HBR Realty Empreendimentos Imobiliários S A : Dados Econômico-Financeiros

(Convenience translation into English from the original previously issued in Portuguese)

HBR REALTY EMPREENDIMENTOS IMOBILIÁRIOS S.A.

Independent auditor's report

Individual and consolidated financial statements As at December 31, 2022

JRS/VHFF/AG/AB/AA/TM/TH/SC

0756i/23

HBR REALTY EMPREENDIMENTOS IMOBILIÁRIOS S.A.

Individual and consolidated financial statements

As at December 31, 2022

Contents

Management's report

Independent auditor's report on the individual and consolidated financial statements

Individual and consolidated statements of financial position

Individual and consolidated statements of income

Individual and consolidated statements of comprehensive income Individual and consolidated statements of changes in equity Individual and consolidated statements of cash flows - Indirect method Individual and consolidated statements of value added

Notes to the individual and consolidated financial statements

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"The information included in this Performance Report is presented in thousands of Brazilian Reais (R$) and all amounts are rounded to the closest thousand, unless otherwise stated. In some circumstances, this can lead to insignificant differences between the sum of the numbers and the subtotal presented in the tables."

PERFORMANCE REPORT FOR 2022

MOGI DAS CRUZES - March 21, 2023 - HBR Realty Empreendimentos Imobiliários S.A. (HBRE3), listed on B3, on January 26, 2021, makes its public presentation to the market, which reports the operating results for the fourth quarter of 2022, in compliance with the provisions of Brazilian Securities and Exchange Commission (CVM) Instruction No. 457 of July 13, 2007, as amended.

The Company's strategy is focused on real estate development of urban properties, distributed across four main business platforms that encompass properties already developed and others in the process of development. These platforms are the following:

• Convenience Centers (ComVem): platform dedicated to the development and administration of convenience centers mainly established in cities with high population and economic density, especially in the cities of São Paulo and extended area of the city of São Paulo.
• Corporate Buildings (HBR 3A): platform dedicated to the development and management of high-quality corporate buildings in premium areas of the city of São Paulo.
• Shopping malls (HBR Malls): platform dedicated to the purchase, development and management of malls, mainly in cities with indicators of economic and growth potential.
• Other assets (HBR Opportunities): this platform gathers a variety of assets, such as lease contracts of the types built to suit, sale leaseback, +Box self-storage units, development and management of hotels and parking lots, among others.

Besides the existing business platforms, the Company operates in the real estate fund market through the platform HBR Reits, offering Real Estate Consulting services. Currently, the Company renders this service to Fundo de Investimento Imobiliário Multi Renda Urbana HBRH11.

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OPERATING PORTFOLIO

The Company reached the end of the period with a portfolio of thirty-nine assets in operation corresponding to 224.479 m2 of gross leasable area (GLA), of which 148,983 m2 belong to the Company.

	Assets in operation		Nr. of		Total GLA (m²)		Own GLA		Own GLA
		assets			(m²)		%
		28	31,993	27,538	86%
		2	17,533	13,037	74%
	p	3	109,295	57,010	52%
		6	65,658	51,398	78%
		39	224,479	148,983	66%

PORTFOLIO UNDER DEVELOPMENT

In addition, as part of its growth strategy, the Company has a relevant portfolio of projects in various stages of development, totaling an additional gross leasable area of 223,124 m², of which 149,535 m² belong to the Company. These projects are expected to come into operation between 2023 and 2027, divided as follows:

	Assets under development		Nr. of		Total GLA (m²)		Own GLA		Own GLA
		assets			(m²)		%
		36	89,258	79,590	89%
		7	82,427	42,149	51%
		21	19,000	9,455	50%
		5	32,439	18,341	57%
		50	223,124	149,535	67%

(*) Projects of expansion of Shopping Malls Mogi 10,000 m2 and Suzano 9,000 m2.

Considering the sum of ventures in operation and development, the total gross leasable area under management is 447,603 m², of which 298,518 m² belong to the Company.

	Total assets		Nr. of		Total GLA (m²)		Own GLA		Own GLA
	(in operation + under development)		assets			(m²)		%
		64	121,251	107,128	88%
		9	99,960	55,186	55%
		3	128,295	66,465	52%
		11	98,097	69,739	71%
		87	447,603	298,518	67%

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OPERATING HIGHLIGHTS

Extension of the COVID-19 pandemic

On March 10, 2020, the Brazilian Securities and Exchange Commission ("CVM") issued CVM/SNC/SEP Circular Letter No. 02/2020, addressing the importance of the possible effects of COVID-19 on the Company's business and the respective impacts on the financial statements, emphasizing that Publicly-Held Companies and their Independent Auditors should carefully consider these impacts and the risks and uncertainties to which they are exposed.

The construction companies hired to work on the Company's ventures have been strictly following the construction schedule, as well as the safety protocols established by health authorities.

Disbursement of financing obtained for these works from financial agents has been occurring normally.

Although it is not yet possible to estimate the duration of the impacts of the COVID-19 outbreak, the Company understands that at the present moment, the pandemic has not been significantly affecting its business.

ECONOMIC AND FINANCIAL PERFORMANCE

GROSS REVENUE

Gross revenue totaled R$ 42,305 in the fourth quarter of 2022, an increase of 24.5%, compared to the same period of the previous year (R$ 159,844 in 2022, with 51.4% growth), mostly due to the increase in revenue from lodgings in the Opportunities platform's hotels and from rental units in the Comvem and Shoppings platforms throughout 2022, as well as the increase in revenue from management fees.

Gross revenue in the respective periods may be broken down as follows:

	4Q22	4Q21		Var %		2022	2021		Var %
		4Q22/4Q21			2022/2021
Rent	35,368	32,450	9.0%		138,803	99,520	39.5%
Management fee	1,467	784	87.1%		5,988	3,503	70.9%
Lodging	4,660	-	-		12,346	-	-
Other revenues	810	734	10.4%		2,707	2,577	5.0%
Gross revenue	42,305	33,968		24.5%		159,844	105,600		51.4%

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