Expected Revenue Generation at Appeninn Holding

Appeninn Asset Management Holding Plc. accounted 4.2 million EUR turnover and 11.4 million EUR EBITDA (interests, profit and loss before taxation and depreciation) for the first half of 2020. Profit and loss before taxation measured 7.4 million EUR, which is lower compared to the same period of the previous year.

According to the half-year report by the board of directors, the Appeninn Corporate Group performed significant expansion in relation to its existing properties portfolio as of the first half of 2020. At the beginning of the year, the Corporate Group expanded its area for rent with 6,763 square meters altogether in respect to its office building market capacity in District III in Budapest upon the acquisition of the office buildings in Montevideo street, situated in an extraordinarily imposing and frequented surroundings, and in Pauler street in District I, found in a frequented area.

Expansion in the tourist real estate market
Appeninn Corporate Group updated its business strategy in March, in which tourist real estate developments play a crucial part. Regarding the first half of the year, the Corporate Group acquired majority ownership in Solum-Invest Kft., owning the port area of Balatonfüred, and, in Dreamland Holding Zrt., a company concentrating on launching hotel developments. Herewith, three new large scale hotel developments, one adventure park and gastro center, and, moreover, one bathing area development and one new port development are to be in the interest of the Company. As a result of the projects, the future tourist portfolio shall cover the surroundings of Visegrád and even Tokaj in addition to the north and south costs of Lake Balaton.

Management of risks caused by COVID-19
With regard to the stock of tenants, approximately 5-10% of the hereof had to close on account of the government decrees entered into force upon the case of emergency – mostly temporarily. In respect of most of the aforesaid tenants, rescheduling was performed, namely, the majority of liquidity temporarily not received by the end of the year, or in smaller part, at the beginning of the next year are being at disposal for the Corporate Group. The four most important tenants were not or were impacted by COVID-19 to a lesser extent. Appeninn Holding shall hold a significant liquidity reserve and, presumably, even in the cases of temporary loss/rearrangement of income the Company is able to fulfil its financial liabilities in medium term. In the interest of the protection of the tenants, the corporate group shall do every backstop measure to slow the expansion of the epidemic down and to maintain continuous operation.