Alstria office REIT : GAAP Financial Statements Q4 2023

2023

FINANCIAL STATEMENTS

GERMAN GAAP

alstria office REIT-AG, Hamburg

FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023

Translation: German version prevails

TABLE OF CONTENTS

1. FINANCIAL STATEMENTS

1. INCOME STATEMENT
2. BALANCE SHEET
3. NOTES TO THE FINANCIAL STATEMENTS

1. RESPONSIBILITY STATEMENT

1. AUDITOR`S REPORT

The Management Report of alstria office REIT-AG has been combined with the Management Report of the alstria Group in accordance with Section 315 para. 5 together with Section 298 para. 2 of the German Commercial Code (Handelsgesetzbuch) and is published in the Annual Report of the alstria Group. The Annual Financial Statements and the Combined Management Report of the alstria Group are published in the German Federal Gazette and the website of the company "www.alstria.de".

I.B. Income Statement alstria office REIT-AG

Income Statement alstria office REIT-AG

January 1 to December 31, 2023 District Court Hamburg HRB 99204

		2023	2022
		EUR	EUR
1.	Revenues	163.997.810,33	156.268.818,52
2.	Increase or decrease in work in progress	-868.402,31	576.781,66
3.	Total operating performance
163.129.408,02	156.845.600,18
4.	Other operating income	27.582.622,35	129.880.412,26
5.	Cost of materials
	Cost of purchased services	-32.357.608,22	-32.075.018,72
6.	Personnel expenses
	a) Wages and salaries	-19.638.096,42	-21.263.556,61
	b) Social security pension and other benefits	-2.573.735,91	-2.481.169,95
	401 k)
		-22.211.832,33	-23.744.726,56
7.	Amortization and depreciation of fixed intangible and tangible assets	-61.570.917,74	-47.304.575,32
8.	Other operating expenses	-42.110.150,22	-42.142.264,83
9.	Invome from investments	18.171,45	0,00
10.	Income from loans	3.490.687,12	3.363.696,32
	(of which from affiliated companies EUR 3,490,687.12;
	previous year EUR 3,364 k)
11.	Other interest and similar income	17.008.440,13	4.046.251,55
12.	Write-down of financial assets	-190.691.169,00	-69.686.277,18
13.	Interest and similar expenses	-59.577.279,56	-48.629.573,96
14.	Result after taxes
-197.289.628,00	30.553.523,74
15.	profit/loss for the year
-197.289.628,00	30.553.523,74
16.	Profit carried forward from previous year	71.443.993,65	303.359.762,75
17.	Transfer from capital surplus	0,00	0,00
18.	Balance sheet loss/profit	-125.845.634,35	333.913.286,49

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I.B. Balance Sheet alstria office REIT-AG

alstria office REIT-AG
Balance sheet as at December 31, 2023
District Court Hamburg HRB 99204
Assets								Equity and liabilities
		31.12.2023	31.12.2022				31.12.2023	31.12.2022
		EUR	EUR			EUR	EUR	EUR
A. Non-current assets			A.	Shareholders' equity
I. Intangible assets				I.	Share capital	178.561.572,00	178.291.272,00
Licenses and similar rights acquired for consideration	519.964,22	389.378,25			(conditional capital EUR 17,479,700.00;
II. Property, plant and equipment					previous year EUR 17,750 k)
1.	Land, property rights and buildings	1.720.080.667,91	1.659.037.235,54
	II.	Capital reserves	81.110.665,94	80.840.365,94
2.	Technical plant	2.979,68	16.481,94		IV.	Balance sheet loss/profit
3.	Other plant, operating and office equipment	551.133,27	594.622,97			(of which unappropriated profits brought forward
4.	Prepayments and construction in progress	123.478.615,60	167.995.870,77			EUR 71,443,993.65; previous year EUR 303,360 k)	-125.845.634,35	333.913.286,49
		1.844.113.396,46	1.827.644.211,22				133.826.603,59	593.044.924,43
III. Financial assets			B.	Provisions
1.	Shares in affiliates	309.248.225,66	532.838.098,93		1.	Other provisions	33.952.816,64	37.515.292,71
2.	Loans to affiliates	75.000.000,00	104.768.807,71
			33.952.816,64	37.515.292,71
3.	Participating interests	0,00	103.105,26	C.	Accounts payable
4.	Other loans	94.432.299,85	94.432.299,85
		478.680.525,51	732.142.311,75		1.	Equity participation	0,00	279.050,00
					2.	Bonds	1.081.897.784,66	1.433.908.940,97
		2.323.313.886,19	2.560.175.901,22
B. Current assets				3.	Bank loans and overdrafts	1.144.828.762,49	901.233.689,49
I. Inventories				4.	Payments received	25.142.383,34	24.681.326,61
Work in progress	22.199.250,25	23.067.652,56		5.	Trade payables	2.573.434,05	1.792.169,35
II. Receivables and other assets				6.	Payables to affiliated companies	138.411,57	160.623,03
1.	Trade receivables	8.903.577,61	3.497.571,31		7.	Other liabilities	54.027.723,58	91.467.210,19
2.	Receivables from affiliated companies	8.013.930,25	158.703.427,83			(of which from taxes EUR 553,953.52k;
3.	Other assets	1.395.223,38	1.269.922,23			previous year EUR 0 k)
		18.312.731,24	163.470.921,37				2.308.608.499,69	2.453.523.009,64
IV. Cash in hand and at banks	105.390.175,19	335.383.106,61	D.	Deferred income	594.948,21	817.461,07
		145.902.156,68	521.921.680,54
C. Prepaid and deferred expenses
7.766.825,26	2.803.106,09
		2.476.982.868,13	3.084.900.687,85				2.476.982.868,13	3.084.900.687,85

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I.C. Notes alstria office REIT-AG

alstria office REIT-AG, Hamburg

I.C. NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM

JANUARY 1 TO DECEMBER 31, 2023

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I.C. Notes altria office REIT-AG

CONTENTS
C. NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM	3
JANUARY 1 TO DECEMBER 31, 2023	3
1.	GENERAL	6
1.1.	BASIC INFORMATION AND APPLIED REGULATIONS	6
1.2.	ACCOUNTING AND VALUATION POLICIES	7
2.	NOTES TO THE BALANCE SHEET	9
2.1.	PROPERTY, PLANT AND EQUIPMENT	9
2.2.	FINANCIAL ASSETS	10
2.3.	INVENTORIES	12
2.4.	RECEIVABLES	12
2.5.	PREPAID AND DEFERRED EXPENSES	12
2.6.	EQUITY	14
2.7.	PROVISIONS	15
2.8.	LIABILITIES	16
3.	NOTES TO THE INCOME STATEMENT	19
3.1.	REVENUES	FEHLER! TEXTMARKE NICHT DEFINIERT.
3.2.	OTHER OPERATING INCOME	20
3.3.	COST OF MATERIALS	21
3.4.	PERSONNEL EXPENSES	21
3.5.	OTHER OPERATING EXPENSES	22
3.6.	INCOME FROM LOANS FROM FINANCIAL ASSETS	22
3.7.	OTHER INTEREST AND SIMILAR INCOME	22
3.8.	INTEREST AND SIMILAR EXPENSES	23
3.9.	INCOME TAXES	23
4.	OTHER NOTES	23
4.1.	SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD	23
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I.C. Notes alstria office REIT-AG

4.2.	COMPENSATION OF MANAGEMENT BOARD AND SUPERVISORY BOARD	24
4.3.	AUDITOR'S FEES	24
4.4.	SHARES	25
4.5.	DIVIDEND	25
4.6.	SUPERVISORY BOARD	25
4.7.	MANAGEMENT BOARD	27
4.8.	EMPLOYEES	27
4.9.	GROUP AFFILIATIONS	30

5. DISCLOSURES PURSUANT TO WERTPAPIERHANDELSGESETZ [GERMAN SECURITIES

	TRADING ACT] AND EUROPEAN MARKET ABUSE REGULATION [MAR]	30
5.1.	DIRECTORS' DEALINGS	30
5.2.	VOTING RIGHT NOTIFICATIONS	30
6.	DECLARATION OF COMPLIANCE PURSUANT TO AKTG SECTION 161	31
Schedule of fixed assets……………………………………………………………………………………………………… ………..31

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I.C. Notes altria office REIT-AG

1. GENERAL

1.1. Basic information and applied regulations

alstria office REIT-AG (hereinafter also referred to as 'alstria' or 'Company') was incorporated on January 20, 2006, as a German limited liability company under the name Verwaltung Alstria Erste Hamburgische Grundbesitz GmbH. On October 5, 2006, the shareholders resolved the conversion of the Company into a German stock corporation, and the Company's name was changed to Alstria Office AG. On November 17, 2006, the conversion and the change of name were entered in the relevant commercial register and thus they became effective.

In 2007 the Company was converted into a German Real Estate Investment Trust (German REIT or G- REIT). The Company was registered as a REIT corporation (hereinafter also referred to as 'REIT-AG') in the commercial register on October 11, 2007; the company's name was changed to alstria office REIT-AG.

Alexandrite Lake Lux Holdings S.à r.l., Luxembourg, Grand Duchy of Luxembourg, (hereinafter "Alexandrite" or "Bidder") published its decision on December 13, 2021 to offer the shareholders of alstria office REIT-AG to acquire their bearer shares in alstria office REIT-AG by way of a voluntary public takeover bid. By the end of the offer period on February 3, 2022, the total number of alstria shares to be taken into account for the minimum acceptance threshold was exceeded and amounted to 91.63% of the share capital. The total number of alstria shares to be considered for the minimum acceptance threshold was reached for the first time on January 11, 2022. This corresponded to a share of 50.50% of the share capital. The company was thus to be included in the consolidated financial statements of Alexandrite's ultimate parent company, Brookfield Asset Management Inc., Toronto, Canada (hereinafter "Brookfield"), for the first time on January 11, 2022. Brookfield Asset Management Inc. prepares the consolidated financial statements for the largest and smallest group of companies in the Brookfield Group. Brookfield's consolidated financial statements are published on the company's website at www.brookfield.com. As of the balance sheet date, December 31, 2023, Brookfield held 95.37 % of the shares in the company, so that control on alstria office REIT-AG can be assumed. As a result, alstria office REIT-AG is accounted for as subsidiary in Brookfield's consolidated financial statements as of the reporting date.

REIT-AGs are fully exempt from German corporate income and trade taxes. Therefore, the corporate income and trade tax exemption for alstria office REIT-AG was applicable as of the beginning of the Company's 2007 financial year.

The Company is a real estate company according to the definition of the G-REIT Act. Pursuant to Section 2 of its Articles of Association, the Company's objective is the acquisition, management, and sale of owned real estate property as well as the holding of participations in enterprises that acquire,

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I.C. Notes alstria office REIT-AG

manage, operate and sell owned property. All the aforementioned objectives are subject to the conditions of the G-REIT Act legislation.

The Company is registered in the commercial register at the local court of Hamburg under HRB No. 99204. The Company's registered office is Steinstraße 7, 20095 Hamburg, Germany.

The financial year ends on December 31 of each calendar year.

These financial statements were prepared in accordance with Sections 242 et seq. and Sections 264 et seq. of the German Commercial Code (HGB), as well as in accordance with the relevant provisions of the German Stock Corporation Act (AktG). The Company is subject to the requirements for large corporations.

The income statement was prepared according to the total cost accounting method. A line item for 'total operating performance' was added to the income statement to present a subtotal. Property tax expenses are stated under operating cost of purchased services. Pro tax that is not attributable to tenants is shown under other operating charges.

These financial statements were prepared for the period from January 1 to December 31, 2023.

The management report was combined with the management report of alstria consolidated financial statements in accordance with Section 315 para. 5 in conjunction with Section 298 para. 2 German Commercial Code (HGB) and will be published together with the consolidated financial statements.

1.2. Accounting and valuation policies

The following accounting and valuation policies were used to prepare the financial statements:

1.2.1 INTANGIBLE ASSETS

Purchased intangible assets are capitalized at acquisition cost, and if they have a limited useful life, then they are systematically amortized by respective amounts. The useful life is 3 to 23 years.

1.2.2 LAND, PROPERTY RIGHTS AND BUILDINGS

Land, property rights and buildings are capitalized at acquisition or production cost and are reduced by systematic depreciation rates according to their useful lives. The useful life is 33.3 to 50 years. For land and buildings, the allocation of acquisition costs is made based on an independent expert's opinion. Extraordinary depreciation to the lower fair value is undertaken in the case of the permanent impairment of a building's value. This is the case if the current fair value as determined by an expert is lower than the carrying amount after five years of systematic depreciation. This is the case if the carrying amount after five years would also be higher than the fair value determined by the expert. At the beginning of the reporting period, the market value for properties with planned future investments is adjusted as follows: If investments are planned in the next five years, the added value

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