Aedifica SA

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annual report 2024 housing with care Universal registration document annual report 2024 4 Introduction by CEO 5 Unlocking The Mount’s full potential 7 A flexible school building, custom-made 9 A place like home Send us your feedback [email protected] For further information Ingrid Daerden, CFO – [email protected] Delphine Noirhomme, Investor Relations Manager – [email protected] Creation and production www.chriscom.eu the Aedifica team Photography Gunter Binsack, Ashleigh Britten, Dan Chadwick, Eric Herschaft, Mika Huisman, Roope Jakonen, John Jordan, Tommi Levy, Dorian Lohse, Egbert Nijkamp, Wille Nyyssönen, Nicolas Peeters, David Plas, Sami Säily, The Owl & Sami Tirkkonen Aedifica NV/SA Public Regulated Real Estate Company under Belgian Law Belliardstraat 40 (box 11) in 1040 Brussels - Belgium Tel: +32 (02) 626 07 70 - Fax: +32 (02) 626 07 71 Tax-BE 0877 248 501 – Register of Legal Entities of Brussels www.aedifica.eu Ce rapport annuel est également disponible en français 1 . Dit jaarverslag is eveneens beschikbaar in het Nederlands 1 . 1. The English version of the document represents the original document as submitted to the FSMA, as competent authority under the Prospectus Regulation. The Dutch and French versions are translations and were prepared under Aedifica’s responsibility. Required components In accordance with Articles 3:6 and 3:32 of the Belgian Code of Companies and Associations, the required components of Aedifica’s annual financial report 2024 are included in the following chapters: • Financial review pages 72-92 • Corporate governance statement pages 93-123 • Risk factors pages 124-134 • Financial statements pages 135-193 This annual financial report provides an overview of the activities and financial sta- tements for the financial year ending on 31 December 2024. @aedifica_reit aedifica-reit aedifica_reit AEDIFICA 2 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 AEDIFICAannual report 2024 - CONTENTS 3 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 4 HOUSING WITH CARE 4 Introduction by the CEO 5 Unlocking The Mount’s full potential 7 A flexible school building, custom-made 9 A place like home 11 THIS IS AEDIFICA 12 Profile 14 Discussing 2024 and the future 16 Aedifica in 2024 17 Key figures 18 Highlights 19 STRATEGY AND VALUE CREATION 21 How we create value 22 Strategy 23 OUR APPROACH TO CSR 25 Value chain 26 Double materiality assessment 32 Our CSR framework 33 Our CSR goals 34 SDGs and UN Global Compact 34 ESG ratings 35 BUSINESS REVIEW 37 Portfolio 55 Partners 63 Organisation 72 Financial review 93 CORPORATE GOVERNANCE STATEMENT 124 RISK FACTORS 135 FINANCIAL STATEMENTS 136 Consolidated financial statements 187 Abridged statutory financial statements 194 ADDITIONAL INFORMATION 195 Reporting according to EPRA BPR standards 207 Summary of investment properties 225 External verification 239 Standing documents 252 EPRA sBPR content table 253 GRI content index 255 Statements 257 Glossary Housing with care ‘With our healthcare real estate portfolio, we contribute on a daily basis to the quality of life of everyone who lives and works in our buildings.’ Stefaan Gielens CEO For almost twenty years, we have been working ‘with care’ to build a portfolio of futureproof care properties that contribute on a daily basis to the quality of life of everyone who lives and works in our buildings. Through this series of three portraits, we want to show you the tangible impact we have as a company on all our stakeholders, whether they are building partners, care providers, residents or the local community. Our redevelopment project of The Mount care home near London is a perfect example of how we create sustainable real estate solutions that meet the needs of the local community. William, our Asset & Investment Manager, explains how this in-house redevelopment is unlocking the full value potential of the care home. We also travelled to Oulu, in the far north, where our Finnish team developed a brand new school building. The project shows our successful co- operation with the site’s public operator and proves that our real estate concepts have a very positive impact. Indeed, pupils were so delighted with the new school that they even wanted to stay overnight. Finally, at Clondalkin Lodge in Dublin, we listen to two people who live and work in one of our care homes day in and day out. William tells how, after changing care homes twice, he was finally able to find a home with us. Dairai explains how, through efficient building design, we can help our tenants reduce costs and support them to maximise resi- dents’ quality of life. I would like to thank everyone who contributed to these three stories. I hope that through their expe- riences you will get a better idea of the added value to society that we create at Aedifica. AEDIFICA 4 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - HOUSING WITH CARE Redevelopment of The Mount care home in Wargrave (UK) • Investment: approx. £14 million • Expected completion: Q2 2026 • Capacity upgrade: from 35 to 65 residents • Futureproof: highly energy-eﬃ cient property with ‘A’ EPC-score • First project developed in-house by Aedifi ca’s UK team • Creating added value through powerful partnerships, a clear focus on sustainability and community involvement ‘We are transforming The Mount from a bottom 5 to a top 5 care home.’ ‘We are transforming The Mount from a bottom 5 to a top 5 care home.’ The Mount’s full potential Unlocking AEDIFICA 5 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - UNLOCKING THE MOUNT’S FULL POTENTIAL ‘The old building had not been up to modern standards for some time before it was demoli- shed. When we started thinking about what to do with the property, it quickly became clear that it deserved more than just a refurbishment,’ says William, who has been managing the pro- ject for Aedifica since 2022. The care home is located in Wargrave, an affluent village near Henly on Thames just 20 km from London with a growing demand for healthcare properties. To unlock the full value potential of its location, it was decided to partner with Hamberley Care Homes – an experienced top-tier operator – and double the capacity of the site to 65 residents. ‘Our objective was to transform The Mount from a ‘bottom 5’ to a ‘top 5’ buil - ding in our portfolio,’ William explains. ‘That is why we opted for a more spacious and sustainable new build. We then set about putting everything in place: formulating the business case, liaising with the authorities, applying for permissions, informing local residents and, of course, carefully selecting the right partners to shape this project under Aedifica’s vision accor- ding to their specific expertise,’ William adds. In addition to care operator Hamberley Care Homes, the project involves FED 3 Project Managers, Pozzoni architects – specialists in designing care homes – and Lawrence Baker Construction – a contractor that has already completed several Aedifica care homes. Futureproof: focus on comfort & energy efficiency The project is Aedifica’s third collaboration with Hamberley. With 22 care homes under its management, the care operator brings exten- sive knowledge and experience with regard to the needs and wishes of residents. They have distilled this into a detailed operatio- nal playbook that focuses on the wellbeing of the elderly: from room size and activity rooms to easy-to-use technology, the height of light switches and even the colour of the armchairs. Nothing is left to chance to ensure the best possible care and maximum individual freedom. Amenities will include an open plan café and reception, cinema, hair salon, private dining room, bar and activity room. There will also be space for all kinds of outdoor activities: residents will be able to walk, garden, exercise or simply sit down for a chat or a picnic. ‘We listened and reviewed the design with Ham- berley. Based on our experience, especially with energy-efficient projects, we worked together in a collaborative way while remaining focused on the ‘value for money’ principle during the construction phase,’ says William. The care home will be futureproof in every res - pect. It will meet the highest standards not only in terms of care and comfort, but also in terms of sustainability. The building will be equipped with energy-efficient systems: air source heat pumps will provide sustainable, all-electric heating, while expansive rooftop solar power systems will supply the building with renewable energy. Involving the community All the specifications are now being followed down to the last detail by enthusiastic contractor Matthew Tucker of Lawrence Baker Construc- tion, who can now see it all taking shape. ‘The care home will have spacious corridors, plenty of storage options, easy access, various social areas, and even a Covid-secure room,’ he explains. Matthew himself lives in Wargrave and spends a lot of time on site because of his special invol- vement with the project. ‘I have a soft spot for this construction site. I have taken the initiative to take local schools on regular visits to the site. Maybe I can turn my own children or their friends into future builders,’ he laughs. Matthew also focuses on the local community by hiring local workers and paying special attention to ‘streetscaping’ so as not to disturb the peaceful surroundings. In fact, this was a requirement of the local authority: no disruption or inconvenience. These issues were also discussed with Aedifica, the driving force behind this project. ‘This is what we can achieve when we work together effectively. From concept to completion, we prioritise open communication, transparency and customer satisfaction to build the trust we need,’ William concludes. ‘Our collaborative approach allows us to deliver a superior building. What’s more, we expect to do more similar value creating projects in the near future.’ Our collaborative approach allows us to deliver a superior building. William Selby Asset & Investment Manager Today, The Mount is a busy construction site. For more than two years, Aedifica has been working with three partners on a plan to redevelop the outdated building into a state-of-the-art care home. Now that all permits have been obtained, shovels have finally hit the ground. By mid-2026, a new home will open its doors here to welcome 65 residents. No effort has been spared in the design to ensure the building contributes as much as possible to the wellbeing of the resi- dents and integrate the facility into the local community. William Selby, Aedifica’s UK Asset & Invest- ment Manager, shows us around and gives us a sneak preview. AEDIFICA 6 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - UNLOCKING THE MOUNT’S FULL POTENTIAL Extension of a school in Oulu (Finland) • Investment: approx. €12 million • Completed in December 2024 • Extension of a school that is part of a publicly operated community centre • Aedifi ca’s local team was assigned the project after winning a public tender • Classrooms specifi cally geared to the school’s learning model Anne Moilanen Principal of the Hiukkavaara School ‘The new building is so pleasant that some pupils have even said they would like to spend the night at school.’ ‘The new building is so pleasant that some pupils have even said they would like to spend the night at school.’ school building custom-made A ﬂ exible AEDIFICA 7 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - A FLEXIBLE SCHOOL BUILDING, CUSTOM-MADE When we arrive at the Hiukkavaara community centre in Oulu, the whole area is covered with a fresh layer of snow. Hoivatilat, Aedifica’s local team in Finland, recently completed the exten- sion of the school building here. At the beginning of January 2025, ten groups of first to fourth graders were able to start their spring semester in brand-new classrooms. We receive an enthusiastic welcome from Anne Moilanen, the school’s principal: ‘We are very pleased with the functionality and design of the new school building. It is truly fit for purpose!’ The Hiukkavaara school is part of a community centre that also houses a childcare centre, a youth centre and a library. The whole complex is ope- rated by the City of Oulu. Anne has a longtime connection with the school. From the very begin- ning, she was involved in the design of the initial school building, which was completed in 2017. As the number of pupils grew, it soon became clear that the school was not big enough. ‘We have grown tremendously in less than eight years. Thanks to the new Tahtimarssi extension, we have room for 350 more pupils, which means we can now accommodate almost a thousand children,’ Anne explains. A professional approach The school’s extension was awarded through a public tender, which Hoivatilat won with a care- fully considered proposal. ‘We were pleasantly surprised by how well all our wishes were listened to,’ Anne says, looking back on the collaboration with satisfaction. ‘Hoivatilat’s approach is very professional: there was a good flow of information and our opinion was always taken into account. The project was managed in an exemplary fashion and also fully met our objectives in terms of sustainability, envi- ronmental impact and energy efficiency,’ Anne adds. ‘The whole time, we felt that we were in expert hands and could almost blindly trust the smooth progress of the construction process.’ Flexible spaces for an innovative learning model The school principal takes us on a tour and shows us how the building has been specifically designed to meet the needs of the school’s lear - ning model. ‘The spaces in the new building are easily adaptable and suitable for teaching large groups as well as working in smaller teams.’ This spatial flexibility was a requirement. After all, Hiukkavaara does not work with traditional classrooms, but with open learning spaces or ‘nests’. These are flexible teaching and working spaces that can be easily transformed with mobile furniture. Elina Suikki, Project Manager at Hoivatilat, explains how the wishes of the school were taken into account in the design of the nests: ‘After receiving feedback, we created a communal learning hall. This hall is the centre of all the nest areas and can also be used as a flexible learning space.’ Meeting everyone’s needs ‘The extension is the right size, functional and meets our needs. We are also very happy with the large windows and sliding glass doors between the classrooms. The new building is so pleasant that some pupils have even said they would like to spend the night at school,’ Anne continues. She also praises the large entrances with storage space for shoes, the sizable gym and the fact that there are no unnecessarily long corridors in the building. Visually, the school is simply beautiful and the colour scheme is in harmony with nature. ‘The students, their supervisors and our staff are all over the moon about it.’ The tenant’s clear vision of the property’s functionality streamlined the design process. Our collaborative approach with public authorities and all other partners involved ensured a result we can all be proud of. Elina Suikki Project Manager at Hoivatilat AEDIFICA 8 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - A FLEXIBLE SCHOOL BUILDING, CUSTOM-MADE Clondalkin Lodge in Dublin (IE) • Investment: approx. €38 million • Completed in July 2023 • Care operator: Bartra Healthcare • Brand-new building blending seamlessly into its historic surroundings • Designed with a sharp focus on the wellbeing of residents • Futureproof: highly energy-eﬃ cient property with ‘A3’ Building Energy Rating (BER) home A place like ‘A resident, who had been staying temporarily because her house was being renovated, did not want to go back because she felt so at home here.’ AEDIFICA 9 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - A PLACE LIKE HOME Just below the iconic tower of the Church of the Immaculate Conception in the centre of Clon- dalkin, a suburb of Dublin, is the Clondalkin Lodge care home. The brand-new building for 150 residents has only just been completed. Aedifica invested in a care property that is not only energy- efficient and sustainable, but was also specifi- cally designed to promote the wellbeing of its residents. The result has been so successful that people who were only staying temporarily did not want to leave. We visit Clondalkin Lodge with Henry Roe, Pro - perty Manager for Aedifica’s portfolio in Ireland. He explains the unique history of the building: ‘The new building actually rests on the foundations of a former convent, which together with the church formed a single complex. So we are actually com- bining 18 th and 21 st century craftsmanship. It is wonderful to see how we can write a new chapter for and with the local community at this place with such a rich history.’ Despite its historic surroundings, the care home is state of the art. The building is highly compact and energy-efficient thanks to its thoroughly insulated envelope. In addition, investments were made in a combined heat and power system that reduces energy consumption. When we enter the care property and meet the people who live and work there, it quickly becomes clear that sustainability and comfort go hand in hand here. Cocooning under the church tower ‘I am a really unexciting, seeking the mud type of person, you know,’ is how 85-year-old ex-accoun- tant William Hankard describes himself. But Dairai Chirimumimba, the care home’s site manager, corrects him: ‘He is clever and sharp and a chatty companion.’ William has been retired for 19 years, but after three near-death experiences he is still very much alive. ‘With a bonus of over nine years compared to the average age, I have benefited greatly from my retirement plan,’ the evergreen accountant in him laughs. William is an expert when it comes to the quality of care homes. He has already lived in several, so he is in a good position to compare them: both the first and second care homes he lived in had safety issues that forced him to leave. That is how he ended up at Clondalkin Lodge. Everything here is new, he feels safe and is living a carefree life. He cannot even name one thing wrong with this building. Except maybe that his room is a bit too small for his writing hobby. William loves to spread countless sheets of paper out in his room, cut out and paste illustrations, have copies made and then bind his self-assem- bled books. This artisan writer and publisher pens reflections on the rosary for his fellow residents, inspired by Padre Pio. ‘I have no worries here. This is a wonderful place where I can cocoon and do my own thing. I love to meet friends in the cosy corner by the lounge, in the restaurant or in the salon, where I also enjoy watching TV.’ Minimum costs, maximum quality of life The care staff have also settled in well and are very happy with the clever layout of the care home. The building has spacious nursing stations, plenty of storage space and wide corridors for manoeuvring. In addition, each floor has its own distinct colour so that residents can easily find their way around. ‘Clondalkin is a wonderful place to work,’ says Dairai. ‘What’s more, our landlord is a reliable partner who is always available. That gives me peace of mind.’ Dairai emphasises that the technological applica- tions integrated into the building make life easier for the care providers: ‘There has been a lot of investment in technology and fortunately it has not resulted in systems that are difficult for our residents and staff to use.’ She also explains that the technology allows the operator to save costs. ‘It has been well thought out: minimum costs and maximum quality of life.’ For Dairai, the wellbeing of the residents remains a top priority, and she has an anecdote to share before we leave. ‘Catherine recently came to Clondalkin Lodge for a temporary stay because the building she was living in at the time was being renovated. However, she did not want to return after the reno - vation because she felt so at home here.’ I have no worries here. This is a wonderful place where I can cocoon and do my own thing. William Hankard Resident It is lovely to see how we can write a new chapter for and with the local community in this historic location. Henry Roe Property Manager AEDIFICA 10 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - A PLACE LIKE HOME This is Aediﬁ ca ‘We create added value for society by developing state-of-the art care properties that are tailored to the needs of their users and that improve their quality of life.’ AEDIFICAannual report 2024 - THIS IS AEDIFICA 11 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION For almost twenty years, Aediﬁ ca has been buil- ding futureproof healthcare real estate. In eight European countries, we develop and invest in sustainable and innovative care concepts that give people the space to be cared for in the way they prefer. Thanks to our successful strategy and expertise, our real estate portfolio has grown by an average of 21% annually to over €6.2 billion. In 2024, as a result of our continued focus on the execution of our investment programme and portfolio mana- gement, Aediﬁ ca once again achieved excellent results while at the same time maintaining a sound debt-to-assets ratio and keeping the cost of debt at a reasonable level. Aediﬁ ca’s ability to deliver these results demon- strates the resilience of the healthcare real estate sector, which will continue to need addi- tional capacity in the years to come due to the ageing European population. Thanks to improving operator performance and a more favorable macroeconomic environment in which short-term interest rates have started to decrease and inﬂ ation has fallen, market sen- timent is changing and Aediﬁ ca is in excellent shape to meet the momentum. PROFILE Housing with care Our slogan says it all. Aedifica is a Belgian listed company that specialises in providing innovative and sustainable real estate concepts for care operators and their residents throughout Europe, with a particular focus on housing for elderly people with care needs. Social sustainability is a fundamental driving force for us: we want to create added value for society by developing state-of-the art care properties that are tailored to the needs of their users and that improve their quality of life. We don’t just invest in property, we invest in society. We aim to offer our shareholders a reliable real estate investment with an attractive return based on the successful strategy we have developed over the past 19 years: combining a high-quality, diversified portfolio that generates recurring and indexed rental income with industry-leading long-term partners, an experienced team and a collaborative mindset. Aedifica is listed on Euronext Brussels (2006) and Euronext Amsterdam (2019). Since 2020, Aedifica has been part of the BEL 20, the leading share index of Euronext Brussels. The share is also part of the BEL ESG index, which tracks companies that perform best on ESG criteria. AEDIFICAannual report 2024 - THIS IS AEDIFICA - profile 12 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Pure-play healthcare REIT in Europe Solid underlying demographic trends > page 45 Public financing supporting our tenants Long-term growth potential 19 years weighted average lease term > page 40 Resilient portfolio valuation > page 84 Healthy balance sheet > page 78 Strong track record in investment, equity & debt financing Attractive dividend amply covered by operating cash flows > page 91 1 2 3 4 5 6 7 8 9 Why invest? 2005 • FOUNDING OF AEDIFICA 2012 • €100M RAISED ON CAPITAL MARKETS 2015 • €150M RAISED ON CAPITAL MARKETS 2017 • €220M RAISED ON CAPITAL MARKETS 2020 • FIRST INVESTMENT IN FINLAND & SWEDEN: PUBLIC BID ON HOIVATILAT OYJ • €710M RAISED ON CAPITAL MARKETS • ENTRY IN BEL20 SHARE INDEX 2022 • €310M RAISED ON CAPITAL MARKETS • LAUNCH OF NET ZERO GHG PATHWAY 2006 • LISTING ON EURONEXT BRUSSELS • FIRST INVESTMENTS IN HEALTHCARE REAL ESTATE 2013 • FIRST INVESTMENTS IN GERMANY 2016 • FIRST INVESTMENTS IN THE NETHERLANDS 2019 • FIRST INVESTMENTS IN THE UNITED KINGDOM • SECONDARY LISTING ON EURONEXT AMSTERDAM • €420M RAISED ON CAPITAL MARKETS • PURE-PLAY HEALTHCARE REIT: DIVESTMENT OF APARTMENTS & HOTELS 2021 • FIRST INVESTMENTS IN IRELAND & SPAIN • €330M RAISED ON CAPITAL MARKETS • €500M SUSTAINABILITY BOND 2023 • ENTRY IN BEL ESG INDEX • €410M RAISED ON CAPITAL MARKETS PORTFOLIO CROSSED THE €6 BILLION MARK 05 06 12 13 15 16 17 19 20 21 22 23 2024 RÉSIDENCE LE DOUAIRE CARE HOME IN ANDERLUES (BE) AEDIFICAannual report 2024 - THIS IS AEDIFICA - profile 13 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION With Aedifica’s solid results in mind, Serge Wibaut, Chairman of the Board of Directors, and Stefaan Gielens, Chief Executive Officer, reflect together on the 2024 financial year. In doing so, they are already looking ahead to what 2025 will bring. Beyond the €6bn mark thanks to pipeline execution SERGE WIBAUT: In 2024, our main focus was on implementing our ongoing investment programme and managing the portfolio. But let’s start with a fun fact: with a portfolio of €6.2 billion, we have reached a major milestone. Our 635 care properties now serve almost 50,000 residents and children. STEFAAN GIELENS: Indeed. Although we made a number of new investments – particularly in the UK – the increase in our portfolio was mainly due to the large number of completions from the investment programme. We delivered 31 pro- jects for a total amount of €297 million, reducing the investment programme to €160 million at year-end. As a result, the pipeline has been reset: all legacy projects announced in a different interest rate envi- ronment are now completed and contributing to rental income. This allows us to refill the pipeline with new projects at attractive yields. Strategic divestments SW: We also focused on asset management. As part of our strategic asset rotation programme, we sold fifteen properties for a total of €98 million. These divestments either optimise the composition and asset quality of our portfolio, or they generate capi- tal that can be recycled to finance new investment opportunities offering better returns. SG: Strategic divestments will continue in 2025. In February, we carried out the disposal of 22 properties in Sweden and announced the sale of the remaining portfolio of 6 (pre-)schools. We decided to divest this portfolio because its contribution to EPRA Earnings is limited compared to the other segments of the Group. The proceeds will be reinvested in the coming months and enhance earnings per share. DISCUSSING 2024 AND THE FUTURE Market sentiment is changing. With a strong balance sheet and a well- positioned portfolio, we are in excellent shape to respond. Stefaan Gielens Chief Executive Oﬃ cer AEDIFICAannual report 2024 - THIS IS AEDIFICA - discussing 2024 and the future 14 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION A healthy balance sheet SW: Speaking of financing new investments, the fact that we are well positioned to seize new opportunities is also due to our strong balance sheet. We have maintained a consolidated debt- to-assets ratio of around 41%, well below the 45% threshold set by Aedifica’s financial policy. SG: Moreover, the valuation of the portfolio on a like-for-like basis has been positive throughout 2024, confirming the resilience of healthcare real estate. SW: At 2.0%, we managed to keep the average cost of debt at a reasonable level thanks to the interest rate hedges we had in place – with a weighted average maturity of over 4 years – cove- ring nearly 90% of our financial debt. SG: In addition, we strengthened our financial resources by contracting €355 million in long- term bank (re)financing. With €673 million in headroom on committed credit lines at the end of 2024, we have ample resources to finance the execution of our investment programme and liquidity needs in 2025. S&P also confirmed our healthy balance sheet at the end of July by reaffirming its BBB investment-grade rating with a stable outlook. Solid results supporting an increasing dividend SW: Even while focusing on executing the invest- ment programme, fine-tuning the portfolio and maintaining a healthy balance sheet, we were able to post another solid set of results in 2024. SG: Rental income increased by 8% to €338 mil - lion, driven not only by additional income from completed projects, but also by rent indexation amounting to 3.1%. This resulted in €235 million in EPRA Earnings, up 7% year-on-year. SW: These excellent results allow us to propose a gross dividend of €3.90 per share to the General Meeting, keeping the pay-out ratio at a conser - vative level. Again benefiting from the reduced withholding tax of 15%, our shareholders have a net dividend yield of 6% at the end of 2024. SG: Moreover, we forecast EPRA Earnings to increase to €238 million in 2025, resulting in expected EPRA Earnings per share of €5.01. This will still allow us to increase the gross dividend for 2025 by 2.5% to €4.00 and still maintain a conservative pay-out ratio of approx. 80% of the consolidated EPRA Earnings. A new cycle is starting SW: With such excellent results and balance sheet, we have not only confirmed the resilience of healthcare real estate, but we are also armed for a new financial year that could offer interes - ting opportunities. There are clear signs that the healthcare real estate market is entering a new cycle. SG: Indeed, supported by rising occupancy rates and improving rent covers, healthcare operators are again in a position to think about growth and addressing the ageing of Europe’s population. SW: This is particularly relevant as this demo- graphic trend is expected to accelerate in the coming years as more people age, live longer and develop age-related conditions that require specific care. This will drive demand for additional capacity in the second half of the twenties. SG: We can conclude that, backed by impro- ving operator performance and a more favorable macroeconomic environment, market sentiment is changing. With a strong balance sheet and a well-positioned portfolio, we are in excellent shape to respond. All projects announced in a different interest rate environment are now completed and contributing to rental income. This allows us to refill the pipeline with new projects at attractive yields. Serge Wibaut Chair of the Board of Directors AEDIFICAannual report 2024 - THIS IS AEDIFICA - discussing 2024 and the future 15 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION United Kingdom 1 118 sites >7,600 residents 349,500 m² €1,279m fair value €36m in pipeline 22 years WAULT 6.4% gross yield Belgium 79 sites >8,200 residents 505,500 m² €1,255m fair value 19 years WAULT 5.7% gross yield Germany 99 sites >10,000 residents 567,900 m² €1,176m fair value €37m in pipeline 21 years WAULT 5.5% gross yield Finland 217 sites 4,000 residents & 12,300 children 299,800 m² €1,132m fair value €48m in pipeline 12 years WAULT 6.0% gross yield 1. Properties in the Channel Islands and Isle of Man are presented under the UK portfolio. 2. Fair value of marketable investment properties including assets classified as held for sale, rights of use related to plots of land held in ‘leasehold’ in accordance with IFRS 16 and land reserve. 3. Weighted average unexpired lease term. 4. Based on the fair value (re-assessed every three months). For healthcare real estate, gross yield and net yield are generally equal (‘triple net’ contracts) with operating charges, maintenance costs and rents on empty spaces related to the operations generally being supported by the operator in Belgium, the United Kingdom, Ireland, Spain and (often) the Netherlands. In Germany, Finland and Sweden (and the Netherlands, in some cases), the net yield is generally lower than the gross yield, with certain charges remaining the responsibility of the owner, such as the repair and maintenance of the roof, structure and facades of the building (‘double net’ contracts). AEDIFICA IN 2024 Netherlands 70 sites 3,200 residents 350,400 m² €673m fair value 15 years WAULT 6.1% gross yield Ireland 22 sites 2,300 residents 117,400 m² €425m fair value €16m in pipeline 23 years WAULT 5.6% gross yield Sweden 28 sites 160 residents & 1,100 children 24,000 m² €94m fair value 11 years WAULT 6.3% gross yield Spain 2 sites under construction 300 residents 15,500 m² €2m fair value €24m in pipeline 30 years WAULT Total portfolio 635 sites 35,900 residents 13,500 children 2,230,000 m² total surface 100% occupancy rate €6,122m fair value 2 €160m in pipeline 19 years WAULT 3 5.9% gross yield 4 AEDIFICAannual report 2024 - THIS IS AEDIFICA - Aedifica in 2024 16 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION KEY FIGURES Consolidated key figures & EPRA performance indicators 1 Property-related key figures 31/12/2024 31/12/2023 31/12/2022 Fair value of real estate portfolio (in € million) 2 6,218 5,849 5,704 Number of properties 635 617 622 Gross yield based on fair value (in %) 5.9% 5.8% 5.5% EPRA Net Initial Yield (NIY) (in %) 5.3% 5.3% 4.9% EPRA Topped-up NIY (in %) 5.5% 5.4% 5.1% Occupancy rate (in %) 100% 100% 100% EPRA Vacancy Rate (in %) 0.1% 0.1% 0.4% WAULT (in years) 19 19 19 Like-for-like rental growth (group currency, in %) 3.3% 5.2% 4.2% Financial key figures 31/12/2024 31/12/2023 31/12/2022 Rental income (in € million) 338.1 314.2 273.1 EPRA Earnings (in € million) 3 234.6 219.6 181.4 Net result (owners of the parent) (in € million) 204.8 24.5 331.8 EPRA Cost Ratio (including direct vacancy costs) (in %) 14.2% 15.4% 15.9% EPRA Cost Ratio (excluding direct vacancy costs) (in %) 14.1% 15.4% 15.9% Debt-to-assets ratio (in %) 41.3% 39.7% 43.6% Average cost of debt (in %) 1.9% 1.7% 1.3% Average cost of debt (incl. commitment fees, in %) 2.0% 1.9% 1.4% Weighted average maturity of drawn credit lines (in years) 3.8 4.4 4.7 Interest Cover Ratio (ICR) 4 6.2 5.9 7.5 Hedge ratio (in %) 89.0% 95.8% 88.7% 5 Weighted average maturity of hedging (in years) 4.4 5.1 6.6 Net debt/EBITDA 8.5 8.4 10.5 Key figures per share 31/12/2024 31/12/2023 31/12/2022 EPRA Earnings (in €/share) 4.93 5.02 4.76 Net result (owners of the parent) (in €/share) 4.31 0.56 8.71 EPRA NRV (in €/share) 6 86.46 84.17 91.74 Net asset value (in €/share) 6 76.61 75.20 82.37 Dividend (gross, in €/share) 3.90 3.80 3.70 €4.93/share EPRA Earnings €3.90/share proposed gross dividend * . Alternative Performance Measure (APM) in accordance with ESMA (European Securities and Market Authority) guidelines published on 5 October 2015. Aedifica has used Alternative Performance Measures in accordance with ESMA guidelines in its financial communication for many years. Some of these APMs are recommended by the European Public Real Estate Association (EPRA) and others have been defined by the in - dustry or by Aedifica in order to provide readers with a better understanding of the Company’s results and performance. The APMs used in this annual report are identified with an asterisk (). Performance measures defined by IFRS standards or by Law are not considered to be APMs, neither are those that are not based on the consolidated income statement or the balance sheet. The APMs are defined, annotated and connected with the most relevant line, total or subtotal of the financial statements, in Note 43 of the Consolidated Financial Statements. 1. See section ‘Summary of the consolidated financial state- ments’ on page 80 & following for more information on key figures stemming from the financial statements. 2. Including marketable investment properties, assets classified as held for sale, development projects, rights of use related to plots of land held in ‘leasehold’ in accordance with IFRS 16 and land reserve. 3. EPRA Earnings include a one-off tax refund of respectively €4.2 million in 2024 and €9.0 million in 2023 following the obtention of the Fiscal Investment Institutions (Fiscale Be- leggingsinstellingen, ‘FBI’) regime in the Netherlands (see page 82). Excluding one-off tax refunds, EPRA Earnings per share increased from €4.82 in 2023 to €4.85 in 2024. 4. Calculated based on the definition set out in the prospectus of Aedifica’s Sustainability Bond: the ratio of ‘operating result before result on portfolio’ (lines I to XV of the consolidated income statement) to ‘net interest charges’ (line XXI) on a 12-month rolling basis. 5. The 88.7% hedge ratio includes forward starting swaps starting at the beginning of January 2023. On 31 December 2022, the hedge ratio stood at 78.2%. 6. For financial years prior to 2024: before deduction of the dividend. AEDIFICAannual report 2024 - THIS IS AEDIFICA - key figures 17 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION HIGHLIGHTS Portfolio crosses €6 billion mark 31 projects completed totalling €297 million €188m in new investments & developments €100m in strategic divestments > pages 73-75 Pipeline reset The completion of projects reduced the invest- ment programme to €160 million. As a result, the pipeline has been reset: all projects announced in a different interest rate environment are now completed and contributing to rental income, allowing us to refill the pipeline with new projects at attractive yields. > page 43-44 A healthy balance sheet 41.3% debt-to-assets ratio BBB investment-grade credit rating with stable outlook reaffirmed by S&P €355 million in long-term (re)financing & ample headroom Financial resources were strengthened by contracting €355 million in long-term bank (re) financing. Headroom on committed credit lines stood at €673 million, providing ample resources to finance the execution of the investment pro- gramme and liquidity needs. > page 78 Solid results supporting an increasing dividend • +8% increase in rental income y/y (+3.3% LFL) • +7% increase in EPRA Earnings y/y • +3% increase in dividend y/y • 79% sustainable consolidated pay-out ratio > pages 80-85 A great workplace 131 employees 21.4 hours training per employee 92% of staff recommend Aedifica as a great place to work > pages 63-69 Excellent ESG performance Our CSR efforts are paying off, as evidenced by our excellent scores in various ESG assessments. In the GRESB, we achieved 75/100, highlighting Aedifica’s efforts to reduce its carbon emissions. While we maintained our excellent MSCI ‘A’ score, we further reduced our Sustainalytics Risk Rating from ‘Low’ (11.0) to ‘Negligible’ (9.3). > page 34 PRIESTY FIELDS - CARE HOME IN CONGLETON (UK) AEDIFICAannual report 2024 - THIS IS AEDIFICA - highlights 18 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA Profile Discussing 2024 and the future Aedifica in 2024 Key figures Highlights STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION value creation Strategy & ‘We do not just invest in properties, we want to create value for all our stakeholders.’ AEDIFICAannual report 2024 - STRATEGY & VALUE CREATION 19 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION As an investor and developer, Aediﬁ ca specia- lises in innovative and sustainable real estate that meets the needs of care operators and their clients across Europe, with a particular focus on housing for elderly people with high care needs. We do not just invest in properties, we want to create value for all stakeholders. • Through our buildings, we aim to improve the quality of life of their users and reduce their impact on the environment. • Our tailored real estate solutions help our tenants to succeed. • We make our people thrive by oﬀ ering them a healthy and inclusive workplace. • The rental income from our portfolio provides stable returns for investors. Thanks to our successful strategy over the past nineteen years, Aediﬁ ca has established itself as a market reference in listed healthcare real estate in Europe. And we are not ﬁ nished yet. AEDIFICAannual report 2024 - STRATEGY & VALUE CREATION 20 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Ageing population • Europe’s population is ageing, driving the need for specialised healthcare real estate. Urbanisation • Europe continues to urba- nise, creating demand for integrated healthcare real estate concepts with a variety of services. Consolidation • Private and public care providers are increasingly looking to private investors to fund their healthcare infrastructure as they expand or adapt their activities. Public funding • European governments continue to provide public funding to meet the healthcare needs of their populations. HOW WE CREATE VALUE STRATEGY RESOURCESTRENDS Portfolio • Well-located plots of land • Quality buildings • Pre-let development pipeline Partners • Operators • Developers • Communities Organisation • Diverse, motivated & collaborative team • Expertise & knowledge developed over 19 years • Transparent, ethical & sound governance Financial strenght • Strong balance sheet • Diverse sources of financing • Investment-grade credit rating with stable outlook • Easy access to capital markets Our purpose Providing sustainable & innovative healthcare properties that are tailored to the needs of their users and that improve their quality of life. Our focus Capitalising on demographic trends and long-term partnerships with operators, we focus on building a high- quality European health- care real estate portfolio and understanding the long-term care and hou- sing needs of an ageing population. Our activities • Acquiring & developing • Diversifying • Improving • Strengthening OUR PURPOSE OUR ACTIVITIES OUR FOCUS THE VALUE WE CREATE Futureproof care properties across Europe • By investing in sustainable and energy-eﬃ cient buildings, we contribute to a climate-neutral society. • The design and amenities of our care properties improve the quality of life of their users. • Addressing society’s changing concepts of living, our buildings create thriving communities focused on care. Strong partnerships with key stakeholders • Through our long-term partnerships with operators, suppliers and local authorities, we create a solid foundation to fulﬁ l our company’s purpose and drive continued growth, while helping our tenants succeed. Thriving work environment • We foster a healthy, diverse and inclusive environment in which our people can thrive and fulﬁ l their potential. Solid and stable returns for investisors • Our portfolio generates predictable long-term revenues, oﬀ ering attractive opportunities for current and future investors. 35,900 residents 13,500 children 635 properties >150 operator groups 19 years WAULT 131 employees Great Place to Work €338m rental income €3.90 gross dividend/ share To create sustainable value for our stakeholders and society at large, we buy, develop and manage healthcare real estate, drawing on resources such as our portfolio, our partnerships, our organisation and our financial strength. AEDIFICAannual report 2024 - STRATEGY & VALUE CREATION 21 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION STRATEGY Acquiring & developing • We invest in buildings that we lease to care providers. • We develop high-quality, sustainable real estate, either with our own local team in Finland or in cooperation with deve- lopers and operators in other countries. In-house development gives us the flexibility to deli- ver tailored real estate concepts with multiple (healthcare) services to meet the needs of our tenants and their clients. • We always pursue value accretive acquisitions and developments while paying constant atten- tion to ESG standards. Diversifying • By diversifying the buil- ding types within our portfolio and even com- bining different types of care within a single cam- pus, we cater in a flexible way to society’s changing needs. • Geographical diversi- fication avoids over- reliance on a specific care concept or single social security system and allows further diver- sification of our tenant base. • By diversifying our tenant base, we also diversify our income streams and reduce the risks associated with any one operator. Improving • We are committed to achieving net zero greenhouse gas emis- sions for our entire port- folio by 2050, and are working with our tenants to upgrade our existing buildings to minimise the ecological footprint and environmental risks, while reducing costs for our operators. • In addition to environ- mental upgrades, we are also optimising inter- nal comfort to improve the quality of life for the people who live and work in our buildings, making our portfolio truly futu- reproof. Strengthening • Building and stren- gthening relationships with our operators and communities is essen- tial to creating long- term sustainable value. It helps us to unders- tand their needs so that we can provide them with tailored real estate solutions to help them succeed, while increa- sing our earnings and creating value for society. • We empower our people to achieve our purpose by taking good care of them. We actively look after the health and well- being of our employees and invest in their perso- nal development through trainings. By providing a healthy place to work and an attractive remunera- tion package, we attract and retain the best talent in the industry. OUR ACTIVITIES OUR FOCUS Capitalising on demographic trends and long-term partnerships with operators, we focus on building a high-quality European healthcare real estate portfolio and understanding the long-term care and housing needs of an ageing population. OUR PURPOSE Providing sustainable & innovative healthcare properties that are tailored to the needs of their users and that improve their quality of life. OUR ACTIVITIES OUR FOCUS OUR PURPOSE AEDIFICAannual report 2024 - STRATEGY & VALUE CREATION 22 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ‘Corporate Social Responsibility is an integral part of our strategy.’ ‘Corporate Social Responsibility is an integral part of our strategy.’ Our approach to Corporate Social Responsibility AEDIFICAannual report 2024 - OUR APPROACH TO CSR 23 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Aediﬁ ca creates value for its stake- holders and the broader society in a sustainable way. Corporate Social Responsibility is therefore an integral part of our strategy. To structure and maximise our Cor- porate Social Responsibility eﬀ orts, we established a CSR framework based on a materiality assess- ment long before the Corporate Sustainability Reporting Directive (CSRD) was adopted. We paired a number of ambitious goals to that framework, in order to make targeted progress and communi- cate about it in an insightful way. Through these targets, Aediﬁ ca is also contributing to the United Nations Sustainable Development Goals (SDGs). While – based on the legislation at the time this Annual Report was prepared (i.e., prior to implementa- tion of the ﬁ rst Omnibus Package on sustainability of the European Commission) – Aediﬁ ca would only be subject to the CSRD as from the 2025 ﬁ nancial year (ﬁ rst reporting of sustainability statement in the annual report 2025 to be published in 2026), we have already comple- ted our double materiality assess- ment (see below). Our double materiality assessment was conducted in complete align- ment with the CSRD and the Eu- ropean Sustainability Reporting Standards (ESRS) and was reviewed by EY through a limited assurance review. We will review and update the double materiality assessment regularly and, in any case, when signiﬁ cant changes occur. We will closely monitor legislative developments regarding sustainabi- lity reporting and will determine our approach accordingly. Regardless of the reporting framework, we remain fully committed to our ESG strategy and will continue to communicate transparently about our sustainability efforts to our stakeholders. AEDIFICAannual report 2024 - OUR APPROACH TO CSR 24 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1. Value chain For Aedifica, the value chain is the comprehensive set of activities, resources and relationships that are integral to the Group’s business model and the external environment in which it operates. Aedifica’s value chain includes: • Standing assets: The value chain involves tenant management and property manage- ment. Tenant management involves attrac- ting and retaining tenants, negotiating leases, and ensuring tenant satisfaction. Under our leases, the day-to-day property management is generally the responsibility of the tenant. However, we also ensure the property mana- gement of our assets by monitoring our tenants’ compliance with (building) legislation, permits and maintenance and inspections obligations. These activities are crucial as they directly impact the revenue generated by the assets and the long-term quality of our assets; and • Development projects: This covers all the processes the Group employs and relies on to develop or renovate assets, from the initial conception of a project through to its develop- ment, management and eventual sale or lease. This includes market research, acquisition of land, design and planning, construction, mar- keting, leasing, property management, and, ultimately, asset disposal or redevelopment. Each of these stages adds value to the real estate assets, and the total value delivered to the stakeholders (investors, tenants, and com - munity) is the sum of these individual stages. In addition, Aedifica’s value chain also considers the end users who work and live in our properties and the communities in which the properties are located. End users, i.e. the residents living and staff working in our properties, are also a key part of the value chain. Their experience and satis- faction can influence the success of our tenants and, by extension, the performance of the assets. In conducting the double materiality assessment, we have considered the potential impact of our sustainability issues on our value chain in order to develop appropriate strategies to address them. This inclusive approach ensures that the interests and concerns of all parties involved in the Com- pany’s operations, from employees and residents of our properties, to investors, suppliers, and the communities in which we operate, are duly consi- dered and addressed. Our policies are also designed to cover all our stakeholders. These policies, such as the Code of Conduct, the Human Rights Policy, the Charter for Responsible Supplier Relations, the Anti-Bribery and Corruption Policy, the Speak Up Policy and the Privacy Policy (see latest versions available on our website), outline Aedifica’s commitments and responsibilities towards our stakeholders and provide a framework for how we intend to conduct our business in a sustainable and res- ponsible manner. We have implemented due diligence processes to identify, prevent, mitigate, and account for potential and actual adverse impacts on human rights, the environment, and governance. These processes include regular risk assessments, stakeholder consultations, and continuous enga- gement with our stakeholders to identify and align on shared expectations (see page 56-57 incorporating by reference ESRS 1 paragraph 61). KARTUIZERHOF CARE HOME IN LIERDE (BE) AEDIFICAannual report 2024 - OUR APPROACH TO CSR - value chain 25 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2. Double Materiality Assessment 1 Health/safety/wellbeing of the end user 1 Climate change mitigation (transition risks) 2 Energy 3 Climate change adaptation (physical risks) 1 Business ethics 1 Management of relationship with suppliers 2 Data/cyber security 3 Employee health/safety/ wellbeing 4 Resource use and circular economy 5 Training and development 6 Impact on local community 7 Lobbying 8 Water consumption 9 Biodiversity Diversity Financial materiality Impact materiality 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 1 1 7 8 9 2 5 10 3 6 4 1 2 3 1 Our Sustainability Statement is based on a double materiality approach, which – in line with CSRD/ ESRS – considers both Aedifica’s impact on the envi- ronment and society (inside-out perspective), and the influence of environmental and social topics on Aedifica’s performance (outside-in perspective). Through this process, material impacts, risks and opportunities are identified (IROs). • An ‘impact’ perspective (inside-out), i.e., the actual or potential, negative or positive impacts of Aedifica and its activities on the environment, the people it works with and the communities in which it ope- rates, over the short, medium or long term. It consi- ders the scale (how significant is the impact?), the scope (how widespread is the impact?), the reme- diability (how difficult is it to reverse the (negative) impact?), as well as the likelihood of the impact (how likely is the impact to occur?). • A ‘financial’ perspective (outside-in), i.e., the risks or opportunities that governance, environmental and social issues represent for Aedifica’s activities and value, over the short, medium or long term. It considers Aedifica’s dependence on its business relations and stakeholders (i.e., financial partners, tenants or suppliers), as well as the continuity of use of or access to resources that are essential for Aedifica to operate and grow (e.g., financial resources, raw materials, retention of key talent or development of stricter regulations). The materiality of risks and opportunities has been assessed based on the likelihood of occurrence (how likely is the impact to occur?) and the potential magnitude of the financial effects. The financial thresholds for the analysis were considered taking into account, and to a large extent aligned with, the financial impact scales used for Aedifica’s risk mapping. AEDIFICA 26 annual report 2024 - OUR APPROACH TO CSR - DMA CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION This two-fold materiality perspective required by the CSRD is the main difference with regard to our materiality matrix included in the annual report for the 2023 financial year, as assessed in 2021 (based on a peer review, interviews with internal and external stakeholders and an online survey). Our previous matrix combined the importance of the sustainability topics for our internal and exter- nal shareholders. Topics that were more related to Aedifica’s business strategy – such as ‘efficient operations by operators’, ‘operator satisfaction, service quality’ – are not explicitly included in the DMA as they are already embedded in the general business strategy. The topics ‘climate neutral portfolio’ and ‘climate change adaptation’ are still included in the DMA, but are now split into three different ESRS E1 topics ‘climate change mitigation’, ‘climate change adaptation’ and ‘energy’, as required by the ESRS. The topic ‘providing quality healthcare services for society’ is now covered under ESRS S4 ‘health, safety and wellbeing of the end-user’. The double materiality assessment was conduc - ted in four phases: 1. Purpose and scope • Based on a good understanding of the business context, we defined the purpose and scope of the assessment. This included mapping our value chain, the key affected stakeholders, and the activities performed throughout the value chain based on a stakeholder engagement pro- cess (as described on page 56-57 incorporating by reference ESRS 1 paragraph 61). 2. Longlist of sustainability topics • We defined a longlist of sustainability topics, starting from the ESRS topic list, and enriched it with sustainability topics that were mate- rial in the 2021 materiality assessment or that emerged from our desktop research. • This was further supplemented by conducting a contextual analysis, a sectoral analysis and a selection of applicable international standards that are relevant to the healthcare real estate and healthcare sector. • Key topics of sectors that represent Aedifica’s value chain were integrated in the analysis, including but not limited to construction mate- rials, and health, safety and wellbeing of the resident. 3. Short list and Identification of impacts, risks, and opportunities (IROs) • Together with specialists within the organisa- tion (who are in regular contact with the broader group of internal and external stakeholders – see page 56-57) and taking into account the position of our stakeholders, the longlist was brought back to a shortlist. During this pro- cess, internal and external documents were analysed (policies, CSR frameworks, strategy documents, sector reports, reports from peers, customer questionnaires, supplier informa- tion, analyst and rating reports, and investor questions). • For each of the sustainability topics on the shortlist, the different (potential) impacts, risks and opportunities over the short, medium and long term were identified in close collaboration with our group of internal specialists. Inter- nal exercises, e.g. CRREM, as well as external assessments, e.g. climate change risk assess - ment (S&P Global Climanomics), were used for the scoring. 4. Validation by Audit and Risk Committee • Each of the previous steps was regularly dis- cussed within the Sustainability Steering Com- mittee and also with an external advisor. These internal discussions served to supplement and critically evaluate the preliminary drafts of the materiality assessment, thereby ensuring a robust and comprehensive review process. • A detailed presentation and explanation of the double materiality assessment (methodology and results) was discussed with and validated by the Audit and Risk Committee. The Audit and Risk Committee also reported on this matter to the Board of Directors. The complete double materiality assessment (including the methodology applied, outcome, and explanations included in this chapter) was reviewed by the auditor through a limited assu- rance review (see page 236). AEDIFICA 27 annual report 2024 - OUR APPROACH TO CSR - DMA CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Results In total, fifteen topics were identified, of which five were identified as material to Aedifica in terms of their level of importance from both a financial and impact perspective. The most material topics are those with a high score in both the impact and the financial perspectives (a score of at least 7 on the impact materiality axis and at least 5 on the financial materiality axis in the matrix; located in the dotted red highlighted area in the materiality matrix). Our sustainability efforts in the coming years will primarily focus on these material topics. On the basis of this matrix, we have aligned our CSR framework and goals, assuming our responsibility and responding as much as possible to the issues of interest to the Group. The results of the double materiality assessment have also been directly integrated into the Group’s risk management approach and are also used to further shape and strengthen our resilience business strategy. However, the topics that are now considered less material remain relevant for Aedifica. This does not mean that we are not interested in these topics, or that we will not work or communicate on them. It just means that our efforts on these topics will have less impact on our organisation and environment. Moreover, the double materiality assessment is a dynamic exercise due to the evolving business context and environment in which we operate, and will be reviewed and updated regularly and, in any case, when significant changes occur. Disclosure requirements in ESRS covered by the double materiality assessment (ESRS 2 IRO-2) Cross-reference table between the ESRS. Pillar ESRS Topic Environment ESRS E1 Climate change Adaptation to climate change ESRS E1 Climate change Climate change mitigation ESRS E1 Climate change GHG emissions relating to the energy consumption of building operations and of construction Social ESRS S4 Consumers and end- users Health, safety and wellbeing of the end-user Governance ESRS G1 Business conduct Business ethics and corruption This section is a first attempt to align with CSRD requirements and is primarily intended to provide a synthetic and limited insight into each of the topics listed in the double materiality assessment. Beyond the information provided in this report, a range of sustainability-related documents, non-financial disclosures, and policies are readily available to the public. These resources can be found on our website and provide valuable insight into the Company’s sus- tainability efforts and non-financial performance. This initiative underlines our commitment to open communication with our stakeholders and our unwavering dedication to sustainable practices. AEDIFICA 28 annual report 2024 - OUR APPROACH TO CSR - DMA CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.1. Double materiality assessment: environmental topics Environmental topics stand out as the most mate- rial for Aedifica, as 4 separate topics out of the 8 environmental topics have been identified as material. They are all linked to Aedifica’s direct activities, all along its value chain. Therefore, the matrix directly points out Aedifica’s impact on the environment, and mostly on climate topics. The topics identified as presenting high risks or opportunities for Aedifica are GHG emissions relating to energy consumption of building opera- tions, GHG emissions relating to energy consump- tion of construction, climate change adaptation and climate change mitigation. 2.1.1. Most material environmental topics Adaptation to climate change (ESRS E1) For Aedifica, all categories of emissions, as well as the process of adapting to climate change, are considered material. Given the direct correla- tion to our core business operations, the double materiality assessment highlighted both significant financial considerations and material impacts. The potential ramifications are considerable as the ability to maintain an ambitious emissions reduc- tion trajectory while managing the physical risks associated with climate change is a key risk for the Group. Operating in multiple countries with assets housing vulnerable persons, necessitates Aedifica’s adaptation to the repercussions of cli- mate change. From an impact (environmental and social) pers - pective, the real estate sector plays a crucial role in the global effort to reduce greenhouse gas (GHG) emissions and adapt to climate change. Both the construction and operation of buildings account for a significant proportion of global GHG emissions. In addition, the built environment can contribute to the ‘urban heat island’ effect, which poses health risks, particularly for vulnerable populations such as the elderly. From a financial perspective, given the geogra- phical location of our assets, sectoral frameworks and international benchmarks, Aedifica (like other companies in the sector) is vulnerable to the phy - sical risks associated with climate change, such as extreme weather events and long-term shifts in cli- mate patterns. These can lead to property damage, increased insurance costs and potential devalua- tion of assets. In addition, there are transition risks associated with the shift towards a low-carbon economy, such as investment costs, policy and legal changes, technological advancements and changing market preferences, which can impact the profitability and viability of real estate invest- ments. Aedifica conducted in the context of its building assessment framework an adaptation analysis to identify the most vulnerable sites, which serves as a basis for further targeted action. Climate change mitigation (ESRS E1) Climate change mitigation is a crucial material topic for Aedifica due to its significant environmental and financial impacts. From an impact materiality pers- pective, our operations contribute to GHG emis- sions, which drive global warming and increase the risk of extreme weather events. These events can lead to the partial loss or reduced usability of our buildings, affecting our operations and the communities we serve. From a financial materiality standpoint, climate change presents several risks and opportunities. Transition risks, such as carbon pricing and policy changes, could lead to increased operational costs if our buildings do not meet future GHG emission standards. However, there are also opportunities to enhance the resilience and market attractive- ness of our buildings through sustainable design and energy-efficient installations. By proactively addressing climate change, we can mitigate risks, capitalise on opportunities, and strengthen our financial performance. GHG emissions relating to energy consumption of building operations and of construction (ESRS E1) Energy consumption is a material topic that signi- ficantly impacts our environmental footprint. From an impact materiality perspective, promo- ting sustainable practices and reducing energy demand can lower the environmental impact of our operations. Inefficient energy management or reliance on fossil fuels can lead to increased GHG emissions and contribute to climate change. Conversely, investing in energy-efficient techno - logies and green energy sources can reduce our environmental impact and enhance our reputation. Financially, energy costs represent a substantial portion of our operators’ operational expenses. Limited or expensive availability of energy can increase costs, affecting profitability and the rent payment capacity. However, by reducing energy consumption and investing in energy-efficient solu- tions, we can lower operational costs and improve financial performance. In addition, energy-efficient buildings are more attractive to tenants, potentially increasing occupancy rates and rental income and positively impacting the valuation of the asset. Aedifica is therefore strongly committed to working with its operators to enhance the energy efficiency of its assets, while at the same time helping them to shape and support their sustainability strategy. Addressing energy consumption is therefore cru- cial for both our environmental sustainability and financial success. 2.1.2. Environmental topics with limited materiality Water consumption (ESRS E3) Water management is a component of our sus- tainability strategy, including efforts to enhance water efficiency in use, raise awareness, and equip buildings with water-efficient devices. However, it has been identified as less material to Aedifica from both a financial and impact materia- lity perspective. The assets of the Group’s portfolio are not considered to be significant consumers of water, as consumption is mostly determined by the number of residents. Furthermore, except for our corporate offices, we do not have direct control over the water consumption of our assets. This means that while water management is a part of Aedifica’s sustainability strategy, it is not considered as significant or influential as other factors in terms of its financial implications or the magnitude of its impact. (Hazardous) waste management (ESRS E5) Waste management has been identified as less material for Aedifica from both a financial and impact materiality perspective. With the exception of our corporate offices, we have no direct impact on waste management in our assets. However, waste management is a component of our sustainability strategy. Our efforts are focused on raising aware - ness to reduce the volume of waste generated and improving the way it is sorted and recycled. Consumption of raw materials (ESRS E5) Development projects require significant amounts of raw materials for construction. The type and quantity of materials used can have an impact on the environment, both in terms of resource deple- tion and the carbon footprint associated with the production and transport of materials. From an environmental perspective, the extraction and processing of raw materials can lead to habitat destruction, loss of biodiversity, soil erosion and pollution of water resources. From a social pers- pective, the extraction of raw materials can have a significant impact on local communities. It can lead to displacement of people, loss of livelihoods, and social conflict. Furthermore, poor working condi- tions in the extraction and processing industries can lead to health and safety issues for workers. Any increase in the price of these materials can also impact the viability of new development or extension projects, although the adoption of cir- cular economy practices could potentially reduce material consumption while maintaining growth and wealth creation, thereby reducing costs. While we recognise the substantial consequences the consumption of raw materials can have, it is not currently considered a material topic for Aedifica. Although the management of standing assets regularly consumes raw materials (regular mainte- nance, renovations, and upgrades all require multi- ple types of resources) and the choice of materials can affect the energy efficiency, longevity and overall environmental impact of the building, at this stage the difference Aedifica can make for the environment is nevertheless less significant than compared to other topics. Biodiversity (ESRS E4) Biodiversity considerations are important in the context of development projects. Given the limited number of committed development projects, bio- diversity is today from both a financial and impact materiality perspective less material for Aedifica. Of course, biodiversity considerations also play a role in the management of standing assets, albeit to a much lesser extent. In the operation of standing assets, biodiversity is often less material because these assets are already built and their impact on biodiversity is largely determined. Buildings and their landscaping are part of the living environment for urban species and therefore have a potential impact on biodiversity. With upcoming regulatory requirements and a growing demand from citizens (including our residents) for a better living environ- ment, biodiversity is evidently considered in the management of standing assets. AEDIFICA 29 annual report 2024 - OUR APPROACH TO CSR - DMA CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.2. Double materiality assessment: social topics Out of the five social topics discussed covering the social-focused ESRS, one was recognised as material for Aedifica. The matrix shows that the health, safety and wellbeing of the end user is considered material from a financial perspective. 2.2.1. Most material social topics Health/safety/wellbeing of the end user (ESRS S4) Our end users are the people who live and work in our properties. The sustainability topic ‘health, safety and well - being of the end user’ is considered material from a financial perspective. Although the day-to-day- maintenance of our properties and care for the residents is the responsibility of our operators and Aedifica has no direct relation with the residents and staff in the care homes, the health, safety and wellbeing of the residents and staff will impact the performance of our assets and therefore the rent payment capacity of our operators. In addition, issues or the perception around mat - ters in this area will also directly negatively impact our reputation and attractiveness for investors and ultimately make access to capital more difficult. However, our concern goes beyond our reputa - tion. Taking care of the residents of our properties is at the heart of our company’s mission and we have mechanisms in place to monitor this to the maximum extent possible (see page 58). 2.2.2. Social topics with limited materiality Employee health, safety and wellbeing (ESRS S1) Given the nature of our operations, which involves a limited workforce in office settings, Aedifica is not significantly exposed to health and safety risks in its offices. While health and safety, well - being and security are important aspects of any workplace and proactive management of these issues is necessary, their materiality in our ope - rations, particularly from both an impact and financial materiality perspective, is relatively low. The potential risks associated with these areas are unlikely to have substantial implications for Aedifica’s reputation among stakeholders or its legal compliance. Diversity, equity and inclusion (ESRS S1) Although diversity, equity and inclusion (DEI) is a core value at Aedifica and a cornerstone for our HR management, it has been identified as less material for Aedifica from both a financial and impact materiality perspective. This suggests that although DEI is embedded in our strategy, it is not considered as influential or significant as other factors in terms of its financial implications or the extent of its impact. This is due to a number of fac- tors including the nature of Aedifica’s operations, the relatively small number of Aedifica employees and the strong regulatory framework of the coun- tries in which Aedifica operates. Despite its com- paratively more limited materiality, DEI remains a crucial part of Aedifica’s commitment to fostering a better workplace, as the value of DEI lies in its potential to improve the work environment, pro - mote a culture of respect and acceptance, and ultimately contribute to employee wellbeing and talent retention (see page 65 & following). Training and development for employees (ESRS S1) Aedifica places significant importance on the training and development of its employees. Reco- gnising the value of robust training programmes and continuous learning, we understand the role it plays in maintaining a competitive edge, fostering innovation and ensuring employee satisfaction. Aedifica places a high emphasis on talent reten- tion, providing career development opportunities and promoting employee wellbeing (see pages 68-69). These initiatives not only contribute to a positive work environment, but also help to attract and retain top talent. From a risk pers- pective, inadequate or ineffective training could potentially lead to performance issues, reduced employee satisfaction and a loss of competi- tive advantage. Therefore, while the (impact and financial) materiality of this aspect might be lower when viewed from a broader perspective, the potential risks associated still underscore its importance. Impact on local community (ESRS S1) The sustainability topic ‘impact on local com- munity’ has been identified as less material for Aedifica from both a financial and impact mate- riality perspective. This assessment is based on the nature of our investments, which are designed to integrate seamlessly into existing communities and provide essential services without causing significant disruption. Our projects are typically located in areas with established infrastructure and are developed in close consultation with local stakeholders (including local authorities) to ensure alignment with community needs. We also adhere to stringent regulatory require - ments and monitor compliance of these require- ments by our tenants. AEDIFICA 30 annual report 2024 - OUR APPROACH TO CSR - DMA CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.3. Double materiality assessment: governance topics One out of four governance topics was identified as material. 2.3.1. Most material governance topics Business ethics and corruption (ESRS G1) In the context of business ethics, corruption is a topic of substantial materiality for Aedifica from a financial perspective, reflecting the broader real estate sector’s vulnerability to bribery, cor- ruption, and anti-competitive practices. These risks arise from several factors, including Aedifica being active in more than 8 jurisdictions, its local presence through its country teams, the need to manage multiple local agents and subcontrac- tors, the complexity of project financing and pro- ject permitting, the size of the contracts involved in the construction of large projects and the competitive process often required to secure contracts with private and public entities. It has the potential to affect Aedifica’s reputation and financial performance and could result in legal penalties, financial losses and damage to Aedifica’s reputation. Moreover, business ethics are crucial to maintai - ning a fair and respectful workplace and a healthy relationship with suppliers. Ethical misconduct can also lead to a problematic work environ- ment, affecting employee morale, productivity and talent retention, and could not only damage our reputation with suppliers but also, conversely, lead to us being drawn into the abusive business practices of suppliers, exposing us to significant reputational and financial risks. 2.3.2. Governance topics with limited materiality Management of relationship with suppliers (ESRS G1) Management of supplier relations falls into two parts: (i) Aedifica values its suppliers and places great importance on treating them fairly, (ii) Aedifica expects its suppliers to act responsibly and uphold high standards of conduct, and monitors in that context the ongoing relationship with its suppliers. In addition, in order to ensure the smooth exe- cution of its construction projects, Aedifica also attaches great importance to monitoring the risk of insolvency of its suppliers in the context of construction projects. Although each of the above matters is an essential part of Aedifica’s operational strategy and part of its broader compliance programme, they are nevertheless less material to us, both from an impact and financial perspective. All the countries in which we operate have strict regulations (social, tax, health and safety, etc.) and our value chain is relatively limited. Moreover, suppliers are only selected on the basis of our internal procurement policy, which includes supplier screening. Finally, the existing pipeline of development projects has currently become relatively small. Political engagement and lobbying activities (ESRS G1) While we acknowledge that lobbying can have its merits in proactively managing legislative deve- lopments and maximising our positive impact on society by sharing our expertise and insights with government as one of the market leaders in healthcare real estate, political engagement and lobbying activities are not considered mate- rial sustainability topics for Aedifica. This is due to the stringent regulations on bribery (and to a lesser extent also lobbying) in all countries where we operate, and the fact that we engage in lob- bying exclusively through sector associations, which further mitigates any potential risks asso- ciated with direct political influence. Finally, our anti-bribery policy strictly prohibits making poli - tical contributions, reinforcing our commitment to ethical business practices and minimising any undue influence on political processes. Data privacy and cybersecurity (ESRS S4) As Aedifica is a real estate company that does not have access to the personal data of the residents of our tenants living in our assets, its exposure to data privacy and cybersecurity risks is compara - tively low. However, Aedifica processes certain personal data on a limited scale and adheres in that respect to the GDPR and local legislation. In particular, Aedifica manages (personal) data of its employees, (registered) shareholders and tenants (in the context of its AML procedures). Therefore, it is also crucial for Aedifica to have robust privacy and cybersecurity measures in place to protect this data and comply with relevant regulations. Moreover, cybersecurity remains essential to ensure the integrity of our digital infrastructure and prevent disruptions to our operations. A cybersecurity breach could lead to operational downtime, financial losses and damage to Aedi- fica’s reputation. However, given that this would not impact our tenants and their operations, and thus the performance of our assets, the materiality of this topic is rather limited. HELSINKI KÄRÄJÄTUVANTIE - CHILDCARE CENTRE IN HELSINKI (FI) AEDIFICA 31 annual report 2024 - OUR APPROACH TO CSR - DMA CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 3. Our CSR framework Following our 2024 double materiality assess- ment, we have aligned our CSR framework to enable us to work towards our Company’s purpose and address our key CSR topics. Our CSR framework helps us to embed sustaina- bility in everything we do and focus on the issues where we can have the greatest impact. Our Corporate Social Responsibility Framework is focused on three main areas: reducing our environmental footprint, strengthening our stakeholder relationships and continuing to be an attractive organisation in which our people can thrive. Portfolio Reducing our enviromental impact, operational costs and risks • Measuring and reducing environmental impact • Minimising risks (safety, technical, materials, etc.) • Complying with (future) building regulations • Optimising internal comfort • Stimulating eco-efficient investments by operators and/or third parties • Meeting the needs of future senior housing Partners Strengthening our relationships within the healthcare real estate sector • Optimising relationships with operators • Sharing knowledge in the healthcare sector concerning sustainable real estate • Connecting with our communities and better understanding the needs of resident and operators Organisation Making our people thrive • Investing in the training and development of our team • Running a robust health & wellbeing programme • Remaining attractive to the industry’s top talent • Providing a healty work environment for a diverse workforce • Meeting fudamental ethical standards • Having governance policies and procedures in place AEDIFICA 32 annual report 2024 - OUR APPROACH TO CSR - our CSR framework CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 4. Our CSR goals Following the double materiality assessment, we have aligned our action plan and committed ourselves to ambitious CSR goals. These goals allow us to focus our efforts on reducing our envi- ronmental impact and to work with key stakehol- ders (such as employees, shareholders, residents, etc.) to achieve these goals while maintaining responsible business practices. In the Business Review chapters, you can track how far we have progressed in achieving these objectives. Goals Actions taken in 2024 Status Page PORTFOLIO Achieving net zero emissions for our real estate portfolio by 2050 Portfolio evaluation using CRREM and interim target set for 2030 (targets were set for country management and the Executive Committee). on track Applying Building Assessment (BA) strategy to 100% of our properties in operation by 2025 Ongoing. A group-wide platform was imple- mented to support compliance assessment. on track Conducting a climate change risk assessment Climate change risk assessment for physical and transition risks conducted and integrated in the annual strategic asset review. 48 PARTNERS Increasing the response rate of operators participating in engagement survey Operator engagement survey conducted in 2023, with next survey planned for 2025. 58 Implementing a green awareness programme for tenants The green lease annex was added to both newly signed and several existing leases. ongoing 59 Organising Operator Days in each region every three years Operator Days organised in Belgium and the Netherlands. ongoing 58 Organising annual Community Days for employees Community Days organised in Belgium & Finland. 26 employees performed over 100 hours of com- munity support. 60 ORGANISATION Rolling out Aedifica Academy in all regions Aedifica Academy was launched for all teams. Over 2,800 hours of training were offered to employees. 68 Organising an annual employee satisfaction survey With a participation rate of 94% and a Trust Index Score of 85%, 9 out of 10 employees recommend Aedifica as a Great Place to Work. 66 Mandatory annual ethics training for employees 100% of employees have received ethics training. 68 & 70 Implementing a health & wellbeing pro- gramme for employees Initiatives to improve communication, social cohe- sion and employee engagement. ongoing 130 kWh/m² net energy use intensity (nEUI) target for 2030 Non-financial reporting Aedifica is not subject to the Non-Financial Reporting Directive and is not currently sub- ject to the Corporate Sustainability Repor- ting Directive (CSRD) or EU Taxonomy. For several years, however, Aedifica has already conceived its Annual Financial Report as a report that not only includes financial infor- mation, but also non-financial information. This Annual Report incorporates a large amount of CSR-related information. Simi- lar to last year, Aedifica will therefore not publish a separate CSR report, but only an Environmental Data Report in June 2025 providing an update of our environmental performance, including KPIs. AEDIFICA 33 annual report 2024 - OUR APPROACH TO CSR - our CSR goals CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 5. SDGs & UN Global Compact The United Nations Sustainable Development Goals are considered a blueprint for a better and more sustainable future for us all. Covering a wide range of sustainable issues such as poverty, health, education, climate change and environ- mental degradation, the SDGs are a call to action for governments, organisations and civil society. At Aedifica, we use the SDGs as an overarching framework to shape our CSR strategy, focusing our efforts on four aspects to which we can make a meaningful contribution. AEDIFICA’s contribution 5. Gender equality Aedifica strives for equal opportunities for employees at all levels of our organisation. We monitor employee engagement and training opportunities and conduct an annual gender pay gap analysis to reduce inequalities. Within our supply chain and in our interactions with other stakeholders, we aim to promote diversity and equal opportunities. 7. Affordable and clean energy Investing in energy efficiency is critical to achie- ving our greenhouse gas reduction target. That is why we invest in advanced technologies that reduce energy consumption, on-site renewable energy generation such as solar, and benchmark the energy intensities of our entire portfolio to identify opportunities and raise operators’ aware- ness of their relative inefficiencies. 12. Responsible consumption and production We will introduce a material passport for each (re)development and renovation project to better manage the natural resources used in construc- tion. This material passport will provide detailed information on the materials used, helping us to understand our consumption patterns and to pro- mote responsible consumption and production. We will raise awareness among our tenants to significantly reduce waste production in their ope- rations and increase recycling wherever possible. 13. Climate action We have developed a building assessment framework that includes a climate change risk assessment to better understand the impact of climate change on our organisation and our ope- rators. We will work with local authorities to create resilient communities. Our net zero GHG pathway lays the foundation for minimising our greenhouse gas emissions each year, pursuing the ultimate goal of net zero GHG emissions by 2050. UN Global Compact In addition to its public commitment to the SDGs, Aedifica has endorsed the UN Global Compact, the UN corporate social responsibility initiative, and its principles in the areas of human rights, labour, envi- ronment and anti-corruption. 6. Excellent ESG ratings Aedifica has participated in ESG assessments by independent rating agencies to benchmark and improve its efforts and communication on sus- tainability, and check its resilience to long-term and ESG risks. These assessments were conduc- ted within the framework of EPRA Sustainability Reporting and the Global Real Estate Sustaina- bility Benchmark (GRESB). Other rating agencies also publish reports on Aedifica’s sustainability performance, such as Sustainalytics and MSCI. The ratings awarded to Aedifica in 2024 once again demonstrate that our CSR approach is on the right track. In the GRESB 1 , we achieved 75/100 for the reference year 2023, highlighting the Group’s efforts to reduce its carbon emissions. Among its direct peers, Aedifica achieved the best score, while in the ‘Healthcare Listed’ segment it ranked fourth. While Aedifica maintained its excellent MSCI ‘A’ score, the Group further reduced its Sustainalytics Risk Rating from ‘Low’ (11.0) to ‘Negligible’ (9.3). In addition, Aedifica’s reporting on its efforts in the field of corporate social responsibility in 2023 (published in the Annual Report of April 2024 and the Environmental Data Report of June 2024) was awarded a 5 th consecutive ‘EPRA sBPR Gold Award’. 2024 2023 2022 2021 2020 2019 EPRA sBPR Gold Gold Gold Gold Gold Silver + Most Improved GRESB 75 ** 75 ** 68 ** 66 ** 57 – Sustainalytics Risk Rating Negligible (9.3) Low (11.1) Low (11.1) Low (11.9) Low (17.8) – MSCI A A A BBB BB BB A MSCI score 1. GRESB (Global Real Estate Sustainability Benchmark) is an independent real estate benchmark that assesses the sustainability policy of real estate companies. AEDIFICA 34 annual report 2024 - OUR APPROACH TO CSR - SDGs & UN global compact CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR Value chain DMA Our CSR framework Our CSR goals SDGs & UN global compact BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ‘The new meeting space we opened in Emmaheerdt contributes greatly to the wellbeing of the elderly people living here.’ Business Review ‘The new meeting space we opened in Emmaheerdt contributes greatly to the wellbeing of the elderly people living here.’ Business Business Review AEDIFICAannual report 2024 - BUSINESS REVIEW 35 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION In 2020, an old school building in Winschoten was thoroughly renovated into a modern care campus. The site includes a care home, assisted living ﬂ ats and a health centre with a medical practice, physio- therapy, etc. In summer 2024, a brand new multifunctional mee- ting space was opened in Emmaheerdt. Led by a hos- tess and using a mobile app, various social activities are organised for residents. In time, people living in the neighbourhood will also be able to join in. Thanks to the meeting space, we contribute to stren- gthening the local community and the wellbeing of the elderly people living there. ‘Being able to meet each other keeps people vital and healthy for a longer time. It combats loneliness, keeps people independent for longer and thus ensures a better quality of life. That is an obvious bonus we want to oﬀ er with this concept,’ explains Marloes Kampinga, Asset Manager in the Dutch Aediﬁ ca team. Emmaheerdt care campus in Winschoten (Netherlands) • Investment: approx. €16 million • Renovation completed in December 2020 • Meeting space opened in Summer 2024 Portfolio pages 37 > 54 Partners pages 55 > 62 Organisation pages 63 > 71 Financial review pages 72 > 92 AEDIFICAannual report 2024 - BUSINESS REVIEW 36 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION PORTFOLIO Our property types Elderly care homes Elderly care homes provide long-term accom- modation for seniors who continuously rely on collective domestic services, help with daily tasks and nursing or paramedical care. Senior housing Senior housing is designed for elderly people who want to live independently with access to care and services on demand. These care pro- perties consist of individual housing units where the elderly live independently, with communal service facilities available on an optional basis. Childcare centres In northern Europe, we also invest in childcare centres, either as stand-alone centres or in combination with other care or school facilities. These nurseries (‘pre-school’) provide day care for children aged 0 to 6. Mixed-use elderly care buildings Mixed-use elderly care buildings combine in one building – or in several buildings on one site – housing units for both seniors requiring continuous care and seniors who want to live independently with care services available on demand. We are also investing in care campuses that combine elderly care with other comple- mentary care functions such as day-care centres, medical centres, medical practices, childcare centres, housing for people with a disability, etc. Other care buildings The other care buildings in our portfolio accom- modate various care activities (some com- bined with housing) and various target groups (regardless of age) with high or specific perma- nent or temporary care needs due to disability, illness or other circumstances such as domestic violence, addiction therapy, emergency childcare, special education, etc. HELSINKI KUTOMOKUJA - CHILDCARE CENTRE IN HELSINKI (FI) HEERENHAGE - SENIOR HOUSING IN HEERENHAGE (NL) PRIESTY FIELDS - CARE HOME IN CONGLETON (UK) AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 37 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1. Our portfolio 1.1 Our portfolio as at 31 December 2024 Overview of fair value, contractual rents and gross yields by country 1 # Sites Total surface (m²) # Residents # Children Fair value of marketable investment properties 2 Contractual rent Estimated rental value (ERV) Gross yield 3 Belgium 79 505,484 8,238 - €1,254,965,913 €71,718,969 €67,918,897 5.7% Germany 99 567,852 10,050 - €1,176,156,000 €64,225,193 €64,919,203 5.5% Netherlands 70 350,375 3,217 - €673,240,000 €41,173,107 €41,956,394 6.1% United Kingdom 118 349,503 7,625 - £1,058,088,652 €1,278,890,592 £67,611,719 €81,720,933 £68,996,946 €83,395,228 6.4% Finland 217 299,771 3,982 12,327 €1,131,710,000 €68,279,297 €67,023,708 6.0% Sweden 28 23,973 164 1,130 SEK 1,073,000,000 €93,640,710 SEK 68,040,675 €5,937,910 SEK 65,691,572 €5,732,903 6.3% Ireland 22 117,368 2,306 - €424,759,552 €23,900,300 €23,244,100 5.6% Spain 2 15,478 320 - €2,122,021 €124,261 €124,261 - Right of use related to plots of land held in ‘leasehold’ €74,010,932 Land reserve €12,966,674 Total 635 2,229,804 35,902 13,457 €6,122,462,395 €357,079,969 €354,314,695 5.9% > For a detailed overview of the portfolio at asset level, see ‘Summary of investment properties’ in the chapter ‘Additional information’. > pages 207-224 635 care properties 2,230,000 m² 35,900 residents 13,500 children 5.9% average gross yield 1. Amounts in GBP and SEK were converted into EUR based on the exchange rate of 31 December 2024 (0.82735 EUR/GBP and 11.45817 EUR/SEK). 2. Including assets classified as held for sale. 3. Based on the fair value (re-assessed every three months). For healthcare real estate, the gross yield and the net yield are generally equal (‘triple net’ contracts) with the operating charges, the maintenance costs and the rents on empty spaces related to the operations generally being supported by the operator in Belgium, the United Kingdom, Ireland, Spain and (often) the Netherlands. In Germany, Finland and Sweden (and the Netherlands, in some cases), the net yield is generally lower than the gross yield, with certain charges remaining the responsibility of the owner, such as the repair and maintenance of the roof, structure and facades of the building (‘double net’ contracts). AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 38 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION INVESTMENT PROPERTIES IN FAIR VALUE (IN € MILLION) GEOGRAPHICAL BREAKDOWN IN FAIR VALUE BREAKDOWN BY FACILITY TYPE IN FAIR VALUE (%) AGE OF BUILDINGS IN M² UNEXPIRED LEASE TERM (%) Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 21% compound annual gowth rate 68% Elderly care homes 15% Mixed-use elderly 8% Other care buildings care buildings 6% Childcare centres 3% Senior housing 26% ≤5 years 20% 6-10 years 15% 11-15 years 38% >15 years 1% Project 71% ≥15 years 16% 10-15 years 11% 5-10 years 2% <5 years 198 302 356 360 453 566 619 728 971 1,065 1,456 1,661 1,964 2,636 3,815 4,896 5,704 5,849 6,218 0% Spain 7% Ireland 2% Sweden 19% Finland 21% United Kingdom 11% Netherlands 19% Germany 21% Belgium June June June June June June June Dec Dec Dec Dec Dec 100 80 60 40 20 0 13 14 15 16 17 18 19 20 21 22 23 24 AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 39 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION WEIGHTED AVERAGE UNEXPIRED LEASE TERM BY COUNTRY (IN YEARS) 25 20 15 10 5 0 15 22 12 11 23 average 21 19 Belgium Germany Netherlands United Kingdom Finland Sweden Ireland 19 years WAU LT 100% overall occupancy rate Insured value The investment properties are insured by Aedifica for a total value of €6,587 million. Breakdown by building (in fair value) None of the buildings in Aedifica’s portfolio represents more than 3% of total consolidated assets. Operator occupancy rates steadily rising Demonstrating the resilience of the sector, care home operators across Europe are seeing their occupancy rates rise again following the COVID-19 pandemic, returning to or already exceeding pre-pandemic levels. Operator occu- pancy rates for stabilised assets are around 90% and showing an increasing trend. For the regions for which the Group was able to collect a majority of actual data, the table on the right lists the occupancy rates of operators as at 30 September 2024, as well as their like- for-like growth (expressed in base points). Only ‘stabilised’ assets 1 are considered in the table. Operator occupancy rate 30/09/2024 Y/Y growth (in base points) on a like- for-like basis Data coverage 2 Belgium 93% +53 90% Germany 86% +373 87% Netherlands 86% +93 79% United Kingdom 92% +233 100% Ireland 94% +331 100% 1. Assets are considered ‘stabilised’ and included in the scope once they have been operating for at least two years. Assets are excluded from the scope if they are (partially) vacant for renovation works. 2. Based on the contractual rent of stabilised assets as at 30 September 2024. BREAKDOWN OF EPC LEVELS (% OF TOTAL M²) BREAKDOWN OF CONTRACTUAL RENTS BY TENANT SECTOR (%) BREAKDOWN OF CONTRACTUAL RENTS BY TENANT GROUP (%) 30% Label A 33% Label B 18% Label C 11% Label D or lower 5% No label 3% Projects under (re)development 9% Clariane 6% Colisée 5% Maria Mallaband 4% Municipalities/ Wellbeing counties (FI) 4% Vulpia 4% Azurit Rohr 4% Bondcare 4% Emera 3% Specht Gruppe 3% Attendo 54% Other 90% Private 6% Non-profit 4% Public AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 40 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION BREAKDOWN OF CONTRACTUAL RENTS BY TENANT GROUP Tenant group Number of sites 31/12/2024 31/12/2023 United Kingdom 118 23% 20% Maria Mallaband 18 5% 4% Bondcare Group 21 4% 3% North Bay Group 21 3% 3% Emera 1 8 2% 1% Care UK 12 1% 2% Oyster Care Homes 4 1% - Anchor Hanover Group 5 1% 1% Renaissance 9 1% 1% Danforth Care 3 1% 1% Excelcare 3 1% 1% Caring Homes 4 1% 1% Other <0.5% 10 2% 2% Belgium 79 20% 24% Armonea 2 21 6% 7% Korian Belgium 3 25 6% 7% Vulpia 15 4% 4% Apricusa 4 3 1% 1% Emeis 5 4 1% 1% Vivalto Home 6 1 0% 0% Emera 1 1 0% 0% Other <0.5% 9 2% 2% Finland 217 19% 18% Municipalities/ Wellbeing counties 36 4% 4% Attendo 7 31 3% 3% Mehiläinen 19 2% 2% Norlandia 8 16 1% 1% Touhula 22 1% 1% Pilke 22 1% 1% Esperi 6 1% 1% Kristillinen koulu 2 0% 1% Ikifit 4 0% 0% Other <0.5% 59 5% 4% Germany 99 18% 19% Azurit Rohr 23 4% 5% Residenz Management 9 15 3% 3% Vitanas 11 2% 3% Specht & Tegeler 6 1% 1% Tenant group Number of sites 31/12/2024 31/12/2023 Emeis 5 5 1% 1% Argentum 7 1% 1% EMVIA 4 1% 1% Alloheim 5 1% 1% Cosiq 3 1% 1% Korian Germany 3 1 0% 0% Specht Gruppe 9 2 0% 0% Other <0.5% 17 3% 3% Netherlands 70 11% 12% Korian Netherlands 3 22 3% 3% Vitalis 3 1% 1% Martha Flora 10 1% 1% NNCZ 5 1% 1% Compartijn 5 6 1% 1% Stichting Oosterlengte 3 1% 1% Saamborgh 2 0% 0% Stichting Rendant 1 0% 0% Stichting Fundis 2 0% 0% Wonen bij September 5 1 0% 0% Other 15 2% 3% Ireland 22 7% 7% Bartra Healthcare 4 2% 3% Virtue 1 8 2% 2% Silver Stream Healthcare 3 1% 1% Mowlam Healthcare 3 1% 1% Coolmine Caring Services 3 1% 1% Grace Healthcare 6 1 0% 0% Sweden 28 2% 1% Raoul Wallenbergskolan 1 0% - Attendo 7, 10 5 0% 0% Ambea 4 0% 0% Kunskapsförskolan 2 0% 0% Humana 3 0% 0% Norlandia 8 1 0% 0% Other 12 1% 0% Spain 2 0% 0% Neurocare Home 2 0% 0% TOTAL 635 100% 100% 1. Emera group. 2. Colisée group. 3. Clariane group. 4. Formerly known as My-Assist. 5. Emeis group, formerly known as the Orpea group. 6. Vivalto group. 7. Attendo group. 8. Norlandia group. 9. Specht Gruppe. 10. Formerly known as Team Olivia. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 41 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Aedifica’s real estate portfolio is operated by more than 150 tenant groups. Six groups operate pro- perties in multiple countries in which the Group operates: Clariane, Attendo, Emeis, Emera, Norlandia and Vivalto. The weight of these groups in Aedifica’s contractual rents is broken down by country in the table below. Tenant Country Number of sites 31/12/2024 31/12/2023 Clariane group 48 9% 10% Belgium 25 6% 7% Germany 1 0% 0% Netherlands 22 3% 3% Emera group 17 4% 3% Belgium 1 0% 0% United Kingdom 8 2% 1% Ireland 8 2% 2% Attendo group 36 3% 3% Finland 31 3% 3% Sweden 5 0% 0% Emeis group 16 3% 3% Belgium 4 1% 1% Germany 5 1% 1% Netherlands 7 1% 1% Norlandia group 17 1% 1% Finland 16 1% 1% Sweden 1 0% 0% Vivalto group 2 0% 1% Belgium 1 0% 0% Ireland 1 0% 0% AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 42 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.2 Our investment programme as at 31 December 2024 Projects and renovations (in € million) 1 Operator Current budget Invest. as at 31/12/2024 Future invest. Projects in progress 160 89 71 Completion 2025 108 83 25 DE 1 1 0 Bavaria Senioren- und Pflegeheim Auriscare 1 1 0 UK 20 14 6 St Mary’s Lincoln 3 North Bay Group 17 12 5 St. Joseph’s Convent 3 Emera 3 2 1 FI 48 34 14 Finland – pipeline ‘childcare centres’ Multiple tenants 2 2 0 Finland – pipeline ‘elderly care homes’ Multiple tenants 20 19 0 Finland – pipeline ‘other’ Multiple tenants 26 12 14 IE 16 12 4 Sligo Finisklin Road 2 Coolmine Caring Services Group 16 12 4 ES 24 23 1 Tomares Miró 2 Neurocare Home 12 12 0 Zamora Av. de Valladolid 2 Neurocare Home 12 11 1 Completion 2026 23 4 19 DE 7 2 5 Am Parnassturm Vitanas 5 2 4 Seniorenzentrum Berghof Azurit 2 0 2 UK 17 2 14 The Mount Hamberley Care Homes 17 2 14 Completion 2027 29 2 26 DE 29 2 26 Seniorenquartier Gummersbach 2 Specht Gruppe 29 2 26 TOTAL INVESTMENT PROGRAMME 160 89 71 Changes in fair value +1 Roundings & other +6 On balance sheet 96 1. The figures in this table are rounded amounts. The sum of certain figures might therefore not correspond to the stated total. Amounts in GBP were converted into EUR based on the exchange rate of 31 December 2024 (0.82735 EUR/GBP). 2. Although still under construction, development projects often already generate limited rental income, in particular for the plots of land that have already been acquired. Their values are therefore no longer mentioned in the table above. This explains why the estimated investment values differ from those mentioned earlier. 3. This project has already been completed after 31 December 2024 (see page 76). RÉSIDENCE LE DOUAIRE CARE HOME IN ANDERLUES (BE) AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 43 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION In 2024, seven new projects have been added to the investment programme (for a total amount of approx. €59 million; see page 73), while 31 pro- jects have been completed (for a total amount of approx. €296.5 million; see page 74). Active management of the investment programme has led to a few projects totalling €23 million being withdrawn throughout the year. Given the completion of three development pro- jects in the United Kingdom and Finland after 31 December 2024, the total investment budget will be reduced by approx. €45.5 million (see section 1.2 of the ‘Financial review’ chapter). THE MOUNT - CARE HOME DEVELOPMENT IN WARGRAVE (UK) GEOGRAPHICAL BREAKDOWN PIPELINE (%) EXPECTED COMPLETION DATE PIPELINE (%) 30% Finland - €48 million 23% Germany - €37 million 22% United Kingdom - €36 million 15% Spain - €24 million 10% Ireland - €16 million 67% 2025 - €108 million 15% 2026 - €23 million 18% 2027 - €29 million 6.1% average initial yield on cost of pipeline AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 44 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.3 Market trends 1 European trends In the European Union and the United Kingdom, the population of persons over 80 years old has increased to more than 30 million people (2024). This segment of the population is growing faster than other age groups. It is expected that this older segment of the European population will double to over 60 million people by 2060. In the coming decades, this demographic trend will further stimulate demand for healthcare real estate, underpinning the resilience of the sector. European operators can be divided into three categories: public, non-profit and private opera- tors. The operator landscape in different coun- tries varies depending on the local social security system. At European level, private care operators manage approx. 34% of the total number of beds in residential care centres. Care providers in the consolidating private segment are developing their activities in both domestic and foreign mar- kets. European governments are facing the challenge of addressing several key societal needs. As a result, they are more often focusing on financing care and care dependency rather than providing care as public operators. In addition, both private and public operators will have to rely more often on private investors to finance healthcare real estate infrastructure that meets the needs of the ageing population. Healthcare operators are facing similar phenomena across Europe. Not only is the sector confronted with a limited availability of staff, but since 2022 also with cost increases resulting from inflation (impacting wages and other operational costs). On the other hand, after a dip in opera- tors’ occupancy rates following the COVID- 19 pandemic, occupancy is recovering to pre-pandemic levels in most regions, which, combined with increased reve - nues per resident, is resulting in a gra- dual improvement of the financial health of operators. At European level, the investment volume in healthcare real estate has increased significantly in recent years (e.g. the investment volume in care homes in Europe has grown from approx. €3.5 billion in 2017 to over €8 billion in 2021). Prime yields of care home properties have been subject to decompression in 2023 and 2024 with a rise of from 50 bps to 100 bps with differences in magnitude between countries. Although invest- ment volumes across Europe declined signifi- cantly in 2023 due to increased financing costs, this upward trend is expected to accelerate in the medium to long term. This is because the demographic trend of an ageing population will accelerate from the mid-2020s, while develop- ment activity to provide more capacity in terms of specific healthcare infrastructure seems to slow down in the short term. The number of people over 80 in Europe will double to 60 million by 2060. This demographic trend will further increase the demand for healthcare real estate, on top of the urgent need to replace outdated properties and make them futureproof. Charles-Antoine van Aelst CIO Population ageing in Europe (%) 2 25% 20% 15% 10% 5% 0% 2024 2030 2040 2050 2060 70 + 75 + 80 + 85 + 1. This section was prepared by Aedifica based on information from the valuation experts. 2. This chart was prepared using publicly available information from Eurostat and the UK Office for National Statistics. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 45 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION United Kingdom Belgium Germany Finland Population aged ≥80 from 5.2% now to 9.6% in 2060 from 5.5% now to 10.4% in 2060 from 7.2% now to 10.5% in 2060 from 6.1% now to 10.6% in 2060 # care home beds 481,300 units in 11,730 care facilities 182,000 units in 2,600 care facilities. 985,000 units in 16,115 care facilities 80,000 units in 2,650 care facilities Future demand An increasingly ageing population with higher healthcare needs will significantly drive demand for healthcare real estate in the UK in the near future. Estimates anti - cipate a shortfall of over 200,000 beds by 2050 due to the demographic shift. The current increase in supply will not meet demand over time. Estimates suggest that capacity would need to double to around 360,000 beds by 2070 (assuming a constant percen- tage of care home beds relative to the population aged 80+). Forecasts predict that approx. 168,000 extra beds will be needed by 2040, offering significant pros- pects for growth and consolidation. In some regions, demand already exceeds supply. The demand for healthcare real estate remains high, while supply is limited. Demographic projections suggest that the current capacity would need to nearly double by 2060 in order to meet demand. Operator market With approx. 5,500 care home operators, many of which are independent private players ope- rating small and outdated buildings, the UK’s senior care marke is still very fragmented. The five largest care home operators have a market share of 13% of the total bed capacity, while the top 10 account for 18%. Approx. 30% of the care home beds in Belgium are managed by the public sector, while the non-profit sector and the private sector both operate approx. 35% of the beds. However, there are regional differences: in Flanders, approx. 55% of the beds are managed by the non-profit sector, while the pri - vate sector operates approx. 45% of the beds in Wallonia and even 65% of the beds in Brussels. Approx. 53% of care home beds are operated by non-profit opera- tors, 42.5% by private operators and 4.5% by public operators. Although the German market is increasingly consolidating and privatising, it remains highly fragmented, with the ten largest private operators currently holding a market share of only 14%. Finnish well-being services counties – funded through national taxes – are responsible for providing care to residents. Either they provide care themselves as public operators, or they organise care by outsourcing to private or non-profit care operators. Private healthcare operators have a market share of approx. 55%. Investment volume £1.6 billion in 2024 (£1.2 billion in 2023) €170 million in 2024 (€285 million in 2023) €1.3 billion in 2024 (€1 billion in 2023) €370 million in 2024 (€350 million in 2023) Prime net yield 4.50% (6.5% - 7.5% for mid-market real estate) 5.0% - 5.25% approx. 5.1% approx. 5.0% Other remarks The UK elderly care market is financed by a mix of public (Local Authorities and the Natio- nal Health Service) and private funds (self- payers). The latter category’s market share has risen sharply in recent years (46%). People who meet certain conditions regarding care needs can get social care services funded by Local Authorities after an assessment of their financial situation (43%). The NHS provides funding to seniors with continuing care needs (9%). Currently, the use of home care in Belgium is relatively low compared to neighbouring countries. Despite this shift towards more home-based care, there is no doubt that Belgium faces a significant shortage of care capacity for elderly people. Opportunities to create new capa- city in care homes are limited by the lack of building sites and the high cost of plots and building materials. Consequently, there is currently more investment in existing sites and reno- vations. Over 70% of children aged 1 to 6 are enrolled full- or part-time in a day- care centre. Approx. 28% of day care centres are operated by private ope- rators and their share is expected to increase in the future. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 46 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Netherlands Ireland Sweden Spain Population aged ≥80 from 5.2% now to 10.2% in 2060 from 3.6% now to 10.6% in 2060 from 5.8% now to 10.1% in 2060 from 6.0% now to 13% in 2060 # care home beds 125,000 units in 2,400 care facilities 26,000 units in 420 care facilities (not including government facilities) 88,000 units for elderly people and 30,000 units for people with special care needs 389,000 units in 5,320 care facilities and an additional 44,000 beds under construction Future demand Estimates suggest that around 150,000 additional beds will be needed by 2050 to provide the same level of care as today (on top of the necessary redevelopment of outdated existing care infrastructure). Ireland’s older population is increasing at an unprecedented pace. In order to keep up with demand, an estimated additional 35,000-40,000 nursing home beds will be required by 2050 in addition to the current 32,000 that exist, not counting for the replacement of any potential closures. Approx. 50% of municipalities report a shortage of housing for people with special care needs. Estimates suggest that current care home capacity will need to almost double by 2050, with around 370,000 additional beds needed to meet the needs of an ageing population. The 44,000 additional beds currently under construction will not be enough to cover demand. Operator market Approx. 90% of care home beds are operated by non-profit operators. Pri- vate operators account for approx. 10% and mainly operate small-scale sites with an average capacity of 24 residents. Although the market share of the private sector is still small com- pared to the non-profit sector, the pri- vate sector has grown considerably in recent years. Approx. 20% of care home beds are operated by the public sector while approx. 70% are operated by the private sector (split 50:50 between groups and individual operators) and 10% are run by non-profit operators. Swedish municipalities – financed with public funds – are responsible for pro- viding care to their residents. The focus of some municipalities seems to shift to giving freedom of choice so that people can choose their own care provider. Private care operators have seen their market share rise in recent years. 42% of care home beds are operated by the private sector, while 26% are ope- rated by the public sector, 23% in the third sector and 9% in administrative concessions. Investment volume €650 million in 2024 (€600 million in 2023) €55 million in 2024 (€140 million in 2023) €400 million in 2024 (€750 million in 2023) €310 million in 2024 (€280 million in 2023) Prime net yield approx. 5.0% approx. 5.0% - 5.5% approx. 5.5% approx. 5.5% Other remarks Virtually all care homes are entered into the ‘Nursing Home Support Scheme’ (budget of €1.4 billion for 2024) which provides a guaranteed weekly rate per bed and is supported by government funds to make up the shortfall for any residents that cannot afford care. As the building stock is quite outdated, investments in Spanish healthcare real estate are currently going through an organic growth phase. Although the sector’s pipeline has increased, demand still exceeds supply. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 47 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2. Tackling climate change 2.1 Minimising the impact of climate change on our portfolio Climate change may lead to warmer summers on the European continent, which may require adjustments to buildings to keep indoor tempe- ratures comfortable for building occupants. This is particularly crucial in elderly care, as this vulne- rable group is sensitive to high temperatures. This rise in temperatures may lead to a complete rethinking of the way buildings are designed, with more attention paid to active and passive cooling of buildings. Moreover, climate change may lead to sea level rise and extreme weather events that could damage buildings, such as the 2021 floods that affected some of the Group’s properties in Germany. To mitigate climate change risks, we have implemented a building assessment framework (see page 51) that includes a review of 42 risk items carried out at different stages of a building’s life cycle. As part of this building assessment, we have conducted a climate change risk assessment in 2023 to better understand the physical and transition risks to our portfolio This climate change risk assessment was conduc- ted with the help and expertise of an external partner, paving the way for further develop- ment in-house in the future. The methodology is aligned with the TCFD (Task Force on Climate-re- lated Financial Disclosures) and based on prin- ciples similar to disaster risk models, drawing on climate and socio-economic modelling data from a variety of sources. This comprehen- sive climate and socio-economic data covers physical risks such as extreme temperature, drought, wildfires, (pluvial/fluvial) floods, water stress and cyclones, in addition to transition risks. Although the assessment did not consider asset-level risk mitigation strategies, it did explore opportunities related to energy efficiency, mate- rial use, resilience, innovation and new markets. Next steps include targeted action, recognising that some physical risks require government inter- vention, while others can be addressed by opera- tors or owners. In response to identified risks such as fluvial flooding and extreme temperatures, a thorough review of existing and recommended mitigation measures has been incorporated into the annual strategic review of the invest- ment portfolio. This commitment to proactive risk management underlines our dedication to addressing climate challenges in a dynamic and evolving landscape. Reducing the environmental footprint of our portfolio & our tenants • (Re)developing energy-efficient buildings • Investing in energy-efficient installations • Introducing building assessment tools • Engaging with operators to reduce their energy consumption Aedifica’s greatest challenge will be to reduce greenhouse gas emissions from energy consumed by its operators and residents. Raoul Thomassen COO SENIORENHAUS LESSINGSTRASSE - CARE HOME IN WURZEN (DE) AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 48 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.2 Reducing our impact on climate change Aedifica commits to achieving net zero emissions for its entire portfolio by 2050 to meet the objec- tives of the Paris Agreement and thus contribute to addressing the climate crisis. Reducing the impact of global warming will largely depend on further eliminating greenhouse gas emissions as a result of energy consumption. The scope 1 and 2 greenhouse gas emissions (GHG) of our business activities are very limited. Aedifica is not directly involved in the operations of its care homes (generating scope 3 downstream emissions). As the operators are responsible for the daily management and maintenance of the buildings (including the technical equipment) and the way they purchase electricity, the Group only has a limited impact on the direct environ- mental performance of its buildings. However, as a leading healthcare real estate investor, Aedifica takes responsibility and actively cooperates with its operators on how to develop, maintain and operate our assets in an efficient, safe and sus- tainable manner. Net zero greenhouse gas emissions do not only refer to direct emissions (scope 1), but also to indirect emissions (scopes 2 and 3). Aedifica’s greatest challenge will be to reduce scope 3 downstream GHG emissions (mainly energy consumed by operators and residents) which are more difficult to control. As this requires a comprehensive approach and thorough cooperation with our operators, we have developed a net zero GHG pathway. CO 2 Scope 2 indirect Scope 1 direct HFCs PFCsCH 4 SF 6 NF 3 N 2 O Purchased energy Leased assets Leased healthcare properties Investments Fuel and energy Waste generated in operations Employee commuting Business travel Company offices Company vehicles Scope 3 indirectScope 3 indirect Construction activity Upstream activities Reporting company Downstream activities Energy data coverage evolution 1 40% 2018 43% 2019 70% 2020 83% 2021 83% 2022 86% 2023 Environmental Data Report to be published in June 2025 1. Expressed as a percentage of the square meters of reporting buildings relative to the total square meters of buildings in Aedifica’s portfolio for the year under review. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 49 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.3 Net zero GHG pathway In order to achieve climate neutrality, Aedifica is implementing a net zero greenhouse gas pathway addressing every aspect of our business activities. Each of these activities contributes to our goal of reaching net zero greenhouse gas emissions by 2050. This will be a challenging journey in which collaboration and knowledge sharing within the industry is essential. Aedifica is committed to accompanying its stakeholders on this journey. As a property owner, Aedifica’s main objective over the next decade is to reduce the net energy use intensity (nEUI) of its portfolio: • by upgrading buildings to reduce gross energy demand • by generating renewable energy on site to reduce net energy demand from the energy grid Moreover, purchasing green energy to meet the remaining net energy demand will have an additional positive impact on decarbonisation. The science based Carbon Risk Real Estate Monitor (CRREM) serves as a tool and bench- mark in the annual evaluation of building per- formance and to guide portfolio development in the various countries where Aedifica operates. An interim target was set for 2030 to reduce the nEUI for the entire Aedifica portfolio to an average of 130 kWh/m², while targets were also set for the Executive Committee and country managers. The targets and measurements were made in accordance with CRREM definitions. kWh/m 2 130 kWh/m² nEUI target for 2030 2021: 181 2022: 167 2023: 158 PATHWAY TO NET ZERO GHG EMISSIONS IN THE EUROPEAN HEALTHCARE SECTOR 1 350 300 250 200 150 100 50 0 2020 2030 2040 2050 1. The bandwidth shows the combined pathways com- mitted by the different governments for the health- care sector in their countries (the eight countries where Aedifica operates) as part of the Paris Accord, expressed in net energy use intensity (kWh/m 2 ). 2. The emissions KPI refers to the year 2023 and will be updated in the Environmental Data Report to be published in June 2025. 158kWh/m² Aedifica actual 2023 2 130kWh/m² nEUI target for 2030 Business activities Actions to be taken this decade Development • Performing life cycle assessments • Implementing sustainable development guidelines • Introducing a building passport to measure embodied carbon Acquisitions and divestments • Performing ESG assessments for acquisitions • Using CRREM-based pathways Standing investments • Rolling out a building assessment tool • Benchmarking performance • Setting country and asset level targets • Green investments Collaborate with operators • Rolling out green lease contracts and educating operators • Organising Operator Days • Implementing smart meters Management operations • Monitoring and off-setting carbon impact • Educating employees • Updating green travel policies AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 50 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION The net energy use intensity (nEUI) decreased by 5% from 167 kWh/m² in 2022 to 158 kWh/m² in 2023, weighted on the Gross Internal Area (GIA). As per CRREM, the gross internal area is used to avoid distorting the indicator with non-heated sur- faces such as indoor parking. With an energy data coverage of 86%, this indicator provides a robust picture of the energy efficiency of our portfolio. Lack of standardisation in measurement codes can have a major impact on the calculation of this KPI: based on an alternative definition using the Gross Floor Area (GFA) or Gross External Area (GEA), our 2023 net energy use intensity would decrease to 148 kWh/m². 2.4 Building assessment framework Aedifica has developed a building assessment framework that provides our technical property management team with a structure to monitor the quality of each building. Although Aedifica is not directly involved in the operation of our care homes, we have an impact on how infrastructure is designed, built and maintained in accordance with evolving regulations and current construction techniques. The building assessment framework is based on three pillars: proper monitoring of the overall maintenance condition, the energy consumption and sustainability character of our buildings and their compliance with all applicable regulations. The sustainability pillar of the building assessment framework provides local Aedifica teams with a roadmap for minimising the environmental impact of their respective portfolio. This framework defines technical requirements for energy effi- ciency, environmental aspects (e.g., measures to reduce water consumption and improve bio- diversity), health criteria (e.g., ventilation rates for air quality) and quality of life criteria for resi- dents (e.g., accessibility) for future development projects. Our development projects in the Nether- lands generally already meet most of these cri- teria, as the Dutch version of our sustainable development framework is similar to the GPR standard. Moreover, as part of the building assessment, we also carry out a review of 42 risk items. For each development, acquisition and standing invest- ment, we assess a spectrum of potential risks, including loss of general use of the building, flood risk, stability risk, fire risk, explosion risk, environ- mental impact, energy/sustainability certification and health and safety issues. Building assessment framework Maintenance • Detailed desktop and on-site condition assessments according to the principles of the NEN2767 standard. • On-site visits conducted by our opera- tions team or independent third parties. • Uniform approach across the countries where Aedifica operates. • Follow-up actions with operators. Sustainability • Energy data collection and validation on annual basis. • Evaluating the progress of the net zero GHG pathway using the science based CRREM tool. • Assessing climate change risk adapta- tion. • Defining and implementing sustainable development guidelines per country. • Energy labels and energy audits provide input for measures needed to improve energy efficiency (including on-site renewable energy generation) as well as input for the CRREM pathways per asset. Compliance • Legislation and risk framework – a stan- dardised matrix (adapted to local and regional legislation and regulations) to check a building for compliance. This ranges from building permits and eleva- tor certificates to flood risk assessments. • Ensuring structural and facility com- pliance to guarantee the health and safety of residents and employees by monitoring and supporting operators in their responsibilities for the technical management of buildings. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 51 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.5 Improving building certification To properly assess the intrinsic energy performance of the assets in our portfolio, we continuously collect information from our operators and benchmark their relative environmental performance. We do this by comparing actual energy consumption with the energy levels set out in the applicable EPC 1 standard. EPCs were first introduced as part of the EU Energy Performance of Buildings Directive and will continue to play an important role in the future as part of EU Taxonomy regulations. EPCs give us an independent picture of a building’s energy efficiency by documenting not only a label, but also an estimate of its energy intensity. Buildings with an EPC of level C or above are considered to be in compliance with the country’s standards/objectives. Since we started identifying the existing certificates in our portfolio in 2020, we have been able to compile a comprehensive overview. In 2024, we have increased the EPC coverage to 92% of the Group’s investment properties. This provides a robust picture of the portfolio, taking into account that 3% of the investment properties are projects under (re)development. The proportion of EPC level C or higher increased by 2% during the year. Building on the findings of our EPC overview, we have developed a clear road- map to structurally improve the energy efficiency of the portfolio: • For new developments, the sustainable development framework will help achieve our energy intensity targets. • Based on the building assessment framework for existing assets, renovation plans will be explored with the operators. • Financing through sustainable financial instruments will facilitate invest- ments in sustainable new development projects or specific sustainability projects in the existing portfolio. • Energy inefficient buildings will be considered for asset rotation if renovation is not feasible. BREAKDOWN OF EPC LEVELS 2 (% OF TOTAL M² OF PORTFOLIO) 2023 2024 +2% 1. Energy Performance Certificate. EPCs provide an independent assessment of a building’s energy efficiency by documenting not only a label but also an estimate of its energy intensity. As the EPC scale used to classify buildings in Belgium differs by region and building type, and in order to improve comparability within the portfolio, the energy intensity of Belgian buildings is being re-mapped to the ‘EPC Public Buildings’ scale. Note that the ‘EPC Public Buildings’ category is currently being phased out and replaced by ‘EPC Non-Residential Buildings’. 2. EPC coverage and EPC breakdown by categories have been subject to a ‘limited assurance’ review by EY Bedrijfsrevisoren BV (see page 236). 92% EPC coverage Cert-Tot Floor area (m²) Floor area (%) Asset value (€ million) Label A 669,000 30% 1,804 Label B 751,000 33% 2,293 Label C 402,000 18% 1,080 Label D or lower 245,000 11% 541 No label 101,000 5% 224 Projects under (re)development 62,000 3% 94 Projects under (re)development No label Label D or lower Label C Label B Label A AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 52 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.6 Walking the talk At every stage of our value creation process, we strive to reduce our impact on the environment by acquiring efficient buildings and (re)developing buildings to optimise energy consumption, user comfort and reduce operating costs for operators. Martha Flora Oegstgeest • Development project • Location: Oegstgeest – Netherlands • Completed in July 2022 • Capacity: 20 residents • Investment: approx. €7 million Martha Flora Oegstgeest has been designed specifically for elderly people with dementia, focusing on both a high standard of living and sustainable operations. This futureproof care resi- dence reflects our commitment to environmen- tal standards while ensuring a comfortable and homely atmosphere for residents. With a net energy use intensity of approx. 63 kWh/m², the property was awarded an excellent EPC rating of A+++. • Energy-efficient design: The building inte- grates high-performance insulation, triple- glazed windows and an advanced climate control system to optimise energy use. A heat pump significantly lowers energy consumption, while real-time energy monitoring helps to reduce operational costs. • Renewable energy sources: Solar panels contribute to the building’s energy supply, reducing reliance on fossil fuels and lowering GHG emissions. • Sustainable materials: Circular and low- carbon materials were used in construction to minimise environmental impact. • Biodiversity-friendly landscaping: Native plant landscaping supports local biodiversity and provides a calming environment for resi- dents. York Bluebeck Drive • Development project • Location: York – United Kingdom • Completed in September 2024 • Capacity: 72 residents • Investment: approx. €16 million York Bluebeck Drive demonstrates our commit- ment to providing innovative, sustainable and community-focused care properties. Thanks to a strong focus on energy efficiency, the care home has a net energy use intensity of only 65 kWh/m², earning the property an excellent EPC rating of A. In addition, the design of the building took maximum account of the needs of people with dementia. The care home’s innovative aesthetics and func - tionality received recognition after being short- listed for ‘Best Architectural Design’ at the 2025 UK Healthcare Design Awards. • Inclusive design: The property has been speci - fically designed to support the wellbeing of resi - dents with dementia through adapted layouts, thoughtful colour schemes and enhanced wayfinding. By creating sensory gardens and green spaces, the care home boosts residents’ mental health and biodiversity. • Sustainable construction: Applying the highest environmental standards, the care home incor- porates air source heat pumps, photovoltaic panels, and enhanced insulation. • Community impact: Several initiatives were taken to increase community involvement, including donating surplus construction mate- rials to local associations and employing local people on-site, including apprentices, to pro - mote community skill-building. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 53 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Seniorenresidenz Fredenbeck • Development project • Location: Fredenbeck – Germany • Completed in March 2024 • Capacity: 94 residents • Investment: approx. €16 million 1 When constructing Seniorenresidenz Freden- beck, we looked not only at how to make the building as comfortable as possible for elderly people, but also at how to minimise energy consumption. With a net energy use intensity of approx. 25 kWh/m², our brand-new care home meets the requirements of the high energy effi - ciency standard ‘KfW-EH 40+PV’. • Energy-efficient design: Expansive rooftop solar power systems supply the care home with renewable energy, while heating and hot water are provided by an air-source heat pump. Inside, it is equipped with a high-quality venti- lation system with heat recovery. The building’s energy-efficient layouts are not only good for the environment, but also help our tenant save costs. • Sustainable materials: Durable, recyclable and low-carbon materials were used in construction to minimise environmental impact. Espoo Kuurinkallio • In-house development project • Location: Espoo – Finland • Completed in May 2024 • Capacity: 26 residents & 60 children • Investment: approx. €7.5 million The Kuurinkallio service community in Espoo is a prime example of how our care properties, beyond environmental sustainability, also foster social sustainability. The property is operated by two different operators catering for people with different care profiles. Humana offers 26 people with disabilities a new home in its residential care centre, while Pilke wel- comes 60 children on a daily basis in its nature- based day-care centre. Although the two operators share the same roof, the building was designed to meet the unique requirements of both operators, combining their different perspectives and operating models into a seamless whole. • Social sustainability: In the service community, people with different care needs are cared for under one roof. This way of living together benefits all groups and allows them to support each other in their own way. • Functional design: The building was specifi- cally designed to contribute as much as pos- sible to the quality of life of the people who live and work there. By paying attention to the building’s accessibility in the design phase, using soothing colour schemes and tailoring the acoustics of shared spaces, we improve daily life for everyone. • Connected to nature: Proximity to nature plays an important role in the service community. This is reflected not only in the way the buil- ding is embedded in its surroundings and in the nature-based day-care centre, but also in the way the rooms and terraces are oriented towards the surrounding nature, which contri- butes greatly to the wellbeing of the residents. 1. Including plot of land and construction. AEDIFICAannual report 2024 - BUSINESS REVIEW - portfolio 54 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION PARTNERS Aedifica is in constant dialogue with its stakehol- ders. We do this not only by communicating trans- parently with investors and analysts about our performance and the work we do, but also by engaging in an open dialogue with our operators. We also keep our finger on the pulse of the com- munities in which we operate. In 2024, this was reflected in tangible ways in the successful organisation of our Operator Days and Community Days, support for various demen- tia-related charities, involvement in training pro- grammes at universities, participation in various sector events and investor fairs, and more. AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 55 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1. Our key stakeholders Aedifica is committed to bringing together the various stakehol- ders that affect the daily lives of the residents and care staff who live and work in our buildings. We aim to be a partner to all these stakeholders by actively listening, sharing information and educating them on the latest trends in the real estate industry. Above all, our relationships with our operators and communities are essential to creating long-term, sustainable value. RESIDENTS EMPLOYEES OPERATORS SHAREHOLDERS & INVESTORS ANALYSTS & RATING AGENCIES AUTHORITIES FINANCIAL INSTITUTIONS SUPPLIERS & BUSINESS PARTNERS SOCIETY ASSOCIATIONS & INDUSTRY ORGANISATIONS AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 56 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Stakeholders Our mode of engagement Our shared expectations Operators • Site visits, building condition checks • Operator satisfaction survey • Operator Days • Events • Continuous informal contact • Energy efficient purpose-built care facilities • Long-term, sustainable relationship • Permits • New developments • Energy and water consumption • Occupancy rate • Building conditions and relevance • Quality of care Employees • Code of conduct, HR policies • Attractive remuneration package • Performance appraisal • Employee satisfaction survey • Day-to-day communication, townhall meetings, intranet • Aedifica Academy • Community Days • Ethical labour conditions • Fair benefits • Inclusive and safe workplace • Employee health & well-being • Employee satisfaction and engagement • Corporate performance • Personal performance • Personal development through training and career evolution • Community involvement • Accessible and trustable management with strong ethical values Suppliers & business partners • Charter for Responsible Suppliers relations • Project development • Tenders • Project development • Compliance with elderly healthcare standards • Health and safety • Environmental impact • Business ethics • Long-term collaboration Shareholders, investors & financial institutions • Annual General Meeting • Management & investor relations contact • Website & social media • Press releases, financial reporting • Roadshows & retail shareholders fairs • Ratings/performance from rating agencies • Financial performance • Proper management of financial resources • Value creation, dividend distribution and long-term returns • Compliance with Corporate governance • Role in society • Responsible investment Analysts & rating agencies • Annual reports & press releases • Financial results announcements through press release & webinar • Participation to roadshows & conferences • Management & Investor relations contact • Assessment questionnaires • Thematic events • One-to-one meetings • Transparent, accurate and reliable reporting and timely distributed information • Access to management • Clear and consistent investment strategy/policy • ESG assessment Authorities, associations & industry organisations • Industry roundtables • Compliance screening • Members meetings • Thematic events • One-to-one meetings • Compliance with regulatory requirements • Market trends Society & end users/residents • Website, social media • Annual reports and press releases • Sharing expertise at schools, universities & other trainings • Memberships • Community Days, engagement programme • Role in society • Community involvement • Research (future) needs AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 57 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2. Strengthening relationships 2.1. Operator engagement Partners in healthcare real estate We are continuously committed to our partners by proactively reaching out to them and maintai - ning good relationships. In this way, we seek to understand their needs and discuss the issues that matter to them. This open attitude underpins the Group’s identity and long-term vision. Building and strengthening relationships with our operators and communities is essential to crea- ting long-term sustainable value. Understanding the needs we have to meet helps us to provide them with tailored real estate solutions that help them succeed and create value for society. Ensuring quality of care in our properties Aedifica’s corporate mission is to provide sustai- nable real estate solutions to our partners so that they can support and care for people in a safe and well-developed infrastructure that contributes to their dignity and quality of life. As the well- being of the care user is top priority, we are also mindful of the care provided in our residential care properties 1 . We are therefore amending our lease agreements to include an explicit commitment from tenants to • provide quality care to the residents in our properties, in line with the fundamental care standards that apply; • subscribe to the ethical principles set out in our Charter for Responsible Supplier Relations (see page 62). We also make agreements with our tenants to share care inspections reports in order to have a more timely insight into the quality of care that is provided in our residential care properties, as perceived by the authorities responsible for the inspections. Over 55% of the leases of our residential care properties 2 already include an express commit- ment from tenants to comply with care quality standards and report on care inspection reports. Operator survey: gathering feedback Every two years, Aedifica conducts a dedicated operator engagement survey to better unders- tand areas where we can further improve our organisation and collaboration. As the last survey was carried out in 2023, we will conduct a similar survey in 2025 to update the findings, compare the results and identify key trends in the health - care sector. The survey results provide useful insights into our current services and interactions, as well as potential additional operator needs and strategic priorities. Once received, the results are analysed and discussed within the Aedifica teams and with the operators themselves. By developing country-specific action plans, these results serve as the basis for improvements in Aedifica’s colla- boration and dialogue with its tenants. According to our 2023 survey, finding qualified staff and improving occupancy rates remain the top concerns of our tenants. They also identified a new priority: improving operating margins. TOP PRIORITIES FOR OPERATORS 1. Access to qualified staff 2. Improving occupancy 3. Improving operating margin During our Operator Day, we explored with operators how we can work together to seize ESG opportunities and future-proof our care properties. Erwin Drenth Country Manager Netherlands Operator days Aedifica understands the challenging context in which our operators have to work every day. Their priority is providing healthcare to people in need, not necessarily the administration and technical maintenance of our buildings. To support our tenants with their real estate issues, we organise Operator Days. At least once every three years, we invite representatives of tenants in each of the regions in which we operate to participate in a seminar to share knowledge and best practices. Topics covered include: • efficient property management; • investments in innovation; • new real estate-related care solutions; • climate change risks and opportunities. Operator Days in Belgium & the Netherlands In March 2024, following the success of 2023’s Operator Days in Belgium, Aedifica organised two more events in Leuven and Ghent to support its Belgian tenants with their real estate issues. The sessions focused on sustai- nable care and improving the quality of life of care home residents. In addition to testimonials and expert panels, case studies from Finland designed and developed by our local Hoivatilat team were presented. Both Operator Days were – again – a success with over 300 represen- tatives attending. In October 2024, it was up to our Dutch team to organise an Operator Day. Together with our tenants and partners, we discussed the challenges of an ageing society and how we can respond to them with sustainable care real estate concepts. We also outlined our approach to make existing buildings futureproof again. In addition, we explored with a testimonial how informal care can have a structural place in the daily operations of a care home. 1. Investment properties with a healthcare function (i.e., elderly care homes, senior housing, mixed-use elderly care buildings, and other care buildings). 2. Unlike in previous years, the figure representing the number of leases with a quality-of-care commitment is no longer calculated on the basis of a count of relevant leases, but is now weighted by contractual rents. 55% of our residential care properties have leases with a quality-of-care commitment AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 58 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Focus on the long term Aedifica focuses on long-term investments. This has a significant impact on the type of facilities we buy or develop, but also on the type of rela - tionship we want to build and maintain with our operators. For this reason, we always analyse the operator’s business plan at the beginning of a project. We typically enter into long-term triple net leases with care home operators. This means that these operators are responsible for the day- to-day management and maintenance of the buildings. We, on the other hand, focus entirely on optimising the buildings and the relationship with our operators. We continuously monitor trends and research the needs of (future) care home residents so that we can target our investments accordingly. Our operator engagement survey shows that environmental performance falls just short of the top three key priorities of our operators. However, 69% of respondents indicated they are committed to achieving net zero emissions under the Paris Agreement. As landlords, this means that we will need to work together with our tenants to achieve this overarching goal, discussing green investment opportunities and assessing property intensities to identify inefficiencies. Green lease agreements To this end, Aedifica has developed a common frame of reference for cooperation with its ope- rators. This has taken the form of a green lease annex, which will be an integral part of the leases in each of the countries in which Aedifica operates. The annex includes mutual obligations (e.g. sha- ring energy data, exchanging best practices, refraining from doing construction works that negatively affect the environmental performance of buildings) on the one hand, and recommen- dations that provide guidance on how to further improve the environmental performance of the assets on the other hand. The annex is being implemented gradually. After three years, 38% of the leases in our portfolio 1 already have a green lease annex. Working together to minimise environmental impact With regard to downstream Scope 3 emissions, which in our case mainly consist of emissions from care home operations (see page 49), Aedi- fica works continuously with its tenants to review the results of Building Assessments and improve energy efficiency. While the nature of our leases does not allow us to intervene directly in the way tenants operate our buildings, we often find a common goal in energy efficiency, especially as increased energy costs put additional pressure on operators’ margins. In an increasing number of cases, cooperation in this area, institutionalised through the green lease agreement (see above), has led to further steps towards energy efficiency. In addition, operators who have implemented recommendations from energy efficiency audits have benefited from rela- tively short payback periods. This process encou- rages innovation, reduces operating costs for our tenants and supports Aedifica’s commitment to reducing greenhouse gas emissions. 38% of our properties have a green lease annex At Aedifica we are committed to: • sharing best practices • benchmarking energy and water intensities • driving environmental collaboration in the form of green leases • discussing CSR issues with local teams during Asset Management meetings and Operator Days Green investments Discover how we make our portfolio more sustainable > pages 53-54 LOUGHSHINNY NURSING HOME - CARE HOME IN DUBLIN (IE) 1. Unlike in previous years, the number of leases with a quality-of-care commitment is no longer calculated on the basis of a count of all leases, but is now weighted by contractual rents. AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 59 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.2. Community engagement Aedifica values social commitment and cares about the communities in which it operates. We do this not only by financially supporting a num - ber of charities each year, but also by organi- sing ‘Community Days’ in which our employees contribute in a tangible way to the well-being of our community. Community Days A few years ago, Aedifica launched its Community Days programme, which offers employees the opportunity to spend one working day a year volunteering in one of our care homes. Whether it is helping with entertainment activities, doing small chores or going for walks with elderly resi- dents, we always tailor our programme to the needs of the care home and the people who live and work there. Our Community Days therefore create a unique added value by involving and connecting our various stakeholders: • Community Days have a positive effect on group spirit, as they also act as team-building activities, stimulating transversal cooperation between the different teams within Aedifica in a new context. • Not only does the team strengthen its ties with each other, but the Community Days also allow them to better understand the communities in which we operate and sharpen their ties with the people who live and work in our buildings. • Community Days also give our staff a better idea of how people actually use our buildings. This allows us to tailor our homes even more closely to the needs of the people living in them, further improving their quality of life. In 2024, we organised Community Days in both Belgium and the Netherlands. A total of 26 employees performed over 100 hours of volunteering in six care properties. In 2025, Com- munity Days will also be organised for the other local Aedifica teams. At Aedifica, we believe in the power of engagement. Our annual Community Days allow employees to volunteer in our care homes, strengthening team spirit and our understanding of the communities we serve. Bernard Oosterbosch CSR Manager 2024 Community Days in Belgium & the Netherlands 6 care properties visited 26 participants 100 hours of volunteering AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 60 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Supporting charities: moving against dementia Through financial support to charities, partnerships with non-profit organisations and donations in kind, Aedifica brings positive, sustainable change to society. In addition, Aedifica regularly supports charitable initiatives set up by its employees by matching the amount raised. As a matter of policy, Aedifica does not make donations to political parties or organisations under any circumstances. In 2024, Aedifica decided to focus its charity sup- port on organisations fighting dementia. Several sporting activities were organised under the slo - gan ‘Moving against Dementia’. This allowed us not only to support initiatives close to our core business, but also to encourage our employees in their healthy lifestyle habits. >€50,000 in charity donations in 2024 On the one hand, there were local events per team, while on the other, a large group-wide activity was organised.Throughout the year, our various teams have organised sporting activities to raise money for local dementia research initia - tives and organisations that support people and families affected by dementia. Our Belgian and Swedish staff participated in running races, while our teams in the Netherlands, Finland and Germany organised team walks.Our UK team went the extra mile by organising a sports activity that involved cycling, walking and running along several of our care homes located near London, meeting residents and tenants on their journey. In October, we took our charity support to a new level by organising an ‘October Challenge’, a major group-wide event where all our teams were challenged to move as much as possible to raise money for charity. Every 15 minutes of exercise was rewarded, and additional amounts could be ‘unlocked’ when certain time thresholds were reached – all for Leuven Brain Institute, a research centre fighting against dementia. In this way, eve- ryone had the chance not only to improve their own health, but also to make a positive contribu - tion to society at the same time! As many as 90 of our employees took part and collectively ‘moved’ more than 2,500 hours during the month of October, generating €16,500 for dementia research – an achievement we can be proud of. As a result of all the activities we orga - nised in 2024, we donated a total of more than €50,000 to dementia-related charities. To raise money for a dementia charity, our UK team organised a sporting activity that involved cycling, walking and running to some of our care homes in and around London, meeting residents, home managers and staff along the way. Bruce Walker Country Manager UK & Ireland Community engagement, impact assessments and development programmes Comty-Eng Aedifica makes active efforts to have a positive impact on local communities. See the notes in the ‘Community enga - gement’ section for more details on our community actions. Headquarters 100% Portfolio 100% AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 61 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Contributing to society by providing qualitative care properties As an investor in healthcare real estate, Aedifica contributes to a better society by developing innovative residential care concepts for a wide range of care clients. Our primary focus continues to be on the elderly who require various types of residential care. In recent years, Aedifica has also focused on other types of housing and care facilities, including care facilities for people with disabilities, child day-care centres and schools. In 2024, 635 properties provided a home to over 35,800 residents across Europe, while nearly 13,500 children were able to take their first steps in our childcare centres. 2.3. Industry engagement Sharing expertise As a leader in healthcare real estate, we have a responsibility to invest in our sector, to share knowledge and collaborate with key stakehol- ders. We do this not only by organising Operator Days (see above), but also by supporting industry associations, participating in sector events and sharing knowledge through panels, seminars and university programmes. Aedifica is a founding member of the Senior Housing & Healthcare Association (SHHA). This European association aims to bring together industry leaders (both operators and investors), share insights with the wider market, contribute to research and data, and promote best practices. In 2024, Aedifica not only collaborated on a number of SHHA publications, but also participated in panel discussions organised by the association. We also participate in sector events. In 2024, Aedifica’s senior management took part in several events related to real estate and investment. Not only to represent the company, but also to partici- pate in panel discussions and conduct workshops. In addition, at our Operator Days, we invite not only our tenants but also other industry partners who can add value to the event. Our senior management is also involved in various training and university programmes. CEO Ste- faan Gielens is a frequent guest speaker in the postgraduate programme in real estate studies at KU Leuven, while other members of the Executive Committee and country managers also regularly share their knowledge in seminars and education programmes. Moreover, in 2024, middle mana- gement employees were frequently invited as guest speakers at the Karel de Grote Hogeschool and KU Leuven. In addition, we welcome interns to our offices and offer them the opportunity to gain valuable experience in an international work environment. Driving our CSR approach into the value chain To further embed sustainable best practices in the real estate market, we have developed a Charter for Responsible Supplier Relations inspired by the United Nations Global Compact (UNGC). It clari- fies the social, ethical and sustainable responsibi- lities of suppliers when working with Aedifica. This includes adhering to Aedifica’s business ethics, complying with labour standards, our anti-bribery and corruption policy and our human rights policy, providing a healthy and safe workplace and mini- mising environmental impact. Through this Charter for Responsible Supplier Relations, Aedifica aims to provide a framework for its main partners in all countries where it ope - rates to jointly respect and promote the 10 fun- damental UNGC principles. In addition, Aedifica itself is also making various commitments to build sustainable and balanced relationships with its suppliers. 68% Elderly care homes 15% Mixed-use elderly care buildings 8% Other care buildings 6% Childcare centres 3% Senior housing BREAKDOWN BY FACILITY TYPE IN FAIR VALUE (%) AEDIFICAannual report 2024 - BUSINESS REVIEW - partners 62 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ORGANISATION We are delighted that our staff have once again recognised Aedifica as a ‘Great Place to Work’. I want to thank all employees for the enthusiasm and commitment they show every day to make Aedifica such an enjoyable and vibrant place to work. Stefaan Gielens CEO AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 63 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1. Our team 131 employees 46 women 85 men 128 FTEs 42 years average age 10 offices across Europe 2,806 hours of training (+6%) 21.4 average hours of training per employee (+2%) The Aedifica team consists of 131 employees spread across ten different offices in seven coun- tries. Besides the head office in Brussels, we have established local teams in Germany, the Nether- lands, Finland, Sweden and the UK. In 2024, we also established a local team in Ireland. As Aedifica has grown strongly in recent years and moved into new countries, we transformed our hierarchical structure into a functional matrix in 2021. Our objective in doing so was to be as efficient and customer-focused as possible. Moreover, the structure also had to be scalable to new countries, once we have been able to build a sufficiently large portfolio there. Within the new structure, each local team concentrates on Aedifica’s core activities, while relying on the Brussels head office for support services (Finance, Legal, HR, IT, etc.). To support the local teams in their business acti - vities, ‘centres of excellence’ were established, bringing together the expertise and know-how of the different country teams and encouraging further cooperation and communication. These centres of excellence are coordinated by the head office and cooperate with representatives from the local teams. 59 Belgian 34 Finnish 11 German 10 British 7 Dutch 3 Swedish 2 French 2 Irish 3 Other 66 Brussels 20 Oulu 13 Espoo 11 London 9 Frankfurt 6 Amsterdam 3 Stockholm 1 Dublin 1 Berlin 1 Bremen NATIONALITIES AGE OF STAFF (IN YEARS) 60 50 40 30 20 10 0 20-29 30-39 40-49 50-59 60-69 10 64 33 21 3 BREAKDOWN OF STAFF BY OFFICE AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 64 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2. Making our people thrive 2.1 A great place to work New core values to strengthen our corporate culture Core values are important to an organisation because they empower staff to align their actions with the shared mission and goals. Reflected in everyday behaviour, they help people work together as a team and guide decisions that affect all stakeholders, both internal and external. Since Aedifica drafted its initial set of core values in 2018, the company has grown considerably and undergone some significant changes. We integrated teams that were already operating in the UK,Finland and Sweden, while expanding our teams in Belgium, the Netherlands and Germany, and creating a team in Ireland. These major changes within our group enriched our organisational culture. However, the teams that were integrated already had their own values. This meant that our original set of values was no longer fully aligned with the company we had become. In 2024, to ensure that our core values reflect our collective identity and aspirations, we undertook a thorough and inclusive process. All employees were invited to participate in each of the following steps to identify and articulate a new set of four core values. • Survey: In the group-wide survey, staff were asked for their opinion on Aedifica’s identity and which characteristics would help realise its mission. With almost half of our employees participating, the survey was a success. • Focus group: The results of the survey were discussed in a focus group, for which interested colleagues could register. In various phases, they worked together to distil and define core values from the results. 4 new core values Agility We tackle challenges with a pragmatic mindset and face changes with dynamism and flexibility. Leveraging our collective expertise, we always look for creative solutions. Client in mind We communicate in an open, honest and transpa- rent way with our internal and external clients. Our collaborative approach produces successful results. By being proactive, we go the extra mile for our partners Responsibility We care about our com- munity, the broader society and the environment. We take ownership by imple- menting meaningful action to create a positive impact for our shareholders and all stakeholders. Courage With our can-do attitude, we love to challenge exis- ting ways of thinking and break new ground. We create value by embracing new ideas. AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 65 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Employee survey Retaining engaged and motivated staff is key to our company’s success. Therefore, in 2024, we organised an employee survey in collaboration with an independent third party for the fourth year in a row. While providing a comprehensive picture of employee satisfaction across the Group, the survey gives us valuable insight into our people’s priorities and how effectively we are meeting them. It also gave us the right tools to improve staff well-being and create a happy workforce. With a 94% participation rate, our fourth survey was again a great success.Besides an in-depth analysis of company culture, The survey evaluated our workplace in terms of Credibility, Respect, Fairness, Pride and Camaraderie. This resulted in an excellent Trust Index score of 85% for the whole Group (an increase of 3 percen- tage points compared to last year). Moreover, 92% of staff reported that they would recom- mend Aedifica as a great place to work (again an increase of 3 percentage points compared to last year). Survey results have also shown that our focus on training and development initiatives is highly appreciated by the staff. Aedifica was therefore recognised as a great place to work for the fourth year in a row, allowing the company to carry the Great Place to Work® Certified label through 2025. This label is not only a recognition of the continuous efforts Aedifica makes to promote employee wellbeing, but also a quality label that helps attract the best talent in the sector. Our Great Place to Work Ambassador Committee ensures that survey results are discussed in each team and an action plan is developed to address matters that could still be improved. A diverse organisation Aedifica believes that diversity, equal opportu- nities and respect for everyone are fundamen- tal to the proper functioning of the company at all levels, regardless of whether it concerns employees and country managers, or members of the Board of Directors and Executive Committee (see pages 106-107). When selecting employees and country managers, we not only consider a candidate’s individual skills and competences, but also diversity in all its forms, so that a com- plementary team can be assembled with a good spread in terms of gender, age, education, cultural background, etc. This vision has resulted in a harmonised team consisting of people from different educatio- nal and cultural backgrounds, with a good mix of experience and a balanced gender ratio. Our strong focus on diversity fosters internal creativity, enriches the internal dynamics within Aedifica and contributes strongly to the growth of the Company. This is substantiated by our recent employee survey showing that our employees feel fairly treated, regardless of their race or sexual orientation. In 2024, we had 131 employees of 11 different nationalities working at Aedifica (see page 64). During the year, we welcomed 17 new employees to Aedifica as part of our onboarding programme. 35% of our employees are female. TOP SURVEY RESULTS • People are treated fairly regardless of sexual orientation, race and gender • Management is competent in running the business and ethical in its business practices • Fairness, camaraderie and team spirit emerge as focus areas with the highest scores 9 out of 10 employees would recommend Aedifica as a great place to work. HR SELECTION POLICY focus on diversity = focus on complementary of multiple diversity aspects competences national & international experience personality & profi le expertise & intergrity AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 66 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Attractive remuneration Our employees’ remuneration consists of a fixed and a variable salary, supplemented by fringe benefits (such as a mobility budget, private health insurance and group insurance). The specific components of the remuneration package may vary from country to country, taking into account local legislation and the social security system. In principle, all staff are employed on an open-en- ded employment contract. Employees’ variable remuneration is linked to individual performance and is paid annually. Belgian employees benefit from a non-recurrent result-based bonus plan linked to pre-defined collective targets (a mix of financial and non-fi- nancial KPIs). Equal pay How well employees are paid depends not only on their level of responsibility, but also on their motivation. However, this only works if they are treated fairly and equally. This is why we commit to equal pay for equal work, regardless of gender. To underpin this commitment, Aedifica conducts an annual gender pay gap analysis to identify and address potential imbalances. The female- to-male pay ratio among employees improved from 83% in 2023 to 85% in 2024. That difference stems from a higher number of men in senior management. However, in equal positions, pay is similar and based on objective criteria such as qualifications, experience and ability, regardless of the employee’s gender. The female-to-male pay ratio improved from 83% to 85% Employee new hires & turnover Emp-New Hires & Turnover 31/12/2024 31/12/2023 (headcount) % (headcount) % New hires 17 13.5% 18 14.2% Employee turnover 13 10.3% 10 7.9% Employee gender diversity (Diversity-Emp) 1 Diversity-Emp in 2024 Women Men (headcount) (%) (headcount) (%) Employees 2 46 35% 85 65% Executive Committee 1 20% 4 80% Board of Directors 4 57% 3 43% Gender pay ratio (Diversity-Pay) Diversity-Pay in 2024 # people Gender ratio # FTEs Remuneration % women/men Employees 3 Women 45 36% 42.40 85% Men 81 64% 81.00 Executive Committee 4 Women 1 25% 1 127% Men 3 75% 3 Board of Directors 5 Women 4 67% 106% Men 2 33% 1. As at 31 December 2024. 2. Including the Executive Committee. 3. Excluding the Executive Committee. 4. Excluding CEO. 5. Excluding Chair of the Board and Executive Committee members. SENIORENQUARTIER GERA CARE HOME IN GERA (DE) AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 67 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.2 Talent development Continuous learning It is our ambition to prioritise the development of human capital by focusing on the constant impro- vement of our employees’ skills and knowledge. We do this through a continuous process of trai - ning and learning, and through an open work- place culture in which there is regular opportunity to give each other feedback. Through the Aedifica Academy (see infra), a com- prehensive training offer is defined and updated each year in line with the company’s strategy, focusing on developing functional knowledge and promoting personal development. At Aedifica, we have created a workplace culture in which employees receive continuous feedback, in addition to a formal annual performance review by their manager. In 2024, 100% of our employees received a performance evaluation and develop - ment review. As well as bringing in new talent, we have conti - nued to invest in and develop our current staff, with three employees over the last 12 months receiving a promotion or opportunity to move roles internally within the organisation. Aedifica actively supports internal staff rotation, as it typically leads to improved skills and a better understanding of the company culture and internal processes. For this reason, new vacancies are usually announced internally first. Employee performance appraisals (Emp-Dev) Emp-Dev 100% of the staff receive performance and career develop - ment reviews (forma- lised once a year) 2,806 total training hours in 2024 (+6%) Aedifica Academy Aedifica Academy is a training programme for all Group employees. It empowers everyone to create their own personal and professional deve- lopment programme from a range of mandatory and optional courses. The Academy serves two main purposes: transferring functional and tech - nical knowledge on the one hand and promoting the personal development of our employees on the other. Employees are encouraged to supplement their own programme in the Academy: in addition to the courses offered by the Company, employees can also take external courses. These include job-specific training, such as postgraduate pro- grammes at universities, as well as soft skills courses. To streamline talent management and develop - ment, we use a cloud-based platform that makes documents and video recordings of Academy sessions available to all employees. This central hub helps us to create better onboarding pro- cesses for new hires to make sure they are well integrated into the business from day one. In 2024, Aedifica employees received an ave- rage of 21.4 hours of training per person, a 2.5% increase compared to 2023 (20.9 hours). Transferring functional & technical knowledge Aedifica offers several courses and best practices specifically designed to disseminate functional and technical knowledge across the Group. They help our staff to perform their tasks efficiently and excel in their specific function. The courses cover a range of topics, including real estate investment, property management, financial analysis, etc. There is also a newcomer programme offered on an annual basis to induct new employees. A large part of the programme within this section of the Academy is developed in-house. In this way, we encourage knowledge sharing between employees: people who are experts in their speci- fic matter support colleagues who are interested in learning more about it. Moreover, this approach also promotes open dialogue and team spirit among the staff. Employees also attended mandatory training on the Code of Conduct and the policies it incorpo - rates by reference, to make sure they understand the Code and to help employees act in line with Aedifica’s values. Since 2023, this training has been offered through e-learning. In 2023, man- datory e-learning courses were organised on the Anti-Bribery and Corruption Policy, on the Dealing Code and on information security. In 2024, e-lear- ning courses on the Speak Up Policy, competition law and data protection were added to the com- pliance programme. The completion rate of the compliance training modules is 99%. Personal development & leadership Through the Academy, we also provides course- sinvest in a wide range of training that allows employees to further develop their skills in communication, language, time management, leadership, etc. By giving them the tools and resources they need to grow professionally, we help them reach their full potential and achieve their career goals. Training and development (Emp-Training) Emp-Training 31/12/2024 31/12/2023 # % # % Total number of employees 1 131 127 Number of employees who followed training 129 98% 127 100% Total number of training hours 2,806 2,651 Average hours of training per employee 21.4 20.9 Total number of training hours – women 1,233 44% 874 33% Total number of training hours – men 1,573 56% 1,777 67% 1. At the end of the reporting period. AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 68 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Townhall meetings Annually, we organise a number of townhall mee- tings to which all employees are invited. These meetings are scheduled on a regular basis to inform everyone about the company’s strategy and performance in a consistent and clear man- ner. Besides fixed moments, such as the publi- cation of interim and year-end results, meetings are also organised on an ad hoc basis for certain initiatives and business updates that are of inte - rest to everyone. In 2024, we organised five townhall meetings. In addition to discussing quarterly financial results, meetings were organised on employee survey results, the progress on our CSR goals, market trends within the sector and the related impact on the Company’s overall strategy. 2.3 Health & well-being At Aedifica, we take ‘housing with care’ seriously in all our business activities. The care principles we apply to manage our real estate portfolio also apply to our own workforce. By looking after the health and well-being of our employees, we ensure that Aedifica remains an attractive place to work. By embedding our corporate values into our operations, we aim to remain a leader in the healthcare real estate sector. Employee health & well-being In 2024, we launched a new version of our employee handbook, reflecting our ongoing commitment to the health and well-being of our employees. This updated handbook provides comprehensive guidelines on workplace safety and employee welfare. By providing clear, acces- sible and bundled information, the new handbook has also enabled our staff to better understand the existing framework of employee-friendly rules and policies on employee well-being and to focus more on their health and safety, thereby pro- moting a more positive and productive working environment. There was one work-related accident to report in 2024. However, this was an accident without serious or permanent consequences (an incident during a sports event organised by the Company). We hold regular emergency drills and first aid can be provided in our offices if needed. On-site first aid training and fire safety training was also organised for some of our head office staff. In 2025, this initiative will be further rolled out across all our countries. Employee health and safety (H&S-Emp) H&S Emp 2024 2023 Work-related accidents 1 2 Lost day rate 0% 0% Absenteeism rate 3.6% 3.4% A better work-life balance with our telework policy and disconnection policy In 2021, Aedifica introduced a telework policy for the employees at its head office in Belgium. This policy allows all employees to work up to 50% of their working hours from home. This flexible arrangement allows staff to reduce their commute and better balance their work and private lives. This also plays an important role in attracting people to work for Aedifica, as candi - dates are increasingly looking for employers that offer flexible working arrangements. In 2023, Aedifica also developed a so-called dis- connection policy for the employees at its head office in Belgium. This policy not only defines the modalities of the legal right to disconnection (i.e. the right for employees to be unavailable outside working hours), but also provides guidelines for the use of digital tools so that rest periods, holi - days and the work-life balance of employees are safeguarded. Through the new employee handbook, both poli- cies are now also formally rolled out across the entire Group. In 2024, we took significant steps to further expand our training programmes. Investing in the growth and development of our people is key to the continued success and innovation of our organisation. Fabienne Vanderhulst HR Manager AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 69 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 3. Ethics, compliance and integrity Aedifica pursues a business culture characterised by honesty and integrity, a sense of responsibi- lity, strict ethics, and compliance with the statu- tory rules and corporate governance standards. This has been part of Aedifica’s heritage since its founding in 2005 and we will continue to follow this path. In this context, Aedifica has developed various policies setting out the rules that shape such cor- porate culture. We seek to continuously improve and professionalise our policies to ensure the highest ethical and compliance standards. Code of Conduct Aedifica has developed a Code of Conduct that provides an ethical framework and offers guide - lines to its employees on how to behave to live up to the high ethical values and standards we pur- sue. The Code of Conduct therefore ensures that our employees enhance and protect the good reputation of the Company, more specifically in its relationship with customers, shareholders and other stakeholders, as well as with society in general. The Code of Conduct reflects Aedifica’s core values, including our commitments to respecting human rights, preventing market abuse, fighting corruption and tax evasion, securing proper use of company property, and in that respect it incorpo- rates by reference our other internal ethical poli- cies (in particular, Dealing Code, Anti-Bribery and Corruption Policy, Tax-Evasion Policy, Speak-Up Policy and Human Rights Policy). The Code of Conduct has been entirely renewed in 2023. Particular attention was paid to ensu- ring that the Code is easy to understand for all staff members, regardless of their personal background, by not only paying attention to the accessibility of the language but also by better clarifying the interplay between the individual special policies and the overarching Code of Conduct, and by including practical cases per topic for illustration. We communicate the Code on our intranet and through mandatory training for all employees. We have a stringent approach to bribery and corrup- tion, fraud, (illegal) misconduct, insider trading, discrimination and all other forms of violations of our Code of Conduct. The effectiveness of, and compliance with, the Code is structurally assessed by: 1. actively detecting and investigating any alle - ged misconduct and taking appropriate disci- plinary action if misconduct is substantiated; 2. incorporating compliance with the Code of Conduct in our onboarding package for new employees; 3. monitoring that all staff (both internal and external), members of the Executive Com- mittee and Directors have attended the mandatory training sessions on the Code of Conduct. Since 2023, these training ses- sions take the form of e-learning / e-testing courses; 4. reporting of incidents to the Executive Com - mittee and the Board of Directors. All employees are encouraged to report concerns about the Code of Conduct and possible infringe- ments thereof. A special whistle-blowing proce- dure was created for employees to establish a safe environment to make such reports, in addi- tion to the already existing direct reporting options towards supervisors and the HR team (including our revised grievance procedure for employees with respect to issues at work). In 2024, no com - plaints about alleged infringements of the Code of Conduct were received from employees. More generally, no violations of the Code of Conduct were identified in 2024. Prevention of money laundering and terrorism financing risks Aedifica has developed and implemented poli- cies to counter money laundering and the finan- cing of terrorism and proliferation. This allows the Group to subject the establishment of business relationships with customers or the conclusion of transactions with counterparties to a prior assess- ment of potential money laundering, terrorist financing and reputation risks. After entering into a business relationship, a system of continuous monitoring is put in place. Employees involved in implementing this policy are regularly informed and receive specific training. Personal data protection We are committed to respecting and protecting the privacy rights of our employees, customers, shareholders, suppliers and everyone with whom we do business. Personal data is managed in a professional, law - ful and ethical manner, in accordance with our internal and external privacy policy and in com- pliance with applicable laws and regulations. We have implemented technical and organisational measures to prevent the accidental or unlawful destruction, loss, alteration or unauthorised dis - closure of, or access to, personal data. Our dedication to ethics transcends policy; it is the cornerstone of every decision we undertake. Honesty, respect, and responsibility are the principles that guide us in our pursuit of sustainable value creation for all our stakeholders. Sven Bogaerts CLO/CM&AO SENIORENQUARTIER GERA - CARE HOME IN GERA (DE) AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 70 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Cybersecurity Aedifica relies heavily on various IT systems to collect, analyse and process (financial) informa- tion. Good management of the IT infrastructure is of fundamental importance for the Group. A loss, compromise or unavailability of, or major problems with, these systems could cause a dis- ruption of management and investment activities, and a disruption of the internal and external repor- ting process. Data breaches could jeopardise the confidentiality of our data. Cybersecurity is therefore a high priority for Aedi- fica, as cybersecurity attacks by nation states, phishing, ransomware and value chain attacks are becoming increasingly common and sophisti- cated. With the increasing use of a digital working environment (on-site and at home), the role of IT services in providing seamless access to all cor - porate resources as well as ensuring information security is more important than ever. To protect our systems and data, and those of our customers and shareholders, we are constantly vigilant and have the necessary measures in place. Aedifica has an IT team assisted by an external partner for IT infrastructure management (hard - ware and software) and data security and storage. Internally, a cybersecurity plan has been deve- loped to prevent and detect cyber-attacks and limit their impact. The plan was first presented to the Audit and Risk Committee in 2023 during a special meeting on cybersecurity. The Audit and Risk Committee identified a number of action points, including the recommendation for an external assessment of the cybersecurity level. Following the 2023 recommendations, in 2024 a pen test was conducted by an independent expert to check the cybersecurity infrastruc- ture for exploitable vulnerabilities. The pen test showed that Aedifica had demonstrated reaso- nable compliance with the minimum standards for cybersecurity. The result, together with other elements of the 2024 IT Roadmap and the 2025 IT Roadmap, was discussed in detail in the Audit and Risk Com- mittee and subsequently in the Board of Directors (based on the reports of the Audit and Risk Com- mittee). In the context of the 2025 IT Roadmap, the use of new AI technologies and the status of their implementation were also discussed. Besides the functional and technical aspects of the roadmap (aimed at further developing state- of-the-art IT security infrastructure and solutions), the cyber plan also provides for regular (man- datory) IT training for employees and Directors (including phishing campaigns) to make them aware of cybersecurity and prevent phishing and other cyber threats. Aedifica also has a cybersecurity insurance policy in place that provides adequate cover against various types of cybercrime. In the past, Aedifica has been the victim of one data security breach due to a cyber-attack (namely in March 2021). This breach was reported to the data protection authority. The impact of that cyber-attack on Aedifica’s operations was very limited and did also not cause a demonstrable loss of personal data nor did it result in high risk to the rights and freedom of the data subjects possibly concerned (if any). Since March 2021, Aedifica did not identify any other data security breaches. Aedifica is not aware of any third-party informa - tion security breaches during 2024 involving our personal data. Artificial intelligence In compliance with the EU Artificial Intelligence Act (AI Act), we have adopted a comprehensive AI policy. This policy aligns with the regulatory framework and ensures that AI systems are used by Aedifica in a responsible, transparent and ethi - cal manner and that our employees are well infor- med about them. Although AI is a recent development, it is clear that it offers vast opportunities for innovation and efficiency. At Aedifica, we have established comprehensive guidelines and best practices for the ethical use of AI within the Group. Thomas Moerman Group General Counsel & Compliance Officer AEDIFICAannual report 2024 - BUSINESS REVIEW - organisation 71 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION FINANCIAL REVIEW Highlights 31 projects completed totalling €297m €188m in new investments & developments 41.3% debt-to-assets ratio €673m headroom on committed credit lines BBB investment-grade credit rating with stable outlook 1.9% average cost of debt 3.8 years weighted average maturity of drawn credit lines 6.2x interest cover ratio 1 89.0% hedge ratio 8.5 Net debt/EBITDA 2 €235m EPRA Earnings +7% €4.93/share EPRA Earnings €338m rental income +8% YoY +3.3% LFL €75.70/share net asset value €3.90/share proposed gross dividend +3% 6.9% gross dividend yield as at 31 December 2024 * Alternative Performance Measure (APM) in accordance with ESMA (European Securities and Market Authority) guidelines published on 5 October 2015. For many years, Aedifica has been using Alternative Performance Measures in its financial communications based on the guidelines issued by the ESMA. Some of these APMs are recommended by the European Public Real Estate Association (EPRA) while others have been defined by the industry or by Aedifica in order to provide readers with a better understanding of its results and performance. The APMs used in this Annual Financial Report are identified with an asterisk (). Performance measures defined by IFRS standards or by Law are not considered as APMs, nor are those which are not based on the consolidated income sta - tement or the balance sheet. The APMs are defined, annotated and connected with the most relevant line, total or subtotal of the financial statements, in Note 43 of the Consolidated Financial Statements. 1. The ratio of ‘operating result before result on portfolio’ (lines I to XV of the consolidated income statement) to ‘net interest charges’ (line XXI) on a 12-month rolling basis. 2. Not adjusted for projects under construction. AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 72 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1. Financial performance 1 1.1 Investments and disposals in 2024 New investments & projects Type Location Date Investment 2 (€ million) Pipeline 3 (€ million) Completion Lease Operator Belgium 29 - Franki Acquisition Liège 19/12/2024 29 - - WAU LT 19 yrs - NNN Vulpia Netherlands 25 - Remaining stake of 50% in a portfolio of 6 care residences (AK JV) Acquisition Various locations in the Netherlands 02/02/2024 25 - - WAULT 19 yrs - NNN Korian NL United Kingdom & Channel Islands 4 73 37 St. Joseph’s Convent 5 Renovation & extension St. Helier 22/03/2024 - 3 Q1 2025 WAU LT 23 yrs - NNN Emera Rosewood House Acquisition London 27/03/2024 18 - - 30 yrs -NNN Bondcare Furze Field Manor, Copperfield Manor & Rownhams Manor Acquisition Sayers Common, Broadstairs & Southampton 06/09/2024 55 - - 35 yrs - NNN Oyster Care Homes Somer Valley House 6 Forward purchase Midsomer Norton 06/09/2024 - 18 - 35 yrs - NNN Oyster Care Homes The Mount Redevelopment Wargrave 04/12/2024 - 16 Q2 2026 30 yrs -NNN Hamberley Care Homes Finland 1.5 22 Kerava Palopellonkatu Acquisition Kerava 28/06/2024 1.5 - 16 yrs - NN Norlandia Jyväskylä Lahjaharjuntie Development Jyväskylä 28/08/2024 - 10 Q3 2025 15 yrs - NN Mehiläinen Kokkola Kruunupyyntie Development Kokkola 23/09/2024 - 4 Q2 2025 15 yrs - NN Norlandia Nurmijärvi Luhtavillantie Extension Nurmijärvi 12/11/2024 - 2.5 Q2 2025 15 yrs - NN Pilke Vantaa Haravakuja Development Vantaa 22/11/2024 - 5.5 Q4 2025 15 yrs - NN Mehiläinen Total 128.5 59 €188m in new investments & developments 1. This financial review is based on the Consolidated Financial Statements. However, it also includes some informa- tion on the statutory accounts, but this is always specifically mentioned. The complete statutory financial statements and the statutory Management Report will be registered at the National Bank of Belgium within the legal deadlines and may be obtained free of charge on the Company’s website (www.aedifica.eu) or upon request at the head office. 2. The amounts in this column include the contractual value of the plots of land and the existing buildings. These investments often generate rental income (sites under construction also generate limited rental income (except in Finland and Sweden), in particular for the plots of land that have already been acquired). 3. The amounts in this column are the budgets for projects that Aedifica will finance. The development projects are listed in the overview of the investment programme (see page 43). 4. Amounts in GBP were converted into EUR based on the exchange rate of the transaction date. 5. This project has already been com- pleted after 31 December 2024 (see page 76). 6. The forward purchase of Somer Valley House was completed on 18 October 2024 (see page 74). AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 73 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Completed projects Type Location Date Investment 1 (€ million) Lease Operator Belgium 27 Résidence le Douaire 2 Forward purchase Anderlues 27/06/2024 17 27 yrs - NNN Vulpia Résidence Véronique Extension Somme-Leuze 31/12/2024 10 27 yrs - NNN Vulpia Germany 35 Haus Marxloh Renovation Duisburg 31/01/2024 4 WAULT 22 yrs - NN Procuritas Seniorenquartier Gera Development Gera 29/02/2024 16 30 yrs - NNN Modern Care Fredenbeck Development Fredenbeck 27/03/2024 15 30 yrs - NNN Residenz Management Netherlands 12.5 De Volder Staete Development Almere 12/06/2024 12.5 25 yrs - NNN Amado Zorg United Kingdom & Isle of Man 3 77.5 Dawlish Forward purchase Dawlish 15/02/2024 16 30 yrs - NNN Maria Mallaband Biddenham St James Forward purchase Biddenham 05/04/2024 15.5 30 yrs - NNN Maria Mallaband Spaldrick House Forward purchase Port Erin 08/08/2024 11.5 25 yrs - NNN Emera York Bluebeck Drive Development York 26/09/2024 16.5 35 yrs - NNN Torwood Care Somer Valley House Forward purchase Midsomer Norton 18/10/2024 18 35 yrs - NNN Oyster Care Homes Finland 95.5 Salo Linnankoskentie Development Salo 02/01/2024 3.5 15 yrs - NN Sospro Hollola Kulmatie Development Hollola 08/01/2024 2.5 15 yrs - NN HDL Sotkamo Härkökivenkatu Development Sotkamo 23/01/2024 2.5 15 yrs - NN Esperi Kuopio Torpankatu Development Kuopio 31/01/2024 5.5 15 yrs - NN Esperi Rovaniemi Gardininkuja Development Rovaniemi 29/02/2024 4 15 yrs - NN Suomen kristilliset hoivakodit Helsinki Landbontie Development Helsinki 04/03/2024 5 15 yrs - NN Kehitysvammatuki 57 Järvenpää Uudenmaantie 4 Development Järvenpää 17/05/2024 2.5 25 yrs - NN Keusote wellbeing county Espoo Kuurinkallio Development Espoo 31/05/2024 7.5 15 yrs - NN Humana & Pilke Espoo Palstalaisentie Development Espoo 28/06/2024 3.5 15 yrs - NN Peikkometsän Liikuntapäiväkoti Tuusula Lillynkuja Forward purchase Tuusula 18/09/2024 7 20 yrs - NN City of Tuusula Kerava Pianonsoittajankatu Development Kerava 30/09/2024 7.5 20 yrs - NN Ikifit Helsinki Krämertintie Development Helsinki 01/10/2024 4.5 20 yrs - NN City of Helsinki Helsinki Kutomokuja Development Helsinki 08/11/2024 11 20 yrs - NN City of Helsinki Oulu Tahtimarssi Development Oulu 15/11/2024 12 25 yrs - NN City of Oulu Helsinki Käräjätuvantie Development Helsinki 13/12/2024 13 20 yrs - NN City of Helsinki Oulu Satamatie 34 5 Development Oulu 31/12/2024 4 15 yrs - NN Multiple tenants Sweden 3 20.5 Norby 31:78 Development Uppsala 01/06/2024 1.5 10 yrs - NN City of Uppsala Nynäshamn Källberga Development Nynäshamn 01/07/2024 19 15 yrs - NN Raoul Wallenbergkolan Ireland 28.5 Altadore Extension Glenageary 14/06/2024 1 WAULT 22 yrs -NNN Virtue (Emera group) Dublin Stepaside Development Dublin 10/10/2024 27.5 25 yrs - NNN Virtue (Emera group) Total 296.5 1. The amounts in this column only include the works that were car - ried out, except for the investment amounts of the projects in Ander- lues, Dawlish, Biddenham, Port Erin, York, Midsomer Norton and Nynäshamn, which also include the contractual value of the plot of land. 2. On the basis of Article 49 §1 of the Belgian Act of 12 May 2014 on Regulated Real Estate Companies, Aedifica reports that the contrac- tual value of the property exceeds the fair value by more than 5%. This transaction was carried out pursuant to an agreement signed in 2021 in different market conditions. 3. Amounts in GBP and SEK were converted into EUR based on the exchange rate of the transaction date. 4. Initially announced as ‘Järvenpää Auertie’. 5. Partial completion of the service community initially announced as ‘Oulu Siilotie K21’. The remaining part of the building has been com- pleted after 31 December 2024 (see page 76). 31 projects completed totalling €297 million AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 74 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Disposals Location Date Selling price (€ million) Belgium 18.7 Seniorenhof Tongeren 29/04/2024 Les Jardins de la Mémoire 1 Anderlecht (Brussels) 05/07/2024 Résidence Exclusiv Evere (Brussels) 04/09/2024 Germany 18.9 Park Residenz 2 Neumünster 15/11/2024 Am Schäfersee Berlin 02/12/2024 Netherlands 33.5 Natatorium (plot of land) Velp 31/03/2024 Holland Baarn 15/07/2024 Molenenk Deventer 15/07/2024 Villa Walgaerde Hilversum 15/07/2024 United Kingdom & Channel Islands 3 26.1 Oak Lodge Chard 02/02/2024 Cherry Trees Barnsley 11/06/2024 Edingley Lodge Edingley 06/08/2024 Blenheim Ruislip 05/09/2024 St. Joseph’s Flats 2 St. Helier 19/12/2024 Sweden 3 0.4 Marmormjölet 9 (plot of land) Huddinge 12/03/2024 Total 97.6 Aedifica’s strategic asset rotation programme is based on two principles: • managing and enhancing the composition and asset quality of the portfolio, and • recycling capital that can be redeployed in quality assets offering a better return. 1. The existing sublease remains in place. The tenant redeemed the equivalent of future rent payments by a one-off lump-sum payment. 2. This divestment will be completed in 2025, after which Aedifica will receive the selling price. 3. Amounts in GBP and SEK were converted into EUR based on the exchange rate of the transaction date. 15 divestments to optimise property portfolio OULU VALJASTIE - CHILDCARE CENTRE IN OULU (FI) AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 75 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.2 Investments and disposals after 31 December 2024 New investments & projects Type Location Date Investment (€ million) Pipeline 1 (€ million) Completion Lease Operator Finland - 11 Oulu Kihokkitie Development Oulu 17/01/2025 - 3.5 Q3 2025 25 yrs - NN City of Oulu Helsinki Radiokatu Development Helsinki 26/02/2025 - 7.5 Q2 2026 24 yrs - NN City of Helsinki Total - 11 Completed projects Type Location Date Investment 2 (€ million) Lease Operator United Kingdom & Channel Islands 3 19.5 St Mary’s Lincoln Development Lincoln 22/01/2025 16.5 30 yrs - NNN North Bay Group St. Joseph’s Convent Renovation & extension St. Helier 31/01/2025 3 WAULT 22 yrs - NN Emera Finland 26 Oulu Satamatie 34 4 Development Oulu 02/01/2025 26 15 yrs – NN Multiple tenants Total 45.5 €11m in new investments 3 projects completed totalling more than €45 million 1. The amounts in this column are the budgets for projects that Aedifica will finance. 2. The amounts in this column only include the works that were carried out, except for the investment amount of the project in Lincoln, which also includes the contractual value of the plot of land. 3. Amounts in GBP were converted into EUR based on the exchange rate of the transaction date. 4. Completion of the remaining part of the service community initially announced as ‘Oulu Siilotie K21’, following a partial completion on 31 December 2024 (see page 74). HELSINKI RADIOKATU - CHILDCARE CENTRE DEVELOPMENT IN HELSINKI (FI) AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 76 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Disposals Location Date Selling price (€ million) Netherlands 7.8 Huize Ter Beegden Beegden 06/03/2025 Martha Flora Hoorn Hoorn 06/03/2025 Sweden 1 90.9 Portfolio of 22 small-scale residential care centres (‘LSS’) Various locations in Sweden 20/01/2025 Portfolio of 6 (pre-)schools Various locations in Sweden 28/02/2025 Total 98.7 30 divestments to optimise property portfolio 1. Amounts in SEK were converted into EUR based on the exchange rate of the transaction date. SHIPLEY MANOR - CARE HOME IN SHIPLEY (UK) Disposals in Sweden After 31 December 2024, Aedifica announced the divestment of its entire port- folio in Sweden. A first portfolio of 22 small- scale residential care centres (‘LSS’) with a capacity of approx. 160 residents was sold on 14 February 2025. The agreed property value amounted to SEK 576 million. The agreement for the disposal of the remai - ning portfolio including six (pre-)schools was signed on 28 February 2025. The agreed property value amounts to SEK 454 million. The transaction is expected to be comple- ted at the end of the first quarter of 2025. Aedifica divested its portfolio in Sweden because its contribution to the Group’s EPRA Earnings is limited compared to other seg- ments, thus allowing for a capital recycling opportunity. As this divestment provides additional firepower to pursue new invest- ment opportunities and refill the develop- ment programme, the proceeds will be reinvested in the coming months and enhance earnings per share. AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 77 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.3 Management of financial resources 1.3.1 Equity In 2024, Aedifica did not need to raise capital thanks to its healthy balance sheet. The total num- ber of Aedifica shares amounts to 47,550,119 and the share capital is €1,254,742,260.03. 1.3.2 Credit rating In July, S&P has reaffirmed the BBB invest- ment-grade rating with a stable outlook, reflec- ting the strength of the Group’s balance sheet and its liquidity. The stable outlook reflects the predictable rental income supported by resilient health care assets and overall long leases which should continue to generate stable cash flows over the next few years. S&P’s credit rating research is available on Aedifica’s website. 1.3.3 Financial debts During the 2024 financial year, Aedifica strengthened its financial resources by contracting long-term bank facilities (early refinancing) of €355 million with maturities between 5 and 9 years, of which €205 million are linked to sustainability KPIs. Furthermore, €235 million of bank facilities with extension options – initially maturing in 2026 – were successfully extended by one year. After 31 December 2024, €70 million maturing in 2025 was refinanced and extended by five years. In addition, Aedifica increased its issuance of short- term treasury notes by €71 million, optimising its cost of debt. The total amount of short-term treasury notes stands at €314 million, backed by committed credit facilities in case of non-renewal. COMPOSITION OF FINANCIAL DEBTS (%) 4% Investment credits 39% Term loans 13% Revolving loans 9% USPP GBP 20% Sustainable bond 3% Medium term notes 12% Short term treasury notes Undrawn bank debt Drawn bank debt Sustainable bond & long-term notes FINANCIAL DEBT MATURITY (IN € MILLION) 12 223 121 169 221 240 597 50 126 204 230 115 53 105 50 10 512 153 1,000 800 600 400 200 0 11% 4% 50% 35% 13% 52% 35% 24% 44% 32% 59% 18% 23% INTEREST RATE HEDGING 1 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 14% 52% 34% Unhedged floating rate debt Caps Swaps Fixed rate debt 1. Based on projected debt 2. Amounts in GBP were converted into EUR based on the exchange rate of 31 December 2024 (0.82735 EUR/GBP). Financial debt 2 (in € million) Committed financing Short-term treasury notes Lines Utilisation 31/12/2025 343 121 314 31/12/2026 390 221 - 31/12/2027 887 647 - 31/12/2028 561 435 - 31/12/2029 168 53 - 31/12/2030 167 62 - >31/12/2030 674 665 - Total debt as at 31 December 2024 3,191 2,204 314 As at 31 December 2024, the weighted average maturity of the drawn financial debt is 3.8 years. Available committed financing amounts to €987 million. After deduc- ting the backup for the short-term treasury notes, the available liquidity stands at €673 million. Loans contracted under Aedifica’s Sustainable Finance Framework or linked to sus- tainability KPIs amount to €1,493 million (47% of committed long-term credit lines), demonstrating the Group’s wish to further diversify its sources of financing and to integrate ESG criteria into its financial policy. The average cost of debt including commitment fees stands at 2.0% (31 December 2023: 1.9%) thanks to the interest rate hedges Aedifica had in place. As at 31 December 2024, 89.0% of financial debt is hedged against interest rate risk, i.e., the ratio of the sum of the fixed rate debt and the notional amount of derivatives divided by the total financial debt. The hedging’s weighted average maturity is 4.4 years. The chart in the centre left shows the evolution of the hedge ratio based on the projected debt. As part of its financial policy, Aedifica aims to keep its debt-to-assets ratio below 45%. As at 31 December 2024, Aedifica’s consolidated debt-to-assets ratio amounts to 41.3%. >€670m headroom on committed credit lines Taking these elements into account, the maturitydates of Aedifica’s financial debts as at 31 December 2024 are as follows: 31/12 2025 31/12 2026 31/12 2027 31/12 2028 31/12 2029 31/12 2030 >31/12 2030 31/12 2024 31/12 2025 31/12 2026 31/12 2027 31/12 2028 AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 78 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.3.4 Sustainable Finance Framework As part of our efforts to meet our CSR objectives, we are diversifying our sources of financing and integrating ESG criteria into our financial policy. In that context, we have developed a Sustainable Finance Framework 1 . The proceeds of the financial instruments issued under this framework are used exclusively for the (re)financing of sustainable buildings, energy efficiency projects and projects of a social nature. To qualify for this type of financing, the buildings or projects must meet the sustainability criteria set out in the framework, which are based on the United Nations Sustainable Development Goals (SDGs). In September 2021, Aedifica successfully priced its first benchmark sustainability bond for a total amount of €500 million. BREAKDOWN BY USE OF PROCEEDS CATEGORY 100 % Green buildings BREAKDOWN OF ELIGIBLE ASSETS (ASSETS, CAPITAL EXPENDITURES) 100 % Assets BREAKDOWN OF NEW FINANCING VS. REFINANCING 100 % Refinancing BREAKDOWN BY GEOGRAPHICAL AREA DE NL UK FI IE 33 % 17 %6% 7 % SELECTION CRITERIA Energy intensity ≤ 100 kWh/m 2 EPC label A or better 3 59 % 41 % Allocation of proceeds 2 Sustainable finance instruments issued 31/12/2024 Medium Term Note 2020 (ISIN BE6322837863) €40 million Term Loan 2021 €40 million Bond 2021 (ISIN BE6330288687) €500 million Bank loan 2022 €100 million Total outstanding amount €680 million Unallocated amount - Impact reporting Green buildings and energy efficiency Green buildings Surface Fair value Average EPC level Medium Term Note 2020 8 assets 18,000 m² €56 million A Term Loan 2021 5 assets 14,000 m² €41 million A Bond 2021 48 assets 195,000 m² €502 million A Bank loan 2022 6 assets 42,000 m² €100 million B Total 67 assets 269,000 m² €699 million Climate change adaptation The net energy use intensity (nEUI) of the selected assets is 28% below the average of the Group’s portfolio Case studies See pages 53-54 and Aedifica’s website. 1. A second party opinion on the Sustainable Finance Framework was obtained from V.E and is available on the Group’s website. 2. The allocation of proceeds as well as KPIs for sustainability-linked loans have been subject to a ‘limited assurance’ review by EY Bedrijfsrevisoren BV (see page 236). 3. These assets were selected based on their EPC label A. In most cases, these assets also meet the energy intensity requirement of ≤100 kWh/m². Assets Surface Amount EPC label A or better 3 41 assets 152,000 m² €410 million Energy intensity ≤ 100 kWh/m² 26 assets 117,000 m² €289 million Total 67 assets 269,000 m² €699 million 37 % Loans linked to sustainability KPIs amount to nearly €1.5 billion, demonstrating our efforts to integrate ESG criteria into our financial policy. Ingrid Daerden CFO AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 79 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.4 Summary of the consolidated financial statements 1.4.1 Consolidated results Consolidated income statement - analytical format 31/12/2024 31/12/2023 (x €1,000) Rental income 338,138 314,174 Rental-related charges -157 -1,134 Net rental income 337,981 313,040 Operating charges -47,725 -47,230 Operating result before result on portfolio 290,256 265,810 EBIT margin (%) 85.9% 84.9% Financial result excl. changes in fair value -50,906 -47,179 Corporate tax -4,140 1,305 Share in the profit or loss of associates and joint ventures accounted for using the equity method in respect of EPRA Earnings 21 318 Non-controlling interests in respect of EPRA Earnings -650 -675 EPRA Earnings (owners of the parent) 234,581 219,579 Denominator (IAS 33) 47,550,119 43,706,129 EPRA Earnings (owners of the parent) per share (€/share) 4.93 5.02 EPRA Earnings 234,581 219,579 Changes in fair value of financial assets and liabilities -18,708 -50,878 Changes in fair value of investment properties 15,195 -143,636 Gains and losses on disposals of investment properties 374 -856 Tax on profits or losses on disposals 0 0 Goodwill impairment -30,235 -26,072 Deferred taxes in respect of EPRA adjustments 3,826 24,314 Share in the profit or loss of associates and joint ventures accounted for using the equity method in respect of the above -592 -574 Non-controlling interests in respect of the above 390 2,658 Roundings 0 0 Profit (owners of the parent) 204,831 24,535 Denominator (IAS 33) 47,550,119 43,706,129 Earnings per share (owners of the parent - IAS 33 - €/share) 4.31 0.56 OULU VALJASTIE - CHILDCARE CENTRE IN OULU (FI) AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 80 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Consolidated rental income (x €1,000) 2024.01 - 2024.03 2024.04 - 2024.06 2024.07- 2024.09 2024.10 - 2024.12 2024.01 - 2024.12 2023.01 - 2023.12 Var. (% on a like-for- like basis 1 Var. (%) 2 Belgium 17,440 17,387 17,392 17,419 69,638 73,250 +1.3% -4.9% Germany 15,233 15,880 15,956 16,113 63,182 61,160 +1.2% +3.3% Netherlands 10,232 10,449 10,143 10,105 40,929 38,203 +3.2% +7.1% United Kingdom 17,592 17,872 19,093 20,206 74,763 64,793 +4.2% +12.3% Finland 15,050 15,008 15,330 15,833 61,221 54,269 +3.8% +12.8% Sweden 1,198 1,188 1,479 1,473 5,338 4,226 +6.5% +25.9% Ireland 5,230 5,947 5,853 5,913 22,943 18,006 +3.3% +27.4% Spain 31 31 31 31 124 267 - - Total 82,006 83,762 85,277 87,093 338,138 314,174 +3.3% +7.6% The consolidated turnover (consolidated rental income) for the 2024 financial year amounted to €338.1 million, an increase of approx. 8% com- pared to the turnover of the previous financial year (€314.2 million). The increase in consolidated rental income can be attributed to the growth of Aedifica’s portfolio through the delivery of development projects from the investment programme and is supported by the indexation of rental income. The 3.3% like-for-like variation in rental income can be broken down into +3.1% indexation of rents, -0.4% rent reversion and contingent rents, and +0.6% exchange rate fluctuation. Taking into account the rental-related charges (€0.1 million), the net rental income amounts to €338.0 million (+8% compared to 31 December 2023). The property result amounts to €338.7 million (31 December 2023: €312.9 million). This result, less other direct costs, leads to a property opera- ting result of €326.2 million (31 December 2023: €301.7 million). This implies an operating margin of 96.5% (31 December 2023: 96.4%). After deducting overheads of €35.1 million (31 December 2023: €35.7 million) and taking into account other operating income and charges, the operating result before result on the portfolio has increased by 9% to reach €290.3 million (31 December 2023: €265.8 million). This implies an EBIT margin of 85.9% (31 December 2023: 84.9%). Taking into account the cash flows generated by hedging instruments, Aedifica’s net interest charges amount to €46.7 million (31 December 2023: €45.0 million). Taking into account other income and charges of a financial nature, and excluding the net impact of the revaluation of hedging instruments to their fair value (non-cash movements accounted for in accordance with IAS 39 are not included in the EPRA Earnings as explained below), the financial result excl. changes in fair value represents a net charge of €50.9 million (31 December 2023: €47.2 million). Corporate taxes are composed of current taxes, deferred taxes, tax on profits or losses on dispo - sals and exit tax. On 31 December 2024, the taxes included in the EPRA Earnings (31 December 2024: charge of €4.1 million; 31 December 2023: income of €1.3 million) include a non-recurring refund of corporate taxes in the Netherlands fol- lowing the obtention of the Fiscal Investment Institutions (Fiscale Beleggingsintellingen, ‘FBI’) regime for the year 2022 amounting to approx. €4.2 million (see page 82). As a reminder, also in 2023 current taxes included a non-recurring refund of corporate taxes in the Netherlands of approx. €9.0 million for the period from 2016 to 2021. Since 1 February 2024, the UK subsidiaries benefit from a REIT regime (see page 82). The share in the result of associates and joint ventures mainly includes the result of the participation in Immobe NV (consolidated since 31 March 2019 using the equity method). EPRA Earnings (see page 196) reached €234.6 million (31 December 2023: €219.6 mil- lion), or €4.93 per share (31 December 2023: €5.02 per share), based on the weighted average number of shares outstanding and taking into account the higher number of shares resulting from capital increases. This result (absolute and per share) is higher than the budgeted amount of >€4.90 per share announced in the Q3 interim financial report. 1. The variation on a like-for-like basis is shown for each country in the local currency. The total variation on a like-for-like basis is shown in the Group currency. 2. The variation is shown for each country in the local currency. The total variation is shown in the Group currency. +3.3% like-for-like variation in rental income AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 81 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION The income statement also includes elements with no monetary impact (i.e.,non-cash) that vary in line with external market parameters. These consist amongst others of changes in the fair value of investment properties (accounted for in accordance with IAS 40), changes in the fair value of financial assets and liabilities (accounted for in accordance with IAS 39), other results on portfolio and deferred taxes (arising from IAS 40): • Over the entire financial year, the combined changes in the fair value of marketable investment properties 1 and development projects represent an increase of €15.2 million for the period (31 December 2023: a decrease of €143.6 million). • In order to limit the interest rate risk stemming from the financing of its investments, Aedifica has put in place long-term hedges which allow for the conversion of variable-rate debt to fixed- rate debt, or to capped-rate debt. Changes in the fair value of financial assets and liabilities taken into the income statement as at 31 December 2024 represent a charge of €18.7 million due to the decrease in long-term interest rates (31 December 2023: charge of €50.9 million). • Gains and losses on disposals of invest- ment properties (31 December 2024: gain of €0.4 million; 31 December 2023: loss of €0.9 million) are also taken into account here. • Impairment of goodwill (charge of €30.2 mil- lion as at 31 December 2024, compared to a charge of €26.1 million on 31 December 2023) resulting from the impairment testing on 31 December 2024. The estimated reco - verable amount is negatively impacted by changed budget assumptions which now take into account the asset rotation plan and an updated pipeline. • Deferred taxes in respect of EPRA adjustments (income of €3.8 million as at 31 December 2024, compared to an income of €24.3 million on 31 December 2023) arose from the recogni - tion at fair value of buildings located abroad, in conformity with IAS 40. In 2024, deferred taxes were positively impacted by obtaining REIT sta- tus in the UK. Taking into account the non-monetary elements described above, the profit (owners of the parent) amounts to €204.8 million (31 December 2023: €24.5 million). The basic earnings per share (as defined by IAS 33) is €4.31 (31 December 2023: €0.56). The adjusted statutory result as definedin the annex to the Royal Decree of 13 July 2014 regarding RRECs, amounts to €203.9 million (31 December 2023: €186.3 million) – as calculated in the Abridged Statutory Financial Statements on page 193 – or €4.29 per share (31 December 2023: €4.25 per share). Fiscal Investment Institutions (‘FBI’) in the Netherlands In September 2022, the Dutch government announced its intention to exclude direct investments in real estate from the Fiscal Investment Institutions (Fiscale Belegging- sinstellingen, ‘FBI’) regime as from 1 January 2024. The entry into force of this measure was postponed to 1 January 2025. Although Aedifica believed it met the condi - tions for claiming the FBI regime and sub- mitted applications to the Dutch tax authori- ties to that effect, the Group opted as a matter of prudence for a common law tax burden on the results of its Dutch subsidiaries from the start of its operations in the Netherlands in 2016. Every year, the Group claimed the application of this regime. At the end of 2022, the Group finally received confirmation that the FBI requirements were met for the past fiscal years. Aedifica decided to reverse the accrued tax provisions of previous years in the income statement upon receipt of the final corporate tax assessment. In 2023, approx. €9.0 million in refunds for the period from 2016 to 2021 was received and recognised in the income statement. The final corporate tax assessment for the year 2022 was received early 2024. The accrued tax provisions for 2022 amounted to approx. €4.2 million. Excluding one-off tax refunds, EPRA Earnings per share increased from €4.82 in 2023 to €4.85 in 2024. For the years 2023 and 2024, no provisions for corporate income tax have been made in the Dutch subsidiaries. From 2025 onwards, based on the current portfolio, the current taxes for the Dutch subsidiaries are estimated to be around €5.0 million and will reduce EPRA Earnings by approx. 10 eurocents per share. UK REIT regime To make Aedifica’s investments in the United Kingdom more attractive and increase the contribution of UK opera- ting cash flows to the Group’s results, Aedifica decided to operate in the UK under the REIT regime. In this context, Aedifica has transferred its real estate activities in the UK, Jer- sey and the Isle of Man to the recently incorporated AED UK Holdings Ltd. This wholly owned non-listed entity now holds the shares of all UK subsidiaries within the Aedifica group. On 30 January 2024, the holding notified HMRC of its intention to become a REIT. As a result, the accounting period under the REIT regime began on 1 February 2024. The properties located in Jersey and the Isle of Man do not benefit from the UK REIT regime. Under REIT legislation, companies are exempt from UK corporation tax on UK property investment income and gains on UK property. However, REITs must distribute 90% of underlying tax-exempt property income (not gains) to sharehol- ders within twelve months. These dis- tributions are subject to a 20% withhol- ding tax. Following the double tax treaty between the United Kingdom and Bel- gium, the net impact of the withholding tax amounts to only 15%. AMADEUSHUIS ALPHEN AAN DEN RIJN - CARE RESIDENCE IN ALPHEN A/D RIJN (NL) 1. That change corresponds to the sum of the positive and negative variations of the fair value of the buildings as at 31 December 2023 or the time of entry of new buildings in the portfolio, and the fair value estimated by the valuation experts as at 31 December 2024. It also includes ancillary acquisition costs and changes in the right of use of plots of land and the land reserve. AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 82 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.4.2 Consolidated balance sheet Consolidated balance sheet (x €1,000) 31/12/2024 31/12/2023 Investment properties including assets classified as held for sale 6,218,139 5,848,515 Other assets included in debt-to-assets ratio 191,695 254,372 Other assets 53,990 73,924 Total assets 6,463,824 6,176,811 Equity Equity excl. changes in fair value of hedging instruments 3,599,761 3,511,954 Effect of the changes in fair value of hedging instruments 43,214 63,908 Non-controlling interests 5,122 5,039 Equity 3,648,097 3,580,901 Liabilities included in debt-to-assets ratio 2,649,953 2,421,708 Other liabilities 165,774 174,202 Total equity and liabilities 6,463,824 6,176,811 Debt-to-assets ratio (%) 41.3% 39.7% As at 31 December 2024, investment proper- ties including assets classified as held for sale represent 96% (31 December 2023: 95%) of the assets recognised on Aedifica’s balance sheet, valued in accordance with IAS 40 1 at €6,218 mil- lion (31 December 2023: €5,849 million). This heading includes: • Marketable investment properties inclu- ding assets classified as held for sale (31 December 2024: €6,035 million; 31 December 2023: €5,588 million) increase in the amount of approx. €448 million. • Development projects (31 December 2024: €96 million; 31 December 2023: €169 mil- lion) consist primarily of investment properties under construction or renovation. They are part of a multi-annual investment programme (see Appendix 4). • The right of use related to plots of land held in ‘leasehold’ in accordance with IFRS 16 (31 December 2024: €74 million; 31 December 2023: €73 million). • A land reserve amounting to €13 million (31 December 2023: €19 million). The item ‘Other assets included in debt-to- assets ratio’ includes, amongst other things, goodwill amounting to €87.4 million ari - sing from the acquisition of Hoivatilat – which is the positive difference between the price paid for the shares of Hoivatilat Oyj and the accounting value of the acquired net assets – and holdings in associated companies and joint ventures. This mainly includes the 25% stake in Immobe NV which amounts to €31.1 million as at 31 December 2024 (31 December 2023: €35.5 million). The other assets included in the debt-to-as- sets ratio represent 3% of the total balance sheet (31 December 2023: 4%). The other assets (31 December 2024: €54.0 mil- lion; 31 December 2023: €73.9 million) include the fair value of hedging instruments. Since Aedifica’s incorporation, its capital has increased as a result of various real estate acti- vities (contributions, mergers, etc.) and capital increases in cash. As of 31 December 2024 2 , the Company’s capital amounts to €1,255 million (31 December 2023: €1,255 million). Equity (also called net assets), which repre- sents Aedifica’s intrinsic net value and takes into account the fair value of its investment portfolio, amounts to: • €3,600 million excluding the effect of the changes in fair value of hedging instruments (31 December 2023: €3,512 million, including the €166.7 million dividend distributed in May 2024); • or €3,643 million taking into account the effect of the changes in fair value of hedging ins- truments (31 December 2023: €3,576 million, including the €166.7 million dividend distri - buted in May 2024). 1. The investment properties are represented at their fair value as determined by the valuation experts (Cushman & Wakefield Belgium NV/SA, Stadim BV/SRL, Savills Advisory Services GmbH & Co. KG, C&W (UK) LLP German Branch, Cushman & Wakefield Netherlands BV, Capital Value Taxaties BV, Knight Frank LLP, REnium Advisors Oy, Cushman & Wakefield Swe - den AB, CBRE Unlimited Company and Jones Lang LaSalle España SA). 2. IFRS requires that the costs incurred to raise capital are recognised as a decrease in the capital reserves. AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 83 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION As at 31 December 2024, liabilities included in the debt-to-assets ratio (as defined in the Royal Decree of 13 July 2014 on RRECs) reached €2,650 million (31 December 2023: €2,422 mil- lion). Of this amount, €2,514 million (31 December 2023: €2,280 million) is effectively drawn on the Company’s credit lines. Aedifica’s consoli- dated debt-to-assets ratio amounts to 41.3% (31 December 2023: 39.7%). Other liabilities of €165.8 million (31 December 2023: €174.2 million) represent the deferred taxes (31 December 2024: €133.2 million; 31 December 2023: €138.7 million), accrued charges and deferred income (31 December 2024: €21.6 million; 31 December 2023: €25.8 million) and the fair value of hedging instruments (31 December 2024: €10.9 million; 31 December 2023: €9.8 million). Expert valuations up again Throughout 2024, after five consecutive quarters of negative portfolio valuations, expert valuations of marketable investment properties were up again. They increased by 0.38% in Q4 and 0.71% YTD (on a like-for-like basis, excluding any impact from currency translation). The most pronounced increase in portfolio valuation was recorded in the UK due to the strong operational performance of tenants, backed by the underlying resident occupancy of 92% for the stabilised portfolio at the end of September and a strong rental coverage. As at 30 September 2024, the rent cover 1 over twelve months on stabilised assets of Aedifica’s UK portfolio reached 2.4x. 1. Rent cover calculated as the tenants’ EBITDARM for the last 12 months divided by the rent for the same period. 0.5% 0.0% -0.5% -1.0% -1.5% -1.2% -0.8% -0.5% -0.2% -0.6% +0.02% +0.12% +0.12% +0.38% Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 EVOLUTION OF EXPERT VALUATIONS PER QUARTER ON A LIKE-FOR-LIKE BASIS (IN %) AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 84 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Net asset value per share (in €) 31/12/2024 31/12/2023 1 Net asset value excl. changes in fair value of hedging instruments 75.70 73.86 Effect of the changes in fair value of hedging instruments 0.91 1.34 Net asset value 76.61 75.20 Number of shares on the stock market 47,550,119 47,550,119 1.4.3 Net asset value per share Excluding the non-monetary effects (i.e., non-cash) of the changes in fair value of hedging instruments 2 , the net asset value per share 1 based on the fair value of investment properties amounted to €75.70 as at 31 December 2024 (31 December 2023: €73.86 per share). 1.4.4 Consolidated cash flow statement 3 The consolidated cash flow statement included in the attached Consolidated Finan- cial Statements shows total cash flows for the period of +€0.2 million (31 December 2023: +€4.4 million), which is made up of net cash from operating activities of +€248.5 mil- lion (31 December 2023: +€229.5 million), net cash from investing activities of -€259.6 million (31 December 2023: -€258.8 million), and net cash from financing activities of +€11.3 million (31 December 2023: +€33.6 million). 1.4.5 Appropriation of the results The Board of Directors proposes to the Annual General Meeting of 13 May 2025 to approve Aedi- fica NV/SA’s Annual Accounts of 31 December 2024 (of which a summary is provided in the chapter ‘Abridged Statutory Financial Statements’ on page 192). The Board of Directors also proposes to distribute a gross dividend of €3.90 for the 2024 finan- cial year 4 , resulting in a statutory pay-out ratio of 91%. The dividend will be paid in May 2025 after the annual accounts have been approved by the Annual General Meeting of 13 May 2025. The net dividend per share after deduction of 15% 5 with- holding tax will amount to €3.315. The statutory result for the 2024 financial year will be submitted as presented in the table on page 193. The proposed dividend respects the require- ments laid down in Article 13, § 1, paragraph 1 of the Royal Decree of 13 July 2014 regarding RRECs considering it is greater than the required minimum pay-out of 80% of the adjusted statutory result, after deduction of the debt reduction over the financial year. 1. Recall that IFRS requires the presentation of the annual accounts before appropriation. The net asset value of €73.86 per share as at 31 December 2023 (as published in the 2023 Annual Report) thus included the gross dividend distributed in May 2024. 2. The effect of the changes in fair value of hedging instruments of +€0.91 per share as at 31 December 2024 is the impact in equity of the fair value of hedging instruments, which is positive for €43.2 million, mainly booked in the assets on the balance sheet. 3. See page 139 for more information about the consolidated cash flow statement. 4. See page 91 for more information about Aedifica’s 2024 dividend. 5. As a RREC investing more than 80% of its portfolio in residential healthcare real estate situated in a member state of the Euo- pean Economic Area, its shareholders benefit from a reduced withholding tax rate of only 15%. Following Brexit, a transition regime has been provided for UK assets acquired prior to 1 January 2021 so that they can be included in the calculation of the 80% threshold until the end of the 2025 financial year. Therefore, if legislation does not change in the meantime and no major changes happen in the Group’s portfolio, Aedifica estimates that its shareholders will continue to benefit from the reduced withholding tax rate of 15% on dividends paid or attributed until 31 December 2025. See section 4.4.2 of the ‘Standing Documents’ for more information on the tax treat - ment of dividends, as well as section 6. ‘Regulatory changes’ of the ‘Risk factors’ chapter. VILLA FLORIAN - CARE RESIDENCE IN BLARICUM (NL) AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 85 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1.5 EPRA key performance indicators 31/12/2024 31/12/2023 EPRA Earnings Earnings from operational activities. EPRA Earnings represent the profit (attributable to owners of the Parent) after corrections recommended by the EPRA. x €1,000 € / share 234,581 4.93 219,579 5.02 EPRA Net Reinstatement Value Net Asset Value adjusted in accordance with the Best Practice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 1 January 2020. The EPRA NRV assumes that entities never sell assets and provide an estimation of the value required to rebuild the entity. x €1,000 € / share 4,111,151 86.46 4,002,279 84.17 EPRA Net Tangible Assets Net Asset Value adjusted in accordance with the Best Practice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 1 January 2020. The EPRA NTA assumes that the Company acquires and sells assets, which would result in the realisation of certain unavoidable deferred taxes. x €1,000 € / share 3,643,666 76.63 3,527,234 74.18 EPRA Net Disposal Value Net Asset Value adjusted in accordance with the Best Prac- tice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 1 January 2020. EPRA NDV represents the value accruing to the company’s shareholders under an asset disposal scenario, resulting in the settlement of deferred taxes, the liquidation of financial instru - ments and the recognition of other liabilities for their maximum amount, net of any resulting tax. x €1,000 € / share 3,670,625 77.19 3,585,631 75.41 EPRA Net Initial Yield * (NIY) Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property ope - rating expenses, divided by the market value of the property, increased with (estimated) purchaser’s costs. % 5.3% 5.3% EPRA Topped-up NIY * This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods or other unexpired lease incentives such as discounted rent periods and step rents. % 5.5% 5.4% EPRA Vacancy Rate * Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio. % 0.1% 0.1% EPRA Cost Ratio (including direct vacancy costs) Administrative & operating costs (including costs of direct vacancy) divided by gross rental income. % 14.2% 15.4% EPRA Cost Ratio (excluding direct vacancy costs) Administrative & operating costs (excluding costs of direct vacancy) divided by gross rental income. % 14.1% 15.4% EPRA LTV The EPRA LTV represents the Company’s indebtedness compared to the market value of its assets % 40.6% 39.1% +7% y/y increase in EPRA Earnings AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 86 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2. Outlook for 2025 The outlook presented below has been deve- loped by the Board of Directors as part of the preparation of the budget for the 2025 financial year on a comparable basis with the Company’s historical financial information and consistent with the Company’s accounting policies. The Board of Directors continues to pay close attention to the shifting economic, financial and political context, as well as the associated impact on the Group’s activities. Aedifica’s 2024 results and balance sheet have not only confirmed the resilience of healthcare real estate, but also armed the Group for a new financial year that could offer interesting opportu- nities as there are signs that the market is entering a new cycle. Supported by rising occupancy rates and impro - ving rent covers, healthcare operators are again in a position to think about growth and addressing the ageing of Europe’s population. Moreover, this demographic trend is expected to accelerate in the second half of the twenties, driving demand for additional capacity as more people age, live longer and develop age-related conditions that require specific care. With a strong balance sheet and a well-positioned portfolio, Aedifica is in excellent shape to respond. 2.1 Assumptions External factors a. The indexation rates of rents and charges vary by country and in most countries are linked to the (health) consumer price index. Indexation of the UK healthcare portfolio is generally based on the retail price index with contractual floors and caps. In Germany, contractual restrictions apply to the indexation mechanism. Indexa- tion of rental income in Germany is usually capped or takes effect after reaching a certain threshold. b. Valuation of investment properties: no assumptions are made regarding fluctuations in the portfolio’s fair value. Changes in the fair value of the portfolio have no impact on EPRA Earnings. c. Average interest rate after capitalised inte- rests: 2.1% based on the Euribor rate curve of 10 February 2025, bank margins, and hedges currently in place. The hedge ratio is estimated at approx. 87% by the end of 2025. d. Foreign exchange: future fluctuations in the exchange rate may affect the value of the investment properties in the United Kingdom and Sweden, the rental income and the net result of Aedifica, which are all expressed in euro. In the forecasts below, the following exchange rates have been applied: - 0.870 EUR/GBP - 11.765 EUR/SEK Internal factors a. Rents: rent forecasts are based on current contractual rates and take indexation into account. The projected rental income includes an assumption of organic growth of approx. 2.7% mainly due to CPI-linked indexation and a non-recurring catch-up of contingent rents of approx. €3.8 million, and assumptions regar- ding future portfolio additions related to the completion of buildings currently under deve- lopment for which the timing of delivery cannot be determined with certainty. b. Real estate charges: the assumptions concer- ning real estate charges relate to internal and external real estate management costs (mana- gement fees, etc.), repair and maintenance costs, general taxes and property tax, and insurance. c. Operating charges and overheads: this fore - cast includes, amongst other things, employee benefits, IT, office, consultancy services, admi- nistrative and accounting fees, and fees directly associated with the listing of the Company’s shares. d. Investment programme: - Delivery of projects from the committed pipe- line of €110 million. - New investments are estimated at €250 mil- lion, split between acquisitions generating immediate rental income and development projects. The contribution of the hypothetical investments to the 2025 result will be limited during the year, depending on the timing of the acquisitions. Together with the estimated deliveries from the committed pipeline, Aedifica expects to remain a net investor in 2025. e. Financial assumptions: - Debt-to-assets ratio around 42% (without taking into account portfolio valuations), which is well within the Company’s finan- cial strategy to keep the debt-to-assets ratio below 45%. - Changes in the fair value of hedging instru - ments for financial debts (IAS 39) are not modelled as they have no impact on EPRA Earnings, and are not estimable. Thus, these changes have no impact on the projections presented below. f. Divestment assumption: - Disposal of non-strategic assets during the year for approx. €190 million. g. Taxes: Taxes mainly include tax on profits of consolidated subsidiaries, tax on profits gene- rated by Aedifica NV/SA abroad and Belgian tax on Aedifica NV/SA’s non-deductible expen- ditures. - Dutch subsidiaries: Aedifica’s budget for the 2025 financial year assumes an increase in current taxes as a result of the abolition of the FBI regime in the Netherlands. Current taxes for the Dutch subsidiaries for the 2025 financial year are estimated at approximately €5 million (see page 82). AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 87 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2.2 Financial projections On the basis of the currently available informa- tion and the projected real estate portfolio, and without any unforeseen developments, the Board of Directors estimates the rental income for the 2025 financial year to reach €355 million. This will result in €238 million in EPRA Earnings (€5.01 per share), a 1.6% increase compared to 2024. The gross dividend for 2025, payable in May 2026, is expected to increase by 2.5% to €4.00 per share, representing a (consolidated) pay-out ratio of 80%. Under current tax legislation, the Company’s shareholders will continue to benefit from the reduced withholding tax rate of 15% on dividends paid or attributed until 31 December 2025 (see page 91). Outlook for 2025 Estimated rental income €355 million EPRA Earnings €238 million EPRA Earnings per share €5.01 Gross dividend per share €4.00 OULU TAHTIMARSSI (HIUKKAVAARA) - SCHOOL IN OULU (FI) AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 88 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 3. Stock market performance Aedifica offers investors an alternative to direct real estate investments, combining all the benefits of optimal real estate income with a limited risk profile. The Group’s investment strategy offers shareholders attractive returns, a recurring divi- dend and opportunities for growth and capital appreciation at the same time. Since 2020, the Aedifica share is included in the BEL 20, the leading share index of the 20 most important shares on Euronext Brussels, confir- ming the market’s confidence in Aedifica’s invest- ment strategy. In addition, the share has also been trading on Euronext Amsterdam since November 2019. This secondary listing and the inclusion in the BEL 20 not only ensure a greater visibility, but also increases the liquidity of the share on the stock exchange. Moreover, since early 2023, Aedifica is also included in the BEL ESG, a new index launched by Euronext Brussels. The index identifies and tracks the 20 listed companies that perform best on ESG criteria, based among other things on their Sustainalytics Risk Rating. 3.1 Stock price and volume Aedifica’s shares (AED) have been quoted on Euronext Brussels since October 2006. Aedifica has also been trading on Euronext Amsterdam via a secondary listing since November 2019. Aedifica is registered in the BEL 20 Index with a weighting of approx. 2.6% (31 December 2024). In addition, the Aedifica share is also included in the EPRA, GPR 250, GPR 250 REIT and Stoxx Europe 600 indices. The share price fluctuated between €51.65 and €65.75 over the course of 2024 and closed the year at €56.20, a decrease of approx. 7% com- pared to 31 December 2023 (€63.65). Based on the stock price as at 31 December 2024, Aedifica shares have: • a discount of 25.8% as compared to the net asset value per share excluding changes in fair value of hedging instruments; • a discount of 26.6% as compared to the net asset value per share. Between Aedifica’s IPO (after deduction of the coupons which represented the preferen- tial subscription rights or the priority alloca- tion rights issued as part of capital increases) and 31 December 2024, Aedifica’s stock price increased by 66%, as compared to an increase of 2% for the BEL 20 index and a decrease of 40% for the EPRA Europe index over the same period. The average daily volume of the Aedifica share was approx. €3,716,000 or approx. 63,700 shares, resulting in a velocity of 34.1%. Aedifica continues its efforts to further broaden its investor base by regularly participating in road shows and events for both institutional and private investors. The valuation creation chart on page 90 shows the evolution of Aedifica’s market capitalisation from its IPO in 2006 to 31 December 2024 after deducting the cumulative dividend payments. We are honoured that Aedifica has been included from the outset in the new BEL ESG Index. This is a great reward for the CSR efforts our team has made in recent years. Delphine Noirhomme Investor Relations Manager Euronext Brussels & Amsterdam ISIN code: BE0003851681 Trading: continuous 100% 80% 60% 40% 20% 0% -20% -40% PREMIUM AND DISCOUNT OF SHARE PRICE COMPARED TO THE NET ASSET VALUE PER SHARE 31/12/2006 31/12/2007 31/12/2008 31/12/2009 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/12/2022 31/12/2023 31/12/2024 AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 89 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Aedifica share 31/12/2024 31/12/2023 Share price at closing (in €) 56.20 63.65 Net asset value per share excl. changes in fair value of hedging instruments (in €) 1 75.70 73.86 Premium (+) / Discount (-) excl. changes in fair value of hedging instruments -25.8% -13.8% Net asset value per share (in €) 76.61 75.20 Premium (+) / Discount (-) -26.6% -15.4% Market capitalisation 2,672,316,688 3,026,565,074 Free float 2 100.0% 100.0% Total number of shares on the stock market 47,550,119 47,550,119 Total number of treasury shares 8,067 277 Number of shares outstanding after deduction of the treasury shares 47,542,052 47,549,842 Weighted average number of shares outstanding (IAS 33) 47,550,119 43,706,129 Number of dividend rights 3 47,550,119 43,862,078 Denominator for the calculation of the net asset value per share 47,550,119 47,550,119 Average daily volume 63,669 67,626 Velocity 4 34.1% 40.1% Gross dividend per share (in €) 5 3.90 3.80 Gross dividend yield 6 6.9% 6.0% 1. Recall that IFRS requires the presentation of the annual accounts before appropriation. The net asset value of €73.86 per share as at 31 December 2023 (as published in the 2023 Annual Report) thus included the gross dividend distributed in May 2024. 2. Percentage of the capital of a company held by the market, according to the definition of Euronext. See press release of 9 October 2024 and section 3.4 below. 3. Based on the rights to the dividend for the shares issued during the year. 4. Annualised total volume of exchanged shares divided by the total number of shares listed on the market, according to the definition of Euronext. 5. 2024: dividend that will be proposed to the Annual General Meeting. 6. Gross dividend per share divided by the share price at closing. 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 MARKET CAPITALISATION (IN € MILLION) 31/12/2006 31/12/2007 31/12/2008 31/12/2009 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/12/2022 31/12/2023 31/12/2024 VALUE CREATION CHART (IN € MILLION) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 IPO market cap 23 Oct. 2006 SPOs Other capital increases Value creation Cumulative dividend since IP Market cap 31 Dec. 2024 TOTAL RETURN 700 600 500 400 300 200 100 0 31/12/2006 31/12/2007 31/12/2008 31/12/2009 31/12/2010 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/12/2022 31/12/2023 31/12/2023 31/12/2024 Aedifica total return EPRA Belgium total return EPRA Europe total return AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 90 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 3.2 Dividend For the 2024 financial year, Aedifica’s Board of Directors proposes a gross dividend of €3.90 per share, resulting in a statutory pay-out ratio of 91%. The dividend will be paid out in May 2025, following the approval of the annual accounts by the Annual General Meeting of 13 May 2025. As a RREC investing more than 80% of its portfolio in residential healthcare real estate located in a member state of the European Economic Area, the withholding tax on dividend for Aedifica’s investors amounts to only 15% (see section 3.3). The total net dividend per share after deduction of the withholding tax of 15% will amount to €3.315. Coupon Period Ex-coupon date Est. payment date Gross dividend Net dividend 35 01/01/2024–31/12/2024 15/05/2024 as from 20/05/2025 €3.90 €3.315 3.3 Withholding tax In Belgium, shareholders of RRECs benefit from a reduced withholding tax on dividends of 15% (instead of the standard rate of 30%), provided that at least 80% of the company’s real estate portfolio is (directly or indirectly) invested in real estate properties which are located in a member state of the European Economic Area and which are exclusively or primarily destined for care and housing units suited for healthcare. Aedifica moni- tors this threshold in line with the guidelines from the Belgian government. Aedifica shareholders can again benefit from this reduced rate for their 2024 dividend as more than 80% of the company’s portfolio meets those conditions. Following Brexit, a transition regime has been provided for UK assets acquired prior to 1 January 2021 so that they can be included in the cal- culation of the 80% threshold until the end of the 2025 financial year. Therefore, if legislation does not change in the meantime and no major changes happen in the Group’s portfolio, Aedi- fica estimates that its shareholders will conti - nue to benefit from the reduced withholding tax rate of 15% on dividends paid or attributed until 31 December 2025. For more information on the 80% threshold for the reduced withholding tax on dividends, see page 251. 1. Prorata of the €4.60 dividend (18 months) over 12 months. 2. Outlook for 2025 (see page 88). GROSS DIVIDEND (€/SHARE) 4.00 3.80 3.60 3.40 3.20 3.00 2.80 2.60 2.40 2.20 2.00 1.80 1.60 1.40 1.20 1.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 3.70 3.80 4.00 2 3.90 3.40 3.07 1 2.80 2.50 2.25 2.10 2.00 1.90 1.86 1.86 1.821.82 1.80 1.71 1.48 €3.90/share proposed gross dividend for 2024 15% reduced withholding tax rate AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 91 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 3.4 Shareholding structure The table below lists Aedifica’s shareholders hol- ding more than 5% of the voting rights (based on the number of shares held by the shareholders concerned as at 7 October 2024; Aedifica has not received any transparency notifications after that date). Declarations of transparency and control strings are available on Aedifica’s website. # of voting rights Date of the notification % of the total number of voting rights BlackRock, Inc. 3,496,568 07/10/2024 7.35% Other shareholders 92.65% Total 100% According to Euronext’s definition, the free float is 100%. The pie chart below breaks down Aedi - fica’s diversified shareholder base geographi- cally. Around a quarter of shareholders are retail shareholders, while three quarters are institutional shareholders. 3.5 Shareholder’s calendar 1 Financial calendar Interim results 31/03/2025 29/04/2025 – 17:40 CET Annual General Meeting 2025 13/05/2025 Payment dividend relating to the 2024 financial year As from 20/05/2025 Coupon 35 – ex-coupon date 15/05/2025 2024 Environmental Data Report June 2025 Half year results 30/06/2025 30/07/2025 – 07:30 CET Interim results 30/09/2025 28/10/2025 – 17:40 CET Annual press release 31/12/2025 February 2026 2025 Annual Financial Report March 2026 Annual General Meeting 2026 12/05/2026 INTERNATIONAL & DIVERSIFIED SHAREHOLDER BASE 2 SENIORENQUARTIER GERA - CARE HOME IN GERA (DE) 36% Belgium 14% United States 8% Netherlands 7% United Kingdom 6% Luxemburg 4% Ireland 4% France 3% Germany 13% Other 5% Unidentified 1. These dates are subject to change. 2. Based on a shareholder identification carried out on 31 December 2024. AEDIFICAannual report 2024 - BUSINESS REVIEW - financial review 92 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW Portfolio Partners Organisation Financial review CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ‘Both children and staff are more than happy with the new childcare centre. After all, they themselves were involved in the design.’ ‘Both children and staff are more than happy with the new childcare centre. After all, they themselves were involved in the design.’ Governance statement Corporate AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 93 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 99% attendance rate Board and committee meetings New Anti-tax evasion Policy & AI Policy Compliance training for all employees, members of the Executive Committee and Directors Revised remuneration policy to further align shareholder interests As a reference player in the European listed healthcare real estate sector, Aedifi ca attaches great importance to transparent, ethical and sound gover- nance of the Company based on the conviction that this contributes to sustai- nable value creation in the long term for all of Aedifi ca’s stakeholders. The Board of Directors shall ensure that the corporate governance principles and processes developed for this purpose are appro- priate for the Company at all times and comply with the applicable corporate governance regulations and standards. At the end of 2021, Aedifi ca’s local Finnish team completed a state-of-the-art childcare centre in Oulu. Since then, 150 children are being taken care of there on a daily basis in eight groups. Both child- ren and staﬀ are more than happy with the new building. After all, they themselves were involved in the design. At the children’s suggestion, a trampoline was included in the garden and a climbing wall was installed inside. The staﬀ ’s wishes were more practi- cal: spaces that can be functionally adapted accor- ding to any needs, suﬃ cient sanitary facilities and ‘mud rooms’ where they can easily change clothes when there is snow outside. The childcare centre is surrounded by a playground and an adventure forest. The façade refl ects the architecture of the nearby school, allowing the buil- ding to blend seamlessly with its surroundings. ‘Valjastie’ childcare centre in Oulu (Finland) • Investment: approx. €5 million • In-house development completed in November 2021 • Public operator: city of Oulu • Aediﬁ ca’s local team was assigned the project after winning a public tender AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 94 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1. See also section 3 ‘Ethics, compliance and integrity’ on page 70 for more information about the Code of Conduct and certain underlying policies. CORPORATE GOVERNANCE STATEMENT This chapter provides an overview of the rules and principles on which the Company organises its corporate governance. These rules for transparent, ethical and sustai - nable governance aimed at long-term value creation for all stakeholders (shareholders, tenants and their residents, employees, the com- munity and the environment) are also reflected in Aedifica’s internal policies 1 including: • Articles of Association • Corporate Governance Charter • Code of Conduct, incorporating by reference: - Dealing Code - Speak Up Policy - Anti-Bribery and Corruption Policy - Internal Privacy Policy - Human Rights Policy - Environmental Policy - Charter for Responsible Supplier Relations - Social Media Policy - Anti-Money Laundering Policy - Tax-Evasion Policy - Artificial Intelligence Policy • Remuneration Policy 1. Governance model and structure Aedifica has opted for a monistic or one-tier gover- nance structure as stipulated in Articles 7:85 et seq. BCCA. This means that the Company is managed by a Board of Directors that has the power to perform all acts necessary or useful to achieve the purpose of the Company, with the exception of those acts for which the General Meeting is authorised according to the law and is led by an Executive Committee that has been entrusted by the Board of Directors with the day-to-day management and operational functioning of the Company. To increase the overall effectiveness of the Board of Directors through focus, supervision and moni - toring of important areas, the Board has establi- shed three specialised committees, consisting mainly of Independent Directors who have the expertise required to be members of such com- mittees, namely the Audit and Risk Committee, the Nomination and Remuneration Committee and the Investment Committee. As required by RREC legislation and corporate governance rules, the Company also has an inde- pendent control function, the effectiveness whe- reof is ensured by the internal audit, compliance and risk management functions. As Aedifica’s corporate mission (offering sustai- nable real estate solutions to professionals whose core business is the provision of care to persons in need throughout Europe) aims to sustainably pursue the interests of all its stakeholders, it has a Sustainability Steering Committee that examines how the Company’s sustainability objectives can be integrated into its policies and is responsible for developing and monitoring the sustainability action plan. Finally, given the geographical diversity of the countries in which Aedifica operates and to exchange relevant experience from these various markets, Aedifica has a G10 group through which the members of the Executive Committee and the country managers meet regularly. This governance structure and the respective divi- sion of roles can be represented schematically as shown hereafter. Board of directors • Defines the Company’s strategy and policy. • Develops and ensures entrepreneurial, res- ponsible and ethical leadership that can imple- ment strategy and policies within a framework that enables effective control and risk mana - gement. • Examines the quality of the information given to investors and the public. • Determines the corporate governance. • Ensures that ESG objectives are developed within the Company and supervises the imple- mentation. Audit and Risk Committee • In general: assists the Board of Directors in ful- filling its monitoring responsibilities for control purposes in the broadest sense, including ensuring internal audit of the Company. • In carrying out its task, the Audit and Risk Com- mittee’s main duties are: - monitoring the financial reporting process and the reporting process for sustainability information; - monitoring the effectiveness of the systems for internal control, risk management and sustainability reporting; - monitoring internal audit and its effectiveness; - monitoring the statutory audit of the annual accounts and the consolidated annual accounts, including monitoring of questions and recommendations formulated by the Sta- tutory Auditor and the information provided to the shareholders and the market; - monitoring the assurance on sustainability information; BOARD OF DIRECTORS Audit and Risk Committee Nomination and Remuneration Committee Investment Committee Risk Manager Compliance Officer Internal Auditor EXECUTIVE COMMITTEE G10 - Country managers Sustainability Steering Committee AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 95 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION - supervising the external audit, including assessing and monitoring the auditor’s inde- pendence and the appropriateness of the provision of non-audit services; - regular reporting to the Board of Directors on the performance of its duties and, in any case, when the Board of Directors draws up the annual accounts, consolidated accounts and condensed financial statements intended for publication, including regarding the result of the assurance on sustainability information. Nomination and Remuneration Committee Assists the Board of Directors by: • making recommendations in all matters rela- ting to the composition of the Board of Direc- tors and its committees and of the Executive Committee; • assisting in the selection, evaluation and appointment of the members of the Board of Directors and its committees and of the Exe - cutive Committee; • assisting the Chair of the Board of Directors in evaluating the performance of the Board of Directors, its committees and the Executive Committee; • drawing up the remuneration policy and the remuneration report; • making recommendations on the remuneration of Directors and members of the Executive Committee, including variable remuneration and long-term incentives, whether linked or not to shares (in the form of share options or other financial instruments), and severance payments. Investment Committee Advises the Board of Directors on investments and divestments submitted by the Executive Com- mittee to the Board of Directors in order to expedite the Company’s decision-making process regarding investment and divestment dossiers. Risk Manager • Ensures the implementation of measures and procedures to identify, monitor and avoid the risks the Company may face (including ESG-re- lated risks). • When risks actually materialise, proposes measures to mitigate the impact of these risks and assess and monitor their consequences as much as possible. Compliance Officer • Ensures compliance by the Company, its direc- tors, effective leaders, employees with the legal rules regarding the integrity of the business of a public regulated real estate company. • Ensures compliance with the internal Com- pany policies, including compliance with the rules on conflicts of interest, incompatibility of mandates, compliance with Company values and market abuse and manipulations. Internal Auditor Assesses the activities of the Company and exa- mines the effectiveness of the existing internal control procedures and methods. Executive committee • Oversees the day-to-day management of Aedi- fica, in accordance with the values, strategy and policy guidelines determined by the Board of Directors. • Proposes strategy to the Board of Directors (including regarding ESG) and executes the strategy approved by the Board of Directors. • Organises and manages supporting functions. • Examines and (within the delegated powers) decides on investments and divestments, general management of the real estate port- folio, and prepares the financial statements and all operational reporting. • Validates the Sustainability Steering Com- mittee’s proposals and plans. G10 - Country managers Ensures, as deliberation and discussion platform between the country managers and the Executive Committee: • cross-border communication between the different teams of Aedifica Group, including exchange of relevant experiences from the different local real estate markets in which Aedifica operates; • the alignment of objectives of all parts of Aedifica Group; • the participation of all parts of Aedifica Group in the establishment and implementation of Aedifica Group’s policy. Sustainability Steering Committee • Pursues the implementation and effective integration of the Group’s CSR strategy in all business segments, in collaboration with the operational teams. • Assesses and manages risks and opportunities related to climate change. • Proposes concrete and economically viable measures to improve the environmental and social performance of the Group. • Ensures that the Group complies with legal, national and international environmental requi- rements and sustainability reporting. • Promotes dialogue with all stakeholders in order to determine which efforts need to be made and in order to develop long-term partnerships that strengthen the positive impact of actions implemented. • Communicates the Group’s ESG performance to all stakeholders. 2. Reference code In accordance with Article 3:6 §2 BCCA and the Belgian Royal Decree of 12 May 2019 specifying the code to be complied with regarding corpo - rate governance by listed companies, Aedifica applies the Belgian Corporate Governance Code 2020 (‘CG Code 2020’), taking into account the particularities relating to RREC legislation. The CG Code 2020 can be accessed on the website www.corporategovernancecommittee.be. The CG Code 2020 applies the comply or explain principle, whereby deviations from the recom- mendations must be justified. On the date of this Annual Financial Report, Aedi- fica complies with all provisions of the CG Code 2020. The Corporate Governance Charter containing all the information on the governance rules appli- cable within the Company can be accessed on the Company’s website (www.aedifica.eu). TWEE POORTEN - CARE HOME IN TIENEN (BE) AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 96 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 3. Internal control and risk management Aedifica has implemented an effective internal control and risk management system, as required by the RREC legislation and by corporate gover- nance rules. The development of this internal control and risk management system is the responsibility of Aedifica’s Executive Committee. The Board of Directors is responsible for determining and eva- luating the risks the Company may face and for monitoring the effectiveness of internal control. In accordance with RREC legislation, Aedifica has appointed: • a compliance officer – Mr Thomas Moerman, Group General Counsel; • a risk manager – Ms Ingrid Daerden, CFO, Execu- tive Director and member of the Executive Com- mittee, assisted by Mr Maximilien Meuwissen (Financial Control and Risk Manager); • an internal auditor – the internal audit function is performed by an external consultant, BDO Risk Advisory Services (represented by Mr Wim Verbelen), under the supervision and responsi- bility of Ms Katrien Kesteloot (Independent Director). Aedifica bases its risk management and inter- nal control system on the COSO internal control model (Committee of Sponsoring Organisations of the Threadway Commission - www.coso.org). This model (2013 version) defines the require- ments of an effective internal control system by 17 principles spread over five components: • internal control environment; • risk analysis; • control activities; • information and communication; • supervision and monitoring. Internal control environment Principle 1: the organisation demon- strates its commitment to integrity and ethical values. • Ethics: Aedifica has several internal policy gui- delines that apply to its Directors, members of the Executive Committee and its employees. It has an ethical charter (‘Code of Conduct’) that has been completely revised in 2023 (see page 70 on the Code of Conduct). • Integrity: Aedifica complies with all legal requi- rements regarding conflicts of interest (see below). In addition, Aedifica also has a policy on the prevention of the use of the financial system for the purposes of money laundering and ter- rorist financing, as well as a Tax-Evasion Policy. Principle 2: the Board of Directors is independent from management and supervises the development and operation of internal controls. Aedifica’s Board of Directors has 12 members, 7 of whom are independent members within the meaning of Article 7:87 §1 BCCA. In view of their experience and their specific profiles, the Directors have the necessary competences in the context of the exercise of their mandate (see skills matrix below). The Board of Directors monitors the effectiveness of the risk management and internal control measures taken by the Executive Committee. Principle 3: the Executive Committee determines, under the supervision of the Board of Directors, the structures, reporting procedures and the appropriate rights and responsibilities to achieve the objectives. Aedifica has a Board of Directors, an Audit and Risk Committee, a Nomination and Remunera- tion Committee, an Investment Committee and an Executive Committee, the roles of which are described above. The members of the Executive Committee are responsible for the day-to-day management of the Company and the execu- tion of the strategy in line with the sustainable business objectives, on which they report regu- larly to the Board of Directors. The Executive Committee is also responsible for the implementation and effectiveness of internal control and risk management measures. Principle 4: the organisation undertakes to attract, train and retain competent employees within the organisation. The competence of the Executive Committee and staff is ensured by implementing recruitment processes based on defined profiles and by orga- nising appropriate training. Aedifica supports the personal development of its employees and offers them a comfortable and stimulating working envi- ronment tailored to their needs, by identifying their talents and helping to strengthen them. The Aedifica Academy was created to give employees the opportunity to share their knowledge and best practices with their colleagues from other depart- ments. Staff changes are planned based on the career planning of employees and the likelihood of temporary (maternity leave, parental leave, etc.) or permanent (particularly retirement) departures. Principle 5: the organisation holds indivi- duals accountable for their internal control responsibilities in the pursuit of objectives. Over the past years, a ‘Target Operating Model’ has been developed and when it was implemented, a RACI matrix was also created to describe the roles that each department plays within the organisa- tion. The acronym RACI stands for responsible, accountable, consulted, and informed. The RACI framework clarifies responsibilities and ensures that our organisational needs are assigned to those responsible, and the performance of the responsible can be assessed against the res- ponsibilities assigned under the framework. Each employee has at least one performance interview per year with his or her supervisor, based on a schedule that maps out the relations between the company and the employee. In addition, the remuneration and evaluation policy for the Execu- tive Committee and staff is based on the setting of realistic and measurable objectives. A benchmark study was carried out in 2022 for the remunera- tion of the Executive Committee and in 2023 for the remuneration of employees. Risk analysis Principle 6: the organisation describes the objectives clearly enough to be able to identify and evaluate the risks relating to these objecives. Aedifica’s objectives are clearly described in this Annual Report on pages 21-22. In terms of risk culture, the Company adopts a prudent conservative attitude. Principle 7: the organisation identifies the risks for the achievement of its objectives and analyses these risks to determine how it should manage them. The Board of Directors identifies and evaluates Aedifica’s main risks on a quarterly basis and publishes its findings in the annual and half-yearly financial reports and interim statements. Risks are also monitored on an ad hoc basis outside the quarterly identification and assessment exer- cises by the Board of Directors at its meetings. In this respect, Aedifica has built up an internal tool to better follow up on the risk evolution. Aedi- fica’s appetite for these risks is assessed and the controls put in place are documented with the help of the tool. The risk analysis is regularly monitored and gives rise to remediation actions in relation to any identified vulnerabilities. More information on risks can be found in the ‘Risk factors’ chapter in this Annual Report. Principle 8: the organisation pays atten- tion to the risk of fraud when assessing the risks that could jeopardise the achievement of the objectives. Aedifica is aware that fraud could occur at any level within the organisation and has therefore taken various measures to prevent fraud and reduce this risk. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 97 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION These measures concern inter alia the establish- ment of an adequate system of internal control (including control activities – see also principle 10 below) and the adoption of various policies (Code of Conduct, setting out rules for proper book and accounting recording and unauthorised use of company resources; the Anti-Bribery and Corruption Policy, the Tax-Evasion Policy and the Policy on preventing the use of the financial sys - tem for the purposes of money laundering and terrorist financing). Any attempt to commit fraud is immediately investigated in order to mitigate the potential impact on the Company and prevent further attempts. Principle 9: the organisation identifies and assesses changes that could have a significant impact on the internal control system. Significant changes are continuously identified and analysed by both the Executive Committee and the Board of Directors and formalised in the ‘risk universe’ tool. This analysis is incorporated in the ‘Risk factors’ chapter. As part of this process, sustainability-related risks have also been iden - tified and integrated into the ‘risk universe tool’ in recent years. Control activities Principle 10: the organisation selects and develops control activities that contribute to the mitigation of risks to the achievement of objectives to acceptable levels. Each acquisition or disposal transaction can be reconstructed as to its origin, the parties invol- ved, its nature, and the time and place at which it was carried out, on the basis of notarial deeds (direct acquisition or by way of contribution in kind, merger, demerger or partial demerger) or private deeds (indirect acquisition), and is subject, prior to its conclusion, to a control of compliance with the Company’s Articles of Association and with the legal and regulatory provisions in force. Furthermore, for the management of operational risks, the following measures have been imple - mented: • Review of variances between budget and actuals, on a monthly basis by the Executive Committee, and on a quarterly basis by the Audit and Risk Committee and the Board. • Daily monitoring of key indicators, such as occupancy rate, trade receivables, aged debtors and cash position. • The principle of dual approval: - signing of contracts: two Directors jointly or two Executive Committee members acting jointly; - approval of purchase order (PO): POs are approved by two members; - approval of invoices: invoices are approved based on the service rendered (3-way match between the PO value, invoice value and Good Receipt value). Furthermore, if invoices are related to a project or above a defined threshold, there is an additional approver (4-way match); - payment of invoices: the invoices are released for payment when the above conditions (3- or 4-way match) have been met. The payment batch is executed by an accountant; - a specific delegation of authority is in place for treasury operations. In addition, the Company has introduced control measures to address its main financial and ope - rational risks: - interest rate risk: implementation of hedges (mainly IRS and caps), contracted only with reference banks; - counterparty risk: use of different reference banks with a strong credit rating to ensure diversification of the origin of bank financing; - currency risk: hedging instruments (mainly forward contracts) are used to hedge against variations in the EUR/GBP rate on future cash flows in GBP. A macro-hedge is also put in place to mitigate EUR/GBP variations on the balance sheet.A part of the debt is contracted in GBP, which allows to mitigate the exchange rate variations on the valuation of the buil- dings. Following the acquisition of Hoivatilat, Aedifica is also exposed to the EUR/SEK exchange rate risk; - creditworthiness of tenants: monthly moni- toring of tenants’ key KPI (EBITDARM, occu- pancy rate, debt ratio, etc.) and ability to pay the rent. Principle 11: the organisation selects and develops general IT controls to promote the achievement of its objectives. The technology used by the Company is selected according to an ‘integrated system approach’. Aedifica relies on a fully operational ERP (SAP) to conduct its business. To manage its debt, Aedifica uses a treasury management system (Reval) which communicates daily with the ERP. Aedifica has also implemented a budgeting tool which facilitates the budgeting and forecas- ting projections. The security of access and the continuity of the systems data are entrusted to a partner based on a service level agreement. In addition, leases are registered, and the most important contracts and documents are adequa - tely preserved outside Aedifica’s premises. Finally, an IT department ensures that the necessary backups and firewalls are in place to protect the security of access and continuity of system data for which a service level agreement is in place with a trusted partner. Principle 12: the organisation develops control activities with a policy that determines what is expected and with procedures that put that policy into practice. The formalisation of documentation and internal processes in formal procedures and policies is part of a continuous process improvement objec- tive, which also considers the balance between formalisation and company size. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 98 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Information and communication Principle 13: the organisation uses relevant and high-quality information to support the functioning of internal control. The information system used by the Company enables it to reliable and complete information on a timely basis, meeting both internal control and external reporting needs. The Company has switched to a single ERP system for the entire group (SAP). Additionally, the Company also uses specific software tools to support operational processes: - No Claims helps property managers to better identify and manage the operational risks for each building; - M-Files is used to improve the operational approval flow for new lease contracts; - Deepki is used to gather all information regar- ding building consumption. Principle 14: the organisation commu- nicates internally the information, including the objectives and responsibilities for internal control, that is necessary to support the operation of this internal control. Internal control information is communicated in a transparent manner within the Company with the aim of clarifying the organisation’s policies, procedures, objectives, roles and responsibilities for everyone. Communication is adapted to the size of the Company and consists mainly of general staff communication, work meetings, email exchanges and communication through the Company’s intranet. Principle 15: the organisation commu- nicates with third parties on matters that affect the functioning of internal control. Extensive external communication to sharehol- ders and other stakeholders and transparency is essential for a listed company, and Aedifica is committed to this on a daily basis. External communication on the functioning of internal control is mainly done through the annual report. In addition, most policies are also published on the Group’s website. Supervision and monitoring Principle 16: the organisation selects, develops and carries out continuous and/or one-off evaluations to check whether the internal control components are present and whether they are functioning. In order to ensure that the components of the internal control are properly applied, Aedifica has set up an internal audit function covering its main processes. The internal audit is organised accor- ding to a multi-year cycle. The specific scope of the internal audit is determined annually in consultation with the Audit and Risk Committee, the person responsible for the internal audit within the meaning of the RREC legislation (Ms Katrien Kesteloot, Independent Director – see above) and the internal auditor (see above). In view of the independence requirements and taking into account the principle of proportionality, Aedifica has chosen to outsource the internal audit to a specialised consultant who is under the super- vision and responsibility of the internal person responsible for the internal audit. Principle 17: the organisation evaluates and communicates internal control deficiencies in a timely manner to those parties responsible for taking corrective action, including effective management andthe Board of Directors, as appropriate. The recommendations issued by internal audit are communicated to the Audit and Risk Committee and the Executive Committee. The Committee ensures that the appropriate corrective measures are taken by the management. LA FERME BLANCHE - CARE HOME IN REMICOURT (BE) AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 99 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 4. Shareholder structure Based on the transparency notices received, BlackRock, Inc. (transparency notice dated 7 Octo- ber 2024) holds at least 5% of the voting rights in Aedifica (see page 92). No other shareholder holds more than 5% of the capital. Notices under transparency legislation and control chains are available on the website. According to the definition of Euronext, the free float amounts to 100%. There are no preferred shares. Each Aedifica share entitles the holder to one vote at the General Meeting of Shareholders, except in cases of suspension of voting rights provided for by law. There is no legal or statutory limitation of voting rights whatsoever. Aedifica is not subject to any control within the meaning of Article 1:14 BCCA, and has no knowledge of agreements that could lead to a change of control. 5. Board of Directors and committees 5.1 Current composition of the Board of Directors The Board of Directors consists of twelve members, seven of whom are independent within the meaning of Article 7:87 BCCA and Article 3.5 of the CG Code 2020. The Directors are listed on pages 101-102. They are appointed for a maxi- mum term of three years by the General Meeting, which can remove them at any time. Directors can be reappointed. The full biographies for each of the members of the Board of Directors are available on Aedi- fica’s website. Each member of the Board of Directors has, for the purpose of their mandate within Aedifica NV/SA, selected the address of the registered seat of Aedifica NV/SA, Rue Belliard/Belliardstraat 40 (box 11), 1040 Brussels (Belgium), as their business address. Aedifica takes into account various diversity aspects (such as gender, age, professional background, international experience, etc.) for the composition of its Board of Directors and its Executive Committee, as explained in more detail on pages 106-107. FROM LEFT TO RIGHT: LUC PLASMAN, RAOUL THOMASSEN, CHARLES-ANTOINE VAN AELST, INGRID DAERDEN, STEFAAN GIELENS, PERTTI HUUSKONEN, ELISABETH MAY-ROBERTI, SVEN BOGAERTS, MARLEEN WILLEKENS, SERGE WIBAUT, KARI PITKIN & KATRIEN KESTELOOT. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 100 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION SERGE WIBAUT Chair – Independent Director Member of the Audit and Risk Committee & the Nomination and Remuneration Committee Belgian – 67 years CHARLES-ANTOINE VAN AELST Executive Director Chief Investment Officer – Executive Manager Belgian – 39 years INGRID DAERDEN Executive Director Chief Financial Officer – Executive Manager Belgian – 50 years Aedifica Board mandate • Since 23.10.2015 • End of term: 05.2027 Experience Over 20 years in banking and financial sector, including various senior leadership positions. Aedifica shareholding 3,000 Other active mandates Director of Securex Assurance, Cigna Life Insurance Company of Europe NV/SA Scottish Widows Europe and Caisse de Prévoyance des avocats, des huissiers de justice et autre indépendants Mandates expired during the last 5 years ADE, Alpha Insurance, Securex NV/SA, Eurinvest Partners NV/SA and Reacfin NV/SA Aedifica Board mandate • Since 08.06.2020 • End of term: 05.2026 Experience Over 15 years, starting as corporate analyst with Aedifica evolving to investment manager and Chief Investment Officer. Aedifica shareholding 7,164 Other active mandates Director of Immobe NV/SA Mandates expired during the last 5 years Director of Davidis NV/SA Aedifica Board mandate • Since 08.06.2020 • End of term: 05.2026 Experience Over 25 years, including 10 years in real estate financing. Aedifica shareholding 5,955 Other active mandates Director of LCL Data Centers Mandates expired during the last 5 years Director and business manager of JIND BV (the company was dissolved and liquidated) STEFAAN GIELENS, MRICS Chief Executive Officer – Executive Manager Belgian – 59 years SVEN BOGAERTS Executive Director Chief Mergers & Acquisitions Officer – Chief Legal Officer – Executive Manager Belgian – 47 years PERTTI HUUSKONEN Independent Director Member of the Investment Committee Finnish – 68 years Aedifica Board mandate • Since 03.02.2006 • End of term: 05.2027 Experience Almost 20 years as CEO of Aedifica which has evolved under his leadership from a small start-up to a European pure play healthcare real estate investor. Aedifica shareholding 18,661 Other active mandates Director of Happy Affairs BV and as permanent representative of Happy Affairs BV, director in Antemm NV/SA and Kolmont Holding BV Mandates expired during the last 5 years Director of Forum Estates NV/SA Aedifica Board mandate • Since 08.06.2020 • End of term: 05.2026 Experience Over 20 years, including 14 years as attorney specialised in business real estate transactions. Aedifica shareholding 6,827 Other active mandates / Mandates expired during the last 5 years / Aedifica Board mandate • Since 08.06.2020 • End of term: 05.2026 Experience Almost 40 years in real estate, including various senior leadership positions. Aedifica shareholding 5,170 Other active mandates Chair of the Board of Directors and CEO of Lunacon Oy, Vice Chair of the Board of Directors of Ahlström Kiinteistöt Oy, and Chair of the Board of Directors of Avain Yhtiöt, Avain Asumsoikeus Holding, and Aitoenergia Mandates expired during the last 5 years Vice Chair of the Board of Directors of KPY Novapolis Oy and (Vice) Chair of the Board of Directors of Hoivatilat Oy AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 101 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION KATRIEN KESTELOOT Independent Director Member of the Audit and Risk Committee Responsible for internal audit Belgian – 62 years KARI PITKIN Independent Director Member of the Investment Committee American & British – 55 years RAOUL THOMASSEN Executive Director Chief Operational Officer – Executive Manager Dutch – 50 years Aedifica Board mandate • Since 23.10.2015 • End of term: 05.2027 Experience Over 30 years in healthcare sector, notably over 20 years as CFO of UZ Leuven (university hospital). Aedifica shareholding 202 Other active mandates Director of Hospex NV/SA, VZW/ASBL Faculty Club KU Leuven and Rondom VZW/ASBL, Chair of the Board of Directors and member of the Audit Committee of Emmaüs VZW/ASBL Mandates expired during the last 5 years / Aedifica Board mandate • Since 14.05.2024 • End of term: 05.2027 Experience Over 20 years in the pan-European real estate industry and investment banking. Aedifica shareholding 162 Other active mandates Independent Director of CTP NV Mandates expired during the last 5 years / Aedifica Board mandate • Since 10.05.2022 • End of term: 05.2025 Experience Almost 20 years in property and asset management. Aedifica shareholding 2,205 Other active mandates Listo Consulting BV Mandates expired during the last 5 years Profin Green Iberia ES SL (the company was dissolved and liquidated) and Director of Profin Green Iberia NL BV ELISABETH MAY-ROBERTI Independent Director Chair of the Nomination and Remuneration Committee Belgian – 61 years LUC PLASMAN Independent Director Chair of the Investment Committee & member of the Nomination and Remuneration Committee Belgian – 71 years MARLEEN WILLEKENS Independent Director Chair of the Audit and Risk Committee Belgian – 59 years Aedifica Board mandate • Since 23.10.2015 • End of term: 05.2027 Experience Over 20 years in real estate sector, notably as Secretary General – General Counsel of Interparking Group (AG Insurance). Aedifica shareholding 508 Other active mandates Various positions and mandates within the Interparking Group Mandates expired during the last 5 years / Aedifica Board mandate • Since 27.10.2017 • End of term: 05.2026 Experience Almost 40 years in real estate sector, including various senior leadership positions. Aedifica shareholding 688 Other active mandates Director of Vana Real Estate NV/SA, Business Manager of Elpee BV and Secretary General of BLSC Mandates expired during the last 5 years / Aedifica Board mandate • Since 27.10.2017 • End of term: 05.2026 Experience Almost 30 years as professor of accounting and auditing at the KU Leuven and BI Norwegian Business School Oslo (Norway). Aedifica shareholding 170 Other active mandates / Mandates expired during the last 5 years Independent director and Chair of the Audit Committee of Intervest NV/SA AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 102 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 5.2 Mandates that expire at the Ordinary General meeting The Director’s mandate of Mr Thomassen expires after the Ordinary General Meeting of 13 May 2025. Given his professional competences and contribution to the proper functioning of the Board of Directors, the Board of Directors proposes to the Ordinary General Meeting – upon recom- mendation of the Nomination and Remuneration Committee – to renew his mandate. From 2026 onwards, a number of Board mandates will expire. As part of our Board succession plan, the Nomination and Remuneration Committee has therefore recommended the appointment of an additional independent Director in 2025. By integrating new members ahead of mandates becoming vacant, the Board aims to ensure that the new member will have sufficient time to fami- liarise themselves with the Company’s operations, governance structure, and strategic objectives and is fully prepared by the time the mandates of more senior Board members come to an end. This proactive approach will not only facilitate a seamless transition, but will also enhance the continuity of the overall governance and deci- sion-making processes within the Board. This has resulted in the proposal of the Board of Directors to the Ordinary General Meeting for the appoint - ment – subject to approval by the FSMA – of: Ms Rikke Lykke as Independent Non- Executive Director Ms Rikke Lykke brings over 20 years of expe- rience and expertise in the European real estate sector. Until recently, she was CEO of DEAS Asset Management Group, a leading investment and asset management company in the Nordics with more than €6 billion of assets under management covering 400 properties across four countries (headquartered in Copenhagen, Denmark). Prior to this, she worked in leading roles in various real estate companies, including – prior to her appointment as CEO of DEAS – Head of European Asset Management at Patrizia SE. The appointment of Ms Lykke will allow the Com- pany to further strengthen its position in the field of ESG and prepare itself for the future, as she brings relevant business experience from the field in identifying and managing ESG issues. 5.3 Role and responsibility of the Board of Directors The Board of Directors aims to achieve sustai- nable value creation for Aedifica’s shareholders and other stakeholders by defining the Com- pany’s strategy and policy and developing entre- preneurial, responsible and ethical leadership that can implement this strategy and policy within a framework that enables effective control and risk management. 5.4 Activity report of the Board of Directors During the 2024 financial year, the Board of Direc- tors met 8 times. In addition to the usual recurring topics (in parti - cular operational and financial reporting, commu- nication policy, strategy and investment policy), the Board of Directors also met to discuss (among other things) the following topics: • Strategy: - the strategy and development of the Com- pany, in particular the results of the strategic sessions held with the Executive Committee and the Country managers on the Company’s medium- and long term strategy; - the navigation of the Company throughout the changed macro-economic environment. • Operational: - the positive trend in the operational and finan- cial resilience of operators; - enhanced focus on monitoring and overseeing the quality of care in Aedifica care homes; - implementation of the ESG strategy on the operational level. • Investment: - analysis and approval of investment, divest - ment and (re)development cases; - implementation of asset rotation programme; - acquisition of healthcare real estate in new markets. • Financial: - portfolio valuation; - debt-to-assets ratio management. • Governance: - evaluation of the Executive Committee, deter- mination of its objectives, fixed and variable remuneration; - composition of the Board of Directors and the Executive Committee; - revision of the existing remuneration policy. • Human resources: - internal organisation of the Company and development of the organisational structure across the various countries in which the Group operates. • Internal control: - the organisation and activities of internal control (compliance, risk management and internal audit function), as well as the cyber security level of the Company. • ESG: - 2023 environmental data report and the sustainability action plan to achieve net zero emissions by 2050 for the real estate portfo - lio, based on the work and reporting of the Sustainability Steering Committee as vali- dated by the Executive Committee; - the outcome of the double materiality assess- ment in the context of the CSRD and, more generally, the ESG legislative framework; - GRESB participation. 5.5 Induction and continuous board training An Induction Programme has been developed for new Directors, in which any Director can par- ticipate. The programme includes a review of the Group’s strategy and activities, and the main challenges in terms of growth and competition and a review of finance, human resources mana- gement, legal context, corporate governance and compliance topics through one-to-one meetings with the Chair of the Board, the members of the Executive Committee and the Compliance Officer. Directors also receive compliance training (inclu- ding training on information (cyber) security). On occasion, external speakers are also invited to discuss specific topics. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 103 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 5.6 Committees of the Board of Directors Three specialised committees were established within the Board of Directors: an Audit and Risk Committee, a Nomination and Remuneration Committee and an Investment Committee, which assist and advise the Board of Directors in their specific areas. These committees do not have decision-making authority, but form an advisory body and report to the Board of Directors, which then makes the decisions. All committees are eligible to invite members of the Executive Committee as well as executive and management staff to attend committee meetings and to provide relevant information and insights related to their area of responsibility. Moreover, each committee is entitled to speak to any rele - vant person without a member of the Executive Committee being present. Each committee can also, at the Company’s expense, seek external professional advice on topics falling under the specific powers of the committee provided the Chair of the Board of Directors is informed in advance and with due regard given the financial consequences for the Company. After each committee meeting, the Board of Directors receives a report on the fin- dings and recommendations of the relevant com- mittee as well as oral feedback at a subsequent board meeting. Audit and Risk Committee The Audit and Risk Committee consists of three Independent Directors: Ms Willekens (Chair of the Audit and Risk Committee), Ms Kesteloot and Mr Wibaut. Although the CEO and the CFO are not part of the Audit and Risk Committee, they attend the meetings. The composition of the Audit and Risk Committee and the tasks entrusted to the committee meet the legal requirements. Aedifica’s Independent Directors satisfy the criteria set out in Article 7:87 BCCA and Article 3.5 of the CG Code 2020. Moreover, all members of the Audit and Risk Com- mittee have the necessary accounting and audit competence, both due to their level of education and their experience in this matter. The committee met five times during the 2024 financial year. The Statutory Auditor of the Com - pany was heard two times by the Audit and Risk Committee during the financial year. The main points discussed during the 2024 finan- cial year were: • quarterly review of the accounts, periodic press releases and financial reports; • examination, together with the Executive Com- mittee, of internal management procedures and independent control functions; • monitoring of normative and legal develop- ments; • discussion of the internal audit report; • the preparation process, applied methodo- logy and outcome of the double materiality assessment; • cyber security level of the Company and use of AI tools. Nomination and Remuneration Committee As at 31 December 2024, the Nomination and Remuneration Committee consisted of four Independent Directors: Ms May-Roberti (Chair of the Nomination and Remuneration Committee), Mr Plasman, Mr Huuskonen and Mr Wibaut. Mr Wibaut joined the committee on 12 December 2024. Since 18 February 2025, Mr Huuskonen is no longer a member. Although Mr Gielens (CEO) is not part of this committee, he is occasionally invited to participate to some extent in certain meetings of the committee, depending on the topics being discussed. The composition of the Nomination and Remune- ration Committee and the tasks entrusted to the committee meet the legal requirements. The Nomination and Remuneration Committee consists entirely of Independent Directors within the meaning of Article 7:87 BCCA and Article 3.5 of the CG Code 2020, and has the required expertise in terms of remuneration policy. During the financial year 2024, the committee met 8 times, mainly to discuss the following points: • composition and evaluation of the Board of Directors; • composition and evaluation of the members of the Executive Committee and their remunera- tion, including the granting of variable remune- ration for the 2023 financial year; • preparation of the remuneration report and revision of the remuneration policy; • search for a new independent director; • recommendations of the Board evaluation; • organisation of the Company. Investment Committee As at 31 December 2024, the Investment Com- mittee consisted of two Independent Directors and one Executive Director: Mr Plasman (Chair of the Investment Committee), Mr Wibaut and Mr Gielens. On 18 February 2025, Mr Huuskonen and Ms Kari Pitkin joined the committee. During the 2024 financial year, the committee met 3 times to analyse and evaluate investment and divestment opportunities. Additionally, the members of the committee regularly consulted informally (electronically or by telephone) when a formal meeting was not necessary. 5.7 Attendance of Directors and remuneration of Non-Executive Directors More information on the attendance of Directors and the remuneration of the Non-Executive Direc- tors can be found in the remuneration policy (see Aedifica’s Corporate Governance Charter) and the remuneration report (see page 109). AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 104 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 5.8 Executive Committee and effective management The Executive Committee is composed of the following persons, who are also all Executive Managers in the meaning of the RREC Law. The members of the Executive Committee are appointed by the Board of Directors upon the recommendation of the Nomination and Remune- ration Committee. The members of the Executive Committee are also executive Directors of the Company. In that capacity they were present at all meetings of the Board of Directors held in 2024. Remuneration More information on the remuneration of the members of the Executive Committee can be found in the remuneration policy (see Aedifica’s Corporate Governance Charter) and the remune- ration report (see page 113). Role and responsibilities of the Executive Committee In accordance with Article 16 of the Company’s Articles of Association, the Board of Directors delegated to the Executive Committee special limited decision-making and representation powers to allow it to fulfil its role. For the division of powers between the Exe- cutive Committee and the Board of Directors and for the other aspects of the operation of the Executive Committee, please see Aedifica’s Corporate Governance Charter (available on the website). Name Position Function / description Start of mandate Aedifica shareholding Stefaan Gielens MRICS Belgian 59 years Chief Executive Officer (CEO) • Monitoring the Group’s general activities • Driving force behind the Group’s strategy and internationalisation • Executive Director, chair of the Executive Committee, member of the Investment Committee and Director of several Aedifica subsidiaries • CEO mandate is of indefinite duration 3 February 2006 18,661 Ingrid Daerden Belgian 50 years Chief Financial Officer (CFO) • Responsible for the financial activities of the Group • Executive Director, member of the Executive Committee, Risk Manager and Director of several Aedifica subsidiaries • CFO mandate is of indefinite duration 1 September 2018 5,955 Raoul Thomassen Dutch 50 years Chief Operating Officer (COO) • Responsible for the business operations and daily functioning of the Group • Executive Director, member of the Executive Committee and Director of several Aedifica subsidiaries • COO mandate is of indefinite duration 1 March 2021 2,205 Charles-Antoine Van Aelst Belgian 39 years Chief Investment Officer (CIO) • Responsible for the Group’s investment activities • Executive Director, member of the Executive Committee and Director of several Aedifica subsidiaries • CIO mandate is of indefinite duration 1 October 2017 7,164 Sven Bogaerts Belgian 47 years Chief Legal Officer/ Chief Mergers & Acquisitions Officer (CLO/CM&AO) • Responsible for the Group’s Legal Department and its national and international M&A activities • Executive Director, member of the Executive Committee and Director of several Aedifica subsidiaries • CLO/CM&AO mandate is of indefinite duration 1 October 2017 6,827 FROM LEFT TO RIGHT: RAOUL THOMASSEN, INGRID DAERDEN, STEFAAN GIELENS, SVEN BOGAERTS & CHARLES-ANTOINE VAN AELST AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 105 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 6. Diversity at Board and Executive Committee level Diversity at the level of the Board of Directors and at the level of the Executive Committee is part of the overall diversity, equity and inclusion objectives of Aedifica as described in the diversity policy (see page 66). Diversity at Board level In accordance with the Belgian legal require - ments, at least one third of the members of the Board of Directors must be of a different gender from the other members. The Board of Directors follows these legal requirements, and these have also been integrated into the Board recruitment and nomination process. The precise gender make-up fluctuates over time as positions become vacant and depends also on the complementarity between the different members with respect to various facets of diversity (of which gender is one). Beyond gender diversity and the growing focus on the international composition of the Board ofDirectors, the Board of Directors always strives to keep a balanced mix of diversity in terms of skills, experience, nationality, age, independence, tenure as well as any other relevant criterion. STATUS NATIONALITY 5 Women 7 Men 7 Independent 5 Non-independent 9 Belgian 1 Finnish 1 Dutch 1 American-British < 30 years 30 – 39 years 40 – 49 years 50 – 59 years ≥ 60 years 5 4 3 2 1 0 AGE 10 International business experience 8 ESG / Sustainability 8 M&A / Capital Markets 12 Senior management experience 4 Legal / Public Policy 5 Risk Management 8 Financial expertise 3 Relevant professional experience in/ knowledge of healthcare industry 10 Real estate / REIT SKILLS GENDER TENURE 0 – 4 years 5-8 years 9-12 years + 12 years 6 5 4 3 2 1 0 Board of Directors KARTUIZERHOF - CARE HOME IN LIERDE (BE) AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 106 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Executive Committee Diversity at Executive Committee level No legal gender requirements apply to the composition of the Executive Committee. Nevertheless, here as well, the Company strives through the Board of Directors that appoints the members of the Executive Committee, to gender diversity in the composition of the Executive Committee. The overall objective, however, is to pay careful attention not just to one aspect of diversity but to diversity in all its aspects to ensure a complementarity of competences, natio- nal and international experience, personalities and profiles, in addition to the expertise and integrity required for the performance of the function. 7. Evaluation of the Board of Directors and its committees Under the leadership of its Chair, the Board of Directors annually evaluates its size, composition, performance and that of its committees. This evaluation has four objectives: • to assess the functioning of the Board of Direc- tors and its committees; • to check whether important subjects are tho- roughly prepared and discussed; • to assess each Director’s actual contribution on the basis of his or her attendance at meetings of the Board of Directors and committees and his or her constructive contribution to the dis - cussions and decision-making; • to assess whether the current composition of the Board of Directors and committees is in line with the needs of the Group. In addition, every five years the Board of Directors evaluates whether the current monistic gover- nance structure of the Company remains appro- priate. The Board of Directors is assisted in this eva- luation by the Nomination and Remuneration Committee and, if necessary, by external experts. The contribution of each Director is regularly evaluated so that the composition of the Board of Directors can, if necessary, be adapted to any changed circumstances. In the event of a reap - pointment, the contribution and performance of the Director are evaluated on the basis of a prede- termined and transparent procedure. The Board of Directors ensures that there are appropriate plans for monitoringthe Directors and ensures that the balance of competences and experience in the Board of Directors is maintained in all appoint- ments and reappointments (of both Executive and Non-Executive Directors). Non-Executive Directors regularly evaluate their interaction with the Executive Committee. To this end, they meet at least once a year without the members of the Executive Committee. The last overall assessment of the Board of Directors and the Board committees took place at the end of 2023/beginning of 2024 and was conducted by an external specialised governance consultant. The evaluation focused primarily on the com- position, succession planning, preparation and functioning of the Board and its committees, and the interactions between the Board and the Exe - cutive Committee. The evaluation indicated that the Board func- tions well and can rely on highly committed and engaged Board members. Suggestions were mainly made regarding the further preparation and elaboration of succession planning for the Board of Directors and the Executive Committee in the medium term. The suggestions were dis - cussed within the Nomination and Remuneration Committee during 2024, which has resulted in the adoption of an action plan for the implementation of several suggestions. The proposed implemen- tation actions were also discussed by the Board of Directors. In 2024, the Nomination and Remuneration Committee and Board of Directors also assessed whether the current monistic governance struc- ture of is still appropriate for the Company and concluded that it is. GENDER 1 Woman 4 Men NATIONALITY 4 Belgian 1 Dutch AGE < 30 years 30 – 39 years 40 – 49 years 50 – 59 years ≥ 60 years 3 2 1 0 TENURE 0 – 4 years 5 – 8 years 9-12 years +12 years 4 3 2 1 0 AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 107 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION IN 2024, AEDIFICA POSTED SOLID RESULTS IN A CHALLENGING MARKET ENVIRONMENT €4.93/share EPRA EARNINGS 41.3% DEBT-TO-ASSETS RATIO 31 projects COMPLETED FOR OVER €297 MILLION 92% EPC COVERAGE 100% OCCUPANCY RATE Excellent SUSTAINABILITY SCORES 8. Remuneration report This remuneration report was drafted according to the provisions of article 3:6 §3 BCCA and com - plies with the principles of the 2020 CG Code. It has also been drafted taking into account the European Commission’s non-binding draft gui - delines for the standardised presentation of the remuneration report 1 . The remuneration report provides a complete overview of the remuneration, including all bene- fits in whatever form, granted or due, during the 2024 financial year to each of the Non-Executive Directors and members of the Executive Com- mittee in application of the remuneration policy, where applicable comparing the actual perfor - mance to the targets set. On 11 May 2021, the General Meeting of Aedi- fica approved the remuneration policy with a large majority (95.20% of the votes casted). This policy took effect on 1 January 2021 and can be consulted on our website. The Board of Directors did not deviate over the past financial year in any matter from the approved remuneration policy. The last remuneration report (for the 2023 finan - cial year) was approved by a large majority of shareholders (93.8% of the votes cast at the Gene- ral Meeting of 14 May 2024). Notwithstanding the fact that this was an even higher approval rate than the previous year (which was already at 92%) and exceeded the levels achieved by the majority of other BEL 20 Index companies, the Nomination and Remuneration Committee took additional steps to understand the perspectives of shareholders and proxy advisors in order to make further improvements. This feedback was taken into account in the revision of the remuneration policy and is largely incorporated in the revised version of the remuneration policy that is being proposed for approval to the General Meeting of 13 May 2025. The revised remuneration policy and details on the proposed changes are avai- lable on our website (www.aedifica.eu/investors/ shareholder-information). The Company will continue to seek feedback from shareholders and proxy advisors to ensure that Aedifica’s approach to remuneration remains aligned with the interests of all stakeholders and evolves as market expectations change. 8.1 Remuneration of the Non-Executive Directors for the 2024 financial year The Company’s Ordinary General Meeting has set the following remuneration for the Non-Executive Directors 2 : • Board of Directors - Chair: annual fixed fee €90,000 + €1,000 per meeting attended; - Member: annual fixed fee €35,000 + €1,000 per meeting attended. • Audit and Risk Committee - Chair: annual fixed fee €15,000 + €900 per meeting attended; - Member: annual fixed fee €5,000 + €900 per meeting attended. • Nomination and Remuneration Committee / Investment Committee - Chair: annual fixed fee €10,000 + €900 per meeting attended; - Member: €900 per meeting attended. In addition, the Board of Directors has decided to grant a special travel allowance of €300 per (round) trip to Non-Executive Directors who are not resident in Belgium, in application of the power granted to it under the remuneration policy to offer on a case-by-case basis to Non-Executive Directors who attend meetings of the Board of Directors in a country other than their country of residence, a special travel allowance of €300 to cover their travel time. The table on the next page provides an overview of the Non-Executive Directors’ attendance at Board and committee meetings and the remune- ration received for the 2024 financial year as Director of Aedifica. The structure of the remuneration corresponds to the remuneration policy: a fixed cash-based straight forward remuneration. Non-Executive Directors do not receive performance-related remuneration (such as bonuses, shares or stock options), benefits in kind, or benefits related to pension plans. Consequently, the ratio of fixed to variable remuneration is 100% fixed and 0% variable. However, in accordance with the remuneration policy and in order to comply with the spirit of principle 7.6 of the 2020 CG Code the Non-Exe- cutive Directors are obliged to annually register in the Company’s share register a number of shares equivalent to 10% of their gross annual fixed remuneration as member of the Board of Direc- tors, calculated based on the average stock mar- ket price for the month December of the previous year. In application of this rule the Non-Executive Directors other than the Chair had to register for the year 2024 a minimum of 56 shares in the share register, whereas the Chair had to register a minimum of 144 shares. All Non-Executive Directors have registered the required number of shares in the share register of the Company, with the exception of (former Direc- tor) Ms Waldburg and Ms Pitkin who for technical constraints specific to the banking and securities system were not able to convert dematerialised shares in registered shares. These shares must be held in registered form until at least one year after the Non-Executive Director leaves the Board of Directors and, in any case, for at least three years after the shares have been registered. This shareholding obligation also applies to Ms Wald- burg and Ms Pitkin who annually submit proof that they still hold the required number of shares. The combination of a fixed cash-based remune- ration and the obligation for the Non-Executive Directors to invest in the Company’s capital, coupled to a long-term holding obligation of the acquired shares, allows the Company to reward 1. Draft Guidelines on the standardised presentation of the remuneration report under Directive 2007/36/EC, as amended by Directive (EU) 2017/828 as regards the encouragement of long-term shareholder engagement. 2. See decisions of the Ordinary General Meetings of 28 October 2016, 22 October 2019 and 11 May 2021. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 108 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION the members of the Board of Directors appropria- tely for their work based on market-competitive fee levels, whilst also strengthening the link with the Company’s strategy, long-term interest and sustainability. 8.2 Remuneration of the members of the Executive Committee for the 2024 financial year 8.2.1 Aedifica’s remuneration philosophy The main principles underlying Aedifica’s remune- ration policy for the members of its Executive Committee are based on a balanced approach between market competitive standards, the ratio between fixed and variable pay and the economic and social contribution of the Company linked to certain non-financial parameters of the variable pay, as summarised in the table on the right. Remuneration of Independent Directors in 2024 Name Board of Directors attendance Audit and Risk Committee attendance Nomination and Remuneration Committee attendance Investment Committee attendance Fixed remuneration (€) Attendance fees (€) Travel allowance (€) Total remuneration (€) Pertti Huuskonen 8/8 - 8/8 - 35,000 15,200 900 51,100 Katrien Kesteloot 8/8 5/5 - - 40,000 12,500 - 52,500 Elisabeth May-Roberti 8/8 - 8/8 - 45,000 15,200 - 60,200 Marleen Willekens 8/8 5/5 - - 50,000 12,500 - 62,500 Luc Plasman 7/8 - 8/8 3/3 45,000 16,900 - 61,900 Serge Wibaut 8/8 5/5 - 3/3 95,000 15,200 - 110,200 Henrike Waldburg 3/3 - - - 13,244.54 3,000 - 16,244.54 Kari Pitkin 5/5 - - - 21,707.65 5,000 900 27,607.65 Total 344,952.19 95,500 1,800 442,252.19 Competitive to relevant peers to attract, retain and motivate high calibre executives Long-Term Incentive Short-Term Incentive Fixed base remuneration up to ~ 45% of total as variable remuneration (50% short / 50% long term variable), with upwards opportunity for outperformance ~ 55% of total as fixed base remuneration • Driving financial and non-financial performance and generating long-term sus- tainable and profitable growth • Aligned with the Company’s financial performance goals, its long-term value creation strategy and risk tolerance • Aligned with shareholders interests with due consideration to shareholder and societal views, by complying with best practices in corporate governance, defining targets for the variable compensation plans based on financial and non-financial targets • Reflection of pay for performance principle • Set at market levels based on benchmark with European peer group Benefits • Differentiation based on experience and responsibility, such that the com- pensation of individual members of the Executive Committee is aligned with their respective responsibilities, relevant experience, required compe- tencies and performance AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 109 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 8.2.2 Remuneration structure 8.2.2.1 Benchmark study In alignment with the remuneration policy, remuneration of the members of the Executive Committee is regularly benchmarked against that of a peer group in order to ensure the mar- ket conformity of the remuneration package and enable the Company to continue to attract and retain internationally experienced top executive profiles, taking into account and evolving with the size, growth and internationalisation of the Company. The latest benchmark study was conducted in the first half of 2022 by the independent specialist consultant Willis Towers Watson. The bench- marked group consisted of the following Euro- pean peers: Cofinimmo, Immobel, Warehouses De Pauw, Gecina, Icade, Klepierre, Korian, Orpea, Deutsche Wohnen, Patrizia, Vonovia, Grand City Properties, Shurgard Self Storage, Eurocommer- cial Properties, Redevco, Fabege, Hemso, SBB, PSP Swiss Property, Assura, Hammerson, Land Securities Group and SEGRO. The current remuneration level of the members of the Executive Committee is around the 25 th percentile of the peer group. 8.2.2.2 Fixed remuneration The fixed remuneration consists of a fixed cash remuneration, as set out in the management agreements with individual members of the Exe- cutive Committee. The members of the Executive Committee receive no additional compensation to carry out the duties related to their office as Director of Aedifica and its subsidiaries and receive no remuneration from Aedifica’s subsidiaries. The table below details the number of shares acquired by the members of the Executive Com- mittee in previous years in application of the fixed long-term incentive plans and which have vested during the calendar year 2024. No new shares are issued anymore under these plans since the former fixed long-term incentive plans have been replaced by a variable long-term incentive plan in the context of the new remune- ra ion policy of 2021 (see previous annual reports). TUUSULA LILLYNKUJA - CHILDCARE CENTRE IN TUUSULA (FI) Name Identification of plan Acquisition date of LTIP shares Total number of LTIP shares acquired Acquisition price of LTIP shares (€) Number of LTIP shares vested in 2024 Number of shares not yet vested Stefaan Gielens 2021 LTIP 15/04/2021 964 84.25 482 - 2022 LTIP 14/03/2022 1,028 83.25 514 514 Ingrid Daerden 2021 LTIP 15/04/2021 552 84.25 276 - 2022 LTIP 14/03/2022 587 83.25 294 293 Sven Bogaerts 2021 LTIP 15/04/2021 551 84.25 276 - 2022 LTIP 14/03/2022 588 83.25 294 294 Charles- Antoine van Aelst 2021 LTIP 15/04/2021 551 84.25 276 - 2022 LTIP 14/03/2022 588 83.25 276 276 Raoul Thomassen 2021 LTIP 15/04/2021 459 84.25 230 - 2022 LTIP 14/03/2022 587 83.25 294 293 AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 110 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 8.2.2.3 Variable remuneration A. Short-term variable remuneration Structure As described in the remuneration policy, the members of the Executive Committee are entitled to an annual bonus subject to the realisation of both collective and personal objectives. The target bonus for performance is equal to 40% of the fixed annual remuneration. For actual per- formance below the defined threshold, no bonus is due. Moreover, the actual bonus is capped at a maximum of 50% of annual fixed remuneration paid for performance at, or in excess of the maxi- mum recognised performance level. The aggre- gate annual bonus may thus vary between 0% and 50% of the fixed annual remuneration, depending on the realisation of the performance targets. The targets, thresholds and maximum perfor- mance levels are determined each year at the beginning of the annual performance cycle. The actual bonus earned is determined based on a balanced mix of collective and personal, finan- cial and non-financial key performance indicators (KPIs) and their corresponding weighting factors. Performance over 2024 On 18 February 2025, the Board of Directors concluded, based on the recommendation of the Nomination and Remuneration Committee and after validation of the financial results as at 31 December 2024 by the Audit and Risk Com - mittee, that the quantitative and qualitative cri- teria set out for the annual short term incentive plan and determined in line with the remunera - tion policy were met for payment of the variable remuneration to the members of the Executive Committee for the 2024 financial year, as indi- cated in the table on the upper right. Targets for 2025 The performance levels under the short- term incentive for the collective financial and non-financial KPIs for the financial year 2025 have been set by the Board of Directors. In accor- dance with the revised remuneration policy and subject to the approval of the revised remunera - tion policy by the General Meeting of 13 May 2025, these were set as indicated in the framework on the lower right. In line with market practice and taking into account the commercial sensitivity of disclosing financial targets prospectively, the Company discloses the specific performance levels of the financial KPIs on a retrospective basis only. Short term variable – 2024 2024 performance objectives Weight Award min-max Targets & achievements Award Collective KPI Consolidated EPRA Earnings per share 70% 0-125% 125% min 4.46 target 4.70 max 4.93 actual 4.93 Operating margin 15% 0-125% 125% min 84.20 target 85.10 max 85.85 actual 85.90 Personal KPI Individual perfor- mance CEO 15% 0-125% Personal targets supporting the Company’s strategic imperatives ACTUAL: in line with expectations 100% Individual per - formance other members of Executive Com - mittee 15% 0-125% Personal targets supporting the Company’s strategic imperatives ACTUAL: in line with expectations 100% Short term variable – 2025 Financial KPIs (70%) EPS (58%) Operating margin (12%) Non-financial KPIs (30%) Individual (15%) Personal targets supporting the Company’s strategic imperatives Collective (15%) Tenant occupancy coverage min 70% target 72% max 74% AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 111 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION B. Long-term variable remuneration Structure As described in the remuneration policy, the members of the Executive Committee are entit- led to a long-term incentive award that is granted conditionally, the vesting of which is contingent on the realisation of key performance indicators (KPIs) over a period of three years (the perfor- mance cycle). The target incentive award for performance is equal to 40% of the annual fixed remuneration at the time of granting. For actual performance below the retained threshold performance level defined, no award is due. Moreover, the actual award is capped at a maximum of 50% of the annual fixed remuneration at grant which is paid for actual performance at or in excess of the maxi- mum recognised performance level. The aggre- gate long-term incentive may thus vary between 0 and 50% of the annual fixed remuneration at grant, depending on the realisation of the targets. The actually earned incentive award is deter- mined on the basis of a mix of collective, financial and non-financial, KPI-types (key performance indicators) and corresponding weighting factors. The Board of Directors determines for each three- year performance cycle the specific financial and non-financial KPIs (and their performance levels) selected within the framework of the KPI-types set in the remuneration policy. The incentive award is paid out in cash at the beginning of the year following the performance cycle, subject to applicable tax and social secu - rity regulations. The members of the Executive Committee can opt to invest the net cash award (after deduction of withholding tax), to acquire Company shares at 100/120 th of the market share price, provided that the Company shares are made unavailable and are not transferable during a period of at least 2 years following the acquisition of the shares. Performance 2022-2024 The performance cycle of the long-term incentive plan (period 2022-2024) was set by the Board of Directors in 2022 in line with the remuneration policy (see remuneration report over financial year 2021). On 18 February 2025, the Board of Directors concluded, based on the recommendation of the Nomination and Remuneration Committee and after validation of the financial results per 31 December 2024 by the Audit and Risk Com- mittee that the quantitative and qualitative cri- teria set out for the 2022-2024 performance cycle of the long-term incentive plan were met for payment of the variable remuneration to the members of the Executive Committee, as indi- cated in the table on the upper right. Targets ongoing performance cycles For each of the ongoing performance cycles under the long term incentive plan, the Board of Directors has in the beginning of the performance cycle selected the specific KPIs within the range of categories of financial and non-financial KPIs set out in the remuneration policy. The realisation of the KPIs for a performance cycle is evaluated at the beginning of the financial year following the end of the performance cycle. In line with market practice and taking into account the commercial sensitivity of disclosing financial targets prospectively, the Company discloses the perfor-mance levels of the finan- cial KPIs under the long term incentive plan on a retrospective basis only. An overview of the targets of the ongoing performance cycles are presented in the table on the lower right. Long term variable – 2022-2024 2022 - 2024 perfor- mance objectives Weight Award min-max Targets & achievements Award Financial KPI Average EPS growth (CAGR) 70% 0-125% 115.75% min 1.50% target 3.00% actual 4.26% max 5.00% Non- financial KPI EPC Coverage of Aedifica Group portfolio 15% 0-125% 125% min 80% target 85% max 90% actual 92% Employee satisfaction - average satisfaction rate in Great Place To Work survey 15% 0-125% 125% min 72.5% target 75% max 77% actual 85% Overview targets ongoing performance cycles Financial KPI Weight Non-financial KPIs Weight 2023- 2025 Average EPS growth (CAGR) 70% Net energy use intensity of the portfolio at the end of the performance cycle min 162 kw target 157 kw max 152 kw per square meter / per year (based on that part of the portfolio for which such data are available) 15% Employee satisfaction - average satisfaction rate in Great Place to Work survey 15% 2024- 2026 Average EPS growth (CAGR) Average EPRA Cost Ratio 40% 30% Net energy use intensity of the portfolio at the end of the performance cycle min 160 kw target 156 kw max 152 kw 15% per square meter / per year (based on that part of the portfolio for which such data are available) Employee satisfaction - average satisfaction rate in Great Place to Work survey min 73% target 76% max 78% 15% 2025- 2027 1 Relative total shareholder return Average EPS growth (CAGR) Average EPRA Cost ratio 10% 40% 20% Net energy use intensity of the portfolio at the end of the performance cycle min 153 kw target 150 kw max 147 kw 15% per square meter / per year (based on that part of the portfolio for which such data are available) Employee satisfaction - average satisfaction rate in Great Place To Work survey min 78% target 82% max 85% 15% min 72.5% target 75% max 77% 1. The Board of Directors has set the KPIs and performance levels for the new performance cycle 2025-2027 in accordance with the revised remuneration policy and subject to the approval of the revised remuneration policy by the General Meeting of 13 May 2025. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 112 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 8.2.2.4 Post-retirement benefits The members of the Executive Committee benefit from a group insurance policy consisting of a ‘defined-contribution scheme’, managed through private insurance plans with a guaranteed return. The contributions under this pension scheme are exclusively financed by the Company and do not require personal contributions from the beneficiaries. 8.2.2.5 Other components of the remuneration The members of the Executive Committee benefit from various additional benefits, including a repre - sentation allowance, hospitalisation and invalidity insurance and coverage for accidents at work, a laptop and smartphone. An apartment close to the Brussels office is also made available to the benefit of Mr Thomassen (given his residency in the Netherlands). 8.2.3 Total remuneration See table below for information purposes, note that the ratio between the total remuneration of the CEO for 2024 and the average remuneration of personnel amounts to 8; the ratio between the total remuneration of the CEO for 2024 and the lowest remuneration of personnel amounts to 24. 8.2.4 Contractual provisions of the management agreements 8.2.4.1 Termination of management agreements The management agreements signed with the members of the Executive Committee may be terminated either by each party giving notice according to the applicable legal and contractual conditions, or in the following circumstances: • immediately in case of serious misconduct; • immediately in the event that the market authority (FSMA) withdraws the fit and proper approval of the Executive Committee member; • immediately if the Executive Committee member does not act as Executive Committee member during a period of 3 months, except in case of illness or accident; • immediately if the Executive Committee member cannot act as Executive Committee member during a period of 6 months, in case of illness or accident. The only case in which a contractual indemnity granted to a member of the Executive Com- mittee could exceed 12 months of remuneration is in the event that the management agreement with the CEO is terminated by Aedifica within six months after a change of control (including a public takeover bid) and without serious fault on the part of the CEO; in this case, the CEO is eligible to obtain an indemnity equal to 18 months’ remuneration. The Nomination and Remuneration Committee recalls that this clause was included in the management agreement signed with the CEO in 2006. In accordance with article 12 of the Belgian Act of 6 April 2010, this indemnity pay - ment does therefore not require approval by the General Meeting. Since then, no such contractual clauses have been included in the agreements concluded with (other) members of Aedifica’s Executive Committee. In 2024 there were no departures from the Board of Directors or the Executive Committee and no severance payments have therefore been paid. 8.2.4.2 Clawback In line with the remuneration policy, the mana- gement agreements with the members of the Executive Committee provide for a clawback mechanism for both the (performance based) short- and long-term incentive plans whereby the Company has the right to reclaim from the beneficiary all or part of a variable remuneration up to 1 year after payment if it appears during that period that payment has been made based on incorrect information concerning the achie- vement of the performance targets underlying the variable remuneration or concerning the cir- cumstances on which the variable remuneration was dependent. There were no circumstances in 2024 which could have resulted in the use of the clawback. 8.2.5 Share ownership requirement All members of the Executive Committee possess the minimum number of shares in the Company as stipulated by the remuneration policy (see page 105 for specific number of shares held). Total remuneration of Executive Committee Fixed remuneration Variable remuneration Name Annualfixed remuneration (€) One-year variable Multi-year variable (LTIP 2022-2024) Pension plan contribution (€) Other benefits (€) Total remuneration (€) Ratio of fixed and variable remuneration (€) Stefaan Gielens (CEO) 666,666 323,333 256,723 77,985 26,443 1,351,150 57/43 Ingrid Daerden (CFO) 438,828 212,832 170,851 39,427 12,344 874,282 56/44 Raoul Thomassen (COO) 321,293 155,827 133,612 32,433 18,613 661,777 56/44 Charles-Antoine van Aelst (CIO) 355,421 172,379 145,139 34,453 16,576 723,967 56/44 Sven Bogaerts (CLO/CM&AO) 366,886 177,940 154,171 39,898 10,146 749,041 56/44 Total 2,149,093 1,042,310 860,496 224,197 84,122 4,360,217 AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 113 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 8.3 Comparative information on the change of remuneration and company performance over the past 5 financial years In an interest to increase transparency of past, current and future remuneration and in align- ment with investor interests and the legislative environment, the table below demonstrates the change of remuneration for members of the Board of Directors, the CEO and each of the other members of the Executive Committee (in office over the past financial year) in comparison to per- formance of the Group and average remuneration of Aedifica employees over a 5-year period. The Non-Executive Directors have always received a fixed remuneration (annual remune- ration + attendance fee) in cash. Since the financial year 2017/2018, the amounts of (elements of) the remuneration of the Non-Executive Directors have only been changed further to decisions of the General Meetings of 22 October 2019 1 and 11 May 2021 2 . Finally, the numbers in the below table are also influenced by: • the decision of the Board of Directors of 22 October 2019 to grant to Mr Hohl, Non- Executive Director at that time, an additional fixed annual remuneration of €5,000 for his special assignment at that time as responsible for the internal audit (in accordance with Article 17 of the RREC legislation), due until the end of this director mandate (26 October 2020); Annual change in % FY 2019/2020 3 vs 2018/2019 FY 2021 vs 2019/2020 FY 2022 vs 2021 FY 2023 vs 2022 FY 2024 vs 2023 Remuneration of the Non-Executive Directors 15% 29% 1% -7% 4% Remuneration of the CEO (total) Stefaan Gielens 12% - 10% 6% 14% 8% Average remuneration of the other members of the Executive Committee (total) Sven Bogaerts 62% - 7% 7% 15% 3% Ingrid Daerden 15% -8% 14% 20% 5% Charles-Antoine van Aelst 37% 8% 10% 14% 4% Raoul Thomassen - 4 37% 5% 9% Total cost of Executive Committee (including CEO) 15% 5 -10% 6 13% 7 14% 7 6% Company’s performance 8 Investment properties (including assets held for sale / rights of use / land reserve) 62% 29% 16% 3% 8% Investment properties (including assets held for sale / rights of use /land reserve) + WIP 64% 28% 16% 3% 6% Rental income 34% 24% 18% 15% 8% EPRA Earnings 34% 30% 20% 21% 7% EPRA Earnings per share 9% 3% 9% 6% -2% Average remuneration on a full-time equivalent basis of employees of Aedifica NV/SA 9 Employees of the Company 5% 8% 8% 12% 5% 1. Decision of the Ordinary General Meeting of 22 October 2019: 1) to increase the fixed annual remuneration of the Chair of the Audit and Risk Committee from €10,000 to €15,000 (resulting in a total fixed annual remuneration as Director and Chair of the Audit and Risk Committee of €30,000); and 2) to grant an additional fixed annual remuneration of €5,000 to each other member of the Audit and Risk Committee. 2. Decision of the Ordinary General Meeting of 11 May 2021 to increase 1) the fixed annual remuneration by €40,000 from €50,000 to €90,000 for the Chair of the Board of Direc- tors and 2) the fixed annual remuneration by €20,000 from €15,000 to €35,000 for each other Non-Executive Director. 3. For comparative purposes, the remuneration paid by the Com- pany over the extended financial year 2019/2020 (running from 1 July 2019 until 31 December 2020) was annualised from 18 months to 12 months. 4. No comparison can be made since Mr Thomassen’s mandate only started on 1 March 2021. 5. The change in remuneration can be explained by an increase in remuneration as from 1 July 2019 decided by the Board of Directors during the financial year 2018/2019 to bring the total remuneration within a range of what is considered on the basis of the benchmark performed in 2019 and the market rates of the peer group as competitive executive pay levels (see the detailed disclosure (including the list of the peer group) in the previous remuneration reports). 6. The downwards change in total remuneration of the Execu - tive Committee can be explained by (i) Raoul Thomassen’s mandate as COO and member of the Executive Committee which only started as from 1 March 2021 and (ii) the remune - ration base for the extended FY 2019/2020 which is equal to the received remuneration over 18 months annualised on 12 months. 7. The change in remuneration can be explained by the increase in remuneration as from 1 July 2022 decided by the Board of Directors on 29 March 2022 to bring the total remunera- tion within a range of what is considered on the basis of the benchmark performed in 2022 and the market rates of the peer group as competitive executive pay levels around the 25 th percentile of the peer group (see page 110 above and the detailed disclosure in the remuneration report 2022). 8. The calculation for the financial year 2019/2020 is based on annualised figures, except for the first two parameters (investment properties including assets held for sale/+ work in progress), which are based on the balance sheet total as at 31 December 2020. 9. The average remuneration of employees is calculated on a like-for-like basis taking into account the ‘wages, bonusses and direct social benefits’ on an annual basis divided by the number of employees. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 114 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION • the remuneration of Mr Franken in his capa- city as Director of Immobe NV/SA on behalf of the Company in accordance with article 73 of the RREC Law (according to which an Independent Director of Aedifica had to sit in the Board of Immobe as (then) Institutional RREC) for the period from 31 October 2018 until 27 March 2019 (including) (total remuneration for the aforementioned period of €6,000 fixed remuneration and €4,000 attendance fees); • the expansion of the Board of Directors on 8 June 2020 with Mr Pertti Huuskonen, inde- pendent Non-Executive Director. Other than that, the changes to the remuneration of the Non-Executive Directors vary thus only from year to year in view of the number of mee- tings of the Board of Directors and of the Board committees and attendance rates. 8.4 Main changes in remunera- tion level for 2025 8.4.1 Non-Executive Directors The remuneration policy requires that Directors’ remuneration be designed to attract individuals with the required range of skills and experience, in line with market trends and the long-term inte- rests of shareholders. In the coming years, a num- ber of Directors’ mandates (including the Chair mandate) will come to expire and new Directors will need to be recruited. At the end of 2024, in order to ensure that the level of remuneration is in line with market practise to continue to attract qualified high level profiles, the Nomination and Remuneration Committee has carried out an external comparative study in collaboration with an independent compensation consultant. This comparative study was conducted against a Euro- pean peer group 1 . The Nomination and Remune- ration Committee aims to align the remuneration offered with the median of the European peer group. The study revealed that the current remuneration offered to the independent Directors is below the median of the peer group and needs to be reviewed to bring it in line with market practice. This is essential to attract individuals from diffe - rent jurisdictions with the required skills and expe- rience (in particular with regard to succession planning for expiring mandates), also taking into account the increased complexity, responsibility and time commitment of a Director mandate. Upon recommendation of the Nomination and Remuneration Committee, the Board therefore proposes to the General Meeting of 13 May 2025 to increase the gross fixed remuneration (i) for the chair of the Board of Directors from €90,000 to €142,000 and (ii) for each of the other Non-Exe - cutive Directors from €35,000 to €42,000. Upon approval by the General Meeting, the remuneration of the Non-Executive Directors will be at the median level of the peer group; the remuneration of the Chair will be in the middle between the 25 th percentile and the median. No change is proposed with respect to attendance fees for Board and Committee meetings. 8.4.2 Members of the Executive Committee The Board of Directors sets the fixed remunera- tion annually, considering factors such as: • position and corresponding responsibilities; • experience and competencies; • applicable (social and tax) regulations; • international growth of the Company; • performance of the Company; • benchmarks with peers provided by the Nomi- nation and Remuneration Committee (ensuring that the Company can attract and retain expe- rienced executive profiles). The annual fixed remuneration may be reviewed and adapted taking into account the preceding factors and within the framework of the approved remuneration policy. MARTHA FLORA BREDA - CARE RESIDENCE IN BREDA (NL) 1. Composition of the peer group: Cofinimmo, Immobel, Warehouses De Pauw, Gecina, Icade, Klepierre, Clariane, Emeis, Deutsche Wohnen, Patrizia, Vonovia, Grand City Properties, Shurgard Self Storage, Eurocommercial Properties, Fabege, SBB, PSP Swiss Property, Assura, Hammerson, Land Securities Group and SEGRO. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 115 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 9. REGULATIONS AND PROCEDURES 9.1 Conflicts of interest The Directors, the members of the Executive Committee, the persons entrusted with the day- to-day management, the Executive Managers and the mandataries of the Company cannot act as counterparty in transactions with the Com - pany or with a company that controls it, nor can they derive any benefit from transactions with the above-mentioned companies, except when the transaction is carried out in the interest of the Company, within the planned investment policy and in accordance with normal market conditions. Where appropriate, the Company must inform the FSMA of such transactions in advance. The transactions are immediately made public and are explained in the Annual Financial Report and, where appropriate, in the Half-Year Financial Report. Articles 7:96 and 7:97 BCCA, as well as Article 37 RREC Act (and the exceptions under Article 38 of the RREC Act), always need to be taken into consideration. These legal provisions concern the procedures that need to be followed in case a conflict of interest arises. Conflicts of interest within the context of article 7:96 BCCA Excerpt from the minutes of the meeting of the Board of Directors of 20 February 2024 – remuneration of the members of the Executive Committee In accordance with Article 7:96 of the Belgian Code on Companies and Associations and Article 37 of the Belgian Regulated Real Estate Act, Mr Stefaan Gielens, Ms Ingrid Daerden, Mr Sven Bogaerts, Mr Charles-Antoine van Aelst and Mr Raoul Thomassen each declared that they have a possible interest of a patrimonial nature which conflicts with the Company’s interest, about which they will inform the Statutory Auditor. This conflict of interest arises because the Board of Directors will deliberate and resolve on certain elements of the remuneration of the members of the Executive Committee. All members of the Executive Committee then leave the meeting with respect to the deliberation and decision-making on the agenda items 6b, 6c, 6d and 6e. a. Nomination and Remuneration Committee (CNR) – reporting The Chairperson of the Nomination and Remune- ration Committee reports on the meeting of the Nomination and Remuneration Committee of 14 February 2024. b. Remuneration of the members of the Executive Committee: STI variable remuneration 2023 The Board of Directors has set on 15 February 2023, in line with the remuneration policy, the per- sonal KPIs as well as the performance levels of the collective KPIs for the short-term incentive (STI) of the members of the Executive Committee for the financial year 2023 (which have been included in the addenda to the management contracts). The realisation of the performance levels and the proposed bonus amounts to be granted to the members of the Executive Committee under the STI have been the subject of an overall eva - luation by the Nomination and Remuneration Committee on the basis of the (draft) financial figures as approved earlier this meeting by the Board of Directors. The Board of Directors concludes, based on the recommendation of the Nomination and Remuneration Committee and after validation of the financial figures per 31 December 2023 by the Audit and Risk Committee that for the payment of the STI to the members of the Executive Com- mittee for the financial year 2023: (i) with respect to the collective KPIs: a. consolidated EPRA Earnings: the maximum performance levels were achieved (125%); and b. operating margin: the performance was just below the target performance level (89%); (ii) with respect to the individual KPIs: the maxi - mum performance levels were achieved (125%). c. Remuneration of the members of the Executive Committee: STI variable 2024: KPI’s + performance levels Pursuant to the remuneration policy, the KPIs and their respective relative weighting for the STI of the members of the Executive Committee are set as follows: Collective KPIs (85%) Personal KPIs (15%) EPS (70%) Operating margin (15%) Personal targets supporting the Company’s strategic imperatives The Nomination and Remuneration Committee has made a proposal on the personal KPIs and on the performance levels of the collective KPIs and corresponding bonus levels under the STI 2024 (see Annex 1) which is discussed by the Board of Directors. As described in the remuneration policy, the target bonus for target performance is 40% of the annual fixed remuneration. Since no bonus is due for actual performance below the retained threshold level, and since in case of performance at, or in excess of the maximum recognised per- formance level, the bonus is capped at a maxi- mum of 50% of the annual fixed remuneration, the STI bonus will consequently vary between 0 and 50% of the annual fixed remuneration, depending on the realisation of the targets. Upon deliberation, the Board of Directors appro - ves the Nomination and Remuneration Com- mittee’s proposal and requests the Nomination and Remuneration Committee to prepare the addenda to the management agreements to include this decision. HELSINKI KÄRÄJÄTUVANTIE - CHILDCARE CENTRE IN HELSINKI (FI) AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 116 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION d. Remuneration of the members of the Executive Committee: LTI variable for the performance cycle 2021-2023: vesting The Board of Directors has set on 30 March 2021, in line with the remuneration policy, the KPIs and the corresponding performance levels for the long-term incentive (LTI) of the members of the Executive Committee for the performance cycle 2021-2023 (which have been included in the addenda to the management contracts). The realisation of the performance levels and the proposed bonus amounts to be granted to the members of the Executive Committee under the LTI have been the subject of an overall eva - luation by the Nomination and Remuneration Committee on the basis of the (draft) financial figures as approved earlier this meeting by the Board of Directors. The Board of Directors concludes, based on the recommendation of the Nomina - tion and Remuneration Committee and after validation of the financial figures per 31 December 2023 by the Audit and Risk Com- mittee that for the payment of the LTI to the members of the Executive Committee for the performance cycle 2021-2023 the maximum performance levels under all KPIs were achieved. e. LTI variable for the performance cycle 2024-2026: KPIs + performance levels In accordance with the remuneration policy (as approved by the Board of Directors), the specific KPIs and performance levels for the performance cycle 2024-2026 in the context of the LTI for the members of the Executive Committee must be based on the following mix of collective financial and non-financial types of KPIs and their respec - tive relative weighting: Financial KPI-types (70%) Non-Financial KPI-types (30%) Relative shareholder return, or Earnings per share, or Dividend per share Environmental, social and governance (ESG) criteria The Nomination and Remuneration Committee has made on that basis a proposal for the specific KPIs, applicable performance levels and corres- ponding bonus levels for the performance cycle 2024-2026 (see Annex 2) which is discussed by the Board of Directors. As described in the remuneration policy, the tar - get bonus for target performance is 40% of the annual fixed remuneration at the time of granting. Since no bonus is due for actual performance below the retained threshold level, and since in case of performance at, or in excess of the maxi - mum recognised performance level, the bonus is capped at a maximum of 50% of the annual fixed remuneration at grant, the LTI bonus will consequently vary between 0 and 50% of the annual fixed remuneration at grant, depending on the realisation of the targets. Upon deliberation, the Board of Directors appro - ves the Nomination and Remuneration Com- mittee’s proposal for the performance cycle 2024-2026 and requests the Nomination and Remuneration Committee to prepare the addenda to the management agreements to include this decision. Conflicts of interest in the context of article 37 RREC Act In 2024, Hoivatilat Oy, 100% subsidiary of Aedi - fica, has commissioned – under standard mar- ket terms – a minor consultancy mission with Mr Huuskonen, independent director of Aedifica. Given the limited scope, this did not lead to the application of the procedure set forth in section 7:97, §1 BCCA. On 26 January 2024, Aedifica UK Limited, 100% subsidiary of Aedifica, has acquired the shares of our joint venture partner in one of our UK JV (perimeter) companies. Aedifica UK owned 25% + 1 share in this company. In the context of the transaction, Aedifica has acquired the remaining shares. The acquisition was carried out under standard market terms and in accordance with the terms and conditions set out in the JV agreement already entered into in 2021. The transaction sup- ported our corporate strategy as the main asset of the joint venture was a residential care home, the construction of which was completed prior to the transaction date. As from the transaction date, a long-term lease agreement with the operator entered into force. On 27 March 2024, Aedifica UK Limited, 100% subsidiary of Aedifica, has acquired the shares of our joint venture partner in one of our UK JV (perimeter) companies. Aedifica UK owned 25% + 1 share in this company. In the context of the transaction, Aedifica has acquired the remaining shares. The acquisition was carried out under standard market terms and in accordance with the terms and conditions set out in the JV agreement already entered into in 2021. The transaction sup- ported our corporate strategy as the main asset of the joint venture was a residential care home, the construction of which was completed prior to the transaction date. As from the transaction date, a long-term lease agreement with the operator entered into force. These potential conflicts of interest have been notified to the FSMA in accordance with article 37 RREC Act. 9.2 Compliance officer The independent compliance function is per- formed in accordance with Article 17 RREC Act. Mr Thomas Moerman, Group General Counsel, performs the function of compliance officer. His duties include monitoring compliance with the rules of conduct and the declarations relating to transactions in shares of the Company carried out by Directors and other persons appointed by the latter on their own account in order to limit the risk of insider trading. Monitoring transactions with Aedifica shares The compliance officer draws up the list of per- sons who have information that they know or should know is privileged information and updates this list. He ensures that the persons concerned are informed of their inclusion on that list. In addition, he ensures that the Board of Directors determines the so-called ‘closed periods’. During these periods, transactions in Aedifica’s financial instruments or financial derivatives are prohibited for Aedifica’s Directors and for all persons on the aforementioned list, as well as for all persons with whom they are closely linked. The closed periods are as follows: • the 30 calendar days preceding the publication date of the annual and half-year results; • the 15 calendar days preceding the publication date of the quarterly results; • any period during which inside information is known; • any other period that the compliance officer considers to be a sensitive period, taking into account the developments occurring within the Company at that moment; always ending one hour after publication of the annual, half-year or quarterly results respectively by means of a press release on the Company’s website. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 117 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Restrictions on transactions by Directors and members of the Executive Committee Directors, members of the Executive Committee and persons closely related to them who intend to carry out transactions involving financial ins- truments or financial derivatives of Aedifica must notify the compliance officer in writing at least 48 hours before the transactions are carried out. If the compliance officer himself intends to carry out such transactions, he must notify the chair of the Board of Directors in writing at least three business days before the transactions are car - ried out. The compliance officer or, where appli- cable, the chair of the Board of Directors, shall inform the person concerned within 48 hours of receipt of the written notification whether, in his opinion, there are reasons to believe that the planned transaction constitutes a regula- tory violation. The Directors, the members of the Executive Committee and the persons clo- sely related to them must confirm the execu- tion of the transactions to the Company within two working days. The compliance officer must keep a written record of all notifications regar- ding the planned and completed transactions and confirm receipt of such notifications in writing. The Directors, the members of the Executive Committee and the persons closely related to them must report to the FSMA any transactions in shares of the Company that they carry out of their own account and the value of which exceeds €20,000 on a calendar year basis. The reporting obligation referred to above must be fulfilled no later than three working days after the transac - tions have been carried out. 9.3 Reporting irregularities Aedifica has an internal procedure for reporting potential or actual violations of the applicable legal regulations, its Corporate Governance Char- ter and its Code of Conduct (Speak Up Policy). 9.4 Research and development Aedifica does not carry out any research and development activities as referred to in Articles 3:6 and 3:32 BCCA. 9.5 Capital increases within the scope of the authorised capital There have been no capital increases within the scope of the authorised capital over 2024. 9.6 Elements that are liable to have consequences in the event of a public takeover bid In accordance with Article 34 of the Belgian Royal Decree of 14 November 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market, Aedifica lists and, where appropriate, explains the following ele- ments, insofar as these elements are liable to result in a public takeover bid. Capital structure Underwritten and fully paid-up capital There is only one type of share, with no indication of nominal value: all shares are subscribed and all are fully paid up. As at 31 December 2024, the capital amounts to €1,254,742,260.03. It is repre- sented by 47,550,119 shares, each representing 1/47,550,119 rd of the capital. Rights and obligations attached to Aedifica shares All holders of Aedifica shares have equal rights and obligations. As regards these rights and obli- gations, reference is first made to the regulations applicable to Aedifica: the Belgian Companies and Associations Code, the Belgian Law of 12 May 2014 on regulated real estate companies, and the Belgian Royal Decree of 13 July 2014 on regulated real estate companies. Reference must also be made to the relevant provisions contained in the Articles of Association (see section 4 of the ‘Per - manent documents’ chapter). Legal, statutory or conventional restrictions on the transfer of securities The transfer of Aedifica’s shares is not subject to any legal or statutory restrictions. In order to guarantee sufficient liquidity to investors (and potential investors) in Aedifica’s shares, Article 21 RREC Act provides that Aedifica’s shares are admitted to trading on a regulated market. All 47,550,119 Aedifica shares are listed on Euronext Brussels and Euronext Amsterdam (regulated markets). Special controlling rights Aedifica does not have holders of securities to which special controlling rights are attached. Mechanism for controlling any employee share plan when controlling rights are not directly exercised by employees Aedifica has no (such) employee share plan. Legal or statutory restrictions on the exercise of voting rights As at 31 December 2024, Aedifica held 8,067 treasury shares. Shareholder agreements known to Aedifica that may restrict the transfer of securities and/or the exercise of voting rights As far as Aedifica is aware, there are no sharehol- der agreements that may restrict the transfer of securities and/or the exercise of voting rights. Rules for the appointment and replacement of the members of the Board of Directors and for the amendment of Aedifica’s Articles of Association Appointment and replacement of the members of the Board of Directors In accordance with Article 10 of the Articles of Association, the members of the Board of Direc- tors are appointed for a maximum term of three years by the General Meeting of Shareholders, which can also remove them at any time. They may be re-elected. The mandate of the outgoing and non-re-elected directors ends immediately after the General Meeting that provides for the new appointments. If one or more mandates become vacant, the remaining Directors, meeting in council, can pro- visionally provide for replacement until the next General Meeting, which then decides on the final appointment. This right becomes an obligation each time the number of Directors effectively in office or the number of Independent Direc- tors no longer reaches the statutory minimum. A Director appointed to replace another person shall complete the mandate of the person he or she replaces. Amendments to the Articles of Association As regards amendments to the Articles of Asso- ciation, reference is made to the regulations appli- cable to Aedifica. In particular, it should be noted that any draft amendment to Aedifica’s Articles of Association must be approved in advance by the FSMA. AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 118 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Powers of the management body, in particular regarding the possibility of issuing or repurchasing shares In accordance with Article 6.4 of the Articles of Association, the Board of Directors is authorised to increase the capital one or more times, on the dates and according to the modalities deter- mined by the Board of Directors, up to a maximum amount of: 1) 50% of the capital amount on the date of the Extraordinary General Meeting of 14 May 2024, rounded down to the euro cent, if applicable, for capital increases by way of contribution in cash, whereby a provision is made for the pos - sibility of exercising the statutory preferential subscription right or the priority allocation right by the shareholders of the Company; 2) 20% of the capital amount on the date of the Extraordinary General Meeting of 14 May 2024, rounded down to the euro cent, if applicable, for capital increases within the scope of the distribution of an optional dividend; 3) 10% of the capital amount on the date of the Extraordinary General Meeting of 14 May 2024, rounded down to the euro cent, if applicable, for a) capital increases by way of contribution in kind, b) capital increases by way of contribution in cash without the possibility of exercising the preferential right or the irreducible priority allocation right, or c) any other form of capital increase; on the understanding that the capital within the scope of the authorised capital can never be increased by an amount higher than the capital on the date of the Extraordinary General Meeting that has approved the authorisation. This permission is granted for a renewable period of 2 years, starting from the publication of the decision of the Extraordinary General Meeting of 14 May 2024 in the Appendices to the Belgian Official Gazette. As at 31 December 2024, the balance of the authorised capital amounts to 1) €627,371,130.01 if the capital increase to be realised provides for the possibility of the shareholders of the Company exercising the preferential right or the irredu- cible priority allocation right, 2) €250,948,452.00 for capital increases within the framework of the distribution of an optional dividend, and 3) €125,474,226.00 for a. capital increases by way of contribution in kind, b. capital increases by way of contribution in cash without the possibility of the shareholders of the Company exercising the preferential right or the irreducible priority alloca- tion right, or c. any other form of capital increase. Taking into account the total maximum amount of the authorised capital (€1,254,742,260.03), the available room under the authorisation amounts to the full amount of €1,254,742,260.03. Moreover, in accordance with Article 6.2 of the Articles of Association, Aedifica can acquire, pledge or dispose of its own shares, in accor- dance with the conditions provided for in the Bel- gian Companies and Associations Code, subject to notification of the transaction to the FSMA. As at 31 December 2024, Aedifica had pledged none of its own shares. Important agreements to which Aedifica is a party and which enter into force, are amended or expire in the event of a change of control over Aedifica following a public takeover bid It is common practice that credit agreements contain so-called change of control clauses that allow the lender to suspend the use of the credit and/or demand immediate repayment of the outstanding loans, interest and other outstanding amounts in the event of a change of control over the Company. The following credit agreements contain such change of control clauses: • the credit agreements entered into with BNP Paribas Fortis on 14 November 2017 (maturing on 31 January 2025), 31 October 2019, 23 June 2021, 6 July 2022, 15 June 2023, 27 June 2024, 17 July 2024 and 29 November 2024 (starting on 31 January 2025); • the credit agreements entered into with KBC Bank on 12 November 2019, 8 June 2021, 7 April 2022, 30 January 2023 and 26 September 2024; • the credit agreement entered into with Caisse d’Epargne Hauts De France on 4 January 2018; • the credit agreements entered into with Banque Européenne du Crédit Mutuel on 25 July 2023; • the credit agreements entered into with Belfius Bank on 14 May 2018 (matu - ring on 31 May 2025), 21 December 2018, 18 May 2020, 12 July 2021, 31 March 2022, 30 March 2023, 12 April 2024 and 24 December 2024 (starting on 31 May 2025); • the credit agreements entered into with ING Belgium on 15 May 2018 (maturing on 10 January 2025), 15 July 2021, 14 June 2022, 22 November 2022, 1 September 2023 and 31 December 2024; • the credit agreements entered into with Triodos Bank on 15 May 2018 (maturing on 31 March 2025) and 19 October 2023 and 14 November 2024 (starting on 31 March 2025); • the credit agreements entered into with Argenta Spaarbank and Argenta Assuranties on 20 December 2017; • the syndicated loan agreement entered into with the BPCE group on 29 June 2018; • the credit agreements entered into with ABN Amro Bank on 22 November 2021 (maturing on 31 March 2025), 28 July 2022, 15 June 2023, 7 December 2023 and 14 February 2024 (starting on 31 March 2025); • the credit agreements entered into with Société Générale on 31 August 2020, 8 June 2023 and 23 December 2024; • the credit agreement entered into with Intesa Sanpaolo S.p.A., Amsterdam branch, on 8 June 2022; • the credit agreement entered into with Bank Of China (EUROPE) S.A. on 1 July 2022; • the credit agreement entered into with Stichting Pensioenfonds Zorg en Welzijn on 22 October 2024; • the Company’s guarantees towards the Euro- pean Investment Bank, in favour of Hoivatilat Oyj (a wholly-owned subsidiary of the Com- pany) for the fulfilment of the latter’s payment obligations under the credit agreements it entered into with the European Investment Bank on 23 April 2018 and 22 May 2019 and subsequently and most recently amended on 28 February 2023; • the Company’s guarantees towards OP, in favour of Hoivatilat Oyj (a wholly-owned sub- sidiary of the Company) for the fulfilment of the latter’s payment obligations under the credit agreements it entered into with OP on 5 March 2021 and 5 December 2023; HEERENHAGE - SENIOR HOUSING IN HEERENHAGE (NL) AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 119 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION In addition, the treasury notes issued on 17 December 2018 under the long-term treasury notes programme contain a change of control clause. The USPP Bond of 17 February 2021 and the debt instruments subsequently issued on 3 March 2021 between the Company and the holders of such debt instruments also contain provisions granting early redemption of the debt instru- ments in the event of a change of control over the Company. The Sustainability Bond issued by the Company on 2 September 2021 also contains provisions granting early redemption of the debt instru- ments in the event of a change of control over the Company. Each of these clauses relating to a change of control was approved by the General Meeting (see minutes of previous General Meetings), apart from the clauses included in the cre - dit and debt agreements dating from after the last Ordinary General Meeting of 14 May 2024, for which approval of the change of control clause will be requested at the General Meeting of 13 May 2025. Agreements established between Aedifica and its Directors or employees providing for compensation if, following a public takeover bid, the Directors resign or must resign without a valid reason or the employment of the employees is terminated If the management agreement with the CEO is ter- minated within six months of a public takeover bid by one of the parties without serious misconduct, the CEO is entitled to a severance payment equal to eighteen months’ remuneration. No such contractual clause was included in the agreements established with the other members of the Executive Committee or with Aedifica employees. 10. GROUP STRUCTURE As of 31 December 2024, Aedifica NV/SA holds perimeter companies in nine different countries: Belgium, Luxembourg, Germany, the Nether- lands, the United Kingdom (including the British Crown Dependencies Jersey and Isle of Man), Finland, Sweden, Ireland and Spain. The real estate located in a certain country is always held by a perimeter company of Aedifica in that certain country, with the exception of (i) certain assets located in Germany which are not only held by the German perimeter companies, but also partially by Aedifica NV/SA and Aedifica’s Luxembourg perimeter companies and (ii) the asset located in the Isle of Man which is held by a Jersey perimeter company. The organisational chart on pages 121-123 shows the Group’s perimeter as well as its share in each perimeter company. HEERENHAGE - SENIOR HOUSING IN HEERENHAGE (NL) AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 120 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Aedifica NV/SA: Group Structure as at 31 December 2024 Aedifica Invest NV/SA Aedifica NV/SA Aedifica Luxemburg III SCS Aedifica Asset Management GmbH Aedifica Nederland 2 BV Aedifica Nederland BV Aedifica Nederland 3 BV Aedifica Nederland 4 BV Aedifica Nederland Joint Venture BV Aedifica Luxemburg IV SCS Aedifica Verwaltungs GmbH Aedifica Luxemburg I SCS Aedifica Luxemburg V SCS Aedifica Luxemburg VII SCS SPVs in Finland (see pages 178-181) Aedifica Luxemburg II SCS Aedifica Luxemburg VI SCS Aedifica Luxemburg VIII SCS Aedifica Ireland Limited Hoivatilat AB SPVs in Sweden (see page 123) Aedifica Residenzen Nord GmbH & Co. KG Aedifica Services BV Prudent Capital Limited JKP Nursing Home Limited Enthree Limited Millennial Generation Limited Edge Fusion Limited Solcrea Limited Aedifica Sonneborgh Real Estate BV Aedifica Sonneborgh Ontwikkeling BV Aedifica UK corporate structure (see page 122) Aureit Holding Oy AED RE Espana 1 S.L.U. Le Douaire Invest BV/SRL Hoivatilat Oyj AED RE Espana 2 S.L.U. RF-Invest NV/SA Aedifica Residenzen 1 GmbH & Co. KG Aedifica Residenzen 2 GmbH Aedifica Residenzen 3 GmbH Aedifica Residenzen West GmbH Aedifica Residenzen 5 GmbH Aedifica Residenzen 4 GmbH Aedifica Residenzen 6 GmbH 100% AED 94 % AI 6 % 1 94 % AED 6 % 1 100 % AED 100 % AED 100 % AED 100 % AED 100 % AED NL 100 % AED 100 % AED 100 % AED 94 % AI 6 % 1 100% AED IE 100% AED 100% AED IE 100% AED 100% AED IE 100% AED 100% AED IE 100% AED 100% AED IE 100% AED IE 100 % AED 94 % AI 6 % 1 94 % AI 6 % 1 94 % AI 6 % 1 94 % AI 6 % 1 94 % AI 6 % 1 94 % AI 6 % 1 100% Aureit Holding 100% AED 100% AED 100% Hoivatilat Oyj 100% Hoivatilat Oyj 75% AED 25% 3 50% AED 50% 2 Immobe NV/SA (GVBF/FIIS) 75 % + 1 4 / 25 % -1 AED 1. The residual 6% is held by an investor that is unrelated to Aedifica. 2. The residual 50% is held by a partner that is unrelated to Aedifica. 3. The residual 25% is held by a partner that is unrelated to Aedifica. 4. The residual 75%+1 is held by a partner that is unrelated to Aedifica. Parent company, listed on Euronext Associate company in Belgium Permanent subsidiaries in Belgium Permanent subsidiaries in Luxembourg Permanent subsidiaries in Germany Subsidiaries in the United Kingdom and Jersey Permanent subsidiaries in Finland Permanent subsidiaries in Sweden Permanent subsidiaries in Ireland Permanent subsidiaries in the Netherlands Permanent subsidiaries in Spain Temporary SPVs in Belgium (to be merged with Aedifica NV/SA in the coming months) 94 % AED 6 % 1 94 % AED 6 % 1 94 % AED 6 % 1 94 % AED 6 % 1 94 % AED 6 % 1 94 % AED 6 % 1 94 % AED 6 % 1 AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 121 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Aedifica - UK Corporate Structure as at 31 December 2024 Patient Properties (Eltandia) Limited 100 % 100% 100% 100% 100%100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%100% 100% 100%100% 100% 100% Patient Properties (Windmill) Limited 100 % AED GVBF 1 AED UK Holdings Limited AED Finance 1 Limited AED Finance 2 Limited AED GVBF 4 AED GVBF 7 AED GVBF 10 AED GVBF 11AED GVBF 2 AED GVBF 5 AED GVBF 8AED GVBF 3 AED GVBF 6 AED GVBF 9 100% 100% 100% 100% 100% 100%100% Sapphire Properties (2016) Limited Aedifica UK Management Limited Aedifica UK (Ampthill) Limited Aedifica UK (Dawlish) Limited Marches Care Holdings Limited Aedifica UK (Biddenham) Limited Aedifica UK (Lincoln) Limited Quercus Homes 2018 Limited Maple Court Nursing Home Limited Aedifica UK (Hailsham) Limited Priesty Fields Developments Limited LV Holdings Limited 100% 100% LV St Josephs Limited LV Charrieres Limited Aedifica UK (Whitechapel) Limited Aedifica UK (Marston) Limited Aedifica UK (Hessle) Limited Aedifica IM (Port Erin) Limited Aedifica UK Limited Parent company, listed on Euronext Subsidiaries in Belgium Subsidiaries in Jersey Subsidiaries in the UK Subsidiaries in Isle of Man Aedifica NV/SA 9,09% 9,09% 9,09% 9,09% 9,09%9,09% 9,09% 9,09%9,09% 9,09% 9,09% AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 122 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Hoivatilat Oyj Hoivatilat AB Huddinge Svartviksvägen AB Hoivatilat Holding 2 AB Staffanstorp Borggård 1:553 AB Hoivatilat Holding 4 AB Uppsala Norby LSS Boende AB Hoivatilat Holding 3 AB Oskarshamn Emmekalv LSS boende AB Strängnäs Bivägen AB Norrtälje Östhamra Förskola AB Vallentuna Västlunda LSS boende AB Uppsala Almungeberg 1 LSS boende AB Uppsala Bäling Lövsta 2 LSS boende AB Tierp LSS boende AB Lidingö Islinge Förskola AB Hoivatilat Projekt 1 AB Nynäshamn Skola Sittesta AB Fanna 24:19 AB Örebro Törsjö LSS boende AB Laholm Nyby LSS boende AB Växjö LSS boende AB Uppsala Bäling Lövsta 1 LSS boende AB Upplands Väsby Havregatan Förskola AB Nyköping Anderbäck LSS boende AB Enköping Hässlinge LSS boende AB Uppsala Sunnersta LSS boende AB Örebro Hovsta Gryt LSS boende AB Älmhult kunskapsgatan AB Hoivatilat Holding AB Förskola Kalleberga AB Gråmunkehöga LSS boende AB Heby LSS boende AB Förskola Mesta 6:56 AB Nyköping Bergshammar LSS Boende AB Österåker Singö LSS Boende AB Uppsala Almungeberg 2 LSS boende AB Hoivatilat Holding 5 AB Aedifica NV/SA Aedifica - Hoivatilat’s SPVs in Sweden as at 31 December 2024 Parent company, listed on Euronext Subsidiary in Finland Subsidiaries in Sweden AEDIFICAannual report 2024 - CORPORATE GOVERNANCE STATEMENT 123 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ‘Overall, Aedifica’s risk level in 2024 has stabilised compared to 2023.’ ‘Overall, Aedifica’s risk level in 2024 has stabilised compared to 2023.’ Risk factors AEDIFICAannual report 2024 - RISK FACTORS 124 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION annual report 2024 - RISK FACTORS Aediﬁ ca’s strategy aims to create long- term value for all its stakeholders by focu- sing on investing in European healthcare real estate. Through its ‘buy and hold’ strategy, the Group pursues a solid and growing revenue stream and dividend while maintaining a robust and diversi- ﬁ ed balance sheet. However, Aediﬁ ca’s operations are carried out in a constantly changing environment that exposes the Group to internal and external risks and uncertainties that could impact its ability to achieve its objectives. Aediﬁ ca is committed to managing these risks and uncertainties to the best of its ability by continuously monitoring their indicators. Moreover, Aediﬁ ca ﬁ rmly belie- ves that risk management should not only be discussed at Board level, but also inte- grated into the Group’s corporate culture to create an environment where all employees are aware of the Group’s risks and to better identify, monitor and miti- gate them. In 2024, Aediﬁ ca updated its risk matrix, taking into account the impact of recent macroeconomic events, such as the evolution of interest rates, inﬂ ation and tenant solvency. This led to the inclu- sion of two new risk factors in the list of the most material and relevant risks: the risks related to development pro- jects and asset rotation/disposals. The ﬁ nancing risk has been downgraded to second place as interest rates began to decrease in 2024, while the risk related to property valuation was downgraded to fourth place as the fair value of Aediﬁ ca’s real estate portfolio increased in 2024. AEDIFICAannual report 2024 - RISK FACTORS 125 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION MOST MATERIAL RISKS Aedifica identifies its key risks by considering their impact on the Group’s KPIs and their likelihood of occurrence (see impact/likelihood heath map). During the 2024 risk assessment update (which considers all identified risks from 1 January 2024 to 31 December 2024), 32 risks were identified and monitored. Of these 32 risks, Aedifica reports the 11 most material and relevant risks in this chapter. The assessment considered the likelihood and impact of each risk, taking into account any exis- ting mitigation measures taken by Aedifica. The other risks were either not Group-specific, or the risk assessment concluded that they were not to be considered as having a significant impact on the Group’s strategy. Overall, Aedifica’s risk level in 2024 seems to have stabilised compared to 2023. This is mainly due to the fact that interest rates have started to decline, which should have a positive impact on Aedifica’s future investments and debt refinancing. However, tenant profitability remains an attention point in some of the countries where Aedifica operates, although operator occupancy rates and revenues per resident have improved in 2024. External growth was limited in 2024, mainly due to the fact that Aedifica’s share price was below its net asset value, making the cost of equity too high to consider expansion. As a result, the company has shifted its strategy from external growth to improving the quality of its portfolio. It is acknowledged that there may be other risk factors which are currently unknown, unfore- seeable and/or which, in the light of the informa- tion available to Aedifica at the date of publication of this annual report, are considered remote or immaterial to the Group, its operations and/or its financial position. The following overview is therefore not exhaustive and was prepared on the basis of the information available at the date of publication of this annual report. Ranking Risk category Risk name 1 Real estate portfolio Rents and tenants 2 Financial Financing risk 3 Strategic Non-growth 4 Market Fair value of the real estate 5 Sustainability Climate change 6 Legal Regulatory changes 7 Real estate portfolio Development projects 8 Strategic Asset rotation/disposal 9 Market Inflation 10 Financial Debt structure 11 Financial Exchange rate likelihood impact 4 3 2 1 0 0 1 2 3 4 SENIORENQUARTIER FREDENBECK - CARE HOME IN FREDENBECK (DE) IMPACT / LIKELIHOOD HEAT MAP 5 4 8 7 1 9 2 3 6 10 11 AEDIFICAannual report 2024 - RISK FACTORS 126 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 1. Rents and tenants Risk category: Real estate portfolio Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? The Group’s total turnover consists of rental income from buildings leased to professional care opera- tors. A gloomy economic climate or other factors can have a material impact on the rent payment capacity of Aedifica’s tenants. For example, the energy crisis along with rising labour costs, have led to a decrease in operators’ profitability, has put pressure on opera - tors' margins and, in turn, may have weakened their capacity to pay rent. In some cases, at the request of the tenant, the Group may decide to (temporarily) reduce the rent of certain assets or not to fully index them in order to reba- lance the tenants' rent levels in relation to their future income potential. Furthermore, when tenants leave on a due date or when the lease expires, new leases may yield lower rents than current leases. In a worst-case scenario, a tenant may default and the rental income may be completely lost, which would be exacerbated if a new tenant could not be found quickly and/or the new tenant asked for a rent reduction. This risk would have a negative impact on the Group’s operating and net results, and hence on earnings per share and therefore on the Company’s ability to pay dividends. • As at 31 December 2024: - outstanding trade receivables amount to €19.5 million, including impairment; - impairment provisions on outstanding trade receivables amount to €1.9 million. • A decrease in rental income, as the case may be pursuant to renegotiations, will affect earnings per share. On 31 December 2024, a 1% decrease in rental income would reduce earnings per share by €0.07. • The Group is not insured against tenant default. • Aedifica performs a thorough analysis of the ope - rator’s business plan before investing in a new project. • Aedifica monitors the financial performance of its tenants. • Aedifica has implemented procedures for billing and monitoring tenants with payment difficulties. • Aedifica has secured rental guarantees (€71,4 million, in the form of bank guarantees, rent deposits (type of credit insurance), parent guarantees or other types of security interest) with operators, in line with established market practice in each of the various jurisdictions in which the Group is active. • Aedifica spreads its exposure to tenants by diversifying its tenant base (wide range of pre- dominantly for-profit operators and growing segments of public and non-profit operators). • Diversification/concentration in tenant base (the Clariane group – the tenant with the largest share in Aedifica’s rental income – represents 9% of the Group’s rental income). • Diversification in asset type within the healthcare real estate segment. • Creditworthiness of tenants. • Evolution of tenant KPIs (EBITDARM, rent cover, occupancy rate, etc.). • Deviation of rental income from budget. AEDIFICAannual report 2024 - RISK FACTORS 127 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 2. Financing risk Risk category: Financial Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? As a RREC, Aedifica is largely dependent on its ability (and the terms against which it is able) to secure funds – whether through borrowings or shareholder’s equity – to finance its activities and investments. Various negative scenarios, such as: • in general: - disruptions in the international financial debt and equity capital markets; - a reduction in banks’ lending capacities and/ or willingness; - a deterioration in the Group’s creditworthiness; • and more specifically: - an increase of interest rates; - a negative investor perception towards real estate companies in general and/or the real estate segment the Group invests in particularly; may occur, making it difficult or even impossible to secure new or renew (on favourable terms) debt and/ or equity financing. A material increase in the Group’s cost of capital will have an impact on the profitability of the Group as a whole and on new investments, while the unavailabi- lity of financing may ultimately lead to liquidity issues. • The unavailability of financial resources (via cash flow or available credit facilities) to pay interest and operating costs, pay dividends and repay outstan- ding capital on loans at the relevant maturity date. • Financing at an increased cost will lead to a decrease in profitability. An increase of 100 basis points in Euri - bor interest rates implies a negative effect on EPRA Earnings of €1.4 million, corresponding to €0.03 per share (taking into account derivatives in place as at 31 December 2024). As at 31 December 2024: - Approx. €435 million in debt (including commer- cial paper) will mature within one year, €221 mil- lion in 2026 and €647 million in 2027. - 65% of the Group’s financial debt consists of floating-rate debt and 35% of fixed-rate debt. The unhedged part of the total financial debt equals 11%. • An increased difficulty, or even inability, to finance identified new acquisitions or development projects: - Rising interest rates may negatively affect the future growth of the Group (see also risk fac- tor 3. ‘Non-growth’) and the profitability of new acquisitions and/or developments if the cost of new financing is too high compared to the yield offered by the future assets. - As a result of market-wide negative investor sen- timent, the Aedifica share price (€56.20) was below the Net Asset Value per share (€76.61) at the end of financial year, making it more difficult to (i) acquire properties by way of contributions in kind, (ii) raise equity capital, as well as (iii) maintain earnings per share (and therefore dividend per share) at a stable level after a capital increase as a higher number of shares is issued. • Aedifica has secured sufficient credit lines to finance operating costs and committed invest- ments. As at 31 December 2024, the total amount of undrawn and confirmed long-term credit facilities amounts to approx. €987 million. (See page 78). • Aedifica performs a quarterly monitoring of the average cost of debt. As at 31 December 2024, the average cost of debt including commitment fees amounts to 2.0%. • Aedifica monitors the net debt/EBITDA ratio and the Interest Cover Ratio (ICR) on a quarterly basis. As at 31 December 2024, the net debt/EBITDA ratio stands at 8.5x while the ICR stands at 6.2x. • Aedifica monitors hedge maturities to ensure that at least 60% of floating rate debt is hedged against interest rate fluctuations. • Aedifica is developing an ever-expanding network of current and potential providers of financial resources. • Aedifica has adopted a conservative and prudent financing strategy with a balanced spread of debt maturity dates (see page 78). • Aedifica monitors its cash balances on a daily basis. • Evolution of interest rates. • Hedging ratio. • Liquidity on committed credit lines. • Share price vs Net Asset Value (NAV) per share. • Average cost of debt. • Debt-to-assets ratio. • Credit rating from external agencies. • Net debt/EBITDA. • Interest Cover Ratio. AEDIFICAannual report 2024 - RISK FACTORS 128 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 3. Non-growth Risk category: Strategic Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? The prevailing economic conditions, in particular the high interest rates and the low profit margins of tenants (see also risk factor 1. ‘Rents and tenants’ as well as risk factor 2. ‘Financing risk’), present challen - ges for Aedifica’s growth prospects. As Aedifica has succeeded in achieving a significant expansion of its business in the past, a slowdown or lack of growth may negatively impact stock market expectations (whereby investing in the stock market may be consi- dered as less attractive compared to other invest- ments perceived as less risky, such as (government) bonds), erode the confidence of the Company’s partners and make access to capital more difficult. • Aedifica’s strategy aims to raise capital at an affordable price to invest in healthcare real estate and generate shareholder returns. When the cost of capital increases, this strategy is more difficult to implement. - In 2024, Aedifica invested €368 million in capital expenditure on cash basis compared to €319 million in 2023. • The share price is assessed on the basis of future cash flows. If these come under pressure due to low growth expectations and higher debt costs, this could weigh on the share price. - On 31 December 2024, the share price amount to €56.20, compared to a net asset value per share of €76.61. • A non-growth strategy implemented over a long period of time could affect Aedifica’s ability to increase its dividend. • For the 2024 financial year, Aedifica will distribute a gross dividend of €3.90 per share, an increase of 3% compared to the gross dividend of €3.80 per share paid for 2023. The increase in dividend amounts to an average of 6% per year since 2006. • By maintaining a low debt-to-assets ratio. On 31 December 2024, the debt-to-assets ratio stood at 41.3%. • By regularly reviewing and challenging its strategic plans and through active manage- ment of the development pipeline. • Through accurate and transparent commu - nication towards the market (analysts and investors). • By maintaining a sense of dynamism and entrepreneurship within the company to be able to react quickly to new opportunities. • By distributing a dividend that is lower than operating cash flows. • By recycling capital when proceeds from disposals can be reinvested. • Compound annual growth rate (CAGR) of the portfolio. • Share price evolution. • Earnings growth. • Dividend pay-out ratio. • Cost of capital. • Discount/premium to NAV. 4. Fair value of the real estate Risk category: Market Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? The fair value of investment properties (accounted for in accordance with IAS 40, assessed by independent valuation experts on a quarterly basis) fluctuates over time and depends on various factors over which the Group does not always have complete control (such as decreasing demand, technical quality of the building incl. sustainability requirements, decreasing occupancy rates, decreasing rental income (see also risk factor 1. ‘Rents and tenants’), an increase in trans- fer tax charges, increasing interest rates (see also risk factor 2. ‘Financing risk’), etc.). A potential loss in fair value of marketable investment properties could have a negative impact on the debt- to-assets ratio (see also risk factor 10. ‘Debt structure’), the net result and the Group’s financial situation. • As at 31 December 2024, a change of 1% in the fair value of marketable investment properties would have an impact of approx. €61.4 million on the Group’s net result, approx. €1.29 on the net asset value per share and approx. 0.4% on the consoli - dated debt-to-assets ratio. Over the course of the 2024 financial year, the fair value of marketable investment properties increased by 0.38% on a like-for-like basis. • The fair value gain on investment properties and development projects for the year 2024 amounts to €15.2 million. • The fair value of investment properties is assessed by inde- pendent valuation experts on a quarterly basis. • The independent valuation experts are rotated in accordance with article 24, §2 of the RREC Act. • Aedifica’s triple and double net leases imply that tenants are responsible for the day-to-day management, maintenance and repair of the buildings. Nevertheless, to the extent possible, Aedifica performs yearly condition checks. These checks are based on the Dutch standard NEN 2767, which allows Aedifica to measure the physical and technical quality of its buildings objectively and uniformly. • In the framework of the net zero GHG pathway, the Group is preparing a long-term capex strategy to improve the quality of its assets and reach net zero GHG emissions by 2050. • Fair value yield evolution. • Interest rate evolution. • Capex amount spent on existing assets. • Age of buildings. • Energy performance of buildings. • Occupancy rate of buildings. AEDIFICAannual report 2024 - RISK FACTORS 129 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 5. Climate change Risk category: Sustainability Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? Climate change brings various challenges that may impact the integrity and the way in which care homes need to be built to counter and withstand those challenges (e.g. extreme temperatures will require specific ventilation and temperature control mea- sures, while increasing extreme natural events and weather conditions will necessitate the implementa- tion of different building techniques). The foregoing in combination with increasingly strict regulations, the (future) imposition of CO 2 emission-related taxes on buildings if they do not meet certain thresholds, in addition to the general shift from a fossil-fuel- based economy to a lower-carbon economy, may lead to a complete rethinking of the way buildings are designed, resulting in higher direct and indirect invest- ment and – as long as the building does not meet the aforementioned standards – operational costs, which in turn will negatively affect the profitability of new and existing assets and therefore of the Group. • Negative impact on rental income (see also risk factor 1. ‘Rents and tenants’). • Negative impact on the fair value of assets (see also risk factor 4. ‘Fair value of the real estate’). • Negative impact on occupancy rates (see also risk factor 1. ‘Rents and tenants’). • Inability to lease or dispose of unsustainable assets (see also risk factor 8. Asset rotation/ disposal). • Negative impact on Aedifica’s reputation. • With its net zero GHG pathway, Aedifica has established a roadmap to achieve net zero GHG emissions by 2050 (see page 50). An interim target was set for 2030 to reduce the nEUI for the entire Aedifica portfolio to an average of 130 kWh/m², while targets were also set for the Executive Committee and country managers. The targets were set and measurements were carried out in accordance with CRREM definitions. • Aedifica performs environmental due diligences for new assets/development projects. • Aedifica monitors the energy performance of its portfolio. The breakdown of the energy performance of the Group’s properties as at 31 December 2024 will be reported in the June 2025 Environmental Data Report. • Aedifica’s triple and double net leases imply that tenants are responsible for the day-to-day management, mainte- nance and repair of the buildings. Nevertheless, to the extent possible, Aedifica performs yearly condition checks. These checks are based on the Dutch standard NEN 2767, which allows Aedifica to measure the physical and technical quality of its buildings objectively and uniformly. • Aedifica implemented a building assessment framework (see page 51). This assessment includes 42 risk items and is carried out at different stages of the building life cycle. The insights provided include potential physical risks due to climate change, which can be used to take measures to protect properties. • The Group, supported by an external partner, has conducted a portfolio-wide risk analysis to better understand physical and transit risks. The findings have been incorporated in our strategic asset review and, where material, will be reflected in our portfolio and asset management strategy (see page 48). • Investing in a property portfolio spread across Europe is an effective way to mitigate the potential risks associated with extreme weather events. Geographical diversification allows investments to be spread across regions with different cli- mates, reducing the impact of extreme weather events such as floods and droughts. • Aedifica’s ESG scores. • Net energy use intensity of buildings. • Age of buildings. • Capex budget at property level. • Percentage of sustainable financing (see also risk factor 10. ‘Debt structure’). • Geographical diversification. • Double materiality assessment. AEDIFICAannual report 2024 - RISK FACTORS 130 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 6. Regulatory changes Risk category: Legal Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? New regulations or changes in existing regulations (at European, national or local level) impacting the Group’s activities, the Group’s taxation, the (financing of the) activities of the tenants, and/or a change in the application or interpretation of such regulations by the administration (including the tax authorities) or the courts, can increase the Group’s (administrative) costs and liabilities, and may have a major impact on the return, the fair value of the investment properties (see also risk factor 4. ‘Fair value of the real estate’) and on tenants and their ability to pay rent (see also risk factor 1. ‘Rents and tenants’). • In many cases, a significant proportion of the revenue of care operators comes from (direct or indirect) subsidies granted by local social security systems. A reform of these (funding) systems in any of the regions in which the Group operates, could potentially have an impact on the solvency of care operators, creating the risk that they would not be able to meet their contractual obligations to the Group (see risk factor 1. ‘Rents and tenants’). • By monitoring the country/region-specific regula- tory frameworks as much as possible. • By diversifying the Group’s assets, which are located in various countries and regions (see page 38). • By limiting the concentration of operators in the Group’s portfolio (see page 40). • Geographical diversification. • Diversification per tenant. 7. Development projects Risk category: Real estate portfolio Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicator help Aedifica to monitor this risk? Part of Aedifica’s strategy is to develop healthcare real estate itself or have it developed by other players to create a portfolio of high-quality and futureproof buildings. Development agreements are long-term contracts with developers, care operators and local autho - rities across Europe. If market conditions change, a previously negotiated agreement may not meet the new economic standards. Aedifica’s development projects could face negative profit margins due to rising costs and capitali - sation rate expansions. An important part of the pipeline is developed with turnkey contracts, transferring the construction risk to the developer. However, development activities in Finland are done in-house, exposing the Company to possible budget overruns. Furthermore, Aedifica will need to invest in capital expenditure (capex) to meet its 2050 GHG emission targets. However, these investments may not result in an increase in yields, as the financial fragility of tenants may prevent Aedifica from increasing rents to cover the cost of these improvements. Finally, Aedifica may be subject to contractor/developer insolvencies which may lead to delays in completion and budget overruns. • As at 31 December 2023, Aedifica’s development pipeline was valued at €413 million. In 2024, 31 projects were completed for a total amount of approx. €297 million, while seven new projects totalling approx. €59 million were added to the pipeline. Active management of the investment programme led to the withdrawal of a few projects totalling approx. €23 million, while budget changes and currency impact accounted for approx. €8 million. By 31 December 2024, the development pipeline amounted to €160 million. • Quarterly monitoring of the yield of the develop- ment pipeline. • Proactive management of the pipeline by with- drawing lower yielding projects (if not yet fully committed). • A significant proportion of the pipeline is externally developed with a pre- agreed completion price, which reduces develop- ment risk. • Pipeline yield and yield projections. • Developer reputation and track record. • Tracking of delivery time. • Cost vs budget analysis. AEDIFICAannual report 2024 - RISK FACTORS 131 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 8. Asset rotation/disposal Risk category: Strategic Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? In 2024, Aedifica intensified its asset rotation strategy by setting clear targets for each country. The idea behind this strategy is to sell: • assets that do not fit the long-term vision of the portfolio, or • assets that have significantly increased in fair value over the last year. By selling these assets, Aedifica can convert the selling price into cash and reinvest this into higher-yielding opportunities. Aedifica bears the risk of not being able to execute its asset rotation strategy due to a lack of liquidity in the market, potential buyers having difficulties raising money to purchase the assets as a result of higher interest rates, or bid prices being significantly lower than the fair value of the assets. Selling fewer assets than planned could also have a long-term impact on Aedifica’s strategy to meet its 2050 GHG emission targets. • In 2024, Aedifica sold 15 assets for an amount of €98 million. • In 2024, the total gain on dis - posals of investment proper- ties amounts to €0.4 million. • Asset rotation targets at country level with a balance between high-yielding/ low-quality assets and high-quality/ low-yielding assets. • Careful analysis of potential buyers and their ability to raise funds to purchase the assets. • Yield on asset sold. • Gains and losses on disposals. • Creditworthiness of buyers. • Reputation of buyers. 9. Inflation Risk category: Market Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? Inflation significantly increased in 2023 in all markets in which the Group is active, and although inflation started to decrease in 2024, it is still high. All of the Group’s rents are subject to indexation (although the indexation mechanism differs between the countries in which the Group operates). Since the Group’s WAULT stands at 19 years, the future like-for-like evolu- tion of rental income and the valuation of these assets depend to a large extent on inflation. However, the indexation to be applied pursuant to the indexation clauses could (i) deviate from the actual inflation rate (e.g. due to the fact that the indexation clause provides for a cap at a level that is lower than the actual inflation at that time, or pursuant to negotiations with the operator) and/or (ii) be subject to a time-lag in its application compared to the time at which the actual inflation takes place (e.g. due to the fact that the indexation clause only provides for an indexation at certain set intervals). • The market is very sensitive to Aedifica’s ability to pass on inflationary increases in its rental income. Failure to translate the inflation rate into a rent increase would affect the future growth potential of rental income. The like-for-like evolution of rental income amounts to 3.3% as at 31 December 2024. • High inflation and high(er) interest rates could lead to higher debt costs that are not fully offset by rent increases if (i) indexation clauses do not follow the same pace as the actual inflation and/or (ii) tenants are not able to pay the uplift (see risk factor 1. ‘Rents and tenants’ as well as risk factor 2. ‘Financing risk’). • All of Aedifica’s leases are subject to some form of indexation. • Aedifica is in close contact with its tenants to assess the impact of indexa- tion on their profitability. • To manage the interest rate risk, Aedifica has put in place hedges (interest rate swaps and caps). All hedges are entered into with leading banks and relate to existing or highly probable risks. • Evolution of consumer price indices/ health indices. • Like-for-like reporting on the evolution of rental income. • Assessment of tenant KPIs. AEDIFICAannual report 2024 - RISK FACTORS 132 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 10. Debt structure Risk category: Financial Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? As a Belgian RREC, Aedifica is subject to strict regu- latory financial covenants stemming from the RREC Regulation, as well as contractual financial covenants included in its financing agreements. Failure to com- ply with these can have far-reaching consequences, including: • sanctions, e.g., loss of RREC status and/or stricter supervision by the relevant regulator(s) if statutory financial parameters (e.g., 65% debt-to-assets ratio threshold) would be exceeded; • a termination or renegotiation of credit facilities or mandatory early repayment of outstanding amounts, as well as impaired trust between the Group and investors and/or between the Group and financial institutions, in case of (imminent) non-compliance with contractual covenants (e.g., 60% debt-to-assets ratio threshold, negative pledge covenant, interest cover ratio covenant); • a withdrawal or downgrade of the BBB invest- ment-grade rating by S&P Global (e.g., long-term non-sustainability of the 50% debt-to-assets ratio threshold). Additionally, some or all these defaults could allow creditors (i) to seek early repayment of such debts as well as other debts that are subject to cross default or cross acceleration provisions, (ii) to declare all loans outstanding due and payable and/or (iii) to cancel undrawn commitments. Ultimately, this would lead to reduced liquidity (see also risk factor 2. ‘Financing risk’) or might require a disposal of assets to reimburse outstanding loans. • Aedifica’s consolidated debt-to-assets ratio amounts to 41.3% as at 31 December 2024. The table below sets out the Group’s additional conso- lidated debt capacity assuming a debt-to-as- sets-ratio of 65% (maximum debt-to-assets ratio permitted for Belgian RRECs), 60% (maximum debt-to-assets ratio given Aedifica’s existing bank commitments) and 45% (maximum debt-to-assets ratio based on Aedifica’s financial policy).The addi- tional consolidated debt capacity is expressed in constant assets (that is, excluding growth in the real estate portfolio), in variable assets (that is, taking into account growth in the real estate portfolio) and as the decrease in the fair value of investment properties that the current balance sheet structure can absorb. • Aedifica monitors and publishes the debt-to-assets ratio on a quarterly basis and its evolution is pro- jected during the approval process of each major investment decision. • Aedifica monitors the evolution of the fair value of assets on a quarterly basis. • Aedifica monitors its financial covenants. • Aedifica diversifies its sources of financing (see Note 31 – Borrowings in the Consolidated Financial Statements). • Debt-to-assets ratio. • Evolution of the fair value of assets. • Evolution of outstanding financial debt. Additional consolidated debt capacity Debt-to-assets ratio 45% 60% 65% In constant assets (in € million) 234 1,196 1,516 In variable assets (in € million) 426 2,990 4,333 Decrease in fair value of investment properties (in %) -8.5% -32.4% -38.0% AEDIFICAannual report 2024 - RISK FACTORS 133 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 11. Exchange rate Risk category: Financial Risk strategy: accept/avoid/transfer/mitigate Risk description Why is this risk significant for Aedifica? How does Aedifica mitigate this risk? Which key risk indicators help Aedifica to monitor this risk? As at 31 December 2024, the Group earns part of its income and incurs part of its expenses in the United Kingdom (approx. 22.1%) and Sweden (approx. 1.6%) and is therefore exposed to an exchange rate risk (EUR/GBP and EUR/SEK respectively). Future fluc- tuations in the exchange rate may affect the value of the Group’s investment properties, rental income and net result, all of which are expressed in euro. • As at 31 December 2024, a 10% change in the EUR/GBP exchange rate has an impact of approx. €129.8 million on the fair value of the Group’s investment properties located in the United King- dom, approx. €7.5 million on the Group’s annual rental income and approx. €11.1 million on the Group’s net result. • As at 31 December 2024, a 10% change in the EUR/SEK exchange rate has an impact of approx. €9.4 million on the fair value of the Group’s investment properties located in Sweden, approx. €0.5 million on the Group’s annual rental income and approx. €0.6 million on the Group’s net result. • A natural hedge (balance sheet) relating to the EUR/GBP exchange rate risk has been put in place as Aedifica has entered into financing in GBP amounting to £340 million. • Exchange rate fluctuation EUR/GBP. • Exchange rate fluctuation EUR/SEK. • Actual exchange rate fluctuation compared to the budget. AEDIFICAannual report 2024 - RISK FACTORS 134 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION 136 1. Consolidated Financial Statements 136 1.1 Consolidated income statement 137 1.2 Consolidated statement of comprehensive income 137 1.3 Consolidated balance sheet 139 1.4 Consolidated cash ﬂ ow statement 140 1.5 Consolidated statement of changes in equity 142 1.6 Notes to the consolidated ﬁ nancial statements 146 Note 1 General information 146 Note 2 Acccounting policies 147 Note 3 Operating segments 150 Note 4 Net rental income 151 Note 5 Property result 151 Note 6 Property operating result 152 Note 7 Overheads 153 Note 8 Gains and losses on disposals of investment properties 153 Note 9 Gains and losses on disposals of other non-fi nancial assets 153 Note 10 Changes in fair value of investment properties 154 Note 11 Other result on portfolio 154 Note 12 Financial income 154 Note 13 Net interest charges 155 Note 14 Other fi nancial charges 155 Note 15 Changes in fair value of fi nancial assets and liabilities 156 Note 16 Share in the profi t or loss of associates and joint ventures 157 Note 17 Tax 158 Note 18 Earnings per share 159 Note 19 Goodwill 160 Note 20 Intangible assets 161 Note 21 Investment properties 165 Note 22 Other tangible assets 165 Note 23 Non-current fi nancial assets and other fi nancial liabilities 166 Note 24 Deferred taxes 166 Note 25 Trade receivables 167 Note 26 Tax receivables and other current assets 167 Note 27 Cash and cash equivalents 167 Note 28 Deferred charges and accrued income 167 Note 29 Equity 168 Note 30 Provision 169 Note 31 Borrowings 170 Note 32 Hedging instruments 172 Note 33 Trade payables and other currents debts 172 Note 34 Accrued charges and deferred income 173 Note 35 Financial risk management 175 Note 36 Contingencies and commitments 176 Note 37 Acquisitions and disposals of investment properties 177 Note 38 Post-closing events 178 Note 39 List of subsidiaries, associates and joint ventures 182 Note 40 Belgian RREC status 182 Note 41 Fair value 183 Note 42 Put options granted to non-controlling shareholders 183 Note 43 Alternative Performance Measures (APMs) 187 2. Abridged statutory financial statements 187 2.1 Abridged statutory incom statement 188 2.2 Abridged statutory statement of comprehensive income 188 2.3 Abridged statutory balance sheet 190 2.4 Abridged statutory statement of changes in equity 192 2.5 Abridged statutory appropriation account 193 2.6 Corrected proﬁ t as deﬁ ned in the royal decree of 13 July 2014 193 2.7 Abridged statutory statement of changes in equity after appro- priation of the year’s result Financial Statements AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 135 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 136 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 4 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 1. Consolidated Financial Statements 1.1 Consolidated Income Statement (x €1,000) Notes 31/12/2024 31/12/2023 I. Rental income 4 338,138 314,174 II. Writeback of lease payments sold and discounted 0 0 III. Rental-related charges 4 -157 -1,134 Net rental income 337,981 313,040 IV. Recovery of property charges 5 3 0 V. Recovery of rental charges and taxes normally paid by tenants on let properties 5 8,969 7,193 VI. Costs payable by the tenant and borne by the landlord on rental damage and repair at end of lease 5 0 0 VII. Charges and taxes not recovered by the tenant on let properties 5 -8,852 -7,205 VIII. Other rental-related income and charges 5 621 -90 Property result 338,722 312,938 IX. Technical costs 6 -3,907 -3,169 X. Commercial costs 6 -39 -58 XI. Charges and taxes on unlet properties 6 -145 -114 XII. Property management costs 6 -6,918 -6,452 XIII. Other property charges 6 -1,552 -1,424 Property charges -12,561 -11,217 Property operating result 326,161 301,721 XIV. Overheads 7 -35,074 -35,740 XV. Other operating income and charges 7 -831 -171 Operating result before result on portfolio 290,256 265,810 XVI. Gains and losses on disposals of investment properties 8 374 -856 XVII. Gains and losses on disposals of other non-financial assets 9 0 0 XVIII. Changes in fair value of investment properties 10 15,195 -143,636 XIX. Other result on portfolio 11 -30,235 -26,072 Operating result 275,590 95,246 XX. Financial income 12 971 3,006 XXI. Net interest charges 13 -46,701 -45,004 XXII. Other financial charges 14 -5,176 -5,181 XXIII. Changes in fair value of financial assets and liabilities 15 -18,708 -50,878 Net finance costs -69,614 -98,057 XXIV. Share in the profit or loss of associates and joint ventures accounted for using the equity method 16 -571 -256 Profit before tax (loss) 205,405 -3,067 XXV. Corporate tax and deferred taxes 17 -449 25,565 XXVI. Exit tax 17 135 54 Tax expense -314 25,619 Profit (loss) 205,091 22,552 Attributable to: Non-controlling interests 260 -1,983 Owners of the parent 204,831 24,535 Basic earnings per share (€) 18 4.31 0.56 Diluted earnings per share (€) 18 4.31 0.56 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 137 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 4 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 1.2 Consolidated Statement of Comprehensive Income (x €1,000) 31/12/2024 31/12/2023 I. Profit (loss) 205,091 22,552 II. Other comprehensive income recyclable under the income statement A. Impact on fair value of estimated transaction costs resulting from hypothetical disposal of investment properties 0 0 B. Changes in the effective part of the fair value of authorised cash flow hedge instruments as defined under IFRS ¹ 1,115 -2,293 D. Currency translation differences linked to conversion of foreign activities ² 33,406 14,242 H. Other comprehensive income, net of taxes ³ -3,869 -2,484 Comprehensive income 235,743 32,017 Attributable to: Non-controlling interests 260 -1,983 Owners of the parent 235,483 34,000 1. Corresponds to ‘Changes in the effective portion of the fair value of hedging instruments (accrued interests)’ as detailed in Note 32. 2. Corresponds to the movement of the year of the reserve ‘g. Foreign currency translation reserves’. 3. Mainly includes the transfer to the income statement of interests paid on hedging instruments and the amortisation of terminated derivatives (see Note 32). 1.3 Consolidated Balance Sheet ASSETS Notes 31/12/2024 31/12/2023 (x €1,000) I. Non-current assets A. Goodwill 19 87,363 117,597 B. Intangible assets 20 1,047 1,663 C. Investment properties 21 6,117,932 5,790,357 D. Other tangible assets 22 4,348 2,184 E. Non-current financial assets 23 & 32 54,273 98,665 F. Finance lease receivables 0 0 G. Trade receivables and other non-current assets 0 0 H. Deferred tax assets 24 823 3,023 I. Equity-accounted investments 16 31,586 35,985 Total non-current assets 6,297,372 6,049,474 II. Current assets A. Assets classified as held for sale 21 100,207 58,158 B. Current financial assets 0 0 C. Finance lease receivables 0 0 D. Trade receivables 25 19,526 23,290 E. Tax receivables and other current assets 26 11,334 9,384 F. Cash and cash equivalents 27 18,451 18,253 G. Deferred charges and accrued income 28 16,934 18,252 Total current assets 166,452 127,337 TOTAL ASSETS 6,463,824 6,176,811 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 138 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 4 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA EQUITY AND LIABILITIES Notes 31/12/2024 31/12/2023 (x €1,000) EQUITY 29 I. Issued capital and reserves attributable to owners of the parent A. Capital 1,203,638 1,203,638 B. Share premium account 1,719,001 1,719,001 C. Reserves 515,505 628,688 a. Legal reserve 0 0 b. Reserve for the balance of changes in fair value of investment properties 364,698 481,914 d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS 1,708 4,344 e. Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS 62,735 113,177 f. Reserve of exchange differences relating to foreign currency monetary items 58 -294 g. Foreign currency translation reserves 33,471 64 h. Reserve for treasury shares -459 -31 j. Reserve for actuarial gains and losses of defined benefit pension plans -363 -244 k. Reserve for deferred taxes on investment properties located abroad -88,576 -112,367 m. Other reserves -669 -3,277 n. Result brought forward from previous years 136,099 136,909 o. Reserve- share NI & OCI of equity method invest 6,803 8,493 D. Profit (loss) of the year 204,831 24,535 Equity attributable to owners of the parent 3,642,975 3,575,862 II. Non-controlling interests 5,122 5,039 TOTAL EQUITY 3,648,097 3,580,901 EQUITY AND LIABILITIES Notes 31/12/2024 31/12/2023 (x €1,000) LIABILITIES I. Non-current liabilities A. Provisions 30 0 0 B. Non-current financial debts 31 2,065,194 1,958,750 a. Borrowings 1,263,111 1,166,915 c. Other 802,083 791,835 C. Other non-current financial liabilities 23 94,901 90,943 a. Authorised hedges 32 10,922 9,760 b. Other 83,979 81,183 D. Trade debts and other non-current debts 124 251 E. Other non-current liabilities 0 0 F. Deferred tax liabilities 24 133,238 138,658 Non-current liabilities 2,293,457 2,188,602 II. Current liabilities A. Provisions 30 0 0 B. Current financial debts 31 448,442 321,549 a. Borrowings 134,392 78,949 c. Other 314,050 242,600 C. Other current financial liabilities 23 3,281 2,798 D. Trade debts and other current debts 33 48,933 57,177 a. Exit tax 1,400 44 b. Other 47,533 57,133 E. Other current liabilities 0 0 F. Accrued charges and deferred income 34 21,614 25,784 Total current liabilities 522,270 407,308 TOTAL LIABILITIES 2,815,727 2,595,910 TOTAL EQUITY AND LIABILITIES 6,463,824 6,176,811 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 139 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 4 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 1.4 Consolidated Cash Flow Statement (x €1,000) Notes 31/12/2024 31/12/2023 CASH FLOW FROM OPERATING ACTIVITIES Profit (loss) 204,831 24,535 Adjustments for non-monetary items 18,047 186,174 Tax expense -7,286 -26,517 Amortisation, depreciation and write-downs 2,904 3,648 Change in fair value of investment properties (+/-) -15,195 143,636 Changes in fair value of the derivatives 18,708 50,878 Goodwill impairment 30,235 26,072 Other adjustment for non-monetary items -11,319 -11,543 Gains and losses on disposals of investment properties -374 856 Net finance costs 50,906 47,179 Changes in working capital requirements -11,076 -20,568 Changes in net assets resulting from foreign exchange differences linked to the conversion of foreign operations (+/-) -13,837 -8,648 Net cash from operating activities 248,497 229,528 CASH FLOW RESULTING FROM INVESTING ACTIVITIES Purchase of real estate companies ¹ -107,199 -11,315 Purchase of marketable investment properties and development projects -113,622 -44,395 Purchase of intangible and other tangible assets -609 -986 Development costs -143,293 -259,763 Disposals of investment properties 80,771 73,122 Net changes in non-current receivables 24,401 -15,464 Net cash from investing activities -259,551 -258,801 CASH FLOW FROM FINANCING ACTIVITIES Capital increase, net of costs ² 0 374,209 Dividend for previous fiscal year and interim dividend -166,854 -115,988 Net changes in borrowings 232,487 -172,273 Net changes in other non-current financial liabilities -335 -582 Net financial items received (+) / paid (-) -54,046 -51,731 Net cash from financing activities 11,252 33,635 TOTAL CASH FLOW FOR THE PERIOD Total cash flow for the period 198 4,362 RECONCILIATION WITH BALANCE SHEET Cash and cash equivalents at beginning of period 18,253 13,891 Total cash flow for the period 198 4,362 Cash and cash equivalents at end of period 27 18,451 18,253 1. This amount includes €111,365 k for assets acquired through companies acquired in cash (see Note 21). This line also includes the working capital of those acquired real estate companies, reducing the cash flow on this line to €107,199 k. 2. Some types of capital increases (contributions in kind, partial demergers) do not result in any cash flow. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 140 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 4 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 1.5 Consolidated Statement of Changes in Equity (x €1,000) 01/01/2023 Capital increase in cash¹ Capital increase in kind¹ Acquisitions / disposals of treasury shares Consolidated comprehensive income² Appropriation of the previous year's result Other transfer relating to asset disposals 3 Transfers between reserves Other and roundings 31/12/2023 Capital 1,006,881 186,845 9,913 0 0 0 0 0 -1 1,203,638 Share premium account 1,516,108 187,364 15,529 0 0 0 0 0 0 1,719,001 Reserves 428,018 0 0 0 9,465 190,615 0 0 590 628,688 a. Legal reserve 0 0 0 0 0 0 0 0 0 0 b. Reserve for the balance of changes in fair value of investment properties 389,859 0 0 0 0 85,794 6,412 -152 1 481,914 d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS 8,945 0 0 0 -4,635 34 0 0 0 4,344 e. Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS -11,193 0 0 0 0 124,370 0 0 0 113,177 f. Reserve of exchange differences relating to foreign currency monetary items -451 0 0 0 0 157 0 0 0 -294 g. Foreign currency translation reserves -13,629 0 0 0 14,242 0 0 -549 0 64 h. Reserve for treasury shares -31 0 0 0 0 0 0 0 0 -31 j. Reserve for actuarial gains and losses of defined benefit pension plans -99 0 0 0 -145 0 0 0 0 -244 k. Reserve for deferred taxes on investment properties located abroad -71,715 0 0 0 0 -40,651 0 0 -1 -112,367 m. Other reserves 250 0 0 0 0 -251 -3,277 0 1 -3,277 n. Result brought forward from previous years 117,023 0 0 0 3 21,728 -3,135 701 589 136,909 o. Reserve- share NI & OCI of equity method invest 9,059 0 0 0 0 -566 0 0 0 8,493 Profit (loss) 331,778 0 0 0 24,535 -331,778 0 0 0 24,535 Equity attributable to owners of the parent 3,282,785 374,209 25,442 0 34,000 -141,163 0 0 589 3,575,862 Non-controlling interests 6,564 0 0 0 -1,983 0 0 0 458 5,039 TOTAL EQUITY 3,289,349 374,209 25,442 0 32,017 -141,163 0 0 1,047 3,580,901 1. For more details, see Note 29 of this Annual Report and section 1.2.4 ‘Equity’ of the ‘Financial Review’ chapter of the 2023 Annual Report. 2. For more details, see the comprehensive income table on page 137. 3. This column shows the reserve made available through the sale of assets, detailed in section 1.1 ‘Investments and disposals in 2023’ of the ‘Financial Review’ chapter of 2023 Annual Report. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 141 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 4 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA (x €1,000) 01/01/2024 Capital increase in cash¹ Capital increase in kind¹ Acquisitions / disposals of treasury shares Consolidated comprehensive income² Appropriation of the previous year's result Other transfer relating to asset disposals⁴ Transfers between reserves Other and roundings 31/12/2024 Capital 1,203,638 0 0 0 0 0 0 0 0 1,203,638 Share premium account 1,719,001 0 0 0 0 0 0 0 0 1,719,001 Reserves 628,688 0 0 -428 30,652 -142,141 0 0 -1,266 515,505 a. Legal reserve 0 0 0 0 0 0 0 0 0 0 b. Reserve for the balance of changes in fair value of investment properties 481,914 0 0 0 0 -125,930 5,805 2,910 -1 364,698 d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS 4,344 0 0 0 -2,636 0 0 0 0 1,708 e. Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS 113,177 0 0 0 0 -50,442 0 0 0 62,735 f. Reserve of exchange differences relating to foreign currency monetary items -294 0 0 0 0 352 0 0 0 58 g. Foreign currency translation reserves 64 0 0 0 33,406 0 0 0 1 33,471 h. Reserve for treasury shares -31 0 0 -428 0 0 0 0 0 -459 j. Reserve for actuarial gains and losses of defined benefit pension plans -244 0 0 0 -118 0 0 0 -1 -363 k. Reserve for deferred taxes on investment properties located abroad -112,367 0 0 0 0 23,791 0 0 0 -88,576 m. Other reserves -3,277 0 0 0 0 3,277 -669 0 0 -669 n. Result brought forward from previous years 136,909 0 0 0 0 8,501 -5,136 -2,910 -1,265 136,099 o. Reserve- share NI & OCI of equity method invest 8,493 0 0 0 0 -1,690 0 0 0 6,803 Profit (loss) 24,535 0 0 0 204,831 -24,535 0 0 0 204,831 Equity attributable to owners of the parent 3,575,862 0 0 -428 235,483 -166,676 3 0 0 -1,266 3,642,975 Non-controlling interests 5,039 0 0 0 260 0 0 0 -177 5,122 TOTAL EQUITY 3,580,901 0 0 -428 235,743 -166,676 0 0 -1,443 3,648,097 1. For more details, see Note 29 and section 1.3.1 ‘Equity’ of the ‘Financial Review’ chapter of this Annual Report. 2. For more details, see the comprehensive income table on page 137. 3. For more details on the pay-out of the 2023 dividend, see the corrected profit table on page 193 of this Annual Report. 4. This column shows the reserve made available through the sale of assets, detailed in section 1.1 ‘Investments and disposals in 2024’ of the ‘Financial Review’ chapter of this Annual Report. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 142 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 7 1.6 Notes to the Consolidated Financial Statements Note 1: General information Aedifica NV/SA (referred to in the financial statements as ‘the Company’ or ‘the Parent’) is a limited liability company having opted for public Regulated Real Estate Company (RREC) status under Belgian law. The Company is entered in the Brussels Registry of Legal Entities (R.L.E., or ‘R.P.M.’ in French / ‘R.P.R.’ in Dutch) under No. 0877.248.501. Its primary shareholders are listed in Note 29 of this annual financial report. The address of its office is the following: Rue Belliard 40, B-1040 Brussels (telephone: +32 (0)2 626 07 70). The Aedifica group (referred to in the financial statements as ‘the Group’) is composed of the parent-company and its subsidiaries. The subsidiaries of the Aedifica group are listed in Note 39. Aedifica is listed on Euronext Brussels (2006) and Euronext Amsterdam (2019). Since 2020, the Company has been part of the BEL 20, Euronext Brussels’ leading share index. Moreover, since 2023, Aedifica has been part of the BEL ESG, the index tracking companies that perform best on ESG criteria. Publication of the Consolidated Financial Statements was approved by the Board of Directors on 18 February 2025. Aedifica’s shareholders have the opportunity to amend the Consolidated Financial Statements after publication at the Annual General Meeting, which will take place on 13 May 2025. Note 2: Accounting policies Note 2.1: Basis of preparation The Consolidated Financial Statements cover the 12-month period from 1 January 2024 to 31 December 2024. They have been prepared in accordance with the International Financial Reporting Standards (‘IFRS’) as adopted by the European Union and the interpretations as published by the International Accounting Standards Board (‘IASB’) and the International Financial Reporting Interpretations Committee (‘IFRIC’), to the extent to which they are applicable to the Group's activities and are effective for the financial years starting on or after 31 December 2023. The Consolidated Financial Statements have also been prepared in accordance with the Royal Decree of 13 July 2014 on Regulated Real Estate Companies. The Consolidated Financial Statements are prepared in euros and presented in thousands of euros. The Consolidated Financial Statements have been prepared with application of the historical cost convention, except for the following assets and liabilities, which are measured at fair value: investment properties, investment properties held for sale, financial assets and liabilities held for hedging purposes or not (mainly derivatives), put options granted to non-controlling shareholders and equity-accounted investments. The Consolidated Financial Statements have been prepared in accordance with accrual accounting principles on a going concern basis. The preparation of the Consolidated Financial Statements in conformity with IFRS requires significant judgment in the application of accounting policies (including the classification of lease contracts, identification of business combinations, and calculation of deferred taxes) and the use of certain accounting estimates (such as goodwill impairment tests and determination of fair value of investment properties). Underlying assumptions are based on prior experience, input from third parties (notably real estate experts), and on other relevant factors. Actual results may vary on the basis of these estimations. Consequently, the assumptions and estimates are regularly revisited and modified as necessary. The new and amended standards and interpretations listed below are compulsory for the Group since 1 January 2024, but had no significant impact on the current Consolidated Financial Statements: • amendment to IAS 1 ‘Presentation of Financial Statements: Classification of Liabilities as Current or Non-current’ (applicable as from 1 January 2024); • amendments to IFRS 16 ‘Lease Liability in a Sale and Leaseback’ (applicable as from 1 January 2024); • amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments ‘Disclosures: Supplier Finance Arrangement’ (applicable as from 1 January 2024). Certain new standards, amendments and interpretations of existing standards have been published and will be compulsory for financial years starting on or after 1 January 2025. These amendments, which the Group did not apply early, are as follows (situation as at 16 January 2025): • new standard for IFRS 14 ‘Regulatory Deferral Accounts’ (for which no application date can be determined because the EU has decided not to start the approval process of this provisional standard, pending the publication of a final standard); • amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates ‘Lack of Exchangeability’ (applicable as from 1 January 2025); • IFRS 18 ‘Presentation and Disclosure in Financial Statements’ (applicable as from 1 January 2027, subject to EU approval); • amendments to IFRS 9 and IFRS 7 on the classification and measurement of financial instruments (applicable as from 1 January 2026, subject to EU approval); • IFRS 19 ‘Subsidiaries without Public Accountability: disclosures’ (applicable as from 1 January 2027, subject to EU approval); • amendments to IFRS 9 and IFRS 7 ‘Contracts Referencing Nature-dependent Electricity’ (applicable as from 1 January 2026, subject to EU approval). Note 2.2: Summary of material accounting policy information The main significant accounting policies applied during the preparation of the Consolidated Financial Statements are presented below. These methods were applied consistently to all previous financial years. The numbering of the paragraphs below refers to the lines presented on the balance sheet and income statement. Consolidation principles – Subsidiaries All entities for which Aedifica (directly or indirectly) holds more than half of the voting rights or has the power to control operations are considered subsidiaries and included in the scope of comprehensive consolidation. The comprehensive consolidation consists of incorporating all assets and liabilities of subsidiaries, as well as income and expenses. Minority interests are included in a separate line of the balance sheet and the income statement. In accordance with IFRS 10, subsidiaries are fully consolidated as from the date on which control is transferred to the Group; they are de-consolidated as from the date that control ceases. All intercompany transactions, balances, and unrealised gains and losses on transactions between the Group’s companies are eliminated. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 143 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 8 Consolidation principles – Associates and joint ventures An associate is an entity over which the Group has significant influence and which is neither a subsidiary, nor an interest in a joint arrangement. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but does not imply control or joint control over those policies. A joint venture is a joint arrangement in which the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions on relevant activities require the unanimous consent of the parties sharing control. Under the equity method, the investment in an associate or joint venture is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The investor’s share of the investee’s profit or loss is recognised in the investor’s profit or loss. Consolidation principles – Partnership All agreements whereby the parties that have joint control of an arrangement which give rights to the assets and obligations for the liabilities relating to the arrangement and that, following the framework of IFRS 11, are determined as joint operations, are consolidated following a proportional consolidation (Aedifica had only one such partnership, namely AKJV in the Netherlands, which was terminated in February 2024). Foreign currency Aedifica primarily operates in the euro zone. Euro is the functional currency of the Group and the Consolidated Financial Statements. The functional currency of the UK subsidiaries is the pound sterling and that of the Swedish subsidiaries is the Swedish krona. Foreign currency transactions are translated to the respective functional currency of the Group entities at the exchange rate prevailing at the date of the transaction. Foreign exchange gains and losses resulting from settling these, or from retranslating monetary assets and liabilities held in foreign currencies, are booked in the Income Statement. Exceptions to this rule are foreign currency loans hedging investments in foreign subsidiaries and intra-group loans meeting the definition of a net investment in a foreign operation. In such cases, exchange differences are booked in a separate component of shareholders’ equity until the disposal of the investment. Consolidation of foreign entities Assets and liabilities of the foreign entities are translated into euro at exchange rates ruling at the balance sheet date. The income statement is translated at the average rate for the period or at spot rate for significant items. Resulting exchange differences are booked in other comprehensive income and recognised in the Group income statement when the operation is sold. The principal exchange rates used to translate foreign currency denominated amounts in book year 2024 are: • balance sheet: €1 = £0.82735 • income statement: €1 = £0.84662 • balance sheet: €1 = SEK 11.45817 • income statement: €1 = SEK 11.43639 I.A. Goodwill Business combinations are recognised using the purchase method in accordance with IFRS 3. The excess of the acquisition cost over the fair value of the Group’s share of the net identifiable assets of the acquired business at the date of acquisition is recognised as goodwill (an asset). In the event that this value is negative, it is recognised immediately in profit. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. I.B. Intangible Assets Intangible assets are capitalised as assets at their acquisition cost and are amortised using the straight-line method at annual rates between 14.29% (7 years) and 33% (3 years). I.C. Investment Properties 1. Initial recognition 1.1 Acquisition value If the acquisition of a building takes place by cash payment, through the acquisition of shares of a real estate company, through the non-monetary contribution of a building against the issuance of new shares, by merger through takeover of a property, or by a partial de-merger, the deed costs, audit and consultancy costs, reinvestment bank fees, costs of lifting security on the financing of the absorbed company, and other costs relating to the merger are also considered part of the acquisition cost and capitalised in the asset accounts on the balance sheet. 1.2 Investment value ‘Investment value’ is defined as the value assessed by a valuation expert, from which transfer costs have not been deducted (also known as ‘gross capital value’). 1.3 Fair value Properties in the Group’s portfolio or which enter into its portfolio, either with payment in cash or in kind, are valued by independent experts at their fair value. The fair value of investment properties located in Belgium is calculated as follows: • buildings with an investment value greater than €2.5 million: Fair value = investment value / (1+ the average transaction cost defined by the BE-REIT Association); • buildings with an investment value less than €2.5 million: - 1) where the expert considers that the building can be divided and sold in separate units (notably individual apartments), the fair value is defined as the lower of the separated investment value / (1 + % transfer tax levied in the region where the building is located) and the investment value / (1+ the average transaction cost defined by the BE-REIT Association); - 2) where the expert considers that the building cannot be divided and sold in separate units, the fair value is the investment value / (1 + % transfer tax levied in the region where the building is located). In 2016, valuation experts thoroughly reassessed this percentage on the basis of sample market transactions. As a result of this revaluation, the weighted transfer tax remains at 2.5%. The fair value of investment properties located abroad take into account locally applicable legal costs. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 144 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 9 Transfer taxes on acquisitions and any change in the fair value of properties during the financial year are directly recognised in the income statement. 1.4 Treatment of differences at the time of acquisition If, for acquisitions such as those defined in section I.C.1.1 (‘Acquisition value’) above, the fair value determined by the independent expert is different than the acquisition value defined in section I.C.1.1, the difference is booked in the income statement under line ‘XVIII. Changes in fair value of investment properties’. 2. Accounting for works projects (subsequent expenditures) Costs incurred by Aedifica for works carried out on investment properties are accounted for using one of two distinct methods, depending on the nature of the costs. The cost of repairs and maintenance, which neither add new functionality nor constitute a significant enhancement or upgrade to the building, are recognised as incurred expenses and are thus deducted from the year’s profit. Subsequent expenditures related to two types of works projects are capitalised as assets on the Company’s balance sheet: • a) major renovations and extensions: these usually take place every 25 to 35 years and represent an almost complete renovation of the building, often reusing parts of the original building and applying the most up-to-date building techniques. Upon completion of these major renovation projects, the buildings are considered as new and are presented as such in the real estate portfolio. • b) upgrades: these consist of occasional works that add new functionality, increase capacity, or significantly enhance or upgrade the building, making it possible to raise rents, and thus increase the building’s estimated rental income. The costs relating to these works are also capitalised in the balance sheet for the reason and to the extent that the experts usually recognise a corresponding increase in the value of the building. Costs that may be capitalised include: materials, contractor fees, technical studies, and staff fees or costs. Any excess of these costs over fair value is recognised as an expense in the income statement. Borrowing costs are capitalised for all qualifying projects with a duration of more than one year. 3. Recurring remeasurement and remeasurement in the event of share transactions 3.1 Depreciation In accordance with IAS 40, Aedifica applies the fair value model and does not recognise depreciation on its properties, the rights in rem on properties, or on properties rented to the Company under finance leases. 3.2 Share transactions Real estate properties held by Aedifica and by the subsidiaries under its control are valued by experts each time the Company proceeds to issue new shares, list shares on the stock exchange, or repurchase shares other than through the stock exchange. While Aedifica is not bound by this valuation, any issue or repurchase price set below this level must be justified (in the form of a special report). A new valuation is not required when a share issuance falls within four months of the last valuation of the property concerned, so long as the experts confirm that neither the economic situation nor the physical state of the property make a new valuation necessary. 3.3 Quarterly revaluations Each quarter, valuation experts perform a calculation of fair value based on the conditions of the properties and on fluctuations observed in the real estate market. This valuation is carried out on a building-by-building basis and covers Aedifica’s entire real estate portfolio, including properties held by its subsidiaries. These valuations are binding for Aedifica and must be reflected in the accounts. Thus, the carrying amount of the properties in the accounts corresponds to the fair value at which they are assessed by Aedifica’s independent valuation experts. 3.4 Accounting for changes in fair value Changes in the fair value of real estate properties, as determined by independent experts, arise each time the value is assessed. They are accounted for in the income statement. 4. Asset disposals Upon disposal of an investment property, the gain or loss on disposal is recognised in the income statement, in line ‘XVI. Gains and losses on disposals of investment properties’. 5. Owner-occupied investment property Any investment property occupied by Aedifica is transferred to the line ‘other tangible assets’ of the balance sheet. Its fair value at the time of the transfer becomes its deemed acquisition cost. If the Company only occupies a small part of the building, the whole building is recognised as ‘investment property’ in the balance sheet and continues to be carried at fair value. 6. Development projects Buildings under construction, renovation, or extension, which are considered development projects are recognised on the balance sheet at historical cost, including transfer taxes, non-recoverable VAT and indirect expenses (capitalised interest, insurance, legal fees, architectural fees, consulting fees, etc.). If the historical cost deviates from the fair value appraised by the independent expert, the deviation is recognised in the income statement in order to bring the carrying amount in line with the fair value. Costs incurred in the preliminary phase of development projects are recognised at their historical value. 7. Rights of use on plots of land Rights of use recognised in the balance sheet for concession or leasehold purposes or similar leases (as a result of IFRS 16) are also considered as investment properties. 8. Land reserve In 2023, Aedifica created a new ‘land reserve’ category that includes all plots of land without committed projects. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 145 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 10 I.D. Other tangible assets Tangible assets with definite useful lives, which fall outside the scope of investment property, are initially recognised at their acquisition cost. The components approach is not applied (based on materiality criteria). Depreciation is charged on a linear basis using the pro rata temporis method. As residual values are considered marginal, accumulated depreciation is expected to cover the total acquisition cost of each item included in other tangible assets. The following depreciation rates are applied: • plant, machinery and equipment: 20%; • other furniture: 20%; • vehicles: 20% to 25%; • IT: 20% to 33%. As required by IFRS 16, this balance sheet line also includes the value of the right of use of company cars and buildings used by the Group as offices. This value is depreciated on a straight-line basis over the term of the contracts. I.E. Non-current financial assets 1. Hedging instruments When a derivative provides cash flow hedges to cover a specific risk arising from a financial asset or a firm commitment or a highly probable transaction liability and meets the criteria for hedge accounting under IFRS 9, the effective portion of the income or expense is recognised directly in equity (line ‘I.C.d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS’). The ineffective portion is recognised in the income statement. When a derivative does not meet the criteria for hedge accounting under IFRS 9, it is recognised on the balance sheet at its fair value, and changes in fair value are recognised in the income statement as they occur. 2. Other financial and non-current assets Financial assets classified as held for sale are valued at fair value (market value if available, otherwise acquisition value). Changes in fair value are recognised in the income statement. Receivables are valued at amortised cost. I.H. Deferred tax assets When a building is acquired outside of Belgium, the Deferred Tax Assets mainly relate to unrealised losses on the difference between the fair value and the tax value of the buildings, whereby we expect that the effective tax loss (in case of a sale) can be offset with the taxable income of the entity concerned in the foreseeable future. I.I. Participations in associates and joint ventures Participations in associates and joint ventures are the Group’s participating interests in companies over which the Group has no or only joint control. Under the equity method, the investment in an associate or joint venture is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The investor’s share of the investee’s profit or loss is recognised in the investor’s profit or loss. They relate to Immobe NV/SA, MMCG 2 DEVCO 2 Limited, MMCG 2 DEVCO 3 Limited and Aedifica Sonneborgh Ontwikkeling BV (associates). Both MMCG 2 DEVCO 2 Limited (in February) and MMCG 2 DEVCO 3 Limited (in July) were fully acquired in the course of 2024. II.A. Assets held for sale Properties that are considered non-strategic and which are intended to be sold are included in line II.A. They are recognised at fair value, in accordance with IFRS 5. II.C/D/E. Receivables Receivables are measured at amortised cost. Impairment losses are recognised according to (i) the management assumption on outstanding receivables of more than 120 days and (ii) by applying the simplified expected credit loss (ECL) method in accordance with IFRS 9. II.G. Deferred charges and accrued income Costs incurred during the year, which relate partially or in full to the following year, are recognised on a proportional basis as deferred charges. Revenues and portions of revenues earned over the course of one or several subsequent financial years, but which are also related to the current year, are recognised in income for the amount earned in the current year. I.A. et II.A. Provisions A provision is recognised on the balance sheet when the Group has an implicit or explicit legal obligation as a result of a past event, and for which it is very probable the resources will be used to extinguish this obligation. Provisions are measured by calculating the present value of expected cash flows using a market interest rate. They are reflected as a liability on the balance sheet. I.C.b. Other non-current financial liabilities – Other The Company can commit itself to acquire the non-controlling shareholdings owned by third parties in subsidiaries, should these third parties wish to exercise their put options. The exercise price of such options granted to non-controlling interest is reflected on the balance sheet on line ‘I.C.b. Other non-current financial liabilities – Other’. As required by IFRS 16, this balance sheet line also includes the long-term portion of the lease debt for company cars, buildings used by the Group as offices and the rights of use related to plots of land – or similar leases. This value is amortised using the 'effective interest rate method'. I.F. Deferred tax liabilities When a building is acquired outside of Belgium and the net income is consequently subject to foreign tax, a deferred tax is recognised on the balance sheet in relation to the unrealised capital gain (temporary difference between the fair value and the assessed value used for tax purposes of the building in question). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 146 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 11 II.B/D/E. Current debts Debts are recognised at amortised cost at the year-end date. Debts denominated in foreign currencies are converted into Euros using the spot rate on the year-end date. Foreign exchange gains or losses arising from the revaluation of foreign currency borrowings are recognised in the income statement, except for foreign exchange gains and losses relating to the hedging of a foreign net investment, which are recognised directly in other comprehensive income. II.F. Accrued charges and deferred income Indemnities for early lease termination are recognised in the income statement when it is highly probable that Aedifica will collect the indemnities. To evaluate whether the fees will be collectible, Aedifica will only consider the customer's ability and intention to pay that amount when due. I. to XV. Operating result before result on portfolio The objective of lines I through XV is to reflect the operating profit generated by the Company’s rental property portfolio, including general operating costs. All of Aedifica’s leases are classified as operating leases with Aedifica being the lessor for the following reasons: • there is no transfer of ownership of the underlying asset at the end of the lease term; • the lessee does not have the option to purchase the underlying asset at a price that is significantly lower than the fair value; • the lease term is usually shorter than the asset’s main economic life. Lease incentives are recognised on a straight-line basis over the lease term, in accordance with IFRS 16. XVI. to XIX. Operating result The objective of lines XVI through XIX is to reflect in the income statement all transactions and accounting adjustments related to the value of the Company’s portfolio: • realised capital gains and losses: capital gains and losses are included in the line ‘Gains and losses on disposals of investment properties’; • unrealised gains and losses (carried at fair value): changes in the portfolio’s fair value are included in the income statement under ‘changes in fair value of investment properties’; • commissions paid to real estate agents and other transaction costs: commissions related to the sale of buildings are deducted from the sale price in determining the gain or loss on disposal which is recognised in the operating result. Fees paid to real estate and technical experts are recognised as current expenses. The result on disposals of investment properties represents the difference between sales proceeds (excluding transaction costs) and the latest reported fair value of the properties sold. The result is realised at the moment of the transfer of risks and rewards. Generally, transfer taxes are to be paid by the person buying the building. However, in the case of ‘acte en main’ disposals, the transfer taxes are to be paid by the seller and are thus deducted from the sale price and the gain effectively realised. XXV. to XXVI. Corporate tax and exit tax Line XXV includes current and deferred taxes. Income tax is recognised in the income statement. It is the estimated tax attributable to the taxable income of the year using the tax rate prevailing at the balance sheet date, together with any adjustment to tax liabilities relating to previous years. When a building is acquired in a country where the net income is subject to corporate income tax, a deferred tax is recognised on the balance sheet in relation to the unrealised capital gain and the unrealised loss (temporary difference between the fair value and the assessed value used for tax purposes of the building in question). Except for the portion relating to items directly recognised in equity, deferred tax is recognised in the income statement. Line XXVI includes the exit tax. This is the tax on the capital gain resulting from the approval of a Belgian company as a RREC or the merger of a non-RREC company with a RREC. When a company that does not have the status of a RREC but is eligible for this regime, enters in the consolidation scope of the Group for the first time, an exit tax provision is recognised at the company level, taking into account the anticipated date of the merger or approval. Any adjustment to this exit tax liability is recognised in the income statement. This tax will be paid when the company is merged into the parent company with RREC status. When the merger or approval takes place, the provision becomes a liability and any difference is also recognised in the income statement. Group insurance Aedifica’s insurance contracts in Belgium are considered as defined contribution plans. These contracts are analysed in Note 30. Hoivatilat’s ‘equity incentive plan’ The employees of Hoivatilat Oyj benefit from an equity incentive plan, This plan provides the participants with the opportunity to receive Aedifica shares or a cash equivalent as a reward for achieving the targets of the earnings criteria separately set by the Hoivatilat Board for each earning period. The Board of Directors will decide separately for each participant the amount of their maximum award for each earning period. The maximum award is expressed as Aedifica shares or equivalent. The plan foresees 2 parts: • A number of shares of Hoivatilat Oyj which are converted into Aedifica shares. • A cash contribution used to cover the applicable taxes and other charges. Aedifica has the choice between delivering new or existing Aedifica shares or a cash settlement. Following the recommendations of IFRS 2, amounts related to the equity incentive plan are recognised in equity against the income statement in the consolidated accounts. In 2024, the last phase of this incentive plan was paid out. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 147 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 12 Note 3: Operating segments Note 3.1: Presented segments In light of the divestments that were carried out in the course of the 2018/2019 financial year and Aedifica's strategic focus on healthcare real estate, it was decided to revise the segmented information of the operational results. Since the financial year that started on 1 July 2019, the classification is based on geographical criteria. This segmentation is aligned with the geographical markets in which Aedifica operates and is consistent with the Group's organisational structure and internal reporting. This approach, in line with IFRS 8, reflects the basis on which management makes key operational decisions. The accounting policies described in Note 2 were used for the internal reporting and the segment reporting that follows. According to IFRS 8, each group of entities falling under common control is treated as a single customer. Disclosure is mandated for revenues generated through transactions with a single customer that represents more than 10% of the company's total revenues. This requirement is applicable to: • the 51 properties (in the segments ‘Belgium’, ‘Netherlands’ and ‘Germany’) rented out to legal entities controlled by the Clariane group (formerly known as the Korian group), whose rents represent 9% of the Company’s total 2024 rental income (10% in the prior financial year). Rents mentioned here represent the turnover realised by the Company over the course of the financial year accounted for in accordance with IFRS standards. This differs from the contractual rent, which represents the yearly rent as mentioned in the contract and does not take into consideration the straight-lining of lease incentives. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 148 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 13 Note 3.2: Segment information 31/12/2024 BE DE NL UK FI SE IE ES Non- TOTAL (x €1,000) allocated SEGMENT RESULT I. Rental income 69,638 63,182 40,929 74,763 61,221 5,338 22,943 124 - 338,138 II. Writeback of lease payments sold and discounted - - - - - - - - - - III. Rental-related charges 28 -87 -81 - -10 -7 - - - -157 Net rental income 69,666 63,095 40,848 74,763 61,211 5,331 22,943 124 - 337,981 IV. Recovery of property charges - - - - 3 - - - - 3 V. Recovery of rental charges and taxes normally paid by tenants on let properties 457 3,279 1,131 785 2,854 108 355 - - 8,969 VI. Costs payable by the tenant and borne by the landlord on rental damage and repair - - - - - - - - - - at end of lease VII. Charges and taxes not recovered by the tenant on let properties -467 -3,274 -1,095 -785 -2,765 -108 -358 - - -8,852 VIII. Other rental-related income and charges 11 -12 106 -1 539 -22 - - - 621 Property result 69,667 63,088 40,990 74,762 61,842 5,309 22,940 124 - 338,722 IX. Technical costs -301 -1,295 -746 36 -1,235 -259 -107 - - -3,907 X. Commercial costs - - -39 - - - - - - -39 XI. Charges and taxes on unlet properties - - -5 - -135 - -5 - - -145 XII. Property management costs -882 -1,966 -1,010 -2,545 - -145 -284 -86 - -6,918 XIII. Other property charges 103 -20 -464 - -1,117 -1 - -53 - -1,552 Property charges -1,080 -3,281 -2,264 -2,509 -2,487 -405 -396 -139 - -12,561 Property operating result 68,587 59,807 38,726 72,253 59,355 4,904 22,544 -15 - 326,161 XIV. Overheads - - - - - - - - -35,074 -35,074 XV. Otheroperatingincomeandcharges - - - - - - - - -831 -831 OPERATING RESULT BEFORE RESULT ON PORTFOLIO 68,587 59,807 38,726 72,253 59,355 4,904 22,544 -15 -35,905 290,256 SEGMENT ASSETS Marketable investment properties 1,254,966 1,161,466 665,440 1,254,329 1,131,710 40,485 424,760 2,122 - 5,935,278 Development projects - 4,864 - 19,852 38,190 - 10,496 22,275 - 95,677 Right of use of plots of land - 3,330 - - 70,681 - - - - 74,011 Land reserve 3,358 5,467 - - 570 - 1,120 2,450 - 12,966 Investment properties 6,117,932 Assets classified as held for sale - 14,690 7,800 24,561 - 53,156 - - - 100,207 Other assets ¹ 31,092 - 494 - 87,363 - - - 126,736 245,685 Total assets 6,463,824 Equity Equity attributable to owners of the parent - - - - - - - - 3,642,975 3,642,975 Non-controlling interests - - - - - - - - 5,122 5,122 Liabilities - - - - - - - - 2,815,727 2,815,727 Total equity and liabilities 6,463,824 GROSS YIELD IN FAIR VALUE ² 5.7% 5.5% 6.1% 6.4% 6.0% 6.3% 5.6% - - 5.9% 1. The figures in Belgium and the Netherlands relate to investments accounted for using the equity method (see Note 16 for more details) and the figure in Finland relates to goodwill (see Note 19 for more details). The ‘Non-allocated’ section includes all other lines of the assets. 2. The gross yield in fair value is calculated by dividing the contractual rent by the fair value of marketable investment properties and assets classified as held for sale. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 149 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 14 31/12/2023 BE DE NL UK FI SE IE ES Non- TOTAL (x €1,000) allocated SEGMENT RESULT I. Rental income 73,250 61,160 38,203 64,793 54,269 4,226 18,006 267 - 314,174 II. Writeback of lease payments sold and discounted - - - - - - - - - - III. Rental-related charges -550 -191 -17 -354 -22 - - - - -1,134 Net rental income 72,700 60,969 38,186 64,439 54,247 4,226 18,006 267 - 313,040 IV. Recovery of property charges - - - - - - - - - - V. Recovery of rental charges and taxes normally paid by tenants on let properties 295 2,975 1,073 674 1,769 102 305 - - 7,193 VI. Costs payable by the tenant and borne by the landlord on rental damage and - - - - - - - - - - repair at end of lease VII. Charges and taxes not recovered by the tenant on let properties -299 -2,985 -1,031 -678 -1,807 -100 -305 - - -7,205 VIII. Other rental-related income and charges -5 -4 -80 -1 40 -41 1 - - -90 Property result 72,691 60,955 38,148 64,434 54,249 4,187 18,007 267 - 312,938 IX. Technical costs -375 -936 -733 -226 -589 -286 -24 - - -3,169 X. Commercial costs - - -58 - - - - - - -58 XI. Charges and taxes on unlet properties -1 -5 -23 -3 -82 - - - - -114 XII. Property management costs -809 -1,555 -1,215 -2,447 -4 -117 -226 -79 - -6,452 XIII. Other property charges -199 -2 -326 - -897 - - - - -1,424 Property charges -1,384 -2,498 -2,355 -2,676 -1,572 -403 -250 -79 - -11,217 Property operating result 71,307 58,457 35,793 61,758 52,677 3,784 17,757 188 - 301,721 XIV. Overheads - - - - - - - - -35,740 -35,740 XV. Other operating income and charges - - - - - - - - -171 -171 OPERATING RESULT BEFORE RESULT ON PORTFOLIO 71,307 58,457 35,793 61,758 52,677 3,784 17,757 188 -35,911 265,810 SEGMENT ASSETS Marketable investment properties 1,224,306 1,145,874 651,180 1,010,674 1,027,080 74,788 393,084 2,578 - 5,529,564 Development projects 5,285 29,016 6,450 16,476 69,890 15,035 19,601 7,197 - 168,950 Right of use of plots of land - 3,385 - - 69,787 - - - - 73,172 Land reserve 3,358 8,790 1,880 - 430 592 1,120 2,500 - 18,671 Investment properties 5,790,357 Assets classified as held for sale 11,612 11,420 - 35,126 - - - - - 58,158 Other assets ¹ 35,491 - 494 - 117,597 - - - 174,714 328,296 Total assets 6,176,811 Equity Equity attributable to owners of the parent - - - - - - - - 3,575,862 3,575,862 Non-controlling interests - - - - - - - - 5,039 5,039 Liabilities - - - - - - - - 2,595,910 2,595,910 Total equity and liabilities 6,176,811 GROSS YIELD IN FAIR VALUE ² 5.7% 5.4% 6.2% 6.4% 5.8% 6.1% 5.6% - - 5.8% 1. The figures in Belgium and the Netherlands relate to investments accounted for using the equity method (see Note 16 for more details) and the figure in Finland relates to goodwill (see Note 19 for more details). The ‘Non-allocated’ section includes all other lines of the assets. 2. The gross yield in fair value is calculated by dividing the contractual rent by the fair value of marketable investment properties and assets classified as held for sale. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 150 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 15 Note 4: Net rental income (x €1,000) 31/12/2024 31/12/2023 Rents earned 337,665 313,597 Guaranteed income 0 0 Cost of rent free periods 0 0 Indemnities for early termination of rental contracts 473 577 RENTAL INCOME 338,138 314,174 Rents payable as lessee -3 0 Write-downs on trade receivables 490 -362 Write-off on trade receivables -644 -772 RENTAL-RELATED CHARGES -157 -1,134 NET RENTAL INCOME 337,981 313,040 The Group leases its buildings exclusively through operating leases. Although the lease terms are generally long, the leases are not classified as financial leases due to the following reasons: • there is no transfer of ownership of the underlying asset at the end of the lease term; • the lessee does not have the option to purchase the underlying asset at a price that is significantly lower than the fair value; • the lease term is usually shorter than the asset’s main economic life. For these three reasons, the leases are classified as operating leases. From these operating leases, more than 99% are income related to fixed lease payments. The increase in earned rents compared to the previous period is attributed to the growth of the portfolio during the 2024 financial year and annual indexation. The schedule of future minimum lease payments to be collected under non-cancellable operating leases required by IFRS 16.97 is based on the following assumptions, which are conservative: • long-term leases: no inflation; • rents in foreign currencies in the United-Kingdom and Sweden are converted according to the 2024 average exchange rate, 0.84662 EUR/GBP and 11.43639 EUR/SEK, respectively. Future minimum lease payments to be collected under non-cancellable operating leases are presented as follows: (x €1,000) 31/12/2024 31/12/2023 Not later than one year 355,200 324,277 Between one and two years 354,660 323,945 Between two and three years 354,660 323,795 Between three and four years 354,292 323,795 Between four and five years 352,368 322,266 Later than five years 4,977,761 4,631,577 TOTAL 6,748,939 6,249,654 Rental income includes contingent rents amounting to €1,403 k in 2024 (31 December 2023: €1,187 k). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 151 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 16 Note 5: Property result (x €1,000) 31/12/2024 31/12/2023 NET RENTAL INCOME 337,981 313,040 Indemnities on rental damage 3 0 RECOVERY OF PROPERTY CHARGES 3 0 Rebilling of rental charges invoiced to the landlord 2,657 1,530 Rebilling of property taxes and other taxes on let properties 6,312 5,663 RECOVERY OF RENTAL CHARGES AND TAXES NORMALLY PAID BY 8,969 7,193 TENANTS ON LET PROPERTIES COSTS PAYABLE BY THE TENANT AND BORNE BY THE LANDLORD 0 0 ON RENTAL DAMAGE AND REPAIR AT END OF LEASE Rental charges invoiced to the landlord -2,533 -1,475 Property taxes and other taxes on let properties -6,319 -5,730 CHARGES AND TAXES NOT RECOVERED BY THE TENANT ON LET -8,852 -7,205 PROPERTIES Maintenance and service fees -3,268 -2,652 Rebilling of maintenance and service fees 3,889 2,562 OTHER RENTAL-RELATED INCOME AND CHARGES 621 -90 PROPERTY RESULT 338,722 312,938 Note 6: Property operating result (x €1,000) 31/12/2024 31/12/2023 PROPERTY RESULT 338,722 312,938 Repair and maintenance -2,773 -1,655 Insurance -330 -459 Employee benefits 0 42 Expert fees -804 -1,097 TECHNICAL COSTS -3,907 -3,169 Letting fees paid to real estate brokers 0 0 Marketing 0 0 Fees paid to lawyers and other legal costs 0 0 Other -39 -58 COMMERCIAL COSTS -39 -58 Charges -145 -114 CHARGES AND TAXES ON UNLET PROPERTIES -145 -114 Fees paid to external property managers -281 -257 Internal property management expenses -6,637 -6,195 PROPERTY MANAGEMENT COSTS -6,918 -6,452 Property taxes and other taxes -1,552 -1,424 OTHER PROPERTY CHARGES -1,552 -1,424 PROPERTY OPERATING RESULT 326,161 301,721 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 152 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Note 7: Overheads (x €1,000) 31/12/2024 31/12/2023 PROPERTY OPERATING RESULT 326,161 301,721 Lawyers/notaries -1,233 -1,889 Auditors/accountants -1,246 -953 Real estate experts -1,616 -1,917 IT -2,259 -1,710 Insurance -225 -787 Public relations, communication, marketing, publicity -651 -720 Directors and executive management -4,858 -4,421 Employee benefits -10,951 -11,455 Depreciation and amortisation of other assets -2,508 -2,180 Tax expense -2,135 -1,451 Tax consulting -1,735 -2,758 Headhunter and recruitment costs -307 -290 Travel and representation -671 -563 Other -4,679 -4,646 Financial services -609 -617 Fleet -522 -561 Office charges payable as lessee -652 -727 Communication equipment/subscriptions -175 -176 Training -313 -356 Office supplies -247 -250 Other professional fees -2,498 -2,391 Other 337 432 Overheads -35,074 -35,740 Other operating income and charges -831 -171 OPERATING RESULT BEFORE RESULT ON PORTFOLIO 290,256 265,810 Audit fees (x €1,000) 31/12/2024 31/12/2023 Statutory audit (Aedifica NV/SA) 142 129 Statutory audit (subsidiaries) 543 639 Opinion reports foreseen in the Belgian Companies and Associations Code 12 64 Other opinion reports (comfort letter, etc.) 0 2 Tax advice missions 0 0 Other missions unconnected with the statutory audit 47 14 TOTAL 744 848 Related party transactions (x €1,000) 31/12/2024 31/12/2023 Short-term benefits 4,501 4,150 Post-employment benefits 272 271 Other long-term benefits 0 0 Termination benefits 0 0 Share-based payments 85 0 TOTAL 4,858 4,421 Related party transactions (as defined under IAS 24 and the Belgian Companies and Associations Code) relate exclusively to the remuneration of the members of the Board of Directors and the Executive Committee (€4,858 k in 2024; €4,421 k in 2023). Employee benefits expense Total employee benefits (excluding Executive Managers and Directors – see ‘Related party transactions’ above) are broken down in the income statement as follows: (x €1,000) 31/12/2024 31/12/2023 Technical costs (see Note 6) 0 42 Overheads (see Note 7) -10,951 -11,455 Property management costs (see Note 6) -6,637 -6,195 TOTAL -17,588 -17,608 Headcount at the end of the financial year and full-time equivalents (excluding Executive Directors): (x €1,000) 31/12/2024 31/12/2023 Headcount at the year-end 131 127 Employees 126 122 Executive management personnel 5 5 FULL-TIME EQUIVALENT (EXCL. EXECUTIVE MANAGEMENT 123.6 120.0 PERSONNEL) DURING THE YEAR ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 17 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 153 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 18 Note 8: Gains and losses on disposals of investment properties (x €1,000) 31/12/2024 31/12/2023 Net sale of properties (selling price - transaction costs) 80,331 73,091 Carrying amount of properties sold (fair value of assets sold) 79,957 73,947 TOTAL 374 -856 The main disposals of the financial year are detailed in Note 37. The net sale of properties in 2023 includes compensation received from tenants for the loss of fair value related to the sale of assets, due to the early termination of the lease. Note 9: Gains and losses on disposals of other non-financial assets Over the course of the current and previous financial years, Aedifica has not recognised any gains or losses from the sale of other non-financial assets. Note 10: Changes in fair value of investment properties (x €1,000) 31/12/2024 31/12/2023 Belgium -17,404 -27,229 Germany -16,882 -75,259 Netherlands 13,167 -24,093 United Kingdom 35,050 20,854 Finland 1,165 -12,108 Sweden -1,183 -6,834 Ireland 2,254 -18,465 Spain -972 -502 TOTAL 15,195 -143,636 Of which: Marketable investment properties 25,489 -124,135 Development projects -5,129 -14,244 Right of use of plots of land -1,749 -1,367 Land reserve -3,416 -3,890 In 2024, the most significant changes are observed in Germany, the Netherlands, the United Kingdom and Ireland. These changes are explained as follows: • Germany: In 2024, the healthcare real estate market continued to feel the impact of the challenges of 2023, including inflation, changes in the financing environment, and increased cost pressures. This led to further shifts in the operator market, with sites of some operators that had become insolvent in 2023 being taken over. However, prime yields for both care homes and assisted living facilities remained stable throughout the year, indicating that the price adjustment process is likely to stabilise. • Netherlands: The fair value of the portfolio increased in 2024 due to positive market sentiment. The decline in interest rates translates into lower yield requirements for real estate investors. The increase in fair value is also driven by the indexation of rental income. • United Kingdom: There was a further increase in portfolio valuation in 2024, driven by strong trading performance and higher rent covers across the portfolio. This growth was further supported by the completion and addition of new care homes. • Ireland: In 2024, the portfolio increased slightly, driven by fair deal uplifts, indexation and project completions. For more details, see section 1.3 ‘Market trends’ of the ‘Portfolio’ chapter. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 154 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 19 Note 11: Other result on portfolio (x €1,000) 31/12/2024 31/12/2023 Goodwill impairment -30,235 -26,072 Other 0 0 TOTAL -30,235 -26,072 During the financial year under review, the Group recognised a goodwill impairment related to the acquisition of Hoivatilat Oyj (see Note 19 for more information). Note 12: Financial income (x €1,000) 31/12/2024 31/12/2023 Reinvoiced interests 324 2,181 Other 647 825 TOTAL 971 3,006 The financial income of 2024 mainly includes €0.3 million of earned interest on loans granted to associated companies (€0.9 million in 2023) and €0.5 million of interest received on bank accounts and bank deposits. The financial income of 2023 also includes €1.2 million of reinvoiced interests which are now disclosed in the net interest charges (see Note 13) and €0.4 million of realised and unrealised foreign exchange differences. Note 13: Net interest charges (x €1,000) 31/12/2024 31/12/2023 Nominal interest on borrowings -87,500 -76,824 Bilateral loans - floating or fixed rate -61,189 -55,060 Short-term treasury Notes - floating rate -12,240 -7,892 Investment credits - floating or fixed rate -3,346 -3,338 Long-term treasury Notes - fixed rate -1,396 -1,394 Bond - Fixed rate -3,753 -3,747 Private placement - fixed rate -5,576 -5,393 Charges arising from authorised hedging instruments Authorised hedging instruments qualifying for hedge accounting -1,278 -2,126 as defined under IFRS Authorised hedging instruments not qualifying for hedge accounting -16,845 -16,965 as defined under IFRS Subtotal -18,123 -19,091 Income arising from authorised hedging instruments Authorised hedging instruments qualifying for hedge accounting 4,751 7,528 as defined under IFRS Authorised hedging instruments not qualifying for hedge accounting 50,065 39,188 as defined under IFRS Subtotal 54,816 46,716 Capitalised and reinvoiced interest charges 5,539 5,716 Interest cost related to leasing debts booked in accordance with IFRS 16 -1,429 -1,393 Other interest charges -4 -128 TOTAL -46,701 -45,004 In 2024, the increase in interest on borrowings was partly offset by the increase in income from authorised hedging instruments and capitalised and reinvoiced interest charges. In 2023, the reinvoiced interests were disclosed in the financial income (see Note 12). Charges and income arising from hedging instruments represent Aedifica’s cash interest payments or receipts related to the derivatives presented in Note 23 and detailed in Note 32. Changes in the fair value of these derivatives are recognised in the income statement and are listed in Note 15. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 155 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 20 Note 14: Other financial charges (x €1,000) 31/12/2024 31/12/2023 Bank charges and other commissions -5,082 -5,069 Other -94 -112 TOTAL -5,176 -5,181 The other financial charges mainly include €3,514 k of commitment fees (2023: €3,514 k). Note 15: Changes in fair value of financial assets and liabilities (x €1,000) 31/12/2024 31/12/2023 Authorised hedging instruments Authorised hedging instruments qualifying for hedge accounting 0 0 as defined under IFRS Authorised hedging instruments not qualifying for hedge accounting -18,238 -50,548 as defined under IFRS Subtotal -18,238 -50,548 Other -470 -330 TOTAL -18,708 -50,878 The Line ‘Other’ represents the changes in fair value of the put options granted to non-controlling shareholders (see Notes 23 and 42). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 156 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 21 Note 16: Share in the profit or loss of associates and joint ventures On 1 July 2018, Aedifica transferred the ‘apartments’ branch of activities to a separate company (Immobe NV/SA), which was initially wholly controlled by Aedifica NV/SA. Aedifica NV/SA gradually sold its shares in Immobe NV/SA (in 2 phases) to Primonial European Residential Fund: • phase 1: sale of 50% (minus one share) during the second quarter of the 2018/2019 financial year (see press release of 31 October 2018 for more information); • phase 2: sale of an additional 25% (plus two shares) during the third quarter of the 2018/2019 financial year (see press release of 27 March 2019 for more information). Following the sale of the second phase, Immobe NV/SA is no longer a perimeter company and is consolidated using the equity method. On 7 July 2022, Aedifica set up a joint venture (with a 50% stake) with Sonneborgh Ontwikkeling BV for the acquisition of a real estate company that owns land in the Netherlands. The purpose of Aedifica Sonneborgh Ontwikkeling BV is to obtain building permits and construct a care home. Upon completion, the building will be transferred to Aedifica Sonneborgh Real Estate BV, another company controlled by Aedifica. On 1 April 2022 and 9 September 2022, Aedifica UK Ltd acquired a 25% stake in 2 British real estate companies that own plots of land (MMCG 2 Devco 2 Ltd and MMCG 2 Devco 3 Ltd, respectively). The value of the shares acquired amounts to £268 for each company. The remaining shares are held by Maria Mallaband Care Group, which is developing a care home on each of the plots. Upon completion of the buildings in 2024, Aedifica UK Ltd acquired full ownership of the completed properties by taking control of the remaining shares in the companies. (x €1,000) 31/12/2024 31/12/2023 Carrying amount at the beginning of the year 35,985 40,824 Acquisition of shares of associates and joint ventures accounted for 43 25 using the equity method Disposal of shares of a subsidiary resulting in their equity method 0 0 accounting (formerly under full consolidation) Share in the profit or loss of associates and joint ventures accounted for -571 -256 using the equity method Impact of dividends received on equity -399 -1,115 Distribution of share premium -3,471 -3,492 Other -1 -1 Carrying amount at the end of the year 31,586 35,985 Company Immobe NV/SA Aedifica Sonneborgh Ontwikkeling BV Segment Apartment buildings Healthcare real estate Country Belgium Netherlands % held by the Group 24.97% 50.00% Partner shareholders Primonial European Sonneborgh Ontwikkeling BV Residential Holdco Sarl Date of company creation June 2018 October 2015 Amount of the Group share in the result 31/12/2024 31/12/2024 (x1.000 €) Net result (100%) -2,119 -84 Other elements of the global result 0 0 Global result -2,119 -84 % held by the Group 24.97% 50.00% Share in the profit or loss of associates and joint ventures accounted for using the equity method -529 -42 Amount of the interest at the Group (x 1.000€) Equity-accounted investments 31,092 494 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 157 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Note 17: Tax (x €1,000) 31/12/2024 BE DE NL UK FI SE IE ES TOTAL Current taxes -421 -2,753 3,333 -4,065 -68 -8 -158 0 -4,140 Exit tax 135 0 0 0 0 0 0 0 135 Deferred taxes 0 -4,620 0 23,055 -9,301 -5,086 -522 165 3,691 TOTAL TAX -286 -7,373 3,333 18,990 -9,369 -5,094 -680 165 -314 (x €1,000) 31/12/2023 BE DE NL UK FI SE IE ES TOTAL Current taxes -445 -2,417 8,417 -3,074 -114 -68 -994 0 1,305 Exit tax 54 0 0 0 0 0 0 0 54 Deferred taxes 0 5,773 19,788 -2,438 952 729 -375 -169 24,260 TOTAL TAX -391 3,356 28,205 -5,512 838 661 -1,369 -169 25,619 Taxes are composed of current taxes, deferred taxes and exit tax. Current taxes consist primarily of tax generated abroad, tax on the result of consolidated subsidiaries and, to a lesser extent, of Belgian tax on Aedifica’s non-deductible expenditures (since Belgian REITs benefit from a specific tax regime, leading to the taxation of only non-deductible costs, such as regional taxes, car costs, representation costs, social costs, donations, etc.). Deferred taxes generally arose from the recognition at fair value of buildings located in a country where the net income is subject to corporate income tax in conformity with IAS 40. This deferred tax (with no monetary impact, that is to say, non-cash) is thus excluded from the EPRA Earnings (see Note 24). As revenue threshold requirements (as detailed in IAS 12 – 'OECD pillar two model rules') are not met, the Group is exempt to apply the Pillar two model rules on deferred tax assets and liabilities. Fiscal Investment Institutions (‘FBI’) in the Netherlands In September 2022, the Dutch government announced its intention to exclude direct investments in real estate from the Fiscal Investment Institutions (Fiscale Beleggingsinstellingen, ‘FBI’) regime as from 1 January 2024. The entry into force of this measure was postponed to 1 January 2025. Although Aedifica believed it met the conditions for claiming the FBI regime and submitted applications to the Dutch tax authorities to that effect, it opted as a matter of prudence for a common law tax burden on the results of its Dutch subsidiaries from the start of its operations in the Netherlands in 2016. Every year, the Group claimed the application of this regime. At the end of 2022, the Group received confirmation that the FBI requirements were met for the past fiscal years. Aedifica decided to reverse the accrued tax provisions of previous years in the income statement upon receipt of the final corporate tax assessment. In 2023, approx. €9.0 million in refunds for the period from 2016 to 2021 was received and recognised in the income statement. The final corporate tax assessment for the year 2022 was received early 2024. The accrued tax provisions for 2022 amounted to approx. €4.2 million. For the years 2023 and 2024, no provisions for corporate income tax have been made in the Dutch subsidiaries. UK REIT regime To make Aedifica's investments in the United Kingdom more attractive and increase the contribution of UK operating cash flows to the Group's results, Aedifica decided to operate in the UK under the REIT regime. In this context, Aedifica has transferred its real estate activities in the UK, Jersey and the Isle of Man to the recently incorporated AED UK Holdings Ltd. This wholly owned non-listed entity now holds the shares of all UK subsidiaries within the Aedifica group. On 30 January 2024, the holding notified HMRC of its intention to become a REIT. As a result, the accounting period under the REIT regime began on 1 February 2024. The properties located in Jersey and the Isle of Man do not benefit from the UK REIT regime. Under REIT legislation, companies are exempt from UK corporation tax on UK property investment income and gains on UK property. However, REITs must distribute 90% of underlying tax-exempt property income (not gains) to shareholders within twelve months. These distributions are subject to a 20% withholding tax. Following the double tax treaty between the United Kingdom and Belgium, the net impact of the withholding tax amounts to only 15%. In 2024, the accrued deferred tax liabilities in the UK portfolio were reversed following the obtention of the UK REIT regime. ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 22 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 158 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 23 Note 18: Earnings per share The earnings per share (‘EPS’ as defined by IAS 33) is calculated as follows: 31/12/2024 31/12/2023 Profit (loss) (Owners of the parent) (x €1,000) 204,831 24,535 Weighted average number of shares outstanding during the period 47,550,119 43,706,129 Basic EPS (in €) 4.31 0.56 Diluted EPS (in €) 4.31 0.56 Aedifica uses EPRA Earnings to comply with the EPRA’s recommendations and to measure its operational and financial performance; however, this performance measure is not defined under IFRS (see Note 43). It is calculated as follows: (x €1,000) 31/12/2024 31/12/2023 Profit (loss) (Owners of the parent) 204,831 24,535 Changes in fair value of investment properties (see Note 10) -15,195 143,636 Gain and losses on disposal of investment properties (see Note 8) -374 856 Deferred taxes in respect of EPRA adjustments (see Notes 17 and 24) -3,826 -24,314 Tax on profits or losses on disposals (see Notes 8 and 17) 0 0 Changes in fair value of financial assets and liabilities (see Note 15) 18,708 50,878 Goodwill impairment (see Note 11) 30,235 26,072 Share in the profit or loss of associates and joint ventures accounted for 592 574 using the equity method in respect of EPRA corrections Non-controlling interests in respect of the above -390 -2,658 Roundings 0 0 EPRA Earnings 234,581 219,579 Weighted average number of shares outstanding during the period 47,550,119 43,706,129 EPRA Earnings per share (in €) 4.93 5.02 EPRA Earnings diluted per Share (in €) 4.93 5.02 The calculation in accordance with the model recommended by EPRA is included on page 196 of this Annual Report. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 159 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 24 Note 19: Goodwill (x €1,000) 31/12/2024 31/12/2023 Gross value at the beginning of the year 165,284 165,204 Cumulative impairment losses at the beginning of the year -47,687 -21,535 Carrying amount at the beginning of the year 117,597 143,669 Gross value – Additions / transfer 0 0 Gross value – Disposals 0 0 Gross value – Increase / decrease due to foreign exchange rate 168 80 Impairment losses – Additions -30,235 -26,072 Impairment losses – Disposals 0 0 Impairment losses – Increase / decrease due to foreign exchange rate -168 -80 Roundings 1 0 CARRYING AMOUNT AT THE END OF THE YEAR 87,363 117,597 of which: gross value 165,453 165,284 cumulative impairment losses -78,090 -47,687 In accordance with the requirements of IAS 36 – Impairment of Assets, the Group primarily analysed the carrying amount of goodwill. The gross value of goodwill resulting from the acquisition of Hoivatilat Oyj in 2020 remains unchanged (€161,726 k). It results from the positive difference between the acquisition cost (the price paid for the shares of Hoivatilat Oyj) and the fair value of the net assets acquired. When the Aedifica Group acquired Hoivatilat Oyj, the company already had a complete and operational development team. The goodwill paid by the Aedifica Group is a recognition of the capabilities, know-how and local connections that enable Hoivatilat Oyj to achieve the expected development goals. Since the acquisition in January 2020, the company has successfully achieved these development goals and remains on track with management expectations. The addition of goodwill in 2021 (£3,043 k on the books of Aedifica UK Limited, the buyer) arose from the acquisition of Aedifica UK Management Limited (formerly Layland Walker Limited), which is the asset management company of the UK subsidiaries. It results from the positive difference between the acquisition cost (the price paid for the shares of Aedifica UK Management Limited) and the fair value of the net assets acquired. In 2022, a price adjustment arose from the application of the normal share purchase agreement mechanism, resulting in an addition of €44 k (corresponding to £40 k on the books of Aedifica UK Limited). The goodwill relating to Aedifica UK Management Limited was fully impaired in 2021 and 2022. The change in the foreign exchange rate between euro and British pound sterling compared to 31 December 2023 also resulted in an increase in both gross value and cumulative impairment losses of €168 k. Impairment test On 31 December 2024, the goodwill of the Hoivatilat Oyj acquisition was subject to an impairment test by comparing the carrying value of the cash generating units to which goodwill is allocated with the recoverable amount of those Cash Generating Units (CGU). CGU’s to which goodwill is allocated are the existing investment properties of Hoivatilat in Finland, together with the future development activities in Finland enabled by Hoivatilat’s internal development team and aligned with the development objectives set as from acquisition. In determining the recoverable amount of a cash-generating unit, management uses estimates. The methods used to calculate the recoverable amount include methods based on discounted cash flows and methods based on market prices. Discounted cash flow valuations refer to projections based on financial plans approved by management, which are also used for internal purposes. The chosen planning horizon reflects the assumptions for short- to medium-term market developments and is taken into account for the calculation of the perpetual annuity. The terminal value is reached at the end of the planning horizon, taking into account the achievement of the development pipeline. On 31 December 2024, the recoverable amount is the estimated fair value less cost of disposal of the Hoivatilat shares. The fair value less costs of disposal is determined by the Group using the expected future net cash flows covering the next four years based on the rents of the underlying investment properties and development projects (as per the tenants’ lease agreements), the expenses to maintain and manage the property portfolio, and the value of development activities. Cash flows beyond the first 4 planning years are extrapolated using an appropriate terminal growth rate. This valuation represents a level 3 fair value measurement. The key assumptions in determining fair value less disposal costs are the completion of the development pipeline over the next four years, the indexation rate (which also directly affects the terminal growth rate) and the discount rate. They are mainly derived from internal sources and are based on past experience and extended by current internal expectations. They are also underlined by external market data and estimates. Any future changes in the above assumptions could have a significant impact on the fair values of the cash-generating units. Management’s approach in the calculation of the fair value less cost of disposal of Hoivatilat: • The cash flow forecast (based on a budget plan approved by management) applied to determine the value of investment properties and ongoing development projects covers 4 years after testing date. • The indexation rate applied to the 4-year forecast is based on the consumer price index in Finland and varies for each lease. • The terminal perpetual growth rate applied on the last cash flow of the four year budget stands at 2%, which corresponds to the ECB's long-term target (2% in the 2023 impairment test). • The value of development activities is determined assuming that a pipeline of €60 million per year (€100 million per year in the 2023 impairment test) will be developed over 4 years and sold upon completion. The yield on cost applied to determine the fair value of the non-committed pipeline amounts to approx. 6.5% (6.5% in the 2023 impairment test) and is based on the assumptions used by the independent real estate experts in the valuation of the existing portfolio. Climate change is one of the variables that experts include in their valuation. • Divestments of €15 million per year over 4 years are considered to align with management’s strategic asset rotation programme (none in the 2023 impairment test). • The discount rate amounts to 5.45% (5.45% in the 2023 impairment test), based on the average required return on equity and debt. Management applies a capital asset pricing model based on observable market data. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 160 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 25 The assumptions used in our valuation model for the execution of development activities and maintenance expenses take into account the current sustainability requirements applicable to this type of assets in Finland. Climate change brings several challenges that may negatively impact the future value of assets (see risk factor 5. ‘Climate change’ on page 130). On 31 December 2023, the carrying value amounted to €1,213,634 k and the recoverable amount was €1,187,562 k. On 31 December 2024, the carrying value amounted to €1,258,805 k and the recoverable amount was €1,228,571 k. The negative difference of €30.235 k was recognised as impairment in the Consolidated Income Statement. The estimated recoverable amount is negatively impacted by the discount rate. Sensitivity analysis Change of recoverable amount (in %) 31/12/2024 31/12/2023 Change in inflation +1.00% 23% 26% +0.50% 11% 12% -0.50% -9% -10% -1.00% -17% -19% Change in discount rate +1.00% -19% -22% +0.50% -10% -12% -0.50% 12% 14% -1.00% 26% 30% The sensitivity analysis does not consider the effect of one variable on the others, because there is no consensus on the methodology to be applied in order to quantify such impact. Note 20: Intangible assets Intangible assets all have a limited useful life and consist mainly of computer software. Amortisation is recognised in income under the line ‘overheads’ (see Note 7). (x €1,000) 31/12/2024 31/12/2023 Gross value at the beginning of the year 4,412 3,872 Amortisations at the beginning of the year -2,749 -2,015 Carrying amount at the beginning of the year 1,663 1,857 Entries: items acquired separately 194 540 Disposals -104 0 Amortisations to income statement -809 -734 Amortisations related to acquisitions and disposals 103 0 CARRYING AMOUNT AT THE END OF THE YEAR 1,047 1,663 of which: Gross value 4,502 4,412 Amortisations -3,455 -2,749 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 161 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 26 Note 21: Investment properties Note 21.1: Overview of investment properties (x €1,000) 31/12/2024 31/12/2023 Marketable investment properties 5,935,278 5,529,564 + Assets classified as held for sale 100,207 58,158 + Right of use of plots of land 74,011 73,172 + Land reserve 12,966 18,671 Marketable investment properties including assets classified as held 6,122,462 5,679,565 for sale, or investment properties portfolio + Development projects 95,677 168,950 Investment properties including assets classified as held for sale, or 6,218,139 5,848,515 real estate portfolio All investment properties are located in Belgium, Germany, the Netherlands, the United Kingdom, Finland, Sweden, Ireland and Spain. Assets classified as held for sale (line II.A. included in the assets on the balance sheet) amount to €100.2 million as at 31 December 2024. They relate to five properties in the United Kingdom, two properties in Germany, two properties in the Netherlands and 22 properties in Sweden that are considered to be non- strategic assets. These divestments either optimise the composition and asset quality of our portfolio, or they generate capital that can be recycled to finance new investment opportunities offering better returns. Development projects are detailed in the ‘Portfolio’ chapter included in the present Annual Report. In 2023, Aedifica created a new ‘land reserve’ category that includes all plots of land without committed projects. The evolution of the marketable investment properties and development projects is detailed in the following table: (x €1,000) Marketable Development TOTAL investment projects properties CARRYING AMOUNT AS AT 01/01/2023 5,365,071 184,295 5,549,366 Acquisitions 54,769 4,513 59,282 Disposals -73,978 - -73,978 Capitalised interest charges - 5,722 5,722 Capitalised development costs - 1,043 1,043 Other capitalised expenses 3,106 257,290 260,396 Spreading of rental gratuities and concessions 8,865 - 8,865 Transfers due to completion 262,282 -262,282 - Changes in fair value (see Note 10) -124,135 -14,244 -138,379 Other expenses booked in the income statement - - - Net exchange difference on foreign operation 22,084 803 22,887 Transfers to land reserve -14,375 -8,190 -22,565 Assets classified as held for sale 25,875 - 25,875 CARRYING AMOUNT AS AT 31/12/2023 5,529,564 168,950 5,698,514 CARRYING AMOUNT AS AT 01/01/2024 5,529,564 168,950 5,698,514 Acquisitions 224,987 - 224,987 Disposals -80,398 - -80,398 Capitalised interest charges - 4,101 4,101 Capitalised development costs - 1,408 1,408 Other capitalised expenses 8,616 134,676 143,292 Spreading of rental gratuities and concessions 10,158 - 10,158 Transfers due to completion 208,523 -208,523 - Changes in fair value (see Note 10) 25,489 -5,129 20,360 Other expenses booked in the income statement - - - Net exchange difference on foreign operation 47,947 363 48,310 Transfers to land reserve 2,441 -169 2,272 Assets classified as held for sale -42,049 - -42,049 CARRYING AMOUNT AS AT 31/12/2024 5,935,278 95,677 6,030,955 The main impact on net exchange difference on foreign operation is generated by the Group’s operations in British pound sterling and, to a lesser extent, its operations in Swedish krona. For more details on the currency valuation method applied within the Group, see Note 2. The fair value of the marketable investment properties as at 31 December 2024 is assessed by independent valuation experts. The average capitalisation rate applied to contractual rents is 5.92% (in accordance with the valuation methodology – presented in the first bullet of section 1.12 of the Standing Documents included in the 2024 Annual Report). A positive 0.10% change in the capitalisation rate would lead to a negative change of approx. €100 million in the portfolio’s fair value. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 162 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 27 Note 21.2: Acquisitions during the financial year Acquisitions made during a financial year, as detailed in the Financial Review included in the present Annual Report, can be realised in four ways: • Acquisition of a property directly, paid in cash, presented under the item ‘Purchase of Investment Properties and Development Projects’ of the cash flow statement; • Acquisition of a property, paid in shares, these transactions are not included in the cash flow statement as they do not generate cash flow; • Acquisition of the company owning a property, paid in cash, shown under the item ‘Purchase of Real Estate companies’ of the cash flow statement for the amount of the shares bought; • Acquisition of the company owning a property, paid in shares, these transactions are not included in the cash flow statement as they do not generate cash flow. (x €1,000) 31/12/2024 31/12/2023 Marketable investment properties Properties against cash 113,622 41,150 Properties against shares 0 0 Companies against cash 111,365 13,620 Companies against shares 0 0 Development projects Properties against cash 0 3,245 Properties against shares 0 0 Companies against cash 0 1,268 Companies against shares 0 0 TOTAL 224,987 59,282 The amount of €113,622 k included in the cash flow statement under the heading ‘Purchase of Investment Properties and Development Projects’ comprises the sum of the properties paid in cash. The amount of €107,199 k included in the cash flow statement under the heading ‘Purchase of Real Estate companies’ comprises among other things the sum of the companies paid in cash. Note 21.3: Assessment method and unobservable data All investment properties are considered to be at ‘level 3’ on the fair value scale defined under IFRS 13. This scale includes three levels: Level 1: observable listed prices in active markets; Level 2: observable data other than the listed prices included in level 1; Level 3: unobservable data. During the 2024 financial year, there were no transfers between level 1, level 2 and level 3. The valuation methodologies (approach under which a capitalisation rate is applied to the estimated rental value and another approach based on the present value of future cash flows) are described in section 1.12 of the standing documents of the present Annual Report. The remaining economic life of the asset is not formally determined, but implicitly recognised through the discount rate and the exit yield in case of DCF method or implicitly recognised through the capitalisation rate used for the activation method, including a factor for building obsolescence. In all cases, this remaining economic life is at least equal to the remaining term of the current lease. The same principle applies to the operational margin of the operators, which is implicity taken into account in the discount rate and the capitalisation rate. For other unobservable input not included in the table on page 163, see section 1 of the ‘Portfolio’ chapter and ‘Summary of investment properties’ in the ‘Additional information’ chapter. The valuation of the buildings is based on an occupancy rate of 100% for the entire healthcare real estate portfolio. The different parameters applied in the capitalisation method can vary depending on the location of the assets, the quality of the building, quality of the operator, lease length, the size of the building, square metre per unit, etc., which explains the significant differences between the minimum and maximum amounts for these unobservable data. Moreover, these unobservable data may be linked. The capitalisation rate is determined by the valuation expert based on economic data and benchmarking and takes into account a risk premium. One of the variables that affect the risk premium is related to climate change. The fair value is supported by market evidence and is based on valuations provided by valuation experts with relevant and recognised professional qualifications and recent experience in the geographic areas and property types included in Aedifica’s portfolio. In accordance with legal provisions, properties are revalued four times per year based on valuation reports prepared by the eleven valuation experts appointed by the Company. These valuations are based on: • information provided by the Company such as contractual rents, rental contracts, investment budgets, etc. These data are extracted from the Company’s information system and are thus subject to the Company’s internal control environment; • assumptions and valuation models used by the valuation experts, based on their professional judgment and market knowledge. Reports provided by the valuation experts are reviewed by the Company’s Senior Valuation & Asset Manager, the Group Controller and the Executive Managers. This includes a review of the changes in fair value over the period. When the Executive Managers consider that the valuation reports of the valuation experts are coherent, the valuation report is submitted to the Audit Committee. Following a favourable opinion of the Audit and Risk Committee, these reports are submitted to the Board of Directors. The sensitivity of the fair value measurement to a change of the abovementioned unobservable data is generally as follows (all else being equal): Unobservable data Effect on the fair value in case of decrease of the in case of increase of the unobservable input value unobservable input value ERV / m² negative positive Capitalisation rate positive negative Inflation negative positive Discount rate positive negative Residual maturity (year) negative positive Interrelations between unobservable data are possible, as they are determined in part by market conditions. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 163 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 28 The quantitative information presented below in relation to the determination of the fair value of investment properties based on unobservable data (level 3) is taken from various reports produced by the valuation experts: Type of asset Fair value as at 31/12/2024 Assessment method Unobservable data ¹ Min Max Weighted (x 1,000) average HEALTHCARE REAL ESTATE €6,035,485 Belgium €1,254,966 DCF & Capitalisation ERV / m² 88 212 147 Inflation 2.0% 2.2% 2.1% Discount rate 5.3% 8.0% 6.2% Capitalisation rate 4.4% 8.7% 5.5% Residual maturity (year) 9 27 19 Netherlands €673,240 DCF & Capitalisation ERV / m² 45 293 152 Inflation 2.3% 2.3% 2.3% Discount rate 4.3% 7.8% 5.8% Capitalisation rate 4.1% 9.0% 5.7% Residual maturity (year) 6 24 15 Germany €1,176,156 DCF ERV / m² 42 228 127 Inflation 1.9% 2.0% 2.0% Discount rate 4.6% 7.1% 5.3% Residual maturity (year) 5 29 21 United Kingdom €1,278,891 Capitalisation ERV / m² 91 428 217 £1,058,089 Capitalisation rate 4.5% 11.0% 6.2% Residual maturity (year) 9 35 22 Finland €1,131,710 DCF ERV / m² 130 342 228 Inflation 1.9% 2.3% 1.9% Discount rate 6.4% 8.6% 6.9% Residual maturity (year) 0 29 12 Sweden €93,641 DCF ERV / m² 2,129 3,125 2,763 SEK 1,073,000 Inflation 1.9% 1.9% 1.9% Discount rate 7.2% 8.1% 7.6% Residual maturity (year) 2 16 11 Ireland €424,760 Capitalisation ERV / m² 57 387 239 Capitalisation rate 4.7% 5.5% 5.0% Residual maturity (year) 17 25 23 Spain ² €2,122 DCF ERV / m² 0 0 0 DEVELOPMENT PROJECTS €95,677 DCF & Capitalisation ERV / m² 12 361 167 Inflation 1.9% 2.0% 2.0% Discount rate 4.8% 8.5% 7.0% Capitalisation rate 4.9% 5.3% 5.0% Residual maturity (year) 0 30 13 Total €6,131,162 1. ERV / m²: This ratio, expressed in local currency, is obtained by averaging by country the following calculation per asset: fair value weighted ERV/square metres. The ERV/m² can be converted to Group currency based on the exchange rate of 31 December 2024 (0.82735 EUR/GBP and 11.45817 EUR/SEK). 2. Spain: No unobservable data is disclosed as there are no operational marketable investment properties as at 31 December 2024. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 164 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 29 Type of asset Fair value as at 31/12/2023 Assessment method Unobservable data ¹ Min Max Weighted (x €1,000) average HEALTHCARE REAL ESTATE 5,587,722 Belgium 1,235,918 DCF & Capitalisation ERV / m² 88 292 137 Inflation 2.3% 2.4% 2.3% Discount rate 5.5% 8.0% 6.3% Capitalisation rate 4.5% 8.4% 5.4% Residual maturity (year) 10 28 20 Netherlands 651,180 DCF & Capitalisation ERV / m² 44 358 150 Inflation 2.4% 4.1% 2.7% Discount rate 4.0% 7.8% 6.0% Capitalisation rate 4.4% 9.7% 6.1% Residual maturity (year) 7 24 16 Germany 1,157,294 DCF ERV / m² 39 228 122 Inflation 2.1% 2.1% 2.1% Discount rate 4.0% 7.5% 5.2% Residual maturity (year) 6 29 21 United Kingdom 1,045,800 Capitalisation ERV / m² 91 408 204 Capitalisation rate 4.5% 11.8% 6.1% Residual maturity (year) 10 35 22 Finland 1,027,080 DCF ERV / m² 134 336 224 Inflation 2.0% 2.0% 2.0% Discount rate 6.5% 8.3% 6.9% Residual maturity (year) 0 30 12 Sweden 74,788 DCF ERV / m² 2,089 3,100 2,784 Inflation 2.0% 2.0% 2.0% Discount rate 7.2% 8.1% 7.7% Residual maturity (year) 3 17 12 Ireland 393,084 Capitalisation ERV / m² 47 351 219 Capitalisation rate 4.5% 5.4% 4.9% Residual maturity (year) 18 25 23 Spain ² 2,578 DCF ERV / m² 0 0 0 DEVELOPMENT PROJECTS 168,950 DCF & Capitalisation ERV / m² 6 430 162 Inflation 2.0% 2.1% 1.7% Discount rate 4.4% 8.7% 5.1% Capitalisation rate 3.6% 6.7% 5.2% Residual maturity (year) 10 31 6 Total 5,756,672 1. ERV / m²: This ratio, expressed in local currency, is obtained by averaging by country the following calculation per asset: fair value weighted ERV/square metres. The ERV/m² can be converted to Group currency based on the exchange rate of 31 December 2023 (0.86632 EUR/GBP and 11.14082 EUR/SEK). 2. Spain: No unobservable data is disclosed as there are no operational marketable investment properties as at 31 December 2023. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 165 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 30 Note 22: Other tangible assets (x €1,000) 31/12/2024 31/12/2023 Gross value at beginning of the period 7,707 6,652 Depreciation at beginning of period -5,522 -4,079 Carrying amount at beginning of period 2,184 2,573 Additions 3,889 1,191 Disposals -56 -137 Depreciations to income statement -1,695 -1,518 Depreciations related to acquisitions and disposals 26 74 CARRYING AMOUNT AT END OF PERIOD 4,348 2,184 of which: Gross value (excl. IFRS 16) 2,975 2,790 Right of use assets (in accordance with IFRS 16) 8,565 4,917 Depreciations (excl. IFRS 16) -2,562 -2,319 Depreciations on right of use assets (in accordance with IFRS 16) -4,630 -3,203 Depreciation is recognised in income under the line ‘overheads’ (see Note 7). Note 23: Non-current financial assets and other financial liabilities (x €1,000) 31/12/2024 31/12/2023 Receivables Collateral 253 309 Other non-current receivables from associates 0 24,402 Other non-current receivables 30 30 Assets at fair value through profit or loss Hedging instruments (see Note 32) 53,990 73,924 TOTAL NON-CURRENT FINANCIAL ASSETS 54,273 98,665 Liabilities at fair value through profit or loss Hedging instruments (see Note 32) -9,021 -7,841 Other -6,332 -6,218 Total non-current financial liabilities Hedging instruments (see Note 32) -1,901 -1,919 Non current lease liability (in accordance with IFRS 16) -77,647 -74,965 TOTAL OTHER NON-CURRENT FINANCIAL LIABILITIES -94,901 -90,943 Total current financial liabilities Current lease liability (in accordance with IFRS 16) -3,281 -2,798 TOTAL OTHER CURRENT FINANCIAL LIABILITIES -3,281 -2,798 The collateral at fair value (€253 k; 31 December 2023: €309 k) includes blocked funds in Germany, the Netherlands, the United Kingdom, Finland and Sweden. ‘Other non-current receivables from associates’ corresponds to the receivables from MMCG 2 DEVCO 2 Limited and MMCG 2 DEVCO 3 Limited (subsidiaries accounted for using the equity method). Upon completion of the buildings in 2024, Aedifica UK Ltd acquired full ownership of the completed properties by taking control of the remaining shares in the companies (see Note 16). Assets and liabilities recognised at fair value through profit or loss consist primarily of hedging instruments. However, they hedge interest rate risks. The cash flows generated by all hedges, as well as the changes in fair value taken into income, are presented in Notes 13 and 15. The other liabilities recognised at fair value through profit or loss (€6,332 k; 31 December 2023: €6,218 k) include the put options granted to non-controlling shareholders (see Notes 15 and 42). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 166 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 31 Note 24: Deferred taxes The deferred taxes recognised in the balance sheet arise from the acquisitions of investment properties located outside of Belgium. They generally result from the temporary difference between the buildings’ fair value and the assessed value used for tax purposes. The decrease in deferred tax liabilities is mainly due to the adoption of the REIT regime for UK subsidiaries, partially offset by the increase in the fair value of properties. Changes in deferred taxes are as follows (see also Note 17): (x €1,000) Assets Liabilities CARRYING AMOUNT AS AT 1/01/2023 4,662 -164,117 Originations -1,640 23,857 Reversals 0 1,602 Scope changes 0 0 CARRYING AMOUNT AS AT 31/12/2023 3,023 -138,658 (x €1,000) Assets Liabilities CARRYING AMOUNT AS AT 01/01/2024 3,023 -138,658 Originations -855 5,420 Reversals -1,345 0 Scope changes 0 0 CARRYING AMOUNT AS AT 31/12/2024 823 -133,238 Note 25: Trade receivables (x €1,000) 31/12/2024 31/12/2023 TRADE RECEIVABLES - NET VALUE 19,526 23,290 It is anticipated that the carrying amount of trade receivables will be recovered within twelve months. This carrying amount represents an estimate of the fair value of assets that do not generate interest. The credit risk associated with trade receivables is limited thanks to the diversity of the client base and rental guarantees (€71.4 million) received from tenants to cover their commitments. In the United Kingdom, collateral on the companies is used as a guarantee. The carrying amount on the balance sheet is presented net of the provision for doubtful debts. Thus, the risk of exposure to credit risk is reflected in the carrying amount of receivables recognised on the balance sheet. Trade receivables are analysed as follows: (x €1,000) 31/12/2024 31/12/2023 under 90 days 4,950 3,477 over 90 days 2,135 4,189 Subtotal 7,085 7,666 Not due 14,354 18,012 Write-downs -1,913 -2,388 CARRYING AMOUNT 19,526 23,290 The variation of write-downs is recognised in income under the line ‘write-downs on trade receivables’ (see Note 4). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 167 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 32 Note 26: Tax receivables and other current assets (x €1,000) 31/12/2024 31/12/2023 Tax 8,910 8,505 Other 2,424 879 TOTAL 11,334 9,384 Tax receivables are composed of tax credits. Note 27: Cash and cash equivalents (x €1,000) 31/12/2024 31/12/2023 Short-term deposits 0 0 Cash at bank and in hands 18,451 18.253 TOTAL 18,451 18.253 Note 28: Deferred charges and accrued income (x €1,000) 31/12/2024 31/12/2023 Accrued rental income -1 -60 Deferred property charges 1,228 1.624 Accrued interests and deferred financial charges 10,722 11.933 Deferred charges on future projects 4,985 4.729 Other 0 26 TOTAL 16,934 18.252 Note 29: Equity Aedifica did not carry out any capital increases during the 2024 financial year. The capital has not evolved since the beginning of the financial year: Number of Capital shares (x €1,000) Situation at the beginning of the previous year 39,855,243 1,051,692 Capital increase of 31 May 2023 379,474 10,013 Capital increase of 4 July 2023 7,315,402 193,037 Situation at the end of the previous year 47,550,119 1,254,742 Situation at the end of the year 47,550,119 1,254,742 Capital is presented above before subtracting the costs of raising capital (the capital value presented on the balance sheet, is shown net of these costs, in accordance with IFRS). The table below lists Aedifica’s shareholders holding more than 5% of the voting rights (based on the number of shares held by the shareholders concerned as at 7 October 2024 – see also section 3.4 ‘Shareholding structure’ of the ‘Financial Review’ chapter). As at the closing date of this Annual Report, Aedifica has not received any additional transparency notifications that would change the situation on 7 October 2024. Declarations of transparency and control strings are available on Aedifica’s website. According to Euronext’s definition, the free float is 100%. SHAREHOLDERS Voting rights (in %) BlackRock, Inc. 7.35 Other < 5% 92.65 TOTAL 100.00 The capital increases are disclosed in the ‘Standing Documents’ section of the present Annual Financial Report. All subscribed shares are fully paid-up, with no par value. The shares are registered or dematerialised shares and grant one vote each. All 47,550,119 shares issued as at 31 December 2024 are listed on the regulated markets of Euronext Brussels and Euronext Amsterdam. As at 31 December 2024, Aedifica NV/SA holds 8,067 treasury shares. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 168 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 33 The Board of Directors is authorised to increase the capital in one or more instalments, on the dates and in accordance with the terms and conditions as will be determined by the Board of Directors, by a maximum amount of: • 1 ) 50% of the amount of the capital on the date of the extraordinary general meeting of 14 May 2024, as the case may be, rounded down to the euro cent for capital increases by contribution in cash whereby the possibility is provided for the exercise of the preferential subscription right or the priority allocation right by the shareholders of the Company; • 2 ) 20% of the amount of the capital on the date of the extraordinary general meeting of 14 May 2024, as the case may be, rounded down to the euro cent for capital increases in the framework of the distribution of an optional dividend; • 3 ) 10% of the amount of the capital on the date of the extraordinary general meeting of 14 May 2024, as the case may be, rounded down to the euro cent for a) capital increases by contribution in kind, b) capital increases by contribution in cash without the possibility for the shareholders of the Company to exercise the preferential subscription right or priority allocation right, or c) any other kind of capital increase; provided that the capital within the context of the authorised capital can never be increased by an amount higher than the capital on the date of the extraordinary general meeting that approves the authorisation. This authorisation is granted for a renewable period of two years, calculated from the publication of the minutes of the extraordinary general meeting of 14 May 2024, in the annexes to the Belgian Official Gazette. For each capital increase, the Board of Directors will determine the price, the issue premium (if any) and the terms and conditions of issue of the new securities. The capital increases that are thus decided on by the Board of Directors may be subscribed to in cash, in kind, or by means of a mixed contribution, or by incorporation of reserves, including profits carried forward and issue premiums as well as all equity components under the Company’s statutory IFRS financial statements (drawn up in accordance with the regulations applicable to the regulated real estate companies) which are subject to conversion into capital, with or without the creation of new securities. These capital increases can also be realised through the issue of convertible bonds, subscription rights or bonds repayable in shares or other securities which may give rise to the creation of the same securities. On 31 December 2024, the balance of the authorised capital amounts to: • 1 ) €627,371,130.01 for capital increases by contribution in cash whereby the possibility is provided for the exercise of the preferential subscription right or the priority allocation right by the shareholders of the Company; • 2 ) €250,948,452.00 for capital increases in the framework of the distribution of an optional dividend; • 3 ) €125,474,226.00 for a. capital increases by contribution in kind, b. capital increases by contribution in cash without the possibility for the shareholders of the Company to exercise the preferential right or priority allocation right, or c. any other kind of capital increase; provided that the capital within the context of the authorised capital can never be increased by an amount that exceeds the legal maximum amount of the capital of €1,254,742,260.03, on the dates and in accordance with the terms and conditions as will be determined by the Board of Directors. The Board of Directors has proposed to distribute a dividend of €3.90 gross per share (coupon no. 35), i.e. a total dividend of €185,445 k. Taking into account the Royal Decree of 13 July 2014, on 31 December 2024 the available (statutory) reserves calculated in accordance with Article 7:212 of the Companies and Associations Code amount to €1,251,558 k, after the dividend distribution proposed above (31 December 2023: €1,247,298 k). Detailed calculations are provided in the notes to the attached Abridged Statutory Accounts. Aedifica defines capital in accordance with IAS 1 p134 as the sum of all equity accounts. The equity level is monitored using the consolidated debt-to-assets ratio (calculated in accordance with the provisions of the Royal Decree of 13 July 2014 – see Note 40), which cannot exceed 60% according to the credit agreements in place with the Company’s banks (see Notes 31 & 35). Equity is monitored with a view to the continuity of business activities and the financing of growth. Note 30: Provision Aedifica takes out group insurance for all of its employees and the members of its Executive Committee (Executive Managers). The purpose of these contributions is to provide the following benefits: • payment of a ‘Life’ benefit to the member if alive on the date of retirement; • payment of a ‘Death’ benefit to the member’s beneficiaries in the event of death before retirement; • payment of disability benefits in the event of a non-occupational accident or long-term illness; • exemption from premiums in the same cases. For Belgian employees, it consists of a defined contribution group insurance plan for which there are no personal contributions from the beneficiaries. In accordance with the law of 18 December 2015, Belgian workers benefit from a minimum guaranteed return on the ‘Life’ portion of the premiums. For ‘branch 21’ type insurance policies, the new guaranteed rate applies to new contributions (employer/personal) paid from 1 January 2016, but the old guarantee (3.25% on the employer’s contributions and 3.75% on the worker’s) remains applicable for the minimum reserve built up as at 31 December 2015. As from 2016, the minimum return required by the law on supplementary pensions fell to 1.75%. This may generate a liability in the employer’s accounts. This minimum return obligation is not applicable to the pension plan for the members of the Executive Committee members with self-employed status. The amounts covered by way of long-term benefits granted to members of the Executive Committee are included in the ‘Remuneration Report’ in the present Annual Report. In respect of these pension schemes, Aedifica held outsourced assets of €1.647 k as at 31 December 2024. An actuarial valuation (using the Traditional Unit Credit (TUC) method) provides that the liabilities are calculated on the basis of the actual build up minimum reserves at valuation date projected with the minimum guaranteed rate and discounted at the discount rate as described in the IAS 19 standard. The assets are considered to correspond to the sum of the mathematical reserves per individual and the available portion of the financing fund. This valuation results in a net liability of €15 k as at 31 December 2024. In previous years, an additional defined contribution plan was introduced in Germany, the Netherlands and the United Kingdom. For these plans, the problem of having to recognise a provision does not arise since, according to IAS 19, this is not a ‘defined benefit’ plan. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 169 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 34 Note 31: Borrowings (x €1,000) 31/12/2024 31/12/2023 Non-current financial debts 2,065,194 1,958,750 Credit institutions 1,263,111 1,166,915 Other 802,083 791,835 Current financial debts 448,442 321,549 Credit institutions 134,392 78,949 Other 314,050 242,600 TOTAL 2,513,636 2,280,299 The classification between current and non-current financial debts is based on the maturity dates of the credit lines on which the drawings are made instead of the maturity dates of the drawings. On 31 December 2024, Aedifica had committed credit facilities totalling €2,386 million granted by 19 banks and an institutional investor. • Aedifica can use up to €2,253 million depending on its needs, as long as the debt-to-assets ratio does not exceed 60% and other covenants are met (in line with market practice). Each withdrawal is made in euro for a period of up to 12 months, at a fixed margin set with reference to the Euribor rate prevailing at the time of the withdrawal. €219 million of these credits lines were directly contracted by Hoivatilat Oyj. • Aedifica has contracted a €50 million bilateral fixed-rate facility with a Dutch institutional investor to finance care homes in the Netherlands. • Aedifica also has amortising facilities with fixed interest rates between 0.8% and 5.8% amounting to €39 million and variable interest rates amounting to €44 million, of which €42 million are credits held directly or indirectly by Hoivatilat Oyj. Aedifica NV/SA also has a €500 million treasury notes programme, of which €350 million is available for treasury notes with a duration of less than one year and €150 million is available for treasury notes with a duration of more than one year. ISIN code Nominal amount Maturity Issue date Maturity date Coupon (in € million) (years) (%) BE6310388531 15 10 21/12/2018 21/12/2028 2.176% BE6322837863 40 7 25/06/2020 25/06/2027 1.466% BE6323122802 12 10 15/07/2020 15/07/2030 1.850% BE6325869145 10 7 16/12/2020 16/12/2027 1.274% BE6326201553 10 7 14/01/2021 14/01/2028 1.329% • Under this programme, Aedifica has completed 5 private placements (see table above) amounting to €87 million. These amounts are presented on line ‘Other’ of the ‘Non-current financial debts’. • As at 31 December 2024, the short-term portion of the treasury notes programme (listed under the heading ‘Other’ of ‘Current financial debts’) is used for an amount of €280 million. Hoivatilat Oyj also issues treasury notes in its own name. As at 31 December 2024, the outstanding amount was €34 million (listed under the heading ‘Other’ of ‘Current financial debts’). The entire outstanding amount of the short-term treasury notes is fully backed by the available funds on confirmed long-term credit lines. Moreover, in 2021, Aedifica successfully issued: • a bond (‘USPP’) of £180 million through a private placement with US, UK and Canadian institutional investors. The bonds have maturities of 7 & 12 years with a coupon of 2.58% & 2.79% respectively. • its first benchmark Sustainability Bond (ISIN BE6330288687) for an amount of €500 million with a tenor of 10 years and a coupon of 0.75% per annum. Loans contracted under Aedifica’s Sustainable Finance Framework or linked to sustainability KPIs amount to €1,493 million (47% of committed long-term credit lines), of which €1,058 million is drawn on 31 December 2024, highlighting the Group’s wish to further diversify its sources of financing and to integrate ESG criteria into its financial policy. The average cost of debt including commitment fees stands at 2.0% (31 December 2023: 1.9%) thanks to the interest rate hedges Aedifica had in place. Taking into account the duration of the drawings, the carrying amount of the financial debts with variable interest rate approximates their fair value (€1,622 million). The interest rate hedges are discussed in Note 32. The fair value of the financial debts with fixed interest rate (€892 million) is estimated at €777 million. As at 31 December 2024, the Group did not mortgage or pledge any Belgian, Dutch, British, Irish or Swedish building to its creditors. In Germany and Finland, however, it is common practice for real estate to be secured as part of bank financing. As at 31 December 2024, the ratio between the secured financial debt and the total consolidated assets was 1% and the ratio between the encumbered assets and the total consolidated assets was 4%. Taking these elements into account, the maturity dates of Aedifica’s financial debts as at 31 December 2024 are as follows: Financial debt Committed financing Short-term treasury notes (in € million) 1 Lines Utilisation 31/12/2025 343 121 314 31/12/2026 390 221 - 31/12/2027 887 647 - 31/12/2028 561 435 - 31/12/2029 168 53 - 31/12/2030 167 62 - >31/12/2030 674 665 - Total debt as at 31 December 2024 3,191 2,204 314 1. Amounts in GBP were converted into EUR based on the exchange rate of 31 December 2024 (0.82735 EUR/GBP). As at 31 December 2024, the weighted average maturity of the drawn financial debt is 3.8 years. Available committed financing amounts to €987 million. After deducting the backup for the short-term treasury notes, the available liquidity stands at €673 million. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 170 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 35 Note 32: Hedging instruments Aedifica takes on a large proportion of its financial debts at floating rates and is therefore able, where appropriate, to benefit from low interest rates on the unsecured portion of its borrowings. In order to limit the interest rate risk, Aedifica has put in place hedges that allow for the conversion of floating-rate debt to fixed- rate debt, or to capped-rate debt (‘cash flow hedges’). Furthermore, the acquisition of the healthcare real estate portfolio in the United Kingdom in February 2019 has exposed the Group to foreign exchange rate risk. The foreign exchange rate risk is partly hedged by loans denominated in pound sterling, providing a natural hedge against exposure to assets in the United Kingdom: on the one hand by a private placement of £180 million and on the other hand by bank loans totalling £160 million (see Note 35). Note 32.1: Management of interest rate risk 1.1 Framework All hedges (interest rate swaps or ‘IRS’ and caps) are related to existing or highly probable risks. Aedifica applies hedge accounting to some derivatives initiated before 2017 that meet the criteria to allow hedge accounting. From 2017, in line with market practice, Aedifica chose not to apply hedge accounting to derivatives, even if they meet those strict criteria. The change in the fair value of the financial derivatives has no impact on EPRA Earnings, the main KPI for dividend distribution, and therefore the application of hedge accounting has limited added value. Nevertheless, all derivatives provide economic hedging against interest rate risk, regardless of their accounting method. All hedges are provided in the framework of the hedging policy set out in Note 35. The fair value of these instruments is assessed on the basis of the present value of the estimated expected cash flows based on market data. This fair value is adjusted in accordance with IFRS 13 to reflect the company’s own credit risk (‘debit valuation adjustment’ or ‘DVA’) and the counterparty’s credit risk (‘credit valuation adjustment’ or ‘CVA’). The tables below list the Company’s hedging instruments. INSTRUMENT Notional Beginning Periodicity Duration Hedge Interest Fair Analysis as at amount (months) (years) accounting rate value 31/12/2023 (x 1,000) (yes/no) (in %) (x €1,000) IRS €25,000 02/08/2019 3 8 Yes 0.33 1,750 IRS €50,000 01/01/2021 3 3 No 0.80 12 IRS €50,000 03/01/2022 3 2 No 0.73 12 IRS €25,000 02/05/2019 3 6 Yes 1.10 691 IRS €50,000 01/02/2022 3 2 No 0.34 163 IRS €25,000 01/07/2019 3 6 No 1.69 453 IRS €50,000 01/07/2024 3 4 No 0.08 3,856 IRS €50,000 02/01/2023 3 2 No 2.80 238 IRS €50,000 02/01/2023 3 2 No 2.67 302 IRS €50,000 02/01/2023 3 5 No 2.50 -320 IRS €50,000 01/04/2025 3 3 No 2.50 -713 IRS 1 €2,333 30/09/2019 3 12 No 1.55 76 IRS 2 €8,523 01/04/2011 3 32 Yes 4.89 -1,920 IRS €25,000 03/02/2020 3 10 Yes 0.66 2,166 IRS €15,000 01/07/2019 3 10 No 2.01 230 IRS €8,000 01/07/2019 3 10 No 2.05 106 IRS €12,000 01/07/2019 3 10 No 1.99 194 IRS €50,000 01/02/2022 3 3 No 0.46 1,498 IRS 2 €19,421 31/07/2014 3 29 No 4.39 -3,071 IRS €25,000 03/07/2019 3 10 No 1.04 1,704 IRS €200,000 01/07/2024 3 4 No -0.02 16,260 IRS €50,000 01/01/2023 3 3 No 1.58 1,070 IRS €50,000 01/01/2023 3 5 No 2.69 -695 IRS €50,000 01/11/2019 3 5 Yes 0.78 1,110 IRS €50,000 03/02/2025 3 4 No 0.15 3,500 IRS €100,000 01/07/2024 3 4 No 0.07 7,776 IRS €50,000 01/07/2024 3 4 No 0.12 3,790 IRS €50,000 02/01/2023 3 4 No 1.30 1,621 IRS €50,000 03/04/2023 3 2 No 3.08 3 IRS €50,000 02/01/2025 3 3 No 2.56 -798 IRS €50,000 02/01/2025 3 4 No 0.05 3,730 IRS €50,000 02/01/2025 3 4 No 0.06 3,674 IRS €50,000 02/01/2026 3 3 No 2.44 -549 IRS €50,000 01/01/2023 3 5 No 2.59 -489 IRS €50,000 01/01/2025 3 3 No 2.85 -1,205 IRS £50,000 28/07/2022 3 5 No 2.46 2,039 IRS £60,000 07/07/2022 3 5 No 2.43 2,511 IRS £50,000 28/07/2022 3 5 No 2.29 2,352 IRS €10,000 19/03/2019 6 5 No 0.83 70 IRS €15,000 31/03/2020 1 5 No 0.46 512 CAP €200,000 01/01/2024 3 1 No 0.00 3,690 CAP €100,000 04/01/2021 3 4 No 0.25 3,018 CAP €100,000 01/07/2021 3 3 No 0.00 1,871 CAP €50,000 01/07/2021 3 3 No 0.00 938 CAP €50,000 01/07/2021 3 3 No 0.00 938 TOTAL 3 €2,299,966 64,164 1. Notional amount depreciable over the duration of the swap. 2. Notional amount depreciable over the duration of the swap. Aedifica and the bank may liquidate in advance these contracts every 10 years. 3. Notional amounts in GBP are converted into EUR based on the exchange rate of 31 December 2023 (0.86632 EUR/GBP). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 171 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 36 INSTRUMENT Notional Beginning Periodicity Duration Hedge Interest Fair Analysis as at amount (months) (years) accounting rate value 31/12/2024 (x 1,000) (yes/no) (in %) (x €1,000) IRS €25,000 02/08/2019 3 8 Yes 0.33 1,120 IRS €25,000 02/05/2019 3 6 Yes 1.10 196 IRS €25,000 01/07/2019 3 6 No 1.69 95 IRS €50,000 01/07/2024 3 4 No 0.08 3,427 IRS €50,000 02/01/2023 3 2 No 2.80 1 IRS €50,000 02/01/2023 3 2 No 2.67 1 IRS €50,000 02/01/2023 3 5 No 2.50 -599 IRS €50,000 01/04/2025 3 3 No 2.50 -658 IRS 1 €2,042 30/09/2019 3 12 No 1.55 42 IRS 2 €8,257 01/04/2011 3 32 Yes 4.89 -1,901 IRS €25,000 03/02/2020 3 10 Yes 0.66 1,630 IRS €15,000 01/07/2019 3 10 No 2.01 78 IRS €8,000 01/07/2019 3 10 No 2.05 28 IRS €12,000 01/07/2019 3 10 No 1.99 71 IRS €50,000 01/02/2022 3 3 No 0.46 118 IRS 2 €18,438 31/07/2014 3 29 No 4.39 -3,044 IRS €25,000 03/07/2019 3 10 No 1.04 1,247 IRS €200,000 01/07/2024 3 4 No -0.02 14,455 IRS €50,000 01/01/2023 3 3 No 1.58 317 IRS €50,000 01/01/2023 3 5 No 2.69 -886 IRS €50,000 01/01/2027 3 3 No 2.25 -105 IRS €50,000 03/02/2025 3 4 No 0.15 3,748 IRS €100,000 01/07/2024 3 4 No 0.07 6,912 IRS €50,000 01/07/2024 3 4 No 0.12 3,367 IRS €50,000 02/01/2023 3 4 No 1.30 790 IRS €50,000 02/01/2024 3 3 No 2.53 -479 IRS €50,000 01/04/2027 3 3 No 2.16 51 IRS €50,000 02/01/2025 3 3 No 2.56 -692 IRS €50,000 03/01/2028 3 3 No 2.09 249 IRS €50,000 02/01/2025 3 4 No 0.05 4,004 IRS €50,000 02/01/2025 3 4 No 0.06 3,963 IRS €50,000 02/01/2026 3 3 No 2.44 -512 IRS €50,000 01/01/2023 3 5 No 2.59 -729 IRS €50,000 01/01/2025 3 3 No 2.85 -1,116 IRS £50,000 28/07/2022 3 5 No 2.46 2,400 IRS £60,000 07/07/2022 3 5 No 2.43 2,887 IRS £50,000 28/07/2022 3 5 No 2.29 2,631 IRS €15,000 31/03/2020 1 5 No 0.46 100 CAP €100,000 04/01/2021 3 4 No 0.25 7 TOTAL 3 €1,847,126 43,214 1. Notional amount depreciable over the duration of the swap. 2. Notional amount depreciable over the duration of the swap. Aedifica and the bank may liquidate in advance these contracts every 10 years. 3. Notional amounts in GBP are converted into EUR based on the exchange rate of 31 December 2024 (0.82735 EUR/GBP). The total notional amount of €1,847 million presented in the table above is broken down as follows: • operational and active instruments: €1,247 million, of which €100 million caps; • instruments with forward start: €500 million. The total fair value of the hedging instruments presented in the table above (+€43,214 k) can be broken down as follows: €53,934 k on line I.E. of the asset side of the consolidated balance sheet and €10,720 k on line I.C.a. of the liability side of the consolidated balance sheet. Taking into account the carrying amount of the upfront premiums paid for the caps (€0), the effect of the changes in fair value of interest rate hedging instruments on equity amounts to €43,214 k 1.2 Derivatives for which hedge accounting is applied (x €1,000) 31/12/2024 31/12/2023 Changes in fair value of the derivatives Beginning of the year 4,642 9,574 Changes in the effective portion of the fair value of hedging instruments 1,115 -2,293 (accrued interests) Transfer to the income statement of interests paid on hedging instruments -3,869 -2,459 Transfer to the reserve account regarding revoked designation 0 0 Transfer to the reserve account of the net gain or loss on matured hedges -180 -180 AT YEAR-END 1,708 4,642 The amounts recorded in equity will be transferred to net finance costs in line with the payment of interest on the hedged financial debt, between 1 January 2025 and 31 July 2043. The year-end equity value includes the effective part (as defined in IFRS 9) of the change in fair value (loss of €2,754 k) of the financial instruments corresponding to the derivatives for which hedge accounting may be applied, and the ineffective portion of the 2023 financial year (nil) that was appropriated in 2024 by decision of the Annual General Meeting held in May 2024. These financial instruments are ‘level 2’ derivatives (according to IFRS 13p81). The ineffective part (according to IAS 39) is nil as at 31 December 2024. 1.3 Derivatives for which hedge accounting is not applied The financial result includes a loss of €17,940 k (31 December 2023: a loss of €50,249 k), arising from the change in the fair value of derivatives for which hedge accounting is not applied (in line with IFRS 9, as listed in the aforementioned framework) and the linear amortisation of the fair value of terminated derivatives as of their date of termination, which amounts to a loss of €298 k (31 December 2023: a loss of €300 k) (see Note 15). The latter is recognised on line ‘II. H. Other comprehensive income, net of taxes’ of the Consolidated Statement of Comprehensive Income. These financial instruments are ‘level 2’ derivatives (as defined in IFRS 13p81). The financial result also includes the amortisation of the premiums paid at the time of the subscription to the caps, which amounts to €256 k (31 December 2023: €198 k). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 172 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 37 1.4 Sensitivity analysis The fair value of the hedging instruments is determined by the interest rates on the financial markets. These changes partly explain the change in the fair value of the hedging instruments between 1 January 2024 and 31 December 2024. This resulted in a loss of €18,238 k, recognised in the income statement, and to a loss of €2,456 k, recognised in equity. A change in the interest rate curve would impact the fair value of instruments for which hedge accounting is applied (in accordance with IFRS 9), and recognised in equity (line ‘I.C.d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS’). All else being equal, a positive change of 10 bps of the interest rate curve at the balance sheet date would have a positive impact on equity in the amount of €255 k (€367 k on 31 December 2023). A negative change of 10 bps would have a negative impact in the same range. The impact of a change in the interest rate on the fair value of the instruments for which hedge accounting is not applied cannot be determined as precisely, since options can be embedded within these instruments. The fair value of these options will change in a non- symmetric and non-linear pattern, and is a function of other parameters (e.g. volatility of interest rates). The sensitivity of the ‘mark-to-market’ value of these instruments to an increase of 10 bps of the interest rate is estimated to have a positive impact of €4,264 k (€4,801 k on 31 December 2023) on the income statement. A decrease of 10 bps in the interest rate would have a negative impact of €4,264 k on the income statement (€4,802 k on 31 December 2023). Note 32.2: Management of foreign exchange risk All hedges (forward purchase contracts of foreign currencies) are related to existing or highly probable risks. The hedging instruments are derivatives for which Aedifica will not systematically apply hedge accounting and which provide economic hedging against foreign exchange risk. All hedges are provided in the framework of the hedging policy set out in Note 35. The fair value of these instruments is assessed on the basis of the present value of the estimated cash flows based on market data. These financial instruments are ‘level 2’ derivatives (according to IFRS 13p81). As at 31 December 2024, Aedifica had no hedging contracts in place. During the financial year, cash flows linked to Aedifica’s external debt denominated in pound sterling have partially offset net cash flows resulting from financial income from intra-group loans, other intra-group revenues and capital expenditures in the United Kingdom. Note 33: Trade payables and other currents debts (x €1,000) 31/12/2024 31/12/2023 Trade debts 30,619 39,175 Exit tax 1,400 44 Taxes, social charges and salaries debts Tax 10,662 11,770 Salaries and social charges 6,227 6,163 Other Dividends of previous years 25 25 TOTAL 48,933 57,177 The majority of trade payables and other current debts (recognised as ‘financial liabilities at amortised cost’ under IFRS 9, excluding taxes covered by IAS 12 and remuneration and contributions to social security plans covered by IAS 19) should be settled within 12 months. The carrying amount constitutes an approximation of their fair value. Note 34: Accrued charges and deferred income (x €1,000) 31/12/2024 31/12/2023 Property income received in advance 10,059 12,945 Financial charges accrued 10,705 11,863 Other accrued charges 850 976 TOTAL 21,614 25,784 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 173 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 38 Note 35: Financial risk management Aedifica’s financial policy aims to ensure permanent access to financing, monitor the debt-to-assets-ratio and monitor and minimise the interest rate and exchange rate risks. However, the Group remains subject to financing risks; a change in interest rates or exchange rates could have a negative impact on the Group’s assets, operations, financial position and prospects. Note 35.1: Debt structure Aedifica’s debt-to-assets ratio (as defined in the Royal Decree of 13 July 2014 on Belgian RRECs) is detailed on page 84 of this Annual Report. As at 31 December 2024, it amounts to 39.57% at the statutory level and to 41.34% at the consolidated level. This section also discloses the maximum ratio permitted before the Company reaches the maximum debt-to-assets ratio permitted for Belgian REITs (65% of total assets) or arising due to bank covenants (60% of total assets). The debt-to-assets ratio is monitored on a quarterly basis and its evolution is estimated during the approval process of each major investment project. When the debt- to-assets threshold of 50% is exceeded, a financial plan with an implementation schedule must be elaborated, describing the measures that will be taken to prevent the consolidated debt-to-assets ratio from exceeding the maximum permissible threshold of 65% (Article 24 of the Royal Decree of 13 July 2014). However, the Company intends to maintain an appropriate long-term debt-to-assets ratio of approx. 45%. Aedifica’s financial model relies on a structural indebtedness. As a result, cash balances are usually low, amounting to €18.5 million as at 31 December 2024. As at 31 December 2024, the Group did not mortgage or pledge any Belgian, Dutch, British, Irish or Swedish buildings to its creditors. In Germany and Finland, however, it is common practice for real estate to be secured as part of bank financing. As at 31 December 2024, the ratio between the secured financial debt and the total consolidated assets was 1% and the ratio between the encumbered assets and the total consolidated assets was 4%. It is possible that in the context of supplementary financing, additional mortgages will be granted. Note 35.2: Liquidity risk Aedifica has a strong and stable relationship with its financial institutions, which form a diversified pool consisting of an annually increasing number of European institutions. Details of Aedifica’s credit facilities are disclosed in Note 31. As at 31 December 2024, the Group has drawn €2,204 million (31 December 2023: €2,042 million) from the total amount of €3,191 million of confirmed bank financing, medium-term notes and bonds. The remaining headroom is sufficient to cover the Group’s short-term financial needs as well as the existing development projects until the end of the 2025 financial year. The 2025 financial plan includes limited assumptions regarding acquisitions and payments in the context of the committed development pipeline amounting to approx. €250 million. Aedifica aims to further diversify its financing sources. In this context, Aedifica launched a programme in 2018 to issue treasury notes with varying maturities. The short-term treasury notes are fully hedged by the available funds on confirmed long-term credit lines. As at 31 December 2024, medium-term notes amount to €87 million (31 December 2023: €87 million). In addition, in 2021, Aedifica successfully issued a bond (‘USPP’) of £180 million through a private placement with US, UK and Canadian institutional investors and its first benchmark Sustainability Bond for an amount of €500 million. Given the regulatory status of Belgian REITs/RRECs, and the type of property in which Aedifica invests, the risk of non-renewal of mature credit facilities is remote even in the context of a credit crunch, except in the event of unforeseen and extreme circumstances. However, there is a risk that credit margins may increase after the maturity date of these credit lines. Aedifica may be exposed to a liquidity risk which could arise due to a lack of cash flow in the event of early termination of the credit facilities. Should the Company fail to comply with the provisions (covenants), which were included in the credit facility arrangements to take into account key financial ratios, the facilities might be cancelled, renegotiated, or forced into repayment. The covenants in place are in line with market practice and notably require that the debt-to-assets ratio (as defined by the Royal Decree of 13 July 2014) does not exceed 60%. The Interest Cover Ratio (ICR), calculated based on the definition set out in the prospectus of Aedifica’s Sustainability Bond (‘Operating result before result on the portfolio’ (lines I to XV of the consolidated income statement) divided by ‘Net interest charges’ (line XXI)), should be at least equal to 2.0x. As at 31 December 2024, the ratio is 6.2x (31 December 2023: 5.9x). Moreover, there is a risk of early termination in the event of a change of control, in case of non-compliance with the Company’s obligations, and, more generally speaking, in the event of default as defined in these arrangements. A default situation related to one contract can lead to a default situation related to all contracts (‘cross-default clauses’). Based on the information available to date, and the prospects for the foreseeable future, there is no indication of a possible early termination of one or more of the existing credit facilities. However, this risk cannot be ignored completely. Moreover, Aedifica does not itself retain control over certain commitments which could lead to the early termination of credit facilities, such as in the event of a change of control. As at 31 December 2024, the undiscounted future cash flows related to the credit facilities include €435 million maturing within 1 year, €1,356 million maturing within 1 to 5 years, and €727 million maturing in more than five years. The credit facilities also give rise to an interest expense of €27 million that is due within one year (31 December 2023: €308 million capital and €28 million interest due within 1 year). The undiscounted contractual future cash flows related to hedging instruments are analysed in the tables below. The future undiscounted cash flows are based on the fixed rate of the derivatives and only take into account the floating rate in case the fixing is already known on 31 December 2024. As at 31/12/2024 Due within Due between one Due after more TOTAL (x €1,000) the year to five years than five years Derivatives for which hedge accounting -151 -2,241 -2,606 -4,998 is applied Derivatives for which hedge accounting -1,542 -46,913 -6,387 -54,842 is not applied As at 31/12/2023 Due within Due between one Due after more TOTAL (x €1,000) the year to five years than five years Derivatives for which hedge accounting 92 -2,636 -3,074 -5,618 is applied Derivatives for which hedge accounting 3,675 -50,826 -6,010 -53,161 is not applied AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 174 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 39 Note 35.3: Interest rate risk A substantial part of Aedifica’s financial debts are floating-rate borrowings. This allows Aedifica to benefit from low interest rates on the non-hedged part of its borrowings when the interest rate yield curve is not inverted. To mitigate the risk of increasing interest rates, Aedifica follows a policy aimed at securing for a period of several years the interest rates related to at least 60% of its current or highly probable indebtedness. It should be noted that the Company assumed certain fixed-rate debts which came from pre-existing investment credits tied to real estate companies which were acquired or absorbed by the Company. The USPP and the benchmark bond issue have rebalanced Aedifica’s mix of fixed and floating rate debt. The floating rate bank loans denominated in pound sterling issued in July 2022 have been fully swapped to fixed rate. On 31 December 2024, the financial debt is hedged against interest rate risk for 89.0%, i.e. the ratio of the sum of the fixed rate debt and the notional amount of derivatives divided by the total financial debt. The hedging’s weighted average maturity is 4.4 years. This policy is supported by the fact that an increase in nominal interest rates, when not coupled with a simultaneous increase in inflation, implies an increase in real interest rates that cannot be offset by increasing rental incomes through indexation alone. Moreover, in case of accelerating inflation, there is a delay between the timing of the increase of the nominal interest rates and the timing of the indexation of rental income. For example: assuming that the structure and level of financial debts remain unchanged, and assuming that no hedges have been entered into, simulations show that a 100 bps positive deviation (increase) in the 2025 interest rates over the forecast rates would lead to an approx. additional €26 million interest expense for the year ending 31 December 2025. Taking into account the hedging instruments at present, the increase in interest expense would amount to just €1.5 million. In order to manage the interest rate risk, Aedifica has put in place hedges (interest rate swaps and caps). All hedges are entered into with leading banks and relate to existing or highly probable risks. An analysis of the Group’s hedges is provided in the Financial Report and in the Consolidated Financial Statements (Note 32). The hedges can be entered into for long periods; however, hedge agreements include provisions (in line with market practice) that could lead the issuing banks to terminate the hedges early or initiate margin calls (in cash for example) in their own favour in certain circumstances. Changes in the interest rate curve have a limited impact on the future interest expense, since at least 60% of the financial debts are hedged by IRS or caps. Each change in the interest rate curve has an impact on the fair value of hedging instruments against income statement and/or equity (balance line ‘I.C.d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS’). A sensitivity analysis is provided in Note 32. Certain external developments could cause an increase of the credit spreads at the Group’s expense, in accordance with the ‘increased cost’ clauses included in the banking agreements. Such clauses allow the lending banks to increase the cost price of the granted credit, among other things, in case these banks are subjected by their supervisory authority to more severe solvability, liquidity or other capital requirements. However, it should be noted that during the crises which have hit the financial markets, no bank has ever invoked one of these clauses against the Group. However, this cannot be seen as a safeguard for the future. A few facilities provide for an increase in the credit spread if the debt-to-assets ratio exceeds 50%. All sustainability-linked facilities provide for a small margin adjustment depending on the annual targets of the sustainability-linked KPIs. As a result, this adjustment can be positive, negative or nil. Note 35.4: Banking counterparty risk Signing a credit facility or hedging instrument with a bank generates a counterparty risk in the event of counterparty default. In order to mitigate this risk, Aedifica trades with several leading national and European banks to diversify its funding and hedging sources, while remaining cautious about the balance between cost and quality of the services provided, it being understood that the counterparty risk cannot be excluded and the failure by one or more of Aedifica’s financing or hedging counterparties could have a negative impact on the Group’s assets, operations, financial position and prospects. In line with market practice, the agreements signed with banks include market shock clauses and material adverse change clauses (‘MAC’ clauses) which could lead to, in extreme circumstances, additional costs for the Group or possibly the early termination of the credit facility. However, it should be noted that during the crises which have hit the financial markets, no bank has ever invoked one of these clauses towards the Group. Note 35.5: Exchange rate risk Aedifica generates its revenue and costs in the euro area and also in British pounds (since the acquisition of the UK portfolio in February 2019) and Swedish krona (since the acquisition of Hoivatilat in January 2021, through the Swedish subsidiary). Future fluctuations in the exchange rate may affect the value of Aedifica’s investment properties, rental income and the net result, all of which are expressed in euros. A 10% change of the GBP/EUR exchange rate has an impact of approx. €129.8 million on the fair value of the Group’s investment properties located in the United Kingdom, approx. €7.5 million on the Group’s annual rental income and approx. €11.1 million on the Group’s net result. A 10% change of the SEK/EUR exchange rate has an impact of approx. €9.4 million on the fair value of the Group’s investment properties located in Sweden, approx. €0.5 million on the Group’s annual rental income and approx. €0.6 million on the Group’s net result. Aedifica partly financed its UK portfolio by a bond issue in British pounds. The £180 million bond was issued in early 2021 through a private placement (£170 million with a maturity of 7 years and £10 million with a maturity of 12 years). In addition, £160 million of bank loans were drawn in July 2022. These bank loans, together with the aforementioned bond, form a partial natural hedge against exchange rate fluctuations on the balance sheet and limits the impact on the debt-to-assets ratio. The Company applies an active hedging policy covering the GBP/EUR exchange risk impacting Aedifica’s results, as deemed necessary, which takes into account, among other things, the volatility of the exchange rate observed from time to time and the cost of hedging (which itself is dependent on various elements). However, an active hedging policy cannot completely eliminate the currency exchange risk and the Company remains exposed to this risk. A change in the exchange rate that would not be covered by the Company’s hedging policy may expose the Company to lower rental income and increased costs and can have a negative impact on the Company’s assets, operations, financial position and prospects. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 175 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 40 Note 36: Contingencies and commitments The Board of Directors values commitments and contingencies at the nominal value of the legal obligation as stated in the contract; in the absence of a nominal value or in exceptional cases, these values are disclosed for information purposes. Note 36.1: Commitments Name Country Type Progress Budget 1 (in € million) Am Parnassturm DE Renovation In progress (forward funding) 5 Bavaria Senioren- und DE Renovation In progress (forward funding) 1 Pflegeheim Finland – ‘childcare centres’ FI Construction In progress (forward funding) 2 Finland – ‘elderly care homes’ FI Construction In progress (forward funding) 20 Finland – ‘other’ FI Construction In progress (forward funding) 26 Seniorenquartier DE Construction In progress (forward funding) 29 Gummersbach Seniorenzentrum Berghof DE Renovation In progress (forward funding) 2 Sligo Finisklin Road IE Construction In progress (forward funding) 16 St. Joseph’s Convent 2 UK Renovation In progress (forward funding) 3 St Mary’s Lincoln 2 UK Construction In progress (forward funding) 17 The Mount UK Construction In progress (forward funding) 17 Tomares Miró ES Construction In progress (forward funding) 12 Zamora Av. de Valladolid ES Construction In progress (forward funding) 12 TOTAL 160 Earn-outs For some acquisition deals, a portion of the acquisition price has been set based on future contingent events, such as the payment of an earn-out, upon completion of a care residence within the limits of the maximum budget committed by Aedifica. Note 36.2: Contingent liabilities 2.1 Credit facilities Under its credit agreements, Aedifica has granted securities on certain real estate assets within the legally authorised limits. In total, this concerns approx. 1% of total assets. 2.2 Acquisition of shares in property companies, mergers and de-mergers Aedifica benefits from warranties given by the sellers of shares in acquired property companies, such as integrity of the property, tax warranties, potential contingent consideration, etc. as contractually provided. Note 36.3: Contingent assets 3.1 Securities received on rental agreements Aedifica benefits from rental guarantees (in line with market practice and applicable regulations) in the form of bank guarantees, restricted bank deposits or guarantor backings that typically amount to 3 to 6 months of rental income. 3.2 Securities received following acquisitions In case of acquisitions, contributions in kind, mergers and de-mergers, Aedifica benefits from the declarations and securities in line with market practices. Note 36.4: Other 4.1 Sundry options • Long leases on healthcare sites: in some cases, Aedifica has granted preferential rights, renewal rights or purchase options to the lessees/tenants. Aedifica also benefits from a number of preferential rights granted by rest homes lessees/tenants. • Sale or purchase options (related to some development projects): in some cases, Aedifica has granted options to third parties, and/or benefits from options allowing it to sell buildings (e.g. when it appears that pieces of buildings will not be used for the development projects). 1. The acquisition values mentioned below respect the requirements laid down in Article 49 § 1 of the Belgian Act of 12 May 2014 on Regulated Real Estate Companies (at the time of the signing of the agreements which generated the commitment). 2. This project has already been completed after 31 December 2024 (see Note 38). AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 176 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 41 Note 37: Acquisitions & disposals of investment properties The main acquisitions of investment properties of 2024 – which are detailed in section 1.1 of the ‘Financial review’ chapter – are the following: ACQUISITIONS Properties Acquisition Acquisition method valuation at date 2 fair value1 (in € million) Belgium Résidence le Douaire 14 27/06/2024 Acquisition of a building Franki 29 19/12/2024 Acquisition of a building Netherlands HGH Lelystad 6 02/02/2024 Acquisition of remaining stake of 50% in a portfolio of 6 care residences (AK JV) Zorghuis Hengelo 2 02/02/2024 Acquisition of remaining stake of 50% in a portfolio of 6 care residences (AK JV) Villa Horst en Berg 5 02/02/2024 Acquisition of remaining stake of 50% in a portfolio of 6 care residences (AK JV) Villa den Haen 5 02/02/2024 Acquisition of remaining stake of 50% in a portfolio of 6 care residences (AK JV) Villa Florian 4 02/02/2024 Acquisition of remaining stake of 50% in a portfolio of 6 care residences (AK JV) Het Gouden Hart Almere 8 02/02/2024 Acquisition of remaining stake of 50% in a portfolio of 6 care residences (AK JV) United Kingdom Dawlish 17 15/02/2024 Acquisition of remaining stake of 75% of the entity Rosewood House 19 27/03/2024 Acquisition of a building Biddenham St James 16 05/04/2024 Acquisition of remaining stake of 75% of the entity Spaldrick House 12 08/08/2024 Acquisition of a building Furze Field Manor 20 06/09/2024 Acquisition of a building Cooperfield Court 19 06/09/2024 Acquisition of a building Rownhams Manor 20 06/09/2024 Acquisition of a building Somer Valley House 20 06/09/2024 Acquisition of a building Finland Kerava Palopellonkatu 2 06/09/2024 Acquisition of a building Espoo Finnoon- 1 06/09/2024 Acquisition of a plot of land kartanonkatu Tuusula Lillynkuja 8 18/09/2024 Acquisition of a building Ireland Altadore 1 19/12/2024 Acquisition of a building TOTAL 229 The main disposals of the financial year are the following: DISPOSALS Date Selling price (€ million) Belgium 18.7 Seniorenhof 29/04/2024 Les Jardins de la Mémoire 3 05/07/2024 Résidence Exclusiv 04/09/2024 Germany 18.9 Park Residenz 4 15/11/2024 Am Schäfersee 02/12/2024 Netherlands 33.5 Natatorium (plot of land) 31/03/2024 Holland 15/07/2024 Molenenk 15/07/2024 Villa Walgaerde 15/07/2024 United Kingdom 26.1 Oak Lodge 02/02/2024 Cherry Trees 11/06/2024 Edingley Lodge 06/08/2024 Blenheim 05/09/2024 St. Joseph's flats 4 19/12/2024 Sweden 0.4 Marmormjölet 9 (plot of land) 12/03/2024 TOTAL 97.6 1. In order to determine the number of shares issued, the exchange ratio and/or the value of the acquired shares. 2. And consolidation date in the financial statements. 3. The existing sublease remains in place. The tenant redeemed the equivalent of future rent payments by a one-off lump-sum payment. 4. This divestment will be completed in the first quarter of 2025, after which Aedifica will receive the selling price. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 177 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 42 Note 38: Post-closing events The table below lists all post-balance sheet events (see also section 1.2 ‘of the ‘Financial review’ chapter) up to and including 14 March 2025, the closing date of this report. Name Date Transaction Country Location Oulu Satamatie 34 1 02/01/2025 Completion of the remaining part of FI Oulu the service community, following a partial completion on 31 December 2024 (see page 74) Oulu Kihokkitie 17/01/2025 Announcement of a new development FI Oulu project St Mary’s Lincoln 22/01/2025 Completion of a development project UK Lincoln St. Joseph’s Convent 31/01/2025 Completion of a renovation & UK St. Helier extension project Swedish ‘LSS’ portfolio 14/02/2025 Disposal of 22 small-scale residential SE Various care centres (‘LSS’) locations Helsinki Radiokatu 26/02/2025 Announcement of a new development Fi Helsinki project Swedish education 28/02/2025 Agreement signed for the disposal of SE Various portfolio 6 (pre-)schools locations Huize Ter Beegden 06/03/2025 Disposal of a care residence NL Beegden Martha Flora Hoorn 06/03/2025 Disposal of a care residence NL Hoorn 1. Initially announced as ‘Oulu Siilotie K21’. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 178 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 43 Note 39: List of subsidiaries, associates and joint ventures The table below presents a full list of the companies covered by Articles 3:104 and 3:156 of the Royal Decree of 29 April 2019 pertaining to the execution of the Belgian Companies and Associations Code. As from the 2021 financial year, the Dutch subsidiaries of Aedifica NV will make use of the exemption provided for in Article 2:403 of the Dutch Civil Code. Consequently, the Dutch companies are exempted from filing individual financial statements with the trade register in the Netherlands NAME Country Category Register of Capital held corporations (in %) Aedifica Invest NV Belgium¹ Subsidiary 0879.109.317 100 Immobe NV Belgium Associate 0697.566.095 25 ¹² AED GVBF 1 NV Belgium Subsidiary 1003.556.060 100 AED GVBF 2 NV Belgium Subsidiary 1003.556.654 100 AED GVBF 3 NV Belgium Subsidiary 1003.557.347 100 AED GVBF 4 NV Belgium Subsidiary 1003.557.644 100 AED GVBF 5 NV Belgium Subsidiary 1003.552.201 100 AED GVBF 6 NV Belgium Subsidiary 1003.553.090 100 AED GVBF 7 NV Belgium Subsidiary 1003.553.684 100 AED GVBF 8 NV Belgium Subsidiary 1003.554.377 100 AED GVBF 9 NV Belgium Subsidiary 1003.554.674 100 AED GVBF 10 NV Belgium Subsidiary 1003.554.971 100 AED GVBF 11 NV Belgium Subsidiary 1003.555.169 100 Le Douaire Invest BV Belgium Subsidiary 0419.225.882 100 RF-Invest NV Belgium Subsidiary 0833.501.006 100 Aedifica Residenzen 1 GmbH&Co. KG Germany² Subsidiary HRA52370 94 ¹³ Aedifica Residenzen 2 GmbH&Co. KG Germany Subsidiary HRA53405 94 ¹³ Aedifica Residenzen 3 GmbH Germany Subsidiary HRB118227 94 ¹³ Aedifica Residenzen 4 GmbH Germany Subsidiary HRB121918 94 ¹³ Aedifica Residenzen 5 GmbH Germany Subsidiary HRB124454 94 ¹³ Aedifica Residenzen 6 GmbH Germany Subsidiary HRB124095 94 ¹³ Aedifica Residenzen Nord GmbH&Co. KG Germany Subsidiary HRA52371 94 ¹³ Aedifica Residenzen West GmbH Germany Subsidiary HRB117957 94 ¹³ Aedifica Verwaltungs GmbH Germany Subsidiary HRB111389 100 Aedifica Asset Management GmbH Germany Subsidiary HRB100562 100 Aedifica Luxemburg I SCS Luxembourg³ Subsidiary B128048 94 ¹³ Aedifica Luxemburg II SCS Luxembourg Subsidiary B139725 94 ¹³ Aedifica Luxemburg III SCS Luxembourg Subsidiary B143704 94 ¹³ Aedifica Luxemburg IV SCS Luxembourg Subsidiary B117441 94 ¹³ Aedifica Luxemburg V SCS Luxembourg Subsidiary B117445 94 ¹³ Aedifica Luxemburg VI SCS Luxembourg Subsidiary B132154 94 ¹³ Aedifica Luxemburg VII SCS Luxembourg Subsidiary B117438 94 ¹³ Aedifica Luxemburg VIII SCS Luxembourg Subsidiary B117437 94 ¹³ Aedifica Nederland BV Netherlands⁴ Subsidiary 65422082 100 Aedifica Nederland 2 BV Netherlands Subsidiary 75102099 100 Aedifica Nederland Services BV Netherlands Subsidiary 75667800 100 Aedifica Nederland 3 BV Netherlands Subsidiary 77636309 100 Aedifica Nederland 4 BV Netherlands Subsidiary 81056664 100 Aedifica Nederland Joint Venture BV Netherlands Subsidiary 80885551 100 Aedifica Sonneborgh Real Estate BV Netherlands Subsidiary 84354267 75 ¹⁵ NAME Country Category Register of Capital held corporations (in %) Aedifica Sonneborgh Ontwikkeling BV Netherlands Associate 64278859 50 ¹⁴ Patient Properties (Eltandia) Ltd Jersey5 Subsidiary 123682 100 Patient Properties (Windmill) Ltd Jersey Subsidiary 123699 100 LV Holdings Ltd Jersey Subsidiary 103669 100 LV Charrieres Ltd Jersey Subsidiary 122808 100 LV St. Josephs Ltd Jersey Subsidiary 9244 100 AED UK Holdings Ltd UK⁶ Subsidiary 15426625 100 Aedifica UK Ltd UK Subsidiary 12351073 100 Aedifica Finance 1 Ltd UK Subsidiary 12352308 100 Aedifica Finance 2 Ltd UK Subsidiary 12352800 100 Maple Court Nursing Home Ltd UK Subsidiary 07295828 100 Quercus Homes 2018 Ltd UK Subsidiary 11278772 100 Sapphire Properties (2016) Ltd UK Subsidiary 09461514 100 Aedifica UK (Ampthill) Ltd UK Subsidiary 11159774 100 Aedifica UK (Hailsham) Ltd UK Subsidiary 11159930 100 Marches Care Holdings Ltd UK Subsidiary 7097091 100 Priesty Fields Developments Ltd UK Subsidiary 10806474 100 Aedifica UK Management Ltd UK Subsidiary 4797971 100 Aedifica UK (Marston) Ltd UK Subsidiary 13816311 100 Aedifica UK (Hessle) Ltd UK Subsidiary 10674329 100 Aedifica UK (Lincoln) Ltd UK Subsidiary 13449716 100 Aedifica UK (Dawlish) Ltd UK Subsidiary 13483857 100 Aedifica UK (Biddenham) Ltd UK Subsidiary 13483907 100 Aedifica UK (Whitechapel) Ltd UK Subsidiary 11465472 100 Aedifica IM (Port Erin) Ltd Isle of Man⁷ Subsidiary 013517v 100 Aureit Holding Oy Finland⁸ Subsidiary 3092783-5 100 Hoivatilat Oyj Finland Subsidiary 2241238-0 100 Kiinteistö Oy Tampereen Routakatu Finland Subsidiary 3192647-1 100 Koy Äänekosken Ääneniementie Finland Subsidiary 3264862-9 100 Koy Äänekosken Likolahdenkatu Finland Subsidiary 2875205-2 100 Koy Espoon Fallåkerinrinne Finland Subsidiary 2620688-3 100 Koy Espoon Finnoonkartanonkatu Finland Subsidiary 2932623-1 100 Koy Espoon Hirvisuontie Finland Subsidiary 2755334-2 100 Koy Espoon Kurttilantie Finland Subsidiary 3134900-2 100 Koy Espoon Kuurinkallio Finland Subsidiary 3201659-2 100 Koy Espoon Matinkartanontie Finland Subsidiary 3117665-8 100 Koy Espoon Meriviitantie Finland Subsidiary 2720369‐2 100 Koy Espoon Oppilaantie Finland Subsidiary 2787263‐4 100 Koy Espoon Palstalaisentie 4 Finland Subsidiary 3309285-3 100 Koy Espoon Rajamännynahde Finland Subsidiary 3194972-9 100 Koy Espoon Tikasmäentie Finland Subsidiary 2669018-5 100 Koy Espoon Vuoripirtintie Finland Subsidiary 2748087-6 100 Koy Euran Käräjämäentie Finland Subsidiary 2842931‐9 100 Koy Hakalahden Majakka Finland Subsidiary 2241238-0 100 Koy Hämeenlinna Kampuskaarre Finland Subsidiary 3192647-1 100 Koy Hämeenlinnan Jukolanraitti Finland Subsidiary 3264862-9 100 Koy Hämeenlinnan Ruununmyllyntie Finland Subsidiary 3267462-4 100 Koy Hämeenlinnan Vanha Alikartanontie Finland Subsidiary 2669024‐9 100 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 179 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 44 NAME Country Category Register of Capital held corporations (in %) Koy Haminan Lepikönranta Finland Subsidiary 2988685‐3 100 Koy Heinolan Lähteentie Finland Subsidiary 2752188‐5 100 Koy Helsingin Ensi kodin tie 4 Finland Subsidiary 3220641-7 100 Koy Helsingin Kansantie Finland Subsidiary 3214270-8 100 Koy Helsingin Käräjätuvantie Finland Subsidiary 3287010-7 100 Koy Helsingin Krämertintie Finland Subsidiary 3323987-8 100 Koy Helsingin Kutomokuja Finland Subsidiary 3287009-4 100 Koy Helsingin Lähdepolku Finland Subsidiary 3279404-4 100 Koy Helsingin Landbontie Finland Subsidiary 3270229-3 100 Koy Helsingin Pakarituvantie Finland Subsidiary 3131782-8 100 Koy Helsingin Radiokatu Finland Subsidiary 3270230-6 100 Koy Helsingin Työnjohtajankadun Seppä3 Finland Subsidiary 3009977-7 100 Koy Hollolan Kulmalantie 2 Finland Subsidiary 3354537-3 100 Koy Hollolan Sarkatie Finland Subsidiary 2749865‐4 100 Koy Iisalmen Eteläinen Puistoraitti Finland Subsidiary 2840090‐3 100 Koy Iisalmen Kangaslammintie Finland Subsidiary 2826102‐6 100 Koy Iisalmen Petter Kumpulaisentie Finland Subsidiary 2882785‐1 100 Koy Iisalmen Satamakatu Finland Subsidiary 3005776-1 100 Koy Iisalmen Vemmelkuja Finland Subsidiary 2917923‐5 100 Koy Janakkalan Kekanahontie Finland Subsidiary 2911674‐4 100 Koy Järvenpään Uudenmaantie Finland Subsidiary 3279405-2 100 Koy Järvenpään Yliopettajankatu Finland Subsidiary 2774063-1 100 Koy Jyväskylän Ailakinkatu Finland Subsidiary 2932895‐8 100 Koy Jyväskylän Haperontie Finland Subsidiary 2763296‐4 100 Koy Jyväskylän Harjutie Finland Subsidiary 3172893-4 100 Koy Jyväskylän Haukankaari Finland Subsidiary 3174128-2 100 Koy Jyväskylän Lahjaharjuntie Finland Subsidiary 3207143-6 100 Koy Jyväskylän Mannisenmäentie Finland Subsidiary 2816983‐6 100 Koy Jyväskylän Martikaisentie Finland Subsidiary 2575556-5 100 Koy Jyväskylän Palstatie Finland Subsidiary 2923254‐2 100 Koy Jyväskylän Sulkulantie Finland Subsidiary 2850306-4 100 Koy Jyväskylän Väliharjuntie Finland Subsidiary 2639227‐6 100 Koy Jyväskylän Vävypojanpolku Finland Subsidiary 2960547‐6 100 Koy Kaarinan Nurminiitynkatu Finland Subsidiary 2838030‐8 100 Koy Kajaanin Erätie Finland Subsidiary 2749663‐2 100 Koy Kajaanin Hoikankatu Finland Subsidiary 2951667‐6 100 Koy Kajaanin Menninkäisentie Finland Subsidiary 2681416‐8 100 Koy Kajaanin Uitontie Finland Subsidiary 3164208-1 100 Koy Kangasalan Hilmanhovi Finland Subsidiary 2262908‐8 100 Koy Kangasalan Mäntyveräjäntie Finland Subsidiary 2688361‐4 100 Koy Kangasalan Rekiäläntie Finland Subsidiary 2940754-1 100 Koy Kaskisten Bladintie Finland Subsidiary 2224949-9 100 Koy Kempeleen Ihmemaantie Finland Subsidiary 3112115-5 100 Koy Keravan Lehmuskatu Finland Subsidiary 3256470-8 100 Koy Keravan Männiköntie Finland Subsidiary 2774061‐5 100 Koy Keravan Palopellonkatu 6 B Finland Subsidiary 2999369-1 100 Koy Keravan Pianosoittajankatu Finland Subsidiary 3368773-4 100 Koy Keuruun Tehtaantie Finland Subsidiary 2877302‐1 100 NAME Country Category Register of Capital held corporations (in %) Koy Kirkkonummen Kotitontunkuja Finland Subsidiary 2692080‐9 100 Koy Kokkola Kruunupyyntie Finland Subsidiary 3349210-1 100 Koy Kokkolan Ankkurikuja Finland Subsidiary 2955766‐2 100 Koy Kokkolan Kaarlelankatu 68 Finland Subsidiary 2668743-7 100 Koy Kokkolan Vanha Ouluntie Finland Subsidiary 2771913‐8 100 Koy Kotkan Metsäkulmankatu 21 Finland Subsidiary 2225111-8 100 Koy Kotkan Särmääjänkatu 6 Finland Subsidiary 3169793-9 100 Koy Kouvolan Kaartokuja Finland Subsidiary 2697590‐6 100 Koy Kouvolan Rannikkotie Finland Subsidiary 2941695-8 100 Koy Kouvolan Ruskeasuonkatu Finland Subsidiary 2955751-5 100 Koy Kouvolan Vainiolankuja Finland Subsidiary 3134903-7 100 Koy Kouvolan Vinttikaivontie Finland Subsidiary 2543325‐9 100 Koy Kuopion Amerikanraitti 10 Finland Subsidiary 2837113‐7 100 Koy Kuopion Männistönkatu Finland Subsidiary 3127190-3 100 Koy Kuopion Opistokuja 3 Finland Subsidiary 3176660-7 100 Koy Kuopion Pirtinkaari Finland Subsidiary 2873993-1 100 Koy Kuopion Portti A2 Finland Subsidiary 2874104-6 100 Koy Kuopion Rantaraitti Finland Subsidiary 2770280‐3 100 Koy Kuopion Sipulikatu Finland Subsidiary 2509836‐6 100 Koy Kuopion Torpankatu Finland Subsidiary 3338477-6 100 Koy Lahden Jahtikatu Finland Subsidiary 2861249‐8 100 Koy Lahden Kurenniityntie Finland Subsidiary 3008794-4 100 Koy Lahden Makarantie Finland Subsidiary 2988683-7 100 Koy Lahden Piisamikatu Finland Subsidiary 2861251‐9 100 Koy Lahden Vallesmanninkatu A Finland Subsidiary 2675831‐1 100 Koy Lahden Vallesmanninkatu B Finland Subsidiary 2675827‐4 100 Koy Laihian Jarrumiehentie Finland Subsidiary 2798400‐3 100 Koy Lappeenrannan Orioninkatu Finland Subsidiary 2877591‐6 100 Koy Laukaan Hytösenkuja Finland Subsidiary 2681456‐3 100 Koy Laukaan Peurungantie Finland Subsidiary 2821700-9 100 Koy Laukaan Saratie Finland Subsidiary 2896187‐4 100 Koy Lempäälän Tampereentie Finland Subsidiary 3266246-3 100 Koy Limingan Kauppakaari Finland Subsidiary 2553773‐6 100 Koy Limingan Saunarannantie Finland Subsidiary 3267223-1 100 Koy Lohjan Ansatie Finland Subsidiary 2768296‐1 100 Koy Lohjan Porapojankuja Finland Subsidiary 3130512-2 100 Koy Lohjan Sahapiha Finland Subsidiary 3132701-4 100 Koy Loimaan Itsenäisyydenkatu Finland Subsidiary 2887703-1 100 Koy Loviisan Mannerheiminkatu Finland Subsidiary 2648698‐5 100 Koy Mäntsälän Liedontie Finland Subsidiary 2505670‐5 100 Koy Mäntyharjun Lääkärinkuja Finland Subsidiary 2761813‐4 100 Koy Maskun Ruskontie Finland Subsidiary 2610017‐3 100 Koy Mikkelin Kastanjakuja Finland Subsidiary 2915481-2 100 Koy Mikkelin Sahalantie Finland Subsidiary 3004499-5 100 Koy Mikkelin Väänäsenpolku Finland Subsidiary 2864738‐3 100 Koy Mikkelin Ylännetie 8 Finland Subsidiary 2839320‐5 100 Koy Mynämäen Opintie Finland Subsidiary 2957425‐1 100 Koy Nokian Kivimiehenkatu 4 Finland Subsidiary 1056103-9 100 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 180 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 45 NAME Country Category Register of Capital held corporations (in %) Koy Nokian Luhtatie Finland Subsidiary 2882228-4 100 Koy Nokian Näsiäkatu Finland Subsidiary 2772561‐8 100 Koy Nokian Tähtisumunkatu Finland Subsidiary 3328037-9 100 Koy Nokian Vikkulankatu Finland Subsidiary 2720339‐3 100 Koy Nurmijärven Laidunalue Finland Subsidiary 2415548‐8 100 Koy Nurmijärven Luhtavillantie Finland Subsidiary 3202629-9 100 Koy Nurmijärven Ratakuja Finland Subsidiary 2807462‐6 100 Koy Orimattilan Suppulanpolku Finland Subsidiary 2750819‐7 100 Koy Oulun Isopurjeentie 3 Finland Subsidiary 2255743-2 100 Koy Oulun Jahtivoudintie Finland Subsidiary 2759228-8 100 Koy Oulun Juhlamarssi Finland Subsidiary 3217953-5 100 Koy Oulun Mäntypellonpolku Finland Subsidiary 3182688-4 100 Koy Oulun Pateniemenranta Finland Subsidiary 2930852-7 100 Koy Oulun Raamipolku Finland Subsidiary 2798361-7 100 Koy Oulun Ruismetsä Finland Subsidiary 3008792-8 100 Koy Oulun Salonpään koulu Finland Subsidiary 3100847-8 100 Koy Oulun Sarvisuontie Finland Subsidiary 2899591‐9 100 Koy Oulun Siilotie Finland Subsidiary 3006511-2 100 Koy Oulun Siilotie K21 A Finland Subsidiary 3311639-2 100 Koy Oulun Siilotie K21 B Finland Subsidiary 3311641-3 100 Koy Oulun Siilotie K21 C Finland Subsidiary 3311642-1 100 Koy Oulun Soittajanlenkki Finland Subsidiary 2920514-9 100 Koy Oulun Tahtimarssi Finland Subsidiary 3331416-1 100 Koy Oulun Ukkoherrantie A Finland Subsidiary 3141465-2 100 Koy Oulun Ukkoherrantie B Finland Subsidiary 2781801‐3 100 Koy Oulun Upseerinkatu Finland Subsidiary 3302679-2 100 Koy Oulun Vaaranpiha Finland Subsidiary 3146139-5 100 Koy Oulun Valjastie Finland Subsidiary 3139840-2 100 Koy Oulun Vihannestie Finland Subsidiary 3127183-1 100 Koy Oulun Villa Sulka Finland Subsidiary 2695880-7 100 Koy Paimion Mäkiläntie Finland Subsidiary 2853714‐1 100 Koy Pieksämäen Ruustinnantie Finland Subsidiary 2903250-8 100 Koy Pihtiputaan Nurmelanpolku Finland Subsidiary 2860057‐7 100 Koy Pirkkalan Lehtimäentie Finland Subsidiary 2593596‐1 100 Koy Pirkkalan Perensaarentie Finland Subsidiary 2808085‐8 100 Koy Porin Kerhotie 1 Finland Subsidiary 3145625-4 100 Koy Porin Koekatu Finland Subsidiary 2835076‐6 100 Koy Porin Ojantie Finland Subsidiary 2625961‐9 100 Koy Porvoon Fredrika Runebergin katu Finland Subsidiary 2760328‐2 100 Koy Porvoon Haarapääskyntie Finland Subsidiary 2951666‐8 100 Koy Porvoon Peippolankuja Finland Subsidiary 2588814‐9 100 Koy Porvoon Vanha Kuninkaantie Finland Subsidiary 2746305‐6 100 Koy Raahen Kirkkokatu Finland Subsidiary 3143874-2 100 Koy Raahen Palokunnanhovi Finland Subsidiary 2326426‐0 100 Koy Raahen Vihastenkarinkatu Finland Subsidiary 2917887-3 100 Koy Raision Tenavakatu Finland Subsidiary 2553772‐8 100 Koy Riihimäen Jyrätie Finland Subsidiary 2956737-7 100 Koy Rovaniemen Gardininkuja Finland Subsidiary 3100848-6 100 Koy Rovaniemen Koulukaari Finland Subsidiary 3239963-4 100 NAME Country Category Register of Capital held corporations (in %) Koy Rovaniemen Mäkiranta Finland Subsidiary 2994385-4 100 Koy Rovaniemen Matkavaarantie Finland Subsidiary 2838821‐1 100 Koy Rovaniemen Muonakuja Finland Subsidiary 3110312-5 100 Koy Rovaniemen Rakkakiventie Finland Subsidiary 2865638-6 100 Koy Rovaniemen Ritarinne Finland Subsidiary 2754616‐9 100 Koy Rovaniemen Santamäentie Finland Subsidiary 3008789-9 100 Koy Ruskon Päällistönmäentie Finland Subsidiary 2789540‐6 100 Koy Salon Linnankoskentie Finland Subsidiary 3330201-3 100 Koy Salon Papinkuja Finland Subsidiary 3155224-6 100 Koy Seinäjoen Kutojankatu Finland Subsidiary 2779544-8 100 Koy Siilinjärven Nilsiäntie Finland Subsidiary 2934834‐2 100 Koy Siilinjärven Risulantie Finland Subsidiary 2854061‐5 100 Koy Siilinjärven Sinisiipi Finland Subsidiary 2479104‐6 100 Koy Sipoon Aarrepuistonkuja Finland Subsidiary 2878144‐3 100 Koy Sipoon Aarretie Finland Subsidiary 2870619‐5 100 Koy Sotkamon Härkökivenkatu Finland Subsidiary 3314858-9 100 Koy Sotkamon Kirkkotie Finland Subsidiary 2917890‐2 100 Koy Tampereen Lentävänniemenkatu Finland Subsidiary 2648697‐7 100 Koy Tampereen Sisunaukio Finland Subsidiary 2355346-8 100 Koy Tampereen Teräskatu Finland Subsidiary 3284989-3 100 Koy Teuvan Tuokkolantie 14 Finland Subsidiary 2225109-7 100 Koy Tornion Torpin Rinnakkaiskatu Finland Subsidiary 2816984‐4 100 Koy Turun Lemmontie Finland Subsidiary 2551472-9 100 Koy Turun Lukkosepänkatu Finland Subsidiary 2842686‐3 100 Koy Turun Malin Trällinkuja Finland Subsidiary 3171440-1 100 Koy Turun Paltankatu Finland Subsidiary 2845199‐7 100 Koy Turun Teollisuuskatu Finland Subsidiary 2729980‐7 100 Koy Turun Vähäheikkiläntie Finland Subsidiary 2660277‐1 100 Koy Turun Vakiniituntie Finland Subsidiary 2648689‐7 100 Koy Tuusulan Isokarhunkierto Finland Subsidiary 3005414-9 100 Koy Tuusulan Lillynkuja Finland Subsidiary 3335638-8 100 Koy Tuusulan Temmontie Finland Subsidiary 3325587-8 100 Koy Ulvilan Kulmalantie Finland Subsidiary 2966954-1 100 Koy Uudenkaupungin Merilinnuntie Finland Subsidiary 2878831‐1 100 Koy Uudenkaupungin Merimetsopolku B Finland Subsidiary 2798800‐4 100 Koy Uudenkaupungin Merimetsopolku C Finland Subsidiary 2797654‐8 100 Koy Uudenkaupungin Puusepänkatu Finland Subsidiary 2766340‐2 100 Koy Vaasan Mäkikaivontie 22 Finland Subsidiary 1743075-2 100 Koy Vaasan Tehokatu 10 Finland Subsidiary 2246849-9 100 Koy Vaasan Uusmetsäntie Finland Subsidiary 3000725-4 100 Koy Vaasan Vanhan Vaasankatu Finland Subsidiary 2882784‐3 100 Koy Valkeakosken Juusontie Finland Subsidiary 3244769-1 100 Koy Vantaan Asolantie 14 Finland Subsidiary 2319120-9 100 Koy Vantaan Haravakuja Finland Subsidiary 3331473-5 100 Koy Vantaan Koetilankatu Finland Subsidiary 2656382‐1 100 Koy Vantaan Koivukylän Puistotie Finland Subsidiary 2933844‐3 100 Koy Vantaan Mesikukantie Finland Subsidiary 2755333‐4 100 Koy Vantaan Punakiventie Finland Subsidiary 2675834‐6 100 Koy Vantaan Tuovintie Finland Subsidiary 2711240‐8 100 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 181 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 46 NAME Country Category Register of Capital held corporations (in %) Koy Vantaan Vuohirinne Finland Subsidiary 2691248‐9 100 Koy Vihdin Hiidenrannantie Finland Subsidiary 2616455‐6 100 Koy Vihdin Vanhan sepän tie Finland Subsidiary 2625959‐8 100 Koy Ylivieskan Mikontie 1 Finland Subsidiary 2850860‐7 100 Koy Ylivieskan Ratakatu 12 Finland Subsidiary 2850859‐4 100 Koy Ylöjärven Työväentalontie Finland Subsidiary 2690219‐2 100 Majakka Kiinteistöt Oy Finland Subsidiary 2760856-9 100 Hoivatilat AB Sweden⁹ Subsidiary 559169-2461 100 Hoivatilat Holding AB Sweden Subsidiary 559192-8311 100 Hoivatilat Holding 2 AB Sweden Subsidiary 559204-7426 100 Hoivatilat Holding 3 AB Sweden Subsidiary 559296-1519 100 Hoivatilat Holding 4 AB Sweden Subsidiary 559301-4979 100 Hoivatilat Holding 5 AB Sweden Subsidiary 559318-8286 100 Älmhult Kunskapsgatan AB17 Sweden Subsidiary 559149-1732 100 Enköping Hässlinge LSS boende AB16 Sweden Subsidiary 559152-2247 100 Fanna 24:19 AB16 Sweden Subsidiary 559252-4788 100 Förskola Kalleberga AB17 Sweden Subsidiary 559204-7392 100 Förskola Mesta 6:56 AB17 Sweden Subsidiary 559195-0570 100 Gråmunkehöga LSS Boende AB16 Sweden Subsidiary 559131-8877 100 Heby LSS boende AB16 Sweden Subsidiary 559073-5634 100 Hoivatilat Projekt 1 AB Sweden Subsidiary 559376-5968 100 Huddinge Svartviksvägen Förskola AB Sweden Subsidiary 559283-2595 100 Laholm Nyby LSS boende AB16 Sweden Subsidiary 559149-6335 100 Lidingö Islinge Förskola AB Sweden Subsidiary 559376-5935 100 Norrtälje Östhamra Förskola AB17 Sweden Subsidiary 559180-2078 100 Nyköping Anderbäck LSS boende AB16 Sweden Subsidiary 559150-0979 100 Nyköping Bergshammar LSS boende AB16 Sweden Subsidiary 559205-6872 100 Nynäshamn Skola Sittesta AB17 Sweden Subsidiary 559087-5604 100 Örebro Hovsta Gryt LSS boende AB16 Sweden Subsidiary 559152-7147 100 Örebro Törsjö LSS boende AB16 Sweden Subsidiary 559163-1931 100 Oskarshamn Emmekalv LSS boende AB Sweden 16 Subsidiary 559163-3788 100 Österåker Singö LSS Boende AB16 Sweden Subsidiary 559196-9786 100 Staffanstorp Borggård 1:553 AB16 Sweden Subsidiary 559346-7144 100 Strängnäs Bivägen AB16 Sweden Subsidiary 559232-8685 100 Tierp LSS Boende AB16 Sweden Subsidiary 559218-2876 100 Upplands Väsby Havregatan Förskola AB17 Sweden Subsidiary 559234-9079 100 Uppsala Almungeberg 1 LSS boende AB16 Sweden Subsidiary 559131-1468 100 Uppsala Almungeberg 2 LSS boende AB16 Sweden Subsidiary 559150-0938 100 Uppsala Bälinge Lövsta 1 LSS boende AB16 Sweden Subsidiary 556908-5391 100 Uppsala Bälinge Lövsta 2 LSS boende AB16 Sweden Subsidiary 556864-9460 100 Uppsala Norby LSS Boende AB16 Sweden Subsidiary 559376-5976 100 Uppsala Sunnersta LSS boende AB16 Sweden Subsidiary 556900-2024 100 Vallentuna Västlunda LSS boende AB16 Sweden Subsidiary 559152-7139 100 Växjö LSS boende AB16 Sweden Subsidiary 559190-6267 100 NAME Country Category Register of Capital held corporations (in %) Aedifica Ireland Ltd Ireland¹⁰ Subsidiary 683400 100 Edge Fusion Ltd Ireland Subsidiary 614415 100 Enthree Ltd Ireland Subsidiary 683028 100 JKP Nursing Home Ltd Ireland Subsidiary 483964 100 Millennial Generation Ltd Ireland Subsidiary 607665 100 Prudent Capital Ltd Ireland Subsidiary 562309 100 Solcrea Ltd Ireland Subsidiary 614470 100 AED RE Espana 1 SLU Spain¹¹ Subsidiary B16839649 100 AED RE Espana 2 SLU Spain Subsidiary B91643411 100 1. With the exception of Immobe NV (located at Avenue Louise 331 in 1050 Brussels (Belgium)), all Belgian companies are located at Rue Belliard 40 box 11 in 1040 Brussels (Belgium). 2. All German companies are located at Eschersheimer Landstraße 14, 60322 Frankfurt am Main (Germany). 3. All Luxembourg companies are located at rue Guillaume J. Kroll 12 C in 1882 Luxembourg (Luxembourg). 4. All Dutch companies are located at Amstelplein 54, 1096 BC Amsterdam (Netherlands). 5. All Jersey companies are located at 47 Esplanade in St. Helier JE1 0BD (Jersey). 6. All UK companies are located at 13 Hanover Square, London, England, W1S 1HN (United Kingdom). 7. All UK Isle Of Man companies are located at Fort Anne, Douglas, IM1 5PD, Isle of Man (United Kingdom). 8. All Finnish companies are located at Kasarmintie 21, 90130 Oulu (Finland). 9. All Swedish companies are located at Svärdvägen 21, 18233 Danderyd (Sweden). 10. All Irish companies are located at 29 Earlsfort Terrace, Dublin 2, Ireland D02 AY28 (Ireland). 11. All Spanish companies are located at Travessera de Gràcia 11, 5ª pl., 08021 Barcelona (Spain). 12. The residual 75% is held by an investor that is unrelated to Aedifica. 13. The residual 6% is held by an investor that is unrelated to Aedifica. 14. The residual 50% is held by a partner that is unrelated to Aedifica. 15. The residual 25% is held by a partner that is unrelated to Aedifica. 16. Entity sold on 14 February 2025, see note 38. 17. Entity to be sold by the end of March 2025, see note 38. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 182 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 47 Note 40: Belgian RREC status (x €1,000) 31/12/2024 31/12/2023 Consolidated debt-to-assets ratio (max. 65%) Non-current financial debts 2,065,194 1,958,750 Other non-current financial liabilities (except for hedging instruments) + 83,979 81,183 Trade debts and other non-current debts + 124 251 Current financial debts + 448,442 321,549 Other current financial liabilities (except for hedging instruments) + 3,281 2,798 Trade debts and other current debts + 48,933 57,177 Total liabilities according to the Royal Decree of 13 July 2014 = 2,649,953 2,421,708 Total assets 6,463,824 6,176,811 Hedging instruments - -53,990 -73,924 Total assets according to the Royal Decree of 13 July 2014 = 6,409,834 6,102,887 Debt-to-assets ratio (in %) 41.34% 39.68% Additional debt capacity - debt ratio at 60% 1,195,947 1,240,024 Additional debt capacity - debt ratio at 65% 1,516,439 1,545,169 Prohibition to invest more than 20% of assets in real estate assets that form a single property At 31 December 2024, the largest group of assets operated by the same tenant represents 9% of the consolidated group assets and is operated by Clariane (formerly known as the Korian group). Valuation of investment properties by a valuation expert Aedifica’s properties are valued quarterly by the following independent valuation experts: Cushman & Wakefield Belgium NV/SA, Stadim BV/SRL, Savills Advisory Services GmbH & Co. KG, C&W (UK) LLP German Branch, Cushman & Wakefield Netherlands BV, Capital Value Taxaties BV, Knight Frank LLP, REnium Advisors Oy, Cushman & Wakefield Sweden AB, CBRE Unlimited Company and Jones Lang LaSalle España SA. Note 41: Fair value In accordance with IFRS 13, balance sheet elements for which the fair value can be computed are presented and broken down as follows: (x €1,000) 31/12/2024 31/12/2023 Category Level Book value Fair value Book value Fair value Non-current assets Non-current financial assets 54,273 54,273 98,665 98,665 a. Hedges C 2 53,990 53,990 73,924 73,924 b. Other A 2 283 283 24,741 24,741 Equity-accounted C 2 31,586 31,586 35,985 35,985 investments Current assets Trade receivables A 2 19,526 19,526 23,290 23,290 Tax receivables & other A 2 11,334 11,334 9,384 9,384 current assets Cash and cash equivalents A 1 18,451 18,451 18,253 18,253 Non-current liabilities Non-current financial debts A 2 -2,065,194 -1,950,181 -1,958,750 -1,830,018 Other non-current financial liabilities a. Authorised hedges C 2 -10,922 -10,922 -9,760 -9,760 b. Other A 2 -83,979 -83,979 -81,183 -81,183 Trade debts and other non- A 2 -124 -124 -251 -251 current debts Current liabilities Current financial debts A 2 -448,442 -448,442 -321,549 -321,549 Trade debts & other current A 2 -48,933 -48,933 -57,177 -57,177 debts Other current financial A 2 -3,281 -3,281 -2,798 -2,798 liabilities These categories follow the classification specified by IFRS 9: • category A: financial assets or liabilities (including accounts receivable & loans) carried at amortised cost; • category B: assets or liabilities recognised at fair value through net income; • category C: assets or liabilities that must be measured at fair value through the net income. Authorised hedging instruments belong to category C, except for hedging instruments that meet the requirements of hedge accounting (see IFRS 9), where changes in fair value are recognised in equity. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 183 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 48 Note 42: Put options granted to non-controlling shareholders The Company has committed to acquire the non-controlling shareholdings (6% of the share capital) owned by third parties in Aedifica. Luxemburg I SCS, Aedifica Luxemburg II SCS, Aedifica Luxemburg III SCS, Aedifica Luxemburg IV SCS, Aedifica Luxemburg V SCS, Aedifica Luxemburg VI SCS and Aedifica Residenzen Nord GmbH & Co KG, should these third parties wish to exercise their put options. The exercise price of such options granted to non-controlling interest is reflected on the liability side of balance sheet on line ‘I.C.b. Other non-current financial liabilities – Other’ (see Notes 15 and 23). Note 43: Alternative Performance Measures (APMs) For many years, Aedifica has been using Alternative Performance Measures in its financial communications based on ESMA (European Securities and Market Authority) guidelines published on 5 October 2015. Some of these APMs are recommended by the European Public Real Estate Association (EPRA) while others have been defined by the industry or by Aedifica; the aim is to provide readers with a better understanding of the Company’s results and performance. The APMs used in this annual report are identified with an asterisk (). The performance measures which are defined by IFRS standards or by Law are not considered as APMs, nor are those which are not based on the consolidated income statement or the balance sheet. The APMs are defined, annotated and connected with the most relevant line, total or subtotal of the financial statements. The definition of the APMs, as applied to Aedifica’s financial statements, may differ from those used in the financial statements of other companies Note 43.1: Investment properties Aedifica uses the performance measures presented below to determine the value of its investment properties; however, these measures are not defined under IFRS. They reflect alternate clustering of investment properties with the aim of providing the reader with the most relevant information. (x €1,000) 31/12/2024 31/12/2023 Marketable investment properties 5,935,278 5,529,564 + Assets classified as held for sale 100,207 58,158 + Right of use of plots of land 74,011 73,172 + Land reserve 12,966 18,671 Marketable investment properties including assets classified as held 6,122,462 5,679,565 for sale, or investment properties portfolio + Development projects 95,677 168,950 Investment properties including assets classified as held for sale, or 6,218,139 5,848,515 real estate portfolio Note 43.2: Rental income on a like-for-like basis Aedifica uses the net rental income on a like-for-like basis to reflect the performance of investment properties excluding the effect of scope changes. (x €1,000) 01/01/2024 - 01/01/2023 - 31/12/2024 31/12/2023 Rental income 338,138 314,174 - Scope changes -29,083 -15,071 = Rental income on a like-for-like basis 309,055 299,103 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 184 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 49 Note 43.3: Operating charges, operating margin and EBIT margin Aedifica uses operating charges to aggregate the operating charges. It represents items IV. to XV. of the income statement. Aedifica uses the operating margin and the EBIT margin to reflect the profitability of its rental activities. They represent the property operating result divided by net rental income and the operating result before result on portfolio divided by net rental income, respectively. 31/12/2024 (x €1,000) BE DE NL UK FI SE IE ES Non-allocated TOTAL SEGMENT RESULT Rental income (a) 69,638 63,182 40,929 74,763 61,221 5,338 22,943 124 - 338,138 Net rental income (b) 69,666 63,095 40,848 74,763 61,211 5,331 22,943 124 - 337,981 Property result (c) 69,667 63,088 40,990 74,762 61,842 5,309 22,940 124 - 338,722 Property operating result (d) 68,587 59,807 38,726 72,253 59,355 4,904 22,544 -15 - 326,161 OPERATING RESULT BEFORE RESULT ON PORTFOLIO (e) 68,587 59,807 38,726 72,253 59,355 4,904 22,544 -15 -35,905 290,256 Operating margin (d)/(b) 96.5% EBIT margin (e)/(b) 85.9% Operating charges (e)-(b) 47,725 31/12/2023 (x €1,000) BE DE NL UK FI SE IE ES Non-allocated TOTAL SEGMENT RESULT Rental income (a) 73,250 61,160 38,203 64,793 54,269 4,226 18,006 267 - 314,174 Net rental income (b) 72,700 60,969 38,186 64,439 54,247 4,226 18,006 267 - 313,040 Property result (c) 72,691 60,955 38,148 64,434 54,249 4,187 18,007 267 - 312,938 Property operating result (d) 71,307 58,457 35,793 61,758 52,677 3,784 17,757 188 - 301,721 OPERATING RESULT BEFORE RESULT ON PORTFOLIO (e) 71,307 58,457 35,793 61,758 52,677 3,784 17,757 188 -35,911 265,810 Operating margin (d)/(b) 96.4% EBIT margin (e)/(b) 84.9% Operating charges (e)-(b) 47,230 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 185 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 50 Note 43.4: Financial result excl. changes in fair value of financial instruments Aedifica uses the financial result excl. changes in fair value of financial instruments to reflect its financial result before the non-cash effect of financial instruments; however, this performance measure is not defined under IFRS. It represents the total of items XX., XXI. and XXII. of the income statement. (x €1,000) 31/12/2024 31/12/2023 XX. Financial income 971 3,006 XXI. Net interest charges -46,701 -45,004 XXII. Other financial charges -5,176 -5,181 Financial result excl. changes in fair value of financial instruments -50,906 -47,179 Note 43.5: Average cost of debt Aedifica uses average cost of debt and average cost of debt (incl. commitment fees) to reflect the costs of its financial debts; however, these performance measures are not defined under IFRS. They represent annualised net interest charges deducted by reinvoiced interests and IFRS 16 (and commitment fees) divided by weighted average financial debts. (x €1,000) 31/12/2024 31/12/2023 Weighted average financial debts (a) 2,421,976 2,395,149 XXI. Net interest charges -46,701 -45,004 Reinvoiced interests (incl. in XX. Financial income) 324 2,181 Interest cost related to leasing debts booked in accordance with IFRS 16 1,429 1,393 Annualised net interest charges (b) -44,948 -41,430 Average cost of debt (b)/(a) 1.9% 1.7% Commitment fees (incl. in XXII. Other financial charges) -3,514 -3,514 Annualised net interest charges (incl. commitment fees) (c) -48,462 -44,944 Average cost of debt (incl. commitment fees) (c)/(a) 2.0% 1.9% Note 43.6: Interest Cover Ratio (ICR) Aedifica uses the Interest Cover Ratio to measure its ability to meet interest payments obligations related to debt financing and should be at least equal to 2.0x. The ICR is calculated based on the definition set out in the prospectus of Aedifica’s Sustainability Bond: ‘Operating result before result on the portfolio’ (lines I to XV of the consolidated income statement) divided by ‘Net interest charges’ (line XXI) on a 12-month rolling basis. (x €1,000) 01/01/2024 - 01/01/2023 - 31/12/2024 31/12/2023 Operating result before result on portfolio (TTM) 1 290,256 265,810 XXI. Net interest charges (TTM) 1 -46,701 -45,004 Interest Cover Ratio 6.2 5.9 Note 43.7: Net debt/EBITDA This APM indicates how long a company would have to operate at its current level to pay off all its debts. It is calculated by dividing net financial debts, i.e., long-term and current financial debts minus cash and cash equivalents (numerator) by the EBITDA of the past twelve months (TTM) (denominator). EBITDA is the operating result before result on portfolio plus depreciation and amortisation. (x €1,000) 31/12/2024 31/12/2023 Non-current and current financial debts 2,513,636 2,280,299 - Cash and cash equivalents -18,451 -18,253 Net debt (IFRS) 2,495,185 2,262,046 Operating result before result on portfolio (TTM) 1 290,256 265,810 + Depreciation and amortisation of other assets (TTM) 1 2,508 2,180 EBITDA (IFRS) 292,764 267,990 Net Debt / EBITDA 8.5 8.4 The Net debt/EBITDA ratio is not adjusted for projects under construction or recently completed projects that increase debt but do not contribute, or do not fully contribute, to rental income. 1. TTM (Trailing Twelve Months) means that the calculation is based on financial figures for the past 12 months. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 186 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – CONSOLIDATED FINANCIAL STATEMENTS AEDIFICA 51 Note 43.8: Equity Aedifica uses equity excl. changes in fair value of hedging instruments to reflect equity before non-cash effects of the revaluation of hedging instruments; however, this performance measure is not defined under IFRS. It represents the line ‘equity attributable to owners of the parent’ without cumulated non-cash effects of the revaluation of hedging instruments. (x €1,000) 31/12/2024 31/12/2023 Equity attributable to owners of the parent 3,642,975 3,575,862 - Effect of the changes in fair value of hedging instruments -43,214 -63,908 Equity excl. changes in fair value of hedging instruments 3,599,761 3,511,954 Note 43.9: Key performance indicators according to the EPRA principles Aedifica supports reporting standardisation, which has been designed to improve the quality and comparability of information. The Group supplies its investors with most of the information recommended by EPRA (see also the ‘Reporting according to EPRA standards’ chapter of this Annual Report on pages 195- 206). The following indicators are considered APMs and are calculated in the aforementioned EPRA chapter: • EPRA Earnings represents the profit (attributable to owners of the Parent) after corrections recommended by the EPRA. The EPRA Earnings is calculated in Note 18 (in accordance with the Aedifica model) and in the EPRA chapter of the Annual Financial Report (in accordance with the model recommended by EPRA). • EPRA Net Reinstatement Value represents the line ‘equity attributable to owners of the parent’ after corrections recommended by the EPRA. The EPRA Net Reinstatement Value assumes that entities never sell assets and provide an estimation of the value required to rebuild the entity. • EPRA Net Tangible Assets represents the line ‘equity attributable to owners of the parent’ after corrections recommended by the EPRA. The EPRA Net Tangible Assets assumes that the Company acquires and sells assets, which would result in the realisation of certain unavoidable deferred taxes. • EPRA Net Disposal Value represents the line ‘equity attributable to owners of the parent’ after corrections recommended by the EPRA. The EPRA Net Disposal Value represents the value accruing to the Company's shareholders under an asset disposal scenario, resulting in the settlement of deferred taxes, the liquidation of financial instruments and the recognition of other liabilities for their maximum amount, net of any resulting tax. • EPRA Cost Ratio (including direct vacancy costs) and EPRA Cost Ratio (excluding direct vacancy costs) represent aggregate operational costs as recommended by the EPRA. • The EPRA LTV represents the Company's indebtedness compared to the market value of its assets. AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 187 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 52 2. Abridged Statutory Financial Statements The Abridged Statutory Financial Statements of Aedifica NV/SA, prepared under IFRS, are summarised below in accordance with Article 3:17 of Belgian Companies and Associations Code. The unabridged Statutory Financial Statements of Aedifica NV/SA, its Management Report and its Auditors’ Report will be registered at the National Bank of Belgium within the legal deadlines. These documents will also be available for free on the Company’s website (www.aedifica.eu) or on request at the Company’s headquarters. The statutory auditor released an unqualified opinion on the Statutory Financial Statements of Aedifica NV/SA. The mandatory distribution in the REIT legislation only relates to the adjusted net result as shown in the REIT’s statutory annual accounts (prepared in accordance with IFRS). The FSMA circular of 2 July 2020 allows various accounting options to recognise subisdiaries in the statutory accounts. Currently, Aedifica has opted for the ‘at cost’ model to account for its subsidiaries. This means that dividends are recognised in the statutory financial statements when the REIT’s right to receive them is established (IAS 27.12). This implies that the dividends received are then included in the REIT’s net income for the year and, consequently, in the distribution obligation. 2.1 Abridged Statutory Income Statement (x €1,000) 31/12/2024 31/12/2023 I. Rental income 102,831 105,007 II. Writeback of lease payments sold and discounted 0 0 III. Rental-related charges -225 -630 Net rental income 102,606 104,377 IV. Recovery of property charges 0 0 V. Recovery of rental charges and taxes normally paid by tenants on let properties 2,168 1,950 VI. Costs payable by the tenant and borne by the landlord on rental damage and repair at end of lease 0 0 VII. Charges and taxes not recovered by the tenant on let properties -2,178 -1,954 VIII. Other rental-related income and charges 1 -8 Property result 102,597 104,365 IX. Technical costs -1,366 -1,136 X. Commercial costs 0 0 XI. Charges and taxes on unlet properties 0 -6 XII. Property management costs 1,226 1,190 XIII. Other property charges 104 -200 Property charges -36 -152 Property operating result 102,561 104,213 XIV. Overheads -19,449 -19,133 XV. Other operating income and charges 462 1,812 Operating result before result on portfolio 83,574 86,892 XVI. Gains and losses on disposals of investment properties -430 -553 XVII. Gains and losses on disposals of other non-financial assets 0 0 XVIII. Changes in fair value of investment properties -25,936 -64,365 XIX. Other result on portfolio 0 -8,555 Operating result 57,208 13,419 XX. Financial income 168,243 145,007 XXI. Net interest charges -38,587 -39,502 XXII. Other financial charges -6,678 -4,889 XXIII. Changes in fair value of financial assets and liabilities -15,737 -49,098 Net finance costs 107,241 51,518 XXIV. Share in the profit or loss of associates and joint ventures accounted for using the equity method -929 -1,407 Profit before tax (loss) 163,520 63,530 XXV. Corporate tax and deferred taxes -6,978 -997 XXVI. Exit tax 135 88 Tax expense -6,843 -909 Profit (loss) 156,677 62,621 Basic earnings per share (€) 3.29 1.43 Diluted earnings per share (€) 3.29 1.43 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 188 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 53 2.2 Abridged Statutory Statement of Comprehensive Income (x €1,000) 31/12/2024 31/12/2023 I. Profit (loss) 156,677 62,621 II. Other comprehensive income recyclable under the income statement A. Impact on fair value of estimated transaction costs resulting from hypothetical disposal of investment properties 0 0 B. Changes in the effective part of the fair value of authorised cash flow hedge instruments as defined under IFRS 1 1,115 -2,293 D. Currency translation differences linked to conversion of foreign activities 0 0 H. Other comprehensive income, net of taxes 2 -3,870 -2,484 Comprehensive income 153,922 57,844 1. Corresponds to ‘Changes in the effective portion of the fair value of hedging instruments (accrued interests)’ as detailed in Note 32. 2. Mainly includes the transfer to the income statement of interests paid on hedging instruments and the amortisation of terminated derivatives (see Note 32). 2.3 Abridged Statutory Balance Sheet ASSETS 31/12/2024 31/12/2023 (x €1,000) I. Non-current assets A. Goodwill 0 0 B. Intangible assets 1,029 1,531 C. Investment properties 1,819,753 1,855,974 D. Other tangible assets 2,597 1,513 E. Non-current financial assets 3,394,797 3,184,283 F. Finance lease receivables 0 0 G. Trade receivables and other non-current assets 0 0 H. Deferred tax assets 497 2,485 Total non-current assets 5,218,673 5,045,786 II. Current assets A. Assets classified as held for sale 10,900 11,612 B. Current financial assets 0 0 C. Finance lease receivables 0 0 D. Trade receivables 9,748 10,259 E. Tax receivables and other current assets 476,112 419,189 F. Cash and cash equivalents 6,539 2,735 G. Deferred charges and accrued income 16,406 18,025 Total current assets 519,705 461,820 TOTAL ASSETS 5,738,378 5,507,606 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 189 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 54 EQUITY AND LIABILITIES 31/12/2024 31/12/2023 (x €1,000) EQUITY A. Capital 1,203,638 1,203,638 B. Share premium account 1,719,001 1,719,001 C. Reserves 377,225 484,463 a. Legal reserve 0 0 b. Reserve for the balance of changes in fair value of investment properties 215,573 266,180 d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS 1,708 4,344 e. Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS 62,153 111,144 f. Reserve of exchange differences relating to foreign currency monetary items -3,874 -4,470 g. Foreign currency translation reserves 0 0 h. Reserve for treasury shares -459 -31 j. Reserve for actuarial gains and losses of defined benefit pension plans -363 -244 k. Reserve for deferred taxes on investment properties located abroad -11,284 -13,846 m. Other reserves -669 -3,277 n. Result brought forward from previous years 107,636 116,170 o. Reserve- share NI & OCI of equity method invest 6,804 8,493 D. Profit (loss) of the year 156,677 62,621 TOTAL EQUITY 3,456,541 3,469,723 EQUITY AND LIABILITIES 31/12/2024 31/12/2023 (x €1,000) LIABILITIES I. Non-current liabilities A. Provisions 0 0 B. Non-current financial debts 1,813,111 1,698,085 a. Borrowings 1,011,028 906,250 c. Other 802,083 791,835 C. Other non-current financial liabilities 18,124 16,309 a. Authorised hedges 10,921 9,760 b. Other 7,203 6,549 D. Trade debts and other non-current debts 0 0 E. Other non-current liabilities 0 0 F. Deferred tax liabilities 16,405 15,264 Non-current liabilities 1,847,640 1,729,658 II. Current liabilities A. Provisions 0 0 B. Current financial debts 405,776 286,883 a. Borrowings 125,726 70,283 c. Other 280,050 216,600 C. Other current financial liabilities 1,112 762 D. Trade debts and other current debts 21,197 13,338 a. Exit tax 0 44 b. Other 21,197 13,294 E. Other current liabilities 0 0 F. Accrued charges and deferred income 6,112 7,242 Total current liabilities 434,197 308,225 TOTAL LIABILITIES 2,281,837 2,037,883 TOTAL EQUITY AND LIABILITIES 5,738,378 5,507,606 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 190 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 55 2.4 Abridged Statutory Statement of Changes in Equity (x €1,000) 01/01/2023 Capital increase in cash Capital increase in kind Acquisitions / disposals of treasury shares Consolidated comprehensive income Appropriation of the previous year's result Other transfer relating to asset disposals Transfers between reserves Other and roundings 31/12/2023 Capital 1,006,881 186,845 9,913 0 0 0 0 0 -1 1,203,638 Share premium account 1,516,108 187,364 15,529 0 0 0 0 0 0 1,719,001 Reserves 320,941 0 0 0 -4,777 168,299 0 0 0 484,463 a. Legal reserve 0 0 0 0 0 0 0 0 0 0 b. Reserve for the balance of changes in fair value of investment properties 218,652 0 0 0 0 44,251 3,277 0 0 266,180 d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS 8,945 0 0 0 -4,635 34 0 0 0 4,344 e. Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS -7,836 0 0 0 0 118,980 0 0 0 111,144 f. Reserve of exchange differences relating to foreign currency monetary items -444 0 0 0 0 -4,026 0 0 0 -4,470 g. Foreign currency translation reserves 0 0 0 0 0 0 0 0 0 0 h. Reserve for treasury shares -31 0 0 0 0 0 0 0 0 -31 j. Reserve for actuarial gains and losses of defined benefit pension plans -99 0 0 0 -145 0 0 0 0 -244 k. Reserve for deferred taxes on investment properties located abroad -7,361 0 0 0 0 -6,485 0 0 0 -13,846 m. Other reserves 251 0 0 0 0 -251 -3,277 0 0 -3,277 n. Result brought forward from previous years 99,805 0 0 0 3 16,362 0 0 0 116,170 o. Reserve- share NI & OCI of equity method invest 9,059 0 0 0 0 -566 0 0 0 8,493 Profit (loss) 309,462 0 0 0 62,621 -309,462 0 0 0 62,621 TOTAL EQUITY 3,153,392 374,209 25,442 0 57,844 -141,163 0 0 -1 3,469,723 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 191 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 56 (x €1,000) 01/01/2024 Capital increase in cash Capital increase in kind Acquisitions / disposals of treasury shares Consolidated comprehensive income Appropriation of the previous year's result Other transfer relating to asset disposals Transfers between reserves Other and roundings 31/12/2024 Capital 1,203,638 0 0 0 0 0 0 0 0 1,203,638 Share premium account 1,719,001 0 0 0 0 0 0 0 0 1,719,001 Reserves 484,463 0 0 -428 -2,754 -104,055 -1 0 0 377,225 a. Legal reserve 0 0 0 0 0 0 0 0 0 0 b. Reserve for the balance of changes in fair value of investment properties 266,180 0 0 0 0 -52,438 1,831 0 0 215,573 d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS 4,344 0 0 0 -2,636 0 0 0 0 1,708 e. Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS 111,144 0 0 0 0 -48,991 0 0 0 62,153 f. Reserve of exchange differences relating to foreign currency monetary items -4,470 0 0 0 0 596 0 0 0 -3,874 g. Foreign currency translation reserves 0 0 0 0 0 0 0 0 0 0 h. Reserve for treasury shares -31 0 0 -428 0 0 0 0 0 -459 j. Reserve for actuarial gains and losses of defined benefit pension plans -244 0 0 0 -118 0 0 0 -1 -363 k. Reserve for deferred taxes on investment properties located abroad -13,846 0 0 0 0 2,562 0 0 0 -11,284 m. Other reserves -3,277 0 0 0 0 3,277 -669 0 0 -669 n. Result brought forward from previous years 116,170 0 0 0 0 -7,371 -1,163 0 0 107,636 o. Reserve- share NI & OCI of equity method invest 8,493 0 0 0 0 -1,690 0 0 1 6,804 Profit (loss) 62,621 0 0 0 156,677 -62,621 0 0 0 156,677 TOTAL EQUITY 3,469,723 0 0 -428 153,923 -166,676 -1 0 0 3,456,541 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 192 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 57 2.5 Abridged Statutory Appropriation Account The main variation in result appropriation relates to the change in the fair value of financial instruments (see comments on corrected profit) and the decrease in deferred taxes due to the decrease in fair value of assets. PROPOSED APPROPRIATION 31/12/2024 31/12/2023 (x €1,000) A. Profit (loss) 156,677 62,621 B. Transfer to/from the reserves -39,632 -96,684 1. Transfer to/from the reserve of the (positive or negative) balance of changes in fair value of investment properties (-/+) -19,309 -52,438 2. Transfer to/from the reserve of the estimated transaction costs resulting from hypothetical disposal of investment properties (-/+) 0 0 3. Transfer to the reserve of the balance of the changes in fair value of authorised cash flow hedging instruments qualifying for hedge accounting (-) 0 0 4. Transfer to the reserve of the balance of the changes in fair value of authorised cash flow hedging instruments qualifying for hedge accounting (+) 0 0 5. Transfer to the reserve of the balance of the changes in fair value of authorised cash flow hedging instruments not qualifying for hedge accounting (-) -15,285 -48,991 6. Transfer to the reserve of the balance of the changes in fair value of authorised cash flow hedging instruments not qualifying for hedge accounting (+) 0 0 7. Transfer to/from the reserve of the balance of currency translation differences on monetary assets and liabilities (-/+) -1,765 596 8. Transfer to the reserve of the fiscal latencies related to investment properties abroad (-/+) -3,129 2,562 9. Transfer to the reserve of the received dividends aimed at the reimbursement of financial debts (-/+) 0 0 10. Transfer to/from other reserves (-/+) 669 3,277 11. Transfer to/from the result carried forward of the previous years (-/+) 0 0 12. Transfer to the reserve- share NI & OCI of equity method invest -813 -1,690 C. Remuneration of the capital provided in article 13, § 1, para. 1 163,122 149,061 D. Remuneration of the capital - other than C 22,324 17,615 Proposed remuneration of the capital (C + D) 185,445 166,676 Result to be carried forward 10,864 -7,371 SHAREHOLDERS' EQUITY THAT CAN NOT BE DISTRIBUTED ACCORDING TO ARTICLE 7:212 OF THE BELGIAN COMPANIES AND ASSOCIATIONS CODE 31/12/2024 31/12/2023 (x €1,000) Paid-up capital or, if greater, subscribed capital (+) 1,203,638 1,203,638 Share premium account unavailable for distribution according to the Articles of Association (+) 565,068 565,068 Reserve for positive balance of changes in fair value of investment properties (+) 196,265 213,742 Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS (+/-) 1,708 4,344 Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS (+/-) 46,868 62,153 Reserve of the balance of currency translation differences on monetary assets and liabilities (+) 0 0 Reserve for foreign exchange differences linked to conversion of foreign operations (+/-) 0 0 Reserve for the balance of changes in fair value of financial assets available for sale (+/-) 0 0 Reserve for actuarial differences of defined benefits pension plans (+) 0 0 Reserve of the fiscal latencies related to investment properties abroad (+) 0 0 Reserve of the received dividends aimed at the reimbursement of financial debts (+) 0 0 Other reserves declared as non-distributable by the general meeting (+) 0 0 Reserve- share NI & OCI of equity method invest 5,991 6,804 Legal reserve (+) 0 0 Shareholders' equity that cannot be distributed according to Article 7:212 of the Belgian Companies and Associations Code 2,019,538 2,055,749 Net asset 3,456,541 3,469,723 Interim dividend 0 0 Final dividend -185,445 -166,676 Net asset after distribution 3,271,096 3,303,047 Headroom after distribution 1,251,558 1,247,298 AEDIFICAannual report 2024 - FINANCIAL STATEMENTS 193 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 58 2.6 Corrected profit as defined in the Royal Decree of 13 July 2014 The corrected profit as defined in the Royal Decree of 13 July 2014 is calculated as follows, based on the Statutory Accounts: (x €1,000) 31/12/2024 31/12/2023 Profit (loss) 156,677 62,621 Depreciation 917 970 Write-downs 222 629 Other non-cash items 19,781 57,220 Gains and losses on disposals of investment properties 430 553 Changes in fair value of investment properties 25,875 64,334 Roundings 0 0 Corrected profit 203,902 186,327 Denominator° (in shares) 47,550,119 43,862,078 CORRECTED PROFIT PER SHARE° (in € per share) 4.29 4.25 Interim dividend 0 0 Final dividend 185,445 166,676 Total proposed dividend 185,445 166,676 PAY-OUT RATIO (MIN. 80%) 91% 89% The main change compared to last year’s profit correction relates to other non-cash items, and more specifically to the fair value of financial instruments hedging variable interest rate risk. The other notable change is the negative fair value of the investment properties in 2024 compared to a negative fair value in 2023 (see note 10 for more details). 2.7 Abridged statutory statement of changes in equity after appropriation of the year’s result (x €1,000) Equity as at 31/12/2024 Proposed result's appropriation Equity as at 31/12/2024 after proposed result's appropriation Capital 1,203,638 0 1,203,638 Share premium account 1,719,001 0 1,719,001 Reserves 377,225 156,677 533,902 a. Legal reserve 0 0 0 b. Reserve for the balance of changes in fair value of investment properties 215,573 -19,309 196,264 d. Reserve for the balance of changes in fair value of authorised hedging instruments qualifying for hedge accounting as defined under IFRS 1,708 0 1,708 e. Reserve for the balance of changes in fair value of authorised hedging instruments not qualifying for hedge accounting as defined under IFRS 62,153 -15,285 46,868 f. Reserve of exchange differences relating to foreign currency monetary items -3,874 -1,765 -5,639 g. Foreign currency translation reserves 0 0 0 h. Reserve for treasury shares -459 0 -459 j. Reserve for actuarial gains and losses of defined benefit pension plans -363 0 -363 k. Reserve for deferred taxes on investment properties located abroad -11,284 -3,129 -14,413 m. Other reserves -669 669 0 n. Result brought forward from previous years 107,636 196,309 303,945 o. Reserve- share NI & OCI of equity method invest 6,804 -813 5,991 Profit (loss) 156,677 -156,677 0 TOTAL EQUITY 3,456,541 0 3,456,541 information Additional 1. Reporting according to EPRA BPR standards pages 195 > 206 2. Summary of investment properties pages 207-224 3. External verification pages 225-238 4. Standing documents pages 239-251 5. EPRA sBPR content table pages 252 6. GRI content index pages 253-254 7. Statements pages 255-256 8. Glossary pages 257 AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 194 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 1 1. Reporting according to EPRA BPR standards The EPRA (‘European Public Real Estate Association’) is the voice of Europe’s publicly traded real estate sector and the most widely used global benchmark for listed real estate. The Aedifica share has been included in the ‘FTSE EPRA/NAREIT Developed Europe Index’ since March 2013. As at 31 December 2024, Aedifica was included in the EPRA Europe index with a weighting of approx. 1.4% and in the EPRA Belgium index with a weighting of approx. 19.0%. In September 2024, Aedifica received a 10 th consecutive ‘EPRA BPR Gold Award’ for its Annual Financial Report (financial year 2023), thus remaining in the leading group of European companies evaluated by EPRA. 1.1 EPRA key performance indicators 31/12/2024 31/12/2023 EPRA Earnings Earnings from operational activities. EPRA Earnings represent the profit (attributable to owners of the Parent) after corrections recommended by the EPRA. x €1,000 234,581 219,579 € / share 4.93 5.02 EPRA Net Reinstatement Value Net Asset Value adjusted in accordance with the Best Practice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 1 January 2020. The EPRA NRV assumes that entities never sell assets and provide an estimation of the value required to rebuild the entity. x €1,000 4,111,151 4,002,279 € / share 86.46 84.17 EPRA Net Tangible Assets Net Asset Value adjusted in accordance with the Best Practice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 1 January 2020. The EPRA NTA assumes that the Company acquires and sells assets, which would result in the realisation of certain unavoidable deferred taxes. x €1,000 3,643,666 3,527,234 € / share 76.63 74.18 EPRA Net Disposal Value Net Asset Value adjusted in accordance with the Best Practice Recommendations (BPR) Guidelines published by EPRA in October 2019 for application as from 1 January 2020. The EPRA NDV represents the value accruing to the company's shareholders under an asset disposal scenario, resulting in the settlement of deferred taxes, the liquidation of financial instruments and the recognition of other liabilities for their maximum amount, net of any resulting tax. x €1,000 3,670,625 3,585,631 € / share 77.19 75.41 EPRA Net Initial Yield (NIY) Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchaser’s costs. % 5.3% 5.3% EPRA Topped-up NIY This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods or other unexpired lease incentives such as discounted rent periods and step rents. % 5.5% 5.4% EPRA Vacancy Rate Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio. % 0.1% 0.1% EPRA Cost Ratio (including direct vacancy costs) Administrative & operating costs (including costs of direct vacancy) divided by gross rental income. % 14.2% 15.4% EPRA Cost Ratio (excluding direct vacancy costs) Administrative & operating costs (excluding costs of direct vacancy) divided by gross rental income. % 14.1% 15.4% EPRA LTV The EPRA LTV represents the Company's indebtedness compared to the market value of its assets. % 40.6% 39.1% The EPRA (‘European Public Real Estate Association’) is the voice of publicly traded real estate sector and the most widely used global benchmark Award’ for its Annual Financial Report the leading group of European companies evaluated by EPRA. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 195 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 2 1.2 EPRA Earnings EPRA Earnings 31/12/2024 31/12/2023 x €1,000 Earnings (owners of the parent) per IFRS income statement 204,831 24,535 Adjustments to calculate EPRA Earnings, exclude: (i) Changes in value of investment properties, development properties held for investment and other interests -15,195 143,636 (ii) Profits or losses on disposal of investment properties, development properties held for investment and other interests -374 856 (iii) Profits or losses on sales of trading properties including impairment charges in respect of trading properties - - (iv) Tax on profits or losses on disposals - - (v) Goodwill impairment 30,235 26,072 (vi) Changes in fair value of financial instruments and associated close-out costs 18,708 50,878 (vii) Acquisition costs on share deals and non-controlling joint venture interests (IFRS 3) - - (viii) Adjustments related to funding structure - - (ix) Adjustments related to non-operating and exceptional items - - (x) Deferred taxes in respect of EPRA adjustments -3,826 -24,314 (xi) Adjustments (i) to (x) above in respect of joint ventures 592 574 (xii) Non-controlling interests in respect of the above -390 -2,658 Roundings - - EPRA Earnings (owners of the parent) 234,581 219,579 Number of shares (Denominator IAS 33) 47,550,119 43,706,129 EPRA Earnings per Share (EPRA EPS - in €/share) 4.93 5.02 EPRA Earnings diluted per Share (EPRA diluted EPS - in €/share) 4.93 5.02 See section 1.4 of the ‘Financial Review’ chapter for a summary of the consolidated financial statements. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 196 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 3 1.3 EPRA Net Asset Value indicators Situation as at 31 December 2024 EPRA Net Reinstatement Value EPRA Net Tangible Assets EPRA Net Disposal Value x €1,000 NAV per the financial statements (owners of the parent) 3,642,975 3,642,975 3,642,975 NAV per the financial statements (in €/share) (owners of the parent) 76.61 76.61 76.61 (i) Effect of exercise of options, convertibles and other equity interests (diluted basis) - - - Diluted NAV, after the exercise of options, convertibles and other equity interests 3,642,975 3,642,975 3,642,975 IInncclluuddee:: (ii.a) Revaluation of investment properties (if IAS 40 cost option is used) - - - (ii.b) Revaluation of investment properties under construction (IPUC) (if IAS 40 cost option is used) - - - (ii.c) Revaluation of other non-current investments - - - (iii) Revaluation of tenant leases held as finance leases - - - (iv) Revaluation of trading properties - - - Diluted NAV at Fair Value 3,642,975 3,642,975 3,642,975 EExxcclluuddee:: (v) Deferred taxes in relation to fair value gains of IP 132,315 132,315 (vi) Fair value of financial instruments -43,214 -43,214 (vii) Goodwill as a result of deferred taxes 45,161 45,161 45,161 (vii.a) Goodwill as per the IFRS balance sheet -132,524 -132,524 (vii.b) Intangibles as per the IFRS balance sheet -1,047 I I n n c c l l u u d d e e : : (ix) Fair value of fixed interest rate debt 115,013 (x) Revaluation of intangibles to fair value - (xi) Real estate transfer tax 333,915 - IInncclluuddee//eexxcclluuddee:: Adjustments (i) to (v) in respect of joint venture interests - - - Adjusted net asset value (owners of the parent) 4,111,151 3,643,666 3,670,625 Number of shares on the stock market 47,550,119 47,550,119 47,550,119 Adjusted net asset value (in €/share) (owners of the parent) 86.46 76.63 77.19 x €1,000 Fair value as % of total portfolio % of deferred tax excluded Portfolio that is subject to deferred tax and intention is to hold and not to sell in the long run 2,845,975 47% 100% Situation as at 31 December 2023 EPRA Net Reinstatement Value EPRA Net Tangible Assets EPRA Net Disposal Value x €1,000 NAV per the financial statements (owners of the parent) 3,575,862 3,575,862 3,575,862 NAV per the financial statements (in €/share) (owners of the parent) 75.20 75.20 75.20 (i) Effect of exercise of options, convertibles and other equity interests (diluted basis) 1,366 1,366 1,366 Diluted NAV, after the exercise of options, convertibles and other equity interests 3,574,496 3,574,496 3,574,496 IInncclluuddee:: (ii.a) Revaluation of investment properties (if IAS 40 cost option is used) - - - (ii.b) Revaluation of investment properties under construction (IPUC) (if IAS 40 cost option is used) - - - (ii.c) Revaluation of other non-current investments - - - (iii) Revaluation of tenant leases held as finance leases - - - (iv) Revaluation of trading properties - - - Diluted NAV at Fair Value 3,574,496 3,574,496 3,574,496 EExxcclluuddee:: (v) Deferred taxes in relation to fair value gains of IP 135,907 135,907 (vi) Fair value of financial instruments -63,908 -63,908 (vii) Goodwill as a result of deferred taxes 45,161 45,161 45,161 (vii.a) Goodwill as per the IFRS balance sheet -162,758 -162,758 (vii.b) Intangibles as per the IFRS balance sheet -1,663 I I n n c c l l u u d d e e : : (ix) Fair value of fixed interest rate debt 128,732 (x) Revaluation of intangibles to fair value - (xi) Real estate transfer tax 310,623 - IInncclluuddee//eexxcclluuddee:: Adjustments (i) to (v) in respect of joint venture interests - - - Adjusted net asset value (owners of the parent) 4,002,279 3,527,234 3,585,631 Number of shares on the stock market 47,550,119 47,550,119 47,550,119 Adjusted net asset value (in €/share) (owners of the parent) 84.17 74.18 75.41 x €1,000 Fair value as % of total portfolio % of deferred tax excluded Portfolio that is subject to deferred tax and intention is to hold and not to sell in the long run 4,484,235 79% 100% AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 197 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 4 1.4 EPRA NIY & EPRA topped-up NIY EPRA Net Initial Yield (NIY) and EPRA Topped-up NIY 1 31/12/2024 x €1,000 BE DE NL UK FI SE IE ES Total Investment properties - wholly owned 1,254,966 1,166,330 665,440 1,274,181 1,169,900 40,485 435,256 24,397 6,030,955 Investment properties - share of JVs/Funds - - - - - - - - - Trading properties (including share of JVs) - 14,690 7,800 24,561 - 53,156 - - 100,207 Less: developments - -4,864 - -19,852 -38,190 - -10,496 -22,275 -95,677 Completed property portfolio 1,254,966 1,176,156 673,240 1,278,890 1,131,710 93,641 424,760 2,122 6,035,485 Allowance for estimated purchasers' costs 31,620 78,727 69,460 85,243 22,533 3,980 42,315 37 333,915 Gross up completed property portfolio valuation 1,286,586 1,254,883 742,700 1,364,133 1,154,243 97,621 467,075 2,159 6,369,400 Annualised cash passing rental income 71,785 63,368 40,369 71,623 68,279 5,683 22,209 124 343,442 Property outgoings 2 -416 -2,128 -1,485 -933 -1,948 -398 -112 -122 -7,543 Annualised net rents 71,370 61,240 38,884 70,690 66,331 5,285 22,097 2 335,899 Add: notional rent expiration of rent free periods or other lease incentives -67 857 804 10,098 - 255 1,691 - 13,638 Topped-up net annualised rent 71,303 62,097 39,688 80,788 66,331 5,540 23,788 2 349,537 EPRA NIY (in %) 5.5% 4.9% 5.2% 5.2% 5.7% 5.4% 4.7% 0.0% 5.3% EPRA Topped-up NIY (in %) 5.5% 4.9% 5.3% 5.9% 5.7% 5.7% 5.1% 0.0% 5.5% EPRA Net Initial Yield (NIY) and EPRA Topped-up NIY 1 31/12/2023 x €1,000 BE DE NL UK FI SE IE ES Total Investment properties - wholly owned 1,229,591 1,174,890 657,630 1,027,150 1,096,970 89,823 412,685 9,775 5,698,514 Investment properties - share of JVs/Funds - - - - - - - - - Trading properties (including share of JVs) 11,612 11,420 - 35,126 - - - - 58,158 Less: developments -5,285 -29,016 -6,450 -16,476 -69,890 -15,035 -19,601 -7,197 -168,950 Completed property portfolio 1,235,918 1,157,294 651,180 1,045,800 1,027,080 74,788 393,084 2,578 5,587,722 Allowance for estimated purchasers' costs 31,140 78,479 68,536 69,455 20,629 3,178 39,112 94 310,623 Gross up completed property portfolio valuation 1,267,058 1,235,773 719,716 1,115,255 1,047,709 77,966 432,196 2,672 5,898,345 Annualised cash passing rental income 70,748 60,318 38,531 66,232 59,486 4,578 19,535 124 319,552 Property outgoings 2 -856 -1,767 -1,786 -1,438 -1,547 -466 -22 -84 -7,966 Annualised net rents 69,892 58,551 36,745 64,794 57,939 4,112 19,513 40 311,586 Add: notional rent expiration of rent free periods or other lease incentives -525 1,698 1,716 318 - - 2,455 - 5,662 Topped-up net annualised rent 69,367 60,249 38,461 65,112 57,939 4,112 21,967 40 317,248 EPRA NIY (in %) 5.5% 4.7% 5.1% 5.8% 5.5% 5.3% 4.5% 0.0% 5.3% EPRA Topped-up NIY (in %) 5.5% 4.9% 5.3% 5.8% 5.5% 5.3% 5.1% 0.0% 5.4% 1. See Note 3 of the Consolidated Financial Statements for more details on segment information. 2. The scope of the real-estate charges to be excluded for calculating the EPRA Net Initial Yield is defined in the EPRA Best Practices and does not correspond to ‘real-estate charges’ as presented in the consolidated IFRS accounts. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 198 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 5 1.5 Investment properties – rental data Investment properties – rental data 1 31/12/2024 x €1,000 Gross rental income 2 Net rental income 3 Lettable space (in m²) Contractual rents 4 Estimated rental value (ERV) on empty spaces Estimated rental value (ERV) EPRA Vacancy Rate (in %) 5 Segment Belgium 67,825 66,750 505,484 71,719 - 67,919 0.0% Germany 61,811 58,554 557,911 64,225 - 64,919 0.0% Netherlands 39,160 37,040 347,700 41,173 75 41,956 0.2% United Kingdom 72,406 69,901 341,740 81,721 - 83,395 0.0% Finland 61,211 59,355 299,771 68,279 142 67,024 0.2% Sweden 2,075 1,951 11,316 5,938 - 5,733 0.0% Ireland 22,943 22,639 117,368 23,900 - 23,244 0.0% Spain 124 -15 15,478 124 - 124 0.0% Total marketable investment properties 327,555 316,175 2,196,768 357,080 217 354,314 0.1% Reconciliation to income statement Properties sold during the 2024 financial year 3,436 3,426 Properties held for sale 6,236 5,910 Land reserve 755 650 Other adjustments - - Total marketable investment properties 337,981 326,161 Investment properties – rental data 1 31/12/2023 x €1,000 Gross rental income 2 Net rental income 3 Lettable space (in m²) Contractual rents 4 Estimated rental value (ERV) on empty spaces Estimated rental value (ERV) EPRA Vacancy Rate (in %) 5 Segment Belgium 67,230 65,871 507,949 70,223 - 63,987 0.0% Germany 59,695 57,212 564,024 62,016 - 62,636 0.0% Netherlands 37,950 35,567 345,576 40,247 75 40,897 0.2% United Kingdom 62,421 59,753 312,658 66,550 - 70,965 0.0% Finland 53,464 51,894 270,261 59,486 257 60,315 0.4% Sweden 4,226 3,784 17,305 4,578 - 4,552 0.0% Ireland 18,001 17,752 117,193 21,990 - 20,365 0.0% Spain 106 27 15,449 124 - 125 0.0% Total marketable investment properties 303,093 291,860 2,150,415 325,213 332 323,842 0.1% Reconciliation to income statement Properties sold during the 2023 financial year 5,190 5,154 Properties held for sale 3,835 3,786 Land reserve 921 920 Other adjustments - - Total marketable investment properties 313,040 301,721 1. See ‘Summary of investment properties’ in section 2 of the ‘Additional information’ chapter for more details on rental data. 2. The total ‘gross rental income’ defined in EPRA Best Practices, reconciled with the consolidated IFRS income statement, corresponds to the ‘net rental income’ of the consolidated IFRS accounts. 3. The total ‘net rental income’ defined in EPRA Best Practices, reconciled with the consolidated IFRS income statement, corresponds to the ‘property operating result’ of the consolidated IFRS accounts. 4. The current rent at the closing date plus future rent on leases signed as at 31 December 2024 or 31 December 2023. 5. See ‘Risk factors’ chapter section 1 ‘Rents and tenants’ for more details on vacancy risk. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 199 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 6 1.6 Investment properties – like-for-like net rental income Investment properties – like-for-like net rental income 31/12/2024 31/12/2023 x €1,000 Net rental income on a like-for-like basis 1 Acquisitions Disposals Transfers due to completion Net rental income of the period 2 Net rental income on a like-for-like basis 1 Like-for-like net rental income 3 Segment Belgium 69,140 -609 - 55 68,587 68,275 1.3% Germany 60,526 -3,152 47 2,386 59,807 59,849 1.1% Netherlands 36,427 -1,315 86 3,528 38,726 35,109 3.8% United Kingdom 66,817 2,051 605 2,780 72,253 62,376 4.3% Finland 52,027 -219 - 7,546 59,355 50,037 4.0% Sweden 4,396 435 - 73 4,904 4,082 7.4% Ireland 17,456 -375 - 5,463 22,544 16,899 3.3% Spain - -31 - 16 -15 -1 0.0% Total marketable investment properties 306,789 -3,214 738 21,848 326,161 296,628 3.4% Reconciliation to income statement Properties sold during the 2024 financial year - Properties held for sale - Other adjustments - Total marketable investment properties 326,161 1. Marketable investment properties owned throughout the two financial years. 2. The total ‘net rental income’ defined in EPRA Best Practices, reconciled with the consolidated IFRS income statement, corresponds to the ‘property operating result’ of the consolidated IFRS accounts. 3. The variation on a like-for-like basis is shown for each country in the local currency. The total variation on a like-for-like basis is shown in the Group currency. The 3.4% like-for-like variation in net rental income can be broken down into +3.1% indexation of rents, +0.1% effect of non-recoverable property outgoings,-0.4% rent reversion and contingent rents and +0.6% exchange rate fluctuation. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 200 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 7 1.7 Investment properties – valuation data Investment properties – valuation data ¹ 31/12/2024 x €1,000 Fair value Changes in fair value EPRA NIY (in %) Reversion rate (in %) Segment Belgium 1,254,966 -17,702 5.5% -5.6% Germany 1,176,156 -14,062 4.9% 1.1% Netherlands 673,240 13,330 5.2% 1.7% United Kingdom 1,278,890 36,199 5.2% 2.0% Finland 1,131,710 4,800 5.7% -2.1% Sweden 93,641 -42 5.4% -3.6% Ireland 424,760 3,414 4.7% -2.8% Spain 2,122 -448 0.0% -0.2% Total marketable investment properties including assets as held for sale 6,035,485 25,489 5.3% -0.8% Reconciliation to the consolidated IFRS balance sheet Development projects 95,677 -5,129 Land reserve 12,966 -3,416 Right of use of plots of land 74,011 -1,749 Total investment properties including assets classified as held for sale, or real estate portfolio 6,218,139 15,195 Investment properties – valuation data ¹ 31/12/2023 x €1,000 Fair value Changes in fair value EPRA NIY (in %) Reversion rate (in %) Segment Belgium 1,235,918 -26,539 5.5% -9.7% Germany 1,157,294 -66,606 4.7% 1.0% Netherlands 651,180 -19,817 5.1% 1.4% United Kingdom 1,045,800 21,952 5.8% 6.2% Finland 1,027,080 -15,055 5.5% 0.9% Sweden 74,788 -6,965 5.3% -0.6% Ireland 393,084 -11,199 4.5% -8.0% Spain 2,578 94 0.0% 0.6% Total marketable investment properties including assets as held for sale 5,587,722 -124,135 5.3% -0.5% Reconciliation to the consolidated IFRS balance sheet Development projects 168,950 -14,244 Land reserve 18,671 -3,890 Right of use of plots of land 73,172 -1,367 Total investment properties including assets classified as held for sale, or real estate portfolio 5,848,515 -143,636 1. See section 1 ‘Our portfolio’ of the ‘Portfolio’ chapter for more details on valuation data. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 201 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 8 1.8 Investment properties – lease data Investment properties – lease data 31/12/2024 x €1,000 Current rent of leases expiring Average remaining maturity (in years) 1 Not later than one year Later than one year and not later than two years Later than two years and not later than five years Later than five years Segment Belgium 19 11 - - 71,708 Germany 21 45 - - 64,180 Netherlands 15 - - - 41,173 United Kingdom 22 - - - 81,721 Finland 12 529 - 4,884 62,867 Sweden 11 - - 273 5,665 Ireland 23 - - - 23,900 Spain 30 - - - 124 Total marketable investment properties including assets as held for sale 19 585 - 5,157 351,338 1. Termination at following possible break. 1.9 Properties under construction / in development 31/12/2024 (in € million) Cost to date Costs to completion Future interest to be capitalised Forecast total cost Forecast completion date Lettable space (in m²) % Pre-let ERV on completion Total 89 63 8 160 2027 ± 41,000 100% 9.3 31/12/2023 (in € million) Cost to date Costs to completion Future interest to be capitalised Forecast total cost Forecast completion date Lettable space (in m²) % Pre-let ERV on completion Total 168 237 8 413 2027 ± 106,000 100% 25.3 The breakdown for these projects is provided in section 1.2 of the ‘Portfolio’ chapter. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 202 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 9 1.10 EPRA Cost Ratios EPRA Cost Ratios x €1,000 31/12/2024 31/12/2023 Administrative/operating expense line per IFRS statement -47,882 -48,364 Rental-related charges -157 -1,134 Recovery of property charges 3 - Charges and taxes not recovered by the tenant on let properties 117 -12 Other rental-related income and charges 621 -90 Technical costs -3,907 -3,169 Commercial costs -39 -58 Charges and taxes on unlet properties -145 -114 Property management costs -6,918 -6,452 Other property charges -1,552 -1,424 Overheads -35,074 -35,740 Other operating income and charges -831 -171 EPRA Costs (including direct vacancy costs) (A) -47,882 -48,364 Charges and taxes on unlet properties 145 114 EPRA Costs (excluding direct vacancy costs) (B) -47,737 -48,250 Gross Rental Income (C) 338,138 314,174 EPRA Cost Ratio (including direct vacancy costs) (A/C) 14.2% 15.4% EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 14.1% 15.4% Overhead and operating expenses capitalised (including share of joint ventures) 1,408 1,085 As explained in Note 2.2 ‘Summary of material accounting policy information’, Aedifica capitalises overhead costs and operational expenses (project management fees, marketing costs, legal fees, etc.) that are directly linked to development projects. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 203 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 10 1.11 Capital expenditure Capital expenditure Group (excl. joint ventures) Joint venture (proportionate share) Total group x €1,000 31/12/2024 BE DE NL UK FI SE IE ES 31/12/2024 Property related capex (1) Acquisitions ¹ 224,987 45,854 - 25,172 143,681 9,280 - 1,000 - - 224,987 (2) Development ² 136,084 4,772 9,835 5,398 19,569 56,690 6,772 17,502 15,546 - 136,084 (3) Investment properties ³ 8,616 545 2,269 1,624 2,162 1,970 - 46 - - 8,616 Incremental lettable space 3,025 - - 89 2,037 899 - - - - 3,025 No incremental lettable space 5,591 545 2,269 1,535 125 1,071 - 46 - - 5,591 Capex related incentives - - - - - - - - - - - Other - - - - - - - - - - - (4) Capitalised interests ⁴ 4,101 275 485 213 347 1,917 239 619 6 - 4,101 Total capex 373,788 51,446 12,589 32,407 165,759 69,857 7,011 19,167 15,552 - 373,788 Conversion from accrual to cash basis ⁵ -5,508 -309 -485 -213 -347 -3,230 -299 -619 -6 - -5,508 Total capex on cash basis 368,280 51,137 12,104 32,194 165,412 66,627 6,712 18,548 15,546 - 368,280 Capital expenditure Group (excl. joint ventures) Joint venture (proportionate share) Total group x €1,000 31/12/2023 BE DE NL UK FI SE IE ES 31/12/2023 Property related capex (1) Acquisitions ¹ 59,282 1,697 - 28 - 12,502 5,227 38,333 1,495 - 59,282 (2) Development ² 258,333 6,290 29,109 30,057 29,668 102,518 12,906 41,485 6,300 - 258,333 (3) Investment properties ³ 3,106 49 2,975 -959 6 642 63 -40 376 - - 3,106 Incremental lettable space 959 3 28 244 489 46 - 149 - - 959 No incremental lettable space 2,147 46 2,947 -1,203 153 17 -40 227 - - 2,147 Capex related incentives - - - - - - - - - - - Other - - - - - - - - - - - (4) Capitalised interests ⁴ 5,722 100 1,383 779 451 1,060 142 1,804 3 - 5,722 Total capex 326,443 8,136 33,467 29,905 30,761 116,143 18,235 81,998 7,798 - 326,443 Conversion from accrual to cash basis ⁵ -7,398 -100 -1,383 -1,411 -451 -2,104 -142 -1,804 -3 - -7,398 Total capex on cash basis 319,045 8,036 32,084 28,494 30,310 114,039 18,093 80,194 7,795 - 319,045 1. See Note 21 for reconciliation with the cash flow statement. 2. Corresponds to ‘Capitalised development costs’ and ‘Other capitalised expenses’ for development projects, see Note 21. 3. Corresponds to ‘Other capitalised expenses’ for marketable investment properties, see Note 21. 4. Corresponds to ‘Capitalised interest charges’, see Note 21. 5. For reconciliation with ‘Development costs’ in the cash flow statement, add ‘Development’, ‘Investment properties’ and ‘Capitalised interests’ while deducting ‘Conversion from accrual to cash basis’. 6. Following the payment of an insurance reimbursement, capital expenditure was reduced by €1.8 million. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 204 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 11 1.12 EPRA LTV EPRA LTV x €1,000 31/12/2024 Proportionate consolidation Group – as reported Share of joint ventures Share of material associates Non-controlling interest Combined Include: Borrowings from Financial Institutions 1,614,531 - 9,551 26,776 1,597,306 Commercial paper 314,050 - - - 314,050 Hybrids (including convertibles, preference shares, debt, options and forwards) - - - - - Bond loans 585,055 - - - 585,055 Foreign currency derivatives (futures, swaps, options and forwards) - - - - - Net payables 18,073 - - 896 17,177 Owner-occupied property (debt) - - - - - Current accounts (equity characteristics) - - - - - Exclude: Cash and cash equivalents 18,451 40 6,137 52 24,576 Net debt (A) 2,513,258 -40 3,414 27,620 2,489,012 Include: Owner-occupied property - - - - - Investment properties at fair value 5,935,278 - 16,320 40,789 5,910,809 Properties held for sale 100,207 - 17,907 227 117,887 Properties under development 95,677 465 - 144 95,998 Land reserve 12,966 - - 328 12,638 Intangibles - - - - - Net receivables - 4 390 - 394 Financial assets - - - - - Total property value (B) 6,144,128 469 34,617 41,488 6,137,726 LTV (A/B) 40.91% 40.55% Reconciling items: • The sum of ‘Borrowings from financial institutions’, ‘Commercial paper’ and ‘Bond loans’ corresponds to the sum of non-current and current financial debts (see Note 31). • The ‘Net payables’ correspond to the difference between the trade payables and other current debts (Note 33) and the receivables (composed of trade receivables (Note 25) and tax receivables and other current assets (Note 26)). • ‘Cash and cash equivalents’ corresponds to the balance sheet amount and is disclosed in Note 27. • ‘Investment properties at fair value’, ‘Properties held for sale’ and ‘Properties under development’ can be reconciled with Note 21. • ‘Financial assets’ is included in the amount of ‘Other non-current receivables from associates’ disclosed in Note 23. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 205 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 12 EPRA LTV x €1,000 31/12/2023 Proportionate consolidation Group – as reported Share of joint ventures Share of material associates Non-controlling interest Combined Include: Borrowings from Financial Institutions 1,452,945 - 17,704 27,204 1,443,445 Commercial paper 242,600 - - - 242,600 Hybrids (including convertibles, preference shares, debt, options and forwards) - - - - - Bond loans 584,754 - - - 584,754 Foreign currency derivatives (futures, swaps, options and forwards) - - - - - Net payables 24,503 - - 1,456 23,047 Owner-occupied property (debt) - - - - - Current accounts (equity characteristics) - - - - - Exclude: Cash and cash equivalents 18,253 39 4,675 142 22,825 Net debt (A) 2,286,549 -39 13,029 28,518 2,271,021 Include: Owner-occupied property - - - - - Investment properties at fair value 5,529,564 - 22,373 38,785 5,513,152 Properties held for sale 58,158 - 20,195 686 77,667 Properties under development 168,950 465 6,408 1,434 174,389 Land reserve 18,671 - - 528 18,143 Intangibles - - - - - Net receivables - 5 375 - 380 Financial assets 24,402 - - - 24,402 Total property value (B) 5,799,745 470 49,351 41,433 5,808,133 LTV (A/B) 39.42% 39.10% Reconciling items: • The sum of ‘Borrowings from financial institutions’, ‘Commercial paper’ and ‘Bond loans’ corresponds to the sum of non-current and current financial debts (see Note 31). • The ‘Net payables’ correspond to the difference between the trade payables and other current debts (Note 33) and the receivables (composed of trade receivables (Note 25) and tax receivables and other current assets (Note 26)). • ‘Cash and cash equivalents’ corresponds to the balance sheet amount and is disclosed in Note 27. • ‘Investment properties at fair value’, ‘Properties held for sale’ and ‘Properties under development’ can be reconciled with Note 21. • ‘Financial assets’ is included in the amount of ‘Other non-current receivables from associates’ disclosed in Note 23. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 206 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 13 2. Summary of investment properties Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Marketable investment properties 2,198,190 35,316 13,457 €356,798,208 €354,032,934 Belgium 505,484 8,238 - €71,718,969 €67,918,897 Korian Belgium 137,819 2,489 - €21,448,321 Kasteelhof 4,989 102 - €645,526 1994 (2020) Dendermonde Ennea 1,848 34 - €255,044 1998 Sint-Niklaas Wielant 4,834 112 - €682,865 1997 (2001) Anzegem/Ingooigem Résidence Boneput 2,414 76 - €576,116 2003 Bree Résidence Aux Deux Parcs 2,365 68 - €536,732 1987 (2020) Jette Résidence l'Air du Temps 5,083 137 - €1,105,267 1994 (2016) Chênée Au Bon Vieux Temps 7,850 104 - €1,062,775 2016 Mont-Saint-Guibert Op Haanven 5,321 111 - €853,288 2001 (2016) Veerle-Laakdal Séniorie Mélopée 2,608 70 - €525,450 1993 (2010) Sint-Jans-Molenbeek Seniorie de Maretak 5,684 122 - €663,847 2006 (2008) Halle Résidence du Plateau 8,069 143 - €1,612,711 1994 (2007) Wavre De Edelweis 6,485 122 €969,344 1992 (2014) Begijnendijk Residentie Sporenpark 9,786 127 - €1,348,673 2013 Beringen Résidence Les Cheveux d'Argent 3,744 99 - €544,590 1988 (2002) Jalhay ‘t Hoge 4,632 81 - €866,325 1972 (2018) Kortrijk Helianthus 4,799 67 - €597,120 2006 (2014) Melle Villa Vinkenbosch 9,153 114 - €1,194,603 2016 (2018) Hasselt Heydeveld 5,336 110 - €797,949 2017 Opwijk Oosterzonne 4,121 77 - €916,928 2016 Zutendaal De Witte Bergen 7,715 119 - €1,295,177 2006 Lichtaart Beerzelhof 3,910 62 - €434,449 2007 Beerzel Uilenspiegel 6,090 97 - €923,047 2007 Genk Coham 7,599 120 - €1,112,006 2007 Ham Sorgvliet 6,281 110 - €1,020,991 2021 Linter Ezeldijk 7,101 105 - €907,499 2016 Diest Armonea 143,006 2,295 - €21,753,252 Les Charmes en Famenne 4,818 96 - €383,794 1975 (2012) Houyet Seniorerie La Pairelle 6,016 140 - €972,381 2012 (2015) Wépion Residence Gaerveld 1,504 20 - €214,564 2008 Hasselt Gaerveld 6,177 115 - €1,006,332 2008 (2010) Hasselt Pont d'Amour 10,334 146 - €1,254,043 2011 (2015) Dinant Marie-Louise 2,446 30 - €464,718 2014 Wemmel Hestia 10,978 208 - €1,749,811 2014 (2018) Wemmel Koning Albert I 7,775 110 - €1,162,883 2012 (2014) Dilbeek Eyckenborch 9,351 141 - €1,423,229 2004 (2014) Gooik Rietdijk 2,155 66 - €444,801 1994 (2012) Vilvoorde Larenshof 6,988 117 - €1,333,882 2011 (2014) Laarne Ter Venne 7,061 102 - €1,271,911 2010 (2012) Sint-Martens-Latem Plantijn 5,377 110 - €1,330,522 1975 (2021) Kapellen AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 207 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 14 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Salve 6,730 117 - €1,362,623 2014 Brasschaat Huize Lieve Moenssens 4,172 78 - €710,277 2017 Dilsen-Stokem De Stichel 6,645 152 - €1,080,531 2018 Vilvoorde De Notelaar 8,651 94 - €1,177,886 2011 Olen Overbeke 6,309 113 - €991,500 2012 Wetteren Senior Flandria 6,942 108 - €773,959 1989 Bruges Rembertus 6,786 100 - €940,835 2020 Mechelen Klein Veldekens 15,792 132 - €1,702,771 2020 Geel Vulpia 116,320 1,816 - €15,239,777 't Spelthof 6,098 121 - €1,126,636 2022 Binkom Twee Poorten 7,219 129 - €1,226,208 2014 Tienen Demerhof 10,657 120 - €1,180,556 2013 Aarschot Halmolen 8,362 140 - €1,258,823 2013 Halle-Zoersel La Ferme Blanche 4,240 90 - €677,527 2016 Remicourt Villa Temporis 8,354 103 - €883,631 1997 (2017) Hasselt Residentie Poortvelden 4,243 60 - €563,449 2014 Aarschot Leopoldspark 10,888 153 - €1,352,837 2016 Leopoldsburg Residentie Den Boomgaard 5,444 90 - €772,216 2016 Glabbeek Blaret 7,732 107 - €999,662 2016 Sint-Genesius-Rode Residentie Kartuizerhof 8,913 128 - €1,085,381 2018 Sint-Martens-Lierde Résidence de la Paix 3,365 107 - €722,700 2017 Evere Résidence le Douaire 8,837 129 - €727,600 2024 Anderlues Franki 13,470 209 - €1,720,023 1971 (2021) Liège Résidence Véronique 8,500 130 - €942,529 2015 (2024) Somme-Leuze Apricusa 1 33,476 332 - €3,187,503 Domaine de la Rose Blanche 5,790 121 - €1,021,046 2014 Durbuy Militza Brugge 10,690 120 - €1,438,716 2013 Bruges Militza Gent 16,996 91 - €727,740 2004 Ghent Emeis 2 20,460 431 - €2,858,688 Chateau Chenois 6,354 100 - €742,813 2006 Waterloo Résidence Grange des Champs 3,396 75 - €502,466 1994 Braine-l'Alleud Résidence Augustin 4,832 94 - €695,487 2006 Forest Résidence Parc Palace 5,878 162 - €917,922 1991 Uccle Orelia Group 5,963 101 - €1,115,679 Le Jardin Intérieur 5,963 101 - €1,115,679 2018 Frasnes-lez-Anvaing Hof van Schoten 8,313 101 - €995,409 Hof van Schoten 8,313 101 - €995,409 2014 Schoten Dorian groep 5,400 115 - €871,616 De Duinpieper 5,400 115 - €871,616 2021 Ostend Vivalto Home 5,434 107 - €783,991 Familiehof 5,434 107 - €783,991 2016 Schelle Résidence de la Houssière 5,521 94 - €742,074 Résidence de la Houssière 5,521 94 - €742,074 2006 Braine-le-Comte Pierre Invest 4,677 65 - €703,860 Bois de la Pierre 4,677 65 - €703,860 1955 (2023) Wavre 1. Formerly known as My-Assist. 2. Formerly known as Orpea. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 208 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 15 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Buitenhof VZW 4,585 80 - €683,620 Buitenhof 4,585 80 - €683,620 2005 (2008) Brasschaat Emera 4,020 84 - €501,112 In de Gouden Jaren 4,020 84 - €501,112 2005 Tienen Bremdael VZW 4,347 66 - €422,417 Bremdael 4,347 66 - €422,417 1994 (2012) Herentals Sint Franciscus 5,824 58 - €400,540 Ter Linde 5,824 58 - €400,540 1998 (2014) Asse Other 320 4 - €11,111 Villa Bois de la Pierre 320 4 - €11,111 1955 (2000) Wavre Germany 557,288 9,889 - €64,106,393 €64,800,403 Azurit Rohr 137,764 2,641 - €14,739,566 Azurit Seniorenresidenz Sonneberg 4,876 101 - €641,286 1889 (2011) Sonneberg Azurit Seniorenresidenz Cordula 1 4,970 75 - €343,004 1970 (2017) Oberzent-Rothenberg Azurit Seniorenresidenz Cordula 2 1,204 39 - €178,362 1993 (2017) Oberzent-Rothenberg Seniorenzentrum Weimar 7,609 144 - €883,008 2019 Weimar Sz Haus Asam 6,701 173 - €919,800 1996 Rohr Sz Laaberg 6,710 105 - €574,875 2004 Tann-Eiberg Sz Grünstadt 5,201 140 - €766,500 2003 Grünstadt Sz Berghof 2,838 78 - €352,050 2005 Rinteln Sz Abundus 7,023 150 - €821,250 1993 Fürstenzell Sz Bad Höhenstadt 4,668 95 - €520,125 1998 Fürstenzell Sz Hutthurm 5,344 108 - €591,300 1992 Hutthurm Sz Gensingen 7,269 144 - €840,960 2007 Gensingen Sz Hildegardis 14,927 196 - €1,159,635 2017 Langenbach Pz Wiesengrund 3,054 52 - €303,680 2006 Langenbach Sz Großalmerode 3,202 83 - €513,920 2017 Großalmerode Sz Bad Köstritz 8,448 196 - €1,073,100 2014 Bad Köstritz Sz Talblick 4,647 95 - €520,125 2010 Grasellenbach Sz Birken 3,075 83 - €454,425 2010 Birken-Honigsessen Sz Altes Kloster 4,939 80 - €493,480 2009 Much Sz Alte Zwirnerei 8,350 104 - €569,400 2010 Gersdorf Sz St. Benedikt 7,768 124 - €656,270 2017 Passeau Sz Sörgenloch 7,995 148 - €837,310 2014 Sörgenloch Seniorenzentrum Borna 6,946 128 - €725,700 2012 Borna Residenz Management 93,159 1,420 - €12,033,869 Die Rose im Kalletal 4,027 96 - €757,446 2009 Kalletal Senioreneinrichtung Haus Matthäus 2,391 50 - €402,554 2009 Olpe-Rüblinghausen Senioreneinrichtung Haus Elisabeth 3,380 80 - €644,088 2010 Wenden-Rothemühle Bremerhaven I 6,077 85 - €1,106,634 2016 Bremerhaven Bremerhaven II 2,129 42 - €360,772 2003 Bremerhaven Cuxhaven 810 9 - €125,893 2010 Cuxhaven Schwerin 5,000 87 - €670,904 2019 Schwerin Seniorenquartier Kaltenkirchen 6,650 123 - €916,800 2020 Kaltenkirchen Seniorenquartier Wolfsburg 17,742 141 - €1,561,410 2021 Wolfsburg Seniorenquartier Kaemenas Hof 7,057 75 - €700,253 2021 Bremen Seniorenquartier Weyhe 7,373 109 - €871,568 2021 Weyhe AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 209 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 16 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Seniorenquartier Cuxhaven 7,360 120 - €908,484 2021 Cuxhaven Seniorenquartier Gera 6,673 123 - €905,086 2024 Gera Seniorenquartier Schwerin 5,235 87 - €606,084 2022 Schwerin Fredenbeck 5,595 94 €809,329 2024 Fredenbeck Seniorenresidenz Twistringen 5,660 99 - €686,565 2022 Twistringen Vitanas 73,953 1,427 - €7,922,083 Am Kloster 5,895 136 - €944,984 2002 Halberstadt Rosenpark 4,934 79 - €523,006 2001 Uehlfeld Patricia 7,556 174 - €1,203,607 2001 (2010) Nürnberg St. Anna 7,176 161 - €1,079,757 2001 Höchstadt Frohnau 4,101 107 - €677,040 2018 Berlin Am Stadtpark 7,297 135 - €869,571 1970 (2023) Berlin Am Bäkepark 1 3,828 90 - €45,000 1999 Berlin Rosengarten 7,695 165 - €1,064,944 2023 Berlin Am Parnassturm 7,042 84 - €326,657 - Plön Am Marktplatz 4,880 79 - €154,348 1976 Wankendorf Am Tierpark 13,549 217 - €1,033,171 1994 Ueckermünde Specht & Tegeler 41,085 556 - €4,368,769 Seniorenquartier Lübbecke 4,240 80 - €609,327 2019 Lübbecke Seniorenquartier Espelkamp 9,458 113 - €857,874 2021 Espelkamp Seniorenquartier Beverstedt 5,475 80 - €563,850 2020 Beverstedt Quartier am Rathausmarkt 7,650 80 - €804,000 2022 Bremervörde Langwedel 8,250 113 - €859,197 2022 Langwedel Seniorenquartier Sehnde 6,012 90 - €674,520 2023 Sehnde Emeis 20,507 444 - €3,481,649 Seniorenresidenz Mathilde 3,448 75 - €627,109 2010 Enger Seniorenresidenz Klosterbauerschaft 3,497 80 - €667,409 2010 Kirchlengern Bonifatius Seniorenzentrum 3,967 80 - €679,555 2009 Rheinbach Seniorenresidenz Am Stübchenbach 5,874 130 - €885,134 2010 Bad Harzburg Seniorenresidenz Kierspe 3,721 79 - €622,442 2011 Kierspe Argentum 25,688 511 - €3,200,422 Seniorenheim am Dom 4,310 126 - €733,320 2008 Halberstadt Haus Nobilis 3,186 70 - €607,828 1950 (2015) Bad Sachsa Haus Alaba 2,560 64 - €260,498 1903 (1975) Bad Sachsa Haus Concolor 5,715 74 - €590,461 1950 (2008) Bad Sachsa Haus Arche 531 13 - €86,832 1900 (1975) Bad Sachsa Seniorenheim J.J. Kaendler 4,094 73 - €327,952 1955 (2020) Meissen Haus Wellengrund 5,292 91 - €593,533 2022 Stemwede EMVIA 26,854 543 - €3,064,514 Residenz Zehlendorf 4,540 180 - €1,034,427 2002 Berlin Seniorenwohnpark Hartha 10,715 177 - €848,698 1996 (2010) Tharandt Seniorenpflegezentrum Zur alten Linde 4,208 82 - €446,509 2004 Rabenau Seniorenquartier Heiligenhafen 7,391 104 - €734,880 2021 Heiligenhafen Alloheim 23,330 473 - €3,056,789 AGO Herkenrath 4,000 80 - €621,526 2010 Bergisch Gladbach AGO Dresden 5,098 116 - €663,365 2012 Dresden AGO Kreischa 3,670 84 - €474,189 2011 Kreischa 1. Asset classified as held for sale. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 210 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 17 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Bonn 5,927 108 - €853,693 2018 Bonn Mühlhausen 4,635 85 - €444,015 1988 (2012) Mülhausen Cosiq 17,060 264 - €1,983,902 Seniorenresidenz an den Kienfichten 4,332 88 - €508,088 2017 Dessau-Rosslau Pflegeteam Odenwald 1,202 32 - €251,311 1995 (2012) Wald-Michelbach Wohnstift am Weinberg 11,526 144 - €1,224,502 2022 Kassel SARA 12,196 162 - €1,140,000 SARA Seniorenresidenz 12,196 162 - €1,140,000 1964 (2017) Bitterfeld-Wolfen Korian Germany 7,618 151 - €1,037,064 Haus Steinbachhof 7,618 151 - €1,037,064 2017 Chemnitz Procuritas 7,050 127 - €924,877 Haus Wedau 3,892 70 - €460,000 2007 Duisburg Haus Marxloh 3,158 57 - €464,877 2007 (2024) Duisburg Aspida 5,095 120 - €707,925 Pflegecampus Plauen 5,095 120 - €707,925 2020 Plauen New Care 6,113 79 - €707,628 Park Residenz 1 6,113 79 - €707,628 1899 (2001) Neumünster Deutsches Rotes Kreuz 4,088 83 - €614,202 Käthe-Bernhardt-Haus 4,088 83 - €614,202 2008 Husum Seniorenresidenz Laurentiusplatz GmbH 5,506 79 - €585,732 Laurentiusplatz 5,506 79 - €585,732 2018 Wuppertal Johanniter 3,950 74 - €548,461 Johanniter-Haus Lüdenscheid 3,950 74 - €548,461 2006 Lüdenscheid Volkssolidarität 4,141 83 - €504,546 Goldene Au 4,141 83 - €504,546 2010 Sonneberg Advita Pflegedienst 6,422 91 - €500,308 Advita Haus Zur Alten Berufsschule 6,422 91 - €500,308 2016 Zschopau Hansa Gruppe 11,203 106 - €484,960 Hansa Pflege-und Betreuungszentrum Dornum 11,203 106 - €484,960 1993 (2016) Dornum Seniorenhaus Lessingstrasse GmbH 3,963 73 - €475,023 Seniorenhaus Lessingstrasse 3,963 73 - €475,023 2021 Wurzen Birgit Henkel Wohn und Pflegeheim 5,750 80 - €454,501 Sonnenhaus Ramsloh 5,750 80 - €454,501 2006 Saterland-Ramsloh ATV Lemförde GmbH 4,741 85 - €444,000 Sr Lemförde 4,741 85 - €444,000 2007 Lemförde CareCiano 2,457 60 - €426,000 Haus am Jungfernstieg 2,457 60 - €426,000 2010 Neumünster Inter Pares 3,275 63 - €390,000 Seniorenhaus Wiederitzsch 3,275 63 - €390,000 2018 Leipzig Auriscare 4,320 94 - €309,603 BAVARIA Senioren- und Pflegeheim 4,320 94 - €309,603 PROJECT Sulzbach-Rosenberg Netherlands 350,375 3,217 - €41,173,107 €41,956,394 Korian Netherlands 73,536 825 - €11,162,296 Saksen Weimar 2,291 42 - €615,514 2015 Arnhem Spes Nostra 2,454 30 - €574,966 2016 Vleuten Villa Koornmarkt 3,611 37 - €588,887 2017 Kampen HGH Leersum 2,280 26 - €485,359 2018 Leersum 1. Asset classified as held for sale. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 211 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 18 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Stepping Stones Leusden 1,689 21 - €297,211 2019 Leusden Zorghuis Smakt 2,111 30 - €247,831 1950 (2010) Smakt Zorgresidentie Mariëndaal 8,728 75 - €997,932 1870 (2011) Velp Sorghuys Tilburg 1,289 22 - €329,251 2020 Berkel-Enschot HGH Leiden 6,468 58 - €656,909 2017 Leiden HGH Amersfoort 2,261 33 - €445,575 1974 (2020) Amersfoort HGH Harderwijk 4,202 45 - €664,692 2020 Harderwijk HGH Franeker 10,750 70 - €706,527 2016 Franeker Stepping Stones Zwolle 1,770 24 - €390,331 2020 Zwolle Villa Casimir 1,273 20 - €223,657 2020 Roermond HGH Lelystad 4,301 45 - €635,526 2022 Lelystad Hengelo 1,288 21 - €196,151 2017 Hengelo Villa Horst en Berg 2,634 36 - €520,856 2022 Soest Villa den Haen 2,150 36 - €535,030 2022 Woudenberg Villa Florian 2,700 29 - €475,610 2022 Blaricum Het Gouden Hart Almere 4,911 68 - €899,397 2023 Almere Villa Meirin 2,175 27 - €245,000 2023 Witmarsum Villa Nuova 2,200 30 - €430,084 2021 Vorden Stichting Vitalis Residentiële Woonvormen 90,984 446 - €4,867,332 Parc Imstenrade 57,181 263 - €2,570,663 2006 Heerlen Genderstate 8,815 44 - €637,964 1991 Eindhoven Petruspark 24,988 139 - €1,658,705 2018 Eindhoven Martha Flora 22,850 259 - €4,506,405 Martha Flora Hilversum 4,055 31 - €662,642 2017 Hilversum Martha Flora Den Haag 2,259 28 - €630,950 2018 Den Haag Martha Flora Rotterdam 2,441 29 - €626,158 2019 Rotterdam Martha Flora Bosch en Duin 2,241 27 - €513,034 2018 Bosch en Duin Martha Flora Hoorn 1 780 12 - €93,577 2012 Hoorn Martha Flora Dordrecht 2,405 28 - €420,836 2021 Dordrecht Martha Flora Hulsberg 2,452 28 - €363,209 2021 Hulsberg Martha Flora Goes 2,405 28 - €401,629 2022 Goes Martha Flora Oegstgeest 1,428 20 - €380,475 2022 Oegstgeest Martha Flora Breda 2,384 28 - €413,894 2022 Breda NNCZ 38,440 340 - €3,449,704 Wolfsbos 11,997 93 - €963,752 2013 Hoogeveen De Vecht 8,367 79 - €815,424 2012 Hoogeveen De Kaap 6,254 61 - €718,422 2017 Hoogeveen Krakeel 5,861 57 - €596,552 2016 Hoogeveen WZC Beatrix 5,961 50 - €355,555 1969 (1996) Hoogeveen Compartijn 16,297 173 - €3,346,964 Huize de Compagnie 3,593 42 - €720,301 2019 Ede Huize Hoog Kerckebosch 3,212 32 - €668,254 2017 Zeist Huize Ter Beegden 1 1,895 19 - €386,333 2019 Beegden Huize Roosdael 3,361 26 - €531,384 2019 Roosendaal Huize Groot Waardijn 1,920 26 - €513,091 2019 Tilburg Huize Eresloo 2,316 28 - €527,601 2019 Duizel 1. Asset classified as held for sale. These properties were divested on 6 March 2025. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 212 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 19 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Stichting Oosterlengte 18,878 152 - €1,965,680 Het Dokhuis 4,380 32 - €500,644 2017 Oude Pekela Emmaheerdt 11,698 84 - €1,043,826 2020 Winschoten Havenzicht 2,800 36 - €421,209 2020 Scheemda Stichting Laverhof 13,191 108 - €1,362,446 Zorgcampus Uden 13,191 108 - €1,362,446 2019 Uden Saamborgh 4,902 76 - €1,085,836 Hoge Haeghe 2,352 38 - €556,500 2022 Almere Hof van Waal 2,550 38 - €529,336 2023 Tiel Stichting Rendant 13,142 126 - €1,031,190 Heerenhage 13,142 126 - €1,031,190 2021 Heerenveen Stichting Zorggroep Noorderboog 13,555 140 - €1,017,841 Oeverlanden 13,555 140 - €1,017,841 2017 Meppel Stichting Fundis 4,738 60 - €926,748 Amadeushuis Alphen aan den RIjn 2,307 27 - €417,827 2023 Alphen a/d Rijn Amadeushuis Waarder 2,431 33 - €508,921 2023 Waarder Stichting Nusantara 4,905 70 - €762,670 Rumah Saya 4,905 70 - €762,670 2011 Ugchelen U-center 7,416 59 - €713,912 U-center 7,416 59 - €713,912 2015 Epen Stichting Leger des Heils 6,017 75 - €710,211 De Merenhoef 6,017 75 - €710,211 2019 Maarssen Amado Zorg 2,890 52 - €699,988 De Volder Staete 2,890 52 - €699,988 2024 Almere Zorghaven Groep 3,489 36 - €574,118 Zuyder Haven Oss 1,674 18 - €321,082 2018 Oss Buyten Haven Dordrecht 1,815 18 - €253,036 2016 Dordrecht Zorggroep Apeldoorn 2,653 48 - €527,402 Pachterserf 2,653 48 - €527,402 2011 Apeldoorn Sandstep Healthcare 1,911 - - €466,029 Gender Clinic Bosch en Duin 1,911 - - €466,029 1950 Bosch en Duin Valuas Zorggroep 1,925 26 - €408,318 Residence Coestraete 1,925 26 - €408,318 2023 Zwolle Warm Hart 2,114 27 - €383,873 Oosterbeek Zilverheuvel 2,114 27 - €383,873 2022 Oosterbeek Cardea 2,565 63 - €365,983 OZC Orion 2,565 63 - €365,983 2014 Leiderdorp Wonen bij September 1,466 20 - €303,374 September Nijverdal 1,466 20 - €303,374 2019 Nijverdal Domus Magnus 924 10 - €270,926 Benvenuta 924 10 - €270,926 2009 Hilversum Omega 1,587 26 - €263,862 Meldestraat 1,587 26 - €263,862 2019 Emmeloord AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 213 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 20 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location United Kingdom 1 349,503 7,625 - €81,720,933 £67,611,719 €83,395,228 £68,996,946 Maria Mallaband 61,889 1,330 - £13,736,651 Ashmead 4,557 110 - £1,210,389 2004 Putney Belvoir Vale 2,158 56 - £779,762 1991 (2016) Widmerpool Coplands 3,445 79 - £730,356 1998 (2016) Wembley Eltandia Hall 3,531 83 - £849,754 1999 Norbury Glennie House 2,279 52 - £140,780 2005 (2014) Auchinleck Heritage 2,972 72 - £1,013,548 2002 (2024) Tooting Kings Court 2,329 60 - £276,695 2000 (2016) Swindon Knights Court 3,100 80 - £591,881 1998 (2017) Edgware Ottery 3,513 62 - £895,542 2019 Ottery St Mary River View 5,798 137 - £1,146,950 2001 Reading The Windmill 2,332 53 - £231,666 2007 (2015) Slough Deepdene 3,009 66 - £1,032,065 2006 Dorking Princess Lodge 4,087 85 - £439,213 2006 Swindon Minster Grange 4,815 83 - £1,147,413 2012 York Chartwell Manor 3,702 61 - £804,433 2022 Aylesbury Dawlish 3,744 71 - £915,103 2024 Dawlish Biddenham St James 3,120 60 - £974,343 2024 Biddenham Creggan Bahn Court 3,398 60 - £556,758 2022 Ayr Bondcare Group 67,355 1,539 - £11,276,168 Alexander Court 3,347 82 - £604,178 2002 Dagenham Ashurst Park 2,145 47 - £534,422 1990 (2016) Tunbridge Wells Ashwood 2,722 70 - £425,279 2001 (2017) Hayes Beech Court 2,135 51 - £427,255 1999 Romford Beechcare 2,739 65 - £815,666 1989 (2017) Darenth Bentley Court 3,755 77 - £406,644 2009 (2016) Wednesfield Brook House 3,155 74 - £552,517 2001 (2017) Thamesmead Chatsworth Grange 2,558 66 - £302,276 1998 (2017) Sheffield Clarendon 2,132 51 - £366,113 1998 (2017) Croydon Coniston Lodge 3,733 92 - £463,132 2003 Feltham Derwent Lodge 2,612 62 - £588,292 2000 Feltham Green Acres 2,352 62 - £293,392 2000 (2017) Leeds Lashbrook House 1,741 46 - - 1995 (2016) Lower Shiplake Meadowbrook 3,334 69 - £332,104 1991 (2015) Gobowen Moorland Gardens 3,472 79 - £469,427 2004 Luton Springfield 3,153 80 - £416,986 2000 Ilford The Fountains 2,510 62 - £409,621 2000 Rainham The Grange 7,693 160 - £1,213,305 2005 Southall The Hawthorns 4,558 73 - £835,344 2011 Woolston Rosewood House 4,101 90 £1,050,000 2019 London Uplands 3,411 81 - £770,216 2007 Shrewsbury Emera 20,750 341 - £4,590,509 Lavender Villa 1,724 20 - £332,404 2011 Grouville Crovan Court 2,397 52 - £366,885 2019 Ramsey Le Petit Bosquet 2,179 43 - £543,379 2023 St. Laurence 1. Amounts in GBP were converted into EUR based on the exchange rate of 31 December 2024 (0.82735 EUR/GBP). AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 214 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 21 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location St. Joseph’s 7,777 83 - £1,476,545 PROJECT St. Helier Les Charrières 2,413 50 - £657,090 2020 Jersey Spaldrick House 3,488 73 - £585,781 2024 Port Erin St. Joseph’s Flats 1 772 20 - £330,750 - St. Helier St. Joseph’s Land 1 - - - £297,675 - St. Helier Care UK 32,368 740 - £4,325,332 Armstrong House 2,799 71 - £360,856 2006 (2016) Gateshead Cheviot Court 2,978 73 - £612,961 2006 (2016) South Shields Church View 1 1,653 42 - £154,476 2004 (2015) Seaham Collingwood Court 2,525 63 - £556,114 2005 (2016) North Shields Elwick Grange 2,493 60 - £342,319 2002 Hartlepool Grangewood Care Centre 2,317 50 - £358,385 2005 (2016) Houghton Le Spring Hadrian House 2,487 55 - £341,083 2002 (2016) Blaydon Hadrian Park 2,892 73 - £279,293 2004 Billingham Ponteland Manor 2,160 52 - £197,729 2003 (2016) Ponteland Stanley Park 3,240 71 - £479,494 2006 (2015) Stanley The Terrace 2,190 40 - £271,878 1800 (2016) Richmond Ventress Hall 4,635 90 - £370,743 1994 (2017) Darlington Oyster Care 13,582 264 - £3,927,000 Furze Field Manor 3,468 66 - £990,000 2024 Sayers Common Copperfield Court 3,468 66 - £990,000 2024 Broadstairs Somer Valley House 3,178 66 - £957,000 2024 Midsomer Norton Rownhams Manor 3,468 66 - £990,000 2024 Southampton Highgate Care 2 22,327 612 - £3,880,273 Oaktree Hall & Lodge 2,471 65 - £457,068 2005 (2014) Bessingby Figham House 2,131 63 - £584,358 2017 Beverley Foresters Lodge 2,241 69 - £414,556 2017 Bridlington Maple Lodge 1,673 55 - £246,232 1989 (2017) Scotton Cranswick Lodge 1,812 48 - £310,297 1995 (2015) Driffield The Elms & Oakwood 5,361 80 - £458,171 1995 (2016) Louth The Grange 2,919 73 - £356,203 2005 (2015) Darlington The Lawns 2,459 62 - £261,072 2005 (2017) Darlington The Limes 3,414 97 - £792,317 2017 Driffield Anchor Hanover Group 17,000 330 - £3,636,168 Hazel End 3,210 66 - £840,957 2019 Bishops Stortford Marham House 3,435 66 - £709,331 2020 Bury St. Edmunds Corby Priors Hall Park 3,499 66 - £652,928 2021 Corby Glenvale Park 3,456 66 - £679,578 2022 Wellingborough Overstone House 3,400 66 - £753,374 2022 Northampton Renaissance 22,414 512 - £3,478,631 Beech Manor 2,507 46 - £234,576 1995 (2017) Blairgowrie Jesmond 2,922 65 - £498,278 2008 (2015) Aberdeen Kingsmills 2,478 60 - £640,237 1997 (2010) Inverness Letham Park 2,954 70 - £441,102 1995 (2017) Edinburgh Meadowlark 2,005 57 - £200,942 1989 (2015) Forres Persley Castle 1,550 40 - £268,270 1970 (2017) Aberdeen 1. Asset classified as held for sale. 2. Part of North Bay Group. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 215 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 22 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location The Cowdray Club 2,581 35 - £416,075 2009 (2016) Aberdeen Torry 3,028 81 - £376,187 1996 (2016) Aberdeen Whitecraigs 2,389 58 - £402,964 2001 Glasgow Rosedale Care 1 15,145 376 - £2,918,556 Crystal Court 2,879 68 - £719,171 2012 Harrogate Highfield Care Centre 3,260 88 - £450,163 2003 (2015) Castleford Maple Court 3,045 64 - £540,418 2018 Scarborough Priestley 1,520 40 - £278,566 2002 (2016) Birstall The Hawthornes 1,512 40 - £307,709 2003 (2017) Birkenshaw The Sycamores 1,627 40 - £401,347 2003 (2016) Wakefield York House 1,302 36 - £221,181 1999 (2016) Dewsbury Danforth Care 9,812 186 - £2,477,650 Weavers Court 3,456 66 - £830,290 2022 Rawdon The Mayfield Care Home 3,178 60 - £823,680 2023 Whitby Heath Lodge 3,178 60 - £823,680 2022 Holt Excelcare 14,007 244 - £2,430,355 Abbot Care Home 6,827 98 - £844,730 2016 Harlow Stanley Wilson Lodge 3,766 75 - £677,082 2010 Saffron Walden St Fillans Care Home 3,414 71 - £908,544 2012 Colchester Hamberley Care Homes 7,177 129 - £1,956,645 Richmond Manor 3,808 69 - £1,063,503 2020 Ampthill Abbotts Wood 3,369 60 - £893,142 2021 Hailsham Caring Homes 8,898 221 - £1,595,354 Brooklyn House 1,616 38 - £373,492 2009 (2016) Attleborough Guysfield 2,052 51 - £409,316 2000 (2015) Letchworth Hillside House and Mellish House 3,629 92 - £525,045 2005 (2016) Sudbury Sanford House 1,601 40 - £287,500 1998 (2016) East Dereham Torwood Care 6,711 141 - £1,553,250 Sleaford Ashfield Road 3,256 68 - £651,250 2023 Sleaford York Bluebeck Drive 3,455 73 - £902,000 2024 York St Mary’s Care 1 6,794 133 - £1,354,273 Shipley Manor 3,799 66 - £510,000 2022 Shipley St Mary’s Riverside 2,995 67 - £844,273 2021 Hessle Lifeways 3,880 67 - £1,169,859 Heath Farm 2,832 47 - £764,908 2009 Scopwick Sharmers Fields House 1,048 20 - £404,951 2008 (2010) Leamington Spa Marton Care 1 6,900 173 - £878,248 Grosvenor Park 2,312 61 - £337,418 2004 (2016) Darlington Riverside View 2,362 59 - £337,418 2004 (2016) Darlington The Lodge 2,226 53 - £203,413 2003 (2016) South Shields Harbour Healthcare 5,339 147 - £710,479 Bentley Rosedale Manor 2 2,896 78 - £411,958 2010 (2017) Crewe Tree Tops Court 2 2,442 69 - £298,520 1990 (2015) Leek Sandstone Care Group 4,107 80 - £863,550 Priesty Fields 4,107 80 - £863,550 2021 Congleton HC-One 3,048 60 - £852,769 Blakelands Lodge 3,048 60 - £852,769 2022 Marston Moretaine 1. Part of North Bay Group. 2. Asset classified as held for sale. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 216 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 23 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Finland 299,771 3,982 12,327 €68,279,297 €67,023,708 Municipalities / Wellbeing counties (multiple tenants) 67,947 382 4,574 €15,499,471 Koy Raahen Palokunnanhovi 423 - 60 €91,141 2010 Raahe Koy Siilinjärven Sinisiipi 568 - 72 €114,296 2012 Toivala Koy Mäntyharjun Lääkärinkuja 1,667 41 - €322,152 2017 Mäntyharju Koy Uudenkaupungin Puusepänkatu 1,209 30 - €287,728 2017 Uusikaupunki Koy Uudenkaupungin Merimetsopolku B (PK) 661 - 78 €154,785 2017 Uusikaupunki Koy Siilinjärven Risulantie 2,286 30 - €626,400 2018 Siilinjärvi Koy Ylivieskan Mikontie 1 847 15 - €242,863 2018 Ylivieska Koy Ylivieskan Ratakatu 12 1,294 30 - €324,457 2018 Ylivieska Koy Raahen Vihastenkarinkatu 800 - 120 €173,868 2018 Raahe Koy Rovaniemen Mäkirannantie 530 - 75 €143,623 1989 Rovaniemi Koy Jyväskylän Ailakinkatu (+extension) 1,542 - 150 €425,799 2019 Jyväskylä Koy Siilinjärven Nilsiäntie 1,086 - 100 €232,259 2019 Siilinjärvi Koy Laihian Jarrumiehentie 630 - 75 €48,000 2019 Laihia Koy Mikkelin Sahalantie 1,730 - 150 €500,671 2019 Mikkeli Koy Rovaniemen Santamäentie 2,200 - 203 €358,892 2020 Rovaniemi Koy Vaasan Uusmetsäntie 2,519 - 210 €521,964 2020 Vaasa Koy Rovaniemen Gardininkuja 653 - 76 €232,022 2020 Rovaniemi Koy Oulun Ruismetsä 2,140 - 205 €529,172 2020 Oulu Oulun Salonpään koulu 2,026 - 206 €693,540 2021 Oulu Koy Kuopion Männistönkatu PK 2,104 - 168 €360,281 2021 Kuopio Koy Oulun Valjastie (Hintta) 1,901 - 150 €496,534 2021 Oulu Raahe care home 2,450 60 - €486,870 2021 Raahe Koy Helsingin Krämertintie 1,486 28 - €380,532 2024 Helsinki Helsinki Käräjätuvantie 2,649 - 196 €614,119 2024 Helsinki Helsinki Kutomokuja 1,947 - 224 €573,122 2024 Helsinki Koy Oulun Tahtimarssi 4,598 - 350 €988,728 2024 Oulu Jyväskylä Harjutie 943 - 91 €275,219 2021 Vaajakoski Kaskinen Bladintie 600 13 - - 2009 Kaskinen Kokkola Ilkantie 3,353 73 - €598,344 2016 Kokkola Helsinki Kansantie 3,654 - 360 €713,490 2022 Helsinki Koy Keravan Lehmuskatu 2,990 62 - €482,660 2022 Kerava Tampere Teräskatu 3,363 - 240 €613,133 2023 Tampere Oulu Jahtivoudintie 3,622 - 340 €840,502 2023 Helsinki Oulu Riistakuja 3,406 - 300 €674,132 2022 Oulu Tuusula Lillynkuja 1,533 - 125 €536,988 2024 Tuusula Oulu Mäntypellonpolku 1,488 - 150 €510,342 2022 Oulu Rovaniemi Koulukaari 1,050 - 100 €330,843 2023 Rovaniemi Attendo 49,126 1,185 - €11,035,724 Koy Vihdin Vanhan sepäntie 1,498 40 - €370,738 2015 Nummela Koy Kouvolan Vinttikaivontie 1,788 48 - €442,259 2015 Kouvola Koy Lahden Vallesmanninkatu 1,199 30 - €288,525 2015 Lahti Koy Orimattilan Suppulanpolku 1,498 40 - €390,301 2016 Orimattila Koy Espoon Vuoripirtintie 1,480 35 - €347,239 2016 Espoo Koy Kajaanin Erätie 1,920 52 - €398,193 2017 Kajaani Koy Heinolan Lähteentie 1,665 41 - €373,861 2017 Heinola Koy Porvoon Fredrika Runebergin katu 973 29 - €295,621 2017 Porvoo AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 217 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 24 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Koy Pihtiputaan Nurmelanpolku 963 24 - €215,670 2017 Pihtipudas Koy Pihtiputaan Nurmelanpolku 460 16 - €73,345 2004 Pihtipudas Koy Nokian Näsiäkatu 1,665 41 - €385,323 2017 Nokia Koy Oulun Ukkoherrantie B 878 20 - €223,562 2017 Oulu Koy Keravan Männiköntie 862 27 - €280,477 2017 Kerava Koy Lohjan Ansatie 1,593 40 - €384,137 2017 Lohja Koy Uudenkaupungin Merimetsopolku C (HKO) 655 15 - €161,284 2017 Uusikaupunki Koy Nurmijärven Ratakuja 856 20 - €209,282 2017 Nurmijärvi Koy Rovaniemen Matkavaarantie 977 21 - €205,246 2018 Rovaniemi Koy Mikkelin Ylännetie 8 982 22 - €210,350 2018 Mikkeli Koy Vaasan Vanhan Vaasankatu 1,195 25 - €244,155 2018 Vaasa Koy Oulun Sarvisuontie 1,190 27 - €249,407 2019 Oulu Koy Vihdin Hiidenrannantie 1,037 23 - €250,624 2019 Nummela Koy Kokkolan Ankkurikuja 1,218 31 - €255,014 2019 Kokkola Koy Kuopion Portti A2 2,706 65 - €677,430 2019 Kuopio Koy Pieksämäen Ruustinnantie 792 20 - €170,589 2020 Pieksämäki Koy Kouvolan Ruskeasuonkatu 3,019 60 - €567,652 2020 Kouvola Koy Lohjan Sahapiha (care home) 2,470 50 - €489,112 2021 Lohja Kotka Metsäkulmankatu 1,521 40 - €353,271 2010 Kotka Vasaa Tehokatu 3,068 78 - €532,313 2010 Vaasa Oulu Isopurjeentie 3,824 86 - €777,969 2010 Oulu Teuva Tuokkolantie 834 18 - €144,228 2010 Teuva Koy Oulun Juhlamarssi 2,477 52 - €506,469 2022 Oulu Kokkola Metsämäentie 1,078 26 - €303,312 2014 Kokkola Kokkola Kärrytie 790 23 - €258,766 2008 Kokkola Mehiläinen 24,876 557 - €5,665,097 Koy Porin Ojantie 1,629 40 - €390,617 2015 Pori Koy Jyväskylän Väliharjuntie 1,678 42 - €408,406 2015 Vaajakoski Koy Espoon Hirvisuontie 823 20 - €190,426 2017 Espoo Koy Hollolan Sarkatie 1,663 42 - €423,882 2017 Hollola Koy Hämeenlinnan Jukolanraitti 1,925 40 - €430,159 2018 Hämeenlinna Koy Sipoon Aarretie 964 21 - €208,035 2018 Sipoo Koy Lappeenrannan Orioninkatu 935 22 - €214,349 2018 Lappeenranta Koy Porvoon Haarapääskyntie 886 17 - €159,911 2019 Porvoo Koy Äänekosken Likolahdenkatu 771 15 - €153,918 2019 Äänekoski Koy Kangasalan Rekiäläntie 1,240 28 - €290,138 2019 Kangasala Koy Iisalmen Satamakatu 2,630 53 - €539,879 2020 Iisalmi Koy Oulun Siilotie 1,868 45 - €438,810 2020 Oulu MT Espoo Kurttilantie 998 26 - €222,507 2022 Espoo Jyväskylä Sulkulantie 850 18 - €164,720 2017 Jyväskylä Oulun Villa Sulka 2,973 60 - €692,354 2016 Oulu Mikkelin Kastanjakuja 963 20 - €198,817 2019 Mikkeli Kuopion Oiva 619 17 - €162,239 2019 Kuopio Jyväskylä Martikaisentie 832 17 - €218,917 2014 Jyväskylä Nokian Luhtatie 630 14 - €157,013 2018 Nokia Norlandia 21,728 244 1,291 €5,108,452 Koy Jyväskylän Haperontie 700 - 84 €154,262 2016 Jyväskylä Koy Espoon Oppilaantie 1,045 - 120 €224,316 2017 Espoo Koy Kuopion Rantaraitti 822 - 96 €184,033 2017 Kuopio AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 218 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 25 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Koy Ruskon Päällistönmäentie 697 - 84 €170,396 2017 Rusko Koy Uudenkaupungin Merilinnuntie 702 - 84 €165,619 2018 Uusikaupunki Koy Lahden Piisamikatu 697 - 84 €164,487 2018 Lahti Koy Turun Lukkosepänkatu 882 - 100 €214,779 2018 Turku Koy Sipoon Aarrepuistonkuja 668 - 75 €165,347 2018 Sipoo Koy Keuruun Tehtaantie 538 - 60 €125,809 2018 Keuruu Koy Mynämäen Opintie 697 - 84 €165,137 2019 Mynämäki Koy Ruskon Päällistönmäentie (2.phase) 505 - 60 €118,096 2019 Rusko Koy Haminan Lepikönranta 575 - 80 €152,895 2019 Hamina Koy Jyväskylän Vävypojanpolku 769 - 84 €182,066 2019 Jyväskylä Tuusula Isokarhunkierto (elderly care) 1,920 46 - €416,432 2020 Tuusula Tuusula Isokarhunkierto (childcare) 789 - 84 €171,130 2020 Tuusula Helsinki Pakarituvantie (childcare) 620 - 50 €119,244 2022 Helsinki Helsinki Pakarituvantie (elderly care & other) 4,960 108 - €1,189,904 2022 Helsinki Kerava Palopellonkatu 550 - 62 €127,596 2024 Kerava Kuopio Opistotie 3,595 90 - €896,904 2022 Kuopio Pilke 19,377 26 2,086 €4,576,597 Koy Mäntsälän Liedontie 645 - 66 €172,465 2013 Mäntsälä Koy Lahden Vallesmanninkatu 561 - 72 €146,130 2015 Lahti Koy Kouvolan Kaartokuja 566 - 68 €149,579 2016 Kouvola Koy Nokian Vikkulankatu 993 - 126 €196,045 2016 Nokia Koy Vantaan Tuovintie 584 - 73 €159,870 2016 Vantaa Koy Rovaniemen Ritarinne 1,186 - 132 €316,767 2016 Rovaniemi Koy Vantaan Mesikukantie 959 - 120 €215,952 2016 Vantaa Koy Vantaan Mesikukantie 531 - 64 €136,379 2018 Vantaa Koy Pirkkalan Perensaarentie 1,313 - 168 €320,243 2017 Pirkkala Koy Jyväskylän Mannisenmäentie 916 - 102 €185,894 2017 Jyväskylä Koy Kaarinan Nurminiitynkatu 825 - 96 €192,878 2017 Kaarina Koy Porin Koekatu 915 - 96 €203,314 2018 Pori Koy Mikkelin Väänäsenpolku 648 - 72 €145,782 2018 Mikkeli Koy Sotkamon Kirkkotie 547 - 72 €162,393 2018 Sotkamo Koy Oulun Soittajanlenkki 1,091 - 120 €249,558 2018 Oulu Koy Oulun Soittajanlenkki (extension) 654 - 75 €153,926 2019 Oulu As Oy Lahden Vuorenkilpi 703 - 90 €186,134 2019 Lahti Koy Lohjan Sahapiha (childcare) 478 - 60 €108,571 2021 Lohja Espoo Kuurinkallio (disabled care) 1,393 26 - €319,094 2024 Espoo Koy Nurmijärvi Luhtavillantie 1,153 - 120 €256,911 2021 Klaukkala Kangasalan Topin Mäki 857 - 87 €215,170 2022 Kangasala Liminka Saunarannantie 917 - 99 €178,030 2022 Liminka Oulu Pateniemenranta 614 - 66 €114,060 2023 Oulu Espoo Ylismäenkuja 331 - 42 €91,452 2023 Espoo Touhula 17,901 - 2,049 €4,556,741 Koy Nurmijärven Laidunalue 477 - 57 €110,303 2011 Nurmijärvi Koy Nurmijärven Laidunalue (extension) 603 - 66 €137,901 2023 Nurmijärvi Koy Kuopion Sipulikatu 564 - 72 €146,649 2013 Kuopio Koy Porvoon Peippolankuja 564 - 70 €153,633 2014 Porvoo Koy Pirkkalan Lehtimäentie 734 - 90 €186,021 2014 Pirkkala Koy Pirkkalan Lehtimäentie 452 - 53 €121,896 2015 Pirkkala Koy Espoon Fallåkerinrinne 891 - 75 €230,517 2014 Espoo AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 219 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 26 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Koy Tampereen Lentävänniemenkatu 737 - 93 €185,046 2015 Tampere Koy Tampereen Lentävänniemenkatu (extension) 468 - 50 €109,141 2019 Tampere Koy Turun Vähäheikkiläntie 911 - 97 €235,619 2015 Turku Koy Turun Vähäheikkiläntie 553 - 60 €127,231 2018 Turku Koy Turun Vakiniituntie 567 - 60 €162,296 2015 Turku Koy Vantaan Koetilankatu 890 - 108 €242,720 2015 Vantaa Koy Espoon Tikasmäentie 912 - 108 €235,801 2015 Espoo Koy Kangasalan Mäntyveräjäntie 561 - 72 €156,120 2015 Kangasala Koy Ylöjärven Työväentalontie 707 - 84 €174,291 2015 Ylöjärvi Koy Vantaan Vuohirinne 896 - 108 €227,737 2016 Vantaa Koy Porvoon Vanha Kuninkaantie 670 - 84 €174,495 2016 Porvoo Koy Espoon Meriviitantie 769 - 96 €203,880 2016 Espoo Koy Vantaan Punakiventie 484 - 58 €136,269 2016 Vantaa Koy Espoon Vuoripirtintie 472 - 54 €120,493 2016 Espoo Koy Kirkkonummen Kotitontunkuja 565 - 72 €157,674 2017 Kirkkonummi Koy Tornion Torpin Rinnakkaiskatu 635 - 72 €141,481 2017 Tornio Koy Lahden Jahtikatu 894 - 72 €269,727 2018 Lahti Koy Iisalmen Petter Kumpulaisentie 644 - 72 €149,118 2018 Iisalmi As Oy Oulun Figuuri 330 - 41 €70,837 2018 Oulu As Oy Kangasalan Freesia 252 - 35 €58,044 2018 Kangasala Tampere Sisunaukio (childcare) 703 - 70 €131,801 2022 Tampere Esperi 10,893 263 - €2,471,674 Koy Loviisan Mannerheiminkatu 1,133 29 - €247,058 2015 Loviisa Koy Kajaanin Menninkäisentie 1,178 30 - €348,264 2016 Kajaani Koy Iisalmen Kangaslammintie 802 20 - €200,374 2018 Iisalmi Kuopio Torpankatu 1,727 47 - €336,540 2024 Kuopio Sotkamo Härkökivenkatu 837 22 - €168,336 2024 Sotkamo Seinäjoki Kutojankatu 5,217 115 - €1,171,102 2018 Seinäjoki Kristillinen koulu 7,915 - 717 €1,758,316 Koy Järvenpään Yliopettajankatu 1,784 - 180 €351,410 2020 Järvenpää Koy Espoon Matinkartanontie 6,131 - 537 €1,406,906 2021 Espoo Ikifit 8,046 194 - €1,744,822 Koy Kangasalan Hilmanhovi 995 30 - €234,396 2009 Kangasala Turun Malin Trällinkuja 1,923 50 - €462,686 2022 Turku Kerava Pianonsoittajankatu 2,201 57 - €489,060 2024 Kerava Koy Tampereen Sisunaukio (elderly care) 2,927 57 - €558,680 2022 Tampere Multiple tenants 6,554 95 - €1,562,710 Koy Euran Käräjämäentie 2,400 42 - €326,660 2018 Eura Vantaa Asolantie 4,154 53 - €1,236,050 2012 Vantaa Rinnekoti 4,973 103 - €950,744 Koy Turun Lemmontie 926 21 - €187,240 2021 Turku Oulu Ukkoherrantie A 1,073 21 - €184,439 2021 Oulu Jyväskylä Haukankaari 1,232 26 - €241,505 2022 Jyväskylä Hollola Kulmatie 690 14 - €139,560 2024 Hollola Nokia Tähtisumunkatu 1,052 21 - €198,000 2023 Nokia Nonna Group 4,014 110 - €817,008 Oulu Vaarapiha 4,014 110 - €817,008 2023 Oulu Helsingin Ensikoti 3,962 32 - €785,340 Helsinki Ensikodintie 3,962 32 - €785,340 2023 Helsinki AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 220 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 27 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location KVPS 3,066 59 - €668,608 Koy Jyväskylän Palstatie 825 15 - €165,514 2019 Jyväskylä Koy Lahden keva makarantie 791 15 - €173,726 2020 Lahti Koy Helsinin Pakarituvantie (disabled care) 1,450 29 - €329,368 2022 Helsinki Sentica 2,642 - 318 €635,111 Koy Raision Tenavakatu 622 - 75 €157,944 2013 Raisio Koy Maskun Ruskontie 622 - 75 €151,336 2014 Masku Koy Maskun Ruskontie (extension) 579 - 72 €142,158 2018 Masku Koy Paimion Mäkiläntie 820 - 96 €183,673 2018 Paimio Suomen Kristilliset Hoivakodit 2,411 57 - €529,731 Koy Kajaani Uitontie 1,178 27 - €266,331 2021 Kajaani Rovaniemi Gardininkuja (extension) 1,233 30 - €263,400 2024 Rovaniemi Sospro 2,454 41 - €528,853 Koy Janakkalan Kekanahontie 1,457 27 - €313,823 2019 Janakkala Salo Linnankoskentie 997 14 - €215,030 2024 Salo Aspa 2,433 70 - €485,134 KEVA Lohja Porapojankuja 774 15 - €144,524 2021 Lohja Loimaan Villa Inno 1,093 23 - €207,416 2019 Loimaa Kouvolan Oiva 566 32 - €133,194 2019 Kouvola Hovi Group 1,978 32 - €393,506 Nokia Kivimiehenkatu 1,978 32 - €393,506 2012 Nokia Musiikkikoulu Rauhala 1,609 - 195 €385,221 Koy Laukaan Hytösenkuja 730 - 87 €192,250 2015 Laukaa Koy Laukaan Saratie 879 - 108 €192,971 2018 Laukaa Peikkometsä 1,671 - 180 €381,108 Koy Lahden Kurenniityntie 659 - 72 €166,704 2020 Villahde Espoo Palstalaisentie 1,012 - 108 €214,404 2024 Espoo Pohjanmaan hyvinvointialue 1,425 35 - €348,918 Vaasa Mäkikaivontie 1,425 35 - €348,918 2010 Vaasa Peurunka 1,086 22 - €323,930 Laukaa Peurungantie 1,086 22 - €323,930 2020 Laukaa Pääkaupungin turvakoti 1,018 14 - €322,899 Koy Helsingin Työnjohtajankadun Seppä 3 1,018 14 - €322,899 2021 Helsinki Tampereen ensija turvakoti 950 18 - €321,317 Tampere Haiharansuu 950 18 - €321,317 2022 Tampere Paltan Palveluasunnot 1,507 24 54 €317,986 Koy Turun Paltankatu 1,507 24 54 €317,986 2019 Turku Pihlajantertut 1,613 33 - €294,454 Espoo Rajamännynahde 1,613 33 - €294,454 2002 Espoo Rebekan Hoitokoti 1,222 30 - €287,464 Koy Iisalmen Vemmelkuja 1,222 30 - €287,464 2019 Iisalmi Huhtihovi 1,199 30 - €281,835 Salo Papinkuja 1,199 30 - €281,835 2021 Salo Sotehotellit 1,521 32 - €277,919 Koy Ulvilan Kulmalantie 1,521 32 - €277,919 2020 Ulvila Validia 1,053 17 - €265,235 Koy Kuusankosken Keva 1,053 17 - €265,235 2021 Kouvula Kehitysvammatuki 57ry 1,395 24 - €264,672 Helsinki Landbontie 1,395 24 - €264,672 2024 Helsinki AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 221 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 28 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Priimi 1,157 - 142 €262,699 Koy Kuopio Amerikanraitti (+extension) 1,157 - 142 €262,699 2021 Kuopio K-P Hoitopalvelu 911 25 - €256,358 Koy Kokkolan Vanha Ouluntie 911 25 - €256,358 2017 Kokkola Siriuspäiväkodit 985 - 108 €247,781 Koy Limingan Kauppakaari 564 - 72 €149,935 2013 Tupos Koy Oulunsalon Vihannestie 421 - 36 €97,846 2021 Oulu Dagmaaria 1,199 32 - €245,375 Koy Porin Kerhotie 1,199 32 - €245,375 2021 Pori Stafiko 1,180 30 - €241,021 Hämeenlinna Kampuskaarre 1,180 30 - €241,021 2021 Hämeenlinna Palvelukoti Kotipetäjä 1,106 27 - €230,842 Koy Rovaniemen Rakkakiventie 1,106 27 - €230,842 2023 Rovaniemi Förkkeli 1,096 16 - €230,397 Oulun Maininki 1,096 16 - €230,397 2017 Oulu Vantaan Turvakoti 844 14 - €218,422 Koy Vantaan Koivukylän Puistotie 844 14 - €218,422 2019 Vantaa Autismisäätiö 1,042 12 - €217,557 Koy Kotka Särmääjänkatu 1,042 12 - €217,557 2021 Kotka Keusote (wellbeing county) 800 16 - €211,414 Järvenpää Uudenmaantie 800 16 - €211,414 2024 Järvenpää Liiku 1,302 - - €201,552 Oulu Satamatie 34 1,302 - - €201,552 2024 Oulu Lapin Turkoosi 960 - 120 €195,296 Koy Rovaniemen Muonakuja 960 - 120 €195,296 2020 Rovaniemi Oulun Englanninkielinen Leikkikoulu 820 - 115 €173,496 Oulu Upseerinkatu 820 - 115 €173,496 2023 Oulu Pihlajalinna 741 16 - €171,518 Koy Riihimäen Jyrätie 741 16 - €171,518 2019 Riihimäki Folkhälsan 783 - 84 €171,221 Koy Turun Teollisuuskatu 783 - 84 €171,221 2017 Turku Kotoisin 824 18 - €166,325 Koy Kempeleen Ihmemaantie 824 18 - €166,325 2021 Kempele Tuike 677 - 75 €160,206 Koy Iisalmen Eteläinen Puistoraitti 677 - 75 €160,206 2018 Iisalmi Humana 622 - 75 €151,939 Espoo Kuurinkallio (childcare) 622 - 75 €151,939 2024 Espoo Jaarlin Päiväkodit 565 - 72 €147,302 Koy Hämeenlinnan Vanha Alikartanontie 565 - 72 €147,302 2015 Hämeenlinna Hoitokoti Äänenniemen Helmi 624 15 - €148,903 Äänekoski Ääneniementie 624 15 - €148,903 2022 Äänekoski Aurinkosilta 660 16 - €136,320 Valkeakoski Juusontie 660 16 - €136,320 2023 Valkeakoski Kuntoukumoskoti Metsätähti 665 16 - €132,724 Tuusula Temmontie 665 16 - €132,724 2023 Tuusula Pikkutassu 646 - 72 €114,032 Koy Kajaanin Hoikankatu 646 - 72 €114,032 2019 Kajaani AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 222 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 29 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Sweden 1 23,973 164 1,130 €5,937,910 SEK 68,040,675 €5,732,903 SEK 65,691,572 Raoul Wallenbergskolan 5,055 - 520 SEK 12,474,500 Nynäshamn Källberga 5,055 - 520 SEK 12,474,500 2024 Nynäshamn Attendo 2 3,128 36 - SEK 9,827,322 Gråmunkehöga 3:2 494 6 - SEK 1,643,393 2020 Uppsala Vallby 28:2 494 6 - SEK 1,638,854 2021 Tierp Almungeberg 1:21 535 6 - SEK 1,585,021 2018 Uppsala Hässlinge 2:3 1 535 6 - SEK 1,610,321 2018 Enköping Hässlinge 2:3 2 535 6 - SEK 1,679,910 2020 Enköping Almungeberg 1:22 535 6 - SEK 1,669,824 2021 Uppsala Ambea 2,807 36 - SEK 8,275,792 Emmekalv 4:325 540 6 - SEK 1,706,933 2019 Oskarshamn Steglitsan 2 800 12 - SEK 2,434,654 2020 Växjö Saga 2 932 12 - SEK 2,434,654 2021 Växjö Singö 10:2 535 6 - SEK 1,699,551 2023 Österåker Kunskapsförskolan 2,244 - 250 SEK 6,412,099 Östhamra 1:52 1,158 - 125 SEK 3,329,053 2020 Norrtälje Paradiset 2 1,086 - 125 SEK 3,083,046 2020 Älmhult Humana 1,610 18 - SEK 5,039,731 Nyby 3:68 540 6 - SEK 1,679,910 2019 Laholm Hovsta Gryt 7:2 535 6 - SEK 1,679,912 2019 Örebro Törsjö 3:204 535 6 - SEK 1,679,909 2021 Örebro Frösunda Omsorg 1,668 18 - SEK 4,693,777 Bälinge Lövsta 9:19 540 6 - SEK 1,566,222 2012 Uppsala Sunnersta 120:2 & 120:4 593 6 - SEK 1,566,222 2013 Uppsala Bälinge Lövsta 10:140 535 6 - SEK 1,561,333 2013 Uppsala British mini 1,499 - 140 SEK 4,171,673 Mesta 6:56 1,499 - 140 SEK 4,171,673 2020 Eskilstuna Mo Gård 1,075 12 0 SEK 3,340,773 Anderbäck 1:60 540 6 0 SEK 1,670,949 2020 Nyköping Bergshammar Ekeby 6:66 535 6 0 SEK 1,669,825 2023 Nyköping TP 1,097 - 120 SEK 2,843,455 Kalleberga 8:269 1,097 - 120 SEK 2,843,455 2021 Kallinge Norlandia 886 - 100 SEK 2,743,572 Eds Prästgård 1:115 886 - 100 SEK 2,743,572 2021 Upplands Väsby Multiple tenants 832 14 - SEK 1,888,830 Borggård 1:553 832 14 - SEK 1,888,830 2015 Staffanstorp Ersta Diakonisällskap 535 6 - SEK 1,731,668 Västlunda 2:12 535 6 - SEK 1,731,668 2020 Vallentuna Serigmo Care Kås 500 6 - SEK 1,653,094 Fanna 24:19 500 6 - SEK 1,653,094 2022 Enköping Caritas Fastigheter AB 494 6 - SEK 1,643,388 Heby 3:17 494 6 - SEK 1,643,388 2020 Heby City of Uppsala 543 6 - SEK 1,301,000 Norby 31:78 543 6 - SEK 1,301,000 2024 Uppsala 1. The entire Swedish portfolio has been divested in the first quarter of 2025. Amounts in SEK were converted into EUR based on the exchange rate of 31 December 2024 (11.45817 EUR/SEK). 2. Formerly known as Olivia Omsorg. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 223 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 30 Total surface (m²) Residents Children Contractual rents Estimated rental value (ERV) Year of build / renovation Location Ireland 111,796 2,201 - €23,861,600 €23,205,400 Bartra Healthcare 28,859 612 - €8,812,672 Loughshinny Nursing Home 5,649 123 - €1,517,558 2019 Dublin Northwood Nursing Home 5,074 118 - €1,468,996 2020 Dublin Beaumont Lodge 10,395 221 - €4,062,305 2020 Dublin Clondalkin Nursing Home 7,741 150 - €1,763,813 2023 Dublin Virtue 38,272 696 - €6,613,717 Brìdhaven 7,299 184 - €1,574,255 1989 Mallow Waterford 3,888 64 - €584,798 2018 Waterford New Ross 3,200 62 - €420,147 2018 New Ross Bunclody 5,590 62 - €391,758 2018 Bunclody Killerig 4,800 45 - €193,040 2016 Carlow Altadore 3,340 66 - €1,071,901 2015 (2024) Glenageary Dublin Stepaside 6,063 124 - €1,691,288 2024 Dublin Craddock House 3,917 89 - €686,530 2017 Craddock Silver Stream Healthcare 15,965 346 - €2,964,100 Dundalk Nursing Home 6,002 130 - €1,120,511 2022 Dundalk Duleek Nursing Home 5,498 120 - €1,037,279 2022 Duleek Riverstick Nursing Home 4,465 96 - €806,310 2022 Riverstick Mowlam Healthcare 14,717 273 - €2,384,194 Tramore Coast Road 5,596 93 - €805,564 2023 Tramore Kilbarry Nursing Home 4,579 90 - €788,103 2023 Kilbarry Kilkenny Nursing Home 4,542 90 - €790,527 2023 Kilkenny Coolmine Caring Services Group 8,890 182 - €2,176,253 Milbrook Manor 3,377 85 - €1,079,544 2001 (2023) Saggart St.Doolagh’s 5,513 97 - €1,096,709 2023 Balgriffin Grace Healthcare 5,093 92 - €910,665 Dunshaughlin Business Park 5,093 92 - €910,665 2023 Dunshaughlin Investment properties in development 1 31,614 586 - €281,761 - Germany 10,564 161 - €118,800 - Specht Gruppe 10,564 161 - €118,800 Seniorenquartier Gummersbach 10,564 161 - €118,800 PROJECT Gummersbach Ireland 5,572 105 - €38,700 - Coolmine Caring Services Group 5,572 105 - €38,700 Sligo Finisklin Road 5,572 105 - €38,700 PROJECT Sligo Spain 15,478 320 - €124,261 - Neurocare Promociones 15,478 320 - €124,261 Tomares Miró 8,449 180 - €69,136 PROJECT Tomares Zamora Av. De Valladolid 7,029 140 - €55,125 PROJECT Zamora Total investment properties 2,229,804 35,902 13,457 €357,079,969 €354,314,695 1. Although still under construction, these sites already generate limited rental income. This explains why they are included in this table and why the estimated rental value is not mentioned. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 224 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 31 3. External verification 3.1 Valuation experts’ report 1 Aedifica assigned to each of the eleven valuation experts the task of determining the fair value (from which the investment value is derived 2 ) of one part of its portfolio of investment properties. Assessments are established taking into account the remarks and definitions contained in the reports and following the guidelines of the International Valuation Standards issued by the ‘IVSC’. Each of the eleven valuation experts has confirmed that: • they acted individually as valuation expert and have a relevant and recognised qualification, as well as an ongoing experience for the location and the type of buildings they assessed; • their opinion of fair value was primarily derived using comparable recent market transactions on arm’s length terms; • the relevant properties were considered in the context of current leases and of all rights and obligations that these commitments entail; • they evaluated each entity individually; • that their assessment: - does not take into account a potential value that can be generated by offering the whole portfolio on the market; - does not take into account selling costs applicable to a specific transaction, such as brokerage fees or advertising; - is based on the inspection of real estate properties and information provided by Aedifica (i.e. rental status and surface area, sketches or plans, rental charges and property taxes related to the property, and compliance and pollution matters); and - is made under the assumption that no non-communicated piece of information is likely to affect the value of the property; • they assumed the information provided to them to be accurate and complete. Based on the eleven assessments, the consolidated fair value of the portfolio amounted to €6,144,128,274 3 as at 31 December 2024. The marketable investment properties 4 held by Aedifica group amounted to €6,035,484,788. Contractual rents amounted to €357,079,969 which corresponds to an initial rental yield of 5.92% compared to the fair value of marketable investment properties. The current occupancy rate amounts to 99.94%. Assuming that the marketable investment properties are 100% rented and that the current vacancy is let at market rent, contractual rent would amount to €357,296,927, i.e. an initial yield of 5.92% compared to the fair value of the marketable investment properties. The above-mentioned amounts include the fair values and contractual rents of the UK assets in pounds sterling and converted into euros as well as the assets located in Sweden in Swedish Krona converted into euros using the exchange rates as at 31 December 2024 (0.82735 EUR/GBP and 11.45817 EUR/SEK). As at 31 December 2024: • the consolidated fair value of the assets located in Belgium amounted to €1,258,324,242; including €1,254,965,913 for marketable investment properties. Contractual rents amounted to €71,718,969 which corresponds to an initial yield of 5.7% to the fair value of the marketable investment properties. • the consolidated fair value of the assets located in Germany amounted to €1,186,488,345; including €1,176,156,000 for marketable investment properties. Contractual rents amounted to €64,225,193 which corresponds to an initial yield of 5.5% to the fair value of the marketable investment properties. • the consolidated fair value of the assets located in the Netherlands amounted to €673,240,000; including €673,240,000 for marketable investment properties. Contractual rents amounted to €41,173,107 which corresponds to an initial yield of 6.1% to the fair value of the marketable investment properties. • the consolidated fair value of the assets located in the UK amounted to £1,074,513,500; including £1,058,088,652 for marketable investment properties. Contractual rents amounted to £67,611,719 which corresponds to an initial yield of 6.4% to the fair value of the marketable investment properties. 1. The expert report was reproduced with the agreement of Cushman & Wakefield Belgium NV/SA, Stadim BV/SRL, Savills Advisory Services GmbH & Co. KG, C&W (UK) LLP German Branch, Cushman & Wakefield Netherlands BV, Capital Value Taxaties BV, Knight Frank LLP, REnium Advisors Oy, Cushman & Wakefield Sweden AB, CBRE Unlimited Company and Jones Lang LaSalle España SA. The sum of all elements of the portfolio individually assessed by the abovementioned valuation experts constitutes Aedifica’s whole consolidated portfolio. 2. ‘Investment value’ is defined by Aedifica as the value assessed by a valuation expert, of which transfer costs are not deducted (also known as ‘gross capital value’). 3. The abovementioned portfolio is broken down in two lines on the balance sheet (lines ‘I.C. Investment properties’ and ‘II.A. Assets classified as held for sale’). 4. In this report, ‘marketable investment properties’ also include assets classified as held for sale, while excluding development projects and land reserve. Marketable investment properties are hence completed properties that are let or lettable. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 225 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 32 • the consolidated fair value of the assets located in Finland amounted to €1,170,470,000; including €1,131,710,000 for marketable investment properties. Contractual rents amounted to €68,279,297 which corresponds to an initial yield of 6.0% to the fair value of the marketable investment properties. • the consolidated fair value of the assets located in Sweden amounted to SEK 1,073,000,000; including SEK 1,073,000,000 for marketable investment properties. Contractual rents amounted to SEK 68,040,675 which corresponds to an initial yield of 6.3% to the fair value of the marketable investment properties. • the consolidated fair value of the assets located in Ireland amounted to €436,375,000; including €424,759,552 for marketable investment properties. Contractual rents amounted to €23,900,300 which corresponds to an initial yield of 5.6% to the fair value of the marketable investment properties. • the consolidated fair value of the assets located in Spain amounted to €26,847,000; including €2,122,021 for marketable investment properties. Contractual rents amounted to €124,261 which corresponds to an initial yield of 5.9% to the fair value of the marketable investment properties. In the context of a reporting in compliance with the International Financial Reporting Standards, our evaluations reflect the fair value. The fair value is defined by IAS 40 and IFRS 13 as ‘the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date’. The IVSC considers that the definition of fair value under IAS 40 and IFRS 13 is generally consistent with market value. Opinions of the valuation experts 1 Valuation expert Fair value of valued assets of portfolio as at 31 December 2024 Investment value (before deduction of transfer costs 2 ) BE Cushman & Wakefield Belgium NV/SA Gregory Lamarche MRICS €650,814,500 €667,348,500 BE Stadim BV/SRL Nicolas Janssens €607,509,742 €622,816,126 DE Savills Advisory Services GmbH & Co. KG Thomas Berger MRICS €601,528,345 €646,102,395 DE C&W (UK) LLP German Branch Peter Fleischmann MRICS €584,960,000 €619,530,000 NL Cushman & Wakefield Netherlands BV Fabian Pouwelse MRICS €557,420,000 €614,620,000 NL Capital Value Taxaties BV Rik Rozendal & Ian Ijnzen €115,820,000 €128,080,000 UK Knight Frank LLP Kieren Cole MRICS & Andrew Sage MRICS £1,074,513,500 (€1,298,742,977 3 ) £1,146,134,654 (€1,385,310,034 3 ) FI REnium Advisors Oy Ville Suominen MRICS €1,170,470,000 €1,193,767,750 SE Cushman & Wakefield Sweden AB Mårten Lizén SEK 1,073,000,000 (€93,640,710 4 ) SEK 1,118,610,000 (€97,621,095 4 ) IE CBRE Unlimited Company Janice Riordan €436,375,000 €479,847,760 ES Jones Lang LaSalle España SA Lourdes Pérez Carrasco MRICS & Felix Painchaud MRICS €26,847,000 €27,416,438 Total €6,144,128,274 €6,482,460,098 of which: Marketable investment properties €5,935,278,253 €6,263,401,795 Development projects €95,676,812 €99,580,029 Assets classified as held for sale €100,206,535 €105,997,709 Land reserve €12,966,674 €13,480,565 1. The valuation expert values only a part of Aedifica’s portfolio and does not take responsibility for the valuation of the portfolio as a whole. The valuation expert therefore signs only for the accuracy of the figures of the assets he values. No further liability for any other valuation expert will be accepted. 2. In this context, the transfer costs require adaptation to the market conditions. Based on the analysis of a large number of transactions in Belgium, the Belgian experts acting at the request of publicly traded real estate companies, reunited in a working group, came to the following conclusion: given the various ways to transfer property in Belgium, the weighted average of the transfer costs was estimated at 2.5%, for investment properties with a value in excess of €2.5 million. The investment value corresponds therefore to the fair value plus 2.5% of transfer costs. The fair value is also calculated by dividing the investment value by 1.025. Properties in Belgium below the threshold of €2.5 million remain subject to usual transfer costs (12.0% or 12.5% depending on their location). Their fair value corresponds thus to the value excluding transfer costs. Assets located in Germany, the Netherlands, the United Kingdom, Finland, Sweden, Ireland and Spain are not concerned by this footnote. In the assessment of their investment value, the usual local transfer costs and professional fees are taken into account. 3. Based on the exchange rate of 0.82735 EUR/GBP as at 31 December 2024. 4. Based on the exchange rate of 11.45817 EUR/SEK as at 31 December 2024. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 226 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Besloten Vennootschap Société à responsabilité limitée RPR Brussel - RPM Bruxelles – BTW–TVA BE 0446.334.711 – IBAN N° BE71 2100 9059 0069 * handelend in naam van een vennootschap/agissant au nom d’une société A member firm of Ernst & Young Global Limited EY Bedrijfsrevisoren EY Réviseurs d’Entreprises Kouterveldstraat 7B 001 B -1831 Diegem Tel: +32 (0)2 774 91 11 ey.com Independent auditor’s report to the general meeting of Aedifica SA for the year ended 31 December 2024 In the context of the statutory audit of the Consolidated Financial Statements) of Aedifica SA (the “Company”) and its subsidiaries (together the “Group”), we report to you as statutory auditor. This report includes our opinion on the consolidated balance sheet as at 31 December 2024, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated cash flow statement for the year ended 31 December 2024 and the disclosures including material accounting policy information (all elements together the “Consolidated Financial Statements”) as well as our report on other legal and regulatory requirements. These two reports are considered one report and are inseparable . We have been appointed as statutory auditor by the shareholders’ meeting of 14 May 2024, in accordance with the proposition by the Board of Directors following recommendation of the Audit Committee. Our mandate expires at the shareholders’ meeting that will deliberate on the Consolidated Financial Statements for the year ending 31 December 2026. We performed the audit of the Consolidated Financial Statements of the Group during 13 consecutive years. Report on the audit of the Consolidated Financial Statements Unqualified opinion We have audited the Consolidated Financial Statements of Aedifica SA, that comprise of the consolidated balance sheet on 31 December 2024, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated cash flow statement of the year and the disclosures including, material accounting policy information, which show a consolidated balance sheet total of € 6.463.824 thousand and of which the consolidated income statement shows a profit for the year of € 205.091 thousand. In our opinion, the Consolidated Financial Statements give a true and fair view of the consolidated net equity and financial position as at 31 December 2024, and of its consolidated results for the year then ended, prepared in accordance with the IFRS Accounting Standards as adopted by the European Union and with applicable legal and regulatory requirements in Belgium. Basis for the unqualified opinion We conducted our audit in accordance with International Standards on Auditing (“ISA’s”) applicable in Belgium. In addition, we have applied the ISA's approved by the International Auditing and Assurance Standards Board (“IAASB”) that apply at the current year-end date and have not yet been approved at national level. Our responsibilities under those standards are further described in the “Our responsibilities for the audit of the Consolidated Financial Statements” section of our report. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 227 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Audit report dated 26 March 2025 on the Consolidated Financial Statements of Aedifica SA as of and for the year ended 31 December 2024 (continued) 2 We have complied with all ethical requirements that are relevant to our audit of the Consolidated Financial Statements in Belgium, including those with respect to independence. We have obtained from the Board of Directors and the officials of the Company the explanations and information necessary for the performance of our audit and we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated Financial Statements of the current reporting period. These matters were addressed in the context of our audit of the Consolidated Financial Statements as a whole and in forming our opinion thereon, and consequently we do not provide a separate opinion on these matters. Valuation Investment Properties Description of the key audit matter Investment property amounts to a significant part (95%) of the assets of the Group. In accordance with the accounting policies and IAS 40 standard “Investment property”, investment property is measured at fair value, and the changes in the fair value of investment property are recognized in the income statement. The fair value of investment properties belongs to the level 3 in the fair value hierarchy as defined within the IFRS 13 standard “Fair Value Measurement”. Some assumptions used for valuation purposes are based on data that can be observed only to a limited extent (discount rate, future occupancy rate, …) and therefore require judgement from management. The audit risk appears in the valuation of these investment properties and is therefore considered a Key Audit Matter. Summary of the procedures performed The Group uses external experts to make an estimate of the fair value of its buildings. We have assessed the valuation reports of the external experts (with the support of our internal valuation experts). More precisely, we have: • assessed the objectivity, the independence and the competence of the external experts, • tested the integrity of source data (contractual rentals, maturities of the rental contracts, …) used in their calculations and reconciled with underlying contracts, for a sample; • assessed the models and assumptions used in their reports (discount rates, future occupancy rates, …) for a sample; Finally, we have assessed the appropriateness of the information on the fair value of the investment properties disclosed in note 21 of the Consolidated Financial Statements. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 228 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Audit report dated 26 March 2025 on the Consolidated Financial Statements of Aedifica SA as of and for the year ended 31 December 2024 (continued) 3 Valuation Financial Instruments Description of the key audit matter The Group uses interest rate swaps (IRS) and options (CAPs) to hedge its interest rate risk on its variable rate debts and has concluded forward exchange rate contracts during the financial year to hedge the risk of exchange rate fluctuations. The measurement of the derivatives at fair value is an important source of volatility of the result and/or the shareholders’ equity. In accordance with IFRS 9 “Financial Instruments: Recognition and Measurement”, these derivatives are valued at fair value (considered to belong to the level 2 in the fair value hierarchy defined by IFRS 13 “Fair Value Measurement”). The changes in fair value are recognized in the income statements except for some IRS for which the Group applies hedge accounting (“cash-flow hedging”), which allows to classify most of the changes in fair value in the caption of the shareholders’ equity (“Reserve for the balance of changes in fair value of authorized hedging instruments qualifying for hedge accounting as defined under IFRS”). The audit risk appears on the one hand in the complexities involved in determining the fair value of these derivatives and on the other hand in the correct application of hedge accounting for the IRS contracts that were classified by the Group as cash flow hedges and are therefore a key audit matter. Summary of the procedures performed • We have compared the fair values of the derivatives with the values communicated by the counterparties and the credit risk adjustments calculated by an external specialist. We have assessed the most important assumptions and the calculations performed by this external specialist. • Regarding the correct application of hedge accounting, we have evaluated the effectiveness tests performed by the external specialist involved by the Group and we have compared the volume of derivatives subject to hedge accounting with the volume of the variable rate debts projected on the future accounting years in order to identify any potential over-hedging which could potentially jeopardize the application of hedge accounting. • Finally, we have assessed the appropriateness of the information on the financial instruments disclosed in note 32 of the Consolidated Financial Statements. Goodwill impairment Description of the key audit matter In January 2020, Aedifica acquired its Finnish subsidiary Hoivatilat resulting in a goodwill in Aedifica NV's Consolidated Financial Statements amounting to EUR 161,7 million. Aedifica recognized a goodwill impairment of EUR 30,2 million in 2024. In conformity with IAS 36 “Impairment of Assets”, the Group carries out impairment tests at least annually or more frequently if indicators of impairment are present. Management's assessment of potential impairments on this recorded goodwill is based on a comparison of the carrying value of the cash-generating units ("CGUs") to which goodwill has been allocated with the fair value less costs to sell of the CGUs. The assessment is an estimation process that requires estimates and judgments by management of the assumptions used, including the determination of Hoivatilat's future cash flows as well as the determination of the discount rate and indexation rate used, which are complex and subjective. Changes in these assumptions could lead to material changes in the estimated fair value less cost to sell, which has a potential impact on potential impairments to be recorded at the level of goodwill and are therefore considered as a Key Audit Matter. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 229 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Audit report dated 26 March 2025 on the Consolidated Financial Statements of Aedifica SA as of and for the year ended 31 December 2024 (continued) 4 Summary of the procedures performed • We have obtained an understanding of the process for management's identification of impairment indicators; • We have assessed the valuation methods used by management to determine the fair value less cost to sell of Hoivatilat as well as the reasonableness of the key assumptions (discount rate, indexation rate and future cash flows), with the help of our internal valuation specialists; • We have assessed the reasonableness of future cash flows included in the goodwill valuation test based on historical results and the available business plan; • We have verified that those future cash flows are based on business plans approved by the Board of Directors; • We have tested the mathematical accuracy of valuation models and we have assessed management's goodwill impairment decision; • We have assessed the accuracy of management's sensitivity analysis; • we reconciled the accounting entries related to goodwill impairment with the results of the impairment test; • We have assessed the adequacy and completeness of the information included in note 19 of the Consolidated Financial Statements. Responsibilities of the Board of Directors for the preparation of the Consolidated Financial Statements The Board of Directors is responsible for the preparation of the Consolidated Financial Statements that give a true and fair view in accordance with the IFRS Accounting Standards and with applicable legal and regulatory requirements in Belgium and for such internal controls relevant to the preparation of the Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of Consolidated Financial Statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, and provide, if applicable, information on matters impacting going concern, The Board of Directors should prepare the financial statements using the going concern basis of accounting, unless the Board of Directors either intends to liquidate the Company or to cease business operations, or has no realistic alternative but to do so. Our responsibilities for the audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance whether the Consolidated Financial Statements are free from material misstatement, whether due to fraud or error, and to express an opinion on these Consolidated Financial Statements based on our audit. Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with the ISA’s will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Statements. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 230 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Audit report dated 26 March 2025 on the Consolidated Financial Statements of Aedifica SA as of and for the year ended 31 December 2024 (continued) 5 In performing our audit, we comply with the legal, regulatory and normative framework that applies to the audit of the Consolidated Financial Statements in Belgium. However, a statutory audit does not provide assurance about the future viability of the Company and the Group, nor about the efficiency or effectiveness with which the board of directors has taken or will undertake the Company's and the Group’s business operations. Our responsibilities with regards to the going concern assumption used by the board of directors are described below. As part of an audit in accordance with ISA’s, we exercise professional judgment and we maintain professional skepticism throughout the audit. We also perform the following tasks: • identification and assessment of the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error, the planning and execution of audit procedures to respond to these risks and obtain audit evidence which is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting material misstatements resulting from fraud is higher than when such misstatements result from errors, since fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; • obtaining insight in the system of internal controls that are relevant for the audit and with the objective to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control; • evaluating the selected and applied accounting policies, and evaluating the reasonability of the accounting estimates and related disclosures made by the Board of Directors as well as the underlying information given by the Board of Directors; • conclude on the appropriateness of the Board of Directors’ use of the going-concern basis of accounting, and based on the audit evidence obtained, whether or not a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s or Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going-concern; • evaluating the overall presentation, structure and content of the Consolidated Financial Statements, and evaluating whether the Consolidated Financial Statements reflect a true and fair view of the underlying transactions and events. We communicate with the Audit Committee within the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the audits of the subsidiaries. In this respect we have determined the nature and extent of the audit procedures to be carried out for group entities. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 231 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Audit report dated 26 March 2025 on the Consolidated Financial Statements of Aedifica SA as of and for the year ended 31 December 2024 (continued) 6 We provide the Audit Committee within the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Audit Committee within the Board of Directors, we determine those matters that were of most significance in the audit of the Consolidated Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our report, unless the law or regulations prohibit this. Report on other legal and regulatory requirements Responsibilities of the Board of Directors The Board of Directors is responsible for the preparation and the content of the Board of Directors’ report on the Consolidated Financial Statements, and other information included in the annual report. Responsibilities of the auditor In the context of our mandate and in accordance with the additional standard to the ISA’s applicable in Belgium, it is our responsibility to verify, in all material respects, the Board of Directors’ report on the Consolidated Financial Statements, and other information included in the annual report, as well as to report on these matters. Aspects relating to Board of Directors’ report and other information included in the annual report In our opinion, after carrying out specific procedures on the Board of Directors’ report, the Board of Directors’ report is consistent with the Consolidated Financial Statements and has been prepared in accordance with article 3:32 of the Code of companies and associations. In the context of our audit of the Consolidated Financial Statements, we are also responsible to consider whether, based on the information that we became aware of during the performance of our audit, the Board of Directors’ report and other information included in the annual report, being: • Summary of the consolidated financial statements of 31 December 2024 p.80-85 • Reporting according to EPRA BPR standards p.195-206 contain any material inconsistencies or contains information that is inaccurate or otherwise misleading. In light of the work performed, there are no material inconsistencies to be reported. Independence matters Our audit firm and our network have not performed any services that are not compatible with the audit of the Consolidated Financial Statements and have remained independent of the Company during the course of our mandate. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 232 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Audit report dated 26 March 2025 on the Consolidated Financial Statements of Aedifica SA as of and for the year ended 31 December 2024 (continued) 7 The fees related to additional services which are compatible with the audit of the Consolidated Financial Statements as referred to in article 3:65 of the Code of companies and associations were duly itemized and valued in the notes to the Consolidated Financial Statements. European single electronic format (“ESEF”) In accordance with the standard on the audit of the conformity of the financial statements with the European single electronic format (hereinafter "ESEF"), we have carried out the audit of the compliance of the ESEF format with the regulatory technical standards set by the European Delegated Regulation No 2019/815 of 17 December 2018 (hereinafter: "Delegated Regulation"). The board of directors is responsible for the preparation, in accordance with the ESEF requirements, of the consolidated financial statements in the form of an electronic file in ESEF format (hereinafter 'the digital consolidated financial statements') included in the annual financial report available on the portal of the FSMA (https://www.fsma.be/en/stori). It is our responsibility to obtain sufficient and appropriate supporting evidence to conclude that the format and markup language of the digital consolidated financial statements comply in all material respects with the ESEF requirements under the Delegated Regulation. Based on the work performed by us, we conclude that the format and tagging of information in the digital consolidated financial statements of Aedifica SA per 31 December 2024 included in the annual financial report available on the portal of the FSMA (https://www.fsma.be/en/stori) are, in all material respects, in accordance with the ESEF requirements under the Delegated Regulation. Other communications • This report is consistent with our supplementary declaration to the Audit Committee as specified in article 11 of the regulation (EU) n r. 537/2014. Brussels, 26 March 2025 EY Bedrijfsrevisoren BV Statutory auditor Represented by Christophe Boschmans * Partner Acting on behalf of a BV/SRL 25CBO0128 AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 233 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Besloten Vennootschap Société à responsabilité limitée RPR Brussel - RPM Bruxelles – BTW–TVA BE 0446.334.711 – IBAN N° BE71 2100 9059 0069 * handelend in naam van een vennootschap/agissant au nom d’une société A member firm of Ernst & Young Global Limited EY Bedrijfsrevisoren EY Réviseurs d’Entreprises Kouterveldstraat 7B 001 B -1831 Diegem Tel: +32 (0)2 774 91 11 ey.com Statutory auditor’s report on the consolidated financial forecasts of Aedifica nv/sa As a statutory auditor of Aedifica SA (the “company”), we have, upon request by the Board of Directors, prepared the present report on the forecasts of the EPRA earnings per share (as defined in the report “Best Practices Recommendations (BPR) Guidelines” of September 2024 of the European Public Real Estate Association) for the 12 months periods ending 31 December 2025 (the “Forecast”) of Aedifica nv/sa, included in Chapter 2 “Outlook for 2025” of the Caption “Financial review” of Aedifica’s 2024 Annual Financial Report as approved by the board of directors of the company on 18 February 2025. The assumptions included in Chapter 2 “Outlook for 2025” of the Caption “Financial review” of Aedifica’s Annual Financial Report result in the following forecasts of the EPRA earnings per share for the accounting year ending 2025: EPRA earnings, per share: € 5,01 Board of Director’s responsibility It is the Company’s board of directors’ responsibility to prepare the consolidated financial forecasts and the main assumptions upon which the Forecast is based. Auditor’s responsibility It is our responsibility to provide an opinion on the consolidated financial forecasts, prepared appropriately on the basis of the above assumptions. We are not required nor do we express an opinion on the possibility to achieve that result or on the assumptions underlying this Forecast. We performed our work in accordance with the auditing standards applicable in Belgium, as issued by the Institute of Registered Auditors (Institut des Réviseurs d’Entreprises/Instituut van de Bedrijfsrevisoren), including the related guidance of its research institute and the standard “International Standard on Assurance Engagements 3400” related to the examination of forecast information. Our work included an evaluation of the procedures undertaken by the Board of Directors in compiling the forecasts and procedures aimed at verifying the consistency of the methods used for the Forecast with the accounting policies normally adopted by Aedifica NV/SA. We planned and performed our work so as to obtain all the information and explanations that we considered necessary in order to provide us with reasonable assurance that the forecasts have been properly compiled on the basis stated. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 234 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Statutory auditor’s report of 26 March 2025 on the consolidated financial forecasts of Aedifica nv/sa Opinion We have examined the EPRA earnings per share of Aedifica NV/SA for the financial year 2025 in accordance with the International Standard on Assurance Engagements applicable to the examination of prospective financial information. Board of director’s is responsible for the consolidated financial forecasts including the assumptions referenced above. In our opinion the forecast is properly prepared on the basis of the assumptions and is presented in accordance with the accounting policies applied by Aedifica NV/SA for the consolidated financial statements of 2024. Since the Forecast and the assumptions on which they are based relate to the future and may therefore be affected by unforeseen events, we can express no opinion as to whether the actual results reported will correspond to those shown in the forecasts. Any differences may be material. Brussels, 26 March 2025 EY Réviseurs d’Entreprises SRL Statutory auditor represented by Christophe Boschmans Partner * Acting on behalf of a SRL 25CBO0129 AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 235 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Besloten Vennootschap Société à responsabilité limitée RPR Brussel - RPM Bruxelles – BTW–TVA BE 0446.334.711 – IBAN N° BE71 2100 9059 0069 * handelend in naam van een vennootschap/agissant au nom d’une société A member firm of Ernst & Young Global Limited EY Bedrijfsrevisoren EY Réviseurs d’Entreprises Kouterveldstraat 7B 001 B -1831 Diegem Tel: +32 (0)2 774 91 11 ey.com Independent Auditor’s assurance report Introduction We were engaged by Aedifica nv to perform a limited assurance engagement in accordance with the International Standard on Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (“ISAE 3000 revised”), thereafter referred to as “the Engagement”, to report on (i) the use of proceeds for the issuances of green finance instruments included in part ‘Financial Review’, chapter 1.3.4 ‘Sustainable Finance Framework’ (Subject Matter 1), (ii) selected sustainability indicators as listed in Appendix 1 (“Subject Matter 2) , and (iii) the Company’s double materiality section (“Subject Matter 3”) as reported in the annual report of Aedifica (the “Report”) for the period from 1 January 2024 to 31 December 2024. Together Subject Matters 1, 2 and 3 are referred to in this report as ‘the Subject Matters”, and are specified in Appendix 1. Other than as described in the preceding paragraph, which sets out the scope of our engagement, we did not perform assurance procedures on the remaining sustainability indicators included in the Report, and accordingly, we do not express a conclusion on this information. Criteria applied by the Company In preparing the use of proceeds included the Sustainable Finance Framework section (‘Subject Matter 1) in the Report, Aedifica applied, in all material respects, the criteria of use of proceeds to Eligible Assets disclosed in section ‘Use of Proceeds’ of Aedifica’s Sustainable Finance Finance Framework (https://aedifica.eu/wp- content/uploads/2021/08/20210826-Aedifica-Sustainable- Finance-Framework.pdf) (hereafter “Use of Proceeds Criteria”). In preparing the sustainability indicators as listed in Appendix 1 (“Subject Matter 2”), Aedifica applied, in all material respects, the Guidelines for the Preparation of the Sustainability Report of the Global Reporting Initiative (GRI) Standard and own developed criteria. Together we will refer to these as the “KPI Criteria”. Finally, in preparing the double materiality section in the Report (Subject Matter 3), Aedifica applied, in all material respects, the principles of the European Sustainability Reporting Standards ESRS 1, General Requirement 3 “Double materiality as the basis for sustainability disclosures” (the “Double Materiality Criteria”. Together, the Use of Proceeds criteria, the KPI Criteria and the Double Materiality Criteria are referred to in this report as “the Criteria”. Aedifica’s responsibilities Aedifica is responsible for selecting the Criteria, and for presenting the Subject Matters in accordance with the Criteria, in all material respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate records and making estimates that are relevant to the preparation of the Subject Matters, such that it is free from material misstatement, whether due to fraud or error. EY’s responsibilities Our responsibility is to express a limited assurance conclusion on the Subject Matters, based on the evidence we obtained. We conducted our limited assurance engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (“ISAE 3000 revised”), issued by the International Auditing and Assurance Standards Board. A limited assurance engagement undertaken in accordance with ISAE 3000 revised involves assessing the suitability of the Company’s use of the Criteria as the basis for the preparation of the Subject Matter, assessing the risks of material misstatement whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the Subject Matter. A limited assurance engagement is more limited in scope than a reasonable assurance engagement in relation to the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. A limited assurance engagement consists of making inquiries, primarily of persons responsible for preparing the Subject Matter and related information and applying analytical and other appropriate procedures. A higher level of assurance, i.e. reasonable assurance, would have required more extensive procedures. Our limited assurance conclusion relates solely to the Subject Matters. Also, with respect to Subject Matter 1, it is not our responsibility to provide any form of assurance on: • The suitability of the Criteria in relation to the ICMA’s Green Bond Principles 2021 (“GBP”), APLMA/LMA/LSTA’s Green Loan Principles 2023 (“GLP”) and ICMA’s Social Bond Principles 2021 (“SBP") which was assessed by V.E. in the ‘Second Party Opinion’ published in August 2021 on https://aedifica.eu/wp- content/uploads/2021/08/20210830_V.E_SPO_Aedifica_VF_V 3.pdf • The management of the proceeds from the sustainable finance instruments prior to their allocation or the use of these proceeds after their allocation. Our Independence and Quality Control We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and have the required competencies and AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 236 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Independent Auditor’s assurance report Aedifica nv 2 experience to conduct this assurance engagement. Our firm applies International Standard on Quality Management 1, which requires us to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Description of procedures performed Procedures performed in a limited assurance engagement vary in nature and timing from and are less extensive than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. A limited assurance engagement consists of making enquiries, primarily of persons responsible for preparing the Subject Matter and related information and applying analytical and other appropriate procedures. Procedures performed, amongst others, included: • Obtaining an understanding of the reporting processes for the Subject Matters; • Interviewing management and relevant staff at corporate level responsible for consolidating and carrying out internal control procedures on the Subject Matters; • Interviewing relevant staff responsible for reporting the Subject Matters to the relevant staff at corporate level; • Evaluating the consistent application of the Criteria; • Obtaining internal and external documentation that reconciles with the Subject Matters; • Performing an analytical review of the data and trends in the Subject Matters at consolidated level as well, when deemed appropriate in the circumstances, at a disaggregated level; • Performing limited tests of details and tracing the input information to supporting invoices or other evidence; • Evaluating the overall presentation of the Subject Matters. Additional procedures performed relating to Subject Matter 3 included amongst others: • Assessing the stakeholder engagement and value chain mapping exercise performed by management in supporting the double materiality assessment; • Evaluating the materiality assessment performed by the Company by using the principles of financial materiality and impact materiality, including setting the materiality thresholds, resulting in the identification of material impacts, risks and opportunities (“IROs”); • Obtaining internal and external documentation that supports the identification of the material IROs which constitute the outcome of the double materiality assessment. For all three Subject Matters, we believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited assurance conclusion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that that the Subject Matters, included in the annual report of Aedifica for the period from 1 January 2024 to 31 December 2024, were not prepared, in all material respects, in accordance with the Criteria. Brussels, 26 March 2025 EY Réviseurs d’Entreprises SRL Represented by Christophe Boschmans Partner * Acting on behalf of a SRL 25CBO0130 AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 237 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION Independent Auditor’s assurance report Aedifica nv 3 Appendix 1 – Subject Matter Specification Subject Matter 1. Use of proceeds Part ‘Financial Review’, Chapter 1.3.4 Sustainable Finance Framework • Allocation of proceeds ( 2 tables) • Breakdown by use of proceeds category • Breakdown by geographical area • Breakdown of new financing vs. refinancing • Breakdown of eligible assets • Selection criteria Subject Matter 2. Selected KPIs Part ‘Partners’, Chapter 2.1. Operational Engagement • Leases with quality-of-care commitment Part ‘Business Review’, Chapter 2.3. Health & Wellbeing • Absenteeism Rate Part ‘Portfolio’, Chapter 2.5. Improving building certification • EPC coverage • Breakdown of EPC levels (2 tables) Subject Matter 3. Double Materiality Assessment Part ‘Our Approach to CSRD’, Chapter 2 DMA AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 238 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 45 4. Standing documents 4.1 General information 4.1.1 Company name (Article 1 of the Articles of Association) The legal form of this Company is that of a public limited liability company with the name ‘AEDIFICA’. The Company is a public regulated real estate company (‘Public RREC’ or ‘RREC’), subject to the Belgian Act of 12 May 2014 on regulated real estate companies, as amended from time to time (the ‘RREC Act’), whose shares are admitted to trading on a regulated market. The company name and all of the documents which it produces, contain the words ‘public regulated real estate company under Belgian law’, or ‘public RREC under Belgian law’ or ‘PRREC under Belgian law’, or are immediately followed by these words. The Company is subject to the RREC Act and to the Royal Decree of 13 July 2014 regulating real estate companies, as amended from time to time (the ‘RREC Royal Decree’) (the ‘RREC Act’ and the ‘RREC Royal Decree’ are hereafter together referred to as the ‘RREC Legislation’). 4.1.2 Registered office, e-mail address and website (Article 2 of the Articles of Association) The registered office is located at 1040 Brussels, Rue Belliard / Belliardstraat 40 (box 11). The Board of Directors is authorised to transfer the registered office within Belgium to the extent that such transfer does not require a change in the language of the Articles of Association to comply with the applicable language legislation. Such a decision does not require an amendment of the Articles of Association, unless the registered office of the Company is transferred to another Region. In the latter case the Board of Directors is authorised to decide on the amendment of the Articles of Association. If, as a result of the transfer of the registered office, the language of the Articles of Association has to be changed, only the general meeting can take this decision, taking into account the requirements for an amendment of the Articles of Association. The Company may establish administrative offices, branches or agencies, both in Belgium and abroad by means of a simple resolution of the Board of Directors. The Company can, in application of and within the limits of Article 2:31 of the Code of companies and associations, be contacted at the following e-mail address: [email protected]. The Board of Directors may change the Company’s e-mail address in accordance with the Code of companies and associations. The Company’s website is: www.aedifica.eu. The information on the Company’s website is not incorporated by reference in, and does not form part of, this document as Universal Registration Document. 4.1.3 Constitution, legal form and publication Aedifica was set up as a limited liability company incorporated under Belgian law (Naamloze Vennootschap / Société Anonyme) by Degroof Bank SA and GVA Finance SCA, by deed enacted on 7 November 2005 by Notary Bertrand Nerincx, Notary in Brussels, published in the annexes to the Belgian State Gazette (Moniteur belge/Belgisch Staatsblad) of 23 November 2005, under number 20051123/05168061. Aedifica was recognised as a Belgian REIT by the Commission Bancaire, Financière et des Assurances (CBFA), which became the FSMA, on 8 December 2005. Aedifica was recognised as a RREC by the FSMA on 17 October 2014. 4.1.4 Registry of Legal Entities and Legal Entity Identifier The Company is entered in the Brussels Registry of Legal Entities (R.L.E., or ‘R.P.M.’ in French / ‘R.P.R.’ in Dutch) under No. 0877.248.501 and has 529900DTKNXL0AXQFN28 as Legal Entity Identifier (LEI). 4.1.5 Duration (Article 5 of the Articles of Association) The Company is incorporated for an indefinite duration. 4.1.6 Purpose (Article 3 of the Articles of Association) The sole object of the Company is: • (a) to make immovable property available to users, directly or through a company in which it holds a participation in accordance with the provisions of the RREC Legislation; and • (b) within the limits set out in the RREC Legislation, to possess real estate as specified in the RREC Act. The notion real estate is to be understood as ‘real estate’ within the meaning of the RREC Legislation; • (c) to conclude with a public client or to accede to, in the long term directly or through a company in which it holds a participation in accordance with the provisions of the RREC Legislation, where applicable in cooperation with third parties, one or more: - (i) DBF-agreements, the so-called ‘Design, Build, Finance’ agreements; - (ii) DB(F)M-agreements, the so-called ‘Design, Build, (Finance) and Maintain’ agreements; - (iii) DBF(M)O-agreements, the so-called ‘Design, Build, Finance, (Maintain) and Operate’ agreements; and/or - (iv) public works concession agreements with respect to buildings and/or other infrastructure of an immovable nature and related services, and on the basis of which: - (i) it is responsible for ensuring the availability, maintenance and/or exploitation for a public entity and/or the citizen as end user, in order to fulfil a social need and/or to enable the provision of a public service; and - (ii) it may bear, in whole or in part, the related financing, availability, demand and/or operational risk, in addition to any potential building risk, without therefore necessarily having any rights in rem; and • (d) to develop, cause to develop, establish, cause to establish, manage, allow to manage, operate, allow to operate or make available, in the long term directly or through a company in which it holds a participation in accordance with the provisions of the RREC legislation, where applicable in cooperation with third parties: AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 239 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 46 - (i) public utilities and warehouses for transport, distribution or storage of electricity, gas, fossil or non-fossil fuel and energy in general and associated goods; - (ii) utilities for transport, distribution, storage or purification of water and associated goods; - (iii) installations for the generation, storage and transport of renewable or non-renewable energy and associated goods; or - (iv) waste and incineration plants and associated goods. In the context of making available immovable property, the Company can carry out all activities relating to the construction, conversion, renovation, development, acquisition, disposal, administration and exploitation of immovable property. As an additional or temporary activity, the Company may invest in securities that are not real estate within the meaning of the RREC Legislation, insofar as these securities may be traded on a regulated market. These investments will be made in accordance with the risk management policy adopted by the Company and will be diversified so as to ensure an appropriate risk diversification. It may also hold non-allocated liquid assets in all currencies, in the form of a call or term deposit or in the form of any monetary instrument that can be traded easily. The Company may moreover carry out hedging transactions, insofar as the latter’s exclusive object is to cover interest rate and exchange rate risks within the context of the financing and administration of the activities of the Company as referred to in the RREC Act, to the exclusion of any speculative transactions. The Company may lease out or take a lease on (under finance leases) one or more immovable properties. Leasing out (under finance leases) immovable property with an option to purchase may only be carried out as an additional activity, unless the immovable properties are intended for purposes of public interest, including social housing and education (in this case, the activity may be carried out as main activity). The Company may carry out all transactions and studies relating to all real estate as described above, and may perform all acts relating to real estate, such as purchase, refurbishment, laying out, letting, furnished letting, subletting, management, exchange, sale, parcelling, placing under a system of co-ownership, and have dealings with all enterprises with a corporate object that is similar to or complements its own by way of merger or otherwise, insofar as these acts are permitted under the RREC Legislation and, generally, perform all acts that are directly or indirectly related to its object. 4.1.7 Prohibitions (Article 4 of the Articles of Association) The Company may not: • act as a real estate promotor within the meaning of the RREC Legislation, with the exception of occasional transactions; • participate in a firm underwriting or guarantee syndicate; • lend stock, with the exception of loans which are carried out in accordance with the provisions and under the conditions of the royal decree of 7 March 2006; • acquire stock which is issued by a company or a private law association which has been declared bankrupt, has entered into an amicable settlement with its creditors, is the subject of a corporate reorganisation, has received a suspension of payment or which has been the subject of similar measures in another country; • provide contractual arrangements or provisions in the Articles of Association with respect to the perimeter companies that would affect its voting power pursuant to the applicable law in function of a participation of 25% plus one share. 4.1.8 Financial year (Article 28 of the Articles of Association) The financial year begins on the first of January of each year and ends on the thirty-first of December each year. The Board of Directors draws up an inventory and the annual accounts at the end of each financial year. The Company’s annual and half-year financial reports, which contain its consolidated accounts and the statutory auditor's report, are made available to the shareholders in accordance with the provisions that apply to issuers of financial instruments that are admitted to trading on a regulated market and the RREC Legislation. The Company’s annual and half-year financial reports and the annual accounts are published on the Company's website. Shareholders are entitled to obtain a free copy of the annual and half-year financial reports at the registered office. 4.1.9 General meetings (Articles 19 and 20 of the Articles of Association) The ordinary general meeting will be held on the second Tuesday of May at 3 pm at the venue specified in the convocation. If this day is a public holiday, the meeting will be held at the same time on the next business day. Special or extraordinary general meetings are held at the venue specified in the convocation. The general meeting is convened by the Board of Directors. The threshold from which one or more shareholders may require a convocation of a general meeting in order to submit one or more proposals, is set at 10% of the capital, in accordance with the Code of companies and associations. One or more shareholders who jointly hold at least 3% of the capital may, under the conditions laid down in the Code of companies and associations, also ask to add items to the agenda of general meetings and submit proposals for resolutions relating to items to include or to be included on the agenda. Convocations are drawn up and distributed in accordance with the applicable provisions of the Code of companies and associations. 4.1.10 Investors’ profile Given the specific legal regime of RRECs, and in particular residential RRECs, the Aedifica shares can present an interesting investment for both private investors and institutional investors. 4.1.11 Accredited statutory auditor The statutory auditor of the Company, accredited by the Financial Services and Markets Authority (FSMA), is Ernst & Young Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL, represented by Christophe Boschmans, Partner, with registered office located at Kouterveldstraat 7B (box 001), 1831 Diegem. The statutory auditor has an unlimited right of supervision over the operations of the Company. The accredited statutory auditor was appointed for a 3-year period by the Annual General Meeting on 14 May 2024, and receives an indexed audit fee of €142,000 excluding VAT per year for auditing the consolidated and statutory annual accounts (see Note 7 for more information regarding the remuneration of the statutory auditor). AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 240 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 47 4.1.12 Valuation experts To avoid conflicts of interest, Aedifica’s real estate portfolio is assessed by eleven independent valuation experts, namely: • Cushman & Wakefield Belgium NV/SA, represented (within the meaning of Article 24 of the RREC Act) by Mr Gregory Lamarche, with its registered office at avenue Marnix 23 (5 th floor), 1000 Brussels; • Stadim BV/SRL, represented (within the meaning of Article 24 of the RREC Act) by Mr Nicolas Janssens, with its registered office at Mechelsesteenweg 180, 2018 Antwerp; • Savills Advisory Services GmbH & Co. KG, represented (within the meaning of Article 24 of the RREC Act) by Mr Thomas Berger, with its registered office at Taunusanlage 18, 60325 Frankfurt; • C&W (UK) LLP German Branch, represented (within the meaning of Article 24 of the RREC Act) by Mr Peter Fleischmann, with its registered office at Rathenauplatz 1, 60313 Frankfurt; • Cushman & Wakefield Netherlands BV, represented (within the meaning of Article 24 of the RREC Act) by Mr Fabian Pouwelse, with its registered office at Gustav Mahlerlaan 362-364, 1082 ME Amsterdam; • Capital Value Taxaties BV, represented (within the meaning of Article 24 of the RREC Act) by Mr Rik Rozendal and Mr Ian Ijnzen, with its registered office at Maliebaan 85, 3581 CG Utrecht; • KNIGHT FRANK LLP, represented (within the meaning of Article 24 of the RREC Act) by Mr Kieren Cole and Mr Andrew Sage, with its registered office at 55 Baker Street, London W1U 8AN; • REnium Advisors Oy (a Cushman & Wakefield affiliate), represented (within the meaning of Article 24 of the RREC Act) by Mr Ville Suominen, with its registered office at Keskuskatu 1 A, FI-00100, Helsinki; • Cushman & Wakefield Sweden AB, represented (within the meaning of Article 24 of the RREC Act) by Mr Mårten Lizén, with its registered office at Regeringsgatan 59, 103 59 Stockholm; • CBRE Unlimited Company, represented (within the meaning of Article 24 of the RREC Act) by Ms Janice Riordan, with its registered office at 1 Burlington Road (3 rd floor Connaught House), Dublin 4; • Jones Lang LaSalle España SA, represented (within the meaning of Article 24 of the RREC Act) by Ms Lourdes Pérez Carrasco and Mr Felix Painchaud, with its registered office at Paseo de la Castellana, 79, 28046 Madrid. According to the RREC legislation, the valuation experts assess the entire portfolio every quarter and their assessment is recognised as the carrying amount (‘fair value’) of the buildings on the balance sheet. Since 1 January 2011, the expert fee excluding VAT is determined as a fixed amount per type of property appraised. Valuation methodology The valuations are established on the basis of several widely used methodologies: • Application of a capitalisation rate to the estimated rental value adapted for actual deviations as regards rental income and operating expenses on a going concern basis. • Calculation of the current value of future cash flows based on assumptions about future income (DCF method) and exit value. The discount factor takes into account the interest rate on the financial market as well as a risk premium specific to real estate investments. The impact of expected changes in inflation and interest rates is therefore included in this evaluation in a conservative way. • These assessments are also tested against unit prices recorded when similar properties are sold, taking into account discrepancies arising from differences in property characteristics. • Development projects (constructions, renovations, extensions) are valued by deducting the costs upon completion of the projects from the anticipated value determined by applying the abovementioned methodologies. Costs incurred in the preliminary phase of construction, renovation or extension projects are considered at their historical value. 4.1.13 Financial services Aedifica has established financial service conventions with the following bank: • ABN AMRO, located Gustav Mahlerlaan 10 (P.O. Box 283) in 1000 Amsterdam (main paying agent & share depository) In 2024, the remuneration for financial services amounted to €50 k (€50 k for the 2023 financial year). 4.1.14 Places where documents are available to the public The Articles of Association are available at the Commercial Court of Brussels and on the Company’s website. The statutory and consolidated accounts of the Group are registered at the National Bank of Belgium, in accordance with the related legal provisions. The decisions regarding the nomination and the dismissal of the members of the Board of Directors are published in the annexes to the Belgian State Gazette (Moniteur belge/Belgisch Staatsblad). The convening of general meetings is published in the annexes to the Belgian State Gazette (Moniteur belge/Belgisch Staatsblad) and in two financial newspapers.These meeting notices and all documents related to the general meetings are available on the Company’s website. All press releases, annual and half-year reports, as well as all financial information published by the Group are available on the Company’s website. The Auditor’s Report and the valuation experts’ report are published in the financial reports available on the Company’s website. During the period of validity of the registration document, the following documents are available in print at the Company’s head office, or electronically at www.aedifica.eu: • Aedifica’s Articles of Association; • all reports, letters and other documents, historical financial information, valuations and declarations established by experts at the request of Aedifica, for which a part is included or referred in the registration document; • historical financial information of Aedifica and its subsidiaries for the two years preceding the publication of the registration document. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 241 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 48 4.1.15 Information incorporated by reference The following information is incorporated into this 2024 Annual Report by way of reference, and is available at Aedifica’s head office and on the Company’s website. The table below always refers to the online English versions of the documents, as available on the Company's website. Operating activities 2023 Annual Report Aedifica in 2023 (p15-18) Strategy & value creation (p19-25) Business review (p26) Financial review – 1.1 Investments (p63-66) Portfolio – 1. Our portfolio as at 31 December 2023 (p28-32) Additional information – 2. Summary of investment properties (p192-209) 2022 Annual Report Aedifica in 2022 (p18-23) Strategy & value creation (p24-33) Business review (p34) Financial review – 1.1 Investments (p78-83) Portfolio – 1. Our portfolio as at 31 December 2022 (p38-43) Additional information – 2. Summary of investment properties (p222-232) Main markets 2023 Annual Report Our portfolio (p28-37) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 3 Operating segments (p133-135) 2022 Annual Report Our portfolio (p38-49) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 3 Operating segments (p154-156) Investments and divestments 2023 Annual Report Financial review – 1.1 Investments and disposals in 2023 (p63-65) Financial review – 1.2 Investments and disposals after 31 December 2023 (p66) Portfolio – 1. Our portfolio as at 31 December 2023 (p28-32) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 38 Acquisitions & disposals of investment properties (p161) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 39 Post-closing Events (p162) 2022 Annual Report Financial review – 1.1.1 Investments, completions and disposals in 2022 (p78-82) Financial review – 1.1.2 Important events after 31 December 2022 (p83) Portfolio – 1. Our portfolio as at 31 December 2022 (p38-43) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 38 Acquisitions and disposals of investment properties (p187) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 39 Post-closing Events (p188) Statement of the statutory auditor 2023 Annual Report Additional information – 3. External information – 3.2 Independent auditor’s report to the general meeting of Aedifica SA for the year ended 31 December 2023 (p212-220) 2022 Annual Report Additional information – 3. External information – 3.2 Independent auditor’s report to the general meeting of Aedifica SA for the year ended 31 December 2022 (p235-242) Financial condition and operating results 2023 Annual Report Financial review – 1.1 Investments and disposals in 2023 (p63-65) Financial review – 1.2 Investments and disposals after 31 December 2023 (p66) Financial review – 1.3 Management of financial resources (p67-69) Financial review – 1.4 Summary of the consolidated financial statements (p70-75) Our portfolio (p28-37) Additional information – 1. Reporting according to EPRA BPR standards (p180-191) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 44 Alternative Performance Measures (APMs) (p168-171) Additional information – 3. External verification – 3.1 Valuation experts’ report (p210-211) Additional information – 4. Standing documents – 4.1.16 Significant change of the financial or trading situation (p227) Additional information – 4. Standing documents – 4.1.18 Strategy or factors of governmental, economical, budgetary, monetary or political nature which have substantially influenced, directly or indirectly, operations (p227) 2022 Annual Report Financial review – 1.1 Investments (p78-83) Financial review – 1.2 Management of financial resources (p84-85) Financial review – 1.3 Summary of the consolidated financial statements (p86-89) Our portfolio (p38-49) Additional information – 1. Reporting according to EPRA BPR standards (p208-221) Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 44 Alternative Performance Measures (APMs) (p195-197) Additional information – 3. External verification – 3.1 Valuation experts’ report (p233-234) Additional information – 4. Standing documents – 4.1.16 Significant change of the financial or trading situation (p249) Additional information – 4. Standing documents – 4.1.18 Strategy or factors of governmental, economical, budgetary, monetary or political nature which have substantially influenced, directly or indirectly, operations (p249) Historical financial information 2023 Annual Report Financial statements (p121-178) 2022 Annual Report Financial statements (p140-205) Dividend policy 2023 Annual Report Financial review – 2. Outlook for 2024 (p77-78) Financial review – 3. Stock market performance – 3.2 Dividend & withholding tax (p81) 2022 Annual Report Financial review – 2. Outlook for 2023 (p91) Financial review – 3. Stock market performance – 3.2 Dividend (p94) Related party transactions 2023 Annual Report Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 7 Overheads – Related party transactions (p138) 2022 Annual Report Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 7 Overheads – Related party transactions (p159) Employees 2023 Annual Report Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 7 Overheads – Employee benefits expense (p138) 2022 Annual Report Financial statements – 1.6 Notes to the Consolidated Financial Statements – Note 7 Overheads – Employee benefits expense (p160) AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 242 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 49 4.1.16 Significant change of the financial or trading situation No significant change in the Group’s financial or trading situation has occurred since the end of last financial year for which audited financial statements or half-year statements have been published. 4.1.17 Actions necessary to change the rights of the shareholders The modification of shareholders’ rights can only be done within the framework of an extraordinary general meeting, in accordance with Articles 7:153 and 7:155 of the Belgian Companies and Associations Code. The document containing the information on the rights of the shareholders referred to in Articles 7:130 and 7:139 of the Belgian Companies and Associations Code can be downloaded on the Company’s website. 4.1.18 Strategy or factors of governmental, economical, budgetary, monetary or political nature which have substantially influenced, directly or indirectly, Aedifica’s operations See the chapter ‘Risk factors’ in this Annual Report. 4.1.19 History and evolution of the Company – important events in the development of Aedifica’s activities In addition to paragraph 4.1.3 above, Aedifica’s history has been marked by its IPO on 23 October 2006 (see the chapter ‘Stock market performance’ in this Annual Report) and by numerous acquisitions of real estate assets that have taken place since its creation (detailed in the occasional press releases, periodic press releases and annual and half-year financial reports available on the Company’s website), resulting in a real estate portfolio of more than €6.2 billion. 4.1.20 Voting rights of major shareholders Voting rights for Aedifica’s main shareholders are no different from those that arise from their share in the share capital. 4.1.21 Statutory limits regarding transfers of shares There are no statutory limits to transfers of Aedifica shares. 4.2 Capital Date Description Amount of capital (€) Number of shares 1 7 November 2005 Initial capital paid up by Degroof Bank & GVA Finance 2,500,000.00 2,500 2,500,000.00 2,500 29 December 2005 Contribution in cash 4,750,000.00 4,750 Merger of ‘Jacobs Hotel Company SA’ 100,000.00 278 Merger of ‘Oude Burg Company SA’ 3,599,587.51 4,473 Transfer of reserves to capital 4,119,260.93 Capital decrease -4,891,134.08 10,177,714.36 12,001 23 March 2006 Merger of ‘Sablon-Résidence de l’Europe SA’ 1,487,361.15 11,491 Merger of ‘Bertimo SA’ 1,415,000.00 3,694 Merger of ‘Le Manoir SA’ 1,630,000.00 3,474 Merger of ‘Olphi SA’ 800,000.00 2,314 Merger of ‘Services et Promotion de la Vallée (SPV) SA’ 65,000.00 1,028 Merger of ‘Emmane SA’ 2,035,000.00 5,105 Merger of ‘Ixelinvest SA’ 219.06 72 Merger of ‘Imfina SA’ 1,860.95 8 Contribution in kind of the business of ‘Immobe SA’ 908,000.00 908 Contribution in kind (Lombard 32) 2,500,000.00 2,500 Contribution in kind (Laeken complex - Pont Neuf & Lebon 24-28) 10,915,000.00 10,915 31,935,155.52 53,510 24 May 2006 Contribution in kind (Louise 331-333 complex) 8,500,000.00 8,500 40,435,155.52 62,010 17 August 2006 Contribution in kind (Laeken 119 & 123-125) 1,285,000.00 1,285 Partial demerger of ‘Financière Wavrienne SA’ 5,400,000.00 5,400 Mixed demerger of ‘Château Chenois SA’ 123,743.15 14,377 Merger of ‘Medimmo SA’ 1,000,000.00 2,301 Merger of ‘Cledixa SA’ 74,417.64 199 Merger of ‘Société de Transport et du Commerce en Afrique SA’ 62,000.00 1,247 Mixed merger of ‘Hôtel Central & Café Central SA’ 175,825.75 6,294 48,556,142.06 93,113 26 September 2006 Split by 25 of the number of shares 48,556,142.06 2,327,825 Contribution in kind (Rue Haute & Klooster Hotel) 11,350,000.00 283,750 59,906,142.06 2,611,575 3 October 2006 Contribution in cash 23,962,454.18 1,044,630 83,868,596.24 3,656,205 27 March 2007 Contribution in kind (Auderghem 237, 239-241, 266 et 272, Platanes 6 & Winston Churchill 157) 4,911,972.00 105,248 88,780,568.24 3,761,453 17 April 2007 Merger of ‘Legrand CPI SA’ 337,092.73 57,879 Contribution in kind (Livourne 14, 20-24) 2,100,000.00 44,996 91,217,660.97 3,846,328 28 June 2007 Partial demerger of ‘Alcasena SA’ 2,704,128.00 342,832 Contribution in kind (Plantin Moretus) 3,000,000.00 68,566 96,921,788.97 4,275,726 1. Shares without par value. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 243 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 50 Date Description Amount of capital (€) Number of shares 1 30 November 2007 Partial demerger of ‘Feninvest SA’ 1,862,497.95 44,229 Partial demerger of ‘Résidence du Golf SA’ 5,009,531.00 118,963 103,793,817.92 4,438,918 30 July 2008 Partial demerger of ‘Famifamenne SA’ 2,215,000.00 50,387 Partial demerger of ‘Rouimmo SA’ 1,185,000.00 26,956 107,193,817.92 4,516,261 30 June 2009 Contribution in kind (Gaerveld service flats) 2,200,000.00 62,786 109,393,817.92 4,579,047 30 December 2009 Contribution in kind (Freesias) 4,950,000.00 129,110 114,343,817.92 4,708,157 30 June 2010 Partial demerger of ‘Carbon SA’, ‘Eburon SA’, ‘Hotel Ecu SA’ & ‘Eurotel SA’ 11,239,125.00 273,831 Partial demerger of ‘Carlinvest SA’ 2,200,000.00 51,350 127,782,942.92 5,033,338 15 October 2010 Contribution in cash 51,113,114.26 2,013,334 178,896,057.18 7,046,672 8 April 2011 Contribution in kind (Project Group Hermibouw) 1,827,014.06 43,651 180,723,071.24 7,090,323 29 June 2011 Merger of ‘IDM A SA’ 24,383.89 592 180,747,455.13 7,090,915 5 October 2011 Contribution in kind of the shares of ‘SIRACAM SA’ 3,382,709.00 86,293 184,130,164.13 7,177,208 12 July 2012 Mixed demerger of ‘S.I.F.I. LOUISE SA’ 800,000.00 16,868 184,930,164.13 7,194,076 7 December 2012 Capital increase through contribution in cash 69,348,785.78 2,697,777 254,278,949.91 9,891,853 24 June 2013 Merger of limited liability company ‘Terinvest’ 10,398.81 8,622 Merger of limited partnership ‘Kasteelhof-Futuro’ 3,182.80 3,215 254,292,531.52 9,903,690 12 June 2014 Contribution in kind (Binkom) 12,158,952.00 258,475 266,451,483.52 10,162,165 30 June 2014 Contribution in kind (plot of land in Tienen) 4,000,000.00 86,952 270,451,483.52 10,249,117 24 November 2014 Optional dividend 5,763,329.48 218,409 276,214,813.00 10,467,526 4 December 2014 Partial demerger of ‘La Réserve Invest SA’ 12,061,512.94 457,087 288,276,325.94 10,924,613 29 June 2015 Capital increase through contribution in cash 82,364,664.56 3,121,318 370,640,990.50 14,045,931 2 October 2015 Contribution in kind (plot of land in Opwijk) 523,955.84 19,856 371,164,946.34 14,065,787 17 December 2015 Contribution in kind (Prinsenhof) 2,748,340.46 104,152 373,913,286.80 14,169,939 24 March 2016 Contribution in kind (plot of land in Aarschot Poortvelden) 582,985.31 22,093 374,496,272.11 14,192,032 2 December 2016 Optional dividend 3,237,042.22 122,672 377,733,314.33 14,314,704 8 December 2016 Contribution in kind (Jardins de la Mémoire) 1,740,327.12 65,952 379,473,641.45 14,380,656 Date Description Amount of capital (€) Number of shares 1 28 March 2017 Capital increase through contribution in cash 94,868,410.37 3,595,164 474,342,051.82 17,975,820 7 June 2018 Contribution in kind (Smakt en Velp) 5,937,488.85 225,009 480,279,540.67 18,200,829 20 November 2018 Optional dividend 6,348,821.62 240,597 486,628,362.29 18,441,426 7 May 2019 Capital increase through contribution in cash 162,209,454.10 6,147,142 648,837,816.39 24,588,568 20 June 2019 Contribution in kind (surface rights of Bremdael) 332,222.20 12,590 649,170,038.59 24,601,158 28 April 2020 Capital increase through contribution in cash 64,916,982.75 2,460,115 714,087,021.34 27,061,273 10 July 2020 Contribution in kind (Kleine Veldekens) 11,494,413.08 435,596 725,581,434.42 27,496,869 27 October 2020 Capital increase through contribution in cash 145,116,265.78 5,499,373 870,697,700.20 32,996,242 17 December 2020 Contribution in kind (De Gouden Jaren) 2,383,608.51 90,330 873,081,308.71 33,086,572 15 June 2021 Capital increase through contribution in cash 73,885,794.65 2,800,000 946,967,103.36 35,886,572 29 June 2021 Contribution in kind (Domaine de la Rose Blanche) 4,868,335.01 184,492 951,835,438.37 36,071,064 8 September 2021 Contribution in kind (Portfolio of specialist residential care centres in Sweden) 6,256,358.83 237,093 958,091,797.20 36,308,157 18 May 2022 Contribution in kind (Résidence Véronique) 1,957,234.71 74,172 960,049,031.91 36,382,329 29 June 2022 Capital increase through contribution in cash 77,184,267.63 2,925,000 1,037,233,299.54 39,307,329 6 July 2022 Contribution in kind (Militza Gent & Militza Brugge) 14,458,236.18 547,914 1,051,691,535.72 39,855,243 31 May 2023 Optional dividend 10,013,477.88 379,474 2 1,061,705,013.60 40,234,717 4 July 2023 Capital increase through contribution in cash 193,037,246.42 7,315,402 3 1,254,742,260.02 47,550,119 1. Shares without par value. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 244 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 51 4.3 Extracts from the Articles of Association 4.3.1 Subscribed and fully paid-up capital (Article 6.1 of the Articles of Association) The capital amounts to €1,254,742,260.03 (one billion two hundred and fifty-four million seven hundred and forty-two thousand two hundred and sixty euros and three cents). It is represented by 47,550,119 (forty-seven million five hundred and fifty thousand hundred nineteen) shares without nominal value, which each represent one/forty-seven million five hundred and fifty thousand hundred nineteenth (47,550,119 th ) of the capital. 4.3.2 Acquisition, acceptance as pledge and alienation of own shares (Article 6.2 of the Articles of Association) The Company may under the conditions set out in the law, acquire, accept as pledge or alienate its own shares and certificates relating thereto. The Board of Directors is authorised, for a period of five years from the publication of the decision of the extraordinary general meeting of 14 May 2024 to approve this authorisation in the annexes to the Belgian Official Gazette, to acquire and accept as pledge shares of the Company and certificates relating thereto, at a unit price which may not be lower than 75% of the average price of the share during the last thirty days of its listing prior to the date of the transaction, nor higher than 125% of the average price of the share during the last thirty days of its listing prior to the date of the transaction, without the Company being authorised, by virtue of this authorisation, to hold or hold in pledge shares of the Company or certificates relating thereto representing more than 10% of the total number of shares. To the extent necessary, the Board of Directors is also explicitly authorised to alienate the Company's own shares and certificates relating thereto to its personnel. In addition, the Board of Directors is explicitly authorised to alienate the Company's own shares and certificates relating thereto to one or more specific persons other than members of the personnel of the Company or its subsidiaries. The authorisations under paragraph 2. and paragraph 3. apply to the Board of Directors of the Company, to the direct and indirect subsidiaries of the Company, and to any third party acting in its own name but on behalf of these companies. 4.3.3 Capital increase (Article 6.3 of the Articles of Association) Every capital increase must take place in accordance with the Code of companies and associations and the RREC Legislation. (a) Cash contribution In case of a capital increase by means of a cash contribution pursuant to a resolution of the shareholders’ meeting or in the context of the authorised capital as provided for in Article 6.4 of the Articles of Association, and without prejudice to the application of the mandatory provisions of the applicable company law, the preferential subscription right of the shareholders may be restricted or cancelled to the extent that the existing shareholders are granted a priority allocation right when new securities are allocated. When applicable, this priority allocation right must comply with the following conditions as set out in the RREC Legislation: • 1 ) it must relate to all newly issued securities; • 2 ) it must be granted to shareholders pro rata to the portion of the capital that is represented by their shares at the time of the transaction; • 3 ) a maximum price for each share must be announced no later than the eve of the opening of the public subscription period; • 4 ) the public subscription period must last for at least three trading days. Without prejudice to the application of the mandatory provisions of the applicable company law, the priority allocation right, in any case, does not have to be granted, in case of contribution in cash subject to the following conditions: • 1 ) the capital increase is executed within the limits of the authorised capital; • 2 ) the cumulative amount of the capital increases, executed in accordance with this paragraph, over a period of 12 months, do not exceed 10% of the capital amount at the moment of the decision to increase the capital. Without prejudice to the mandatory provisions of the applicable company law, the priority allocation right does not have to be granted in case of a cash contribution with restriction or cancellation of the preferential subscription right, in addition to a contribution in kind in the framework of the distribution of an optional dividend, provided that this is actually made payable to all shareholders. (b) Contribution in kind Without prejudice to the provisions of the Code of companies and associations, the following conditions must be complied with, in accordance with the RREC Legislation, in case of a contribution in kind: • 1 ) the identity of the contributor must be mentioned in the report regarding the contribution in kind, as well as, if applicable, in the convocation of the general meeting that is convened for the capital increase; • 2 ) the issue price may not be less than the lowest amount of (a) a net value per share that dates from no more than four months before the date of the contribution agreement, or, at the Company's discretion, before the date of the deed effecting the capital increase and (b) the average closing price during the thirty-day period prior to that same day. It is permitted to deduct an amount from the amount referred to in item 2(b) that corresponds to the portion of the undistributed gross dividend to which the new shares would potentially not confer any right, provided that the Board of Directors specifically accounts for the amount of the accumulated dividend to be deducted in its AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 245 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 52 special report and the financial conditions of the transaction are explained in its annual financial report. • 3 ) unless no later than the working day after the execution of the contribution agreement the issue price or, in the case referred to in Article 6.5 of the Articles of Association, the exchange ratio, as well as the relevant terms and conditions are determined and publicly disclosed, including the term within which the capital increase will actually be implemented, the deed effecting the capital increase must be executed within a maximum term of four months; and • 4 ) the report referred to above under item 1 must also explain the impact of the proposed contribution on the position of the existing shareholders, in particular as regards their share in the profit, in the net value per share and in the capital, as well as the impact in terms of voting rights. In accordance with the RREC Legislation, these additional conditions will not apply to the contribution of the right to a dividend for the purpose of distributing an optional dividend, insofar as this will actually be made payable to all shareholders. 4.3.4 Authorised capital (Article 6.4 of the Articles of Association) The Board of Directors is authorised to increase the capital in one or more instalments, on the dates and in accordance with the terms and conditions as will be determined by the Board of Directors, by a maximum amount of: • 1 ) 50% of the amount of the capital on the date of the extraordinary general meeting of 14 May 2024, as the case may be, rounded down to the euro cent for capital increases by contribution in cash whereby the possibility is provided for the exercise of the preferential subscription right or the priority allocation right by the shareholders of the Company, • 2 ) 20% of the amount of the capital on the date of the extraordinary general meeting of 14 May 2024, as the case may be, rounded down to the euro cent for capital increases in the framework of the distribution of an optional dividend, • 3 ) 10% of the amount of the capital on the date of the extraordinary general meeting of 14 May 2024, as the case may be, rounded down to the euro cent for a. capital increases by contribution in kind, b. capital increases by contribution in cash without the possibility for the shareholders of the Company to exercise the preferential subscription right or priority allocation right, or c. any other kind of capital increase, provided that the capital within the context of the authorised capital can never be increased by an amount higher than the capital on the date of the extraordinary general meeting that has approved the authorisation (in other words, the sum of the capital increases in application of the proposed authorisations cannot exceed the amount of the capital on the date of the Extraordinary General Meeting that has approved the authorisation). This authorisation is granted for a renewable period of two years, calculated from the publication of the minutes of the Extraordinary General Meeting of 14 May 2024, in the annexes to the Belgian Official Gazette. For each capital increase, the Board of Directors will determine the price, the issue premium (if any) and the terms and conditions of issue of the new securities. The capital increases that are thus decided on by the Board of Directors may be subscribed to in cash, in kind, or by means of a mixed contribution, or by incorporation of reserves, including profits carried forward and issue premiums as well as all equity components under the Company’s statutory IFRS financial statements (drawn up in accordance with the regulations applicable to the regulated real estate companies) which are subject to conversion into capital, with or without the creation of new securities. These capital increases can also be realised through the issue of convertible bonds, subscription rights or bonds repayable in shares or other securities which may give rise to the creation of the same securities. Any issue premiums will be shown in one or more separate accounts under equity in the liabilities on the balance sheet. The Board of Directors is free to decide to place any issue premiums, possibly after deduction of an amount at most equal to the costs of the capital increase in the meaning of the applicable IFRS-rules, on an unavailable account, which will provide a guarantee for third parties in the same manner as the capital and which can only be reduced or abolished by means of a resolution of the general meeting deciding in accordance with the quorum and majority requirements for an amendment of the Articles of Association, except in the case of the conversion into capital. If the capital increase is accompanied by an issue premium, only the amount of the capital increase will be deducted from the remaining available amount of the authorised capital. The Board of Directors is authorised to restrict or cancel the preferential subscription right of shareholders, even in favour of one or more specific persons other than employees of the Company or of one of its subsidiaries, provided that, to the extent required by the RREC Legislation, a priority allocation right is granted to the existing shareholders when the new securities are allocated. Where applicable, this priority allocation right must comply with the conditions that are laid down in the RREC Legislation and Article 6.3(a) of the Articles of Association. In any event, it does not have to be granted in those cases of contribution in cash described in Article 6.3(a) paragraph 2 and paragraph 3 of the Articles of Association. Capital increases by means of contributions in kind are carried out in accordance with the conditions of the RREC Legislation and the conditions provided for in Article 6.3(b) of the Articles of Association. These contributions may also be based on the dividend right in the context of the distribution of an optional dividend. The Board of Directors is authorised to record the ensuing amendments to the Articles of Association in an officially certified deed. 4.3.5 Mergers, de-mergers and equivalent transactions (Article 6.5 of the Articles of Association) Pursuant to the RREC Legislation, the special provisions of Article 6.3(b) of the Articles of Association regarding a contribution in kind apply mutatis mutandis to mergers, de-mergers and equivalent transactions as referred to in the RREC Legislation. 4.3.6 Capital reduction (Article 6.6 of the Articles of Association) The Company may reduce its capital subject to compliance with the relevant legal provisions. 4.3.7 Nature of the shares (Article 7 of the Articles of Association) The shares are registered or dematerialised shares, at the option of the shareholder. Shareholders may at any time request in writing the conversion of registered shares into dematerialized shares or vice versa. Each dematerialised share is represented by an accounting entry in the name of the owner or holder at a recognised account holder or settlement institution. A register of registered shares, if applicable in electronic form, is held at the Company's registered office. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 246 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 53 4.3.8 Other securities (Article 8 of the Articles of Association) The Company may issue all securities that are not prohibited by or under the law, with the exception of profit sharing certificates and similar securities, in accordance with the RREC Legislation. 4.3.9 Notification and disclosure of major shareholdings (Article 9 of the Articles of Association) The shares of the Company must be admitted to trading on a Belgian regulated market, in accordance with the RREC Legislation. According to article 18 of the law of 2 may 2007 on disclosure of major shareholdings in issuers whose shares are admitted to trading on a regulated market and laying down miscellaneous provisions and the thresholds provided for by law apply. Without prejudice to the exceptions provided by law, no one may participate in voting at the general meeting of the Company with more voting rights than those associated with the securities that he has given notice at least twenty (20) days prior to the date of the general meeting. The voting rights attached to the unreported securities are suspended. 4.3.10 Convening of general meetings (Article 19 of the Articles of Association) The general meeting is convened by the Board of Directors. The threshold from which one or more shareholders may require a convocation of a general meeting in order to submit one or more proposals, is set at 10% of the capital, in accordance with the Code of companies and associations. One or more shareholders who jointly hold at least 3% of the capital may, under the conditions laid down in the Code of companies and associations, also ask to add items to the agenda of general meetings and submit proposals for resolutions relating to items to include or to be included on the agenda. Convocations are drawn up and distributed in accordance with the applicable provisions of the Code of companies and associations. 4.3.11 Participation in the General Meeting (Article 20 of the Articles of Association) The right to participate in and vote at a general meeting is only granted on the basis of the accounting registration of the shares in the shareholder’s name by midnight (Belgian time) on the fourteenth day prior to the general meeting (hereinafter: the ‘registration date’), either by their entry in the company's share register, their entry in the accounts of a recognised account holder or settlement institution, regardless of the number of shares that the shareholder holds on the day of the general meeting. Owners of registered shares who wish to participate in the meeting must communicate their intention to the Company, or the person designated by the Company for this purpose, by means of the Company’s e-mail address or in the manner specified in the convocation, or, as the case may be, by sending a power of attorney, no later than the sixth day prior to the date of the meeting. Owners of dematerialised shares who wish to participate in the meeting must submit a certificate issued by a financial intermediary or a recognised account holder which indicates the number of dematerialised shares, registered in their accounts in the name of the shareholder on the registration date and for which the shareholder has indicated that he wishes to participate in the general meeting. They communicate the certificate to the Company or to the person designated by the Company for this purpose, as well as their wish to participate in the general meeting, via the e-mail address of the Company or in the manner specifically mentioned in the convocation, or, as the case may be, by sending a power of attorney, no later than the sixth day prior to the date of the general meeting. In cases where the convocation expressly so provides, the shareholders have the right to participate in a general meeting remotely by means of an electronic means of communication made available by the Company. This electronic means of communication must enable the shareholder to directly, simultaneously and continuously take note of the discussions during the meeting and to exercise the voting right on all matters on which the meeting is required to take a decision. If the convocation expressly so provides, this electronic means of communication will also enable the shareholder to participate in the deliberations and to exercise his or her right to ask questions. If the right to remotely participate in a general meeting is granted, either the convocation or a document consultable by the shareholder to which the convocation refers (such as the company's website) will also determine the manner(s) in which the company will verify and guarantee the capacity of shareholder and the identity of the person who wishes to participate in the meeting, as well as the manner(s) in which it will determine that a shareholder participates in the general meeting and will be considered present. In order to guarantee the security of the electronic means of communication, the convocation (or the document to which the convocation refers) may also set additional conditions. 4.3.12 Voting by proxy (Article 21 of the Articles of Association) Each owner of securities entitling him to participate in the meeting may be represented at the general meeting by a proxy holder who may or may not be a shareholder. The shareholder may only appoint one person as proxy holder for any specific general meeting, except for the derogations provided for in the Code of companies and associations. The Board of Directors draws up a proxy form. The proxy must be signed by the shareholder and must be communicated to the Company no later than the sixth day prior to the date of the meeting, by means of the Company’s e-mail address or via the e-mail address or in the manner specified in the convocation. If several persons hold rights in rem on the same share, the Company may suspend the exercise of the voting right attached to this share until a single person has been appointed to exercise the voting right. If a security has been given in usufruct, all rights attached to it, including the right to vote, the right to participate in capital increases and the right to request the conversion of shares (into registered/dematerialised shares), are exercised by the usufructuary(s) and the bare owner(s) jointly, unless otherwise stipulated in a will, deed of gift or other agreement. In the latter case, the bare owner(s) and/or the usufructuary(s) must inform the Company in writing of this arrangement. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 247 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 54 4.3.13 Remote voting before the general meeting (Article 22 of the Articles of Association) To the extent that the Board of Directors has given permission to do so in the convocation letter, the shareholders are authorised to vote remotely prior to the general meeting by letter, via the Company’s website or in the manner specified in the convocation, by means of a form made available by the Company. The form must state the date and place of the meeting, the name or denomination of the shareholder and his/her place of residence or registered office, the number of votes with which the shareholder wishes to vote at the general meeting, the nature of the shares he owns, the items on the agenda of the meeting (including proposals for resolutions), a space allowing to vote in favour of or against any decision or to abstain, as well as the term within which the voting form must reach the Company. The form must explicitly state that it must be signed and it must reach the Company no later than the sixth day prior to the date of the meeting. The Board of Directors shall determine, where appropriate, the terms and conditions under which the capacity and identity of the shareholder shall be verified. 4.3.14 Bureau (Article 23 of the Articles of Association) All general meetings are chaired by the Chairman of the Board of Directors or, in his absence, by the director designated by the Directors present. The Chairman designates the Secretary. The meeting elects two vote tellers. The other Directors present complete the bureau. 4.3.15 Number of votes (Article 24 of the Articles of Association) Each share confers the right to one vote, subject to the suspension of the right to vote provided for by law. 4.3.16 Deliberation (Article 25 of the Articles of Association) No meeting can validly deliberate on items that do not appear on the agenda. The general meeting can validly deliberate and vote, regardless of the share of the capital that is present or represented, except in those cases for which the Code of companies and associations requires an attendance quorum. The general meeting can only validly deliberate on amendments to the Articles of Association if at least half of the capital is present or represented. If this condition is not met, a new meeting must be convened. The second meeting will validly deliberate and decide regardless of the share of the capital that is represented by the shareholders who are present or represented. Unless a statutory provision requires otherwise, all resolutions of the general meeting will be adopted by a simple majority of votes. Any amendment of the Articles of Association may only be approved with by at least three quarters of the votes cast or, in the case of an amendment of the object or aims of the Company, by four fifths of the votes cast, with abstentions neither in the numerator nor in the denominator being taken into account. Voting takes place by a show of hands or roll call, unless the general meeting decides otherwise by means of a simple majority of the votes cast. Any draft of the amendment of the Articles of Association must be submitted in advance to the Financial Services and Markets Authority.An attendance list containing the names of the shareholders and the number of shares is signed by each or on behalf of them. 4.3.17 Minutes (Article 26 of the Articles of Association) The minutes of the general meeting are signed by the members of the bureau and shareholders who request it. Copies of the minutes of the general meeting intended for third parties are signed by one or more Directors. 4.3.18 General meeting of bondholders (Article 27 of the Articles of Association) The provisions of this article apply only to bonds in so far as the conditions of issue of the bonds do not deviate therefrom. The Board of Directors and the statutory auditor(s) of the Company may convene the bond holders at the general meeting of the bond holders. They must also convene the general meeting at the request of bondholders representing one-fifth of the amount of the bonds in circulation. The convocation contains the agenda and is drawn up in accordance with the provisions of the Code of companies and associations. In order to be admitted to the general meeting of bondholders, bondholders must comply with the formalities laid down in the Code of companies and associations, as well as any formalities laid down in the conditions of issue of the bonds or in the convocations. 4.3.19 Distribution (Article 29 of the Articles of Association) Within the limits set out by the Code of companies and associations and the RECC legislation, the company distributes a dividend to its shareholders, the minimum amount of which is determined in accordance with the RREC Legislation. 4.3.20 Interim dividends (Article 30 of the Articles of Association) The Board of Directors may adopt a resolution, under its responsibility, to distribute interim dividends, in such cases and within such periods as permitted by the Code of companies and associations. 4.3.21 Dissolution – Liquidation Article 31 – Loss of capital When as a result of losses sustained, the net assets have fallen below one-half or below one-quarter of the capital, the management body must convene a general meeting within two months of the date on which the losses are identified or should have been identified according to legal or statutory provisions to decide on the dissolution of the Company or on recovery measures included in the agenda to safeguard the continuity of the Company. Article 32 – Appointment of liquidators The Company may at any time be dissolved by a resolution of the general meeting, which deliberates in the manner required by law, or it may be dissolved in the cases provided for by law. In case of dissolution with liquidation, one or more liquidators are appointed by the general meeting. Article 33 – Distribution upon liquidation Upon liquidation, the distribution to the shareholders will only take place after the meeting to close the liquidation. The Company’s net assets, after settlement of all debts or consignment of the sums required for this purpose, are first used to refund the paid-up capital, and any balance will be distributed equally among all shareholders in proportion to their shareholding. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 248 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 55 4.3.22 Statutory provisions on the members of administrative, management and supervisory bodies The provisions on the members of administrative, management and supervisory bodies contained in the Articles of Association are presented below. For further information, please refer to the Corporate Governance Charter (available on the Company’s website) and the ‘Corporate Governance Statement’, included in this Annual Report. Article 10 – Composition of the Board of Directors The Board of Directors consists of at least five members who are appointed for a maximum term of three years by the general meeting of shareholders. The general meeting may terminate the term of any member of the Board of Directors with immediate effect and without giving reasons. The Directors are eligible for re- election. The Board of Directors shall have at least three independent members in accordance with applicable legal provisions. Unless the appointment decisions of the general meeting provide otherwise, the Directors’ term shall run from the general meeting at which they are appointed until the ordinary general meeting in the financial year in which the term of their mandate expires according to the appointment decision, even if this would exceed the maximum term of three years provided in the Articles of Association. The general meeting may not, at the time of the revocation of the mandate, set a date as the end date of the mandate other than the date on which the decision was taken, nor grant severance pay. If one or more mandates become vacant, the remaining Directors, convening as a board, may provide for temporary replacement(s) until the next general meeting. The next general meeting has to confirm or not the mandate of the co-opted member of the Board of Directors. The Directors shall be natural persons only. They must possess the professional reliability and the appropriate competence which is required for the performance of their duties and they should not fall within the scope of the prohibitions laid down in the RREC Legislation. Their appointment is subject to the prior approval of the Financial Services and Markets Authority. The possible remuneration of the Directors may not be determined on the basis of the activities and transactions carried out by the Company or its perimeter companies. The Board of Directors may appoint one or more observers to attend all or part of its meetings, according to the modalities to be determined by the Board of Directors. Article 11 – Chairmanship – Deliberations of the Board of Directors The Board of Directors meets after convocation at the place indicated in this convocation or, as the case may be, by video conference, telephone or internet conference, as often as the interests of the Company so require. The Board of Directors must also be convened when two members make a request to that effect. The Board of Directors chooses a Chairman from among its members. Meetings shall be chaired by the Chairman or, in his/her absence, by the longest serving member, and in the event of equal seniority, by the member with the highest age. The Board of Directors can only validly deliberate and pass resolutions if the majority of its members are present or represented. Convocations are sent out by electronic mail or, in the absence of an e-mail address communicated to the Company, by ordinary letter or by any other means of communication, in accordance with the applicable legal provisions. Any Director who is unable to attend or absent may, by letter, e-mail or any other means of communication, delegate another director to represent him/her at a particular meeting of the Board of Directors and to vote in his/her place. However, a member of the Board of Directors may not represent more than one of his/her colleagues. Resolutions of the Board of Directors are adopted by a majority of votes. The resolutions of the Board of Directors are recorded in the minutes and the minutes are kept in a special register for that purpose at the Company’s registered office and signed by the Chairman of Board of Directors and by the Directors who request it. The proxies are attached to the minutes. Copies of these minutes intended for third parties shall be signed by one or more Directors. The resolutions of the Board of Directors may be adopted by means of unanimous written consent of the Directors. Article 12 – Powers of the Board of Directors The Board of Directors has the most extensive powers to carry out all acts that are necessary or useful for the realisation of the object of the Company, with the exception of the acts for which, according to the law or the Articles of Association, the general meeting is competent. The Board of Directors may delegate the daily management of the Company and the representation of the Company with regard to such management to one or more persons who do not necessarily have to be directors and, as the case may be, each act alone, jointly or as a collegiate body. The Board of Directors may delegate to each proxyholder all special powers, within the limits set by the applicable legal provisions. The Board may, in accordance with the RREC Legislation, determine the remuneration of those to whom special powers have been delegated. Article 13 – Internal rules The Board of Directors may issue internal rules. Article 14 – Effective management The effective management of the Company is entrusted to at least two natural persons. They must possess the professional reliability and the appropriate competence which is required for the performance of their duties and they should not fall within the scope of the prohibitions laid down in the RREC Legislation. Their appointment is subject to the prior approval of the Financial Services and Markets Authority. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 249 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 56 Article 15 – Advisory committees The Board of Directors may establish an audit committee, a nomination and remuneration committee, and determines the composition, their duties and powers, taking into account the applicable regulations. In addition, the Board of Directors may, under its responsibility, establish one or more advising committees, of which it determines the composition and the duties. Article 16 – Representation of the Company – Signature of instruments The Company is validly represented in all its acts, including those to which a public or ministry official cooperates, as well as in legal proceedings, as plaintiff, as defendant or otherwise, by two directors acting jointly or within the limits of the daily management, either by the person to whom the daily management is entrusted, acting alone within the limits of this daily management, either by two of the persons to whom the daily management is entrusted, acting jointly within the limits of this daily management. The Company is also validly represented by special representatives of the Company within the limits of the power of attorney. Article 17 – Audit The audit of the company is entrusted to one or more statutory auditors who are accredited by the Financial Services and Markets Authority. They perform the duties that are assigned to them under the Code for companies and associations and the RREC Legislation. 4.3.23 General provisions Article 34 – Election of domicile For the implementation of the Articles of Association, each shareholder, holder of subscription rights and bondholder who is domiciled abroad, and each director, each delegate to the daily management, each statutory auditor and liquidator must elect domicile in Belgium. If no election is made, he/she will be deemed to have chosen his/her domicile at the registered office of the Company, where all communications, demands, summonses and notifications can be validly served. The holders of registered shares, subscription rights or bonds must notify the Company of any change of residence or e-mail address. Failing to do so, all communications, convocations or official notifications shall be validly served at the last known place of residence or e-mail address. Article 35 – Jurisdiction of courts For all disputes among the Company, its shareholders, holders of subscription rights, bondholders, directors, delegates to the daily management, statutory auditors and liquidators relating to the Company’s affairs and the implementation of these Articles of Association, exclusive jurisdiction is granted to the courts of the Company’s registered office unless expressly waived by the Company. Article 36 – Ordinary law The Company is moreover governed by the Code of companies and associations, the RREC Legislation, as well as all other regulatory provisions that apply to it. Provisions that are inconsistent with the mandatory legal provisions will be regarded as null and void. The invalidity of one article, or part of an article, of these Articles of Association will not affect the validity of any of the other (parts of) articles. 4.4 RREC 4.4.1 General definition Aedifica is a limited liability Company (‘NV/SA’) having opted for a public Regulated Real Estate Company (RREC) status. A Regulated Real Estate Company (RREC) is: • set up in the form of a limited liability Company (‘NV/SA’) or limited partnership by shares (‘CommVA/ SCA’); • set up on the basis of the RREC legislation (Belgian Law of 12 May 2014 and Belgian Royal Decree of 13 July 2014); • quoted on the stock exchange, where at least 30% of shares are traded on the market; • a Company of which the sole purpose is: - (a) to make immovable property available to users, directly or through a company in which it holds a participation in accordance with the provisions of the RREC Legislation; and - (b) within the limits set out in the RREC Legislation, to possess real estate as specified in the RREC Act. The notion real estate is to be understood as ‘real estate’ within the meaning of the RREC Legislation; - (c) to conclude with a public client or to accede to, in the long term directly or through a company in which it holds a participation in accordance with the provisions of the RREC Legislation, where applicable in cooperation with third parties, one or more: - (i) DBF-agreements, the so-called ‘Design, Build, Finance’ agreements; - (ii) DB(F)M-agreements, the so-called ‘Design, Build, (Finance) and Maintain’ agreements; - (iii) DBF(M)O-agreements, the so-called ‘Design, Build, Finance, (Maintain) and Operate’ agreements; and/or - (iv) public works concession agreements with respect to buildings and/or other infrastructure of an immovable nature and related services, and on the basis of which: • (i) it is responsible for ensuring the availability, maintenance and/or exploitation for a public entity and/or the citizen as end user, in order to fulfil a social need and/or to enable the provision of a public service; and • (ii) it may bear, in whole or in part, the related financing, availability, demand and/or operational risk, in addition to any potential building risk, without therefore necessarily having any rights in rem; and - (d) to develop, cause to develop, establish, cause to establish, manage, allow to manage, operate, allow to operate or make available, in the long term directly or through a company in which it holds a participation in accordance with the provisions of the RREC legislation, where applicable in cooperation with third parties: - (i) public utilities and warehouses for transport, distribution or storage of electricity, gas, fossil or non-fossil fuel and energy in general and associated goods; - (ii) utilities for transport, distribution, storage or purification of water and associated goods; - (iii) installations for the generation, storage and transport of renewable or non- renewable energy and associated goods; or - (iv) waste and incineration plants and associated goods. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 250 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 57 RRECs are regulated by the Financial Services and Markets Authority (FSMA) and have to follow extremely strict rules governing conflicts of interest. Until 17 October 2014, ‘REIT’ or ‘Belgian REIT’ referred to the status legally known in Belgium as ‘sicafi’ (French) or ‘vastgoedbevak’ (Dutch). As from 17 October 2014, ‘REIT’, ‘Belgian REIT’ or ‘RREC’ refers to ‘société immobilière réglementée’ (SIR, in French) or ‘gereglementeerde vastgoedvennootschap’ (GVV, in Dutch), also translated as ‘regulated real estate Company’ (RREC). 4.4.2 Particular regulations Real estate property A public RREC may invest a maximum of 20% of its consolidated assets in real estate properties which form a single real estate complex. The FSMA can give an exemption under certain circumstances. Accounting European legislation specifies that RRECs, along with all listed companies, must prepare their consolidated annual accounts in accordance with the IAS/IFRS international standards. This also applies to the statutory accounts (under IFRS). Given that investment properties constitute their main assets, RRECs must pay particular attention to appraising the fair value of their properties (i.e., applying IAS 40). Valuation Real estate properties are assessed at their fair value on a quarterly basis by independent valuation experts and recorded in the balance sheet at this value. Depreciation is not recognised on investment properties. Profit or loss As return on capital, the Company is required to distribute a sum corresponding to at least the positive difference between the following amounts: • 80% minimum of the amount equal to the sum of the adjusted result and of the net capital gains on the realisation of properties that are not exempt from mandatory distribution; and • and the net decrease in the debt of the public RREC during the financial year. Debt The debt-to-assets ratio of the public RREC and its subsidiaries, and the statutory debt-to-assets ratio of public RRECs, may not exceed 65% (other than by the change in the fair value of assets) of total consolidated or statutory assets, after deduction of authorised hedging instruments. When exceeding the threshold of 50%, a financial plan with an implementation schedule must be elaborated, describing the measures taken to prevent the consolidated debt-to-assets ratio from exceeding the threshold of 65%. Financing A RREC may not provide financing, except to its subsidiaries. Fiscal status A RREC is not subject to corporate tax (except on non-recoverable expenses and abnormal or benevolent benefits), provided that at least 80% of the amount equal to the sum of the adjusted result and of the net capital gains on the realisation of properties that are not exempt from mandatory distribution, is distributed in the form of dividends. Companies – other than RRECs or specialised real estate investment funds – which were, or are, absorbed by the Company, owe an exit tax on their unrealised capital gains and exempted reserves. When real estate is acquired through a merger in which the Company acquires a normally taxed real estate company, an exit tax is owed on the deferred capital gains and tax-exempt reserves of the real estate company (taxable merger). For transactions as from 1 January 2020, the exit tax rate amounts to 15%. The additional crisis contribution is eliminated since the 2021 tax year. For corporate restructurings, the tax year is equal to the calendar year in which the transaction takes place. Tax year Exit tax 2018 12.875% (12.5% + 3% of additional crisis contribution) 2019 12.75% (12.5% + 2% of additional crisis contribution) 2020 15.3% (15% + 2% of additional crisis contribution) As from 2021 15% (without additional crisis contribution) The withholding tax on dividends distributed by Aedifica amounts to 15%. Pursuant to Articles 89, 90 and 91 of the Act of 18 December 2016 and amended by Article 20 of the Act of 27 December 2021, RRECs benefit from a reduced withholding tax rate of 15% (instead of 30%), provided that at least 80% of the Company’s real estate portfolio is (directly or indirectly) invested in real estate properties which are situated in a member state of the European Economic Area and which are exclusively or primarily destined for care and housing units suited for healthcare. Aedifica's shareholders benefit from this reduced rate as more than 80% of the Company's portfolio is exclusively or primarily invested in care and housing units suited for healthcare. Following Brexit, a transition regime has been provided for UK assets acquired prior to 1 January 2021 so that they can be included in the calculation of the 80% threshold until the end of the 2025 financial year. Therefore, if legislation does not change in the meantime and no major changes happen in the Group’s portfolio, Aedifica estimates that its shareholders will continue to benefit from the reduced withholding tax rate of 15% on dividends paid or attributed until 31 December 2025. Belgian RRECs (SIR/GVV) are investment instruments which can be compared to the Dutch FBI (Fiscale BeleggingsInstellingen), the French SIIC (Société d’Investissement Cotée en Immobilier) and the REIT (Real Estate Investment Trust) which exist in a number of countries, including the United States. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 251 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 58 5. EPRA sBPR content table Aedifica reports according to the European Public Real Estate Association (EPRA) Sustainability Best Practices Recommendations for Sustainability Reporting (sBPR guidelines) to allow for comparison with other players in the real estate sector. The following table lists the indicators that are reported on and where they can be found in this report. The social indicators in the table below are included in the present 2024 Annual Report (AR). The environmental indicators are included in the table below for the sake of completeness only and will be disclosed in the Environmental Data Report (EDR) to be published in June 2025. Since 2020, Aedifica has been granted an EPRA sBPR Gold Award for its sustainability reporting year after year. Sustainability – social indicators Page Diversity-Emp Employee gender diversity AR24 p67 Diversity-Pay Gender pay ratio AR24 p67 Emp-Training Employee training and development AR24 p68 Emp-Dev Employee performance analysis AR24 p68 Emp-Turnover Employee turnover AR24 p67 Emp-New hires Employee new hires AR24 p67 H&S-Emp Employee health and safety AR24 p69 H&S-Asset Asset health and safety assessments not applicable H&S-Comp Asset health and safety compliance not applicable Comty-Eng Community engagement, impact assessments and development programmes AR24 p61 Gov-Board Composition of the highest governance body AR24 p95 & following Corporate Governance Charter p7 Gov-Selec Process for nominating and selecting the highest governance body AR24 p95 & following Corporate Governance Charter p8 Gov-Col Process for managing conflicts of interest AR24 p116 & following Corporate Governance Charter p18 & following Sustainability – environmental indicators Elec-Abs Total electricity consumption EDR (June 2025) Elec-LfL Like-for-like total electricity consumption EDR (June 2025) DH&C-Abs Total district heating & cooling consumption EDR (June 2025) DH&C-LfL Like-for-like total district heating & cooling consumption EDR (June 2025) Fuels-Abs Total fuel consumption EDR (June 2025) Fuels-LfL Like-for-like total fuel consumption EDR (June 2025) Energy-Int Building energy intensity EDR (June 2025) GHG-Dir-Abs Total direct greenhouse gas (GHG) emissions EDR (June 2025) GHG-Indir-Abs Total indirect greenhouse gas (GHG) emissions EDR (June 2025) GHG-Dir-LfL Like-for-like total direct greenhouse gas (GHG) emissions EDR (June 2025) GHG-Indir-LfL Like-for-like total indirect greenhouse gas (GHG) emissions EDR (June 2025) GHG-Int Greenhouse gas (GHG) intensity from building energy consumption EDR (June 2025) Water-Abs Total water consumption EDR (June 2025) Water-LfL Like-for-like total water consumption EDR (June 2025) Water-Int Building water intensity EDR (June 2025) Waste-Abs Total weight of waste by disposal route EDR (June 2025) Waste-LfL Like-for-like total weight of waste by disposal route EDR (June 2025) Cert-Tot Type and number of sustainably certified assets EDR (June 2025) Aedifica reports according to the European Public Real Estate Association (EPRA) Sustainability Best Practices Recommendations for Sustainability Reporting Since 2020, Aedifica has been granted an EPRA sBPR Gold Award for its sustainability reporting year after year. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 252 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 59 6. GRI content index Aedifica reports according to the Global Reporting Initiative (GRI) standards. The environmental indicators are included in the table below for the sake of completeness only and will be disclosed in the Environmental Data Report (EDR) to be published in June 2025. 6.1 Universal standards GRI 102: General disclosures Page Comment 1. Organisational profile 102-1 Name of the organisation Aedifica 102-2 Activities, brands, products and services 21-22 102-3 Location of headquarters Rue Belliard 40 (box 11), B- 1040 Brussels 102-4 Location of operations 16 102-5 Ownership and legal form Public Limited Liability Company – Public Regulated Real Estate Company under Belgian Law 102-6 Markets served 45-47 102-7 Scale of the organisation 16, 64 102-8 Information on employees and other workers 64-69 102-9 Supply chain 25, 56-58 102-10 Significant changes to the organisation and its supply chain 16-18, 45-47 102-11 Precautionary principle or approach 124-134 102-12 External activities 33-34, 58-62 102-13 Membership of associations 62 2. Strategy 102-14 Statement from senior decision-maker 14-15 102-15 Key impacts, risks and opportunities 26, 126-134 3. Ethics and integrity 102-16 Values, principles, standards and norms of behavior 70 102-17 Mechanisms for advice and concerns about ethics 70 Page Comment 4. Governance 102-18 Governance structure 95-96 102-21 Consulting stakeholders on economic, environmental and social topics 26, 56-57, 103 102-22 Composition of the highest governance body and its committees 100-102, 104 EPRA: Gov-Board 102-23 Chair of the highest governance body 101 102-24 Nominating and selecting the highest governance body 95 & following EPRA: Gov-Select; Corporate Governance Charter p8 102-25 Conflicts of interest 116-117 EPRA: Gov-Col 102-26 Role of highest governance body in setting purpose, values and strategy 95-96 102-28 Evaluating the highest governance body’s performance 107 102-29 Identifying and managing economic, environmental and social impacts 95-96, 103 102-32 Highest governance body’s role in sustainability reporting 95-96, 103 102-33 Communicating critical concerns 70 102-35 Remuneration policies 108 & following 102-36 Process for determining remuneration 108 & following 5. Stakeholder engagement 102-40 List of stakeholder groups 56-57 102-41 Collective bargaining agreements Belgian staff: Joint Committee 200: 61 out of 131 staff members (47%) benefit from this agreement 102-42 Identifying and selecting stakeholders 56 102-43 Approach to stakeholder engagement 58 & following 102-44 Key topics and concerns raised 26, 58 & following 6. Reporting practice 102-45 Entities included in the consolidated financial statements 178-181 102-46 Defining report content and topic boundaries EDR (June 2025) 102-47 List of material topics 26-31 102-48 Restatements of information EDR (June 2025) 102-49 Changes in reporting 24-33, 125-126 102-50 Reporting period 01/01/2024 – 31/12/2024 102-51 Date of most recent report 27 March 2025 102-52 Reporting cycle Annually 102-53 Contact point for questions regarding the report [email protected] 102-54 Claims of reporting in accordance with the GRI standards This report has been prepared in accordance with the GRI standards: core option. 102-55 GRI Content Index 253-254 102-56 External Assurance 227-238 AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 253 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 60 6.2 Topic-specific standards GRI 201: Economic performance Page Comment 201-1 Direct economic value generated and distributed 17, 72-92 201-2 Financial implications and other risks and opportunities due to climate change 29, 48, 130 GRI 203: Indirect economic impacts 203-1 Infrastructure investments and services supported 16, 58-59, 62, 73- 74 GRI 205: Anti-corruption 205-3 Confirmed incidents of corruption and actions taken There were no confirmed incidents of corruption in 2024. GRI 207: Tax 207-1 Approach to tax 131, 251 GRI 302: Energy 302-1 Energy consumption within the organisation EDR (June 2025) EPRA: Elec-Abs, Elec-LfL, DH&C-Abs, DH&C-LfL, Fuels- Abs, Fuels-LfL 302-2 Energy consumption outside of the organisation EDR (June 2025) 302-3 Energy intensity EDR (June 2025) 302-4 Reduction of energy consumption EDR (June 2025) 302-5 Reductions in energy requirements of products and services EDR (June 2025) GRI 303: Water and effluents 303-5 Water consumption EDR (June 2025) EPRA: Water-Abs, Water-LfL GRI 305: Emissions 305-1 Direct (scope 1) GHG emissions EDR (June 2025) EPRA: GHG-Dir-Abs, GHG- Dir-LfL 305-2 Energy indirect (scope 2) GHG emissions EDR (June 2025) EPRA: GHG-Indir-Abs, GHG- Indir-LfL 305-3 Other indirect (scope 3) GHG emissions EDR (June 2025) EPRA: GHG-Indir-Abs, GHG- Indir-LfL 305-4 GHG emissions intensity EDR (June 2025) EPRA: HGH-Int 305-5 Reduction of GHG emissions EDR (June 2025) GRI 306: Waste 306 Effluents and waste EDR (June 2025) GRI 307: Environmental compliance 307-1 Non-compliance with environmental laws and regulations There were no cases of non- compliance in 2024. GRI 401: Employment 401-1 New employee hires and employee turnover 67 EPRA: Emp-New hires, Emp- Turnover 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Not relevant. GRI 402: Labor/management relations 402-1 Minimum notice periods regarding operational changes Aedifica applies Belgian law on legal notice periods. GRI 403: Occupational health & safety Page Comment 403-1 Occupational health and management system 51, 69 403-2 Hazard identification, risk assessment and incident investigation 69 EPRA: H&S-Emp 403-6 Promotion of worker health 69 403-9 Work-related injuries 69 EPRA: H&S-Emp 403- 10 Work-related ill health 69 GRI 404: Training and education 404-1 Average hours of training per year per employee 68 EPRA: Emp-Training 404-2 Programmes for upgrading employee skills and transition assistance programmes 68-69 404-3 Percentage of employees receiving regular performance & career development reviews 68 EPRA: Emp-Dev GRI 405: Diversity and equal opportunity 405-1 Diversity of governance bodies and employees 67 EPRA: Diversity-Emp 405-2 Ratio of basic salary and remuneration of women to men 67 EPRA: Diversity-Pay GRI 406: Non-discrimination 406-1 Incidents of discrimination and corrective actions taken There were no cases of discrimination in 2024. GRI 408: Child labor 408-1 Operations and suppliers at significant risk for incidents of child labor There were no operations or suppliers at siginicant risk for incidents of child labor. GRI 409: Forced or compulsory labor 409-1 Operations and suppliers at significant risk for forced or compulsory labor There were no operations or suppliers at significant risk for forced or compulsory labor. GRI 413: Local communities 413-1 Operations with local community engagement, impact assessmets and development programmes 60-62 EPRA: Comty-Eng GRI 418: Customer privacy 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data There were no such complaints in 2024. GRI 419: Socioeconomic compliance 419-1 Non-compliance with laws and regulations in the social and economic area There were no cases of non- compliance in 2024. 6.3 Sector-specific standards GRE: Construction and real estate Page Comment CRE 1 Building energy intensity EDR (June 2025) EPRA: Energy-Int CRE 2 Building water intensity EDR (June 2025) EPRA: Water-Int CRE 3 Greenhouse gas emissions intensity from buildings EDR (June 2025) EPRA: GHG-Int AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 254 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 61 7. Statements ESEF This 2024 Annual Report was drawn up in accordance with the ESEF (European Single Electronic Format) reporting requirements. Thus, this version in ESEF in English is the official version of the annual report and can also be found on the Company’s website (www.aedifica.eu). Universal Registration Document This 2024 Annual Report constitutes Aedifica NV/SA’s 2024 Universal Registration Document within the meaning of article 9 of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC Prospectus Regulation, as amended (the ‘Prospectus Regulation’) and has been drawn up taking into account Annex 2 io Annex 1 of the Commission Delegated Regulation (EU) No 2019/980 of 14 March 2019 supplementing Regulation (EU) 2017/1129 of the European Parliament and of the Council as regards the format, content, scrutiny and approval of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Regulation (EC) No 8092004, as amended (the ‘Delegated Regulation 2019/980’). This 2024 Annual Report has been filed with the FSMA, as competent authority under the Prospectus Regulation, as Universal Registration Document on 27 March 2025 without prior approval pursuant to Article 9 of Regulation (EU) 2017/1129. This Universal Registration Document may be used for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if completed by amendments, if applicable, and a securities note and summary approved in accordance with the Prospectus Regulation. The information on the website of Aedifica NV/SA is not incorporated by reference in, and does not form part of, this Universal Registration Document. Investors should make their own assessment as to the suitability of investing in securities in Aedifica NV/SA. Information from third parties Independent valuation experts and statutory auditor Aedifica NV/SA declares that the information provided by the independent valuation experts (the coordinates of each of which can be found in section 4.1.12 of the ‘Standing Documents’) and by the accredited statutory auditor (the coordinates of which can be found in section 4.1.11 of the ‘Standing Documents’) have been accurately reproduced and included with their consent. As far as Aedifica NV/SA is aware and is able to ascertain from information published by these third parties, no facts have been omitted which would render the reproduced information inaccurate or misleading. The aforementioned independent valuation experts have each confirmed to the Company that they have no material interest in the Company, with the exception of those arising from their respective contractual relationship with the Company as an independent valuation expert of the Company within the meaning of Article 24 of the RREC Act. The statutory auditor has confirmed to the Company that it has no material interest in the Company, with the exception of those arising from its mandate as statutory auditor of the Company. Studies The ‘Market trends’ section on page 45-47 of the Business Review included in this Universal Registration Document contains a reproduction of studies performed by (i) Jones Lang LaSalle IP, Inc. (regarding the healthcare market in Europe), (ii) Cushman & Wakefield Belgium NV/SA (regarding the healthcare market in Belgium), (iii) C&W (UK) LLP German Branch (regarding the healthcare market in Germany) (iv) Cushman & Wakefield Netherlands BV (regarding the healthcare market in the Netherlands), (v) Knight Frank LLP (regarding the healthcare market in the United Kingdom), (vi) REnium Advisors Oy (regarding the healthcare market in Finland), (vii) Cushman & Wakefield Sweden AB (regarding the healthcare market in Sweden), (viii) CBRE Unlimited Company (regarding the healthcare market in Ireland) and (ix) Jones Lang LaSalle España SA (regarding the healthcare market in Spain). The aforementioned companies have each agreed with the publication by Aedifica of their respective studies, and have each confirmed that they do not have material interests in Aedifica (except for those arising from their contractual relationship with Aedifica pursuant to their mandate as independent valuation expert). AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 255 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 62 Persons responsible (Delegated Regulation 2019/980 and Royal Decree 14 November 2007) Aedifica NV/SA, represented by the members of its Board of Directors, the composition of which is described in the Corporate Governance chapter of this 2024 Annual Report, is responsible for the information provided in this Universal Registration Document, and declares that, after having taken all reasonable care to ensure that such is the case, the information contained in this Universal Registration Document is, to the best of its knowledge, in accordance with the facts and contains no omission likely to affect the import of this Universal Registration Document. Mr Serge Wibaut, Chair of the Board of Directors of Aedifica NV/SA, and Mr Stefaan Gielens, CEO of Aedifica NV/SA, declare for and on behalf of Aedifica NV/SA, that to the best of their knowledge: • the financial statements, prepared in accordance with the applicable accounting standards, give an accurate picture of the assets, financial situation and results of Aedifica NV/SA and the businesses included in the consolidation; • the Annual Report contains an accurate account of the development of the business, results and situation of Aedifica NV/SA and businesses included in the consolidation, and a description of the main risks and uncertainties they face. Forecast information This report contains forecast information. This information is based on Company’s estimates and projections and is, by its nature, subject to risks, uncertainties and other factors. Consequently, the results, financial situation, performance and figures, expressed or implicitly communicated, may differ substantially from those mentioned or suggested by the forecast information. Taking into account these uncertain factors, statements regarding future developments cannot be interpreted as a guarantee in any way. Proceedings and arbitration procedures The Board of Directors of Aedifica NV/SA declares that there exists no governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which Aedifica is aware), during the previous 12 months, that may have a significant influence, or may have had such an influence in the recent past, on the financial position or profitability of Aedifica NV/SA and/or the Group. Declaration concerning the Directors and the members of the Executive Committee The Board of Directors declares that, to the best of its knowledge: • none of the members of the Board of Directors has, for at least the previous five years, been convicted for a fraud-related offence; • no official and/or public incrimination and/or sanctions have been expressed against one of them by statutory or regulatory authorities (including designated professional bodies) for at least the previous five years; • none of the members of the Board of Directors has ever been disqualified by a court from acting as a member of the administrative, management or supervisory bodies of an issuer or from acting in the management or conduct of the affairs of any issuer for at least the previous five years; • none of the members of the Board of Directors has been involved in any bankruptcies, receiverships, liquidations or companies put into administration for at least the previous five years, with the exception of: - Ms Ingrid Daerden was director and manager of JIND BV/SP. This company was voluntarily dissolved and liquidated on 2 July 2020; • no employment contract has been concluded with the Non-Executive Directors, which provides for the payment of indemnities upon termination of the employment contract. However, there exists a (management) agreement between the Company and the Executive Directors and members of the Executive Committee providing for such indemnities; • no option on the Company’s shares has been given to date; • no family ties exist between the Directors and/or members of the Executive Committee; • the following Directors and members of the Executive Committee hold shares of the Company: Mr Serge Wibaut (3,000 shares), Mr Stefaan Gielens (18,661 shares), Mr Charles-Antoine van Aelst (7,164 shares), Mr Sven Bogaerts (6,827 shares), Ms Ingrid Daerden (5,955 shares), Mr Pertti Huuskonen (5,170 shares), Ms Katrien Kesteloot (202 shares), Ms Elisabeth May-Roberti (508 shares), Mr Luc Plasman (688 shares), Mr Raoul Thomassen (2,205 shares), Ms Kari Pitkin (162 shares) and Ms Marleen Willekens (170 shares). AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 256 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 63 8. Glossary 8.1 Definitions Acquisition value The acquisition value is the agreed value between parties on the basis of which the transaction is performed. If the acquisition of a building takes place by cash payment, through the acquisition of shares of a real estate Company, through the non-monetary contribution of a building against the issue of new shares, by merger through takeover of a property, or by a partial de-merger, the deed costs, audit and consultancy costs, reinvestment bank fees and costs of lifting security on the financing of the absorbed Company and other costs of the merger are also considered as part of the acquisition cost and capitalised in the asset accounts on the balance sheet. Alternative performance measures (APM) Since many years, Aedifica uses in its financial communication Alternative Performance Measures according to the guidelines issued by the ESMA on 5 October 2015. Some of these APM are recommended by the European Public Real Estate Association (EPRA) and others have been defined by the industry or by Aedifica in order to provide readers with a better understanding of its results and performance. The APM used in this annual report are identified with an asterisk (). The performance measures which are defined by IFRS standards or by Law are not considered as APM, neither are those which are not based on the consolidated income statement or the balance sheet. The APM are defined, annotated and connected with the most relevant line, total or subtotal of the financial statements, in the notes of the financial statements or in EPRA chapter. Closed period Period during which any director or any person covered on the lists established by the Company in accordance with Article 7.3 of the Dealing Code, as well as any person who is closely related to them, may not carry out any trading of Aedifica shares. Closed periods are shown in the corporate governance statement. Contractual rents Rents as contractually agreed in leases, before deducting rent-free periods or other incentives granted to tenants. Debt-to-assets ratio The Belgian Royal Decree of 13 July 2014 regarding RRECs defines the debt-to-assets ratio as follows: ‘Total liabilities’ in balance sheet - I. Non-current liabilities – A. Provisions - I. Non-current liabilities – C. Other non-current financial liabilities - Hedges - I. Non-current liabilities – F. Deferred taxes liabilities - II. Current liabilities – A. Provisions - II. Current liabilities – C. Other current financial liabilities - Hedges - II. Current liabilities – F. Accrued charges and deferred income as provided in the annexes of the Royal Decree of 13 July 2014 on RRECs. / Total assets less authorised hedging instruments ≤ 65% Double net (NN) Type of contract under which generally the repair and maintenance of the roof, structure and facades of the building remain the responsibility of the owner, while other costs and risks are borne by the operator. EBIT margin Operating result before result on portfolio divided by net rental income. EPRA European Public Real Estate Association is an association, founded in 1999 in order to promote, develop and regroup listed European real estate companies. EPRA establishes standards of conduct in accounting, reporting and corporate governance matters, and harmonises these rules to different countries in order to provide quality and comparable information to investors. EPRA has created indices that serve as benchmarks for the real estate sector. All this information is available on the website www.epra.com. EPRA Earnings Aedifica uses EPRA Earnings to comply with the EPRA’s recommendations and to measure its operational and financial performance; however, this performance measure is not defined under IFRS. It represents the profit (attributable to owners of the Parent) after corrections recommended by the EPRA. The EPRA Earnings* is calculated in Note 18 (in accordance with the Aedifica model) and in the EPRA chapter of the Annual Financial Report (in accordance with the model recommended by EPRA). Estimated rental value (ERV) The estimated rental value (ERV) is the market rental value as determined by independent valuation experts. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 257 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 64 Exit tax Companies applying for approved RREC status, or which merge with a RREC, are subject to an exit tax. This tax is similar to a liquidation tax on net unrealised gains and on tax-exempt reserves. See section 4.4.2 of the Standing Documents for more information on the current exit tax rates. Fair value In accordance with IAS/IFRS accounting principles, the fair value of investment properties is assessed by independent valuation experts. The fair value of the Belgian investment properties is calculated as following: • Buildings with an investment value over €2.5 million: - Fair value = investment value / (1+ average transaction cost rate defined by the BE-REIT Association) • Buildings with an investment value under €2.5 million: - when the expert considers a building can be sold in units, the fair value is defined as the lowest value between the investment value in units / (1 + % transfer taxes depending on the region where they are located) and the investment value / (1 + average transaction cost rate defined by the BE-REIT Association); - when the expert considers a building cannot be sold in units, the fair value is the investment value / (1 + % transfer taxes depending on the region where they are located). The average transaction cost rate defined by the BE-REIT Association is reviewed annually and adjusted as necessary in 0.5% increments. The Belgian experts attest the deduction percentage retained in their periodic reports. The fair value of investment properties located abroad takes into account locally applicable legal costs. Free float Percentage of shares held by the public, as defined by Euronext. Gross dividend yield Gross dividend per share divided by the stock market price as of closure. Gross yield of the portfolio For the total portfolio: (contractual rents) / investment value, acquisition value or fair value of the concerned buildings. Investment value is used as a denominator to determine the gross yield of a development project. Acquisition value is used for acquired assets and fair value for existing assets. IFRS The international accounting standards (IFRS, or International Financial Reporting Standards, previously called IAS, or International Accounting Standards) are drawn up by the International Accounting Standards Board (IASB). European listed companies have been obliged to apply these standards in their consolidated accounts since the financial year commencing on or after 1 January 2005. Since 2007, RRECs have also been required to apply IFRS in their statutory accounts. Inside information Inside information about Aedifica is any information: • of a precise nature, i.e. indicates a set of circumstances which exists or which may reasonably be expected to come into existence, or an event which has occurred or which may reasonably be expected to occur, where it is specific enough to enable a conclusion to be drawn as to the possible effect of that set of circumstances or event on the prices of the financial instruments or the related derivative financial instruments of Aedifica; • which has not been made public; • relating, directly or indirectly, to Aedifica; and • which, if it were made public, would be likely to have a significant effect on the price of the financial instruments or related derivative financial instruments of Aedifica, i.e. information a reasonable investor would be likely to use as part of the basis of his or her investment decisions. Interest Rate Cap (or cap) An insurance contract purchased by a borrower at a premium from a bank to provide a ceiling on interest indexed to floating rates for a specified notional amount, frequency and maturity. If the floating rate rises above the agreed ceiling, the bank pays the difference between the ceiling and the actual floating rate, thereby protecting against increases in floating interest rates. Aedifica can only use this instrument for hedging purposes. Interest Rate Swap (or IRS) A forward interest rate exchange contract (usually floating against fixed) between two parties in which one stream of future interest payments is exchanged for another based on a specified notional amount, frequency and maturity. Interest rate swaps usually involve the exchange of a floating interest rate payment for a fixed rate payment to reduce exposure to fluctuations in interest rates. Aedifica can only use this instrument for hedging purposes. Investment properties portfolio The investment properties portfolio regroups marketable investment properties, assets classified as held for sale, rights of use of plots of land and the land reserve. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 258 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 65 Investment value Value assessed by the expert, of which transfer taxes are not deducted. Market capitalisation Closing stock market price multiplied by the total number of shares. Net asset value per share Total equity divided by the number of shares outstanding (after deduction of the treasury shares). Net rental income The Belgian Royal Decree of 13 July 2014 regarding RRECs defines the net rental income as follows: Rental income - Writeback of lease payments sold and discounted - Rental-related charges Occupancy rate For the total portfolio: (contractual rents) / (contractual rents + estimated rental value (ERV) on vacant areas of the property portfolio). Operating margin Property operating result divided by net rental income. Pay-out ratio Dividend divided by the corrected profit. Prime net yield The ratio between the (initial) contractual rent of a purchased property and the acquisition value at a prime location. Profits excluding changes in fair value Profit (attributable to owners of the parent) - Changes in fair value of investment properties (IAS 40) - Changes in fair value of financial assets and liabilities (IFRS 9) Property result The Belgian Royal Decree of 13 July 2014 regarding RRECs defines the operating result before result on portfolio as follows: Property operating result - Overheads ± Other operating income and charges Property operating result The Belgian Royal Decree of 13 July 2014 regarding RRECs defines the property operating result as follows: Property result - Technical, commercial and property management costs - Charges and taxes on unlet properties - Other property charges AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 259 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 66 Profit to be paid out (or corrected profit) The Belgian Royal Decree of 13 July 2014 regarding RRECs defines the profit to be paid out (or corrected profit) as follows: The Company must distribute, as return on capital, an amount corresponding at least to the positive difference between the following amounts: • 80% of an amount equal to the sum of the adjusted result (A) and the net capital gains on realisation of investment properties not exempt from the obligation of distribution (B). (A) and (B) are calculated according to the following scheme: Profit of loss + Depreciations + Write-downs - Reversals of write-downs - Writeback of lease payments sold and discounted ± Other non-cash items ± Gains and losses on disposals of investment properties ± Changes in fair value of investment properties = Corrected profit (A) ± Gains and losses on disposals of investment properties during the financial year (gains and losses compared to the acquisition value plus capital expenditures) - Gains and losses on disposals of investment properties during the financial year, exempted from the obligation of distribution, subject to reinvestment within 4 years (gains compared to the acquisition value plus capital expenditure) ± Gains and losses on disposals of investment properties earlier exempted from the obligation of distribution and not reinvested within 4 years (gains and losses compared to the acquisition value plus capital expenditures) = Net capital gains on realisation of investment properties not exempt from the obligation of distribution (B) • net decrease during the financial year of the debt of the public RREC, as provided in Article 13 of the Belgian Royal Decree of 13 July 2014 (see definition of the debt-to-assets ratio). Real estate portfolio The real estate portfolio includes the investment properties portfolio and the development projects. Result on portfolio The Royal Decree of 13 July 2014 regarding RRECs defines the result on portfolio as follows: Gains and losses on disposals of investment properties - Gains and losses on disposals of other non-financial assets ± Changes in fair value of investment properties Reversion rate The ratio is determined as follows: (contractual rents + estimated rental value on empty spaces) / Estimated rental value of the total portfolio. Triple net (NNN) Type of contract under which generally operating charges, maintenance costs and rents on empty spaces related to operations are borne by the operator. Velocity Total volume of shares exchanged over the year divided by the total number of listed shares, following the definition of Euronext. AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 260 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION ANNUAL REPORT 2024 – ADDITIONAL INFORMATION AEDIFICA 67 8.2 Acronyms APM: Alternative Performance Measure CAGR: Compound Annual Growth Rate CEO: Chief Executive Officer CFO: Chief Financial Officer CIO: Chief Investment Officer CLO: Chief Legal Officer CM&AO: Chief Mergers & Acquisitions Officer COO: Chief Operating Officer CPI: Consumer price index CRREM: Carbon Risk Real Estate Monitor CSR: Corporate Social Responsibility CSRD: Corporate Sustainability Reporting Directive DCF: Discounted Cash Flow EBIT: Earnings Before Interests and Taxes EBITDA: Earnings Before Interests, Taxes, Depreciation and Amortisation ECB: European Central Bank EPC: Energy Performance Certificate EPRA: European Public Real Estate Association EPRA (s)BPR: EPRA (Sustainability) Best Practices Recommendations ESMA: European Securities and Markets Authority ESRS: European Sustainability Reporting Standards ERV: Estimated Rental Value FBI: Federale Beleggingsinstelling FSMA: Financial Services and Markets Authority GHG: Greenhouse Gas GRESB: Global Real Estate Sustainability Benchmark IAS: International Accounting Standards ICR: Interest Cover Ratio IFRS: International Financial Reporting Standards IPO: Initial Public Offering IRS: Interest Rate Swap nEUI: net Energy Use Intensity NN: Double Net NNN: Triple Net REIT: Real Estate Investment Trust RREC: Regulated Real Estate Company SCS: Société en Commandite Simple SPO: Secondary Public Offering SPV: Special Purpose Vehicle WAULT: Weighted average unexpired lease term AEDIFICAannual report 2024 - ADDITIONAL INFORMATION 261 CONTENTS CONTENTS HOUSING WITH CARE THIS IS AEDIFICA STRATEGY & VALUE CREATION OUR APPROACH TO CSR BUSINESS REVIEW CORPORATE GOVERNANCE STATEMENT RISK FACTORS FINANCIAL STATEMENTS ADDITIONAL INFORMATION

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