First Sponsor (ADN) Q1 2025 earnings summary

Executive summary

• PRC development presales remained subdued in 1Q2025 amid weak sentiment; all ongoing PRC projects under construction are expected to complete in 2025, with handovers underway at completed phases.

• European property operating income was €7.8m, broadly stable YoY despite major refurbishment at Le Méridien Frankfurt; excluding that hotel, income rose 7.2% to €8.4m.

• A settlement was reached on the RMB375.8m defaulted loan; RMB165.3m was received on 9 April 2025, leaving RMB232.2m principal due by 6 June 2025.

Financial highlights

• European property portfolio operating income was €7.839m in 1Q2025 versus €7.874m in 1Q2024; Dutch office income rose 1.9% to €5.981m, while European hotel income fell 7.4% to €1.858m.

• European hotels revenue was €23.40m, down 3.2% YoY; EBITDA was €0.72m versus €0.91m, down 20.9%. Excluding Le Méridien Frankfurt, revenue rose 2.5% and EBITDA was €1.3m, up 48.4%.

• Chengdu Wenjiang hotels revenue fell 14.0% to RMB15.57m, while EBITDA increased to RMB2.34m from RMB1.55m, supported by lower maintenance and owner expenses.

Outlook and guidance

• Further PRC government stimulus and support expected in 2025 may contribute to a gradual market recovery; pricing strategy continues to avoid deep discounts.

• Completion targets include PRC projects in 2025, Puccini Hotel Milan and Le Méridien Frankfurt in 4Q2025, and Sydney House in 3Q2027; Meerparc redevelopment is scheduled to begin in 2H2026.

• The Fenggang residential land public tender is expected in 2H2026; final loan settlement payment of RMB232.2m plus default interest is due no later than 6 June 2025.