Phoenix Spree D Regulatory News (PSDL)

Phoenix Spree Deutschland Limited(the "Company" or "PSD")

Interim Results for the half-year to 30 June 2021

Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, announces its Interim Results for the six months ended 30 June 2021.

Financial Summary

1 - Rental income is disclosed under IAS 18, therefore rent recovered from tenants after the removal of the Mietendeckel is included in the 2021 figures

2 - GBP:EUR FX rate 1:1.163 as at 30 June 2021

3 - Net LTV uses nominal loan balances as per note 17 rather than the loan balance on the Consolidated Statement of Financial Position which consider Capitalised Finance Arrangement Fees in the balance.

Financial and operational highlights

· EPRA NTA per share up 2.7 per cent in H1 2021 to €5.42; EPRA NTA per share total return of 3.6 per cent.

· Like-for-like Portfolio value, adjusted for acquisitions and disposals, increased by 2.5 per cent in H1 2021.

· Like-for-like rental income per sqm increased by 4.6 per cent versus prior year, reflecting the reversionary potential within the portfolio.

o New Leases in Berlin signed at an average 35.8 per cent premium to passing rents.

· Condominium sales notarised during H1 2021 of €4.3 million, a 45.1 per cent increase versus H1 2020.

o Average achieved value per sqm of €4,821 for residential units, a 25.4 per cent premium to book value and 18.3 per cent to the Portfolio average value per sqm as at 30 June 2020.

o 74 per cent of Portfolio assets legally split into condominiums, up from 70 per cent as at 31 December 2020. Applications representing a further 11 per cent of the Portfolio are underway, over half of which are in the final stages of the process.

o A further €3.9 million of condominium sales notarised in Q3 at an average sales price of €5,655 per sqm.

· New construction project representing seven new residential units underway, with completion expected in early 2022.

· Recognition of commitment to sustainability reporting at EPRA Sustainability Best Practice Recommendations (sBPR) Awards 2021: EPRA sBPR Silver Medal and EPRA sBPR Most Improved Award.

Share buy-backs and dividend

· Following positive Mietendeckel ruling, the Company has adopted a more proactive buyback strategy in order to take advantage of the valuation discount.

· Since proactive share buyback programme announced on 2 June 2021, a further 3.2 per cent of shares in issue have been repurchased to 23 September 2021 at an average discount to trailing EPRA NTA of 12%

· Discount to EPRA NTA has narrowed from 30 per cent to 12 per cent during the first half of the financial year.

· Unchanged interim dividend of 2.35 cents. Dividend increased or maintained since listing in June 2015.

Update on COVID-19 and Mietendeckel

· Collection of backdated Mietendeckel rents progressing well; as at 23 September 2021 over 91 per cent past due rents collected.

· EPRA vacancy of 1.3 per cent at a record low; reduction in supply of available rental accommodation created by Mietendeckel has yet to be reversed.

· Continued limited impact on rent collection from COVID-19. Over 97 per cent of rents collected during H1 2021, with the collection rate remaining consistent in H2 2021 to date.

Outlook

· Outcome of German election on 26 September remains uncertain, with several coalition permutations possible.

· Long-term Berlin demographic trends expected to remain positive:

o Decreased availability of rental stock, exacerbated by the recently removed Mietendeckel, continues to support market rents;

o Net inward migration expected to strengthen when restrictions associated with COVID-19 are permanently removed.

· Potential for further valuation creation through condominium projects and sales - condominium pricing expected to remain strong, particularly for centrally located Berlin apartments.

· Significant reversionary potential underpins future rental growth - increased capex anticipated to drive acceleration in reversionary rental income growth.

· Robust business model, a strong balance sheet and good levels of liquidity mean PSD remains well positioned to reinvest in its Portfolio.

o The Company continues to monitor the best use of funds to generate shareholder value including, amongst other options, share buy-backs versus potential acquisitions.

Robert Hingley, Chairman of Phoenix Spree Deutschland, commented:

"I am pleased to report another period of solid performance and growth. Despite the further market disruption caused by the combined effects of COVID-19, the Mietendeckel and its subsequent reversal, the Portfolio delivered further valuation gains reflecting the strong demand for living space in Berlin.

Berlin market dynamics remain positive and affordability comparisons with other German cities are still favourable. Despite the uncertainty ahead of the outcome the German Federal Election, it is expected that Berlin demographic trends, particularly net inward migration, will further strengthen when restrictions associated with COVID-19 are permanently removed. This will provide further support for PSD's reversionary strategies and allow us to continue to deliver value to shareholders."

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CHAIRMAN'S STATEMENT

I am pleased to report that, during the first half of the financial year, PSD has delivered further increases in property values and rental revenues. As at 30 June 2021, the Portfolio was valued at €777.7 million by Jones Lang LaSalle GmbH, a like-for-like increase of 2.5 per cent since 31 December 2020.

The first six months of the financial year were characterised by significant market disruption caused by the combined effects of COVID-19, the Mietendeckel and its subsequent reversal. Notwithstanding this, the Company was able to deliver a total return per share of 3.6 per cent.

Although the Mietendeckel did not cause transaction values in the Berlin residential property market to fall during the period in which it was in place, equity markets attached a significant risk premium to the valuation of listed Berlin residential property businesses. The removal of the Mietendeckel and the uncertainty it created, combined with our proactive share buyback programme (at an average discount to 2020 yearend NAV of 19.0 per cent over first sixth months of the year) and the notarisation of condominiums for sale (at an average premium to book value of 25.4 per cent over the first six months of the year), has underpinned a positive performance for the Company. Against this backdrop, PSD's share price outperformed the FTSE All-Share index by 16 per cent and the FTSE 350 Real Estate Investment Services Sector by 17 per cent during the first half of the financial year.

The Berlin Mietendeckel

PSD and its legal advisors were always firmly of the opinion that the Mietendeckel was unconstitutional. The Company therefore welcomed the ruling by the German Federal Court on 15 April 2021, that the Mietendeckel was unlawful and should be struck out in its entirety. A more detailed update on the impact of the Mietendeckel is contained within the report of the Property Advisor.

Share buy-backs

Notwithstanding the removal of the Mietendeckel, PSD's shares continued to trade at a material discount to Net Asset Value in the weeks after the court ruling. The Board believed that this discount did not reflect the record and performance of the underlying Portfolio and the positive outlook following the removal of the Mietendeckel. For this reason, on 2 June 2021, the Company announced its intention to adopt a more proactive buyback strategy to take advantage of the valuation discount and to seek to ensure that the share price better reflected the underlying Net Asset Value. A material allocation of capital has been made available to fund the buy-back programme through a combination of existing cash balances, refinancing, condominium sale proceeds and the disposal of non-core assets.

COVID-19

The Company's overriding priority is the health and wellbeing of its tenants, work colleagues and wider stakeholders during what has been a period of significant disruption. Where appropriate, the Company continues to support its tenants, both residential and commercial, through agreeing, on a case-by-case basis, the payment of monthly rents or deferring rental payments.

I am nevertheless pleased to report that the impact of COVID-19 on PSD's rent collection has been very limited, with the level of rent arrears in line with pre-COVID levels. I am confident that, as the current restrictions and disruptions created by COVID-19 recede, PSD will be well placed to continue to deliver its investment objectives. The Company will continue to closely monitor any future potential impacts of COVID-19 on both the Berlin economy and PSD.

Our Environmental, Social, and Corporate Governance (ESG) progress

The Board believes that taking a sustainable and socially responsible approach to our business delivers long-term success and benefits for all of our stakeholders. As a member of EPRA, we want to contribute to greater transparency in reporting. Therefore, in 2020, we strengthened our commitment to delivering against our environmental and social impacts by introducing EPRA's Sustainability Best Practices Recommendations and capturing our ESG measurements within their framework.

I am delighted to report that this commitment has been recognised at the EPRA Sustainability Awards 2021, with PSD receiving both a Silver and Most Improved award in recognition of the Company's commitment to best practice in its reporting. This recognition further encourages us to continue to approach the future in a consistent, ethical, safe and environmentally friendly way.

Our charitable initiatives

PSD takes a strategic approach to its charitable giving which is guided by our Community Investment Policy and focuses on supporting charities where there is a connection with either 'homelessness' or 'families.' Since February 2019, we have provided support to a women's refuge (The Intercultural Initiative) that helps women affected by domestic violence, providing emergency shelter, advice and counselling to the women and their children. I am pleased to report that, during the first half of 2021, PSD has committed to supporting an additional Berlin charity, Laughing Hearts. This charity supports children living in children's homes and social care.

Dividend

The Board is pleased to declare an unchanged interim dividend of 2.35 cents per share (2.02 pence per share) for the first half of the year (six months to 30 June 2020: 2.35 cents, 2.1 pence). The dividend is expected to be paid on or around 29 October 2021 to shareholders on the register at the close of business on 8 October 2021, with an ex-dividend date of 7 October 2021.

Since listing on the London Stock Exchange in June 2015 and including the announced dividend for 2021 and bought-back shares held in treasury up to 23 September 2021, €75.9 million has been returned to shareholders of which €41.8 million relates to dividends and €34.1 million to share buybacks. The Board is committed to continuing to provide shareholders with a secure dividend over the medium term.

REPORT OF THE PROPERTY ADVISOR

Federal Court rules against the legality of the Berlin Mietendeckel

On 15 April 2021 the German Federal Constitutional Court, the highest court in Germany, ruled that the Mietendeckel was unlawful and thus void.

The uncertainty created during the period in which the Mietendeckel was in place significantly disrupted the Berlin residential market. One consequence was to reduce significantly the supply of available rental accommodation, as rental stock was withdrawn from the market, causing record-low vacancy rates. This trend has been reflected across PSD's portfolio and has persisted in the months since the Mietendeckel was removed.

Another consequence was to reduce significantly the investment in the stock of Berlin housing. PSD's reversionary rental strategy which, before the introduction of the Mietendeckel, had delivered consistently strong rental growth since listing in 2015, was partly reliant on high levels of capital expenditure which could not be justified under the Mietendeckel rules. The removal of rent controls will allow the Company to restore the level of investment into the Portfolio to pre-Mietendeckel levels.

The Portfolio has continued to demonstrate significant reversionary potential, as evidenced by the fact that, during the first half of the current financial year, new lettings in Berlin were signed at an average premium of 35.8 per cent to passing rents. This reversionary gap should underpin rental growth in the medium term, irrespective of market rental growth. The Company will also continue with its strategy of crystallising condominium reversionary value within the Portfolio through the selective sale of individual units as condominiums at a premium to book value.

Prior to the Mietendeckel ruling, all rental agreements had been structured to revert to pre-Mietendeckel rent levels and to allow for the back-payment of higher rents now legally due for the period during which the Mietendeckel was in place. The Company had previously estimated that the amount of back-dated rent which could be claimed from tenants for the period in which the Mietendeckel was in place to be approximately €2.1 million, of which €0.8 million related to backdated rents from 2020.

As at 30 June, 86 per cent of rents (€1.8 million) had been collected, and; as at 23 September 2021, 92 per cent of rents (€2.0 million) had been collected. Tenants had been advised by the Berlin government to set aside appropriate reserves, and the Company will continue to work on a case-by-case basis with any tenants suffering hardship as it collects the remainder of back-dated rents due.

Financial results

Table: Financial highlights for the six-month period to 30 June 2021

1 - Net LTV and net debt uses nominal loan balances as per note 17 rather than the loan balances on the Consolidated Statement of Financial Position which consider Capitalised Finance Arrangement Fees in the balance as per IAS 23.

2 - GBP:EUR FX rate 1:1.163 as at 30 June 2021

Revenue for the six-month period was €12.9 million (six months to 30 June 2020: €12.0 million). Profit before taxation was €20.4 million (six months to 30 June 2020: €15.3 million) which was positively affected by a revaluation gain of €16.0 million (30 June 2020: €17.0 million), an increase in revenue collected after the removal of the Mietendeckel, a reduction in property and administrative costs and a positive movement in our interest rate swaps. Reported earnings per share for the period were 17 cents (six months to 30 June 2020: 12 cents).

Reported EPRA NTA per share rose by 2.7 per cent in the first half of 2021 to €5.42 (£4.66) (31 December 2020: €5.28 (£4.76)). After taking into account the 2020 final dividend of 5.15 cents (4.65 pence), which was paid in June 2021, the € EPRA NTA total return in the first half of 2021 was 3.6 per cent (H1 2020: 3.9 per cent). The £ EPRA NTA total return for the same period was -1.1 per cent, reflecting the strengthening of the £ against the € in the first six months of the year.

The Board is pleased to declare an unchanged interim dividend of 2.35 cents per share (2.02 pence per share) for the first half of the year (six months to 30 June 2020: 2.35 cents, 2.1 pence). The dividend is expected to be paid on or around 28 October 2021 to shareholders on the register at the close of business on 8 October 2021, with an ex-dividend date of 7 October 2021.

Like-for-like portfolio value increase of 2.5 per cent

As at 30 June 2021, the Portfolio was valued at €777.7 million (31 December 2020: €768.3 million). This represents a 1.2 per cent increase over the six-month period. On a like-for-like basis, excluding the impact of disposals, the Portfolio value increased by 2.5 per cent. This reflects a reversion to market rents following the removal of the Mietendeckel, further progress in condominium splitting and improvements in the micro locations of certain assets.

Following the ruling of the Federal court, the interim Portfolio valuation undertaken by Jones Lang LaSalle GmbH (JLL) for the half-year ended 30 June 2021, now assumes market (as opposed to Mietendeckel) rents for the full Discounted Cashflow (DCF) period after the Mietendeckel was declared unconstitutional.

Table: Portfolio valuation and breakdown

1 - Net LTV and net debt uses nominal loan balances as per note 17 rather than the loan balances on the Consolidated Statement of Financial Position which consider Capitalised Finance Arrangement Fees in the balance as per IAS 23.

2 - GBP:EUR FX rate 1:1.163

The Berlin residential property market has remained stable in the first half of the financial year and, although transaction volumes remained below peak levels, investment demand observed by JLL continues to support increased pricing, reflecting the fact that market participants placed a high probability on the Mietendeckel being struck out. JLL has conducted a RICS Red Book property-by-property analysis and has provided a Portfolio valuation, tied back to comparable market transaction values.

The valuation as at 30 June 2021 represents an average value per square metre of €4,075 (31 December 2020: €3,977), at a gross fully-occupied yield of 2.9 per cent (31 December 2020: 2.4 per cent). Included within the Portfolio are eight properties valued as condominiums, with an aggregate value of €43.4 million (31 December 2020: nine properties, aggregate value €52.4 million).

The previous Portfolio valuation for the financial year ended 31 December 2020 had assumed that the Mietendeckel would be fully implemented for its entire five-year lifespan and therefore incorporated the negative impact on rental income caused by the Mietendeckel.

Table:  Rental income and vacancy rate

Like-for-like rental income per square metre growth of 4.6 per cent

After considering the impact of acquisitions and disposals, like-for-like rental income per square metre grew 4.6 per cent compared with 30 June 2020. Like-for-like rental income grew 4.3 per cent over the same period.

Gross in-place rent was €9.5 per sqm as at 30 June 2021, an increase of 4.3 per cent compared with 30 June 2020 and an increase of 2.0 per cent on 31 December 2020.

EPRA vacancy at record low

Reported vacancy at 30 June 2021 was 7.7 per cent (30 June 2020: 8.0 per cent). On an EPRA basis, which adjusts for units undergoing development and made available for sale, the vacancy rate was 1.3 per cent (30 June 2020: 4.3 per cent). Although the Mietendeckel has been removed, the decline in the availability of rental property it caused has yet to be reversed.

Berlin reversionary re-letting premium of 35.8 per cent

During the year to 30 June 2021, 102 new leases were signed, representing a letting rate of approximately 4.3 per cent of occupied units. The average rent achieved on all new lettings was €11.7 per sqm, a 7.6 per cent increase on the prior year, and an average premium of 23.5 per cent to passing rents. This compares to an 18.7 per cent premium in the period to 30 June 2020.

The reversionary premium is negatively impacted by the inclusion of re-lettings from the acquisition in Brandenburg in 2020, where rents are lower than those achieved in central Berlin. Looking solely at the Berlin portfolio, which represents 91.5 per cent of total residential lettable space, the reversionary premium achieved was 35.8 per cent, down from 37.0 per cent in the prior period.

Limited impact from COVID-19 on rent collection

The prolonged duration of the COVID-19 outbreak and the restrictions and uncertainty it has caused have had a limited impact on rent collection levels. Excluding collection of back-dated rents, over 97 per cent of rents due had been collected during the first six months of the financial year.

Where appropriate, PSD continues to support its tenants, both residential and commercial, by agreeing, on a case-by-case basis, the payment of monthly rents or deferring rental payments. In addition, PSD has in place a Vulnerable Tenant Policy which it will continue to monitor and apply to relevant tenants.

Portfolio investment

During the first half of 2021, a total of €2.7 million was invested across the Portfolio (H1 2020: €2.2 million). These items are recorded as capital expenditure in the Financial Statements. A further €0.6 million was spent on maintaining the assets and is expensed through the profit and loss account. Following the legal ruling against the Mietendeckel, it is anticipated that capital expenditure will rise significantly in the second half of the financial year as projects which had been postponed or cancelled pending a final ruling on the legality of the Mietendeckel are reinstated.

Condominium sales at a premium to book value

PSD's condominium strategy involves the division and resale of selected properties as single apartments. This is subject to full regulatory approval and involves the legal splitting of the freeholds in properties that have been identified as being suitable for condominium conversion.

During the first half of 2021, 13 condominium units were notarised for sale for an aggregate value of €4.3 million (H1 2020: €3.0 million). The average achieved notarised value per sqm for the residential units was €4,821, representing a 25.4 per cent premium to book value and a 18.3 per cent premium to the average residential portfolio value as at 30 June 2021.

Since the reporting date, the Company has notarised for sale a further 11 condominium units with total value €3.9 million and at a price per square metre of €5,655. This represents a 25.3 per cent premium to book value and a 38.8 per cent premium to the average residential portfolio value as at 30 June 2021.

As at 23 September 2021, 74 per cent of the Portfolio had been registered as condominiums, providing opportunities for the implementation of further sales projects where appropriate. A further 11 per cent are in application, over half of which are in the final stages of the process. We believe this gives PSD greater strategic flexibility to respond to changes in market conditions than its peer group.

Condominium notarisations during the second quarter of 2021 were impacted by COVID-19 and the legacy impact of the Mietendeckel. The "second wave" of COVID made the viewing of occupied apartments more difficult. Additionally, record low vacancy rates caused by the Mietendeckel have continued, reducing the number of vacant apartments which can be made available for sale. As the Mietendeckel is no longer in place and the COVID vaccination programme in Germany is now progressing well, it is anticipated that the slowdown in condominium sales will be temporary.

Condominium construction

Prior to the removal of the Mietendeckel, the Property Advisor had completed an exercise to examine the financial viability of the creation of new condominium units within the footprint of the existing Portfolio.

The first project involves building out the attic and renovating existing commercial units to create seven new residential units in an existing asset bought in 2007. Construction on this project is underway and the first units are projected to be available for sale or rental in the first half of 2022. The total construction budget for this project is €3.9 million.

The second project is for the construction of a new 23-unit apartment block located in the footprint of a property acquired in 2018. Alongside this, the undeveloped attic of the same property will be built out with the creation of four new units for sale as condominiums, or for rental

The Company also has building permits to renovate attics in 20 existing assets to create a further 49

units for sale as condominiums or as rental stock.

Debt and gearing1

As at 30 June 2021, PSD had gross borrowings of €290.2 million (31 December 2020: €291.4 million) and cash balances of €28.4 million (31 December 2020: €37.3 million), resulting in net debt of €261.8 million (31 December 2020: €254.4 million) and a net loan to value on the Portfolio of 33.7 per cent (31 December 2020: 33.1 per cent). The increase in net debt in the period is a result of the cash used in the share buyback programme, offset slightly by debt repayments made upon sale of condominiums.

1 Section uses nominal loan balances as per note 17 rather than the loan balances on the Consolidated Statement of Financial Position which consider Capitalised Finance Arrangement Fees in the balance.

Nearly all PSD's debt interest rates have been fixed through hedging and, as at 30 June 2021, the blended interest rate of PSD's loan book was 2.0 per cent (31 December 2020: 2.0 per cent). The average remaining duration of the loan book at 30 June 2021 had decreased to 5.3 years (31 December 2020: 6.0 years).

The Company is actively continuing to review its balance sheet and is looking for additional opportunities to add liquidity to further the Company's investment objectives.

Outlook

Predictably, the uncertainty created by the Mietendeckel has significantly disrupted the Berlin residential market. This has been reflected by a reduction in Berlin transaction activity (but not values) from prior peak levels, a significant reduction in the availability of rental accommodation for tenants, record low vacancy, and a decline in new investment in the Berlin housing market. Although it will take some time for these effects to be reversed, the removal of the Mietendeckel should alleviate these negative market consequences.

The Company is well placed to resume its reversionary rental strategy and the removal of the Mietendeckel will allow the Company to restore the level of investment into the Portfolio to pre-Mietendeckel levels. The fact that new lettings in Berlin for the first six months of 2021 were signed at an average premium of 35.8 per cent to passing rents should underpin rental growth in the medium term, irrespective of market rental growth.

PSD will also continue with its strategy of crystallising condominium reversionary value within the Portfolio through the selective sale of individual units as condominiums at a premium to book value. Exceptionally among its listed peers, over 74 per cent of the Company's Berlin portfolio has already been legally split into condominiums, with a further 11 per cent in application. The Property Advisor is confident that, as and when the current restrictions and disruptions created by COVID-19 recede, it will be well placed to continue to deliver on its condominium strategy.

The German Federal Elections are due to be held on 26 September 2021. Prior to these elections there was a "Grand Coalition" led by Angela Merkel between the CDU and the SPD which had been in power since the previous Federal Elections in 2017. Ahead of the elections, there remains a degree of uncertainty as to the outcome, with a number of coalition permutations possible after polling day. It may take some time before any coalition agreement is struck and any new policy initiatives relating to German residential real estate are agreed.

The Company notes that the Federal Government has previously discussed the introduction of legislation that may limit the ability of landlords to split their properties into condominiums. The implementation of any such measures would be likely to reduce the stock of apartments available on the market. Given the high proportion of the Portfolio already split into condominiums, any valuation impact on the Company's Portfolio would be expected to be positive.

During its 15 years of operation, the Company has adapted its business model many times to the changing regulatory environment while continuing to deliver positive returns to shareholders. The Property Advisor believes that the Company has a flexible enough business model to adapt to new regulations caused by a change in Government.

The monetary policy pursued by the European Central Bank in the wake of the COVID-19 pandemic has been extremely accommodating. While interest rates remain at low levels, relatively higher yields from residential real estate will remain attractive to institutional investors, such as insurance companies, pension funds and wealth managers, who are increasingly looking favourably on multi-family housing as an alternative to government bonds and other long-dated fixed income instruments.

Low interest rates will continue to benefit the Condominium market as well. Favourable mortgage rates, coupled with a lack of available rental properties, and favourable mortgage versus market rent dynamics, will continue to provide a tailwind for Condominium pricing.

The Property Advisor remains confident in the long-term outlook for PSD. Berlin market dynamics remain attractive and affordability comparisons with other German cities are still favourable. It is expected that Berlin demographic trends, particularly net inward migration, will further strengthen when restrictions associated with COVID-19 are permanently removed, providing further support to the reversionary rental strategy which has historically served investors and other key stakeholders in our business well.

Key Performance Indicators

PSD has chosen a number of Key Performance Indicators (KPIs), which the Board believes will help investors understand the performance of PSD and the underlying property Portfolio.

· The value of the Portfolio grew by 2.5 per cent on a like-for-like for basis for the first half of the year (H1 2020: 2.6 per cent). This increase was driven a like-for-like average rent per let sqm of 4.6 per cent (H1 2020: 4.1 per cent).

· The EPRA vacancy of the Portfolio stood at 1.3 per cent (31 December 2020: 2.0 per cent).

· The Group continued with its targeted condominium programme, notarising sales of €4.3 million in the half year to 30 June 2021 (H1 2020: €3.0 million).

· EPRA NTA per share increased by 2.7 per cent to €5.42 as at 30 June 2021 (31 December 2020: €5.28).

· The declared dividend for the half year 2021 was €2.35 cents (£2.02 pence) per share.

Statement of Director's Responsibilities

The important events that have occurred during the period under review, the key factors influencing the condensed consolidated financial statements and the principal factors that could impact the remaining six months of the financial year are set out in the Chairman's statement and the Property Advisor Report.

With the exception of the continuing uncertainty around coronavirus (Covid-19) and the upcoming German elections as set out in the outlook section of the Property Advisor's Report, the Directors consider that the principal risks and uncertainties facing PSD are substantially unchanged since the date of the annual report for the year ended 31 December 2020 and continue to be as set out in that report.

Risks faced by the Group include, but are not limited to:

- Legal risk

- Tenant / Letting and Political risk

- Market risk

- Financial risk

- Outsourcing risk

- IT and Cyber Security risk

- Lack of Investment Opportunity