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5 NEWS 1.6.2023 PAUL COCKS THE VBL Group - the Valletta focused property owner and investor - ended 2022 with an actual profit for the year of €6.6m and an increase at EBITDA level of 48% over 2021 numbers. Net Asset Value per share increased by 11% to €0.256 (2021: €0.231), which is reflecting the results from the Group's acquisitions and the sched- uled delivered development projects. Even though the hospitality market in Malta was severely affected in the first four months of year 2022, VBL Group's performance quickly recov- ered, leading to and surpassing estab- lished KPIs by year end, reflecting the strong recovery of the market. Currently the VBL Group is oper- ating with a mere 25% of its €80m strong property portfolio, which has been re-developed into market con- scious high-quality products, while much of the remaining 75% of VBL's owned assets are being regenerated and shall become operational in the mid to long term. This explains, why much emphasis and focus goes into the Group's cur- rently ongoing development cycle and the preparation of the future property regeneration cycles. Stephen Clough, the Group's Head of Development, details further "with the completion of the current developments, VBL shall add significant growth in reve- nues, EBITDA and FCF, expected to rump-up to its full commercial poten- tial in 2026". The focused and clear strategy, which has remained constant since VBL's founding and subsequent IPO, is believed to be behind its success. The Group's objective is to continue increasing both revenue and profita- bility for its shareholders via the on- going conversion of its undeveloped properties into revenue generating assets. While VBL remains mainly a growth equity, it continues to pay increasing dividends, a trend which has started in 2015. And the directors have once again, proposed the distribution of dividends. For the upcoming AGM, it is pro- posed to the shareholders to approve a dividend distribution of 12.5% high- er than the previous year. Consistent with previous projec- tions, major increases in potential dividend distribution shall be pos- sible, after the completion of VBL's current development cycle, when it is projected that significant free cash- flow shall be generated. VBL Group is also well known for its presence on the Valletta commer- cial rental market, where VBL has also seen a ramp up in its commercial rental revenues, recording a growth of 74% on the previous year. VBL Plc CFO Julian Tzvetkov ex- plains "This was mainly driven by phasing out discounts provided to Tenants in the pandemic period, and renegotiation of existing rental con- tracts within the Group's rental prop- erty clusters. At the same time, sev- eral existing Tenants have expanded their rental operations within VBL owned commercial space by signing new rental agreements, a true testa- ment of the Group's vision and prod- uct quality. Further growth in this revenue segment shall be realised on completion of the redevelopment of The Coliseum Shopping Arcade, another Valletta landmark property, earmarked for the next development cycle". VBL Management expects a strong growth in the hospitality segment throughout 2023. This forecast is confirmed by the year-to-date KPIs, which have already proven that the market has not only returned but ex- ceeded the levels of 2019, the last full 'normal' operational year. Increase in hospitality daily rates are outperforming inflation, and VBL forecasts for year 2023 suggests that average daily rates shall be at least 20% higher than in the last normal year of operation, with occupancy also growing significantly with 11% over the previous period. In the first quarter of the year, the average daily rates recorded were ca. €83 per unit, for the Group's portfo- lio ranging from economy dormitory beds to high-end palazzos. Current forecasts also suggest that commer- cial operators renting shops from VBL, shall be able to stabilise their businesses in 2023 and have the abili- ty to improve quality and consistency of service. Regarding the Group's ambitious development projects, VBL is firm- ly focusing its attention on its core product – high-quality refurbished historic assets in Valletta - and is cur- rently developing an additional 51 hospitality units. Construction industry capacity is- sues, cost and supply of materials have normalised during the past year, eliminating some major risk factors. The company is confident that based on current assumptions, the key rede- velopment projects shall remain on track when considering delivery of the major milestones, with interim delays being absorbed by the end of the development cycle. During 2022, VBL's development team has delivered on its original pro- jections in terms of completed pro- jects and realised new acquisitions, with long term development plans and overall project CAPEX remain- ing at previously planned levels. The Group's steadfast strategy of convert- ing its currently owned, non-opera- tional property into revenue generat- ing assets seems very much on track for all major projects. VBL Group ends 2022 with €6.6 million profit, net asset value per share up 11% Orangery Phase 1 Old Lodge Casa San Domenico Palazzo Zoe

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