Shopper Park Plus Plc. Reports Improving Profitability

The SPP Group's after-tax profit for the first nine months of 2025 was EUR 31.3 million, EUR 15.2 million higher than in the first nine months of 2024. In the first quarter of 2025, the Slovakian properties added to the portfolio contributed EUR 13.7 million to the result, accounting for the majority of the increase, while the profitability of the portfolio owned since 2022 also improved.

Following the successful acquisition of the Slovakian properties, Shopper Park Plus Group continues to see opportunities for growth through acquisitions. In line with this, on October 29, 2025, the SPP Group announced its intention to acquire eight retail parks in Poland.

According to the executive summary of the quarterly report published on the webiste of the Budapest Stock Exchange, the SPP Group is seeking further financing opportunities to continue its corporate development. Depending on market conditions, it is considering a possible cash capital increase to support its planned expansion in the Central and Eastern European region, in line with the Company's previously announced strategy.

Effective July 1, 2025, Shopper Park Plus Plc through a real estate sale and purchase agreement transferred all ownership rights to its properties, and its contractual position as a borrower under the related loan agreement to Shopper Retail Park Ltd., a regulated real estate investment company wholly owned by Shopper Park Plus Plc. With this transformation, the real estate properties in the group's portfolio are now owned directly by the subsidiaries of Shopper Park Plus Plc.

Shopper Park Plus Plc. does not directly own any real estate and has no plans to do so in the future, so the Issuer has no direct bank obligations or collateral, which allows it to quickly and flexibly carry out capital or bond market transactions, as well as international or domestic real estate market transactions, without the need for bank approval.

The bank loan financing for properties in Hungary and the Czech Republic was extended on July 1. 2025 until June 30, 2030, and the credit line has been increased to EUR 154.8 million, which Shopper
Retail Park Ltd. drew down in full in July 2025. A significant change in the loan terms is that instead of the previous 15-year amortization period, only 1% of the loan amount is repayable annually, compared to the 4% repayment rate in the past year, which provides significant additional free cash flow to the SPP Group, thus leaving more resources available during the term of the loan for dividend payments, among other things. This type of loan is very similar to the so-called “interest only” loan structure preferred by the SPP Group, which, combined with an approximate LTV of 50%, provides a strong basis for the SPP Group's goal of continuous, predictable dividend payments.

Of the 30,000 m2 of leasable area covered by the option to redeem part of Tesco's leasable area in Hungary, 24,000 sqm have been leased until September 30, 2025. The applications for change of use of the areas covered by the option have already been accepted by the competent authority in seven locations, and planning and preparation are ongoing in one location. The leasing of the sites taken over with the call option involves additional significant expenses due to the development costs, which will be implemented by the SPP Group in a phased manner.

The SPP Group's operational strategic goal is to reduce operating losses to a level in line with industry standards, i.e. to 5-10% of rental income or less, thereby further improving its income-generating capacity. In the reporting period this process came to a halt – the ratio of operating losses to rental income at group level changed from 10.2% in the first nine months of 2024 to 11.4% in the first half of 2025 –, however, with new contracts planned for property management and operation services in Hungary, this process may gain momentum again.

The significant variables affecting the SPP Group's profitability and plans are the development of retail sales, tenant expectations, yield levels, inflation and changes in energy prices. Among these variables, the decline in yield levels improved the operating environment in the first nine months of 2025.