Interim report Quartiers Properties January – March 2023

Quartiers Properties AB (publ) today publishes the company's interim report for the first quarter of 2023.

JANUARY–MARCH 2023

• Net sales totalled SEK 58,151 (34,927) thousand, an increase of 66% compared to Q1 2022.
• EBITDA adjusted for previous value adjustments on sold apartments in the company's apartment hotels was SEK 6,491 thousand (4,027).
• Revenue from operator activities was SEK 13,581 (12,907) thousand, corresponding to 5,2% growth. Proceeds from the divestment of properties during the period totalled SEK 44,570 (22,020) thousand and relate to the sale of land and apartments in hacienda collection.
• The company's cash flow from operating activities including divestment of operating properties totalled SEK 28,370 thousand (-13,942).
• Gross profit fell by SEK -371 thousand compared to the first quarter of 2022 and totalled SEK -6,682 (-6,311) thousand. Operating profit before depreciation and amortisation totalled SEK -8,737 (-6,127) thousand.
• Income after tax for the period was SEK -13,437 (-20,804) thousand.
• Earnings per share for 1 January–31 March 2023 were SEK -0.23 (-0.39).
• Shareholders’ equity at 31 march 2023 was SEK 225,448 (240,698) thousand.
• The company’s net asset value at 31 March 2023 was SEK 303,319 (294,918) thousand, which equates to SEK 5.26 (5.38) per ordinary share. The net asset value has been adjusted for preference shareholders’ share of equity, corresponding to SEK 81,328 thousand, and accumulated unpaid dividends, as well as default interest on unpaid dividends totalling SEK 22,904 thousand.

SIGNIFICANT EVENTS IN THE FIRST QUARTER OF THE YEAR

• During the quarter, a total of eight apartments in hacienda collection were divested at a net selling price in line with the carrying amount.

SIGNIFICANT EVENTS SINCE THE END OF THE PERIOD

• In April, 10 new bungalows were opened at the boho club. Demand has been good, with a total occupancy at the hotel of 82% in April.
• Also in April, a new external valuation of the company's boho club property was obtained. The valuation resulted in a 3.9% increase in the property value in local currency.

Message from the CEO

We are making progress in all areas. Sales are up 66% compared to the same quarter in 2022. EBITDA, adjusted for previous value increases, is positive for the quarter (SEK 6.4 million), despite the macroeconomic challenges of the first quarter. During the quarter, we also generated cash flow of SEK 28.4 million from operations and property sales. According to plan, we also opened ten new bungalows at Boho Club just before Easter, which were also fully booked in the first week. The second quarter has also begun strongly, especially for Boho Club, which from April onwards has outperformed all previous years. This bodes well for the upcoming peak season.

As apartments in the Hacienda Collection project are being sold, preparation of the launch of the 60 new apartments in the same area is going well. The project was previously known as Ocean View, but was renamed Altura160. In order to price both projects optimally, we estimate that the offering in Hacienda Collection should be reduced by another 10–15 apartments before the launch of Altura160.

Sales and investments in recent years have increased our focus on hotel properties. A second hotel is in the planning stage and will be built next to the Boho Club on the Centro Forestal Sueco property as soon as the municipality gives the go-ahead in the zoning process currently underway. The schedule for this work is currently difficult to estimate, but the process is moving forward.

The fact that we own and operate our properties ourselves has built up a broad and significant expertise in the company. We have chosen to focus on smaller, personal hotel properties in the luxury segment, such as Boho Club, and in this segment we are actively looking for new projects where we can create value. It is a very interesting segment with fewer competitors than traditional property management or development. Correctly implemented, the business area is also very profitable and with the expertise the company possesses today, we intend to invest and grow in this segment in the coming years.

In order to realise this growth, enable future bank/debt financing on attractive terms and take responsibility for the company in a changing world, we continue to focus on constantly improving the business and striving for good profitability and responsible planning of the company's cash.

Marcus Johansson Prakt
CEO

Quartiers Properties AB (publ) is required to disclose this information under the EU Market Abuse Regulation. This information was provided for publication through the agency of the contact person above at 8.30 a.m. on 11 May 2023 .

Please address questions to:

Quartiers Properties

Marcus Johansson Prakt, Chief Executive Officer
Email: marcus.prakt@quartiersproperties.se
Phone: +46 72 018 59 98

The company in brief
Quartiers Properties is a Swedish property development company with a focus on excellent design and quality, and is active on the Spanish Costa del Sol. The company was founded in 2014, since when it has built up a portfolio of investment properties and project properties. The company develops, sells and rents out properties.

Quartiers Properties owns and manages Boho Club, which is a boutique resort in Marbella’s Golden Mile district with a restaurant and 30 hotel rooms. The project has won awards for its design and architecture, and since its launch in 2019, both the hotel and the restaurant have established themselves as leading venues in Marbella. Visit Boho Club website www.bohoclub.com to book a hotel room or reserve a table at the restaurant. The restaurant is open daily, serving breakfast, lunch and dinner.

Quartiers Marbella Apartments is an apartment complex in Benahavís, the neighbouring municipality to Marbella, where Quartiers runs apartment rental operations. The apartments are ideal for short- and long-term accommodation and are popular among families, as well as groups visiting Marbella for leisure purposes, fitness holidays or to play golf. Visit our website www.quartiersmarbella.com to book your apartment.

Hacienda Collection is an apartment project in Benahavís just outside Marbella, where Quartiers Properties is selling apartments that are ready for immediate occupancy. The apartments are located in a gated community featuring wonderful views of the Mediterranean. These apartments feature a large, open floorplan with big windows, high-end kitchen, separate laundry room and 2–3 bedrooms. The spacious terraces offer plenty of scope for spending time with family and friends. Visit the website for additional information and to book an online or in-person viewing:  www.haciendacollection.es.

Mangold is the company’s Certified Adviser. Mangold can be contacted on +46 (0)8 503 015 50 or by emailing ca@mangold.se.