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Appeninn Vagyonkezelő Holding
Interim / Quarterly Report • Sep 12, 2025
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Interim / Quarterly Report
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| Company name | Appeninn Asset Management Holding Plc. |
|---|---|
| Company address | 1022 Budapest, Bég street 3-5. |
| Sectoral classification | Asset management (real estate development) |
| Reporting accounting system | IFRS |
| Reporting period | First half of 2025 |
| Audit of data | Interim period data, unaudited |
| Reporting currency | EUR, unless otherwise indicated |
| Published at | 12 September 2025 |
| [email protected] | |
| Contact | Kira Hodován |
| [email protected] | |
| Phone | +36 1 346 8869 |
Appeninn Asset Management Holding Plc (1022 Budapest, Bég street 3-5., cg: 01-10-046538 - hereinafter referred to as Appeninn Plc. or the Company) as the issuer of the securities admitted to trading on the regulated market prepares and publishes its semi-annual report for the year 2025 in this document.
Table of Contents
| 1. | MANAGEMENT REPORT………………………………………………………………………………………………………………………………3 | ||
|---|---|---|---|
| 1.1 | HISTORY OF THE APPENINN GROUP………………………………………………………………………………………………………3 | ||
| 1.2 | APPENINN'S ISSUER RATING REPORT FOR THE PERIOD 2025………………………………………………………………….4 | ||
| 13. KEY ITEMS AND INDICATORS IN THE FIRST SIX MONTHS OF THE GROUP'S 2025 ACCOUNTS………………….6 | |||
| 2. INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR 2025………………………………………………………7 | |||
| 2.1. | ANALYSIS OF THE INTERIM CONSOLIDATED INCOME STATEMENT………………………………………………………12 | ||
| 2.2. | INTERIM CONSOLIDATED BALANCE SHEET……………………………………………………………………………….…………….14 | ||
| 2.3 INTERIM CONSOLIDATED CASH-FLOW……………………………………………………………………………………………………….16 | |||
| 3. | ANNEXES…16 | ||
| 3.1. | PROPORTION OF COMPANIES INCLUDED IN CONSOLIDATION AND CONTROLLED …………………………………………………………………………………………………………………………………………………………………16 |
SHAREHOLDINGS | |
| 3.2. | MAJOR EVENTS IN THE FIRST HALF OF 2025 AND THE PERIOD AFTER THE REPORTING DATE………………17 | ||
| 3.3. | SEPARATE INTERIM FINANCIAL STATEMENTS OF APPENINN PLC……………………………………………………………19 | ||
| 3.4. | GENERAL INFORMATION ON THE ISSUER………………………………………………………………………………………………23 | ||
| 3.5. | STATEMENT ON THE AUDIT OF THE FIGURES IN THE REPORT…………………………………………………………………24 | ||
| 3.6. | APPENINN GROUP DISCLAIMER………………………………………………………………………………………………………………24 |
1. MANAGEMENT REPORT
1.1 HISTORY OF APPENINN GROUP
Founded in 2009, Appeninn Plc is a leading player in the Hungarian real estate market and a real estate investment and asset management company listed in the Premium category on the Budapest Stock Exchange for more than 10 years since 2013.
Its main activities are: acquisition and sale of own property, property management, renting and operating of real estates.
In its strategy published in February 2022, the Company has set as its primary objectives the transformation into a Regulated Real Estate Investment Trust (REIT), the sale of tourism project companies, the acquisition of income-producing properties in SEE and CEE regions, increased ESG focus and increased cost efficiency in operations.
As part of the implementation of the strategy, tourism development projects were sold and the proceeds of the sale were used to acquire Hungarian and Polish subsidiaries (Dounby Sp. z o.o., Tidaholm Ltd., Kantrum Ltd.), which significantly increased the scope of its income generating properties and operating income, and significantly improved the Group's consolidated operating profitability.
The Group is continuously reviewing its portfolio and the income generating capacity of its properties, as a result of which the less profitable elements were marketed for sale since April 2024.
The Group fulfilled the legal requirements associated with the REIT structure at the end of 2023, and in 2024 it was registered as a Regulated Real Estate Investment Company by the Commercial Court. Appeninn Holding and its Hungarian subsidiaries are entitled to the rights, benefits and obligations provided for in the relevant legislation since 1 January 2024.
During the subsequent years after the publication of the strategy, Appeninn has transformed its operating model and organisation, simplified its corporate structure, significantly improved its cost efficiency, and substantially reduced its direct letting activities and its administrative and personnel costs.
The Group's ESG performance will be reported in the ESG reports accompanying its annual accounts from the end of 2023 and beyond.
The implementation of the strategy formulated in 2022 through a consistent and conservative financing structure has been positively assessed by Scope Ratings in terms of the Company's risk profile, which resulted in the upgrade of Appeninn Plc's issuer rating to "B+/stable" and its unsecured bond to "B+" on April 5, 2023, which was confirmed on April 5, 2024 and reconfirmed on April 2, 2025, and rated the Group's future prospects as stable, highlighting in its analysis the positive developments of the past years. Scope affirms B+/Stable issuer rating of Appeninn | Scope Ratings | European Rating Agency
1.2 APPENINN'S ISSUER RATING REPORT FOR THE PERIOD 2025
In the first half of 2025, the Company and its controlled subsidiaries (hereafter referred to as Appeninn Group or Group) retained a real estate portfolio focused on office and retail segments, that generated rental income of €10.797 million and gross margin of €7.170 million, and represented a gross margin ratio of 66.4%, increased from 62.2% last year.
While revenues and profitability from Hungarian operations remained stable, Polish real estate revenues have decreased. The lower rental income related to the leave of one significant tenant in Poland during March, 2025, which has been partly replaced by the end of the half year, while leases signed during the first half of the year and tenant developments being progress, occupancy should continue to increase in the coming months.
Profitability indicators
The group's EBITDA profitability -including and mostly driven by the impact of property revaluations- is significantly lower than last year at EUR 3.764 million compared to 7.511 million in the first half of 2024. This is not driven by the deterioration of operative performance, but is due to difference in the exchange rate between the value of the Hungarian real estate portfolio at the balance sheet date and the functional and presentation currency of the Hungarian subsidiaries (for details, see section 2.1, analysis of the interim Consolidated income statements for 2025).
The EBITDA calculated after excluding the impact of the revaluation of real estate in Hungary of EUR -2.942 million amounts to EUR 6.707 million, compared to EUR 6.821 million last year, which shows an increase in operating profitability from 57.73% to 62.12%, with a decrease in the absolute amount of adjusted EBITDA by EUR 114 thousand.
The positive exchange rate effect of the Polish real estate value of 865 thousand euros, due to same functional and presentation currency of the Polish entity, is recorded in other financial income, thus not affecting the amount of EBITDA, but only the profit after tax. The remaining amount of other financial income and expenses is the result of the revaluation related to changes of exchange rates of the loans and deposits.
The increase in the negative balance of interest income and expenses is the result of the interest cost of subsidised bank financing and the favourable, but declining, interest rates on deposits in forint and euro, which still result in significant cash holdings. Of the 1.361 million balance of interest income and expenses, 938 thousand euros related to financial cash flow in the first half of 2025, while the remaining 422 thousand euros was related to adjustmentsin accordance with IFRS standards and did not represent actual cash movement.
The net profit after tax for the half-year as of 30.06.2025 amounts to €3.419 million, which, after adjusting for the effects of property revaluations detailed above (+€2.942 million for the revaluation of Hungarian properties, -€0.865 million for the exchange rate impact of the unchanged value of Polish property), comes to €5.496 million compared to €6.342 million last year, adjusted for the same effects. The adjusted profit after tax is 13% lower than the previous year, representing a profitability of 51% on turnover and for the 6 months 4.42% on equity.
Property, cash and financing
The Group's investment properties held for investment by the Holding and REIT project companies increased in the first half of the year by EUR 988 thousand.
During 2025, the Company's cash and cash equivalents balance increased from EUR 47.005 million as of 31.12.2024 to EUR 52.264 million, which is predominantly available for investments free of bank restrictions.
The financing structure remained unchanged during the half-year, no new financing has been raised, the change in the values is only due to the HUF/EUR exchange rate variation and halfyearly principal repayment (EUR 1.375 million) in accordance with repayment schedules in the loan agreements. The company has met all its payment and other obligations under the loan agreements and fulfilled all covenants imposed by its financiers.
Current developments, vision and strategy
The company remains committed to the consistent implementation of its strategy and has successfully completed the reorganisation part of its objectives in recent years.
The Group is constantly and actively monitoring market opportunities in Hungary and CEE, within the limits allowed by the REIT structure and its financial ratios. The search and due diligence of suitable transaction targets and the relevant business negotiations are ongoing for several properties (portfolios), but given that the Company does not wish to make compromises less compatible with longer-term shareholder and debtholder interests in relation to the profitability and other aspects and rating criteria of its strategy, no precise timeframe can be given for the realisation of potential acquisition transactions. Investing the large amount of available free cash in real estate properties generating income at the expected level in line with the current strategy, with a conservative financing structure consistent with past practices, is expected to contribute to further increasing the overall profitability of the Group.
The monitoring of the Group's real estate portfolio is continuous, and we also examine the function, condition, profitability and optimal future use of individual properties beyond the scope of the properties earmarked for sale.
Negotiations regarding the properties to be sold have been significantly delayed due to the Hungarian real estate market environment and the current status and income-generating capacity of the properties concerned, but they have now reached an intensive stage and the completion of the transactions this year remains a key objective of the group.
In the future, the Company intends to focus its operational activities and strategy on continued compliance with the legal requirements for REITs, Scope Ratings' financial and other assessment criteria, transparent information to shareholders and potential investors, professional property management, high quality service to tenants and increased ESG focus.
Capital market perception
The share price has been significantly below the equity value per share (31.12.2024: HUF 666, 30.06.2025: HUF 700).
1.3. KEY ITEMS AND INDICATORS IN THE FIRST SIX MONTHS OF THE GROUP'S 2025 ACCOUNTS
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| Highlights - consolidated |
EUR | EUR |
| Consolidated income statement - from continuing operations |
||
| Income from the rental of real estate | 10 796 929 | 11 815 657 |
| Gross margin | 7 170 145 | 7 357 370 |
| EBITDA | 3 764 718 | 7 511 400 |
| Property revaluation adjusted EBITDA / 6 months | 6 706 963 | 6 821 347 |
| Balance of interest income and expenses -financially realised | 938 099 | 1 008 046 |
| Profit after tax / 6 months | 3 419 436 | 7 032 146 |
| Profit after tax - adjusted for the effect of revaluation of real estate / 6 months |
5 496 507 | 6 342 093 |
| Gross margin ratio | 66,41% | 62,27% |
| Adjusted EBITDA as a percentage of revenue | 62,12% | 57,73% |
| Adjusted profit after tax / Revenue | 50,91% | 53,67% |
| 6 months adjusted profit after tax / Equity attributable to equity holders of the company |
4,42% | 5,35% |
| 30.06.2025 | 31.12.2024 | |
|---|---|---|
| Highlights - consolidated |
EUR | EUR |
| Assets, liabilities and equity: | ||
| Investment properties | 168 910 000 | 167 922 000 |
| Assets held for sale | 10 370 000 | 10 370 000 |
| Cash and cash equivalents | 52 234 416 | 47 004 605 |
| Bank loans and bond debt | 104 376 305 | 103 101 464 |
| Total assets/investments: | 239 306 627 | 231 682 818 |
| Bank loans / Real estate portfolio value (LTV) | 58% | 58% |
| Property portfolio value / Balance sheet total | 75% | 77% |
| Equity per shareholder of the Company | 124 403 806 | 118 549 296 |
| Equity value per share (EUR) | 2,6262 | 2,5026 |
| Equity value per share (HUF) | 1 077 | 1 026 |
2. INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR 2025
The consolidated report of Appeninn Plc for the first half of 2025 (the "Report") includes the consolidated management report for the first six months of 2025, the interim consolidated balance sheet and income statement for the period in accordance with International Financial Reporting Standards (IFRS) and the notes thereto. The accounting policies applied in the Report are consistent with those applied in the comparative period. The use of the mandatory standard did not have a material impact on the interim consolidated financial statements of the Appeninn Group.
The reporting currency of the Report is EUR.
These interim consolidated financial statements have not been audited by an independent auditor. The interim consolidated financial statements have been approved by the Board of Directors of the Company. The interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, standards published and incorporated by regulation in the Official Journal of the European Union (EU) and the requirements of IAS 34 Interim Financial Reporting. IFRS are standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC).
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| Income statement | EUR | EUR |
| Income from the rental of immovable property | 10 796 929 | 11 815 657 |
| Direct costs of letting immovable property | (3 626 784) | (4 458 287) |
| Gross margin | 7 170 145 | 7 357 370 |
| Administrative costs | (474 692) | (434 457) |
| Personnel costs | (144 352) | (163 927) |
| Other income/(expenses) | 155 862 | 62 361 |
| Gain/loss on disposal of subsidiaries, investments | - | - |
| Gains on sale of investment property | - | - |
| Result of revaluation of investment properties | (2 942 245) | 690 053 |
| Gross operating result (EBITDA)** | 3 764 718 | 7 511 400 |
| Depreciation and amortisation | (2 786) | (3 010) |
| Other (expense)/income from financial operations | 1 149 356 | 345 021 |
| Balance of interest receivable and (payable) | (1 360 576) | (1 004 058) |
| Leasing interest | - | (3 988) |
| Profit before tax | 3 550 712 | 6 845 365 |
| Income taxes | (131 276) | 186 781 |
| Total profit after tax | 3 419 436 | 7 032 146 |
| Other comprehensive income | ||
| Exchange differences on translation of operations | 2 435 074 | (2 321 945) |
| Other comprehensive income for the year, net of tax | 2 435 074 | (2 321 945) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 5 854 510 | 4 710 201 |
| Profit from continuing operations | ||
| Attributable to non-controlling interests | - | - |
| Attributable to equity holders of the Company | 3 419 436 | 7 032 146 |
| From other comprehensive income: | ||
| Attributable to non-controlling interests | - | - |
| Attributable to equity holders of the Company | 2 435 074 | (2 321 945) |
| Of total comprehensive income: | ||
| Attributable to non-controlling interests | - | - |
| Attributable to equity holders of the Company | 5 854 510 | 4 710 201 |
| Basic total comprehensive income per share in EUR cents | 7.22 | 14.85 |
| Diluted total comprehensive income per share in EUR cents | 7.22 | 14.85 |
| Balance sheet | 30.06.2025 | 31.12.2024 |
|---|---|---|
| Assets | EUR | EUR |
| Investment property | 168 910 000 | 167 922 000 |
| Tangible fixed assets | 21 376 | 24 556 |
| Deferred tax assets | 0 | 0 |
| Participation in associated company | 7 780 | 7 979 |
| Receivables due after one year | 2 815 741 | 1 838 384 |
| Total long term assets | 171 754 897 | 169 792 919 |
| Trade receivables | 1 711 759 | 2 218 174 |
| Other current receivables | 906 097 | 1 014 639 |
| Short-term loans | 0 | 9 |
| Prepayments | 2 306 970 | 1 274 215 |
| Income tax receivable | 19 775 | 8 257 |
| Assets held for sale | 10 370 000 | 10 370 000 |
| Cash and cash equivalents | 52 234 416 | 47 004 605 |
| Total current assets | 67 551 730 | 61 889 899 |
| Total assets | 239 306 627 | 231 682 818 |
| Balance sheet | 30.06.2025 | 31.12.2024 |
|---|---|---|
| Equity and liabilities | EUR | EUR |
| Subscribed capital | 15 217 006 | 15 217 006 |
| Repurchased own shares | -1 171 | -1 171 |
| Reserves | 25 645 230 | 25 645 230 |
| Translation reserve | -18 184 405 | -20 619 479 |
| Retained earnings | 101 727 146 | 98 307 710 |
| Equity attributable to equity holders of the Company | 124 403 806 | 118 549 296 |
| Non-controlling interests | 0 | 0 |
| Total equity and reserves | 124 403 806 | 118 549 296 |
| Long-term bank loans and leasing liabilities | 49 763 310 | 50 966 239 |
| Bond debt | 51 243 196 | 49 048 518 |
| Deposits paid by tenants | 3 205 392 | 1 855 736 |
| Accruals | 2 891 526 | 2 864 388 |
| Total long-term liabilities | 107 103 424 | 104 734 881 |
| Short-term bank loans and leasing liabilities | 3 369 799 | 3 086 707 |
| Other current liabilities | 1 160 415 | 1 906 079 |
| Short-term related liabilities | - | - |
| Liabilities to suppliers | 710 218 | 823 607 |
| Taxes and duties payable | 275 455 | 302 347 |
| Income tax liabilities | - | 178 180 |
| Liabilities directly linked to sales | - | - |
| Accruals and provisions | 2 283 510 | 2 101 721 |
| Total current liabilities | 7 799 397 | 8 398 641 |
| Total liabilities | 114 902 821 | 113 133 522 |
| Total equity and liabilities | 239 306 627 | 231 682 818 |
| 30.06.2025 | 31.12.2024 | |
|---|---|---|
| Cash flow | EUR | EUR |
| Profit before tax | 3 550 712 | 6 845 365 |
| Revaluation of investment property | (988 000) | (690 053) |
| Investment expenditure on real estate | - | - |
| Result on sale of real estate | - | - |
| Depreciation | 2 786 | 3 010 |
| Negative goodwill | - | - |
| Gain/(loss) on disposal of subsidiaries | - | - |
| Interest income | (870 693) | (542 719) |
| Interest expenses | 1 808 793 | 1 550 765 |
| Change in receivables and other current assets | (373 719) | 326 046 |
| Change in accrued income and prepaid expenses | (1 032 755) | 43 703 |
| Change in inventories | - | - |
| Change in liabilities and accruals | 2 252 253 | 1 941 594 |
| Change in tenants' deposits | 1 349 656 | 137 510 |
| Income tax paid | (320 974) | 46 482 |
| Net cash flow from operating activities | 5 378 058 | 9 661 703 |
| Settlement of guarantee obligation for sale of participation | - | - |
| Capital expenditure on real estate | (269 713) | (1 544 428) |
| Acquisition of shareholding | - | - |
| Acquisitions of tangible fixed assets | - | (1 335) |
| Change in loans granted, loans granted | - | - |
| Interest receivable | 870 693 | 542 719 |
| Proceeds from sale of shares | - | - |
| Acquisition of investment property | (0) | - |
| Proceeds from sale of real estate | - | - |
| Net cash flow from investing activities | 600 980 | (1 003 044) |
| Increase in loans, leasing, borrowings | 0 | 6 036 331 |
| Loan repayments | (1 375 509) | (621 544) |
| Interest charges | (1 808 793) | (1 550 765) |
| Net cash flow from financing activities | (3 184 302) | 3 864 022 |
| Effect of exchange rate changes | 2 435 074 | (2 321 945) |
| Change in cash and cash equivalents | 5 229 811 | 10 200 736 |
| Changes in equity (in EUR) | Share capital | Reserves | Treasury | Translation | Retained | Attributable to | Non | Total equity |
|---|---|---|---|---|---|---|---|---|
| shares | reserve | earnings | owners of the parent company |
controlling interests |
||||
| On 1 January 2024 | 15 217 006 | 25 645 230 | (1 171) | (12 529 413) | 82 729 235 | 111 060 887 | - | 111 060 887 |
| Total comprehensive income | ||||||||
| Total comprehensive income | - | - | - | (2 321 945) | 7 032 146 | 4 710 201 | - | 4 710 201 |
| Transactions with owners | - | - | - | - | - | - | - | - |
| Sale of a subsidiary | ||||||||
| Transaction with non-controlling interest | - | |||||||
| 30 June 2024 | 15 217 006 | 25 645 230 | (1 171) | (14 851 358) | 89 761 381 | 115 771 088 | - | 115 771 088 |
| Total comprehensive income | ||||||||
| Total comprehensive income | - | - | - | (5 768 121) |
8 546 329 |
2 778 208 |
- | 2 778 208 |
| Transactions with owners | - | - | - | - | - | - | - | - |
| Sale of a subsidiary | - | - | - | - | ||||
| Transaction with non-controlling interest | - | - | - | |||||
| Balance at 31 December 2024 |
15 217 006 | 25 645 230 | (1 171) | (20 619 479) |
98 307 710 |
118 549 296 |
- | 118 549 296 |
| On 1 January 2025 | 15 217 006 | 25 645 230 | (1 171) | (20 619 479) |
98 307 710 |
118 549 296 |
- | 118 549 296 |
| Total comprehensive income | ||||||||
| Total comprehensive income | - | - | - | 2 435 074 |
3 419 436 |
5 854 510 |
- | 5 854 510 |
| Transactions with owners | - | - | - | - | - | - | - | - |
| Sale of a subsidiary | - | - | - | - | ||||
| Transaction with non-controlling interest | - | - | - | - | ||||
| 30 June 2025 | 15 217 006 | 25 645 230 | (1 171) | (18 184 405) |
101 727 146 |
124 403 806 |
- | 124 403 806 |
2.1. ANALYSIS OF THE INTERIM CONSOLIDATED INCOME STATEMENT
Real estate rental and operating result
Rental income for the first six months of 2025 amounted to €10,797 million, €1.019 million lower than the amount for the first half of 2024. With revenues down by almost 9%, the level of costs directly related to rental activity decreased by 19%, resulting in an overall direct contribution 3% lower than in the same period last year, amounting to €7,170 thousand, with its ratio to revenues increasing from 62% to 66%.
The decrease in rental income is due to the leave of a major tenant (7,132 sqm) of the Polish Wisniowy Business Park during March 2025, as a consequence the occupancy rate of the Warsaw property decreased from 80% at the end of March to 61% at the end of December last year, which was gradually recovered to 66% by the end of the half-year. The decline of more than 20% in Polish rental income (€3.453 million) is also due to slightly lower rental income than previously achieved on new leases in the highly competitive Polish office market.
32% of the Group's rental income is generated by the Polish real estate portfolio and 68% by the Hungarian portfolio, with EBITDA excluding direct hedging and the real estate revaluation effect in the range of 21%-79% in 1-6 months 2025.
Rental income from the Hungarian property portfolio amounted to EUR 7.344 million. Rental income from Hungarian assets increased by 3% and gross margin by 7%. The retail - non-retail rental income split is 54-46%, with a similar breakdown in the composition of operating income - net of the impact of property valuations.
The average occupancy rate is 84%, which is the average of 68% for the office and non-office portfolio and 99% for the retail portfolio. The lower occupancy rate of the former is due to the lower occupancy rate of underutilized, properties held for sale, averaging 36%.
The higher amount of other income/expenses is due to the attractive interest rate of the loan sourced from the loan programme of the Hungarian Export-Import Bank Zrt. borrowed by Appeninn Projekt-EGRV Ltd., whereby the Group has recognised the amount of EUR 107 thousand resulted from the discount arisen from the attractive interest rate for the period as a subsidy.
The overall negative real estate revaluation effect in the consolidated accounts is the result of the strengthening of the HUF over the period (HUF/EUR 410.09 at 31.12.2024; HUF/EUR 399.30 at 30.06.2025) and the difference in functional and presentation currency of the Hungarian subsidiaries, which generated a revaluation loss of EUR -3.930 million due to exchange rate change. On the other hand, the CBRE appraised value of investment incomeproducing properties increased by EUR 988 thousand, the revaluation difference of EUR -2.942 million being the balance of the two figures.
As a consequence, the consolidated EBITDA amounts to €3.765 million. After eliminating the impact of the property valuation, the operating profit is €6.707 million, €114 thousand lower than the adjusted profit of €6.821 million for the same period of the previous year. In relation to revenue, this means an EBITDA level of 62% in 2025, compared to 58% at 30.06.2024.
Due to the unchanged value of the Polish real estate expressed in euros and the fact that the functional and presentation currencies of the Polish company are identical, the exchange rate effect related to the value of the real estate, which in this case improves the result, is recognized among other income from financial transactions in the amount of 865 thousand, which thus does not affect EBITDA, only the after-tax profit.
The remaining balance of EUR 284 thousand in other income and expenses of financial operations is mainly due to the revaluation of the Group's loans in euro and forint and deposits in euro, forint and zloty due to exchange rate changes, as well as to the difference in functional and presentation currency for Hungarian companies.
The increase in the negative balance of interest income and expenses is the result of the interest cost of the subsidised bank loan drawn down by Appeninn Projekt-EGRV Ltd. and the favourable, but decreasing, interest rates on HUF and EUR deposits, which are the result of the high cash balances. Of the 1.361 million balance of interest income and expenses, 938 thousand euros are accounted in the financial cash flow in the first half of 2025, while the remaining 422 thousand euros was related to adjustments in accordance with IFRS standards and did not represent actual cash movement.
The profit after tax for the half-year as at 30.06.2025 amounts to €3.419 million, which, adjusted for the effects of property revaluations as detailed above (EUR +2.942 million: revaluation result of Hungarian properties, EUR -0.865 million: exchange rate effect of the unchanged value of Polish property), amounts to EUR 5.496 million. This represents a profitability of 51% as a percentage of turnover and 4.42% as a percentage of equity over 6 months.
Total comprehensive income per share issued and average number of shares outstanding 7.22 cents in the first half of 2025.
2.2. INTERIM CONSOLIDATED BALANCE SHEET
Assets
2.2.1. Non-current assets- investment properties
The value of the Group's investment properties owned by the holding and REIT project companies is reviewed quarterly by CBRE. The result of the property valuation of investment properties is €168.910 million, an increase of €988 thousand compared to 31.12.2024.
| Investment properties | 31.12.2024 | Capitalizations Increase in fair | Decrease in fair | 30.06.2025. | Type | ||
|---|---|---|---|---|---|---|---|
| value | value | ||||||
| 1023 Budapest, Bég u. 3-5. | 03EOF | 9 530 000 | 4 040 | (194 040) | 9 340 000 | Office | |
| 1022 Budapest, Bég u. 4. (Törökvész u. 30.) | 03EOF | 3 580 000 | 30 321 | (120 321) | 3 490 000 | Office | |
| 1015 Budapest, Hattyú utca 14. | 03EOF | 8 150 000 | 59 789 | (209 789) | 8 000 000 | Office | |
| 1118 Budapest, Kelenhegyi út 43. (iroda) | 03EOF | 3 120 000 | 11 027 | (101 027) | 3 030 000 | Office | |
| 1118 Budapest, Kelenhegyi út 43. (lakóépület) | 03EOF | 1 491 000 | 129 000 | 1 620 000 | Office | ||
| 1133 Budapest, Visegrádi u. 110-112. | 03EOF | 4 320 000 | 1 453 | 88 547 | 4 410 000 | Office | |
| 17 SPAR üzlet | 03EOF | 19 651 000 | 131 869 | (372 869) | 19 410 000 | Retail | |
| 6000 Kecskemét, Kiskőrösi utca 30. | 06NYR | 2 320 000 | 80 000 | 2 400 000 | Industrial | ||
| 1082 Budapest, Üllői út 48. | 01PRO | 21 100 000 | 650 000 | 21 750 000 | Office | ||
| 3525 Miskolc, Szűcs Sámuel u. 5. | 26MSK | 1 260 000 | (30 000) | 1 230 000 | Casino | ||
| 1013 Budapest, Pauler utca 2. | 32ALA | 1 240 000 | 8 540 | (28 540) | 1 220 000 | Office | |
| 8000 Zalaegerszeg, Balatoni út 5-7. | TIDA | 15 290 000 | 260 000 | 15 550 000 | Retail | ||
| 8900 Székesfehérvár, Szent Flórián krt. 11. | TIDA | 13 750 000 | 1 386 | 488 614 | 14 240 000 | Retail | |
| 8000 Nagykanizsa, Táborhely u. 4. | KANT | 18 200 000 | 21 286 | 78 714 | 18 300 000 | Retail | |
| Wisniowy Business Park | DOUNBY | 44 920 000 | 44 920 000 | Office | |||
| Összesen | 167 922 000 | 269 713 | 1 774 875 | (1 056 587) | 168 910 000 |
2.2.2. Non-current assets - Participation in associates
Interest in associates represents the 50% interest in Wisniowy Management Sp. z o.o., a company owned by Dounby Sp. z o.o.
2.2.3. Trade and other receivables, prepayments
Trade receivables amounted to EUR 1.712 million, slightly lower at the reporting date compared to EUR 2.218 million at the end of last year.
Other current receivables amounted to €906 thousand at 30 June 2025, €109 thousand lower than the €1.015 million at the end of 2024.
Prepayments amounted to EUR 2.307 million.
2.2.4. Assets held for sale
The CBRE asset valuation of properties held for sale remained unchanged during the half-year at €10.370 million.
| Assets for sale | 31.12.2024 | Capitalizations Increase in fair | Decrease in fair | 30.06.2025. | Type | ||
|---|---|---|---|---|---|---|---|
| value | value | ||||||
| 1149 Budapest, Várna u. 12-14. | 01PRO | 1 110 000 | 1 110 000 | Office | |||
| 1047 Schweidel utca 3. | 01PRO | 1 950 000 | 1 950 000 | Indsutrial | |||
| 1094 Budapest, Páva u. 8. | 03EOF | 2 490 000 | 3 300 | 26 700 | 2 520 000 | Office | |
| 1147 Budapest, Egyenes u. 4. | 01PRO | 750 000 | (20 000) | 730 000 | Indsutrial | ||
| 1105 Budapest, Bánya utca 20. | 01PRO | 1 370 000 | 1 370 000 | Other | |||
| 1023 Budapest, Felhévízi u. 24. | 01PRO | 940 000 | (10 000) | 930 000 | Office | ||
| 1139 Budapest, Frangepán u. 19. | 01PRO | 1 760 000 | 1 760 000 | Office | |||
| Összesen | 10 370 000 | 3 300 | 26 700 | (30 000) | 10 370 000 |
2.2.5. Cash and cash equivalents
In 2025, the Company's cash and cash equivalents increased from 47 million at 31.12.2024 to 52.264 million, which is predominantly unencumbered, unrestricted, available financial resource. The vast majority of the Group's cash and cash equivalents are held in euro deposits.
2.2.6. Long and short-term bank loans
The financing structure remained unchanged during the half-year, no new financing has been raised. The company met all its payment and other obligations under the loan agreements and fulfilled its covenants with banks, so the Group's outstanding debt decreased by EUR 1.375 million during the half-year. The short-term bank loans amount to EUR 3.370 million, which includes the capital repayment obligations for the next 12 months.
2.2.7. Equity and reserves
As at 30 June 2025, the Company's equity attributable to shareholders amounted to €124.404 million, with the total comprehensive income for the first half of the year €5.854 million higher than at the end of last year.
The amount of non-controlling interests is zero.
2.3 INTERIM CONSOLIDATED CASH FLOW
The Appeninn Group's cash and cash equivalents increased by a net amount of €5.230 million, which is the result of €3.550 million in profit after tax, €3.184 million in settled bank debt service, €0.601 thousand in investment cash flow and €5.378 million in operating cash flow, adjusted by the exchange rate effect of cash flow items amounting to €2,435 million.
3. ANNEXES
3.1. PROPORTION OF COMPANIES INCLUDED IN CONSOLIDATION AND CONTROLLED SHAREHOLDINGS
| Name of subsidiary | Parent company | Ownership and voting rights |
|
|---|---|---|---|
| 30.06. 2025 | 31.12.2024 | ||
| Appeninn E-Office Vagyonkezelő Zrt. | Appeninn Plc. | 100% | 100% |
| Appeninn Project-EGRV Ltd. | Appeninn Plc. | 100% | 100% |
| Appeninn Project-MSKC Ltd. | Appeninn Plc. | 100% | 100% |
| Appeninn Property Vagyonkezelő Zrt. | Appeninn Plc. | 100% | 100% |
| Tunnel Investment Ltd. | Appeninn Plc | 100% | 100% |
| Tidaholm Properties Ltd. | Appeninn Plc. | 100% | 100% |
| Kantrum Property Ltd. | Appeninn Plc. | 100% | 100% |
| Dounby SP. Z.O.O. | Appeninn Projekt-EGRV Ltd. | 100% | 100% |
| Wisniowy Management Sp. Z.o.o. | Dounby Sp. z o.o. | 50% | 50% |
| Imanpa doo Beograd | Appeninn Projekt-EGRV Ltd. | 100% | 100% |
| Leverton doo Beograd | Appeninn Projekt-EGRV Ltd. | 100% | 100% |
| Appeninn Project-BSV Ltd. | Appeninn Plc. | 100% | 100% |
| Appeninn Project-TRNW Ltd. | Appeninn Plc. | 100% | 100% |
3.2. MAJOR EVENTS IN THE FIRST HALF OF 2025 AND THE PERIOD AFTER THE REPORTING DATE
Budapest, 21 January 2025
Appeninn Asset Management Plc (registered office: 1022 Budapest, Bég street 3-5.; company registration number: 01-10-046538; hereinafter referred to as the "Company") hereby informs the Honourable Investors that the Issuer has today established a project company subject to Act CII of 2011 on Regulated Real Estate Investment Companies. The name of the REIT project company is Appeninn Project-BSV Ltd.
Budapest, 12 March 2025
Appeninn Asset Management Plc (registered office: 1022 Budapest, Bég street 3-5.; company registration number: 01-10-046538; hereinafter referred to as the "Company") hereby informs the Honourable Investors that the Issuer has today acquired a project company subject to Act CII of 2011 on Regulated Real Estate Investment Companies. The subsidiary has no real estate assets. The Polish project company REIT is called Appeninn Project-TRNW Sp. z o. o.
Budapest, 21 March 2025
Appeninn Asset Management Plc (registered office: 1022 Budapest, Bég street 3-5.; Cg: 01-10-046538; hereinafter referred to as the "Company") is a public limited company incorporated under the Second Book of the General Business Rules of the Budapest Stock Exchange, Book 20.Section 4 of the Prospectus and Listing Rules of the Listing, Admission and Listing on the Stock Exchange of the Company, the Company hereby informs the investors that Kíra Hodován will be the Company's Investor Relations Officer as of 21 March 2025. Phone: +36 30 743 5471 E-mail: [email protected]
Budapest, 2 April 2025
Appeninn Asset Management Plc (registered office: 1022 Budapest, Bég street 3-5.; company registration number: 01-10-046538; hereinafter referred to as "Issuer") hereby informs the Investors that Scope Ratings GmbH (hereinafter referred to as "Scope") has announced that the 2025. On 2 April 2025, Scope has published the results of the rating review of the Issuer and its bonds "APPENINN 2029/I" issued under the MNB Growth Bond Programme. In the announcement, Scope confirmed the Issuer's 'B+/Stable' credit rating and the 'B+' rating of the bond. The affirmation is based on improved profitability due to the successful integration of the properties acquired in 2023, a sound strategy with moderate leverage, the achievement of a simplified corporate structure and REIT status, and the strengthening of internal functions. The rating review is available in English on the Scope Ratings website (https://scoperatings.com/ratings-and-research/rating/EN/178618)
Budapest, 25 April 2025
Appeninn Asset Management Plc (registered office: 1022 Budapest, Bég street 3-5.; Cg: 01-10-046538; hereinafter referred to as the "Company") hereby informs the Investors that the General Meeting of the Company has decided to approve the rating of the Company for the 2025. At its Annual General Meeting held on 25 April 2025, 2025, the Company's General Investors elected Ernst & Young Könyvvizsgáló Korlátolt Felelősségű Társaság (registered office: 1132 Budapest, Váci út 20.; company registration number: 01-09-267553; Chamber of Commerce registration number: 001165; responsible auditor: János Varga /address: 1221 Budapest, Tanító street 15. 2. a.; mother's name: Éva Julianna Bucsuházi; Chamber of Commerce registration number: MKVK 007319/), whose mandate will last until the adoption of the individual and consolidated annual report for the year 2026 by the General Meeting of Shareholders, but no later than 31 May 2027.
3.3. SEPARATE INTERIM FINANCIAL STATEMENTS OF APPENINN PLC
| Balance sheet | 30.06.2025 | 31.12.2024 |
|---|---|---|
| Assets | thousand HUF | thousand HUF |
| Investment property | 958 320 | 951 409 |
| Fixed assets | 7 150 | 8 378 |
| Right of use assets | 0 | 0 |
| Receivables from related parties | 10 756 014 | 16 931 784 |
| Investments in subsidiaries | 12 626 279 | 12 623 279 |
| Total non-current assets | 24 347 763 | 30 514 850 |
| Trade receivables | - | 16 566 |
| Other short-term receivables | 48 477 | 55 975 |
| Receivables from related parties | 4 349 496 | 5 682 448 |
| Short-term loans | 0 | - |
| Prepayments | 8 278 | 267 767 |
| Cash and cash equivalents | 18 373 371 | 10 469 766 |
| Total current assets | 22 779 623 | 16 492 522 |
| Total assets | 47 127 386 | 47 007 372 |
| Balance sheet | 30.06.2025 | 31.12.2024 |
|---|---|---|
| Equity and liabilities | thousand HUF | thousand HUF |
| Subscribed capital | 4 737 142 | 4 737 142 |
| Repurchased own shares | -1 114 | -1 114 |
| Reserves | 8 095 844 | 8 095 844 |
| Retained earnings | 13 544 346 | 13 599 851 |
| Total equity and reserves | 26 376 218 | 26 431 723 |
| Deposits paid by tenants | 18 790 | 19 037 |
| Lease commitments | 0 | - |
| Debts on own-issue bonds | 20 461 408 | 20 114 307 |
| Long-term related liabilities | 0 | - |
| Deferred tax liabilities | 0 | - |
| Total long-term liabilities | 20 480 198 | 20 133 344 |
| Short-term bank loans and leasing liabilities | 0 | 18 551 |
| Other short-term liabilities | 244 459 | 242 174 |
| Short-term related liabilities | 1 831 | 1 831 |
| Liabilities to suppliers | 12 856 | 29 951 |
| Taxes and duties payable | 0 | 0 |
| Income tax liabilities | 0 | 71 286 |
| Accrued liabilities | 11 823 | 78 512 |
| Total current liabilities | 270 969 | 442 305 |
| Total liabilities | 20 751 167 | 20 575 649 |
| Total equity and liabilities | 47 127 386 | 47 007 372 |
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| Income statement | thousand HUF | thousand HUF |
| Rental income from real estate | 25 370 | 424 078 |
| Direct costs of letting real estate | (25 860) | (38 382) |
| Gross margin | (491) | 385 696 |
| Service charges from subsidiaries | - | 126 586 |
| Administrative expenses, service charges, salaries | (70 586) | (185 690) |
| Other revenue/(expenditure) | 0 | (997) |
| Gain/loss on sale of subsidiaries, investments | - | - |
| Gain on sale of investment property | - | - |
| Result of revaluation of investment property | 6 811 | 775 021 |
| Investments in real estate (capex) | (5 503) | (2 774) |
| Gross operating result (EBITDA)** | (69 769) | 1 097 842 |
| Depreciation and amortisation | (1 127) | (1 173) |
| Other (expense)/income from financial operations | (127 038) | 575 209 |
| Balance of interest receivable and (payable) | 142 429 | 163 530 |
| Leasing interest | - | - |
| Profit before tax | (55 505) | 1 835 407 |
| Income taxes | - | - |
| Profit or (loss) for the year | (55 505) | 1 835 407 |
Appeninn Plc's rental income and direct costs are derived from the rental of the property it owns in Kecskemét, its financial income from interest on deposits of its cash and cash equivalents, interest payments on the equity loans taken by the Group's subsidiaries and their exchange rate effects, and dividend payments totalling HUF 520 million from Appeninn E-Office Zrt. and Alagút Investments Ltd.
The vast majority of its financial expenses result from the interest payment obligation on the NKP bond.
| 30.06.2025 | 30.06.2024 | |
|---|---|---|
| Cash flow | thousand HUF | thousand HUF |
| Profit before tax | -55 505 | 1 835 407 |
| Result from revaluation of investment properties | (1 308) | (775 021) |
| Depreciation | 1 127 | 1 173 |
| Profit/(loss) on disposal of subsidiaries | - | - |
| Reversal of impairment losses | - | - |
| Interest income | (492 429) | (515 053) |
| Interest expenditure | 350 000 | 350 000 |
| Change in receivables and other current assets | 283 552 | 46 542 |
| Change in liabilities and accruals | (74 310) | 158 054 |
| Income tax paid | (71 286) | (49 975) |
| Net cash flow from operating activities | -60 158 | 1 051 127 |
| Acquisition of shareholdings | (3 000) | (357 100) |
| Disposal of shares | - | - |
| Proceeds from sale of tangible fixed assets | - | - |
| Purchases of tangible fixed assets | (5 503) | (5) |
| Subleasing income | - | 48 558 |
| Interest revenue | 492 429 | 515 053 |
| Change in loans granted and given | - | - |
| Proceeds from concessions | - | - |
| Loans repaid to connected parties | 7 508 722 | - |
| Loans granted to related parties | - | 1 992 448 |
| Net cash flow from investing activities | 7 992 647 | 2 198 954 |
| Dividends paid | - | - |
| Repayment of own issue bond | - | - |
| Increase in loans, leasing, borrowings | 328 550 | - |
| Repayment of loans, leasing, borrowings | (131 514) | |
| Purchase of own shares | - | - |
| Sale of own shares | - | - |
| Interest expenses | (350 000) | (350 000) |
| Lease interest | - | (1 523) |
| Exchange rate difference | - | - |
| Net cash flow from financing activities | (21 450) | (483 037) |
| Effect of exchange rate | (7 435) | 141 280 |
Change in cash and cash equivalents 7 903 604 2 908 324
| Changes in equity (in thousands of HUF) | Share capital | Reserves | Treasury | Retained | Total equity |
|---|---|---|---|---|---|
| shares | earnings | ||||
| Balance on 1 January 2024 | 4 737 142 | 8 095 844 | (1 114) | 7 263 787 | 20 095 659 |
| Total comprehensive income | |||||
| Total comprehensive income | 6 336 064 | 6 336 064 | |||
| Transactions with owners | - | - | - | - | - |
| Purchase of treasury shares | - | ||||
| Sale of treasury shares | - | ||||
| Reclassification | - | ||||
| Dividend | - | ||||
| Capital increase | - | ||||
| Balance on 31 December 2024 | 4 737 142 | 8 095 844 | (1 114) | 13 599 851 | 26 431 723 |
| Balance on 1 January 2025 | 4 737 142 | 8 095 844 | (1 114) | 13 599 851 | 26 431 723 |
| Total comprehensive income | |||||
| Total comprehensive income | (55 505) | (55 505) | |||
| Transactions with owners | - | - | - | - | - |
| Purchase of treasury shares | - | ||||
| Sale of treasury shares | - | ||||
| Reclassification | - | ||||
| Dividend | - | ||||
| Capital increase | - | ||||
| Balance on 30 June 2025 | 4 737 142 | 8 095 844 | (1 114) | 13 544 346 | 26 376 218 |
3.4. GENERAL INFORMATION ON THE ISSUER
| Name of the company: | Appeninn Asset Management Plc. |
|---|---|
| Company form: | public limited company |
| Registered office: | 1022 Budapest, Bég street 3-5. |
| Company registration number: | 01-10-046538 |
| Tax number: | 11683991-2-41 |
| Statistical number: | 11683991-6810-114-01 |
| Date of incorporation: | 2009.12.07. |
| Share capital: | 4.737.142 thousand HUF |
| Date of listing on the stock exchange: | 2 July 2010 |
SHARE INFORMATION
| Type of shares: | registered ordinary share, dematerialised | ||
|---|---|---|---|
| Nominal value of shares: | HUF 100 per share | ||
| Number of shares: | 47,371,419 shares | ||
| ISIN code of the shares: | HU0000102132 | ||
| Repurchased own shares: | 1,848 shares |
PRESENTATION OF HOLDINGS GREATER THAN 5%
| Name | Nationality1 | Activity 2 | Quantity (pieces) |
Shareholding (%) |
Voting rights (%) ,3 |
|---|---|---|---|---|---|
| Avellino Holding Zrt. | B | T | 11.369.141 | 24,00% | 24,00% |
| Sequor Holding Zrt. | B | T | 11.297.291 | 23,84% | 23,84% |
| OTP Real Estate Investment Fund |
B | T | 2.410.372 | 5,09% | 5,09% |
1 Domestic (B). Foreign (K) 2 Custodian (L). Public (G). International Development Institute (IDI). Institutional (I). Economic Corporation (E) Private (M). Employee, manager (D) 3 Voting rights to participate in the decisionmaking at the general meeting of the Issuer
As of 30 June 2025, the Company's share capital consists of 47,371,419 dematerialized ordinary shares with a nominal value of HUF 100.00 each, of which 1,848 shares are owned by the Company.
OFFICERS
The executive officers of Appeninn Plc as of 30 June 2025 were as follows:
Board of Directors:
Szathmáriné Szűcs Györgyi Magdolna CEO (Chairman) Dr. Tibor Endre Illés Zoltán Jombik Dr. János Dezső Jákó dr. István Hüse
Audit Committee:
Zoltán Jombik (Chairman) dr. János Dezső Jákó dr. István Hüse
3.5. STATEMENT ON THE AUDIT OF THE FIGURES IN THE REPORT
The figures in the Report are consolidated, prepared in accordance with IFRS standards in force on 30 June 2025 and have not been audited by an independent auditor.
3.6. APPENINN GROUP DISCLAIMER
The undersigned declare that the Report, prepared to the best of our knowledge and in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), gives a true and fair view of the assets, liabilities, financial position and profit and loss of Appeninn Plc and its consolidated entities. Furthermore, the Report gives a true and fair view of the position, development and performance of Appeninn Plc and its consolidated companies.
The Interim Financial Report is not subject to an independent auditor's report.
Budapest, 12 September 2025
Ms Györgyi Magdolna Szűcs Szathmáriné Chief Executive Officer Appeninn Asset Management Plc.