INTRODUCTION
EPRA earnings in 2022 amount to € 42.7m compared to € 46.4m in 2021 (- 7.9%). The decrease in EPRA earnings is the result of lower net rental income and higher administrative costs, partly offset by lower financing costs. EPRA EPS is € 2.15, 9.6% lower than last year.

EPRA NTA is down 8.4% or € 4.06 per share compared to the end of 2021, primarily due to the negative revaluation of the investment portfolio in the second half of 2022.

RENTAL INCOME
Compared to last year, gross rental income decreased by € 6.2m (8.0%) to € 71.3m. This decrease is explained by disposals in the past year (- € 8.7m) and the redevelopment of Vitrum as from July 2021 (- € 2.8m). The positive effect of acquisitions amounts to
€ 1.7m.

On a like-for-like basis gross rental income increased by 5.8%, impacted by lease indexations, higher rent for ING at Laanderpoort, lease renewals and lower vacancy loss.

Non-recoverable service costs are € 0.6m lower than last year, of which € 0.4m is related to disposed objects or objects currently in development.

Operating costs are € 1.7m (13.7%) lower compared to 2021, mainly due to lower maintenance costs (- € 1.6m) and lower municipal taxes (- € 0.3m).

Net rental income amounts to € 59.3m, down € 3.9m (6.2%) versus 2021. The NRI margin is 83.2%, up 1.6 bps vs last year.

Net rental income increased by 7.4% on a like-for-like basis, the result of an increase in Amsterdam and Other G4 (Den Haag, Rotterdam and Utrecht) of respectively 6.0% and 14.7% and a 0.2% decrease in Other Netherlands.

ADMINISTRATIVE COSTS
Administrative expenses are € 0.9m higher compared to 2021, reflecting mainly depreciation costs made in relation to the new headquarter in Amsterdam Zuidoost, consultancy costs, higher travel costs and employee training expenditures.

NET FINANCING COSTS
Financing costs are down by 13.6% (€ 1.3m) compared to the same period last year due to lower interest costs (€ 0.3m) and higher interest capitalised on development projects (€ 0.8m).

INDIRECT RESULT
In 2022 the investment portfolio incurred a negative revaluation of
€ 76.8m (- 5.6% at market value) compared to the valuation in 2021.
A positive mark-to-market effect on interest rate swaps (+ € 2.9m) and other indirect costs (- € 0.2m) result in a total indirect result for 2022 of – € 74.1m.

POST-CLOSING EVENTS AND CONTINGENCIES
On January 24 the sale of HNK Ede and HNK Den Bosch was completed for a total of € 23.2m (before transactions costs).

INCOME SEGMENT SPLIT