COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by Hili Properties p.l.c. (the "Company") pursuant to the Capital Markets Rules issued by the Malta Financial Services Authority in accordance with the provisions of the Financial Markets Act (Chapter 345 of the Laws of Malta), as amended from time to time.

QUOTE

Financial Analysis Summary

In line with the requirements of the Capital Markets Rules, the Financial Analysis Summary of the Company dated June 25, 2025, has been approved for publication and is attached herewith. It is also available for viewing on the Company's website: www.hiliproperties.com

Annual General Meeting

The Company announces that the forthcoming Annual General Meeting (the "AGM") will be held on July 25, 2025, at The Phoenicia Hotel Ballroom, The Mall, Floriana. Shareholders on the register of members of the Company held at the Central Securities Depository of the Malta Stock Exchange as at June 27, 2025, shall be eligible to receive notice of, attend and vote at the AGM.

UNQUOTE

BY ORDER OF THE BOARD

Adrian Mercieca Company Secretary June 25, 2025

FINANCIAL ANALYSIS SUMMARY

25 JUNE 2025

ISSUER

HILI PROPERTIES P.L.C. (C 57954)

GUARANTORS

HILI ESTATES LIMITED (C 20513)

HARBOUR (APM) INVESTMENTS LTD (C 58453)

Prepared by:

M.Z. Investment Services Limited

63, MZ House, St Rita Street, Rabat RBT 1523, Malta

E [email protected] W mzinvestments.com

The Board of Directors Hili Properties p.l.c. Nineteen Twenty-Three Valletta Road Marsa MRS 3000 Malta

25 June 2025

Dear Board Members,

Financial Analysis Summary

In accordance with your instructions, and in line with the requirements of the MFSA Listing Policies, we have compiled the Financial Analysis Summary (the "Analysis") set out on the following pages and which is being forwarded to you together with this letter.

The purpose of this Analysis is that of summarising key financial information appertaining to Hili Properties p.l.c. (the "Issuer", "Group", or "Hili Properties"). The data is derived from various sources or is based on our own computations as follows:

(a) Historical information for the most recent three financial years ended 31 December 2022, 31 December 2023, and 31 December 2024 has been extracted from the respective audited consolidated annual financial statements.
(b) The forecast information for the financial year ending 31 December 2025 has been provided by the Issuer.
(c) Our commentary on the financial performance, cash flows, and financial position of the Group is based on explanations provided by Hili Properties.
(d) The ratios quoted in this Analysis have been computed by applying the definitions set out in Part 4 – Explanatory Definitions.
(e) Relevant financial data in respect of the companies included in Part 3 Comparative Analysis has been extracted from public sources such as websites of the companies concerned, financial statements filed with the Malta Business Registry, as well as other sources providing financial information.

M.Z. Investment Services Limited is regulated by the Malta Financial Services Authority and licensed to conduct investment services business in terms of the Investment Services Act (Cap. 370 of the Laws of Malta). MZ Investments is a member of the Malta Stock Exchange and an enrolled Tied Insurance Intermediary for MAPFRE MSV Life p.l.c. under the Insurance Distribution Act (Cap. 487 of the Laws of Malta).

M.Z. Investment Services Limited

63, MZ House, St Rita Street, Rabat RBT 1523, Malta

E [email protected] W mzinvestments.com

This Analysis is meant to assist investors by summarising the more important financial information of the Group. This Analysis does not contain all data that is relevant to investors. Furthermore, it does not constitute an endorsement by our firm of any securities of the Issuer and should not be interpreted as a recommendation to invest or not invest in any of the Issuer's securities. We will not accept any liability for any loss or damage arising out of the use of this Analysis. As with all investments, investors are encouraged to seek professional advice before investing in the Issuer's securities.

Yours faithfully,

Evan Mohnani Head of Corporate Broking

PART	1 –	INFORMATION ABOUT THE GROUP
	1.	ABOUT THE ISSUER2
	2.	DIRECTORS OF THE ISSUER 2
	3.	DIRECTORS AND KEY ACTIVITIES OF THE GUARANTORS3
	4.	ORGANISATIONAL STRUCTURE3
	5.	REAL ESTATE PORTFOLIO4
	6.	SECURITIES IN ISSUE 6
	7.	ECONOMIC UPDATE 7
PART	2 –	FINANCIAL REVIEW 16
	8.	FINANCIAL ANALYSIS – HILI ESTATES LIMITED16
	9.	FINANCIAL ANALYSIS – HARBOUR (APM) INVESTMENTS LTD20
	10.	FINANCIAL ANALYSIS – HILI PROPERTIES P.L.C. 23
	11.	VARIANCE ANALYSIS – HILI PROPERTIES P.L.C. 30
PART	3 –	COMPARATIVE ANALYSIS 34
PART	4 –	EXPLANATORY DEFINITIONS 35

PART 1 – INFORMATION ABOUT THE GROUP

1. ABOUT THE ISSUER

Hili Properties p.l.c. is engaged in the acquisition, operation, management, and lease of commercial real estate located in Romania, the Baltics (Estonia, Latvia, and Lithuania), and Malta. Further information about the Group's real estate portfolio is found in Section 5 of this Analysis.

The Issuer is a subsidiary of Hili Ventures Limited ("Hili Ventures") – a diversified group with operations in various industries across Europe. Further information about Hili Ventures is available at https://hiliventures.com/.

In 2015, Hili Properties raised €37 million through the issuance of 4.50% unsecured bonds maturing on 16 October 2025 (the "2015 Bonds"), guaranteed by Hili Estates Limited ("Hili Estates") and Harbour (APM) Investments Ltd ("Harbour (APM)") (collectively, the "Guarantors"). The net proceeds, amounting to €36.20 million, were used to refinance existing borrowings (€19.54 million), part-finance the deposit payable under the promise of share purchase agreement relating to the acquisition of Harbour (APM) (€6 million), and part-fund new property acquisitions (€10.66 million).

In 2021, Hili Properties listed its shares on the Official List of the Malta Stock Exchange through a public offering of new shares. In February 2025, Hili Ventures launched a Conditional Voluntary Public Takeover Offer for the acquisition of all the issued share capital of Hili Properties. Following the end of the acceptance period on 25 March 2025, and the transfer of shares on 22 April 2025, Hili Ventures increased its shareholding in Hili Properties from 74.83% with 299,999,990 ordinary shares to 87.74% with 351,749,612 ordinary shares. Subsequently, by 26 May 2025, Hili Ventures acquired a further 3,670,815 shares from the secondary market, thereby increasing its holding to 88.66% with 355,420,427 ordinary shares.

2. DIRECTORS OF THE ISSUER

The Board of Directors of Hili Properties comprises the following six individuals who are responsible for the overall development, strategic direction, and risk management of the Group:

Chairman
Executive Director
Non-Executive Director
Non-Executive Director
Independent, Non-Executive Director
Independent, Non-Executive Director

The Board of Directors is supported by a Senior Management team comprising Georgios Kakouras, Managing Director of Hili Properties, and Daniela Pavia, the Group's Chief Financial Officer.

3. DIRECTORS AND KEY ACTIVITIES OF THE GUARANTORS

The directors of both Harbour (APM) and Hili Estates are Georgios Kakouras and Julian Caruana.

Hili Estates owns and manages the Nineteen Twenty-Three building in Luqa, Malta, which serves as the head office of Hili Ventures and other related parties. As at the end of FY2024, this asset had a carrying value of €18.30 million and a rentable area of 5,302 sqm, representing 7.83% of the Group's total portfolio by value and 4.56% by rentable area.

Harbour (APM), on the other hand, owns eleven parcels of land located in Bengħajsa, Malta, with a total area of circa 92,000 sqm. These are situated near the Malta Freeport Terminal and fall within a designated Reserve Site. Two of the parcels are leased on a long-term basis to an independent third party and are used for the operation of a solar farm. In aggregate, the land was valued at €26 million, representing 11.13% of the Group's total portfolio value as at the end of FY2024.

4. ORGANISATIONAL STRUCTURE

The diagram below illustrates the organisational structure of Hili Properties:

5. REAL ESTATE PORTFOLIO

The table below provides a summary of the Group's real estate portfolio, which had an occupancy rate of 99% and a weighted average lease term ("WALT") of 7.8 years as at the end of FY2024.1 It is welldiversified by geography, asset class, and tenant type, with a property mix that spans office space, retail centres, logistics warehousing, land, and a number of quick service restaurants. Furthermore, the Group's properties are predominantly freehold across its assets, providing long-term control and strategic flexibility to support its investment and operational objectives.

Hili Properties p.l.c.

Real Estate Portfolio As at 31 December 2024

	Country	Type of Property	Asset Value	Rentable Area	Occupancy	WALT	Type of Ownership
			(€'000)	(sqm)	(%)	(Years)

• MIRO Offices	Romania	Office space	62,700	24,245	100	4.67	Freehold
• Art Business Centre 7	Romania	Hospital	31,200	23,773	100	9.70	Freehold
• Harbour (APM)	Malta	Land	26,000	n/a	n/a	n/a	Freehold
• REHAU Factory	Lithuania	Industrial	19,400	18,980	100	17.00	Land is leased, building is freehold
• Stirnu Street 26, Shopping Centre	Latvia	Retail	19,174	7,013	90	8.38	Freehold
• Nineteen Twenty-Three Building	Malta	Office space & warehousing	18,300	5,302	100	4.20	Freehold
• Latgales Street 357	Latvia	Retail and land	11,000	9,684	100	3.65	Land is partly leased and partly freehold; building is freehold
• Sliema Restaurant and Offices	Malta	McDonald's restaurant and office space	8,500	1,055	51	3.70	Freehold
• Nicgales Street 2, Supermarket and Retail Centre	Latvia	Retail	6,592	2,852	100	4.39	Freehold
• Svajone Restaurant	Lithuania	McDonald's restaurant	2,989	580	100	6.42	Land is leased, building is freehold
• Bragadiru Restaurant	Romania	McDonald's restaurant	2,920	2,700	100	13.92	Freehold
• Selgros Restaurant	Romania	McDonald's restaurant	2,919	1,499	100	13.75	Freehold
• Imanta Restaurant	Latvia	McDonald's restaurant	2,707	2,709	100	6.83	Freehold
• Villa Marika	Malta	Private residence	2,600	n/a	n/a	n/a	Freehold
• Transport House	Malta	Office space	2,525	910	100	1.60	Freehold
• Coresi Brasov Restaurant	Romania	McDonald's restaurant	2,514	2,070	100	16.25	Freehold
• Vienibas Restaurant	Latvia	McDonald's restaurant	2,351	3,497	100	7.33	Freehold
• Dainava Restaurant	Lithuania	McDonald's restaurant	2,312	3,021	100	6.08	Freehold
• Ulmana Restaurant	Latvia	McDonald's restaurant	2,213	2,000	100	10.42	Freehold
• Santu Mare Restaurant	Romania	McDonald's restaurant	1,712	1,346	100	14.83	Freehold
• Alba Iulia Restaurant	Romania	McDonald's restaurant	1,507	1,184	100	14.83	Freehold
• Parnu Restaurant	Estonia	McDonald's restaurant	1,438	1,803	100	5.42	Freehold
Total			233,572	116,223

As at 31 December 2024, the Group's real estate portfolio comprised 20 income-generating properties. The combined value of the total portfolio amounted to €233.57 million (31 December 2023: €239.52 million), while the total rentable area stood at 116,223 sqm (31 December 2023: 115,820 sqm). 2 Geographically, Romania remained the Group's most significant market, accounting for €105.47 million (or 45.16%) of total asset value. This was followed by Malta at €57.93 million (24.80%) and

² Three investment properties, with a combined asset value of €36.8 million were held for sale as at the end of FY2024.

¹ Excluding Harbour (APM) and Villa Marika. Occupancy refers to the ratio of leased investment properties in sqm to the total owned rental properties in sqm.

Latvia at €44.04 million (18.85%). Lithuania represented €24.70 million (10.58%) while Estonia is just €1.44 million (0.62%).

By rentable area, Romania dominated the portfolio with 56,817 sqm (48.89%), followed by Latvia with 27,755 sqm (23.88%) and Lithuania with 22,581 sqm (19.43%). Malta accounted for 7,267 sqm (6.25%) and Estonia for 1,803 sqm (1.55%).

The three largest assets in the portfolio by value are MIRO Offices in Romania, Art Business Centre 7, also in Romania, and the parcels of land owned by Harbour (APM) in Malta. Collectively, these assets amounted to €119.90 million, or 51.33% of the Group's total property portfolio. Furthermore, MIRO Offices and Art Business Centre 7, together with the REHAU Factory in Lithuania, are the largest three assets in terms of rentable area, collectively representing 57.65% of the portfolio's total leasable area.

MIRO Offices had a carrying value of €62.70 million and a rentable area of 24,245 sqm, representing 26.84% of the total portfolio by value and 20.86% by rentable area. Commissioned in 2021, MIRO is a premier office block complemented by a 1,700 sqm outdoor plaza and 482 car parking spaces. Certified BREEAM Excellent and WELL Platinum, the highest certification levels achieved in Romania, the Class A building demonstrates a commitment to sustainability and workplace wellbeing. Situated in a commercial district in northern Bucharest, it is minutes away from Bucharest International Airport and Băneasa Shopping City. Fully occupied, the property houses prestigious global brands including KPMG Romania, Rovere, COS, Masia, Biocodex, Speedwell, Neoclinique, Stradale, Jura, HiSky, and Doctor Skin. The Group acquired a 75% shareholding in MIRO in 2022 and took full ownership in 2024.

Art Business Centre 7, with an asset value of €31.20 million and 23,773 sqm of rentable space, accounted for 13.36% of the total value and 20.45% of the total rentable area of the Group's portfolio. Located in the affluent Nordului neighbourhood in northern Bucharest, the Art Business Centre 7 is anchored by Ponderas Academic Hospital, part of the Regina Maria Private Healthcare Network. The building benefits from a strategic location with convenient access to public transportation, situated just a 5-to-7-minute walk from several bus routes and a metro station. On-site services include visitor parking, a coffee shop, and a snack bar, enhancing the amenities and appeal of the building.

Located within the Klaipeda Free Economic Zone ("FEZ"), the REHAU micro cable pipe factory spans 50,000 sqm and lies along Lithuania's busiest cargo corridor – the A1 highway. Situated just 7 kilometres from Klaipeda's city centre and seaport, and 35 kilometres from Palanga Airport, the property also enjoys excellent railway connectivity, reinforcing its strategic logistical positioning. The Klaipeda FEZ extends over 4.12 million sqm and accommodates more than 100 companies from 18 countries, making it a major regional industrial hub. The REHAU facility, launched in December 2020, was developed by YIT Lietuva as REHAU's first plant in Northern Europe and was purpose-built, ensuring the premises were tailored to the tenant's precise operational requirements. This development also achieved BREEAM certification, the global benchmark for sustainable building performance. As at 31 December 2024, the asset carried a value of €19.40 million, equivalent to 8.31% of the Group's property portfolio, and had a rentable area of 18,980 square metres, representing 16.33% of the Group's total leasable area. The building is leased for the long term with a WALT of 17 years – the longest among all properties owned by the Group.

6. SECURITIES IN ISSUE

6.1 INFORMATION RELATING TO THE ISSUER'S SHARES

The authorised share capital of Hili Properties is €120 million divided into 600 million ordinary shares of €0.20 per share. The issued share capital is €80,178,540 divided into 400,892,700 ordinary shares of €0.20 per share. The key market data relating to the Group's shares is provided in the table below:

Hili Properties p.l.c. Key Market Data
for the financial year 31 December		2024
		Actual
Total number of shares in issue ('000)	[A]	400,893
Share price as at 30 May 2025 (€)	[B]	0.24
Market capitalisation (€'000)	[A multiplied by B]	96,214
Total equity (€'000)	[C]	120,180
Net debt (€'000)	[D]	100,909
Enterprise value (€'000 )	[A multiplied by B] + [D]	197,123
EBITDA (€'000)	[E]	13,151
Net profit (€'000 )	[F]	4,772
Earnings per share (€)	[F divided by A]	0.01
Net asset value per share (€)	[C divided by A]	0.30
Price-to-earnings ratio (times)	[A multiplied by B] divided by [F]	20.16
Enterprise value-to-EBITDA (times)	([A multiplied by B] + [D]) divided by [E]	14.99
Price-to-net asset value (times)	[A multiplied by B] divided by [C]	0.80

6.2 INFORMATION RELATING TO RELATED PARTIES' BONDS

The table below provides a list of the bonds issued by other subsidiaries of Hili Ventures, all of which are listed and traded on the Regulated Main Market (Official List) of the Malta Stock Exchange:

Security ISIN	Security	Symbol Code	Amount Outstanding	Market Price*
Premier Capital p.l.c. MT0000511213	3.75% Premier Capital p.l.c. Unsecured 2026	PC26A	€ 65,000,000 € 65,000,000	99.80%
Hili Finance Company p.l.c.
MT0001891226	4.00% Hili Finance Company p.l.c. Unsecured and Guaranteed 2027	HF27A	€ 50,000,000	98.00%
MT0001891200	3.85% Hili Finance Company p.l.c. Unsecured and Guaranteed 2028	HF28A	€ 40,000,000	99.00%
MT0001891218	3.80% Hili Finance Company p.l.c. Unsecured and Guaranteed 2029	HF29A	€ 80,000,000	97.00%
MT0001891234	5.00% Hili Finance Company p.l.c. Unsecured and Guaranteed 2029	HF29B	€ 80,000,000	100.00%
			€ 250,000,000

* As at 30 May 2025.

7. ECONOMIC UPDATE

7.1 ROMANIA3

At the beginning of 2025, Romania's economic sentiment remained broadly positive despite fiscal and geopolitical uncertainty. The construction, agriculture, and transport sectors exhibited improved performance expectations, supported by the country's accession to the Schengen Area and ongoing infrastructure upgrades. A pronounced rebound in residential construction, together with a steady stream of EU-funded public infrastructure investment, is expected to underpin a gradual recovery in gross fixed capital formation. Nonetheless, private investment remains subdued, constrained by fiscal unpredictability and ongoing regional tensions. Concurrently, early indicators suggest a slowdown in retail activity and household consumption, as restrictive income policies and stubbornly elevated inflation continue to erode real disposable income.

Romania's export outlook for 2025 is tempered by the broader effects of increased US tariffs on key European trading partners, despite Romania's own limited direct exposure to US trade. Manufactured goods are particularly vulnerable through indirect channels. However, the negative contribution of net exports to GDP growth is expected to decline as the deceleration in domestic demand curbs import growth. Meanwhile, improved prospects for the export of services and agricultural products are set to partially offset external drag. Overall, real GDP is forecast to expand modestly by 1.4% in 2025 from a growth of 0.8% in 2024.

Looking further ahead, real GDP growth is projected to strengthen moderately to reach 2.2% in 2026, underpinned by improved macroeconomic conditions. The anticipated easing of monetary policy and a more benign inflationary environment are likely to create more favourable financing conditions, thereby supporting a recovery in private consumption. Provided that fiscal and political risks abate, investor confidence should rebound, leading to a more decisive revival in gross fixed capital formation. External demand is also expected to improve as growth prospects for EU trading partners brighten, although net exports are projected to remain a mild drag on overall GDP growth. Despite a notable widening in 2024, the current account deficit is expected to narrow to 7.9% of GDP in 2025, and to 7% in 2026, from 8.5% in 2024. However, the external imbalance remains elevated and subject to downside risks, particularly in the event of sustained national political uncertainty or a sharper-thanexpected deterioration in global demand.

The labour market is expected to remain relatively resilient. Employment growth is projected to continue through 2025 and 2026, largely driven by private sector hiring, while the unemployment rate is forecast to decline to 5.3% in 2025, and to 5.2% in 2026, from 5.4% in 2024. Although nominal wage growth remained in double digits during 2024 – exerting pressure on Romania's cost competitiveness – the trajectory of wage inflation is forecast to moderate meaningfully. This adjustment has been reinforced by a government-enacted public sector wage freeze from December 2024 and the rollout of a new minimum wage setting mechanism in early 2025.

³ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

Key Economic Indicators	2022 Actual	2023 Actual	2024 Actual	2025 Forecast	2026 Projection
Romania
Real GDP growth (%, year-on-year)	4.00	2.40	0.80	1.40	2.20
Inflation - HICP (%, year-on-year)	12.00	9.70	5.80	5.10	3.90
Unemployment (%)	5.60	5.60	5.40	5.30	5.20
Current account balance (% of GDP)	(9.60)	(7.30)	(8.50)	(7.90)	(7.00)
General fiscal balance (% of GDP)	(6.40)	(6.60)	(9.30)	(8.60)	(8.40)
Gross public debt (% of GDP)	47.90	48.90	54.80	59.40	63.30

Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty ', 19 May 2025.

On the inflation front, the disinflation process is expected to remain uneven. Following a sharp drop in inflation to 5.8% in 2024 from 12% in 2022 and 9.7% in 2023, the pace of disinflation is forecast to slow in 2025, with inflation cooling to 5.1% in 2025 and 3.9% in 2026. Underlying inflationary pressures – particularly from services – remain sticky, and the scheduled removal of the electricity price cap is expected to push domestic energy costs higher. However, disinflationary forces may emerge from softer international energy and agri-food prices.

From a fiscal standpoint, Romania's general government deficit surged to 9.3% of GDP in 2024 from below 7% in the prior two years, driven primarily by a substantial increase in public sector wages, pensions, and debt servicing costs. In response, a fiscal consolidation package worth circa 2% of GDP was adopted in late 2024. This includes a nominal freeze on public remuneration and pensions, as well as revenue-enhancing measures equivalent to 0.3% of GDP. As a result, the general government deficit is forecast to improve moderately to 8.6% in 2025, and further to 8.4% in 2026. These forecasts do not incorporate the planned tax reform and other elements of Romania's Medium-Term Fiscal Strategy Programme which could generate a more pronounced fiscal correction. Nonetheless, government debt is projected to climb steadily to over 63% of GDP by 2026 from 54.8% in 2024, reflecting continued high primary deficits and a rising interest burden.

7.2 LATVIA4

In 2024, the Latvian economy contracted by 0.4% compared to the growth of 2.9% registered in 2023, amid subdued investment activity and weak external demand. Although private consumption recovered from the contraction experienced in 2023, it remained tepid at 0.5% growth, underpinned by strong wage dynamics. However, heightened geopolitical uncertainty and elevated financing costs weighed heavily on private investment, while the delay in EU co-financed public investment further exacerbated the downturn.

After recording a robust 9.9% expansion in 2023, investment plummeted by 6.7% in 2024. Meanwhile, exports of goods and services declined, reflecting a challenging external environment and a

⁴ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

deterioration in cost competitiveness. Despite these headwinds, public consumption remained a key pillar of support to economic activity. Inflation was moderate at 1.3% in 2024 when compared to 9.1% in 2023, owing mainly to a steep decline in energy prices earlier in the year, although price pressures related to services and food intensified toward year-end. Labour market conditions deteriorated only marginally, with the unemployment rate edging up to 6.9% from 6.5% in 2023.

In 2025, the Latvian economy is projected to stage a mild recovery, with GDP growth expected at 0.5%. This upturn is expected to be driven by robust wage growth and an increase in disposable income stemming from tax reforms which should help sustain private consumption. Nevertheless, continued geopolitical tensions are likely to encourage precautionary savings, with the savings rate anticipated to remain elevated at 7.5%. Investment is projected to contract further by 1.2% due to lingering uncertainty and negative carry-over effects notwithstanding the expected inflows of EU funds and defence-related expenditure.

Public consumption is set to remain firm, while exports are expected to recover gradually despite external challenges, particularly the imposition of US tariffs impacting Latvia's key trading partners. Inflation is forecast to rise to 3%, driven by persistent services inflation fuelled by rising wages. Labour market conditions are expected to improve slightly, with the unemployment rate marginally declining to 6.8%, supported by stable demand for employment.

Key Economic Indicators	2022 Actual	2023 Actual	2024 Actual	2025 Forecast	2026 Projection
Latvia
Real GDP growth (%, year-on-year)	1.80	2.90	(0.40)	0.50	2.00
Inflation - HICP (%, year-on-year)	17.20	9.10	1.30	3.00	1.70
Unemployment (%)	6.90	6.50	6.90	6.80	6.60
Current account balance (% of GDP)	(5.50)	(3.90)	(3.30)	(3.90)	(3.50)
General fiscal balance (% of GDP)	(4.90)	(2.40)	(1.80)	(3.10)	(3.10)
Gross public debt (% of GDP)	44.40	44.60	46.80	48.60	49.30

Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty ', 19 May 2025.

In 2026, the pace of growth is expected to accelerate, with GDP forecast to expand by 2%, underpinned by a revival in both investment and external demand. Investment is projected to return to positive territory, increasing by 2.6% on the back of improved business sentiment and continued public sector support. Inflation is expected to be moderate at 1.7%, as pressures from services and processed food begin to ease, although core inflation is set to remain above headline inflation. The unemployment rate is forecast to decline further to 6.6%, reflecting firming labour demand. Compensation per employee is expected to remain on a strong upward trajectory, increasing by 5.5% in 2025 and 4.5% in 2026, due, in part, to higher public sector wages and minimum wage adjustments.

From a fiscal perspective, the general government balance improved to -1.8% of GDP in 2024, down from -2.4% in 2023. This was largely the result of buoyant tax revenue, supported by measures such

as the introduction of advance corporate income tax payments for the financial sector, higher excise duties, and increased dividends from state-owned enterprises. Expenditure growth was contained by the withdrawal of energy price mitigation measures. However, the fiscal outlook is set to weaken going forward as the deficit is expected to widen to -3.1% of GDP in 2025 and 2026, driven by a decline in income tax revenue linked to personal income tax reform and reduced property income amid lower profitability of public enterprises. Expenditure growth will be led by higher compensation to public employees, increased social transfers, rising interest payments, as well as additional expenditure on defence. The public debt-to-GDP ratio is forecast to rise from 46.8% in 2024 to 48.6% in 2025 and to 49.3% in 2026, reflecting cumulative deficits and stock-flow adjustments.

The current account balance remained in deficit at -3.3% of GDP in 2024 (2023: -3.9%) and is projected to deteriorate again to -3.9% in 2025 before narrowing modestly to -3.5% in 2026. The sustained imbalance reflects both weak export performance and a gradual recovery in domestic demand, with external competitiveness set to remain under pressure.

7.3 LITHUANIA5

In 2024, Lithuania's economy grew by 2.8% compared to 0.3% registered in 2023 amid strong end-ofyear developments in consumption and investment, both of which also contributed to a significant positive carry-over effect into 2025. This momentum provides a stable platform for further expansion despite persistent geopolitical tensions and ongoing structural uncertainties. Private consumption is expected to remain resilient in the short term, aided by sustained real wage growth. Nonetheless, the growth trajectory is likely to be tempered by the introduction of higher excise duties from the beginning of 2025 and a broader environment of caution, as reflected in the projected rise in the savings rate to historically elevated levels of between 12% and 13% of disposable income.

Investment is forecast to recover steadily, underpinned by projects funded through the EU Recovery and Resilience Facility and rising defence-related expenditure. However, heightened uncertainty is likely to limit private sector investment, particularly during 2025. As a result, total investment is expected to expand by 3.5% in 2025 and 4% in 2026. Export dynamics are also set to improve, despite lingering trade tensions and tariff developments. While Lithuania's direct exposure to the US remains low – around 5% of total exports in 2024 – some adverse spillovers to goods exported are expected. Nevertheless, Lithuania's competitiveness relative to key trading partners, coupled with robust performance in the services sector and improving export markets, should support growth in total exports of between 3% and 3.5% in both 2025 and 2026. On the downside, strong domestic demand is projected to keep a modest imbalance between export and import growth, with the latter likely to outpace the former.

Labour market conditions are forecast to continue tightening. The labour force expansion witnessed between 2022 and 2024 – primarily due to the influx of displaced individuals from Ukraine – is expected to level off in 2025, with natural demographic decline resuming in 2026. Against a backdrop of expanding economic activity, the unemployment rate is projected to decline to 6.8% in 2025, and

⁵ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

to 6.6% in 2026, compared to 7.1% in 2024. Continued mismatches in skills and job availability are expected to affect nominal wage growth at relatively high levels, with average increases of 7.5% in 2025 and a marginal deceleration to around 7% in 2026. This easing reflects both declining inflationary pressures and the high base of wage growth registered in prior years.

Key Economic Indicators	2022 Actual	2023 Actual	2024 Actual	2025 Forecast	2026 Projection
Lithuania
Real GDP growth (%, year-on-year)	2.50	0.30	2.80	2.80	3.10
Inflation - HICP (%, year-on-year)	18.90	8.70	0.90	2.60	1.20
Unemployment (%)	6.00	6.90	7.10	6.80	6.60
Current account balance (% of GDP)	(6.10)	1.10	2.60	2.00	1.90
General fiscal balance (% of GDP)	(0.70)	(0.70)	(1.30)	(2.30)	(2.30)
Gross public debt (% of GDP)	38.10	37.30	38.20	41.20	43.90

Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty ', 19 May 2025.

Inflationary pressures are expected to re-emerge in 2025, with inflation projected to rise to 2.6% from 0.9% in 2024, primarily driven by higher energy and food prices earlier in the year, as well as new excise duties on petrol, alcohol, and cigarettes. Persistent services inflation will also continue to add to price pressures. Nevertheless, global commodity markets are set to exert a moderating influence as oil prices trend downward, partially offsetting increases in gas and electricity tariffs. In 2026, services inflation is projected to ease gradually to around 4% by year-end, as wage growth normalises. Most other components of inflation are expected to rise only gradually. The impact of continuing trade tensions is anticipated to contribute to a broad disinflationary trend, bringing inflation down to 1.2% in 2026.

On the fiscal front, Lithuania's general government deficit widened moderately to 1.3% of GDP in 2024, up from -0.7% in 2023. The increase was attributed to higher expenditure across several categories, including public sector wages, social transfers, interest costs, and intermediate consumption – some of which stemmed from project-related expenditure originally planned for 2023.

Lithuania's government is expected to make its fiscal policy more supportive of economic growth in 2025, with the deficit projected to increase to 2.3% of GDP. This deterioration reflects a rise of 210 basis points in expenditure as a share of GDP, largely driven by an increase in social benefits including indexed pensions and adjustments to the 'minimum consumption basket'. Additional upward pressures will stem from public investment, intermediate consumption, wages, and interest payments. Revenue growth, although positive, is projected to lag, rising by only 110 basis points of GDP, largely due to increased VAT and excise collections, and stronger social security contributions.

The deficit is expected to stabilise at 2.3% of GDP in 2026, with general government expenditure forecast to grow by a further 30 basis points of GDP. This will be nearly offset by a 20-basis point increase in revenue, resulting in a minimal change to the overall fiscal balance. Lithuania's public debt-

to-GDP ratio stood at 38.20% in 2024 and is projected to rise to 41.2% in 2025 and 43.9% in 2026. This trajectory reflects the impact of sustained budget deficits and significant stock-flow adjustments, which are necessary to cover imbalances in the state budget, especially as surpluses in the Social Security Fund cannot be mobilised to bridge general government funding gaps.

7.4 MALTA6

In 2024, the Maltese economy expanded by 6%, exceeding expectations by circa 100 basis points. This robust performance was underpinned by strong domestic demand, including a 5.7% increase in private consumption and a notable 7.3% growth in government consumption. The positive contribution of net exports further reinforced GDP growth, driven predominantly by the sustained expansion in tourism, professional services, and other service-oriented sectors.

The tourism sector stood out as a key growth driver, with total tourist expenditure rising by just over 23% over the previous year, a period which had already exceeded pre-pandemic benchmarks. Other high-performing segments included financial, IT, and recreational services, all of which benefited from resilient global demand and Malta's competitive positioning. Moreover, Malta's limited exposure to goods trade and its ability to shield itself from external commodity price shocks allowed the economy to remain insulated from international volatility. Investment, having contracted in 2023, returned to growth in 2024, rising by 2.4%, albeit remaining subdued by historical standards.

Key Economic Indicators	2022 Actual	2023 Actual	2024 Actual	2025 Forecast	2026 Projection
Malta
Real GDP growth (%, year-on-year)	4.30	6.80	6.00	4.10	4.00
Inflation - HICP (%, year-on-year)	6.10	5.60	2.40	2.20	2.10
Unemployment (%)	3.50	3.50	3.10	3.10	3.10
Current account balance (% of GDP) General fiscal balance (% of GDP)	(1.80) (5.20)	4.60 (4.70)	3.60 (3.70)	3.70 (3.20)	3.40 (2.80)
Gross public debt (% of GDP)	49.50	47.90	47.40	47.60	47.30

Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty ', 19 May 2025.

Looking ahead, real GDP is forecast to expand by 4.1% in 2025 and 4% in 2026, demonstrating normalisation from the exceptional pace recorded in 2023 and 2024. Private consumption is set to remain the dominant engine of growth, with projected increases of 4.1% in 2025 and 3.9% in 2026. Net exports are anticipated to remain a positive contribution, while investment is expected to maintain a modest upward trajectory, growing by 2.5% in 2025 and by 2.1% in 2026. Nonetheless, these investment growth rates remain below Malta's long-term average and reflect a more cautious investment sentiment in the future.

⁶ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

The labour market remained dynamic in 2024, with employment rising by 5.1%, buoyed by continued immigration to address persistent labour shortages. However, employment growth is expected to ease gradually to 3.1% in 2025 and 2.8% in 2026. The unemployment rate is expected to stabilise at a historically low level of 3.1% in both 2025 and 2026. Nominal wage growth per employee is projected to remain ahead of inflation, with expected increases of 4.1% in 2025 and 3.5% in 2026, highlighting continued pressure on wages amid a tight labour market.

Inflation fell to 2.4% in 2024, compared to 5.6% in 2023 and 6.1% in 2022, and is projected to decline further to 2.2% in 2025 and 2.1% in 2026. While food and services prices are expected to remain the main inflationary drivers, energy prices are likely to remain unchanged in nominal terms as government policy continues to maintain prices at 2020 levels.

On the fiscal front, the general government deficit narrowed to 3.7% of GDP in 2024, down from 4.7% in 2023. This improvement was primarily supported by higher revenue from income and wealth taxation, particularly driven by one-off transactions and enhanced tax collection efforts. These gains were partially offset by increased current and capital expenditures.

In 2025, the deficit is expected to decline further to 3.2% of GDP, largely reflecting the withdrawal of airline-related capital spending and a continued drop in subsidies as a share of GDP. Although social spending and energy-related support measures are set to remain unchanged in nominal terms, their GDP share will fall due to nominal GDP growth. However, the reform of personal income tax brackets is expected to weigh on revenue collection. By 2026, the deficit is forecast to fall further to 2.8% of GDP, as a result of lower subsidy levels and the stronger growth of overall revenues relative to nominal GDP. Overall, the general government debt ratio is projected to remain broadly stable up to 2026, staying below the 48% of GDP threshold, underscoring Malta's comparatively sound fiscal position within the European context.

7.5 ESTONIA7

Estonia's GDP contracted by 0.3% in 2024, marking the second consecutive year of economic weakness following the contraction of 3% recorded in 2023. Nevertheless, quarterly data indicate that activity gradually recovered through 2024, with growth recorded in each of the final three quarters. The fourth quarter of the year registered the strongest performance, expanding by 0.7% on the back of a rebound in both household consumption and goods exported. However, the improvement in consumption is attributed in part to frontloaded spending by households ahead of the anticipated rise in taxes scheduled for 2025.

Despite the increase in tax burdens, business and consumer confidence indicators strengthened in early 2025. Growth in real disposable income and a sharp reduction in borrowing costs – facilitated by variable-rate lending – have helped to stimulate both consumption and investment. Nonetheless, a pronounced escalation in global trade tensions, particularly following the announcement of new US tariffs, has raised uncertainty and is expected to dampen near-term private consumption growth.

⁷ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

Investment activity, which has remained muted in recent years due to low-capacity utilisation, is likely to come under additional strain as private sector projects are delayed or cancelled. Part of this drag is expected to be mitigated by increased public sector investment, with large-scale infrastructure programmes such as Rail Baltic and national defence initiatives proceeding as planned.

The external environment is also expected to weigh on Estonia's short-term outlook. While direct trade exposure to the US is limited, exports are expected to decline due to slowing economic growth among Estonia's key trading partners, particularly the Nordic countries and Germany. As a result, GDP growth is forecast at 1.1% in 2025, with the outlook improving further leading to an expansion of 2.3% in 2026, underpinned by rising household incomes and the expected easing of geopolitical and economic uncertainty.

The labour market has remained resilient, supported by a historically high participation rate. The unemployment rate stood at 7.7% in early 2025 and is forecast to edge slightly lower to 7.60% in 2025 and to 7.3% in 2026. However, employment growth is likely to remain subdued due to the effects of labour hoarding observed in prior years, which have left employers with relatively high staffing levels despite weak output growth.

Key Economic Indicators	2022 Actual	2023 Actual	2024 Actual	2025 Forecast	2026 Projection
Estonia
Real GDP growth (%, year-on-year)	0.10	(3.00)	(0.30)	1.10	2.30
Inflation - HICP (%, year-on-year)	19.40	9.10	3.70	3.80	2.30
Unemployment (%)	5.60	6.40	7.60	7.60	7.30
Current account balance (% of GDP)	(3.90)	(1.70)	(2.00)	(2.10)	(2.00)
General fiscal balance (% of GDP)	(1.10)	(3.10)	(1.50)	(1.40)	(2.40)
Gross public debt (% of GDP)	19.10	20.20	23.60	23.80	25.40

Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty ', 19 May 2025.

Inflationary pressures remain elevated due to fiscal measures. Headline inflation reached 4.4% in Q1 2025, led by service price increases linked to the introduction of a new car registration tax, followed by processed food inflation. While declining energy prices and more stable trends in other consumer goods are expected to exert downward pressure, additional tax increases scheduled for mid-2025 are likely to keep inflation elevated in the near term. Inflation is forecast to trend marginally higher to 3.8% in 2025 from 3.7% in 2024, before declining to 2.3% in 2026, reflecting the waning impact of tax hikes and easing global price pressures in food, energy, and other industrial goods.

On the fiscal front, the general government deficit narrowed to 1.5% of GDP in 2024, a significant improvement from the deficit of 3.1% of GDP recorded in 2023. Revenue growth was driven by increases in VAT and environmental tax rates, robust labour income growth, and frontloaded corporate tax payments and vehicle purchases ahead of tax reforms. On the expenditure side, lower-

than-planned outlays on defence, social benefits, and local government operations contributed to the improved fiscal position.

In 2025, the deficit is projected to edge lower to 1.4% of GDP, primarily due to strong revenue growth. This is expected to stem from several tax policy changes, including a two-percentage point increase in personal and corporate income tax rates to 22%, a four-percentage point increase in the tax on credit institutions' income to 18%, and a two-percentage point rise in the VAT rate to 24%. A new motor vehicle tax is also expected to contribute to revenue. Concurrently, government capital expenditure is forecast to rise sharply, particularly on defence-related projects.

The fiscal outlook for 2026 suggests a deterioration, with the deficit expected to widen to 2.4% of GDP. Although further tax increases – raising personal and corporate income tax rates to 24%, and imposing higher excise duties on alcohol, tobacco, and energy – are planned, the impact of an expanded personal income tax-free threshold is estimated to reduce revenues by 1.5% of GDP. Fiscal forecasts for 2026 are also clouded by political uncertainty, following policy announcements from the new governing coalition.

Public debt is projected to rise moderately by 2026, increasing from 23.6% of GDP in 2024 (2023: 20.2%) to 25.4% in 2026. Despite this upward trend, the debt outlook has improved relative to earlier projections due to the more contained fiscal deficits. Estonia is therefore expected to retain one of the lowest public debt burdens in the EU.

PART 2 – FINANCIAL REVIEW

8. FINANCIAL ANALYSIS – HILI ESTATES LIMITED

The historical information is extracted from the audited annual financial statements of Hili Estates for the years ended 31 December 2022, 31 December 2023, and 31 December 2024.

The forecast information has been provided by the Issuer and is based on future events and assumptions which the Group believes to be reasonable. Accordingly, actual outcomes may be adversely affected by unforeseen circumstances, and the variation between forecasts and actual results could be material.

Hili Estates Limited
Income Statement
for the financial year ending 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000
Revenue	1,151	1,036	1,018	1,026
Administrative expenses	(133)	(102)	(133)	(107)
Other operating income	3	4	-	4
Operating profit	1,021	938	885	923
Net investment income	115	308	777	79
Net finance income / (costs)	20	(202)	(68)	(69)
Profit before tax	1,156	1,044	1,594	933
Taxation	(382)	(344)	(368)	(328)
Profit for the year	774	700	1,226	605
Total comprehensive income for the year	774	700	1,226	605

INCOME STATEMENT

Over the three-year period from FY2022 to FY2024, Hili Estates exhibited a relatively consistent level of revenue generation, reflective of stable rental income derived from the lease of the Nineteen Twenty-Three building. Revenue eased to €1.02 million in FY2024. However, a modest recovery is projected in FY2025, with revenue expected to stabilise at €1.03 million.

Net operating expenses (comprising administrative expenses less other operating income) increased to €0.13 million in FY2024, although they are forecast to ease back to €0.10 million in FY2025.

Operating profit declined to €0.89 million in FY2024, albeit a recovery to €0.92 million is forecast for FY2025.

Net investment income peaked at €0.78 million in FY2024 on the back of an increase in the fair value of investment property. However, this figure is expected to drop sharply in FY2025 to just €0.08 million in the forecast year.

Hili Estates incurred net finance costs of €0.07 million in FY2024. For FY2025, these are forecast to remain broadly unchanged year-on-year.

Profit before tax rebounded strongly to €1.59 million in FY2024, driven by elevated net investment income. Profit before tax is forecast to decline to €0.93 million in FY2025.

Taxation expense increased to €0.37 million in FY2024. For FY2025, the tax charge is forecast to remain steady at €0.33 million.

Overall, profit for the year rose sharply to €1.23 million in FY2024 given the uplifts registered for the year. For FY2025, net profit is forecast to moderate to €0.61 million.

Hili Estates Limited Statement of Cash Flows for the financial year ending 31 December	2022 Actual €'000	2023 Actual €'000	2024 Actual €'000	2025 Forecast €'000
Net cash from operating activities	775	281	670	813
Net cash from investing activities	3,203	899	16	2,496
Free cash flow	3,978	1,180	686	3,309
Net cash used in financing activities	(5,249)	(1,360)	(598)	(3,059)
Net movement in cash and cash equivalents	(1,271)	(180)	88	250
Cash and cash equivalents at beginning of year	1,475	204	24	112
Cash and cash equivalents at end of year	204	24	112	362

STATEMENT OF CASH FLOWS

Hili Estates generated net cash from operating activities of €0.67 million in FY2024. A further increase is projected in FY2025, with net operating cash flow forecast to reach €0.81 million, supported by improved dynamics.

In FY2024, net cash flows from investing activities declined to €0.02 million due lower injections from the parent company. In FY2025, net cash flows from investing activities are forecast to recover strongly to €2.50 million, driven by an inflow of €2.60 million from related parties.

Net cash used in financing activities dropped to €0.60 million in FY2024, and included €0.49 million in cash advanced from Hili Properties, repayment of bank borrowings of €0.77 million, and interest paid of €0.32 million. In FY2025, net financing cash outflows are forecast to rise significantly to €3.06 million, including €2.74 million in bank loan repayments and €0.32 million in interest.

Net movements in cash and cash equivalents turned positive at €0.09 million in FY2024. A further increase in net cash of €0.25 million is forecast for FY2025, underpinned by strong free cash flow generation. Consequently, closing cash balances are expected to improve from €0.11 million as at 31 December 2024 to €0.36 million as at the end of FY2025.

STATEMENT OF FINANCIAL POSITION

Total assets stabilised at €25.13 million in FY2024, and mainly comprised investment property (€18.30 million) and current and non-current loans receivables (€6.40 million). For FY2025, total assets are forecast to remain virtually unchanged at €25.17 million.

Total liabilities decreased to €7.52 million in FY2024, mainly as a result of bank principal repayments, partly offset by higher amounts in other liabilities. In FY2025, total liabilities are forecast to decline further to €6.94 million, with the reduction primarily attributed to repayments of bank borrowings to €2.59 million compared to €5.36 million as at 31 December 2024.

Total equity rose by €1.23 million to €17.61 million in FY2024. This upward trend was driven by earnings retention and an increase in the revaluation reserve. In FY2025, total equity is projected to rise further to €18.23 million, with retained earnings expected to reach €2.93 million (from €2.38 million as at end FY2024) and the revaluation reserve to grow marginally to €6.09 million.

Hili Estates Limited
Statement of Financial Position
as at 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000
ASSETS
Non-current assets
Investment property	17,100	17,500	18,300	18,483
Loans and receivables	9,953	4,428	5,606	5,350
Trade and other receivables	99	134	140	141
	27,152	22,062	24,046	23,974
Current assets
Loans and receivables	5,723	1,745	790	790
Trade and other receivables	121	180	70	42
Tax assets	-	63	115	-
Cash and cash equivalents	204	24	112	362
	6,048	2,012	1,087	1,194
Total assets	33,200	24,074	25,133	25,168

EQUITY
Capital and reserves
Share capital	9,216	9,216	9,216	9,216
Revaluation reserve	5,028	5,297	6,011	6,090
Retained earnings	1,439	1,870	2,383	2,926
	15,683	16,383	17,610	18,232
LIABILITIES
Non-current liabilities
Bank borrowings	6,067	5,357	4,575	1,809
Amounts owed to related entities	8,614	-	498	2,600
Tax liabilities	1,389	1,437	1,503	1,501
	16,070	6,794	6,576	5,910
Current liabilities
Bank borrowings	955	765	781	781
Tax liabilities	186	-	-	-
Trade and other payables	306	132	166	245
	1,447	897	947	1,026
Total liabilities	17,517	7,691	7,523	6,936
Total equity and liabilities	33,200	24,074	25,133	25,168

9. FINANCIAL ANALYSIS – HARBOUR (APM) INVESTMENTS LTD

The historical information is extracted from the audited annual financial statements of Harbour (APM) for the years ended 31 December 2022, 31 December 2023, and 31 December 2024.

Harbour (APM) Investments Ltd Income Statement
for the financial year ending 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000

Revenue	35	35	36	42
Administrative expenses	(67)	(19)	(18)	(25)
Other operating income	-	25	-	-
Operating profit / (loss)	(32)	41	18	17
Net investment loss	(7)	-	-	-
Net finance (costs) / income	36	(5)	5	7
Profit / (loss) before tax	(3)	36	23	24
Taxation	(22)	(19)	(12)	(12)
Profit / (loss) for the year	(25)	17	11	12
Total comprehensive income / (expense) for the year	(25)	17	11	12

INCOME STATEMENT

Revenue remained relatively static in FY2024, however it is expected to increase moderately to €0.04 million in FY2025.

Administrative expenses remained broadly stable at €0.02 million in FY2024. For FY2025, administrative expenses are forecast to increase slightly to €0.03 million.

In FY2024, operating profit declined to €0.02 million as the absence of other operating income weighed on performance. For FY2025, operating profit is forecast to remain relatively stable at €0.02 million.

After accounting for a marginal net finance income, Harbour (APM) recorded a pre-tax profit of €0.02 million which is expected to remain virtually unchanged for FY2025.

Taxation decreased to €0.01 million in FY2024. Overall, Harbour (APM) achieved a net profit of €0.01 million in FY2024. A net profit of €0.01 million is also projected in FY2025.

Harbour (APM) Investments Ltd Statement of Cash Flows for the financial year ending 31 December	2022 Actual €'000	2023 Actual €'000	2024 Actual €'000	2025 Forecast €'000
Net cash from operating activities	5	4	9	28
Net cash from / (used in) financing activities	1	(142)	(74)	-
Net movement in cash and cash equivalents	6	(138)	(65)	28
Cash and cash equivalents at beginning of year	198	204	66	1
Cash and cash equivalents at end of year	204	66	1	29

STATEMENT OF CASH FLOWS

Net operating cash flows stood at €0.01 million in FY2024 and are expected to increase to €0.03 million in FY2025.

In terms of financing activities, an outflow of €0.07 million was recorded in FY2024. No financing activity is forecast for FY2025.

Net movement in cash and cash equivalents was marginally positive in FY2024. In FY2025, a recovery in liquidity is being forecasted, with a positive net cash movement of €0.03 million driven entirely by operating inflows.

Cash balances were almost fully depleted in FY2024. In FY2025, closing cash and cash equivalents are expected to rise to €0.03 million.

STATEMENT OF FINANCIAL POSITION

Total assets increased marginally to €26.19 million in FY2024. In FY2025, they are expected to remain broadly at the same level, with investment property constituting the core asset.

Total liabilities trended slightly higher to €2.12 million in FY2024, due to an increase in trade and other payables. No material changes are expected to be recorded in FY2025.

Total equity remained robust in FY2024, comprising €23 million in share capital, with retained earnings (€0.07 million) and the revaluation reserve (€0.99 million) forming the other key components. For FY2025, total equity is forecast to increase to €24.08 million by year-end.

Harbour (APM) Investments Ltd
Statement of Financial Position
as at 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000
ASSETS
Non-current assets
Investment property	25,750	26,000	26,000	26,000
Loans and receivables	1,283	88	162	169
	27,033	26,088	26,162	26,169
Current assets
Trade and other receivables	27	2	4	5
Tax assets	-	9	19	17
Cash and cash equivalents	204	66	1	29
	231	77	24	51
Total assets	27,264	26,165	26,186	26,220

EQUITY
Capital and reserves
Share capital	23,009	23,009	23,009	23,009
Revaluation reserve	755	985	985	985
Retained earnings	657	59	70	82
	24,421	24,053	24,064	24,076
LIABILITIES
Non-current liabilities
Amounts owed to related entities	690	-	-	30
Tax liabilities	2,060	2,080	2,080	2,080
	2,750	2,080	2,080	2,110
Current liabilities
Tax liabilities	12	-	-	-
Trade and other payables	81	32	42	34
	93	32	42	34
Total liabilities	2,843	2,112	2,122	2,144
Total equity and liabilities	27,264	26,165	26,186	26,220

10. FINANCIAL ANALYSIS – HILI PROPERTIES P.L.C.

The historical information is extracted from the audited annual financial statements of Hili Properties for the years ended 31 December 2022, 31 December 2023, and 31 December 2024.

Hili Properties p.l.c. Income Statement
for the financial year ending 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000
Revenue	12,249	15,687	15,837	15,568
Net operating expenses	(3,801)	(3,558)	(2,686)	(3,157)
EBITDA	8,448	12,129	13,151	12,411
Depreciation	(49)	(61)	(68)	(68)
Operating profit	8,399	12,068	13,083	12,343
Net investment income / (loss)	3,041	2,457	(419)	785
Net finance costs	(4,642)	(6,931)	(6,535)	(6,317)
Profit before tax	6,798	7,594	6,129	6,811
Taxation	(826)	(1,167)	(1,357)	(1,614)
Profit for the year	5,972	6,427	4,772	5,197
Other comprehensive income Exchange differences	16	132	(2)	-
Total comprehensive income for the year	5,988	6,559	4,770	5,197

Hili Properties p.l.c. Key Financial Ratios	FY2022 Actual	FY2023 Actual	FY2024 Actual	FY2025 Forecast
EBITDA margin (%) (EBITDA / revenue)	68.97	77.32	83.04	79.72
Operating profit margin (%) (Operating profit / revenue)	68.57	76.93	82.61	79.28
Net profit margin (%) (Profit after tax / revenue)	48.76	40.97	30.13	33.38
Return on equity (%) (Profit after tax / average equity)	4.78	5.10	3.86	4.23
Return on assets (%) (Profit after tax / average assets)	2.33	2.51	1.88	2.17
Return on invested capital (%) (Operating profit / average equity and net debt)	3.64	5.18	5.73	6.13
Interest cover (times) (EBITDA / net finance costs)	1.82	1.75	2.01	1.96

INCOME STATEMENT

In FY2024, revenue rose marginally to €15.84 million. Romania remained the Group's primary revenue generator, delivering €8.37 million, or 51.80% of total revenue. Latvia followed with €4.38 million, equivalent to 27.08% of the Group's income, while Lithuania contributed €1.74 million (10.77%). Income from properties located in Malta amounted to €1.56 million, accounting for 9.67% of total revenue, while Estonia contributed €0.11 million (0.68%). In February 2024, the Group concluded the sale of a retail complex located in Dzelzavas Street, Riga, Latvia for a total consideration of €7 million.

Net operating expenses fell sharply to €2.69 million, aided by one-time fit out contributions made by new tenants at the MIRO building in Romania which decreased operating costs. As a result, EBITDA increased by 8.43% to €13.15 million, while the relative margin expanded to 83.04%.

Depreciation charges were largely unchanged year-on-year at €0.07 million. Consequently, operating profit rose to €13.08 million, translating into a return on invested capital of 5.73%.

Net investment losses amounted to €0.42 million, reflecting adverse movements in the fair value of investment properties and properties held for sale. Net finance costs eased to €6.54 million, lifting interest cover further to 2.01 times.

Profit before tax declined by 19.29% to €6.13 million, driven solely by the reversal of investment income into a loss. Taxation charges increased to €1.36 million, leading to a net profit of €4.77 million, representing a net margin of 30.13%. From a return perspective, the return on equity decreased to

3.86% while the return on assets retracted to 1.88%. Total comprehensive income stood at €4.77 million, with negligible exchange differences reported.

For FY2025, the Group is forecasting a contraction in revenue to €15.57 million, reflecting planned property sales in Latvia, where revenue is expected to drop by nearly 18% to €3.59 million, representing 22.44% of total Group income. This reduction in income from the Latvian market is projected to be largely offset by growth in other markets. Romania will further consolidate its position as the Group's main revenue contributor, with forecast income of €8.76 million, equivalent to 54.81% of total revenue. Lithuania is expected to generate €1.78 million (11.13%), while revenue from Malta and Estonia is projected at €1.74 million (10.91%) and €0.11 million (0.70%) respectively.

Operating costs are expected to rise to €3.16 million, when compared to FY2024, considering the onetime effect from other operating income from MIRO fit-outs. As a result, EBITDA is projected to ease to €12.41 million, representing a year-on-year decline of 5.63%, with the relative margin trending lower to 79.72%.

Depreciation charges are forecast to reach €0.07 million. Operating profit is expected to total €12.34 million, reflecting a slight reduction of 5.66%, and translating into a return on invested capital of 6.13%.

Net investment income is forecast at €0.79 million while net finance costs are projected to drop by 3.34% to €6.32 million. Based on the projected EBITDA of €12.41 million, the interest cover is expected to remain relatively stable at 1.96 times.

Profit before tax is forecast at €6.81 million, representing an increase of 11.13% over the prior year. After accounting for a projected tax charge of €1.61 million, profit for the year is expected to rise to €5.20 million. The resulting net margin would improve to 33.38%, while the return on equity and the return on assets are forecast to rise to 4.23% and 2.17% respectively.

Hili Properties p.l.c. Statement of Cash Flows
for the financial year ending 31 December	2022	2023 2024		2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000
Net cash from operating activities	8,443	3,261	4,737	4,083
Net cash from / (used in) investing activities	(27,003)	(1,777)	(2,848)	26,862
Net cash used in financing activities	(7,666)	(6,201)	(32)	(30,528)
Net movement in cash and cash equivalents	(26,226)	(4,717) 1,857		417
Cash and cash equivalents at beginning of year	37,193	10,983	6,398	2,655
Foreign exchange on cash and cash equivalents	16	132 (2)		-
Cash and cash equivalents included in assets	-	-	(5,598)	(207)
classified as held for sale
Cash and cash equivalents at end of year	10,983	6,398	2,655	2,865
Capital expenditure	27,064	1,088	1,651	(19,533)
Free cash flow	(18,621)	2,173	3,086	23,616

STATEMENT OF CASH FLOWS

In FY2024, net cash from operating activities increased to €4.74 million amid lower negative movements in working capital and interest payments. Similarly, net cash used in investing activities trended higher to €2.85 million, reflecting increased capital expenditure which amounted to €1.65 million and other adverse movements. Nonetheless, free cash flow still improved year-on-year to €3.09 million compared to €2.17 million in FY2023.

Financing cash flows were broadly neutral, with a small net outflow of €0.03 million. Bank borrowings contributed €4.30 million in inflows, though these were fully offset by dividend payments of €4.33 million.

Overall, the Group recorded a positive net movement in cash and cash equivalents of €1.86 million. However, €5.60 million in cash was related to assets classified as held for sale, thus resulting in a closing cash balance of €2.66 million.

For FY2025, the Group is projecting net cash from operating activities of €4.08 million, including a minor negative movement in working capital of €0.30 million, as well as tax and interest payments of €1.54 million and €6.07 million respectively.

A substantial reversal in investment activity is being forecasted, with net cash expected to shift to an inflow of €26.86 million. This swing is attributable to the projected proceeds of €19.53 million from the sale of investment properties, along with €7.07 million in inflows from short-term deposits and €0.26 million in interest income. Accordingly, free cash flow is forecast to improve materially to €23.62

million, representing the net cash inflows from operating activities (€4.08 million) and the proceeds from the sale of investment property (€19.53 million).

Conversely, the Group is projecting a significant net outflow of €30.53 million related to financing activities, reflecting €37 million in bonds repayment and a marked reduction in bank borrowings, partly offset by a €20 million inflow from related parties.

In aggregate, the Group is anticipating a net positive movement in cash and cash equivalents of €0.42 million. After accounting for the reclassification of €0.21 million in cash related to assets classified as held for sale, year-end cash and cash equivalents are projected at €2.87 million, representing a modest improvement over FY2024.

The Group's ability to attract and retain strong tenants and generate consistent cash flows provides a solid foundation for continued stability in the years ahead. In FY2025, the Group is prioritising a rebalancing of its gearing position by fulfilling its bond obligations and strategically disposing of older assets should the right opportunity arise, to enhance and optimise the overall portfolio. With ongoing operational strength and targeted investments, the Group remains well-equipped to meet its longterm commitments while preserving liquidity and maximising shareholder value.

Hili Properties p.l.c.
Statement of Financial Position
as at 31 December	2022 Actual	2023 Actual	2024 Actual	2025 Forecast
	€'000	€'000	€'000	€'000

ASSETS Non-current assets
Intangible assets	16	16	16	16
Property, plant and equipment	109	121	13	11
Right-of-use asset	275	333	200	218
Investment property	232,298	228,816	194,206	196,042
Property held for sale	3,700	3,700	-	-
Trade and other receivables	2,585	2,879	724	424
Derivative financial instruments	863	335	70	-
Tax assets	564	490	329	296
Deposit on acquisition of investments	-	-	-	-
Restricted cash	1,972	1,217	1,251	1,317
	242,382	237,907	196,809	198,324
Current assets
Property and other assets held for sale	-	7,000	45,475	20,139
Trade and other receivables	2,814	4,194	5,234	3,308
Tax assets	190	81	141	23
Term deposits	-	-	2,629	1,250
Cash and cash equivalents	10,983	6,398	2,655	2,865
	13,987	17,673	56,134	27,585
Total assets	256,369	255,580	252,943	225,909
EQUITY
Capital and reserves
Share capital	80,179	80,179	80,179	80,179
Share premium	6,973	6,973	6,973	6,973
Reserves	152	237	295	187
Retained earnings	28,935	30,206	32,733	37,987
Non-controlling interest	8,691	9,550	-	-
	124,930	127,145	120,180	125,326
LIABILITIES
Non-current liabilities
Bank borrowings	66,848	70,999	58,580	57,727
Debt securities	36,786	36,863	-	-
Lease liability	245	296	165	226
Other financial liabilities	-	-	-	20,007
Trade and other payables	2,227	1,524	1,108	1,050
Tax liabilities	5,659	6,013	6,147	6,082
	111,765	115,695	66,000	85,092
Current liabilities
Bank borrowings	14,834	7,916	11,741	3,681
Debt securities	-	-	36,940	-
Lease liability	36	44	18	-
Tax liabilities	625	546	628	1,047
Trade and other payables Liabilities associated with assets held for sale	4,179 -	4,234 -	3,564 13,872	2,472 8,291
	19,674	12,740	66,763	15,491
Total liabilities	131,439	128,435	132,763	100,583
Total equity and liabilities	256,369	255,580	252,943	225,909

Total debt	118,749	116,118	107,444	61,634
Net debt	105,794	108,503	100,909	56,202
Invested capital (total equity plus net debt)	230,724	235,648	221,089	181,528

STATEMENT OF FINANCIAL POSITION

Total assets contracted marginally in FY2024 to €252.94 million. The principal movement related to the reclassification of a number of investment properties as held for sale, reflecting the Group's ongoing efforts at optimising its asset base.

Despite the increase in retained earnings, total equity dropped by almost €7 million to €120.18 million amid the derecognition of non-controlling interest following the acquisition of the remaining 25% shareholding in the company that owns the MIRO building in Romania.

Total liabilities increased by €4.33 million to €132.76 million as the €8.59 million decrease in bank borrowings to €70.32 million was offset by the recognition of €13.87 million in liabilities pertaining to assets held for sale. Total debt fell to €107.44 million, while net debt stood at €100.91 million. The net debt-to-EBITDA multiple was further improved to 7.67 times. Likewise, the net debt-to-equity ratio, the net gearing ratio, and the debt-to-assets ratio strengthened to 0.84 times, 45.64%, and 0.42 times respectively. On the other hand, the current ratio deteriorated to 0.84 times while the leverage ratio trended marginally higher to 2.10 times.

Total assets are forecast to decline significantly in FY2025 to €225.91 million, representing a year-onyear contraction of €27.03 million or 10.69%. This is primarily attributed to the forecasted sale of property and other assets classified as held for sale, which are expected to decline by €25.34 million to €20.14 million. Meanwhile, investment property is expected to increase marginally to €196.04 million. Current and non-current trade and other receivables are projected to fall by €2.23 million to €3.73 million, while cash and term deposits are expected to drop by €1.17 million to €4.12 million.

Total equity is forecast to increase to €125.33 million, supported by additional retained earnings to €37.99 million. Total liabilities are expected to fall substantially to €100.58 million, as the Group undertakes a deleveraging exercise. Bank borrowings are projected to fall by €8.91 million to €61.41 million, while debt securities are expected to be fully redeemed, primarily through a €20 million inflow from related parties.

Total debt is forecast to fall sharply to €61.63 million, while net debt is expected to decline to €56.20 million. This deleveraging is expected to lead to a marked improvement in all debt metrics, with the net debt-to-EBITDA multiple falling to 4.53 times, the net debt-to-equity retracting to 0.45 times, and the net gearing declining to 30.96%. Similarly, the debt-to-assets ratio and the leverage ratio are forecast to drop to 0.27 times and 1.80 times respectively.

11. VARIANCE ANALYSIS – HILI PROPERTIES P.L.C.

The following is an analysis of the major variances between the forecast financial information for the year ended 31 December 2024, as included in the Analysis dated 3 June 2024, and the audited annual financial statements for the same period, published on 28 April 2025.

Hili Properties p.l.c. Income Statement
for the financial year ending 31 December	2024	2024
	Actual	Forecast
	€'000	€'000

Revenue	15,837	15,722
Net operating expenses	(2,686)	(3,787)
EBITDA	13,151	11,935
Depreciation	(68)	(52)
Operating profit	13,083	11,883
Net investment income / (loss)	(419)	368
Net finance costs	(6,535)	(6,766)
Profit before tax	6,129	5,485
Taxation	(1,357)	(2,216)
Profit for the year	4,772	3,269

Other comprehensive income
Exchange differences	(2)	-
Total comprehensive income for the year	4,770	3,269

INCOME STATEMENT

The financial results delivered by Hili Properties in FY2024 exceeded expectations. Revenue for FY2024 amounted to €15.84 million, marginally exceeding the forecast of €15.72 million by €0.12 million. However, despite this slight outperformance in income, net operating expenses were significantly lower than forecast, amounting to €2.69 million compared to the projected figure of €3.79 million. This €1.10 million positive variance was primarily attributable to the one-time income received from new tenants at the MIRO building, contributing to the outperformance in EBITDA which totalled €13.15 million compared to the forecast of €11.94 million.

After deducting depreciation of €0.07 million – marginally higher than the forecasted €0.05 million – operating profit stood at €13.08 million, which was €1.20 million, or 10.10%, above the forecast of €11.88 million.

In FY2024, the Issuer registered a net investment loss of €0.42 million compared to the forecasted income of €0.37 million. This €0.79 million adverse variance was due to higher impairment charges. On the other hand, net finance costs of €6.54 million came in lower than the forecast €6.77 million, resulting in a savings of €0.23 million.

As a result of the above variances, profit before tax reached €6.13 million, exceeding the forecast of €5.49 million by €0.64 million or 11.74%. Taxation charges were lower than projected at €1.36 million compared to the expectation of €2.22 million, reflecting the delayed disposal of investment property held for sale. This resulted in a further positive variance of €0.86 million.

Overall, profit for the year amounted to €4.77 million, which was €1.50 million higher than the target of €3.27 million. After accounting for a marginal negative exchange difference, total comprehensive income for the year stood at €4.77 million compared to the forecast of €3.27 million.

Hili Properties p.l.c.
Statement of Cash Flows
for the financial year ending 31 December	2024	2024
	Actual	Forecast
	€'000	€'000

Net cash from operating activities	4,737	2,154
Net cash used in investing activities	(2,848)	(2,907)
Net cash used in financing activities	(32)	(4,301)
Net movement in cash and cash equivalents	1,857	(5,054)
Cash and cash equivalents at beginning of year	6,398	6,398
Foreign exchange	(2)	-
Cash and cash equivalents included in assets classified as held for sale	(5,598)	-
Cash and cash equivalents at end of year	2,655	1,344

Capital expenditure	1,651	(7,479)
Free cash flow	(4,499)	4,572

STATEMENT OF CASH FLOWS

Net cash from operating activities totalled €4.74 million in FY2024, exceeding the forecasted figure of €2.15 million by €2.58 million. The outperformance was primarily driven by lower tax and interest payments, partially offset by adverse movements in working capital.

Net cash used in investing activities amounted to €2.85 million, broadly in line with the forecasted figure of €2.91 million. Within this category, actual capital expenditure stood at €1.65 million compared to the forecast inflow of €7.48 million from the disposal of assets. However, this negative variance of €9.13 million was offset by lower amount of cash transferred into short-term deposits, which amounted to €2.63 million versus €11.82 million expected. Accordingly, free cash flow was negative at €4.50 million.

Net cash used in financing activities was negligible at €0.03 million compared to a forecast outflow of €4.30 million. The principal variance stemmed from higher-than-expected inflows from bank borrowings, which amounted to €4.30 million compared to the anticipated amount of €0.24 million.

The net movement in cash and cash equivalents for the year was positive at €1.86 million, compared to the anticipated negative movement of €5.05 million, resulting in a favourable variance of €6.91 million. Overall, Hili Properties closed the 2024 financial year with a cash position of €2.66 million, compared to the forecast of €1.34 million, after accounting for the impact of foreign exchange and the classification of €5.60 million in cash and cash equivalents appertaining to assets held for sale.

STATEMENT OF FINANCIAL POSITION

Total assets as at 31 December 2024 amounted to €252.94 million, exceeding the forecasted figure of €243.23 million by €9.72 million. This positive variance was largely driven by a higher-than-expected balance in investment property, which stood at €194.21 million compared to a forecast of €160.67 million, resulting in a positive variance of €33.54 million. Partially offsetting this, property and other assets held for sale, as well as other current and non-current assets, were lower than estimated by an aggregate of €25.29 million.

Total equity stood at €120.18 million at year-end, outperforming the forecast of €116.11 million by €4.07 million. This was mainly due to stronger retained earnings, which reached €32.73 million compared to the expected figure of €28.72 million, driven by the superior profitability registered during the year. Conversely, share capital and share premium were broadly in line with forecast at €87.45 million.

Total liabilities amounted to €132.76 million which was €5.65 million higher than the projected figure of €127.12 million. The most notable variance related to liabilities associated with assets held for sale, which amounted to €13.87 million and were not anticipated in the forecast. On the other hand, bank borrowings of €70.32 million were lower than forecast by €8.75 million.

Total debt stood at €107.44 million, below the forecasted figure of €116.19 million by €8.75 million. Moreover, the stronger-than-expected closing cash position contributed to a lower net debt figure of €104.79 million, representing a favourable variance of €10.06 million compared to the projected net debt of €114.85 million. This contributed to a lower invested capital position as at year-end, amounting to €224.97 million, despite the relative higher equity base of the Group.

Hili Properties p.l.c.
Statement of Financial Position
as at 31 December	2024	2024
	Actual	Forecast
	€'000	€'000
ASSETS
Non-current assets
Intangible assets	16	16
Property, plant and equipment	13	58
Right-of-use asset	200	-
Investment property	194,206	160,669
Other non-current assets	2,374	4,892
	196,809	165,635
Current assets
Property and other assets held for sale	45,475	62,649
Cash and cash equivalents	2,655	1,344
Other current assets	8,004	13,597
	56,134	77,590

Total assets	252,943	243,225

EQUITY
Capital and reserves
Share capital	80,179	80,179
Share premium and reserves	7,268	7,213
Retained earnings Total equity	32,733 120,180	28,716 116,108

LIABILITIES
Non-current liabilities
Bank borrowings	58,580	50,920
Lease liability	165	160
Trade and other payables	1,108	1,700
Tax liabilities	6,147	5,052
	66,000	57,832
Current liabilities
Bank borrowings	11,741	28,155
Debt securities	36,940	36,939
Lease liability	18	18
Other current liabilities	4,192	4,173
Liabilities associated with assets held for sale	13,872	-
	66,763	69,285
Total liabilities	132,763	127,117
Total equity and liabilities	252,943	243,225

Total debt	107,444	116,192
Net debt	104,789	114,848
Invested capital (total equity plus net debt)	224,969	230,956

PART 3 – COMPARATIVE ANALYSIS

The table below provides a comparison between the Group and its bonds with other debt issuers and their respective debt securities listed on the Regulated Main Market (Official List) of the Malta Stock Exchange. Although there are significant variances between the activities of the Group and those of other debt issuers (including different industries, principal markets, competition, capital requirements etc.), and material differences between the risks associated with the Group's business/es and those of other debt issuers, the comparative analysis illustrated in the table below serves as an indication of the relative financial strength and creditworthiness of the Group.

Comparative Analysis*	Amount Issued	Yield-to Maturity / Worst	Interest Cover	Net Debt-to EBITDA	Net Gearing	Debt-to Assets
	(€'000)	(%)	(times)	(times)	(%)	(times)
4.50% Hili Properties p.l.c. Unsecured & Guaranteed 2025	37,000	12.64	2.01	7.67	45.64	0.42
4.35% Hudson Malta p.l.c. Unsecured & Guaranteed 2026	12,000	4.32	4.93	4.63	73.87	0.55
4.25% CPHCL Finance p.l.c. Unsecured & Guaranteed 2026	40,000	5.44	1.35	11.96	43.62	0.40
4.00% International Hotel Investments p.l.c. Secured 2026	55,000	3.99	1.46	11.17	43.36	0.40
5.00% Dizz Finance p.l.c. Unsecured & Guaranteed 2026	8,000	6.57	1.96	9.84	84.18	0.55
3.75% Premier Capital p.l.c. Unsecured 2026	65,000	3.88	12.23	2.16	69.41	0.59
4.00% International Hotel Investments p.l.c. Unsecured 2026	60,000	4.95	1.46	11.17	43.36	0.40
3.25% AX Group p.l.c. Unsecured 2026	15,000	4.43	3.09	7.54	42.13	0.37
4.00% Hili Finance Company p.l.c. Unsecured & Guaranteed 2027	50,000	5.20	4.88	4.34	67.75	0.57
4.35% SD Finance p.l.c. Unsecured & Guaranteed 2027	65,000	4.35	5.86	2.93	30.32	0.34
4.00% Eden Finance p.l.c. Unsecured & Guaranteed 2027	40,000	4.02	4.55	6.93	28.64	0.26
5.25% Mediterranean Investments Holding p.l.c. Unsecured & Guaranteed 2027	30,000	5.24	5.81	2.45	20.10	0.19
4.00% Stivala Group Finance p.l.c. Secured & Guaranteed 2027	45,000	4.01	4.46	5.18	21.99	0.20
4.75% Best Deal Properties Holding p.l.c. Secured & Guaranteed 2025-2027	14,438	4.74	110.36	8.31	74.19	0.73
4.75% Gap Group p.l.c. Secured & Guaranteed 2025-2027	23,000	4.74	n/a	1.04	26.65	0.33
3.85% Hili Finance Company p.l.c. Unsecured & Guaranteed 2028	40,000	4.19	4.88	4.34	67.75	0.57
5.85% Mediterranean Investments Holding p.l.c. Unsecured & Guaranteed 2028	20,000	5.14	5.81	2.45	20.10	0.19
5.75% PLAN Group p.l.c. Secured & Guaranteed 2028	12,000	5.10	2.48	14.28	51.39	0.46
5.75% Best Deal Properties Holding p.l.c. Secured & Guaranteed 2027-2029	15,000	5.16	110.36	8.31	74.19	0.73
5.00% Hili Finance Company p.l.c. Unsecured & Guaranteed 2029	80,000	5.00	4.88	4.34	67.75	0.57
3.65% Stivala Group Finance p.l.c. Secured & Guaranteed 2029	15,000	4.18	4.46	5.18	21.99	0.20
3.80% Hili Finance Company p.l.c. Unsecured & Guaranteed 2029	80,000	4.59	4.88	4.34	67.75	0.57
3.75% AX Group p.l.c. Unsecured 2029	10,000	3.75	3.09	7.54	42.13	0.37
6.25% GPH Malta Finance p.l.c. Unsecured & Guaranteed 2030	18,144	5.51	1.81	6.89	96.76	0.83
3.65% International Hotel Investments p.l.c. Unsecured 2031	80,000	5.09	1.46	11.17	43.36	0.40
3.50% AX Real Estate p.l.c. Unsecured 2032	40,000	4.47	2.87	8.01	51.84	0.47
5.35% Best Deal Properties Holding p.l.c. Unsecured 2032	7,000	5.00	110.36	8.31	74.19	0.73
5.80% GPH Malta Finance plc Unsecured & Guaranteed 2032	15,000	5.39	1.81	6.89	96.76	0.83
5.00% Mariner Finance p.l.c. Unsecured 2032	36,930	4.67	4.00	5.48	45.91	0.45
5.85% AX Group p.l.c. Unsecured 2033	40,000	5.10	3.09	7.54	42.13	0.37
6.00% International Hotel Investments p.l.c. Unsecured 2033	60,000	5.32	1.46	11.17	43.36	0.40
4.50% The Ona p.l.c. Secured & Guaranteed 2028-2034	16,000	4.50	2.35	12.72	77.11	0.69
5.35% Hal Mann Vella Group p.l.c. Secured 2031-2034	23,000	5.14	2.69	7.13	47.59	0.42
5.30% International Hotel Investments p.l.c. Unsecured 2035	35,000	5.13	1.46	11.17	43.36	0.40
5.50% Juel Group p.l.c. Secured & Guaranteed 2035	32,000	5.17	15.06	23.23	58.68	0.48
5.80% Agora Estates p.l.c. Secured 2036 S1 T1	12,000	5.34	0.99	21.21	35.45	0.33
5.50% Agora Estates p.l.c. Secured 2036 S1 T2	9,000	5.26	0.99	21.21	35.45	0.33

*As at 30 May 2025

Sources: Malta Stock Exchange, M.Z. Investment Services Limited, and most recent audited annual financial statements of respective Issuers and, or Guarantors.

The closing market price as at 30 May 2025 for the 4.50% Hili Properties p.l.c. unsecured and guaranteed bonds 2025 was 97.00%. The bond is due for redemption on 16 October 2025.

PART 4 – EXPLANATORY DEFINITIONS

Income Statement
Revenue	Total income generated from business activities.
EBITDA	Earnings before interest, tax, depreciation, and amortisation. It is a metric used for gauging operating performance excluding the impact of capital structure. EBITDA is usually interpreted as a loose proxy for operating cash flows.
Adjusted operating profit / (loss)	Profit (or loss) from core operations, excluding movements in the fair value of investment property, share of results of associates and joint ventures, net finance costs, and taxation.
Operating profit / (loss)	Profit (or loss) from operating activities, including movements in the fair value of investment property but excluding the share of results of associates and joint ventures, net finance costs, and taxation.
Share of results of associates and joint ventures	Share of profit (or loss) from entities in which the company does not have a majority shareholding.
Profit / (loss) after tax	Net profit (or loss) registered from all business activities.

Profitability Ratios
EBITDA margin	EBITDA as a percentage of revenue.
Operating profit margin	Operating profit (or loss) as a percentage of total revenue.
Net profit margin	Profit (or loss) after tax as a percentage of total revenue.
Return on equity	Measures the rate of return on net assets and is computed by dividing the net profit (or loss) for the year by average equity.
Return on assets	Measures the rate of return on assets and is computed by dividing the net profit (or loss) for the year by average assets.
Return on invested capital	Measures the rate of return from operations and is computed by dividing operating profit (or loss) for the year by the average amount of equity and net debt.

Statement of Cash Flows
Net cash from / (used in) operating activities	The amount of cash generated (or consumed) from the normal conduct of business.
Net cash from / (used in) investing activities	The amount of cash generated (or consumed) from activities related to the acquisition, disposal, and/or development of long-term assets and other investments.
Net cash from / (used in) financing activities	The amount of cash generated (or consumed) that have an impact on the capital structure, and thus result in changes to share capital and borrowings.
Free cash flow	Represents the amount of cash generated (or consumed) from operating activities after considering any amounts of capital expenditure.

Statement of Financial Position
Non-current assets	These represent long-term investments which full value will not be realised within the next twelve months. Such assets, which typically include property, plant, equipment, and investment property, are capitalised rather than expensed, meaning that the amortisation of the cost of the asset takes place over the number of years for which the asset will be in use. This is done instead of allocating the entire cost to the accounting year in which the asset was acquired.
Current assets	All assets which could be realisable within a twelve-month period from the date of the Statement of Financial Position. Such amounts may include development stock, accounts receivable, cash and bank balances.
Non-current liabilities	These represent long-term financial obligations which are not due within the next twelve months, and typically include long-term borrowings and debt securities.
Current liabilities	Liabilities which fall due within the next twelve months from the date of the Statement of Financial Position, and typically include accounts payable and short term debt.
Total equity	Represents the residual value of the business (assets minus liabilities) and typically includes the share capital, reserves, as well as retained earnings.

Financial Strength / Credit Ratios
Interest cover	Measures the extent of how many times a company can sustain its net finance costs from EBITDA.
Net debt-to-EBITDA	Measures how many years it will take a company to pay off its net interest-bearing liabilities (including lease liabilities) from EBITDA, assuming that net debt and EBITDA are held constant.
Net debt-to-equity	Shows the proportion of net debt (including lease liabilities) to the amount of equity.
Net gearing	Shows the proportion of equity and net debt used to finance a company's business and is calculated by dividing net debt by the level of invested capital.
Debt-to-assets	Shows the degree to which a company's assets are funded by debt and is calculated by dividing all interest-bearing liabilities (including lease liabilities) by total assets.
Leverage	Shows how many times a company is using its equity to finance its assets.
Current ratio	Measures the extent of how much a company can sustain its short-term liabilities from its short-term assets.

AI Terminal

Hili Properties Plc

2044_rns_2025-06-25_57bf15bd-9421-4ae8-bd5a-c375daadc5d6.pdf

COMPANY ANNOUNCEMENT

Financial Analysis Summary

Annual General Meeting

UNQUOTE

M.Z. Investment Services Limited

Financial Analysis Summary

M.Z. Investment Services Limited

PART 1 – INFORMATION ABOUT THE GROUP

1. ABOUT THE ISSUER

2. DIRECTORS OF THE ISSUER

3. DIRECTORS AND KEY ACTIVITIES OF THE GUARANTORS

4. ORGANISATIONAL STRUCTURE

5. REAL ESTATE PORTFOLIO

6. SECURITIES IN ISSUE

6.1 INFORMATION RELATING TO THE ISSUER'S SHARES

6.2 INFORMATION RELATING TO RELATED PARTIES' BONDS

7. ECONOMIC UPDATE

7.1 ROMANIA3

7.2 LATVIA4

7.3 LITHUANIA5

7.4 MALTA6

7.5 ESTONIA7

PART 2 – FINANCIAL REVIEW

8. FINANCIAL ANALYSIS – HILI ESTATES LIMITED

INCOME STATEMENT

STATEMENT OF CASH FLOWS

STATEMENT OF FINANCIAL POSITION

9. FINANCIAL ANALYSIS – HARBOUR (APM) INVESTMENTS LTD

INCOME STATEMENT

STATEMENT OF CASH FLOWS

STATEMENT OF FINANCIAL POSITION

10. FINANCIAL ANALYSIS – HILI PROPERTIES P.L.C.

INCOME STATEMENT

STATEMENT OF CASH FLOWS

STATEMENT OF FINANCIAL POSITION

11. VARIANCE ANALYSIS – HILI PROPERTIES P.L.C.

INCOME STATEMENT

STATEMENT OF CASH FLOWS

STATEMENT OF FINANCIAL POSITION

PART 3 – COMPARATIVE ANALYSIS

PART 4 – EXPLANATORY DEFINITIONS

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