Cromwell European REIT - Annual Report 2021

Thorn Lighting, UK On a human level however, we cannot remain indifferent. We are in constant contact with our teams on the ground and are monitoring developments very closely, assessing the impact of the influx of refugees into Poland and other neighbouring countries. Cromwell has set up a crisis team in its European operations and is committed to providing support to all employees directly affected by the situation. Where possible, assets and facilities within the Central Europe region across the CEREIT portfolio are utilised for humanitarian purposes, including converting carparks and any vacant space into refugee shelters or relief items logistics stations. Market and geopolitical risks notwithstanding, long- term real estate market fundamentals in Europe remain strong. Demand for European real estate is resilient, owing to low capital values, affordable rents and low levels of construction. Yield spreads to interest rates are still relatively attractive, albeit they may narrow slightly in view of the recent interest rate increases as markets adjust to inflationary pressures. Having said that, higher inflation is expected to translate into higher rental growth for the majority of CEREIT’s CPI-indexed leases. We plan to continue to generate sustainable growth for CEREIT, organically through active asset management, asset enhancement initiatives and redevelopments, and inorganically through accretive acquisitions, primarily in the light industrial / logistics sector. CROMWELL EUROPEAN REIT 7 ANNUAL REPORT 2021