Creating environments, building trust Globalworth Annual Report and Financial Statements 2024 01 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report In a transformative year, Globalworth, a real estate pioneer in CEE, led Poland and Romania’s markets through resilience and innovation, heralding a future shaped by strategic foresight and unmatched ambition. Our mission is to acquire, develop, and manage primarily office real estate assets, striving to become the preferred landlord for leading national and multinational corporations across the region. Our reporting We are of the view that diligent performance monitoring and reporting enable us to support and effectively manage our achievements. In line with this ongoing endeavour, we released Globalworth’s “2023 Sustainable Development Report” in July 2024. Visit our website Read our Sustainability Report 2023 Visit our X page Visit our YouTube channel Inside this report Welcome to our Annual Report 2024 Strategic Report Our Purpose 02 Our Approach 04 Highlights of the Year 05 At a Glance 06 Investment Case 07 Sustainable Solutions 09 Local Landlord Approach 10 Our Supply Chain 11 CEO Statement 12 Our Markets 15 Our Business Model 18 Our Strategy 19 Our Stakeholders 20 Key Performance Indicators 22 Operational Review Portfolio Snapshot 25 Romania 27 Poland 29 Portfolio Development and Evolution 32 Asset Management Review 36 Standing Portfolio Review 40 Capital Markets Review 43 Financial Review 46 EPRA Select Key Performance Measures Snapshot 56 Sustainable Development Review 57 Environmental Review 59 Social Review 62 Governance Review 64 Principal Risks & Uncertainties 65 How to navigate this report This report includes interactive elements that allow you to go to specific pages and open weblinks. Go to Contents page Find section within the document Go to previous page Go to next page Read more in the report Visit online resource Governance Introduction to Governance 73 Corporate Governance Report 74 The Board of Directors 77 Directors’ Report 79 Audit and Risk Committee Report 82 Analysis of Audit Work 83 Nomination Committee Report 86 Remuneration Committee Report 87 Investment Committee Report 89 Financial Statements Consolidated Financial Statements 91 Notes to the Consolidated Financial Statements 95 Independent Auditor’s Report 142 Additional Information Schedule of Properties: Romania 145 Schedule of Properties: Poland 147 Standing Portfolio – Breakdown by Location & Type 149 Portfolio – Breakdown by Location & Type 151 EPRA Performance Measures 152 Investing Policy 155 Glossary 156 Company Directory 159 02 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report At Globalworth, our purpose is clear Globalworth Square One team Act with integrity Respect, diversity and inclusion Build an environmentally friendly & sustainable future Client-centric focus Our values Our mission is to create value for our stakeholders, tenants, and the local communities by acting consistently in an ethical and socially responsible manner. Fostering an environment that attracts and retains individuals is a principal objective of ours, realised by developing a portfolio that is vibrant, contemporary, and more environmentally friendly. 03 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Strategic Report Our Approach 04 Highlights of the Year 05 At a Glance 06 Investment Case 07 Sustainable Solutions 09 Local Landlord Approach 10 Our Supply Chain 11 CEO Statement 12 Our Markets 15 Our Business Model 18 Our Strategy 19 Our Stakeholders 20 Key Performance Indicators 22 Globalworth Campus Green Court Company House I Our strategy is driven by the commitment to provide enduring value for our stakeholders, aligning with the evolving dynamics of the real estate market. 04 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Underpinned by our values Integral to our culture is adhering to the highest standards of ethical business practices and living by our values, which are: One team Act with integrity Respect, diversity and inclusion Build an environmentally friendly & sustainable future Client-centric focus Delivered with our business model We employ our relationships and proven investment model to deliver sustainable long-term value. Read more about our business model on page 18 Guided by our strategy We utilise our six-pillar strategy to deliver attractive, sustainable long-term value to our shareholders and other stakeholders. Strengthen our position in our core markets Invest in sustainable environments & communities Effectively manage our real estate Maintain an efficient and flexible capital structure Preserve and/or protect our operational efficiency Have a defensive and growing operating financial performance Read more about our strategy on page 19 Creating value for our stakeholders In a world in which businesses are interrelated, engaging with our shareholders and other stakeholders to understand their interests, priorities, and expectations is key for shaping our strategy for the future and the success of our business. Who do we deliver for? Employees Tenants Partners/suppliers/contractors Shareholders/bondholders Local communities State and local authorities Read more about our stakeholders on pages 20–21 Our Approach We are a leading real estate company in the CEE region Our purpose Our values D e p lo y c a p it a l S e l l B u y M a n a g e De v el o p C a p it a l r e t u r n s Proven investment model Our core activities 05 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Our Performance Highlights of the year Operational Highlights • The total combined portfolio value stood at €2.6 billion, 13.2% lower compared to the end of previous year, mainly impacted by the disposal of non-core assets. – Like-for-like appraised value of standing commercial properties slightly decreased to €2.4 billion, down 1.6% from 31 December 2023. • We have successfully divested our interests in non-core assets with the aim of deleveraging and liquidity enhancement: – During the first quarter, we have sold Bliski Centrum in Warsaw, a 4.9k sqm office property, which we deemed a non-core asset due to its smaller size; – In May, we have sold our fully owned Romanian logistics portfolio comprising facilities located in Timisoara, Arad, Oradea and Pitesti as well as a majority stake in two small business units’ projects in Bucharest; – Furthermore, in July, we have disposed of our 50% share in logistic assets in Romania which were owned via joint venture companies. • Standing portfolio footprint registered a net reduction of 372.0k sqm, bringing our standing- portfolio footprint down to 1.0 million sqm across 56 properties. • During 2024 162.9k sqm of commercial space were leased or extended, with an average WALL of 5.4 years, despite continued challenging market conditions. Portfolio open market value €2.6bn (13.2)% in 31 Dec. 2023 IFRS Earnings before tax €(84.6)m €(61.5)m in 2023 IFRS Earnings per share (31) cents (22) cents in 2023 Shareholders’ equity €1.5bn (5.1)% on 31 Dec. 2023 Adjusted normalised EBITDA €126.2m (3.9)% on 2023 EPRA Earnings per share 21 cents (16.0)% on 2023 EPRA NRV per share €5.89 (15.1)% on 31 Dec. 2023 NOI €143.7m (2.2)% on 2023 Revenues €238m (0.9)% on 2023 Successful completion of our bond exchange exercise Globalworth is pleased to share the successful refinancing of its €550 million 2025 Notes, of which €450 million were outstanding, and €400 million 2026 Notes, of which €400 million were outstanding, with 6.25% Notes for an amount of €307.10 million and 6.25% Notes for an amount of €333.35 million. The New Notes were issued as Green Bonds and are intended to be used to finance or refinance Eligible Green Projects pursuant to the Company’s Green Financing Framework. The refinancing will result in significant benefits for Globalworth including an improved debt maturity profile, by introducing maturities in 2029 and 2030 for the New Notes, respectively, and cancellation in full of the Existing Notes, which in turn will provide significant flexibility to execute our strategy, and affirmation of the Company’s credit rating at BB+ and BBB− by S&P and Fitch respectively following announcement of the refinancing. We are pleased to announce that we have successfully completed our refinancing, showcasing strong support for the Company from both the 2025 Notes and 2026 Notes holders, who participated at levels above 84% and 86%, respectively, in the Exchange Offer. • The average occupancy of our combined standing portfolio was 86.7% as of 31 December 2024, down 1.5% from 2023 year-end, mainly driven by the sale of non-core assets having average occupancy higher than portfolio average. – Like-for-like occupancy slightly increased with 0.8%, thanks to positive evolutions for the assets that we own in Bucharest and Warsaw • Annualised contracted rents decreased by 6.8% to €187.5 million, driven by asset disposals – Like-for-like annualised commercial contracted rents in our portfolio increased by 4.5% to €177.6 million, mainly as effect of rent indexation – 99.3% of the rent comes from office and mixed- use properties – 96.9% of contracted rent is active, with the remainder to commence in the future • Sustainability: – 51 green-certified properties with a total value of €2.4 billion in our portfolio – We have certified or recertified 36 properties during the year with BREEAM Excellent, LEED Gold or higher certifications – Issued the Group’s sixth sustainable development report – Maintained our “low-risk” rating by Sustainalytics and “A” rating by MSCI Throughout 2024, Globalworth has successfully achieved key milestones aimed at financial and portfolio optimisation. Our performance remained robust as we have continued to focus on core- business resilience by implementing our “local landlord” approach. 06 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report We own 56 standing buildings in prime locations in eight of the largest and most liquid sub-markets in Poland and Romania. Our portfolio primarily comprises 28 Class “A” office investments. It also includes a number of landmark and strategic investments mainly in mixed-use (office/commercial) as well as some logistics and light-industrial properties. Poland Read more on pages 29–31 Romania Read more on pages 27–28 Our responsible approach People Our team of 274 professionals aims to create value for our shareholders, our tenants and the local communities by acting consistently in an ethical, socially responsible manner. Places Creating an environment in which people want to work and be associated with is a key objective for us, and the way to achieve it is by building a modern, greener, environmentally-friendly portfolio. Technology We firmly believe that technology can positively impact real estate, and, as such, we invest directly or indirectly in selected opportunities and initiatives, to improve the quality and impact of our services and properties. At a Glance Creating environments where businesses can flourish Gara Herastrau Podium Park Our portfolio Combined portfolio value (GAV) €2.6bn €3.0bn (2023) Standing commercial occupancy 86.7% 88.3% (2023) Standing GLA 1,014.0k sqm 1,386.0k sqm (2023) Standing properties 56 71 (2023) Contracted rent €187.5m €201.2m (2023) GLA under development/ refurbishment 48.3k sqm 94.2k sqm (2023) How we create value Prime locations We invest in prime locations in fast-growing regions in Poland and Romania. Globalworth is present in nine cities in these countries. Class A offices We primarily focus on Class A offices (87%) and other selected investments in mixed-use and industrial spaces. High-quality Our assets are modern, high-quality properties. Currently, 100% of our assets have or are undergoing environmental certification. Established tenants Our tenant base principally comprises (+98%) well- recognised national and multinational corporates in their respective markets. Revenue streams Revenue streams are backed by long-term, Euro-denominated, triple net, inflation-linked leases. 07 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Investment Case Six reasons to invest 5 Track record of capital discipline and access to both public and private capital markets We take a conservative and sustainable approach to financing with diversified sources of capital and debt. Share capital €1.8bn Read more on page 43 6 Multiple growth drivers to our business We continuously explore our markets for value-added investment opportunities in Poland and Romania. We proactively seek asset management initiatives for our portfolio and operations, targeting enhanced revenue streams and improved efficiency. Investment in renovation and upgrades €46.0m Read more on page 19 1 Focus on the largest real estate markets in the CEE Poland and Romania, our two markets of focus, offer compelling macroeconomic and real estate fundamentals with broad opportunities for value creation. Open market value €2.6bn Read more on page 15 3 High-quality real estate portfolio We own a sizeable and modern real estate portfolio in eight of the largest and most liquid sub- markets in Poland and Romania which primarily comprises Class A offices. GLA (sqm) 1,014.0k Read more on page 25 2 Strong management platform with local presence We are a multi-skilled platform, with substantial on-the- ground operations in our focus markets, with a team of 274 experienced professionals combining local insight with an international approach. Internally managed spaces (sqm) 955.6k Read more on page 62 4 Strong cash flows with further upside Our portfolio is predominantly leased to a diverse and international tenant base on triple- net, long-dated, annually indexed, Euro-denominated leases, with further cash flow creation potential from future take-up. Our assets and liabilities are principally Euro- denominated, minimising local currency exposure. Consolidated revenues €238.3m Read more on page 46 08 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Our local landlord approach to managing our real estate platform offers sustainable real estate solutions to our business partners and is supported by strong local teams of professionals. Investment Case continued Sustainable solutions 93.7% of our standing commercial portfolio is environmentally certified, with several of our properties holding additional ESG-related certifications. Read more on page 9 Green Horizon Local landlord approach Our team of 274 experienced professionals on-the- ground combines local insight with an international approach, offering premium services to our partners, efficiently managing our portfolio, and creating value for our stakeholders. Read more on page 10 Green Court Our supply chain Our business partners include a diverse range of suppliers, service providers and lenders, who range from small businesses to multinational companies. Effectively and responsibly managing our business partners is key to the success of our operations. Read more on page 11 Retro Office House Sustainable solutions Local landlord approach Our supply chain 09 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report We remain committed to investing in energy- efficient properties, with 51 green-certified properties valued at €2.4 billion. Our data Green certified standing properties (by value) BREEAM Very Good 2.0% BREEAM Excellent 54.7% BREEAM Outstanding 13.2% LEED Platinum 27.6% LEED Gold 2.5% Percentage of our green properties that are accredited 93.7% (GAV from standing commercial) Click here to learn more about our certified properties Our initiatives Renewable resources 100% of the energy used in our portfolio is from renewable sources. Health & safety Maintaining a healthy and safe environment for our people and for those who work at or visit our properties, as well as the wider communities to which we belong. Wellness & accessibility All our office buildings in Romania are WELL Health-Safety certified and “access4you” certified. Technology We invest directly or indirectly in selected opportunities and initiatives, including technology- related venture capital funds. Our accreditations BREEAM-accredited properties account for 69.9% of our green-certified standing portfolio by value, with the remaining properties being holders of other certifications (LEED Gold or Platinum and Edge). Read more about our sustainable places on pages 57–58 Investment Case: Sustainable Solutions Sustainable solutions Local landlord approach Our supply chain Tree planting in Vacaresti National Park 10 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report We are a team of 274 professionals. Predominantly based in Poland and Romania, we respond with agility and use our robust knowledge of our markets to deliver value for all our stakeholders. In-house capabilities We are structured to advance the experience of our team members and our in-house capabilities in areas including investment, leasing, project management, asset and property management. We internally manage: 955.6k sqm of high-quality standing GLA €2.3 billion total value We manage all of our properties in Poland internally, and in Romania, we manage all but one of our office properties in-house. Local knowledge Most of our team of 274 professionals are based in our two main offices in Warsaw and Bucharest. Team members are also located in regional cities in Poland, Cyprus and the UK. Poland team members 169 Romania team members 99 A team of dedicated professionals Our most important asset is our team of dedicated professionals, who have been selected by employing the best available candidates for every position, regardless of gender, ethnic group or background. Read more about our people on page 57–58 Warsaw Bucharest Investment Case: Local Landlord Approach Read more about our sustainable places on pages 57–58 Sustainable solutions Local landlord approach Our supply chain 11 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Effectively and responsibly managing our Value Stream is key to the success of our operations. Investment Case: Our Supply Chain Read more about our partnerships places on pages 20–21 Our relationships We believe that our ability to perform most of our core activities internally is one of our competitive advantages. However, to be able to execute our “local” landlord approach to our operations and portfolio, and our “international” approach to the Group’s affairs, we need to manage a supply chain consisting of a diverse range of suppliers, service providers and business partners, who range from small businesses to multinational companies. We consider the risk profile of our supply chain to be low, as when we are selecting our suppliers, service providers and business partners, we perform: • a multi-criteria operational evaluation which includes criteria such as know-how, credentials, pricing, and past performance with the Group (where applicable); • individual checks to ensure that we share the same ethical values and to confirm that no new relationship exposes Globalworth to compliance risks. Suppliers (by value of services) International 13% National 87% How we engage We mandate that our partners adhere to relevant sections of our Code of Conduct, now incorporated into our new agreements. Additionally, we encourage our team members to escalate any instances where suppliers may violate legal standards or our Code of Conduct to their superiors or compliance officers. Regular assessments of our supplier database ensure compliance, with direct communication initiated for any discrepancies before further internal action. Collaborating with approximately 1,800 third-party suppliers, service providers, and business partners, we highlight around 40 key partners in Poland and Romania as “significant” due to their potential impact on our operational effectiveness and the overall success of our property and asset management efforts. c.1.8k Third-party suppliers, service providers and business partners c.40 “Significant” partners in Poland and Romania Sustainable solutions Local landlord approach Our supply chain 12 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Our unwavering focus on cutting-edge building technologies, towards enhancing human connections, creativity and experiences, combined with a genuine care for community wellbeing continued to make us a proud ally for the successful development and prosperity of all our partners. Throughout the year, Globalworth has maintained a robust performance while implementing key initiatives aimed at liquidity enhancing and financial management. Our predominantly office portfolio continued to be proactively managed by applying our “local landlord” strategy with a keen eye towards sustainability. Shaping Our Business Amid a Gradual Market Recovery In the preceding year, we have seen fading away the memory of a pandemic while its legacy has, by now, been embedded into our lives. Trends like flexible work, digital transformation, supply chain resilience and sustainability are now common sense in most industries. Geopolitical tensions that sparked two years after the pandemic have brought us inflation, high interest rates and an overall uncertainty which translated into tightening credit conditions, but now even those tensions have somehow cooled off. Albeit trade frictions and geopolitical tensions will continue to weigh on the world’s economy, we have noticed, during the last 12 months, positive macroeconomic policy changes, with inflation returning closer to long-term targets and central banks reversing some of the interest rate hikes effected in 2022 and 2023. The European Union economy is set for a modest recovery in the year ahead, with manufacturing and services still relatively weak in the face of strong competition and high energy prices. Nevertheless, the economies of Poland and Romania are, once again, poised to outperform the European average. During these challenging times, Globalworth’s performance remained resilient, with our “hands-on” approach now focusing on both our core business and financial discipline. This was the result of carefully considered initiatives, including: • The successful disposal of non-core assets which streamlined our portfolio while safeguarding our liquidity • Promoting our deleveraging strategy while proactively addressing our debt maturities resulting in an improved debt maturity profile • Ongoing investments and enhancement programmes aiming at value preservation for our standing portfolio • Maintaining a versatile capital structure, adaptable to evolving market conditions We are convinced that through our actions throughout 2024 we have improved our business position in front of future challenges and opportunities, while remaining the leading office landlord and a recognisable brand in our home markets of Poland and Romania. I would therefore like to extend my deepest appreciation to all our team members for their unwavering commitment, enthusiasm, and dedication, without whom our transformation would not have been possible. Furthermore, I wish to express our sincere gratitude to our shareholders, partners, and communities for their steadfast support and enduring confidence in the resilience of our business and its inherent potential. CEO Statement Focused on core business resilience among signs of a recovering market Dennis Selinas Chief Executive Officer Throughout the year, Globalworth has maintained a robust performance while implementing key initiatives aimed at liquidity enhancing and financial management. Evolving Property Portfolio Our portfolio is almost exclusively composed of Class “A” office spaces. Throughout the year, we have focused our endeavours on upgrading or keeping our standing office portfolio at best- in-class status, whilst also continuing with the redevelopment of two out of three mixed-use assets in Poland. By the end of the summer, following a comprehensive assessment undertaken at the beginning of the year, we successfully divested our interest in non-core industrial assets in Romania to two of Europe’s most reputed logistics operators. These transactions signify more than a mere financial achievement – they are a testament to our team’s expertise, strategic foresight, and commitment to excellence in logistics real estate. Also, in the first months of the year, we have sold Bliski Centrum, an office building located in Warsaw, with a total GLA of 4.9k sqm, which, due to its relatively small size was not considered a core asset by the Group. These transactions signify more than a mere financial achievement – they are a testament to our team’s expertise, strategic foresight, and commitment to excellence in logistics real estate. Dear Stakeholders, For Globalworth, 2024 has been a transformative year. We have successfully accomplished important milestones in strengthening our business and improving our financial profile while remaining dedicated to our mission of providing best-in- class spaces and services for our partners to grow. 13 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report CEO Statement continued Evolving Property Portfolio As of 31 December 2024, Globalworth’s combined portfolio of standing properties amounted to 1.0 million sqm of GLA, with the forthcoming completion of refurbishment works at Renoma (Wroclaw, Poland) anticipated to contribute an additional 48,300 sqm of high-quality GLA. Globalworth’s investment initiatives have also included enhancements to existing properties, aiming to preserve and augment their value, generate sustainable long-term income, and provide top-quality real estate spaces for our business partners. Globalworth’s standing portfolio has an aggregate asset value of €2.6 billion as at the end of December 2024, having contracted by 13.2% compared to the end of 2023, following the disposal of non-core assets during the year. Resilient Leasing Activity and Occupancy Our sustained and prospective achievements depend on our ability to lease spaces within our portfolio. In 2024, amid continuing challenging market conditions, we successfully negotiated the take-up or extension of 162,900 sqm of commercial space, with an average Weighted Average Lease Length (WALL) of 5.4 years. Letting activities were nearly evenly divided between renewals (accounting for 51.3% by GLA) and new contracts, including expansions by existing tenants (48.7% by GLA). Notably, about 65% of our renewals were related to leases maturing in 2025 or later, pointing to our ability to address, in advance, lease maturities across our portfolio. As of 31 December 2024, the occupancy rate of our combined commercial portfolio was at 86.7%, marking a 1.5% decrease compared to 2023. However, this decrease was mostly due to the sale of non-core assets having an average occupancy of 93.1% as of the beginning of the year, better than the portfolio average at that moment. It is worth highlighting that the like-for-like standing occupancy of our combined commercial portfolio was at 87.1%, a 0.8% increase compared to 31 December 2023. Headline market rental rates across our portfolio started displaying an upward pressure over the year, predominantly due to indexation, which is linked to inflation, the stagnating supply of new office spaces, but also reinforced by the prime quality of our properties, our proactive asset management initiatives, and our dedication to sustainable development. Total annualised contracted rent for our combined portfolio decreased by 6.8% to €187.5 million, relative to year-end 2023, impacted by the contracted rent in sold standing assets of €21.7m. Like-for- like annualised commercial contracted rents in our combined standing commercial portfolio climbed by 4.5% to €177.6 million (€169.9m as of 31 December 2023) mainly as an effect of rent indexation. It is important to acknowledge that most of our tenants are large multinational or national enterprises, and the Group’s rental income is well-diversified, with no excessive reliance on any particular group or industry sector. In both the Polish and Romanian markets, a general slowdown in office supply contrasts with a sustained demand for such spaces, alongside other contributing factors, including increasing office attendance, improving investor sentiment, and the gradual easing of credit conditions. These developments have the potential to drive genuine rental growth in the coming period. The divergence between A-grade properties with strong Environmental, Social, and Governance (ESG) credentials and B-grade properties shall continue to be a key theme from both investment and leasing perspectives, with such trends benefiting our portfolio of high-quality properties. As vacancy rates seem to have stabilised across Europe it is necessary to recognise that various geographies pose different challenges as the competition for securing reputed, blue-chip tenants remains strong, especially in Poland’s regional cities. This competitive landscape is likely to further influence the level of effective rents achievable within the market and within our portfolio. Our Financial Results Our rental income increased in standing properties and in properties under refurbishment, on a like-for-like basis, with €1.5 million compared to last year as an effect of indexation that partially offset by the reduced rates at which existing leases were renewed for extended period or new leases were signed. Also, net service charge result is €3.6 million lower than in prior period of last year, compensated by increase in other income by €0.7 million thus Net Operating Income is €137.6 million, €5.1 million higher when compared to 2023. The positive results on standing properties are triggered by increased occupancies, especially in our properties in Romania. However, overall portfolio consolidated rental income decreased to €152.8 million, €7.6 million lower than 2023 due to sale of industrial portfolio in July 2024. Consolidated net operating income reaching 143.7 million or €3.3 million lower than 2023. Our adjusted normalised EBITDA reached €126.2 million, after deducting recurring administrative and other expenditure categories. On a like-for-like basis the adjusted normalised EBITDA is a healthy €120.0 million, €2.2 million higher than in 2023. Undesirably, our net result for 2024 amounted to a net loss of €81.6 million. This result is triggered primarily by fair value loss recorded on investment property, loss on sale of assets and share of loss on joint ventures investments. Dividend During March 2024, we announced the second interim dividend of €0.11 per share in respect of the twelve-month financial period ended 31 December 2023 with a scrip dividend alternative at a reference price of €1.96 per scrip aimed at preserving liquidity. Approximately 98.7% of the shareholders elected to receive scrip dividend shares thus resulting in only €0.4 million cash dividend outflow. Also, in August 2024, we announced the payment of an interim dividend in respect of the six-month ended 30 June 2024 of €0.10 per ordinary share and offers a scrip dividend alternative to the Interim Dividend. Approximately 98.2% of the shareholders elected to receive scrip dividend shares thus resulting in only €0.4 million cash dividend outflow. Our awards EPRA, European Public Real Estate Association, awarded Globalworth, two prizes: EPRA SBPR Gold Award EPRA SBPR Gold Award Other awards Leaders to Watch Awards Gala Dennis Sellinas, CEO EuroBuild Awards Outstanding Non-Business Achievement of the Year in Poland Forbes Best Office Buildings The biggest owner of office buildings in Romania Superbrands 2024 Poland’s Choice CIJ Awards Best Property Leadership of the Year for Romaria 14 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report CEO Statement continued Balance Sheet We are also executing our liability management strategy by extending near-term facilities and progressively arranging new secured facilities with local and regional banks in our markets. Our strong presence in the two capital cities, Bucharest and Warsaw, with commercial buildings having an average occupancy above 95% and high ESG credentials, provides us with a unique strength in sourcing additional secured facilities in the short term. For 2024 we had several notable events in terms of financing, that lead to a decrease in total debt, as: • We exchanged our existing €850 million Notes with New €640 million Notes through an exchange exercise, we repaid €142.9 million from 18/25 Notes and €66.6 million from 20/26 Notes. • Subsequently to the exchange, we redeemed additional €65 million unsecured debt (24/29 New Notes €45 million and 24/30 New Notes €20 million) and we bought back additional €83.2 million unsecured debt (24/29 New Notes €38.2 million and 24/30 New Notes €45 million). • Derecognized €97.5 million secured loans consequently to the disposal of subsidiaries holding industrial properties Following above corporate actions, the average debt maturity period improved to 4.9 years (3.7 years as of 31 December 2023) This brought down our leverage ratio to 38.1% (42.2% as of 31 December 2023) despite a 1% decline in the value of our like-for-like standing commercial portfolio. This is consistent with the Group’s strategy to manage its long-term target LTV of around or below 40%. It is important to note that Globalworth has no material debt maturing until 2027, the extension of Helaba €100 million loan is under negotiation. Additionally, as of 31 December 2024, we have €334 million in cash and cash equivalents. We also have a further €115 million in undrawn debt facilities, out of which €50 million is available until December, 2025. The EPRA Net Reinstatement Value (NRV) as of 31 December 2024 was €1.64 billion, or €5.89 per share. This represents an 15.3% decrease from €6.94 per share on December 31, 2023. The decrease was primarily due to the issuance of a €26.5 million scrip dividend shares during 2024, which diluted the NRV per share as well as a valuation loss on the property portfolio in 2024. This was partially mitigated by rental growth from indexation. Fitch Ratings re-affirmed, in July 2024, Globalworth’s investment grade rating and improved the outlook to stable following the annual review of our ratings. S&P Global Ratings changed Globalworth’s rating to BB stable following their recent annual review in March 2025. Sustainable Development Our strategy for sustainable development revolves around the fundamental tenets of “People, Places and Technology”. We are committed to delivering environmentally sound, safe buildings that cater to our occupiers’ requirements while ensuring that we continue to make positive contributions to the communities we serve. With this in mind, we have accepted the challenge of proactively managing the consumption and associated carbon emissions produced during the construction and operation of our properties. Our goal is to further minimise our carbon footprint across the entire value chain, from areas directly within our control to those managed by our tenants. Our environmental target is to reduce GHG emissions intensity by 46% by 2030 compared to our 2019 baseline levels (for Scope 1 and 2) and to commit to measuring and reducing Scope 3 emissions. As evidenced in our annual Sustainable Development Reports we are taking several measures to ensure the fulfilment of such targets. With this in mind, we have accepted the challenge of proactively managing the consumption and associated carbon emissions produced during the construction and operation of our properties. Our goal is to further minimise our carbon footprint across the entire value chain, from areas directly within our control to those managed by our tenants. We also certified or recertified 36 of our properties during the year, with our green portfolio comprising 51 environmentally friendly properties valued at €2.4 billion. I am delighted that 93.7% of our standing commercial portfolio has been awarded high-level green certifications. Moreover, all our standing office properties in Romania have been recertified with the WELL Health-Safety Rating during the year, with several other properties receiving additional certifications. However, sustainable development is not merely restricted to green buildings. Our comprehensive approach to ESG was further acknowledged by Sustainalytics where we maintained our “Low Risk” rating and by MSCI, where we maintained our “A” rating. Furthermore, we maintained our commitment to community support, endorsing more than 29 initiatives in Romania and Poland. Outlook As we enter 2025, we are witnessing the first signs of improved investor sentiment towards the office sector. While macroeconomic evolutions are converging towards long-term targets, we expect an improved access to capital markets for all the segments of the real estate market. With vacancy rates stabilising, even improving in capital cities, and considering a subdued office development activity for the foreseeable future, real rental growth seems to be the logical consequence at least for class A, prime office properties. It is not yet clear what will drive interest towards office back to pre-pandemic levels, whether it will be the overall occupational resilience of the sector or the increased business confidence in a period of more stable inflation and sustainable growth, maybe even the hopes of finding a solution to the geopolitical tensions of the last few years. Overall, both our markets of focus are poised to adapt to changing work cultures and tenant expectations, with a notable emphasis on sustainability and modern amenities. We have been witnessing the performance gap between A-grade and B-grade properties increasing and we are cautiously optimistic for the year ahead. In this evolving environment, Globalworth will continue to keep its ESG commitments, while following the principles of resilient financial and operational policies and a capital strategy that will drive us towards realising our full potential and capitalising on future opportunities. Dennis Selinas CEO 24 March 2025 15 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Global GDP is projected by IMF to expand further in 2025 by 3.3%, below the historical average of 3.7%, while headline inflation is estimated to continue to decline, converging back to long-term targets of central banks. Such evolutions are expected to positively impact real estate capital flows in the next year. CEE real estate market displayed a consistent recovery during 2024 in terms of investment volumes after a slower 2023, with Romania and Poland, our two markets of interest, leading the pack in terms of y-o-y increase. Select Macroeconomic Figures • IMF estimates global GDP growth of 3.3% in both 2025 and 2026. • Poland and Romania growth forecasts for 2025 are estimated at 3.6% and 2.5% respectively, which is above the EU average of 1.5%, as estimated by the European Commission. • Inflation rates in EU, Poland and Romania are projected to stabilize in 2025 to 2.4%, 4.7% and 3.9%. – Annual inflation rate for 2024 stood at 2.7%, 3.9% and 5.5% for the EU, Poland and Romania respectively. Select Real Estate Findings/Office • Occupational resilience and investment recovery are the two key evolutions during last year which started to positively affect investor sentiment towards the office sector. • Demand for office space was stable with total take-up in 2024 of c. 1,800k sqm in Poland and Bucharest, Romania. • Office supply: – The generalised slowdown in office supply continued to affect CEE countries with occupancy rates starting to improve or at least stabilise in capital cities where Globalworth is present, while prime headline rents began to increase due to the effect of both constrained supply and rent indexations. – Poland’s office supply has shrunk to historic lows during the last few years with only a modest recovery during 2024 in Warsaw where c. 104k sqm of new spaces were delivered, the second lowest annual supply after the 2023 record low. – Supply in Polish regional cities is also facing significant headwinds as high vacancies have kept the overall development pipeline to low levels. – Limited supply of new offices in Bucharest is expected to continue as no major projects are due for delivery in 2025. • Rental levels have started to increase in prime located, high-quality and environmentally friendly properties, because of inflation pressure coming from previous years, growing ESG awareness by tenants and the limited supply affecting the overall market. • Vacancy in Bucharest and Warsaw at year-end 2024 of 12.1% and 10.6%, respectively. – Average vacancy in regional cities in Poland stabilising just below 18.0% (17.5% in 2023). • Amidst stabilising vacancies and with a muted development pipeline, much of the past years’ negative sentiment towards offices seems now overplayed. With capital markets recovering after a period of tight credit environment and with resilient office demand, we are confident that real rental growth for prime assets is poised to return in the near to medium term. Our Markets 2024 market review After the stagnation that followed the pandemic shock and the geopolitical shifts which happened in the beginning of this decade, the European Union economy has resumed a modest growth during 2024 following a relaxation of macroeconomic policy mix. Trade frictions and geopolitical tensions will continue to weigh down on Europe’s growth prospects, however, CEE countries are expected to witness a more robust recovery in the year ahead compared to the rest of European Union. Polish and Romanian office markets have reached a more mature level amid work culture changes and will continue to adapt and evolve to meet the demands of both businesses and people, which are our most important drivers of progress. At Globalworth, since our inception more than 10 years ago, we have been focusing on creating sustainable value and delivering positive risk-adjusted returns over the long term. As economic cycles come and go, we have been adapting our key objectives in the past year towards value preservation, financial discipline and proactive capital strategies which allows us to remain prepared for the emerging challenges and opportunities that may arise. We are achieving our goals by being a “local” and hands-on landlord who is quick to identify and respond to market trends, while at the same time being at the forefront of responding to our partners’ needs, identifying mutually advantageous solutions that lead to effective management of our business while preserving and enhancing the interests of our shareholders and other stakeholders. Office markets in which we are operating will continue to provide businesses with the necessary infrastructure to operate and offer people exciting opportunities to grow professionally and personally. Globalworth remains committed to provide state-of- the-art spaces in the most prime locations, following the highest ESG and wellbeing standards, ready to take-on any challenge and turn it into an opportunity from which all our stakeholders can benefit and grow. Lubicz Park 16 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Our Markets continued The Redesigned Workplace In the last few years we have been witnessing a major change in work culture with the transformation and redefining of the office into a space that is more inclusive and more focused on wellbeing and work- life balance. The office role was enriched and became more embedded within the communities it serves, as it became obvious that only by bringing people together valuable teams are built, strong communities are created, and creativity and ideas are cared for and grown. Increasing office attendance is evidence that the office has remained the primary workplace for most businesses. Hybrid work is not going anywhere as most companies have, by now, figured out what hybrid means for them – however, strong requirements for modern spaces with collaborative areas and enhanced amenities are a good indicator of the important role of the office in attracting and retaining talent. Where We Stand The increasing role of the office in defining the identity of a company is now becoming a pillar of success for our tenants. The best spaces are the ones where people want to visit and work. People need to feel welcomed, safe and find that sense of belonging to a professional environment that helps them grow and that recognises their contribution and value. Also, as much as possible, the workplace needs to be well connected to high-quality transportation to minimise the commute’s impact and contribute to a lower carbon footprint. During the year, and in previous years, we continued to selectively invest in our high-quality office and mixed-use portfolio in Poland and Romania, improving the quality of our office spaces and the services offered to tenants. • Our office (and mixed-use) portfolio continued to be almost exclusively managed by the Globalworth team in-house. • We have recertified during 2024 with WELL Health-Safety credentials all our office properties in Romania. • Access4you accreditation for Disabled Persons Certification for offices in Romania. • We have continued implementing intelligent building management systems that optimise energy consumption. • The Globalworth App is available in Poland with plans for it to be implemented in Romania. Renoma 17 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Our Markets continued Environmentally Friendly and Sustainable Solutions Increased sustainability awareness among tenants and developers has led to an increase in certified buildings that meet green standards. In the office sector, minimising the environmental footprint of properties and creating workplaces that positively impact human health and wellbeing have become key areas of focus. Buildings operating following ESG regulations will gradually become the market norm, reflecting a broad commitment to sustainable development from developers, owners, investors, lenders, and tenants. As a result, the gap between A-grade properties with strong ESG credentials and B-grade properties has been widening both from an investment and a leasing perspective. The obligation of additional non-financial reporting by tenants is influencing landlords’ decisions to modernise office buildings in terms of, among others, access to renewable energy, charging spaces for electric cars, the quality of air injected into offices, increasing green zones in the building or renovating common areas. Our Approach Sustainability has become a real differentiator between the best space and the rest. When certifying our properties, we principally target BREEAM Very Good, LEED Gold or higher green certifications or the potential to achieve this. At year-end 2024, we had 51 environmentally certified properties in our portfolio with an appraised value of €2.4 billion. 94.3% of our office (and mixed-use) standing portfolio by GAV was green certified 93.7% of standing commercial portfolio by GAV was green certified As part of our ambitious ESG strategy, we are committed to contributing to the global efforts to limit global temperature rise by reducing our direct and indirect greenhouse emissions in our operations and value chain. As such, in 2022, we have performed a detailed review of how we can improve our footprint and set our environmental target to reduce GHG emissions intensity by 46% by 2030 versus our baseline 2019 levels (for Scope 1 and 2) and commit to measuring and reducing Scope 3. In setting this target, we have used a science-based approach to align with a 1.5ºC trajectory. These targets were approved and validated by the globally recognised Science Based Targets initiative (SBTi), and will form key stepping blocks to enable Globalworth to deliver on its long-term strategy and ambition to become the first choice in sustainable real estate. Supersam 18 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Our core activities Our Business Model Driven by our purpose D e p lo y c a p it a l S e l l B u y M a n a g e De v el o p C a p it a l r e t u r n s Our resources & relationships Skilled team In-house team of professionals with strong functional and local knowledge of their markets. Financial strength Conservative financing policy, with simple debt structure and Euro- denominated assets, liabilities and revenues, and a supportive shareholder base. Scale and reputation Trusted brand and scale creating new opportunities and business efficiencies. Valued relationships Longstanding partnerships with leading real estate industry specialists and credible financial institutions. Proven investment model Locations Prime locations in fast- growing regions of Poland and Romania 9 Cities Sector Primarily Class A office, with mixed- use and industrial a secondary focus 87% Office % of GAV Properties Modern high-quality standing properties with environmental certification, or with potential to gain it 100% of standing GAV with or under certification Tenants Diversified base of large or established national and multinational corporations 73% of contracted rent from multinational tenants Lease terms Revenue streams backed by long-term, Euro- denominated, triple net, inflation-linked leases 85% contracted GLA secured with triple net contracts Creating sustainable long-term value Financial Generate long-term sustainable and attractive, risk-adjusted returns through yield and capital appreciation, allowing us to create the capacity to distribute dividends for our shareholders. • Rental growth • Portfolio value appreciation • EPRA NRV growth • Sustainable and recurring dividend Non-financial Create a Group and an environment in which people want to work, do business, and be associated with. • Invest in sustainable and environmentally friendly buildings which help businesses grow • Create safe and healthy spaces where people want to work and be associated with • Assist and improve the communities we are part of by creating opportunities and making a positive contribution Invest in real estate opportunities • Acquire standing properties and land • Develop (or refurbish) new properties • Allocate capital to deliver growth and risk- adjusted returns Manage our portfolio • Offer best-in-class asset and property management services • Enhance the attractiveness and performance of our properties and satisfy our partners’ requirements • Create sustainable and efficient properties reflecting what matters to both our occupiers and the people who work in and use our premises Create communities • Create an environment in which people want to work and be associated with • Connect with the local communities • Improve quality of life, interaction and communication, and promote, simplify and advance business 19 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Strategic disposals of non-core assets • In Q1, we sold Bliski Centrum in Warsaw, a 4.9k sqm office property, which we deemed a non-core asset due to its smaller size • In May, we sold our fully owned Romanian logistics portfolio to CTP for net proceeds of €72.4 million (after standard adjustments) • Post-June, we sold our remaining Romanian logistics interests, held through joint ventures, to WDP, for net proceeds of €56.0 million (after standard adjustments) Preserved and/ or protected operational efficiency • Most of our contracted rent from office and mixed-use (99% of annualised contracted rent) and 96.9% in active leases • Continued to internalise property management, with 96.5% of office and mixed-use standing properties by value managed in-house Investment in sustainable environment & communities • €2.4 billion certified properties: 50 green standing certified properties, accounting for 93.7% of our standing commercial portfolio by value • All our standing office properties in Romania have a WELL Health-Safety rating, further demonstrating the quality of our portfolio • Maintained our low-risk rating by Sustainalytics at Low Risk and MSCI rating to “A” Effectively managing our real estate • We signed contracts with 157 tenants for 162.9k sqm of commercial space at an average WALL of 5.4 years • Standing commercial occupancy of 86.7% with capital cities over 95% • Total annualised contracted rent of €187.5m, decreasing due to non-core assets disposal; with like-for-like contracted rent increasing by 4.5% Flexible capital structure • High liquidity of €333.6 million plus €115 million in undrawn debt facilities, with only €100 million material debt maturity in the coming two years • Exchanged €850 million of existing Notes for new five- year and six-year Notes with a combined value of €640 million • Repayment of more than €350 million of our unsecured debt was backed by disposal of non- core assets • In July 2024, Fitch reaffirmed Globalworth’s investment grade rating and upgraded the outlook to stable. Following recent annual review by S&P in March 2025 it changed the rating to BB with stable outlook Resilient operating performance • Adjusted normalised EBITDA of €126.2m, 3.9% lower than in Dec 2023, on a like-for-like basis, excluding divested non- core assets. Adjusted EBITDA improved by €2.8 million (or 2.4% increase) • €99.8 million negative revaluations in our consolidated properties mainly due to CAPEX invested in our portfolio not fully reflected in valuations and challenging macroeconomic and geopolitical environment • Dividend paid to shareholders of €0.21 per share in 2024. Shareholders representing 98.4% of total issued capital have elected scrip dividend alternative Our Strategy Focused on operational excellence & portfolio optimisation 20 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report In a world in which businesses are interrelated, engaging with our shareholders and other stakeholders to understand their interests, priorities, and expectations is key for shaping our strategy for the future and the success of our business. This engagement has gained importance in the last few years in the context of a redesigned workplace that emphasises inclusion, well-being, and work- life balance. For us at Globalworth and the Globalworth Foundation, the safety and wellbeing of our people, partners, communities, and other stakeholders, was and will continue to be our top priority as we shape and implement our strategy and seek to achieve our objectives as a responsible landlord. Our stakeholders and why we engage Employees We believe that our most important asset is our team of dedicated professionals, who have been instrumental in driving the Group’s performance over the years. Our team is responsible for offering premium services to our partners, efficiently managing our high-quality portfolio, facilitating growth and creating value for our shareholders and other stakeholders. Creating a safe, friendly, fair, and productive workplace, in which people are happy to be a part, and have the freedom to evolve personally and professionally, we believe inspires them to give that little bit extra. Maintaining this positive and safe work environment is a key priority for the success of the Group, as well as retaining our reputation as being a desirable and attractive place for people to work. Tenants Tenants are at the heart of our business operations, and we are committed to offering best-in-class services to them. We recognise that key for our tenants is to receive good value for the spaces occupied and the overall services received, to work and be associated with safe and environmentally friendly properties, and to be treated fairly and reasonably. Tenants and potential tenants acknowledge that people increasingly want to spend time in places that have a positive impact on their wellbeing, and so the quality of the overall environment, including the ability to customise the office space and mix of amenities within a development, is increasingly at the front of our minds. Partners/suppliers/contractors Our business partners, suppliers and contractors are important to us, as by establishing and maintaining long-term relationships with them, we can build a sustainable future, maintain our business model and future plans. By sharing the same values and vision with us, they allow us to maximise the impact we have in our business, the communities and the environment in which we are part. They are integral to our supply chain, as our “local” landlord approach to our portfolio in Poland and Romania, and our “international” approach to Group affairs, require a supply chain consisting of a diverse range of partners. We collaborate with over 1.0k third parties, including international or local providers, ranging from large multinational corporates to smaller businesses. Type of communication and engagement S One-on-one dialogue S Meetings D Emails Y Social media S Employee surveys and evaluations O Events A Q One-on-one dialogue A M Meetings A M Emails M Calls D Social media 3 Events A M Q One-on-one dialogue A M Q Meetings M Q Emails D Social media A Q Events Key topics and concerns Improving water management. Safeguarding corporate governance, regulatory compliance and business ethics. Promoting green buildings, improving buildings’ energy efficiency and investing in green certifications. Safeguarding sustainable land use and biodiversity. Promoting green buildings, improving buildings’ energy efficiency and investing in green certifications. Minimising waste and increasing the implementation of circular economy practices. Safeguarding corporate governance, regulatory compliance and business ethics. Safeguarding occupational health, safety and wellbeing. Safeguarding diversity, inclusiveness and protection of human rights at work. Safeguarding health & safety and wellbeing of those who work and visit the properties (tenants, visitors and contractors). Our Stakeholders Engaging with our stakeholders Frequency of communication key A Ad hoc D Daily W Weekly M Monthly Q Quarterly S Semi annually Y Annually O Occasionally 3 3–6 times per year 21 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Our Stakeholders continued Our stakeholders and why we engage Shareholders/bondholders The support and alignment of interest with our shareholders, bondholders and other providers of finance, as well as equity and credit analysts, is key for the success of our business. We engage with them regularly, directly through meetings (face to face and/or via calls), investor conferences etc. and indirectly through our financial reporting cycle, sustainability updates, regulatory and other updates during the year to ensure that they are properly informed of our progress, as we firmly believe that through proper engagement and transparency we can receive the greatest level of support from them. Local communities Our leading position in CEE’s real estate market, with over 1.0m sqm of high-quality space on offer, where more than 250k people work or visit on a daily basis (under normal conditions), makes us view our role as increasingly important to them and the wider community of which we consider ourselves to be an integral part. Through the Globalworth Foundation and the wider Globalworth team, we are committed to making a positive contribution to the communities within which we operate. Our ongoing dialogue with our communities allows us to be able to identify the areas where we can have the highest impact and adapt our strategy accordingly. We seek to have an effect on our communities by maintaining the highest levels of ethical standards and conducting our business in a responsible and sustainable way, committed to our three pillars of “People, Places and Technology”. State and local authorities We are members of a number of key industry initiatives, and through our participation and interaction in such task groups with leading professionals, developers, consultants, engineers and manufacturers, we gain practical insights into innovative solutions for effective property management and access to information on upcoming legislation and the process of EU law transposition as it is implemented or comes into force by region. We believe that through an open and transparent dialogue with the regulatory and industry bodies in the countries in which we operate, we will improve public trust in the real estate sector through raising industry standards, and creating a sustainable environment for visitors, occupiers, landlords, investors and other stakeholders is fundamental to our business. Type of communication and engagement A M One-on-one dialogue/meetings A Calls A Emails O Roadshows O Conferences and industry events A S Corporate publications W Website, social media A Shareholders meetings (AGM/EGM) D One-on-one dialogue, meetings, calls, emails D Online (corporate website, social media) W Press releases, interview pitching, Q&A A Events (corporate, consumer and internal) and sponsorships A Media buying, sponsorships, newsletters A One-on-one dialogue, meetings A Social media Key topics and concerns Promoting green buildings, improving buildings’ energy efficiency and promoting green certifications. Identifying financial and operational risks and opportunities from climate change. Safeguarding corporate governance, regulatory compliance and business ethics. Safeguarding diversity, inclusiveness and protecting human rights at work. Engaging and investing in local communities. Assessing business partners (including suppliers/ contractors) against ESG criteria. Safeguarding occupational health, safety and wellbeing. Safeguarding diversity, inclusiveness and protecting human rights at work. Safeguarding health & safety and wellbeing of those who work and visit the properties (tenants, visitors, contractors). Frequency of communication key A Ad hoc D Daily W Weekly M Monthly Q Quarterly S Semi annually Y Annually O Occasionally 3 3–6 times per year 22 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Key Performance Indicators Five-year portfolio evolution GAV (€m) 2,599.7 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2,599.7 2,994.8 3,158.6 3,152.3 3,032.9 1,014.0 1,386.0 1,405.6 1,302.3 1,271.3 Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Link to strategy Total Standing GLA (000s) 1,014.0 Total Standing Commercial GLA (000s) 1,003.7 Occupancy Commercial Standing (%) 86.7% Green Buildings (GAV €m) 2,386.5 Green Buildings (Number of buildings) 51 GAV concentration (% GAV) Contracted Rent (€m)* 187.5 Key Strengthened Our Position in Core Markets of Operation Effectively Asset and Property Managing our Real Estate Preserved and/or Protected Operational Efficiency Flexible Capital Structure Investment in Sustainable Environment & Communities Resilient Operating Performance Bucharest New CBD Bucharest Other Warsaw Regional Romania Regional Poland 90.1 106.3 95.9 89.0 81.7 97.4 94.9 93.3 94.7 101.7 * Showing Romania and Poland split 1,003.7 1,367.4 1,383.2 1,272.0 1,238.9 86.7% 88.3% 85.6% 88.5% 90.9% 51.0 59.0 53.0 55.0 48.0 2,386.5 2,497.4 2,559.2 2,665.7 2,349.7 187.5 201.2 189.2 183.7 183.4 23 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Rental Income €152.8m 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 Adjusted Normalised EBITDA €126.2m EPRA earnings/share 21 cents Dividends 21 cents 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 152.8 160.4 149.8 150.3 160.5 21 25 32 27 37 126.2 131.4 126.0 130.2 141.6 21 25 29 28 34 38.1% 42.2% 42.7% 40.1% 37.8% 5.89 6.94 8.29 8.66 8.68 4.87% 3.70% 2.89% 2.73% 2.73% LTV 38.10% EPRA NRV/share €5.89 2024 2023 2022 2021 2020 2024 2023 2022 2021 2020 11.6% (30.3%) (25.2%) (13.3%) (18.6%) Cost of Debt 4.87% Total Annual Shareholder Return 11.6% Key Performance Indicators continued Five-year portfolio performance 24 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Operational Review Steering towards an optimised and robust “Class A” office portfolio after successful disposal of non-core assets. Portfolio Snapshot 25 Romania 27 Poland 29 Portfolio Development and Evolution 32 Asset Management Review 36 Standing Portfolio Review 40 Capital Markets Review 43 Financial Review 46 EPRA Select Key Performance Measures Snapshot 56 Sustainable Development Review 57 Environmental Review 59 Social Review 62 Governance Review 64 Principal Risks & Uncertainties 65 Globalworth Square Romania A4 Business Park Supersam 25 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report GAV split by asset use Office 87.3% Mixed-Use 10.5% Other 2.2% Our portfolio is in nine of the largest and most liquid sub-markets in our countries of focus. It primarily comprises 28 Class “A” office investments (48 properties in total), with other investments including three mixed-use assets (two standing and one under refurbishment/repositioning), one logistics park, land for further development and partial ownership in a residential complex. As of 31 December 2024, our portfolio had an overall aggregate value of €2.6 billion. Portfolio Snapshot A high-quality portfolio in Romania and Poland GAV split by location Bucharest 45.5% Constanta 0.3% Craiova 0.2% Warsaw 23.0% Krakow 10.8% Wroclaw 9.4% Katowice 6.3% Lodz 2.3% Gdansk 2.1% Total GAV €2.6bn Notes: The notes below apply to all, Combined Portfolio, Romanian Portfolio and Polish Portfolio. 1. Standing investments representing income producing properties. One investment can comprise multiple buildings, e.g. Green Court Complex comprises three buildings or one investment. 2. Includes all property assets, land and development projects valued at 31 December 2024. Assets owned under JV are presented at 100% (e.g. Constanta Business Park). 3. Occupancy of standing commercial properties adjusted with the active leases related to our ESG commitments (1,954 sqm in BOC Tower, Bucharest) and with the available area of the spaces leased to GW Flex Sp. Z.o.o, was 76.5%, 96.4% and 85.9% as of 31 December 2024 for Poland, Romania and at Group level, respectively. 4. Includes pre-let commercial standing and development/ redevelopment assets. 5. Including 10.2k sqm of residential assets in Romania. 6. Total rent comprises commercial (€181.2 million) and residential (€0.3 million in Romania) standing properties and rent from assets under redevelopment (€6.1 million in Poland). Combined portfolio Standing investments1 32 56 standing properties GAV2 €2,600m Standing GAV €2,449m Occupancy3 86.7% WALL4 4.6 years Standing GLA5 1,014k sqm Contracted rent6 €187.5m We own and manage a high- quality portfolio in prime real estate markets in Poland and Romania, offering our investors an efficient gateway to the two largest markets in Central and Eastern Europe. Quattro Business Park 26 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Green Horizon Portfolio Snapshot continued Romanian portfolio Standing investments1 14 20 standing properties GAV2 €1,196m Standing GAV €1,162m Occupancy3 96.8% WALL4 5.3 years Standing GLA5 483.6k sqm Contracted rent6 €90.1m Polish portfolio Standing investments1 18 36 standing properties GAV2 €1,404m Standing GAV €1,287m Occupancy3 77.8% WALL4 3.9 years Standing GLA5 530.4k sqm Contracted rent6 €97.4m GAV split by asset use Office 95.3% Other 4.7% GAV split by location Bucharest 98.9% Constanta 0.7% Craiova 0.4% GAV as % of total 46.0% GAV split by asset use Office 80.5% Mixed-Use 19.5% GAV split by location Warsaw 42.7% Krakow 20.1% Wroclaw 17.4% Katowice 11.7% Lodz 4.2% Gdansk 3.9% GAV as % of total 54.0% Globalworth Square Romania 27 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Romania 3 2 Portfolio Snapshot continued Present in nine cities across Poland and Romania We own and manage 37 high- quality real estate investments in Bucharest, Warsaw and seven regional markets/cities in Poland and Romania. Our principal focus is on Class “A” environmentally friendly offices, which we have acquired or developed, offering a diverse mix of high-quality space. These properties accommodate office and support operations for large local and multinational companies in seven cities in Poland and Romania, accounting for 87.8%* of our combined portfolio by value. Our presence in offices also extends through our ownership of three highly recognisable, mixed-use, multifunctional properties in Poland, which combine a high-quality retail and leisure experience with Class “A” offices. As of 31 December 2024, one of these properties was under refurbishment/repositioning and we expect the finalisation of works in the following period. During the year we have successfully divested from our industrial/light-logistic portfolio, which we deemed as a non-core activity, and we sold our interest to reputed European logistic players. Our remaining industrial property is in Craiova, Romania, and was 100% leased as of 31 December 2024. In addition, we have partial ownership of a residential complex with a retail component adjacent and complementary to our office properties in the new CBD of Bucharest. Bucharest and Warsaw are the cities where we have our largest concentration, with 23 investments, including 25 class “A” office buildings and other auxiliary investments, accounting for 68.6% of our combined portfolio value. Bucharest is the city where the Group started operating in 2013 and the most significant real estate market in Romania, while Warsaw is Poland’s and the CEE’s largest and most mature real estate market. Our regional portfolio spans over seven major markets in Poland and Romania, with our most significant regional presence being in Krakow and Wroclaw, accounting for 10.8% and 9.4% of our combined portfolio value, respectively. 18 high-quality investments in Bucharest and two significant regional hubs in Romania with 18 class “A” office buildings and one logistic park GAV €1.2bn Contracted rent €90.1m 1 Bucharest 2 Craiova 3 Constanta 1a New CBD 1b Unicredit HQ 1c TCI 1d City Offices 1e RBC * Including land to be developed in the future as offices. Bucharest 1a 1c 1b 1e 1d 1 28 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Regional Portfolio Snapshot continued Bucharest GAV €12.8m Standing Properties 1 Standing GLA 5.9k sqm Standing Occupancy 100% Standing Contracted Rent €0.4m Standing 100% Potential Rent €0.4m Future GLA 129.8k sqm Future ERV €6.9m Industrial 100% Craiova GAV €1,182.9m Standing Properties 19 Standing GLA 477.7k sqm Standing Occupancy 96.0% Standing Contracted Rent €89.8m Standing 100% Potential Rent €93.1m Future GLA 77.0k sqm Future ERV €16.3m Office 96.4% Other 3.6% Globalworth Tower 29 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Poland 5 3 2 4 6 1 Portfolio Snapshot continued – Poland We own 19 high-quality investments in Warsaw and the five largest regional markets of Poland, with 30 class “A” offices and seven mixed-use properties. Warsaw GAV €599.2m Standing Properties 12 Standing GLA 172.5k sqm Standing Occupancy 91.4% Standing Contracted Rent €42.3m Standing 100% Potential Rent €45.7m Future GLA – GAV €1.4bn Contracted rent €97.4m Future ERV – 1 Warsaw 2 Krakow 3 Wroclaw 4 Katowice 5 Lodz 6 Gdansk Office 81.2% Mixed-Use 18.8% Hala Koszyki 30 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Wroclaw Portfolio Snapshot continued – Poland Krakow GAV €281.9m Standing Properties 12 Standing GLA 150.2k sqm GAV €244.5m Standing Properties 3 Standing GLA 56.7k sqm Standing Occupancy 59.1% Standing Contracted Rent €17.4m Standing 100% Potential Rent €28.1m Standing Occupancy 96.0% Standing Contracted Rent €10.9m Standing 100% Potential Rent €11.3m Future GLA 17.7k sqm Future GLA 48.3k sqm Future ERV €3.1m Future ERV €9.5m Office 100% Office 54.7% Mixed-Use 45.3% (30.5k sqm contracted) (€6.1m contracted) Renoma Quattro 31 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Lodz Katowice Gdansk GAV €164.1m Standing Properties 6 Standing GLA 90.0k sqm Standing Occupancy 73.8% Standing Contracted Rent €12.5m Standing 100% Potential Rent €16.3m GAV €54.3m Standing Properties 1 Standing GLA 25.6k sqm Standing Occupancy 79.4% Standing Contracted Rent €4.0m Standing 100% Potential Rent €5.0m GAV €60.0m Standing Properties 2 Standing GLA 35.5k sqm Standing Occupancy 70.1% Standing Contracted Rent €4.3m Standing 100% Potential Rent €6.0m Future GLA – Future GLA – Future GLA – Future ERV – Future ERV – Future ERV – Portfolio Snapshot continued – Poland Office 69.2% Mixed-Use 30.8% Office 100% Office 100% Supersam Tryton Business House Green Horizon 32 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Portfolio Development and Evolution Real estate activity focused on capital recycling and selective, value-protecting investments For Globalworth, 2024 was a transformative year. At the beginning of the year our Group’s strategy was steered towards liquidity enhancing and proactive financial management initiatives. As a result, we have embarked on a deleveraging path sustained by our cash generation capacity and by selective disposal of non-core assets. In parallel, we continued with our active investment and upgrade programme focused on value preservation while progressing with the refurbishment/repositioning of our two mixed-use properties in Poland, investing over €52 million during the year. Disposal of Non-Core Assets Over the past few years, we have strategically developed our high-quality logistics portfolio designed to meet the evolving demands of modern supply chains. These assets, strategically located, have attracted leading global tenants, ensuring strong occupancy rates and resilient cash flows. The sale of this portfolio marks the successful realisation of our investment strategy. This transaction not only unlocked significant value for our stakeholders but also reinforced the growing demand for high- quality logistics assets in a rapidly evolving market. Therefore, during May, we sold to CTP, one of the largest European owners of logistics and industrial real estate, our fully owned logistics portfolio comprising five logistics / light-industrial parks with ten facilities in Timisoara, Arad, Oradea and Pitesti as well as a majority stake in two small business unit projects in Bucharest. The disposal was in line with our focus on enhancing liquidity, and reflective of the fact that logistics properties are considered non-core assets of the Group’s portfolio. Fully Owned Logistic Portfolio Timisoara Industrial Park I Timisoara Industrial Park II Industrial Park West Arad Industrial Park West Oradea Pitesti Industrial Park Business Park Chitila Business Park Stefanesti Total Location Timisoara Timisoara Arad Oradea Pitesti Bucharest Bucharest Romania No. of facilities 4 2 1 1 2 1 3 14 Globalworth share 100% 100% 100% 100% 100% 75% 75% > 50% GLA (k sqm) 103.7 37.0 20.1 6.9 75.2 7.1 17.7 267.7 GAV (€ m; incl. lands) 68.6 31.2 17.7 6.7 59.2 7.3 15.9 206.6 Occupancy (%) 100.0 54.4 100 100 100 98.1 51.0 90.4 100% Rent (€ m) 5.0 1.8 1.3 0.5 4.6 0.6 1.3 15.0 Data as of 31 December 2023 Furthermore, in July, we disposed of our 50% interest in logistic assets in Romania which were owned via joint venture companies (the “JV Portfolio”) for a total net consideration estimated at €57.0 million. The buyer was WDP, a leading logistics real estate player based in Belgium. Also, in the first months of the year, pursuing our liquidity enhancement objectives, we have sold Bliski Centrum, an office building located in Warsaw, with a total GLA of 4.9k sqm, which, due to its relatively small size was not considered a core asset by the Group. JV Portfolio Chitila Logistics Park Constanta Business Park Targu Mures Logistics Hub Total Location Bucharest Constanta Targu Mures Romania No. of facilities 1 2 1 4 Globalworth share 50% 50% 50% 50% GLA (k sqm) 77.0 41.1 18.3 136.4 GAV (€ m; incl. lands) 47.6 55.1 17.2 119.9 Occupancy (%) 90.9 99.8 100 94.8 100% Rent (€ m) 4.1 2.7 1.5 8.4 Data as of 30 June 2024, figures shown on 100% basis 33 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Ace of Space – Launching of Globalworth-Operated Flex Office Concept During the first part of 2024, having in mind the widespread acceptance of the hybrid work model across our markets of interest, especially in Poland, we decided to meet the requests of our current and potential tenants by launching our own version of a flexible office concept in Poland, which will be operated through a special group entity, GW Flex Sp. Z.o.o., which will be leasing spaces in our properties. This concept addresses tenants looking for smaller but high-quality spaces, usually for the short and medium term, spaces that offer all the amenities they seek to attract and retain talents and that relate to their corporate identity. As of 31 December, we had 13.0k sqm of GLA of flex office spaces across seven properties in our Polish portfolio. Out of the total flex office, only 8.9k sqm of spaces were operating and available as of 31 December 2024, the rest being in the course of being fitted out. The average occupancy of these operating flex office spaces operating at the end of the year was 69.4%. Globalworth Flex Office Portfolio Tryton Quattro Business Park Retro Office House Silesia Star Supersam Renoma Skylight & Lumen Total Location Gdansk Krakow Wroclaw Katowice Katowice Wroclaw Warsaw Poland Total GLA (k sqm) 0.5 1.5 1.2 1.2 3.2 2.5 3.0 13.0 O/w Operating GLA (k sqm) 0.5 1.5 1.2 1.2 1.5 – 3.0 8.9 Occupancy (%) 71.0% 5.0% 59.0% 80.0% 45.7% 0.0% 87.0% 47.1%* * Occupancy of the operating flex office spaces was 69.4% as of 31 December 2024 Portfolio Development and Evolution continued Lumen workspace Lumen exterior Lumen 34 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Portfolio Development and Evolution continued Review of Deliveries and Developments At the beginning of the year, we had two logistic projects under construction, of which Stefanesti Business Park was delivered and sold to CTP in the first semester while Craiova Logistic Park was subsequently delivered in August. From the two mixed-use properties under refurbishment at the start of the year, we have completed the works in Supersam, with Renoma remaining to be delivered. Delivery Craiova Logistics Park Location Craiova GLA (k sqm) 5.9 Occupancy (%) 100 Development Cost (€ m) 4.5 GAV (€ m) 4.9 Contracted Rent (€ m) 0.4 100% Rent (€ m) 0.4 Yield on Development Cost 8.2% In Poland the refurbishment of our iconic Renoma mixed-use asset is expected to be finalised in the next few months with the repositioning of the property now offering a more attractive food court and an increase in office GLA compared to pre-refurbishment status. Properties Under Redevelopment Renoma Location Wroclaw Status Refurbished/ Repositioning Expected Delivery H1-2025 GLA – on Completion (k sqm) 48.3 CAPEX to 31 December (€ m) 23.8 GAV (€ m) 110.9 Estimated CAPEX to Go (€ m)* 6.0 ERV (€ m) 9.7 Estimated Yield on Completion of Project** 8.9% * Estimated CAPEX to Go partially excludes tenant contributions which are subject to negotiation and may impact the final yield on Completion of the Project. **Estimated Rental Value increase versus current Contracted rent + ERV on vacant spaces divided by total Development CAPEX. Standing Properties Operation Offering best-in-class real estate space to our business partners is a key component of our strategy at Globalworth. We believe that through a “hands-on” approach with continuous active management and investment in our portfolio, we can preserve and enhance the value of our properties, generate long-term income, and offer best- in-class real estate space to our business partners. To be able to provide spaces for our current and future business partners’ requirements, we keep (re)investing in our properties, maintaining and, where required, improving the quality of our buildings and our services. We manage all our properties in Poland internally, and in Romania, we manage all but one of our offices in- house. This translates to 955.6k sqm of high-quality commercial spaces with an appraised value of €2.3 billion internally managed by our team. Internally Managed Commercial Portfolio as at 31 Dec. 2024 Poland Romania Group GLA (k sqm) 530.4 425.2 955.6 % of Commercial GLA 100% 90% 95% % of Office and Mixed-Use GLA 100% 91% 96% GAV (€ m) 1,286.8 1,053,4 2,340.2 % of Commercial GAV 100% 92% 96% % of Office and Mixed-Use GAV 100% 93% 97% In 2024, we invested €46.0 million in select improvement initiatives in our standing commercial portfolio. As a result of our continuous investments, we hold a modern portfolio with 36 of our standing commercial properties, accounting for c. 70% by value, having been delivered or significantly refurbished in the last 10 years. 35 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Portfolio Development and Evolution continued Future Developments We own, directly or through JV partnerships, other land plots in prime locations in Bucharest, regional cities in Romania and Poland, covering a total land surface of 0.3 million sqm (comprising 1.5% of the Group’s combined portfolio value), for future developments of office, industrial or mixed-use properties. When fully developed, these land plots have the potential to add a total of a further 224.5k sqm of high-quality GLA to our standing portfolio footprint. These projects, which are classified as “Future Development”, continue to be reviewed by the Group, albeit periodically, with the pace at which they will be developed subject to tenant demand and general market conditions. Future Developments Podium Park III Green Court D Globalworth West Constanta Business Park (Phased)* Luterana Location Krakow Bucharest Bucharest Constanta Bucharest Status Constr. Postponed Constr. Postponed Constr. Postponed Planned Planned GLA (k sqm) 17.7 17.2 33.4 129.8 26.4 CAPEX to 31 Dec 24 (€ m) 8.5 3.3 5.2 3.3 7.4 GAV (€ m) 6.3 7.1 6.0 7.9 12.3 Estimated CAPEX to Go (€ m)** 29.7 38.9 38.5 60.2 39.7 ERV (€ m) 3.1 4.3 5.2 6.9 6.7 Estimated Yield on Development Cost 8.1% 10.2% 13.3% 10.9% 14.3% * 50:50 Joint Venture; figures shown on 100% basis. ** Preliminary development budgets on future projects, to be revised prior to permitting or construction start. Quattro 36 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Asset Management Review Proactively managing our real estate portfolio Leasing Review We are present in six of the seven largest office markets in Poland, and in Bucharest, the largest office market of Romania. These office markets provide corporations with the necessary infrastructure for them to operate and offer people interesting opportunities for them to grow professionally and personally. We remain strong believers that offices are an integral part of the economic life of a region, growing together with the communities they serve while providing spaces for creativity to flourish and for genuine human connections to be nurtured. By fostering collaboration, innovation, and a sense of belonging, offices become more than just workplaces – they evolve into hubs of inspiration where ideas take shape, relationships deepen, and collective progress thrives. Since the start of the decade the world has been shaped by a pandemic which triggered a change in the way we work, and how businesses are conducted, highlighting the importance of the long-forgotten work- life balance. Just when the markets were recovering from this, geopolitical tensions erupted in our vicinity as the Ukraine war pushed prices, rates and overall volatility to historic heights. We are now seeing a reshaping of the traditional office into friendlier workspaces focused on wellbeing, innovation and human connection. Most of our large multinational and national tenants have adopted a hybrid work model best suited to their organisational values and are increasingly using the state-of-the-art spaces we, at Globalworth, provide. Affected by uncertainty and a reshaping role for the office industry, we have witnessed, in recent years, a decrease of development activity limiting new supply in our markets. This has put pressure on rents as demand is returning to previous levels. All this has led to a visible and still widening gap between A-grade properties with strong ESG credentials and B-grade properties. New Leases Our principal focus is to ensure high usage of our spaces by proactively renewing our leases with existing tenants and the take-up of available spaces in our standing properties and developments. In the 12 months of 2024, the Group successfully negotiated the take-up (including expansions) or extension of 162.9k sqm of commercial spaces in Poland (61.8% of transacted GLA) and Romania (38.2% of transacted GLA), with an average WALL of 5.4 years. Our leasing activity in 2024 was almost equally split between new take-up of available spaces, with such leases accounting for 48.7% of our total leasing activity being signed at a WALL of 6.3 years and renewals accounting for 51.3% signed at a WALL of 4.8 years. In total, we signed new take-up (incl. expansions) in our portfolio for 79.3k sqm of GLA, with the majority involving spaces (56.3%) leased to new tenants, and the remaining areas being taken up by existing tenants which were expanding their operations. • New leases were signed with 55 new tenants for 44.6k sqm of GLA at a WALL of 6.6 years. The majority were for office spaces, accounting for 93.6% and the remainder involving retail/other commercial spaces. • In addition, 47 existing tenants choose to expand their spaces by 34.7k sqm at an average WALL of 5.9 years. Selected Take-up Leases Signed in 2024 City Property GLA Deutsche Bank Technology Bucharest (RO) BOB Tower 6.9k Banca Transilvania Bucharest (RO) Green Court Complex 4.9k Jaral Poland Katowice (PL) Silesia Star 3.9k Noble Drilling Gdansk (PL) Tryton Business Tower 2.8k Clever Media Network Bucharest (RO) BOC Tower 2.0k We also renewed leases for a total of 83.6k sqm of GLA with 76 of our tenants at a WALL of 4.8 years. It is important to note that c.65% (by GLA) of these renewals were for leases that were expiring in 2025 or later. Selected Leases Extensions Signed in 2024 City Property GLA Vodafone Romania Bucharest (RO) Globalworth Tower 12.1k FMC Technologies Krakow (PL) Podium Park 6.9k Infor Polska Wroclaw (PL) Retro Office House 4.9k Garret Motion International Services Bucharest (RO) Globalworth Campus 4.5k Solid Group Warsaw (PL) Batory Building 3.3k Summary Leasing Activity for Combined Portfolio in 2024 GLA (k sqm) No. of Tenants* WALL (yrs) New Leases (incl. expansions) 79.3 97 6.3 Renewals/Extensions 83.6 76 4.8 Total 162.9 157 5.4 * Number of individual tenants 37 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Asset Management Review continued Rental Levels Starting in the last 12 to 18 months, headline rental levels have been displaying an upward pressure mostly influenced by indexation, but also by the limited new supply of high-quality spaces coming into the market. We expect this trend to continue, despite challenges in the market, but with different impact depending on the location, ESG credentials and office asset class. Most of our leases typically adjust to inflation annually, in the first quarter of the year, with eligible leases indexed at an average of 5.1% in 2024. This positive impact is also combining with the rates at which leases were renewed, or new leases signed, and is reflected in the evolution of our average rents. The evolution of retail average headline rent was further impacted by the delivery of our mixed-use asset Supersam (Katowice, PL) which has undergone refurbishment works in previous years. At the end of December 2024, our average headline rents in our standing properties for office and retail spaces were €15.9/sqm/month (€15.0 at YE-2023) and €16.2/sqm/month (€16.7 at YE-2023) respectively. Average Portfolio Headline Rents in Standing Portfolio (€/sqm/m) 31 Dec. 2024 31 Dec. 2023 Change (%) Office 15.9 15.0 5.5% Retail/Commercial 16.2 16.7 -2.8% Rental levels can vary significantly between types of spaces, buildings and submarkets. Leases signed in 2024 were at €15.7/sqm/m, 6.2% higher than the previous year Group averages. Average Headline Rents of New Leases Signed (€/sqm/m) 31 Dec. 2024 31 Dec. 2023 Change (%) Office 15.9 14.8 7.5% Retail/Commercial 14.3 16.2 -12.1% Average 15.7 14.8* 6.2% * Adjusted to exclude influence of leases signed for industrial spaces in 2023 Contracted Rents (on annualised basis) Total annualised contracted rent across our portfolio in Poland and Romania decreased by 6.8% to €187.5 million compared to year-end 2023, driven mainly by the disposal of non-core assets during the year and, to a lesser extent, by positive indexation impact and leasing activity in our projects. Total annualised contracted rents in our standing commercial portfolio were €181.2 million at 31 December 2024, down 5.4% compared to 31 December 2023, increasing to €187.3 million when including rental income contracted in Renoma, our mixed-use property in Wroclaw, currently under refurbishment. Like-for-like annualised commercial contracted rents in our standing commercial portfolio increased by 4.5% to €177.6 million at the end of December 2024 compared to the same period in 2023 (€169.9 million), mainly as an effect of rent indexation. Annualised Contracted Rent Evolution 2024 (€m) Poland Romania Group Rent from Standing Commercial Properties (“SCP”) 31 Dec. 2023 86.6 105.1 191.5 Less: Assets Sold (1.1) (20.5) (21.7) Rent from SCP Adj. for Properties Sold 31 Dec. 2023 85.3 84.6 169.9 Less: Space Returned (8.0) (3.8) (11.9) Plus: Rent Indexation 3.3 3.2 6.5 Plus/Less: Lease Renewals (net impact) & Other (0.0) (0.3) (0.3) Plus: New Take-up 7.5 5.9 13.4 Total L-f-L Rent from SCP 31 Dec. 2024 88.1 89.5 177.6 Plus: Developments Completed During the Period 3.3 0.4 3.6 Total Rent from Standing Commercial Properties 91.3 89.9 181.2 Plus: Residential Rent – 0.3 0.3 Total Rent from Standing Properties 91.3 90.1 181.5 Plus: Active and Pre-lets of Space on Projects Under Development/Refurbishment 6.1 – 6.1 Total Contracted Rent as at 31 Dec. 2024 97.4 90.1 187.5 38 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Asset Management Review continued Combined Annualised Commercial Portfolio Contracted Rent Profile as at 31 Dec. 2024 Poland Romania Group Contracted Rent (€ m) 97.4 89.9 187.3 Tenant origin – % Multinational 65.5% 80.8% 72.8% National 33.2% 17.4% 25.6% State Owned 1.3% 1.8% 1.6% Note: Commercial Contracted Rent excludes c.€0.3 million from residential spaces as at 31 December 2024 Annualised Contracted Rent by Period of Commencement Date as at 31 Dec. 2024 (€m) Active Leases H1-2025 H2-2025 >2025 Total Standing Properties 176.1 5.4 – – 181.5 Developments 5.6 0.5 – – 6.1 Total 181.7 5.9 – – 187.5 Annualised Commercial Portfolio Lease Expiration Profile as at 31 Dec. 2024 (€m) Year 2025 2026 2027 2028 2029 2030 2031 2032 2033 >2033 Rent 14.2 17.9 23.6 24.5 30.8 31.2 16.0 8.9 3.6 16.7 % of total 7.6% 9.5% 12.6% 13.1% 16.4% 16.7% 8.5% 4.8% 1.9% 8.9% The Group’s rent roll across its combined portfolio is well diversified, with the largest tenant accounting for 3.8% of contracted rents, while the top three tenants account for 9.7% and the top 10 account for 23.4%. Cost of Renting Spaces Renting spaces typically involves certain costs, such as rent-free periods, fit-outs for the space leased, and brokerage fees, which the landlord incurs. These incentives can vary significantly between leases and depend on market conditions, type of lease signed (new take-up or lease extension), space leased (office, industrial, other), contract duration and other factors. While headline (base) rents present the reference point typically communicated in the real estate market when referring to the level at which lease contracts are expected to be signed or are signed, the effective rent is a more useful indicator of a rental agreement’s profitability. In calculating our effective rent, we account for the costs incurred over the lease’s lifetime, which we deduct from the headline (base) rent, thus allowing us to assess the profitability of a rental agreement. To analyse the effective rent more accurately in this period we excluded short-term leases, leases signed with Group entities for flexible office spaces and leases signed or renewed as part of our ESG commitments. Overall, in 2024, we successfully negotiated the take-up (including expansions) or extension of 147.2k sqm of commercial spaces in our portfolio (excluding the above-mentioned specific leases). The weighted average effective rent for these new leases was €11.5/sqm/month with a WALL of 5.3 years. The difference between headline (base) and effective rents in 2024 was, on average, 27.1%, slightly higher compared to the level recorded in FY2023 (average of 26.2%), continuing to reflect a challenging market. However, considering the sale of our industrial portfolio, when excluding discounts related to the 2023 industrial leasing activity, our 2023 adjusted average discount ends up at 28.6%, which compared to the 2024 level is highlighting a decrease of such incentives during the last 12 months for our office and mixed-use portfolio. In total, new leases signed during the year will generate a future rental income of €177.5 million (including auxiliary spaces and revenues from flex offices), with leases from office properties accounting for 87.2% of future rental income. Weighted Average Effective Rent (€ / sqm / m) – Leases signed in 2024 Poland Romania Group Headline Commercial Rent 16.1 15.2 15.7 Less: Rent Free Concessions (2.3) (1.2) (1.8) Less: Tenant Fitouts (2.4) (1.4) (1.9) Less: Broker Fees (0.6) (0.5) (0.5) Effective Commercial Rent 10.8 12.0 11.5 WALL (in years) 4.6 6.3 5.3 39 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Portfolio Valuation In line with our practice of biannual valuations, we valued our entire portfolio in Poland and Romania as of 30 June and 31 December 2024. The valuations were performed by Knight Frank for our properties in Poland, with Colliers and Cushman & Wakefield valuing our properties in Romania (more information is available under note 3 of the audited annual condensed consolidated financial statements as of and for the period ended 31 December 2024). Assigning the appraisal of our portfolio to three independent and experienced service providers makes the process of determining the value of our properties transparent and impartial. Through our oversight, we ensure that a consistent methodology, reporting, and timeframe are respected. The main drivers in the evolution of our portfolio value since the inception of the Group have been: • Acquisition or development of high-quality properties in our markets; • Selective disposal of non-core assets aimed at maintaining an excellent financial and operational performance; • Active asset management of the properties; and • The performance of the real estate markets in which we operate. Our portfolio, since the inception of the Group, had grown to reach €3.2 billion as of 31 December 2022, following a series of acquisitions and development of high-quality office and logistics / light industrial assets in Poland and Romania. Starting with the early 2020s (affected by the pandemic and geopolitical tensions), the office market began a visible transformation characterised by the spread of hybrid work while differentiation between class A and class B properties became more obvious. Therefore, our focus has switched to preserving the value of our core assets through selective investments and disposals of non-core assets. Consequently, during the first seven months of 2024, we have successfully sold to reputed logistic investors our interests in the logistics / light industrial portfolio that we owned at the end of 2023. As such, the portfolio’s third-party appraised value at 31 December 2024 was estimated at €2.6 billion, which was 13.2% lower compared to the end of 2023, being mainly impacted by the sale of assets. During the year we have sold assets worth €353.4 million, out of which €234.2 million were fully owned assets and €119.2 million were assets owned through joint ventures. The like-for-like decrease of standing commercial assets owned throughout the year was €38.9 million meaning 1.6% compared to the values at the end of 2023. In valuing our properties, key market indicators used by our independent appraisers, although they vary, consider factors such as the commercial profile of the property, its location and the country in which it is situated. As at 31 December 2024 and throughout the year, third-party appraisals continued to be impacted by high inflation and interest rates, albeit with a smaller influence compared to the year before. We have started to notice a slight positive trend of rental prices and we are anticipating more positive changes linked to discount rates and exit yields, conditioned by positive capital market evolutions. Combined Portfolio Value Evolution 31 Dec. 2024 (€m) Poland Romania Group Total Portfolio Value at 31 Dec 2023 1,474.8 1,520.0 2,994.8 Less: Properties Held in Joint Venture* (129.0) (129.0) Total Fully Owned Portfolio at 31 Dec 2023 1,474.8 1,391.0 2,865.8 Plus/Less: Transactions (12.4) (221.8) (234.2) o/w New Acquisitions – – – o/w Disposals (12.4) (221.8) (234.2) Plus: Capital Expenditure 18.7 33.4 52.2 o/w Developments 3.5 2.7 6.2 o/w Standing Properties 15.3 30.7 46.0 o/w Future Developments – – – Plus/Less: Net Revaluations Adjustments (77.1) (14.8) (91.9) o/w Developments/Re-developments (5.8) (0.6) (6.4) o/w Standing Properties (71.3) (14.0) (85.3) o/w Lands, Future Developments & Acquisitions – (0.2) (0.2) Total Fully Owned Portfolio at 31 Dec. 2024 1,404.0 1,187.8 2,591.8 Plus: Properties Held in Joint Venture* – 7.9 7.9 After Disposals in the Period – (119.2) (119.2) After Net Revaluation Adjustments – (1.9) (1.9) Total Portfolio Value at 31 Dec. 2024 1,404.0 1,195.7 2,599.7 * Properties held through joint ventures are shown at 100%, Globalworth owns a 50% stake in the respective joint ventures Note: Certain casting differences in subtotals / totals are due to figures presented in 1 decimal place Asset Management Review continued 40 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Following disposal of non-core assets during the year, our high-quality standing portfolio GLA decreased to 1.0m sqm, being valued at €2.4 billion as of 31 December 2024. By effectively managing our real estate portfolio, we aim to offer our investors an efficient gateway to the two largest markets in Central and Eastern Europe. We provide our business partners with high-quality spaces in major real estate markets in Poland and Romania that are sustainable, technologically advanced, and custom fitted to their requirements, offering premium services to allow businesses to succeed. Standing Portfolio Evolution The footprint of our standing commercial portfolio decreased during 2024 mainly due to successful disposal of our industrial/light logistics portfolio. We considered these assets, together with a small office building located in Warsaw, which was sold in the first months of the year, as non-core assets, therefore the divestment decision was made having in mind our deleveraging and liquidity enhancement strategy. During the first half of the year, we completed the refurbishment works in Supersam, our mixed-use property in Katowice, Poland and, later, in August, we delivered our first logistics/light industrial facility in Craiova, Romania, this being the only such logistic property still owned by the Group as of 31 December 2024. Overall, our standing portfolio predominantly comprises 28 Class “A” offices (48 properties in total) and two mixed-use investments (with six properties in total) in central locations in Bucharest (Romania), Warsaw (Poland) and five of the largest office markets/ cities in Poland (Krakow, Wroclaw, Katowice, Gdansk and Lodz), which in total account for 98.5% of our standing portfolio by value. During the year, our standing commercial portfolio’s total GLA decreased by 363.7k sqm or 26.6% to reach 1,003.7k sqm at the end of December 2024 as the sale of our industrial portfolio has driven down our total GLA with 390.7k sqm of GLA. Globalworth Combined Standing Portfolio: 2024 Evolution Total Standing YE 2023 1,386.0k sqm of which Standing Commercial YE 2023 1,367.4k sqm + Supersam / Completion of refurbishment works in mixed-use property (Katowice, Poland) +26.7k sqm + Craiova Logistic Park / Delivery of logistic facility (Craiova, Romania) +5.9k sqm − Sale of fully owned Romanian Industrial Portfolio −254.3k sqm − Sale of JV-owned Romanian Industrial Portfolio −136.4k sqm − Sale of Bliski Centrum / small non-core office property (Warsaw, Poland) −4.9k sqm +/− Net remeasurement adjustments & other (RO & PL) −0.6k sqm Standing Commercial YE 2024 1,003.7k sqm Upground residential in Bucharest (RO)* 10.2k sqm Total Standing YE 2024 1,014.0k sqm * In 2024, units with 8.4k GLA were sold in our Upground residential complex. Standing Portfolio Value at €2.4bn The appraised value of our combined standing portfolio as of 31 December 2024 was €2.4 billion (more than 99% in commercial properties) which was 10.5% lower compared to 31 December 2023. This overall decrease is mainly attributable to the sale of our standing industrial portfolio (valued at €275.7 million as of 31 December 2023), while other sales and deliveries in the period and negative revaluation differences had a much lower impact in the overall evolution of our standing portfolio value. The value of like-for-like standing commercial properties decreased by 1.6% as of 31 December 2024 compared to the prior year, with our assets showing a mixed evolution depending on location, leasing performance and other real estate factors. Globalworth Combined Standing Portfolio: 2024 Evolution GAV – 31 December 2023 €2,736.4m Like for Like Change* −€39.4 Acquisitions of Properties – Delivery/Refurbishment of Properties +€55.5m Sales −€303.3 GAV – 31 December 2024 €2,449.2m * Like-for-Like change represents the changes in value of standing properties owned by the Group both at the beginning and at the end of the reporting period. Standing Portfolio Review We operate best-in-class real estate spaces in Poland and Romania Globalworth Square Romania 41 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Standing Portfolio Review continued Like-for-Like Occupancy Slightly Improving Our standing commercial portfolio’s average occupancy as of 31 December 2024 was 86.7%, representing a 1.5% decrease over the previous 12 months (88.3% as of 31 December 2023). This decrease is mainly attributable to the sale of non-core assets during the year which had an average occupancy of 93.1% as at the beginning of the year and their disposal had a negative impact of 2.0% on our standing commercial occupancy. The addition of our Supersam mixed-use asset (Katowice, Poland) and Craiova Logistic Park (Craiova, Romania) to our standing commercial portfolio further negatively impacted occupancy with another 0.4%, the average occupancy of the two properties being 75.7% as of 31 December 2024. On a like-for-like basis, occupancy increased with 0.8% to 87.1% at the end of the year, due to positive net take- up in our capital cities office properties amid signs of recovering demand for prime office spaces. Across our standing portfolio, at 31 December 2024, we had 870.7k sqm of commercial GLA leased to more than 600 tenants at an average WALL of 4.6 years, the majority of which is let to national and multinational corporates that are well-known within their respective markets. Occupancy Evolution 2024 (GLA ’k sqm) – Commercial Portfolio Poland Occupancy Rate (%) Romania Occupancy Rate (%) Group Occupancy Rate (%) Standing Available GLA – 31 Dec. 23 508.5 859.0 1,367.4 Sold GLA (4.9) (390.7) (395.7) New Built / Redeveloped GLA 26.7 5.9 32.6 Remeasurements, reclassifications 0.2 (0.8) (0.6) Standing Available GLA – 31 Dec. 24 530.4 473.3 1,003.7 Occupied Standing GLA – 31 Dec. 23 403.4 79.3% 803.5 93.5% 1,206.9 88.3% Sale of Occupied GLA (4.8) (363.7) (368.5) Acquired/Developed Occupied GLA 18.8 5.9 24.7 Expiries & Breaks (43.1) (22.5) (65.6) Renewals 49.0 27.5 76.4 New Take-up 37.7 34.7 72.4 Other Adj. (relocations, remeasurements, etc) 0.4 0.3 0.7 Occupied Standing GLA – 31 Dec. 24 412.5 77.8% 458.3 96.8% 870.7 86.7% Not included in our standing portfolio metrics are the 30.5k sqm leased in Renoma, our mixed-use property which is currently under refurbishment/repositioning. Standing Portfolio Snapshot As of 31 December 2024, our combined standing portfolio comprised 32 investments (41 on 31 December 2023) with 56 buildings (71 on 31 December 2023) in Poland and Romania. The appraised value of our standing portfolio was €2,449.2 million, of which 92.9% was green-certified. Globalworth Combined Portfolio: Key Metrics Total Standing Properties 31 Dec. 2022 31 Dec. 2023 31 Dec. 2024 Number of Investments 41 41 32 Number of Assets 71 71 56 GLA (k sqm) 1,405.6 1,386.0 1,014.0 GAV (€ m) 2,893.6 2,736.4 2,449.2 Contracted Rent (€ m) 182.0 192.0 181.5 Of which Commercial Properties Total Standing Properties 31 Dec. 2022 31 Dec. 2023 31 Dec. 2024 Number of Investments 40 40 31 Number of Assets 70 70 55 GLA (k sqm) 1,383.2 1,367.4 1,003.7 GAV (€ m) 2,850.6 2,700.0 2,428.5 Occupancy (%) 85.6% 88.3% 86.7% Contracted Rent (€ m) 181.3 191.5 181.2 Potential rent at 100% occupancy (€ m) 211.4 217.7 205.5 WALL (years) 4.4 4.9 4.6 42 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Green Horizon Standing Portfolio Review continued GW Green CAPEX Programme HVAC Upgrade HVAC systems in all buildings at the same level of energy efficiency, technology and comfort Electrical & Green Energy LED lighting systems for underground parking and for all buildings’ common areas, solar photovoltaic panels and electric charging stations Operation Efficiency Metering for large equipment, façade repairs, roof hydro insulation refurbishment Automations A fully integrated Building Management System is implemented for all the sub-systems installed into the building Health & Safety Replacement of CO2 systems Common & Outdoor Areas Landscaping & exterior green areas refurbishment, renovation of common areas, restrooms and cyclist changing rooms CAPEX programme Romania total spent 2024 €m Poland total spent 2024 €m Total 8.5 22.3 6.3 13.8 5.3 1.0 3.5 3.5 0.8 4.6 3.6 0.9 0.1 0.3 0.8 0.9 2.6 3.4 0.5 3.6 2.7 43 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Equity Capital Markets Review After a period of tightening credit conditions that impacted real estate capital flows, we are now witnessing the first signs of a gradual normalisation in both global and European economies. Despite economic uncertainty and high interest rates, the CEE real estate market remained attractive due to its solid fundamentals, resilient demand in key sectors, and competitive yield profiles compared to Western Europe. Real estate valuations, especially for the office sector, continued to be approached with a slight conservative view, however, positive signs such as the upward trend of headline rents started to show up during the last 12 months, sustained by inflation and limited supply. Therefore, investor sentiment towards the sector is expected to change for the better and we are hopeful that valuation variables will incorporate these evolutions in the following period. Mihai Zaharia Group Head of Capital Markets & Head of Investments Romania Capital Markets Review Focusing on financial discipline and proactive capital strategy Since 2021, Globalworth has been controlled by Zakiono Enterprises Ltd, which is jointly and equally owned by CPI Property Group S.A. (“CPI”) and Aroundtown SA (“Aroundtown”), currently holding 60.9% of the share capital of the Group. In addition, Growthpoint Properties Ltd has 29.6% and Oak Hill Advisors 4.7%; thus, the effective trading free float by the end of 2024 and the years before was kept to limited levels. As of 31 December 2024, it is essential to place Globalworth’s share price performance in the context of the prevailing macroeconomic landscape. Throughout the year, the FTSE EPRA Developed Europe and the FTSE EPRA Global indices demonstrated mixed evolutions of −6.5% and +9.9%, respectively, for the 12 months starting on 1 January 2024. Globalworth’s share price displayed an increase of +3.5% but we acknowledge the fact that our share evolutions are also impacted by the limited free float of the Group’s share. During the year our share price has been trading consistently below its reported 31 December 2023 and 30 June 2024 EPRA NRV levels of €6.94 and €6.24 / share, respectively, reaching its lowest closing price on 14 October at €2.31 per share and its highest price on 16 January at €3.07 per share. Considering our strategy of deleveraging and cash enhancement, as a measure of safeguarding cash resources of the Company, the Group has offered, during the year, scrip dividend alternatives to the shareholders, meaning that they could elect to receive newly issued shares at a pre-determined price instead of cash. As a result, for each of the two dividend payments during 2024, shareholders representing more than 98% of the total issued share capital have elected to receive the scrip dividend alternative, emphasising the strong shareholder support for the Company. Warsaw Trade Tower lobby 44 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Capital Markets Review continued Globalworth FY-2024 Share Price Performance 120% Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 100% 110% 90% 80% Globalworth FTSE EPRA Developed Europe FTSE EPRA Global Globalworth Shareholding 31 Dec. 2024 31 Dec. 2023 CPI Together: Zakiono Enterprises 60.9% 60.8% Aroundtown Growthpoint Properties 29.6% 29.5% Oak Hill Advisors 4.7% 5.3% Other 4.8% 4.4% Basic Data on Globalworth Shares (Information as at 31 Dec 2024) Number of Shares 278.7m plus 0.8m shares held in treasury Share Capital €1.8bn WKN / ISIN GG 00B979FD04 Symbol GWI Free Float 7.2% Exchange London AIM Globalworth Share Performance 2024 2023 Market Capitalisation (€ million) – 31 Dec 747 653 31-Dec Closing Price (€) 2.68 2.59 52-week high (€) 3.07 3.73 52-week low (€) 2.31 2.05 Dividend paid per share (€) 0.21 0.29 45 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 8% 9% 7% 6% Capital Markets Review continued Bonds Update We finance ourselves through a combination of equity and debt, and we compete with many other real estate companies for investor trust to support our initiatives. To issue Eurobonds efficiently and benefit from market opportunities, we have established a Euro Medium Term Notes (EMTN) programme in 2018, allowing the Group to issue up to €1.5 billion of bonds. From this programme, €950 million was raised through bonds issued in March 2018 and July 2020 (inaugural green bond), with maturities in 2025 and 2026. At the beginning of 2024, our two Eurobonds outstanding totalled of €850 million, and together with the €85 million unsecured facility granted by IFC in June 2022 made most of our debt structure. Faced with high interest rates, investor risk aversion and the two significant bond maturities, we had embarked on a complex refinancing and deleveraging process. The successful negotiation and implementation of the bond exchanges, completed in the first part of the year, were crucial in resolving near-term debt maturities and enhancing the Company’s financial position. As a result, we have exchanged our outstanding €450 million Notes due in 2025 and €400 million Notes due in 2026 with €307 million green Notes due in 2029 and €333 million green Notes due in 2030 at a coupon of 6.25%, therefore repaying €210 million to our bondholders from our own cash sources. Furthermore, following the completion of the sale of our fully owned industrial portfolio, we have redeemed at par an additional €65 million in accordance with the terms and conditions of our new outstanding bonds. Post-June 2024, continuing this deleveraging path, the Group launched an offer to buy back up to €60 million of the outstanding bonds, which was further increased and successfully settled in July by accepting €83 million, resulting in the aggregate value of our two outstanding bonds decreasing to €492 million. This proactive approach to managing debt and liquidity underscores GWI’s commitment to maintaining financial health and strategic flexibility in an evolving market landscape. Globalworth is rated by two of the three major agencies, with Fitch maintaining their investment credit rating following their review of the Group and improving the outlook to stable while S&P changed Globalworth’s rating to BB stable in March 2025 following their annual review. Since issuance in April, our bonds’ performance has been stable as the bond exchange milestone has brought stability and predictability while positioning our company well to capitalise on future emerging opportunities. On average, our 24/29 and 24/30 bonds traded at 97.9% and 95.9% respectively, during the period. By the end of the year our yield to maturity has moved closer to our nominal coupon, closing at 6.4% and 6.5% on 31 December 2024. Basic Data on the Globalworth Bonds GWI bond 24/29 GWI bond 24/30 ISIN XS2809858561 XS2809868446 Segment Euronext Dublin Euronext Dublin Minimum investment amount €100,000 and €1,000 thereafter €100,000 and €1,000 thereafter Coupon 6.250% 6.250% Issuance volume €307.1 million €333.4 million Outstanding 31 Dec. 2024 €223.9 million €268.4 million Maturity 31 March 2029 31 March 2030 Performance of the Globalworth Bonds 2024 GWI bond 24/29 31 December closing price 100.9 Yield to maturity at 31 December 6.418% GWI bond 24/30 31 December closing price 100.49 Yield to maturity at 31 December 6.463% Globalworth FY-2024 Eurobond Yield Performance S&P rating Rating BB Outlook Stable Fitch rating Rating BBB− Outlook Stable (from Negative) GWI Bond 24/30 GWI Bond 24/29 46 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Financial Review Strategic Progress in Debt Reduction, Asset Quality, and Operational Efficiency Proactive Debt Management, Diversified Funding Sources, Extended Debt Maturities, Enhanced Asset Quality, Improved Occupancy and Yields, Robust Internal Controls and Risk Management Practices Positioning the Company for Sustainable Growth Amid Ongoing Market Uncertainties and Preparing for Future Opportunities in the Real Estate Sector. Revenues €238m (0.9)% on 2023 IFRS Earnings per share2 (31) cents (22) cents in 2023 EPRA NRV1,3 €1,639m (6.4)% on 31 Dec. 2023 Adjusted normalised EBITDA1,4 €126.2m (3.9)% on 2023 LTV1,5 38.1% 42.2% at 31 Dec. 2023 NOI1 €143.7m (2.2)% on 2023 Portfolio Open Market Value (OMV)1 €2.6bn (13.2)% on 31 Dec. 2023 EPRA NRV per share1,3 €5.89 (15.1)% on 31 Dec. 2023 EPRA Earnings per share1,2 21 cents (16.0)% on 2023* Dividends paid in 2024 per share 21 cents (27.6)% on 2023 Rashid Mukhtar Group Chief Financial Officer 1. See Glossary (pages 156–158) for definitions 2. See note 12 of the condensed consolidated financial statements for calculation. 3. See note 23 of the condensed consolidated financial statements for calculation. 4. See page 49 for further details. 5. See note 20 of the condensed consolidated financial statements for calculation. Campus 1 Introduction and highlights *Restated 47 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report 2 Revenues and Profitability Our main source of income is the rent paid by our partners who lease space in our properties. Additionally, we earn revenue from service charges, which help cover the expenses of maintaining common areas and offering shared services within our properties. However, the income generated from service charges is balanced out by the actual costs we incur in delivering these services. Total consolidated revenue generated by Globalworth in 2024 is €238.3 million, a slight decrease of €2.1 million over 2023 revenue of €240.4 million. During the year 2024, we disposed of our fully owned industrial properties in July, hence the drop of €8 million revenue from this segment as compared to consolidated 2023 revenue. This move enabled the company to streamline its portfolio, enhance focus on office, income-generating properties, and improve financial flexibility. Our core revenue stream, gross rental income from office and mixed-used properties, grew by €0.6 million in 2024, compared to the previous year, with extra revenue generated in Romania compensating the loss in Poland properties from the drop in vacancies. The increase in revenue generated by Romania is due to rental yearly indexation and higher occupancies in Bucharest properties. Total Revenue & Net Operating Income Year ended 31 December Note to the financial statements 2024 €’m 2023 €’m Contracted rent 188.9 191.9 Adjustment for lease incentives (36.1) (31.5) Rental income 7 152.8 160.4 Service charge income 7 78.6 75.0 Other income 7 6.9 5.0 Operating Expenses 8 (94.6) (93.4) Net Operating expense (9.1) (13.4) Net Operating Income (NOI) 143.7 147.0 Year ended 31 December 2024 €’m 2023 €’m Office 132.5 132.7 Bucharest 72.4 67.5 Regional 35.4 39.0 Warsaw 24.7 26.2 Mixed-Use 13.2 12.4 Industrial 5.9 13.9 Other 1.2 1.3 Rental Income by Segment 152.8 160.4 Rental income from our standing properties (including properties under refurbishment, Renoma and Supersam) on like-for-like basis grew by 1.0% in 2024, reaching €146.9 million. This represents an increase of €1.5 million year-over-year. Romania led the growth with rental income up 7.2% to €73.8 million, while Poland saw a decrease of €2.9 million, bringing rental income to €73.2 million. The revenue from properties, fully owned Romanian industrial assets and the Bliski office building in Poland, sold during the year is €5.9 million, as compared to €15 million revenue generated in 2023. The service charge income for 2024 was €78.5 million, 5% higher compared to €75 million in 2023. After operating expenses like-for-like net costs in Romania improved by €1.9 million from better occupancies, €2.8 million decrease in net costs in Poland regional properties and €1 million increase in costs in Warsaw properties. We also benefit from decrease in net costs from properties disposed during the year. In addition, we received €6.9 million, €1.9 million higher than €5.0 million in 2023 from other services provided to tenants and partners which included fit-out services, marketing fees and other. Renoma Financial Review continued 48 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Financial Review continued Revenue Share per Country Period ended 31 Dec 2024 Romania 49.8% Poland 50.2% Period ended 31 Dec 2023 Romania 52.1% Poland 47.9% Net Operating Income Share per Country Period ended 31 Dec 2024 Romania 54.0% Poland 46.0% Period ended 31 Dec 2023 Romania 53.0% Poland 47.0% 2 Revenues and Profitability continued Overall operating expenses in our portfolio increased by €1 million to €94.6 million with 87.2% reinvoiced to tenants. In Romania total operational costs were 92.9% recovered, the increase in vacancy spaces in Poland led to only 83.2% of costs to be reinvoiced. The remaining portion of operational expenses not recovered typically relates to vacant spaces that are currently available for lease. Our Net Operating Income (“NOI”) for the full year 2024 reached €143.7 million, this reflects a €3.3 million decrease compared to €147 million in 2023. Excluding the impact from the properties sold during 2024 like- for-like properties recorded a €3.6 million increase, with €6.8 million more NOI generated in Romania, or 10.6% higher and €3.2 million drop in NOI generated in Poland, or 5.1% decrease. 0 30 60 90 120 150 € million NOI – 2023 NOI Change – Poland NOI Change – Romania NOI – 2024 143.7 (2.3) (1) 147.0 Net Operating Income Build Up Year ended 31 December 49 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Financial Review continued 2 Revenues and Profitability continued Adjusted Normalised EBITDA When we assess the ongoing performance of our core operations, we focus on Adjusted Normalized EBITDA as a key metric. This measure excludes non-recurring or non-cash items that wouldn’t reflect our typical business activity, as revaluations, gains or losses from asset sales and unusual expenses. Our adjusted normalised EBITDA for 2024 was €126.2 million, 3.9% lower compared to the 131.4 million in 2023, the decrease was driven primarily by loss in NOI from disposed properties during the year. Adjusted Normalised EBITDA Year ended December 31 2024 €’m 2023 €’m Net Operating Income 143.7 147.0 Administrative Expenses – Recurring (17.5) (15.6) Adjusted Normalised EBITDA 126.2 131.4 Property Valuation We revalue 100% of the portfolio every six months period. On 31 December 2024, on like-for-like basis our portfolio decreased by 1.6%: with 1.3% (€14.3 million) increase in properties in Romania compensated by 4.0% (€58.4 million) decrease in properties from Poland, with a 2.6% decrease (€38.4 million) in Regional properties and 3.0% (€23.6 million) in Warsaw. Total investment in our portfolio during 2024 was €60 million (capex, tenant fitouts and improvements). These movements largely account for the €99.8 million loss in the income statement during 2024. Property Valuation Year ended December 31 2024 €’m 2023 €’m Fair value loss on investment property 99.8 164.9 Income tax expense During 2024, our current income tax expense on a like-for-like basis decreased by €0.5 million, with €7.4 million less capital gain tax and withholding tax paid in 2024, while deferred tax income recorded was €8.0 million, €12.6 million lower than in 2023. IFRS and EPRA Earnings IFRS Earnings is a standard accounting measure that reflects our overall profit or loss. However, it can be impacted by non-cash or one-off costs like property revaluations, gain on bond buy-backs and gain/loss on property disposals. EPRA Earnings adjust for such non-recurring and non-cash items and reflect a relevant measure for real estate companies like ours, providing a clearer picture of our ongoing operational performance. Our 2024 IFRS Earnings were negative €81.6 million (or −31 cents per share), reflecting a significant drop from 2023’s negative €54.1 million (−22 cents per share). This decline is primarily due to loss from sale of investment properties, decrease in share of joint venture earnings and lower revaluation loss recorded. Our EPRA Earnings for 2024 was €56.1 million (21 cents per share), down 8.5% or €5.2 million, from the previous year. This decrease is due to €3.3 million lower Net Operating Income and increased administrative costs of €2.0 million. IFRS Earnings vs EPRA Earnings Total €’m Per share cents IFRS Earnings (81.6) (31)* FV loss on properties 99.8 37 Loss on disposal of investment properties, subsidiaries and related tax 26.7 10 FV loss on financial instrument and debt close out costs 14.7 5 Deferred Tax on investment property (12.9) (5) JVs & Others 9.4 5 EPRA Earnings 56.1 21 * Restated after issue of scrip dividend Finance Costs and Income Year ended December 31 Note to the financial statements 2024 €’m 2023 €’m Finance Cost 10 68.5 57.1 Debt close-out costs 10.2 12.1 – Gain from bond buy-back 10.3 (0.4) (15.8) Income from bank deposits 10.3 (7.7) (3.8) Other finance income 10.3 (4.0) (3.6) Net Finance Cost 68.5 33.9 Our major financing includes bonds and secured loans and other under unsecured financing sources. In 2024, the total finance cost increased by €11.4 million to €68.4 million compared to the prior year. The rise is due to new secured facilities drawn down in late 2023 and in 2024 and high levels of applicable Euribor base rates, thus we recorded €10.0 million more interest expense. We recorded an increase of €4.2 million in interest expense for unsecured facilities as compared to 2023 due to new applicable coupon rate on the New Notes, following the exchange exercise in April 2024, offset by a decrease in debt cost amortisation of €2.9 million. Following the Notes exchange in 2024 we recorded one off costs of €12.1 million, further €2.5 million amortised costs on buybacks offsetting €2.9 million gain on discounted buybacks, while in 2023 we recorded €15.8 million net gain from buyback. We also received income from other sources: • Joint Venture Loans: Interest earned on loans provided to our joint ventures of €1.2 million, until the disposal from July 2024. • Cash Deposits: Higher cash balances throughout the year led to €7.7 million interest income on deposits, €3.9 million higher than 2023. • Other Financial Income: This category saw a rise from €1.3 million in 2023 to €2.6 million in 2024 mainly from charge on consideration receivable on the Warta sale that carries interest of 13%. Share in Joint Venture During 2024 we disposed of our share in joint venture investments in Romania for a total consideration of €61.6 million. Total share of joint ventures results for 2024 was €8.4 million, primarily due to the effect from a property revaluation. 50 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report 3 Assets Assets Note to the financial statements 31-Dec-24 €’m 31-Dec-23 €’m NCA – Investment property 3 2,585.3 2,843.1 CA – Investment property held for sale 35.8 50.4 Total Investment Property 2,621.1 2,893.5 NCA – Investments in joint-ventures 21 4.0 70.1 Cash and cash equivalents 14 333.6 396.3 Other Assets 91.0 85.3 Total Assets 3,049.7 3,445.2 Our Assets: Primarily Real Estate Real estate constitutes the majority of our assets, with investment properties and cash equivalents accounting for over 96.9% of our total value. Investment Property Breakdown (as of 31 December): In 2024 €2.6 billion (2023: €3.0 billion). This total includes both freehold properties (land and buildings fully owned) and properties held for sale. We proactively manage our portfolio by executing sales and reinvesting in development projects. 2024 Property Transactions: We successfully sold a portion of our logistics portfolio for a total cash consideration of €72.4 million, after adjusting for secured loans, having an overall portfolio value of €207 million. The portfolio included five logistics/light-industrial parks with ten facilities in Timisoara, Arad, Oradea, Pitesti and Bucharest. Out of which €1.2 million was received as an advance in 2023 and the remaining €1.0 million was recorded as receivables as of 31 December 2024 and subsequently collected in February 2025. Investing in the Future: Throughout 2024, we invested a significant amount (€63.7 million) in capital expenditures (“CAPEX”) for properties under development, refurbishment and improvements to existing properties, in Poland €26.6 million and €37.1 million in Romania (including €3.5 million in Craiova, property under development in 2024). CAPEX HVAC €4.3m Automations €4.1m Electrical & green energy €0.7m Health & safety €3.5m Operational efficiency €3.2m Common & outdoor areas €3.9m Tenant improvements €43.9m Poland Mixed–used (incl. refurbishment) €4.9m Regional €9.5m Warsaw €10.2m Romania Office €33.0m Residential €0.5m Industrial developments €3.5m Market Impact As a result of market conditions and higher yields, we incurred a net fair value loss on our freehold properties of €99.8 million. Furthermore, a slight loss of €0.8 million was recorded on leasehold properties. At year end we still show a strong cash and cash equivalents balance of €333.6 million, compared to €396.3 million at the end of 2023, demonstrating the financial strength of our balance sheet and our ability to take diverse strategic path. Our investment in joint ventures as of 31 December 2024 is €4.1 million, in a newly incorporated company, Black Sea Business Park SRL, that owns a plot of land in Romania, Constanta area, following the disposal of the entire investments held at the end of 2023. Other assets mainly include trade and other receivables of €27.6 million, equity investments of €8.0 million and consideration receivables from the sale of Warta Tower of €23.8 million with maturity date Q4 2025. Financial Review continued €63.7m €26.6m €37.1m 51 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report 70% 0 500 1000 1500 2000 2500 3000 3500 50% 60% 80% 90% 100% 40% 30% 20% 10% 0% OMV December 2023 2,994.7 JV properties – December 2023 129.0 Investment Property – December 2023 2,865.7 CAPEX Standing 57.5 CAPEX Under Development 6.3 Agency and cash incentive 13.0 (16.8) Non-cash amortisation (15.2) Apartment Disposals (219.7) Investment Property disposed (99.1) Investment Property – December 2024 Fair value adjustment 2,591.8 JV properties – December 2024 7.9 OMV December 2024 2,599.7 1,474.8 1,520.0 129.0 1,390.9 1,187.8 1,195.7 1,474.8 1,404.0 1,404.0 23.1 34.4 3.5 2.8 3.6 9.4 (11.5) (5.3) 7.9 (15.2) (77.1) (22.0) (207.3) (12.4) IP Movement Freehold €’m Financial Review continued Romania Poland 52 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report 4 Liabilities Liabilities Note to the financial statements 31-Dec-24 €’m 31-Dec-23 €’m NCL – Interest-bearing loans and borrowings 14 1,178.2 1,574.8 CL – Interest-bearing loans and borrowings 14 132.6 28.6 Total Interest-bearing loans and borrowings 1,310.8 1,603.4 Deferred Tax Liabilities (including liabilities associated with the assets held for sale) 11.1 118.2 139.3 Other Current Liabilities 68.6 72.7 Other Non-Current Liabilities 33.2 27.2 Total Liabilities 1,530.8 1,842.6 At the end of 2024, the Group’s total liabilities decreased by 16.9%, reaching €1,530.8 million, compared to €1,842.6 million at the end of 2023. This reduction is primarily attributed to a decline in interest- bearing loans and borrowings, which now represent 85.6% of the Group’s liabilities, down from 87% in 2023. Furthermore, deferred tax liabilities fell by €21.1 million, mainly due to a loss from the revaluation of investment properties. Other current and non-current liabilities, including tenant deposits, lease obligations, and various debts, account for a smaller portion (5.5%) of the total liabilities with a slight increase of €1.8 million during the year. 5 Interest-bearing Loans and Borrowings Overview and Select Initiatives The total consolidated debt for the Group on 31 December 2024 was €1,301.8 million (31 December 2023: €1,603.4 million) comprising mainly medium to long-term debt, denominated entirely in Euro, comprising €85.0 million unsecured loans, €509.2 million New unsecured Notes and €716.7 million secured loans. Financial Review continued During 2024 we had several notable events in terms of financing, that led to a decrease in total debt, as: • We exchanged our 2025 and 2026 Notes with an early repayment of €210 million (€142.9 million from 18/25 Notes and €66.6 million from 20/26 Notes) with five and six-year Notes maturing in 2029 and 2030 respectively at 6.25% coupon under new terms and conditions of the new issued Notes; • Subsequently to the exchange, we redeemed additional €65 million unsecured debt (New 24/29 Notes €45 million and 24/30 New Notes €20 million); • We derecognised €97.5 million secured loans following the disposal of subsidiaries holding industrial properties; • In July 2024, we launched a tender offer addressed to the holders of our outstanding Notes under which they were invited to tender their Notes for purchase by the Company for cash. Thus, we purchased €38.2 million of the Notes due 2029 and €45 million of the Notes due 2030 by paying a total price of €80.3 million plus the accrued interest under the purchased Notes. In addition, in order to increase liquidity, during 2024: • In February 2024, we entered a €25 million twelve-year term secured debt facility which was signed with Libra Bank. The facility was drawn in full on 21 February 2024. • We entered into two new seven-year term loans for €42 million in May and €95 million in June with Erste Group secured with office buildings of the Group. The loans were drawn in full on 18 November and 18 December 2024. • In November 2024, we entered into two new ten-year term loans for €30 million and €35 million with Banca Transilvania secured with office buildings of the Group. Both loans are available to use for a period of nine months. It is important to note that, Globalworth has no material debt maturing until 2027, the extension of Helaba €100 million loan is under negotiation. Interest-bearing Loans and Borrowings Profile Our debt comprises unsecured facilities, which accounted for 44.4% (31 December 2023: 58.4%) of the total debt outstanding. Unsecured facilities included the two Eurobonds maturing in 2029 and 2030 accounting for €509.2 million and the €85.0 million facility from the IFC. The remainder debt (55.6%) is secured with real estate mortgages, pledges on shares, receivables, and loan subordination agreements in favour of the financing banks. The weighted average interest rate cost for the Group increased for 2024 to 4.87% (3.70% in 2023) as a consequence of the bond exchange exercise that led to the New Notes being issued under the current market conditions. As of 31 December 2024, the majority of our debt (66.0%) carries fixed interest rates and 20.5% of debt facilities are hedged through interest rate swaps. In the beginning of 2025, the Group continued its focus to decrease the cost of debt by hedging through interest rates swaps additional c.9% of its debt facilities, weighted average interest rate as of February 2025 decreased to 4.75%. The high level of fixed interest rate debt ensures natural hedging to the Euro, the currency in which the most significant part of our liquid assets (cash and cash equivalents and rental receivables) is originally denominated and the currency for the fair market value of our investment property. Therefore, an increase of 100 basis points in the Euribor would result in a higher interest expense of €0.6 million per annum. The New Notes issued and the new secured financing entered triggered increase in the average maturity period of our debt up to 4.9 years (2023: 3.7 years). Interest charges for secured loans are based either on three months or six months Euribor plus a margin. As of 31 December 2024, 13.4% of the outstanding balance is exposed to changes in Euribor (compared to 18.3% at 31 December 2023). 3.00% 2.00% 4.00% 5.00% 6.00% 30 Jun 22 31 Dec 22 30 Jun 23 31 Dec 23 30 Jun 24 31 Dec 24 2.0 3.0 4.0 5.0 6.0 Years Interest rate Weighted average duration to maturity Weighted average interest rate Weighted average interest rate versus debt duration to maturity 53 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Financial Review continued 5 Interest-bearing Loans and Borrowings continued Maturity Profile (by year) of the Principal Loan Outstanding at 31 December 2024 (€ million) During 2024, we repaid: • €5.8 million in bank debt principal amounts; • €142.9 million from 18/25 Notes and €66.6 million from 20/26 Notes through the Bond exchange exercise; • an additional €65 million unsecured debt (New 24/29 Notes €45 million and 24/30 New Notes €20 million); • through the bond buyback exercise, €38.2 million of the Notes due 2029 and €45 million of the Notes due 2030 by paying a total price of €80.3 million plus the accrued interest under the purchased Notes; • €58.4 million of accrued interest on the Group’s outstanding debt facilities, including €28.1 million in relation to the coupon for the Eurobonds of the Company (full annual coupon or accrued interest up to the moment the various events were conducted. Debt Covenants As of 31 December 2024, the Group was in compliance with all of its debt covenants. The Group’s financial indebtedness is arranged with standard terms and financial covenants, the most notable as at 31 December 2024 being the following: Unsecured Eurobonds, RCF and IFC loan • the Consolidated Coverage Ratio, with minimum value of 150% covenant value was aligned for all debt facilities; • the Consolidated Leverage Ratio, with maximum value of 60%; • the Consolidated Secured Leverage Ratio with a maximum value of 30%; and • the Total Unencumbered Assets Ratio, with minimum value of 125% (additional covenant applicable for the Revolving Credit Facility and IFC loan). Secured Bank Loans • the debt service cover ratio (“DSCR”) / interest cover ratio (“ICR”), with values ranging from 120% to 350% (be it either historic or projected); and • the LTV ratio, with contractual values ranging from 45% to 83%. There have been no breaches of the aforementioned covenants occurring during the period ended 31 December 2024. 6 Liquidity & Loan-to-value ratio (LTV) Managing our liquidity has been a key area of focus for the Group. This careful management has carried on throughout this period of higher volatility. As of 31 December 2024, the Group had cash and cash equivalents of €333.6 million (31 December 2023: €396.3 million), of which €21 million was restricted due to various conditions imposed by the financing banks. In addition, the Group had undrawn borrowing facilities of €115 million, out of which €50 million is available until December 2025 and €65 million until August 2025. The Group’s loan-to-value ratio on 31 December 2024 was 38.1%, compared to 42.2% on 31 December 2023, mainly due to significant repayment of our debt. It is important to note that EPRA LTV for 31 December 2024 reached 38.0% (2023: 41.6%). 2025 2026 2028 2027 2029 2030 2031 2032 2033 2034 2035 2036 0 600 500 400 300 200 100 Bonds Unsecured Bank loans 54 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report EPRA NRV Dec. 23 EPRA Earnings Debt close-out costs FV loss on IP portfolio Loss on sale of Property JV impact Other – non EPRA Scrip shares EPRA NRV Dec. 24 6.94 0 2 4 6 8 5.89 Income statement Changes in equity 0.21 (0.04) (0.36) (0.03) (0.09) (0.08) (0.66) Financial Review continued 7 EPRA NRV The EPRA Net Reinstatement Value (“NRV”) is a metric that reflects the estimated long-term value of a company’s net assets, assuming the company keeps its properties and doesn’t sell them. EPRA NRV reached €1,639.03 million at year ended 2024. This represents a 6.4% decrease from €1,750.6 million at the end of 2023. EPRA NRV per share also reflects this decline, going down to €5.89 per share at the end of 2024 (compared to €6.94 per share at the end of 2023). The main factor behind the decrease in EPRA NRV was negative revaluations that occurred throughout 2024 of €99.8 million, loss on sale of investment properties of €26.3 million, debt close-out costs in the amount of €11.7 million, joint venture and other costs of €29.8 million and offset by EPRA Earnings. EPRA NRV €’m € EPRA NRV Dec-23 1,750.6 6.94 EPRA Earnings 56.1 0.21 Debt close-out costs (12.1) (0.04) FV loss on Property portfolio (99.8) (0.36) Loss on sale of Property (26.3) (0.09) Scrip shares – (0.66) Others* (29.5) (0.11) EPRA NRV Dec-24 1,639.0 5.89 * Others include movement in deferred tax liability and change in value of financial instruments. EPRA NRV per Share (€) 55 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Financial Review continued Green Court 8 Cash Flows Cash flows Year ended 31 December 2024 €’m 2023 €’m Operating Profit before Changes in Working Capital 126.5 132.7 Changes in Working Capital (67.2) (45.4) Cash Flows from Operating Activities 59.3 87.3 Cash Flows used in Investing Activities 102.8 (11.0) Cash Flows from/(used) in Financing Activities (225.2) 153.8 Net Increase in Cash and Cash Equivalents (63.1) 230.0 Effect of foreign exchange fluctuations 0.3 2.5 Cash and Cash Equivalents at Year End 333.6 396.3 Note: The totals in the table do not add up due to rounding Our cash flow from operations before working capital changes decreased by 4.7%, totalling €126.5 million in 2024, reflecting the decline in Net Operating Income (“NOI”) for the year. This decline is primarily due to higher interest paid in the amount of €10.5 million, €0.5 million improving collection of outstanding receivables, €1.3 million decrease in advances received for rent and service charges, €4.0 million interest received on cash deposits, decrease in NOI of €3.3 million and €1.3 million from other working capital movements. In 2024, our net cash outflow in investments was €108.5 million. This includes €53.1 million spent on capital expenditures for our properties, netted off by the €100.8 million proceeds from selling investment properties and €58.4 million from net investment in joint ventures and €2.3 million from proceeds from sale of financial assets and other net investments. Cash outflow generated from financing activities reached €225.2 million in 2024. The proceeds from interest-bearing loans and borrowings were €163 million due to drawdown of €25 million from Libra Bank, further €1 million from other secured facility and €137 million from new secured facilities. Also, we repaid part of existing debts, including €350.2 million fixed rate bond (€204.9 million during exchange, further €65 million in June and discounted price of €80.3 million in July) and €13.4 million for the current amortisation bank loans. We paid €13 million costs for the bond exchange exercise, €2.5 million for other secured and unsecured facilities and €1.2 million for other recurring bank charges. Other financing activities in 2024, such as interim dividend payments and lease liabilities, were €7.8 million. 9 Dividends Dividends Year ended 31 December 2024 €’m 2023 €’m Dividends declared 54.4 66.3 Share capital increase – scrip shares (53.5) (65.2) Dividends paid 0.9 1.1 Dividends per Share – Cents 21 29 Globalworth distributes at least 90% of its EPRA Earnings to its shareholders on a bi-annual basis. In 2023, the distributions included the option for a scrip dividend alternative so that qualifying shareholders can elect to receive new ordinary shares in the Company instead of cash in respect of all or part of their entitlement to the dividend. Qualifying shareholders who validly elect to receive the scrip dividend alternative become entitled to a number of scrip dividend shares in respect of their entitlement to the dividend that is based on a price per scrip dividend share calculated on the basis of a discount of 20% to the average of the middle market quotations for the Company’s shares on the five consecutive dealing days from and including the ex-dividend date, the “reference price”. The dividend declared for the six-month period ended 31 December 2023 was 11 cents per share while for six-month period ended 30 June 2024, it was 10 cents per share. Following the election of the scrip dividend, 14.0 million new shares were issued in April and 12.6 million shares were issued in October 2024. Meanwhile, the Group paid a total of €0.9 million as cash dividends, resulting in 98.6% shareholders opting to reinvest in the Company. 56 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report EPRA Select Key Performance Measures Snapshot Our performance under the EPRA guidelines Figures in € million, unless otherwise indicated 2024 2023 Definition Purpose Pages EPRA NRV 1,639.0 1,750.6 EPRA Net Reinstatement Value. Metric making adjustments to the NAV per the IFRS financial statements to provide stakeholders with the most relevant information on the fair value of the assets and liabilities of a real estate investment company, assuming that entities never sell assets and aims to represent the value required to rebuild the entity. 129 EPRA NRV per share (€) 5.89 6.94 EPRA Net Reinstatement Value per share. 129 EPRA Earnings (€ million) 56.1 61.3 Earnings from operational activities. Metric measuring a company’s underlying operating results and an indication of the extent to which current dividend payments are supported by earnings. 113 EPRA Earning per share (€) 0.21 0.25 Earnings from operational activities per share. 113 EPRA Net Initial Yield (“NIY”) (%) 6.0% 5.7% Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, increased with (estimated) purchasers’ costs. A comparable measure for portfolio valuations. 152 EPRA Topped-up NIY (%) 6.8% 6.4% This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent periods and step rents). A comparable measure for portfolio valuations. 152 EPRA Vacancy (%) 12.3% 12.4% Estimated Market Rental Value (“ERV”) of vacant space divided by ERV of the whole portfolio. A “pure” (%) measure of investment property space that is vacant, based on ERV. 152 EPRA LTV (%) 38.0% 41.6% Debt divided by market value of the property. A key (shareholder-gearing) metric to determine the percentage of debt comparing to the appraised value of the properties. 154 EPRA Cost Ratio (including direct vacancy costs) 18.4% 18.0% Administrative & operating costs (including & excluding costs of direct vacancy) divided by gross rental income. Present a consistent baseline from which companies can provide further information around costs. 153 EPRA Cost Ratio (excluding direct vacancy costs) 13.1% 11.0% Administrative & operating costs (including & excluding costs of direct vacancy) divided by gross rental income. Present a consistent baseline from which companies can provide further information around costs. 153 The European Public Real Estate Association (“EPRA”), is a widely recognised market standard guidance and benchmark provider for the European real estate industry. The following performance indicators have been prepared in accordance with best practices as defined by EPRA in its Best Practices Recommendations guide, available on EPRA’s website (www.epra.com). 57 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report We recognise our responsibility to thoughtfully manage the Environmental (“E”), Social (“S”), and Governance (“G”) impacts of our business operations. Fulfilling this responsibility requires a deep understanding of the ESG issues relevant to our business, ensuring we balance and manage them effectively to generate long- term sustainable value for our shareholders and stakeholders. Sustainable Development Review Maintaining our long-term ESG commitments Creating Sustainable Long-Term Value (as presented in “Our Business Model”) Financial Non-Financial Generate long-term sustainable and attractive, risk-adjusted returns through yield and capital appreciation, allowing us to create the capacity to distribute dividends for our shareholders. • Rental growth • Portfolio value appreciation • Sustainable and recurring dividend Create a Group and an environment which people want to work in, do business in, and be associated with. • Invest in sustainable and environmentally friendly buildings. • Create safe and healthy spaces where people want to work and with which they want to be associated. • Assist and improve the communities which we are part of. This forward-thinking, integrated approach allows us to better assess the long term, reduce risk and maximise value for our shareholders and other stakeholders. Globalworth’s ESG Focus Environmental (“E”) Social (“S”) Governance (“G”) • We are dedicated to developing and investing in premium, sustainable real estate that fosters thriving communities and businesses. • We are focused on minimising our carbon footprint, with a clear commitment to achieving significant reductions by 2030. • We strive to attract, motivate, and retain a skilled and dedicated team, fostering pride in being part of the Globalworth family. • We are committed to supporting the communities we are deeply embedded in, with an increased focus on making a positive impact during these challenging times. • Operate by applying the highest standards of governance, and supporting the principles of the QCA Corporate Governance Code, thus providing confidence to our shareholders and other stakeholders. Understanding Our Impact As part of our sustainable development strategy, we prioritise topics that significantly impact our business, influence stakeholder decisions, and are directly linked to our key economic, social, and environmental effects. For this reason, we performed our initial materiality analysis in 2018 based on GRI standards, and since then we have been regularly reviewing this analysis. Our latest update was in 2021/22, where, following the COVID-19 global pandemic outbreak, we considered that a more detailed analysis was required to better understand potential changes in the material topics for our business, and to help us “connect” these topics with the relevant sustainable development goals (“SDGs”). We believe that through our three main pillars of “People, Places and Technology” we can achieve a balance that will result in creating long- term and sustainable value for the Group, our shareholders, our people, our community, the environment, and other stakeholders. BOC 58 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Sustainable Development Review continued Reporting By implementing robust performance monitoring and reporting, we can effectively manage our ESG performance. Accurate measurement is essential, ensuring that our data is detailed, relevant, and transparently communicated. Since 2018, we have been annually reporting the results of our sustainable development activities. In June 2024, we published Globalworth’s “2023 Sustainable Development Report”. This is the sixth such report we have published. The concept of materiality is central to corporate sustainability reporting as it helps organisations identify and prioritise the topics with the most material impacts on the economy, environment, and people, whilst aiding us to align these impacts with the relevant SDGs. For our 2018 and 2020 sustainability review and analysis, which we published in 2019 and 2021, respectively, we conducted our first and second extensive materiality analysis. As part of this process, we reached out to over 330 different stakeholders, the entire Globalworth team, and reviewed sustainable development topics related to our industry from international publications and relevant standards. For the 2023 and 2022 Sustainable Development Reports, Globalworth adopted the new methodology of the GRI Standards (2021) to complete the identification, assessment, prioritisation, and validation of the positive and negative impacts that the organisation creates or may create on the environment, people, and the economy, utilising a four- phased approach. As part of the positive and negative impact identification process, we created an impact universe containing a list of impact areas within the pillars of the environment, social, and economy which are indicative of the impact Globalworth creates through its activities and business relationships. As a result of the above processes undertaken, the following impact areas were grouped into the respective material topics.* Environment Material topics Impact generated UN SDGs Climate stability and air quality P O Waste and resource intensity P O Water and marine resources P O Social Material topics Impact generated UN SDGs Employment P O Health and safety P Socio-economic Material topics Impact generated UN SDGs Innovation of better products and services P Socio-economic convergence P In our efforts to demonstrate further our commitment to sustainable development and access to Green Financing (additional information under the “Capital Markets Review” section of the report), we issued our Green Financing Framework (“GFF”) for which we received a second party confirmation from S&P, one of the leading providers for external reviews in the green bond market. S&P, following their review, confirmed that our Green Finance Framework aligns with Green Loan Principles 2023 and Green Bond Principles 2021. S&P considered the framework as light green based on the project category shades of green, and in consideration of environmental ambitions reflected in Globalworth’s green financing framework. 2024 ratings MSCI ESG Rating A (January 2025) EPRA sBPR Gold award * With respect to the negative impacts, Globalworth could be causing or contributing to the negative impacts through its activities; and/or the impacts are or could be directly linked to its operations or services by its business relationships, even if the Company has not contributed to them. Green Court 59 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Environmental Review Linking our ESG priorities to “People, Places and Technology” Our “Places” Consistent with our commitment to energy-efficient properties, during 2024 we certified or recertified 36 of the properties in our portfolio with BREEAM Excellent, LEED Gold or higher certifications. In Romania, we went through an ample process of recertifying five of our properties with LEED Gold and LEED Platinum while in Poland we recertified 28 properties with BREEAM Excellent and three properties with BREEAM Outstanding. Warsaw Trade Tower, the iconic skyscraper located in Warsaw, has become the third building in our portfolio to achieve a BREEAM certificate at the “Outstanding” level – the highest possible. Overall, as of 31 December 2024, our combined standing portfolio comprised 50 green-certified properties, accounting for 93.7% of our standing commercial portfolio by value. BREEAM accredited properties account for 69.8% of our green-certified standing portfolio by value, with the remainder of properties being holders of other certifications (LEED Platinum or LEED Gold). In addition, our mixed- use property Renoma, which is currently under redevelopment, has been recertified with BREEAM Excellent during 2024. We remain committed to our green goals, aiming for 100% of our commercial portfolio to be green accredited. We are currently in the process of certifying or recertifying five other properties in our commercial portfolio, principally targeting LEED certifications. In addition, in 2024, we maintained our policy of securing 100% of the energy used in our office and mixed-use portfolio from renewable sources. The switch to green energy is part of our broader preparatory actions for nZEB, which also involves other steps, including introducing intelligent metering and implementing FORGE for monitoring. During the year, we successfully recertified all our office buildings in Romania with WELL Health-Safety Rating, which is an evidence-based, third-party verified rating, focusing on the health and comfort of the building users. All of our Romanian office assets have been awarded, since 2022, with the European certification mark “access4you” which focuses on accessibility for people with special needs. As part of our ambitious ESG strategy, we are committed to contributing towards the global efforts to limit global temperature rise by reducing our direct and indirect greenhouse emissions in our operations and value chain. As such, in 2022, we performed a detailed review of how we can improve our footprint, and we set our environmental target to reduce GHG emissions intensity by +40% by 2030 versus our baseline 2019 levels (for Scope 1 and 2) and we committed to measuring and reducing Scope 3 too. In setting this target, we used a science-based approach to align with a 1.5ºC trajectory. These targets were approved and validated by the globally recognised Science Based Targets initiative (SBTi), and will form key stepping blocks to enable Globalworth to deliver on its long-term strategy and ambition to become the first choice in sustainable real estate. Our Performance Impact area Sustainability Performance Measures Unit 2021 2022 2023 2024 Energy Building energy intensity kWh/sqm/year 261.9 236.6 218.5 238.9 GHG emissions Greenhouse gas (GHG) emissions intensity from building energy consumption (Scope 1 and Scope 2 location-based and Scope 3) kg CO2e/ sqm/year 145.2 107.0 87.6 104.7 GHG emissions Greenhouse gas (GHG) emissions intensity from building energy consumption (Scope 1 and Scope 2 market-based and Scope 3) kg CO2e/ sqm/year 60.0 26.0 26.2 18.0 2024 Sustainability Performance Measures are calculated for the Portfolio owned by the Group as of 31 December City Offices 60 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Environmental Review continued Focus on “Technology” In 2024 we continued with the implementation of several technology initiatives in our properties, and we are exploring several others. We hope that these can find further application in our portfolio in due course, thereby improving our services and performance. These include: • Green energy solutions, which are at various stages of implementation in our portfolio, including solar photovoltaic panels converting solar energy to cover our buildings’ requirements with green electricity and electric chargers to power vehicles in our properties. • The Property App, which is focused on providing smart touchless solutions in the property, with emphasis on comfort, safer operation and efficiency, whilst preserving the same mandatory security standards which currently exist. • “Virtual reception” and a visitors’ management platform for a digitised, fast and easy-to-scale check-in process. • We have continued with the implementation of Forge by Honeywell in several of our buildings with the aim to have it operational in all of our buildings by the end of 2027. What can you do with the App Book parking spaces Open entrance barriers Book desks Call lifts Enter garage Notifications Book conference rooms Invite guests Green Horizon 61 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Environmental Review continued Energy optimisation – how does it work? • Models and predicts heating and cooling demand • Learns and adapts based on real-time data • Identifies inefficiencies in the HVAC system • Minimises costs and protects comfort levels BMS captures building data • Climate • Temperature • Occupancy • Energy costs Data is pushed to the Honeywell Forge cloud Data is enriched with outside air temperature and external weather service Optimum settings are calculated • Chillers • Boilers • Fans • Pumps • AHUs • Etc. Optimum settings are pushed back to the BMS BMS sets the equipment to optimum settings to minimise energy costs 2 3 1 4 5 6 62 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Social Review “People”: our team One of our key objectives is for our team to meet the highest standards, and to achieve this (through our Human Resources teams in Romania and Poland), we organise a series of in-house and third-party-led training programme, designed to improve our team’s skillset, knowledge, operational experience, and interaction with our stakeholders. Our approach starts with transparent recruiting, an orientation programme for new employees, continuous staff support and consulting, training, regular feedback sessions and annual performance appraisals. All our team members also receive a wide array of benefits that include, inter alia, private health insurance, and experience and sport activities vouchers. We have dedicated teams dealing with matters related to compliance with health and safety, and other regulations in Poland and Romania where our portfolio is located. We conduct health and safety training for our employees and our tenants, we have developed a tenant manual and undertake regular scenario exercises, including fire drills, to secure the safety of employees and visitors in the event of an emergency. At the end of 2024, our team comprised 274 professionals, most of whom sit in our two main offices in Warsaw and Bucharest. Team members are also located in regional cities in Poland and Romania, Cyprus and the UK. In 2024, 151 women and 123 men worked for Globalworth. “People”: our communities We view our role as increasingly responsible towards the people who work at and visit our properties and the broader community of which we consider ourselves to be an integral part. Our significant footprint in Poland and Romania creates this responsibility for us. Our communities include more than 200k daily workers in / visitors to our properties under normal conditions, with the lives of many more people in the broader community also being touched. In 2024, we maintained our strong focus of giving back to our community and, together with the Globalworth Foundation, we contributed over €400k in more than 29 initiatives in Romania and Poland, having over 44,500 beneficiaries. We contributed €400k+ in more than 29 initiatives in Romania and Poland Benefiting 44,500+ people Initiatives to which we contributed included Ilfoveanu & Badea Cultural Foundation Art School programme The “Art School” project provided free art courses – including painting, graphics, music, writing, and acting – to underprivileged children, offering them the space, materials, teachers, and media resources necessary to support their creative development. At Globalworth Foundation, we firmly believe that art knows no boundaries, and that everyone, regardless of background or circumstance, deserves the opportunity to explore their creativity. In partnership with the Ilfoveanu & Badea Cultural Foundation, we launched “Art School” to bring the magic of art education to over 120 children in rural areas of Argeș county. Between 15 April and 15 June, 2024, these free workshops in drama, music, visual arts, creative writing, and storytelling inspired young minds and nurtured their talents. Through this initiative, we helped empower the next generation of artists and creative thinkers, fostering a love for artistic expression and imagination. Through Wola District for autism The aim of the initiative is to work together for the benefit of people on the autism spectrum and their families, and to raise funds to support the activities of the SYNAPSIS Foundation. Our greatest asset is our team of dedicated professionals, chosen based on merit to ensure the best candidate fills each role, regardless of gender or ethnicity. This exceptional team delivers premium services to our partners, efficiently manages our high-quality portfolio, drives growth, and creates value for our shareholders and stakeholders. 63 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Social Review continued Renasterea Foundation: “Mărțișor to empower”: On 4 March, in recognition of the International Day of HPV Awareness and as part of our Mărțișor to Empower campaign, we provided 150 free medical tests at the Renasterea Foundation clinic for women from the Globalworth community. This initiative took place during our tenant activation for Women’s Day. Renasterea Foundation: “Vieți impletite” programme At Globalworth, we recognised the challenges faced by oncology patients undergoing cytostatic treatments, particularly the emotional toll of hair loss. Through our partnership with Fundatia Renasterea pentru Sanatatea Femeii in the “Vieți împletite” initiative, we sought to honour women’s individuality and their role in society. By providing personalised natural hair wigs, we aimed to offer more than just a cosmetic solution – our goal was to help restore patients’ confidence and resilience throughout their journey. We stood with those fighting cancer, striving to make a meaningful impact on their lives. Children’s Heart Foundation: “Open Your Heart to Children’s Heart” On Valentine’s Day, as part of our Compliment Card campaign, we celebrated love in its most meaningful form – reaching the hearts that needed it most. This initiative supported donations to the Children’s Heart Association / Asociația Inima Copiilor, helping children in Romania born with heart conditions. Each year, approximately 1,500 children require urgent heart surgery. To amplify the impact of our community’s generosity, Globalworth doubled the donations made by our tenants, reinforcing our commitment to this cause. As part of the campaign, we also organised an activation at Globalworth Campus, encouraging our tenants to contribute to the development of the new Pediatric Cardio Surgery section at Marie Curie Hospital. “Casa Bună” Association In Romania, one in six children used to drop out of school too soon, with even higher numbers in rural and disadvantaged communities. This issue often began long before they even stepped into a classroom. Without early education, poverty became a cycle. To break this cycle, Asociația Casa Bună built “Grădinița Bună” – a kindergarten designed to provide preschoolers from Ferentari and Jilava with a safe space to learn, grow, and belong. By 2025, at least 60 children were set to receive daily education, warm meals, and emotional support. Through the Globalworth Foundation, we ensured that the space was fully equipped for learning, play, and care: from furniture for classrooms, common areas, and a multifunctional room, to kitchen and dining area essentials, sanitary equipment for a safe and comfortable environment, and office furniture for daily operations. Ukrainian kindergarten In partnership with DGASMB, the Bucharest Social Assistance Directorate, we took the opportunity to reflect on the three years since the onset of the Ukraine conflict and our ongoing efforts to support refugee families at the PrimoHub Centre, located within the Globalworth BOB building. PrimoHub provided a space for Ukrainian children to continue their education, from kindergarten to primary school. These students engaged in various courses, studying Romanian and English, participated in after-school activities, received tutoring aligned with their school curriculum, and followed their native educational framework under the guidance of Ukrainian teachers. The discussion, held with our partners from UNHCR, UNICEF, and Asociatia Step by Step, focused on the accomplishments achieved and the future strategies for children’s education, with valuable contributions from key partners. Bike service We have organised bicycle services for our tenants. The campaigns took place in May in Krakow, Wroclaw, Warsaw, Gdansk, Katowice and Lodz. As part of the initiative, single-track enthusiasts were able to receive a professional bicycle service. For the love of heart Another initiative organized for Globalworth’s tenant community, which aims to popularise preventive examinations and care for a healthy lifestyle; over 500 people took part in the examinations. Globalworth Charity Days Over the course of 11 years, our annual Charity Days event has been a cherished tradition at Globalworth Foundation. This initiative, which aims to provide access to education and meaningful experiences for children from orphanages and vulnerable families, holds a special place in our hearts. Together with Santa, we prepared workshops and surprises to create the kind of holiday every child dreams of. Serving as Santa’s little helpers once again was both a privilege and a joy. Vacaresti Park Association As part of our tenants’ activation campaign for Earth Day (22 April), we joined forces to plant trees in Văcărești National Park, Romania’s first urban natural park. By coming together as a team, we combined our strengths to support one of our environmental initiatives: enhancing the tree barrier in this vital green space for Bucharest. Văcărești National Park plays a crucial role in the city’s ecosystem, and we were proud to contribute to its preservation. The tree barrier we helped create serves to protect the diverse species of insects, birds, amphibians, and reptiles that inhabit the park, providing them with an additional layer of protection. We are committed to protecting the planet for the wellbeing of our communities and future generations. Together, we made a meaningful impact! 64 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report The Group is committed to the highest standards of Governance and, during 2022, adopted the QCA Code of Corporate Governance for the year ending 31 December 2022 onwards. The QCA Code is the Governance code applied by most AIM-listed companies. Ensuring that an effective corporate governance framework is in place gives confidence to our shareholders and other stakeholders that the Board and the Group are committed to providing high governance standards. We are pleased that due to our efforts in 2024, there were: • No confirmed incidents of corruption, and no actions were taken • No legal actions for anti-competitive behaviour, anti- trust, and monopoly practices • No substantiated complaints concerning breaches of customer privacy and losses of customer data Note: Additional information on the performance of the various Committees in 2024 is available in the Governance section of this Annual Report. The Board Nomination Committee Audit and Risk Committee Remuneration Committee Investment Committee Board of Directors Board of Trustees Sustainable Development Initiatives Governance Review Committed to the highest standards of governance Green Court 65 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Globalworth’s Risk Management Framework Risk management is embedded within our strategy and culture and plays a significant role in the achievement of our business objectives. However, we believe that we have a conservative risk approach as we only accept risks associated with the nature of our business activities. Moreover, the continuous strengthening of risk management is a key element in creating a sustainable business and delivering attractive risk-adjusted returns to our shareholders and value to other stakeholders as part of profitable and sustainable growth. Our risk management framework and related processes focus on the identification, evaluation, formulation of response, monitoring and reporting on identified principal and other financial and non- financial risks, as well as the identification of emerging risks, as explained in further detail in this section of the report. Our risk management strategy does not focus on eliminating risk entirely, but instead on striking an appropriate balance between managing our risks and maximising return from our business opportunities, ensuring a viable, profitable and sustainable business under normal and stressed market conditions. Our risk management approach includes a bottom- up risk management process as well as a top- down risk oversight process, as outlined in the following diagram. Risk Oversight Identify The Board and the Audit and Risk Committee have encouraged the risk ownership concept by business units. Therefore, as part of the bottom-up risk management process, individual business units within our Group are responsible for identifying the risks related to their activities. Identified risks are elevated to the Audit and Risk Committee for overview, comments and feedback. The risk identification process is complemented by the top-down approach, where the Board and the Audit and Risk Committee, through the setting and approval of business strategy, identify potential additions to risks identified by business units, or emerging risks which are being cascaded down to business units for further assessment. As part of the process of identification of risks, emerging risks are considered annually and risks that are identified but not assessed as principal risks are still evaluated and monitored. An example of such emerging risks in recent years is associated with the changes in tenants’ requirements for flexible, sustainable/green efficient and technologically advanced buildings. Details on actions taken continuously by our Group in these areas are provided on pages 67 to 71 of the Annual Report and in the separate Sustainable Development Report for year 2023 which is available on our website. In addition, the Audit and Risk Committee continued frequent communication with the Board and management in order to continue to manage risks collectively and swiftly as these are identified and communicated. Evaluate Once risks have been identified, they are assessed by the responsible business units as to their potential severity of impact on the Group’s performance (a negative impact on financial results) and to the probability of occurrence, that is, risk indexation. Respond Once risks have been identified and evaluated, one or a combination of the following techniques are used to manage each particular risk: • avoid (eliminate, withdraw from, or not become involved in); • control (optimise − mitigate); • sharing (outsource or insure); and • retention (accept and budget). The selection of a particular response strategy depends upon the magnitude of the impact, probability of occurrence, and existing internal and external controls. Risk management by the business units is embedded in the culture of our Group and how policies and procedures are put in place. Monitor The initial risk management strategy may not address all issues as expected. Compliance Oversight Group is monitoring principal and other risks and related policies and procedures including alignment of those policies and procedures with the identified risks. Also, it conducts periodic reviews of internal policies and procedures. Compliance Oversight Group consists of Chairman of Audit and Risk Committee, Group Chief Financial Officer and General Counsel and meets every quarter, reporting to Audit and Risk Committee. The Executive Management and the Audit and Risk Committee encourage the escalation by business units of risk-related matters that may arise from time to time. This is complemented by the oversight of the Audit and Risk Committee, which discusses the risk framework and makes its recommendations to the Board, as considered necessary. Following reporting by the Audit and Risk Committee, the Board reassesses, at each quarterly meeting, whether the previously selected controls are still applicable and effective, and the possible risk level changes in the business environment. Principal Risks & Uncertainties Effective management of our risks T o p - d o w n Ri s k O v e r si g h t B o tt o m - u p R is k M a n a g e m e n t Board Oversight Audit and Risk Committee Senior Management Team Compliance Oversight Group Organisation, Culture, Policies and Procedures Business Environment The Board, represented by the Audit and Risk Committee, is responsible for establishing and maintaining the Group’s system of internal control and for maintaining and reviewing its effectiveness. However, on a day-to-day basis risk is managed by each business unit within the Group’s risk management framework. 66 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Tower Center International 11 5 8 2 12 6 9 3 13 7 10 4 1 Principal Risks & Uncertainties continued In addition, since the emergence of the COVID-19 pandemic, and in part due to the urgency of such risk management, there has been frequent and extensive communication between Group Chief Financial Officer and the whole Board regarding the monitoring of risks related to, or affected by, the pandemic. The Audit and Risk Committee performs an assessment of the internal controls of the Group, which has been in place for the financial year ended 31 December 2024 and up to the date of approval of the Annual Report and Accounts, and in particular the controls over the most significant financial reporting risks. This review was facilitated through the submission by the Company’s Chief Financial Officer of the updated report on controls over identified significant financial reporting risks, as prepared by management. Following its review, the Audit and Risk Committee concluded that the related internal control environment is adequate considering the current size and activities of the Company. Report The Group presents the principal risks profile on pages 67 to 71 of the Annual Report. The diagram on the left portrays our current principal risks assessment in terms of their individual impact on the Group’s future results and the probability of occurrence. The probability of risk occurrence is an estimate, since past data on frequency is not readily available. After all, probability does not imply certainty. The probability of risk occurrence is, by nature, difficult to estimate. Likewise, the impact of the risk, in isolation, is estimated based on the Executive Management’s past experience in the real estate industry. Further, both the above factors can change in magnitude depending on the adequacy of risk avoidance and prevention measures taken and due to changes in the external business environment. Further details on our principal risks are outlined below, linking each risk to our strategic objectives, and explaining our risk mitigation strategies and the rationale for change in risk during the year. Key The following key is used in the table below to highlight the changes in risk exposures during the year ended 31 December 2024: Risk exposure has increased in the current year. Risk exposure has reduced in the current year. No significant change in risk exposure since prior year. Strategic Objectives Strengthen our position in our core markets Preserve and/or protect our operational efficiency Maintain an efficient and flexible capital structure De-risk portfolio Invest in sustainable environments & communities Business Environment Risks 1 Market Conditions and the Economic Environment, particularly in Romania and Poland 2 Changes in the Political or Regulatory Framework in Romania, Poland or the European Union 3 Inflation in Romania and Poland Property Portfolio Risks 4 Execution of Investment Strategy 5 Valuation of Portfolio 6 Inability to Lease Space 7 Counterparty Credit Risk 8 Sustainable Portfolio Risk and Response to Climate Change Financial, Financing & Liquidity Risks 9 Lack of Available Financing and Refinancing 10 Breach of Loan Covenants 11 Changes in Interest and Foreign Exchange Rates Regulatory Risks 12 Compliance with Fire, Structural, Health and Safety or Other Regulations 13 Cyber Security Impact Probability More Less More Less Internal control Exposure 67 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Strategic Objective Impact Mitigation Change from prior year Business Environment Risks 1 Market Conditions and the Economic Environment, particularly in Romania and Poland Negative trends in economic activity, and specifically the real estate markets in Poland and Romania, may affect occupier demand, rental rates and investment valuation in respect of the Group’s properties. The Group is focused on leasing to multinational groups with either moderate exposure to developments in the Polish and Romanian economies and/or with very sound financial standing. The Group also focuses on signing long-term lease agreements with financially sound tenants and that current leases are renewed prior to their expiry for a longer term and at index-linked rental rates, so as to maintain and improve sustainable revenue. 2 Changes in the Political or Regulatory Framework in Romania, Poland or the European Union The Group focuses on property investments in Poland and Romania, and is therefore exposed to political and regulatory framework changes that may impact activities in these markets. Adverse changes in taxation provisions and approach of the tax authorities in the jurisdictions the Group’s legal entities operate in may negatively affect its net results. The Group monitors political or regulatory developments in Poland and Romania through its own resources and third- party information. In cases when changes in regulations occur, appropriate action is taken so as to maintain compliance with applicable regulations. Management believes that both economies continue to have a stable outlook for the medium to long term. The Group, through the Executive Management, the Group Head of Tax and engaging third-party specialist tax advisers on a regular basis in all the jurisdictions where its legal entities operate, monitors very closely the upcoming changes in taxation legislation and ensures that all steps are taken for compliance and tax efficiency of its Group structure. Through regular tax compliance monitoring and conservative policies in this area the Group ensures that the risks associated with potential additional, unexpected tax assessments are minimised. Moreover, the Group is closely monitoring its compliance with changes in EU member states’ legislation (mainly for Poland, Romania and Cyprus). 3 Inflation in Romania and Poland Inflation expectations in the industry economics from the countries we operate impact rental rates, occupancy levels and property valuations. We evaluate the potential impact of inflation over property valuation and over property’s operating expenses. Most of our leases are triple net therefore any increase in service charges is passed to tenants. Furthermore, we index our lease based on prevailing inflation rates thus mitigating negative impact on the rental revenue. Principal Risks & Uncertainties continued Strategic Objective Impact Mitigation Change from prior year Property Portfolio Risks 4 Execution of Investment Strategy Poor execution of the Group’s strategy of investing in high- quality properties at sufficiently attractive valuations would affect the Group’s objective of maximisation of NAV and EPS. In addition, inability to deliver pre-leased office space to tenants by the agreed dates due to delays caused by contractors or their possible default could lead to potential cost overruns, penalties and loss of revenues. The Group’s management team have a proven track record of acquiring high-quality properties, most of them at a discount to their fair market values. The team remains in close contact with leading European real estate specialists with presence in its market of focus so as to get immediate access to potential opportunities. The team takes the lead in negotiations with the sellers of properties and puts in place safeguards (involvement of legal, financial, tax and technical third-party reputable and experienced due diligence advisers) and ensures related agreements are concluded within a short period of time. Risks for delay in completion of properties under development are passed on to the main contractors with whom fixed-cost turnkey contracts are signed and from whom good execution guarantees are received. A portion of amounts payable to them, usually ranging from 5% to 15% of contracted value, are retained from the contractor’s monthly certified works until after the successful completion of the construction works. Only experienced, reputable and financially sound contractors are selected for the construction of properties under development, which are supervised by our project management teams in Romania and Poland. Further, significant penalties are stipulated in the related construction contracts to minimise any loss due to the delayed completion of the development works. Key Strengthen our position in our core markets Preserve and/ or protect our operational efficiency Maintain an efficient and flexible capital structure De-risk portfolio Invest in sustainable environments & communities Increased Reduced No significant change 68 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Principal Risks & Uncertainties continued Strategic Objective Impact Mitigation Change from prior year Property Portfolio Risks continued 5 Valuation of Portfolio Any error or negative trend in valuations of properties would significantly impact the results (NAV and EPS) of the Group. Changes in occupational trends (e.g. requirement for more flexible space and building management technologies) can impact future revenue generating capacity and hence impact the valuation of properties. The Group involves reputable third-party valuation specialists to measure the fair value of the investment property portfolio at least twice a year. Management closely monitors the valuation approach for each of its properties and the assumptions used in the valuation. The Group strives to preserve and enhance property values through its property management and leasing initiatives, and where applicable its development strategy. In addition, our property development and leasing strategy anticipates the future needs of our tenants, especially those experiencing continuous growth and additional lease area requirements. Our Group is implementing an investment programme in the latest building management technologies for upgrading its existing buildings and consequently the services offered to its tenants. Strategic Objective Impact Mitigation Change from prior year Property Portfolio Risks continued 6 Inability to Lease Space Potential loss of revenues leading to inability to maximise the EPS and FFO available for distribution of dividends to shareholders. Vacancy contributes to higher unrecoverable costs due to no service charge income. Potential departure from market norms and rates as regards to headline rent and incentives to be provided to new and existing tenants in order to secure new leases or extension of existing leases. The Group has a proven ability to attract tenants to its properties even before the inauguration of the construction works for properties under development. The Group maintains a relatively low level of vacant space on completed properties, through the effective management of its portfolio, by its very experienced leasing and asset management teams based in Poland and Romania. In addition, the leasing teams cooperate closely with leading real estate specialists in their respective local markets to access new opportunities. The Group’s Leasing Policy ensures that the key terms offered in new and/or extended lease agreements comply with the procedures established in order to prevent any significant departure from market norms and rates. 7 Counterparty Credit Risk Loss of income may result from the possible default of tenants. Possible loss of deposits held with banks. The Group has a diversified tenant base (over 700 tenants), the vast majority of which are reputable, blue- chip multinational and local groups of very good to excellent credit standing. Guarantee cash deposits or bank guarantee letters are received from all tenants for the credit period agreed in lease agreements. In accordance with the Group’s Treasury Policy guidelines, over the short term and until used in property investments, cash is placed with banks with investment grade rating and any exceptions to this must be approved by the Executive Management and the Board. Key Strengthen our position in our core markets Preserve and/ or protect our operational efficiency Maintain an efficient and flexible capital structure De-risk portfolio Invest in sustainable environments & communities Increased Reduced No significant change 69 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Principal Risks & Uncertainties continued Strategic Objective Impact Mitigation Change from prior year Property Portfolio Risks continued 8 Sustainable Portfolio Risk and Response to Climate Change Overall impact on our portfolio and business due to: • Increase in service charges affecting attractiveness of our properties to tenants and thus profitability of our portfolio. • Reduce the quality of working conditions for the people working in or using our properties. • Increase maintenance requirement of our properties affecting the long-term sustainable value of our portfolio. • Changes in tenants’ requirements for sustainable green efficient and technologically advanced buildings may lead to loss of current or potential new tenants to competition. The Group is committed to responding to the effects of climate change and its Sustainability Policy covers the impact of the Group’s operations and processes, the long-term environmental performance of the properties owned and developed, as well as the reduction of energy consumption and greenhouse gas emissions. The Group, therefore, actively invests in properties which are either certified as environmentally friendly or have the potential to be classified as such following our own initiatives. Globalworth principally target properties which have BREEAM Very Good / LEED Gold, or higher green certification or with the potential to achieve this, and at 31 December 2024 had 51 green certified properties valued at c.€2.4 billion, accounting for 93.7% of our standing commercial portfolio by value. In addition, all of our office properties in Romania and Poland have received the WELL, Health-Safety certification. As part of our ambitious ESG strategy, in 2022, we set our environmental target to reduce GHG emissions intensity by +40% by 2030 versus our baseline 2019 levels (for Scope 1 and 2) and we committed to measuring and reducing Scope 3 too. These targets were validated by the globally recognised Science Based Targets initiative (“SBTi”), and will form key stepping blocks to enable Globalworth to deliver on its long-term strategy and ambition to become the first choice in sustainable real estate. Strategic Objective Impact Mitigation Change from prior year Property Portfolio Risks continued 8 Sustainable Portfolio Risk and Response to Climate Change continued Moreover, the Company conducted a climate change transition and physical risks and opportunities assessment, across its value chain, in alignment with TCFD recommendations. The results of the risk assessment have influenced its strategic decisions and the Company is now working on the development of a low carbon transition plan. The Company recognises that climate change and extreme weather events such as extreme temperatures, extreme winds, floods, sea level rise etc., might pose an extra challenge to the value chain, from upstream to downstream, leading to higher costs and interruptions, disruptions or accidents in the facilities and business operations. In April 2024, in our efforts to demonstrate further our commitment to sustainable development and access to Green Financing, we issued our Green Financing Framework (“GFF”) for which we received a second party confirmation from S&P, one of the leading providers for external reviews in the green bond market. Key Strengthen our position in our core markets Preserve and/ or protect our operational efficiency Maintain an efficient and flexible capital structure De-risk portfolio Invest in sustainable environments & communities Increased Reduced No significant change 70 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Principal Risks & Uncertainties continued Strategic Objective Impact Mitigation Change from prior year Financial, Financing & Liquidity Risks 9 Lack of Available Financing and Refinancing This would negatively affect the Group’s ability to execute, to the full extent, its investment plan, maintain an optimal capital structure, and potentially make refinancing of maturing debt difficult. The Group’s management team holds frequent meetings with current and potential equity and debt investors, as well as continuous discussions with leading global, European, and local institutions in connection with its financing requirements. Since admission, the Group has raised c.€6 billion in equity and debt (including new loan facilities and rolled-over loan facilities on the acquisition of subsidiaries, as well as available facilities) to meet its financing requirements. In April 2024 the Group successfully exchanged €450 million 3.00% senior notes due in 2025 and €400 million 2.95% senior notes due in 2026 to notes due in 2029 and 2030. The amount of €209 million was repaid upfront and the new notes of €307 million due in March 2029 and of €333 million due in March 2030, both carrying 6.25% interest rate, were issued. The result of this exchange is an improved debt maturity profile, reaching to five years on weighted average basis, of the Group providing significant flexibility to execute its growth strategy. During 2024, the Group also has signed and drawn a secured facility of €25 million and subsequently other secured facilities for the amount of €0.9 million. During the second quarter of 2024, the Group secured €42 million facility which was signed in May 2024 and was drawn in November 2024 €95 million facility which was signed in June 2024 and was drawn in December 2024. During the fourth quarter of 2024, the Group secured two facilities in total amount of €65 million which were signed in November 2024 and are available to draw until August 2025. Strategic Objective Impact Mitigation Change from prior year Financial, Financing & Liquidity Risks continued 10 Breach of Loan Covenants A breach may negatively affect the Group’s relationship with financing banks, may have going concern implications, and affect, negatively, its ability to raise further debt financing at competitive interest rates. The Group monitors on a regular basis its compliance with debt covenants and follows a conservative financing policy, ensuring that sufficient debt covenants headroom is available. Key Strengthen our position in our core markets Preserve and/ or protect our operational efficiency Maintain an efficient and flexible capital structure De-risk portfolio Invest in sustainable environments & communities Increased Reduced No significant change 71 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Principal Risks & Uncertainties continued Strategic Objective Impact Mitigation Change from prior year Financial, Financing & Liquidity Risks continued 11 Changes in Interest and Foreign Exchange Rates Additional financing costs may be incurred as a result of interest rate increases. Forecasting financing costs could become less accurate. Significant fluctuations, especially in the Polish Zloty to Euro and the Romanian Leu to Euro exchange rates, may lead to significant realised foreign exchange losses. The Group monitors on a regular basis the cost of its debt financing and has a preference towards fixed rate, longer term, financing, as depicted by the fact that 62.9% of outstanding debt as of February 2025 bears fixed interest rates and has a weighted average period to maturity of 4.9 years. As a result, the impact of possible increases in interest rates for the medium term is minimal. The Group continuously explores hedging options to replace variable interest rates with forward fixed rates to get the benefit of inverted yield curve and this includes in the money forward swaps to reduce weighted average cost of debt. The Group focused on hedging its outstanding loans at lower rates as compared to prevailing EURIBOR rates. Therefore in 2024 we have hedged Erste €85 million loan for 5 years, BCR €44 million for 6.7 years, Banca Transilvania €55 million loan for 5 years, the €85 million IFC loan and continued the process in 2025 with hedging Erste €95 million loan for 7 years and BCR 50% of the €42 million loan for 6.7 years. As a result, the overall fixed to total outstanding debt ratio reached to 95.6%. ECB interest rates decreased by 75 basis points and indicated similar trend in the future. Same approach is also declared by FED and other central European and regional banks. The Group actively monitors, with the help and expertise of the Group Treasurer, on a daily basis, the fluctuations in Romanian Leu to Euro and the Polish Zloty to Euro exchange rates and strives to minimise the period between the issuance and settlement of invoices to tenants and by its contractors/suppliers and the potential related, realised foreign exchange losses that may result. Strategic Objective Impact Mitigation Change from prior year Regulatory Risks 12 Compliance with Fire, Structural, Health and Safety or Other Regulations Non-compliance with related regulations in Poland and Romania may affect our reputation with existing and potential tenants. It may lead to loss of right to operate our properties, and may also lead to severe legal implications for the directors of the property- owning subsidiaries. The Group has a specialised department dealing on a daily basis with matters related to compliance with such regulations in Poland and Romania, where the Group’s properties are located. Apart from in-house expertise, the Group also engages external consultants, when required, on specialised matters related to its compliance with these regulations. Appropriate actions are taken as soon as a potential threat for non-compliance with such regulations is identified. 13 Cyber security Cyber-attacks and data breaches have exponentially increased, causing the same level of reputational damage due to data loss. Possible IT systems failure may result in disruption of business. The Group maintains for critical IT equipment high availability using advanced hardware solutions in order to minimise the possible impact from critical hardware failure. The Group signed insurance policies and real-time adaptive countermeasures, along with increasing the frequency of offline backups for all company data. IT departments are monitoring continuously all security related parameters of the systems in place. Key Strengthen our position in our core markets Preserve and/ or protect our operational efficiency Maintain an efficient and flexible capital structure De-risk portfolio Invest in sustainable environments & communities Increased Reduced No significant change 72 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Integral to our culture is adhering to the highest standards of ethical business practices. Introduction to Governance 73 Corporate Governance Report 74 The Board of Directors 77 Directors’ Report 79 Audit and Risk Committee Report 82 Analysis of Audit Work 83 Nomination Committee Report 86 Remuneration Committee Report 87 Investment Committee Report 89 A4 Business Park West Link Governance BOC 73 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Introduction to Governance Chair’s letter Martin Bartyzal Chair of the Board 2024 marks a turning point for Globalworth. The hard work and commitment of our employees, management team and my fellow Directors have not only resulted in another resilient performance, but also the delivery of key strategic objectives. I must extend my thanks to all my colleagues for their efforts. By keeping true to our financially conservative approach, we have successfully navigated the economic and market stresses of the past few years. As a result, Globalworth is well placed to move forward in the years ahead, as the leading office investor in CEE. Improving market sentiment From inflation (and interest rates) reaching levels not seen across much of Europe for a generation to the pandemic, working from home and geopolitical conflict, the commercial real estate sector has faced multiple headwinds in recent years. While the Ukraine- Russia conflict sadly continues, there are signs certain pressures may be easing. Inflation fell during the year. So too, did interest rates. More workers are returning to offices in Romania and Poland, so that numbers at the workplace are getting closer to pre-pandemic levels year by year. The foundations appear to be in place for market sentiment to improve. Improving sentiment is one thing, seeing this reflected in market fundamentals another and, due to lag effects, likely to take time. Transaction volumes have therefore remained relatively low with signs of renewed activity in some sub markets.. This also impacts the availability of finance and the appetite of investors and lenders to participate in the sector. Delivering our strategic goals Yet despite the still uncertain market backdrop, we achieved our key strategic objectives. Chief among these was the refinancing of two large bonds that were due to mature in 2025 and 2026 in an exchange offer that saw approximately 85% of existing note holders elect to roll over into new bonds. By extending and strengthening our debt maturity profile at competitive rates, the exercise has delivered what it set out to achieve. We view the successful completion of what was a complex refinancing in still challenging conditions as testament to the quality of our business and assets and our financially conservative approach. The importance we place on sustainability played its part too. The year under review saw further progress made towards ‘future proofing’ our assets in terms of sustainability. Properties with high sustainability credentials attract tenants looking to reduce their own carbon footprints and so improve occupancy rates; they secure finance more easily from institutions that increasingly include sustainability in their investment criteria; and they can generate efficiencies and savings for the Group. Our focus on sustainability is not only right for the environment, but also right for the long-term success of the business. Strengthening our balance sheet and enhancing our liquidity position were two other objectives that we delivered on during the year. Both are examples of our financially conservative approach, and both were enhanced following the divestment of non-core logistic and light industrial assets in Romania. We were able to divest these assets at a time when transaction levels remained low because of the quality of the properties themselves and because, as with our other core market in Poland, Romania continues to grow at a relatively high rate and therefore remains attractive and open for business for investors. Strong governance remains at the front of the Board’s mind, and our commitment in this regard continues to be reflected in our ethos and by practical initiatives such as the establishing of a working group during the year, comprising the chair of the Audit & Risk Committee, the CFO and our General Counsel, to oversee the ongoing stress-testing of our dynamic risk management framework. This continued focus on prudent risk management goes hand in hand with our goals of delivering growth and fostering trust with a view to achieving value for shareholders. You can read more about our approach to corporate governance in the Corporate Governance Report on pages 74–76. Cautiously optimistic Our priority for the year ahead is to further optimise our operations, while providing outstanding services to our tenants in both our core markets. Thanks to the progress we have made in 2024, we enter 2025 with a solid balance sheet, an improved debt profile and an enhanced liquidity position. Together with tentative signs of recovery in the market, I am cautiously optimistic for the year ahead and I look forward to continuing to work with all our people to take the Company forward for the benefit of all our stakeholders. 74 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Corporate Governance Report The Directors support high standards of corporate governance. The Board continues to assess its governance through the application of the QCA Code of Corporate Governance (the “QCA Code”) and reports against the QCA Code for the year ending 31 December 2024. The Group’s commitment to strong corporate governance and risk management remains central to the business. The QCA Code was revised in November 2023 with an implementation timetable that means the revised code would first apply to the Group for the year ending 31 December 2025. The revised QCA Code is constructed around ten broad principles and a set of disclosures grouped under three broad headings: deliver growth; maintain a dynamic management framework; and build trust. During 2024, we have reviewed the revised QCA Code to ensure that we remain in compliance ahead of formal implementation. Board of Directors Introduction As at 31 December 2024, the Board comprised the chair, who is an independent non-executive director, one executive director and eight other non- executive directors (of which six are considered to be independent within the meaning of the QCA Code). Board activities during 2024 During the year, the Board’s activities included: • Monitoring 2024 performance against the approved budget. • Approving the 2023 Annual Report and Accounts. • Approving the 2024 half-year results. • Approving the declaration of interim dividends in accordance with the Articles. • Approving the 2025 budget. • Reviewing the status of the principal risks and progress with the implementation of any mitigation plans. • Receiving regular reports from Chairs of the Committees on matters discussed. • Receiving updates on regulatory developments. • Reviewing the Board composition and annual evaluation process. Chair The chair of the Board is Martin Bartyzal. Senior independent Director Andreas Tautscher holds the role of senior independent director. Directors Directors’ Duties and responsibilities The roles of Chair and Chief Executive are separate. The Chair leads Board meetings and Board discussions and has responsibility for the Board’s overall effectiveness in directing the Company and corporate governance. The Chief Executive is responsible for the achievement of the Group’s strategic and commercial objectives, within the context of the Group’s resources and the risk tolerances laid down by the Board. The Directors are responsible for the determination and oversight of the Company’s investing policy and strategy and have overall responsibility for the Company’s activities, including the review of its investment activity and performance, and the activities and performance of the Management Team. Each of the Directors is committed to their role and has sufficient time available to meet their Board responsibilities. The Board periodically reviews its policies, processes, information, time and resources to ensure that it is able to function effectively and efficiently. Details on the profiles and experience of the Executive and Non-Executive Directors are set out on pages 77–78 of the Annual Report. Committees of the Board The committees of the Board are the Audit & Risk Committee, the Remuneration Committee, the Investment Committee and the Nomination Committee. The composition of each Board committees remained unchanged during the year. The composition and the terms of reference of each of the Audit & Risk, Remuneration, Nomination and Investment Committees, and their work during the year, are provided in the respective reports for each Committee on pages 82–89 of the Annual Report. Committee meetings may be attended by non-members by invitation from the relevant Chair. Attendance by non-members is recorded in the relevant committee minutes. Committee meetings of the Board are convened, when appropriate, to approve ad hoc matters between quarterly Board meetings, subject to authority levels, and comprise any two Directors (of which one should always be independent and the majority of which must not be resident in the UK for tax purposes). City Offices 75 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Stakeholder Engagement A report on shareholder communications is considered at each quarterly Board meeting. Regular trading updates are posted on the Company’s website with commentary on significant events in the evolution of the Company’s portfolio and performance. The Company’s senior management and its broker maintain regular dialogue with institutional shareholders, feedback from which is reported to the Board. In addition, Board members – led by the Chair – are available to answer shareholders’ questions at any time, and specifically at the Annual General Meeting (AGM). The company secretary is available to answer general shareholder queries at any time during the year. The Board monitors activity in the Company’s shares. Collectively, the team commits considerable energy to planning and implementing the asset management of each of our assets to ensure that our buildings remain suited to our tenants’ needs both today and in the future. We believe that being a good landlord is about creating great communities for our tenants and other users. We consider investment in energy-efficient properties as a business advantage, as it allows us to give back to local communities, our investors, our tenants, our partners and the people who work in or live nearby our buildings: • local communities benefit from reduced carbon emissions generated from the use of the property. • our tenants benefit from lower energy costs, positively impacting the profitability of their operations. • those working in our buildings benefit from improved conditions thanks to temperature control and better flow and quality of air (which can also lead to improved productivity). • our partners benefit by assisting us to develop, maintain and operate a green portfolio according to the respective specifications of each property. • our investors benefit through the creation of long- term sustainable value in the portfolio. With regard to the Globalworth workforce, we encourage open and constructive discussions throughout the Group and operate a regular employee survey, the results of which help us understand how we can best provide a supportive workplace with career opportunities that enrich experience, develop skill sets and promote wellbeing. We also have regular town hall meetings and hold off- site team building events from time to time to which all employees are invited. Workforce Policies and Practices The Company is committed to conducting its business in an ethical manner, with integrity and in line with all relevant laws and regulations. The Group has in place a number of policies and procedures including policies and training on anti-bribery and corruption, whistleblowing, information security and GDPR. All employees are made aware of the Group’s policies on employment and this understanding is refreshed on no less than an annual basis. Employees also receive training appropriate to their roles and responsibilities throughout the year. During the year, and in line with the Board’s commitment to high standards of integrity compliance, the Board reviewed the Group’s written policies and procedures to ensure they remained proportionate and appropriate. Board Meetings and Directors’ Attendance The number of meetings of the Board of Directors attended by each Director, as applicable, during the year ended 31 December 2024 is set out below. Director Quarterly Board Meetings Ad hoc Board Meetings Board Meetings Total Dennis Selinas 4/4 14/18 18/22 Martin Bartyzal 4/4 18/18 22/22 Andreas Tautscher** 4/4 9/18 13/22 Richard van Vliet 4/4 14/18 18/22 Norbert Sasse 4/4 15/18 19/22 Panico Theocharides 4/4 18/18 22/22 David Maimon 4/4 15/18 19/22 Piotr Olendski 4/4 18/18 22/22 Daniel Malkin 4/4 18/18 22/22 Favieli Stelian 4/4 18/18 22/22 Total Number of Meetings 4 18 22 ** Observer only (due to the restrictions in the Articles on attendance from certain geographical locations) at 5 additional ad hoc board meetings Where a Director was unable to attend a Board meeting, they were separately briefed on the business of the meeting and provided any views beforehand. There were also a number of Board committee meetings during the year which were quorate with two directors in attendance. Corporate Governance Report continued 76 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Corporate Governance Report continued Board induction, Training and Development On joining the Board, new members receive an induction on their appointment to the Board which covers the activities of the Group and its key business and financial risks, the terms of reference of the Board, and its Committees, Group integrity compliance policies and practices, the AIM Rules, and the latest financial information about the Group. The Board ensures that they keep their skills up to date. They are made aware of accounting, regulatory, governance and GDPR changes via papers to the Board, presentations and external documents. An annual review of compliance with the AIM Rules is also performed and an annually-updated statement of compliance with the AIM Rules can be found on the AIM Rule 26 page of the Company’s website. All Directors have access to the advice and services of the Company Secretary, who is responsible to the Board for ensuring that Board procedures are followed and that applicable rules and regulations are complied with. The Company Secretary reports directly to the Chair on governance matters. Directors are also entitled to seek independent advice in relation to the performance of their duties at the Company’s expense, subject to having first notified the Chair. Nomination Committee and Board evaluation The Nomination Committee consists of three independent non-executive directors and is chaired by Daniel Malkin. The purpose of the committee is to consider the composition, skills and succession planning of the Board. The Consortium, through its ownership of Zakiono and Growthpoint Properties Ltd have the power, as set out in the Articles, to appoint a certain number of directors. The Board formally considers on an annual basis its effectiveness as a Board: its composition, diversity and how effectively members work together to achieve objectives. As part of this evaluation, it considers the combination of skills, experience and knowledge in relation to both the Board itself and also its committees. The Board considers that it has an appropriate balance of skills and experience in relation to the activities of the Company. The chair evaluates the performance of each of the directors on an annual basis, taking into account the effectiveness of their contributions and their commitment to the role. The performance and contribution of the Chair is reviewed by the other directors. This formal evaluation is conducted by the company secretary circulating questionnaires seeking quantitative and qualitative feedback and reporting the outcomes to the appropriate Board members. An evaluation of the performance of the Board members has been undertaken. The performance of the chair of the Board was also evaluated by the other directors. The result of the evaluation carried out was that all directors’ performance is in line with the expectations set out at the point of their appointment to the Board. Independence evaluation The Board considers the independence of each member of the Board at each quarterly Board meeting and is of the view that Martin Bartyzal, as Chair, continued to demonstrate objective judgement during the year. In addition, the Board considers that the majority of the Board comprises non-executive directors who are independent of the Company and free from any relationship or circumstances which are likely to impair, or could appear to impair, the exercise of their independent judgement. Notwithstanding each circumstance set out below, the Board believes that there is continuing empirical evidence to demonstrate that each of the following Directors demonstrates independence in conduct, character and judgement: Martin Bartyzal (who was appointed in April 2020 pursuant to the right of Zakiono to appoint a specified number of directors according to its percentage shareholding in the Company), David Maimon (who sits on the advisory Board of Aroundtown SA, which is a member of the Consortium and an indirect substantial shareholder in the Company), Richard Van Vliet (who was originally appointed pursuant to Growthpoint’s right to nominate a Guernsey based director), Andreas Tautscher (appointed in December 2021 pursuant to Zakiono’s right to nominate a Guernsey-based director), Piotr Olendski and Favieli Stelian (each of whom was appointed in December 2021 pursuant to the right of Zakiono to appoint a specified number of directors according to its percentage shareholding in the Company), Daniel Malkin (who was appointed in December 2021 pursuant to the right of Zakiono to appoint a specified number of directors according to its percentage shareholding in the Company and is an independent director at Aroundtown SA, which is a member of the Consortium). In addition, the Board believes that they can each be considered to be independent for the following reasons: none of them has any cross-directorships or significant links with any other directors through involvement in other companies or bodies (other than Mr Van Vliet as a non-executive of a Growthpoint investment company but he has no other professional or personal connections with any of Growthpoint’s directors, officers or employees; and Mr Maimon and Mr Malkin who sit on different boards at AroundTown SA). Tenure and re-election of Directors In accordance with the Company’s Articles, Non- Executive Directors shall retire from office annually and may offer themselves for re-election by shareholders, except for: Martin Bartyzal, Piotr Olendski, Daniel Malkin and Favieli Stelian (each appointed pursuant to the right of Zakiono to appoint a specified number of directors); Norbert Sasse and Panico Theocharides (each appointed pursuant to the right of Growthpoint Properties Ltd to appoint a specified number of directors); Andreas Tautscher (appointed pursuant to Zakiono’s right to nominate a Guernsey-based director); and Richard van Vliet (appointed pursuant to Growthpoint’s right to nominate a Guernsey- based director). At the next AGM, David Maimon, Non-Executive Director, is required to retire from office and offer himself for re-election and he will therefore stand for re-election at the forthcoming AGM. In addition, Dennis Selinas, CEO, is required to retire from office and offer himself for re-election and he will therefore also stand for re-election at the forthcoming AGM. The Board has reviewed each of their skills and experience and is recommending their re-elections to shareholders. Diversity We believe in respecting individuals and their rights in the workplace. Further details are provided on page 62 of the Annual Report. 77 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report The Board of Directors Martin Bartyzal Independent Non-Executive Director & Chair of the Board Appointed 23 April 2020 Skills and Experience Mr Bartyzal has over 25 years of international experience in finance and banking in Central and Eastern Europe. He has broad experience in structured financing, capital markets, corporate finance, and risk management across sectors in the CEE region and has worked on a number of projects with major real estate companies in Central and Eastern Europe. Martin held various positions in corporate and investment banking at Deutsche Bank in the CEE region and also managed the business of Deutsche Bank in the Czech Republic as Chief Country Officer between 2009 and 2018. He holds a Master’s degree from the Economic University in Prague and is a member of the Czech & Slovak Chapter of YPO. Norbert Sasse Non-Executive Director Appointed 27 February 2017 Skills and Experience Mr Sasse has nearly 30 years of experience in real estate and corporate finance. Norbert is the Group Chief Executive Officer of Growthpoint Properties (GRT), South Africa’s largest REIT. He was instrumental in growing its portfolio to over ZAR 160 billion (c.€9bn), holding investments in South Africa, Australia, CEE and the UK. Prior to GRT he spent 10 years with EY Corporate Advisory and Investec Corporate Finance. He is also a Chartered Accountant. Panico Theocharides Non-Executive Director Appointed 14 April 2023 Skills and Experience Panico is Group Head of Investments at GRT and has over 20 years’ experience in the real estate, advisory and investment banking industries. Prior to joining Growthpoint Panico worked for five years as an independent property advisor and previously was Head of Property Advisory, Corporate Finance at Investec in South Africa. Before that Panico was the Joint Chief Executive Officer of Annuity Properties Limited, a South African focused REIT that was listed on the Johannesburg Stock Exchange. Dennis Selinas Group CEO Appointed as an Executive Director 21 November 2022 and as Group CEO 1 January 2023 Skills and Experience Mr Selinas has extensive experience in the financial and property industries of more than twenty years. He has multi-disciplinary expertise (Executive Management, Operational & Financial Restructuring, M&A Advisory, Private Equity, Trading, Derivatives Structuring) in several asset classes (Property, Distressed Debt, Fixed Income, Precious Metals) across varying types of institutions (Listed Property Companies, Private Equity Funds, Investment Banks, Hedge Funds), in several diverse jurisdictions (South Eastern Europe, China, Brazil, Middle East & Western Europe). He started his career trading fixed-income derivatives at the Bank of Montreal and moved to M&A with Lazard London after graduating from London Business School. He has held senior positions at Argo Capital Management and Charlemagne Capital and has been involved in all aspects of property investment, including acquisition, development, portfolio disposals, financing, asset management and restructuring in the retail, office, and residential sectors. Richard van Vliet Independent Non-Executive Director Appointed 27 February 2017 Skills and Experience Mr van Vliet is qualified as a Chartered Accountant in South Africa, England and Wales, with over 35 years of professional experience. Richard has been a Guernsey resident since 1997 and is Managing Director of Cannon Asset Management Limited. He is Chairman of The Cubic Property Fund, holds various Board positions on companies and investment funds exposed to property, equity and alternative investments, and sits on operational Boards of the subsidiaries of the LSE-listed Stenprop Limited. Previously he worked in South Africa at Price Waterhouse and was sole proprietor of an audit practice in Johannesburg. Committee Key A Audit and Risk Committee N Nomination Committee R Remuneration Committee I Investment Committee Chair Member R I N A R 78 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report The Board of Directors continued David Maimon Independent Non-Executive Director Appointed 28 May 2020 Skills and Experience Mr Maimon serves as member of the Advisory Board of Aroundtown SA and Grand City Properties S.A., and is a Supervisory Board member at TLG immobilien AG – all public companies traded on the Prime Standard of the Frankfurt Stock Exchange. As member of such Advisory Boards, he provides expert advice and assistance to the board of directors. In the past, David was the President and CEO of EL AL Airlines from 2014 to 2018. Prior to that, he was EVP of Commercial & Industry Affairs, Sales & Marketing and Customer Service in EL AL Airlines and served as a Director in various commercial companies such as Leumi Gemel Ltd, Hever and Sun D’Or International Airlines. Andreas Tautscher Senior Independent Director (Non- Executive) & Chair of the Audit & Risk Committee Appointed 6 December 2021 Skills and Experience Andreas Tautscher is an experienced Financial Services former executive who now focusses on acting as an independent director for listed and private funds, as well as other regulated businesses. He is currently a Director and Chairman of Audit Committee for MJ Hudson PLC, an AIM listed provider of services to alternative Asset Managers. He also sits on the boards of Doric Nimrod Air 1, 2 and 3, which are LSE-listed aircraft leasing funds. From 1994 until 2018, Andreas was a senior executive at Deutsche Bank and was most recently CEO of Channel Islands and Head of Financial Intermediaries for EMEA and LATAM. He has experience across the full spectrum of funds, trust and banking services in most of the major financial centers. He also sat on the UK Regional Governance Board of Deutsche and the EMEA Wealth Management Exco. He has also served on local government advisory committees and was for 6 years a Non-Executive Director on the Board of Virgin Group. Andreas’s first career was in the oil industry as a Geologist before moving to PricewaterhouseCoopers where he qualified as a Chartered Accountant in 1994. Piotr Olendski Independent Non-Executive Director & Chair of the Remuneration Committee Appointed 6 December 2021 Skills and Experience Piotr Olendski is currently serving as Management Board Member and Chairman of the supervisory boards of several Polish companies in the renewable energy sector. Prior to this, he was a Managing Director in PZU SA in charge of property and casualty corporate insurance and Deputy Chairman of the Supervisory Board of PZUW SA (a subsidiary of PZU). Prior to PZU, Mr Olendski worked for 19 years for Deutsche Bank Polska SA, including acting as Management Board Member responsible for investment banking for 7 years. Daniel Malkin Independent Non-Executive Director Appointed 27 February 2017 Skills and Experience Daniel Malkin is an independent director at Aroundtown SA. He is also the co- founder and managing director at SIMRES Real Estate SARL. Previously he was an independent Director and member of the audit committee at Grand City Properties SA and, before that, he served as an independent Investment and Fund Manager of fixed income investment funds at Excellence Investment Bank and on the board of directors of several other Luxembourg companies. He holds a BA in Business Administration. Favieli Stelian Independent Non-Executive Director & Chair of the Investment Committee Appointed 6 December 2021 Skills and Experience Favieli Stelian has over 25 years of international experience in real estate, renewable energy, business, finance and accounting. Today living in Romania, he is the Managing Partner of Nofar Energy. From 2010 until the end of 2021, he was the CEO of Shikun & Binui Romania (listed on the stock exchange in Israel). Prior to that, Mr Stelian was a director or manager of several Israeli companies both in Israel and Romania. Mr Stelian has a Master’s degree in Law from Bar-Ilan University, specialising in capital funds, intellectual property, international commerce. He also has a Bachelor’s degree in Business Administration and is a certified public accountant. Committee Key A Audit and Risk Committee N Nomination Committee R Remuneration Committee I Investment Committee Chair Member R R A A A I N N I 79 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report The Directors present their Annual Report and the audited consolidated financial statements of the Group for the year ended 31 December 2024 Directors’ indemnities The Company maintains a directors’ and officers’ insurance policy for the benefit of its Directors, which applied throughout the year and remains in force at the date of this report. There are also third-party indemnity provisions in place for the Directors in respect of liabilities incurred as a result of their office, as far as is permitted by law. Investing Policy The Group’s investing strategy focuses on generating attractive risk-adjusted returns, made up of a combination of yield and capital appreciation, by investing in a diversified portfolio of properties. Key highlights of the Company’s Investing Policy are presented below: Profile of Underlying investments • focus on commercial properties (existing or to be developed); • geographically located in Central Eastern Europe with a primary focus on Romania and Poland; • most of the income to be derived from multinational corporates and financial institutions; and • euro-denominated, long-term, triple net and annually indexed leases, with corporate guarantees where possible. Investment themes • distressed investments; • acquisition of unfinished or partially let commercial buildings at prices below replacement cost; • restructuring; • acquisition of real estate owned by financial institutions or others seeking to restructure their balance sheets through monetisation; and • developments with pre-lettings from high- quality tenants. The complete Investing Policy of the Company can be found on its website under Investor Relations/AIM Rule 26 disclosures and on page 155 of the Annual Report. Results and Dividends The results for the year are set out in the Consolidated Statement of Comprehensive Income on page 91 of the Annual Report. In respect of the year ended 31 December 2024, the Company has already distributed an interim dividend of €0.10 per share in October 2024 and has also declared an interim dividend of €0.09 per share in March 2025. This is equivalent to a total of €0.19 per share in total for the year ended 31 December 2024, and in each case, was made to holders of shares at the respective record dates for each such interim dividend. In respect of both interim dividends, the Company offered a scrip dividend alternative whereby qualifying shareholders were able to elect to receive ordinary shares of no par value credited as fully paid instead of their entitlement to the cash dividend. Going Concern As disclosed in note 1 of the Consolidated Financial Statements, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the consolidated financial statements as the Company expects to have access to adequate financial resources to continue in operational existence for the foreseeable future. Supply of information to the Board, Delegation and Supporting Committees The Board meetings are the principal source of regular information for the Board, enabling it to determine strategy and to monitor performance and compliance. Areas of importance to the Board and to Globalworth’s business influence features of the Company’s governance framework, and this is illustrated in part by the Committees which support the Board and which are each delegated a specific area of focus. Clarity surrounding the responsibilities of each Committee is ensured through Board-approved Terms of Reference. Monitoring of delegated matters is supported by formal reporting channels. A representative of the Investment Adviser, the Group CEO, Group CFO, as well as other senior executives, attend each quarterly Board meeting, thus enabling the Board to discuss fully and review the Company’s operations and performance. For Board Committees, there is a personal account from the non-Executive Director who chairs each Committee at the next Board meeting following each Committee meeting. These mechanisms are in addition to Committee minutes, written reports and agreed key performance measures to monitor financial and non-financial performance. Each Director has direct access to the Company Secretary and may, at the expense of the Company, seek independent professional advice on any matter that concerns them in the furtherance of their duties. Investment Adviser Under the Investment Advisory Agreement, the Company has appointed the Investment Adviser, a wholly owned subsidiary of the Group, subject to the overall control and supervision of the Board of the Company, to act as investment adviser. The Investment Adviser has no authority to act for or represent the Company (or any other member of the Group) in any other capacity. The appointment is on an exclusive basis. The Investment Adviser is obliged to advise in respect of potential and actual investments of the Company in pursuit of the Company’s Investing Policy, subject to any applicable investment restrictions and having regard to any investment guidelines. Investment advice and opportunities are presented for consideration/ approval to the Investment Committee, or directly to the Board, if above certain thresholds or otherwise deemed desirable or appropriate. Subject to any applicable law, the Investment Adviser complies with all reasonable instructions issued by the Investment Committee or the Board, if above certain thresholds (so long as these are not outside the Investing Policy as set out on the Company’s website under Investor Relations/AIM Rule 26 disclosures or contrary to the exclusivity of the Investment Adviser in relation to the Company’s investment activities). The Investment Adviser is entitled to fees as approved by the Board, following recommendation by the Remuneration Committee of the Board. As noted above, at quarterly Board meetings the Investment Adviser summarises its activities, proposals and achievements and the Non-Executive Directors review the performance of the Investment Adviser in relation thereto. Having considered the portfolio performance and investment strategy, the Board has agreed that the interests of the shareholders as a whole are best served by the continuing appointment of the Investment Adviser on the terms agreed. Directors’ Report 80 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Directors’ Report continued Substantial interests At 31 December 2024 and 24 March 2025, the Company had been notified that the following shareholders had substantial interests (3% or more) in the issued share capital of the company: At 24 March 2025 At 31 December 2024 Number of Shares % of issued shared capital of the Company Number of Shares % of issued shared capital of the Company Zakiono Enterprises Ltd 169,586,516 60.9% 169,586,516 60.9% Growthpoint Properties Ltd 82,350,873 29.6% 82,350,873 29.6% Oak Hill Advisors 13,162,406 4.7% 13,162,406 4.7% Directors’ interests At 31 December 2024 and 24 March 2025, the Company had been notified that the following shareholders had substantial interests (3% or more) in the issued share capital of the company: Number of shares held 2024 2023 Dennis Selinas – – Martin Bartyzal – – Norbert Sasse 126,502 114,286 Richard van Vliet – – Panico Theocharides – – David Maimon – – Andreas Tautscher – – Piotr Olendski – – Daniel Malkin – – Favieli Stelian – – Lumen & Skylight 81 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Directors’ Report continued Auditors The auditors, Ernst & Young Cyprus Limited, have indicated their willingness to continue in office. Accordingly, a resolution for their reappointment will be proposed at the forthcoming AGM. Power to Buy Back Shares The Company has the power to buy back shares in the market, the renewal of which power is sought from shareholders on an annual basis at the AGM, and the Board considers on a regular basis the exercise of those powers. During the year ended 31 December 2024, the Board did not exercise its power to buy back shares in the market. At the 2024 AGM, the Directors were given power by the shareholders to make market purchases of Ordinary Shares representing up to 14.99% of its issued capital at that time, being 39,890,533 Ordinary Shares. This authority will also expire at the 2025 AGM and it is proposed that the renewal of the authority will be sought. Further details relating to share capital, including movements during the year, are set out in note 21 of the financial statements on page 128. Annual General Meeting The AGM of the Company will be held on 23 June 2025 at 09.00 am British summer time at Fourth Floor, Plaza House, Admiral Park, St Peter Port, Guernsey, GY1 2HU. Statement of Directors’ Responsibilities The Directors are responsible for preparing the Directors’ Report and the Consolidated Financial Statements in accordance with applicable law and regulations. The Directors are required to prepare consolidated financial statements for each financial year in accordance with International Financial Reporting Standards (IFRS) and applicable law. The Company continues to report under IFRS as adopted by the European Union (EU). The consolidated financial statements are required by law to give a true and fair view of the state of affairs at the end of the year and of the profit or loss for that year. In preparing these consolidated financial statements, the Directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and • prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for ensuring that the Company maintains proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Company and to enable them to ensure that the consolidated financial statements comply with the Companies (Guernsey) Law 2008, as amended. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. The Directors confirm to the best of their knowledge that so far as each of the Directors is aware, there is no relevant audit information of which the Company’s auditor is unaware, and each has taken all the steps he or she ought to have taken as a Director to make himself or herself aware of any relevant information and to establish that the Company’s auditor is aware of that information. Approved by the Board of Directors and signed on behalf of the Board on 24 March 2025. Martin Bartyzal Director 24 March 2025 Green Court 82 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report In last year’s letter, I highlighted how ‘future proofing’ our debt position was a priority for the business. One year on, thanks to the hard work of our team and notwithstanding continued market uncertainty, we have successfully achieved this strategic goal. Audit and Risk Committee Report Chair Letter for Audit & Risk Committee Andreas Tautscher Chair of the Audit and Risk Committee Significant reduction in debt In terms of what ‘future proofing’ looks like in practice, firstly we have reduced our total debt exposure. In April 2024, we completed an exchange offer which involved holders of existing €850 million notes that were due to mature in 2025 and 2026 swapping their holdings for new notes totalling €640 million. In all, Globalworth repaid €210 million of debt following the exchange. We also redeemed an additional €65 million of unsecured debt and derecognised a further €97.5 million of secured loans following the disposal of our light industrial properties in Romania. Our leverage ratio now stands at 38.1% compared to 42.2% as at 31 December 2023 in line with our long-term objective to keep the Group’s loan-to-value (LTV) ratio at or below 40%. The average maturity period of our debt has been lengthened too – from 3.7 years as at 31 December 2023 to 4.9 years at 31 December 2024. We now have no material debt maturing until 2027. In addition, we executed a significant refinancing of our bank loans, and we also refinanced at the asset level – historically Globalworth has been financed at the Group level with funding then channelled down to individual projects. By broadening our funding base to include asset level finance from banks, not only have we helped reduce Group debt by €300 million, but Globalworth is now less reliant on bonds and financial markets for its funding. We also increased the proportion of our debt that is floating as opposed to fixed rate based. Our debt exposure has been reduced and diversified, putting the business on a solid footing. The Group’s lower debt levels, broadened funding base and improved mix of floating rate and fixed interest debt are also expected to have a positive impact on Globalworth’s debt rating. This is used by banks when making lending decisions and so can be expected to result in a lower cost (and increased availability) of debt for the Group going forward. High-quality asset base That we were able to achieve all the above in difficult markets is largely down to the quality both of our asset base and of our team, who have worked tirelessly to ensure we get the best out of our properties. Prospective tenants are attracted to best-in-class real estate that meets ever-higher sustainability standards. Our portfolio is comprised of such high-quality assets. Voids are lower, occupancy rates are up. So too, are yields. All are key criteria for lenders when making funding decisions. Voids, occupancy rates and yields are also key factors when valuing properties. While these have all moved in the right direction during the year, the lack of transactional activity in the marketplace due to still subdued market sentiment has meant the overall valuation of our portfolio is lower year-on-year. Uncertainty and tensions remain, notably the ongoing conflict in Ukraine, as well as lingering concerns over inflation, interest rates and the business environment in Europe. With the above in mind and having completed our refinancing programme, the finance team is focused on ensuring that our internal controls and systems are as robust as they can be, that they are comprehensively stress-tested and that our compliance regime is fully mapped out. A working group comprised of myself, our CFO and our General Counsel has been established to oversee this process. The year ahead The year ahead will see our ‘future proofing’ of the business move on from our debt position to our internal controls and risk management processes. The Committee will focus on overseeing this work to ensure Globalworth is ideally placed to capitalise on the market recovery when it comes. Spektrum Tower 83 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Analysis of Audit Work Structure and Composition The Audit & Risk Committee comprises four independent Non-Executive Directors: Andreas Tautscher (Chair), David Maimon, Daniel Malkin and Richard van Vliet. The Chair of the Committee is appointed by the Board, and the members are appointed by the Board, in consultation with the Chair of the Committee. The terms of reference of the Committee state that it should comprise at least three independent Non- Executive Directors. The profiles of the Chair and other members of the Committee, including their relevant experience and date of appointment, are presented in the Board of Directors section of the Annual Report (pages 77 and 78). The role of the Committee includes the following: Financial Reporting • monitoring the integrity of the consolidated financial statements and any formal announcements regarding financial performance; • reviewing and reporting to the Board on the significant issues and judgements made in the preparation of the Group’s published financial statements, preliminary announcements and other financial information having regard to matters communicated by the independent auditors; and • assessing whether the Annual Report and financial statements, taken as a whole, provide the information necessary for shareholders to assess the Company’s performance, business model and strategy. Controls and Safeguards • reviewing the Company’s arrangements for its employees to raise concerns, in confidence, about possible wrongdoing in financial reporting or other matters and ensuring that these arrangements allow proportionate and independent investigation of such matters and appropriate follow-up action; and • considering annually whether there is a need for the Company to have its own internal audit function. External Audit • reviewing the effectiveness of the external audit process and the auditor’s independence; • considering and making recommendations to the Board on the appointment, reappointment, replacement and remuneration of the Company’s independent auditor; • developing and implementing a policy on the engagement of the external auditor to supply non- audit services; and • reporting to the Board, identifying any matters in respect of which it considers that action or improvement is needed and making recommendations as to the steps to be taken. Further details of the Committee’s formal duties and responsibilities are set out in the Committee’s terms of reference, which can be found on the Company’s website. Activities of the Committee During the year ended 31 December 2024 and up to the date of this report, the Committee has been active in the following areas, presented below under the three key areas of focus of financial reporting, controls and safeguards, and external audit: Financial Reporting • reviewed the Annual Report and consolidated financial statements for the years ended 31 December 2023 and 31 December 2024 prior to their approval by the Board; and • reviewed the Interim Report and unaudited interim consolidated financial statements for the half year ended 30 June 2024 prior to its approval by the Board. The Committee has had regular contact with the Management during the process of preparation of the Annual Report and consolidated financial statements and the auditor during the audit thereof. In planning its work and reviewing the audit plan with the auditor, the Committee took account of the most significant issues and risks, both operational and financial, likely to have an impact on the Group’s financial statements and selected the most significant issues impacting the Company’s financial statements and Annual Report disclosures, as presented in the table on page 84, together with the Committee’s response thereon: Globalworth Square 84 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Analysis of Audit Work continued Significant Financial Reporting Matters Considered Audit & Risk Committee Response Investment Property Valuations Valuations for investment property, property under construction and land bank are prepared by external valuers. The valuation of the investment property is inherently subjective, requiring significant estimates and assumptions by the valuer. Errors in the valuation could have a material impact on the Group’s net assets value. Further information about the portfolio and inputs to the valuations are set out in notes 3 and 4 of the consolidated financial statements. The Board and the Committee discuss the outcome of the valuation process and the details of each property on a semi-annual basis. The management liaises with valuers on a regular basis and meet them on a semi-annual basis prior to the finalisation of the portfolio valuation. The external auditor has access to the external valuers and comments on the key assumptions used in the valuations performed and movements on property values. The Committee receives a detailed written report from Ernst & Young (“EY”) presented to the Committee upon finalisation of the audit fieldwork. Revenue Recognition The Committee understands the importance of recording accurately the revenue generated as a result of the rental contracts the Group has entered with tenants of its properties and acknowledges the complexities inherent in the calculation and presentation of lease incentives, which encompass rent fee reductions, fit- out contributions, and cash contributions. This includes the correct accounting under IFRS of lease incentives and any other special clauses contained in lease agreements. The Committee is updated by the Auditor annually on the results of the specific audit procedures performed in this area. During the year ended 31 December 2024, the Committee discussed with management and the auditors the complexities involved in the lease agreements regarding recognition of the lease incentive and any other special clauses contained in lease agreements., in accordance with IFRS 16 “Leases” and IFRS 15 “Revenue”. Controls and Safeguards Reviewed the risk matrix used to identify and monitor the significant risks encountered by the Group. Considered whether there is a need for an internal audit function. The Committee has not identified to date an imminent need for an internal audit function, however, it continues to evaluate this requirement on a regular basis. During 2024, the Committee established a working group, comprising the chair of the Audit & Risk Committee, the CFO and our General Counsel, whose purpose is to monitor the effectiveness of the risk management system operated by the Company by way of periodical review of certain policy areas. 85 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report External Audit Held regular meetings and discussions with the external auditor: • At the planning stage of the audit for the year ended 31 December 2024, the Committee held a meeting with the auditor in November 2024 at which the draft audit plan was presented by the auditor, reviewed and discussed. In addition, a discussion was held regarding the risks on which the audit would be focussing. The auditor explained that the risks the audit would focus on were the following: – valuation of investment property whether in use or under development; – recognition of rental income and impact of valuation adjustments: lease incentives and other special clauses; and – risk of misstatement due to fraud and error (associated to the valuation of investment property risk). • Also, at the end of the audit, at the reporting stage, before the approval of the Company’s consolidated financial statements and Annual Report for the year ended 31 December 2024, the Committee discussed with the auditor the work performed under the key areas of focus identified at the audit planning phase and the results of the auditor’s work. • In addition, in early March 2025, the Committee held a meeting with the external auditor and discussed the findings from their audit of the consolidated financial statements for the year ended 31 December 2024, prior to publication of the preliminary results for the year ended 31 December 2024. • Also in March 2025, the Committee held a video call with the external auditor to discuss in detail the audit findings and the draft auditor’s report, following the conclusion of their audit fieldwork for the year ended 31 December 2024, prior to submission of the draft Annual Report to the Board for formal approval. Reviewed the Effectiveness of the External Auditor and Recommended its Reappointment to the Board For the year ended 31 December 2024 the Committee reviewed the effectiveness of the external auditor. This was facilitated through: the completion of a questionnaire by the relevant stakeholders (including members of the Committee and key financial management of the Group); interviews with finance staff; and a review of the audit plan and process for the year. In addition, as outlined above, the Committee discussed with the external auditor in early March 2025 their preliminary findings on the audit of the consolidated financial statements for the year ended 31 December 2024. Furthermore, as also outlined above, the Committee discussed with the external auditor later in March 2025 their final findings on the audit of the Annual Report and consolidated financial statements for the year ended 31 December 2024 and their draft audit opinion thereon. Local statutory audits of individual subsidiary companies are also required in some jurisdictions in which the Group operates. EY Romania, EY Poland and EY Cyprus carry out these audits in Romania, Poland and Cyprus, respectively. Following this review, the Committee recommended to the Board that Ernst & Young Cyprus Limited be reappointed as external auditors for the year ending 31 December 2025. For any questions on the activities of the Committee not addressed in this report, a member of the Audit & Risk Committee remains available to attend each annual general meeting to respond to such questions. Audit Fees and Non-Audit Services The table below summarises the remuneration of Ernst & Young Cyprus Limited and other entities of EY during the years ended 31 December 2024 and 31 December 2023: Audit fees €’000 Non-audit fees €’000 20241 2023 2024 2023 Audit of financial statements 850 860 – – Other non-audit services – – 2652 98 Total 850 860 265 98 1. The table above includes pre-approved fees for 2024, for which services are to be performed and expenses to be recorded in the financial statements of the year ended 31 December 2025. 2. The non-audit fees include €185 thousand charged for the issuance of comfort letter related to the new 24/29 and 24/30 Notes. The Committee has reviewed the level of non-audit fees of the external auditor for the year ended 31 December 2024 and has considered that they are in line with the Group’s level of activity, and concluded that they relate to permissible non-audit services under the auditor’s independence and other related professional standards. Andreas Tautscher Senior Independent Director (Non-Executive) & Chair of the Audit & Risk Committee Analysis of Audit Work continued 86 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Nomination Committee Report Chair letter for the Nomination Committee Our role at the Nomination Committee is to ensure that Globalworth has a Board and senior management team that have the qualities required to take the Company forward, deliver sustained performance for the benefit of all stakeholders and achieve our long-term objective to become the leading office investor in CEE. With no changes to the leadership of the Group during the year under review, the Nomination Committee’s focus in 2024 was centred around assisting the Board in its annual assessment of the Board’s effectiveness, composition and skillset as well as succession planning at both the Board and senior management team levels. Effective leadership and Succession planning The Board recognises that, to function effectively, it needs at all times to act as a forum where ideas are exchanged freely, issues and strategies are debated constructively and where groupthink is avoided. To foster this environment, the Board requires a membership with a good overall balance of skills, experience, backgrounds and independence. Supported by the Nomination Committee, the Board regularly carries out a review of the Board’s membership. The review includes a performance assessment, both at an individual and collective level, to determine whether the Board continues to provide effective leadership for the Group. We continually review the anticipated needs of the business going forward and the skills that will be required to meet these. Our aim is to be always in a position to act quickly should the need arise. Following the review undertaken during the year, the Board is satisfied that the Directors provide the leadership required, as demonstrated by the oversight role it played in the Company’s successful refinancing, a key strategic goal for 2024. Looking ahead In terms of the year ahead, the Nomination Committee will continue to support the Board in its ongoing work to ensure Globalworth has the leadership it requires, both today and in the future, to deliver sustained performance for the benefit of all stakeholders. Daniel Malkin Chair of the Nomination Committee Quattro Business Park 87 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Remuneration Committee Report Chair letter for the Remuneration Committee 2024 largely saw a continuation of the themes in economic and commercial conditions of the previous year. And yet, as was also the case in 2023, Globalworth has delivered another resilient performance, both financially and operationally, and at the same time has achieved key strategic goals, most notably the successful refinancing of its listed debt. Once again, the progress made during the year is down to the efforts of all the team at Globalworth. With this in mind, I would like to take the opportunity to thank all employees for the contributions they have made over the course of the year, particularly those I have not, as yet, had the opportunity to thank in person. Staff pay The dedication and skills of our employees drive our success, and we remain committed to balancing our wish to motivate and retain them with the interests of all our stakeholders. For the second year in a row, the fixed component of staff salaries was increased to help mitigate the higher cost of living. While inflation in both our core countries of Romania and Poland is lower year-on-year it nevertheless is still at relatively high levels, so we are pleased to be able to partially help our people navigate the high inflationary environment. Supporting our employees is the right thing to do for our people and for the Company. It helps us to retain the talent pool within the organisation which is key to delivering sustained growth for the Group over the long term. Key performance metrics In 2023, the Remuneration Committee helped develop tailored key performance indicators (KPIs) for performance-related pay (in addition to basic pay) for management below Board level, such as those who supervise the various departments of the business. The aim of the exercise was to ensure the interests of managers are aligned with Globalworth’s overall strategic objectives as well as the interests of all our stakeholders. For example, sustainability forms part of the KPIs both directly in terms of targets set and indirectly in terms of the benefits to metrics, such as occupancy rates, that can be reaped by ensuring our properties have high sustainability credentials. In recognition of the ever-changing markets and needs of the business, we committed to reviewing, and if necessary refining, the metrics and incentives each year so that they remain relevant and appropriate at all times. In line with the above, during the year, the Committee oversaw a review and, where deemed necessary, made changes. For example, a number of 2023’s key performance metrics had related to the refinancing initiatives and, with this having been successfully achieved in the first half of 2024, for the rest of the year, performance metrics had a more operational focus. As part of the review process, therefore, the Committee worked closely with management to evolve the KPIs to cover new strategic initiatives. The timing of the refinancing meant that the review of performance metrics took place later in the year than would otherwise have been the case. It is the intention that goals will be set earlier in the coming years and also that these will strike more of a balance between annual and medium-term targets. Looking ahead 2025 for the Committee will largely be more of the same. We will continue to review all KPIs so that strong performance is rewarded and that top talent within our business is retained, both of which are in line with our goal to be the employer of choice for property professionals in Romania and Poland. Composition of the Committee During 2024, the Remuneration Committee comprised four independent Non-Executive Directors: Piotr Olendski (Chair of the Committee), Martin Bartyzal, Favieli Stelian and Richard van Vliet. Responsibilities of the Committee The Remuneration Committee has as its remit, amongst other matters, the determination and review of the fees payable to (and the terms of any performance or incentive plans of) GIAL, the Company’s subsidiary, and the emoluments of the Executive Directors and other senior employees of the Company, including the setting of performance thresholds, and the setting of any vesting periods (in each case, taking such independent advice as it considers appropriate in the circumstances). In addition, the Remuneration Committee reports at least annually to the Board in relation to its activities and recommendations. The complete details of the Remuneration Committee’s formal duties and responsibilities are set out in its terms of reference, which can be found on the Company’s website. Directors’ Remuneration Policy Directors’ emoluments comprise a fee or salary-based compensation plus, in the case of the Executive Director, dividends in his capacity as preference shareholder of GIAL. Piotr Olendski Chair of the Remuneration Committee 88 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Summary of Group’s Remuneration Policy Following a review of the Group’s remuneration policy during 2023, new formalised, detailed and tailored key performance indicators (KPIs) were devised for performance-related pay for executive management, in addition to basic pay. Bespoke and focused performance metrics and incentives for management below Board level were also put in place with the support of the Remuneration Committee and with input, insofar as was appropriate, from the chair of the Audit and Risk Committee to ensure alignment with the Company’s financial goals, and also keeping in mind the interests of shareholders. Remuneration Committee Report continued Directors’ Emoluments The emoluments of the Directors are a matter for the Board, considering the recommendations received from the Remuneration Committee. No Director may be involved in any decisions as to his own emoluments. During the year ended 31 December 2024, the emoluments of the Directors were as follows: 2024 Company Subsidiaries Fees €’000 Salary1 €’000 Dividends2 €’000 Non-cash benefits1,3 €’000 Total €’000 Total emoluments €’000 Dennis Selinas − 100 415 23 538 538 Martin Bartyzal 97 − − − 97 Richard van Vliet 65 − − − 65 Andreas Tautscher 75 − − − 75 Piotr Olendski 72 − − − 72 Daniel Malkin 72 − − − 72 David Maimon 65 − − − 65 Favieli Stelian 72 − − − 72 Total 518 100 415 23 538 1,056 1. Paid by GIAL. 2. Dennis Selinas received dividends in his capacity as a preference shareholder of GIAL, the amount of which depended on the performance and profitability of GIAL. 3. Paid by GAM. There is an appropriate balance between fixed and variable remuneration, and between variable remuneration based on short-term and longer-term performance. Fixed remuneration includes base salary and benefits. Variable remuneration includes an annual bonus. The key objectives of the Group’s remuneration policy remain to strongly align Group employee and shareholder interests; to underpin an effective pay- for-performance culture; and to support the retention, motivation and recruitment of talented people. 2023 Company Subsidiaries Fees €’000 Salary1 €’000 Dividends2 €’000 Non-cash benefits3 €’000 Total €’000 Total emoluments €’000 Dennis Selinas − 100 230 11 341 341 Martin Bartyzal 75 − − − 75 Richard van Vliet 50 − − − 50 Andreas Tautscher 58 − − − 58 Piotr Olendski 55 − − − 55 Daniel Malkin 55 − − − 55 David Maimon 55 − − − 55 Favieli Stelian 55 − − − 55 Total 403 100 230 11 341 744 Piotr Olendski Chair of the Remuneration Committee 89 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Investment Committee Report Chair letter for the Investment Committee With no new major investments made during the year, 2024 saw us continue to invest in our existing portfolio of prime real estate in Romania and Poland to ‘future proof’ our properties and ensure they provide tenants with the best-in-class facilities with high ESG ratings. Thanks to the hard work of our teams on the ground, by year end more than 94% of our standing portfolio achieved an Excellent or above rating from BREEAM or Gold and above from LEED. These are not just “nice-to-have” certifications. High sustainability ratings have positive implications for business performance. Energy efficient properties located close to good infrastructure and key transport hubs that offer good quality services for the tenant’s employees are in high demand, both from tenants who have their own sustainability targets to meet and from lenders who are increasingly incorporating ESG factors into their lending criteria. The work we have put into optimising our existing assets therefore played its part in the successful execution of our refinancing programme in the first half of 2024, a key strategic goal for the year. With this exercise completed and following the disposal of some non-core assets, Globalworth is now strongly placed to continue with our asset optimisation programme in the year ahead and at the same time evaluate opportunities that may arise to acquire assets at attractive prices. Though challenges remain both in the wider business environment and in the commercial real estate market, inflation and interest rates are lower than they were a year ago, while more workers are returning to offices as the pandemic-triggered working from home phenomenon continues to unwind. We are optimistic that, eventually, the more positive backdrop will be reflected in the overall sector’s key metrics, such as occupancy rates and rental growth. Until a recovery takes hold, however, investment themes centred around acquiring distressed assets in the marketplace or real estate owned by financial institutions or others seeking to restructure balance sheets will likely continue to be the focus. Favieli Stelian Chair of the Investment Committee When the right property in the right location becomes available at the right price, the Committee will perform its key role of evaluating the asset and proposed terms to ensure these match our investment criteria. Until then, the Investment Committee will continue to focus on the responsibilities it has been discharging for much of the year under review, notably overseeing and monitoring the Group’s capital expenditure on refurbishments and other development work that meet or exceed the thresholds set out in the delegated authority framework. In tandem with this, the Committee will closely monitor the performance of all our properties. This way, we can ensure that Globalworth continues to supply our tenants with the high-quality real estate they are accustomed to. Tower Center International 90 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report UniCredit Campus Financial Statements We are committed to maintaining high standards of financial reporting, complying with IFRS and industry best practices. Consolidated Financial Statements 91 Notes to the Consolidated Financial Statements 95 Independent Auditor’s Report 142 Spektrum Tower 91 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Consolidated Statement of Comprehensive Income For the year ended 31 December 2024 Note 31 December 2024 €’000 31 December 2023 €’000 Revenue 7 238,268 240,429 Operating expenses 8 (94,610) (93,471) Net operating income 143,658 146,958 Administrative expenses 9 (17,962) (15,948) Fair value loss on investment property 3 (99,839) (164,908) Share-based payment expense (352) (502) Loss on disposal of subsidiary 29 (24,623) (474) (Loss)/Profit on disposal of investment property (321) 9,579 Depreciation and amortisation expense (876) (588) Other expenses (4,693) (2,916) Other income 1,386 2,056 Foreign exchange loss (828) (1,533) Loss from fair value of financial instruments at fair value through profit or loss (3,206) (1,393) Loss before net financing cost (7,656) (29,669) Finance cost 10 (80,589) (57,146) Finance income 12,123 23,220 Share of (loss)/profit of equity-accounted investments in joint ventures 27 (8,443) 2,063 Loss before tax (84,565) (61,532) Income tax 11 2,991 7,692 Loss for the year (81,574) (53,840) Items that will not be reclassified to profit or loss Gain on equity instruments designated at fair value through other comprehensive income 90 – Total comprehensive income for the year (81,484) (53,840) Note 31 December 2024 €’000 31 December 2023 €’000 Loss attributable to: (81,574) (53,840) – ordinary equity holders of the Company (81,619) (54,152) – non-controlling interests 45 312 Total comprehensive income attributable to: (81,484) (53,840) – ordinary equity holders of the Company (81,529) (54,152) – non-controlling interests 45 312 Earnings per share (€ cents) Restated* – Basic 12 (31) (22) – Diluted 12 (31) (22) * The IFRS Earnings per share for the year 2023 have been restated following the IAS 33 “Earnings per Share” requirements regarding accounting for scrip dividend shares issued in 2024. 92 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Note 2024 €’000 2023 €’000 Assets Investment property 3 2,585,345 2,843,085 Goodwill 26 12,039 12,039 Advances for investment property 5 3,625 7,175 Investments in joint ventures 27 3,960 70,098 Equity investments 16 8,010 7,844 Other long-term assets 13 1,765 1,780 Other receivables – 21,182 Prepayments 259 448 Non-current financial assets 19.2 3,067 – Deferred tax asset 11.1 2,629 1,423 Non-current assets 2,620,699 2,965,074 Trade and other receivables 17 51,351 23,122 Contract assets 19.2 5,702 6,985 Guarantees retained by tenants 97 99 Income tax receivable 118 1,084 Prepayments 2,447 2,002 Current financial assets – 197 Cash and cash equivalents 18 333,560 396,259 393,275 429,748 Investment property held for sale 3.3 35,763 50,352 Total current assets 429,038 480,100 Total assets 3,049,737 3,445,174 Note 2024 €’000 2023 €’000 Equity and liabilities Issued share capital 21 1,822,934 1,769,456 Treasury shares 25 (4,752) (4,797) Share-based payment reserve 185 – Retained earnings (294,036) (158,066) Fair value reserve of financial assets at FVOCI (5,379) (5,469) Equity attributable to ordinary equity holders of the Company 1,518,952 1,601,124 Non-controlling interests – 1,411 Total equity 1,518,952 1,602,535 Interest-bearing loans and borrowings 14 1,178,250 1,574,771 Deferred tax liability 11.1 118,184 139,299 Lease liabilities 3.2 24,414 20,482 Deposits from tenants 3,517 3,774 Guarantees retained from contractors 2,977 2,902 Other financial liabilities 1,882 – Trade and other payables 15 399 78 Non-current liabilities 1,329,623 1,741,306 Interest-bearing loans and borrowings 14 132,581 28,609 Guarantees retained from contractors 4,774 5,594 Trade and other payables 15 38,048 36,051 Contract liability 320 3,289 Other current financial liabilities – 1,311 Current portion of lease liabilities 3.2 1,946 1,956 Deposits from tenants 19,536 18,018 Income tax payable 816 807 Current liabilities 198,021 95,635 Liabilities directly associated with the assets held for sale 3.3 3,141 5,698 Total current liabilities 201,162 101,333 Total equity and liabilities 3,049,737 3,445,174 The financial statements were approved by the Board of Directors on 24 March 2025 and were signed on its behalf by: Andreas Tautscher Director Consolidated Statement of Financial Position As at 31 December 2024 93 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Consolidated Statement of Cash Flows For the year ended 31 December 2024 Note 2024 €’000 2023 €’000 Investing activities Expenditure on investment property completed and under development or refurbishment (58,723) (62,463) Payment for land acquisitions – (435) Advances received for sale of investment property – 1,200 Proceeds from sale of investment property 100,831 50,440 Proceeds from sale of financial assets through profit and loss 3,322 – Payments for investment in equity investments 16 (199) (323) Investment in and loans given to joint ventures 27 (6,997) (12,500) Repayment of loan from joint ventures 27 3,788 13,893 Proceeds from sale of joint venture investments and settlement of loans given to joint ventures 27 61,578 – Receipt from equity investments held at fair value through OCI 123 – Payment for purchase of other long-term assets (910) (847) Net cash flows used in investing activities 102,813 (11,035) Financing activities Transaction costs on issuance of scrip dividend shares (11) (154) Proceeds from interest-bearing loans and borrowings 14 162,975 344,794 Repayment of interest-bearing loans and borrowings 14 (363,615) (182,727) Interim dividend paid (net of scrip) 22 (817) (1,076) Payment for lease liability obligations (2,191) (1,986) Payment for financial instruments 13 (4,762) – Payment of bank loan arrangement fees and other financing costs 14 (16,747) (5,081) Net cash flows (used in)/from financing activities (225,168) 153,770 Net (decrease) /increase in cash and cash equivalents (63,045) 230,005 Net foreign exchange difference 346 2,487 Cash and cash equivalents at 1 January 18 396,259 163,767 Cash and cash equivalents at 31 December 18 333,560 396,259 Note 2024 €’000 2023 €’000 Operating activities Loss before tax (84,565) (61,532) Adjustments to reconcile profit/(loss) before tax to net cash flows from operating activities Fair value loss on investment property 3.4 99,839 164,908 Loss on sale of residential properties 1,194 269 Share-based payment expense 24 352 502 Depreciation and amortisation expense 876 588 Net movement in allowance for expected credit losses 19.2 2,872 2,283 Net foreign exchange differences 828 1,533 Loss from fair valuation of financial instrument at fair value through profit or loss 3,206 1,393 Loss on disposal of subsidiary 24,623 474 Profit on disposal of investment property 321 (9,579) Share of loss/(profit) of equity-accounted joint ventures 27 8,443 (2,063) Finance income 10.3 (12,123) (23,220) Financing cost 10 80,589 57,146 Operating profit before changes in working capital 126,455 132,702 (Increase) /Decrease in contract assets, trade and other receivables (11,091) 5,418 (Decrease)/Increase in contract liabilities, trade and other payables (1,467) 5,305 Interest paid (58,380) (47,836) Interest received 7,749 3,801 Income tax paid (4,473) (12,734) Interest received from joint ventures 517 614 Net cash flows from operating activities 59,310 87,270 94 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Consolidated Statement of Changes in Equity For the year ended 31 December 2024 Note Issued capital €’000 Treasury shares €’000 Share-based payment reserve €’000 Retained earnings €’000 Fair value reserve of financial assets at FVOCI €’000 Total €’000 Non- controlling interests €’000 Total Equity €’000 As at 1 January 2023 1,704,476 (4,859) 156 (37,798) (5,469) 1,656,506 862 1,657,368 Interim dividends paid in cash and scrip dividend 22 65,134 62 – (66,272) – (1,076) – (1,076) Transaction costs on issuance of shares for cash (154) – – – – (154) – (154) Transfer from reserve to retained earnings – – (156) 156 – – – – Shares issued in subsidiary with NCI – – – – – – 237 237 Loss for the period – – – (54,152) – (54,152) 237 (53,840) Total comprehensive income for the period – – – (54,152) – (54,152) 312 (53,840) As at 31 December 2023 1,769,456 (4,797) – (158,066) (5,469) 1,601,124 1,411 1,602,535 Interim dividends paid in cash and scrip dividend 22 53,489 45 – (54,351) – (817) – (817) Transaction costs on issuance of shares for cash (11) – – – – (11) – (11) Share-based payment expense – – 185 – – 185 – 185 Non-controlling interest component of subsidiaries disposed 29 – – – – – – (1,456) (1,456) Settlement of fair value reserve of equity instruments designated at FVOCI in cash – – – – 90 90 – 90 Loss for the period – – – (81,619) – (81,619) 45 (81,574) Total comprehensive income for the period – – – (81,619) 90 (81,529) 45 (81,484) At 31 December 2024 1,822,934 (4,752) 185 (294,036) (5,379) 1,518,952 – 1,518,952 95 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section I: Basis of Preparation The material accounting policies adopted are set out in the relevant notes to the financial statements and consistently applied throughout the periods presented except for the new and amended IFRS (see note 31), which were adopted on 1 January 2024. The consolidated financial statements are presented in euros (“EUR” or “€”) and all values are rounded to the nearest thousand (‘000) unless otherwise indicated, being the functional currency and presentation currency of the Company. The Company has prepared the financial statements on the basis that it will continue to operate as a going concern. The Directors have considered the Company’s ability to continue to operate as a going concern based on the management’s cash flow projections for the 15 months subsequent to the date of approval of the consolidated financial statements. These projections consider available cash resources of the Group of c.€334 million, the undrawn financing facilities of €115 million, the latest contracted rental income, anticipated additional rental income from new possible lease agreements during the period covered by the projections, secured bank as well as the repayment of debt financing maturing within the projected period, capital expenditures and other commitments. The Directors believe that the Company would have sufficient cash resources to meet its obligations as they fall due to and continue to adopt the going concern basis preparing the consolidated financial statements for the year ended 31 December 2024. Basis of Consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries (the “Group”) as of and for the year ended 31 December 2024 and 31 December 2023. Subsidiaries are fully consolidated (refer to note 28) from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the period from the date of obtaining control to 31 December, using consistent accounting policies. All intra-group balances, transactions and unrealised gains and losses resulting from intra-group transactions are eliminated in full. Non-controlling interest represents the portion of profit or loss, other comprehensive income and net assets not held by the Group and is presented separately in the income statement and within equity in the consolidated statement of financial position, separately from net assets and profit and loss attributable to the equity holders of the Company. Foreign Currency Transactions and Balances Foreign currency transactions during the year are initially recorded in the functional currency at the exchange rates approximating those ruling on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies other than the functional currency of the Company and its subsidiaries are retranslated at the rates of exchange prevailing on the statement of financial position date. Gains and losses on translation are taken to profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. This section contains the Group’s material accounting policies that relate to the consolidated financial statements as a whole. Material accounting policies and related management’s estimates, judgements and assumptions in the application of those policies specific to a particular note are included with that note. Accounting policies relating to non-material items are not included in these financial statements. 1 Basis of Preparation Corporate Information Globalworth Real Estate Investments Limited (the “Company” or “Globalworth”) is a company with liability limited by shares and incorporated and domiciled in Guernsey on 14 February 2013, with registered number 56250. The registered office of the Company is located at PO Box 336, Fourth Floor, Plaza House, Admiral Park, St Peter Port, Guernsey, GY1 3UQ. Globalworth, being a real estate company, has had its ordinary shares admitted to trading on AIM (Alternative Investment Market of the London Stock Exchange) under the ticker “GWI” since 2013. On 23 July 2021 Zakiono Enterprises Limited, a company wholly owned by Tevat Limited, become a controlling shareholder by holding 60.6% share capital of the Company through public offer. Tevat Limited is a joint venture between CPI Property Group S.A. and Aroundtown SA. The Company’s Eurobonds were admitted to trading on the official List of the Irish Stock Exchange in April 2024, providing access to an unregulated secondary market. The main country of operation of the Company is Guernsey. The Group’s principal activities and nature of its operations are mainly investments in real estate properties, through both acquisition and development, as set out in the Strategic Report section of the 2024 Annual Report. Basis of Preparation The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”), as adopted by the European Union (“EU”), give a true and fair view of the state of affairs as at 31 December 2024 and 2023 and of the profit or loss and other comprehensive income for the years then ended, and are in compliance with The Companies (Guernsey) Law, 2008, as amended. The consolidated financial statements (“financial statements”) have been prepared on a historical cost basis, except for investment property, financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss that have been measured at fair value. 96 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section I: Basis of Preparation continued 2 Critical Accounting Judgements, Estimates and Assumptions The preparation of consolidated financial statements in conformity with IFRS requires management to make certain judgements, estimates and assumptions that affect reported amounts of revenue, expenses, assets and liabilities, and the accompanying disclosures and the disclosures of contingent liabilities. Selection of Functional Currency The Company and its subsidiaries used their judgement, based on the criteria outlined in IAS 21 “The Effects of Changes in Foreign Exchanges Rates”, and determined that the functional currency of all the entities is the EUR. In determining the functional currency consideration is given to the denomination of the major cash flows of the entity e.g. revenues and financing. As a consequence, the Company uses EURO (€) as the functional currency, rather than the local currency Romanian Lei (“RON”) for the subsidiaries incorporated in Romania, Polish Zloty (“PLN”) for the subsidiaries in Poland and Pounds Sterling (“GBP”) for the Company and the subsidiary incorporated in Guernsey. Further additional significant accounting judgements, estimates and assumptions are disclosed in the following notes to the financial statements. • Investment Property, see note 3 and Fair Value Measurement and Related Estimates and Judgements, see note 4; • Commitments (operating leases commitments – Group as lessor), see note 6; • Taxation, see note 11; • Equity Investments, see note 16; • Trade and Other Receivables, see note 17; • Share-Based Payment Reserve, see note 24; • Goodwill, see note 26; • Investment in Joint Ventures, see note 27; and • Investment in Subsidiaries, see note 28. 97 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property This section focuses on the assets on the balance sheet of the Group which form the core of the Group’s business activities. This includes investment property (both 100% owned by the Group and by the joint ventures), related disclosures on fair valuation inputs, commitments for future property developments and investment property-leasehold and related lease liability recognised for the right of perpetual usufruct of the lands. Further information about each property is described in the Strategic Report and Operational Review sections of the Annual Report. 3 Investment Property Investment property – freehold Investment property leasehold – Right of usufruct of the land €’000 Total €’000 Note Completed investment property €’000 Investment property under refurbishment €’000 Investment property under development €’000 Land for further development €’000 Sub-total €’000 1 January 2023 2,699,554 152,381 29,450 40,200 2,921,585 23,875 2,945,460 Land acquired during the period – – 435 – 435 – 435 Subsequent expenditure 40,618 8,584 1,569 33 50,804 – 50,804 Net lease incentive movement 4,886 3,035 (43) – 7,878 – 7,878 Capitalised borrowing costs 6 – 144 – 150 – 150 Transfer to completed investment property 15,740 – (4,000) – 11,740 – 11,740 Disposal during the year (6,792) – – (7,000) (13,792) – (13,792) Fair value loss on investment property (155,394) (1,000) (385) (2,233) (159,012) (578) (159,590) 31 December 2023 2,598,618 163,000 27,170 31,000 2,819,788 23,297 2,843,085 Subsequent expenditure 46,937 3,139 2,771 57 52,904 – 52,904 Net lease incentive movement 6,600 (570) 236 – 6,266 – 6,266 Capitalised borrowing costs 1 – – – 1 – 1 Transfer to completed investment property 55,510 (50,610) (4,900) – – – – Disposal during the year 3.5 (199,785) – (11,726) (11,016) (222,527) – (222,527) Additions of right of usufruct of the land – – – – – 4,189 4,189 Fair value loss on investment property 3.4 (91,871) (4,099) (1,251) (641) (97,862) (711) (98,573) 31 December 2024 2,416,010 110,860 12,300 19,400 2,558,570 26,775 2,585,345 98 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued Disposal of Investment Property Not in the Ordinary Course of Business The Group occasionally enters into such contracts with customers to sell properties that are completed. The sale of a completed property is generally expected to be the only performance obligation and the Group has determined that it will be satisfied at the point in time when control transfers. For unconditional exchange of contracts, this is generally expected to be when legal title transfers to the customer. For conditional exchanges, this is expected to be when all significant conditions are satisfied. The recognition and measurement requirements in IFRS 15 are applicable for determining the timing of derecognition and the measurement of consideration (including applying the requirements for variable consideration) when determining any gains or losses on disposal of non-financial assets when that disposal is not in the ordinary course of business. 3.2 Investment Property – Leasehold Policy Lessee’s Accounting In certain contracts, the Group acts as a lessee, such as the right of perpetual usufruct of the land (the “RPU”), short-term office rentals, car parking and office equipment. For low-value lease contracts, the Group applies the recognition exemptions permitted by the standard. Therefore, cash payments for the principal portion of the lease liability of such short-term lease payments or payments for leases of low-value assets (such as office rentals, car parking and office equipment) are included within operating activities as an expense in the same period. Right of Perpetual Usufruct of the Land (the “RPU”) Under IFRS 16, right-of-use assets that meet the definition of investment property are required to be presented in the statement of financial position as an investment property. The Group has the right of perpetual usufruct of the land (the “RPU” or “right-of-use assets”) contracts for the property portfolio in Poland which meet the definition of investment property under IAS 40. Therefore, the Group has combined its “Right-of-use assets” being Investment property – leasehold under the line item “Investment property” along with the investment property – freehold in the statement of financial position. The corresponding lease liabilities are presented under the line item “Lease liabilities” as non-current and the related short-term portion are presented in the line item “Current portion of lease liability”. 3 Investment Property continued 3.1 Investment Property – Freehold Policy Investment property comprises completed property and property under construction or refurbishment that is held, or to be held, to earn rentals or for capital appreciation or both, and land bank for further development. Investment properties are initially measured at cost, including transaction costs. Transaction costs include transfer taxes and professional fees for legal services to bring the property to the condition necessary for it to be capable of operating. After initial recognition, investment property is carried at fair value. Investment property under construction is measured at fair value if the fair value is considered to be reliably determinable. Investment properties under construction or refurbishment for which the fair value cannot be determined reliably, but for which the Group expects that the fair value of the property will be reliably determinable when construction is completed, are measured at cost less impairment until the fair value becomes reliably determinable or construction work is completed – whichever is earlier. Valuations are performed as of the statement of financial position date by professional valuers, who hold recognised and relevant professional qualifications and have recent experience in the location and category of the investment property being valued. Gains or losses arising from changes in the fair value of investment property are included in profit or loss for the year in which they arise. The carrying amount of any accrued income resulting from the spreading of lease incentives and/or minimum lease payments is initially included as part of the carrying value of the investment property. At the balance sheet date investment property is remeasured at fair value. Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised. Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset would result in either gains or losses at the retirement or disposal of investment property. Judgements Classification of Investment Property Investment property comprises completed property, property under construction or refurbishment and land bank for further development which are not occupied substantially for use by, or in the operations of, the Group, nor for sale in the ordinary course of business, but are held primarily to earn rental income and for capital appreciation. The Group considers that, when the property is in a condition which will allow the generation of cash flows from its rental, the property is no longer a property under development or refurbishment but an investment property. If the property is kept for sale in the ordinary course of the business, then it is classified as inventory property. 99 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued Lease liability 31 December 2024 €’000 31 December 2023 €’000 Opening balance 22,438 21,530 Additions to nominal lease liabilities 4,189 – Payment during the year (2,040) (1,381) Interest expense on lease liability 1,372 1,366 Foreign exchange loss 401 923 Closing balance 26,360 22,438 – Current portion 1,946 1,956 – Non-current portion 24,414 20,482 Lease liability – held for sale 31 December 2024 €’000 31 December 2023 €’000 Opening balance 4,319 8,877 Liabilities directly associated with the assets held for sale (1,914) (4,889) Additions to nominal lease liabilities 73 – Payment during the year (151) (605) Interest expense on lease liability 146 411 Foreign exchange loss 25 525 Net movement (1,821) (4,558) Closing balance 2,498 4,319 3.3 Investment Property Held for Sale Policy Investment property is classified as assets held for sale when its carrying amount is to be recovered principally through a sale transaction rather than from continuing use and a sale is considered highly probable. Investment property held for sale continued to be measured at fair value according to IAS 40 “Investment property“. Non-current assets held for sale and liabilities directly associated with the assets held for sale are presented separately as current items in the statement of financial position. Judgements and Assumptions Used in the Classification of Investment Properties as Held for Sale In 2021, the Group entered into a preliminary agreement to sell the properties held by Dolfia sp. z o.o., Ebgaron sp. z o.o., Lamantia sp. z o.o., Nordic Park Offices sp. z o.o. and Warta Tower sp. z o.o., for a total consideration of €125.2 million. In July 2023 the Warta Tower sale was concluded and terminated the original SPA for the remaining four properties. In March 2024 the Group sold Bliski, the property held by Ebgaron sp. z o.o. for a total consideration of €12.4 million. 3 Investment Property continued 3.2 Investment Property – Leasehold continued Valuation Techniques, Key Inputs and Underlying Management’s Estimations and Assumptions To arrive at the carrying amount of the investment property using the fair value model, the Group recognised the right-of-use asset at Net Present Value (“NPV”) of future annual fees (that is net of all payments expected to be made under the RPU). The change in the carrying amount of investment property – leasehold was charged to profit and loss and presented under the line “Fair value gain on investment property”. The NPV of right-of – use assets in order to determine the fair value of investment property – leasehold was calculated based on the following key inputs: Key inputs to determine the present value 31 December 2024 31 December 2023 Gross operating lease commitments (€’000) 119,315 100,590 Remaining individual lease term (years) 65–82 67–83 Discount rate (%) 5.77 5.77 Investment property – leasehold Note 31 December 2024 €’000 31 December 2023 €’000 Opening balance 23,297 23,875 Additions to nominal lease liabilities 4,189 – Fair value loss on investment property 3.5 (711) (578) Closing balance 26,775 23,297 The Group measures the lease liability at the present value of the lease payments that are not paid until the statement of financial position date. The lease payments are discounted at 5.77% after deducting from the opening carrying value the annual rental payments and translating at the closing exchange rate into Euro resulted in a foreign exchange loss. The interest expense for the unwinding effect of the present value of the lease liability for an amount of €1.5 million (2023: €1.8 million) was presented in the statement of comprehensive income under the line “Finance expense”. Additions to nominal lease liabilities represent the parking spaces leased from a third-party lessor on a long-term basis. Considering the insignificant nominal amount contributed by these parking leases, as compared to the outstanding nominal lease liability amount, there was no significant change in discount rate applied as compared to the prior year. 100 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued 3 Investment Property continued 3.3 Assets Held for Sale continued Judgements and Assumptions Used in the Classification of Investment Properties as Held for Sale continued At 31 December 2024, there are two buildings classified as held for sale which the Group is committed to sell and is actively looking to negotiate with the buyers. The properties classified as held for sale were valued at €35.7 million. All the assets under held for sale group are available for immediate sale in their present condition subject only to terms that are usual and customary for sales of such assets. The management has an active disposal programme with appropriate approvals from the Board and is planning to complete the sale in the near future by signing a new SPA with a new buyer(s). The carrying values of investment properties held for sale at 31 December 2024 are fair valued after taking into account management’s intention to actively market these assets for sale at a price that is reasonable in relation to its current fair value under present market conditions. Therefore, the Group continues to classify the carrying value of these investments under investment property held for sale and disclose separately the liabilities directly associated with the assets held for sale. Note 31 December 2023 €’000 CAPEX €’000 Fair value loss €’000 Disposal during the year €’000 Movement during the period €’000 31 December 2024 €’000 Completed investment property 3.1 45,900 908 (1,188) (12,390) (12,670) 33,230 Investment property – leasehold 3.2 4,452 73 (78) (1,914) (1,919) 2,533 Investment property held for sale 50,352 981 (1,266) (14,304) (14,589) 35,763 Lease liabilities 3.2 4,319 – – – (1,821) 2,498 Deferred tax liability 11.1 1,379 – – – (736) 643 Liabilities directly associated with the assets held for sale 5,698 – – – (2,557) 3,141 Net assets held for sale 44,654 981 (1,266) (14,304) (12,032) 32,622 3.4 Fair Value Loss on Investment Property Note 31 December 2024 €’000 31 December 2023 €’000 Fair value loss on investment property 99,839 164,908 – Related to investment property 3.1 98,573 159,590 – Related to investment property − held for sale 3.3 1,266 5,318 101 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued Investment Property Measured at Fair Value The Group’s investment property portfolio for Romania was valued by Colliers Valuation and Advisory SRL and Cushman & Wakefield International Real Estate Advisor Ltd and for Poland by Knight Frank Sp. z o.o.. All independent professionally qualified valuers hold a recognised relevant professional qualification and have recent experience in the locations and segments of the investment properties valued using recognised valuation techniques. Our Property Valuation Approach and Process The Group’s investment department includes a team that reviews twice in a financial year the valuations performed by the independent valuers for financial reporting purposes. For each independent valuation performed, the investment team along with the finance team: • verifies all major inputs to the independent valuation report; • assesses property valuation movements when compared to the initial valuation report at acquisition or latest period end valuation report; and • holds discussions with the independent valuer. The fair value hierarchy levels are specified under IFRS 13 “Fair Value Measurement”. Some of the inputs to the valuations are defined as “unobservable” by IFRS 13 and these are analysed in the tables below. Any change in valuation technique or fair value hierarchy (between Level 1, Level 2 and Level 3) is analysed at each reporting date or as of the date of the event or variation in the circumstances that caused the change. As of 31 December 2024 (2023: same) the values of all investment properties were classified as Level 3 fair value hierarchy under IFRS 13 and there were no transfers from or to Level 3 from Level 1 and Level 2. Valuation Techniques, Key Inputs and Underlying Management’s Estimations and Assumptions Property valuations are inherently subjective as they are valued on the basis of assumptions made by the valuer. Valuation techniques comprise the discounted cash flows, the sales comparison approach and the residual value method. The Group has based its assumptions and estimates on the parameters available when the consolidated financial statements were prepared, including the amendments or possible amendments of the current lease contracts, delays to non-committed capital expenditure, cost-cutting initiatives and delays in construction activity. The key assumptions concern the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. However, all such assumptions or estimates are sensitive to change due to the current market environment. The climate-related risks are embedded in the determination of future cash flows that are used for the fair value of investment properties. Further information is disclosed in Operational Review and Strategic review. Such uncertainty is reflected in the assumptions used for the valuation and the Group discloses below the sensitivity to different key inputs to overall valuation. 3 Investment Property continued 3.5 Sale of Investment Property In March 2024 the Group sold Bliski, the property held by Ebgaron sp. z o.o. a property held for sale (note 3.3) and in May 2024, the Group successfully closed the sale for part of its logistics portfolio with the properties disposed having a total value of €207 million. The portfolio comprised five logistics / light-industrial parks with ten facilities in Timisoara, Arad, Oradea and Pitesti as well as a majority stake in two small business units in Bucharest and was sold to CTP INVEST SPOL S.R.O. In 2023, the Group sold a non-core plot of land for which remaining consideration of €3.0 million was collected in March 2024 and sold Warta Tower office building, out of which €20 million are deferred and will be received in October 2025. At the disposal date, the Group recognised in the income statement €9.5 million profit after adjusting incidental costs. For further information please refer to note 29 Disposal of Subsidiaries. 4 Fair Value Measurement and Related Estimates and Judgements Policy All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The Group measures at fair value the investment properties freehold and leasehold (non-financial assets), equity investments (through other comprehensive income) and financial assets at fair value through profit or loss at fair value (recurring) at each statement of financial position date. For financial liabilities, such as interest-bearing loans and borrowings carried at amortised cost using the effective interest rate method, the fair value is disclosed. For assets and liabilities that are measured in the financial statements at fair value on a recurring basis after initial recognition, the Group determines whether transfers have occurred between levels in the fair value hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Group assessed that the fair values of other financial assets and financial liabilities, such as trade and other receivables, guarantees retained by tenants, cash and cash equivalents, income tax receivables and payables, trade and other payables, guarantees retained from contractors and deposits from tenants, approximate their carrying amounts largely due to short-term maturities and low transaction costs of these instruments as of the statement of financial position date. Further information on financial assets such as equity investments and financial assets at fair value through profit and loss can be found in notes 13 and 16. 102 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued 4 Fair Value Measurement and Related Estimates and Judgements continued Valuation Techniques, Key Inputs and Underlying Management’s Estimations and Assumptions continued Key information about fair value measurements, valuation technique and significant unobservable inputs (Level 3) used in arriving at the fair value under IFRS 13 are disclosed below: Fair value Class of property 2024 €’000 2023 €’000 Valuation Technique Country Segment Input 2024 2023 Completed investment property – freehold 486,790 517,960 DCF Poland Warsaw Rent per sqm €11.50–€23.00 €11.50–€22.50 Discount rate 5.71%–10.89% 5.72%–9.10% Exit yield 5.95%–7.90% 5.70%–7.75% Completed held for sale – freehold (33,230) (45,900) Poland Warsaw 637,030 671,060 DCF Poland Regional Rent per sqm €12.50–€15.50 €11.50–€15.25 Discount rate 5.22%–16.03% 6.43%–10.07% Exit yield 6.80%–10.00% 6.50%–7.50% 163,020 115,670 DCF Poland Mixed–used Rent per sqm €13.50–€24.00 €14.00–€24.00 Discount rate 5.54%–8.55% 5.64%–7.12% Exit yield 5.72%–7.04% 5.47%–6.50% 1,126,800 1,109,500 DCF Romania Office Rent per sqm €2.00–€35.00 €2.00–€35.00 Discount rate 8.30%–9.1% 8.25%–9.5% Exit yield 6.75%–7.65% 6.5%–7.65% 4,900 183,900 DCF Romania Industrial Rent per sqm €4.35–€4.35 €2.91–€9.00 Discount rate 9.25%–9.25% 8.5%–9.25% Exit yield 7.75%–7.75% 6.75%–7.25% 10,000 10,100 DCF Romania Residential Rent per sqm €7.72–€24.20 €7.72–€24.20 Discount rate 9.75%–9.75% 9.75%–9.75% Exit yield 7.75%–7.75% 7.75%–7.75% 20,700 36,328 SC Romania Residential Sales value (sqm) €1,500 €1,500 Sub-total 2,416,010 2,598,618 103 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued 4 Fair Value Measurement and Related Estimates and Judgements continued Valuation Techniques, Key Inputs and Underlying Management’s Estimations and Assumptions continued Fair value Class of property 2024 €’000 2023 €’000 Valuation Technique Country Segment Input 2024 2023 Investment property under development – freehold 6,000 15,900 RM Romania Office Rent per sqm €13.75–€15 €11.50–€18 Discount rate 9.50%–9.50% 8.50%–9.50% Exit yield 7.75%–7.75% 6.75%–7.75% CAPEX (€m) €0.00 €75.68 – 11,700 DCF Romania Industrial Rent per sqm – €5.20–€9.70 Discount rate – 9.00% Exit yield – 7% Investment property under refurbishment – freehold 117,160 170,070 DCF Poland Mixed–used Rent per sqm €15.00–€15.00 €13.50–€13.50 Discount rate 6.95%–8.48% 6.87%–8.25% Exit yield 6.68%–6.68% 6.61%–6.61% CAPEX (€m) €0.00 – Land bank – for further development – freehold – 9,500 SC Romania Industrial Sales value (sqm) €27–€27 € 27 Rent per sqm €16.00–€20.00 €3.25–€20.00 19,400 14,000 RM Romania Industrial Exit yield 7.00%–7.2% 7.15%–8.25% Total 2,558,570 2,819,788 Income approach: DCF: Discounted Cash Flows, DC: Direct Capitalisation, RM: Residual Method; Market approach: SC: Sales Comparison Valuation Techniques, Key Inputs and Underlying Management’s Estimations and Assumptions continued All classes of property portfolio were categorised as Level 3 under the fair value hierarchy. The fair value movement on investment property recognised, as loss, in the income statement includes an amount of €99.8 million (2023: loss of €164.9 million) for fair value measurements as of the statement of financial position date related to investment properties categorised within Level 3 of the fair value hierarchy. In arriving at estimates of market values as at 31 December 2024 and 2023, the independent valuation experts used their market knowledge and professional judgement and did not rely solely on comparable historical transactions. In these circumstances, there was a greater degree of uncertainty in estimating the market values of investment properties than would have existed in a more active market. Sensitivity Analysis on Significant Estimates Used in the Valuation The assumptions on which the property valuations have been based include, but are not limited to, rent per sqm (per month), discount rate, exit yield, the cost to complete, comparable market transactions for the land bank for further development, tenant profile for the rented properties, and the present condition of the properties. These assumptions are market standard and in line with the International Valuation Standards (“IVS”). Generally, a change in the assumption made for the rent per sqm (per month) is accompanied by a similar change in the rent growth per annum and discount rate (and exit yield) and an opposite change in the other inputs. Other Disclosures Related to Investment Property Interest-bearing loans and borrowings are secured on investment property; see note 14 for details. Further information about individual properties is disclosed in the Operational Review section of the Annual Report.. 104 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued 4 Fair Value Measurement and Related Estimates and Judgements continued A quantitative sensitivity analysis, in isolation, of the most sensitive inputs used in the independent valuations performed, as of the statement of financial position date, is set out below: €0.5 change in rental value per month, per sqm1 25 bps change in exit yield 5% change in CAPEX €50 change in sales prices per sqm2 2.5% change in vacancy in perpetuity3 Investment property Year Country Increase €’000 Decrease €’000 Increase €’000 Decrease €’000 Increase €’000 Decrease €’000 Increase €’000 Decrease €’000 Increase €’000 Decrease €’000 – Completed 2024 Poland 33,500 (33,510) (52,440) 56,630 – – – – (29,000) – 2024 Romania 22,900 (23,000) (40,800) 43,800 – – 600 (600) (12,000) 10,000 2023 Poland 31,730 (37,030) (57,730) 57,070 – – – – (32,150) – 2023 Romania 28,200 (27,900) (46,700) 50,700 – – 1,100 (1,100) (12,500) 10,100 – Under development 2024 Romania 1,700 (1,700) (1,800) 2,000 (2,300) 2,400 – – – – 2023 Romania 3,000 (3,000) (3,600) 3,900 (3,500) 3,500 – – (200) 100 – Under refurbishment 2024 Poland 3,200 (3,200) (4,890) 5,280 – – – – (2,700) – 2023 Poland 3,510 (6,860) (8,700) 5,910 – – – – (6,070) – – Further development 2024 Romania 2,100 (2,100) (3,100) 3,400 (3,200) 3,200 – – – – 2023 Romania 2,100 (1,900) (2,000) 2,300 (2,000) 2,200 400 (500) – – 1. The quantitative sensitivity analysis was computed as €0.25 change in rental value per month, per sqm for industrial properties for 2023, not applicable for 2024. 2. The quantitative sensitivity analysis was computed as a €1.5 change in sales price per sqm for the industrial properties portfolio for 2023, not applicable for 2024. 3. The vacancy in perpetuity sensitivity analysis is not followed for the Polish properties portfolio as this factor is considered in the valuation methodology as part of yields and not a variable in isolation. Generally, a change in the assumption made for the estimated rental value is accompanied by a directionally similar change in the rent growth per annum and the discount rate (and exit yield), and an opposite change in the long-term vacancy rate. 4.1 Investment Properties Owned by Joint Ventures Completed investment property €’000 Investment property under development €’000 Land for further development €’000 Total €’000 1 January 2023 73,700 8,400 36,900 119,000 Subsequent expenditure 7,037 – 382 7,419 Net lease incentive movement 251 – – 251 Transfer to completed investment property 8,400 (8,400) – – Fair value gain/(loss) on investment property 2,412 – (35) 2,377 31 December 2023 91,800 – 37,247 129,047 Subsequent expenditure 2,676 – 89 2,765 Net lease incentive movement 662 – (6) 656 Disposal during the year (90,543) – (19,056) (109,599) Fair value gain/(loss) on investment property (4,595) – (10,374) (14,969) 31 December 2024 – – 7,900 7,900 105 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued 4 Fair Value Measurement and Related Estimates and Judgements continued Sensitivity Analysis on Significant Estimates Used in the Valuation of Investment Properties Owned by the Joint Venture As disclosed in note 27, during 2024 the Group disposed 50% interests in Global Logistics Chitila SRL, Black Sea Vision SRL and Targu Mures Logistics Hub SRL for a total net consideration to the Company of €56.0 million, leaving the Group with only a 50% interest in Black Sea Business Park where investment properties were valued at fair value under the similar Group accounting policies by Colliers Valuation and Advisory SRL. The table below describes key information about fair value measurements, valuation technique and significant unobservable inputs (Level 3) used in arriving at the fair value under IFRS 13. Carrying value Range Class of joint venture property 2024 €’000 2023 €’000 Valuation technique Country Input 2024 2023 Completed investment property – 91,800 DCF Romania Rent per sqm – €2.00–€10.00 Discount rate – 4.28%–4.52% Exit yield – 7%–7.25% Land bank – for further development 7,900 37,247 SC Romania Sales value sqm €33.00–€40.00 €30.00–€70.00 Total 7,900 129,047 Income approach: DCF: Discounted Cash Flows, DC: Direct Capitalisation, RM: Residual Method; Market approach: SC: Sales Comparison A quantitative sensitivity analysis (for properties owned by joint ventures), in isolation, of the most sensitive inputs used in the independent valuations performed, as of the statement of financial position date, is set out below. Generally, a change in the assumption made for the estimated rental value is accompanied by a directionally similar change in the rent growth per annum and the discount rate (and exit yield), and an opposite change in the long- term vacancy rate. €0.25 change in rental value per month, per sqm 25 bps change in exit yield 5% change in CAPEX €1.5 change in sales prices per sqm 2.5% change in vacancy in perpetuity Joint ventures Investment Property Year Country Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease – Completed 2024 Romania – – – – – – – – – – 2023 Romania 2,400 (2,400) (3,300) 3,200 – – – – (1,400) (1,000) – Further development 2024 Romania – – – – – – 400 (400) – – 2023 Romania – – – – – – 1,400 (1,400) – – The Group is committed to responding to the effects of climate change and its Sustainability Policy covers the impact of the Group’s operations and processes, the long-term environmental performance of the properties owned and developed, as well as the reduction of energy consumption and greenhouse gas emissions. The Group, therefore, actively invests in properties which are either certified as environmentally friendly or have the potential to be classified as such following our own initiatives. The Company conducted a climate change transition and physical risks and opportunities assessment across its value chain, in alignment with TCFD recommendations (i.e. Task Force on Climate-Related Financial Disclosures). Climate analysis indicates that the probability of floods is very likely across RCPs climate scenarios (2.6, 4.5 and 8.5 W/m2) for several locations in Poland and likely in Romania, where construction operations are in progress. As Globalworth considers that extreme precipitation and flood events will increase and that direct operations might be compromised, it is investing in solutions that will provide business continuity. Already, we are implementing procedures and flood protection has been purchased for the majority of the properties, as we consider flooding to be one of the main natural hazards occurring in Poland and Romania, which, in certain circumstances, may take the form of a disaster. 106 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section II: Investment Property continued 5 Advances for Investment Property 2024 €’000 2023 €’000 Advances for land and other property acquisitions – 2,000 Advances to contractors for investment properties under development 3,625 5,175 3,625 7,175 6 Commitments Commitments for Investment Property As at 31 December 2024 the Group agreed to construction contracts with third parties and is consequently committed to future capital expenditure in respect of completed investment property of €11.2 million (2023: €8.2 million) and had committed with tenants to incur incentives (such as fit-out works and other lease incentives) of €11.5 million (2023: €11.8 million). As of 31 December 2024, the Group’s joint ventures had no commitments for the construction of investment property (2023: €0.1 million). Operating Lease Commitments – Group as Lessor Policy The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date, whether fulfilment of the arrangement is dependent on the use of a specific asset or assets, or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. Leases in which the Group does not transfer substantially all the risks and benefits of ownership of an asset are classified as operating leases and such lease agreements fall within the scope of IFRS 16; see note 7 for policies on revenue recognition for properties under operating leases. Judgements Made for Properties Under Operating Leases, Being the Lessor The Group has determined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of the investment properties leased to third parties and, therefore, being the lessor accounts for these leases as operating leases. The duration of these leases is one year or more (2023: one year or more) and rentals are subject to annual upward revisions based on the consumer price index. The future aggregate minimum rentals receivable under non-cancellable operating leases for investment properties – freehold are as follows: 2024 €’000 2023 €’000 Not later than 1 year 180,106 181,839 Later than 1 year and not later than 5 years 548,850 507,919 Later than 5 years 96,836 175,006 825,792 864,764 107 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section III: Financial Results 7.2b) Fit-out Services Income For contracts relating to fit-out services, the Group is responsible for the overall management of the project and identifies various goods and services to be provided, including architectural work, procurement of materials, site preparation, framing and plastering, mechanical and electrical work, installation of fixtures and finishing work. In such contracts, the Group has determined that the individual goods and services are not distinct and has accounted for them as a single performance obligation. Under IFRS 15, the Group recognises revenue over time because it expects that control will transfer over time. In certain fit-out contracts, its performance creates an asset that the tenant controls as the asset is created. In other cases, its performance does not create an asset with an alternative use to the Group and the Group has concluded that it has an enforceable right to payment for performance completed to date. The Group has measured the stage of completion (i.e. performance measurement over time) for the revenue recognition from distinctive fit-out project using a cost input method, by reference to the costs incurred to date on a project for the satisfaction of a performance obligation relative to the total budgeted costs of the project to the completion. 7.2c) Rendering of Services Revenue from asset management fees, marketing and other income which are recognised at the time the service is provided. Contract Asset A contract asset is initially recognised as invoices to be issued for revenue earned from service charge income, fit-out services income and rendering of other services (the revenue stream is disclosed in note 7) because the receipt of consideration is conditional on successful completion of the services. Once a fiscal invoice is issued after the completion of services the contract assets are reclassified to trade receivables. The Group analysed the credit risk of contract assets and found that no significant allowance was identified. Contract Liability A contract liability is recognised if a payment is received, or a payment is due (whichever is earlier) from a customer before the Group transfers the related services. Contract liabilities are recognised as revenue when the Group performs under the contract. 7.3 Principal Rather than Agent The Group arranges for third parties to provide certain services to the tenants either as part of service charges or fit-out services. Under IFRS 15, the Group concluded it was the principal because it is primarily responsible for fulfilling the promise to perform the specific services and the Group bears all risks (e.g. credit risk and inventory risk) on these transactions as it is obliged to pay the service provider even if the customer defaults on payment. The Group determined that it controls the service before it is provided to the tenant and, hence, it is the principal rather than the agent in these contracts. As a result, the Group has concluded that it is acting as a principal in all of the above-mentioned revenue arrangements. This section quantifies the financial impact of the operations for the year; further analysis on operations is presented in the Financial Review section of the Annual Report. This section includes the results and performance of the Group, including earnings per share and EPRA Earnings. This section also includes details about the Group’s tax position in the year and deferred tax assets. 7 Revenue Policy 7.1 Rental Income For investment properties held primarily to earn rental income, the Group enters as a lessor into lease agreements that fall within the scope of IFRS 16. Rental income is measured at the fair value of the consideration received or receivable, except for contingent rental income which is recognised when it arises. The value of lease agent commission, rent-free periods, fit-out incentives and all similar lease incentives is expensed on a straight- line basis over the term of the lease. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless another systematic basis is more representative of the time pattern in which the benefit derived from the leased asset is diminished. If the annual lease rent increases as a result of a price index to cover the inflationary cost, then the policy is not to spread the amounts but to recognise them when the increase takes place (applied prospectively when the right to receive it arises). The amounts received from tenants to terminate non-cancellable operating leases are recognised in the statement of comprehensive income when the right to receive them arises. 7.2 Revenue from Contracts with Customers 7.2a) Service Charge Income The lease agreements include certain services offered to tenants comprising the overall property management, including common area maintenance services as well as other administrative and support services. The Group has determined that these services constitute distinct non-lease components (transferred separately from the right to use the underlying asset) and are within the scope of IFRS 15. These services are specified in the lease agreements and separately invoiced. The Group has concluded that these services represent a series of daily services that are satisfied over time and apply a time-elapsed measure of progress. The consideration charged to tenants for these services includes fees charged based on the area occupied by the tenant and reimbursement of certain expenses incurred. The Group has determined that this variable consideration generally relates to this non-lease component and that allocating it over the period of service meets the variable consideration allocation criteria under IFRS 15. The Group has identified a few lease agreements with non-triple net clauses, where the service charge was capped, which required the reclassification of €2.5 million from the rental revenues to service charge revenue during 2024 (2023: €1.7 million). 108 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section III: Financial Results continued 8 Operating Expenses Policy a) Service Costs Service costs for common areas, as well as expenses for non-common areas, are included under direct property expenses. Reclaiming them from tenants is presented separately under revenue, see note 7. b) Works Carried Out on Properties Works carried out which are the responsibility of the building’s owner and which do not add any extra functionality to, or enhance significantly, the standard of comfort of the building are considered as current expenditure for the year and recorded in the income statement as expenses. 2024 €’000 2023 €’000 Property management, utilities and insurance 86,753 86,722 Property maintenance costs and other non-recoverable costs 2,843 2,087 Expenses relates to other services rendered 507 – Property expenses arising from investment property that generate rental income 90,103 88,809 Property expenses arising from investment property that did not generate rental income 31 19 Fit-out services costs 4,476 4,643 94,610 93,471 7 Revenue continued 2024 €’000 2023 €’000 Contracted rent 188,939 191,913 Adjustment for lease incentives (36,155) (31,548) Rental income 152,784 160,365 Revenue from contracts with customers Service charge income 78,566 75,056 Fit-out services income 4,529 4,185 Income from other services rendered 631 – Asset management fees 89 122 Marketing and other income 1,669 701 85,484 80,064 238,268 240,429 The total contingent rents and surrender premia recognised as rental income during the year amount to €2 million (2023: €2.3 million) and €1.9 million (2023: €1.1 million), respectively. 109 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section III: Financial Results continued 10 Finance Cost Policy Borrowing costs associated with direct expenditure on properties under development or undergoing major refurbishment are capitalised. Where borrowings are associated with specific developments, the amount capitalised is the gross interest less finance income (if any) incurred on those borrowings. Interest is capitalised from the commencement of the development work until the date of final completion. Arrangement fees are amortised over the term of the borrowing facility. All other borrowing costs are expensed in the period in which they occur. If the borrowing is early repaid, the unamortised borrowing costs are fully expensed on repayment date. This expense will be recognized in the financial statements as a one-time charge to the profit and loss account. Note 2024 €’000 2023 €’000 Interest on secured loans 25,975 15,929 Interest on the unsecured revolving facility 4,807 4,683 Interest on fixed-rate unsecured notes 30,893 26,779 Debt cost amortisation and other finance costs 10.1 4,974 7,742 Debt close-out costs 10.2 12,140 – Interest on lease liabilities 3.2 1,518 1,777 Bank charges 282 236 80,589 57,146 10.1 Debt Cost Amortisation and Other Finance Costs 2024 €’000 2023 €’000 Debt issue cost amortisation – secured bank loans 954 712 Debt issue cost amortisation – unsecured revolving facility 756 1,856 Debt issue cost amortisation – fixed rate bonds 3,264 5,174 4,974 7,742 The Company capitalised borrowing costs in the value of investment property, amounting to €0.01 million (2023: €0.2 million), using a capitalisation weighted average rate of 4.87% (2023: 3.33%). 9 Administrative Expenses Policy Administrative expenses are expensed as incurred with the exception of expenditure on long-term developments. 2024 €’000 2023 €’000 Directors’ emoluments1 1,033 732 Salaries and remuneration costs1,2 8,551 7,954 Accounting, secretarial and administration costs 454 411 Legal and other advisory services 1,573 1,289 Audit and non-audit services3 1,361 1,310 Corporate social responsibility 384 180 Travel and accommodation 247 359 Marketing and advertising services 2,471 2,091 Office and IT expenses 658 625 Stock exchange expenses 687 577 Restructuring costs 543 420 17,962 15,948 1. Costs of €2.7 million (2023: €2.5 million) associated with the team of Executive Directors and other employees who worked on CAPEX projects for standing and under development properties were capitalised in line with the progress made on the properties under development during the year. 2. During the year, the Group contributed €0.4 million (2023: €0.4 million) and nil (2023: nil) to the mandatory Government Pension Fund of the employees and key management of the Group, respectively. 3. Refer to the Audit and Risk Committee report for details on the fees charged by the Company’s auditor for the year. 110 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section III: Financial Results continued The unrecognised deferred income tax asset is reassessed at each reporting date and is recognised to the extent it has become probable that the future taxable profit will allow for the recovery of such deferred tax asset. Deferred tax assets and liabilities are offset if provided by law and the deferred taxes relate to the same taxable entity and the tax authority. 2024 €’000 2023 €’000 Current income tax income 5,017 12,908 – Related to the current year 8,888 13,554 – Related to the prior year (3,871) (646) Deferred income tax expense (8,008) (20,600) (2,991) (7,692) Current Income Tax Expense The Company is tax resident in Guernsey and subject to Guernsey tax rules and does not fall in the scope of the Pillar Two model rules. The subsidiaries in Romania, Poland and Cyprus are subject to corporate income tax on local sources of income. The current income tax expense of €5 million (2023: €12.9 million) represents the profit tax for the Group. The taxable income arising in each jurisdiction is subject to the following standard corporate income tax rates: Poland at 19% (however small entities with revenue up to €2 million in the given tax year and entities starting a new business for their first tax year of operation, under certain conditions, are charged a reduced rate of 9%), Romania at 16% and Cyprus at 12.5%. The Group’s subsidiaries in Poland are subject to the minimum tax related to real estate companies, which is applied to income from ownership of certain high-value fixed assets having an initial value of the asset exceeding PLN 10 million at a rate of 0.035% per month. From 2019, the taxpayer has a right to apply for the refund of previously paid minimum tax which was not deducted from the advance corporate income tax. This minimum tax can be set off against CIT if CIT is higher. The tax is applied only to leased buildings while no tax applies on vacant buildings or vacant space in partially occupied buildings. Starting 1 January 2024, there is an additional minimum tax on turnover introduced in Poland and it is applicable to taxpayers declaring tax losses or negligible income (≤ 2% of revenue) from a source of income other than capital gains. Therefore, the Polish entities are captured by this new rule, and they will be paying the higher amount of tax between corporate income tax or a minimum tax on turnover. The minimum tax related to real estate companies is not deducted from the additional minimum tax. The additional minimum income tax rate amounts 10% and the tax base is calculated as the sum of: the amount corresponding to 1.5% of taxable operational income other than capital gains, excessive debt financing costs paid to related entities exceeding 30% of the so called tax EBITDA plus costs of intangible services or royalties paid to related entities exceeding PLN 3 million plus 5% of the tax EBITDA. There are certain additional conditions on which the entity can be exempt from paying the minimum tax, e.g. the average joint taxable income other than capital gains for the related entities in Poland (for the companies belonging to a group, in which one entity holds, directly or indirectly, at least 75% of the share capital of the other entities throughout the tax year) is higher than 2% of joint revenue other than capital gains. 10 Finance Cost continued 10.2 Debt Close-Out Following the bond exchange exercise, which resulted from the extinguishment of the 18/25 and 20/26 Notes and the entrance into two new Senior Notes due in March 2029 and in March 2030, a total one-off cost of €12.2 million was expensed, representing costs incurred during the exchange exercise and unamortised part of debt issue costs related to the previous Notes. 10.3 Finance Income Note 2024 €’000 2023 €’000 Gain on bond buyback 402 15,809 Income from bank deposits 7,749 3,801 Interest income from loans to joint ventures 27 1,196 2,075 Interest income on deferred sale consideration for subsidiary disposal 3.5 2,607 1,284 Other financial income 169 251 12,123 23,220 11 Taxation Policy Current Income Tax Current income tax represents the tax payable on the taxable income of the year applying the tax rates applicable at the statement of financial position date. In cases where the final tax outcome is different from the amounts that were initially recorded, such differences will impact the income statement in the period in which the determination is made. The tax cost for the year is included in the income statement except to the extent that it relates to items recognised directly in equity, in which case the related tax is recognised in equity. Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements at the income tax rate applicable at the reporting date, with the following exceptions: • the temporary difference arises from the initial recognition of goodwill, or of an asset or liability in a transaction that is not a business combination. As a result, at the time of the transaction it affects neither accounting nor taxable profit or loss; • deferred tax assets are only recognised to the extent that it is foreseeable that there will be a taxable profit available to be utilised against the deductible temporary differences, carried forward tax credits or tax losses; and • in respect of taxable temporary differences related to investments in subsidiaries where the timing of the reversal of the temporary difference can be controlled, and it is most likely that the temporary difference will not be reversed in the foreseeable future. 111 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section III: Financial Results continued Reconciliation Between Applicable and Effective Tax Rate The reconciliation between tax expense and the product of accounting profit multiplied by the Company’s income tax rate for the year ended 31 December 2024 and 31 December 2023 is as follows: 2024 €’000 2023 €’000 (Loss) before tax (80,793) (61,532) Less: Non-deductible unrealised fair value loss on investment property (99,684) (164,908) Profit before fair value loss on investment property and tax 18,891 103,376 At the Company’s income tax rate 0% (2023: 0%) – – Effect of higher tax rates in foreign jurisdictions Tax in Romania – Corporate income tax 3,090 1,837 – Deferred tax expense for taxable temporary differences (1,493) (9,390) – related to current year (1,493) (9,390) – related to prior year’s tax losses – – Tax in Cyprus – Corporate income tax (221) 3,857 Tax in Poland – Corporate income tax 1,706 7,214 – Deferred tax expenses for taxable temporary differences (6,515) (11,210) – related to the current year (9,947) (20,527) – related to the prior year’s tax losses 3,432 9,317 Tax (income)/expense reported in the income statement (2,991) (7,692) Effective tax rate, including deferred tax expenses (%) –15,8% –7.4% 11 Taxation continued Starting 1 January 2024, there is a minimum tax on turnover introduced in Romania and it applies to entities which have a turnover over certain limit. Therefore, the Romanian entities which are part of the tax unity will be captured by this new rule and they will be paying the higher amount of tax between corporate income tax or a minimum tax on turnover. The minimum tax on turnover is 1% applicable on certain adjusted elements of income. The Group’s subsidiaries registered in Cyprus need to comply with the National tax regulations; the most significant future sources of income of the Group subsidiaries registered in Cyprus are dividend and interest income. Dividend income is tax-exempt under certain conditions, while interest income is subject to corporate income tax at the rate of 12.5% in Cyprus. Judgements and Assumptions Used in the Computation of Current Income Tax Liability There are uncertainties in Romania and Poland, where the Group has significant operations, and this is due to the interpretation of complex tax regulations, frequent changes in tax laws and lack of predictability over these tax changes with possible impact on the amount and timing of future taxable income. Differences arising between the actual results and the assumptions made, or changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective company’s domicile. In Romania and Poland, the tax position is open to further verification for five years and no subsidiary in Romania has had a corporate income tax audit in the last five years, while in Poland some entities are currently under tax audit with respect to the corporate income tax and withholding tax settlements for the fiscal years 2017, 2018, 2019, 2020, 2021 and 2022. The tax regulations regarding withholding taxes in Poland significantly changed in recent years, while the Polish tax authorities have issued new non-binding guidance and interpretation with respect to law provisions related to past periods. The ongoing tax audits regarding withholding tax are at various stages for Polish subsidiaries, but as of the publication date of these financial statements, they have not been finalized. We have analyzed these new regulations and uncertainty about the interpretation of EU Directives and Double-tax treaties, as well as complexities and potential interpretations of tax authorities and given the information currently available to us, our estimation is that no additional tax liabilities should be recorded in connection with this matter as of 31 December 2024. 112 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section III: Financial Results continued generated after 31 December 2018 in the amount of greater than PLN 5 million or 50% of tax loss of a given fiscal year in the following five fiscal years. As of the statement of financial position date the Group recognised deferred tax assets of €1.1 million (2023: €1.9 million) in Romania and Poland for which deferred tax asset recognition criteria were met under IAS 12, out of the total available deferred tax assets of €4.3 million (2023: €8.0 million), calculated at the corporate income tax rates of 16% in Romania and 19% (9% for small entities) in Poland. Expiry year 2025 2026 2027 2028 2029 2030 Total Total available deferred tax assets (€m) 0.3 1.4 0.7 1.0 1.0 0.0 4.3 Therefore, out of the available deferred tax assets, €3.2 million (2023: €6.0 million) deferred tax asset was not recognised (Romania and Poland) in the income statement of the Group as the amount could not be utilised from the future taxable income as per the criteria under IAS 12. There are also temporary non-deductible interest expenses and net foreign exchange losses of €223.9 million, of which €41.7 million in Romania and €182.2 million in Poland (2023: €215.6 million, of which €41.2 million in Romania and €174.4 million in Poland) related to intercompany and bank loans. Each year an amount up to 30% of tax EBITDA not less than PLN 3 million would become tax-deductible, for which €4.4 million (€0.3 million in Romania and €4.1 million in Poland) deferred tax asset was recorded (2023: €8.8 million, €1.1 million in Romania and €7.7 million in Poland). In Romania such temporary non-deductible interest expenses can be carried forward indefinitely until they are tax deductible as per EBITDA threshold. Nevertheless, starting 1 January 2025, the threshold for deductibility of interest expense which will be subject to 30% of tax EBITDA is decreased from €1 million to €500,000. On the other hand, in Poland, the interest expense which was already paid prior to the financial position date (and corresponding net foreign exchange loss on such interest expense) can only be utilised over five consecutive tax years from the year of origination and unpaid interest expense (and corresponding net foreign exchange loss on such interest expense) is available for utilisation indefinitely. As of 31 December 2024, out of the total €4.1 million (2023: €7.7 million) deferred tax asset on interest expense and foreign exchange loss recognised in Poland, €1.5 million (2023: €1.5 million) is available for utilisation in five years from the origination. Judgements, Estimates and Assumptions Used for Assessed Tax Losses and Related Deferred Tax Assets At each statement of financial position date, the Group assesses whether the realisation of future tax benefits is sufficiently probable to recognise deferred tax assets. This assessment requires the exercise of judgement on the part of management with respect to, among other things, benefits that could be realised from available tax strategies and future taxable income, as well as other positive and negative factors. Based on the above assessment, the Group recognised deferred tax income related to deferred tax asset for fiscal losses carried forward for an amount of €0.9 million (2023: deferred tax expense of €0.6 million) representing derecognition of deferred tax assets of €1 million (2023: derecognition of nil) in Romania, due to improved actual tax results and transition of some subsidiaries to a taxable profit position, and derecognition of deferred tax assets of €0.1 million (2023: derecognition of €0.6 million) in Poland, due to improved actual tax results. The recorded amount of total deferred tax assets could be reduced if estimates of projected future taxable income or if changes in current tax regulations are enacted that impose restrictions on the timing or extent of the Group’s ability to utilise future tax benefits. 11 Taxation continued 11.1 Deferred Tax (asset)/liabilities Note 2024 €’000 2023 €’000 Deferred tax asset (2,629) (1,423) Deferred tax liabilities directly associated with the assets held for sale 3.3 643 1,379 Deferred tax liabilities 118,184 139,299 116,198 139,255 Consolidated statement of financial position Consolidated statement of comprehensive income Net Deferred Tax Liability 2024 €’000 2023 €’000 2024 €’000 2023 €’000 Valuation of investment property at fair value 124,032 152,280 (12,934) (28,790) Deductible temporary differences (2,306) (2,397) 77 (1,150) Interest expense and foreign exchange loss on intra-group loans (4,421) (8,803) 4,048 9,940 Discounting of tenant deposits and long-term deferred costs 146 118 31 50 Share issue cost recognised in equity (7) (7) – – Valuation of financial instruments at fair value (158) 48 (211) (24) Recognised unused tax losses (1,088) (2,069) 981 (626) Derecognised on subsidiary disposal – 85 – – 116,198 139,255 (8,008) (20,600) The deferred tax assets for deductible temporary differences are related to allowances recorded for trade receivables, in amount of €0.8 million (2023: €0.6 million) in Romania and €1.5 million (2023: €1.8 million) in Poland. The Group is also recording deferred tax assets for unused tax losses and carried forward Interest expense and foreign exchange loss on intra-group loans. The unused assessed tax losses carried forward of €8.8 million (2023: €32.3 million) in Romania and €15.1 million (2023: €14.7 million) in Poland are available for offset against future taxable profits of the entity which has the tax losses. The tax losses recorded by Romanian subsidiaries before 1st January 2025 can be carried forward for seven years from the year of generation. However, starting 2025, tax losses can be used up to 70% of the taxable income computed by the entity. Also, the tax losses incurred from 1 January 2025 can be carried forward only for five consecutive years and within the 70% limit mentioned above. The tax losses in Poland can be carried forward for a period of five consecutive tax years from the year of origination. In Poland, in any particular tax year, the taxpayer may not deduct more than 50% of the loss incurred in the year for which it was reported. Additionally, starting from 2020, the taxpayer may utilise one-time tax losses 113 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section III: Financial Results continued Key Alternative Performance Measures The Company distributes on a semi-annual basis a dividend to its shareholders of not less than 90% of the Company’s funds from operations, estimated using EPRA Earnings, subject to solvency and other legal requirements. EPRA Earnings is a non-IFRS measure. EPRA Earnings Per Share The following table reflects the reconciliation between IFRS Earnings as per the statement of comprehensive income and EPRA Earnings (non-IFRS measure): Note 2024 €’000 2023 €’000 Earnings attributable to equity holders of the Company (IFRS) (81,619) (54,152) Fair value loss on investment property 3.4 99,839 164,908 Loss/(Profit) on disposal of investment property and related tax credit 24,623 (6,268) Loss on disposal of subsidiaries 29 851 474 Loss on sale of residential properties 1,194 269 Net loan close-out costs 10.2 12,140 – Gain on Notes buy-back 10.3 (402) (15,809) Changes in the value of financial assets at fair value through profit or loss (3,206) 1,393 Deferred tax charge in respect of above adjustments (13,145) (28,814) Non-controlling interests’ share of above items (2) 284 Adjustments in respect of joint ventures for above items 9,434 (975) EPRA Earnings attributable to equity holders of the Company 56,119 61,310 EPRA Earnings per share Cents Restated* Cents – Basic 21 25 – Diluted 21 25 * EPRA Earnings per share as of 31 December 2023 have been calculated based on weighted average of the diluted number of shares following the IFRS requirements. 12 Earnings Per Share The following table reflects the data used in the calculation of basic and diluted earnings per share per IFRS and EPRA guidelines: Date Event Number of shares issued (‘000) % of the year Weighted average (‘000) 01-Jan-2023 At the beginning of the year 227,486 227,486 Bonus effect of scrip dividend shares (Apr-24)* 2,793 2,793 Bonus effect of scrip dividend shares (Oct-24)* 2,513 2,513 Apr-2023 Share issued for scrip dividend (excluding bonus effect) 11,445 11,445 Oct-2023 Share issued for scrip dividend (excluding bonus effect) 13,007 13,007 2023 Shares in issue at year-end (basic) 257,242 257,242 Jan–Dec 2023 Effect of dilutive shares 150 91% 137 2023 Shares in issue at year-end (diluted) 244,386 257,379 Jan-2024 At the beginning of the year 257,242 257,242 Apr-2024 Shares issued for scrip dividend (excluding bonus effect) 11,169 73% 8,109 Oct-2024 Shares issued for scrip dividend (excluding bonus effect) 10,048 20% 2,037 2024 Shares in issue at year-end (basic) 278,460 267,389 Jan–Dec 2024 Effect of dilutive shares 41 31 2024 Shares in issue at year-end (diluted) 278,501 267,420 Subsequent to 31 December 2024, no new shares were issued. 2024 €’000 2023 €’000 (Loss) attributable to equity holders of the Company for the basic and diluted earnings per share (81,619) (54.152) IFRS Earnings per share Cents Restated* Cents – Basic (31) (22) – Diluted (31) (22) * The IFRS Earnings per share for the year 2023 have been restated following the IAS 33 “Earnings per Share” requirements regarding accounting for scrip dividend issued in 2024, the number of scrip dividend share being calculated based on a discount of 20%. 114 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities 13.2 Financial Assets at Amortised Cost Cash and cash equivalents, contract assets (note 7.2), trade and other receivables, other receivables, guarantees retained by tenants and loan receivables from joint ventures (note 27). The Group classifies its financial assets as at amortised cost only if both of the following criteria are met: • the asset is held within a business model whose objective is to collect the contractual cash flows; and • the contractual terms give rise to cash flows that are solely payments of principal and interest. Interest income from the financial assets at amortised cost is included in finance income using the effective interest rate method and is subject to impairment. Any gain or loss arising on derecognition is recognised directly in the statement of comprehensive income and presented in other income or expenses. Note 19.2 provides information about the Group’s exposure to credit risk and the impairment loss recognised during the year on the financial assets subject to impairment. 13.2.1 Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of change in value. Such investment includes cash in hand and cash balances at banks and short-term bank deposits with a maturity of three months or less. 13.2.2 Trade and Other Receivables Trade receivables are amounts due from tenants for rent and services performed in the ordinary course of business. They are generally due for settlement within 30 days and assessed as working capital in the ordinary course of business; therefore, they are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional under IFRS 15 unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method. Trade and other receivables, together with the associated provision if any, are written off when there is no realistic prospect of future recovery, and all collateral has been realised or has been transferred to the Group. If collection is expected in more than one year, they are classified as non-current assets. 13.2.3 Equity Investments Through Other Comprehensive Income (with no recycling of cumulative gains and losses upon derecognition) Financial assets at fair value through other comprehensive income (“FVOCI”) comprise equity investments which are not held for trading, and at initial recognition the Group, at its sole irrevocable option under IFRS 9, designates the unquoted equity investment as financial assets at fair value through other comprehensive income. Under this option, qualifying dividends are recognised in profit or loss. Changes in fair value, net of deferred tax if any, are recognised in other comprehensive income. Subsequently, if the equity investment will be derecognised then the impact of derecognition will remain in other comprehensive income and will not be reclassified to profit and loss. This section focuses on financial instruments, together with the working capital position of the Group and financial risk management of the risks that the Group is exposed to at year end. For financial risk management please refer to note 19. 13 Financial Instruments Policy A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments are recognised on the balance sheet when the Group becomes a party to the contractual obligations of the instrument. The Group determines the classification of its financial assets and financial liabilities at initial recognition. Under IFRS 9 the Group classifies its financial assets in the two main measurement categories, those to be measured subsequently at fair value (either through OCI or through profit or loss) and those to be measured at amortised cost. The classification of the financial asset in either of the above categories depends on the Group’s business model for managing the financial asset and the contractual terms of the cash flows. The Group reclassifies the financial instrument when and only when its business model for managing those assets changes. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (“FVOCI”). Under IFRS 9 transaction costs that are directly attributable to the acquisition of the financial asset are recognised in the carrying amount at the initial date in case of a financial asset not at fair value through profit or loss (“FVPL”). Transaction costs of financial assets carried at FVPL are expensed in profit or loss. A financial asset and a financial liability are offset, and the net amount is reported in the statement of financial position if, and only if, the Group has a legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 13.1 Financial Assets Financial assets of the Group mainly include cash and cash equivalents, contract assets, trade and other receivables and guarantees retained by tenants, loan receivables from joint ventures, equity investments and financial assets at fair value through profit or loss. A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights to receive cash flows from the asset have expired; or the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either: (a) the Group has transferred substantially all the risks and rewards of the asset; or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset. Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. 115 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 13.3.3 Tenant security deposits The Group records a liability for the discounted tenant security deposit, reflected at the present value of the expected refund amount. At the time of receipt, the Group recognizes the security deposit at its discounted present value, the difference between the nominal deposit amount and the discounted present value is recognized as a finance cost over the life of the deposit. The difference between the nominal deposit and its discounted present value is amortized over the term of the deposit. The amortization is typically recognized as finance income over the period until the deposit is refunded. 14 Interest-Bearing Loans and Borrowings This note describes information on the material contractual terms of the Group’s interest-bearing loans and borrowings. For more information about the Group’s exposure to market risk, currency risk and liquidity risk, see note 19. 2024 €’000 2023 €’000 Current portion of: Secured loans and accrued interest 115,086 13,086 Unsecured loans, fixed-rate bonds and accrued interest 17,495 15,523 Sub-total 132,581 28,609 Non-current Secured loans 607,598 650,460 Unsecured loans and fixed rate bonds 570,652 924,311 Sub-total 1,178,250 1,574,771 Total 1,310,831 1,603,380 13 Financial Instruments continued Policy continued 13.2.3 Equity Investments Through Other Comprehensive Income (with no recycling of cumulative gains and losses upon derecognition) continued The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The fair value under these valuation techniques is classified as Level 3. The Group uses its judgement to select a variety of methods (including external transactions with third parties to raise equity or convertible debt by the investee, enterprise value using future cash flows, the performance of investee, annual budget and future business plans) and make assumptions that are mainly based on market conditions existing at the end of each reporting period. 13.2.4 Financial Assets at Fair Value Through Profit or Loss Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss. 13.3 Financial Liabilities Financial liabilities of the Group mainly comprise interest-bearing loans and borrowings, contract liabilities (note 7.2), trade and other payables, guarantees retained from contractors, finance lease payables, other derivative financial liabilities and tenant security deposits (note 13.3.3). A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and any gain or loss in the respective carrying amounts is recognised in the statement of comprehensive income. 13.3.1 Interest-Bearing Loans and Borrowings All loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs, and are subsequently measured at amortised cost using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. The calculation takes into account any premium or discount on the acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. 13.3.2 Derivative Financial Instruments Derivatives are recognised initially and are subsequently remeasured at fair value. Derivatives are classified as assets when their fair value is positive or as liabilities when their fair value is negative. Derivative assets and liabilities arising from different transactions are offset only if the transactions are with the same counterparty, a legal right of offset exists, and the parties intend to settle the cash flows on a net basis. Fair value movements on derivative financial instruments at fair value through profit and loss accounts are recognised in the statement of comprehensive income. 116 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 14 Interest-Bearing Loans and Borrowings continued 14.1 Key Terms and Conditions of Outstanding Debt 2024 2023 Facility Currency Nominal interest rate Maturity date Face value €’000 Carrying value €’000 Face value €’000 Carrying value €’000 Loan 16 EUR EURIBOR 3-month + margin March 2031 9,763 9,715 11,000 10,999 Loan 37 EUR Fixed rate Bond March 2025 – – 460,247 458,649 Loan 381 EUR Fixed rate & Floating rate EURIBOR 3-month + margin May 2025 100,110 100,070 100,121 100,083 Loan 41 EUR EURIBOR 3-month + margin March 2029 83,872 83,466 85,991 85,503 Loan 44/45 EUR Fixed rate February 2027 62,295 62,180 62,295 62,122 Loan 46 EUR Fixed rate November 2029 65,043 64,625 65,043 64,542 Loan 48 EUR Fixed rate Bond July 2026 – – 405,011 396,120 Loan 49 EUR Fixed rate March 2029 – – 272 272 Loan 50 EUR Fixed rate March 2029 – – 380 380 Loan 51 EUR EURIBOR 6-month + margin May 2028 85,142 84,465 85,217 84,413 Loan 53 EUR EURIBOR 3-month + margin December 2032 – – 94,860 93,663 Loan 54 EUR EURIBOR 3-month + margin September 2034 – – 3,206 3,151 Loan 55 EUR EURIBOR 3-month + margin October 2030 145,329 143,984 145,351 143,811 Loan 56 EUR EURIBOR 3-month + margin December 2030 43,806 43,491 45,033 44,741 Loan 57 EUR EURIBOR 3-month + margin June 2034 55,267 54,962 55,155 54,931 Loan 58 EUR EURIBOR 6 month + margin February 2036 24,127 23,840 – – Loan 59 EUR Fixed rate Bond March 2029 230,147 227,369 – – Loan 60 EUR Fixed rate Bond March 2030 280,180 276,245 – – Loan 61 EUR EURIBOR 3-month + margin October 2031 42,281 41,976 – – Loan 62 EUR EURIBOR 3-month + margin December 2031 95,191 94,443 – – Total 1,322,553 1,310,831 1,619,182 1,603,380 1. Loan 38 was drawn down in two tranches – 95% of the facility carries a fixed interest rate and 5% carries a floating interest rate. 117 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued Financial Covenants Financial covenants on secured loans are calculated based on the individual financial statements of the respective subsidiaries, as of each calculation date specified in the loan agreement, on an annual, bi-annual or quartelty basis, and subject to the following ratios: • gross loan-to-value ratio (“LTV”) with maximum values ranging from 45%–83% (2023: 45%–83%). LTV is calculated as the loan value divided by the market value of the relevant property; • the debt service cover ratio (“DSCR”) minimum values of 120% (2023: 120%). DSCR is calculated, depending on the respective credit facility, on the preceding 12-month historical ratio or projected future 12-month period ratio; • minimum interest cover ratio (“ICR”) projected with minimum values from 140% (2023: 140%), which was applicable to two properties as at 31 December 2024 (31 December 2023: two). Historic ICR is calculated as Actual Net Rental Income as a percentage of the Actual Interest Costs for the 12 preceding months period from the calculation date. Projected ICR is calculated as Projected Net Rental Income as a percentage of the Projected Interest Costs for the 12-month period commencing immediately after the date of the calculation; and • debt yield ratio (“DYR”) with minimum values of 5%. DYR is calculated as the 12-month projected Net Operating Income divided by the loan outstanding value at a relevant calculation date. Secured bank loans are secured by investment properties which were recognised in the statement of financial position at the fair value of €1,554 million at 31 December 2024 (2023: €1,427 million) and also carry pledges on rent and other receivable balances of €13.9 million (2023: €8.5 million), VAT receivable balances of €2 million (2023: €0.4 million) and a moveable charge on the respective bank accounts (refer to note 19). The Group is in compliance with all financial covenants and there were no payment defaults during the year 2024 (2023: no). As of 31 December 2024, the Group had undrawn borrowing facilities of €115 million (2023: €272 million), out of this €50 million RCF available until December 2025. Loan From Non-Controlling Interest Holders to a Subsidiary Following the disposal of subsidiaries with non-controlling interest (note 29), the Company derecognised loans received from minority shareholders for an amount of €0.3 million and €0.4 million respectively (loan 49 and loan 50). 14 Interest-Bearing Loans and Borrowings continued 14.1 Key Terms and Conditions of Outstanding Debt continued Unsecured Corporate Bonds In April 2024, the Company successfully completed a bond exchange exercise thus €142.9 million nominal value of 18/25 Notes (loan 37) was repaid and €66.6 million nominal value of 20/26 Notes (loan 48) was repaid. The remaining nominal values of €307.1 million and €333.4 million were exchanged into two new 6.25% Senior Notes due in March 2029 and in March 2030. As part of the extingushment of the previous bonds the Group recorded in the profit and loss account, debt close out costs of €12.1 million, being unamortised part of capitalised costs, this includes €3.0 million costs on the exchange exercise that did not meet the capitalisation criteria, being allocated to the repayment of the 18/25 and 20/26 Notes. In accordance with the terms and conditions of the bonds, following the disposal of the logistics properties in May 2024 (see note 3.5), in June 2024 the Company used part of the net proceeds received from the sale to redeem at par €45 million of the Notes due 2029 (loan 59) and €20 million of the Notes due 2030 (loan 60). In July 2024 the Company launched a tender offer addressed to the holders of its Notes under which they were invited to tender their Notes for purchase by the Company for cash. Thus, the Company purchased €38.2 million of the Notes due 2029 and €45 million of the Notes due 2030 by paying a total price of €80.3 million plus the accrued interest under the purchased Notes. Financial Covenants for Unsecured Corporate Bonds Financial covenants on unsecured fixed-rate bonds are calculated on a semi-annual basis at 30 June and 31 December each year and include the Consolidated Coverage Ratio, with a minimum value of 200%, the Consolidated Leverage Ratio, with a maximum value of 60%, and the Consolidated Secured Leverage Ratio, with a maximum value of 30%. Unsecured Revolving Credit Facility (“RCF”) As of 31 December 2024, we hold €50 million for utilisation available until December 2025. Previously, the RCF €215 million available until March 2024 was voluntarily cancelled in February 2024. Unsecured International Finance Corporation (“IFC”) Loan At the end of May 2022, the Group entered into a six-year term unsecured loan agreement for €85 million with IFC (loan 51). The IFC loan terms have been aligned with the Company’s Revolving Credit Facility terms including financial covenants. Secured Facilities Following the disposal of subsidiaries (note 29), the Company derecognized the secured facilities related to the respective properties (loan 53 and loan 54). New Facilities • In February 2024 the Group entered a €25 million twelve-year term secured debt facility which was signed with Libra Bank. The facility was drawn in full on 21 February 2024. • During the first half of 2024, the Group entered into two new seven-year term loans for €42 million in May and €95 million in June with Banca Comerciala Romana and Erste Group Bank AG secured with office buildings of the Group. The loans were drawn in full on 18 November and 18 December 2024. • In November 2024, the Group entered into two new ten-year term loans for €30 million and €35 million with Banca Transilvania secured with office buildings of the Group, available to use for a period of nine months. 118 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 16 Equity Investments 31-Dec-24 €’000 31-Dec-23 €’000 Name of investees Mindspace Ltd 4,254 4,254 Early Game Venture Fund I Coöperatief U.A. 1,782 1,668 Gapminder Fund Coöperatief U.A. 1,974 1,922 Equity investments (unquoted) 8,010 7,844 Judgements The Group considers investment in the above entities as strategic and their classification as a financial asset at fair value through other comprehensive income is more relevant instead of a financial asset at fair value through the income statement. The classification criteria were assessed separately for each investment at the initial recognition. Estimates Used in the Valuation Technique and Key Inputs In determining fair value, the Group relied on the financial data of investees’ portfolios and estimates by the management of the investee portfolio companies as to the effect of future developments. Although the Group uses its best judgement, there are inherent limitations in any estimation techniques. Any change in the discount rate, WACC, and/or EBITDA multiple used in valuation may have a significant impact on the estimated value at 31 December 2024. The fair value estimates attempt to present the amount the Group could realise in a current transaction; the final realisation may be different as future events will also affect the current estimates of fair value. Investment in Mindspace Ltd In 2018, the Group entered into an agreement with Mindspace Ltd, receiving a 4.99% stake in Mindspace Ltd (which was subsequently decreased to 3.69% following an equity raise in 2021) in return for investing €8.6 million in the company’s Preferred A-2 class shares. As of 31 December 2024, the Group holds 3.77% of total equity. Mindspace Ltd commenced its operations in 2013 with subsidiaries in Cyprus, Poland, Germany, the UK, the USA, the Netherlands and Romania. The company leases office spaces for long-term periods, renovates them and turns them into modern shared offices/coworking spaces while providing its customers with office spaces and additional services. The company is also a tenant of the Group, in Poland and Romania. 15 Trade and Other Payables 2024 €’000 2023 €’000 Current Payable for property service charges 10,983 13,108 Payable to suppliers for properties under development 11,354 10,777 Advances received for sale of investment property/ property held for sale - 1,200 Deferred income for rent 7,630 7,579 Salaries and related payables 200 1,361 Accruals for administrative expenses 2,254 1,692 Accruals for other costs 467 166 Other taxes payable 4,726 152 Other short-term payables 434 16 38,048 36,051 Non-current Consideration payable for asset acquisition 399 78 119 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 17 Trade and Other Receivables Note 2024 €’000 2023 €’000 Current Rent and service charges receivable 16,643 15,909 VAT and other taxes receivable 6,784 169 Consideration receivable for subsidiary disposal 3.5 24,790 3,084 Consideration receivable for ROFO – 3,322 Guarantees paid to suppliers 1,579 – Advances to suppliers for services 1,261 472 Sundry debtors 294 166 51,351 23,122 Rent and Service Charges Receivable Rent and service charges receivable are shown, in the above table, net of allowance for expected credit losses of €6.5 million (2023: €6 million). Rent and service charges receivable are non-interest-bearing and are typically due within 30–90 days (see more information on credit risk and currency profile in note 19.2). For the terms and conditions for related party receivables, see note 30. Consideration Receivable for Subsidiary Disposal The consideration receivable for the Warta disposal in 2023 of €20 million will be received in October 2025. The receivable carries interest of 13% p.a.. Total consideration, including accrued interest receivable as of 31 December 2024 was €24.8 million (2023: €21.2 million). As of 31 December 2023, the amount was presented as other receivable, non-current. 16 Equity Investments continued Fair Value Measurement The fair value of the Group’s participation in Mindspace Ltd was calculated, internally by the management (2023: internally by the management), based on the net present value of estimated future cash flows, using a discounted cash flows model. The valuation methodology requires the making of certain assumptions about the key inputs used, including forecasted discounted cash flows (which were based on the investee’s forecast earnings as per business plan, the discount rate of 7.5% and EBITDA multiple of 13.4 (based on the three-year EBITDA multiple of a comparable quoted global company operating in a similar industry). Based on the above analysis as at 31 December 2024, the fair value amount was marginally higher than the carrying value therefore nil fair value gain or loss was recorded in the other comprehensive income (2023: nil). Furthermore, as at 31 December 2024, a 10% change in EBITDA multiple or 50 bps change in the discount rate would have an insignificant impact on the carrying value. Since, the capital gains or losses on the underlying investments are subject to 0% capital gains taxes in Cyprus therefore no deferred tax asset was recorded in other comprehensive income related to fair value loss. As at 31 December 2024, a 1% increase or (decrease) in fair value of equity share in the investee would have increased/(decreased) the fair value loss/(gains) on the investment by €0.13 million (2023: €0.08 million). Investment in Venture Funds Early Game Venture Fund I Coöperatief U.A. (”Early Game”) Early Game is a venture fund that invests in tech start-ups in Romania through the Competitiveness Operational Program and is co-funded by the European Regional Development Fund. Globalworth Tech Limited, a fully owned subsidiary of the Group, is committed to investing in total €2.0 million in this fund. Globalworth Tech Limited invested €1.7 million in Early Game in the prior years. During 2024, the subsidiary participated in further equity calls and invested another €0.1 million (2023: €0.2 million). Gapminder Fund Coöperatief U.A. (“Gapminder“) In the prior years, Globalworth Tech Limited invested €1.9 million in Gapminder and participated in further equity calls of €0.05 million during 2024 (2023: €0.1 million). Gapminder is a venture fund that invests in tech start-ups in Romania through the Entrepreneurship Accelerator and Seed Fund Financial Instrument in Romania and is co-funded by the European Investment Fund. The Group is committed to investing in total €2.4 million out of the fund’s total planned investment value of €50 million. At 31 December 2024, the Group assessed the fair value of its investments based on the latest available management accounts of both funds and the underlying enterprise value of each tech start-up and seed investments by Early Game and Gapminder. The enterprise value of underlying investments is based on last capital raises initiated by such seed investment and pre-seed investment which is participated in by third parties. Based on this analysis, no fair value gain was recognised in other comprehensive income as the change in the value of both investments was insignificant to the cost of the initial investment (2023: insignificant). 120 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 19 Financial Risk Management – Objective and Policies The Group is exposed to the following risks from its use of financial instruments: • Market risk (including currency risk and interest rate risk); • Credit risk; and • Liquidity risk. Refer to the Principal Risks & Uncertainties section, pages 65 to 71, for further details on the Group’s Risk Management Framework, covering Business Environment Risks, Property Portfolio Risks, Financial, Financing & Liquidity Risks and Regulatory Risks. Financial, Financing & Liquidity Risks sub-section from the Group’s risk management framework primarily addresses the lack of available financing and refinancing risks of outstanding debt, risk of breach of loan covenants for outstanding debt at 31 December 2024 and changes in interest rate risk impacting our future cash flows and liquidity position. 19.1 Market Risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Group’s market risks arise from open positions in: (a) foreign currencies; (b) interest-bearing assets and liabilities, (c) investments in equity instruments – refer to note 16, and (d) fair value of investment property – refer to note 4, to the extent that these are exposed to general and specific market movements. 19.1 a) Foreign Currency Risk The Group has entities registered in several EU countries, with the majority of operating transactions arising from its activities in Romania and Poland. Therefore, the Group is exposed to foreign exchange risk, primarily with respect to the Romanian Lei (“RON”) and Polish Zloty (“PLN”). Foreign exchange risk arises in respect of those recognised monetary financial assets and liabilities that are not in the functional currency of the Group. 18 Cash and Cash Equivalents 2024 €’000 2023 €’000 Cash at bank and in hand 96,907 171,596 Short-term deposits 236,653 224,663 Cash and cash equivalents as per statement of financial position 333,560 396,259 Cash at bank and in hand includes restricted cash balances of €8.9 million (2023: €5.7 million) and short-term deposits include restricted deposits of €12 million (2023: €14.9 million). The restricted cash balance can be used to repay the outstanding debts and repayment of deposits to tenants. Details of cash and cash equivalents denominated in foreign currencies are disclosed in note 19.1. Short-term deposits are made for varying periods depending on the immediate cash requirements of the Group and earn interest at rates on Euro deposits ranging from minus 0.2% to positive 4.5% (2023: minus 0.6% to positive 3.9%) per annum, for PLN deposits from nil to 3.9% (2023: 1.83% to 4.70%) per annum and for RON deposits from 3.9% to 5.6% (2023: 5.3% to 5.8%) per annum. For RON deposits the highest interest rate was earned on overnight deposits. 121 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 19 Financial Risk Management – Objective and Policies continued 19.1 Market Risk continued 19.1 a) Foreign Currency Risk continued The Group’s exposure to foreign currency risk was as follows (based on nominal amounts): 2024 2023 Denominated in Denominated in Amounts in €’000 equivalent value RON PLN GBP USD RON PLN GBP USD ASSETS Cash and cash equivalents 23,974 22,186 71 12 14,869 18,413 56 11 Trade and other receivables 11,085 14,010 – – 8,680 9,641 – – Contract assets 4,111 2,473 – – 4,866 3,004 – – Income tax receivable – 116 – – 1 1,085 – – Total 39,170 38,785 71 12 28,416 32,143 56 11 LIABILITIES Trade and other payables 15,519 10,040 – – 13,868 17,731 – – Lease liability – 28,858 – – – 26,757 – – Income tax payable 551 263 – – 681 126 – – Guarantees from subcontractors 530 3,357 – – 825 4,986 – – Deposits from tenants 4,511 7,129 – – 4,100 6,857 – – Total 21,111 49,647 – – 19,474 56,458 – – Net exposure 18,059 (10,862) 71 12 8,942 (24,315) 56 11 122 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued Based on the Group’s debt balances at 31 December 2024, an increase or decrease of 100 basis points in EURIBOR will result in an increase or decrease (net of tax) of interest expense by €1.8 million per annum (2023: €2.9 million per annum), with a corresponding impact on equity for the same amount, respectively. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. 19.2 Credit Risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group’s policy is to trade with recognised and creditworthy third parties. The Group’s exposure is continuously monitored and spread amongst approved counterparties. The Group’s maximum exposure to credit risk, by class of financial asset, is equal to their carrying values at the statement of financial position date. Note 2024 €’000 2023 €’000 Non-current assets Loan receivable from joint venture 27 3,744 45,732 Equity investments 16 8,010 7,844 Other receivables 3.4 – 21,182 Non-current financial assets 19.2 3,067 – Current assets Financial assets measured at fair value through profit or loss – 3,322 Consideration receivable for subsidiary disposal 3.4 24,790 3,084 Trade receivables – net of provision 17 16,643 15,909 VAT and other taxes receivable 17 6,784 169 Guarantees paid to suppliers 17 1,579 – Other receivables 17 294 166 Contract assets 5,702 6,985 Guarantees retained by tenants 97 99 Income tax receivable 118 1,084 Current financial assets – 197 Cash and cash equivalents 18 333,560 396,259 404,388 502,032 Financial Assets at Fair Value Through Profit or Loss and Other Comprehensive Income The Group places funds in financial instruments issued by reputable real estate companies with high credit worthiness. 19 Financial Risk Management – Objective and Policies continued 19.1 Market Risk continued Foreign Currency Sensitivity Analysis As of the statement of financial position date, the Group is mainly exposed to foreign exchange risk in respect of the exchange rate fluctuations of the RON and PLN. The following table details the Group’s sensitivity (impact on income statement before tax and equity) to a 5% devaluation in RON, PLN and GBP exchange rates against the Euro, on the basis that all other variables remain constant. The 5% sensitivity rate represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the reporting date for a 5% appreciation in the Euro against other currencies. 2024 2023 All amounts in €’000 Profit or (loss) Equity Profit or (loss) Equity RON (903) (903) (447) (447) PLN 543 543 1,216 1,216 USD (1) (1) (1) (1) GBP (4) (4) (3) (3) A 5% devaluation of the Euro against the above currencies would have had an equal but opposite impact on the above currencies to the amounts shown above, on the basis that all other variables remain constant. 19.1 b) Interest Rate Risk Interest rate price risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates relative to the interest rate that applies to the financial instrument. Interest rate cash flows risk is the risk that the interest cost will fluctuate over time. The Group’s interest rate risk principally arises from interest-bearing loans and borrowings. As at 31 December 2024, out of the total outstanding balance of interest-bearing loans and borrowings, 66.3% (2023: 76.1%) carry fixed-rate interest, as a consequence, the Group is exposed to fair value interest rate risk, which has been disclosed under IFRS. As of 31 December 2024, the fair value of such fixed-rate debt was higher by €9.4 million (2023: lower by €98.7 million due to due to lower 18/25 and 20/26 Notes prices caused by market conditions) than the carrying value as disclosed below in the fair value hierarchy table. The Group monitors on a regular basis the cost of its debt financing and has a preference towards fixed rate long-term financing either through fixed rate secured or unsecured loans or variable rate loans where the risk for interest rate increase is mitigated through fixed-variable swaps or caps from case-by-case basis. Furthermore, as at 31 December 2024, out of the total outstanding interest-bearing loans and borrowing balance, 33.4% (2023: 23.9%) carry a variable interest rate, which ranges from EURIBOR three-month to EURIBOR six-month rates; see note 14 for details on each individual loan. These loans expose the Group to cash flow interest rate risk and, in order to minimise this risk, the Group hedged 60.3% (31 December 2023: 23.7%) of such variable interest rate exposure with fixed-variable interest rate swap instruments. 123 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued Days past due 2023 (€’000) Current <90 days <120 days <365 days >365 days Total Trade and other receivables – gross 9,642 5,725 374 2,102 4,092 21,935 Less: Specific allowance 50 378 91 1,054 4,092 5,665 Less: Expected credit loss 4 198 7 152 – 361 Carrying amount 9,588 5,148 276 896 – 15,909 Expected credit loss rate 0.0% 3.8% 2.5% 17.0% – The Group considers that a default on a trade receivable occurs when the counterparty fails to make contractual payments within 90 days of when they fall due. The customer balances which were overdue but for which no specific loss allowance was recorded are due to the fact that the related customers committed and started to pay the outstanding balances subsequent to the year-end. Further deposits payable to tenants may be withheld by the Group in part or in whole if receivables due from the tenant are not settled or in case of other breaches of contractual terms. VAT and Other Taxes Receivable This balance relates to corporate income tax paid in advance, VAT and other taxes receivable from the tax authorities in Romania and Poland. The balances are not considered to be subject to significant credit risk as all the amounts receivable from Government authorities are secured under sovereign warranty. Cash and Cash Equivalents The credit risk on cash and cash equivalents is very small, since the cash and cash equivalents are held at reputable banks in different countries. The most significant part of the cash and cash equivalents balances is kept at the company level with international banks having credit rating profiles (assigned by S&P, Moody’s or Fitch) in the upper-medium grade range (i.e. A+ to A− for long-term and P-1 to P-2 and F1+ to F2 for short-term) for 86% (2023: 68%) of the cash and cash equivalents balance of the Group, in lower-medium investment grade range (BBBs) for 13% (2023: 32%) of the cash and cash equivalents balance of the Group and insignificant amounts (2023: same) in non-investment grade. Surplus funds from operating activities are deposited only for short-term periods, which are highly liquid with reputable institutions. Loan Receivable from Joint Ventures The outstanding loan balance is neither past due nor impaired. Loans receivable from joint ventures are considered to be low credit risk where they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations. 19 Financial Risk Management – Objective and Policies continued 19.2 Credit Risk continued Contract Assets and Trade Receivables A trade receivable is recognised if an amount of consideration that is unconditional is due from the customer (only the passage of time is required before payment of the consideration is due). There is no significant concentration of credit risk with respect to contract assets and trade receivables, as the Group has a large number of tenants, most of which are part of multinational groups, internationally dispersed, as disclosed in the Operational Review of the Annual Report. For related parties, including joint ventures, it is assessed that there is no significant risk of non-recovery. Estimates and Assumptions Used for Impairment of Trade Receivables and Contract Assets The Group’s trade receivables do not contain any financing component and mainly represent lease receivables. Therefore, the Group applied the simplified approach under IFRS 9 and measured the loss allowance based on a provision matrix that is based on the historical collection and default experience adjusted for forward-looking factors (such as macroeconomic forecasts of unemployment, economic sentiment indicator, real GDP growth, inflation rate) in order to estimate the provision on initial recognition and throughout the life of the receivables at an amount equal to lifetime ECL (Expected Credit Losses). The assessment is performed on a six-month basis and any change in original allowance will be recorded as gain or loss in the income statement. The movements in the provision for impairment of receivables during the respective periods were as follows: 2024 €’000 2023 €’000 Opening balance 6,026 4,112 Specific allowance for expected credit losses 1,052 2,741 Reversal of provision for doubtful debts (128) (489) Foreign currency translation income (474) (338) Provisions income (8) – Closing balance 6,468 6,026 The analysis by the credit quality of financial assets, cumulated for rent, service charge and property management, is as follows: Days past due 2024 (€’000) Current <90 days <120 days <365 days >365 days Total Trade and other receivables – gross 10,113 4,666 943 2,533 4,856 23,111 Less: Specific allowance – 31 106 1,114 4,856 6,107 Less: Expected credit loss 4 198 7 152 – 361 Carrying amount 10,109 4,437 830 1,267 – 16,643 Expected credit loss rate 0.0% 4.5% 0.8% 12.0% – 124 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 19 Financial Risk Management – Objective and Policies continued 19.2 Credit Risk continued Financial Instruments for Which Fair Values are Disclosed Set out below is a comparison by class of the carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that are reasonable approximations of their fair values (such as: financial assets, guarantees retained by tenants, deposits from tenants, guarantees retained from contractors, financial liabilities, trade receivables and trade payables). Year Carrying amount €’000 Fair value hierarchy Level 1 €’000 Level 2 €’000 Level 3 €’000 Total €’000 Interest-bearing loans and borrowings (note 14) 2024 1,310,831 495,636 – 824,570 1,320,206 2023 1,603,380 740,761 – 763,869 1,504,630 Lease liabilities (note 3.2) 2024 26,360 – – 26,360 26,360 2023 22,438 – – 22,438 22,438 The fair value of financial liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. When determining the fair values of interest-bearing loans and borrowings and lease liabilities the Group used the DCF method with inputs such as discount rate that reflects the issuer’s borrowing rate as at the statement of financial position date. Specifically, for the Eurobonds, their fair value is calculated on the basis of their quoted market price. The Group non-performance risk at the statement of financial position date was assessed to be insignificant. 125 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 19 Financial Risk Management – Objective and Policies continued 19.3 Liquidity Risk The Group’s policy on liquidity is to maintain sufficient liquid resources to meet its obligations as they fall due. Ultimate responsibility for liquidity risk management rests with management. The Group manages liquidity risk by maintaining adequate cash reserves and planning and close monitoring of cash flows. The Group expects to meet its financial liabilities through the various available liquidity sources, including a secure rental income profile, further equity raises and in the medium term, debt refinancing. The current market conditions expose the Group to refinancing risk for its outstanding debt, however this is mitigated through constant monitoring liquidity and maturities of debts financing, frequent communication with current and potential equity and debt investors, as well as continuous discussions with leading global, European, and local institutions in connection with its financing requirements. The below table presents the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay and includes both interest and principal cash flows. As the amount of contractual undiscounted cash flows related to bank borrowings is based on a variable rather than fixed interest rates, the amount disclosed is determined by reference to the conditions existing at the year-end, that is, the actual spot interest rates effective at the end of the year are used for determining the related undiscounted cash flows. Contractual payment term Difference from carrying amount Carrying amount All amounts in €’000 31 December 2024 <3 months 3 months– 1 year 1–5 years >5 years Total Interest-bearing loans and borrowings 25,656 140,205 1,246,773 206,611 1,619,245 (308,414) 1,310,831 Lease liability* – 2,108 9,615 107,592 119,315 (90,457) 28,858 Trade payables and guarantees retained from contracts (excluding advances from customers) 29,812 8,855 2,944 448 42,059 (3,491) 38,568 Other non-current financial liabilities – – – 1,882 1,882 – 1,882 Deposits from tenants 19,011 525 3,353 998 23,887 (834) 23,053 Total 74,479 151,693 1,262,685 317,531 1,806,388 (403,196) 1,403,192 Contractual payment term Difference from carrying amount Carrying amount All amounts in €’000 31 December 2023 <3 months 3 months– 1 year 1–5 years >5 years Total Interest-bearing loans and borrowings 20,968 48,373 1,297,168 494,362 1,860,871 (257,491) 1,603,380 Lease liability* – 1,771 8,775 100,590 111,136 (84,379) 26,757 Trade payables and guarantees retained from contracts (excluding advances from customers) 24,429 8,374 2,994 70 35,866 1,164 37,030 Other payables 16 – – – 16 – 16 Deposits from tenants 17,702 399 2,789 1,573 22,463 (671) 21,792 Total 63,115 58,917 1,311,726 596,595 2,030,352 (341,377) 1,688,975 *Include lease liabilities directly associated with the assets held for sale of €2.4 million at 31 December 2024 (2023: €2.4 million). 126 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 19 Financial Risk Management – Objective and Policies continued 19.3 Liquidity Risk Other Financial Liabilities Other financial liabilities represent the mark-to-market value of swap instruments classified as fair value through profit or loss, for covering the increased EURIBOR obtained from the counterparty financial institution and were valued at €1.9 million at 31 December 2024 (2023: €1.3 million). The fair value of derivative was measured in accordance with the requirements of IFRS 13 “Fair Value Measurement“. Under the terms of the swap agreement, the Group swapped the floating rate of 3 month EURIBOR at a notional amount of €83.1 million with a fixed rate of interest of 2.71% p.a. on the said notional amount with maturity date of April 2029. The movement in fair value recognised in the income statement for the year was a loss of €2.0 million (2023: €0.03 million). Reconciliation of Liabilities Arising from Financing Activities in Cash Flows Non-cash changes movement Description 2023 €’000 Net cash flows €’000 Amortisation in mark-to- market value €’000 Foreign exchange €’000 Finance income €’000 Debt cost amortisation €’000 Derecognised on sale of subsidiary €’000 Interest expense €’000 2024 €’000 Interest-bearing loans and borrowings (note 14) 1,603,380 (275,767) – – (402) 17,396 (95,451) 61,675 1,310,831 Other financial liabilities 1,311 – 571 – – – – – 1,882 Non-cash changes movement Description 2022 €’000 Net cash flows €’000 Amortisation in mark-to- market value €’000 Foreign exchange €’000 Finance income €’000 Debt cost amortisation €’000 Interest expense €’000 2023 €’000 Interest-bearing loans and borrowings (note 14) 1,455,231 109,150 – – (16,285) 7,742 47,542 1,603,380 Other current financial liabilities 67 – 1,244 – – – – 1,311 127 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section IV: Financial Assets and Liabilities continued 20 Capital Management The Company has no legal capital regulatory requirement. The Group’s policy is to maintain a strong equity capital base so as to maintain investor, creditor and market confidence and to sustain the continuous development of its business. The Board considers from time to time whether it may be appropriate to raise new capital by a further issue of shares. The Group monitors capital primarily using an LTV ratio and manages its gearing strategy to a long-term target LTV of less than 40%. The LTV is calculated as the amount of outstanding debt (the Group’s debt balance plus 50% of joint ventures’ debt balance), less cash and cash equivalents (the Group’s cash balance plus 50% of joint ventures’ cash balance), divided by the open market value of its investment property portfolio (the Group’s investment property − freehold portfolio plus 50% of joint ventures’ investment property – freehold value) as certified by external valuers. The future share capital raise or debt issuance are influenced, in addition to other factors, by the prevailing LTV ratio. Note 2024 €’000 2023 €’000 Interest-bearing loans and borrowings (face value) 14 1,322,590 1,619,182 Less: Cash and cash equivalents 18 333,560 396,259 Group interest-bearing loans and borrowings (net of cash) 989,030 1,222,923 Add: 50% share of joint ventures’ interest-bearing loans and borrowings – 17,513 50% share of joint ventures’ cash and cash equivalents (11) (2,506) Combined interest-bearing loans and borrowings (net of cash) 989,019 1,237,931 Group open market value as of financial position date 2,591,800 2,865,688 Add: 50% share of joint ventures’ open market value as of financial position date 27 3,950 64,524 Open market value as of financial position date 2,595,750 2,930,212 Loan-to-value ratio (“LTV”) 38.1% 42.2% Since the carrying value of the lease liability closely matches the fair value of the investment property – leasehold at 31 December 2024 under the applicable accounting policy as per IFRS 16, both asset and liability, related to the right of perpetual usufruct of the lands, are excluded from the above calculation. 128 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section V: Share Capital and Reserves On 12 March 2024, the Company offered a scrip dividend alternative to the interim dividend so that qualifying shareholders can elect to receive new ordinary shares at a reference price of €1.96 per scrip dividend share instead of cash dividend of €0.11 per share. Approximately 98.6% of the qualifying shareholders (excluding shares held in treasury) elected to receive scrip dividend shares in respect of their entitlement to the interim dividend resulting in the issuance of 13,961,334 new shares on 11 April 2024 to qualifying shareholders. On 30 August 2024, the Company offered a scrip dividend alternative to the interim dividend so that qualifying shareholders can elect to receive new ordinary shares at a reference price of €2.08 per scrip dividend share instead of cash dividend of €0.10 per share. Approximately 98.2% of the qualifying shareholders (excluding shares held in treasury) elected to receive scrip dividend shares in respect of their entitlement to the interim dividend resulting in the issuance of 12,560,183 new shares on 2 October 2024 to qualifying shareholders. 22 Dividends Policy The Company recognises a liability to pay a dividend when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the Articles of Incorporation of the Company and Guernsey Company Law, a distribution is authorised when it is approved by the Board of Directors of the Company. A corresponding amount is recognised directly in equity. There are no income tax consequences attached to the payment of dividends in either 2024 or 2023 by the Group to its shareholders. 2024 €’000 2023 €’000 Declared and paid during the year Interim dividend: €0.21 per share (2023: €0.29 per share) 54,351 66,272 On 12 March 2024, the Board of Directors of the Company approved the distribution of an interim dividend in respect of the six-month financial period ended 31 December 2023 of €0.11 per ordinary share. On 30 August 2024, the Board of Directors of the Company approved the distribution of an interim dividend in respect of the six-month financial period ended 30 June 2024 of €0.10 per ordinary share. The disclosures in this section focus on dividend distributions, the share schemes in operation and the associated share-based payment charge to profit or loss. Other mandatory disclosures, such as details of capital management, are also disclosed in this section. 21 Issued Share Capital Policy Ordinary shares are classified as equity. The costs of issuing or acquiring equity are recognised in equity (net of any related income tax benefit), as a reduction of equity on the condition that these are incremental costs directly attributable to the equity transaction that otherwise would have been avoided. The costs of an equity transaction that is abandoned are recognised as an expense. Those costs might include registration and other regulatory fees, amounts paid to legal, accounting and other professional advisers, printing costs and stamp duties. The Company can offer to shareholders to elect to receive dividends from the Company in the form of scrip dividend shares rather than cash and the Directors believe that this is likely to benefit both the Company and shareholders. If shareholders qualify and elect to receive scrip dividend shares, the Company will benefit from the ability to retain the cash which would otherwise have been paid out as dividends. Those shareholders can also increase their holding of shares without incurring dealing costs. 2024 2023 €’000 Number (’000) €’000 Number (’000) Opening balance 1,769,456 252,990 1,704,476 222,427 Shares issued for scrip dividend 53,489 26,521 65,134 30,563 Transaction costs on the issuance of shares (11) – (154) – Balance at 31 December 1,822,934 279,511 1,769,456 252,990 Ordinary shares carry no right to fixed income but are entitled to dividends as declared from time to time. Each ordinary share is entitled to one vote at meetings of the Company. There is no limit on the authorised share capital of the Company. The Company can issue no par value and par value shares as the Directors see fit. Under Guernsey company law there is no distinction between distributable and non-distributable reserves, requiring instead that a company passes a solvency test in order to be able to make distributions to shareholders. Similarly, the share premium for the issuance of shares above their par value per share was recognised directly under share capital and no separate share premium reserve account was recognised. At an extraordinary general meeting of the Company held on 8 March 2023, a resolution was passed to grant the Board of Directors the authority to offer a scrip dividend alternative to shareholders, so that qualifying shareholders can elect to receive new ordinary shares in the Company (the “scrip dividend shares”) instead of cash in respect of all or part of their entitlement to the interim dividend. The reference price used for the scrip shares issued during 2024 was determined on the basis of a discount of 20% to the average of the middle market quotations on the five consecutive dealing days from and including the ex-dividend date. 129 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section V: Share Capital and Reserves continued 24 Share-Based Payment Reserve Policy Equity-settled transactions where vesting is conditional upon a market or non-vesting condition are treated as vesting irrespective of whether the market or non-vesting condition is satisfied, provided that all service conditions are satisfied. The cost of equity-settled transactions is recognised in the income statement, together with a corresponding increase in other reserves in equity (share-based payment reserve), over the period in which the service conditions are fulfilled. Share-based payments expense 2024 €’000 2023 €’000 Subsidiaries’ employees share-based payment expense 352 502 25 Treasury Shares 2024 2023 Amount €’000 Number (’000) Amount €’000 Number (’000) Opening balance (4,797) (1,053) (4,859) (1,053) Dividend on treasury shares held by a subsidiary 45 – 62 – Closing balance (4,752) (1,053) (4,797) (1,053) The Company has 838,118 shares in treasury, and further 214,822 shares are held by one of the subsidiaries. 23 Financial Position Key Performance Measures The net asset value (“NAV”), EPRA Net Reinstatement Value (“EPRA NRV”) and the numbers of shares used for the calculation of each key performance measure on the financial position of the Group and the reconciliation between IFRS and EPRA measures are shown below. Note 2024 €’000 2023 €’000 Net assets attributable to equity holders of the Company 1,518,952 1,601,124 Number of ordinary shares used for the calculation of: Number (’000) Number (’000) – NAV per share 12 278,460 251,937 – Diluted NAV and EPRA NRV per share 12 278,501 252,087 € € NAV per share 5.45 6.36 Diluted NAV per share 5.45 6.35 EPRA Net Reinstatement Value (“EPRA NRV”) Per Share* Note 2024 €’000 2023 €’000 Net assets attributable to equity holders of the Company 1,518,952 1,601,124 Exclude: Deferred tax liability on investment property 11.1 124,032 152,280 Fair value of financial instruments 13 (1,185) 1,114 Goodwill as a result of deferred tax 26 (5,387) (5,387) Adjustment in respect of the joint venture and non-controlling interest for the above items 2,617 1,455 EPRA NRV attributable to equity holders of the Company 1,639,029 1,750,586 € € EPRA NRV per share 5.89 6.94 * Not an IFRS requirement 130 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VI: Investment in Subsidiaries, Joint Ventures and Related Disclosure At 31 December 2024, the goodwill related to asset/property management activity with a carrying value of €6.7 million (2023: €6.7 million) was tested for impairment. No impairment charge arose as a result of this assessment at year-end. Per sensitivity analysis for goodwill on CGU, an increase of 2.0% in the discount rate and a decline of 1.00% in the growth rate, the impairment test result would still conclude on no impairment on 31 December 2024, however headroom, between carrying value of goodwill and recoverable value, decreased significantly as compared to the prior year when a similar sensitivity test was performed. At 31 December 2024 and 2023, the value-in-use of the property management activity was determined based on the following main assumptions: • forecasts for four years; • discount rate of 7% p.a. as of 31 December 2024 (2023: 9.8% p.a.); and • extrapolation to perpetuity from year 4 onwards, considering a growth rate of 2.5% p.a. (2023: 2.5%). The goodwill with a carrying value of €5.4 million (2023: €5.4 million) related to deferred tax liabilities recognised on acquisition was not tested for impairment as there were no changes in the tax circumstances of the relevant entities or other events that would indicate an impairment thereof. 27 Investment in Joint Ventures Policy The Group’s investments in its joint ventures are accounted for using the equity method in the consolidated financial statements. Under the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise the change in the Group’s share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is not tested for impairment separately. After the application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its joint venture. The Group’s share of the results of operations of the joint venture is recorded in the income statement after adjusting the transaction between the Group and the joint venture to the extent of the interest in the joint venture. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. Judgements and Assumptions Used for Joint Ventures Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. Following such assessment, the Group’s investment was classified as a joint venture. Until the disposal date, the carrying amount of the investment in the joint venture was recorded at cost plus the change in the Group’s share of net assets of the joint venture until the disposal date. In accordance with IFRS 5, in the Group recognized an impairment loss on the joint venture investment, of €2.9 million related to disposal of these associates in order to record the investment in joint ventures at lower of carrying value or consideration receivable for the disposal of entire shares held in joint venture. The financial statements of each joint venture are prepared for the same reporting period as the Group. The joint ventures had no other contingent liabilities or commitments as at 31 December 2024 (2023: nonel), except construction commitments as disclosed in note 6. This section includes details about Globalworth’s subsidiaries, new business and properties acquired, investment in joint ventures, goodwill and related impact on the statement of comprehensive income and cash flows. 26 Goodwill Policy Goodwill only arises upon a business combination, and is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, after recognising the acquiree’s identifiable assets, liabilities and contingent liabilities. Subsequently, goodwill is carried at cost and is subject to reviews for impairment at each year-end or whenever there is an indication of impairment. At the date of acquisition, goodwill is allocated to one or more cash-generating units that are expected to benefit from the combination. The recoverable amount of a cash- generating unit, for the purpose of impairment testing, is determined using the discounted cash flows method and is applied to the full cash-generating unit rather than each legal entity. Where the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Where goodwill arises as a result of deferred tax liabilities, recognised under a business combination on the acquisition date, the impairment of this goodwill is calculated according to the amounts of tax optimisation existing at the date of reporting. Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed of in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash- generating unit retained. 2024 €’000 2023 €’000 Balance at 31 December 12,039 12,039 Goodwill is allocated to the Group’s cash-generating units (“CGUs”) which represent individual properties acquired under business combinations. The opening balance represents goodwill from deferred tax liabilities, recognised at the acquisition date of Globalworth Asset Managers SRL, and its asset/property management activities. Key Estimates and Assumptions Used for Goodwill Impairment Testing The Group’s impairment test for goodwill is based on value-in-use calculations that use a discounted cash flow model from asset management fees. The cash flows are derived from the budget for the next four years approved by management based on signed asset management fee agreements for standing properties and significant future investments that will enhance the asset management fee base of the cash-generating unit being tested. These calculations require the use of estimates which mainly include the assumptions on the financial performance of a CGU’s operations. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. 131 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VI: Investment in Subsidiaries, Joint Ventures and Related Disclosure continued 27.1 Investments in the Joint Ventures In April 2019, the Group’s subsidiary, Globalworth Holdings Cyprus Limited, entered into a joint venture agreement with Bucharest Logistic Park SRL, through which it acquired a 50% shareholding interest (€0.09 million investment) in Global Logistics Chitila SRL (“Chitila Logistics Hub”), an unlisted company in Romania, owning land for further development, at the acquisition date, in Chitila, Romania. In June 2019, the Group’s subsidiary, Globalworth Holdings Cyprus Limited, entered into a joint venture agreement with Mr. Sorin Preda through which it acquired a 50% shareholding interest (€6.36 million investment) in Black Sea Vision SRL (“Constanta Business Park”), an unlisted company in Romania, owning land for further development, at acquisition date, in Constanta, Romania. In September 2022, the Group’s subsidiary, Globalworth Holdings Cyprus Limited, entered into a joint venture agreement with Global Vision Business Development SRL through which it acquired a 50% shareholding interest (€0.07 million investment) in Targu Mures Logistics Hub SRL (“Targu Mures Logistics Hub”), an unlisted company in Romania, owning land for further development, at acquisition date, in Mures, Romania. During the first half of 2023, the development of Targu Mures Logistic Hub was completed. As at 31 December 2024 and 31 December 2023 the investment properties owned by the joint venture entities were classified as an industrial segment for the Group. On 18 July 2024 the Group disposed of its 50% interests in Global Logistics Chitila SRL, Black Sea Vision SRL and Targu Mures Logistics Hub SRL for a total net consideration of €61.6 million (out of which €45.9 million was repayment of loans receivable from joint ventures). Also, in July 2024 the Company sold 50% interest in Black Sea Business Park SRL to a joint venture partner, also Black Sea Business Park SRL acquired Constanta Land from Black Sea Vision SRL at a price of €7.2 million. Judgements and Assumptions Used for Asset Acquisition At the time of acquisition, the Group considered whether the acquisition represented an acquisition of a business or an acquisition of an asset. In the absence of an integrated set of activities required for a business other than the property, the Group concluded the acquisition of the joint venture does not represent a business therefore accounted for it as an acquisition of a group of assets and liabilities. The cost to acquire the entity is allocated between the identifiable assets and liabilities of the entity based upon their relative fair values at the acquisition date and no goodwill or deferred tax is recognised. 27 Investment in Joint Ventures continued Policy continued Judgements and Assumptions Used for Joint Ventures continued Investments 31-Dec-24 €’000 31-Dec-23 €’000 Opening balance 24,366 20,643 Investments in the joint ventures (including acquisition costs) 5 1,660 Disposals during the period (15,712) – Loss on valuation of investment 27.1 (2,932) Share of (loss)/profit during the year 27.4 (5,511) 2,063 Equity investment in joint venture 216 24,366 Opening balance 45,732 47,324 Loan provided to the joint ventures 6,984 10,840 Loan repayments from the joint ventures (45,935) (13,893) Interest repayment from the joint ventures (4,233) (614) Interest income on the loans to joint ventures 1,196 2,075 Loans receivable from joint ventures 29 3,744 45,732 Total 29 3,960 70,098 132 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VI: Investment in Subsidiaries, Joint Ventures and Related Disclosure continued 27 Investment in Joint Ventures continued 27.2 Summarised Statements of Financial Position of the Joint Ventures as at 31 December The summarised statements of financial position of the joint ventures are disclosed below, which represents the assets and liabilities recognised in the financial statements of each joint venture without adjusting the balance payable to or receivable from the Group. Transactions and balances receivable or payable between the Group and the individual joint ventures are disclosed in note 30. 31 December 2024 €’000 Constanta Land 31 December 2023 €’000 Constanta Business Park 31 December 2023 €’000 Chitila Logistics Hub 31 December 2023 €’000 Targu Mures Logistics Hub 31 December 2023 €’000 Combined Investment property 7,900 64,747 48,800 15,500 129,047 Other non-current assets – 34 158 704 896 Total non-current assets 7,900 64,781 48,958 16,204 129,943 Other current assets 9 565 294 1,258 2,117 Cash and cash equivalents 22 2,400 2,069 542 5,011 Total assets 7,931 67,746 51,321 18,004 137,071 Loans payable to the Group 3,744 11,346 26,383 8,003 45,732 Bank loans (face value) – 13,115 14,869 6,804 34,788 Bank loans (amortised cost) – (152) (106) (57) (315) Loan from joint venture partner 3,743 181 2,085 317 2,583 Deferred tax liability – 5,951 1,116 242 7,309 Other non-current liabilities 100 175 290 – 465 Total non-current liabilities 7,587 30,616 44,637 15,309 90,562 Loan from joint venture partner – – – – – Other current liabilities 4 661 765 1,390 2,816 Current portion of bank loans – 155 83 67 305 Total liabilities 7,591 31,432 45,485 16,766 93,683 Net assets 340 36,314 5,836 1,238 43,388 The Group has signed loan facilities amounting to 3.7 million (2023: nil) with Black Sea Business Park. In 2023, a €80.3 million loan was granted to Chitila Logistics Hub and Constanta Business Park and €38.6 million to Targu Mures Logistics Hub joint ventures. During 2024, the Group collected the entire amounts outstanding from the loan facilities, granted to the joint venture companies, following the disposal of the investments. Further details about the fair valuation of investment property owned by joint ventures are disclosed in note 4.1. 133 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VI: Investment in Subsidiaries, Joint Ventures and Related Disclosure continued 27.3 Summarised Statements of Financial Performance of the Joint Ventures The table below includes individual and combined income statements of the joint ventures extracted from the individual financial statements of each joint venture without adjusting for the transactions with the Group. 2024 1 January – 18 July 2024 1 January – 18 July 2024 1 January – 18 July 2024 2024 2023 2023 2023 2023 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 Constanta Land Constanta Business Park Chitila Logistics Hub Targu Mures Logistics Hub Combined Constanta Business Park Chitila Logistics Hub Targu Mures Logistics Hub Combined Revenue – 1,621 1,997 973 4,591 2,765 3,983 734 7,482 Operating expenses (442) (834) (283) (1,559) (830) (2,063) (381) (3,274) Administrative expenses (8) (47) (39) (106) (200) (83) (136) (140) (359) Fair value gain/(loss) on investment property 627 (11,589) (3,760) (247) (14,969) (679) 193 2,866 2,380 Foreign exchange loss (4) 26 20 (13) 29 (13) (10) (25) (48) Profit/(loss) before net financing cost 615 (10,431) (2,616) 324 (12,108) 1,160 1,967 3,054 6,181 Finance expense (186) (503) (998) (547) (2,234) (1,438) (1,710) (791) (3,939) Finance income 1 39 7 – 47 57 14 – 71 Income tax (expense)/income (100) 1,565 514 (13) 1,966 57 (245) (242) (430) Total comprehensive income for the period 330 (9,330) (3,093) (236) (12,329) (164) 26 2,021 1,883 Income tax expense mainly represents deferred tax expense on the valuation of investment property. 27.4 Share of Profit of Equity-Accounted Investments in Joint Ventures The following table presents a reconciliation between the profit for the years ended 31 December 2024 and 2023 recorded in the individual financial statements of the joint ventures with the share of profit recognised in the Group’s financial statements under the equity method. 2024 1 January – 18 July 2024 1 January – 8 July 2024 1 January – 18 July 2024 2024 2023 2023 2023 2023 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 Constanta Land Constanta Business Park Chitila Logistics Hub Targu Mures Logistics Hub Combined Constanta Business Park Chitila Logistics Hub Targu Mures Logistics Hub Combined Profit/(loss) for the period 330 (9,330) (3,093) (236) (12,329) (164) 26 2,021 1,883 Group 50% share of profit/(loss) for the period 165 (4,665) (1,547) (118) (6,165) (82) 13 1,011 942 Adjustments for transactions with the Group 47 147 226 194 654 284 480 357 1,121 Share of profit/(loss) of equity-accounted investments in joint ventures 212 (4,518) (1,281) 76 (5,511) 202 492 1,368 2,063 134 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VI: Investment in Subsidiaries, Joint Ventures and Related Disclosure continued As of 31 December 2024, the Group consolidated the following subsidiaries, being holding companies, as principal activities. Subsidiary Note 31 December 2024 Shareholding interest (%) 31 December 2023 Shareholding interest (%) Place of incorporation Globalworth Investment Advisers Limited 100 100 Guernsey, Channel Islands Globalworth Holdings Cyprus Limited 100 100 Cyprus Tisarra Holdings Limited Serana Holdings Limited Kusanda Holdings Limited Minory Investments Limited Globalworth Tech Limited Zaggatti Holdings Limited* 28.1 – 100 Cyprus Ramoro Limited* Vaniasa Holdings Limited* Kifeni Investments Limited* Casalia Holdings Limited* Pieranu Enterprises Limited* Oystermouth Holding Limited* IB 14 Fundusz Inwestycyjny Zamkniety Aktywow Niepublicznych 100 100 Poland * Liquidated in 2024 28 Investment in Subsidiaries Policy The Group assesses whether it has control over a subsidiary or an investee in order to consolidate the assets, liabilities, income and expenses of the subsidiary or the investee in the Group’s consolidated financial statements, based on certain judgements and assumptions. Key Judgements and Assumptions Used in Determining the Control Over an Entity: • Power over the investee (i.e. existing rights, directly or indirectly, in the investee that gives it the current ability to direct the relevant activities of the investee). If the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including the contractual arrangement with the other vote holders of the investee, rights arising from other contractual arrangements and the Group’s voting rights and potential voting rights. • Exposure, or rights, to variable returns from its involvement with the investee. • The ability to use its power over the investee to affect its returns (such as the appointment of an administrator or director in the subsidiary or investee). Details on all direct and indirect subsidiaries of the Company, over which the Group has control and consolidated as of 31 December 2024 and 31 December 2023, are disclosed in the table below. The Group did not have any restrictions (statutory, contractual or regulatory) on its ability to transfer cash or other assets (or settle liabilities) between the entities within the Group. 135 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VI: Investment in Subsidiaries, Joint Ventures and Related Disclosure continued Subsidiary Note 31 December 2024 Shareholding interest (%) 31 December 2023 Shareholding interest (%) Place of incorporation Black Sea Business Park SRL 28.2 50 100 Romania Elgan Automotive SRL 29 – 100 Romania SEE Exclusive Development SRL 29 – 100 Romania Industrial Park West SRL 29 – 100 Romania North Logistics Hub SRL 29 – 75 Romania Logistics Hub Chitila SRL 29 – 75 Romania A4 Business Park Sp. z o.o. Artigo Sp. z o.o. Bakalion Sp. z o.o. Centren Sp. z o.o. DH Supersam Katowice Sp. z o.o. Dolfia Sp. z o.o. Dom Handlowy Renoma Sp. z o.o. Ebgaron Sp. z o.o. Gold Project Sp. z o.o. GPRE Management Sp. z o.o. 100 100 Poland GPRE Property Management Sp. z o.o. GW Tech sp. z o.o. Hala Koszyki Sp. z o.o. Imbali Sp. z o.o. Ingadi Sp. z o.o. Kusini Sp. z o.o. Lamantia Sp. z o.o. Lima sp. z o.o Nordic Park Offices Sp. z o.o. Podium Park Sp. z o.o. Quattro Business Park Sp. z o.o. Rondo Business Park Sp. z o.o. Spektrum Tower Sp. z o.o. 28 Investment in Subsidiaries continued Policy continued As of 31 December 2024, the Group consolidated the following subsidiaries, which own real estate assets in Romania and Poland, being asset holding companies as their principal activities, except for Globalworth Building Management SRL, GPRE Property Management Sp. z o.o., GPRE Management Sp. z o.o., GW Tech Sp. z o.o. and GW Flex Sp. z o.o with building management activities in Romania and Poland, and Fundatia Globalworth in Romania and Fundacja Globalworth in Poland, non-profit organisations with corporate social responsibility activities. Subsidiary Note 31 December 2024 Shareholding interest (%) 31 December 2023 Shareholding interest (%) Place of incorporation Aserat Properties SRL BOB Development SRL BOC Real Property SRL Corinthian Five SRL Corinthian Tower SRL Corinthian Twin Tower SRL Elgan Offices SRL Fundatia Globalworth Globalworth Asset Managers SRL Globalworth Building Management SRL 100 100 Romania Globalworth EXPO SRL SPC Beta Property Development Company SRL SPC Epsilon Property Development Company SRL SPC Gamma Property Development Company SRL Netron Investment SRL Otopeni Logistics Hub SRL Tower Center International SRL Upground Estates SRL West Logistics Hub SRL 100 100 Romania 136 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VI: Investment in Subsidiaries, Joint Ventures and Related Disclosure continued Subsidiary Note 31 December 2024 Shareholding interest (%) 31 December 2023 Shareholding interest (%) Place of incorporation Tryton Business Park Sp. z o.o. Warsaw Trade Tower 2 Sp. z o.o. 100 100 Poland Warta Tower Sp. z o.o. West Gate Sp. z o.o. West Link Sp. z o.o. Fundacja Globalworth 28.1 – 100 Poland GW Flex sp. z o.o 28.2 100 – Poland Changes in Group Structure 28.1 Liquidated Subsidiaries • The following dormant companies have applied for voluntary liquidation during 2020: Zaggatti Holdings Limited, Kifeni Investments Limited, Casalia Holdings Limited, Oystermouth Holding Limited, Pieranu Enterprises Limited, Ramoro Limited and Vaniasa Holdings Limited. They received the final liquidation decision in December 2024. • Fundacja Globalworth w likwidacji was liquidated on 2 November 2023 and subsequently was struck off from the Registrar of Companies in Poland on 12 February 2024. 28.2 New Subsidiaries • Black Sea Business Park SRL was incorporated in May 2024 with 100% effective interest. Subsequently, in July 2024, the Group disposed 50% shareholding in July 2024, to a joint venture partner, and bought under the new joint venture company a plot of land from Black Sea Vision SRL (former joint venture company of the Group, see note 24) for an amount of €7 million, 50% of consideration being financed by the Group under a shareholder loan facility. • In February 2024 Belfield sp. z o.o an empty SPV was bought for €3,000 as a new service company. Following the acquisition the SPV was renamed GW Flex sp. z o.o. 28 Investment in Subsidiaries continued Policy continued 137 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VII: Other Disclosures €’000 Net assets of the subsidiaries on disposal date 104,070 Loan payable to the Group 11,778 Total assets disposed 115,848 Disposal consideration 91,225 Loss on sale of subsidiary 24,623 Cash flows from the disposal: Cash received 91,225 Cash balance of the subsidiaries at disposal date (19,566) Net cash inflows from the disposal 71,659 From the consideration received, €1.2 million was received as advance in 2023. The remaining €1.0 million is consideration receivable as of 31 December 2024 collected subsequently during February 2025. 30 Segmental Information The Group is engaged mainly in real estate business and the Board of Directors analyses the performance of the offices, mixed-use, industrial and residential investment properties segments and property management services, in two geographical areas, Romania and Poland. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. The chief operating decision-makers who are responsible for allocating resources and assessing the performance of the operating segments have been identified as the Executive Directors. The Group earns revenue and holds non-current assets (investment properties) in Romania and Poland, the geographical area of its operations. For investment property, discrete financial information is provided on a property-by-property basis (including those under construction or refurbishment) to members of Executive Management, which collectively comprise the Executive Directors of the Group. The information provided is Net Operating Income (“NOI”, i.e. gross rental income less property expenses) on a quarterly basis and valuation gains/losses from property valuation at each semi-annual basis. The individual properties are aggregated into office, mixed-use, industrial and residential segments. The industrial property segment and head office segments are presented on a collective basis as Others in the table on the next page since their individual assets, revenue and absolute profit (or loss) are below 10% of all combined total assets, total revenue and total absolute profit (or loss) of all segments. All other segments are disclosed separately as these meet the quantitative threshold of IFRS 8. Consequently, the Group is considered to have four reportable operating segments: the offices segment (acquires, develops, leases and manages offices and spaces), the residential segment (builds, acquires, develops and leases apartments), mixed-use and the other segment (acquires, develops, leases and manages industrial spaces and corporate office). This section includes segmental disclosures highlighting the core areas of Globalworth’s operations in the office, mixed-use, residential and other corporate segments (industrial). There were no significant transactions between segments except for management services provided by the offices segment to the residential and other (industrial) segments. This section also includes the transactions with related parties, new standards and amendments, contingencies that existed at the year-end and details on significant events which occurred in 2024. 29 Disposal of Subsidiaries Policy When the Group ceases to have control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity while any resultant gain / loss is recognised in the income statement. On 27 May 2024 the Group disposed its full shareholding in See Exclusive Development SRL (100%), Industrial Park West SRL (100%), Elgan Automotive SRL (100%), North Logistics Hub SRL (75%) and Logistic Hub Chitila SRL (75%) for total consideration of €90,551 thousand, in cash, and ceased to have control of the entities by transferring the title of the shares to the buyer. The following table presents the amount of the assets and liabilities in the disposed subsidiaries on the disposal date, summarised by each major category. 27 May 2024 €’000 Completed investment property 184,565 Investment property under development 11,726 Land bank for further development 11,016 Other non-current assets 51 Total non-current assets 207,358 Other current assets 3,628 Cash and cash equivalents 19,566 Total assets 230,552 Loans payable to the Group 11,778 Interest-bearing loans and borrowings 91,403 Deferred tax liability 14,964 Other non-current liabilities 361 Total non-current liabilities 118,506 Other current liabilities 2,116 Interest-bearing loans and borrowings – current 4,404 Total liabilities 125,526 Non-controlling interests 1,456 Net assets 104,070 138 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VII: Other Disclosures continued 30 Segmental Information continued Segment assets and liabilities reported to Executive Management on a segmental basis are set out below: 2024 2023 Office €’000 Mixed-use €’000 Residential €’000 Other €’000 Inter- segment eliminations €’000 Total €’000 Office €’000 Mixed-use €’000 Residential €’000 Other €’000 Inter- segment eliminations €’000 Total €’000 Rental income – Total 132,736 13,191 1,190 5,882 (215) 152,784 132,932 12,387 1,472 13,861 (287) 160,365 Romania 72,503 – 1,190 5,882 (191) 79,384 67,675 – 1,472 13,861 (281) 82,727 Poland 60,233 13,191 – – (24) 73,400 65,257 12,387 – – (6) 77,638 Revenue from contracts with customers – Total 75,964 11,142 535 1,820 (3,977) 85,484 68,844 8,104 760 5,668 (3,312) 80,064 Romania 37,892 – 535 1,820 (948) 39,299 37,046 – 760 5,668 (1,007) 42,467 Poland 38,072 11,142 – – (3,029) 46,185 31,798 8,104 – – (2,305) 37,597 Revenue – Total 208,700 24,333 1,725 7,702 (4,192) 238,268 201,776 20,491 2,232 19,529 (3,599) 240,429 Operating expenses (81,830) (11,255) (710) (1,833) 1,018 (94,610) (77,704) (9,660) (886) (6,247) 1,026 (93,471) Segment NOI 126,870 13,078 1,015 5,869 (3,174) 143,658 124,072 10,831 1,346 13,282 (2,573) 146,958 NOI – Romania 71,001 – 1,015 5,869 (956) 76,929 64,086 – 1,346 13,503 (1,039) 77,896 NOI – Poland 55,869 13,078 – – (2,218) 66,729 59,765 10,831 – – (1,534) 69,062 Administrative expenses (13,471) (1,082) (36) (3,373) – (17,962) (11,275) (1,023) (45) (3,605) – (15,948) Acquisition costs – – – – – – – – – – – – Fair value (loss)/gain on investment property (90,409) (8,456) (1,101) 127 – (99,839) (164,329) (3,025) 292 2,154 – (164,908) Depreciation and amortisation expense (757) – (19) (100) – (876) (546) (1) (15) (26) – (588) Other expenses (2,256) (67) (12) (1,995) – (4,330) (2,511) (184) (107) (114) – (2,916) Other income 18 1,025 – – (20) 1,023 40 2,059 – – (43) 2,056 Loss on disposal of subsidiary – – – (24,623) – (24,623) – – – (474) – (474) Profit/(loss) on disposal of investment property (130) (183) – (198) 190 (321) 9,579 – – – – 9,579 Foreign exchange gain/(loss) (619) (165) 1 (45) – (828) (740) (393) (10) (390) – (1,533) Segment result 19,246 4,150 (152) (24,338) (3,004) (4,098) (45,931) 8,264 1,461 11,048 (2,616) (27,774) Finance cost (22,700) (3,562) (1) (54,326)* – (80,589) (13,396) (855) (1) (42,894)* – (57,146) Finance income 5,000 176 301 6,646 – 12,123 3,339 122 66 19,693 – 23,220 Share-based payment expense – – – (352)** – (352) – – – (502) – (502) Gain/(loss) from fair value of financial instruments - – – 566 – 566 (85) – – (1,308) – (1,393) Share of profit of equity-accounted investments in joint ventures – – – (8,443) – (8,443) – – – 2,063 – 2,063 Profit before tax 1,546 764 148 (80,247) (3,004) (80,793) (56,073) 7,531 1,526 (11,900) (2,616) (61,532) * Include €30.9 million interest expense on Eurobonds (2023: €26.8 million). ** Share-based payment expense and Finance cost included in “Other“ segment cannot be assigned to any specific segment 139 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VII: Other Disclosures continued 30 Segmental Information continued Revenues are derived from a large number of tenants and no tenant contributes more than 10% of the Group’s rental revenues for the year ended 31 December 2024. 2024 2023 Office €’000 Mixed-use €’000 Residential €’000 Other €’000 Inter- segment eliminations €’000 Total €’000 Office €’000 Mixed-use €’000 Residential €’000 Other €’000 Inter- segment eliminations €’000 Total €’000 Segment non-current assets 2,265,971 286,614 30,772 5,756 (3,768) 2,585,345 2,301,312 288,822 46,493 208,974 (2,516) 2,843,085 Romania 1,152,200 – 30,772 5,756 (928) 1,187,800 1,136,100 – 46,493 208,974 (639) 1,390,928 Poland 1,113,771 286,614 – – (2,840) 1,397,545 1,165,212 288,822 – – (1,877) 1,452,157 Assets held for sale 35,763 – – – – 35,763 50,352 – – – 50,352 Total assets 2,706,648 300,132 46,571 2,133 (4,304) 3,051,180 2,874,424 299,917 47,935 226,045 (3,147) 3,445,174 Total liabilities 862,021 78,916 2,890 588,929 (528) 1,532,228 705,685 79,421 3,793 1,054,244 (504) 1,842,639 Additions to non-current assets – Romania 37,092 – 594 3,685 – 41,371 17,898 – (23) 5,396 – 23,271 – Poland 13,808 3,837 – – – 17,645 23,911 12,085 – – – 35,996 None of the Group’s non-current assets is located in Guernsey except for goodwill (there are no employment benefit plan assets, deferred tax assets or rights arising under insurance contracts) recognised on the business combination. 140 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VII: Other Disclosures continued 30 Transactions with Related Parties The Group’s immediate parent is Zakiono Enterprises Limited (2024: 60.8%), a wholly owned subsidiary of Tevat Limited. Tevat Limited is jointly owned by Aroundtown SA (indirectly) and CPI Property Group S.A. The Group’s related parties are Aroundtown SA and CPI Property Group S.A, the Company’s joint ventures, the Company’s Executive and Non-Executive Directors, key other Executives, as well as all the companies controlled by them or under their joint control, or under significant influence. The related party transactions are set out in the table below: Income statement Statement of financial position Name Nature of transactions/balances amounts 2024 €’000 2023 €’000 2024 €’000 2023 €’000 Global Logistics Chitila SRL Shareholder loan receivable – – – 26,383 (50% Joint Venture) Finance income 493 885 – – Office rent 7 12 – – Asset management fees 33 62 – – Black Sea Vision SRL Shareholder loan receivable – – – 11,346 (50% Joint Venture) Finance income 251 505 – – Office rent 7 12 – – Asset management fees 37 52 – – Targu Mures Logistics Hub SRL Shareholder loan receivable – – – 8,004 (50% Joint Venture) Finance income 367 700 – – Office rent 4 6 – – Asset management fees 17 9 – – Black Sea Business Park SRL Shareholder loan receivable – – 3,744 – (50% Joint Venture) Finance income 93 – – – Asset management fees 1 – – – Key Management Remuneration The Executive Directors and Non-Executive Directors are the key management personnel. Their aggregate emoluments are €1 million (2023: €0.7 million). Out of these amounts, €0.04 million was paid in advance as of 31 December 2024 (2023: €0.04 million was payable to the Directors). Further details are disclosed in the Remuneration Committee report on pages 87 to 88. 141 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Section VII: Other Disclosures continued from dividends and interest. In addition, there are consequential amendments to several other standards. IFRS 18, and the amendments to the other standards, is effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted and must be disclosed. IFRS 18 will apply retrospectively. The Group is currently working to identify all impacts the amendments will have on the primary financial statements and notes to the financial statements. 32 Contingencies Taxation All amounts due to State authorities for taxes have been paid or accrued at the balance sheet date. There might be inconsistent interpretations of the tax law and frequent changes of tax law which creates unpredictability and may trigger the risk of additional taxes and penalties. In case the State authorities have findings from tax audits relating to misinterpretation of tax laws and/or related regulations, these may result in confiscation of the amounts, additional tax liabilities, fines and penalties which are applied on the total outstanding amount of additional tax liability. As a result, the fiscal penalties resulting from misinterpretation of the legal provisions may result in a significant amount payable to the State. The Group assessed any uncertainties regarding the tax treatments in accordance with IFRIC 23 “Uncertainty over Income Tax Treatments”, analyzed all significant tax positions and concluded that it is more likely than not that the tax treatment applied in its tax filings will be accepted by the relevant tax authorities. The Group has provided for possible outcomes accordingly where uncertainty exists regarding the tax treatment, . Any adjustments to tax provisions, will be recognized in the period in which the uncertainty is resolved, with appropriate disclosures in the financial statements. The Group believes that it has paid in due time and in full all applicable taxes, penalties and penalty interests in the applicable extent. Transfer Pricing According to applicable relevant tax legislation in Cyprus, Romania and Poland, the tax assessment of related party transactions is based on the concept of market value for the respective transfers. Following this concept, the prices applicable for intra-group transactions reflect the market value that would have been set between unrelated companies acting independently (i.e. based on the “arm’s length principle”). It is likely that transfer pricing reviews will be undertaken in the future to assess whether the transfer pricing policy observes the “arm’s length principle”. Legal Proceedings The Group is engaged in ongoing litigations through its subsidiaries for development project and lease contract, the outcome of such litigation is uncertain, and no provision for potential losses has been made as the likelihood of an adverse judgment is not considered probable. 33 Subsequent Events On 11 March 2025, the Company announced that its Board of Directors has approved the payment of an interim dividend in respect of the six-month period ended 31 December 2024 of €0.09 per ordinary share (which will be paid on 25 April 2025) and offers a scrip dividend alternative to the interim dividend so that qualifying shareholders can elect to receive new ordinary shares in the Company instead of cash in respect of all or part of their entitlement to the interim dividend. Qualifying shareholders who validly elect to receive the scrip dividend alternative will become entitled to a number of scrip dividend shares in respect of their entitlement to the interim dividend that is based on a price per scrip dividend share calculated on the basis of a discount of 20% to the average of the middle market quotations for the Company’s shares as derived from the Daily Official List (or any other publication of a recognised investment exchange showing quotations for the Company’s shares) on the five consecutive dealing days from and including the ex-dividend date, the “reference price” 31 New and Amended Standards Starting from 1 January 2024 the Group adopted the following new and amended standards and interpretations. The new standards and amendments had no significant impact on the Group’s financial position and performance. Narrow scope amendments and new Standards Effective Date (EU endorsement) Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (issued on 25 May 2023) Jan-24 Amendments to IAS 1 Presentation of Financial Statements: • Classification of Liabilities as Current or Non-current (issued on 23 January 2020); • Classification of Liabilities as Current or Non-current – Deferral of Effective Date (issued on 15 July 2020); and • Non-current Liabilities with Covenants (issued on 31 October 2022) Jan-24 Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (issued on 22 September 2022) Jan-24 For other standards issued but not yet effective and not early adopted by the Group, the management has assessed the impact and considers that their application will not have a significant effect on the financial statements for the current year. Narrow scope amendments and new Standards Effective Date (EU endorsement) IFRS 19 Subsidiaries without Public Accountability: Disclosures (issued on 9 May 2024) Jan-27 IFRS 18 Presentation and Disclosure in Financial Statements (issued on 9 April 2024)`* Jan-27 Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 (issued on 18 December 2024) Jan-26 Annual Improvements Volume 11 (issued on 18 July 2024) Jan-26 Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 (issued on 30 May 2024) Jan-26 Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (issued on 15 August 2023) Jan-25 * In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals. Furthermore, entities are required to classify all income and expenses within the statement of profit or loss into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the first three are new. It also requires disclosure of newly defined management-defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and disaggregation of financial information based on the identified “roles” of the primary financial statements (“PFS”) and the notes. In addition, narrow-scope amendments have been made to IAS 7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from “profit or loss” to “operating profit or loss” and removing the optionality around classification of cash flows 142 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Independent Auditor’s Report to the Members of Globalworth Real Estate Investment Limited Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the “Auditor’s responsibilities for the audit of the consolidated financial statements” section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements. Opinion We have audited the accompanying consolidated financial statements of Globalworth Real Estate Investments Limited (“the Company”) and its subsidiaries (together “the Group”), which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information. In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2024 and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”) and in compliance with The Companies (Guernsey) Law, 2008, as amended. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (“ISA”). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We remained independent of the Group throughout the period of our appointment in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matter How our audit addressed the Key Audit Matter Valuation of Investment Property (€2,585 million) The valuation of investment property is the key driver of the Group’s net asset value and total return. Valuation of investment property requires specialist expertise and the use of significant judgements, estimates and assumptions, giving rise to a higher risk of misstatement. The current macro-economic and geopolitical environment resulted in increased subjectivity and required increased consideration during our audit. For this reason, we consider valuation of investment property a key audit matter. The Group’s disclosures regarding its accounting policy, fair value measurement and related judgments, estimates and assumptions used for investment property are in notes 3 and 4 of the consolidated financial statements. The audit procedures performed on the valuation of investment property included among others the following: • We documented our understanding and performed walkthrough to confirm the processes, policies and methodologies used by management for valuing investment property; • We agreed the valuations recorded in the consolidated financial statements to the values reported by the Group’s independent experts (“specialists”); • We agreed a sample of the significant inputs, particularly rental data, let areas and projected capex, used by the specialists to value investment property to contractual documentation and development plans; • We tested the arithmetical accuracy of the calculations done by specialists for the main assumptions in the models, by performing a sample of their calculations; • We involved our own internal valuation specialists from Romania and Poland to assist us to: – evaluate, using their knowledge of the market, and corroborate the market related judgements and valuation inputs (including discount rates, exit yields and sales values) used by the specialists, for a sample of properties (properties with significant value, risky or with significant changes in values or conditions); – assess the conformity of the valuation methods applied with the applicable valuation standards and IFRS; and – evaluate the competence, capability and objectivity of the external valuation specialists. We also considered the adequacy of disclosures in relation to the investment property valuation. 143 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Auditor’s responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. Other information included in the Group’s 2024 Annual Report Other information consists of the information included in the Annual Report, other than the consolidated financial statements and our auditor’s report thereon. The Directors are responsible for the other information. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Directors and Audit Committee for the consolidated financial statements Directors are responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with IFRS and in compliance with The Companies (Guernsey) Law, 2008, as amended, and for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. The Audit Committee is responsible for overseeing the Group’s financial reporting process. Independent Auditor’s Report to the Members of Globalworth Real Estate Investment Limited continued • Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves a true and fair view. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group as basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor’s report is Christiana Panayidou Ernst & Young Cyprus Limited Certified Public Accountants and Registered Auditors Esperides Building, 10 Esperidon Street, 1087 Nicosia, Cyprus 24 March 2025 144 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Schedule of Properties: Romania 145 Schedule of Properties: Poland 147 Standing Portfolio – Breakdown by Location & Type 149 Portfolio – Breakdown by Location & Type 151 EPRA Performance Measures 152 Investing Policy 155 Glossary 156 Company Directory 159 Additional Information Complete breakdown of our properties and portfolio. Lubicz Park Spektrum Tower Green Court 145 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Schedule of Properties: Romania For the year ended 31 December 2024 Property name Number of Properties Location Address Year of completion / Latest Refurbishment GLA (k sqm)1 Occupancy (%) Contracted rent (€m) WALL (years) Potential rent at 100% occupancy (€m)2 GAV (€m) Select Tenants Office (Standing) BOB 1 Bucharest 6A Dimitrie Pompeiu Blvd, District 2 2008/2017 22.4 100.0% 3.7 8.4 3.7 45.8 Deutsche Bank, RTV, NX Data BOC 1 Bucharest 3 George Constantinescu St., District 2 2009/2014 57.1 94.3% 9.0 4.4 9.6 126.8 Honeywell, Micro Focus, Nestle, Mood Media City Offices 2 Bucharest 2–4A Oltenitei Street., District 4 2014/2017 36.1 89.1% 5.4 5.2 6.6 69.9 Vodafone, BRD, Edenred, MaxBet Gara Herastrau 1 Bucharest 4B Gara Herastrau Street, District 2 2016 11.7 96.3% 2.1 3.6 2.1 25.5 ADP, Qualitest Green Court Complex 3 Bucharest 4 Gara Herastrau, District 2 2014/2015/2016 54.3 99.0% 11.0 4.2 11.1 135.8 Banca Transilvania, Orange Services, Carrefour, Schneider Electric, Sanofi Globalworth Campus 3 Bucharest 4–6 Dimitrie Pompeiu Blvd, District 2 2017/2018/2020 89.8 95.2% 16.2 5.1 17.0 201.1 Unicredit Services, Allianz, Amazon, Stefanini, Mindspace Globalworth Plaza 1 Bucharest 42 Pipera Road, District 2 2010/2017 24.1 94.4% 5.1 3.4 5.3 58.4 Cegedim, Patria Bank, AC Nielsen, Coface Globalworth Square 1 Bucharest 44 Pipera Street , District 2 2021 29.4 99.9% 7.1 5.1 7.1 83.5 Wipro, Dante International (Emag), Delivery Solutions (Sameday) Globalworth Tower 1 Bucharest 201 Barbu Vacarescu Street, District 2 2016 54.7 100.0% 13.4 6.4 13.5 180.1 Vodafone, Huawei, NNDKP, Regina Maria Health Network Renault Bucharest Connected 2 Bucharest Preciziei 3G, District 6 2018 42.3 100.0% 7.1 4.7 7.1 83.4 Automobile Dacia Tower Center International 1 Bucharest 15–17 Ion Mihalache Blvd, District 1 2012 22.4 98.0% 5.4 5.8 5.5 71.4 EY, Hidroelectrica, Cegeka, Mindspace Unicredit HQ 1 Bucharest 1F Expozitiei Blvd, District 1 2012 17.4 100.0% 3.4 6.2 3.4 45.1 Unicredit Industrial (Standing) Craiova Logistic Park 1 Craiova Almaj, jud Dolj 2024 5.9 100.0% 0.4 19.4 0.4 4.9 Returo SGR Retail / Residential (Standing) Upground Towers 1 Bucharest 9B Fabrica de Glucoza Street, District 2 2011 16.0 Retail: 87.5% / Resi: 60.1% Retail: 0.7 / Resi: 0.3 Retail: 9.2 / Resi: 3.3 Retail: 0.8 / Resi: 0.3 30.7 World Class, Mega Image (Delhaize group) Notes: 1. GLA of “Land for future development” represents size of land plot / expected GLA upon completion of development 2. Contracted rent at 100% occupancy (including ERV on available spaces). Potential rent at 100% cccupancy, excludes residential. 3. Properties owned through JV agreements (Constanta Business Park) are presented on the 100% basis. Globalworth holds a 50% share in the respective JV companies. 146 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Schedule of Properties: Romania continued Property name Number of Properties Location Address Year of completion / Latest Refurbishment GLA (k sqm)1 Occupancy (%) Contracted rent (€m) WALL (years) Potential rent at 100% occupancy (€m)2 GAV (€m) Select Tenants Land for future development Globalworth West – Bucharest Preciziei 3F n.a. 12.1 / 33.4 – – – – 6.0 Green Court D – Bucharest 1 Dimitrie Pompeiu Blvd, District 2 n.a. 4.4 / 17.2 – – – – 7.1 Luterana – Bucharest 7–13 Luterana Street, District 1 n.a. 6.6 / 26.4 – – – – 12.3 Constanta Business Park3 – Constanta Lazu, jud. Constanta n.a. 239.8 / 129.8 – – – – 7.9 Total Standing Commercial Portfolio No of Commercial Investments: 13 19 473.3 96.8% 89.9 5.3 93.2 1,141.7 Notes: 1. GLA of “Land for future development” represents size of land plot / expected GLA upon completion of development 2. Contracted rent at 100% occupancy (including ERV on available spaces). Potential rent at 100% cccupancy, excludes residential. 3. Properties owned through JV agreements (Constanta Business Park) are presented on the 100% basis. Globalworth holds a 50% share in the respective JV companies. 147 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Schedule of Properties: Poland Property name Number of Properties Location Address Year of completion / Latest Refurbishment GLA (k sqm)1 Occupancy (%) Contracted rent (€m) WALL (years) Potential rent at 100% occupancy (€m)2 GAV (€m) Select Tenants Office2 Batory Building 1 1 Warsaw 212A Jerozolimskie Av. 2000 / 2017 6.6 99.7% 1.3 2.6 1.3 11.9 Solid Group, ZST, Impuls Leasing Nordic Park 1 Warsaw 8 Herberta St. 2000 / 2018 9.0 92.0% 1.9 2.3 2.0 21.1 Baxter, ZBP Philips 1 Warsaw 195A Jerozolimskie Av. 1999 / 2018 6.2 93.1% 1.1 3.0 1.2 12.1 Signify, Philips, Trane Skylight & Lumen 2 Warsaw 59 Zlota St. 2007 49.2 96.5% 13.4 4.0 13.9 196.9 Pernod Ricard, Mars, PGE Group, ASB Spektrum Tower 1 Warsaw 18 Twarda St. 2003 / 2015 32.2 92.7% 8.0 2.8 8.6 109.6 CityFit, Westwing, Ecovadis Warsaw Trade Tower 1 Warsaw 51 Chłodna St. 1999 / 2016 46.9 84.3% 9.4 3.7 11.0 135.2 Uniqa, MSD CB Lubicz 2 Krakow 23, 23A Lubicz St. 2000 & ’09 / 2018 & ’20 26.0 86.2% 4.9 2.8 5.7 68.0 International Paper, Allegro, Sylvamo Alten Podium Park 3 Krakow al. Jana Pawła II 43a Podium Park I: 2018 18.9 80.7% 3.2 3.8 3.8 87.4 Heineken, FMC Technologies, Ailleron, Revolut Ltd, W. Kruk, Podium Park II: 2020 18.8 81.6% 2.8 6.2 3.4 Podium Park III: F.D. 17.7 – – – 3.1 Quattro Business Park 5 Krakow 25 Bora-Komorowskiego Av. 2010, ’11, ’13, ’14 & ’15 66.2 47.6% 5.6 4.5 11.7 105.9 Google, Samsung Electronics, Lundbeck Business Service Center Rondo Business Park 3 Krakow 38 Lublańska St. 2007–’08 20.3 20.8% 0.9 2.8 3.5 20.7 Lux Med, Jaral Retro Office House 1 Wroclaw 69/73, Piłsudskiego 2019 23.2 91.7% 4.2 3.0 4.6 56.0 Infor, Olympus, Intive West Gate & West Link 2 Wroclaw 2 Szybowcowa St. / 12 Lotnicza St. 2015 / 2018 33.6 98.9% 6.7 4.7 6.7 77.6 Nokia, Deichmann A4 Business Park 3 Katowice 42 Francuska St. 2014–’16 33.1 62.9% 3.8 4.0 5.8 57.3 Rockwell Silesia Star 2 Katowice 10 aleja Roździeńskiego 2016 30.2 88.7% 5.4 3.8 5.9 56.2 Siemens, VB Leasing, Hireright Green Horizon 2 Lodz 106a Pomorska St. 2012–’13 35.5 70.1% 4.3 3.1 6.0 60.0 Infosys, PKO Bank Tryton 1 Gdansk 11 Jana z Kolna St. 2016 25.6 79.4% 4.0 5.0 5.0 54.3 Aramco Fuels, Noble Drilling Notes: 1. Contracted rent at 100% occupancy (including ERV on available spaces). 2. All properties are 100% owned by Globalworth Poland. Globalworth at 31 December 2024 held 100.0% in Globalworth Poland. 148 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Schedule of Properties: Poland continued Property name Number of Properties Location Address Year of completion / Latest Refurbishment GLA (k sqm)1 Occupancy (%) Contracted rent (€m) WALL (years) Potential rent at 100% occupancy (€m)2 GAV (€m) Select Tenants Mixed-Use2 Hala Koszyki 5 Warsaw 63 Koszykowa St. 2016 22.3 90.3% 7.1 4.5 7.6 112.4 Mindspace, Eneris Renoma (under refurbishment) 1 Wroclaw 40 Swidnicka St. 2009 48.3 63.0% 6.1 4.8 9.5 110.9 DXC Technology, TJX Poland , Deloitte Poland Supersam 1 Katowice 8 Piotra Skargi St. 2015 / 2024 26.7 70.4% 3.3 4.9 4.6 50.6 Aldi, Groupon Shared Services, Benefit Total Standing Commercial Portfolio No of Commercial Investments: 18 36 530.4 77.8% 91.3 3.9 112.3 1,286.8 Notes: 1. Contracted rent at 100% occupancy (including ERV on available spaces). 2. All properties are 100% owned by Globalworth Poland. Globalworth at 31 December 2024 held 100.0% in Globalworth Poland. 149 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Standing Portfolio – Breakdown by Location & Type As at 31 December 2024 Number of Value Area Occupancy Rate Rent Contracted Headline Rent / Sqm or Unit Investments (#) Properties (#) GAV (€m) GLA (k sqm) by GLA (%) Contracted Rent (€m) WALL Years 100% Rent (€m) Office (€/sqm/m) Commercial (€/sqm/m) Industrial (€/sqm/m) Office & Mixed-Use Portfolio Bucharest New CBD 8 12 857.0 343.4 97.1% 67.5 5.1 69.4 15.2 15.2 – Bucharest Other 4 6 269.8 118.2 96.3% 21.3 5.3 22.6 14.7 14.4 – Romania: Office 12 18 1,126.8 461.6 96.9% 88.8 5.2 92.0 15.1 15.0 – Warsaw 7 12 599.2 172.5 91.4% 42.3 3.7 45.7 20.0 20.2 – Krakow 4 12 275.6 150.2 59.1% 17.4 4.1 28.1 14.9 14.9 – Wroclaw 2 3 133.6 56.7 96.0% 10.9 4.0 11.3 15.2 15.1 – Lodz 1 2 60.0 35.5 70.1% 4.3 3.1 6.0 13.5 13.6 – Katowice 3 6 164.1 90.0 73.8% 12.5 4.1 16.3 14.3 13.9 – Gdansk 1 1 54.3 25.6 79.4% 4.0 5.0 5.0 15.0 14.8 – Poland: Office & Mixed-Use 18 36 1,286.8 530.4 77.8% 91.3 3.9 112.3 16.8 16.7 – Total Office & Mixed- Use Portfolio 30 54 2,413.6 992.0 86.7% 180.1 4.5 204.3 15.9 15.8 – Logistics / Light-Industrial Craiova 1 1 4.9 5.9 100.0% 0.4 19.4 0.4 8.0 4.5 4.4 Total Industrial Portfolio 1 1 4.9 5.9 100.0% 0.4 19.4 0.4 8.0 4.5 4.4 Other Portfolio Bucharest New CBD Upground Complex – Residential 1 1 20.7 10.2 nm 0.3 3.3 0.3 – – – Bucharest New CBD Upground Complex – Commercial – – 10.0 5.8 87.5% 0.7 9.2 0.8 – 10.5 – Total Other Portfolio 1 1 30.7 16.0 nm 1.0 7.6 1.1 – 10.5 – Total Standing Commercial Portfolio 31 55 2,428.5 1,003.7 86.7% 181.2 4.6 205.5 15.9 15.7 4.4 Of which Romania 13 19 1,141.7 473.3 96.8% 89.9 5.3 93.2 15.0 14.8 4.4 Of which Poland 18 36 1,286.8 530.4 77.8% 91.3 3.9 112.3 16.8 16.7 – 150 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Standing Portfolio – Breakdown by Location & Type continued As at 31 December 2024 GAV (€m) GLA (k sqm) No. of Standing Investments (#) Standing Properties (#) Standing Properties Under Construction Future Developments Total Portfolio Standing Properties Under Construction Future Developments Total Portfolio Office Portfolio Bucharest New CBD 8 12 857.0 – 7.1 864.1 343.4 – 17.2 360.6 Bucharest Other 4 6 269.8 – 18.3 288.1 118.2 – 59.8 178.0 Romania: Office 12 18 1,126.8 – 25.4 1,152.2 461.6 – 77.0 538.6 Warsaw 7 12 599.2 – – 599.2 172.5 – – 172.5 Krakow 4 12 275.6 – 6.3 281.9 150.2 – 17.7 167.9 Wroclaw 2 3 133.6 110.9 – 244.5 56.7 48.3 – 105.1 Lodz 1 2 60.0 – – 60.0 35.5 – – 35.5 Katowice 3 6 164.1 – – 164.1 90.0 – – 90.0 Gdansk 1 1 54.3 – – 54.3 25.6 – – 25.6 Poland: Office & Mixed-Use 18 36 1,286.8 110.9 6.3 1,404.0 530.4 48.3 17.7 596.5 Total Office & Mixed-Use Portfolio 30 54 2,413.6 110.9 31.7 2,556.2 992.0 48.3 94.7 1,135.1 Logistics / Light-Industrial Craiova 1 1 4.9 – – 4.9 5.9 – – 5.9 Constanta – – – – 7.9 7.9 – – 129.8 129.8 Total Logistics / Light-Ind. Portfolio 1 1 4.9 – 7.9 12.8 5.9 – 129.8 135.7 Other Portfolio Bucharest New CBD Upground Complex – Residential 1 1 20.7 – – 20.7 10.2 – – 10.2 Bucharest New CBD Upground Complex – Commercial – – 10.0 – – 10.0 5.8 – – 5.8 Total Other Portfolio 1 1 30.7 – – 30.7 16.0 – – 16.0 Total Commercial Portfolio 31 55 2,428.5 110.9 39.6 2,579.0 1,003.7 48.3 224.5 1,276.6 Of which Romania 13 19 1,141.7 – 33.3 1,175.0 473.3 – 206.8 680.2 Of which Poland 18 36 1,286.8 110.9 6.3 1,404.0 530.4 48.3 17.7 596.5 151 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Portfolio – Breakdown by Location & Type As at 31 December 2024 Contracted Rent and ERV (€m) Standing Properties Under Construction Future Developments ERV of Available Spaces Total Standing U/C & Future Standing & U/C Future Office Portfolio Bucharest New CBD 67.5 – – 1.9 – / 3.8 69.4 3.8 Bucharest Other 21.3 – – 1.3 – / 12.6 22.6 12.6 Romania: Office 88.8 – – 3.2 – / 16.3 92.0 16.3 Warsaw 42.3 – – 3.4 – / – 45.7 – Krakow 17.4 – – 10.7 – / 3.1 28.1 3.1 Wroclaw 10.9 6.1 – 0.4 3.4 / – 20.7 – Lodz 4.3 – – 1.7 – / – 6.0 – Katowice 12.5 – – 3.8 – / – 16.3 – Gdansk 4.0 – – 1.0 – / – 5.0 – Poland: Office & Mixed-Use 91.3 6.1 – 20.9 3.4 / 3.1 121.7 3.1 Total Office & Mixed-Use Portfolio 180.1 6.1 – 24.2 3.4 / 19.4 213.7 19.4 Logistics / Light-Industrial Craiova 0.4 – – – – / – 0.4 – Constanta – – – – – / 6.9 – 6.9 Total Logistics / Light-Ind. Portfolio 0.4 – – – – / 6.9 0.4 6.9 Other Portfolio Bucharest New CBD Upground Complex – Residential 0.3 – – – – / – 0.3 – Bucharest New CBD Upground Complex – Commercial 0.7 – – 0.1 – / – 0.8 – Total Other Portfolio 1.0 – – 0.1 – / – 1.1 – Total Commercial Portfolio 181.2 6.1 – 24.3 3.4 / 26.3 214.9 26.3 Of which Romania 89.9 – – 3.3 – / 23.2 93.2 23.2 Of which Poland 91.3 6.1 – 20.9 3.4 / 3.1 121.7 3.1 152 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report EPRA Performance Measures EPRA vacancy rate The EPRA vacancy rate is calculated by dividing the market rents of vacant spaces by the market rents of the total space of the whole property portfolio (including vacant spaces). The rationale for using the EPRA vacancy rate is that it can be clearly defined, should be widely used by all participants in the direct real estate market and comparable from one company to the next. EPRA Vacancy Rate 31-Dec-23 €’000 31-Dec-24 €’000 Estimated Rental Value of vacant space (A) 25.9 24.3 Estimated rental value of the whole portfolio (B) 209.0 197.9 EPRA Vacancy Rate (A / B) 12.4% 12.3% EPRA net initial yield and EPRA “topped-up” net initial yield The EPRA NIY (Net Initial Yield) is calculated as the annualised rental income based on passing cash rents, less non-recoverable property operating expenses, divided by the gross market value of the property. The EPRA “Topped-up” NIY is calculated by making an adjustment to EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives such as discounted rent-free periods and step rents). EPRA NIY and EPRA “topped-up” NIY are aimed at encouraging the provision of comparable and consistent disclosure of yield measures across Europe. These two yield measures can be clearly defined, widely used by all participants in the direct and indirect European real estate market and should be largely comparable from one company to the next and with market evidence. EPRA NIY and ‘topped-up’ NIY 31-Dec-23 €m 31-Dec-24 €m Investment property – wholly owned 2,865.8 2,591.8 Investment property – share of JVs/Funds 64.5 4.0 Trading property (including share of JVs) – – Less: developments, future developments 239.8 146.5 Completed property portfolio 2,690.5 2,449.2 Allowance for estimated purchasers’ costs 2% 53.8 49.0 Gross up completed property portfolio valuation (B) 2,744.3 2,498.2 Annualised cash passing rental income 169.0 163.4 Property outgoings 11.6 12.5 Annualised net rents (A) 157.4 150.9 Add: notional rent expiration of rent free periods or other lease incentives 19.4 18.1 Topped-up net annualised rent (C) 176.8 168.9 EPRA NIY (A / B) 5.7% 6.0% EPRA “topped-up” NIY (C / B) 6.4% 6.8% 153 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report EPRA Cost Ratios (%) 31-Dec-24 €’000 31-Dec-23 €’000 Include: Administrative/operating expense line per IFRS income statement (17,962) (15,948) Net service charge costs/fees (9,377) (11,786) Management fees less actual/ estimated profit element 89 122 Other operating income/recharges intended to cover overhead expenses less any related profits (444) 110 Share of Joint Ventures expenses (880) (1,817) Exclude (if part of the above): Investment property depreciation n/a n/a Ground rent costs 4 10 Service charge costs recovered through rents but not separately invoiced – – EPRA Costs (including direct vacancy costs) (28,570) (29,309) Direct vacancy costs 8,187 11,666 EPRA Costs (excluding direct vacancy costs) (20,383) (17,643) Gross Rental Income less ground rents – per IFRS2 152,784 160,365 Less: service fee and service charge costs components of Gross Rental Income (if relevant) – – Add: share of Joint Ventures (Gross Rental Income less ground rents) 2,296 3,741 Gross Rental Income 155,080 164,106 EPRA Cost Ratio (including direct vacancy costs) 18% 18% EPRA Cost Ratio (excluding direct vacancy costs) 13% 11% New EPRA NAV metrics EPRA NRV 31-Dec-24 €’000 EPRA NTA 31-Dec-24 €’000 EPRA NDV 31-Dec-24 €’000 EPRA NRV 31-Dec-23 €’000 EPRA NTA 31-Dec-23 €’000 EPRA NDV 31-Dec-23 €’000 Net assets attributable to equity holders of the parent 1,518,952 1,518,952 1,518,952 1,601,124 1,601,124 1,601,124 Include / exclude: I) Hybrid instruments – – – – – – Diluted NAV 1,518,952 1,518,952 1,518,952 1,601,124 1,601,124 1,601,124 Include: II. a) Revaluation of IP (if IAS 40 cost option is used) – – – – – – II. b) Revaluation of IPUC (if IAS 40 cost option is used) – – – – – – II. c) Revaluation of other non-current investments – – – – – – III.) Revaluation of tenant leases held as finance leases – – – – – – IV.) Revaluation of trading properties – – – – – – Diluted NAV at fair value 1,518,952 1,518,952 1,518,952 1,601,124 1,601,124 1,601,124 Exclude: V) 50% of deferred tax in relation to fair value gains of IP 124,032 62,016 n/a 152,280 76,140 n/a VI) Fair value of financial instruments (1,185) (1,185) (1,185) 1,114 1,114 1,114 VII) Goodwill as a result of deferred tax (5,387) (5,387) (5,387) (5,387) (5,387) (5,387) VIII. a) Goodwill as per the IFRS balance sheet n/a (6,652) (6,652) n/a (6,652) (6,652) VIII. b) Intangibles as per the IFRS balance sheet n/a (3) (3) n/a (35) (35) IX) Adjustment in respect of Joint venture and NCI for above items 2,617 2,617 – 1,455 1,455 n/a Include: IX) Fair value of fixed interest rate debt n/a n/a (9,375) n/a n/a 98,751 X) Revaluation of intangibles to fair value n/a n/a n/a n/a n/a n/a XI) Real estate transfer tax / acquisition costs – – n/a – – n/a NAV 1,639,029 1,570,358 1,496,350 1,750,586 1,667,759 1,688,915 Fully diluted number of shares 278,501 278,501 278,501 252,087 252,087 252,087 NAV per share (EUR) 5.89 5.64 5.37 6.94 6.62 6.70 EPRA Performance Measures continued 154 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report EPRA Performance Measures continued EPRA LTV Metric 31/12/2024 31/12/2023 Group (as reported) €’000 Proportionate Consolidation Share of Joint Ventures €’000 Combined €’000 Group (as reported) €’000 Proportionate Consolidation Share of Joint Ventures €’000 Non- controlling Interests €’000 Combined €’000 Include: Borrowings from Financial Institutions 812,226 – 812,226 753,924 17,547 (1,973) 769,498 Commercial paper n/a n/a n/a n/a n/a n/a n/a Hybrids (including convertibles, preference shares, debt, options, perpetuals) n/a n/a n/a n/a n/a n/a n/a Bond loans 510,327 n/a 510,327 865,258 n/a n/a 865,258 Foreign currency derivatives (futures, swaps, options and forwards) n/a n/a n/a n/a n/a n/a n/a Net payables 7,675 1,869 9,544 10,489 1,874 n/a 12,363 Owner-occupied property (debt) n/a n/a n/a n/a n/a n/a n/a Current accounts (equity characteristic) n/a n/a n/a n/a n/a n/a n/a Exclude: Cash and cash equivalents 333,560 11 333,571 396,259 2,506 (130) 398,635 Net Debt (a) 996,668 1,858 998,526 1,233,412 16,915 (1,843) 1,248,484 Include: Owner-occupied property n/a n/a – n/a n/a n/a – Investment properties at fair value 2,462,185 3,950 2,466,135 2,652,915 64,350 (2,875) 2,714,390 Properties held for sale 35,763 n/a 35,763 50,352 n/a n/a 50,352 Properties under development 123,160 – 123,160 190,170 174 (2,925) 187,419 Intangibles 3 n/a 3 35 n/a n/a 35 Net receivables n/a n/a – n/a n/a n/a – Financial assets 3,744 n/a 3,744 45,732 n/a n/a 45,732 Total Property Value (b) 2,624,855 3,950 2,628,805 2,939,204 64,524 (5,800) 2,997,928 Optional: Real Estate Transfer Taxes n/a n/a n/a n/a n/a n/a n/a Total Property Value (incl. RETTs) (c) n/a n/a n/a n/a n/a n/a n/a LTV (a/b) 38.0% 47.0% 38.0% 42.0% 26.2% 31.8% 41.6% 155 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Investing Policy Investing Strategy The Company’s primary focus is to invest in a diversified portfolio of real estate assets situated in Romania and Poland, the two largest markets in Central and Eastern Europe. The Company may also invest in real estate assets located in other South- Eastern European and Central Eastern European countries. The Directors believe its primary markets of investment represent an attractive real estate investment proposition over the medium-to-long term. By investing in income-generating properties, asset repositioning and development opportunities, and seeking to derive most of its income from multinational corporate groups and institutional financial tenants on long, triple net leases, the Company intends to provide investors with an attractive, risk-adjusted combination of yield and capital appreciation. Globalworth is internally managed, with all investment advisory and portfolio management services exclusively provided by Globalworth Investment Advisers Ltd (“GIAL”), a wholly owned subsidiary of the Company. Asset management services to the Company’s real estate portfolio are provided by Globalworth Asset Managers (“GAM”), another wholly-owned subsidiary of Globalworth. Assets or Companies in Which the Company can Invest Investments made by the Company may take the form of, but are not limited to, single real estate assets, real estate portfolios and companies, joint ventures, loan portfolios and equity and debt instruments. Strategy Through Which the Investing Policy is Achieved The Company’s strategy is to focus on acquiring underperforming or undervalued properties (due to financial distress, mismanagement or otherwise) and, through active asset management, to transform these into performing and marketable assets. Most of the current or expected income from these assets is derived from multinational corporate groups and institutional financial tenants on long, triple net and annually indexed leases. Investment Approach The Company assumes a proactive approach to every real estate investment in the Company’s portfolio and pursues various asset management initiatives according to the most appropriate business plan for each investment. These initiatives may include: repositioning of existing assets (including re-letting, refurbishment or redevelopment); development of new assets, corporate restructuring and reorganisation; portfolio break-ups (for example, “wholesale” to “retail” trades); and optimising capital structure. Holding Period for Investments The typical holding period for any investment is expected to be five to seven years. The decision to exit a particular investment will be taken by the Company’s Board of Directors (“the Board”) following the recommendation of the Investment Adviser, and may be less or greater than the expected holding period. Such a decision may result from a variety of factors, including the need to optimise the risk/return of the investment, responding to asset or market dynamics, or taking advantage of an unsolicited enquiry, but always with a view to ensuring that returns to shareholders are maximised. 156 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Glossary Adjusted EBITDA (normalised) Earnings before finance cost, finance income, tax, depreciation, amortisation of other non-current assets, purchase gain on acquisition of subsidiaries, fair value gain or loss on investment properties and financial instruments, and other non-operational and/or non-recurring income and expense items. Asset or Property Represent the individual land plot or building under development or standing building which forms part or the entirety of an investment. Bargain Purchase Gain Any excess between the fair value of net assets acquired and consideration paid, in accordance with IFRS 3 “Business Combinations”. BREEAM Building Research Establishment Assessment Method (“BREEAM”), which assesses the sustainability of the buildings against a range of criteria. CAPEX Represents the estimated capital expenditure to be incurred for the completion of the development projects. Capitalisation Rates Based on actual location, size and quality of the properties and taking into account market data at the valuation date. CBD Central Business District. CEE Central and Eastern Europe. CIT Corporate income tax. Combined Portfolio Includes the Group’s property investments consolidated on the balance sheet under investment property−freehold as at 31 December 2024, plus those properties held as joint ventures presented at 100%. Commercial Properties Comprise the office, light-industrial and retail properties or areas of the portfolio. Completed Investment Property Completed developments consist of those properties that are in a condition which will allow the generation of cash flows from its rental. Completion Dates The date when the properties under development will be completed and ready to generate rental income after obtaining all necessary permits and approvals. Consolidated Coverage Ratio Calculated as the aggregate amount of Adjusted EBITDA for the period of the most recent two consecutive semi-annual periods ending on such Measurement Date divided by the Consolidated Interest Expense for such two semi-annual periods. Consolidated Interest Expense All charges, interest, commission, fees, discounts, premiums and other finance costs in respect of Indebtedness (but excluding such interest on Subordinated Shareholder Debt) incurred by the Group. Consolidated Leverage Ratio Calculated as the Consolidated Total Indebtedness divided by Consolidated Total Assets. Consolidated Secured Leverage Ratio Calculated as the Secured Consolidated Total Indebtedness divided by Consolidated Total Assets at that date. Consolidated Total Assets Total assets (excluding intangible assets) of the Group. Consolidated Total Indebtedness Total Indebtedness of the Group (excluding deferred tax liabilities and income and deposits from tenants). Contracted Rent The annualised headline rent that is contracted on leases (including pre-leases) before any customary tenant incentive packages. Debt Service Cover Ratio (“DSCR”) It is calculated as net operating income for the year as defined in specific loan agreements with the respective lenders, divided by the principal plus interest due over the same year. Discount Rates The discount rate is the interest rate used to discount a stream of future cash flows to their present value. Discounted Cash Flow Analysis (“DCF”) Valuation method that implies income projections of the property for a discrete period of time, usually between 5–10 years. The DCF method involves the projection of a series of periodic cash flows either to an operating property or a development property. Discounted cash flow projections are based on significant unobservable inputs taking into account the costs to complete and completion date. Earnings Per Share (“EPS”) Profit after tax divided by the basic/diluted weighted average number of shares in issue during the year. EDGE Excellence in Design for Greater Efficiencies (“EDGE”). An innovation of the International Finance Corporation (“IFC”), member of the World Bank Group, EDGE is a green building standard and a certification system for more than 160 countries. EPRA The European Public Real Estate Association is a non- profit association representing Europe’s publicly listed property companies. EPRA Earnings Profit after tax attributable to the equity holders of the Company, excluding investment property revaluation, gains, losses on investment property disposals and related tax adjustment, bargain purchase gain on acquisition of subsidiaries, acquisition costs, changes in the fair value of financial instruments and associated close-out costs and the related deferred tax impact of adjustments made to profit after tax. EPRA Earnings Per Share EPRA Earnings divided by the basic or diluted number of shares outstanding at the year or period end. EPRA Net Disposal Value (“EPRA NDV”) The EPRA Net Disposal Value provides the reader with a scenario where deferred tax, financial instruments, and certain other adjustments are calculated as to the full extent of their liability, including tax exposure not reflected in the balance sheet, net of any resulting tax. This measure should not be viewed as a “liquidation NAV” because, in many cases, fair values do not represent liquidation values. 157 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Glossary continued EPRA Net Reinstatement Value (“EPRA NRV”) The objective of the EPRA Net Reinstatement Value measure is to highlight the value of net assets on a long-term basis. Assets and liabilities that are not expected to crystallise in normal circumstances such as the fair value movements on financial derivatives and deferred taxes on property valuation surpluses are therefore excluded. Since the aim of the metric is to also reflect what would be needed to recreate the Company through the investment markets based on its current capital and financing structure, related costs such as real estate transfer taxes are included, as applicable. EPRA Net Tangible Assets (“EPRA NTA”) The underlying assumption behind the EPRA Net Tangible Assets calculation assumes entities buy and sell assets, thereby crystallising certain levels of deferred tax liability. EPRA NAV, EPRA NRV, EPRA NTA, EPRA NDV Per Share EPRA NAV, or EPRA NRV, or EPRA NTA, or EPRA NDV divided by the diluted number of shares outstanding at the year or period end. Estimated Rental Value (“ERV”) ERV is the external valuers’ opinion as to the open market rent which, on the date of valuations, could reasonably be expected to be obtained on a new letting or rent review of a property. Estimated Vacancy Rates Represent vacancy rates computed based on current and expected future market conditions after expiry of any current lease. EURIBOR The Euro Interbank Offered Rate: the interest rate charged by one bank to another for lending money, often used as a reference rate in bank facilities. Financial Year Period from 1 January to 31 December. FFO Free funds from operations, estimated as the EPRA Earnings for the relevant period. GLA Gross leasable area. IFRS International Financial Reporting Standards as adopted by the European Union. IFRS Earnings Result (Profit or Loss) after tax as per the statement of comprehensive income. IFRS Earnings per share Result (Profit or Loss) after tax as per the statement of comprehensive income divided by the weighted average number of shares in issue during the year. Interest Cover Ratio (“ICR”) Calculated as net operating income divided by the debt service/interest. Investment Represent A location in which the Company owns/has interests in. Land Bank for Further Development Land bought for further development but for which the Group did not obtain all the legal documentations and authorisation permits in order to start the development process. Leadership in Energy & Environmental Design (“LEED”) LEED, a green building certification programme that recognises best-in-class building strategies and practices. Loan-to-Cost Ratio (“LTC”) Calculated by dividing the value of loan drawdowns by the total project cost. Loan to Value (“LTV”) Calculated as the total outstanding debt excluding amortised cost, less cash and cash equivalents as of financial position date, divided by the appraised value of owned assets as of the financial position date. Both outstanding debt and the appraised value of owned assets include our share of these figures for joint ventures, which are accounted for in the consolidated financial statements under the equity method. Maintenance Costs Including necessary investments to maintain functionality of the property for its expected useful life. Master Lease Master lease includes various rental guarantees, which range between 3 and 5 years, covering certain vacant spaces in certain properties owned in Poland. MSCI MSCI is an international finance company headquartered in New York City and listed on the New York Stock Exchange and serves as a global provider of equity, fixed income, hedge fund stock market indexes, multi-asset portfolio analysis tools and ESG products. An MSCI ESG Rating is designed to measure a company’s resilience to long-term, industry material environmental, social and governance (“ESG”) risks. NBP National Bank of Poland. Net Asset Value (“NAV”) Equity attributable to shareholders of the Company and/or net assets value. Net Asset Value (“NAV”) Per Share Equity attributable to owners of the Company divided by the number of ordinary shares in issue at the period end. Net Operating Income (“NOI”) Net operating income is the gross operating income less operating expenses that are not paid by or rechargeable to tenants, excluding funding costs, depreciation and capital expenditure. Occupancy Rate The estimated let sqm (GLA) as a percentage of the total estimated total sqm (GLA) of the portfolio, excluding development properties and in certain cases (where applicable) spaces subject to asset management (where they have been taken back for refurbishment and are not available to let as of the financial position date). Open Market Value (“OMV” or “GAV”) Open market value means the fair value of the Group’s investment properties and the joint ventures (where the Group owns 50%) determined by Colliers Valuation and Advisory SRL (“Colliers”), Cushman & Wakefield LLP (“C&W”) and Knight Frank Sp. z o.o (“Knight Frank”), independent professionally qualified valuers who hold a recognised relevant professional qualification and have recent experience in the locations and segments of the investment properties valued, using recognised valuation techniques. Passing Rent This is the gross rent, less any ground rent payable under the head leases. Property Under Development Properties that are in development process that do not meet all the requirements to be transferred to completed investment property. RCF Revolving Credit Facility. 158 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Glossary continued Residual Value Method Valuation method that estimates the difference between the market value of the building upon completion that can be built on the plot of land and all the building’s construction costs, as well as the developer’s profit. This method relies on the contribution concept by estimating from the future income of the building, the amount that can be distributed to the land. ROBOR Romanian Interbank Offer Rate. Sales Comparison Approach Valuation method that compares the subject property with quoted prices of similar properties in the same or similar location. Secured Consolidated Total Indebtedness Consolidated Total Indebtedness that is secured by any Security granted by any member of the Group. SPA Share sale purchase agreement. SQM Square metres. The Company or the Group Globalworth Real Estate Investments Limited and its subsidiaries. The Investment Adviser Globalworth Investment Advisers Limited, a wholly owned holding subsidiary incorporated in Guernsey. Total Accounting Return Total accounting return is the growth in EPRA NRV per share plus dividends paid, expressed as a percentage of EPRA NRV per share at the beginning of the year. Total Unencumbered Assets Ratio Calculated as the Unsecured Consolidated Total Assets divided by Unsecured Consolidated Total Indebtedness. Unsecured Consolidated Total Assets Means such amount of Consolidated Total Assets that is not subject to any Security granted by any subsidiary of the Group. Unsecured Consolidated Total Indebtedness Means the Consolidated Total Indebtedness less Secured Consolidated Total Indebtedness. WALL Represents the remaining weighted average lease length of the contracted leases as of the financial position date, until the lease contracts’ full expiration. Weighted Average Interest Rate The average of the interest rate charged on the Group’s loans, weighted by the relative outstanding balance of each loan at the year or period end. WIBOR Warsaw Interbank Offered Rate. 159 Globalworth Annual Report and Financial Statements 2024 Financial Statements Additional Information Governance Operational Review Strategic Report Company Directory Registered Office PO BOX 336 Fourth Floor Plaza House Admiral Park St Peter Port Guernsey GY1 3UQ Nominated Adviser and Broker Panmure Liberum Limited Ropemaker Place Level 12 25 Ropemaker Street London EC2Y 9LY Investment Adviser* Fourth Floor Plaza House Admiral Park St Peter Port Guernsey GY1 2HU Auditor Ernst & Young Cyprus Limited Esperides Building 10 Esperidon Street 1087 Nicosia, Cyprus P.O Box 21656 1511 Nicosia Cyprus Administrator IQ EQ (Guernsey) Limited Fourth Floor Plaza House Admiral Park St Peter Port Guernsey GY1 2HU Company Secretary Fourth Floor Plaza House Admiral Park St Peter Port Guernsey GY1 2HU Registrar Link Market Services (Guernsey) Limited Mont Crevalt House Bulwer Avenue St. Sampson Guernsey GY2 4LH *Wholly owned subsidiary of the Company. 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