of 31.03.2022.

Cash flow and liquidity

Net cash flow from operating activities was NOK 67.2 million. Net cash flow from investments and financing activities are heavily influenced by the acquisition of Buskerud Senter. Net cash flow from investments was NOK -1 075.4 million while net cash flow from financing activities was NOK 1 124.3 and includes proceeds from a share issue and increased bank debt. This results in a net change in cash and cash equivalents of NOK 116.1 million for the first quarter giving us a cash and cash equivalent at the end of the period of

Aurora Eiendom	Note	Q1 2022	2021
Rental income		83 122 490	158 043 738
Property related operational expenses	4	-6 447 658	-15 161 419
Net rental income		76 674 832	142 882 319
Other income		21 253	275 602
Other operating expenses	4	-1 325 110	-6 635 017
Administrative expenses	4	-4 049 815	-7 514 904
Net income from property management		71 321 160	129 008 000
Fair value adjustment, investment property	2	174 113 633	754 614 898
Share of profit from JV and associates		26 718	-166 251
Operating profit		245 461 511	883 456 647
Financial income		19 228	160 768
Fair value adjustments, interest rate derivatives	1	98 935 139	-8 710 592
Financial expenses		-27 308 224	-40 164 446
Net financial items		71 646 143	-48 714 270
Profit before income tax		317 107 654	834 742 377
Change in deferred tax		-69 757 806	-170 008 304
Income tax payable		-5 204 844	-11 938 996
Income tax		-74 962 650	-181 947 300
Profit		242 145 004	652 795 077

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Other Comprehensive income	Note	Q1 2022	2021
Items to be reclassified to P&L in subsequent periods:
Currency translation differences from foreign operations		-	-
Hedging of net investment in foreign operations		-	-
Income taxes on other comprehensive income		-	-
Total comprehensive income for the period/year		242 145 004	652 795 077
Profit attributable to:
Shareholders of the parent		242 145 004	652 795 077
Total comprehensive income attributable to:
Equity holders of the Company		242 145 004	652 795 077
Basic and diluted earnings per share		10.98	59.18

Profit attributable to:

CONSOLIDATED BALANCE SHEET – ASSETS CONSOLIDATED BALANCE SHEET – LIABILITIES

Equity
Share capital
Share premium
Retained earning
Total equity

Non-current assets	Note	31.03.2022	31.12.2021
Investment properties	2	6 487 100 000	5 222 900 000
Investment in joint ventures and associated companies		89 750 779	89 724 061
Receivables		2 411 063	1 256 126
Derivative financial instruments	3	90 224 547	4 428 480
Total non-current assets		6 669 486 389	5 318 308 667
Current assets
Trade receivables	3	10 373 529	2 340 358
Other current asset		5 407 605	13 198 657
Cash and cash equivalents	3	404 841 718	288 715 066
Total current assets		420 622 852	304 254 081
TOTAL ASSETS		7 090 109 241	5 622 562 748

Long-term liabilities

Equity	Note	31.03.2022	31.12.2021
Share capital		1 838 309 700	1 541 280 000
Share premium		594 612 882	492 656 586
Retained earning		894 940 081	652 795 077
Total equity		3 327 862 663	2 686 731 663
Long-term liabilities
Loans	3	3 209 759 262	2 524 568 870
Derivative financial instruments	3	-	13 139 072
Lease liabilities		11 488 577	11 859 429
Deferred tax liabilities		239 766 110	170 008 304
Total long-term liabilities		3 461 013 949	2 719 575 675
Short-term liabilities
Loans	3	169 495 439	129 830 681
Income tax payable		32 607 359	17 169 515
Trade payables	3	23 492 241	15 532 464
Current lease liabilities		1 483 408	1 483 407
Other current liabilities	3	74 154 182	52 239 343
Total short-term liabilities		301 232 629	216 255 410
Total liabilities		3 762 246 578	2 935 831 085
Total liabilities and shareholders' equity		7 090 109 241	5 622 562 748

Short-term liabilities

	Share capital		Share premium Retained earnings	Total equity
Equity at 31.12.2021	1 541 280 000	1 541 280 000	652 795 077	2 686 731 663
Share issue	297 029 700	102 970 296	-	399 999 996
Transaction cost equity issue net of tax	-	-1 014 000	-	-1 014 000
Profit for period	-	-	242 145 004	242 145 004
Total equity 31.03.2022	1 838 309 700	594 612 882	894 940 081	3 327 862 663

	Note	Q1 2022	2021
Profit before tax		317 107 654	834 742 376
Net expensed interest and fees on loans and leases		27 308 224	39 436 819
Net interest and fees paid on loans and leases		-22 694 766	-31 794 110
Share of profit from associates and jointly controlled entities		-26 718	166 251
Changes in value of investment properties		-174 113 633	-754 614 898
Changes in value of financial instruments		-98 935 139	8 710 592
Change in working capital		18 517 253	-326 264
Net cash flow from operating activities		67 162 875	96 320 767
Acquisitions of investment properties		-1 072 393 925	-4 405 106 502
Investment in and upgrades of investment properties		-2 971 442	-5 887 158
Investments in associates and JVs		-	-89 890 313
Net cash flow from investment acitivities		-1 075 365 367	-4 500 883 973
Proceeds interest bearing debt		750 000 000	2 665 986 630
Repayment interest bearing debt		-24 000 000	-
Repayment of lease liabilities		-370 852	-732 788
Proceeds from issue of shares/repurchase of shares		398 699 996	2 028 024 430
Net cash flow from financing activities		1 124 329 144	4 693 279 272
Change in cash and cash equivalents		116 126 652	288 715 066
Cash and cash equivalents at beginning of period		288 715 066	-
Cash and cash equivalents at beginning of period		404 841 718	288 715 066

CHANGES IN EQUITY STATEMENT OF CASH FLOWS

Notes

INVESTMENT PROPERTIES

FINANCIAL ASSETS AND FINANCIAL LIABILITIES

1

COSTS 4

3

2

NOTE 1 – ACCOUNTING PRINCIPLES

The financial results for Q1-2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting principles that have been used are described in the annual report. The interim financial results for Q1-2022 have not been audited.

NOTE 2 – INVESTMENT PROPERTY

Investment property consist of property (land, building or both) held to earn rental income and to increase value of capital. Investment property is recognised at fair value. The fair value model is also applied to the right-of-use-assets (building plots covered by long term leasehold contracts).

Investment property is valued at its fair value based on a valuation carried out by the independent appraisers Cushman & Wakefield AS. The value is calculated using the discounted cash flow method.

The fair value represents the amount at which the assets could be exchanged between a knowledgeable, willing buyer and seller in an arm's length transaction at the date of valuation.

Q1 2022

Opening balance as of 01 January 2022 5 222 900 000 Additions from acquisitions 1 087 114 925 Capital expenditure on investment properties 2 971 442 Net gain / loss on changes in fair value 174 113 633 Value of investment properties 6 487 100 000

NOTE 2 – INVESTMENT PROPERTY

Changes in fair value is recognised in the period to which the profit/loss relates. The latest independent valuation was carried out on 31 of March 2022. Investment properties are not depreciated.

There are no restrictions on when the investment properties can be realised. Revenue from sales must in part be used to repay bank loans.

There are no significant contractual obligations to buy, build or develop investment properties. The investment properties are pledged as security for the bank loans.

Main data for valuation

NOTE 3 – FINANCIAL ASSETS AND FINANCIAL LIABILITIES

NOTE 3 – FINANCIAL ASSETS AND FINANCIAL LIABILITIES

	Q1 2022	Q1 2022
Assets	Amortised cost	Fair value
Financial derivatives		90 224 547
Accounts receivable	10 373 529
Cash and cash equivalents	404 841 718
Total Financial assets	415 215 247	90 224 547

Determination of fair value

For Fair Value of Investment Properties see note 2 "Investment property".

Liabilities	Q1 2022	Q1 2022
Interest bearing loans and borrowings	Amortised cost	Fair value
Bank Loan 1	3 113 169 748
Bank Loan 2	266 084 952
Trade payables	23 492 241
Financial derivatives		0
Total financial liabilities	3 402 746 941	0
Determination of fair value
The following of the Group's financial instruments are not measured at fair value: cash and cash equivalents, accounts receivables, other current receivables and payables.
Bank loans have been recognised at amortised cost. Per 31.03.2022 the Group did not have financial instruments other than those mentioned above.
The carrying amount of cash and cash equivalents is approximately equal to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of account receivables and other current receivables and payables is approximately equal to fair value since they are short term and entered into on "normal" terms and conditions.

Valuation data	31.03.2022
Valuation method	DCF
Valuation level	3
Fair Value	6 487 100 000
Weighted average net initial yield (excluding development projects)	5.37 %
Net initial yield range	5.02 % - 5.82 %
Weighted average fully let yield (excluding development projects)	5.59 %
Fully let yield range	5.29 % - 6.34 %
Long term operating expense growth	2.00 %
Long term gorwth rate in real rental terms	2.00 %
Number of properties	6
GLA SQM	146 152

NOTE 4 – COSTS

Operating costs	Q1 2022	2021
Maintenance	411 261	4 513 453
Leasehold and property insurance	918 801	2 060 509
Other expenses / direct property costs	5 117 596	8 587 457
SUM	6 447 658	15 161 419

Expenses directly related to the operation of existing properties are presented as real estate related costs.

REAL ESTATE RELATED COSTS

NOTE 4 – COSTS

Administrative expenses	Q1 2022	2021
Administrative expenses	4 049 815	7 514 904

Other operating expenses	Q1 2022	2021
Advertising	30 759	630 250
Consultancy fees and external personnel	971 210	2 364 740
Other operating costs	323 141	3 640 027
Total operating expenses	1 325 110	6 635 017
Specification auditor's fee	Q1 2022	2021
Statutory audit		519 598
Other assurance services		658 024
Other non-assurance services		-
Tax consultant services		-
Total	-	1 177 622

Admininistrative expenses represent the management fee paid to Alti Forvaltning AS for mangagement of the shopping center portfolio. Alti Forvaltning AS also provides management services for the parent company Aurora Eiendom AS, the cost of which is included in the management fee.

Some of the auditor's fees have been included in the initial recognised cost of the investment properties, as the fees are related to the acquisition of these properties.

OTHER COSTS

Aurora Eiendom's Alternative performance measures and EPRA reporting

AURORA EIENDOM'S ALTERNATIVE PERFORMANCE MEASURES ARE

• 1. Debt ratio Loan to value (LTV)
• 2. Interest Coverage Ratio

3. EPRA Performance Measures

• A. EPRA Earnings EPRA Earnings per share (EPS)
• B. EPRA Net Assset Value metrics EPRA Net Reinstatement Value (NRV) EPRA Net Tangible Assets (NTA) EPRA Net Disposal Value (NDV)

1. DEBT RATIO – LOAN TO VALUE (LTV)

2. INTEREST COVERAGE RATIO (ICR)

Loan to Value (LTV)	31.03.2021	31.12.2021
Fair value of investment properties	6 487 100 000	5 222 900 000
Nominal interest- bearing debt	3 391 986 630	2 665 986 630
Cash and bank deposits	404 841 718	288 715 066
Net interest-bearing debt	2 987 144 912	2 377 271 564
Loan to value	46.0 %	45.5 %

	Q1 2022	2021
Net income from property management	71 321 160	129 008 000
Financial expenses	27 308 224	40 164 446
Interest coverage ratio	2.6	3.2

Aurora Eiendom AS' financial reporting is prepared in accordance with IFRS. As a supplement to the financial statements, the company reports alternative performance measures. These are intended to be a supplement to the financial statements, to enhance the understanding of the company´s performance.

EPRA metrics are presented in accordance with the best practices defined by the European Public Real Estate Association BPR 2019.

3. EPRA PERFORMANCE MEASURES

		Unit	Q1 2022	2021
A	EPRA earnings per share (EPS)	NOK	1.74	6.37
B	EPRA NRV per share	NOK	142	139
	EPRA NTA per share	NOK	137	135
	EPRA NDV per share	NOK	136	131

EPRA Earnings is a measure of operational performance and represents the net income generated from the company's operational activities.

A. EPRA EARNINGS

3. EPRA PERFORMANCE MEASURES

	Q1 2022
All amounts in NOK million	IFRS reported	EPRA adjustments	EPRA Earnings
Rental income	83		83
Operating costs	-6		6
Net operating income	77	-	77
Other revenue	0		0
Other costs	-1		-1
Administrative costs	-4		-4
Share of profit from associates and JVs	0		0
Net realised financials	-27		-27
Net income	44	-	44
Changes in value of investment properties	174	-174	-
Changes in value of financial instruments	99	-99	-
Profit before tax/EPRA Earnings before tax	317	-273	44
Tax payable	-5		-5
Change in deferred tax	-70	60	-10
Profit for period/EPRA Earnings	242	-213	29
Average outstanding shares (million)			22.0
EPRA Earnings per share (NOK)			1.33

	Q1 2022
	NRV	NTA	NDV
IFRS Equity	3 328	3 328	3 328
Net Asset Value (NAV) at fair value	3 328	3 328	3 328
Deferred tax properties and financial instr	240	240
Estimated real tax liability		120
Net fair value on financial derivatives	-90	-90
EPRA NAV	3 477	3 358	3 328
Outstanding shares at period end (million)	24.5	24.5	24.5
EPRA NAV per share (NOK)	142	137	136

B. EPRA NET ASSET VALUE METRICS

EPRA Net Reinstatement Value (NRV): the objective of this metric is to highlight the value of net assets on a long termbasis, assuming that no selling of assets takes place.

EPRA Net Tangible Assets (NTA): the calculation assumes entities buy and sell assets, thereby crystallising certain levels of deferred tax liability. Aurora Eiendom has chosen option (iii) in the EPRA BPR Guidelines. In this calculation

50% of the deferred taxes are added back.

EPRA Net Disposal Value (NDV) provides the reader with a scenario where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax, this to illuatrate shareholder value in a scenario of orderly sale of all the company´s assets.

Kathrine Mauset CFO Aurora Eiendom AS kathrine.mauset@alti.no +47 464 48 411

Report

Quarterly Report – Q2 2022 Quarterly Report – Q3 2022

www.aurora.no