First Sponsor (ADN) Q1 2024 TU earnings summary

Executive summary

• PRC property buying sentiment remained subdued in 1Q2024; staged handovers across most development projects are planned during FY2024, with stronger buyer confidence potentially adding sales recognition.

• European portfolio operating income rose 31.1% YoY to €7.9m, while hotel performance diverged: European hotels improved and Chengdu Wenjiang hotels weakened.

Financial highlights

• European property operating income was €7.874m in 1Q2024, up 31.1% YoY from €6.006m; Dutch office income rose 10.6% to €5.868m and hotel income increased 187.4% to €2.006m.

• European hotels recorded revenue of €24.18m, up 5.8% YoY, and EBITDA of €0.91m versus LBITDA of €0.36m in 1Q2023.

• Chengdu Wenjiang hotels' revenue fell 6.8% YoY to RMB18.10m and EBITDA declined 61.6% to RMB1.55m.

Outlook and guidance

• Most PRC development projects are expected to hand over units in stages during FY2024; potential improvement in buying confidence could support additional sales recognition within the year.

• Time Zone Phase 1.2's final two residential blocks and remaining SOHO block are now expected to launch for pre-sales in 2H2024, delayed from 1H2024 due to subdued demand.

• Meerparc aims to sign a municipal agreement in 2Q2024 and apply for its building permit in 2H2024; Dreeftoren office and residential towers target completion in 2Q2025 and 2Q2026.

• Puccini Milan hotel and Le Méridien Frankfurt renovation are expected to start in 2H2024 and complete in 1H2025; PRC property-financing loans are expected to decline further during FY2024.