Cromwell European REIT - Annual Report 2021

FINANCIAL PERFORMANCE In FY 2021, CEREIT’s portfolio demonstrated its resilience, delivering gross revenue of €200.1 million, a 7.0% gain y-o-y. NPI was €130.1 million, 10.9% higher y-o-y. The increase in gross revenue and NPI was largely due to full-year contributions from the light industrial / logistics acquisitions completed in FY 2020 - four assets in Germany and one in Italy – and from 17 acquisitions completed in FY 2021, including 12 properties in Czech Republic and Slovakia, two in the UK, two in the Netherlands, and one in Italy. This increase was partly offset by the divestment of one light industrial / logistics property in France that was completed in FY 2021. Property operating expenses of €70.0 million were largely in-line y-o-y, not-withstanding additional expenses from the new acquisitions completed which were offset by the absence of doubtful debt provisions in FY 2021 as compared to FY 2020. FY 2021 NPI rose 10.9% y-o-y to €130.1 million, mainly due to higher revenue from the new acquisitions in the Czech Republic, Slovakia, the UK, Italy and the Netherlands, and in addition to the absence of doubtful debt provisions mentioned above. More details are shown in the gross revenue and NPI Analysis section on page 36. Net finance costs increased by 21.5% or €3.8 million y-o-y. This was was mainly attributable to higher interest cost due to EMTN issued at a higher rate but with longer tenure than the bank-syndicated debt, higher borrowings drawn down to fund acquisitions and higher commitment fee incurred on the undrawn RCF as at 31 December 2021. This increase was partially offset by lower amortisation of debt costs compared to the year before, as FY 2020 net finance costs included one-off debt issuance costs written off and a facility break fee from the debt refinancing executed during the period. FY 2021 Manager’s fees of €5.6 million were 7.1% higher than FY 2020 due to higher deposited property value mostly from the new acquisitions completed in FY 2021. Trust expenses increased by €0.4 million or 8.5%, mainly due to higher professional and property valuation fees. FY 2021 income tax expense of €28.3 million comprised current income tax expense of €6.5 million, deferred tax expense of €22.0 million and capital gains tax credit of €0.2 million. FY 2020 income tax expense of €17.2 million comprised current tax expense of €5.3 million, deferred tax expense of €10.1 million, and capital gains tax of €1.8 million for the divestment of 12 non-core properties in March 2020. Total return for the year attributable to Unitholders was 21.4% higher y-o-y, due to higher NPI and higher fair value gain on property, partially offset by higher finance costs. FY 2021 income available for distribution to Unitholders grew 5.0% y-o-y to €93.6 million and 6.5% y-o-y to €47.5 million in 2H 2021. FY 2021 FY 2020 Variance % Gross revenue (€’000) 200,122 186,972 7.0% NPI (€’000) 130,092 117,329 10.9% Total return attributable to Unitholders (€’000) 96,359 79,363 21.4% Total return attributable to Unitholders and perpetual securities holders (€’000) 96,603 79,363 21.7% Income available for distribution to Unitholders (€’000) 93,618 89,143 5.0% Applicable number of Units (‘000) 551,960 511,728 7.9% DPU Euro cents per Unit (“cpu”) 1,2 16.961 17.420 (2.6%) DPU Euro cents per Unit (“cpu”) on a like-for-like basis 3 16.961 16.870 0.5% 1 Comparative numbers have been adjusted for5:1 Unit consolidation to provide a like-for-like comparison 2 DPU is calculated based on the total number of Units in issue entitled to distributions as at the record date of each distribution 3 On a like-for-like basis, excluding the €2.8 million of realised capital gains that were included in distributable income in 1H 2020 (equivalent to 0.55 Euro cents per Unit) CROMWELL EUROPEAN REIT 35 ANNUAL REPORT 2021