10 Sep - 3 min read

COVID-19 lease legislation update and trading statement

COVID-19 lease legislation update and trading statement

EPP N.V.
(Incorporated in The Netherlands)
(Company number 64965945)
JSE share code: EPP
ISIN: NL0011983374
LEI Code: 7245003P7O9N5BN8C098
(“EPP” or the “company”)


COVID-19 LEASE LEGISLATION UPDATE AND TRADING STATEMENT


COVID-19 LEASE LEGISLATION UPDATE

Shareholders are referred to the announcement released on SENS and published on the Luxembourg Stock
Exchange on 2 July 2021. EPP indicated then that the Polish government had amended the COVID-19 related
lease legislation. The amendment has removed the obligation for tenants to extend their lease agreements in
exchange for exemption from rent and service charges during lockdown. Prior to this change, tenants were obliged
to extend the lease for six months plus the lockdown period for each of the lockdowns. The new legislation is
applicable to the second lockdown (in November 2020), third lockdown (in January 2021) and fourth lockdown
(in March and April 2021). The amendment has no impact on EPP’s rental income, but does impact on EPP’s
previously reported retail WAULT.

The newly introduced regulation came into force on 23 July 2021. From that date, tenants had 14 days to submit
appropriate statements to the landlords, indicating whether they wished to withdraw from the extensions of the
leases, or to continue with the extensions. In aggregate for the past three lockdowns, approximately 52% of EPP’s
tenants who were entitled to withdraw from the extensions (equivalent to 21% of the total EPP tenant base of
1 851 tenants) opted to do so, and 48% of the entitled tenants (19% of the total EPP tenant base) did not withdraw
from the extensions. As a result of the tenants’ election to withdraw from the lease extensions, EPP’s overall
retail WAULT has reduced by approximately 3.8 months to approximately 5 years (by GLA as per September
2021).

TRADING STATEMENT & GUIDANCE

Shareholders are further advised that EPP expects that distributable earnings per share for the six months ended
30 June 2021, will increase to 3.66 euro cents per share, which is approximately 54% (or 1.28 euro cents) higher
than the distributable earnings per share of 2.38 euro cents per share for the six months ended 30 June 2020.

EPP’s operational metrics have been encouraging for the first half of 2021, despite COVID-19 related retail
limitations. The ongoing COVID-19 pandemic requires EPP to proceed with caution and, as a consequence, the
Board deems it prudent to continue to prioritise liquidity by resolving to not declare a dividend at this stage. The
decision on the 2021 dividend will be made when the full year results are approved and will take into
consideration the progress made on asset disposals, refinancing of EPP’s upcoming debt, the stability of the retail
environment and the overall improvements achieved in the capital structure.

Furthermore, the Board believes that the full year distributable earnings per share guidance of between 7 and 7.25
euro cents per share for the year ended 31 December 2021, will be achieved. This is after taking into consideration
the absorption of the impacts of two lockdowns in January and March-April 2021. This guidance is based on the
assumption that until the end of 2021 no significant tenant failures occur and no further COVID-19 lockdowns
impacting EPP’s business are imposed in Poland.

The company will provide detailed information on its operational and financial performance on 15 September
2021, when it publishes its interim financial results for the period ending 30 June 2021.

The financial information contained in this announcement has not been reviewed or reported on by EPP’s
auditors.

10 September 2021


JSE sponsor
Java Capital

Luxembourg Stock Exchange Listing Agent
Harneys Luxembourg


For more information:

Curwin Rittles, Investor Relations, EPP
Mobile: +48 885 982 310
Curwin.rittles@epp-poland.com

Java Capital, JSE Sponsor
Phone: +27 (0)78 456 9999

Harney Westwood & Riegels SARL, Luxembourg Stock Exchange Listing Agent
Phone: +352 27 86 71 02

Singular Systems IR
Michèle Mackey
+27 (0)10 003 0700/+27 (0)82 497 9827
michele@singular.co.za

Date: 10-09-2021 05:15:00
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