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"value": "* Out of the total Net rental and related income for 2021, \u20ac2.5 million relates to the two Serbian properties (disposed of on 12 July 2021). **EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses) ^Subheadings \u201cNet \ufb01nance costs\u201d and \u201cOther items\u201d shown in the Statement of comprehensive income at 31 December 2021 were removed in this Statement of comprehensive income, to ease understanding. *At 31 December 2021, \u201cLease liabilities\u201d (with a carrying amount of \u20ac33,612 thousand) were presented in line \u201cOther long-term liabilities\u201d. At 31 December 2022, these are presented on separate lines within \"Non-current liabilities\" (long-term portion) and \u201cCurrent liabilities\u201d (short-term portion), with corresponding comparatives re-classi\ufb01ed accordingly, to enhance presentation. ** At 31 December 2021, \u201cProvisions for litigations\u201d (with a carrying amount of \u20ac37,304 thousand) were presented in line \u201cTrade and other payables\u201d. At 31 December 2022, these are presented on a separate line, with corresponding comparative re-classi\ufb01ed accordingly, to enhance presentation. ***EPRA Net Reinstatement Value per share (non-IFRS measure) is Net Asset Value per share adjusted for the e\ufb00ect of non-monetary balance sheet items, such as deferred tax, goodwill and interest rate derivatives. *LTSIP = debt free Long-Term Share Incentive Plan with a vesting component. ^ Share premium movement \u2013 In June 2021, the Group transferred \u20ac1,500,000 thousand from share premium to accumulated pro\ufb01t. After a thorough reassessment, the Company decided to maintain the reserves as they were accounted for previously to the transfer from June, and thus, unwound the respective transfer in December 2021. ^^ During 2022, \u20ac350,000 thousand were transferred from share premium to accumulated pro\ufb01t, to ensure positive retained earnings at stand-alone parent Company level. 1. GENERAL NEPI Rockcastle N.V. (\u201cthe Company\u201d, \u201cNEPI Rockcastle\u201d, \u201cthe Group\u201d) is a public limited company domiciled in the Netherlands, having its registered o\ufb03ce at Claude Debussylaan 7-29, 1082 MC Amsterdam, with registration number at the Dutch Chamber of Commerce 87488329. The Company\u2019s shares are listed on the Main Board of the Johannesburg Stock Exchange Limited (\u201cJSE\u201d), Euronext Amsterdam and A2X. NEPI Rockcastle is the premier owner and operator of shopping centres in Central and Eastern Europe (\u201cCEE\u201d). The Group bene\ufb01ts from a highly-skilled internal management team which combines asset management, development, investment, leasing and \ufb01nancial expertise. The Company was incorporated in the Isle of Man on 1 December 2016. On 29 November 2021, the Board of Directors (the \u201cBoard\u201d) approved the migration of NEPI Rockcastle from the Isle of Man to the Netherlands, via an initial migration to Luxembourg (together, the \u201cMigration\u201d). Structured in this way, the migration of the Company to the Netherlands ensured the corporate continuity of NEPI Rockcastle and the trading in Group shares, which remain available to be traded on the JSE, Euronext Amsterdam and A2X. On 10 May 2022, the Migration was approved by the Shareholders of the Company. As a result, following ful\ufb01lment of certain conditions precedent, the Group has, with e\ufb00ect from 6 September 2022, established its registered o\ufb03ce and place of e\ufb00ective management and central administration in the Netherlands as a public limited liability company.The Group\u2019s Consolidated Financial Statements and the Company\u2019s Separate Financial Statements are collectively referred to as the Financial Statements. The Financial Statements for the year ended 31 December 2022 were approved by the Board of Directors on 21 March 2023 and authorised for publication on 22 March 2023. 2. BASIS OF PREPARATION a. Statement of compliance The Consolidated Financial Statements have been consistently prepared in accordance with International Financial Reporting Standards (\u2018IFRS\u2019) as issued by the International Accounting Standards Board (\u2018IASB\u2019), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings Requirements, International Financial Reporting Standards (\u2018IFRS\u2019) as adopted by the European Union and with Title 9 of Book 2 of the Dutch Civil Code. They comprise the Company and its subsidiaries, as detailed in \u201cBasis of consolidation\u201d in Note 4.2. The signi\ufb01cant accounting policies applied in the preparation of these Consolidated Financial Statements are set out below in Note 4 and are consistent with those applied for the preparation of the annual Consolidated Financial Statements as at 31 December 2021, except for the new mandatory standards and interpretations described below: \u2022 IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. \u2022 IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company recognizes such sales proceeds and related cost in pro\ufb01t or loss. \u2022 IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost of ful\ufb01lling a contract for the purpose of assessing whether a contract is onerous. \u2022 Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. \u2022 IFRS 16 Leases-Covid-19 Related Rent Concessions beyond 30 June 2021 (Amendment) The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with earlier application permitted, including in \ufb01nancial statements not yet authorized for issue at the date the amendment is issued. In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees from applying the IFRS 16 guidance on lease modi\ufb01cations to rent concessions arising as a direct consequence of the Covid-19 pandemic. Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments a\ufb00ects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met. These standards, amendments and interpretations did not have a signi\ufb01cant impact on the Consolidated Financial Statements as at 31 December 2022. Management has prepared the \ufb01nancial statements on a going concern basis. Having considered the potential impact of the con\ufb02ict in Ukraine and the overall macroeconomic environment on the Company\u2019s and the wider NEPI Rockcastle Group revenues, pro\ufb01ts, cash \ufb02ows, operations, liquidity position and debt facilities, management concluded that despite the market events generated by these circumstances during 2022 and subsequent to the year-end, there are no material uncertainties relating to the Group\u2019s ability to continue as a going concern. In preparing the Consolidated Financial Statements, management has considered the impact of climate change. These considerations did not have a material impact on the Financial Statements, including \ufb01nancial reporting judgements and estimates. NEPI Rockcastle is aware that climate change will impact both its own operations as well as those of its value chain partners. With increasing greenhouse gases discharge into the atmosphere, the climate changes. This causes climate shocks and stressors that buildings have to withstand. The Group\u2019s strategy is based on adopting climate-resilient activities and on reducing the carbon emissions resulting from its operations. The Group assessed and regularly monitors climate change risks, both the physical and the transitional ones. The Group\u2019s commitment to sustainability is illustrated in its high share of BREEAM certi\ufb01ed buildings, in the increased use of energy from certi\ufb01ed renewable sources across the Group, with year-on-year remarkable progress and in the continuation of energy e\ufb03ciency initiatives. b. Basis of measurement The Consolidated Financial Statements are prepared on the historical cost basis, except for investment property in use, land for investment property under development, and interest rate derivatives, which are measured at fair value. c. Use of estimates and judgements The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgements, estimates and assumptions that a\ufb00ect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimates and associated assumptions are based on experience and other factors believed to be reasonable under the circumstances and enable judgements to be made about the carrying values of assets and liabilities not readily apparent from other sources. Actual results may di\ufb00er from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised and future periods if applicable. d. Presentation The Consolidated Financial Statements are presented in thousands of Euros (\u201c\u20ac\u2019000s\u201d), rounded o\ufb00 to the nearest thousand, unless stated otherwise. 3. SIGNIFICANT EVENTS IN THE YEAR: POST COVID-19 RECOVERY AND MILITARY CONFLICT IN UKRAINE In 2022, the Group\u2019s performance was limitedly impacted by the Covid-19 restrictions during the \ufb01rst quarter of the year. The overall macroeconomic context has evolved rapidly, with the military con\ufb02ict in Ukraine, increase in energy costs and high in\ufb02ation levels, leading Central Banks to increase interest rates. Overview of restrictions in the period During the \ufb01rst quarter of 2022, throughout Central and Eastern Europe (\u201cCEE\u201d), all remaining Covid-19 restrictions were lifted and 100% of NEPI Rockcastle\u2019s gross lettable area (\u201cGLA\u201d) was operational since the end of March. As a result of the Covid-19 restrictions being lifted, there have been insigni\ufb01cant concessions granted in the period (2021: \u20ac40.8 million). Moreover, the Group recognised a net positive e\ufb00ect of \u20ac2.1 million from the reversal of the expected partial forgiveness of receivables in relation to tenants accrued for in 2021 and not subsequently granted. This was the result of negotiation with the tenants and their strong performance from Q4 2021 onwards. Tenant performance translated into an increase in Net Operating Income (\u201cNOI\u201d) of 17% in 2022 compared to 2021. Excluding the impact of the disposal of two Serbian properties (completed in July 2021), NOI was 18% in 2022 vs 2021. Also, the fair value of the Group properties increased by 142 million in 2022. The military con\ufb02ict in Ukraine The military con\ufb02ict in Ukraine, commencing in February 2022, did not directly impact Group operations. No signi\ufb01cant tenants were subject to sanctions, and the Group owns no assets in Ukraine or Russia. While some international tenants have assets in these countries, there are no indications of any serious \ufb01nancial di\ufb03culties. Other e\ufb00ects of the war in Ukraine, such as in\ufb02ationary pressures and disruptions to supply chains, particularly for energy, can have a signi\ufb01cant impact on the growth prospects of the economies of the countries in which the Group operates and particularly on consumption, putting pressure on the retail sector. Interest rates increased signi\ufb01cantly with higher level of in\ufb02ation exacerbated by the consequences of the war in Ukraine and Central Banks\u2019 monetary policy tightening, which also lead to increase in valuation of interest rate hedges. Management monitors the situation rigorously and updates investors regarding material developments. 4. SIGNIFICANT ACCOUNTING POLICIES The signi\ufb01cant accounting policies set out below have been consistently applied to all periods presented. 4.1 Foreign currency translation a. Functional and presentation currency The Consolidated Financial Statements are presented in Euro (\u201c\u20ac\u201d, \u201cEUR\u201d) thousands unless otherwise stated, which is NEPI Rockcastle\u2019s functional and presentation currency. The functional currency is determined by the relevant, primary economic environment of each entity. The other determining factor is the currency in which most cash \ufb02ows, goods and services are denominated and settled in the respective country. When the functional currency cannot be clearly identi\ufb01ed, International Accounting Standard (\u201cIAS\u201d) 21 \u201cThe E\ufb00ects of Changes in Foreign Exchange Rates\u201d allows management to use judgement to determine the functional currency that most faithfully represents the economic e\ufb00ects of the underlying transactions, events and conditions. Any change in the functional currency must be made prospectively in accordance with IAS 21. b. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in pro\ufb01t or loss. 4.2 Basis of consolidation Subsidiaries The Consolidated Financial Statements incorporate the assets, liabilities, operating results and cash \ufb02ows of the Company and its subsidiaries. Subsidiaries are all entities controlled by the Company. The Company controls an entity when it is exposed or has rights, directly or indirectly, to variable returns from its involvement with the entity and has the ability to a\ufb00ect those returns through its power over it. The \ufb01nancial statements of subsidiaries are included in the Consolidated Financial Statements from the date the control commences until the date the control ceases. The acquisition method is used to account for the business combinations. Identi\ufb01able acquired assets and liabilities, and contingent liabilities, assumed in a business combination are measured at their fair values on the date of acquisition. The consideration transferred for the acquired entity is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred, or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but excluding acquisition related costs, such as advisory, legal, valuation and similar professional services. Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. These Consolidated Financial Statements include the Company and the fully consolidated subsidiaries, as set out below (as at 31 December 2021 the Consolidated Financial Statements included jointly controlled entity consolidated using equity method): No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. 4.3 Investment property in use Investment property is held to earn rental income, capital appreciation or both. The cost of investment property acquired by any other means than a business combination consists of the purchase price and directly attributable expenditure. Subsequent expenditure relating to investment property is capitalised when future economic bene\ufb01ts from the use of the asset are probable and the cost of the item can be measured reliably. All other subsequent expenditure is recognised as an expense during the period it is incurred. After initial recognition, investment property in use is measured at fair value. Fair value is determined semi-annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are based on the open market value, using the discounted cash \ufb02ow method. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income for the period during which they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. Lease incentives, such as rent-free periods, discounts during the lease or payment of \ufb01t-out works for the bene\ufb01t of the tenants, are part of value of the investment property and are straight-lined over the lease term. The lease term corresponds to the contractual duration for the majority of the leases, except for the anchor tenants, for which the lease duration is assessed by the Group based on past experience and taking into account factors such as: GLA of the property where the anchor tenant is located, catchment area, dominance/competition in the catchment area or purchasing power. Gains or losses on disposal of investment property are calculated as proceeds less carrying amount and recognized in the Statement of comprehensive income. 4.4 Investment property under development Property that is being constructed or developed for future use as investment property is classi\ufb01ed as investment property under development and carried at cost until construction or development is complete, or its fair value can be reliably determined. The land on which investment property is constructed or developed is carried at fair value, which is determined semi- annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are performed using the market comparable approach or residual approach. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income during the period when they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. 4.5 Assets classi\ufb01ed as held for sale An investment property or a group of assets including an investment property (disposal group) are classi\ufb01ed as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. For this to be the case: \u2022 the assets must be available for immediate sale in their present condition, \u2022 the Group must be committed to sell, \u2022 there must be a plan to locate a buyer, and \u2022 it is highly probable that a sale will be completed within one year from the date of classi\ufb01cation. On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. An investment property or disposal group classi\ufb01ed as held for sale is presented separately in the Statement of \ufb01nancial position as assets or liabilities classi\ufb01ed as held for sale. Discontinued operations are disclosed as a single amount in the Statement of comprehensive income, comprising the total of: (i) the post-tax pro\ufb01t or loss of discontinued operations, and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. 4.6 Goodwill Goodwill arises upon business combination and represents the excess of the consideration transferred over the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree. When the consideration transferred is lower than the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree, the gain on acquisition is recognised directly in the Statement of comprehensive income. Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.8 Loans to participants in the Share Purchase Scheme (as de\ufb01ned in Note 4.18) Loans to participants in the Share Purchase Scheme incentive plan are initially recognised at the amount granted, carried at amortized cost and impaired based on expected credit losses (\u201cECL\u201d) model (Note 4.18). 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 4.10 Financial assets 4.10.1 Classi\ufb01cation In line with IFRS 9 \u201cFinancial instruments\u201d, the Group classi\ufb01es its \ufb01nancial assets in the following measurement categories: \u2022 those to be measured subsequently at fair value through pro\ufb01t or loss and \u2022 those to be measured at amortised cost. The classi\ufb01cation and subsequent measurement of debt instruments \ufb01nancial assets depends on: (i) the Group\u2019s business model for managing the related assets portfolio and (ii) the cash \ufb02ow characteristics of the asset. For \ufb01nancial assets measured at fair value through pro\ufb01t or loss (\u201cFVTPL\u201d), gains and losses are recorded in pro\ufb01t or loss. 4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.10.5 Reclassi\ufb01cation Financial instruments are reclassi\ufb01ed only when the business model for managing those assets changes. The reclassi\ufb01cation has a prospective e\ufb00ect and takes place from the start of the \ufb01rst reporting period following the change. 4.10.6 Write-o\ufb00 Financial assets are written-o\ufb00, in whole or in part, when the Group has exhausted all practical recovery e\ufb00orts and has concluded that there is no reasonable expectation of recovery. The write-o\ufb00 represents a derecognition event. Indicators that there is no reasonable expectation of recovery include, among others, insolvency or signi\ufb01cant \ufb01nancial di\ufb03culties of the tenant, default on payment terms and vacation or abandonment of the leased premises. Impaired trade and other receivables are derecognised when all reasonable e\ufb00orts to collect the amounts outstanding have failed and they are assessed as uncollectable. 4.10.7 Modi\ufb01cation The Group sometimes renegotiates or otherwise modi\ufb01es the contractual terms of the \ufb01nancial assets. The Group assesses whether the modi\ufb01cation of contractual cash \ufb02ows is substantial considering, among other, the following factors: new contractual terms that substantially a\ufb00ect the risk pro\ufb01le of the asset, signi\ufb01cant change in interest rate, change in the currency denomination. If the modi\ufb01ed terms are substantially di\ufb00erent, the rights to cash \ufb02ows from the original asset expire and the Group derecognises the original \ufb01nancial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a signi\ufb01cant increase in credit risk has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any di\ufb00erence between the carrying amount of the original asset derecognised and fair value of the new substantially modi\ufb01ed asset is recognised in pro\ufb01t or loss, unless the substance of the di\ufb00erence is attributed to a capital transaction with owners. In a situation where the renegotiation was driven by \ufb01nancial di\ufb03culties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash \ufb02ows to assess whether the risks and rewards of the asset are substantially di\ufb00erent as a result of the contractual modi\ufb01cation. If the risks and rewards do not change, the modi\ufb01ed asset is not substantially di\ufb00erent from the original asset and the modi\ufb01cation does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modi\ufb01ed contractual cash \ufb02ows by the original e\ufb00ective interest rate and recognises a modi\ufb01cation gain or loss in pro\ufb01t or loss. Speci\ufb01c valuation techniques used to value \ufb01nancial assets include: \u2022 The use of quoted market prices or dealer quotes for similar instruments (for \ufb01nancial investments at fair value through pro\ufb01t or loss and \ufb01nancial assets/liabilities at fair value through pro\ufb01t or loss); \u2022 Discounted cash \ufb02ow analysis (for the remaining \ufb01nancial instruments). The hierarchy for the fair value of \ufb01nancial assets and liabilities is as follows: \u2022 Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; \u2022 Level 2: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is directly or indirectly observable, and \u2022 Level 3: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is unobservable. 4.11 Financial liabilities \u2013 measurement categories Financial liabilities are initially recognised at fair value and classi\ufb01ed and subsequently measured at amortised cost, except for \ufb01nancial liabilities at FVTPL: this classi\ufb01cation is applied to interest rate derivatives and other \ufb01nancial liabilities designated as such at initial recognition. 4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 4.13 O\ufb00setting \ufb01nancial instruments Financial assets and \ufb01nancial liabilities are o\ufb00set and the net amount reported in the Statement of \ufb01nancial position when the Group has a legally enforceable right to set o\ufb00 the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 4.14 Cash and cash equivalents Cash and cash equivalents include cash balances, cash deposits and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni\ufb01cant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash \ufb02ows and those cash \ufb02ows represent solely payments of principal and interest (SPPI), and (ii) they are not designated at FVTPL. 4.15 Trade receivables Trade receivables are amounts due from customers for rental and service charge income from tenants in the ordinary course of business. If collection is expected in one year or less, they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value, generally at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash \ufb02ows and therefore measures them subsequently at amortised cost using the e\ufb00ective interest method. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 4.16 Inventory property Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value (\u201cNRV\u201d). Principally, this is residential property that the Group develops and intends to sell on completion of development. The commencement of development with a plan or a prior agreement to sell represents a change in use and accordingly the project is transferred from investment property to inventory property. Costs incurred in inventory property include: \u2022 freehold and leasehold rights for land \u2022 amounts paid to contractors for development \u2022 planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, development overheads and other related costs. NRV is the estimated selling price in the ordinary course of business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale. When an inventory property is sold, the carrying amount of the property is recognised as an expense in the period in which the related revenue is recognised. The carrying amount of inventory property recognised in pro\ufb01t or loss is determined with reference to the directly attributable costs incurred on the property sold and an allocation of any other related costs based on the relative size of the property sold. 4.17 Share capital and share premium Ordinary shares are classi\ufb01ed as equity. Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. The consideration paid, including any directly attributable incremental costs (net of income taxes for the purchases of the Company\u2019s equity instruments by any of the Group\u2019s subsidiaries, as a result of a share buy-back or for a share- based incentive plan) is presented within \u201cOther reserves\u201d, until the shares are cancelled or reissued. Where such ordinary shares are cancelled, their nominal value is debited to Share capital, with the corresponding di\ufb00erence up to their purchase price (including any attributable incremental cost, net of taxes) debited from Share premium. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax e\ufb00ects, is included in equity attributable to the owners of the Group. Usually, shares are purchased for the debt-free Long-Term Share Incentive Plan (Note 4.18 (b)). 4.18 Share-based payments To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. b. Debt free Long-Term Share Incentive Plan with a vesting component (\u201cLTSIP\u201d) This program was put in place after the 2017 merger of the former groups NEPI and Rockcastle. Under this incentive plan, shares may be issued by the Group to executive directors and other key personnel for no cash consideration. Awards under this plan are at the discretion of the Board of Directors and are based on the performance of the Group and the employees. The costs related to the LTSIP are measured based on the fair value of the shares at the grant date and are recognized over the vesting period. The costs are presented as part of the Administrative expenses in the Statement of comprehensive income and within Other reserves in the Statement of changes in equity. 4.19 Accumulated pro\ufb01t The balance on the Statement of comprehensive income is transferred to accumulated pro\ufb01t at the end of each \ufb01nancial period. Distributions paid in cash are deducted from accumulated pro\ufb01t. Distributions for which shareholders elected to receive a return of capital are accounted for as an issue of share capital with a corresponding deduction from the share premium account. 4.20 Provisions Provisions for liabilities are recognised when the Group has a present legal or constructive obligation as a result of past events, when it is probable that an out\ufb02ow of resources embodying economic bene\ufb01ts will be required to settle the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the reporting date. Where the e\ufb00ect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. Provisions are reassessed at each reporting date and are included in the \ufb01nancial statements at their net present values using discount rates appropriate to the Group in the economic environment at each reporting date. 4.21 Revenue Revenue is recognised at the fair value of the consideration received or receivable. Revenue comprises rental and related income and recovery of expenses, excluding VAT. Rental income Rental income receivable from operating leases is recognised on a straight-line basis over the duration of the lease, except for variable lease payments which are recognized when they arise. Service charges income from tenants Revenue from service and property management charges is recognised in the accounting period in which control of the services are passed to the customer, which is when the service is rendered. For certain service contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services. As speci\ufb01ed in the lease agreements, the Group has the primary responsibility for providing services to tenants (electricity, water and gas utilities, interior and exterior cleaning, security, maintenance, repairs, etc). The Group has determined that these services constitute distinct non-lease components (transferred separately from the right to use the underlying asset) and are within the scope of IFRS 15. The Group allocates the consideration in the contract to the separate lease and revenue (non-lease) components on a relative stand-alone selling price basis. In respect of the revenue component, these services represent a series of daily services that are individually satis\ufb01ed over time because the tenants simultaneously receive and consume the bene\ufb01ts provided by the Group. The Group applies the time elapsed method to measure progress. The Group negotiates directly with the suppliers all contracts for services provided to tenants. These contracts are concluded between the Group subsidiaries which own the properties and the direct supplier. As the Group sometimes uses the same providers for services across most of its portfolio, it can negotiate better prices through the economies of scale. The Group is considered principal in these transactions, in terms of the IFRS 15 requirements. The Group negotiates and pays all expenses incurred by the tenants and then re-invoices these costs to them as de\ufb01ned in the contractual clauses included in the lease agreements. A \ufb02at fee is charged monthly during the year. This fee is estimated based on the previous year\u2019s actual costs, with an annual service charge reconciliation performed based on current year\u2019s actual costs incurred by the Group. For contracts terminated during the year, the Group estimates the service charge to be collected based on the current budget and last year\u2019s actual costs. Covid-19 pandemic discounts Reduction of gross rental income Since the beginning of the pandemic, the Polish Government imposed a rent-free period for tenants, including service charge and marketing costs, during the state of emergency/lockdowns. This relief, which was legally enforced and implemented without changes to the lease contracts with tenants, has been recognised in the Statement of comprehensive income, as a reduction of Gross rental income and Service charge income and as a decrease of Trade and other receivables, in the Consolidated Statement of \ufb01nancial position. In some instances, the Group agreed to variable discounts contingent upon tenants\u2019 performance falling below a certain threshold, which has been recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income (negative variable rent). Partial forgiveness of receivables In the context of trading restrictions, the Group granted voluntary rental concessions during lockdowns periods, and/ or immediately following a lockdown. For the period up to the signing of lease modi\ufb01cations, the receivables already accrued in accordance with the in-force lease agreements have been partially written-o\ufb00 in accordance with the signed addendums, and therefore their \ufb01nancial impact was recognised immediately and not straight-lined over the new lease term. As such, tenant concessions granted before the signing of lease modi\ufb01cations were fully accounted for in the Consolidated Statement of comprehensive income as \u201cPartial forgiveness of receivables (Covid-19 Forgiveness)\u201d, and \u201cTrade and other receivables\u201d in the Consolidated Statement of \ufb01nancial position, in accordance with IFRS 9 \u201cFinancial Instruments\u201d (in relation to impairment of receivables). The accounting treatment is in accordance with IFRS 16, which allows rental income to be recognised even if recoverability is uncertain. Contractually agreed and signed modi\ufb01cations subject to straight-lining from the e\ufb00ective date of the modi\ufb01cation Contractually agreed and signed concessions granted to, and obtained from, tenants are treated according to IFRS 16 \u201cLeases\u201d. IFRS 16 de\ufb01nes \u201clease modi\ufb01cation\u201d as a change in scope, or consideration, of the lease, not part of the original terms and conditions, such as rent discounts, lease extensions, increase in variable rent (overage/turnover), introduction of break options, etc. Lease modi\ufb01cations are recognised prospectively over the new lease term and accounted for by the Group from the date the modi\ufb01cation is contractually agreed and signed by both parties. Agreed lease modi\ufb01cations are recognised as lease incentives from the date the modi\ufb01cation was signed. Such modi\ufb01cations are straight-lined over the new lease term and recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income. 4.22 Property operating and administrative expenses Property operating expenses and administrative expenses are recognised on an accrual basis. 4.23 Earnings distribution A distribution is recorded as a liability and deducted from equity in the period in which it is declared and approved. Any distribution declared after the reporting period and before the \ufb01nancial statements are authorised for issue is disclosed in Note 37. 4.24 Taxation Taxation on the pro\ufb01t or loss for the year comprises current and deferred tax. Current income tax and liabilities are measured at the amount expected to be recovered from, or paid to, taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date. Current income tax relating to items recognised directly in equity is recognised directly in equity and not in the Statement of comprehensive income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax is determined using the liability method and is based on temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial reporting purposes and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the date of the Statement of \ufb01nancial position, which are expected to apply to the period when the temporary di\ufb00erences will reverse or the tax loss carried forward will be utilised. The following temporary di\ufb00erences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that a\ufb00ect neither accounting nor taxable pro\ufb01t, and di\ufb00erences relating to investments in subsidiaries that are unlikely to reverse in the foreseeable future. A deferred tax asset is recognised based on the assumption that it is probable that future taxable pro\ufb01ts will be available against which it can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax bene\ufb01t will be realised. The current tax expense incurred by the Group re\ufb02ects tax accrued in the subsidiaries of the Group located in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Malta, Mauritius, Poland, Romania, Serbia, Slovakia and the Netherlands. Output Value Added Tax (\u201cVAT\u201d) related to sales is payable to tax authorities on either the collection of receivables from customers or the delivery of services to customers depending on which occurs \ufb01rst. Input VAT is generally recoverable against output VAT upon receipt of the invoice. The tax authorities in individual countries permit the settlement of VAT on a net basis. VAT relating to sales and purchases is recognised in the Statement of \ufb01nancial position on a net basis and is disclosed separately as an asset or liability, as the case may be. Where provision has been made for impairment of receivables, the loss is recorded for the gross amount of the debt, including VAT. 4.25 Segment reporting Management decisions and consequent allocation of resources are based on individual property level reports, which are analysed in detail. Management has a hands-on approach and is involved in day-to-day activities. Regular management meetings are held at least monthly for each property, where the senior management of the Group and each property manager analyse the \ufb01nancial results, decide whether any repairs or improvements are necessary, review rent collection issues and allocate resources to resolve any delays with tenants and review maintenance plans, vacancies and the status of any contract negotiations, as well as other operational matters. The results of these discussions ensure management decisions are speci\ufb01c to each of the properties. The Segmental Reporting in Note 37 summarises the results recorded by the properties held by the Group. The properties can be classi\ufb01ed as retail, o\ufb03ce, residential or industrial properties, depending on industry practice. The Group\u2019s Chief Operating Decision Makers (\u201cCODM\u201d) are the executive directors, and they take decisions based on detailed reports. These are prepared regularly and are presented to the Board of Directors, which approves the results and gives guidance on the subsequent strategy to be undertaken. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated there on a reasonable basis. Unallocated items comprise mainly investments (other than investment property) and related revenue, corporate assets and head o\ufb03ce expenses. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill. Financial information in respect of investment property is provided to the Board of Directors: net rentals (including rental income, service charge income and property operating expenses) and valuation gains and losses. Individual properties are aggregated into segments with similar economic characteristics. Consequently, the Group is considered to have \ufb01ve reportable operating segments: \u2022 Retail segment: acquires, develops and leases retail properties in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia and Slovakia; \u2022 O\ufb03ce segment: acquires and leases o\ufb03ce properties in Bulgaria and Slovakia; \u2022 Residential segment: develops and sales on completion, residential properties in Romania; \u2022 Industrial segment: acquires and leases industrial facilities in Romania, and \u2022 Corporate segment: head o\ufb03ce, administrative o\ufb03ces, Group and \ufb01nancing expenses. Group entities have been aggregated into \ufb01ve reportable segments (retail, o\ufb03ce, residential, industrial and corporate) as each of these segments have speci\ufb01c revenue streams, di\ufb00erent operational reporting cycles across the Group\u2019s portfolio, separate operational teams including technical, leasing, property and facility management. The Group also reports by geographic segments: Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia. There is also a Corporate segment which includes entities located in Malta and the Netherlands. In addition, the Group\u2019s CODM closely follow changes in distributable earnings to its shareholders as a measure of pro\ufb01tability and as a result of successful implementation of the Group\u2019s strategy. Distributable earnings per share is calculated in terms of the SA REIT Association\u2019s Best Practice Recommendations Second Edition. 4.26 Earnings per share The Group presents basic and diluted earnings per share. Basic and diluted earnings/(loss) per share are calculated by dividing annual pro\ufb01t/(loss) for the year attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year. Diluted earnings/(loss) per share are calculated by dividing the pro\ufb01t/(loss) attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. 4.27 Investment property acquisitions and business combinations The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination where an integrated set of activities and assets, including property, is acquired. More speci\ufb01cally the following criteria, which indicate an acquisition of a business, are considered: the number of properties acquired, the extent to which strategic management processes and operation processes are acquired and the complexity of the processes acquired. In line with amended IFRS 3 since 1 January 2020 the Group may also apply optional concentration test. Business combinations are accounted for using the acquisition method. The acquisition is recognised at the aggregate amount of the consideration transferred, measured at fair value on the date of acquisition and the amount of any non- controlling interest in the acquired entity. If the fair value of net assets acquired is lower, the di\ufb00erence is recorded as goodwill. If the consideration is lower, the di\ufb00erence is recognised directly in the Statement of comprehensive income. When the acquisition of subsidiaries does not represent a business combination, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax is recognised. For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. If the business combination is achieved in stages, the previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in pro\ufb01t or loss. Any contingent consideration to be transferred by the acquirer will be recognised at fair value on the date of acquisition. Subsequent changes to the fair value of any contingent consideration classi\ufb01ed as a liability will be recognised in the Statement of comprehensive income. Acquisition accounting is \ufb01nalised when the Group has gathered all the necessary information, which must occur within 12 months of the acquisition date. There are no exemptions from the 12-month rule for deferred tax assets or changes in the contingent consideration. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. 4.28 Leases where the Group is a lessee The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets for all leases, except for short-term leases and leases of low-value assets. The Group recognises right- of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised and lease payments made at or before the commencement date. Lease liabilities are measured at the present value of lease payments to be made over the lease term. The lease payments include \ufb01xed payments. The present value of lease payments is recognised by discounting the contractual lease payments using the interest rate implicit in the lease, representing the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. 4.29 Standards issued but not yet e\ufb00ective and not early adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the Group. IAS 1 Presentation of Financial Statements: Classi\ufb01cation of Liabilities as Current or Non-current (Amendments) The amendments are e\ufb00ective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted, and will need to be applied retrospectively in accordance with IAS 8. The objective of the amendments is to clarify the principles in IAS 1 for the classi\ufb01cation of liabilities as either current or non-current. The amendments clarify the meaning of a right to defer settlement, the requirement for this right to exist at the end of the reporting period, that management intent does not a\ufb00ect current or non-current classi\ufb01cation, that options by the counterparty that could result in settlement by the transfer of the entity\u2019s own equity instruments do not a\ufb00ect current or non-current classi\ufb01cation. Also, the amendments specify that only covenants with which an entity must comply on or before the reporting date will a\ufb00ect a liability\u2019s classi\ufb01cation. Additional disclosures are also required for non-current liabilities arising from loan arrangements that are subject to covenants to be complied with within twelve months after the reporting period. The amendments have not yet been endorsed by the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require renegotiation. IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (Amendments) The Amendments are e\ufb00ective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments provide guidance on the application of materiality judgements to accounting policy disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose \u2018signi\ufb01cant\u2019 accounting policies with a requirement to disclose \u2018material\u2019 accounting policies. Also, guidance and illustrative examples are added in the Practice Statement to assist in the application of the materiality concept when making judgements about accounting policy disclosures. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: De\ufb01nition of Accounting Estimates (Amendments) The amendments become e\ufb00ective for annual reporting periods beginning on or after January 1, 2023 with earlier application permitted and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments introduce a new de\ufb01nition of accounting estimates, de\ufb01ned as monetary amounts in \ufb01nancial statements that are subject to measurement uncertainty, if they do not result from a correction of prior period error. Also, the amendments clarify what changes in accounting estimates are and how these di\ufb00er from changes in accounting policies and corrections of errors. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments) The amendments are e\ufb00ective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments narrow the scope of and provide further clarity on the initial recognition exception under IAS 12 and specify how companies should account for deferred tax related to assets and liabilities arising from a single transaction, such as leases and decommissioning obligations. The amendments clarify that where payments that settle a liability are deductible for tax purposes, it is a matter of judgement, having considered the applicable tax law, whether such deductions are attributable for tax purposes to the liability or to the related asset component. Under the amendments, the initial recognition exception does not apply to transactions that, on initial recognition, give rise to equal taxable and deductible temporary di\ufb00erences. It only applies if the recognition of a lease asset and lease liability (or decommissioning liability and decommissioning asset component) give rise to taxable and deductible temporary di\ufb00erences that are not equal. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IFRS 16 Leases: Lease Liability in a Sale and Leaseback (amendments) The amendments are e\ufb00ective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted. The amendments are intended to improve the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction in IFRS 16, while it does not change the accounting for leases unrelated to sale and leaseback transactions. In particular, the seller-lessee determines \u2018lease payments\u2019 or \u2018revised lease payments\u2019 in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use it retains. Applying these requirements does not prevent the seller-lessee from recognising, in pro\ufb01t or loss, any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendment retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after the date of initial application, being the beginning of the annual reporting period in which an entity \ufb01rst applied IFRS 16. The amendments have not yet been endorsed by the EU. This amendment is not expected to have a material impact on the Group. Amendment in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015 the IASB postponed the e\ufb00ective date of this amendment inde\ufb01nitely pending the outcome of its research project on the equity method of accounting. The amendments have not yet been endorsed by the EU. The Group is currently assessing the impact of the amendments. IFRS 17: Insurance Contracts The standard is e\ufb00ective for annual periods beginning on or after 1 January 2023 with earlier application permitted, provided the entity also applies IFRS 9 Financial Instruments on or before the date it \ufb01rst applies IFRS 17. This is a comprehensive new accounting standard for insurance contracts, covering recognition and measurement, presentation and disclosure. IFRS 17 applies to all types of insurance contracts issued, as well as to certain guarantees and \ufb01nancial instruments with discretional participation contracts. The Group does not issue contracts in scope of IFRS 17; therefore its application does not have an impact on the Group\u2019s \ufb01nancial performance, \ufb01nancial position or cash \ufb02ows. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES The Group\u2019s management discusses with the Audit Committee the development, selection and disclosure of the Group\u2019s critical accounting policies and estimates, as well as their application. The estimates and associated assumptions are based on historical experience and various other factors which are considered reasonable under the circumstances. These are used to make judgements about the carrying values of assets and liabilities that are not apparent from other sources. Actual results may di\ufb00er from these estimates. The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised if the revision a\ufb00ects only that period or in the period of the revision and future periods if the revision a\ufb00ects both. Judgements that have the most signi\ufb01cant e\ufb00ect on the amounts recognised in the Consolidated Financial Statements and estimates that can cause a signi\ufb01cant adjustment to the carrying amount of assets and liabilities within the next \ufb01nancial year are detailed below: Valuation of investment property Investment property is stated at its fair value based on valuation reports prepared by international appraisers as at 30 June and 31 December each year. Valuations are based on discounted cash \ufb02ow projections based on reliable estimates of future cash \ufb02ows, using discount rates that re\ufb02ect current market assessments of the uncertainty in the amount and timing of the cash \ufb02ows. These are supported by the terms of any existing lease and other contracts and by external evidence such as current market rents for similar properties in the same location and condition. In preparing the valuation reports on the Group\u2019s investment property, the external appraisers excluded distressed sales when considering comparable sales prices. Management reviewed the appraisers\u2019 assumptions relating to the discounted cash \ufb02ow models used in the valuations and con\ufb01rmed that factors such as the discount rate applied have been appropriately determined considering the market conditions at the end of the reporting period. Valuations of the income generating properties are based on cash \ufb02ow statements, in which the present value of net operating income during a ten-year period and the residual value of the property at the end of the period are calculated. Forecasts of net operating income are based on leases signed at the time of the valuation date, the estimated rental values for existing leases when they expire and the estimated achievable rental values of the existing vacancies. The value of long-term vacancies is estimated based on the properties\u2019 location and condition. The valuers\u2019 assessments of non- recoverable expenses are based on their experience of comparable properties and historical costs provided by the Group. The discount rates used are nominal returns on total capital before tax and vary between 7.30% and 11.95% (2021: 7.00% and 11.00%). The required rates of return are based on assessments of the market\u2019s required returns for similar properties. The discount rate is set individually for each property and is based on the condition and location, the stability of the tenants and lease duration. Further information relating to sensitivity of signi\ufb01cant accounting estimates used in the valuation of investment property is presented in Note 9. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. Functional currency In assessing the functional currency of the Group, including the Company and its subsidiaries, management considers factors such as the local currencies of the countries where the Group operates, as well as the currency that mainly in\ufb02uences rental prices for its properties, the currency that mostly in\ufb02uences labour, material and other costs of providing its services, the currency in which funding is accessed by the Group. Although the competitive forces and regulations that determine the sales prices of goods and services are present in the countries which use di\ufb00erent currencies than EUR, the macroeconomic developments in these countries to some extent is in\ufb02uenced by the eurozone. In addition, in real estate, leases agreements in the countries where the Group operates, as well as the \ufb01nancing of properties are generally denominated in EUR. The Group predominately concludes its lease agreements in Euro (or, if these contracts are not concluded in Euro, they are indexed to the Euro exchange rate), even if invoiced in local currencies. Agreements for construction and development of investment properties are negotiated and concluded in EUR. Administrative and corporate expenses, such as advisory fees, audit fees, valuation fees, asset management fees are mostly negotiated and contracted in EUR. Salary and other employee related costs, although denominated in local currencies, are benchmarked to EUR. Financing contracted by the Group, which include bonds, unsecured credit facilities and secured bank loans is denominated and settled in EUR. Interest paid on bank loans is linked to Euribor. Intra-group funding for property development is also denominated and settled in EUR. In terms of transactions on the real estate market, acquisitions and sales of properties are negotiated and contracted in EUR in all jurisdictions the Group operate, due to the active international investors in those markets. This is also substantiated in external valuation reports, as valuations of properties are prepared in EUR. In conclusion, management assessed that EUR is the functional currency for the Group, including the Company and its subsidiaries. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The Group has exposure to the following risks due to its use of \ufb01nancial instruments: credit, liquidity, and market, including currency and interest rate. This note presents information about the Group\u2019s exposure to each, as well as its objectives, policies and processes for measuring and managing risk. The Board of Directors has overall responsibility for the establishment and oversight of the Group\u2019s risk management framework. The Board of Directors has delegated the responsibility for developing this framework to the Risk Committee. This Committee reports to the Board of Directors on its activities, oversees how management monitors compliance policies and procedures, and reviews the adequacy of the framework regarding the risks faced. The Group\u2019s policies are established to identify and analyse the risks it may encounter by performing its activities, to set appropriate limits and controls, and to monitor risks and adherence to limits. These policies and systems are reviewed regularly to re\ufb02ect changes in market conditions and Group activities. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. Should the bonds be repaid at their maturity, the Group\u2019s liability towards bonds holders does not vary in line with the market price of its listed notes. For reference, as at 31 December 2022 the market value of the outstanding bonds issued by the Group is presented in Note 19. 6.1 Credit risk Credit risk is the risk of \ufb01nancial loss to the Group if a counterparty to a \ufb01nancial instrument fails to meet its contractual obligations and arises principally from the Group\u2019s loans granted to joint ventures, receivables from tenants and cash and cash equivalents. The carrying amount of \ufb01nancial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is set out below: Credit exposure on \ufb01nancial instruments in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Loans granted to joint ventures 36 - 22,466 Tenant receivables 13 59,691 46,874 Cash and cash equivalents 14 250,631 498,623 Financial assets at fair value through pro\ufb01t or loss* 20 36,064 4,542 Loans to participants in the Share Purchase Scheme** 11,18 4,205 4,510 TOTAL 350,591 577,015 * Includes both long-term and short-term \ufb01nancial assets at fair value through pro\ufb01t or loss **Presented in line Other long-term assets in the Statement of \ufb01nancial position Out of the above maximum credit exposure, the balance of Loans to participants in the Share Purchase Scheme is not considered to present credit risk as these are guaranteed with the Company\u2019s shares held as security (see details in Note 18). Trade and other receivables relate mainly to the Group\u2019s tenants. When monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or legal entity, the industry they work in, business size and previous \ufb01nancial di\ufb03culties. The exposure to credit risk is mainly in\ufb02uenced by the tenant\u2019s individual characteristics. The Group\u2019s widespread customer base reduces credit risk. The majority of rental income is derived from type A tenants (large international and national tenants; large listed tenants; government and major franchisees and companies with assets and/or turnovers exceeding \u20ac200 million), and there is no concentration of credit risk with respect to trade debtors: top 10 tenants account for 24.8% of the rental income as at 31 December 2022 (31 December 2021: 24.1%). Management has established a credit policy where new customers are analysed individually for creditworthiness before standard payment terms and conditions are o\ufb00ered. When available, the analysis includes external ratings. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. An overview of the tenant receivables net of impairment provision is set out below: in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Tenant receivables \u2013 gross 69,033 54,156 Less: Impairment provisions (9,342) (7,282) TENANT RECEIVABLES-NET OF IMPAIRMENT PROVISION 13 59,691 46,874 Reconciliation of impairment provisions is set out below: Movement of provisions for doubtful debtors in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year (7,282) (9,753) Additional provision from properties acquired during the year (2,489) - Additional expected credit losses (2,841) (4,962) Write-o\ufb00 of receivables 986 469 Recovery of previously expected credit losses 2,182 6,256 Released in relation to assets held for sale disposed during the year - 625 Foreign exchange gain 102 83 CARRYING VALUE (9,342) (7,282) This table excludes rent concessions. The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) The maturity pro\ufb01le of the Financial assets at fair value through pro\ufb01t or loss is disclosed below: 31 December 2022 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 25,958 10,106 36,064 31 December 2021 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 2,643 1,899 4,542 While cash and cash equivalents and loans granted to joint ventures are also subject to the impairment requirements of IFRS 9, the expected credit losses are immaterial. For purposes of liquidity management, the Group has\u00a0various\u00a0deposit accounts and negotiated current account agreements with several banks.\u00a0The arrangements in place result in an optimized mix between \ufb02exibility and reduced interest charges or best interest o\ufb00ered. The banks\u2019 credit ratings, as well as exposure per each bank are constantly monitored. At 31 December 2022, 95% of the Group's cash was held with investment-grade rated banks (31 December 2021: 96%), as detailed below: Cash and cash equivalents 31 Dec 2022 31 Dec 2021 Held with banks as rated by Moody\u2019s A1 7% 4% A2 30% 53% A3 15% 3% Aa3 8% 5% Baa1 35% 14% Baa2 - 2% Baa3 - 15% Held with not rated banks 5% 4% TOTAL 100% 100% 6.2 Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its \ufb01nancial obligations when due. The Group\u2019s approach to managing this risk ensures, as far as possible, it will always have enough liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation. To ensure this occurs, the Group prepares budgets, cash \ufb02ow analyses and forecasts, which enable the Directors to assess the level of \ufb01nancing required for future periods. Budgets and projections are used to assess any future potential investments and are compared to existing funds held on deposit to evaluate the nature, and extent of any future funding requirements. Further reference to bank loan maturity analysis is made in Note 19. The table below presents undiscounted cash \ufb02ows for all \ufb01nancial liabilities, computed at the contractual rates. 31 Dec 2022 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 30,707 28,539 1,616,496 518,081 2,193,823 1,992,971 Bank loans (including estimated future interest) 19 9,232 22,974 393,592 211,739 637,537 557,901 Borrowings from third parties (including estimated future interest) 23 908 19,080 36,518 - 56,506 50,107 Trade and other payables 21 31,000 124,002 - - 155,002 155,002 Other long-term liabilities 22 - - 31,303 6,363 37,666 37,666 Lease liabilities (including estimated future interest) 24 832 - 4,506 67,036 72,374 37,200 TOTAL 72,679 194,595 2,082,415 803,219 3,152,908 2,830,847 31 Dec 2021 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 28,915 30,137 1,603,847 508,790 2,171,689 1,988,239 Bank loans (including estimated future interest) 19 2,901 9,002 195,444 115,967 323,314 304,586 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 20 - - 3,211 - 3,211 3,211 Borrowings from third parties short and long-term (including estimated future interest) 22 317 4,965 1,044 5,396 11,722 8,746 Trade and other payables (excluding short-term borrowings from third parties) 21 20,116 80,465 - - 100,581 100,581 Other long-term liabilities (excluding long-term borrowings from third parties) 22 - - 22,410 7,844 30,254 30,254 Lease liabilities (including estimated future interest) 24 832 - 3,329 53,279 57,440 33,611 TOTAL 53,082 124,569 1,829,285 691,276 2,698,211 2,469,228 To enhance the liquidity risk disclosure, the \u201cbonds\u201d and \u201cbank loans\u201d components of this table, which were previously aggregated, are now disclosed separately. The comparative liquidity risk table, as of 31 December 2021, has accordingly been amended. 6.3 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates or equity prices will a\ufb00ect the Group\u2019s fair value or future cash \ufb02ows of \ufb01nancial instruments. The objective of market risk management is to manage market risk exposures within acceptable parameters, while optimising returns. The carrying value of \ufb01nancial assets and liabilities approximates their fair value, except for the carrying value of bonds, whose fair value is presented in Note 19. 6.3.1 Currency risk Group\u2019s current assets and liabilities are exposed to foreign currency risk on purchases and receivables denominated in Romanian leu (RON), Polish zloty (PLN), Bulgarian Lev (BGN), Hungarian forint (HUF), Serbian dinar (RSD), Czech crown (CZK), Croatian kuna (HRK) and South African rand (ZAR). Cash in\ufb02ows received in other currencies than Euro are converted to Euro using the spot rate available on the collection date. The amount converted to Euro is the net amount of cash in\ufb02ow in a foreign currency and the estimated cash out\ufb02ow in the same currency. The Group applies this policy to control its currency exposures in respect of monetary assets and liabilities denominated in currencies other than EUR. Sensitivities of pro\ufb01t or loss to reasonably possible changes in exchange rates applied at the \ufb01nancial position date relative to the local currency of the respective Group entities, with all other variables such as interest rates held constant, are immaterial. 6.3.2 Interest rate risk Interest rate risk is the risk that the future cash \ufb02ows of a \ufb01nancial instrument will \ufb02uctuate because of changes in market interest rates. The Group is exposed to interest rate risk on loans, borrowings and cash balances held. Group policy is to hedge this risk through the use of derivative \ufb01nancial instruments. As at 31 December 2022 and 31 December 2021, the Group held interest rate instruments in the form of interest rate swaps and interest rate caps, as further disclosed in Note 20. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Bank loans 557,901 304,586 \u2014 Rate capped 330,000 191,520 \u2014 Rate swapped 114,928 115,873 \u2014 Variable rate 115,333 - Accrued interest on loans and deferred loan costs* (2,360) (2,807) * The balance exposed to variable rate as of 31 December 2022 relate to a portion of the outstanding revolving credit facilities disbursed at year-end and represents less than 5% of the total outstanding debt. Sensitivity analysis for interest bearing \ufb01nancial instruments A change of 100 basis points (bps) in interest rates would have increased/(decreased) equity and pro\ufb01t for the year as shown below. Calculations are based on the cash and loans and borrowings balances outstanding at the respective balance sheet dates. Cash and loans and borrowings balances are subject to change over the year. This analysis assumes that all other variables, particularly foreign currency rates, remain constant. All sensitivity analysis calculations presented below are before tax. The benchmark rate for the bank loans with an outstanding amount of \u20ac557,901 thousand as at 31 December 2022 (2021: \u20ac304,586 thousand) is Euribor 3 months; if this rate is less than zero, Euribor shall be deemed to be zero. There are no plans to discontinue Euribor. Loans and borrowings with \ufb01xed or swapped interest rates are not a\ufb00ected by market changes in interest rates. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants in the Share Purchase Scheme (including accrued interest) (Note 18) 4,205 4,510 Loans and borrowings (variable or capped rate) (445,333) (191,520) TOTAL (441,128) (187,010) 31 Dec 2022 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 42 (42) 42 (42) Loans and borrowings (variable or capped rate)* (856) 1,130 (856) 1,130 TOTAL (814) 1,088 (814) 1,088 *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 31 Dec 2021 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 45 (45) 45 (45) Loans and borrowings (variable or capped rate)* (742) - (742) - TOTAL (697) (45) (697) (45) *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 7. INTERNAL CONTROLS TO MANAGE RISKS The Board of Directors is responsible for the Group\u2019s system of internal control and for reviewing its e\ufb00ectiveness. This system is designed to mitigate rather than eliminate the risk of failure to meet business objectives, and can only provide reasonable, not absolute, assurance against material misstatement or loss. The key features of the Group\u2019s system of internal control include: \u2022 Strategic and business planning: the Group prepares, and agrees, a business plan each year, to which the performance of the business is regularly monitored; \u2022 Investment appraisal: capital projects, major contracts and business and property acquisitions are reviewed in detail and approved by the Investment Committee, and/or the Board of Directors where appropriate, in accordance with delegated authority limits; \u2022 Financial monitoring: pro\ufb01tability, cash \ufb02ow and capital expenditure are closely monitored, and key \ufb01nancial information is reported to the Board of Directors regularly, including explanations of variances between actual and budgeted performance, and \u2022 Systems of control procedures and delegated authority: clearly de\ufb01ned guidelines and approval limits exist for capital and operating expenditure and other key business transactions and decisions. 8. CAPITAL MANAGEMENT The primary objective of the Group\u2019s capital management is to ensure it complies with its quantitative banking covenants and maintains a strong credit rating. During the year, no changes were made in the objectives, policies or processes. Capital is primarily monitored using the gearing ratio (Loan-to-value), which was 35.7% (31 December 2021: 30.9%). The ratio is computed as interest bearing debt less lease liabilities less cash, divided by investment property (including investment property held for sale) and excludes the right-of-use assets. Loan-to-value is a non IFRS measure. The Group\u2019s policy is to maintain a strong capital base of equity so as to maintain investor, creditor and market con\ufb01dence and to sustain future business development. The Board of Directors also monitors the level of distributions to shareholders. Neither the Company, nor its subsidiaries, are subject to externally imposed capital requirements, except that the Group\u2019s subsidiaries are subject to compliance with bonds and bank borrowings\u2019 covenants, as presented in Note 19. The Group ensures it retains comfortable levels of access to liquidity to \ufb01nance the Group\u2019s ongoing operations and further investment opportunities. 9. INVESTMENT PROPERTY IN USE Movement in investment property in use in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 5,670,776 5,591,463 Additions from asset deals (Note 35) 367,769 12,530 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 104,287 - Transferred from investment property under development (Note 10) 51,139 92,528 Fair value adjustments (Note 30) 134,234 30,306 Additions to the right-of-use assets from acquired assets (Note 35) 3,843 - Fair value adjustment of right-of-use assets (Note 30) (255) (251) Investment property reclassi\ufb01ed as held for sale (Note 15.1) - (55,800) CARRYING VALUE 6,331,793 5,670,776 As at 31 December 2022, the balance of investment property included also right-of-use assets of \u20ac37,200 thousand (2021: \u20ac33,611 thousand) representing long-term land concessions for the Group Polish properties contracted from local government. Investment property is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. For the year ended 31 December 2022 and 31 December 2021, the Group commissioned independent year-end appraisal reports on its investment property in use to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, all members of the Royal Institution of Chartered Surveyors (RICS). Valuations are prepared in accordance with the RICS Valuation \u2013 Global Standards 2021 (the \u201cRed Book\") and ANEVAR Valuation Standards-2022 Edition which incorporate the International Valuation Standards (\u201cIVS\u201d). All investment property in use is valued by the Income Method. For the years ended 31 December 2022 and 31 December 2021 respectively, the applied method used for all investment property in use was discounted cash \ufb02ow (\u201cDCF\u201d). DCF uses explicit assumptions regarding the bene\ufb01ts and liabilities of ownership over the asset\u2019s life, including an exit, or terminal, value. As an accepted method within the Income Method to valuation, the DCF method involves the projection of a series of cash \ufb02ows onto a real property interest. To these projected cash \ufb02ow series, an appropriate, market-derived discount rate is applied to establish the present value of cash in\ufb02ows associated with the real property. The duration of cash \ufb02ow, and the speci\ufb01c timing of in\ufb02ows and out\ufb02ows, are determined by events such as rent reviews, lease renewal and related lease-up periods, re-letting, redevelopment or refurbishment. The appropriate duration is typically driven by market behaviour. In the case of investment property, periodic cash \ufb02ow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance costs, agent and commission fees, and other operating and management expenses. The series of periodic net cash in\ufb02ows, combined with the estimated terminal value anticipated at the end of the projection period, is then discounted. For all investment property in use, the current use equates to the highest and best use. The Group provides all information necessary for the valuations, including detailed tenancy schedules, comprising information on occupied and vacant units, unit areas and numbers, lease commencement and expiry dates, break options and indexation clauses. All properties have been inspected by representatives of external valuers for the purpose of 31 December 2022 valuations. The Group\u2019s valuers note in their valuation report that wherever appropriate, sustainability and environmental matters are an integral part of the valuation approach. Sustainability is taken to mean the consideration of such matters as environment and climate change, health and wellbeing and corporate responsibility that can or do impact on the valuation of an asset. In a valuation context, sustainability encompasses a wide range of physical, social, environmental, and economic factors that can a\ufb00ect value. The range of issues includes key environmental risks, such as energy e\ufb03ciency and climate, as well as matters of design, con\ufb01guration, accessibility, legislation, management, and \ufb01scal considerations. As at 31 December 2022, the investment property in use had an EPRA Vacancy Rate of 2.7% (31 December 2021: 4.0%). EPRA Vacancy Rate is a non-IFRS measure which is de\ufb01ned in Appendix 1. As at the same date, the Group\u2019s portfolio included retail, o\ufb03ce and industrial properties. IFRS 13 de\ufb01nes fair value as the price that would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants at the measurement date. The Group currently discloses fair values according to a \u2018fair value hierarchy\u2019 (as per IFRS 13) which categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs. The fair value hierarchy is explained below: \u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; \u2022 Level 2: use of a model with inputs (other than quoted prices included within Level 1) that are directly, or indirectly, observable market data, and \u2022 Level 3: use of a model with inputs not based on observable market data. The Group\u2019s investment property is categorised as Level 3. For assets and liabilities that are recognised in the \ufb01nancial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is signi\ufb01cant to the fair value measurement as a whole) at the end of each reporting period. There were no transfers between hierarchy levels during the year. The signi\ufb01cant unobservable inputs used in the fair value measurement categorized within Level 3 of the fair value hierarchy of the Group\u2019s property portfolio, together with the impact of signi\ufb01cant movements in these inputs on the fair value measurement, are detailed below: Unobservable input Impact on fair value of increase in input Estimated rental value Increase Discount rate Decrease Capitalisation rate for terminal value Decrease Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2022 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail Discounted cash \ufb02ow 294 \u2013 24,411 (13,449*) 7.30% \u2013 11.45% (8.94*) 5.45% \u2013 9.25% (7.08*) O\ufb03ce Discounted cash \ufb02ow 1,851 \u2013 4,393 (3,675*) 8.50% \u2013 8.75% (8.68*) 7.75% \u2013 8.15% (8.04*) Industrial Discounted cash \ufb02ow 645 \u2013 1,727 (1,416*) 10.95% \u2013 11.95% (11.66*) 8.75% \u2013 9.75% (9.46*) *Amounts or percentages represent weighted averages Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2021 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail^ Discounted cash \ufb02ow 246 \u2013 22,190 (12,702*) 7.00% \u2013 11.00% (8.50*) 5.30% \u2013 9.00% (6.90*) O\ufb03ce Discounted cash \ufb02ow 1,840 \u2013 4,419 (3,744*) 8.50% \u2013 8.75% (8.57*) 7.50% \u2013 7.90% (7.80*) Industrial Discounted cash \ufb02ow 556 \u2013 1,531 (1,261*) 10.00% \u2013 11.00% (10.72*) 8.50% \u2013 9.50% (9.22*) *Amounts or percentages represent weighted averages. ^Excluding joint ventures. Portfolio valuation: sensitivity to changes in the discount rate and exit rate The tables below present the change in the valuation of the shopping centre portfolio using di\ufb00erent discount rate and exit rate assumptions than those used by the appraisers. Discount rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 5.2% 2.5% -2.4% -4.7% Poland 5.7% 2.8% -2.6% -5.1% Croatia 5.8% 2.8% -2.7% -5.2% Slovakia 6.9% 3.4% -3.1% -6.1% Bulgaria 5.9% 2.9% -2.7% -5.3% Serbia 5.6% 2.7% -2.6% -5.0% Czech Republic 7.1% 3.4% -3.2% -6.3% Lithuania 5.3% 2.6% -2.4% -4.8% Hungary 6.5% 3.1% -2.9% -5.7% TOTAL 5.7% 2.8% -2.6% -5.1% Exit rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 6.8% 3.3% -3.1% -6.0% Poland 7.9% 3.8% -3.5% -6.8% Croatia 6.6% 3.2% -3.0% -5.8% Slovakia 7.8% 3.7% -3.5% -6.7% Bulgaria 6.8% 3.3% -3.1% -6.0% Serbia 6.3% 3.0% -2.9% -5.6% Czech Republic 8.1% 3.9% -3.6% -7.0% Lithuania 7.0% 3.4% -3.2% -6.2% Hungary 8.3% 4.0% -3.7% -7.1% TOTAL 7.3% 3.5% -3.3% -6.4% 10. INVESTMENT PROPERTY UNDER DEVELOPMENT Movement in investment property under development in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 170,900 210,935 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 1,700 - Additions from asset deals (acquisition of land for development) (Note 35) 18,201 - Additions from construction in progress 136,083 55,154 Fair value adjustments (Note 30) 8,917 4,110 Assets which became operational and were transferred to Investment property in use (Note 9) (51,139) (92,528) Investment property under development reclassi\ufb01ed as held for sale (Note 15.1) (20,318) (2,550) Transfer to inventory property - (4,221) Carrying value 264,344 170,900 Land included in Investment property under development is carried at fair value and is independently assessed on a semi-annual basis. For the years ended 31 December 2022 and 2021, the Group commissioned independent year-end reports to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, based on which the fair value of land was adjusted. Land included in Investment property under development is classi\ufb01ed Level 3 on the fair value hierarchy as de\ufb01ned in IFRS 13. The valuation technique is sales comparison or residual approach (in accordance with RICS Valuation Standards and ANEVAR Valuation Standards (for Romanian properties). Land under sales comparison method was valued by the external appraisers using the recent transactions of similar land for development in the proximity of the subject property. The residual approach determines the residual land value by subtracting purchase and development cost from the expected gross development value of the project at completion. The construction works in the investment property under development are held at cost, and their carrying value is a reasonable approximation of their fair value. The methods have been consistently applied for the comparative period. Borrowing costs capitalised in 2022 amount to \u20ac3,513 thousand (2021: \u20ac3,193 thousand) and were calculated using an average annual interest rate of 2.3% (2021: 2.4%). The balance of Investment property under development split by land carried at fair value and additions from construction works held at cost (which approximate fair value) is detailed below: Investment property under development in \u20ac thousand 31 Dec 2022 31 Dec 2021 Land (at fair value) 157,609 147,843 Construction works (at cost) 106,735 23,057 TOTAL 264,344 170,900 11. OTHER LONG-TERM ASSETS Other long-term assets are classi\ufb01ed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants under the Share Purchase Scheme (Note 18) 4,205 4,510 Property, plant and equipment 3,780 3,599 Intangible assets 3,065 1,346 TOTAL 11,050 9,455 12. GOODWILL The Group recognised goodwill for the following business acquisitions: in \u20ac thousand Segment Balance at 31 Dec 2022 Balance at 31 Dec 2021 Pitesti Retail Park Retail 1,671 1,671 Internalisation of NEPI Investment Management Corporate 5,882 5,882 Aupark Kosice Mall Retail 5,189 5,189 Iris Titan Shopping Center Retail 934 934 Forum Usti nad Labem Retail 5,646 5,646 Shopping City Sibiu Retail 9,850 9,850 Korzo Shopping Centrum Retail 2,899 2,899 Aupark Shopping Center Piestany Retail 1,585 1,585 Arena Centar and Retail Park Retail 13,512 13,512 Energit Retail 6,976 6,976 Paradise Center Retail 9,311 9,311 Arena Mall Retail 7,905 7,905 Galeria Mlyny Retail 5,444 5,444 TOTAL 76,804 76,804 There were no movements of goodwill in 2022 and 2021. According to the Group\u2019s accounting policies based on IFRS, goodwill is tested at least annually for impairment or whenever there is an indication that it may be impaired. The lowest level within the Group at which the goodwill is allocated and monitored for internal management purposes is the CGU, represented by each individual property. CGUs to which the goodwill has been allocated were tested for impairment by comparing their net asset value with the recoverable value, which is the higher of value in use and fair value less cost to sell. Goodwill from recognition of deferred taxes at the date of the business combination All the goodwill summarised in the table above, with the exception of NEPI Investment Management and Energit, resulted from business combinations, as the di\ufb00erence between the deferred tax liability recognised in the balance sheet of the business acquired and the expected tax to be paid in case of a future disposal. As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). Goodwill from management and energy trading companies Goodwill arising at the level of management company, NEPI Investment Management, is monitored at the level of this subsidiary, which employs part of the Group\u2019s key management and charges management fees to property operating companies. The recoverable amount of NEPI Investment Management and Energit is represented by their value in use, determined based on the DCF derived from the \ufb01ve-year \ufb01nancial budgets for these two entities approved by management. Cash \ufb02ows beyond the \ufb01ve-year period were extrapolated using the estimated cash \ufb02ow of year 5. The discount rate used was based on the weighted average cost of capital in the speci\ufb01c geography of the two entities. As a result of this test, no impairment arose in connection with the above two entities. 13. TRADE AND OTHER RECEIVABLES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Tenant receivables (Note 6.1) 59,691 46,874 VAT receivable 11,287 5,804 Prepaid property expenses 9,447 5,582 Other receivables 4,989 2,490 Other prepaid fees 82 222 TOTAL 85,496 60,972 14. CASH AND CASH EQUIVALENTS Cash and cash equivalents by currency in \u20ac thousand 31 Dec 2022 31 Dec 2021 EUR 161,035 418,751 RON 38,556 29,442 PLN 19,837 15,799 BGN 10,663 8,974 HUF 3,213 6,645 HRK 7,703 12,562 CZK 5,909 4,016 RSD 3,101 1,773 ZAR 614 572 USD - 9 GBP - 80 TOTAL 250,631 498,623 Cash and cash equivalents by type in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current accounts 196,019 378,401 Deposits 50,079 120,000 Restricted cash 4,250 - Petty cash and other values 283 222 TOTAL 250,631 498,623 15. ASSETS HELD FOR SALE Investment property held for sale is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. In November 2022, the Group disposed of a plot of land in Sabac, Serbia held by Nepi Project Three d.o.o. in a share deal, for a transaction value of \u20ac3.3 million, with a net gain on disposal of \u20ac1.1 million. In August 2022, the Group entered into a binding agreement for the sale of a plot of excess land owned by General Building Management SRL, owner of the development in Craiova, Romania. The transaction is expected to be completed in 2023, subject to conditions precedent to be ful\ufb01lled by the Group. In July 2021, the Group disposed of two Serbian retail properties for a transaction value of \u20ac60.8 million, with a net gain on disposal of \u20ac2 million. At 31 December 2022, the assets held for sale included a plot of land located in Slovakia together with two non-core properties and a plot of land located in Romania. One of the Romanian non-core properties was sold at book value in January 2023. The major classes of assets and liabilities of subsidiaries which are presented as held for sale at the end of the reporting period are as follows: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Non-current assets 18,666 1,752 Investment property at fair value 1,730 1,752 Investment property under development 16,936 - Current assets 19 - Cash and cash equivalents 19 - Assets held for sale 18,685 1,752 Non-current liabilities 1,111 - Deferred tax liabilities 1,111 - Current liabilities 7 - Liabilities held for sale 1,118 - Net assets held for sale 17,567 1,752 15.1 INVESTMENT PROPERTY HELD FOR SALE in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 1,752 1,752 Transfer from investment property in use (Note 9) - 55,800 Transfer from investment property under development (Note 10) 20,318 2,550 Additions during the period 21 - Fair value adjustments (Note 30) (1,195) 485 Disposals (2,230) (58,835) CARRYING VALUE 18,666 1,752 16 INVENTORY PROPERTY The Group has a residential property development that it intends to sell on completion. The residential project is held as inventory property and is measured at the lower of cost and net realisable value (\u201cNRV\u201d) The commencement of development with a plan or a prior agreement to sell represents a change in use and accordingly the project is transferred from investment property to inventory property. NRV is the estimated selling price in the ordinary course of business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Inventory property 20,694 9,522 17. SHARE CAPITAL AND SHARE PREMIUM Movement of ordinary shares in \u20ac thousand Number of shares Share capital \u20ac0.01/share Share premium Issued as of 1 January 2021 608,994,907 6,090 3,550,061 CARRIED FORWARD AS AT 31 DECEMBER 2021 608,994,907 6,090 3,550,061 \u2014 Repurchase of shares 1,994,907 ordinary shares representing 0.33% of the Company issued shared capital* (1,994,907) (20) (9,326) \u2014 Share premium reduction (During 2022, \u20ac350,000 thousand were transferred from share premium to accumulated pro\ufb01t, to ensure positive retained earnings at stand-alone parent Company level) - - (350,000) CARRIED FORWARD AS AT 31 DECEMBER 2022 607,000,000 6,070 3,190,735 *The shares were repurchased between 29 September and 12 October 2022 from available cash. Subsequently, the repurchased shares were cancelled. The shares were repurchased at an average share price of \u20ac4.68. The Group had no issues of share capital or options to receive capital return granted to its shareholders during 2022. Ordinary shares carry the right to vote at general meetings, to distribution and to the surplus assets of the Group on winding-up. The Group has granted dividends as summarized below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Earnings distribution (241,223) (210,222) As of 8 March 2022, the Board has declared a dividend of 16.78 euro cents per share for the year ended 31 December 2021, corresponding to 100% of the distributable earnings per share for this period. The distribution amounting to \u20ac102,189 thousand was paid in cash during March 2022. As of 20 September 2022, the Board has declared a dividend of 22.83 euro cents per share for the six months ended 30 June 2022, corresponding to 100% of the distributable earnings per share for this period. The distribution amounting to \u20ac139,034 thousand was paid in cash during October 2022. 18. SHARE-BASED PAYMENTS The Group has implemented incentive plans to reward performance and align the interests of executive directors and key individuals with those of the shareholders. The Group\u2019s current incentive plan (\u201cIncentive Plan\u201d) was approved by Company\u2019s shareholders at an EGM dated 16 November 2022. The Incentive Plan replaces the initial plan that was approved at the merger between NEPI and Rockcastle. The aim of the plan is to incentivise directors and employees to meet the Group\u2019s short-term and long- term objectives by giving such participants an opportunity to receive performance-based Awards (in cash or shares), on short-term (immediate settlement in cash or shares) or long-term (shares with a vesting component). The Board determines which executive directors are eligible to participate in the Incentive Plan, and the allocation of incentives, based on key performance indicators. The executive directors determine which key employees are eligible to participate in the Incentive Plan, and the allocation of incentives is discretionary, based on key performance indicators and other considerations regarding the employees\u2019 performance. To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers (\u201cSPS\u201d) Under this program, loans were granted to participants in the share purchase schemes (the \u201cShare Purchase Scheme\u201d or \u201cSPS\u201d) to buy shares, the repayment of which could be made in part out of the distribution payable in relation to the shares (the \u201cNRP SPS\u201d). Of the shares initially subscribed for, 20% vested annually. The Group o\ufb00ered each participant the immediate right to subscribe for the permitted number of shares at their market value, less a maximum discount of 5%, together with a loan to fund the purchase. Each loan carried interest at the weighted average rate that the Group can borrow money. Loans are payable in full, together with interest, ten years after its subscription date, but could be repaid earlier. The Company has security interests that ensure the repayment of the principal and interest on the loan given to participants. The NRP SPS is a full recourse scheme (i.e., recourse in relation to loans granted is not limited to shares issued). Pending repayment of the loan, the distributions on such shares are used to repay loan interest. Any excess distribution after interest payment is used to repay the loan. No shares were issued during 2022 and 2021 under the NRP SPS. The number of shares outstanding and the loans to participants under the Share Purchase Scheme as at the year-end are summarised below: NRP SPS 31 Dec 2022 31 Dec 2021 Number of shares outstanding, collateralising the Loans to participants under the Share Purchase Scheme 657,276 705,864 Loans to participants under the Share Purchase Scheme (in \u20ac thousand) 4,205 4,510 b. Debt free Long-Term Share Incentive Plan with a vesting component (\u201cLTSIP\u201d) Under this incentive plan, shares are awarded by the Group to executive directors and other key employees for no cash consideration. For key employees, shares are awarded to participants on condition of employment in the Group for the next three years (vesting period), with shares being vested proportionally over each year of the corresponding vesting periods (tranche vesting). For executive directors, shares are awarded subject to a full vesting of them at the end of three years (cli\ufb00 vesting) plus a further two-year lock-up period, during which the vested shares cannot be disposed of by the directors. Shares awarded under LTSIP cannot be disposed of or otherwise encumbered up to their respective vesting dates. The number of shares granted but unvested at 31 December 2022 and their fair value at grant date are summarised below: LTSIP 31 Dec 2022 31 Dec 2021 Number of shares granted but unvested at year-end 817,822 633,527 Fair value at the grant date (\u20ac thousand) 4,734 3,731 The maximum number of shares which could be o\ufb00ered for subscription under the Incentive Plan is 5% of the issued share capital of the Company at the end of any \ufb01nancial year prior to each award, provided that such number shall not exceed 30,449,745 shares. The number of shares that remained available for issue in terms of the Incentive Plan were as follows: 31 Dec 2022 31 Dec 2021 Number of shares that remain available for issue at year-end 28,226,835 25,809,921 19 BORROWINGS (BONDS AND BANK LOANS) The Group is currently assigned a long-term corporate credit rating of BBB (stable outlook) from Standard & Poor\u2019s Rating Services and BBB+ (stable outlook) from Fitch Ratings. In 2022, NEPI Rockcastle extended the contractual maturities related to its unsecured committed revolving credit facilities, as follows: \u2022 the revolving credit facility from BRD-Groupe Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and Garanti Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac170 million; \u2022 the revolving credit facility from ING Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac100 million; and \u2022 the revolving credit facility from Rai\ufb00eisen Bank International was extended for one year, until January 2025, with the maximum principal available maintained at \u20ac150 million. The above mentioned committed revolving credit facilities together with the revolving credit facility from a four-bank syndicate of a maximum limit of \u20ac200 million amount to a total of \u20ac620 million available unsecured committed revolving credit facilities, of which \u20ac420 million were undrawn as at 31 December 2022 (31 December 2021: \u20ac620 million). In January 2022, the Group issued its second green \u20ac500 million unsecured 8-year Eurobond, carrying a 2% \ufb01xed coupon, with an issue price of 98.713%. The bond issue was used for liability management, to repay a \u20ac500 million bond maturing in 2023. The repurchase of 2023 bond was made at market price in January and February 2022, with the premium paid over its carrying value of \u20ac22 million, recognised in the Statement of comprehensive income. The average interest rate of the Group\u2019s debt, including hedging result, was approximately 2.3% during 2022 (31 December 2021: 2.4%). As at 31 December 2022, \ufb01xed-coupon bonds represented 78% of NEPI Rockcastle\u2019s outstanding debt; out of the remaining long-term debt exposed to Euribor, 59% was hedged with interest rate caps and 21% with interest rate swaps. The unhedged portion represents less than 5% of the outstanding debt and relates to a proportion of the revolving credit facilities disbursed as of year-end. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. The repayment pro\ufb01le for outstanding loans, excluding future interest, is detailed below. In addition to these loans, the Group had loans and borrowings related to its joint ventures presented in Note 36, which were repaid in the second half of 2022 following acquisition of the remaining 50% stake in the joint-venture. Interest bearing borrowings 31 Dec 2022 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,498,980 500,000 1,998,980 Netherlands Revolving facilities - 200,000 - 200,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 1,520 74,100 - 75,620 Slovakia Secured loans 6,475 23,200 82,137 111,812 Czech Republic Secured loans 615 38,694 - 39,309 Romania Secured loans 2,727 10,908 46,365 60,000 Accrued interest on loans and deferred loan costs (180) (2,181) - (2,361) Accrued coupon on bonds 20,353 - - 20,353 Deferred bond costs (2,504) (7,359) (1,203) (11,066) Issue discount on bonds (3,586) (10,161) (1,549) (15,296) Total 25,420 1,826,181 699,271 2,550,872 Interest bearing borrowings 31 Dec 2021 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,495,000 500,000 1,995,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 380 75,620 - 76,000 Slovakia Secured loans 7,216 71,607 39,176 117,999 Czech Republic Secured loans 564 39,309 - 39,873 Accrued interest on loans and deferred loan costs (729) (2,078) - (2,807) Accrued coupon on bonds 18,856 - - 18,856 Deferred bond costs (2,772) (6,846) (430) (10,048) Issue discount on bonds (5,036) (9,909) (624) (15,569) Total 18,479 1,662,703 611,643 2,292,825 Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). Further details for the Group\u2019s loans and bonds are presented below: Secured term loans The Group has secured term loans contracted by some of its subsidiaries in Poland, Slovakia, Czech Republic and Romania. In December 2022, a Romanian subsidiary concluded a \u20ac60 million secured loan which matures in March 2030. Securities \u2022 General security over the properties (fair values as at 31 December 2022), current assets, cash in\ufb02ows from operating activities, accounts and receivables; and \u2022 General security over the shares in the property-owning entities. Covenants \u2022 Debt service cover ratio of a minimum between 120% and 130%; and \u2022 Loan to value ratio of a maximum between 60% and 70%. Unsecured green term loan In June 2021, the Group concluded a green unsecured \ufb01nancing agreement which matures in June 2028 in amount of \u20ac73.5 million. The loan was fully disbursed in July 2021. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. The loan is linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Unsecured committed revolving facilities At 31 December 2022, out of the \u20ac620 million revolving facilities, \u20ac420 million were available for drawdown following disbursement of \u20ac200 million in December 2022. The drawn amounts have the maturity of the revolving facilities from which they have been disbursed, in 2025, but they can be reimbursed earlier. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. All available revolving facilities are linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Management considers that the above ESG related variability feature does not meet the de\ufb01nition of a derivative, as de\ufb01ned in Appendix A of IFRS 9, on the basis that the external rating is a non\u2013\ufb01nancial variable speci\ufb01c to the Group. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. 21. TRADE AND OTHER PAYABLES in \u20ac thousand 31 Dec 202 31 Dec 2021 Property related payables 80,167 43,266 Advances from tenants 43,710 37,905 Payable for assets under construction 16,973 11,978 Borrowings from third parties \u2013 short-term (Note 22) - 4,388 Accrued administrative expenses 5,246 3,783 Tenant security deposits 2,635 2,335 Deferred consideration on acquisitions of subsidiaries and asset deals 6,271 1,314 TOTAL 155,002 104,969 22. OTHER LONG-TERM LIABILITIES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Borrowings from third parties \u2013 long-term* - 4,358 Tenant security deposits 32,990 29,034 Advances from residential customers 3,427 217 Other long-term payables 1,249 1,003 TOTAL 37,666 34,612 *Reconciliation of borrowings from third parties This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 23. LOANS FROM THIRD PARTY As disclosed in Note 35, as part of the deal for the acquisition of Forum Gdansk Sp. z o.o., the Group obtained vendor \ufb01nancing in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand, bearing an interest rate of 6.5%. One third of the loan principal is repayable at each anniversary of the loan until maturity, however the loan can be repaid by the Group at any time at its own discretion. The fair value of the loan is substantially in line with its carrying amount. 24. LEASE LIABILITIES The Group recognises the right-of-use assets from leases of land plots on which its Polish properties are located, commissioned from the local authorities. The correspondent lease liabilities are recognised by discounting the contractual lease payments using the interest rate implicit in the lease, representing the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The contractual lease agreements are signed for the period of 99 years with extension option by the lessee. The agreements include \ufb01xed payment terms subject to adjustment due to revaluation of land, such revaluation can be done by the lessor not more often than every three years. Reconciliation of lease liabilities in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value of the lease liabilities 33,611 33,862 Out of which short-term 832 832 Additions to lease liabilities from acquired assets 3,843 - Interest expense (Note 31) 577 581 Lease liability payment (832) (832) Lease liabilities 37,200 33,611 Out of which short-term 832 832 25. CORPORATE TAX CHARGE AND DEFERRED TAX Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in pro\ufb01t or loss, except to the extent they relate to business combination or items recognised directly to equity. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets are realised or the liabilities are settled, based on tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised to the extent it is probable that future taxable pro\ufb01t will be available against which temporary di\ufb00erences can be utilised. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current tax expense 23,068 10,274 Deferred tax expense 43,266 16,643 INCOME TAX EXPENSE 66,334 26,917 Deferred tax brought forward 322,697 306,646 Other adjustments (deferred tax liability released further to sale of one Serbian entity in 2022 and two Serbian entities in 2021 included in the disposal proceeds)-no P&L e\ufb00ect 23 (592) Deferred tax balance transferred to Held for sale assets-no P&L e\ufb00ect (1,111) - Deferred tax expense 43,266 16,643 Net deferred tax liability carried forward, out of which: 364,875 322,697 Deferred tax asset (*) (54,679) (48,669) Deferred tax liability (*) 419,554 371,366 (*) Deferred tax assets and liabilities presented in this table, in net amount of \u20ac40,978 thousand (2021: \u20ac36,900 thousand), have been o\ufb00set at the level of the Group entities. Net deferred tax liability results from the following types of di\ufb00erences: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Fiscal losses 249,282 284,304 Other deductible temporary di\ufb00erences (*) 241,514 149,562 Deferred tax asset 95,657 85,568 Temporary di\ufb00erences between accounting and \ufb01scal value of investment property (2,983,715) (2,683,068) Other taxable temporary di\ufb00erences (*) (22,649) (885) Deferred tax liability (460,532) (408,265) Net deferred tax liability (364,875) (322,697) (*) Other deductible and taxable temporary di\ufb00erences include mainly prepayments and accruals, deferred income and allowances for doubtful debts. The deferred tax balance as at 31 December 2022 is the net e\ufb00ect of deferred tax assets resulted mainly from \ufb01scal losses and deferred tax liabilities resulted from di\ufb00erences between the \ufb01scal base and the accounting base of assets and liabilities, mainly investment property. Deferred tax liabilities are not expected to be settled within the following \ufb01ve years from the reporting date. Deferred tax liabilities, which are a non-cash item, result directly from the fair value revaluation of the investment property and other local tax adjustments (e.g., local tax depreciation charges, non-capitalisation of certain items, foreign exchange impact given that tax value is recorded in local currency, etc.) which diminishes the tax value of the investment property. in \u20ac thousand Consolidated Statement of \ufb01nancial position Consolidated Statement of comprehensive income Deferred tax liability (net) 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 Valuation of investment property at fair value (456,232) (408,096) (49,221) (33,649) Recognised unused tax losses 49,934 57,271 (7,338) 16,074 Deductible/Taxable temporary di\ufb00erences 41,423 28,128 13,293 932 TOTAL (364,875) (322,697) (43,266) (16,643) The Group is liable for taxation on taxable pro\ufb01ts in the following jurisdictions at the rates below: Corporate income tax rates 31 Dec 2022 31 Dec 2021 Isle of Man 0% 0% Netherlands 25.8% 25.8% Mauritius 15% 15% Romania 16% 16% Poland 19% 19% Slovakia 21% 21% Serbia 15% 15% Czech Republic 19% 19% Croatia 18% 18% Bulgaria 10% 10% Hungary 9% 9% Lithuania 15% 15% Malta 35% 35% A reconciliation between the current year income tax charge (current and deferred tax) and the Group consolidated pro\ufb01t/(loss) before tax for the years 2022 and 2021 is presented below: Pro\ufb01t Before Tax Reconciliation in \u20ac thousand 31 Dec 2022 31 Dec 2021 Consolidated Pro\ufb01t Before Tax 501,607 261,986 Weighted tax rate on consolidated Pro\ufb01t Before Tax 14.91% 16.53% Group income tax charge based on Group weighted tax rate (74,771) (43,346) E\ufb00ect in corporate income tax resulting from the following items: Group share in earnings from companies accounted for under equity method 489 304 E\ufb00ect of gains/(losses) at Holding level without tax impact (including release of provision for litigation claim) 6,583 (7,603) Tax expense in Holdings (inter-companies) not included in Pro\ufb01t before tax of the Group for consolidation (3,862) (2,804) Tax value adjustments in local jurisdictions related to previous years (including foreign exchange impact on non-\ufb01nancial tax base and statutory adjustments) 12,114 4,692 Refund of minimum tax for Polish entities related to previous years 342 1,330 Deferred tax assets released due to \ufb01scal losses expired and/or not utilised in the current year or expected to expire without being utilised in future periods (release of DTA not related to current year) (2,821) (1,832) Release of deferred tax asset recognised for prior year tax losses (4,550) 19,182 Deferred tax asset recognised for additional \ufb01scal losses incurred in the current year and derived from tax deductions in relation to statutory expenses eliminated for IFRS - 1,845 Others 142 1,315 TOTAL Group tax expense (66,334) (26,917) E\ufb00ective tax rate (Group consolidated Pro\ufb01t Before Tax) 13 % 10% The Group accounts for deferred taxes assuming the theoretical future disposals of properties in the form of asset deals, triggering the full corporate income tax rate in each jurisdiction in which the Group owns property. In practice, if the Group would be in the position to dispose of certain assets, these disposals will most probably be conducted via share deals, as assets are held in separate SPVs, signi\ufb01cantly reducing the e\ufb00ective tax rate on potential capital gains. Group subsidiaries are subject to corporate tax on an annual basis. The Group carries forward aggregate \ufb01scal losses of \u20ac249,282 thousand (31 December 2021: \u20ac284,304 thousand), which are mainly available for up to seven years to o\ufb00set against any future taxable pro\ufb01ts of the companies in which the losses arose. The notable exception is the Netherlands where, starting 1 January 2022 tax losses available as at 31 December 2021 may be used for an inde\ufb01nite amount of time to o\ufb00set against 50% of the future taxable pro\ufb01ts of the Dutch companies. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable pro\ufb01t will be available against which the losses can be utilised. Signi\ufb01cant management judgement is required to determine recognisable deferred tax assets, based on the likely timing and the level of future taxable pro\ufb01ts and future tax planning strategies. Deferred tax assets have not been recognised for \ufb01scal losses of \u20ac40,754 thousand (31 December 2021: \u20ac39,597 thousand) as these could have been used only to o\ufb00set the taxable pro\ufb01ts of certain companies in the Group, and there is uncertainty whether these companies will either generate sufficient taxable profit in the future. The expiry dates for these losses are as follows: in \u20ac thousand 31 Dec 2022 31 Dec 2021 2022 - 6,026 2023 5,619 7,339 2024 4,271 12,011 2025 2,457 733 2026 6,906 11,701 2027 1,347 1,787 2028 2,712 - 2029 and later 17,442 Total 40,754 39,597 The Group does not withhold taxes on distribution paid. 26. NET ASSET VALUE PER SHARE in \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Net Asset Value (per the Statement of \ufb01nancial position) 3,898,721 3,714,922 Deferred tax liabilities for controlled subsidiaries 420,665 371,366 Deferred tax assets for controlled subsidiaries (54,679) (48,669) Goodwill (76,804) (76,804) Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss (36,064) (4,542) Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss - 3,211 Deferred tax liabilities for joint ventures - 5,547 Derivatives at fair value through pro\ufb01t or loss for joint ventures - 399 EPRA Net Reinstatement Value 4,151,839 3,965,430 Net Asset Value per share (euro) 6.42 6.10 EPRA Net Reinstatement Value per share (euro) 6.84 6.51 Number of shares for Net Asset Value/EPRA Net Reinstatement Value (Note 33) 607,000,000 608,994,907 27. NET RENTAL AND RELATED INCOME in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gross rental income 422,051 369,395 Service charge income 199,812 167,324 Gross rental and service charge income 621,863 536,719 Property management fees, tax, insurance and utilities (138,651) (102,605) Property maintenance cost (80,077) (70,752) Net expected credit (losses)/gains (660) 1,294 Property operating expenses (219,388) (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) 2,090 (17,765) TOTAL NET RENTAL AND RELATED INCOME 404,565 346,891 Property management fees, tax, insurance and utility costs presented above are split as follows: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Utility expenses^ (86,183) (57,292) Property related taxes (25,433) (23,236) Property management fees (24,973) (20,276) Property insurance expenses (2,062) (1,801) Property management fees, tax, insurance and utilities (138,651) (102,605) ^The Group acts as principal in relation to the provision of utilities to its tenants. Thus, utility expenses and the corresponding utility recoveries are recognised, on a gross basis, in the Property operating expenses and Service charge income respectively. Property maintenance cost presented above comprises of: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Cleaning and security (32,862) (29,685) Maintenance and repairs (23,545) (21,462) Marketing (17,426) (13,952) Services and related costs (2,688) (3,077) Other (3,556) (2,576) Property maintenance cost (80,077) (70,752) The Group rents its investment property under operating leases of various expiry terms. The standard terms of the leases comprise information relating to leased space, rent, rights and obligations of the landlord and tenant, including notice periods, renewal options and service charge arrangements. For most of the leases, the rent is indexed annually, over the term of the leases. Most retail leases have turnover rent clauses, which imply that if the agreed percentage of turnover from the retail unit under lease exceeds the base rent, the tenant will pay the di\ufb00erence to the Group. A proportion of 4.4% (\u20ac18,758 thousand) of the Gross rental income is represented by the turnover rent (paid on top of \ufb01xed rent) as at 31 December 2022 (31 December 2021: 3.1% (\u20ac11,491 thousand). Lease incentives represent the non-recurring amount granted (in cash or as \ufb01t-out works) by the Group, to a new or an existing tenant, in connection with a new or renewed lease. Lease incentives are straight-lined over the lease term. The lease term corresponds to the contractual duration for the majority of the leases, except for the anchor tenants, for which the lease duration is assessed by the Group based on past experience and taking into account factors such as: GLA of the property where the anchor tenant is located, catchment area, dominance/competition in the catchment area or purchasing power. The future minimum lease payments receivable under non-cancellable operating leases are detailed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 No later than 1 year 397,217 359,971 Between 1-2 years 307,032 294,789 Between 2-3 years 221,625 225,156 Between 3-4 years 150,927 154,503 Between 4-5 years 93,167 97,318 Later than 5 years 147,887 165,611 TOTAL 1,317,855 1,297,348 The breakdown of the net rental and related income by country is disclosed in Note 37. 28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Sta\ufb00 costs The sta\ufb00 costs of the period have been revised and adjusted for in\ufb02ation, increases in minimum and average wages in CEE, in order for the Company to remain competitive in the market. Moreover, for better managing the business, the Company strengthened its internal Group\u2019s organisational structure, in the area of environmental, social and corporate governance (ESG) function and the newly created procurement function. As a result of the relocation to Netherlands, the Company terminated its labour relationship with its employees in the Isle of Man. Starting the last quarter of 2021, the Group embarked on a partial internalisation of property management and selected accounting activities in countries such as Poland, Lithuania, Czech Republic and Hungary, leading to a net increase in the sta\ufb00 costs for the period of \u20ac320 thousand. These expenses overcompensated for the fees with third parties included in the Net Operating Income. The full internalisation of property management activities and accounting in the above-mentioned countries is planned to be completed by mid- 2024, with envisaged improvement of the overall Group performance. Advisory services In the year ended 31 December 2022, the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. Relocation costs During 2022, the relocation of the parent Company from the Isle of Man to Netherlands via Luxembourg as steppingstone was approved by shareholders, with the majority of the implementation already in place. The relocation costs for the period amounted to \u20ac1.6 million (included in the Advisory services). Out of the above administrative expenses, fees related to EY, as the Group\u2019s current auditors and PwC, as the Group\u2019s previous auditor, are summarised below: 31 Dec 2022 in \u20ac thousand Ernst & Young Accountants LLP Other EY network Non-EY network Audit of \ufb01nancial statements (300) (1,143) (96) Other assurance procedures - (177) (24) TOTAL (300) (1,320) (120) in \u20ac thousand 31 Dec 2021 Audit fees (1,138) Other assurance services (180) TOTAL (1,318) 29. EXPENSES WITH LITIGATION CLAIM in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gain from reversal of/ (expenses) with litigation claim 21,304 (37,304) In October 2017, one of the Group's subsidiaries entered into an agreement in relation to the conditional acquisition of an operating shopping centre and a related development, Serenada and Krokus Shopping Centres in Poland. On 1 January 2019, upon the lapse of the respective transaction's long stop date, the subsidiary noti\ufb01ed the counterparty that it had exercised its right to terminate the transaction as the long stop date had passed and certain conditions precedent had not been met. The counterparty consequently initiated arbitration proceedings against the Group, claiming a contractual penalty in the amount of \u20ac30 million. On 31 January 2022, the Group was informed by the Arbitral Tribunal that the arbitrators ordered that the Group is liable to pay the contractual penalty of \u20ac30 million plus accumulated interest and arbitration expenses. A litigation provision expense was previously recognised as a result in the 2021 \ufb01nancial statements for the amount of \u20ac37,304 thousand. Following negotiations between the Company and the counterparty to the initial transaction, the parties agreed on 23 November 2022 on an amicable settlement. Pursuant to the settlement, the Group paid to the counterparty an amount of \u20ac16 million and the parties have reciprocally waived, de\ufb01nitely and irrevocably, all and any present and potential rights and claims arising out of or in connection with the initial purchase transaction and Arbitral Tribunal award. As a result, a gain from the reversal of the di\ufb00erence between the initially provided amount and the settled amount of \u20ac21,304 thousand was recognised in the 2022 \ufb01nancial statements. 30. FAIR VALUE ADJUSTMENTS OF INVESTMENT PROPERTY in \u20ac thousand 31 Dec 2022 31 Dec 2021 Fair value adjustments of investment property in use (Note 9) 134,234 30,306 Fair value adjustments of investment property under development (Note 10) 8,917 4,110 Fair value adjustments of investment property held for sale (Note 15.1) (1,195) 485 Fair value adjustments of right-of-use assets (Note 9) (255) (251) TOTAL 141,701 34,650 31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. 32. FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND LOSSES ON EXTINGUISHMENT OF FINANCIAL INSTRUMENTS The fair value adjustments of derivatives include the fair value gain of \u20ac37,946 thousand (31 December 2021: \u20ac5,174 thousand) from existing interest rate caps and swaps. These include a fair value gain of \u20ac4.1 million from pre-hedging \u20ac250 million of the bond issued in January 2022. At 31 December 2022, losses on extinguishment of \ufb01nancial instruments include the premium paid on repurchase of bond notes due in 2023 of \u20ac21,925 thousand (31 December 2021: nil) (refer to Note 19). 33. BASIC AND DILUTED EARNINGS PER SHARE The calculation of basic and diluted earnings per share for the year ended 31 December 2022 was based on the pro\ufb01t attributable to equity holders of \u20ac435,167 thousand (31 December 2021: \u20ac235,004 thousand) and the weighted average number of shares. \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Pro\ufb01t for the year attributable to equity holders 435,167 235,004 Basic weighted average number of shares 607,756,809 608,994,907 Diluted weighted average number of shares 608,529,063 608,994,907 Basic earnings per share (euro cents) attributable to equity holders 71.60 38.59 Diluted earnings per share (euro cents) attributable to equity holders 71.51 38.59 Weighted and diluted weighted average number of shares for basic and diluted earnings per share purposes are detailed below: 2022 Event Number of shares Cumulative number of shares after equity-related transactions % of period Weighted average 01/01/2022 Opening balance 608,994,907 608,994,907 77% 466,784,558 07/10/2022 Repurchase of shares** (1,994,907) 607,000,000 23% 141,744,505 31/12/2022 Diluted weighted average number of shares 608,529,063 E\ufb00ect of unvested shares under LTSIP (772,254) Basic weighted average number of shares 607,756,809 **The shares were repurchased between 29 September and 12 October 2022 from the cash available within the Company. Subsequently, the repurchased shares were cancelled. In 2021, there have been no movement in the number of shares of the Company. 34. HEADLINE EARNINGS AND DILUTED HEADLINE EARNINGS PER SHARE The starting point is for headline earnings per share calculation are earnings as determined in IAS 33, excluding \u201cseparately identi\ufb01able re-measurements\u201d, net of related tax (both current and deferred) and minority interest, other than re-measurements speci\ufb01cally included in headline earnings (referred to as included re-measurements), in terms of Circular 1/2021 issued by South African Institute of Chartered Accountants (SAICA). The calculation of headline earnings per share for the year ended 31 December 2022 was based on headline earnings of \u20ac313,186 thousand (31 December 2021: of \u20ac204,177 thousand) and the weighted average number of shares. Reconciliation of pro\ufb01t for the year to headline earnings \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Pro\ufb01t for the year attributable to equity holders 435,167 235,004 Fair value adjustments of investment property (Note 30) (141,701) (34,650) Gain on disposal of assets held for sale (Note 15) (1,121) (1,995) Tax e\ufb00ects of adjustments for controlled subsidiaries 22,212 5,204 Fair value adjustment of investment property for joint ventures (1,632) 731 Tax e\ufb00ects of adjustments for joint ventures 261 (117) HEADLINE EARNINGS 313,186 204,177 Basic weighted average number of shares 607,756,809 608,994,907 Diluted weighted average number of shares 608,529,063 608,994,907 Headline earnings per share (euro cents) 51.53 33.53 Diluted headline earnings per share (euro cents) 51.47 33.53 35. SIGNIFICANT ASSET DEALS Acquisition of land for development In February 2022, NEPI Rockcastle acquired a land plot in Galati, Romania for a cash consideration \u20ac18,201 thousand, for a mixed-use real estate project. As part of the medium and long-term local expansion strategy, the envisaged development will consolidate the Group\u2019s position in Galati and in the region. Acquisition of supplementary units in Mammut Shopping Center During 2022, the Group acquired supplementary units (asset deal) in Mammut Shopping Center (Budapest, Hungary), for a consideration paid of \u20ac1.3 million (2021: \u20ac12.5 million). Acquisition of non-controlling interest In March 2022, the Group acquired the remaining non-controlling stakes in ACE3 Sp.zo.o. and Monarda Sp. z o.o. of 15% in 10% respectively, for a cash consideration of \u20ac9.4 million, thus obtaining 100% control in the two Polish entities. Ploiesti Shopping City On 1 September 2022, the Group completed the acquisition of joint-venture partner\u2019s remaining 50% stake in Ploiesti Shopping City SRL, the owner of Ploiesti Shopping City mall. The acquisition was recognized as a property asset acquisition as the Company does not represent a business as de\ufb01ned by IFRS 3. The Group followed the \u2018accumulated cost approach\u2019 for recognition of the previously held interest, whereby the carrying amount of the joint venture is considered the relevant cost in accounting for the acquisition of the subsidiary. Accordingly, no gain or loss was recorded on the acquisition of the subsidiary. The deemed cost of the previously held interest was \u20ac50,297 thousand. The consideration for the acquisition was allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax was recognised. The carrying amount of the identi\ufb01able assets and liabilities at the date of acquisition was as follows, in \u20ac thousand: Investment property in use 104,287 Investment property under development 1,700 Trade and other receivables 3,595 Cash and cash equivalents 16,747 Identi\ufb01able acquired assets 126,329 Current \ufb01nancial debt (18,432) Other long-term liabilities (552) Trade and other payables (1,746) Identi\ufb01able acquired liabilities (20,730) Net identi\ufb01able assets 105,599 The net cash out\ufb02ow connected with the acquisition (cash out\ufb02ow adjusted for working capital items, less cash and cash equivalents acquired) amounted to \u20ac36,980 thousand for the purchase of the remaining 50% stake in the property. No acquisition costs were incurred. Copernicus Shopping Centre On 19 December 2022, the Group acquired Atrium Copernicus Sp. Zo.o., the legal entity that owns Copernicus Shopping Centre in Torun, Poland. The acquisition was recognised as a property asset acquisition as the Company does not represent a business as de\ufb01ned by IFRS 3. The carrying value of the identi\ufb01able assets and liabilities at the date of acquisition was as follows, in \u20ac thousand: Investment property in use 122,841 Investment property under development 1,030 Trade and other receivables 853 Cash and cash equivalents 1,689 Identi\ufb01able acquired assets 126,413 Other long-term liabilities (482) Trade and other payables (1,227) Identi\ufb01able acquired liabilities (1,709) Net identi\ufb01able assets 124,704 Net identi\ufb01able assets of the subsidiary acquired at the date of acquisition amounted to \u20ac124,704 thousand. The net cash out\ufb02ow connected with the acquisition (cash out\ufb02ow adjusted for working capital items, less cash and cash equivalents acquired) amounted to \u20ac121,645 thousand, the remaining di\ufb00erence to the net asset value being an accrued payable adjustment to the purchase price paid. Acquisition costs of \u20ac1,434 thousand were capitalised on the value of investment property. The investment property re\ufb02ected above does not include the right-of-use assets and related lease liability, of \u20ac3,843 thousand, connected to the land under concession of Copernicus Shopping Centre. Forum Gdansk Shopping Center On 19 December 2022, the Group acquired Forum Gdansk Sp. Zo.o., the legal entity that owns Forum Gdansk Shopping Centre in Poland. The acquisition was recognized as a property asset acquisition as the Company does not represent a business as de\ufb01ned by IFRS 3. The carrying amount of the identi\ufb01able assets and liabilities at the date of acquisition was as follows, in \u20ac thousand: Investment property 243,646 Trade and other receivables 2,653 Cash and cash equivalents 7,815 Identi\ufb01able acquired assets 254,114 Other long-term liabilities (1,176) Trade and other payables (3,308) Identi\ufb01able acquired liabilities (4,484) Net identi\ufb01able assets 249,630 Net identi\ufb01able assets of the subsidiary acquired at the date of acquisition amounted to \u20ac249,630 thousand. The net cash out\ufb02ow connected with the acquisition (cash out\ufb02ow adjusted for working capital items, less cash and cash equivalents acquired) amounted to \u20ac195,101 thousand. In addition to the cash paid, the Group obtained vendor \ufb01nancing on the transaction in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand. Accrued receivable from the seller of \u20ac3,286 thousand was recognised as adjustment to the purchase price paid. Acquisition costs of \u20ac1,995 thousand were capitalised on the value of investment property. 36. JOINT VENTURES The Group had an investment of 50% together with its joint venture partner, Carrefour Romania S.A., in Ploiesti Shopping City, a shopping centre located in Ploiesti, Romania. In September 2022 the Group completed the acquisition of the remaining 50% stake in Ploiesti Shopping City to become the sole owner of the property. The summarised \ufb01nancial statements of the joint ventures are presented below at 100%. The \u201cInvestments in joint ventures\u201d line on the Consolidated Statement of \ufb01nancial position represents 50% of the line \u201cEquity attributable to equity holders\u201d, as shown below. The \u201cShare of pro\ufb01t of joint ventures\u201d line on the Consolidated Statement of comprehensive income represents 50% of the line \u201cPro\ufb01t for the period attributable to equity holders\u201d, as presented below for the period in 2022 where Ploiesti Shopping City was a joint venture (up to 1 September 2022). Statement of \ufb01nancial position in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Non-current assets - 109,130 Current assets - 16,439 Total Assets - 125,569 Non-current liabilities - (74,548) Current liabilities - (3,703) Total Liabilities - (78,251) Equity attributable to equity holders - (47,318) TOTAL EQUITY AND LIABILITIES - (125,569) INVESTMENT IN JOINT VENTURES (50% of the equity attributable to equity holders) - 23,659 Statement of comprehensive income in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Revenue from rent and recoveries 8,648 12,971 Property operating expenses (2,689) (3,369) Partial forgiveness of receivables (Covid-19 forgiveness) 48 (254) Administrative expenses (176) (320) Fair value adjustment investment property 3,264 (1,462) Foreign exchange (loss)/gain (122) 1 Pro\ufb01t before net \ufb01nance costs and other items 8,973 7,567 Finance income 85 16 Finance costs (2,452) (3,695) Bank charges, commissions, and fees 6 (7) Fair value adjustments of derivatives and losses on extinguishment of \ufb01nancial instruments 814 577 Pro\ufb01t before tax 7,426 4,458 Income tax expense (866) (654) PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS 6,560 3,804 Share of pro\ufb01t of joint venture (50% of the Pro\ufb01t of the period) 3,280 1,902 Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Long-term loans granted to joint ventures - 22,466 Included within the balances above from the Statement of \ufb01nancial position are the following: in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Cash and cash equivalents - 13,297 Bank loans (non-current liabilities) - (17,316) Bank loans (current liabilities) - (2,144) The joint venture Ploiesti Shopping City had a secured term loan, which was repaid in full in September 2022. 37. SEGMENT REPORTING Reporting segments are retail, o\ufb03ce, residential, industrial and corporate, and the Group primarily manages operations in accordance with this classi\ufb01cation. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated on a reasonable basis. The measure of segment performance is Pro\ufb01t before net \ufb01nance costs and other items, as disclosed in the following tables. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets. Segment assets represent investment property. Segment liabilities represent loans and borrowings, as these are the only liabilities reported on a segmental basis. Segment results 31 Dec 2022 in \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 414,712 5,375 1,964 - - 422,051 Service charge income 197,396 2,060 356 - - 199,812 Property operating expenses (216,326) (2,460) (602) - - (219,388) Partial forgiveness of receivables (Covid-19 forgiveness) 2,097 (7) - - - 2,090 Net rental and related income 397,879 4,968 1,718 - - 404,565 Administrative expenses (14,857) (363) (77) (212) (14,872) (30,381) Reversal of/(expenses) with litigation claim - - - - 21,304 21,304 EBIT* 383,022 4,605 1,641 (212) 6,432 395,488 Fair value adjustments of investment property 142,975 (1,421) 147 - - 141,701 Foreign exchange (loss)/gain 1,722 (1) 3 27 (166) 1,585 Gain on disposal of assets held for sale - - - - 1,121 1,121 Pro\ufb01t before net \ufb01nance costs and other items 527,719 3,183 1,791 (185) 7,387 539,895 Finance income 3,511 3,511 Finance costs (56,802) (56,802) Bank charges, commissions and fees (4,298) (4,298) Fair value adjustments of derivatives 37,946 37,946 Losses on extinguishment of \ufb01nancial instruments (21,925) (21,925) Share of pro\ufb01t of Joint Ventures 3,280 3,280 Pro\ufb01t/(Loss) before tax (30,901) 501,607 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses) Segment results 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 362,321 5,310 1,764 - - 369,395 Service charge income 165,129 1,853 342 - - 167,324 Property operating expenses (169,649) (1,963) (451) - - (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) (17,753) (12) - - - (17,765) Net rental and related income** 340,048 5,188 1,655 - - 346,891 Administrative expenses (12,939) (328) (60) (153) (11,185) (24,665) Expenses with litigation claim - - - - (37,304) (37,304) EBIT* 327,109 4,860 1,595 (153) (48,489) 284,922 Fair value adjustments of investment property 36,592 (3,299) 1,321 36 - 34,650 Foreign exchange (loss)/gain (1,008) (12) (26) (3) 114 (935) Gain on disposal of assets held for sale - - - - 1,995 1,995 Pro\ufb01t/(Loss) before net \ufb01nance costs and other items 362,693 1,549 2,890 (120) (46,380) 320,632 Finance income 1,423 1,423 Finance costs (62,649) (62,649) Bank charges, commissions and fees (4,496) (4,496) Fair value adjustments of derivatives 5,174 5,174 Share of pro\ufb01t of Joint Ventures 1,902 1,902 Pro\ufb01t/(Loss) before tax (105,026) 261,986 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses). **Out of the total Net rental and related income associated to the Retail segment, \u20ac2.5 million relates to the two Serbian properties disposed of on 12 July 2021. Segment assets and liabilities 31 Dec 2022 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT ASSETS Non-current assets 6,613,203 71,406 18,540 18 61,088 6,764,255 Investment property 6,507,805 69,800 18,532 - - 6,596,137 \u2014 Investment property in use 6,243,497 69,800 18,496 6,331,793 \u2014 Investment property under development 264,308 - 36 - - 264,344 Goodwill 70,922 - - - 5,882 76,804 Deferred tax assets 26,779 1,573 - - 26,327 54,679 Other long-term assets 5,183 33 8 18 5,808 11,050 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss 2,514 - - - 23,071 25,585 Current assets 217,333 3,195 1,668 25,063 120,041 367,300 Trade and other receivables 75,583 947 143 4,000 4,823 85,496 Inventory property - - - 20,694 - 20,694 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss through pro\ufb01t or loss ST 3,075 - - - 7,404 10,479 Cash and cash equivalents 138,675 2,248 1,525 369 107,814 250,631 Assets held for sale 18,055 630 - - - 18,685 TOTAL ASSETS 6,848,591 75,231 20,208 25,081 181,129 7,150,240 Segment assets and liabilities 31 Dec 2022 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT LIABILITIES Non-current liabilities 760,126 2,230 1,927 3,427 2,284,663 3,052,373 Loans from third party - - - - 33,333 33,333 Bank loans 274,122 - - - 272,622 546,744 Bonds - - - - 1,978,708 1,978,708 Deferred tax liabilities 416,529 1,438 1,587 - - 419,554 Lease liabilities 36,368 - - - - 36,368 Other long-term liabilities 33,107 792 340 3,427 - 37,666 Current liabilities 143,981 1,464 462 1,118 51,003 198,028 Trade and other payables 132,381 1,464 462 1,118 19,577 155,002 Loans from third party - - - - 16,774 16,774 Bank loans 10,768 - - - 389 11,157 Bonds - - - - 14,263 14,263 Lease liabilities 832 - - - - 832 Liabilities associated with assets held for sale 1,118 - - - - 1,118 TOTAL LIABILITIES 905,225 3,694 2,389 4,545 2,335,666 3,251,519 Segment assets and liabilities 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT ASSETS Non-current assets 5,889,465 72,168 17,985 - 47,653 6,027,271 Investment property 5,752,991 70,700 17,985 - - 5,841,676 \u2014 Investment property in use 5,582,091 70,700 17,985 - - 5,670,776 \u2014 Investment property under development 170,900 - - - - 170,900 Goodwill 70,922 - - - 5,882 76,804 Deferred tax assets 16,335 1,457 - - 30,877 48,669 Investments in joint ventures 23,659 - - - - 23,659 Long-term loans granted to joint ventures 22,466 - - - - 22,466 Other long-term assets 3,092 11 - - 6,352 9,455 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss - - - - 4,542 4,542 Current assets 228,760 2,555 1,600 10,868 325,334 569,117 Trade and other receivables 56,858 782 101 1,109 2,122 60,972 Inventory property - - - 9,522 - 9,522 Cash and cash equivalents 171,902 1,773 1,499 237 323,212 498,623 Assets held for sale 1,138 614 - - - 1,752 TOTAL ASSETS 6,119,363 75,337 19,585 10,868 372,987 6,598,140 Segment assets and liabilities 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT LIABILITIES Non-current liabilities 663,259 1,847 1,748 217 2,049,243 2,716,314 Bank loans 225,247 - - - 71,908 297,155 Bonds - - - - 1,977,191 1,977,191 Deferred tax liabilities 368,832 1,097 1,437 - - 371,366 Lease liabilities 32,779 - - - - 32,779 Other long-term liabilities 33,332 750 311 217 2 34,612 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 3,069 - - - 142 3,211 Current liabilities 100,313 859 253 32 60,127 161,584 Trade and other payables 92,050 859 253 32 11,775 104,969 Provisions for litigations - - - - 37,304 37,304 Bank loans 7,431 - - - - 7,431 Bonds - - - - 11,048 11,048 Lease liabilities 832 - - - - 832 TOTAL LIABILITIES 763,572 2,706 2,001 249 2,109,370 2,877,898 The Group\u2019s geographical breakdowns per country are detailed below: Country results 31 Dec 2022 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 158,182 305,661 2,441,758 Poland 80,371 59,623 1,802,833 Slovakia** 35,064 32,496 523,283 Hungary 35,101 25,086 585,900 Bulgaria 40,525 49,465 505,543 Croatia 20,978 28,733 272,490 Serbia 12,138 16,530 137,100 Lithuania 10,762 17,388 152,030 Czech Republic 11,444 11,909 175,200 Corporate* - (45,284) - Total 404,565 501,607 6,596,137 *The Corporate segment represents head o\ufb03ce and administrative o\ufb03ces **Investment property excludes held for sale portfolio. Country results 31 Dec 2021 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 140,186 173,326 2,081,853 Poland 62,728 40,071 1,426,810 Slovakia 32,075 35,490 531,485 Hungary 30,823 27,663 590,200 Bulgaria 30,220 35,991 493,765 Croatia 19,238 20,615 264,190 Serbia^ 12,723 13,824 134,778 Lithuania 9,740 10,483 144,095 Czech Republic 9,158 9,823 174,500 Corporate* - (105,300) - Total 346,891 261,986 5,841,676 *The Corporate segment represents head o\ufb03ce, administrative o\ufb03ces, and listed securities entity disposed of in May 2021 ** Investment property excludes held for sale portfolio ^ Out of the total Net rental and related income for 2021, \u20ac2.5 million relates to the two Serbian properties (disposed of on 12 July 2021). RECONCILIATION OF PROFIT FOR THE YEAR TO DISTRIBUTABLE EARNINGS \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Pro\ufb01t per IFRS Statement of comprehensive income attributable to equity holders 435,167 235,004 Accounting speci\ufb01c adjustments (118,112) (25,391) Fair value adjustments of investment property for controlled subsidiaries (141,701) (34,650) Depreciation and amortisation expense (in relation to property, plant and equipment of an administrative nature) 1,469 643 Fair value adjustments of derivatives (37,946) (5,174) Losses on extinguishment of \ufb01nancial instruments 21,925 - Amortisation of \ufb01nancial assets (1,940) (1,189) Deferred tax expense for controlled subsidiaries 43,266 16,643 Gain on disposal of assets held for sale (1,121) (1,995) Adjustments related to joint ventures: (1,727) 502 Fair value adjustment investment property for joint ventures (1,632) 731 Fair value adjustments of derivatives for joint ventures (407) (289) Depreciation in relation to property, plant and equipment of an administrative nature for joint venture (32) - Deferred tax expense for joint ventures 344 60 Adjustments related to non-controlling interest: 7 (171) RECONCILIATION OF PROFIT FOR THE YEAR TO DISTRIBUTABLE EARNINGS \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Fair value adjustment investment property for non-controlling interest (1) (120) Deferred tax income/(expense) for non-controlling interest 8 (51) Antecedent earnings (344) - Distributable earnings 317,055 209,613 Interim distributable earnings (139,058) (107,409) Final distributable earnings (177,997) (102,204) Distributable earnings per share (euro cents) 52.15 34.42 Interim distributable earnings per share (euro cents) 22.83 17.64 Final distributable earnings per share (euro cents) 29.32 16.78 Distribution declared 308,155 209,613 Interim distribution 139,058 107,409 Final distribution 169,097 102,204 Distribution declared per share (euro cents) 50.68 34.42 Interim distribution per share (euro cents) 22.83 17.64 Final distribution per share (euro cents) 27.85 16.78 Earnings not distributed 8,900 - Earnings not distributed per share (euro cents) 1.47 - Number of shares entitled to interim distribution 608,994,907 608,994,907 Number of shares entitled to \ufb01nal distribution 607,000,000 608,994,907 Distributable earnings per share is prepared on a basis that is consistent with SA REIT funds from operations (SA REIT FFO) as set out in the SA REIT Association\u2019s Best Practice Recommendations Second Edition. 38. CASH FLOW FROM OPERATIONS \u20ac thousand Note 31 Dec 2022 31 Dec 2021 OPERATING ACTIVITIES Pro\ufb01t after tax 435,273 235,069 Adjustments (56,340) 89,702 Fair value adjustments of investment property 30 (141,701) (34,650) Foreign exchange (gain)/loss (1,585) 935 Gain on disposal of assets held for sale 15 (1,121) (1,995) Net \ufb01nance costs 31 57,589 65,722 Fair value adjustments of derivatives 32 (37,946) (5,174) Losses on extinguishment of \ufb01nancial instruments 21,925 - Deferred tax expense 25 43,266 16,643 Current tax expense 25 23,068 10,274 Depreciation expense for property, plant and equipment 1,469 643 (Reversal of)/ Expense with litigation claim 29 (21,304) 37,304 Changes in working capital (3,571) (740) (Increase) in trade and other receivables (12,484) (6,063) Increase in trade and other payables 20,085 11,545 (Increase) in Inventory property (11,172) (6,222) Net cash \ufb02ow from operations 375,362 324,031 39. GUARANTEES HELD AND COMMITMENTS Guarantees As at 31 December 2022, the Group had received letters of guarantee from tenants worth \u20ac108,406 thousand (31 December 2021: \u20ac107,078 thousand) and from suppliers worth \u20ac62,692 thousand (31 December 2021: \u20ac16,351 thousand) related to ongoing developments. Commitments In 2023, the Group estimates to invest \u20ac223 million in development and capital expenditure related to its ongoing projects or new development opportunities, out of which only a portion is already contracted at reporting date. 40. RELATED PARTY TRANSACTIONS Identity of related parties with whom material transactions have occurred The Directors and jointly controlled entities are related parties for the Group. Material related party transactions Fees paid to Directors, together with the performance bonus, during the current and previous year are detailed below. No other payments were made to Directors by NEPI Rockcastle, except reimbursements for travel and accommodation. Transactions with joint ventures are presented in Note 36. 31 Dec 2022 31 Dec 2021 in \u20ac thousand Directors\u2019 fees 2022 performance related remuneration 2021 performance related remuneration Interim period related remuneration (one o\ufb00) Directors\u2019 fees 2020 performance related remuneration R\u00fcdiger Dany 1 517 870 200 200 202 - Eliza Predoiu 2 253 490 - 150 - - Marek Noetzel 3 329 518 225 - 300 30 Alex Morar 4 188 - - - 600 60 Mirela Covasa 5 147 - - - 400 40 Robert Emslie 6 * - - - - 78 - George Aase 7 * 102 - - - 113 - Antoine Dijkstra* 88 - - - 104 - Andre van der Veer* 98 - - - 116 - Andreas Klingen* 89 - - - 103 - Steven Brown 75 - - - 84 - Andries de Lange 63 - - - 74 - Jonathan Lurie 8 68 - - - 25 - Ana Maria Mihaescu 9 74 - - - 27 - TOTAL 2,091 1,878 425 350 2,226 130 1 Mr. R\u00fcdiger Dany was appointed as Executive Director and Chief Operating O\ufb03cer of the Group with e\ufb00ect from 18 August 2021. From 1 February 2022 he was appointed as interim CEO and from 1 June 2022 he was con\ufb01rmed in his role on a permanent basis. 2 Ms. Eliza Predoiu was appointed as interim CFO of the Group with e\ufb00ect from 1 February 2022 and from 1 June 2022 she was con\ufb01rmed in her role on a permanent basis. 3 Mr. Marek Noetzel, an Executive Director of the Group, was appointed as Chief Operating O\ufb03cer e\ufb00ective from 1 June 2022. 4 Mr. Alex Morar resigned from his position of Chief Operating O\ufb03cer e\ufb00ective from 1 February 2022. The fees for 2022 include a non-compete compensation of \u20ac120 thousand. 5 Ms Mirela Covasa resigned from her position of Chief Financial O\ufb03cer e\ufb00ective from 1 February 2022. The fees for 2022 include a non-compete compensation of \u20ac100 thousand. 6 Mr Robert Emslie has retired from his position as non-Executive Director and Chairman of the Board of Directors e\ufb00ective 18 August 2021. 7 Mr. George Aase was appointed as Chairman of the Board of Directors e\ufb00ective 18 August 2021. 8 Mr. Jonathan Lurie was appointed as an Independent non-Executive Director with e\ufb00ect from 18 August 2021. 9 Ms. Ana Maria Mihaescu was appointed as an Independent non-Executive Director with e\ufb00ect from 18 August 2021. *The remuneration of the non-Executive Directors for the year includes a cumulative amount of \u20acnil thousand (2021: \u20ac107 thousand) paid for one-o\ufb00 services performed during the previous year. a. Shares held under the Share Purchase Schemes^: Name of Director Number of shares held as at 31 Dec 2022 Number of shares held as at 31 Dec 2021 Marek Noetzel 88,358 88,358 TOTAL 88,358 88,358 ^Shares presented in the table above are pledged as security for the loan under Share Purchase Scheme. b. Shares unvested under the LTSIP Name of Director Number of shares unvested at 31 Dec 2022 Number of shares unvested at 31 Dec 2021 R\u00fcdiger Dany 137,945 - Eliza Predoiu 22,000 16,966 Marek Noetzel 78,394 93,995 TOTAL 238,339 110,961 As a result of the exit arrangements signed with the former CEO and CFO during 2021, the Company transferred to them 299,587 shares and 214,053 shares respectively, representing the total number of unvested shares as at exit date from the previous 2017 \u2013 2021 awards. The shares have an associated selling restriction correlated with the initial vesting of each tranche. The Group accounted for the related expense associated with this transfer in the 2021 \ufb01nancial statements. The share based payment expense related to the directors of the Group amounted to \u20ac262 thousand in 2022 (31 December 2021: \u20ac4,325 thousand). The directors of the Group hold 739,612 shares as at 31 December 2022 (31 December 2021: 2,356,717 shares), which represents 0.12% of the outstanding shares (31 December 2021: 0.38% of the outstanding shares). Out of the above- mentioned shareholding, 283,397 shares (31 December 2021: 130,297 shares) which represent 0.05% of the outstanding shares (31 December 2021: 0.02% of the outstanding shares) are held by the non-executive directors. There were no changes to the Director\u2019s interests from 31 December 2022 to the approval of the annual audited Consolidated Financial Statements. Other than as set out in note 40(a) above, none of the shares of the Director are subject to security, guarantee, collateral and they are not encumbered in any way. c. Advisory services As mentioned in note 28, \u201cAdministrative expenses\u201d, in 2022 the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. 41. SUBSEQUENT EVENTS Subsequent to the year-end, the Group signed a secured green portfolio \ufb01nancing of \u20ac200 million for a 5-year term. The disbursement of the loan, subject to conditions precedent, is expected to occur by the end of April 2023. The funding has been secured for a competitive pricing, in the current market conditions, by reference to Euribor rates. The proceeds will be used for debt repayment (revolving credit facilities) and general corporate purposes. The Directors are not aware of any other subsequent events from 31 December 2022 and up to the date of signing these Consolidated Financial Statements which are likely to have a material e\ufb00ect on the \ufb01nancial information contained in this report. ",
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"value": "* Out of the total Net rental and related income for 2021, \u20ac2.5 million relates to the two Serbian properties (disposed of on 12 July 2021). **EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses) ^Subheadings \u201cNet \ufb01nance costs\u201d and \u201cOther items\u201d shown in the Statement of comprehensive income at 31 December 2021 were removed in this Statement of comprehensive income, to ease understanding. *At 31 December 2021, \u201cLease liabilities\u201d (with a carrying amount of \u20ac33,612 thousand) were presented in line \u201cOther long-term liabilities\u201d. At 31 December 2022, these are presented on separate lines within \"Non-current liabilities\" (long-term portion) and \u201cCurrent liabilities\u201d (short-term portion), with corresponding comparatives re-classi\ufb01ed accordingly, to enhance presentation. ** At 31 December 2021, \u201cProvisions for litigations\u201d (with a carrying amount of \u20ac37,304 thousand) were presented in line \u201cTrade and other payables\u201d. At 31 December 2022, these are presented on a separate line, with corresponding comparative re-classi\ufb01ed accordingly, to enhance presentation. ***EPRA Net Reinstatement Value per share (non-IFRS measure) is Net Asset Value per share adjusted for the e\ufb00ect of non-monetary balance sheet items, such as deferred tax, goodwill and interest rate derivatives. *LTSIP = debt free Long-Term Share Incentive Plan with a vesting component. ^ Share premium movement \u2013 In June 2021, the Group transferred \u20ac1,500,000 thousand from share premium to accumulated pro\ufb01t. After a thorough reassessment, the Company decided to maintain the reserves as they were accounted for previously to the transfer from June, and thus, unwound the respective transfer in December 2021. ^^ During 2022, \u20ac350,000 thousand were transferred from share premium to accumulated pro\ufb01t, to ensure positive retained earnings at stand-alone parent Company level. ",
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"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"f20910": {
"value": "1. GENERAL NEPI Rockcastle N.V. (\u201cthe Company\u201d, \u201cNEPI Rockcastle\u201d, \u201cthe Group\u201d) is a public limited company domiciled in the Netherlands, having its registered o\ufb03ce at Claude Debussylaan 7-29, 1082 MC Amsterdam, with registration number at the Dutch Chamber of Commerce 87488329. The Company\u2019s shares are listed on the Main Board of the Johannesburg Stock Exchange Limited (\u201cJSE\u201d), Euronext Amsterdam and A2X. NEPI Rockcastle is the premier owner and operator of shopping centres in Central and Eastern Europe (\u201cCEE\u201d). The Group bene\ufb01ts from a highly-skilled internal management team which combines asset management, development, investment, leasing and \ufb01nancial expertise. The Company was incorporated in the Isle of Man on 1 December 2016. On 29 November 2021, the Board of Directors (the \u201cBoard\u201d) approved the migration of NEPI Rockcastle from the Isle of Man to the Netherlands, via an initial migration to Luxembourg (together, the \u201cMigration\u201d). Structured in this way, the migration of the Company to the Netherlands ensured the corporate continuity of NEPI Rockcastle and the trading in Group shares, which remain available to be traded on the JSE, Euronext Amsterdam and A2X. On 10 May 2022, the Migration was approved by the Shareholders of the Company. As a result, following ful\ufb01lment of certain conditions precedent, the Group has, with e\ufb00ect from 6 September 2022, established its registered o\ufb03ce and place of e\ufb00ective management and central administration in the Netherlands as a public limited liability company.The Group\u2019s Consolidated Financial Statements and the Company\u2019s Separate Financial Statements are collectively referred to as the Financial Statements. The Financial Statements for the year ended 31 December 2022 were approved by the Board of Directors on 21 March 2023 and authorised for publication on 22 March 2023. 2. BASIS OF PREPARATION d. Presentation The Consolidated Financial Statements are presented in thousands of Euros (\u201c\u20ac\u2019000s\u201d), rounded o\ufb00 to the nearest thousand, unless stated otherwise. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20911": {
"value": "1. GENERAL NEPI Rockcastle is the premier owner and operator of shopping centres in Central and Eastern Europe (\u201cCEE\u201d). The Group bene\ufb01ts from a highly-skilled internal management team which combines asset management, development, investment, leasing and \ufb01nancial expertise. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20912": {
"value": "1. GENERAL The Financial Statements for the year ended 31 December 2022 were approved by the Board of Directors on 21 March 2023 and authorised for publication on 22 March 2023. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20916": {
"value": "NEPI Rockcastle N.V. ",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20917": {
"value": " the Netherlands",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20920": {
"value": "Claude Debussylaan 7-29, 1082 MC Amsterdam",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20929": {
"value": "the Netherlands",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20936": {
"value": "a public limited liability company.",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20943": {
"value": "2. BASIS OF PREPARATION a. Statement of compliance The Consolidated Financial Statements have been consistently prepared in accordance with International Financial Reporting Standards (\u2018IFRS\u2019) as issued by the International Accounting Standards Board (\u2018IASB\u2019), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings Requirements, International Financial Reporting Standards (\u2018IFRS\u2019) as adopted by the European Union and with Title 9 of Book 2 of the Dutch Civil Code. They comprise the Company and its subsidiaries, as detailed in \u201cBasis of consolidation\u201d in Note 4.2. The signi\ufb01cant accounting policies applied in the preparation of these Consolidated Financial Statements are set out below in Note 4 and are consistent with those applied for the preparation of the annual Consolidated Financial Statements as at 31 December 2021, except for the new mandatory standards and interpretations described below: \u2022 IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. \u2022 IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company recognizes such sales proceeds and related cost in pro\ufb01t or loss. \u2022 IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost of ful\ufb01lling a contract for the purpose of assessing whether a contract is onerous. \u2022 Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. \u2022 IFRS 16 Leases-Covid-19 Related Rent Concessions beyond 30 June 2021 (Amendment) The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with earlier application permitted, including in \ufb01nancial statements not yet authorized for issue at the date the amendment is issued. In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees from applying the IFRS 16 guidance on lease modi\ufb01cations to rent concessions arising as a direct consequence of the Covid-19 pandemic. Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments a\ufb00ects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met. These standards, amendments and interpretations did not have a signi\ufb01cant impact on the Consolidated Financial Statements as at 31 December 2022. Management has prepared the \ufb01nancial statements on a going concern basis. Having considered the potential impact of the con\ufb02ict in Ukraine and the overall macroeconomic environment on the Company\u2019s and the wider NEPI Rockcastle Group revenues, pro\ufb01ts, cash \ufb02ows, operations, liquidity position and debt facilities, management concluded that despite the market events generated by these circumstances during 2022 and subsequent to the year-end, there are no material uncertainties relating to the Group\u2019s ability to continue as a going concern. In preparing the Consolidated Financial Statements, management has considered the impact of climate change. These considerations did not have a material impact on the Financial Statements, including \ufb01nancial reporting judgements and estimates. NEPI Rockcastle is aware that climate change will impact both its own operations as well as those of its value chain partners. With increasing greenhouse gases discharge into the atmosphere, the climate changes. This causes climate shocks and stressors that buildings have to withstand. The Group\u2019s strategy is based on adopting climate-resilient activities and on reducing the carbon emissions resulting from its operations. The Group assessed and regularly monitors climate change risks, both the physical and the transitional ones. The Group\u2019s commitment to sustainability is illustrated in its high share of BREEAM certi\ufb01ed buildings, in the increased use of energy from certi\ufb01ed renewable sources across the Group, with year-on-year remarkable progress and in the continuation of energy e\ufb03ciency initiatives. b. Basis of measurement The Consolidated Financial Statements are prepared on the historical cost basis, except for investment property in use, land for investment property under development, and interest rate derivatives, which are measured at fair value. c. Use of estimates and judgements The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgements, estimates and assumptions that a\ufb00ect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimates and associated assumptions are based on experience and other factors believed to be reasonable under the circumstances and enable judgements to be made about the carrying values of assets and liabilities not readily apparent from other sources. Actual results may di\ufb00er from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised and future periods if applicable. d. Presentation The Consolidated Financial Statements are presented in thousands of Euros (\u201c\u20ac\u2019000s\u201d), rounded o\ufb00 to the nearest thousand, unless stated otherwise. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20944": {
"value": "2. BASIS OF PREPARATION a. Statement of compliance The Consolidated Financial Statements have been consistently prepared in accordance with International Financial Reporting Standards (\u2018IFRS\u2019) as issued by the International Accounting Standards Board (\u2018IASB\u2019), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings Requirements, International Financial Reporting Standards (\u2018IFRS\u2019) as adopted by the European Union and with Title 9 of Book 2 of the Dutch Civil Code.",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20945": {
"value": "2. BASIS OF PREPARATION a. Statement of compliance The signi\ufb01cant accounting policies applied in the preparation of these Consolidated Financial Statements are set out below in Note 4 and are consistent with those applied for the preparation of the annual Consolidated Financial Statements as at 31 December 2021, except for the new mandatory standards and interpretations described below: \u2022 IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. \u2022 IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company recognizes such sales proceeds and related cost in pro\ufb01t or loss. \u2022 IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost of ful\ufb01lling a contract for the purpose of assessing whether a contract is onerous. \u2022 Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. \u2022 IFRS 16 Leases-Covid-19 Related Rent Concessions beyond 30 June 2021 (Amendment) The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with earlier application permitted, including in \ufb01nancial statements not yet authorized for issue at the date the amendment is issued. In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees from applying the IFRS 16 guidance on lease modi\ufb01cations to rent concessions arising as a direct consequence of the Covid-19 pandemic. Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments a\ufb00ects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met. These standards, amendments and interpretations did not have a signi\ufb01cant impact on the Consolidated Financial Statements as at 31 December 2022. 4.29 Standards issued but not yet e\ufb00ective and not early adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the Group. IAS 1 Presentation of Financial Statements: Classi\ufb01cation of Liabilities as Current or Non-current (Amendments) The amendments are e\ufb00ective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted, and will need to be applied retrospectively in accordance with IAS 8. The objective of the amendments is to clarify the principles in IAS 1 for the classi\ufb01cation of liabilities as either current or non-current. The amendments clarify the meaning of a right to defer settlement, the requirement for this right to exist at the end of the reporting period, that management intent does not a\ufb00ect current or non-current classi\ufb01cation, that options by the counterparty that could result in settlement by the transfer of the entity\u2019s own equity instruments do not a\ufb00ect current or non-current classi\ufb01cation. Also, the amendments specify that only covenants with which an entity must comply on or before the reporting date will a\ufb00ect a liability\u2019s classi\ufb01cation. Additional disclosures are also required for non-current liabilities arising from loan arrangements that are subject to covenants to be complied with within twelve months after the reporting period. The amendments have not yet been endorsed by the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require renegotiation. IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (Amendments) The Amendments are e\ufb00ective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments provide guidance on the application of materiality judgements to accounting policy disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose \u2018signi\ufb01cant\u2019 accounting policies with a requirement to disclose \u2018material\u2019 accounting policies. Also, guidance and illustrative examples are added in the Practice Statement to assist in the application of the materiality concept when making judgements about accounting policy disclosures. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: De\ufb01nition of Accounting Estimates (Amendments) The amendments become e\ufb00ective for annual reporting periods beginning on or after January 1, 2023 with earlier application permitted and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments introduce a new de\ufb01nition of accounting estimates, de\ufb01ned as monetary amounts in \ufb01nancial statements that are subject to measurement uncertainty, if they do not result from a correction of prior period error. Also, the amendments clarify what changes in accounting estimates are and how these di\ufb00er from changes in accounting policies and corrections of errors. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments) The amendments are e\ufb00ective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments narrow the scope of and provide further clarity on the initial recognition exception under IAS 12 and specify how companies should account for deferred tax related to assets and liabilities arising from a single transaction, such as leases and decommissioning obligations. The amendments clarify that where payments that settle a liability are deductible for tax purposes, it is a matter of judgement, having considered the applicable tax law, whether such deductions are attributable for tax purposes to the liability or to the related asset component. Under the amendments, the initial recognition exception does not apply to transactions that, on initial recognition, give rise to equal taxable and deductible temporary di\ufb00erences. It only applies if the recognition of a lease asset and lease liability (or decommissioning liability and decommissioning asset component) give rise to taxable and deductible temporary di\ufb00erences that are not equal. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IFRS 16 Leases: Lease Liability in a Sale and Leaseback (amendments) The amendments are e\ufb00ective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted. The amendments are intended to improve the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction in IFRS 16, while it does not change the accounting for leases unrelated to sale and leaseback transactions. In particular, the seller-lessee determines \u2018lease payments\u2019 or \u2018revised lease payments\u2019 in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use it retains. Applying these requirements does not prevent the seller-lessee from recognising, in pro\ufb01t or loss, any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendment retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after the date of initial application, being the beginning of the annual reporting period in which an entity \ufb01rst applied IFRS 16. The amendments have not yet been endorsed by the EU. This amendment is not expected to have a material impact on the Group. Amendment in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015 the IASB postponed the e\ufb00ective date of this amendment inde\ufb01nitely pending the outcome of its research project on the equity method of accounting. The amendments have not yet been endorsed by the EU. The Group is currently assessing the impact of the amendments. IFRS 17: Insurance Contracts The standard is e\ufb00ective for annual periods beginning on or after 1 January 2023 with earlier application permitted, provided the entity also applies IFRS 9 Financial Instruments on or before the date it \ufb01rst applies IFRS 17. This is a comprehensive new accounting standard for insurance contracts, covering recognition and measurement, presentation and disclosure. IFRS 17 applies to all types of insurance contracts issued, as well as to certain guarantees and \ufb01nancial instruments with discretional participation contracts. The Group does not issue contracts in scope of IFRS 17; therefore its application does not have an impact on the Group\u2019s \ufb01nancial performance, \ufb01nancial position or cash \ufb02ows. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20946": {
"value": "2. BASIS OF PREPARATION a. Statement of compliance The signi\ufb01cant accounting policies applied in the preparation of these Consolidated Financial Statements are set out below in Note 4 and are consistent with those applied for the preparation of the annual Consolidated Financial Statements as at 31 December 2021, except for the new mandatory standards and interpretations described below: \u2022 IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. \u2022 IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company recognizes such sales proceeds and related cost in pro\ufb01t or loss. \u2022 IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost of ful\ufb01lling a contract for the purpose of assessing whether a contract is onerous. \u2022 Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases. \u2022 IFRS 16 Leases-Covid-19 Related Rent Concessions beyond 30 June 2021 (Amendment) The Amendment applies to annual reporting periods beginning on or after 1 April 2021, with earlier application permitted, including in \ufb01nancial statements not yet authorized for issue at the date the amendment is issued. In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees from applying the IFRS 16 guidance on lease modi\ufb01cations to rent concessions arising as a direct consequence of the Covid-19 pandemic. Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments a\ufb00ects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met. These standards, amendments and interpretations did not have a signi\ufb01cant impact on the Consolidated Financial Statements as at 31 December 2022. 4.29 Standards issued but not yet e\ufb00ective and not early adopted Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for 31 December 2022 reporting periods and have not been early adopted by the Group. IAS 1 Presentation of Financial Statements: Classi\ufb01cation of Liabilities as Current or Non-current (Amendments) The amendments are e\ufb00ective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted, and will need to be applied retrospectively in accordance with IAS 8. The objective of the amendments is to clarify the principles in IAS 1 for the classi\ufb01cation of liabilities as either current or non-current. The amendments clarify the meaning of a right to defer settlement, the requirement for this right to exist at the end of the reporting period, that management intent does not a\ufb00ect current or non-current classi\ufb01cation, that options by the counterparty that could result in settlement by the transfer of the entity\u2019s own equity instruments do not a\ufb00ect current or non-current classi\ufb01cation. Also, the amendments specify that only covenants with which an entity must comply on or before the reporting date will a\ufb00ect a liability\u2019s classi\ufb01cation. Additional disclosures are also required for non-current liabilities arising from loan arrangements that are subject to covenants to be complied with within twelve months after the reporting period. The amendments have not yet been endorsed by the EU. The Group is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require renegotiation. IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (Amendments) The Amendments are e\ufb00ective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments provide guidance on the application of materiality judgements to accounting policy disclosures. In particular, the amendments to IAS 1 replace the requirement to disclose \u2018signi\ufb01cant\u2019 accounting policies with a requirement to disclose \u2018material\u2019 accounting policies. Also, guidance and illustrative examples are added in the Practice Statement to assist in the application of the materiality concept when making judgements about accounting policy disclosures. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: De\ufb01nition of Accounting Estimates (Amendments) The amendments become e\ufb00ective for annual reporting periods beginning on or after January 1, 2023 with earlier application permitted and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments introduce a new de\ufb01nition of accounting estimates, de\ufb01ned as monetary amounts in \ufb01nancial statements that are subject to measurement uncertainty, if they do not result from a correction of prior period error. Also, the amendments clarify what changes in accounting estimates are and how these di\ufb00er from changes in accounting policies and corrections of errors. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IAS 12 Income taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments) The amendments are e\ufb00ective for annual periods beginning on or after January 1, 2023 with earlier application permitted. The amendments narrow the scope of and provide further clarity on the initial recognition exception under IAS 12 and specify how companies should account for deferred tax related to assets and liabilities arising from a single transaction, such as leases and decommissioning obligations. The amendments clarify that where payments that settle a liability are deductible for tax purposes, it is a matter of judgement, having considered the applicable tax law, whether such deductions are attributable for tax purposes to the liability or to the related asset component. Under the amendments, the initial recognition exception does not apply to transactions that, on initial recognition, give rise to equal taxable and deductible temporary di\ufb00erences. It only applies if the recognition of a lease asset and lease liability (or decommissioning liability and decommissioning asset component) give rise to taxable and deductible temporary di\ufb00erences that are not equal. The Group is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements. IFRS 16 Leases: Lease Liability in a Sale and Leaseback (amendments) The amendments are e\ufb00ective for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted. The amendments are intended to improve the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction in IFRS 16, while it does not change the accounting for leases unrelated to sale and leaseback transactions. In particular, the seller-lessee determines \u2018lease payments\u2019 or \u2018revised lease payments\u2019 in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use it retains. Applying these requirements does not prevent the seller-lessee from recognising, in pro\ufb01t or loss, any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendment retrospectively in accordance with IAS 8 to sale and leaseback transactions entered into after the date of initial application, being the beginning of the annual reporting period in which an entity \ufb01rst applied IFRS 16. The amendments have not yet been endorsed by the EU. This amendment is not expected to have a material impact on the Group. Amendment in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015 the IASB postponed the e\ufb00ective date of this amendment inde\ufb01nitely pending the outcome of its research project on the equity method of accounting. The amendments have not yet been endorsed by the EU. The Group is currently assessing the impact of the amendments. IFRS 17: Insurance Contracts The standard is e\ufb00ective for annual periods beginning on or after 1 January 2023 with earlier application permitted, provided the entity also applies IFRS 9 Financial Instruments on or before the date it \ufb01rst applies IFRS 17. This is a comprehensive new accounting standard for insurance contracts, covering recognition and measurement, presentation and disclosure. IFRS 17 applies to all types of insurance contracts issued, as well as to certain guarantees and \ufb01nancial instruments with discretional participation contracts. The Group does not issue contracts in scope of IFRS 17; therefore its application does not have an impact on the Group\u2019s \ufb01nancial performance, \ufb01nancial position or cash \ufb02ows. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20950": {
"value": "a. Statement of compliance Management has prepared the \ufb01nancial statements on a going concern basis. Having considered the potential impact of the con\ufb02ict in Ukraine and the overall macroeconomic environment on the Company\u2019s and the wider NEPI Rockcastle Group revenues, pro\ufb01ts, cash \ufb02ows, operations, liquidity position and debt facilities, management concluded that despite the market events generated by these circumstances during 2022 and subsequent to the year-end, there are no material uncertainties relating to the Group\u2019s ability to continue as a going concern. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21008": {
"value": "c. Use of estimates and judgements The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgements, estimates and assumptions that a\ufb00ect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimates and associated assumptions are based on experience and other factors believed to be reasonable under the circumstances and enable judgements to be made about the carrying values of assets and liabilities not readily apparent from other sources. Actual results may di\ufb00er from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised and future periods if applicable. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES The Group\u2019s management discusses with the Audit Committee the development, selection and disclosure of the Group\u2019s critical accounting policies and estimates, as well as their application. The estimates and associated assumptions are based on historical experience and various other factors which are considered reasonable under the circumstances. These are used to make judgements about the carrying values of assets and liabilities that are not apparent from other sources. Actual results may di\ufb00er from these estimates. The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised if the revision a\ufb00ects only that period or in the period of the revision and future periods if the revision a\ufb00ects both. Judgements that have the most signi\ufb01cant e\ufb00ect on the amounts recognised in the Consolidated Financial Statements and estimates that can cause a signi\ufb01cant adjustment to the carrying amount of assets and liabilities within the next \ufb01nancial year are detailed below: Valuation of investment property Investment property is stated at its fair value based on valuation reports prepared by international appraisers as at 30 June and 31 December each year. Valuations are based on discounted cash \ufb02ow projections based on reliable estimates of future cash \ufb02ows, using discount rates that re\ufb02ect current market assessments of the uncertainty in the amount and timing of the cash \ufb02ows. These are supported by the terms of any existing lease and other contracts and by external evidence such as current market rents for similar properties in the same location and condition. In preparing the valuation reports on the Group\u2019s investment property, the external appraisers excluded distressed sales when considering comparable sales prices. Management reviewed the appraisers\u2019 assumptions relating to the discounted cash \ufb02ow models used in the valuations and con\ufb01rmed that factors such as the discount rate applied have been appropriately determined considering the market conditions at the end of the reporting period. Valuations of the income generating properties are based on cash \ufb02ow statements, in which the present value of net operating income during a ten-year period and the residual value of the property at the end of the period are calculated. Forecasts of net operating income are based on leases signed at the time of the valuation date, the estimated rental values for existing leases when they expire and the estimated achievable rental values of the existing vacancies. The value of long-term vacancies is estimated based on the properties\u2019 location and condition. The valuers\u2019 assessments of non- recoverable expenses are based on their experience of comparable properties and historical costs provided by the Group. The discount rates used are nominal returns on total capital before tax and vary between 7.30% and 11.95% (2021: 7.00% and 11.00%). The required rates of return are based on assessments of the market\u2019s required returns for similar properties. The discount rate is set individually for each property and is based on the condition and location, the stability of the tenants and lease duration. Further information relating to sensitivity of signi\ufb01cant accounting estimates used in the valuation of investment property is presented in Note 9. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. Functional currency In assessing the functional currency of the Group, including the Company and its subsidiaries, management considers factors such as the local currencies of the countries where the Group operates, as well as the currency that mainly in\ufb02uences rental prices for its properties, the currency that mostly in\ufb02uences labour, material and other costs of providing its services, the currency in which funding is accessed by the Group. Although the competitive forces and regulations that determine the sales prices of goods and services are present in the countries which use di\ufb00erent currencies than EUR, the macroeconomic developments in these countries to some extent is in\ufb02uenced by the eurozone. In addition, in real estate, leases agreements in the countries where the Group operates, as well as the \ufb01nancing of properties are generally denominated in EUR. The Group predominately concludes its lease agreements in Euro (or, if these contracts are not concluded in Euro, they are indexed to the Euro exchange rate), even if invoiced in local currencies. Agreements for construction and development of investment properties are negotiated and concluded in EUR. Administrative and corporate expenses, such as advisory fees, audit fees, valuation fees, asset management fees are mostly negotiated and contracted in EUR. Salary and other employee related costs, although denominated in local currencies, are benchmarked to EUR. Financing contracted by the Group, which include bonds, unsecured credit facilities and secured bank loans is denominated and settled in EUR. Interest paid on bank loans is linked to Euribor. Intra-group funding for property development is also denominated and settled in EUR. In terms of transactions on the real estate market, acquisitions and sales of properties are negotiated and contracted in EUR in all jurisdictions the Group operate, due to the active international investors in those markets. This is also substantiated in external valuation reports, as valuations of properties are prepared in EUR. In conclusion, management assessed that EUR is the functional currency for the Group, including the Company and its subsidiaries. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The Group has exposure to the following risks due to its use of \ufb01nancial instruments: credit, liquidity, and market, including currency and interest rate. This note presents information about the Group\u2019s exposure to each, as well as its objectives, policies and processes for measuring and managing risk. 6.1 Credit risk Management has established a credit policy where new customers are analysed individually for creditworthiness before standard payment terms and conditions are o\ufb00ered. When available, the analysis includes external ratings. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. An overview of the tenant receivables net of impairment provision is set out below: in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Tenant receivables \u2013 gross 69,033 54,156 Less: Impairment provisions (9,342) (7,282) TENANT RECEIVABLES-NET OF IMPAIRMENT PROVISION 13 59,691 46,874 Reconciliation of impairment provisions is set out below: Movement of provisions for doubtful debtors in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year (7,282) (9,753) Additional provision from properties acquired during the year (2,489) - Additional expected credit losses (2,841) (4,962) Write-o\ufb00 of receivables 986 469 Recovery of previously expected credit losses 2,182 6,256 Released in relation to assets held for sale disposed during the year - 625 Foreign exchange gain 102 83 CARRYING VALUE (9,342) (7,282) This table excludes rent concessions. The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) While cash and cash equivalents and loans granted to joint ventures are also subject to the impairment requirements of IFRS 9, the expected credit losses are immaterial. 9. INVESTMENT PROPERTY IN USE Movement in investment property in use in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 5,670,776 5,591,463 Additions from asset deals (Note 35) 367,769 12,530 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 104,287 - Transferred from investment property under development (Note 10) 51,139 92,528 Fair value adjustments (Note 30) 134,234 30,306 Additions to the right-of-use assets from acquired assets (Note 35) 3,843 - Fair value adjustment of right-of-use assets (Note 30) (255) (251) Investment property reclassi\ufb01ed as held for sale (Note 15.1) - (55,800) CARRYING VALUE 6,331,793 5,670,776 As at 31 December 2022, the balance of investment property included also right-of-use assets of \u20ac37,200 thousand (2021: \u20ac33,611 thousand) representing long-term land concessions for the Group Polish properties contracted from local government. Investment property is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. For the year ended 31 December 2022 and 31 December 2021, the Group commissioned independent year-end appraisal reports on its investment property in use to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, all members of the Royal Institution of Chartered Surveyors (RICS). Valuations are prepared in accordance with the RICS Valuation \u2013 Global Standards 2021 (the \u201cRed Book\") and ANEVAR Valuation Standards-2022 Edition which incorporate the International Valuation Standards (\u201cIVS\u201d). All investment property in use is valued by the Income Method. For the years ended 31 December 2022 and 31 December 2021 respectively, the applied method used for all investment property in use was discounted cash \ufb02ow (\u201cDCF\u201d). DCF uses explicit assumptions regarding the bene\ufb01ts and liabilities of ownership over the asset\u2019s life, including an exit, or terminal, value. As an accepted method within the Income Method to valuation, the DCF method involves the projection of a series of cash \ufb02ows onto a real property interest. To these projected cash \ufb02ow series, an appropriate, market-derived discount rate is applied to establish the present value of cash in\ufb02ows associated with the real property. The duration of cash \ufb02ow, and the speci\ufb01c timing of in\ufb02ows and out\ufb02ows, are determined by events such as rent reviews, lease renewal and related lease-up periods, re-letting, redevelopment or refurbishment. The appropriate duration is typically driven by market behaviour. In the case of investment property, periodic cash \ufb02ow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance costs, agent and commission fees, and other operating and management expenses. The series of periodic net cash in\ufb02ows, combined with the estimated terminal value anticipated at the end of the projection period, is then discounted. For all investment property in use, the current use equates to the highest and best use. The Group provides all information necessary for the valuations, including detailed tenancy schedules, comprising information on occupied and vacant units, unit areas and numbers, lease commencement and expiry dates, break options and indexation clauses. All properties have been inspected by representatives of external valuers for the purpose of 31 December 2022 valuations. The Group\u2019s valuers note in their valuation report that wherever appropriate, sustainability and environmental matters are an integral part of the valuation approach. Sustainability is taken to mean the consideration of such matters as environment and climate change, health and wellbeing and corporate responsibility that can or do impact on the valuation of an asset. In a valuation context, sustainability encompasses a wide range of physical, social, environmental, and economic factors that can a\ufb00ect value. The range of issues includes key environmental risks, such as energy e\ufb03ciency and climate, as well as matters of design, con\ufb01guration, accessibility, legislation, management, and \ufb01scal considerations. As at 31 December 2022, the investment property in use had an EPRA Vacancy Rate of 2.7% (31 December 2021: 4.0%). EPRA Vacancy Rate is a non-IFRS measure which is de\ufb01ned in Appendix 1. As at the same date, the Group\u2019s portfolio included retail, o\ufb03ce and industrial properties. IFRS 13 de\ufb01nes fair value as the price that would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants at the measurement date. The Group currently discloses fair values according to a \u2018fair value hierarchy\u2019 (as per IFRS 13) which categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs. The fair value hierarchy is explained below: \u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; \u2022 Level 2: use of a model with inputs (other than quoted prices included within Level 1) that are directly, or indirectly, observable market data, and \u2022 Level 3: use of a model with inputs not based on observable market data. The Group\u2019s investment property is categorised as Level 3. For assets and liabilities that are recognised in the \ufb01nancial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is signi\ufb01cant to the fair value measurement as a whole) at the end of each reporting period. There were no transfers between hierarchy levels during the year. The signi\ufb01cant unobservable inputs used in the fair value measurement categorized within Level 3 of the fair value hierarchy of the Group\u2019s property portfolio, together with the impact of signi\ufb01cant movements in these inputs on the fair value measurement, are detailed below: Unobservable input Impact on fair value of increase in input Estimated rental value Increase Discount rate Decrease Capitalisation rate for terminal value Decrease Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2022 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail Discounted cash \ufb02ow 294 \u2013 24,411 (13,449*) 7.30% \u2013 11.45% (8.94*) 5.45% \u2013 9.25% (7.08*) O\ufb03ce Discounted cash \ufb02ow 1,851 \u2013 4,393 (3,675*) 8.50% \u2013 8.75% (8.68*) 7.75% \u2013 8.15% (8.04*) Industrial Discounted cash \ufb02ow 645 \u2013 1,727 (1,416*) 10.95% \u2013 11.95% (11.66*) 8.75% \u2013 9.75% (9.46*) *Amounts or percentages represent weighted averages Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2021 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail^ Discounted cash \ufb02ow 246 \u2013 22,190 (12,702*) 7.00% \u2013 11.00% (8.50*) 5.30% \u2013 9.00% (6.90*) O\ufb03ce Discounted cash \ufb02ow 1,840 \u2013 4,419 (3,744*) 8.50% \u2013 8.75% (8.57*) 7.50% \u2013 7.90% (7.80*) Industrial Discounted cash \ufb02ow 556 \u2013 1,531 (1,261*) 10.00% \u2013 11.00% (10.72*) 8.50% \u2013 9.50% (9.22*) *Amounts or percentages represent weighted averages. ^Excluding joint ventures. Portfolio valuation: sensitivity to changes in the discount rate and exit rate The tables below present the change in the valuation of the shopping centre portfolio using di\ufb00erent discount rate and exit rate assumptions than those used by the appraisers. Discount rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 5.2% 2.5% -2.4% -4.7% Poland 5.7% 2.8% -2.6% -5.1% Croatia 5.8% 2.8% -2.7% -5.2% Slovakia 6.9% 3.4% -3.1% -6.1% Bulgaria 5.9% 2.9% -2.7% -5.3% Serbia 5.6% 2.7% -2.6% -5.0% Czech Republic 7.1% 3.4% -3.2% -6.3% Lithuania 5.3% 2.6% -2.4% -4.8% Hungary 6.5% 3.1% -2.9% -5.7% TOTAL 5.7% 2.8% -2.6% -5.1% Exit rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 6.8% 3.3% -3.1% -6.0% Poland 7.9% 3.8% -3.5% -6.8% Croatia 6.6% 3.2% -3.0% -5.8% Slovakia 7.8% 3.7% -3.5% -6.7% Bulgaria 6.8% 3.3% -3.1% -6.0% Serbia 6.3% 3.0% -2.9% -5.6% Czech Republic 8.1% 3.9% -3.6% -7.0% Lithuania 7.0% 3.4% -3.2% -6.2% Hungary 8.3% 4.0% -3.7% -7.1% TOTAL 7.3% 3.5% -3.3% -6.4% 12. GOODWILL According to the Group\u2019s accounting policies based on IFRS, goodwill is tested at least annually for impairment or whenever there is an indication that it may be impaired. The lowest level within the Group at which the goodwill is allocated and monitored for internal management purposes is the CGU, represented by each individual property. CGUs to which the goodwill has been allocated were tested for impairment by comparing their net asset value with the recoverable value, which is the higher of value in use and fair value less cost to sell. Goodwill from recognition of deferred taxes at the date of the business combination As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). Goodwill from management and energy trading companies As a result of this test, no impairment arose in connection with the above two entities. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21009": {
"value": "c. Use of estimates and judgements The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgements, estimates and assumptions that a\ufb00ect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimates and associated assumptions are based on experience and other factors believed to be reasonable under the circumstances and enable judgements to be made about the carrying values of assets and liabilities not readily apparent from other sources. Actual results may di\ufb00er from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised and future periods if applicable. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES The Group\u2019s management discusses with the Audit Committee the development, selection and disclosure of the Group\u2019s critical accounting policies and estimates, as well as their application. The estimates and associated assumptions are based on historical experience and various other factors which are considered reasonable under the circumstances. These are used to make judgements about the carrying values of assets and liabilities that are not apparent from other sources. Actual results may di\ufb00er from these estimates. The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised if the revision a\ufb00ects only that period or in the period of the revision and future periods if the revision a\ufb00ects both. Judgements that have the most signi\ufb01cant e\ufb00ect on the amounts recognised in the Consolidated Financial Statements and estimates that can cause a signi\ufb01cant adjustment to the carrying amount of assets and liabilities within the next \ufb01nancial year are detailed below: Valuation of investment property Investment property is stated at its fair value based on valuation reports prepared by international appraisers as at 30 June and 31 December each year. Valuations are based on discounted cash \ufb02ow projections based on reliable estimates of future cash \ufb02ows, using discount rates that re\ufb02ect current market assessments of the uncertainty in the amount and timing of the cash \ufb02ows. These are supported by the terms of any existing lease and other contracts and by external evidence such as current market rents for similar properties in the same location and condition. In preparing the valuation reports on the Group\u2019s investment property, the external appraisers excluded distressed sales when considering comparable sales prices. Management reviewed the appraisers\u2019 assumptions relating to the discounted cash \ufb02ow models used in the valuations and con\ufb01rmed that factors such as the discount rate applied have been appropriately determined considering the market conditions at the end of the reporting period. Valuations of the income generating properties are based on cash \ufb02ow statements, in which the present value of net operating income during a ten-year period and the residual value of the property at the end of the period are calculated. Forecasts of net operating income are based on leases signed at the time of the valuation date, the estimated rental values for existing leases when they expire and the estimated achievable rental values of the existing vacancies. The value of long-term vacancies is estimated based on the properties\u2019 location and condition. The valuers\u2019 assessments of non- recoverable expenses are based on their experience of comparable properties and historical costs provided by the Group. The discount rates used are nominal returns on total capital before tax and vary between 7.30% and 11.95% (2021: 7.00% and 11.00%). The required rates of return are based on assessments of the market\u2019s required returns for similar properties. The discount rate is set individually for each property and is based on the condition and location, the stability of the tenants and lease duration. Further information relating to sensitivity of signi\ufb01cant accounting estimates used in the valuation of investment property is presented in Note 9. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. Functional currency In assessing the functional currency of the Group, including the Company and its subsidiaries, management considers factors such as the local currencies of the countries where the Group operates, as well as the currency that mainly 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS 6.1 Credit risk Management has established a credit policy where new customers are analysed individually for creditworthiness before standard payment terms and conditions are o\ufb00ered. When available, the analysis includes external ratings. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) While cash and cash equivalents and loans granted to joint ventures are also subject to the impairment requirements of IFRS 9, the expected credit losses are immaterial. 9. INVESTMENT PROPERTY IN USE Movement in investment property in use in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 5,670,776 5,591,463 Additions from asset deals (Note 35) 367,769 12,530 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 104,287 - Transferred from investment property under development (Note 10) 51,139 92,528 Fair value adjustments (Note 30) 134,234 30,306 Additions to the right-of-use assets from acquired assets (Note 35) 3,843 - Fair value adjustment of right-of-use assets (Note 30) (255) (251) Investment property reclassi\ufb01ed as held for sale (Note 15.1) - (55,800) CARRYING VALUE 6,331,793 5,670,776 As at 31 December 2022, the balance of investment property included also right-of-use assets of \u20ac37,200 thousand (2021: \u20ac33,611 thousand) representing long-term land concessions for the Group Polish properties contracted from local government. Investment property is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. For the year ended 31 December 2022 and 31 December 2021, the Group commissioned independent year-end appraisal reports on its investment property in use to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, all members of the Royal Institution of Chartered Surveyors (RICS). Valuations are prepared in accordance with the RICS Valuation \u2013 Global Standards 2021 (the \u201cRed Book\") and ANEVAR Valuation Standards-2022 Edition which incorporate the International Valuation Standards (\u201cIVS\u201d). All investment property in use is valued by the Income Method. For the years ended 31 December 2022 and 31 December 2021 respectively, the applied method used for all investment property in use was discounted cash \ufb02ow (\u201cDCF\u201d). DCF uses explicit assumptions regarding the bene\ufb01ts and liabilities of ownership over the asset\u2019s life, including an exit, or terminal, value. As an accepted method within the Income Method to valuation, the DCF method involves the projection of a series of cash \ufb02ows onto a real property interest. To these projected cash \ufb02ow series, an appropriate, market-derived discount rate is applied to establish the present value of cash in\ufb02ows associated with the real property. The duration of cash \ufb02ow, and the speci\ufb01c timing of in\ufb02ows and out\ufb02ows, are determined by events such as rent reviews, lease renewal and related lease-up periods, re-letting, redevelopment or refurbishment. The appropriate duration is typically driven by market behaviour. In the case of investment property, periodic cash \ufb02ow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance costs, agent and commission fees, and other operating and management expenses. The series of periodic net cash in\ufb02ows, combined with the estimated terminal value anticipated at the end of the projection period, is then discounted. For all investment property in use, the current use equates to the highest and best use. The Group provides all information necessary for the valuations, including detailed tenancy schedules, comprising information on occupied and vacant units, unit areas and numbers, lease commencement and expiry dates, break options and indexation clauses. All properties have been inspected by representatives of external valuers for the purpose of 31 December 2022 valuations. The Group\u2019s valuers note in their valuation report that wherever appropriate, sustainability and environmental matters are an integral part of the valuation approach. Sustainability is taken to mean the consideration of such matters as environment and climate change, health and wellbeing and corporate responsibility that can or do impact on the valuation of an asset. In a valuation context, sustainability encompasses a wide range of physical, social, environmental, and economic factors that can a\ufb00ect value. The range of issues includes key environmental risks, such as energy e\ufb03ciency and climate, as well as matters of design, con\ufb01guration, accessibility, legislation, management, and \ufb01scal considerations. As at 31 December 2022, the investment property in use had an EPRA Vacancy Rate of 2.7% (31 December 2021: 4.0%). EPRA Vacancy Rate is a non-IFRS measure which is de\ufb01ned in Appendix 1. As at the same date, the Group\u2019s portfolio included retail, o\ufb03ce and industrial properties. IFRS 13 de\ufb01nes fair value as the price that would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants at the measurement date. The Group currently discloses fair values according to a \u2018fair value hierarchy\u2019 (as per IFRS 13) which categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs. The fair value hierarchy is explained below: \u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; \u2022 Level 2: use of a model with inputs (other than quoted prices included within Level 1) that are directly, or indirectly, observable market data, and \u2022 Level 3: use of a model with inputs not based on observable market data. The Group\u2019s investment property is categorised as Level 3. For assets and liabilities that are recognised in the \ufb01nancial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is signi\ufb01cant to the fair value measurement as a whole) at the end of each reporting period. There were no transfers between hierarchy levels during the year. The signi\ufb01cant unobservable inputs used in the fair value measurement categorized within Level 3 of the fair value hierarchy of the Group\u2019s property portfolio, together with the impact of signi\ufb01cant movements in these inputs on the fair value measurement, are detailed below: Unobservable input Impact on fair value of increase in input Estimated rental value Increase Discount rate Decrease Capitalisation rate for terminal value Decrease Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2022 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail Discounted cash \ufb02ow 294 \u2013 24,411 (13,449*) 7.30% \u2013 11.45% (8.94*) 5.45% \u2013 9.25% (7.08*) O\ufb03ce Discounted cash \ufb02ow 1,851 \u2013 4,393 (3,675*) 8.50% \u2013 8.75% (8.68*) 7.75% \u2013 8.15% (8.04*) Industrial Discounted cash \ufb02ow 645 \u2013 1,727 (1,416*) 10.95% \u2013 11.95% (11.66*) 8.75% \u2013 9.75% (9.46*) *Amounts or percentages represent weighted averages Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2021 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail^ Discounted cash \ufb02ow 246 \u2013 22,190 (12,702*) 7.00% \u2013 11.00% (8.50*) 5.30% \u2013 9.00% (6.90*) O\ufb03ce Discounted cash \ufb02ow 1,840 \u2013 4,419 (3,744*) 8.50% \u2013 8.75% (8.57*) 7.50% \u2013 7.90% (7.80*) Industrial Discounted cash \ufb02ow 556 \u2013 1,531 (1,261*) 10.00% \u2013 11.00% (10.72*) 8.50% \u2013 9.50% (9.22*) *Amounts or percentages represent weighted averages. ^Excluding joint ventures. Portfolio valuation: sensitivity to changes in the discount rate and exit rate The tables below present the change in the valuation of the shopping centre portfolio using di\ufb00erent discount rate and exit rate assumptions than those used by the appraisers. Discount rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 5.2% 2.5% -2.4% -4.7% Poland 5.7% 2.8% -2.6% -5.1% Croatia 5.8% 2.8% -2.7% -5.2% Slovakia 6.9% 3.4% -3.1% -6.1% Bulgaria 5.9% 2.9% -2.7% -5.3% Serbia 5.6% 2.7% -2.6% -5.0% Czech Republic 7.1% 3.4% -3.2% -6.3% Lithuania 5.3% 2.6% -2.4% -4.8% Hungary 6.5% 3.1% -2.9% -5.7% TOTAL 5.7% 2.8% -2.6% -5.1% Exit rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 6.8% 3.3% -3.1% -6.0% Poland 7.9% 3.8% -3.5% -6.8% Croatia 6.6% 3.2% -3.0% -5.8% Slovakia 7.8% 3.7% -3.5% -6.7% Bulgaria 6.8% 3.3% -3.1% -6.0% Serbia 6.3% 3.0% -2.9% -5.6% Czech Republic 8.1% 3.9% -3.6% -7.0% Lithuania 7.0% 3.4% -3.2% -6.2% Hungary 8.3% 4.0% -3.7% -7.1% TOTAL 7.3% 3.5% -3.3% -6.4% 12. GOODWILL According to the Group\u2019s accounting policies based on IFRS, goodwill is tested at least annually for impairment or whenever there is an indication that it may be impaired. The lowest level within the Group at which the goodwill is allocated and monitored for internal management purposes is the CGU, represented by each individual property. CGUs to which the goodwill has been allocated were tested for impairment by comparing their net asset value with the recoverable value, which is the higher of value in use and fair value less cost to sell. Goodwill from recognition of deferred taxes at the date of the business combination As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). Goodwill from management and energy trading companies As a result of this test, no impairment arose in connection with the above two entities. ",
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"f21010": {
"value": "c. Use of estimates and judgements The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgements, estimates and assumptions that a\ufb00ect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimates and associated assumptions are based on experience and other factors believed to be reasonable under the circumstances and enable judgements to be made about the carrying values of assets and liabilities not readily apparent from other sources. Actual results may di\ufb00er from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised and future periods if applicable. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING ACCOUNTING POLICIES The Group\u2019s management discusses with the Audit Committee the development, selection and disclosure of the Group\u2019s critical accounting policies and estimates, as well as their application. The estimates and associated assumptions are based on historical experience and various other factors which are considered reasonable under the circumstances. These are used to make judgements about the carrying values of assets and liabilities that are not apparent from other sources. Actual results may di\ufb00er from these estimates. The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised if the revision a\ufb00ects only that period or in the period of the revision and future periods if the revision a\ufb00ects both. Judgements that have the most signi\ufb01cant e\ufb00ect on the amounts recognised in the Consolidated Financial Statements and estimates that can cause a signi\ufb01cant adjustment to the carrying amount of assets and liabilities within the next \ufb01nancial year are detailed below: Valuation of investment property Investment property is stated at its fair value based on valuation reports prepared by international appraisers as at 30 June and 31 December each year. Valuations are based on discounted cash \ufb02ow projections based on reliable estimates of future cash \ufb02ows, using discount rates that re\ufb02ect current market assessments of the uncertainty in the amount and timing of the cash \ufb02ows. These are supported by the terms of any existing lease and other contracts and by external evidence such as current market rents for similar properties in the same location and condition. In preparing the valuation reports on the Group\u2019s investment property, the external appraisers excluded distressed sales when considering comparable sales prices. Management reviewed the appraisers\u2019 assumptions relating to the discounted cash \ufb02ow models used in the valuations and con\ufb01rmed that factors such as the discount rate applied have been appropriately determined considering the market conditions at the end of the reporting period. Valuations of the income generating properties are based on cash \ufb02ow statements, in which the present value of net operating income during a ten-year period and the residual value of the property at the end of the period are calculated. Forecasts of net operating income are based on leases signed at the time of the valuation date, the estimated rental values for existing leases when they expire and the estimated achievable rental values of the existing vacancies. The value of long-term vacancies is estimated based on the properties\u2019 location and condition. The valuers\u2019 assessments of non- recoverable expenses are based on their experience of comparable properties and historical costs provided by the Group. The discount rates used are nominal returns on total capital before tax and vary between 7.30% and 11.95% (2021: 7.00% and 11.00%). The required rates of return are based on assessments of the market\u2019s required returns for similar properties. The discount rate is set individually for each property and is based on the condition and location, the stability of the tenants and lease duration. Further information relating to sensitivity of signi\ufb01cant accounting estimates used in the valuation of investment property is presented in Note 9. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. Functional currency In assessing the functional currency of the Group, including the Company and its subsidiaries, management considers factors such as the local currencies of the countries where the Group operates, as well as the currency that mainly in\ufb02uences rental prices for its properties, the currency that mostly in\ufb02uences labour, material and other costs of providing its services, the currency in which funding is accessed by the Group. Although the competitive forces and regulations that determine the sales prices of goods and services are present in the countries which use di\ufb00erent currencies than EUR, the macroeconomic developments in these countries to some extent is in\ufb02uenced by the eurozone. In addition, in real estate, leases agreements in the countries where the Group operates, as well as the \ufb01nancing of properties are generally denominated in EUR. The Group predominately concludes its lease agreements in Euro (or, if these contracts are not concluded in Euro, they are indexed to the Euro exchange rate), even if invoiced in local currencies. Agreements for construction and development of investment properties are negotiated and concluded in EUR. Administrative and corporate expenses, such as advisory fees, audit fees, valuation fees, asset management fees are mostly negotiated and contracted in EUR. Salary and other employee related costs, although denominated in local currencies, are benchmarked to EUR. Financing contracted by the Group, which include bonds, unsecured credit facilities and secured bank loans is denominated and settled in EUR. Interest paid on bank loans is linked to Euribor. Intra-group funding for property development is also denominated and settled in EUR. In terms of transactions on the real estate market, acquisitions and sales of properties are negotiated and contracted in EUR in all jurisdictions the Group operate, due to the active international investors in those markets. This is also substantiated in external valuation reports, as valuations of properties are prepared in EUR. In conclusion, management assessed that EUR is the functional currency for the Group, including the Company and its subsidiaries. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The Group has exposure to the following risks due to its use of \ufb01nancial instruments: credit, liquidity, and market, including currency and interest rate. This note presents information about the Group\u2019s exposure to each, as well as its objectives, policies and processes for measuring and managing risk. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. An overview of the tenant receivables net of impairment provision is set out below: in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Tenant receivables \u2013 gross 69,033 54,156 Less: Impairment provisions (9,342) (7,282) TENANT RECEIVABLES-NET OF IMPAIRMENT PROVISION 13 59,691 46,874 Reconciliation of impairment provisions is set out below: Movement of provisions for doubtful debtors in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year (7,282) (9,753) Additional provision from properties acquired during the year (2,489) - Additional expected credit losses (2,841) (4,962) Write-o\ufb00 of receivables 986 469 Recovery of previously expected credit losses 2,182 6,256 Released in relation to assets held for sale disposed during the year - 625 Foreign exchange gain 102 83 CARRYING VALUE (9,342) (7,282) This table excludes rent concessions. The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) 9. INVESTMENT PROPERTY IN USE Movement in investment property in use in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 5,670,776 5,591,463 Additions from asset deals (Note 35) 367,769 12,530 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 104,287 - Transferred from investment property under development (Note 10) 51,139 92,528 Fair value adjustments (Note 30) 134,234 30,306 Additions to the right-of-use assets from acquired assets (Note 35) 3,843 - Fair value adjustment of right-of-use assets (Note 30) (255) (251) Investment property reclassi\ufb01ed as held for sale (Note 15.1) - (55,800) CARRYING VALUE 6,331,793 5,670,776 As at 31 December 2022, the balance of investment property included also right-of-use assets of \u20ac37,200 thousand (2021: \u20ac33,611 thousand) representing long-term land concessions for the Group Polish properties contracted from local government. Investment property is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. For the year ended 31 December 2022 and 31 December 2021, the Group commissioned independent year-end appraisal reports on its investment property in use to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, all members of the Royal Institution of Chartered Surveyors (RICS). Valuations are prepared in accordance with the RICS Valuation \u2013 Global Standards 2021 (the \u201cRed Book\") and ANEVAR Valuation Standards-2022 Edition which incorporate the International Valuation Standards (\u201cIVS\u201d). All investment property in use is valued by the Income Method. For the years ended 31 December 2022 and 31 December 2021 respectively, the applied method used for all investment property in use was discounted cash \ufb02ow (\u201cDCF\u201d). DCF uses explicit assumptions regarding the bene\ufb01ts and liabilities of ownership over the asset\u2019s life, including an exit, or terminal, value. As an accepted method within the Income Method to valuation, the DCF method involves the projection of a series of cash \ufb02ows onto a real property interest. To these projected cash \ufb02ow series, an appropriate, market-derived discount rate is applied to establish the present value of cash in\ufb02ows associated with the real property. The duration of cash \ufb02ow, and the speci\ufb01c timing of in\ufb02ows and out\ufb02ows, are determined by events such as rent reviews, lease renewal and related lease-up periods, re-letting, redevelopment or refurbishment. The appropriate duration is typically driven by market behaviour. In the case of investment property, periodic cash \ufb02ow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance costs, agent and commission fees, and other operating and management expenses. The series of periodic net cash in\ufb02ows, combined with the estimated terminal value anticipated at the end of the projection period, is then discounted. For all investment property in use, the current use equates to the highest and best use. The Group provides all information necessary for the valuations, including detailed tenancy schedules, comprising information on occupied and vacant units, unit areas and numbers, lease commencement and expiry dates, break options and indexation clauses. All properties have been inspected by representatives of external valuers for the purpose of 31 December 2022 valuations. The Group\u2019s valuers note in their valuation report that wherever appropriate, sustainability and environmental matters are an integral part of the valuation approach. Sustainability is taken to mean the consideration of such matters as environment and climate change, health and wellbeing and corporate responsibility that can or do impact on the valuation of an asset. In a valuation context, sustainability encompasses a wide range of physical, social, environmental, and economic factors that can a\ufb00ect value. The range of issues includes key environmental risks, such as energy e\ufb03ciency and climate, as well as matters of design, con\ufb01guration, accessibility, legislation, management, and \ufb01scal considerations. As at 31 December 2022, the investment property in use had an EPRA Vacancy Rate of 2.7% (31 December 2021: 4.0%). EPRA Vacancy Rate is a non-IFRS measure which is de\ufb01ned in Appendix 1. As at the same date, the Group\u2019s portfolio included retail, o\ufb03ce and industrial properties. IFRS 13 de\ufb01nes fair value as the price that would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants at the measurement date. The Group currently discloses fair values according to a \u2018fair value hierarchy\u2019 (as per IFRS 13) which categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs. The fair value hierarchy is explained below: \u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; \u2022 Level 2: use of a model with inputs (other than quoted prices included within Level 1) that are directly, or indirectly, observable market data, and \u2022 Level 3: use of a model with inputs not based on observable market data. The Group\u2019s investment property is categorised as Level 3. For assets and liabilities that are recognised in the \ufb01nancial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is signi\ufb01cant to the fair value measurement as a whole) at the end of each reporting period. There were no transfers between hierarchy levels during the year. 12. GOODWILL According to the Group\u2019s accounting policies based on IFRS, goodwill is tested at least annually for impairment or whenever there is an indication that it may be impaired. The lowest level within the Group at which the goodwill is allocated and monitored for internal management purposes is the CGU, represented by each individual property. CGUs to which the goodwill has been allocated were tested for impairment by comparing their net asset value with the recoverable value, which is the higher of value in use and fair value less cost to sell. Goodwill from recognition of deferred taxes at the date of the business combination As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). Goodwill from management and energy trading companies As a result of this test, no impairment arose in connection with the above two entities. ",
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"f21049": {
"value": "4. SIGNIFICANT ACCOUNTING POLICIES The signi\ufb01cant accounting policies set out below have been consistently applied to all periods presented. 4.1 Foreign currency translation a. Functional and presentation currency The Consolidated Financial Statements are presented in Euro (\u201c\u20ac\u201d, \u201cEUR\u201d) thousands unless otherwise stated, which is NEPI Rockcastle\u2019s functional and presentation currency. The functional currency is determined by the relevant, primary economic environment of each entity. The other determining factor is the currency in which most cash \ufb02ows, goods and services are denominated and settled in the respective country. When the functional currency cannot be clearly identi\ufb01ed, International Accounting Standard (\u201cIAS\u201d) 21 \u201cThe E\ufb00ects of Changes in Foreign Exchange Rates\u201d allows management to use judgement to determine the functional currency that most faithfully represents the economic e\ufb00ects of the underlying transactions, events and conditions. Any change in the functional currency must be made prospectively in accordance with IAS 21. b. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in pro\ufb01t or loss. 4.2 Basis of consolidation Subsidiaries The Consolidated Financial Statements incorporate the assets, liabilities, operating results and cash \ufb02ows of the Company and its subsidiaries. Subsidiaries are all entities controlled by the Company. The Company controls an entity when it is exposed or has rights, directly or indirectly, to variable returns from its involvement with the entity and has the ability to a\ufb00ect those returns through its power over it. The \ufb01nancial statements of subsidiaries are included in the Consolidated Financial Statements from the date the control commences until the date the control ceases. The acquisition method is used to account for the business combinations. Identi\ufb01able acquired assets and liabilities, and contingent liabilities, assumed in a business combination are measured at their fair values on the date of acquisition. The consideration transferred for the acquired entity is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred, or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but excluding acquisition related costs, such as advisory, legal, valuation and similar professional services. Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. These Consolidated Financial Statements include the Company and the fully consolidated subsidiaries, as set out below (as at 31 December 2021 the Consolidated Financial Statements included jointly controlled entity consolidated using equity method): No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. 4.3 Investment property in use Investment property is held to earn rental income, capital appreciation or both. The cost of investment property acquired by any other means than a business combination consists of the purchase price and directly attributable expenditure. Subsequent expenditure relating to investment property is capitalised when future economic bene\ufb01ts from the use of the asset are probable and the cost of the item can be measured reliably. All other subsequent expenditure is recognised as an expense during the period it is incurred. After initial recognition, investment property in use is measured at fair value. Fair value is determined semi-annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are based on the open market value, using the discounted cash \ufb02ow method. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income for the period during which they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. Lease incentives, such as rent-free periods, discounts during the lease or payment of \ufb01t-out works for the bene\ufb01t of the tenants, are part of value of the investment property and are straight-lined over the lease term. The lease term corresponds to the contractual duration for the majority of the leases, except for the anchor tenants, for which the lease duration is assessed by the Group based on past experience and taking into account factors such as: GLA of the property where the anchor tenant is located, catchment area, dominance/competition in the catchment area or purchasing power. Gains or losses on disposal of investment property are calculated as proceeds less carrying amount and recognized in the Statement of comprehensive income. 4.4 Investment property under development Property that is being constructed or developed for future use as investment property is classi\ufb01ed as investment property under development and carried at cost until construction or development is complete, or its fair value can be reliably determined. The land on which investment property is constructed or developed is carried at fair value, which is determined semi- annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are performed using the market comparable approach or residual approach. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income during the period when they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. 4.5 Assets classi\ufb01ed as held for sale An investment property or a group of assets including an investment property (disposal group) are classi\ufb01ed as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. For this to be the case: \u2022 the assets must be available for immediate sale in their present condition, \u2022 the Group must be committed to sell, \u2022 there must be a plan to locate a buyer, and \u2022 it is highly probable that a sale will be completed within one year from the date of classi\ufb01cation. On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. An investment property or disposal group classi\ufb01ed as held for sale is presented separately in the Statement of \ufb01nancial position as assets or liabilities classi\ufb01ed as held for sale. Discontinued operations are disclosed as a single amount in the Statement of comprehensive income, comprising the total of: (i) the post-tax pro\ufb01t or loss of discontinued operations, and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. 4.6 Goodwill Goodwill arises upon business combination and represents the excess of the consideration transferred over the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree. When the consideration transferred is lower than the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree, the gain on acquisition is recognised directly in the Statement of comprehensive income. Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.8 Loans to participants in the Share Purchase Scheme (as de\ufb01ned in Note 4.18) Loans to participants in the Share Purchase Scheme incentive plan are initially recognised at the amount granted, carried at amortized cost and impaired based on expected credit losses (\u201cECL\u201d) model (Note 4.18). 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 4.10 Financial assets 4.10.1 Classi\ufb01cation In line with IFRS 9 \u201cFinancial instruments\u201d, the Group classi\ufb01es its \ufb01nancial assets in the following measurement categories: \u2022 those to be measured subsequently at fair value through pro\ufb01t or loss and \u2022 those to be measured at amortised cost. The classi\ufb01cation and subsequent measurement of debt instruments \ufb01nancial assets depends on: (i) the Group\u2019s business model for managing the related assets portfolio and (ii) the cash \ufb02ow characteristics of the asset. For \ufb01nancial assets measured at fair value through pro\ufb01t or loss (\u201cFVTPL\u201d), gains and losses are recorded in pro\ufb01t or loss. 4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.10.5 Reclassi\ufb01cation Financial instruments are reclassi\ufb01ed only when the business model for managing those assets changes. The reclassi\ufb01cation has a prospective e\ufb00ect and takes place from the start of the \ufb01rst reporting period following the change. 4.10.6 Write-o\ufb00 Financial assets are written-o\ufb00, in whole or in part, when the Group has exhausted all practical recovery e\ufb00orts and has concluded that there is no reasonable expectation of recovery. The write-o\ufb00 represents a derecognition event. Indicators that there is no reasonable expectation of recovery include, among others, insolvency or signi\ufb01cant \ufb01nancial di\ufb03culties of the tenant, default on payment terms and vacation or abandonment of the leased premises. Impaired trade and other receivables are derecognised when all reasonable e\ufb00orts to collect the amounts outstanding have failed and they are assessed as uncollectable. 4.10.7 Modi\ufb01cation The Group sometimes renegotiates or otherwise modi\ufb01es the contractual terms of the \ufb01nancial assets. The Group assesses whether the modi\ufb01cation of contractual cash \ufb02ows is substantial considering, among other, the following factors: new contractual terms that substantially a\ufb00ect the risk pro\ufb01le of the asset, signi\ufb01cant change in interest rate, change in the currency denomination. If the modi\ufb01ed terms are substantially di\ufb00erent, the rights to cash \ufb02ows from the original asset expire and the Group derecognises the original \ufb01nancial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a signi\ufb01cant increase in credit risk has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any di\ufb00erence between the carrying amount of the original asset derecognised and fair value of the new substantially modi\ufb01ed asset is recognised in pro\ufb01t or loss, unless the substance of the di\ufb00erence is attributed to a capital transaction with owners. In a situation where the renegotiation was driven by \ufb01nancial di\ufb03culties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash \ufb02ows to assess whether the risks and rewards of the asset are substantially di\ufb00erent as a result of the contractual modi\ufb01cation. If the risks and rewards do not change, the modi\ufb01ed asset is not substantially di\ufb00erent from the original asset and the modi\ufb01cation does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modi\ufb01ed contractual cash \ufb02ows by the original e\ufb00ective interest rate and recognises a modi\ufb01cation gain or loss in pro\ufb01t or loss. Speci\ufb01c valuation techniques used to value \ufb01nancial assets include: \u2022 The use of quoted market prices or dealer quotes for similar instruments (for \ufb01nancial investments at fair value through pro\ufb01t or loss and \ufb01nancial assets/liabilities at fair value through pro\ufb01t or loss); \u2022 Discounted cash \ufb02ow analysis (for the remaining \ufb01nancial instruments). The hierarchy for the fair value of \ufb01nancial assets and liabilities is as follows: \u2022 Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; \u2022 Level 2: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is directly or indirectly observable, and \u2022 Level 3: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is unobservable. 4.11 Financial liabilities \u2013 measurement categories Financial liabilities are initially recognised at fair value and classi\ufb01ed and subsequently measured at amortised cost, except for \ufb01nancial liabilities at FVTPL: this classi\ufb01cation is applied to interest rate derivatives and other \ufb01nancial liabilities designated as such at initial recognition. 4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 4.13 O\ufb00setting \ufb01nancial instruments Financial assets and \ufb01nancial liabilities are o\ufb00set and the net amount reported in the Statement of \ufb01nancial position when the Group has a legally enforceable right to set o\ufb00 the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 4.14 Cash and cash equivalents Cash and cash equivalents include cash balances, cash deposits and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni\ufb01cant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash \ufb02ows and those cash \ufb02ows represent solely payments of principal and interest (SPPI), and (ii) they are not designated at FVTPL. 4.15 Trade receivables Trade receivables are amounts due from customers for rental and service charge income from tenants in the ordinary course of business. If collection is expected in one year or less, they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value, generally at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash \ufb02ows and therefore measures them subsequently at amortised cost using the e\ufb00ective interest method. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 4.16 Inventory property Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value (\u201cNRV\u201d). Principally, this is residential property that the Group develops and intends to sell on completion of development. The commencement of development with a plan or a prior agreement to sell represents a change in use and accordingly the project is transferred from investment property to inventory property. Costs incurred in inventory property include: \u2022 freehold and leasehold rights for land \u2022 amounts paid to contractors for development \u2022 planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, development overheads and other related costs. NRV is the estimated selling price in the ordinary course of business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale. When an inventory property is sold, the carrying amount of the property is recognised as an expense in the period in which the related revenue is recognised. The carrying amount of inventory property recognised in pro\ufb01t or loss is determined with reference to the directly attributable costs incurred on the property sold and an allocation of any other related costs based on the relative size of the property sold. 4.17 Share capital and share premium Ordinary shares are classi\ufb01ed as equity. Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. The consideration paid, including any directly attributable incremental costs (net of income taxes for the purchases of the Company\u2019s equity instruments by any of the Group\u2019s subsidiaries, as a result of a share buy-back or for a share- based incentive plan) is presented within \u201cOther reserves\u201d, until the shares are cancelled or reissued. Where such ordinary shares are cancelled, their nominal value is debited to Share capital, with the corresponding di\ufb00erence up to their purchase price (including any attributable incremental cost, net of taxes) debited from Share premium. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax e\ufb00ects, is included in equity attributable to the owners of the Group. Usually, shares are purchased for the debt-free Long-Term Share Incentive Plan (Note 4.18 (b)). 4.18 Share-based payments To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. b. Debt free Long-Term Share Incentive Plan with a vesting component (\u201cLTSIP\u201d) This program was put in place after the 2017 merger of the former groups NEPI and Rockcastle. Under this incentive plan, shares may be issued by the Group to executive directors and other key personnel for no cash consideration. Awards under this plan are at the discretion of the Board of Directors and are based on the performance of the Group and the employees. The costs related to the LTSIP are measured based on the fair value of the shares at the grant date and are recognized over the vesting period. The costs are presented as part of the Administrative expenses in the Statement of comprehensive income and within Other reserves in the Statement of changes in equity. 4.19 Accumulated pro\ufb01t The balance on the Statement of comprehensive income is transferred to accumulated pro\ufb01t at the end of each \ufb01nancial period. Distributions paid in cash are deducted from accumulated pro\ufb01t. Distributions for which shareholders elected to receive a return of capital are accounted for as an issue of share capital with a corresponding deduction from the share premium account. 4.20 Provisions Provisions for liabilities are recognised when the Group has a present legal or constructive obligation as a result of past events, when it is probable that an out\ufb02ow of resources embodying economic bene\ufb01ts will be required to settle the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the reporting date. Where the e\ufb00ect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. Provisions are reassessed at each reporting date and are included in the \ufb01nancial statements at their net present values using discount rates appropriate to the Group in the economic environment at each reporting date. 4.21 Revenue Revenue is recognised at the fair value of the consideration received or receivable. Revenue comprises rental and related income and recovery of expenses, excluding VAT. Rental income Rental income receivable from operating leases is recognised on a straight-line basis over the duration of the lease, except for variable lease payments which are recognized when they arise. Service charges income from tenants Revenue from service and property management charges is recognised in the accounting period in which control of the services are passed to the customer, which is when the service is rendered. For certain service contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services. As speci\ufb01ed in the lease agreements, the Group has the primary responsibility for providing services to tenants (electricity, water and gas utilities, interior and exterior cleaning, security, maintenance, repairs, etc). The Group has determined that these services constitute distinct non-lease components (transferred separately from the right to use the underlying asset) and are within the scope of IFRS 15. The Group allocates the consideration in the contract to the separate lease and revenue (non-lease) components on a relative stand-alone selling price basis. In respect of the revenue component, these services represent a series of daily services that are individually satis\ufb01ed over time because the tenants simultaneously receive and consume the bene\ufb01ts provided by the Group. The Group applies the time elapsed method to measure progress. The Group negotiates directly with the suppliers all contracts for services provided to tenants. These contracts are concluded between the Group subsidiaries which own the properties and the direct supplier. As the Group sometimes uses the same providers for services across most of its portfolio, it can negotiate better prices through the economies of scale. The Group is considered principal in these transactions, in terms of the IFRS 15 requirements. The Group negotiates and pays all expenses incurred by the tenants and then re-invoices these costs to them as de\ufb01ned in the contractual clauses included in the lease agreements. A \ufb02at fee is charged monthly during the year. This fee is estimated based on the previous year\u2019s actual costs, with an annual service charge reconciliation performed based on current year\u2019s actual costs incurred by the Group. For contracts terminated during the year, the Group estimates the service charge to be collected based on the current budget and last year\u2019s actual costs. Covid-19 pandemic discounts Reduction of gross rental income Since the beginning of the pandemic, the Polish Government imposed a rent-free period for tenants, including service charge and marketing costs, during the state of emergency/lockdowns. This relief, which was legally enforced and implemented without changes to the lease contracts with tenants, has been recognised in the Statement of comprehensive income, as a reduction of Gross rental income and Service charge income and as a decrease of Trade and other receivables, in the Consolidated Statement of \ufb01nancial position. In some instances, the Group agreed to variable discounts contingent upon tenants\u2019 performance falling below a certain threshold, which has been recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income (negative variable rent). Partial forgiveness of receivables In the context of trading restrictions, the Group granted voluntary rental concessions during lockdowns periods, and/ or immediately following a lockdown. For the period up to the signing of lease modi\ufb01cations, the receivables already accrued in accordance with the in-force lease agreements have been partially written-o\ufb00 in accordance with the signed addendums, and therefore their \ufb01nancial impact was recognised immediately and not straight-lined over the new lease term. As such, tenant concessions granted before the signing of lease modi\ufb01cations were fully accounted for in the Consolidated Statement of comprehensive income as \u201cPartial forgiveness of receivables (Covid-19 Forgiveness)\u201d, and \u201cTrade and other receivables\u201d in the Consolidated Statement of \ufb01nancial position, in accordance with IFRS 9 \u201cFinancial Instruments\u201d (in relation to impairment of receivables). The accounting treatment is in accordance with IFRS 16, which allows rental income to be recognised even if recoverability is uncertain. Contractually agreed and signed modi\ufb01cations subject to straight-lining from the e\ufb00ective date of the modi\ufb01cation Contractually agreed and signed concessions granted to, and obtained from, tenants are treated according to IFRS 16 \u201cLeases\u201d. IFRS 16 de\ufb01nes \u201clease modi\ufb01cation\u201d as a change in scope, or consideration, of the lease, not part of the original terms and conditions, such as rent discounts, lease extensions, increase in variable rent (overage/turnover), introduction of break options, etc. Lease modi\ufb01cations are recognised prospectively over the new lease term and accounted for by the Group from the date the modi\ufb01cation is contractually agreed and signed by both parties. Agreed lease modi\ufb01cations are recognised as lease incentives from the date the modi\ufb01cation was signed. Such modi\ufb01cations are straight-lined over the new lease term and recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income. 4.22 Property operating and administrative expenses Property operating expenses and administrative expenses are recognised on an accrual basis. 4.23 Earnings distribution A distribution is recorded as a liability and deducted from equity in the period in which it is declared and approved. Any distribution declared after the reporting period and before the \ufb01nancial statements are authorised for issue is disclosed in Note 37. 4.24 Taxation Taxation on the pro\ufb01t or loss for the year comprises current and deferred tax. Current income tax and liabilities are measured at the amount expected to be recovered from, or paid to, taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date. Current income tax relating to items recognised directly in equity is recognised directly in equity and not in the Statement of comprehensive income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax is determined using the liability method and is based on temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial reporting purposes and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the date of the Statement of \ufb01nancial position, which are expected to apply to the period when the temporary di\ufb00erences will reverse or the tax loss carried forward will be utilised. The following temporary di\ufb00erences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that a\ufb00ect neither accounting nor taxable pro\ufb01t, and di\ufb00erences relating to investments in subsidiaries that are unlikely to reverse in the foreseeable future. A deferred tax asset is recognised based on the assumption that it is probable that future taxable pro\ufb01ts will be available against which it can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax bene\ufb01t will be realised. The current tax expense incurred by the Group re\ufb02ects tax accrued in the subsidiaries of the Group located in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Malta, Mauritius, Poland, Romania, Serbia, Slovakia and the Netherlands. Output Value Added Tax (\u201cVAT\u201d) related to sales is payable to tax authorities on either the collection of receivables from customers or the delivery of services to customers depending on which occurs \ufb01rst. Input VAT is generally recoverable against output VAT upon receipt of the invoice. The tax authorities in individual countries permit the settlement of VAT on a net basis. VAT relating to sales and purchases is recognised in the Statement of \ufb01nancial position on a net basis and is disclosed separately as an asset or liability, as the case may be. Where provision has been made for impairment of receivables, the loss is recorded for the gross amount of the debt, including VAT. 4.25 Segment reporting Management decisions and consequent allocation of resources are based on individual property level reports, which are analysed in detail. Management has a hands-on approach and is involved in day-to-day activities. Regular management meetings are held at least monthly for each property, where the senior management of the Group and each property manager analyse the \ufb01nancial results, decide whether any repairs or improvements are necessary, review rent collection issues and allocate resources to resolve any delays with tenants and review maintenance plans, vacancies and the status of any contract negotiations, as well as other operational matters. The results of these discussions ensure management decisions are speci\ufb01c to each of the properties. The Segmental Reporting in Note 37 summarises the results recorded by the properties held by the Group. The properties can be classi\ufb01ed as retail, o\ufb03ce, residential or industrial properties, depending on industry practice. The Group\u2019s Chief Operating Decision Makers (\u201cCODM\u201d) are the executive directors, and they take decisions based on detailed reports. These are prepared regularly and are presented to the Board of Directors, which approves the results and gives guidance on the subsequent strategy to be undertaken. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated there on a reasonable basis. Unallocated items comprise mainly investments (other than investment property) and related revenue, corporate assets and head o\ufb03ce expenses. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill. Financial information in respect of investment property is provided to the Board of Directors: net rentals (including rental income, service charge income and property operating expenses) and valuation gains and losses. Individual properties are aggregated into segments with similar economic characteristics. Consequently, the Group is considered to have \ufb01ve reportable operating segments: \u2022 Retail segment: acquires, develops and leases retail properties in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia and Slovakia; \u2022 O\ufb03ce segment: acquires and leases o\ufb03ce properties in Bulgaria and Slovakia; \u2022 Residential segment: develops and sales on completion, residential properties in Romania; \u2022 Industrial segment: acquires and leases industrial facilities in Romania, and \u2022 Corporate segment: head o\ufb03ce, administrative o\ufb03ces, Group and \ufb01nancing expenses. Group entities have been aggregated into \ufb01ve reportable segments (retail, o\ufb03ce, residential, industrial and corporate) as each of these segments have speci\ufb01c revenue streams, di\ufb00erent operational reporting cycles across the Group\u2019s portfolio, separate operational teams including technical, leasing, property and facility management. The Group also reports by geographic segments: Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia. There is also a Corporate segment which includes entities located in Malta and the Netherlands. In addition, the Group\u2019s CODM closely follow changes in distributable earnings to its shareholders as a measure of pro\ufb01tability and as a result of successful implementation of the Group\u2019s strategy. Distributable earnings per share is calculated in terms of the SA REIT Association\u2019s Best Practice Recommendations Second Edition. 4.26 Earnings per share The Group presents basic and diluted earnings per share. Basic and diluted earnings/(loss) per share are calculated by dividing annual pro\ufb01t/(loss) for the year attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year. Diluted earnings/(loss) per share are calculated by dividing the pro\ufb01t/(loss) attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. 4.27 Investment property acquisitions and business combinations The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination where an integrated set of activities and assets, including property, is acquired. More speci\ufb01cally the following criteria, which indicate an acquisition of a business, are considered: the number of properties acquired, the extent to which strategic management processes and operation processes are acquired and the complexity of the processes acquired. In line with amended IFRS 3 since 1 January 2020 the Group may also apply optional concentration test. Business combinations are accounted for using the acquisition method. The acquisition is recognised at the aggregate amount of the consideration transferred, measured at fair value on the date of acquisition and the amount of any non- controlling interest in the acquired entity. If the fair value of net assets acquired is lower, the di\ufb00erence is recorded as goodwill. If the consideration is lower, the di\ufb00erence is recognised directly in the Statement of comprehensive income. When the acquisition of subsidiaries does not represent a business combination, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax is recognised. For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. If the business combination is achieved in stages, the previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in pro\ufb01t or loss. Any contingent consideration to be transferred by the acquirer will be recognised at fair value on the date of acquisition. Subsequent changes to the fair value of any contingent consideration classi\ufb01ed as a liability will be recognised in the Statement of comprehensive income. Acquisition accounting is \ufb01nalised when the Group has gathered all the necessary information, which must occur within 12 months of the acquisition date. There are no exemptions from the 12-month rule for deferred tax assets or changes in the contingent consideration. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. 4.28 Leases where the Group is a lessee The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets for all leases, except for short-term leases and leases of low-value assets. The Group recognises right- of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised and lease payments made at or before the commencement date. Lease liabilities are measured at the present value of lease payments to be made over the lease term. The lease payments include \ufb01xed payments. The present value of lease payments is recognised by discounting the contractual lease payments using the interest rate implicit in the lease, representing the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Valuation of investment property Investment property is stated at its fair value based on valuation reports prepared by international appraisers as at 30 June and 31 December each year. Valuations are based on discounted cash \ufb02ow projections based on reliable estimates of future cash \ufb02ows, using discount rates that re\ufb02ect current market assessments of the uncertainty in the amount and timing of the cash \ufb02ows. These are supported by the terms of any existing lease and other contracts and by external evidence such as current market rents for similar properties in the same location and condition. In preparing the valuation reports on the Group\u2019s investment property, the external appraisers excluded distressed sales when considering comparable sales prices. Management reviewed the appraisers\u2019 assumptions relating to the discounted cash \ufb02ow models used in the valuations and con\ufb01rmed that factors such as the discount rate applied have been appropriately determined considering the market conditions at the end of the reporting period. Valuations of the income generating properties are based on cash \ufb02ow statements, in which the present value of net operating income during a ten-year period and the residual value of the property at the end of the period are calculated. Forecasts of net operating income are based on leases signed at the time of the valuation date, the estimated rental values for existing leases when they expire and the estimated achievable rental values of the existing vacancies. The value of long-term vacancies is estimated based on the properties\u2019 location and condition. The valuers\u2019 assessments of non- recoverable expenses are based on their experience of comparable properties and historical costs provided by the Group. The discount rates used are nominal returns on total capital before tax and vary between 7.30% and 11.95% (2021: 7.00% and 11.00%). The required rates of return are based on assessments of the market\u2019s required returns for similar properties. The discount rate is set individually for each property and is based on the condition and location, the stability of the tenants and lease duration. Further information relating to sensitivity of signi\ufb01cant accounting estimates used in the valuation of investment property is presented in Note 9. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. Functional currency In assessing the functional currency of the Group, including the Company and its subsidiaries, management considers factors such as the local currencies of the countries where the Group operates, as well as the currency that mainly in\ufb02uences rental prices for its properties, the currency that mostly in\ufb02uences labour, material and other costs of providing its services, the currency in which funding is accessed by the Group. Although the competitive forces and regulations that determine the sales prices of goods and services are present in the countries which use di\ufb00erent currencies than EUR, the macroeconomic developments in these countries to some extent is in\ufb02uenced by the eurozone. In addition, in real estate, leases agreements in the countries where the Group operates, as well as the \ufb01nancing of properties are generally denominated in EUR. The Group predominately concludes its lease agreements in Euro (or, if these contracts are not concluded in Euro, they are indexed to the Euro exchange rate), even if invoiced in local currencies. Agreements for construction and development of investment properties are negotiated and concluded in EUR. Administrative and corporate expenses, such as advisory fees, audit fees, valuation fees, asset management fees are mostly negotiated and contracted in EUR. Salary and other employee related costs, although denominated in local currencies, are benchmarked to EUR. Financing contracted by the Group, which include bonds, unsecured credit facilities and secured bank loans is denominated and settled in EUR. Interest paid on bank loans is linked to Euribor. Intra-group funding for property development is also denominated and settled in EUR. In terms of transactions on the real estate market, acquisitions and sales of properties are negotiated and contracted in EUR in all jurisdictions the Group operate, due to the active international investors in those markets. This is also substantiated in external valuation reports, as valuations of properties are prepared in EUR. In conclusion, management assessed that EUR is the functional currency for the Group, including the Company and its subsidiaries. ",
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"f21050": {
"value": "4. SIGNIFICANT ACCOUNTING POLICIES 4.1 Foreign currency translation a. Functional and presentation currency The Consolidated Financial Statements are presented in Euro (\u201c\u20ac\u201d, \u201cEUR\u201d) thousands unless otherwise stated, which is NEPI Rockcastle\u2019s functional and presentation currency. The functional currency is determined by the relevant, primary economic environment of each entity. The other determining factor is the currency in which most cash \ufb02ows, goods and services are denominated and settled in the respective country. When the functional currency cannot be clearly identi\ufb01ed, International Accounting Standard (\u201cIAS\u201d) 21 \u201cThe E\ufb00ects of Changes in Foreign Exchange Rates\u201d allows management to use judgement to determine the functional currency that most faithfully represents the economic e\ufb00ects of the underlying transactions, events and conditions. Any change in the functional currency must be made prospectively in accordance with IAS 21. b. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in pro\ufb01t or loss. 6.3.1 Currency risk Group\u2019s current assets and liabilities are exposed to foreign currency risk on purchases and receivables denominated in Romanian leu (RON), Polish zloty (PLN), Bulgarian Lev (BGN), Hungarian forint (HUF), Serbian dinar (RSD), Czech crown (CZK), Croatian kuna (HRK) and South African rand (ZAR). Cash in\ufb02ows received in other currencies than Euro are converted to Euro using the spot rate available on the collection date. The amount converted to Euro is the net amount of cash in\ufb02ow in a foreign currency and the estimated cash out\ufb02ow in the same currency. The Group applies this policy to control its currency exposures in respect of monetary assets and liabilities denominated in currencies other than EUR. Sensitivities of pro\ufb01t or loss to reasonably possible changes in exchange rates applied at the \ufb01nancial position date relative to the local currency of the respective Group entities, with all other variables such as interest rates held constant, are immaterial. 38. CASH FLOW FROM OPERATIONS \u20ac thousand Note 31 Dec 2022 31 Dec 2021 OPERATING ACTIVITIES Pro\ufb01t after tax 435,273 235,069 Adjustments (56,340) 89,702 Fair value adjustments of investment property 30 (141,701) (34,650) Foreign exchange (gain)/loss (1,585) 935 Gain on disposal of assets held for sale 15 (1,121) (1,995) Net \ufb01nance costs 31 57,589 65,722 Fair value adjustments of derivatives 32 (37,946) (5,174) Losses on extinguishment of \ufb01nancial instruments 21,925 - Deferred tax expense 25 43,266 16,643 Current tax expense 25 23,068 10,274 Depreciation expense for property, plant and equipment 1,469 643 (Reversal of)/ Expense with litigation claim 29 (21,304) 37,304 Changes in working capital (3,571) (740) (Increase) in trade and other receivables (12,484) (6,063) Increase in trade and other payables 20,085 11,545 (Increase) in Inventory property (11,172) (6,222) Net cash \ufb02ow from operations 375,362 324,031 ",
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"f21051": {
"value": "4. SIGNIFICANT ACCOUNTING POLICIES 4.1 Foreign currency translation b. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in pro\ufb01t or loss. ",
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"f21058": {
"value": "4.1 Foreign currency translation a. Functional and presentation currency The Consolidated Financial Statements are presented in Euro (\u201c\u20ac\u201d, \u201cEUR\u201d) thousands unless otherwise stated, which is NEPI Rockcastle\u2019s functional and presentation currency. The functional currency is determined by the relevant, primary economic environment of each entity. The other determining factor is the currency in which most cash \ufb02ows, goods and services are denominated and settled in the respective country. When the functional currency cannot be clearly identi\ufb01ed, International Accounting Standard (\u201cIAS\u201d) 21 \u201cThe E\ufb00ects of Changes in Foreign Exchange Rates\u201d allows management to use judgement to determine the functional currency that most faithfully represents the economic e\ufb00ects of the underlying transactions, events and conditions. Any change in the functional currency must be made prospectively in accordance with IAS 21. Functional currency In assessing the functional currency of the Group, including the Company and its subsidiaries, management considers factors such as the local currencies of the countries where the Group operates, as well as the currency that mainly in\ufb02uences rental prices for its properties, the currency that mostly in\ufb02uences labour, material and other costs of providing its services, the currency in which funding is accessed by the Group. Although the competitive forces and regulations that determine the sales prices of goods and services are present in the countries which use di\ufb00erent currencies than EUR, the macroeconomic developments in these countries to some extent is in\ufb02uenced by the eurozone. In addition, in real estate, leases agreements in the countries where the Group operates, as well as the \ufb01nancing of properties are generally denominated in EUR. The Group predominately concludes its lease agreements in Euro (or, if these contracts are not concluded in Euro, they are indexed to the Euro exchange rate), even if invoiced in local currencies. Agreements for construction and development of investment properties are negotiated and concluded in EUR. Administrative and corporate expenses, such as advisory fees, audit fees, valuation fees, asset management fees are mostly negotiated and contracted in EUR. Salary and other employee related costs, although denominated in local currencies, are benchmarked to EUR. Financing contracted by the Group, which include bonds, unsecured credit facilities and secured bank loans is denominated and settled in EUR. Interest paid on bank loans is linked to Euribor. Intra-group funding for property development is also denominated and settled in EUR. In terms of transactions on the real estate market, acquisitions and sales of properties are negotiated and contracted in EUR in all jurisdictions the Group operate, due to the active international investors in those markets. This is also substantiated in external valuation reports, as valuations of properties are prepared in EUR. In conclusion, management assessed that EUR is the functional currency for the Group, including the Company and its subsidiaries. ",
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"f21093": {
"value": "4.2 Basis of consolidation Subsidiaries The Consolidated Financial Statements incorporate the assets, liabilities, operating results and cash \ufb02ows of the Company and its subsidiaries. Subsidiaries are all entities controlled by the Company. The Company controls an entity when it is exposed or has rights, directly or indirectly, to variable returns from its involvement with the entity and has the ability to a\ufb00ect those returns through its power over it. The \ufb01nancial statements of subsidiaries are included in the Consolidated Financial Statements from the date the control commences until the date the control ceases. The acquisition method is used to account for the business combinations. Identi\ufb01able acquired assets and liabilities, and contingent liabilities, assumed in a business combination are measured at their fair values on the date of acquisition. The consideration transferred for the acquired entity is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred, or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but excluding acquisition related costs, such as advisory, legal, valuation and similar professional services. Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. These Consolidated Financial Statements include the Company and the fully consolidated subsidiaries, as set out below (as at 31 December 2021 the Consolidated Financial Statements included jointly controlled entity consolidated using equity method): No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. ",
"dimensions": {
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},
"f21097": {
"value": "4.2 Basis of consolidation Subsidiaries The Consolidated Financial Statements incorporate the assets, liabilities, operating results and cash \ufb02ows of the Company and its subsidiaries. Subsidiaries are all entities controlled by the Company. The Company controls an entity when it is exposed or has rights, directly or indirectly, to variable returns from its involvement with the entity and has the ability to a\ufb00ect those returns through its power over it. The \ufb01nancial statements of subsidiaries are included in the Consolidated Financial Statements from the date the control commences until the date the control ceases. The acquisition method is used to account for the business combinations. Identi\ufb01able acquired assets and liabilities, and contingent liabilities, assumed in a business combination are measured at their fair values on the date of acquisition. The consideration transferred for the acquired entity is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred, or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but excluding acquisition related costs, such as advisory, legal, valuation and similar professional services. Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. ",
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},
"f21098": {
"value": "4.2 Basis of consolidation Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. These Consolidated Financial Statements include the Company and the fully consolidated subsidiaries, as set out below (as at 31 December 2021 the Consolidated Financial Statements included jointly controlled entity consolidated using equity method): No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 36. JOINT VENTURES The Group had an investment of 50% together with its joint venture partner, Carrefour Romania S.A., in Ploiesti Shopping City, a shopping centre located in Ploiesti, Romania. In September 2022 the Group completed the acquisition of the remaining 50% stake in Ploiesti Shopping City to become the sole owner of the property. The summarised \ufb01nancial statements of the joint ventures are presented below at 100%. The \u201cInvestments in joint ventures\u201d line on the Consolidated Statement of \ufb01nancial position represents 50% of the line \u201cEquity attributable to equity holders\u201d, as shown below. The \u201cShare of pro\ufb01t of joint ventures\u201d line on the Consolidated Statement of comprehensive income represents 50% of the line \u201cPro\ufb01t for the period attributable to equity holders\u201d, as presented below for the period in 2022 where Ploiesti Shopping City was a joint venture (up to 1 September 2022). Statement of \ufb01nancial position in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Non-current assets - 109,130 Current assets - 16,439 Total Assets - 125,569 Non-current liabilities - (74,548) Current liabilities - (3,703) Total Liabilities - (78,251) Equity attributable to equity holders - (47,318) TOTAL EQUITY AND LIABILITIES - (125,569) INVESTMENT IN JOINT VENTURES (50% of the equity attributable to equity holders) - 23,659 Statement of comprehensive income in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Revenue from rent and recoveries 8,648 12,971 Property operating expenses (2,689) (3,369) Partial forgiveness of receivables (Covid-19 forgiveness) 48 (254) Administrative expenses (176) (320) Fair value adjustment investment property 3,264 (1,462) Foreign exchange (loss)/gain (122) 1 Pro\ufb01t before net \ufb01nance costs and other items 8,973 7,567 Finance income 85 16 Finance costs (2,452) (3,695) Bank charges, commissions, and fees 6 (7) Fair value adjustments of derivatives and losses on extinguishment of \ufb01nancial instruments 814 577 Pro\ufb01t before tax 7,426 4,458 Income tax expense (866) (654) PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS 6,560 3,804 Share of pro\ufb01t of joint venture (50% of the Pro\ufb01t of the period) 3,280 1,902 Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Long-term loans granted to joint ventures - 22,466 Included within the balances above from the Statement of \ufb01nancial position are the following: in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Cash and cash equivalents - 13,297 Bank loans (non-current liabilities) - (17,316) Bank loans (current liabilities) - (2,144) The joint venture Ploiesti Shopping City had a secured term loan, which was repaid in full in September 2022. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"f21099": {
"value": "4.2 Basis of consolidation Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. 36. JOINT VENTURES The Group had an investment of 50% together with its joint venture partner, Carrefour Romania S.A., in Ploiesti Shopping City, a shopping centre located in Ploiesti, Romania. In September 2022 the Group completed the acquisition of the remaining 50% stake in Ploiesti Shopping City to become the sole owner of the property. The summarised \ufb01nancial statements of the joint ventures are presented below at 100%. The \u201cInvestments in joint ventures\u201d line on the Consolidated Statement of \ufb01nancial position represents 50% of the line \u201cEquity attributable to equity holders\u201d, as shown below. The \u201cShare of pro\ufb01t of joint ventures\u201d line on the Consolidated Statement of comprehensive income represents 50% of the line \u201cPro\ufb01t for the period attributable to equity holders\u201d, as presented below for the period in 2022 where Ploiesti Shopping City was a joint venture (up to 1 September 2022). Statement of \ufb01nancial position in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Non-current assets - 109,130 Current assets - 16,439 Total Assets - 125,569 Non-current liabilities - (74,548) Current liabilities - (3,703) Total Liabilities - (78,251) Equity attributable to equity holders - (47,318) TOTAL EQUITY AND LIABILITIES - (125,569) INVESTMENT IN JOINT VENTURES (50% of the equity attributable to equity holders) - 23,659 Statement of comprehensive income in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Revenue from rent and recoveries 8,648 12,971 Property operating expenses (2,689) (3,369) Partial forgiveness of receivables (Covid-19 forgiveness) 48 (254) Administrative expenses (176) (320) Fair value adjustment investment property 3,264 (1,462) Foreign exchange (loss)/gain (122) 1 Pro\ufb01t before net \ufb01nance costs and other items 8,973 7,567 Finance income 85 16 Finance costs (2,452) (3,695) Bank charges, commissions, and fees 6 (7) Fair value adjustments of derivatives and losses on extinguishment of \ufb01nancial instruments 814 577 Pro\ufb01t before tax 7,426 4,458 Income tax expense (866) (654) PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS 6,560 3,804 Share of pro\ufb01t of joint venture (50% of the Pro\ufb01t of the period) 3,280 1,902 Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Long-term loans granted to joint ventures - 22,466 Included within the balances above from the Statement of \ufb01nancial position are the following: in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Cash and cash equivalents - 13,297 Bank loans (non-current liabilities) - (17,316) Bank loans (current liabilities) - (2,144) The joint venture Ploiesti Shopping City had a secured term loan, which was repaid in full in September 2022. ",
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"f21100": {
"value": "4.2 Basis of consolidation Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. ",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21101": {
"value": "4.2 Basis of consolidation Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. ",
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},
"f21102": {
"value": "4.2 Basis of consolidation Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. These Consolidated Financial Statements include the Company and the fully consolidated subsidiaries, as set out below (as at 31 December 2021 the Consolidated Financial Statements included jointly controlled entity consolidated using equity method): No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. 28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Advisory services In the year ended 31 December 2022, the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. 36. JOINT VENTURES The Group had an investment of 50% together with its joint venture partner, Carrefour Romania S.A., in Ploiesti Shopping City, a shopping centre located in Ploiesti, Romania. In September 2022 the Group completed the acquisition of the remaining 50% stake in Ploiesti Shopping City to become the sole owner of the property. The summarised \ufb01nancial statements of the joint ventures are presented below at 100%. The \u201cInvestments in joint ventures\u201d line on the Consolidated Statement of \ufb01nancial position represents 50% of the line \u201cEquity attributable to equity holders\u201d, as shown below. The \u201cShare of pro\ufb01t of joint ventures\u201d line on the Consolidated Statement of comprehensive income represents 50% of the line \u201cPro\ufb01t for the period attributable to equity holders\u201d, as presented below for the period in 2022 where Ploiesti Shopping City was a joint venture (up to 1 September 2022). Statement of \ufb01nancial position in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Non-current assets - 109,130 Current assets - 16,439 Total Assets - 125,569 Non-current liabilities - (74,548) Current liabilities - (3,703) Total Liabilities - (78,251) Equity attributable to equity holders - (47,318) TOTAL EQUITY AND LIABILITIES - (125,569) INVESTMENT IN JOINT VENTURES (50% of the equity attributable to equity holders) - 23,659 Statement of comprehensive income in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Revenue from rent and recoveries 8,648 12,971 Property operating expenses (2,689) (3,369) Partial forgiveness of receivables (Covid-19 forgiveness) 48 (254) Administrative expenses (176) (320) Fair value adjustment investment property 3,264 (1,462) Foreign exchange (loss)/gain (122) 1 Pro\ufb01t before net \ufb01nance costs and other items 8,973 7,567 Finance income 85 16 Finance costs (2,452) (3,695) Bank charges, commissions, and fees 6 (7) Fair value adjustments of derivatives and losses on extinguishment of \ufb01nancial instruments 814 577 Pro\ufb01t before tax 7,426 4,458 Income tax expense (866) (654) PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS 6,560 3,804 Share of pro\ufb01t of joint venture (50% of the Pro\ufb01t of the period) 3,280 1,902 Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Long-term loans granted to joint ventures - 22,466 Included within the balances above from the Statement of \ufb01nancial position are the following: in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Cash and cash equivalents - 13,297 Bank loans (non-current liabilities) - (17,316) Bank loans (current liabilities) - (2,144) The joint venture Ploiesti Shopping City had a secured term loan, which was repaid in full in September 2022. 40. RELATED PARTY TRANSACTIONS Identity of related parties with whom material transactions have occurred The Directors and jointly controlled entities are related parties for the Group. Material related party transactions Fees paid to Directors, together with the performance bonus, during the current and previous year are detailed below. No other payments were made to Directors by NEPI Rockcastle, except reimbursements for travel and accommodation. Transactions with joint ventures are presented in Note 36. 31 Dec 2022 31 Dec 2021 in \u20ac thousand Directors\u2019 fees 2022 performance related remuneration 2021 performance related remuneration Interim period related remuneration (one o\ufb00) Directors\u2019 fees 2020 performance related remuneration R\u00fcdiger Dany 1 517 870 200 200 202 - Eliza Predoiu 2 253 490 - 150 - - Marek Noetzel 3 329 518 225 - 300 30 Alex Morar 4 188 - - - 600 60 Mirela Covasa 5 147 - - - 400 40 Robert Emslie 6 * - - - - 78 - George Aase 7 * 102 - - - 113 - Antoine Dijkstra* 88 - - - 104 - Andre van der Veer* 98 - - - 116 - Andreas Klingen* 89 - - - 103 - Steven Brown 75 - - - 84 - Andries de Lange 63 - - - 74 - Jonathan Lurie 8 68 - - - 25 - Ana Maria Mihaescu 9 74 - - - 27 - TOTAL 2,091 1,878 425 350 2,226 130 1 Mr. R\u00fcdiger Dany was appointed as Executive Director and Chief Operating O\ufb03cer of the Group with e\ufb00ect from 18 August 2021. From 1 February 2022 he was appointed as interim CEO and from 1 June 2022 he was con\ufb01rmed in his role on a permanent basis. 2 Ms. Eliza Predoiu was appointed as interim CFO of the Group with e\ufb00ect from 1 February 2022 and from 1 June 2022 she was con\ufb01rmed in her role on a permanent basis. 3 Mr. Marek Noetzel, an Executive Director of the Group, was appointed as Chief Operating O\ufb03cer e\ufb00ective from 1 June 2022. 4 Mr. Alex Morar resigned from his position of Chief Operating O\ufb03cer e\ufb00ective from 1 February 2022. The fees for 2022 include a non-compete compensation of \u20ac120 thousand. 5 Ms Mirela Covasa resigned from her position of Chief Financial O\ufb03cer e\ufb00ective from 1 February 2022. The fees for 2022 include a non-compete compensation of \u20ac100 thousand. 6 Mr Robert Emslie has retired from his position as non-Executive Director and Chairman of the Board of Directors e\ufb00ective 18 August 2021. 7 Mr. George Aase was appointed as Chairman of the Board of Directors e\ufb00ective 18 August 2021. 8 Mr. Jonathan Lurie was appointed as an Independent non-Executive Director with e\ufb00ect from 18 August 2021. 9 Ms. Ana Maria Mihaescu was appointed as an Independent non-Executive Director with e\ufb00ect from 18 August 2021. *The remuneration of the non-Executive Directors for the year includes a cumulative amount of \u20acnil thousand (2021: \u20ac107 thousand) paid for one-o\ufb00 services performed during the previous year. a. Shares held under the Share Purchase Schemes^: Name of Director Number of shares held as at 31 Dec 2022 Number of shares held as at 31 Dec 2021 Marek Noetzel 88,358 88,358 TOTAL 88,358 88,358 ^Shares presented in the table above are pledged as security for the loan under Share Purchase Scheme. b. Shares unvested under the LTSIP Name of Director Number of shares unvested at 31 Dec 2022 Number of shares unvested at 31 Dec 2021 R\u00fcdiger Dany 137,945 - Eliza Predoiu 22,000 16,966 Marek Noetzel 78,394 93,995 TOTAL 238,339 110,961 As a result of the exit arrangements signed with the former CEO and CFO during 2021, the Company transferred to them 299,587 shares and 214,053 shares respectively, representing the total number of unvested shares as at exit date from the previous 2017 \u2013 2021 awards. The shares have an associated selling restriction correlated with the initial vesting of each tranche. The Group accounted for the related expense associated with this transfer in the 2021 \ufb01nancial statements. The share based payment expense related to the directors of the Group amounted to \u20ac262 thousand in 2022 (31 December 2021: \u20ac4,325 thousand). The directors of the Group hold 739,612 shares as at 31 December 2022 (31 December 2021: 2,356,717 shares), which represents 0.12% of the outstanding shares (31 December 2021: 0.38% of the outstanding shares). Out of the above- mentioned shareholding, 283,397 shares (31 December 2021: 130,297 shares) which represent 0.05% of the outstanding shares (31 December 2021: 0.02% of the outstanding shares) are held by the non-executive directors. There were no changes to the Director\u2019s interests from 31 December 2022 to the approval of the annual audited Consolidated Financial Statements. Other than as set out in note 40(a) above, none of the shares of the Director are subject to security, guarantee, collateral and they are not encumbered in any way. c. Advisory services As mentioned in note 28, \u201cAdministrative expenses\u201d, in 2022 the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. ",
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"value": "4.2 Basis of consolidation Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. These Consolidated Financial Statements include the Company and the fully consolidated subsidiaries, as set out below (as at 31 December 2021 the Consolidated Financial Statements included jointly controlled entity consolidated using equity method): No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. ",
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"f21117": {
"value": "Jointly controlled entities The Group had contractual arrangements with other parties that represented joint ventures. These take the form of agreements to jointly control other entities. The Group accounts for its investments in joint ventures using the equity method. Under the equity method, the initial recognition of an investment in a joint venture is at cost; the carrying amount is subsequently increased or decreased to recognise the Group\u2019s share of pro\ufb01t or loss of the joint venture. Distributions received from a joint venture reduce the carrying amount of the investment. The Group classi\ufb01es its investment in joint ventures as a non-current asset and recognises its share of the joint ventures\u2019 net result in the Statement of comprehensive income. These Consolidated Financial Statements include the Company and the fully consolidated subsidiaries, as set out below (as at 31 December 2021 the Consolidated Financial Statements included jointly controlled entity consolidated using equity method): No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 4.2 Basis of consolidation Subsidiaries The Consolidated Financial Statements incorporate the assets, liabilities, operating results and cash \ufb02ows of the Company and its subsidiaries. Subsidiaries are all entities controlled by the Company. The Company controls an entity when it is exposed or has rights, directly or indirectly, to variable returns from its involvement with the entity and has the ability to a\ufb00ect those returns through its power over it. The \ufb01nancial statements of subsidiaries are included in the Consolidated Financial Statements from the date the control commences until the date the control ceases. The acquisition method is used to account for the business combinations. Identi\ufb01able acquired assets and liabilities, and contingent liabilities, assumed in a business combination are measured at their fair values on the date of acquisition. The consideration transferred for the acquired entity is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred, or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but excluding acquisition related costs, such as advisory, legal, valuation and similar professional services. No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.27 Investment property acquisitions and business combinations For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. 35. SIGNIFICANT ASSET DEALS Acquisition of non-controlling interest In March 2022, the Group acquired the remaining non-controlling stakes in ACE3 Sp.zo.o. and Monarda Sp. z o.o. of 15% in 10% respectively, for a cash consideration of \u20ac9.4 million, thus obtaining 100% control in the two Polish entities. 36. JOINT VENTURES The Group had an investment of 50% together with its joint venture partner, Carrefour Romania S.A., in Ploiesti Shopping City, a shopping centre located in Ploiesti, Romania. In September 2022 the Group completed the acquisition of the remaining 50% stake in Ploiesti Shopping City to become the sole owner of the property. The summarised \ufb01nancial statements of the joint ventures are presented below at 100%. The \u201cInvestments in joint ventures\u201d line on the Consolidated Statement of \ufb01nancial position represents 50% of the line \u201cEquity attributable to equity holders\u201d, as shown below. The \u201cShare of pro\ufb01t of joint ventures\u201d line on the Consolidated Statement of comprehensive income represents 50% of the line \u201cPro\ufb01t for the period attributable to equity holders\u201d, as presented below for the period in 2022 where Ploiesti Shopping City was a joint venture (up to 1 September 2022). Statement of \ufb01nancial position in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Non-current assets - 109,130 Current assets - 16,439 Total Assets - 125,569 Non-current liabilities - (74,548) Current liabilities - (3,703) Total Liabilities - (78,251) Equity attributable to equity holders - (47,318) TOTAL EQUITY AND LIABILITIES - (125,569) INVESTMENT IN JOINT VENTURES (50% of the equity attributable to equity holders) - 23,659 Statement of comprehensive income in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Revenue from rent and recoveries 8,648 12,971 Property operating expenses (2,689) (3,369) Partial forgiveness of receivables (Covid-19 forgiveness) 48 (254) Administrative expenses (176) (320) Fair value adjustment investment property 3,264 (1,462) Foreign exchange (loss)/gain (122) 1 Pro\ufb01t before net \ufb01nance costs and other items 8,973 7,567 Finance income 85 16 Finance costs (2,452) (3,695) Bank charges, commissions, and fees 6 (7) Fair value adjustments of derivatives and losses on extinguishment of \ufb01nancial instruments 814 577 Pro\ufb01t before tax 7,426 4,458 Income tax expense (866) (654) PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS 6,560 3,804 Share of pro\ufb01t of joint venture (50% of the Pro\ufb01t of the period) 3,280 1,902 Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Long-term loans granted to joint ventures - 22,466 Included within the balances above from the Statement of \ufb01nancial position are the following: in \u20ac thousand Ploiesti Shopping City 31 Dec 2022 Ploiesti Shopping City 31 Dec 2021 Cash and cash equivalents - 13,297 Bank loans (non-current liabilities) - (17,316) Bank loans (current liabilities) - (2,144) The joint venture Ploiesti Shopping City had a secured term loan, which was repaid in full in September 2022. ",
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"value": "No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 1 ACE3 Sp. z o.o. Poland Property-owning 100 85 2 Arena Center Zagreb d.o.o. Croatia Property-owning 100 100 3 Atrium Copernicus Sp. Zo.o. Poland Property-owning 100 - 4 AUPARK Kosice SC, s.r.o. Slovakia Services 100 100 5 AUPARK Kosice, spol. s.r.o. Slovakia Property-owning 100 100 6 AUPARK Piestany SC, s.r.o. Slovakia Services 100 100 7 AUPARK Piestany, spol. s.r.o. Slovakia Property-owning 100 100 8 AUPARK Tower Kosice, s.r.o. Slovakia Property-owning 100 100 9 AUPARK \u017dilina SC a.s. Slovakia Services 100 100 10 AUPARK \u017dilina, spol. s.r.o. Slovakia Property-owning 100 100 11 Aurora Mall Buzau SRL Romania Property-owning 100 100 12 Bia\u0142ystok Property Sp. z o.o. Poland Property-owning 100 100 13 Bonarka City Center Sp. z o.o. Poland Property-owning 100 100 14 Braila Promenada Mall SRL Romania Property-owning 100 100 15 Brasov Shopping City SRL Romania Property-owning 100 100 16 Bulfeld EOOD Bulgaria Property-owning 100 100 17 CEE Property Bulgaria EOOD Bulgaria Property-owning 100 100 18 CHP 1 Sp. z o.o. Poland Services 100 100 19 City Park Constanta SRL Romania Property-owning 100 100 20 Constanta Shopping City SRL Romania Property-owning 100 100 21 Deva Shopping City SRL Romania Property-owning 100 100 22 ECP Security Holdings Limited Isle of Man Holding 100 100 23 Energit Sp. z o.o. Poland Services 100 100 No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 24 E-Power Supply d.o.o. Beograd Serbia Services 100 100 25 E-power supply EOOD Bulgaria Services 100 100 26 E-power supply management d.o.o. Croatia Services 100 100 27 E-Power Supply s.r.o. Slovakia Services 100 100 28 Expo Real Estate Project SRL Romania Services 100 100 29 Festival Shopping Center SRL Romania Property-owning 100 100 30 Floreasca Center SRL Romania Holding 100 100 31 FORUM Usti s.r.o. Czech Republic Property-owning 100 100 32 Galati Shopping City SRL Romania Property-owning 100 100 33 General Building Management SRL Romania Property-owning 100 100 34 General Investment SRL Romania Property-owning 100 100 35 Gontar Sp. z o.o. Poland Property-owning 100 100 36 Forum Gdansk Sp. zo.o. Poland Property-owning 100 - 37 HANSA Immobilien EOOD Bulgaria Property-owning 100 100 38 INLOGIS VI s.r.o. Slovakia Property-owning 100 100 39 Iris Titan Shopping Center SRL Romania Property-owning 100 100 40 Karolinka Property Sp. z o.o. Poland Property-owning 100 100 41 Liberec Property s.r.o. Czech Republic Property-owning 100 100 42 Mammut Zrt Hungary Property-owning 100 100 43 Mammut Management Kft Hungary Services 100 100 44 Mammut Real Estate Kft Hungary Property-owning 100 100 45 Marapi Sp. z o.o. Poland Property-owning 100 100 46 Marketing Advisers SRL Romania Services 100 100 47 Mega Mall Bucuresti SRL Romania Property-owning 100 100 48 Milvus Sp. z o.o. Poland Property-owning 100 100 49 Mlyny a.s. Slovakia Property-owning 100 100 50 Monarda Sp. z o.o. Poland Property-owning 100 90 51 NE Property B.V. Netherlands Holding 100 100 52 NEPI Bucharest One SRL Romania Property-owning 100 100 53 NEPI Bucharest Two SRL Romania Property-owning 100 100 54 NEPI Croatia Management d.o.o. Croatia Services 100 100 55 NEPI Czech Management s.r.o. Czech Republic Services 100 100 56 Nepi Four Real Estate Solutions SRL Romania Holding 100 100 57 Nepi Holdings Ltd (wound up in 2022) Isle of Man Holding - 100 58 NEPI Investment Management SRL Romania Services 100 100 59 NEPI Project Four EOOD Bulgaria Property-owning 100 100 60 NEPI Project One EOOD Bulgaria Property-owning 100 100 61 NEPI Project Three EOOD Bulgaria Services 100 100 62 NEPI Project Two EOOD Bulgaria Holding 100 100 63 NEPI Real Estate Development d.o.o. Serbia Services 100 100 64 NEPI Real Estate Project One d.o.o. Serbia Property-owning 100 100 65 Nepi Real Estate Project Three d.o.o. (sold in 2022) Serbia Property-owning - 100 66 NEPI Rockcastle Hungary Kft. Hungary Services 100 100 67 NEPI Rockcastle Lithuania UAB Lithuania Services 100 100 68 Nepi Seventeen Land Development SRL Romania Services 100 100 69 NEPI Six Development SRL Romania Services 100 100 70 Nepi Sixteen Real Estate Investment SRL Romania Holding 100 100 71 Nepi Slovak Centres One a.s. Slovakia Services 100 100 72 NEPI Slovakia Management s.r.o. Slovakia Services 100 100 4.2 Basis of consolidation Subsidiaries The Consolidated Financial Statements incorporate the assets, liabilities, operating results and cash \ufb02ows of the Company and its subsidiaries. Subsidiaries are all entities controlled by the Company. The Company controls an entity when it is exposed or has rights, directly or indirectly, to variable returns from its involvement with the entity and has the ability to a\ufb00ect those returns through its power over it. The \ufb01nancial statements of subsidiaries are included in the Consolidated Financial Statements from the date the control commences until the date the control ceases. The acquisition method is used to account for the business combinations. Identi\ufb01able acquired assets and liabilities, and contingent liabilities, assumed in a business combination are measured at their fair values on the date of acquisition. The consideration transferred for the acquired entity is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred, or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but excluding acquisition related costs, such as advisory, legal, valuation and similar professional services. No Subsidiary/ joint venture Country of incorporation Principal activity E\ufb00ective interest 2022 (%) E\ufb00ective interest 2021 (%) 73 NEPI Ten Development Solutions SRL Romania Property-owning 100 100 74 Nepi Twenty Real Estate Development SRL Romania Services 100 100 75 Nepi Twenty-One Investment Estate SRL Romania Services 100 100 76 Nepi Twenty-Three Investment Solutions SRL Romania Property-owning 100 100 77 NEPIOM Ltd Malta Holding 100 100 78 New Energy Management SRL Romania Services 100 100 79 Nobilia Sp. z o.o. Poland Services 100 100 80 NRE Sibiu Shopping City SRL Romania Property-owning 100 100 81 Olsztyn Property Sp. z o.o. Poland Property-owning 100 100 82 Otopeni Warehouse and Logistics SRL Romania Property-owning 100 100 83 Piotrk\u00f3w Property Sp. z o.o. Poland Property-owning 100 100 84 Platan Property Sp. z o.o. Poland Property-owning 100 100 85 Ploiesti Shopping City SRL (acquisition of the remaining 50% stake in joint venture in 2022) Romania Property-owning 100 50 86 Pogoria Property Sp. z o.o. Poland Property-owning 100 100 87 Promenada Mall Bucuresti SRL Romania Property-owning 100 100 88 Ramnicu Valcea Shopping City SRL Romania Property-owning 100 100 89 Real Estate Asset Management SRL Romania Services 100 100 90 Retail Park Pitesti SRL Romania Property-owning 100 100 91 Rockcastle Europe Limited Mauritius Holding 100 100 92 Rockcastle Global Real Estate Holdings B.V. Netherlands Holding 100 100 93 Rockcastle Poland Sp. z o.o. Poland Services 100 100 94 Rockcastle UK Property SPV Limited (wound up in 2022) Mauritius Holding - 100 95 Satu Mare Shopping City SRL Romania Property-owning 100 100 96 SCP s.r.o. Slovakia Property-owning 100 100 97 Serenada Property Sp. z o.o. Poland Services 100 100 98 Severin Shopping Center SRL Romania Property-owning 100 100 99 Shopping City Piatra Neamt SRL Romania Property-owning 100 100 100 Sibiu Shopping City 2 SRL Romania Property-owning 100 100 101 Shopping City Timisoara SRL Romania Property-owning 100 100 102 So\ufb01a Commercial Centre EOOD Bulgaria Services 100 100 103 Symmetry Arena Kft Hungary Property-owning 100 100 104 Targu Jiu Development SRL Romania Property-owning 100 100 105 Targu Mures Shopping City SRL Romania Property-owning 100 100 106 Tummam Kft Hungary Property-owning 100 100 107 U\u017edaroji akcin\u0117 bendrov\u0117 Ozantis Lithuania Property-owning 100 100 108 Vulcan Residential Park SRL Romania Property-owning 100 100 109 Vulcan Value Centre SRL Romania Property-owning 100 100 110 Zielona G\u00f3ra Property Sp. z o.o. Poland Property-owning 100 100 Transactions and balances eliminated on consolidation Intra-group balances and transactions, and any gains and losses or income and expenses arising from intra-group transactions, as well as investments in subsidiaries and corresponding equity in the subsidiaries are eliminated in preparing the Consolidated Financial Statements. 4.27 Investment property acquisitions and business combinations For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. 35. SIGNIFICANT ASSET DEALS Acquisition of non-controlling interest In March 2022, the Group acquired the remaining non-controlling stakes in ACE3 Sp.zo.o. and Monarda Sp. z o.o. of 15% in 10% respectively, for a cash consideration of \u20ac9.4 million, thus obtaining 100% control in the two Polish entities. ",
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"f21857": {
"value": "4.3 Investment property in use Investment property is held to earn rental income, capital appreciation or both. The cost of investment property acquired by any other means than a business combination consists of the purchase price and directly attributable expenditure. Subsequent expenditure relating to investment property is capitalised when future economic bene\ufb01ts from the use of the asset are probable and the cost of the item can be measured reliably. All other subsequent expenditure is recognised as an expense during the period it is incurred. After initial recognition, investment property in use is measured at fair value. Fair value is determined semi-annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are based on the open market value, using the discounted cash \ufb02ow method. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income for the period during which they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. Lease incentives, such as rent-free periods, discounts during the lease or payment of \ufb01t-out works for the bene\ufb01t of the tenants, are part of value of the investment property and are straight-lined over the lease term. The lease term corresponds to the contractual duration for the majority of the leases, except for the anchor tenants, for which the lease duration is assessed by the Group based on past experience and taking into account factors such as: GLA of the property where the anchor tenant is located, catchment area, dominance/competition in the catchment area or purchasing power. Gains or losses on disposal of investment property are calculated as proceeds less carrying amount and recognized in the Statement of comprehensive income. 4.4 Investment property under development Property that is being constructed or developed for future use as investment property is classi\ufb01ed as investment property under development and carried at cost until construction or development is complete, or its fair value can be reliably determined. The land on which investment property is constructed or developed is carried at fair value, which is determined semi- annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are performed using the market comparable approach or residual approach. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income during the period when they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. Valuation of investment property Investment property is stated at its fair value based on valuation reports prepared by international appraisers as at 30 June and 31 December each year. Valuations are based on discounted cash \ufb02ow projections based on reliable estimates of future cash \ufb02ows, using discount rates that re\ufb02ect current market assessments of the uncertainty in the amount and timing of the cash \ufb02ows. These are supported by the terms of any existing lease and other contracts and by external evidence such as current market rents for similar properties in the same location and condition. In preparing the valuation reports on the Group\u2019s investment property, the external appraisers excluded distressed sales when considering comparable sales prices. Management reviewed the appraisers\u2019 assumptions relating to the discounted cash \ufb02ow models used in the valuations and con\ufb01rmed that factors such as the discount rate applied have been appropriately determined considering the market conditions at the end of the reporting period. Valuations of the income generating properties are based on cash \ufb02ow statements, in which the present value of net operating income during a ten-year period and the residual value of the property at the end of the period are calculated. Forecasts of net operating income are based on leases signed at the time of the valuation date, the estimated rental values for existing leases when they expire and the estimated achievable rental values of the existing vacancies. The value of long-term vacancies is estimated based on the properties\u2019 location and condition. The valuers\u2019 assessments of non- recoverable expenses are based on their experience of comparable properties and historical costs provided by the Group. The discount rates used are nominal returns on total capital before tax and vary between 7.30% and 11.95% (2021: 7.00% and 11.00%). The required rates of return are based on assessments of the market\u2019s required returns for similar properties. The discount rate is set individually for each property and is based on the condition and location, the stability of the tenants and lease duration. Further information relating to sensitivity of signi\ufb01cant accounting estimates used in the valuation of investment property is presented in Note 9. 9. INVESTMENT PROPERTY IN USE Movement in investment property in use in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 5,670,776 5,591,463 Additions from asset deals (Note 35) 367,769 12,530 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 104,287 - Transferred from investment property under development (Note 10) 51,139 92,528 Fair value adjustments (Note 30) 134,234 30,306 Additions to the right-of-use assets from acquired assets (Note 35) 3,843 - Fair value adjustment of right-of-use assets (Note 30) (255) (251) Investment property reclassi\ufb01ed as held for sale (Note 15.1) - (55,800) CARRYING VALUE 6,331,793 5,670,776 As at 31 December 2022, the balance of investment property included also right-of-use assets of \u20ac37,200 thousand (2021: \u20ac33,611 thousand) representing long-term land concessions for the Group Polish properties contracted from local government. Investment property is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. For the year ended 31 December 2022 and 31 December 2021, the Group commissioned independent year-end appraisal reports on its investment property in use to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, all members of the Royal Institution of Chartered Surveyors (RICS). Valuations are prepared in accordance with the RICS Valuation \u2013 Global Standards 2021 (the \u201cRed Book\") and ANEVAR Valuation Standards-2022 Edition which incorporate the International Valuation Standards (\u201cIVS\u201d). All investment property in use is valued by the Income Method. For the years ended 31 December 2022 and 31 December 2021 respectively, the applied method used for all investment property in use was discounted cash \ufb02ow (\u201cDCF\u201d). DCF uses explicit assumptions regarding the bene\ufb01ts and liabilities of ownership over the asset\u2019s life, including an exit, or terminal, value. As an accepted method within the Income Method to valuation, the DCF method involves the projection of a series of cash \ufb02ows onto a real property interest. To these projected cash \ufb02ow series, an appropriate, market-derived discount rate is applied to establish the present value of cash in\ufb02ows associated with the real property. The duration of cash \ufb02ow, and the speci\ufb01c timing of in\ufb02ows and out\ufb02ows, are determined by events such as rent reviews, lease renewal and related lease-up periods, re-letting, redevelopment or refurbishment. The appropriate duration is typically driven by market behaviour. In the case of investment property, periodic cash \ufb02ow is typically estimated as gross income less vacancy, non-recoverable expenses, collection losses, lease incentives, maintenance costs, agent and commission fees, and other operating and management expenses. The series of periodic net cash in\ufb02ows, combined with the estimated terminal value anticipated at the end of the projection period, is then discounted. For all investment property in use, the current use equates to the highest and best use. The Group provides all information necessary for the valuations, including detailed tenancy schedules, comprising information on occupied and vacant units, unit areas and numbers, lease commencement and expiry dates, break options and indexation clauses. All properties have been inspected by representatives of external valuers for the purpose of 31 December 2022 valuations. The Group\u2019s valuers note in their valuation report that wherever appropriate, sustainability and environmental matters are an integral part of the valuation approach. Sustainability is taken to mean the consideration of such matters as environment and climate change, health and wellbeing and corporate responsibility that can or do impact on the valuation of an asset. In a valuation context, sustainability encompasses a wide range of physical, social, environmental, and economic factors that can a\ufb00ect value. The range of issues includes key environmental risks, such as energy e\ufb03ciency and climate, as well as matters of design, con\ufb01guration, accessibility, legislation, management, and \ufb01scal considerations. As at 31 December 2022, the investment property in use had an EPRA Vacancy Rate of 2.7% (31 December 2021: 4.0%). EPRA Vacancy Rate is a non-IFRS measure which is de\ufb01ned in Appendix 1. As at the same date, the Group\u2019s portfolio included retail, o\ufb03ce and industrial properties. IFRS 13 de\ufb01nes fair value as the price that would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants at the measurement date. The Group currently discloses fair values according to a \u2018fair value hierarchy\u2019 (as per IFRS 13) which categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs. The fair value hierarchy is explained below: \u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; \u2022 Level 2: use of a model with inputs (other than quoted prices included within Level 1) that are directly, or indirectly, observable market data, and \u2022 Level 3: use of a model with inputs not based on observable market data. The Group\u2019s investment property is categorised as Level 3. For assets and liabilities that are recognised in the \ufb01nancial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is signi\ufb01cant to the fair value measurement as a whole) at the end of each reporting period. There were no transfers between hierarchy levels during the year. The signi\ufb01cant unobservable inputs used in the fair value measurement categorized within Level 3 of the fair value hierarchy of the Group\u2019s property portfolio, together with the impact of signi\ufb01cant movements in these inputs on the fair value measurement, are detailed below: Unobservable input Impact on fair value of increase in input Estimated rental value Increase Discount rate Decrease Capitalisation rate for terminal value Decrease Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2022 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail Discounted cash \ufb02ow 294 \u2013 24,411 (13,449*) 7.30% \u2013 11.45% (8.94*) 5.45% \u2013 9.25% (7.08*) O\ufb03ce Discounted cash \ufb02ow 1,851 \u2013 4,393 (3,675*) 8.50% \u2013 8.75% (8.68*) 7.75% \u2013 8.15% (8.04*) Industrial Discounted cash \ufb02ow 645 \u2013 1,727 (1,416*) 10.95% \u2013 11.95% (11.66*) 8.75% \u2013 9.75% (9.46*) *Amounts or percentages represent weighted averages Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2021 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail^ Discounted cash \ufb02ow 246 \u2013 22,190 (12,702*) 7.00% \u2013 11.00% (8.50*) 5.30% \u2013 9.00% (6.90*) O\ufb03ce Discounted cash \ufb02ow 1,840 \u2013 4,419 (3,744*) 8.50% \u2013 8.75% (8.57*) 7.50% \u2013 7.90% (7.80*) Industrial Discounted cash \ufb02ow 556 \u2013 1,531 (1,261*) 10.00% \u2013 11.00% (10.72*) 8.50% \u2013 9.50% (9.22*) *Amounts or percentages represent weighted averages. ^Excluding joint ventures. Portfolio valuation: sensitivity to changes in the discount rate and exit rate The tables below present the change in the valuation of the shopping centre portfolio using di\ufb00erent discount rate and exit rate assumptions than those used by the appraisers. Discount rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 5.2% 2.5% -2.4% -4.7% Poland 5.7% 2.8% -2.6% -5.1% Croatia 5.8% 2.8% -2.7% -5.2% Slovakia 6.9% 3.4% -3.1% -6.1% Bulgaria 5.9% 2.9% -2.7% -5.3% Serbia 5.6% 2.7% -2.6% -5.0% Czech Republic 7.1% 3.4% -3.2% -6.3% Lithuania 5.3% 2.6% -2.4% -4.8% Hungary 6.5% 3.1% -2.9% -5.7% TOTAL 5.7% 2.8% -2.6% -5.1% Exit rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 6.8% 3.3% -3.1% -6.0% Poland 7.9% 3.8% -3.5% -6.8% Croatia 6.6% 3.2% -3.0% -5.8% Slovakia 7.8% 3.7% -3.5% -6.7% Bulgaria 6.8% 3.3% -3.1% -6.0% Serbia 6.3% 3.0% -2.9% -5.6% Czech Republic 8.1% 3.9% -3.6% -7.0% Lithuania 7.0% 3.4% -3.2% -6.2% Hungary 8.3% 4.0% -3.7% -7.1% TOTAL 7.3% 3.5% -3.3% -6.4% 10. INVESTMENT PROPERTY UNDER DEVELOPMENT Movement in investment property under development in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 170,900 210,935 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 1,700 - Additions from asset deals (acquisition of land for development) (Note 35) 18,201 - Additions from construction in progress 136,083 55,154 Fair value adjustments (Note 30) 8,917 4,110 Assets which became operational and were transferred to Investment property in use (Note 9) (51,139) (92,528) Investment property under development reclassi\ufb01ed as held for sale (Note 15.1) (20,318) (2,550) Transfer to inventory property - (4,221) Carrying value 264,344 170,900 Land included in Investment property under development is carried at fair value and is independently assessed on a semi-annual basis. For the years ended 31 December 2022 and 2021, the Group commissioned independent year-end reports to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, based on which the fair value of land was adjusted. Land included in Investment property under development is classi\ufb01ed Level 3 on the fair value hierarchy as de\ufb01ned in IFRS 13. The valuation technique is sales comparison or residual approach (in accordance with RICS Valuation Standards and ANEVAR Valuation Standards (for Romanian properties). Land under sales comparison method was valued by the external appraisers using the recent transactions of similar land for development in the proximity of the subject property. The residual approach determines the residual land value by subtracting purchase and development cost from the expected gross development value of the project at completion. The construction works in the investment property under development are held at cost, and their carrying value is a reasonable approximation of their fair value. The methods have been consistently applied for the comparative period. Borrowing costs capitalised in 2022 amount to \u20ac3,513 thousand (2021: \u20ac3,193 thousand) and were calculated using an average annual interest rate of 2.3% (2021: 2.4%). The balance of Investment property under development split by land carried at fair value and additions from construction works held at cost (which approximate fair value) is detailed below: Investment property under development in \u20ac thousand 31 Dec 2022 31 Dec 2021 Land (at fair value) 157,609 147,843 Construction works (at cost) 106,735 23,057 TOTAL 264,344 170,900 ",
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"value": "4.3 Investment property in use Investment property is held to earn rental income, capital appreciation or both. The cost of investment property acquired by any other means than a business combination consists of the purchase price and directly attributable expenditure. Subsequent expenditure relating to investment property is capitalised when future economic bene\ufb01ts from the use of the asset are probable and the cost of the item can be measured reliably. All other subsequent expenditure is recognised as an expense during the period it is incurred. After initial recognition, investment property in use is measured at fair value. Fair value is determined semi-annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are based on the open market value, using the discounted cash \ufb02ow method. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income for the period during which they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. Lease incentives, such as rent-free periods, discounts during the lease or payment of \ufb01t-out works for the bene\ufb01t of the tenants, are part of value of the investment property and are straight-lined over the lease term. The lease term corresponds to the contractual duration for the majority of the leases, except for the anchor tenants, for which the lease duration is assessed by the Group based on past experience and taking into account factors such as: GLA of the property where the anchor tenant is located, catchment area, dominance/competition in the catchment area or purchasing power. Gains or losses on disposal of investment property are calculated as proceeds less carrying amount and recognized in the Statement of comprehensive income. 4.4 Investment property under development Property that is being constructed or developed for future use as investment property is classi\ufb01ed as investment property under development and carried at cost until construction or development is complete, or its fair value can be reliably determined. The land on which investment property is constructed or developed is carried at fair value, which is determined semi- annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are performed using the market comparable approach or residual approach. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income during the period when they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. Valuation of investment property Investment property is stated at its fair value based on valuation reports prepared by international appraisers as at 30 June and 31 December each year. Valuations are based on discounted cash \ufb02ow projections based on reliable estimates of future cash \ufb02ows, using discount rates that re\ufb02ect current market assessments of the uncertainty in the amount and timing of the cash \ufb02ows. These are supported by the terms of any existing lease and other contracts and by external evidence such as current market rents for similar properties in the same location and condition. In preparing the valuation reports on the Group\u2019s investment property, the external appraisers excluded distressed sales when considering comparable sales prices. Management reviewed the appraisers\u2019 assumptions relating to the discounted cash \ufb02ow models used in the valuations and con\ufb01rmed that factors such as the discount rate applied have been appropriately determined considering the market conditions at the end of the reporting period. Valuations of the income generating properties are based on cash \ufb02ow statements, in which the present value of net operating income during a ten-year period and the residual value of the property at the end of the period are calculated. Forecasts of net operating income are based on leases signed at the time of the valuation date, the estimated rental values for existing leases when they expire and the estimated achievable rental values of the existing vacancies. The value of long-term vacancies is estimated based on the properties\u2019 location and condition. The valuers\u2019 assessments of non- recoverable expenses are based on their experience of comparable properties and historical costs provided by the Group. The discount rates used are nominal returns on total capital before tax and vary between 7.30% and 11.95% (2021: 7.00% and 11.00%). The required rates of return are based on assessments of the market\u2019s required returns for similar properties. The discount rate is set individually for each property and is based on the condition and location, the stability of the tenants and lease duration. Further information relating to sensitivity of signi\ufb01cant accounting estimates used in the valuation of investment property is presented in Note 9. ",
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"value": "4.3 Investment property in use After initial recognition, investment property in use is measured at fair value. Fair value is determined semi-annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are based on the open market value, using the discounted cash \ufb02ow method. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income for the period during which they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. 4.4 Investment property under development The land on which investment property is constructed or developed is carried at fair value, which is determined semi- annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are performed using the market comparable approach or residual approach. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income during the period when they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. 4.5 Assets classi\ufb01ed as held for sale On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. 4.6 Goodwill Subsequent measurement For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.10 Financial assets 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.10.7 Modi\ufb01cation If the modi\ufb01ed terms are substantially di\ufb00erent, the rights to cash \ufb02ows from the original asset expire and the Group derecognises the original \ufb01nancial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a signi\ufb01cant increase in credit risk has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any di\ufb00erence between the carrying amount of the original asset derecognised and fair value of the new substantially modi\ufb01ed asset is recognised in pro\ufb01t or loss, unless the substance of the di\ufb00erence is attributed to a capital transaction with owners. Speci\ufb01c valuation techniques used to value \ufb01nancial assets include: \u2022 The use of quoted market prices or dealer quotes for similar instruments (for \ufb01nancial investments at fair value through pro\ufb01t or loss and \ufb01nancial assets/liabilities at fair value through pro\ufb01t or loss); \u2022 Discounted cash \ufb02ow analysis (for the remaining \ufb01nancial instruments). The hierarchy for the fair value of \ufb01nancial assets and liabilities is as follows: \u2022 Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; \u2022 Level 2: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is directly or indirectly observable, and \u2022 Level 3: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is unobservable. 4.11 Financial liabilities \u2013 measurement categories Financial liabilities are initially recognised at fair value and classi\ufb01ed and subsequently measured at amortised cost, except for \ufb01nancial liabilities at FVTPL: this classi\ufb01cation is applied to interest rate derivatives and other \ufb01nancial liabilities designated as such at initial recognition. 4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. Should the bonds be repaid at their maturity, the Group\u2019s liability towards bonds holders does not vary in line with the market price of its listed notes. For reference, as at 31 December 2022 the market value of the outstanding bonds issued by the Group is presented in Note 19. 9. INVESTMENT PROPERTY IN USE Movement in investment property in use in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 5,670,776 5,591,463 Additions from asset deals (Note 35) 367,769 12,530 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 104,287 - Transferred from investment property under development (Note 10) 51,139 92,528 Fair value adjustments (Note 30) 134,234 30,306 Additions to the right-of-use assets from acquired assets (Note 35) 3,843 - Fair value adjustment of right-of-use assets (Note 30) (255) (251) Investment property reclassi\ufb01ed as held for sale (Note 15.1) - (55,800) CARRYING VALUE 6,331,793 5,670,776 As at the same date, the Group\u2019s portfolio included retail, o\ufb03ce and industrial properties. IFRS 13 de\ufb01nes fair value as the price that would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants at the measurement date. The Group currently discloses fair values according to a \u2018fair value hierarchy\u2019 (as per IFRS 13) which categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and the lowest priority (Level 3) to unobservable inputs. The fair value hierarchy is explained below: \u2022 Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; \u2022 Level 2: use of a model with inputs (other than quoted prices included within Level 1) that are directly, or indirectly, observable market data, and \u2022 Level 3: use of a model with inputs not based on observable market data. The Group\u2019s investment property is categorised as Level 3. For assets and liabilities that are recognised in the \ufb01nancial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is signi\ufb01cant to the fair value measurement as a whole) at the end of each reporting period. There were no transfers between hierarchy levels during the year. The signi\ufb01cant unobservable inputs used in the fair value measurement categorized within Level 3 of the fair value hierarchy of the Group\u2019s property portfolio, together with the impact of signi\ufb01cant movements in these inputs on the fair value measurement, are detailed below: Unobservable input Impact on fair value of increase in input Estimated rental value Increase Discount rate Decrease Capitalisation rate for terminal value Decrease Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2022 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail Discounted cash \ufb02ow 294 \u2013 24,411 (13,449*) 7.30% \u2013 11.45% (8.94*) 5.45% \u2013 9.25% (7.08*) O\ufb03ce Discounted cash \ufb02ow 1,851 \u2013 4,393 (3,675*) 8.50% \u2013 8.75% (8.68*) 7.75% \u2013 8.15% (8.04*) Industrial Discounted cash \ufb02ow 645 \u2013 1,727 (1,416*) 10.95% \u2013 11.95% (11.66*) 8.75% \u2013 9.75% (9.46*) *Amounts or percentages represent weighted averages Information relating to fair value measurement using signi\ufb01cant unobservable inputs (Level 3) for 2021 is presented in the table below: Segment Valuation technique Estimated market rental value (yearly amount in \u2018000 \u20ac) Discount rate (%) Capitalisation rate for terminal value (%) Retail^ Discounted cash \ufb02ow 246 \u2013 22,190 (12,702*) 7.00% \u2013 11.00% (8.50*) 5.30% \u2013 9.00% (6.90*) O\ufb03ce Discounted cash \ufb02ow 1,840 \u2013 4,419 (3,744*) 8.50% \u2013 8.75% (8.57*) 7.50% \u2013 7.90% (7.80*) Industrial Discounted cash \ufb02ow 556 \u2013 1,531 (1,261*) 10.00% \u2013 11.00% (10.72*) 8.50% \u2013 9.50% (9.22*) *Amounts or percentages represent weighted averages. ^Excluding joint ventures. Portfolio valuation: sensitivity to changes in the discount rate and exit rate The tables below present the change in the valuation of the shopping centre portfolio using di\ufb00erent discount rate and exit rate assumptions than those used by the appraisers. Discount rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 5.2% 2.5% -2.4% -4.7% Poland 5.7% 2.8% -2.6% -5.1% Croatia 5.8% 2.8% -2.7% -5.2% Slovakia 6.9% 3.4% -3.1% -6.1% Bulgaria 5.9% 2.9% -2.7% -5.3% Serbia 5.6% 2.7% -2.6% -5.0% Czech Republic 7.1% 3.4% -3.2% -6.3% Lithuania 5.3% 2.6% -2.4% -4.8% Hungary 6.5% 3.1% -2.9% -5.7% TOTAL 5.7% 2.8% -2.6% -5.1% Exit rate variance Country (50 bps) (25 bps) 25 bps 50 bps Romania 6.8% 3.3% -3.1% -6.0% Poland 7.9% 3.8% -3.5% -6.8% Croatia 6.6% 3.2% -3.0% -5.8% Slovakia 7.8% 3.7% -3.5% -6.7% Bulgaria 6.8% 3.3% -3.1% -6.0% Serbia 6.3% 3.0% -2.9% -5.6% Czech Republic 8.1% 3.9% -3.6% -7.0% Lithuania 7.0% 3.4% -3.2% -6.2% Hungary 8.3% 4.0% -3.7% -7.1% TOTAL 7.3% 3.5% -3.3% -6.4% 10. INVESTMENT PROPERTY UNDER DEVELOPMENT Movement in investment property under development in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 170,900 210,935 Additions from the acquisition of the remaining 50% stake in joint venture (Note 35) 1,700 - Additions from asset deals (acquisition of land for development) (Note 35) 18,201 - Additions from construction in progress 136,083 55,154 Fair value adjustments (Note 30) 8,917 4,110 Assets which became operational and were transferred to Investment property in use (Note 9) (51,139) (92,528) Investment property under development reclassi\ufb01ed as held for sale (Note 15.1) (20,318) (2,550) Transfer to inventory property - (4,221) Carrying value 264,344 170,900 Land included in Investment property under development is carried at fair value and is independently assessed on a semi-annual basis. For the years ended 31 December 2022 and 2021, the Group commissioned independent year-end reports to Cushman & Wake\ufb01eld, Colliers International and Jones Lang LaSalle, based on which the fair value of land was adjusted. Land included in Investment property under development is classi\ufb01ed Level 3 on the fair value hierarchy as de\ufb01ned in IFRS 13. The valuation technique is sales comparison or residual approach (in accordance with RICS Valuation Standards and ANEVAR Valuation Standards (for Romanian properties). Land under sales comparison method was valued by the external appraisers using the recent transactions of similar land for development in the proximity of the subject property. The residual approach determines the residual land value by subtracting purchase and development cost from the expected gross development value of the project at completion. The construction works in the investment property under development are held at cost, and their carrying value is a reasonable approximation of their fair value. The methods have been consistently applied for the comparative period. The balance of Investment property under development split by land carried at fair value and additions from construction works held at cost (which approximate fair value) is detailed below: Investment property under development in \u20ac thousand 31 Dec 2022 31 Dec 2021 Land (at fair value) 157,609 147,843 Construction works (at cost) 106,735 23,057 TOTAL 264,344 170,900 19 BORROWINGS (BONDS AND BANK LOANS) The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. 30. FAIR VALUE ADJUSTMENTS OF INVESTMENT PROPERTY in \u20ac thousand 31 Dec 2022 31 Dec 2021 Fair value adjustments of investment property in use (Note 9) 134,234 30,306 Fair value adjustments of investment property under development (Note 10) 8,917 4,110 Fair value adjustments of investment property held for sale (Note 15.1) (1,195) 485 Fair value adjustments of right-of-use assets (Note 9) (255) (251) TOTAL 141,701 34,650 32. FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND LOSSES ON EXTINGUISHMENT OF FINANCIAL INSTRUMENTS The fair value adjustments of derivatives include the fair value gain of \u20ac37,946 thousand (31 December 2021: \u20ac5,174 thousand) from existing interest rate caps and swaps. These include a fair value gain of \u20ac4.1 million from pre-hedging \u20ac250 million of the bond issued in January 2022. ",
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},
"f21860": {
"value": "4.3 Investment property in use After initial recognition, investment property in use is measured at fair value. Fair value is determined semi-annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are based on the open market value, using the discounted cash \ufb02ow method. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income for the period during which they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. 4.4 Investment property under development The land on which investment property is constructed or developed is carried at fair value, which is determined semi- annually by external, independent professional valuers, with appropriate and recognised quali\ufb01cations and recent experience in the location and category of property being valued. Valuations are performed using the market comparable approach or residual approach. Gains or losses arising from changes in the fair values are included in the Statement of comprehensive income during the period when they arise. Unrealised gains or losses, net of deferred tax, are non-distributable. 4.5 Assets classi\ufb01ed as held for sale On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. 4.6 Goodwill Subsequent measurement For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.10.7 Modi\ufb01cation If the modi\ufb01ed terms are substantially di\ufb00erent, the rights to cash \ufb02ows from the original asset expire and the Group derecognises the original \ufb01nancial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a signi\ufb01cant increase in credit risk has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any di\ufb00erence between the carrying amount of the original asset derecognised and fair value of the new substantially modi\ufb01ed asset is recognised in pro\ufb01t or loss, unless the substance of the di\ufb00erence is attributed to a capital transaction with owners. Speci\ufb01c valuation techniques used to value \ufb01nancial assets include: \u2022 The use of quoted market prices or dealer quotes for similar instruments (for \ufb01nancial investments at fair value through pro\ufb01t or loss and \ufb01nancial assets/liabilities at fair value through pro\ufb01t or loss); \u2022 Discounted cash \ufb02ow analysis (for the remaining \ufb01nancial instruments). The hierarchy for the fair value of \ufb01nancial assets and liabilities is as follows: \u2022 Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; \u2022 Level 2: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is directly or indirectly observable, and \u2022 Level 3: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is unobservable. 4.11 Financial liabilities \u2013 measurement categories Financial liabilities are initially recognised at fair value and classi\ufb01ed and subsequently measured at amortised cost, except for \ufb01nancial liabilities at FVTPL: this classi\ufb01cation is applied to interest rate derivatives and other \ufb01nancial liabilities designated as such at initial recognition. 4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21897": {
"value": "4.5 Assets classi\ufb01ed as held for sale An investment property or a group of assets including an investment property (disposal group) are classi\ufb01ed as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. For this to be the case: \u2022 the assets must be available for immediate sale in their present condition, \u2022 the Group must be committed to sell, \u2022 there must be a plan to locate a buyer, and \u2022 it is highly probable that a sale will be completed within one year from the date of classi\ufb01cation. On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. An investment property or disposal group classi\ufb01ed as held for sale is presented separately in the Statement of \ufb01nancial position as assets or liabilities classi\ufb01ed as held for sale. Discontinued operations are disclosed as a single amount in the Statement of comprehensive income, comprising the total of: (i) the post-tax pro\ufb01t or loss of discontinued operations, and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. 15. ASSETS HELD FOR SALE Investment property held for sale is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. In November 2022, the Group disposed of a plot of land in Sabac, Serbia held by Nepi Project Three d.o.o. in a share deal, for a transaction value of \u20ac3.3 million, with a net gain on disposal of \u20ac1.1 million. In August 2022, the Group entered into a binding agreement for the sale of a plot of excess land owned by General Building Management SRL, owner of the development in Craiova, Romania. The transaction is expected to be completed in 2023, subject to conditions precedent to be ful\ufb01lled by the Group. In July 2021, the Group disposed of two Serbian retail properties for a transaction value of \u20ac60.8 million, with a net gain on disposal of \u20ac2 million. At 31 December 2022, the assets held for sale included a plot of land located in Slovakia together with two non-core properties and a plot of land located in Romania. One of the Romanian non-core properties was sold at book value in January 2023. The major classes of assets and liabilities of subsidiaries which are presented as held for sale at the end of the reporting period are as follows: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Non-current assets 18,666 1,752 Investment property at fair value 1,730 1,752 Investment property under development 16,936 - Current assets 19 - Cash and cash equivalents 19 - Assets held for sale 18,685 1,752 Non-current liabilities 1,111 - Deferred tax liabilities 1,111 - Current liabilities 7 - Liabilities held for sale 1,118 - Net assets held for sale 17,567 1,752 15.1 INVESTMENT PROPERTY HELD FOR SALE in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 1,752 1,752 Transfer from investment property in use (Note 9) - 55,800 Transfer from investment property under development (Note 10) 20,318 2,550 Additions during the period 21 - Fair value adjustments (Note 30) (1,195) 485 Disposals (2,230) (58,835) CARRYING VALUE 18,666 1,752 16 INVENTORY PROPERTY The Group has a residential property development that it intends to sell on completion. The residential project is held as inventory property and is measured at the lower of cost and net realisable value (\u201cNRV\u201d) The commencement of development with a plan or a prior agreement to sell represents a change in use and accordingly the project is transferred from investment property to inventory property. NRV is the estimated selling price in the ordinary course of business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Inventory property 20,694 9,522 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21898": {
"value": "4.5 Assets classi\ufb01ed as held for sale An investment property or a group of assets including an investment property (disposal group) are classi\ufb01ed as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. For this to be the case: \u2022 the assets must be available for immediate sale in their present condition, \u2022 the Group must be committed to sell, \u2022 there must be a plan to locate a buyer, and \u2022 it is highly probable that a sale will be completed within one year from the date of classi\ufb01cation. On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. An investment property or disposal group classi\ufb01ed as held for sale is presented separately in the Statement of \ufb01nancial position as assets or liabilities classi\ufb01ed as held for sale. Discontinued operations are disclosed as a single amount in the Statement of comprehensive income, comprising the total of: (i) the post-tax pro\ufb01t or loss of discontinued operations, and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. 15. ASSETS HELD FOR SALE Investment property held for sale is carried at fair value and is independently assessed on a semi-annual basis, as at 30 June and 31 December. In November 2022, the Group disposed of a plot of land in Sabac, Serbia held by Nepi Project Three d.o.o. in a share deal, for a transaction value of \u20ac3.3 million, with a net gain on disposal of \u20ac1.1 million. In August 2022, the Group entered into a binding agreement for the sale of a plot of excess land owned by General Building Management SRL, owner of the development in Craiova, Romania. The transaction is expected to be completed in 2023, subject to conditions precedent to be ful\ufb01lled by the Group. In July 2021, the Group disposed of two Serbian retail properties for a transaction value of \u20ac60.8 million, with a net gain on disposal of \u20ac2 million. At 31 December 2022, the assets held for sale included a plot of land located in Slovakia together with two non-core properties and a plot of land located in Romania. One of the Romanian non-core properties was sold at book value in January 2023. The major classes of assets and liabilities of subsidiaries which are presented as held for sale at the end of the reporting period are as follows: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Non-current assets 18,666 1,752 Investment property at fair value 1,730 1,752 Investment property under development 16,936 - Current assets 19 - Cash and cash equivalents 19 - Assets held for sale 18,685 1,752 Non-current liabilities 1,111 - Deferred tax liabilities 1,111 - Current liabilities 7 - Liabilities held for sale 1,118 - Net assets held for sale 17,567 1,752 15.1 INVESTMENT PROPERTY HELD FOR SALE in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year 1,752 1,752 Transfer from investment property in use (Note 9) - 55,800 Transfer from investment property under development (Note 10) 20,318 2,550 Additions during the period 21 - Fair value adjustments (Note 30) (1,195) 485 Disposals (2,230) (58,835) CARRYING VALUE 18,666 1,752 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21900": {
"value": "4.5 Assets classi\ufb01ed as held for sale An investment property or a group of assets including an investment property (disposal group) are classi\ufb01ed as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. For this to be the case: \u2022 the assets must be available for immediate sale in their present condition, \u2022 the Group must be committed to sell, \u2022 there must be a plan to locate a buyer, and \u2022 it is highly probable that a sale will be completed within one year from the date of classi\ufb01cation. On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. An investment property or disposal group classi\ufb01ed as held for sale is presented separately in the Statement of \ufb01nancial position as assets or liabilities classi\ufb01ed as held for sale. Discontinued operations are disclosed as a single amount in the Statement of comprehensive income, comprising the total of: (i) the post-tax pro\ufb01t or loss of discontinued operations, and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21901": {
"value": "4.5 Assets classi\ufb01ed as held for sale An investment property or a group of assets including an investment property (disposal group) are classi\ufb01ed as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. For this to be the case: \u2022 the assets must be available for immediate sale in their present condition, \u2022 the Group must be committed to sell, \u2022 there must be a plan to locate a buyer, and \u2022 it is highly probable that a sale will be completed within one year from the date of classi\ufb01cation. On re-classi\ufb01cation as held for sale, investment property that is measured at fair value continues to be measured in this way. An investment property or disposal group classi\ufb01ed as held for sale is presented separately in the Statement of \ufb01nancial position as assets or liabilities classi\ufb01ed as held for sale. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21902": {
"value": "4.5 Assets classi\ufb01ed as held for sale Discontinued operations are disclosed as a single amount in the Statement of comprehensive income, comprising the total of: (i) the post-tax pro\ufb01t or loss of discontinued operations, and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21903": {
"value": "4.5 Assets classi\ufb01ed as held for sale Discontinued operations are disclosed as a single amount in the Statement of comprehensive income, comprising the total of: (i) the post-tax pro\ufb01t or loss of discontinued operations, and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21932": {
"value": "4.6 Goodwill Goodwill arises upon business combination and represents the excess of the consideration transferred over the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree. When the consideration transferred is lower than the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree, the gain on acquisition is recognised directly in the Statement of comprehensive income. Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.27 Investment property acquisitions and business combinations The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination where an integrated set of activities and assets, including property, is acquired. More speci\ufb01cally the following criteria, which indicate an acquisition of a business, are considered: the number of properties acquired, the extent to which strategic management processes and operation processes are acquired and the complexity of the processes acquired. In line with amended IFRS 3 since 1 January 2020 the Group may also apply optional concentration test. Business combinations are accounted for using the acquisition method. The acquisition is recognised at the aggregate amount of the consideration transferred, measured at fair value on the date of acquisition and the amount of any non- controlling interest in the acquired entity. If the fair value of net assets acquired is lower, the di\ufb00erence is recorded as goodwill. If the consideration is lower, the di\ufb00erence is recognised directly in the Statement of comprehensive income. When the acquisition of subsidiaries does not represent a business combination, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax is recognised. For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. If the business combination is achieved in stages, the previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in pro\ufb01t or loss. Any contingent consideration to be transferred by the acquirer will be recognised at fair value on the date of acquisition. Subsequent changes to the fair value of any contingent consideration classi\ufb01ed as a liability will be recognised in the Statement of comprehensive income. Acquisition accounting is \ufb01nalised when the Group has gathered all the necessary information, which must occur within 12 months of the acquisition date. There are no exemptions from the 12-month rule for deferred tax assets or changes in the contingent consideration. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21933": {
"value": "4.6 Goodwill Goodwill arises upon business combination and represents the excess of the consideration transferred over the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree. When the consideration transferred is lower than the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree, the gain on acquisition is recognised directly in the Statement of comprehensive income. Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 11. OTHER LONG-TERM ASSETS Other long-term assets are classi\ufb01ed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants under the Share Purchase Scheme (Note 18) 4,205 4,510 Property, plant and equipment 3,780 3,599 Intangible assets 3,065 1,346 TOTAL 11,050 9,455 12. GOODWILL The Group recognised goodwill for the following business acquisitions: in \u20ac thousand Segment Balance at 31 Dec 2022 Balance at 31 Dec 2021 Pitesti Retail Park Retail 1,671 1,671 Internalisation of NEPI Investment Management Corporate 5,882 5,882 Aupark Kosice Mall Retail 5,189 5,189 Iris Titan Shopping Center Retail 934 934 Forum Usti nad Labem Retail 5,646 5,646 Shopping City Sibiu Retail 9,850 9,850 Korzo Shopping Centrum Retail 2,899 2,899 Aupark Shopping Center Piestany Retail 1,585 1,585 Arena Centar and Retail Park Retail 13,512 13,512 Energit Retail 6,976 6,976 Paradise Center Retail 9,311 9,311 Arena Mall Retail 7,905 7,905 Galeria Mlyny Retail 5,444 5,444 TOTAL 76,804 76,804 There were no movements of goodwill in 2022 and 2021. According to the Group\u2019s accounting policies based on IFRS, goodwill is tested at least annually for impairment or whenever there is an indication that it may be impaired. The lowest level within the Group at which the goodwill is allocated and monitored for internal management purposes is the CGU, represented by each individual property. CGUs to which the goodwill has been allocated were tested for impairment by comparing their net asset value with the recoverable value, which is the higher of value in use and fair value less cost to sell. Goodwill from recognition of deferred taxes at the date of the business combination All the goodwill summarised in the table above, with the exception of NEPI Investment Management and Energit, resulted from business combinations, as the di\ufb00erence between the deferred tax liability recognised in the balance sheet of the business acquired and the expected tax to be paid in case of a future disposal. As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). Goodwill from management and energy trading companies Goodwill arising at the level of management company, NEPI Investment Management, is monitored at the level of this subsidiary, which employs part of the Group\u2019s key management and charges management fees to property operating companies. The recoverable amount of NEPI Investment Management and Energit is represented by their value in use, determined based on the DCF derived from the \ufb01ve-year \ufb01nancial budgets for these two entities approved by management. Cash \ufb02ows beyond the \ufb01ve-year period were extrapolated using the estimated cash \ufb02ow of year 5. The discount rate used was based on the weighted average cost of capital in the speci\ufb01c geography of the two entities. As a result of this test, no impairment arose in connection with the above two entities. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21934": {
"value": "4.6 Goodwill Goodwill arises upon business combination and represents the excess of the consideration transferred over the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree. When the consideration transferred is lower than the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree, the gain on acquisition is recognised directly in the Statement of comprehensive income. Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21935": {
"value": "4.6 Goodwill Goodwill arises upon business combination and represents the excess of the consideration transferred over the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree. When the consideration transferred is lower than the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree, the gain on acquisition is recognised directly in the Statement of comprehensive income. Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 12. GOODWILL The Group recognised goodwill for the following business acquisitions: in \u20ac thousand Segment Balance at 31 Dec 2022 Balance at 31 Dec 2021 Pitesti Retail Park Retail 1,671 1,671 Internalisation of NEPI Investment Management Corporate 5,882 5,882 Aupark Kosice Mall Retail 5,189 5,189 Iris Titan Shopping Center Retail 934 934 Forum Usti nad Labem Retail 5,646 5,646 Shopping City Sibiu Retail 9,850 9,850 Korzo Shopping Centrum Retail 2,899 2,899 Aupark Shopping Center Piestany Retail 1,585 1,585 Arena Centar and Retail Park Retail 13,512 13,512 Energit Retail 6,976 6,976 Paradise Center Retail 9,311 9,311 Arena Mall Retail 7,905 7,905 Galeria Mlyny Retail 5,444 5,444 TOTAL 76,804 76,804 There were no movements of goodwill in 2022 and 2021. According to the Group\u2019s accounting policies based on IFRS, goodwill is tested at least annually for impairment or whenever there is an indication that it may be impaired. The lowest level within the Group at which the goodwill is allocated and monitored for internal management purposes is the CGU, represented by each individual property. CGUs to which the goodwill has been allocated were tested for impairment by comparing their net asset value with the recoverable value, which is the higher of value in use and fair value less cost to sell. Goodwill from recognition of deferred taxes at the date of the business combination All the goodwill summarised in the table above, with the exception of NEPI Investment Management and Energit, resulted from business combinations, as the di\ufb00erence between the deferred tax liability recognised in the balance sheet of the business acquired and the expected tax to be paid in case of a future disposal. As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). Goodwill from management and energy trading companies Goodwill arising at the level of management company, NEPI Investment Management, is monitored at the level of this subsidiary, which employs part of the Group\u2019s key management and charges management fees to property operating companies. The recoverable amount of NEPI Investment Management and Energit is represented by their value in use, determined based on the DCF derived from the \ufb01ve-year \ufb01nancial budgets for these two entities approved by management. Cash \ufb02ows beyond the \ufb01ve-year period were extrapolated using the estimated cash \ufb02ow of year 5. The discount rate used was based on the weighted average cost of capital in the speci\ufb01c geography of the two entities. As a result of this test, no impairment arose in connection with the above two entities. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21936": {
"value": "4.6 Goodwill Goodwill arises upon business combination and represents the excess of the consideration transferred over the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree. When the consideration transferred is lower than the Group\u2019s interest in net fair value of the net identi\ufb01able assets, liabilities and contingent liabilities of the acquiree, the gain on acquisition is recognised directly in the Statement of comprehensive income. Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21939": {
"value": "4.6 Goodwill Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21940": {
"value": "4.6 Goodwill Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. 12. GOODWILL According to the Group\u2019s accounting policies based on IFRS, goodwill is tested at least annually for impairment or whenever there is an indication that it may be impaired. The lowest level within the Group at which the goodwill is allocated and monitored for internal management purposes is the CGU, represented by each individual property. CGUs to which the goodwill has been allocated were tested for impairment by comparing their net asset value with the recoverable value, which is the higher of value in use and fair value less cost to sell. Goodwill from recognition of deferred taxes at the date of the business combination As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21941": {
"value": "4.6 Goodwill Subsequent measurement Goodwill is not amortized but is tested for impairment at least annually. After initial recognition, goodwill is measured at cost, less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash- generating units (\u201cCGUs\u201d), or groups of CGUs, that is expected to bene\ufb01t from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes and it is represented by the individual properties and listed securities business. The carrying value of the CGU or groups of CGUs is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed. 4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. Impairment of assets The Group tests whether assets are subject to impairment, in accordance with the signi\ufb01cant accounting policies stated in Note 4. The recoverable amounts of CGUs are determined based on future cash \ufb02ows discounted to their present values using appropriate rates. Estimates are based on interpretation of generally accepted industry-based market forecasts. Further information in relation to impairment expenses recognised is presented in Note 6 and 12. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21969": {
"value": "4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 11. OTHER LONG-TERM ASSETS Other long-term assets are classi\ufb01ed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants under the Share Purchase Scheme (Note 18) 4,205 4,510 Property, plant and equipment 3,780 3,599 Intangible assets 3,065 1,346 TOTAL 11,050 9,455 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21970": {
"value": "4.7 Impairment of non-\ufb01nancial assets Intangibles that have an inde\ufb01nite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identi\ufb01able cash \ufb02ows (\u201cCGUs\u201d). Non-\ufb01nancial assets, other than goodwill and intangible assets with in\ufb01nitive useful life, that have su\ufb00ered an impairment are reviewed for possible reversal of the impairment at each reporting date, if indicators of reversal exist. 4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22006": {
"value": "4.8 Loans to participants in the Share Purchase Scheme (as de\ufb01ned in Note 4.18) Loans to participants in the Share Purchase Scheme incentive plan are initially recognised at the amount granted, carried at amortized cost and impaired based on expected credit losses (\u201cECL\u201d) model (Note 4.18). 4.10 Financial assets 4.10.1 Classi\ufb01cation In line with IFRS 9 \u201cFinancial instruments\u201d, the Group classi\ufb01es its \ufb01nancial assets in the following measurement categories: \u2022 those to be measured subsequently at fair value through pro\ufb01t or loss and \u2022 those to be measured at amortised cost. The classi\ufb01cation and subsequent measurement of debt instruments \ufb01nancial assets depends on: (i) the Group\u2019s business model for managing the related assets portfolio and (ii) the cash \ufb02ow characteristics of the asset. For \ufb01nancial assets measured at fair value through pro\ufb01t or loss (\u201cFVTPL\u201d), gains and losses are recorded in pro\ufb01t or loss. 4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.10.5 Reclassi\ufb01cation Financial instruments are reclassi\ufb01ed only when the business model for managing those assets changes. The reclassi\ufb01cation has a prospective e\ufb00ect and takes place from the start of the \ufb01rst reporting period following the change. 4.10.6 Write-o\ufb00 Financial assets are written-o\ufb00, in whole or in part, when the Group has exhausted all practical recovery e\ufb00orts and has concluded that there is no reasonable expectation of recovery. The write-o\ufb00 represents a derecognition event. Indicators that there is no reasonable expectation of recovery include, among others, insolvency or signi\ufb01cant \ufb01nancial di\ufb03culties of the tenant, default on payment terms and vacation or abandonment of the leased premises. Impaired trade and other receivables are derecognised when all reasonable e\ufb00orts to collect the amounts outstanding have failed and they are assessed as uncollectable. 4.10.7 Modi\ufb01cation The Group sometimes renegotiates or otherwise modi\ufb01es the contractual terms of the \ufb01nancial assets. The Group assesses whether the modi\ufb01cation of contractual cash \ufb02ows is substantial considering, among other, the following factors: new contractual terms that substantially a\ufb00ect the risk pro\ufb01le of the asset, signi\ufb01cant change in interest rate, change in the currency denomination. If the modi\ufb01ed terms are substantially di\ufb00erent, the rights to cash \ufb02ows from the original asset expire and the Group derecognises the original \ufb01nancial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a signi\ufb01cant increase in credit risk has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any di\ufb00erence between the carrying amount of the original asset derecognised and fair value of the new substantially modi\ufb01ed asset is recognised in pro\ufb01t or loss, unless the substance of the di\ufb00erence is attributed to a capital transaction with owners. In a situation where the renegotiation was driven by \ufb01nancial di\ufb03culties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash \ufb02ows to assess whether the risks and rewards of the asset are substantially di\ufb00erent as a result of the contractual modi\ufb01cation. If the risks and rewards do not change, the modi\ufb01ed asset is not substantially di\ufb00erent from the original asset and the modi\ufb01cation does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modi\ufb01ed contractual cash \ufb02ows by the original e\ufb00ective interest rate and recognises a modi\ufb01cation gain or loss in pro\ufb01t or loss. Speci\ufb01c valuation techniques used to value \ufb01nancial assets include: \u2022 The use of quoted market prices or dealer quotes for similar instruments (for \ufb01nancial investments at fair value through pro\ufb01t or loss and \ufb01nancial assets/liabilities at fair value through pro\ufb01t or loss); \u2022 Discounted cash \ufb02ow analysis (for the remaining \ufb01nancial instruments). The hierarchy for the fair value of \ufb01nancial assets and liabilities is as follows: \u2022 Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; \u2022 Level 2: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is directly or indirectly observable, and \u2022 Level 3: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is unobservable. 4.11 Financial liabilities \u2013 measurement categories Financial liabilities are initially recognised at fair value and classi\ufb01ed and subsequently measured at amortised cost, except for \ufb01nancial liabilities at FVTPL: this classi\ufb01cation is applied to interest rate derivatives and other \ufb01nancial liabilities designated as such at initial recognition. 4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 4.13 O\ufb00setting \ufb01nancial instruments Financial assets and \ufb01nancial liabilities are o\ufb00set and the net amount reported in the Statement of \ufb01nancial position when the Group has a legally enforceable right to set o\ufb00 the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 4.14 Cash and cash equivalents Cash and cash equivalents include cash balances, cash deposits and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni\ufb01cant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash \ufb02ows and those cash \ufb02ows represent solely payments of principal and interest (SPPI), and (ii) they are not designated at FVTPL. 4.15 Trade receivables Trade receivables are amounts due from customers for rental and service charge income from tenants in the ordinary course of business. If collection is expected in one year or less, they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value, generally at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash \ufb02ows and therefore measures them subsequently at amortised cost using the e\ufb00ective interest method. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 4.18 Share-based payments To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. 4.23 Earnings distribution A distribution is recorded as a liability and deducted from equity in the period in which it is declared and approved. Any distribution declared after the reporting period and before the \ufb01nancial statements are authorised for issue is disclosed in Note 37. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The Group has exposure to the following risks due to its use of \ufb01nancial instruments: credit, liquidity, and market, including currency and interest rate. This note presents information about the Group\u2019s exposure to each, as well as its objectives, policies and processes for measuring and managing risk. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. Should the bonds be repaid at their maturity, the Group\u2019s liability towards bonds holders does not vary in line with the market price of its listed notes. For reference, as at 31 December 2022 the market value of the outstanding bonds issued by the Group is presented in Note 19. 6.1 Credit risk Credit risk is the risk of \ufb01nancial loss to the Group if a counterparty to a \ufb01nancial instrument fails to meet its contractual obligations and arises principally from the Group\u2019s loans granted to joint ventures, receivables from tenants and cash and cash equivalents. The carrying amount of \ufb01nancial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is set out below: Credit exposure on \ufb01nancial instruments in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Loans granted to joint ventures 36 - 22,466 Tenant receivables 13 59,691 46,874 Cash and cash equivalents 14 250,631 498,623 Financial assets at fair value through pro\ufb01t or loss* 20 36,064 4,542 Loans to participants in the Share Purchase Scheme** 11,18 4,205 4,510 TOTAL 350,591 577,015 * Includes both long-term and short-term \ufb01nancial assets at fair value through pro\ufb01t or loss **Presented in line Other long-term assets in the Statement of \ufb01nancial position Out of the above maximum credit exposure, the balance of Loans to participants in the Share Purchase Scheme is not considered to present credit risk as these are guaranteed with the Company\u2019s shares held as security (see details in Note 18). Trade and other receivables relate mainly to the Group\u2019s tenants. When monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or legal entity, the industry they work in, business size and previous \ufb01nancial di\ufb03culties. The exposure to credit risk is mainly in\ufb02uenced by the tenant\u2019s individual characteristics. The Group\u2019s widespread customer base reduces credit risk. The majority of rental income is derived from type A tenants (large international and national tenants; large listed tenants; government and major franchisees and companies with assets and/or turnovers exceeding \u20ac200 million), and there is no concentration of credit risk with respect to trade debtors: top 10 tenants account for 24.8% of the rental income as at 31 December 2022 (31 December 2021: 24.1%). Management has established a credit policy where new customers are analysed individually for creditworthiness before standard payment terms and conditions are o\ufb00ered. When available, the analysis includes external ratings. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. An overview of the tenant receivables net of impairment provision is set out below: in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Tenant receivables \u2013 gross 69,033 54,156 Less: Impairment provisions (9,342) (7,282) TENANT RECEIVABLES-NET OF IMPAIRMENT PROVISION 13 59,691 46,874 Reconciliation of impairment provisions is set out below: Movement of provisions for doubtful debtors in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year (7,282) (9,753) Additional provision from properties acquired during the year (2,489) - Additional expected credit losses (2,841) (4,962) Write-o\ufb00 of receivables 986 469 Recovery of previously expected credit losses 2,182 6,256 Released in relation to assets held for sale disposed during the year - 625 Foreign exchange gain 102 83 CARRYING VALUE (9,342) (7,282) This table excludes rent concessions. The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) The maturity pro\ufb01le of the Financial assets at fair value through pro\ufb01t or loss is disclosed below: 31 December 2022 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 25,958 10,106 36,064 31 December 2021 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 2,643 1,899 4,542 While cash and cash equivalents and loans granted to joint ventures are also subject to the impairment requirements of IFRS 9, the expected credit losses are immaterial. For purposes of liquidity management, the Group has\u00a0various\u00a0deposit accounts and negotiated current account agreements with several banks.\u00a0The arrangements in place result in an optimized mix between \ufb02exibility and reduced interest charges or best interest o\ufb00ered. The banks\u2019 credit ratings, as well as exposure per each bank are constantly monitored. At 31 December 2022, 95% of the Group's cash was held with investment-grade rated banks (31 December 2021: 96%), as detailed below: Cash and cash equivalents 31 Dec 2022 31 Dec 2021 Held with banks as rated by Moody\u2019s A1 7% 4% A2 30% 53% A3 15% 3% Aa3 8% 5% Baa1 35% 14% Baa2 - 2% Baa3 - 15% Held with not rated banks 5% 4% TOTAL 100% 100% 6.2 Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its \ufb01nancial obligations when due. The Group\u2019s approach to managing this risk ensures, as far as possible, it will always have enough liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation. To ensure this occurs, the Group prepares budgets, cash \ufb02ow analyses and forecasts, which enable the Directors to assess the level of \ufb01nancing required for future periods. Budgets and projections are used to assess any future potential investments and are compared to existing funds held on deposit to evaluate the nature, and extent of any future funding requirements. Further reference to bank loan maturity analysis is made in Note 19. The table below presents undiscounted cash \ufb02ows for all \ufb01nancial liabilities, computed at the contractual rates. 31 Dec 2022 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 30,707 28,539 1,616,496 518,081 2,193,823 1,992,971 Bank loans (including estimated future interest) 19 9,232 22,974 393,592 211,739 637,537 557,901 Borrowings from third parties (including estimated future interest) 23 908 19,080 36,518 - 56,506 50,107 Trade and other payables 21 31,000 124,002 - - 155,002 155,002 Other long-term liabilities 22 - - 31,303 6,363 37,666 37,666 Lease liabilities (including estimated future interest) 24 832 - 4,506 67,036 72,374 37,200 TOTAL 72,679 194,595 2,082,415 803,219 3,152,908 2,830,847 31 Dec 2021 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 28,915 30,137 1,603,847 508,790 2,171,689 1,988,239 Bank loans (including estimated future interest) 19 2,901 9,002 195,444 115,967 323,314 304,586 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 20 - - 3,211 - 3,211 3,211 Borrowings from third parties short and long-term (including estimated future interest) 22 317 4,965 1,044 5,396 11,722 8,746 Trade and other payables (excluding short-term borrowings from third parties) 21 20,116 80,465 - - 100,581 100,581 Other long-term liabilities (excluding long-term borrowings from third parties) 22 - - 22,410 7,844 30,254 30,254 Lease liabilities (including estimated future interest) 24 832 - 3,329 53,279 57,440 33,611 TOTAL 53,082 124,569 1,829,285 691,276 2,698,211 2,469,228 To enhance the liquidity risk disclosure, the \u201cbonds\u201d and \u201cbank loans\u201d components of this table, which were previously aggregated, are now disclosed separately. The comparative liquidity risk table, as of 31 December 2021, has accordingly been amended. 6.3 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates or equity prices will a\ufb00ect the Group\u2019s fair value or future cash \ufb02ows of \ufb01nancial instruments. The objective of market risk management is to manage market risk exposures within acceptable parameters, while optimising returns. The carrying value of \ufb01nancial assets and liabilities approximates their fair value, except for the carrying value of bonds, whose fair value is presented in Note 19. 6.3.1 Currency risk Group\u2019s current assets and liabilities are exposed to foreign currency risk on purchases and receivables denominated in Romanian leu (RON), Polish zloty (PLN), Bulgarian Lev (BGN), Hungarian forint (HUF), Serbian dinar (RSD), Czech crown (CZK), Croatian kuna (HRK) and South African rand (ZAR). Cash in\ufb02ows received in other currencies than Euro are converted to Euro using the spot rate available on the collection date. The amount converted to Euro is the net amount of cash in\ufb02ow in a foreign currency and the estimated cash out\ufb02ow in the same currency. The Group applies this policy to control its currency exposures in respect of monetary assets and liabilities denominated in currencies other than EUR. Sensitivities of pro\ufb01t or loss to reasonably possible changes in exchange rates applied at the \ufb01nancial position date relative to the local currency of the respective Group entities, with all other variables such as interest rates held constant, are immaterial. 6.3.2 Interest rate risk Interest rate risk is the risk that the future cash \ufb02ows of a \ufb01nancial instrument will \ufb02uctuate because of changes in market interest rates. The Group is exposed to interest rate risk on loans, borrowings and cash balances held. Group policy is to hedge this risk through the use of derivative \ufb01nancial instruments. As at 31 December 2022 and 31 December 2021, the Group held interest rate instruments in the form of interest rate swaps and interest rate caps, as further disclosed in Note 20. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Bank loans 557,901 304,586 \u2014 Rate capped 330,000 191,520 \u2014 Rate swapped 114,928 115,873 \u2014 Variable rate 115,333 - Accrued interest on loans and deferred loan costs* (2,360) (2,807) * The balance exposed to variable rate as of 31 December 2022 relate to a portion of the outstanding revolving credit facilities disbursed at year-end and represents less than 5% of the total outstanding debt. Sensitivity analysis for interest bearing \ufb01nancial instruments A change of 100 basis points (bps) in interest rates would have increased/(decreased) equity and pro\ufb01t for the year as shown below. Calculations are based on the cash and loans and borrowings balances outstanding at the respective balance sheet dates. Cash and loans and borrowings balances are subject to change over the year. This analysis assumes that all other variables, particularly foreign currency rates, remain constant. All sensitivity analysis calculations presented below are before tax. The benchmark rate for the bank loans with an outstanding amount of \u20ac557,901 thousand as at 31 December 2022 (2021: \u20ac304,586 thousand) is Euribor 3 months; if this rate is less than zero, Euribor shall be deemed to be zero. There are no plans to discontinue Euribor. Loans and borrowings with \ufb01xed or swapped interest rates are not a\ufb00ected by market changes in interest rates. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants in the Share Purchase Scheme (including accrued interest) (Note 18) 4,205 4,510 Loans and borrowings (variable or capped rate) (445,333) (191,520) TOTAL (441,128) (187,010) 31 Dec 2022 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 42 (42) 42 (42) Loans and borrowings (variable or capped rate)* (856) 1,130 (856) 1,130 TOTAL (814) 1,088 (814) 1,088 *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 31 Dec 2021 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 45 (45) 45 (45) Loans and borrowings (variable or capped rate)* (742) - (742) - TOTAL (697) (45) (697) (45) *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 13. TRADE AND OTHER RECEIVABLES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Tenant receivables (Note 6.1) 59,691 46,874 VAT receivable 11,287 5,804 Prepaid property expenses 9,447 5,582 Other receivables 4,989 2,490 Other prepaid fees 82 222 TOTAL 85,496 60,972 14. CASH AND CASH EQUIVALENTS Cash and cash equivalents by currency in \u20ac thousand 31 Dec 2022 31 Dec 2021 EUR 161,035 418,751 RON 38,556 29,442 PLN 19,837 15,799 BGN 10,663 8,974 HUF 3,213 6,645 HRK 7,703 12,562 CZK 5,909 4,016 RSD 3,101 1,773 ZAR 614 572 USD - 9 GBP - 80 TOTAL 250,631 498,623 Cash and cash equivalents by type in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current accounts 196,019 378,401 Deposits 50,079 120,000 Restricted cash 4,250 - Petty cash and other values 283 222 TOTAL 250,631 498,623 19 BORROWINGS (BONDS AND BANK LOANS) The Group is currently assigned a long-term corporate credit rating of BBB (stable outlook) from Standard & Poor\u2019s Rating Services and BBB+ (stable outlook) from Fitch Ratings. In 2022, NEPI Rockcastle extended the contractual maturities related to its unsecured committed revolving credit facilities, as follows: \u2022 the revolving credit facility from BRD-Groupe Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and Garanti Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac170 million; \u2022 the revolving credit facility from ING Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac100 million; and \u2022 the revolving credit facility from Rai\ufb00eisen Bank International was extended for one year, until January 2025, with the maximum principal available maintained at \u20ac150 million. The above mentioned committed revolving credit facilities together with the revolving credit facility from a four-bank syndicate of a maximum limit of \u20ac200 million amount to a total of \u20ac620 million available unsecured committed revolving credit facilities, of which \u20ac420 million were undrawn as at 31 December 2022 (31 December 2021: \u20ac620 million). In January 2022, the Group issued its second green \u20ac500 million unsecured 8-year Eurobond, carrying a 2% \ufb01xed coupon, with an issue price of 98.713%. The bond issue was used for liability management, to repay a \u20ac500 million bond maturing in 2023. The repurchase of 2023 bond was made at market price in January and February 2022, with the premium paid over its carrying value of \u20ac22 million, recognised in the Statement of comprehensive income. The average interest rate of the Group\u2019s debt, including hedging result, was approximately 2.3% during 2022 (31 December 2021: 2.4%). As at 31 December 2022, \ufb01xed-coupon bonds represented 78% of NEPI Rockcastle\u2019s outstanding debt; out of the remaining long-term debt exposed to Euribor, 59% was hedged with interest rate caps and 21% with interest rate swaps. The unhedged portion represents less than 5% of the outstanding debt and relates to a proportion of the revolving credit facilities disbursed as of year-end. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. The repayment pro\ufb01le for outstanding loans, excluding future interest, is detailed below. In addition to these loans, the Group had loans and borrowings related to its joint ventures presented in Note 36, which were repaid in the second half of 2022 following acquisition of the remaining 50% stake in the joint-venture. Interest bearing borrowings 31 Dec 2022 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,498,980 500,000 1,998,980 Netherlands Revolving facilities - 200,000 - 200,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 1,520 74,100 - 75,620 Slovakia Secured loans 6,475 23,200 82,137 111,812 Czech Republic Secured loans 615 38,694 - 39,309 Romania Secured loans 2,727 10,908 46,365 60,000 Accrued interest on loans and deferred loan costs (180) (2,181) - (2,361) Accrued coupon on bonds 20,353 - - 20,353 Deferred bond costs (2,504) (7,359) (1,203) (11,066) Issue discount on bonds (3,586) (10,161) (1,549) (15,296) Total 25,420 1,826,181 699,271 2,550,872 Interest bearing borrowings 31 Dec 2021 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,495,000 500,000 1,995,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 380 75,620 - 76,000 Slovakia Secured loans 7,216 71,607 39,176 117,999 Czech Republic Secured loans 564 39,309 - 39,873 Accrued interest on loans and deferred loan costs (729) (2,078) - (2,807) Accrued coupon on bonds 18,856 - - 18,856 Deferred bond costs (2,772) (6,846) (430) (10,048) Issue discount on bonds (5,036) (9,909) (624) (15,569) Total 18,479 1,662,703 611,643 2,292,825 Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). Further details for the Group\u2019s loans and bonds are presented below: Secured term loans The Group has secured term loans contracted by some of its subsidiaries in Poland, Slovakia, Czech Republic and Romania. In December 2022, a Romanian subsidiary concluded a \u20ac60 million secured loan which matures in March 2030. Securities \u2022 General security over the properties (fair values as at 31 December 2022), current assets, cash in\ufb02ows from operating activities, accounts and receivables; and \u2022 General security over the shares in the property-owning entities. Covenants \u2022 Debt service cover ratio of a minimum between 120% and 130%; and \u2022 Loan to value ratio of a maximum between 60% and 70%. Unsecured green term loan In June 2021, the Group concluded a green unsecured \ufb01nancing agreement which matures in June 2028 in amount of \u20ac73.5 million. The loan was fully disbursed in July 2021. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. The loan is linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Unsecured committed revolving facilities At 31 December 2022, out of the \u20ac620 million revolving facilities, \u20ac420 million were available for drawdown following disbursement of \u20ac200 million in December 2022. The drawn amounts have the maturity of the revolving facilities from which they have been disbursed, in 2025, but they can be reimbursed earlier. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. All available revolving facilities are linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Management considers that the above ESG related variability feature does not meet the de\ufb01nition of a derivative, as de\ufb01ned in Appendix A of IFRS 9, on the basis that the external rating is a non\u2013\ufb01nancial variable speci\ufb01c to the Group. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. 21. TRADE AND OTHER PAYABLES in \u20ac thousand 31 Dec 202 31 Dec 2021 Property related payables 80,167 43,266 Advances from tenants 43,710 37,905 Payable for assets under construction 16,973 11,978 Borrowings from third parties \u2013 short-term (Note 22) - 4,388 Accrued administrative expenses 5,246 3,783 Tenant security deposits 2,635 2,335 Deferred consideration on acquisitions of subsidiaries and asset deals 6,271 1,314 TOTAL 155,002 104,969 22. OTHER LONG-TERM LIABILITIES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Borrowings from third parties \u2013 long-term* - 4,358 Tenant security deposits 32,990 29,034 Advances from residential customers 3,427 217 Other long-term payables 1,249 1,003 TOTAL 37,666 34,612 *Reconciliation of borrowings from third parties This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 23. LOANS FROM THIRD PARTY As disclosed in Note 35, as part of the deal for the acquisition of Forum Gdansk Sp. z o.o., the Group obtained vendor \ufb01nancing in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand, bearing an interest rate of 6.5%. One third of the loan principal is repayable at each anniversary of the loan until maturity, however the loan can be repaid by the Group at any time at its own discretion. The fair value of the loan is substantially in line with its carrying amount. 31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. 32. FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND LOSSES ON EXTINGUISHMENT OF FINANCIAL INSTRUMENTS The fair value adjustments of derivatives include the fair value gain of \u20ac37,946 thousand (31 December 2021: \u20ac5,174 thousand) from existing interest rate caps and swaps. These include a fair value gain of \u20ac4.1 million from pre-hedging \u20ac250 million of the bond issued in January 2022. At 31 December 2022, losses on extinguishment of \ufb01nancial instruments include the premium paid on repurchase of bond notes due in 2023 of \u20ac21,925 thousand (31 December 2021: nil) (refer to Note 19). 35. SIGNIFICANT ASSET DEALS Forum Gdansk Shopping Center On 19 December 2022, the Group acquired Forum Gdansk Sp. Zo.o., the legal entity that owns Forum Gdansk Shopping Centre in Poland. The acquisition was recognized as a property asset acquisition as the Company does not represent a business as de\ufb01ned by IFRS 3. The carrying amount of the identi\ufb01able assets and liabilities at the date of acquisition was as follows, in \u20ac thousand: Investment property 243,646 Trade and other receivables 2,653 Cash and cash equivalents 7,815 Identi\ufb01able acquired assets 254,114 Other long-term liabilities (1,176) Trade and other payables (3,308) Identi\ufb01able acquired liabilities (4,484) Net identi\ufb01able assets 249,630 Net identi\ufb01able assets of the subsidiary acquired at the date of acquisition amounted to \u20ac249,630 thousand. The net cash out\ufb02ow connected with the acquisition (cash out\ufb02ow adjusted for working capital items, less cash and cash equivalents acquired) amounted to \u20ac195,101 thousand. In addition to the cash paid, the Group obtained vendor \ufb01nancing on the transaction in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand. Accrued receivable from the seller of \u20ac3,286 thousand was recognised as adjustment to the purchase price paid. Acquisition costs of \u20ac1,995 thousand were capitalised on the value of investment property. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"f22007": {
"value": "4.8 Loans to participants in the Share Purchase Scheme (as de\ufb01ned in Note 4.18) Loans to participants in the Share Purchase Scheme incentive plan are initially recognised at the amount granted, carried at amortized cost and impaired based on expected credit losses (\u201cECL\u201d) model (Note 4.18). 4.10 Financial assets 4.10.1 Classi\ufb01cation In line with IFRS 9 \u201cFinancial instruments\u201d, the Group classi\ufb01es its \ufb01nancial assets in the following measurement categories: \u2022 those to be measured subsequently at fair value through pro\ufb01t or loss and \u2022 those to be measured at amortised cost. The classi\ufb01cation and subsequent measurement of debt instruments \ufb01nancial assets depends on: (i) the Group\u2019s business model for managing the related assets portfolio and (ii) the cash \ufb02ow characteristics of the asset. For \ufb01nancial assets measured at fair value through pro\ufb01t or loss (\u201cFVTPL\u201d), gains and losses are recorded in pro\ufb01t or loss. 4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.10.5 Reclassi\ufb01cation Financial instruments are reclassi\ufb01ed only when the business model for managing those assets changes. The reclassi\ufb01cation has a prospective e\ufb00ect and takes place from the start of the \ufb01rst reporting period following the change. 4.10.6 Write-o\ufb00 Financial assets are written-o\ufb00, in whole or in part, when the Group has exhausted all practical recovery e\ufb00orts and has concluded that there is no reasonable expectation of recovery. The write-o\ufb00 represents a derecognition event. Indicators that there is no reasonable expectation of recovery include, among others, insolvency or signi\ufb01cant \ufb01nancial di\ufb03culties of the tenant, default on payment terms and vacation or abandonment of the leased premises. Impaired trade and other receivables are derecognised when all reasonable e\ufb00orts to collect the amounts outstanding have failed and they are assessed as uncollectable. 4.10.7 Modi\ufb01cation The Group sometimes renegotiates or otherwise modi\ufb01es the contractual terms of the \ufb01nancial assets. The Group assesses whether the modi\ufb01cation of contractual cash \ufb02ows is substantial considering, among other, the following factors: new contractual terms that substantially a\ufb00ect the risk pro\ufb01le of the asset, signi\ufb01cant change in interest rate, change in the currency denomination. If the modi\ufb01ed terms are substantially di\ufb00erent, the rights to cash \ufb02ows from the original asset expire and the Group derecognises the original \ufb01nancial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a signi\ufb01cant increase in credit risk has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any di\ufb00erence between the carrying amount of the original asset derecognised and fair value of the new substantially modi\ufb01ed asset is recognised in pro\ufb01t or loss, unless the substance of the di\ufb00erence is attributed to a capital transaction with owners. In a situation where the renegotiation was driven by \ufb01nancial di\ufb03culties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash \ufb02ows to assess whether the risks and rewards of the asset are substantially di\ufb00erent as a result of the contractual modi\ufb01cation. If the risks and rewards do not change, the modi\ufb01ed asset is not substantially di\ufb00erent from the original asset and the modi\ufb01cation does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modi\ufb01ed contractual cash \ufb02ows by the original e\ufb00ective interest rate and recognises a modi\ufb01cation gain or loss in pro\ufb01t or loss. Speci\ufb01c valuation techniques used to value \ufb01nancial assets include: \u2022 The use of quoted market prices or dealer quotes for similar instruments (for \ufb01nancial investments at fair value through pro\ufb01t or loss and \ufb01nancial assets/liabilities at fair value through pro\ufb01t or loss); \u2022 Discounted cash \ufb02ow analysis (for the remaining \ufb01nancial instruments). The hierarchy for the fair value of \ufb01nancial assets and liabilities is as follows: \u2022 Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; \u2022 Level 2: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is directly or indirectly observable, and \u2022 Level 3: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is unobservable. 4.11 Financial liabilities \u2013 measurement categories Financial liabilities are initially recognised at fair value and classi\ufb01ed and subsequently measured at amortised cost, except for \ufb01nancial liabilities at FVTPL: this classi\ufb01cation is applied to interest rate derivatives and other \ufb01nancial liabilities designated as such at initial recognition. 4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 4.13 O\ufb00setting \ufb01nancial instruments Financial assets and \ufb01nancial liabilities are o\ufb00set and the net amount reported in the Statement of \ufb01nancial position when the Group has a legally enforceable right to set o\ufb00 the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 4.14 Cash and cash equivalents Cash and cash equivalents include cash balances, cash deposits and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni\ufb01cant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash \ufb02ows and those cash \ufb02ows represent solely payments of principal and interest (SPPI), and (ii) they are not designated at FVTPL. 4.15 Trade receivables Trade receivables are amounts due from customers for rental and service charge income from tenants in the ordinary course of business. If collection is expected in one year or less, they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value, generally at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash \ufb02ows and therefore measures them subsequently at amortised cost using the e\ufb00ective interest method. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 4.18 Share-based payments To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. 4.23 Earnings distribution A distribution is recorded as a liability and deducted from equity in the period in which it is declared and approved. Any distribution declared after the reporting period and before the \ufb01nancial statements are authorised for issue is disclosed in Note 37. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22008": {
"value": "4.8 Loans to participants in the Share Purchase Scheme (as de\ufb01ned in Note 4.18) Loans to participants in the Share Purchase Scheme incentive plan are initially recognised at the amount granted, carried at amortized cost and impaired based on expected credit losses (\u201cECL\u201d) model (Note 4.18). a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22009": {
"value": "4.8 Loans to participants in the Share Purchase Scheme (as de\ufb01ned in Note 4.18) Loans to participants in the Share Purchase Scheme incentive plan are initially recognised at the amount granted, carried at amortized cost and impaired based on expected credit losses (\u201cECL\u201d) model (Note 4.18). 4.10 Financial assets 4.10.1 Classi\ufb01cation In line with IFRS 9 \u201cFinancial instruments\u201d, the Group classi\ufb01es its \ufb01nancial assets in the following measurement categories: \u2022 those to be measured subsequently at fair value through pro\ufb01t or loss and \u2022 those to be measured at amortised cost. The classi\ufb01cation and subsequent measurement of debt instruments \ufb01nancial assets depends on: (i) the Group\u2019s business model for managing the related assets portfolio and (ii) the cash \ufb02ow characteristics of the asset. For \ufb01nancial assets measured at fair value through pro\ufb01t or loss (\u201cFVTPL\u201d), gains and losses are recorded in pro\ufb01t or loss. 4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. a. Debt instruments Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash \ufb02ow characteristics of the asset: assets that are held for collection of contractual cash \ufb02ows where those cash \ufb02ows represent solely payments of principal and interest (\u201cSPPI\u201d) are measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in pro\ufb01t or loss. Impairment losses are presented as separate line item in the Statement of comprehensive income. Financial assets measured at amortised cost (\u201cAC\u201d) comprise cash and cash equivalents, long-term loans granted to joint ventures, loans to participants in the Share Purchase Scheme, long-term receivables and trade and other receivables (excluding prepaid expenses). b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.10.5 Reclassi\ufb01cation Financial instruments are reclassi\ufb01ed only when the business model for managing those assets changes. The reclassi\ufb01cation has a prospective e\ufb00ect and takes place from the start of the \ufb01rst reporting period following the change. 4.10.6 Write-o\ufb00 Financial assets are written-o\ufb00, in whole or in part, when the Group has exhausted all practical recovery e\ufb00orts and has concluded that there is no reasonable expectation of recovery. The write-o\ufb00 represents a derecognition event. Indicators that there is no reasonable expectation of recovery include, among others, insolvency or signi\ufb01cant \ufb01nancial di\ufb03culties of the tenant, default on payment terms and vacation or abandonment of the leased premises. Impaired trade and other receivables are derecognised when all reasonable e\ufb00orts to collect the amounts outstanding have failed and they are assessed as uncollectable. 4.10.7 Modi\ufb01cation The Group sometimes renegotiates or otherwise modi\ufb01es the contractual terms of the \ufb01nancial assets. The Group assesses whether the modi\ufb01cation of contractual cash \ufb02ows is substantial considering, among other, the following factors: new contractual terms that substantially a\ufb00ect the risk pro\ufb01le of the asset, signi\ufb01cant change in interest rate, change in the currency denomination. If the modi\ufb01ed terms are substantially di\ufb00erent, the rights to cash \ufb02ows from the original asset expire and the Group derecognises the original \ufb01nancial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a signi\ufb01cant increase in credit risk has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any di\ufb00erence between the carrying amount of the original asset derecognised and fair value of the new substantially modi\ufb01ed asset is recognised in pro\ufb01t or loss, unless the substance of the di\ufb00erence is attributed to a capital transaction with owners. In a situation where the renegotiation was driven by \ufb01nancial di\ufb03culties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash \ufb02ows to assess whether the risks and rewards of the asset are substantially di\ufb00erent as a result of the contractual modi\ufb01cation. If the risks and rewards do not change, the modi\ufb01ed asset is not substantially di\ufb00erent from the original asset and the modi\ufb01cation does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modi\ufb01ed contractual cash \ufb02ows by the original e\ufb00ective interest rate and recognises a modi\ufb01cation gain or loss in pro\ufb01t or loss. Speci\ufb01c valuation techniques used to value \ufb01nancial assets include: \u2022 The use of quoted market prices or dealer quotes for similar instruments (for \ufb01nancial investments at fair value through pro\ufb01t or loss and \ufb01nancial assets/liabilities at fair value through pro\ufb01t or loss); \u2022 Discounted cash \ufb02ow analysis (for the remaining \ufb01nancial instruments). The hierarchy for the fair value of \ufb01nancial assets and liabilities is as follows: \u2022 Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; \u2022 Level 2: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is directly or indirectly observable, and \u2022 Level 3: Valuation techniques for which the lowest level input that is signi\ufb01cant to the fair value measurement is unobservable. 4.13 O\ufb00setting \ufb01nancial instruments Financial assets and \ufb01nancial liabilities are o\ufb00set and the net amount reported in the Statement of \ufb01nancial position when the Group has a legally enforceable right to set o\ufb00 the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 4.14 Cash and cash equivalents Cash and cash equivalents include cash balances, cash deposits and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni\ufb01cant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash \ufb02ows and those cash \ufb02ows represent solely payments of principal and interest (SPPI), and (ii) they are not designated at FVTPL. 4.15 Trade receivables Trade receivables are amounts due from customers for rental and service charge income from tenants in the ordinary course of business. If collection is expected in one year or less, they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value, generally at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash \ufb02ows and therefore measures them subsequently at amortised cost using the e\ufb00ective interest method. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 4.18 Share-based payments To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22019": {
"value": "4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 11. OTHER LONG-TERM ASSETS Other long-term assets are classi\ufb01ed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants under the Share Purchase Scheme (Note 18) 4,205 4,510 Property, plant and equipment 3,780 3,599 Intangible assets 3,065 1,346 TOTAL 11,050 9,455 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22020": {
"value": "4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22024": {
"value": "4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22025": {
"value": "4.9 Property, plant and equipment and intangible assets Property, plant and equipment and intangible assets are initially recognised at acquisition cost, subsequently carried at acquisition cost less accumulated depreciation or amortization and accumulated impairment losses. They are tested for impairment when indicators exist. The cost of computer licenses and property, plant and equipment is depreciated on a straight-line basis over the length of their useful lives: Useful lives in years Computer licences 1\u20133 O\ufb03ce improvements over the term of the underlying lease O\ufb03ce equipment 2\u201316 Equipment used in owner-managed activities 3\u201322 ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22026": {
"value": "4.9 Property, plant and equipment and intangible assets For property, plant and equipment the costs of minor repairs and maintenance are expensed when incurred while gains and losses on disposals are determined by comparing the proceeds with the carrying amount. Both are recognised in the Statement of comprehensive income for the year. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22053": {
"value": "4.10 Financial assets 4.10.1 Classi\ufb01cation In line with IFRS 9 \u201cFinancial instruments\u201d, the Group classi\ufb01es its \ufb01nancial assets in the following measurement categories: \u2022 those to be measured subsequently at fair value through pro\ufb01t or loss and \u2022 those to be measured at amortised cost. The classi\ufb01cation and subsequent measurement of debt instruments \ufb01nancial assets depends on: (i) the Group\u2019s business model for managing the related assets portfolio and (ii) the cash \ufb02ow characteristics of the asset. For \ufb01nancial assets measured at fair value through pro\ufb01t or loss (\u201cFVTPL\u201d), gains and losses are recorded in pro\ufb01t or loss. 4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS 6.1 Credit risk The carrying amount of \ufb01nancial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is set out below: Credit exposure on \ufb01nancial instruments in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Loans granted to joint ventures 36 - 22,466 Tenant receivables 13 59,691 46,874 Cash and cash equivalents 14 250,631 498,623 Financial assets at fair value through pro\ufb01t or loss* 20 36,064 4,542 Loans to participants in the Share Purchase Scheme** 11,18 4,205 4,510 TOTAL 350,591 577,015 * Includes both long-term and short-term \ufb01nancial assets at fair value through pro\ufb01t or loss **Presented in line Other long-term assets in the Statement of \ufb01nancial position The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. The maturity pro\ufb01le of the Financial assets at fair value through pro\ufb01t or loss is disclosed below: 31 December 2022 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 25,958 10,106 36,064 31 December 2021 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 2,643 1,899 4,542 6.2 Liquidity risk 31 Dec 2021 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 28,915 30,137 1,603,847 508,790 2,171,689 1,988,239 Bank loans (including estimated future interest) 19 2,901 9,002 195,444 115,967 323,314 304,586 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 20 - - 3,211 - 3,211 3,211 Borrowings from third parties short and long-term (including estimated future interest) 22 317 4,965 1,044 5,396 11,722 8,746 Trade and other payables (excluding short-term borrowings from third parties) 21 20,116 80,465 - - 100,581 100,581 Other long-term liabilities (excluding long-term borrowings from third parties) 22 - - 22,410 7,844 30,254 30,254 Lease liabilities (including estimated future interest) 24 832 - 3,329 53,279 57,440 33,611 TOTAL 53,082 124,569 1,829,285 691,276 2,698,211 2,469,228 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. 32. FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND LOSSES ON EXTINGUISHMENT OF FINANCIAL INSTRUMENTS The fair value adjustments of derivatives include the fair value gain of \u20ac37,946 thousand (31 December 2021: \u20ac5,174 thousand) from existing interest rate caps and swaps. These include a fair value gain of \u20ac4.1 million from pre-hedging \u20ac250 million of the bond issued in January 2022. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22054": {
"value": "4.10 Financial assets 4.10.1 Classi\ufb01cation In line with IFRS 9 \u201cFinancial instruments\u201d, the Group classi\ufb01es its \ufb01nancial assets in the following measurement categories: \u2022 those to be measured subsequently at fair value through pro\ufb01t or loss and \u2022 those to be measured at amortised cost. The classi\ufb01cation and subsequent measurement of debt instruments \ufb01nancial assets depends on: (i) the Group\u2019s business model for managing the related assets portfolio and (ii) the cash \ufb02ow characteristics of the asset. For \ufb01nancial assets measured at fair value through pro\ufb01t or loss (\u201cFVTPL\u201d), gains and losses are recorded in pro\ufb01t or loss. 4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22056": {
"value": "4.10 Financial assets 4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. Should the bonds be repaid at their maturity, the Group\u2019s liability towards bonds holders does not vary in line with the market price of its listed notes. For reference, as at 31 December 2022 the market value of the outstanding bonds issued by the Group is presented in Note 19. 19 BORROWINGS (BONDS AND BANK LOANS) The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. 32. FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND LOSSES ON EXTINGUISHMENT OF FINANCIAL INSTRUMENTS The fair value adjustments of derivatives include the fair value gain of \u20ac37,946 thousand (31 December 2021: \u20ac5,174 thousand) from existing interest rate caps and swaps. These include a fair value gain of \u20ac4.1 million from pre-hedging \u20ac250 million of the bond issued in January 2022. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22069": {
"value": "4.10.2 Recognition and derecognition All purchases and sales of \ufb01nancial assets that require delivery within the time frame established by regulation or market convention (\u201cregular way\u201d purchases and sales) are recorded at trade date, which is the date when the Group commits to deliver a \ufb01nancial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when the rights to receive cash \ufb02ows from the \ufb01nancial assets have expired or have been transferred and the Group have transferred substantially all the risks and rewards of ownership. 4.10.6 Write-o\ufb00 Financial assets are written-o\ufb00, in whole or in part, when the Group has exhausted all practical recovery e\ufb00orts and has concluded that there is no reasonable expectation of recovery. The write-o\ufb00 represents a derecognition event. Indicators that there is no reasonable expectation of recovery include, among others, insolvency or signi\ufb01cant \ufb01nancial di\ufb03culties of the tenant, default on payment terms and vacation or abandonment of the leased premises. Impaired trade and other receivables are derecognised when all reasonable e\ufb00orts to collect the amounts outstanding have failed and they are assessed as uncollectable. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22080": {
"value": "4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22081": {
"value": "4.10.3 Measurement At initial recognition, the Group measures a \ufb01nancial asset at its fair value plus, in the case of a \ufb01nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the \ufb01nancial asset. Transaction costs of \ufb01nancial assets carried at FVTPL are expensed in pro\ufb01t or loss. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22083": {
"value": "4.10.3 Measurement A gain or loss on initial recognition is only recorded if there is a di\ufb00erence between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognisingDifferenceBetweenFairValueAtInitialRecognitionAndAmountDeterminedUsingValuationTechniqueExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22084": {
"value": "4.10.3 Measurement Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. 32. FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND LOSSES ON EXTINGUISHMENT OF FINANCIAL INSTRUMENTS The fair value adjustments of derivatives include the fair value gain of \u20ac37,946 thousand (31 December 2021: \u20ac5,174 thousand) from existing interest rate caps and swaps. These include a fair value gain of \u20ac4.1 million from pre-hedging \u20ac250 million of the bond issued in January 2022. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22085": {
"value": "4.10.3 Measurement Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22086": {
"value": "4.10.3 Measurement Financial assets with embedded derivatives are considered in their entirety when determining whether their cash \ufb02ows are solely payment of principal and interest. b. Equity instruments and derivatives The Group subsequently measures all equity investments at fair value. Equity investments are measured at FVTPL, with changes in fair value of \ufb01nancial assets recognized in pro\ufb01t or loss. Dividends from such investments are recognised in pro\ufb01t or loss when the Group\u2019s right to receive payments is established, it is probable that the economic bene\ufb01ts associated with the dividend will \ufb02ow to the entity and the amount of the dividend can be measured reliably. Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22130": {
"value": "4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.15 Trade receivables Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 6. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS The Group has exposure to the following risks due to its use of \ufb01nancial instruments: credit, liquidity, and market, including currency and interest rate. This note presents information about the Group\u2019s exposure to each, as well as its objectives, policies and processes for measuring and managing risk. The Board of Directors has overall responsibility for the establishment and oversight of the Group\u2019s risk management framework. The Board of Directors has delegated the responsibility for developing this framework to the Risk Committee. This Committee reports to the Board of Directors on its activities, oversees how management monitors compliance policies and procedures, and reviews the adequacy of the framework regarding the risks faced. The Group\u2019s policies are established to identify and analyse the risks it may encounter by performing its activities, to set appropriate limits and controls, and to monitor risks and adherence to limits. These policies and systems are reviewed regularly to re\ufb02ect changes in market conditions and Group activities. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. Should the bonds be repaid at their maturity, the Group\u2019s liability towards bonds holders does not vary in line with the market price of its listed notes. For reference, as at 31 December 2022 the market value of the outstanding bonds issued by the Group is presented in Note 19. 6.1 Credit risk Credit risk is the risk of \ufb01nancial loss to the Group if a counterparty to a \ufb01nancial instrument fails to meet its contractual obligations and arises principally from the Group\u2019s loans granted to joint ventures, receivables from tenants and cash and cash equivalents. The carrying amount of \ufb01nancial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is set out below: Credit exposure on \ufb01nancial instruments in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Loans granted to joint ventures 36 - 22,466 Tenant receivables 13 59,691 46,874 Cash and cash equivalents 14 250,631 498,623 Financial assets at fair value through pro\ufb01t or loss* 20 36,064 4,542 Loans to participants in the Share Purchase Scheme** 11,18 4,205 4,510 TOTAL 350,591 577,015 * Includes both long-term and short-term \ufb01nancial assets at fair value through pro\ufb01t or loss **Presented in line Other long-term assets in the Statement of \ufb01nancial position Out of the above maximum credit exposure, the balance of Loans to participants in the Share Purchase Scheme is not considered to present credit risk as these are guaranteed with the Company\u2019s shares held as security (see details in Note 18). Trade and other receivables relate mainly to the Group\u2019s tenants. When monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or legal entity, the industry they work in, business size and previous \ufb01nancial di\ufb03culties. The exposure to credit risk is mainly in\ufb02uenced by the tenant\u2019s individual characteristics. The Group\u2019s widespread customer base reduces credit risk. The majority of rental income is derived from type A tenants (large international and national tenants; large listed tenants; government and major franchisees and companies with assets and/or turnovers exceeding \u20ac200 million), and there is no concentration of credit risk with respect to trade debtors: top 10 tenants account for 24.8% of the rental income as at 31 December 2022 (31 December 2021: 24.1%). Management has established a credit policy where new customers are analysed individually for creditworthiness before standard payment terms and conditions are o\ufb00ered. When available, the analysis includes external ratings. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. An overview of the tenant receivables net of impairment provision is set out below: in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Tenant receivables \u2013 gross 69,033 54,156 Less: Impairment provisions (9,342) (7,282) TENANT RECEIVABLES-NET OF IMPAIRMENT PROVISION 13 59,691 46,874 Reconciliation of impairment provisions is set out below: Movement of provisions for doubtful debtors in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year (7,282) (9,753) Additional provision from properties acquired during the year (2,489) - Additional expected credit losses (2,841) (4,962) Write-o\ufb00 of receivables 986 469 Recovery of previously expected credit losses 2,182 6,256 Released in relation to assets held for sale disposed during the year - 625 Foreign exchange gain 102 83 CARRYING VALUE (9,342) (7,282) This table excludes rent concessions. The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) The maturity pro\ufb01le of the Financial assets at fair value through pro\ufb01t or loss is disclosed below: 31 December 2022 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 25,958 10,106 36,064 31 December 2021 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 2,643 1,899 4,542 While cash and cash equivalents and loans granted to joint ventures are also subject to the impairment requirements of IFRS 9, the expected credit losses are immaterial. For purposes of liquidity management, the Group has\u00a0various\u00a0deposit accounts and negotiated current account agreements with several banks.\u00a0The arrangements in place result in an optimized mix between \ufb02exibility and reduced interest charges or best interest o\ufb00ered. The banks\u2019 credit ratings, as well as exposure per each bank are constantly monitored. At 31 December 2022, 95% of the Group's cash was held with investment-grade rated banks (31 December 2021: 96%), as detailed below: Cash and cash equivalents 31 Dec 2022 31 Dec 2021 Held with banks as rated by Moody\u2019s A1 7% 4% A2 30% 53% A3 15% 3% Aa3 8% 5% Baa1 35% 14% Baa2 - 2% Baa3 - 15% Held with not rated banks 5% 4% TOTAL 100% 100% 6.2 Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its \ufb01nancial obligations when due. The Group\u2019s approach to managing this risk ensures, as far as possible, it will always have enough liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation. To ensure this occurs, the Group prepares budgets, cash \ufb02ow analyses and forecasts, which enable the Directors to assess the level of \ufb01nancing required for future periods. Budgets and projections are used to assess any future potential investments and are compared to existing funds held on deposit to evaluate the nature, and extent of any future funding requirements. Further reference to bank loan maturity analysis is made in Note 19. The table below presents undiscounted cash \ufb02ows for all \ufb01nancial liabilities, computed at the contractual rates. 31 Dec 2022 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 30,707 28,539 1,616,496 518,081 2,193,823 1,992,971 Bank loans (including estimated future interest) 19 9,232 22,974 393,592 211,739 637,537 557,901 Borrowings from third parties (including estimated future interest) 23 908 19,080 36,518 - 56,506 50,107 Trade and other payables 21 31,000 124,002 - - 155,002 155,002 Other long-term liabilities 22 - - 31,303 6,363 37,666 37,666 Lease liabilities (including estimated future interest) 24 832 - 4,506 67,036 72,374 37,200 TOTAL 72,679 194,595 2,082,415 803,219 3,152,908 2,830,847 31 Dec 2021 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 28,915 30,137 1,603,847 508,790 2,171,689 1,988,239 Bank loans (including estimated future interest) 19 2,901 9,002 195,444 115,967 323,314 304,586 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 20 - - 3,211 - 3,211 3,211 Borrowings from third parties short and long-term (including estimated future interest) 22 317 4,965 1,044 5,396 11,722 8,746 Trade and other payables (excluding short-term borrowings from third parties) 21 20,116 80,465 - - 100,581 100,581 Other long-term liabilities (excluding long-term borrowings from third parties) 22 - - 22,410 7,844 30,254 30,254 Lease liabilities (including estimated future interest) 24 832 - 3,329 53,279 57,440 33,611 TOTAL 53,082 124,569 1,829,285 691,276 2,698,211 2,469,228 To enhance the liquidity risk disclosure, the \u201cbonds\u201d and \u201cbank loans\u201d components of this table, which were previously aggregated, are now disclosed separately. The comparative liquidity risk table, as of 31 December 2021, has accordingly been amended. 6.3 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates or equity prices will a\ufb00ect the Group\u2019s fair value or future cash \ufb02ows of \ufb01nancial instruments. The objective of market risk management is to manage market risk exposures within acceptable parameters, while optimising returns. The carrying value of \ufb01nancial assets and liabilities approximates their fair value, except for the carrying value of bonds, whose fair value is presented in Note 19. 6.3.1 Currency risk Group\u2019s current assets and liabilities are exposed to foreign currency risk on purchases and receivables denominated in Romanian leu (RON), Polish zloty (PLN), Bulgarian Lev (BGN), Hungarian forint (HUF), Serbian dinar (RSD), Czech crown (CZK), Croatian kuna (HRK) and South African rand (ZAR). Cash in\ufb02ows received in other currencies than Euro are converted to Euro using the spot rate available on the collection date. The amount converted to Euro is the net amount of cash in\ufb02ow in a foreign currency and the estimated cash out\ufb02ow in the same currency. The Group applies this policy to control its currency exposures in respect of monetary assets and liabilities denominated in currencies other than EUR. Sensitivities of pro\ufb01t or loss to reasonably possible changes in exchange rates applied at the \ufb01nancial position date relative to the local currency of the respective Group entities, with all other variables such as interest rates held constant, are immaterial. 6.3.2 Interest rate risk Interest rate risk is the risk that the future cash \ufb02ows of a \ufb01nancial instrument will \ufb02uctuate because of changes in market interest rates. The Group is exposed to interest rate risk on loans, borrowings and cash balances held. Group policy is to hedge this risk through the use of derivative \ufb01nancial instruments. As at 31 December 2022 and 31 December 2021, the Group held interest rate instruments in the form of interest rate swaps and interest rate caps, as further disclosed in Note 20. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Bank loans 557,901 304,586 \u2014 Rate capped 330,000 191,520 \u2014 Rate swapped 114,928 115,873 \u2014 Variable rate 115,333 - Accrued interest on loans and deferred loan costs* (2,360) (2,807) * The balance exposed to variable rate as of 31 December 2022 relate to a portion of the outstanding revolving credit facilities disbursed at year-end and represents less than 5% of the total outstanding debt. Sensitivity analysis for interest bearing \ufb01nancial instruments A change of 100 basis points (bps) in interest rates would have increased/(decreased) equity and pro\ufb01t for the year as shown below. Calculations are based on the cash and loans and borrowings balances outstanding at the respective balance sheet dates. Cash and loans and borrowings balances are subject to change over the year. This analysis assumes that all other variables, particularly foreign currency rates, remain constant. All sensitivity analysis calculations presented below are before tax. The benchmark rate for the bank loans with an outstanding amount of \u20ac557,901 thousand as at 31 December 2022 (2021: \u20ac304,586 thousand) is Euribor 3 months; if this rate is less than zero, Euribor shall be deemed to be zero. There are no plans to discontinue Euribor. Loans and borrowings with \ufb01xed or swapped interest rates are not a\ufb00ected by market changes in interest rates. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants in the Share Purchase Scheme (including accrued interest) (Note 18) 4,205 4,510 Loans and borrowings (variable or capped rate) (445,333) (191,520) TOTAL (441,128) (187,010) 31 Dec 2022 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 42 (42) 42 (42) Loans and borrowings (variable or capped rate)* (856) 1,130 (856) 1,130 TOTAL (814) 1,088 (814) 1,088 *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 31 Dec 2021 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 45 (45) 45 (45) Loans and borrowings (variable or capped rate)* (742) - (742) - TOTAL (697) (45) (697) (45) *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 7. INTERNAL CONTROLS TO MANAGE RISKS The Board of Directors is responsible for the Group\u2019s system of internal control and for reviewing its e\ufb00ectiveness. This system is designed to mitigate rather than eliminate the risk of failure to meet business objectives, and can only provide reasonable, not absolute, assurance against material misstatement or loss. The key features of the Group\u2019s system of internal control include: \u2022 Strategic and business planning: the Group prepares, and agrees, a business plan each year, to which the performance of the business is regularly monitored; \u2022 Investment appraisal: capital projects, major contracts and business and property acquisitions are reviewed in detail and approved by the Investment Committee, and/or the Board of Directors where appropriate, in accordance with delegated authority limits; \u2022 Financial monitoring: pro\ufb01tability, cash \ufb02ow and capital expenditure are closely monitored, and key \ufb01nancial information is reported to the Board of Directors regularly, including explanations of variances between actual and budgeted performance, and \u2022 Systems of control procedures and delegated authority: clearly de\ufb01ned guidelines and approval limits exist for capital and operating expenditure and other key business transactions and decisions. 19 BORROWINGS (BONDS AND BANK LOANS) The Group is currently assigned a long-term corporate credit rating of BBB (stable outlook) from Standard & Poor\u2019s Rating Services and BBB+ (stable outlook) from Fitch Ratings. In 2022, NEPI Rockcastle extended the contractual maturities related to its unsecured committed revolving credit facilities, as follows: \u2022 the revolving credit facility from BRD-Groupe Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and Garanti Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac170 million; \u2022 the revolving credit facility from ING Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac100 million; and \u2022 the revolving credit facility from Rai\ufb00eisen Bank International was extended for one year, until January 2025, with the maximum principal available maintained at \u20ac150 million. The above mentioned committed revolving credit facilities together with the revolving credit facility from a four-bank syndicate of a maximum limit of \u20ac200 million amount to a total of \u20ac620 million available unsecured committed revolving credit facilities, of which \u20ac420 million were undrawn as at 31 December 2022 (31 December 2021: \u20ac620 million). In January 2022, the Group issued its second green \u20ac500 million unsecured 8-year Eurobond, carrying a 2% \ufb01xed coupon, with an issue price of 98.713%. The bond issue was used for liability management, to repay a \u20ac500 million bond maturing in 2023. The repurchase of 2023 bond was made at market price in January and February 2022, with the premium paid over its carrying value of \u20ac22 million, recognised in the Statement of comprehensive income. The average interest rate of the Group\u2019s debt, including hedging result, was approximately 2.3% during 2022 (31 December 2021: 2.4%). As at 31 December 2022, \ufb01xed-coupon bonds represented 78% of NEPI Rockcastle\u2019s outstanding debt; out of the remaining long-term debt exposed to Euribor, 59% was hedged with interest rate caps and 21% with interest rate swaps. The unhedged portion represents less than 5% of the outstanding debt and relates to a proportion of the revolving credit facilities disbursed as of year-end. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. The repayment pro\ufb01le for outstanding loans, excluding future interest, is detailed below. In addition to these loans, the Group had loans and borrowings related to its joint ventures presented in Note 36, which were repaid in the second half of 2022 following acquisition of the remaining 50% stake in the joint-venture. Interest bearing borrowings 31 Dec 2022 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,498,980 500,000 1,998,980 Netherlands Revolving facilities - 200,000 - 200,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 1,520 74,100 - 75,620 Slovakia Secured loans 6,475 23,200 82,137 111,812 Czech Republic Secured loans 615 38,694 - 39,309 Romania Secured loans 2,727 10,908 46,365 60,000 Accrued interest on loans and deferred loan costs (180) (2,181) - (2,361) Accrued coupon on bonds 20,353 - - 20,353 Deferred bond costs (2,504) (7,359) (1,203) (11,066) Issue discount on bonds (3,586) (10,161) (1,549) (15,296) Total 25,420 1,826,181 699,271 2,550,872 Interest bearing borrowings 31 Dec 2021 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,495,000 500,000 1,995,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 380 75,620 - 76,000 Slovakia Secured loans 7,216 71,607 39,176 117,999 Czech Republic Secured loans 564 39,309 - 39,873 Accrued interest on loans and deferred loan costs (729) (2,078) - (2,807) Accrued coupon on bonds 18,856 - - 18,856 Deferred bond costs (2,772) (6,846) (430) (10,048) Issue discount on bonds (5,036) (9,909) (624) (15,569) Total 18,479 1,662,703 611,643 2,292,825 Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). Further details for the Group\u2019s loans and bonds are presented below: Secured term loans The Group has secured term loans contracted by some of its subsidiaries in Poland, Slovakia, Czech Republic and Romania. In December 2022, a Romanian subsidiary concluded a \u20ac60 million secured loan which matures in March 2030. Securities \u2022 General security over the properties (fair values as at 31 December 2022), current assets, cash in\ufb02ows from operating activities, accounts and receivables; and \u2022 General security over the shares in the property-owning entities. Covenants \u2022 Debt service cover ratio of a minimum between 120% and 130%; and \u2022 Loan to value ratio of a maximum between 60% and 70%. Unsecured green term loan In June 2021, the Group concluded a green unsecured \ufb01nancing agreement which matures in June 2028 in amount of \u20ac73.5 million. The loan was fully disbursed in July 2021. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. The loan is linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Unsecured committed revolving facilities At 31 December 2022, out of the \u20ac620 million revolving facilities, \u20ac420 million were available for drawdown following disbursement of \u20ac200 million in December 2022. The drawn amounts have the maturity of the revolving facilities from which they have been disbursed, in 2025, but they can be reimbursed earlier. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. All available revolving facilities are linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Management considers that the above ESG related variability feature does not meet the de\ufb01nition of a derivative, as de\ufb01ned in Appendix A of IFRS 9, on the basis that the external rating is a non\u2013\ufb01nancial variable speci\ufb01c to the Group. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. ",
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"value": "4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. ",
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"value": "4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.12 Borrowings (bonds and bank loans) Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 22. OTHER LONG-TERM LIABILITIES This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 23. LOANS FROM THIRD PARTY As disclosed in Note 35, as part of the deal for the acquisition of Forum Gdansk Sp. z o.o., the Group obtained vendor \ufb01nancing in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand, bearing an interest rate of 6.5%. One third of the loan principal is repayable at each anniversary of the loan until maturity, however the loan can be repaid by the Group at any time at its own discretion. The fair value of the loan is substantially in line with its carrying amount. 24. LEASE LIABILITIES Reconciliation of lease liabilities in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value of the lease liabilities 33,611 33,862 Out of which short-term 832 832 Additions to lease liabilities from acquired assets 3,843 - Interest expense (Note 31) 577 581 Lease liability payment (832) (832) Lease liabilities 37,200 33,611 Out of which short-term 832 832 31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. 36. JOINT VENTURES Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). ",
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"f22135": {
"value": "4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.12 Borrowings (bonds and bank loans) Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. ",
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"f22153": {
"value": "4.10.5 Reclassi\ufb01cation Financial instruments are reclassi\ufb01ed only when the business model for managing those assets changes. The reclassi\ufb01cation has a prospective e\ufb00ect and takes place from the start of the \ufb01rst reporting period following the change. ",
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"f22154": {
"value": "4.10.5 Reclassi\ufb01cation Financial instruments are reclassi\ufb01ed only when the business model for managing those assets changes. The reclassi\ufb01cation has a prospective e\ufb00ect and takes place from the start of the \ufb01rst reporting period following the change. ",
"dimensions": {
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"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"f22221": {
"value": "4.11 Financial liabilities \u2013 measurement categories Financial liabilities are initially recognised at fair value and classi\ufb01ed and subsequently measured at amortised cost, except for \ufb01nancial liabilities at FVTPL: this classi\ufb01cation is applied to interest rate derivatives and other \ufb01nancial liabilities designated as such at initial recognition. 4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 4.13 O\ufb00setting \ufb01nancial instruments Financial assets and \ufb01nancial liabilities are o\ufb00set and the net amount reported in the Statement of \ufb01nancial position when the Group has a legally enforceable right to set o\ufb00 the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. 4.23 Earnings distribution A distribution is recorded as a liability and deducted from equity in the period in which it is declared and approved. Any distribution declared after the reporting period and before the \ufb01nancial statements are authorised for issue is disclosed in Note 37. ",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22228": {
"value": "4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 19 BORROWINGS (BONDS AND BANK LOANS) The Group is currently assigned a long-term corporate credit rating of BBB (stable outlook) from Standard & Poor\u2019s Rating Services and BBB+ (stable outlook) from Fitch Ratings. In 2022, NEPI Rockcastle extended the contractual maturities related to its unsecured committed revolving credit facilities, as follows: \u2022 the revolving credit facility from BRD-Groupe Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and Garanti Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac170 million; \u2022 the revolving credit facility from ING Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac100 million; and \u2022 the revolving credit facility from Rai\ufb00eisen Bank International was extended for one year, until January 2025, with the maximum principal available maintained at \u20ac150 million. The above mentioned committed revolving credit facilities together with the revolving credit facility from a four-bank syndicate of a maximum limit of \u20ac200 million amount to a total of \u20ac620 million available unsecured committed revolving credit facilities, of which \u20ac420 million were undrawn as at 31 December 2022 (31 December 2021: \u20ac620 million). In January 2022, the Group issued its second green \u20ac500 million unsecured 8-year Eurobond, carrying a 2% \ufb01xed coupon, with an issue price of 98.713%. The bond issue was used for liability management, to repay a \u20ac500 million bond maturing in 2023. The repurchase of 2023 bond was made at market price in January and February 2022, with the premium paid over its carrying value of \u20ac22 million, recognised in the Statement of comprehensive income. The average interest rate of the Group\u2019s debt, including hedging result, was approximately 2.3% during 2022 (31 December 2021: 2.4%). As at 31 December 2022, \ufb01xed-coupon bonds represented 78% of NEPI Rockcastle\u2019s outstanding debt; out of the remaining long-term debt exposed to Euribor, 59% was hedged with interest rate caps and 21% with interest rate swaps. The unhedged portion represents less than 5% of the outstanding debt and relates to a proportion of the revolving credit facilities disbursed as of year-end. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. The repayment pro\ufb01le for outstanding loans, excluding future interest, is detailed below. In addition to these loans, the Group had loans and borrowings related to its joint ventures presented in Note 36, which were repaid in the second half of 2022 following acquisition of the remaining 50% stake in the joint-venture. Interest bearing borrowings 31 Dec 2022 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,498,980 500,000 1,998,980 Netherlands Revolving facilities - 200,000 - 200,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 1,520 74,100 - 75,620 Slovakia Secured loans 6,475 23,200 82,137 111,812 Czech Republic Secured loans 615 38,694 - 39,309 Romania Secured loans 2,727 10,908 46,365 60,000 Accrued interest on loans and deferred loan costs (180) (2,181) - (2,361) Accrued coupon on bonds 20,353 - - 20,353 Deferred bond costs (2,504) (7,359) (1,203) (11,066) Issue discount on bonds (3,586) (10,161) (1,549) (15,296) Total 25,420 1,826,181 699,271 2,550,872 Interest bearing borrowings 31 Dec 2021 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,495,000 500,000 1,995,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 380 75,620 - 76,000 Slovakia Secured loans 7,216 71,607 39,176 117,999 Czech Republic Secured loans 564 39,309 - 39,873 Accrued interest on loans and deferred loan costs (729) (2,078) - (2,807) Accrued coupon on bonds 18,856 - - 18,856 Deferred bond costs (2,772) (6,846) (430) (10,048) Issue discount on bonds (5,036) (9,909) (624) (15,569) Total 18,479 1,662,703 611,643 2,292,825 Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). Further details for the Group\u2019s loans and bonds are presented below: Secured term loans The Group has secured term loans contracted by some of its subsidiaries in Poland, Slovakia, Czech Republic and Romania. In December 2022, a Romanian subsidiary concluded a \u20ac60 million secured loan which matures in March 2030. Securities \u2022 General security over the properties (fair values as at 31 December 2022), current assets, cash in\ufb02ows from operating activities, accounts and receivables; and \u2022 General security over the shares in the property-owning entities. Covenants \u2022 Debt service cover ratio of a minimum between 120% and 130%; and \u2022 Loan to value ratio of a maximum between 60% and 70%. Unsecured green term loan In June 2021, the Group concluded a green unsecured \ufb01nancing agreement which matures in June 2028 in amount of \u20ac73.5 million. The loan was fully disbursed in July 2021. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. The loan is linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Unsecured committed revolving facilities At 31 December 2022, out of the \u20ac620 million revolving facilities, \u20ac420 million were available for drawdown following disbursement of \u20ac200 million in December 2022. The drawn amounts have the maturity of the revolving facilities from which they have been disbursed, in 2025, but they can be reimbursed earlier. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. All available revolving facilities are linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Management considers that the above ESG related variability feature does not meet the de\ufb01nition of a derivative, as de\ufb01ned in Appendix A of IFRS 9, on the basis that the external rating is a non\u2013\ufb01nancial variable speci\ufb01c to the Group. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. 21. TRADE AND OTHER PAYABLES in \u20ac thousand 31 Dec 202 31 Dec 2021 Property related payables 80,167 43,266 Advances from tenants 43,710 37,905 Payable for assets under construction 16,973 11,978 Borrowings from third parties \u2013 short-term (Note 22) - 4,388 Accrued administrative expenses 5,246 3,783 Tenant security deposits 2,635 2,335 Deferred consideration on acquisitions of subsidiaries and asset deals 6,271 1,314 TOTAL 155,002 104,969 22. OTHER LONG-TERM LIABILITIES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Borrowings from third parties \u2013 long-term* - 4,358 Tenant security deposits 32,990 29,034 Advances from residential customers 3,427 217 Other long-term payables 1,249 1,003 TOTAL 37,666 34,612 *Reconciliation of borrowings from third parties This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 23. LOANS FROM THIRD PARTY As disclosed in Note 35, as part of the deal for the acquisition of Forum Gdansk Sp. z o.o., the Group obtained vendor \ufb01nancing in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand, bearing an interest rate of 6.5%. One third of the loan principal is repayable at each anniversary of the loan until maturity, however the loan can be repaid by the Group at any time at its own discretion. The fair value of the loan is substantially in line with its carrying amount. 35. SIGNIFICANT ASSET DEALS Forum Gdansk Shopping Center On 19 December 2022, the Group acquired Forum Gdansk Sp. Zo.o., the legal entity that owns Forum Gdansk Shopping Centre in Poland. The acquisition was recognized as a property asset acquisition as the Company does not represent a business as de\ufb01ned by IFRS 3. The carrying amount of the identi\ufb01able assets and liabilities at the date of acquisition was as follows, in \u20ac thousand: Investment property 243,646 Trade and other receivables 2,653 Cash and cash equivalents 7,815 Identi\ufb01able acquired assets 254,114 Other long-term liabilities (1,176) Trade and other payables (3,308) Identi\ufb01able acquired liabilities (4,484) Net identi\ufb01able assets 249,630 Net identi\ufb01able assets of the subsidiary acquired at the date of acquisition amounted to \u20ac249,630 thousand. The net cash out\ufb02ow connected with the acquisition (cash out\ufb02ow adjusted for working capital items, less cash and cash equivalents acquired) amounted to \u20ac195,101 thousand. In addition to the cash paid, the Group obtained vendor \ufb01nancing on the transaction in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand. Accrued receivable from the seller of \u20ac3,286 thousand was recognised as adjustment to the purchase price paid. Acquisition costs of \u20ac1,995 thousand were capitalised on the value of investment property. ",
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},
"f22229": {
"value": "4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. ",
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"value": "4.12 Borrowings (bonds and bank loans) Borrowings are recognised initially at the fair value of the liability (determined using the prevailing market rate of interest if signi\ufb01cantly di\ufb00erent from the transaction price) and net of transaction costs incurred. In subsequent periods, borrowings are subsequently carried at amortized cost using the e\ufb00ective interest method. Any di\ufb00erence between the proceeds (net of transaction costs) and the redemption value is recognised in Statement of comprehensive income over the period of the borrowings, using the e\ufb00ective interest method, unless they are directly attributable to the acquisition, construction or production of a qualifying asset, in which case they are capitalised as part of the cost of that asset. Borrowings are classi\ufb01ed as current liabilities, unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowings are removed from the balance sheet when the obligation speci\ufb01ed in the contract is extinguished (i.e. discharged, cancelled or expires). The di\ufb00erence between the carrying amount of a \ufb01nancial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Statement of comprehensive income. An exchange between the Group and its original lenders of debt instruments with substantially di\ufb00erent terms, as well as substantial modi\ufb01cations of the terms and conditions of existing \ufb01nancial liabilities, are accounted for as an extinguishment of the original \ufb01nancial liability and the recognition of a new \ufb01nancial liability. The terms are substantially di\ufb00erent if the discounted present value of the cash \ufb02ows under the new terms, including any fees paid net of any fees received and discounted using the original e\ufb00ective interest rate, is at least 10% di\ufb00erent from the discounted present value of the remaining cash \ufb02ows of the original \ufb01nancial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modi\ufb01cation of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modi\ufb01cation is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modi\ufb01ed liability. Modi\ufb01cations of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch-up method, with any gain or loss recognised in Statement of comprehensive income. Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 6.2 Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its \ufb01nancial obligations when due. The Group\u2019s approach to managing this risk ensures, as far as possible, it will always have enough liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation. To ensure this occurs, the Group prepares budgets, cash \ufb02ow analyses and forecasts, which enable the Directors to assess the level of \ufb01nancing required for future periods. Budgets and projections are used to assess any future potential investments and are compared to existing funds held on deposit to evaluate the nature, and extent of any future funding requirements. Further reference to bank loan maturity analysis is made in Note 19. The table below presents undiscounted cash \ufb02ows for all \ufb01nancial liabilities, computed at the contractual rates. 31 Dec 2022 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 30,707 28,539 1,616,496 518,081 2,193,823 1,992,971 Bank loans (including estimated future interest) 19 9,232 22,974 393,592 211,739 637,537 557,901 Borrowings from third parties (including estimated future interest) 23 908 19,080 36,518 - 56,506 50,107 Trade and other payables 21 31,000 124,002 - - 155,002 155,002 Other long-term liabilities 22 - - 31,303 6,363 37,666 37,666 Lease liabilities (including estimated future interest) 24 832 - 4,506 67,036 72,374 37,200 TOTAL 72,679 194,595 2,082,415 803,219 3,152,908 2,830,847 31 Dec 2021 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 28,915 30,137 1,603,847 508,790 2,171,689 1,988,239 Bank loans (including estimated future interest) 19 2,901 9,002 195,444 115,967 323,314 304,586 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 20 - - 3,211 - 3,211 3,211 Borrowings from third parties short and long-term (including estimated future interest) 22 317 4,965 1,044 5,396 11,722 8,746 Trade and other payables (excluding short-term borrowings from third parties) 21 20,116 80,465 - - 100,581 100,581 Other long-term liabilities (excluding long-term borrowings from third parties) 22 - - 22,410 7,844 30,254 30,254 Lease liabilities (including estimated future interest) 24 832 - 3,329 53,279 57,440 33,611 TOTAL 53,082 124,569 1,829,285 691,276 2,698,211 2,469,228 To enhance the liquidity risk disclosure, the \u201cbonds\u201d and \u201cbank loans\u201d components of this table, which were previously aggregated, are now disclosed separately. The comparative liquidity risk table, as of 31 December 2021, has accordingly been amended. 19 BORROWINGS (BONDS AND BANK LOANS) The Group is currently assigned a long-term corporate credit rating of BBB (stable outlook) from Standard & Poor\u2019s Rating Services and BBB+ (stable outlook) from Fitch Ratings. In 2022, NEPI Rockcastle extended the contractual maturities related to its unsecured committed revolving credit facilities, as follows: \u2022 the revolving credit facility from BRD-Groupe Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and Garanti Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac170 million; \u2022 the revolving credit facility from ING Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac100 million; and \u2022 the revolving credit facility from Rai\ufb00eisen Bank International was extended for one year, until January 2025, with the maximum principal available maintained at \u20ac150 million. In January 2022, the Group issued its second green \u20ac500 million unsecured 8-year Eurobond, carrying a 2% \ufb01xed coupon, with an issue price of 98.713%. The bond issue was used for liability management, to repay a \u20ac500 million bond maturing in 2023. The repurchase of 2023 bond was made at market price in January and February 2022, with the premium paid over its carrying value of \u20ac22 million, recognised in the Statement of comprehensive income. The average interest rate of the Group\u2019s debt, including hedging result, was approximately 2.3% during 2022 (31 December 2021: 2.4%). As at 31 December 2022, \ufb01xed-coupon bonds represented 78% of NEPI Rockcastle\u2019s outstanding debt; out of the remaining long-term debt exposed to Euribor, 59% was hedged with interest rate caps and 21% with interest rate swaps. The unhedged portion represents less than 5% of the outstanding debt and relates to a proportion of the revolving credit facilities disbursed as of year-end. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. The repayment pro\ufb01le for outstanding loans, excluding future interest, is detailed below. In addition to these loans, the Group had loans and borrowings related to its joint ventures presented in Note 36, which were repaid in the second half of 2022 following acquisition of the remaining 50% stake in the joint-venture. Interest bearing borrowings 31 Dec 2022 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,498,980 500,000 1,998,980 Netherlands Revolving facilities - 200,000 - 200,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 1,520 74,100 - 75,620 Slovakia Secured loans 6,475 23,200 82,137 111,812 Czech Republic Secured loans 615 38,694 - 39,309 Romania Secured loans 2,727 10,908 46,365 60,000 Accrued interest on loans and deferred loan costs (180) (2,181) - (2,361) Accrued coupon on bonds 20,353 - - 20,353 Deferred bond costs (2,504) (7,359) (1,203) (11,066) Issue discount on bonds (3,586) (10,161) (1,549) (15,296) Total 25,420 1,826,181 699,271 2,550,872 Interest bearing borrowings 31 Dec 2021 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,495,000 500,000 1,995,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 380 75,620 - 76,000 Slovakia Secured loans 7,216 71,607 39,176 117,999 Czech Republic Secured loans 564 39,309 - 39,873 Accrued interest on loans and deferred loan costs (729) (2,078) - (2,807) Accrued coupon on bonds 18,856 - - 18,856 Deferred bond costs (2,772) (6,846) (430) (10,048) Issue discount on bonds (5,036) (9,909) (624) (15,569) Total 18,479 1,662,703 611,643 2,292,825 Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). Further details for the Group\u2019s loans and bonds are presented below: Secured term loans The Group has secured term loans contracted by some of its subsidiaries in Poland, Slovakia, Czech Republic and Romania. In December 2022, a Romanian subsidiary concluded a \u20ac60 million secured loan which matures in March 2030. Securities \u2022 General security over the properties (fair values as at 31 December 2022), current assets, cash in\ufb02ows from operating activities, accounts and receivables; and \u2022 General security over the shares in the property-owning entities. Covenants \u2022 Debt service cover ratio of a minimum between 120% and 130%; and \u2022 Loan to value ratio of a maximum between 60% and 70%. Unsecured green term loan In June 2021, the Group concluded a green unsecured \ufb01nancing agreement which matures in June 2028 in amount of \u20ac73.5 million. The loan was fully disbursed in July 2021. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. The loan is linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). 32. FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND LOSSES ON EXTINGUISHMENT OF FINANCIAL INSTRUMENTS At 31 December 2022, losses on extinguishment of \ufb01nancial instruments include the premium paid on repurchase of bond notes due in 2023 of \u20ac21,925 thousand (31 December 2021: nil) (refer to Note 19). ",
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"value": "4.12 Borrowings (bonds and bank loans) Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 22. OTHER LONG-TERM LIABILITIES This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 23. LOANS FROM THIRD PARTY As disclosed in Note 35, as part of the deal for the acquisition of Forum Gdansk Sp. z o.o., the Group obtained vendor \ufb01nancing in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand, bearing an interest rate of 6.5%. One third of the loan principal is repayable at each anniversary of the loan until maturity, however the loan can be repaid by the Group at any time at its own discretion. The fair value of the loan is substantially in line with its carrying amount. 24. LEASE LIABILITIES Reconciliation of lease liabilities in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value of the lease liabilities 33,611 33,862 Out of which short-term 832 832 Additions to lease liabilities from acquired assets 3,843 - Interest expense (Note 31) 577 581 Lease liability payment (832) (832) Lease liabilities 37,200 33,611 Out of which short-term 832 832 31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. ",
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"value": "4.12 Borrowings (bonds and bank loans) Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. ",
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"value": "4.12 Borrowings (bonds and bank loans) Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. 10. INVESTMENT PROPERTY UNDER DEVELOPMENT Borrowing costs capitalised in 2022 amount to \u20ac3,513 thousand (2021: \u20ac3,193 thousand) and were calculated using an average annual interest rate of 2.3% (2021: 2.4%). 19 BORROWINGS (BONDS AND BANK LOANS) Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). 31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. ",
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"concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22238": {
"value": "4.12 Borrowings (bonds and bank loans) Borrowing costs are interest and other costs that the Group incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and exchange di\ufb00erences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use (such as properties developed for future sale, capital appreciation or rental income) are capitalised as part of the cost of that asset, when it is probable that they will result in future economic bene\ufb01ts to the Group and the costs can be measured reliably. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22285": {
"value": "4.13 O\ufb00setting \ufb01nancial instruments Financial assets and \ufb01nancial liabilities are o\ufb00set and the net amount reported in the Statement of \ufb01nancial position when the Group has a legally enforceable right to set o\ufb00 the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22291": {
"value": "4.14 Cash and cash equivalents Cash and cash equivalents include cash balances, cash deposits and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni\ufb01cant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash \ufb02ows and those cash \ufb02ows represent solely payments of principal and interest (SPPI), and (ii) they are not designated at FVTPL. 14. CASH AND CASH EQUIVALENTS Cash and cash equivalents by currency in \u20ac thousand 31 Dec 2022 31 Dec 2021 EUR 161,035 418,751 RON 38,556 29,442 PLN 19,837 15,799 BGN 10,663 8,974 HUF 3,213 6,645 HRK 7,703 12,562 CZK 5,909 4,016 RSD 3,101 1,773 ZAR 614 572 USD - 9 GBP - 80 TOTAL 250,631 498,623 Cash and cash equivalents by type in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current accounts 196,019 378,401 Deposits 50,079 120,000 Restricted cash 4,250 - Petty cash and other values 283 222 TOTAL 250,631 498,623 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22292": {
"value": "4.14 Cash and cash equivalents Cash and cash equivalents include cash balances, cash deposits and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni\ufb01cant risk of changes in value. Cash and cash equivalents are carried at amortised cost because: (i) they are held for collection of contractual cash \ufb02ows and those cash \ufb02ows represent solely payments of principal and interest (SPPI), and (ii) they are not designated at FVTPL. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22299": {
"value": "4.15 Trade receivables Trade receivables are amounts due from customers for rental and service charge income from tenants in the ordinary course of business. If collection is expected in one year or less, they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value, generally at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash \ufb02ows and therefore measures them subsequently at amortised cost using the e\ufb00ective interest method. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 13. TRADE AND OTHER RECEIVABLES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Tenant receivables (Note 6.1) 59,691 46,874 VAT receivable 11,287 5,804 Prepaid property expenses 9,447 5,582 Other receivables 4,989 2,490 Other prepaid fees 82 222 TOTAL 85,496 60,972 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22300": {
"value": "4.15 Trade receivables Trade receivables are amounts due from customers for rental and service charge income from tenants in the ordinary course of business. If collection is expected in one year or less, they are classi\ufb01ed as current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at fair value, generally at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective to collect the contractual cash \ufb02ows and therefore measures them subsequently at amortised cost using the e\ufb00ective interest method. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22303": {
"value": "4.15 Trade receivables 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. 6.1 Credit risk Management has established a credit policy where new customers are analysed individually for creditworthiness before standard payment terms and conditions are o\ufb00ered. When available, the analysis includes external ratings. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. An overview of the tenant receivables net of impairment provision is set out below: in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Tenant receivables \u2013 gross 69,033 54,156 Less: Impairment provisions (9,342) (7,282) TENANT RECEIVABLES-NET OF IMPAIRMENT PROVISION 13 59,691 46,874 Reconciliation of impairment provisions is set out below: Movement of provisions for doubtful debtors in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year (7,282) (9,753) Additional provision from properties acquired during the year (2,489) - Additional expected credit losses (2,841) (4,962) Write-o\ufb00 of receivables 986 469 Recovery of previously expected credit losses 2,182 6,256 Released in relation to assets held for sale disposed during the year - 625 Foreign exchange gain 102 83 CARRYING VALUE (9,342) (7,282) This table excludes rent concessions. The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) The maturity pro\ufb01le of the Financial assets at fair value through pro\ufb01t or loss is disclosed below: 31 December 2022 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 25,958 10,106 36,064 31 December 2021 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 2,643 1,899 4,542 While cash and cash equivalents and loans granted to joint ventures are also subject to the impairment requirements of IFRS 9, the expected credit losses are immaterial. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22322": {
"value": "4.16 Inventory property Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value (\u201cNRV\u201d). Principally, this is residential property that the Group develops and intends to sell on completion of development. The commencement of development with a plan or a prior agreement to sell represents a change in use and accordingly the project is transferred from investment property to inventory property. Costs incurred in inventory property include: \u2022 freehold and leasehold rights for land \u2022 amounts paid to contractors for development \u2022 planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, development overheads and other related costs. NRV is the estimated selling price in the ordinary course of business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale. When an inventory property is sold, the carrying amount of the property is recognised as an expense in the period in which the related revenue is recognised. The carrying amount of inventory property recognised in pro\ufb01t or loss is determined with reference to the directly attributable costs incurred on the property sold and an allocation of any other related costs based on the relative size of the property sold. 16 INVENTORY PROPERTY The Group has a residential property development that it intends to sell on completion. The residential project is held as inventory property and is measured at the lower of cost and net realisable value (\u201cNRV\u201d) The commencement of development with a plan or a prior agreement to sell represents a change in use and accordingly the project is transferred from investment property to inventory property. NRV is the estimated selling price in the ordinary course of business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Inventory property 20,694 9,522 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22324": {
"value": "4.16 Inventory property Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value (\u201cNRV\u201d). Principally, this is residential property that the Group develops and intends to sell on completion of development. The commencement of development with a plan or a prior agreement to sell represents a change in use and accordingly the project is transferred from investment property to inventory property. Costs incurred in inventory property include: \u2022 freehold and leasehold rights for land \u2022 amounts paid to contractors for development \u2022 planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes, development overheads and other related costs. NRV is the estimated selling price in the ordinary course of business, based on market prices at the reporting date, less estimated costs of completion and the estimated costs necessary to make the sale. When an inventory property is sold, the carrying amount of the property is recognised as an expense in the period in which the related revenue is recognised. The carrying amount of inventory property recognised in pro\ufb01t or loss is determined with reference to the directly attributable costs incurred on the property sold and an allocation of any other related costs based on the relative size of the property sold. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22347": {
"value": "4.17 Share capital and share premium Ordinary shares are classi\ufb01ed as equity. Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. The consideration paid, including any directly attributable incremental costs (net of income taxes for the purchases of the Company\u2019s equity instruments by any of the Group\u2019s subsidiaries, as a result of a share buy-back or for a share- based incentive plan) is presented within \u201cOther reserves\u201d, until the shares are cancelled or reissued. Where such ordinary shares are cancelled, their nominal value is debited to Share capital, with the corresponding di\ufb00erence up to their purchase price (including any attributable incremental cost, net of taxes) debited from Share premium. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax e\ufb00ects, is included in equity attributable to the owners of the Group. Usually, shares are purchased for the debt-free Long-Term Share Incentive Plan (Note 4.18 (b)). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22348": {
"value": "4.17 Share capital and share premium Ordinary shares are classi\ufb01ed as equity. Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. The consideration paid, including any directly attributable incremental costs (net of income taxes for the purchases of the Company\u2019s equity instruments by any of the Group\u2019s subsidiaries, as a result of a share buy-back or for a share- based incentive plan) is presented within \u201cOther reserves\u201d, until the shares are cancelled or reissued. Where such ordinary shares are cancelled, their nominal value is debited to Share capital, with the corresponding di\ufb00erence up to their purchase price (including any attributable incremental cost, net of taxes) debited from Share premium. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax e\ufb00ects, is included in equity attributable to the owners of the Group. Usually, shares are purchased for the debt-free Long-Term Share Incentive Plan (Note 4.18 (b)). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22350": {
"value": "4.17 Share capital and share premium Ordinary shares are classi\ufb01ed as equity. Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. The consideration paid, including any directly attributable incremental costs (net of income taxes for the purchases of the Company\u2019s equity instruments by any of the Group\u2019s subsidiaries, as a result of a share buy-back or for a share- based incentive plan) is presented within \u201cOther reserves\u201d, until the shares are cancelled or reissued. Where such ordinary shares are cancelled, their nominal value is debited to Share capital, with the corresponding di\ufb00erence up to their purchase price (including any attributable incremental cost, net of taxes) debited from Share premium. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax e\ufb00ects, is included in equity attributable to the owners of the Group. Usually, shares are purchased for the debt-free Long-Term Share Incentive Plan (Note 4.18 (b)). 17. SHARE CAPITAL AND SHARE PREMIUM Movement of ordinary shares in \u20ac thousand Number of shares Share capital \u20ac0.01/share Share premium Issued as of 1 January 2021 608,994,907 6,090 3,550,061 CARRIED FORWARD AS AT 31 DECEMBER 2021 608,994,907 6,090 3,550,061 \u2014 Repurchase of shares 1,994,907 ordinary shares representing 0.33% of the Company issued shared capital* (1,994,907) (20) (9,326) \u2014 Share premium reduction (During 2022, \u20ac350,000 thousand were transferred from share premium to accumulated pro\ufb01t, to ensure positive retained earnings at stand-alone parent Company level) - - (350,000) CARRIED FORWARD AS AT 31 DECEMBER 2022 607,000,000 6,070 3,190,735 *The shares were repurchased between 29 September and 12 October 2022 from available cash. Subsequently, the repurchased shares were cancelled. The shares were repurchased at an average share price of \u20ac4.68. The Group had no issues of share capital or options to receive capital return granted to its shareholders during 2022. Ordinary shares carry the right to vote at general meetings, to distribution and to the surplus assets of the Group on winding-up. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22351": {
"value": "4.17 Share capital and share premium Ordinary shares are classi\ufb01ed as equity. Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. The consideration paid, including any directly attributable incremental costs (net of income taxes for the purchases of the Company\u2019s equity instruments by any of the Group\u2019s subsidiaries, as a result of a share buy-back or for a share- based incentive plan) is presented within \u201cOther reserves\u201d, until the shares are cancelled or reissued. Where such ordinary shares are cancelled, their nominal value is debited to Share capital, with the corresponding di\ufb00erence up to their purchase price (including any attributable incremental cost, net of taxes) debited from Share premium. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax e\ufb00ects, is included in equity attributable to the owners of the Group. Usually, shares are purchased for the debt-free Long-Term Share Incentive Plan (Note 4.18 (b)). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22364": {
"value": "4.18 Share-based payments To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. b. Debt free Long-Term Share Incentive Plan with a vesting component (\u201cLTSIP\u201d) This program was put in place after the 2017 merger of the former groups NEPI and Rockcastle. Under this incentive plan, shares may be issued by the Group to executive directors and other key personnel for no cash consideration. Awards under this plan are at the discretion of the Board of Directors and are based on the performance of the Group and the employees. The costs related to the LTSIP are measured based on the fair value of the shares at the grant date and are recognized over the vesting period. The costs are presented as part of the Administrative expenses in the Statement of comprehensive income and within Other reserves in the Statement of changes in equity. 11. OTHER LONG-TERM ASSETS Other long-term assets are classi\ufb01ed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants under the Share Purchase Scheme (Note 18) 4,205 4,510 Property, plant and equipment 3,780 3,599 Intangible assets 3,065 1,346 TOTAL 11,050 9,455 18. SHARE-BASED PAYMENTS The Group has implemented incentive plans to reward performance and align the interests of executive directors and key individuals with those of the shareholders. The Group\u2019s current incentive plan (\u201cIncentive Plan\u201d) was approved by Company\u2019s shareholders at an EGM dated 16 November 2022. The Incentive Plan replaces the initial plan that was approved at the merger between NEPI and Rockcastle. The aim of the plan is to incentivise directors and employees to meet the Group\u2019s short-term and long- term objectives by giving such participants an opportunity to receive performance-based Awards (in cash or shares), on short-term (immediate settlement in cash or shares) or long-term (shares with a vesting component). The Board determines which executive directors are eligible to participate in the Incentive Plan, and the allocation of incentives, based on key performance indicators. The executive directors determine which key employees are eligible to participate in the Incentive Plan, and the allocation of incentives is discretionary, based on key performance indicators and other considerations regarding the employees\u2019 performance. To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers (\u201cSPS\u201d) Under this program, loans were granted to participants in the share purchase schemes (the \u201cShare Purchase Scheme\u201d or \u201cSPS\u201d) to buy shares, the repayment of which could be made in part out of the distribution payable in relation to the shares (the \u201cNRP SPS\u201d). Of the shares initially subscribed for, 20% vested annually. The Group o\ufb00ered each participant the immediate right to subscribe for the permitted number of shares at their market value, less a maximum discount of 5%, together with a loan to fund the purchase. Each loan carried interest at the weighted average rate that the Group can borrow money. Loans are payable in full, together with interest, ten years after its subscription date, but could be repaid earlier. The Company has security interests that ensure the repayment of the principal and interest on the loan given to participants. The NRP SPS is a full recourse scheme (i.e., recourse in relation to loans granted is not limited to shares issued). Pending repayment of the loan, the distributions on such shares are used to repay loan interest. Any excess distribution after interest payment is used to repay the loan. No shares were issued during 2022 and 2021 under the NRP SPS. The number of shares outstanding and the loans to participants under the Share Purchase Scheme as at the year-end are summarised below: NRP SPS 31 Dec 2022 31 Dec 2021 Number of shares outstanding, collateralising the Loans to participants under the Share Purchase Scheme 657,276 705,864 Loans to participants under the Share Purchase Scheme (in \u20ac thousand) 4,205 4,510 b. Debt free Long-Term Share Incentive Plan with a vesting component (\u201cLTSIP\u201d) Under this incentive plan, shares are awarded by the Group to executive directors and other key employees for no cash consideration. For key employees, shares are awarded to participants on condition of employment in the Group for the next three years (vesting period), with shares being vested proportionally over each year of the corresponding vesting periods (tranche vesting). For executive directors, shares are awarded subject to a full vesting of them at the end of three years (cli\ufb00 vesting) plus a further two-year lock-up period, during which the vested shares cannot be disposed of by the directors. Shares awarded under LTSIP cannot be disposed of or otherwise encumbered up to their respective vesting dates. The number of shares granted but unvested at 31 December 2022 and their fair value at grant date are summarised below: LTSIP 31 Dec 2022 31 Dec 2021 Number of shares granted but unvested at year-end 817,822 633,527 Fair value at the grant date (\u20ac thousand) 4,734 3,731 The maximum number of shares which could be o\ufb00ered for subscription under the Incentive Plan is 5% of the issued share capital of the Company at the end of any \ufb01nancial year prior to each award, provided that such number shall not exceed 30,449,745 shares. The number of shares that remained available for issue in terms of the Incentive Plan were as follows: 31 Dec 2022 31 Dec 2021 Number of shares that remain available for issue at year-end 28,226,835 25,809,921 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22366": {
"value": "4.18 Share-based payments To date, NEPI Rockcastle has initiated two types of incentive programs that o\ufb00ered share-based payments in exchange for services provided to it by its directors and employees (equity-settled transactions), which are detailed below: a. Purchase O\ufb00ers with a vesting component \u2013 Share Purchase Scheme (\u201cNRP SPS\u201d) This program was put in place before the 2017 merger of the former groups New Europe Property Investments plc (\u201cNEPI\u201d) and Rockcastle Global Real Estate Company Ltd (\u201cRockcastle\u201d). Under this program, participants were granted loans to acquire shares in the Company at fair value at the grant date. These loans were classi\ufb01ed as \u201cloan to participants in the incentive plan\u201d and included in Other long-term assets (Note 11) The loans are carried at amortised costs and the accrued interest is recognised as \ufb01nance income in the Statement of comprehensive income. The costs under this program are nil. b. Debt free Long-Term Share Incentive Plan with a vesting component (\u201cLTSIP\u201d) This program was put in place after the 2017 merger of the former groups NEPI and Rockcastle. Under this incentive plan, shares may be issued by the Group to executive directors and other key personnel for no cash consideration. Awards under this plan are at the discretion of the Board of Directors and are based on the performance of the Group and the employees. The costs related to the LTSIP are measured based on the fair value of the shares at the grant date and are recognized over the vesting period. The costs are presented as part of the Administrative expenses in the Statement of comprehensive income and within Other reserves in the Statement of changes in equity. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22400": {
"value": "4.19 Accumulated pro\ufb01t The balance on the Statement of comprehensive income is transferred to accumulated pro\ufb01t at the end of each \ufb01nancial period. Distributions paid in cash are deducted from accumulated pro\ufb01t. Distributions for which shareholders elected to receive a return of capital are accounted for as an issue of share capital with a corresponding deduction from the share premium account. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22408": {
"value": "4.20 Provisions Provisions for liabilities are recognised when the Group has a present legal or constructive obligation as a result of past events, when it is probable that an out\ufb02ow of resources embodying economic bene\ufb01ts will be required to settle the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the reporting date. Where the e\ufb00ect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. Provisions are reassessed at each reporting date and are included in the \ufb01nancial statements at their net present values using discount rates appropriate to the Group in the economic environment at each reporting date. 29. EXPENSES WITH LITIGATION CLAIM in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gain from reversal of/ (expenses) with litigation claim 21,304 (37,304) In October 2017, one of the Group's subsidiaries entered into an agreement in relation to the conditional acquisition of an operating shopping centre and a related development, Serenada and Krokus Shopping Centres in Poland. On 1 January 2019, upon the lapse of the respective transaction's long stop date, the subsidiary noti\ufb01ed the counterparty that it had exercised its right to terminate the transaction as the long stop date had passed and certain conditions precedent had not been met. The counterparty consequently initiated arbitration proceedings against the Group, claiming a contractual penalty in the amount of \u20ac30 million. On 31 January 2022, the Group was informed by the Arbitral Tribunal that the arbitrators ordered that the Group is liable to pay the contractual penalty of \u20ac30 million plus accumulated interest and arbitration expenses. A litigation provision expense was previously recognised as a result in the 2021 \ufb01nancial statements for the amount of \u20ac37,304 thousand. Following negotiations between the Company and the counterparty to the initial transaction, the parties agreed on 23 November 2022 on an amicable settlement. Pursuant to the settlement, the Group paid to the counterparty an amount of \u20ac16 million and the parties have reciprocally waived, de\ufb01nitely and irrevocably, all and any present and potential rights and claims arising out of or in connection with the initial purchase transaction and Arbitral Tribunal award. As a result, a gain from the reversal of the di\ufb00erence between the initially provided amount and the settled amount of \u20ac21,304 thousand was recognised in the 2022 \ufb01nancial statements. 39. GUARANTEES HELD AND COMMITMENTS Guarantees As at 31 December 2022, the Group had received letters of guarantee from tenants worth \u20ac108,406 thousand (31 December 2021: \u20ac107,078 thousand) and from suppliers worth \u20ac62,692 thousand (31 December 2021: \u20ac16,351 thousand) related to ongoing developments. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22409": {
"value": "4.20 Provisions Provisions for liabilities are recognised when the Group has a present legal or constructive obligation as a result of past events, when it is probable that an out\ufb02ow of resources embodying economic bene\ufb01ts will be required to settle the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the reporting date. Where the e\ufb00ect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. Provisions are reassessed at each reporting date and are included in the \ufb01nancial statements at their net present values using discount rates appropriate to the Group in the economic environment at each reporting date. 29. EXPENSES WITH LITIGATION CLAIM in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gain from reversal of/ (expenses) with litigation claim 21,304 (37,304) In October 2017, one of the Group's subsidiaries entered into an agreement in relation to the conditional acquisition of an operating shopping centre and a related development, Serenada and Krokus Shopping Centres in Poland. On 1 January 2019, upon the lapse of the respective transaction's long stop date, the subsidiary noti\ufb01ed the counterparty that it had exercised its right to terminate the transaction as the long stop date had passed and certain conditions precedent had not been met. The counterparty consequently initiated arbitration proceedings against the Group, claiming a contractual penalty in the amount of \u20ac30 million. On 31 January 2022, the Group was informed by the Arbitral Tribunal that the arbitrators ordered that the Group is liable to pay the contractual penalty of \u20ac30 million plus accumulated interest and arbitration expenses. A litigation provision expense was previously recognised as a result in the 2021 \ufb01nancial statements for the amount of \u20ac37,304 thousand. Following negotiations between the Company and the counterparty to the initial transaction, the parties agreed on 23 November 2022 on an amicable settlement. Pursuant to the settlement, the Group paid to the counterparty an amount of \u20ac16 million and the parties have reciprocally waived, de\ufb01nitely and irrevocably, all and any present and potential rights and claims arising out of or in connection with the initial purchase transaction and Arbitral Tribunal award. As a result, a gain from the reversal of the di\ufb00erence between the initially provided amount and the settled amount of \u20ac21,304 thousand was recognised in the 2022 \ufb01nancial statements. 39. GUARANTEES HELD AND COMMITMENTS Guarantees As at 31 December 2022, the Group had received letters of guarantee from tenants worth \u20ac108,406 thousand (31 December 2021: \u20ac107,078 thousand) and from suppliers worth \u20ac62,692 thousand (31 December 2021: \u20ac16,351 thousand) related to ongoing developments. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22411": {
"value": "4.20 Provisions Provisions for liabilities are recognised when the Group has a present legal or constructive obligation as a result of past events, when it is probable that an out\ufb02ow of resources embodying economic bene\ufb01ts will be required to settle the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the reporting date. Where the e\ufb00ect of the time value of money is material, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. Provisions are reassessed at each reporting date and are included in the \ufb01nancial statements at their net present values using discount rates appropriate to the Group in the economic environment at each reporting date. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22423": {
"value": "4.21 Revenue Revenue is recognised at the fair value of the consideration received or receivable. Revenue comprises rental and related income and recovery of expenses, excluding VAT. Rental income Rental income receivable from operating leases is recognised on a straight-line basis over the duration of the lease, except for variable lease payments which are recognized when they arise. Service charges income from tenants Revenue from service and property management charges is recognised in the accounting period in which control of the services are passed to the customer, which is when the service is rendered. For certain service contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services. As speci\ufb01ed in the lease agreements, the Group has the primary responsibility for providing services to tenants (electricity, water and gas utilities, interior and exterior cleaning, security, maintenance, repairs, etc). The Group has determined that these services constitute distinct non-lease components (transferred separately from the right to use the underlying asset) and are within the scope of IFRS 15. The Group allocates the consideration in the contract to the separate lease and revenue (non-lease) components on a relative stand-alone selling price basis. In respect of the revenue component, these services represent a series of daily services that are individually satis\ufb01ed over time because the tenants simultaneously receive and consume the bene\ufb01ts provided by the Group. The Group applies the time elapsed method to measure progress. The Group negotiates directly with the suppliers all contracts for services provided to tenants. These contracts are concluded between the Group subsidiaries which own the properties and the direct supplier. As the Group sometimes uses the same providers for services across most of its portfolio, it can negotiate better prices through the economies of scale. The Group is considered principal in these transactions, in terms of the IFRS 15 requirements. The Group negotiates and pays all expenses incurred by the tenants and then re-invoices these costs to them as de\ufb01ned in the contractual clauses included in the lease agreements. A \ufb02at fee is charged monthly during the year. This fee is estimated based on the previous year\u2019s actual costs, with an annual service charge reconciliation performed based on current year\u2019s actual costs incurred by the Group. For contracts terminated during the year, the Group estimates the service charge to be collected based on the current budget and last year\u2019s actual costs. Covid-19 pandemic discounts Reduction of gross rental income Since the beginning of the pandemic, the Polish Government imposed a rent-free period for tenants, including service charge and marketing costs, during the state of emergency/lockdowns. This relief, which was legally enforced and implemented without changes to the lease contracts with tenants, has been recognised in the Statement of comprehensive income, as a reduction of Gross rental income and Service charge income and as a decrease of Trade and other receivables, in the Consolidated Statement of \ufb01nancial position. In some instances, the Group agreed to variable discounts contingent upon tenants\u2019 performance falling below a certain threshold, which has been recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income (negative variable rent). Partial forgiveness of receivables In the context of trading restrictions, the Group granted voluntary rental concessions during lockdowns periods, and/ or immediately following a lockdown. For the period up to the signing of lease modi\ufb01cations, the receivables already accrued in accordance with the in-force lease agreements have been partially written-o\ufb00 in accordance with the signed addendums, and therefore their \ufb01nancial impact was recognised immediately and not straight-lined over the new lease term. As such, tenant concessions granted before the signing of lease modi\ufb01cations were fully accounted for in the Consolidated Statement of comprehensive income as \u201cPartial forgiveness of receivables (Covid-19 Forgiveness)\u201d, and \u201cTrade and other receivables\u201d in the Consolidated Statement of \ufb01nancial position, in accordance with IFRS 9 \u201cFinancial Instruments\u201d (in relation to impairment of receivables). The accounting treatment is in accordance with IFRS 16, which allows rental income to be recognised even if recoverability is uncertain. Contractually agreed and signed modi\ufb01cations subject to straight-lining from the e\ufb00ective date of the modi\ufb01cation Contractually agreed and signed concessions granted to, and obtained from, tenants are treated according to IFRS 16 \u201cLeases\u201d. IFRS 16 de\ufb01nes \u201clease modi\ufb01cation\u201d as a change in scope, or consideration, of the lease, not part of the original terms and conditions, such as rent discounts, lease extensions, increase in variable rent (overage/turnover), introduction of break options, etc. Lease modi\ufb01cations are recognised prospectively over the new lease term and accounted for by the Group from the date the modi\ufb01cation is contractually agreed and signed by both parties. Agreed lease modi\ufb01cations are recognised as lease incentives from the date the modi\ufb01cation was signed. Such modi\ufb01cations are straight-lined over the new lease term and recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22424": {
"value": "4.21 Revenue Covid-19 pandemic discounts Reduction of gross rental income Since the beginning of the pandemic, the Polish Government imposed a rent-free period for tenants, including service charge and marketing costs, during the state of emergency/lockdowns. This relief, which was legally enforced and implemented without changes to the lease contracts with tenants, has been recognised in the Statement of comprehensive income, as a reduction of Gross rental income and Service charge income and as a decrease of Trade and other receivables, in the Consolidated Statement of \ufb01nancial position. In some instances, the Group agreed to variable discounts contingent upon tenants\u2019 performance falling below a certain threshold, which has been recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income (negative variable rent). Partial forgiveness of receivables In the context of trading restrictions, the Group granted voluntary rental concessions during lockdowns periods, and/ or immediately following a lockdown. For the period up to the signing of lease modi\ufb01cations, the receivables already accrued in accordance with the in-force lease agreements have been partially written-o\ufb00 in accordance with the signed addendums, and therefore their \ufb01nancial impact was recognised immediately and not straight-lined over the new lease term. As such, tenant concessions granted before the signing of lease modi\ufb01cations were fully accounted for in the Consolidated Statement of comprehensive income as \u201cPartial forgiveness of receivables (Covid-19 Forgiveness)\u201d, and \u201cTrade and other receivables\u201d in the Consolidated Statement of \ufb01nancial position, in accordance with IFRS 9 \u201cFinancial Instruments\u201d (in relation to impairment of receivables). The accounting treatment is in accordance with IFRS 16, which allows rental income to be recognised even if recoverability is uncertain. Contractually agreed and signed modi\ufb01cations subject to straight-lining from the e\ufb00ective date of the modi\ufb01cation Contractually agreed and signed concessions granted to, and obtained from, tenants are treated according to IFRS 16 \u201cLeases\u201d. IFRS 16 de\ufb01nes \u201clease modi\ufb01cation\u201d as a change in scope, or consideration, of the lease, not part of the original terms and conditions, such as rent discounts, lease extensions, increase in variable rent (overage/turnover), introduction of break options, etc. Lease modi\ufb01cations are recognised prospectively over the new lease term and accounted for by the Group from the date the modi\ufb01cation is contractually agreed and signed by both parties. Agreed lease modi\ufb01cations are recognised as lease incentives from the date the modi\ufb01cation was signed. Such modi\ufb01cations are straight-lined over the new lease term and recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22425": {
"value": "4.21 Revenue Service charges income from tenants Revenue from service and property management charges is recognised in the accounting period in which control of the services are passed to the customer, which is when the service is rendered. For certain service contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services. As speci\ufb01ed in the lease agreements, the Group has the primary responsibility for providing services to tenants (electricity, water and gas utilities, interior and exterior cleaning, security, maintenance, repairs, etc). The Group has determined that these services constitute distinct non-lease components (transferred separately from the right to use the underlying asset) and are within the scope of IFRS 15. The Group allocates the consideration in the contract to the separate lease and revenue (non-lease) components on a relative stand-alone selling price basis. In respect of the revenue component, these services represent a series of daily services that are individually satis\ufb01ed over time because the tenants simultaneously receive and consume the bene\ufb01ts provided by the Group. The Group applies the time elapsed method to measure progress. The Group negotiates directly with the suppliers all contracts for services provided to tenants. These contracts are concluded between the Group subsidiaries which own the properties and the direct supplier. As the Group sometimes uses the same providers for services across most of its portfolio, it can negotiate better prices through the economies of scale. The Group is considered principal in these transactions, in terms of the IFRS 15 requirements. The Group negotiates and pays all expenses incurred by the tenants and then re-invoices these costs to them as de\ufb01ned in the contractual clauses included in the lease agreements. A \ufb02at fee is charged monthly during the year. This fee is estimated based on the previous year\u2019s actual costs, with an annual service charge reconciliation performed based on current year\u2019s actual costs incurred by the Group. For contracts terminated during the year, the Group estimates the service charge to be collected based on the current budget and last year\u2019s actual costs. 27. NET RENTAL AND RELATED INCOME in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gross rental income 422,051 369,395 Service charge income 199,812 167,324 Gross rental and service charge income 621,863 536,719 Property management fees, tax, insurance and utilities (138,651) (102,605) Property maintenance cost (80,077) (70,752) Net expected credit (losses)/gains (660) 1,294 Property operating expenses (219,388) (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) 2,090 (17,765) TOTAL NET RENTAL AND RELATED INCOME 404,565 346,891 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22485": {
"value": "4.22 Property operating and administrative expenses Property operating expenses and administrative expenses are recognised on an accrual basis. 28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Sta\ufb00 costs The sta\ufb00 costs of the period have been revised and adjusted for in\ufb02ation, increases in minimum and average wages in CEE, in order for the Company to remain competitive in the market. Moreover, for better managing the business, the Company strengthened its internal Group\u2019s organisational structure, in the area of environmental, social and corporate governance (ESG) function and the newly created procurement function. As a result of the relocation to Netherlands, the Company terminated its labour relationship with its employees in the Isle of Man. Starting the last quarter of 2021, the Group embarked on a partial internalisation of property management and selected accounting activities in countries such as Poland, Lithuania, Czech Republic and Hungary, leading to a net increase in the sta\ufb00 costs for the period of \u20ac320 thousand. These expenses overcompensated for the fees with third parties included in the Net Operating Income. The full internalisation of property management activities and accounting in the above-mentioned countries is planned to be completed by mid- 2024, with envisaged improvement of the overall Group performance. Advisory services In the year ended 31 December 2022, the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. Relocation costs During 2022, the relocation of the parent Company from the Isle of Man to Netherlands via Luxembourg as steppingstone was approved by shareholders, with the majority of the implementation already in place. The relocation costs for the period amounted to \u20ac1.6 million (included in the Advisory services). Out of the above administrative expenses, fees related to EY, as the Group\u2019s current auditors and PwC, as the Group\u2019s previous auditor, are summarised below: 31 Dec 2022 in \u20ac thousand Ernst & Young Accountants LLP Other EY network Non-EY network Audit of \ufb01nancial statements (300) (1,143) (96) Other assurance procedures - (177) (24) TOTAL (300) (1,320) (120) in \u20ac thousand 31 Dec 2021 Audit fees (1,138) Other assurance services (180) TOTAL (1,318) 29. EXPENSES WITH LITIGATION CLAIM in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gain from reversal of/ (expenses) with litigation claim 21,304 (37,304) In October 2017, one of the Group's subsidiaries entered into an agreement in relation to the conditional acquisition of an operating shopping centre and a related development, Serenada and Krokus Shopping Centres in Poland. On 1 January 2019, upon the lapse of the respective transaction's long stop date, the subsidiary noti\ufb01ed the counterparty that it had exercised its right to terminate the transaction as the long stop date had passed and certain conditions precedent had not been met. The counterparty consequently initiated arbitration proceedings against the Group, claiming a contractual penalty in the amount of \u20ac30 million. On 31 January 2022, the Group was informed by the Arbitral Tribunal that the arbitrators ordered that the Group is liable to pay the contractual penalty of \u20ac30 million plus accumulated interest and arbitration expenses. A litigation provision expense was previously recognised as a result in the 2021 \ufb01nancial statements for the amount of \u20ac37,304 thousand. Following negotiations between the Company and the counterparty to the initial transaction, the parties agreed on 23 November 2022 on an amicable settlement. Pursuant to the settlement, the Group paid to the counterparty an amount of \u20ac16 million and the parties have reciprocally waived, de\ufb01nitely and irrevocably, all and any present and potential rights and claims arising out of or in connection with the initial purchase transaction and Arbitral Tribunal award. As a result, a gain from the reversal of the di\ufb00erence between the initially provided amount and the settled amount of \u20ac21,304 thousand was recognised in the 2022 \ufb01nancial statements. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22486": {
"value": "4.22 Property operating and administrative expenses Property operating expenses and administrative expenses are recognised on an accrual basis. 28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Sta\ufb00 costs The sta\ufb00 costs of the period have been revised and adjusted for in\ufb02ation, increases in minimum and average wages in CEE, in order for the Company to remain competitive in the market. Moreover, for better managing the business, the Company strengthened its internal Group\u2019s organisational structure, in the area of environmental, social and corporate governance (ESG) function and the newly created procurement function. As a result of the relocation to Netherlands, the Company terminated its labour relationship with its employees in the Isle of Man. Starting the last quarter of 2021, the Group embarked on a partial internalisation of property management and selected accounting activities in countries such as Poland, Lithuania, Czech Republic and Hungary, leading to a net increase in the sta\ufb00 costs for the period of \u20ac320 thousand. These expenses overcompensated for the fees with third parties included in the Net Operating Income. The full internalisation of property management activities and accounting in the above-mentioned countries is planned to be completed by mid- 2024, with envisaged improvement of the overall Group performance. Advisory services In the year ended 31 December 2022, the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. Relocation costs During 2022, the relocation of the parent Company from the Isle of Man to Netherlands via Luxembourg as steppingstone was approved by shareholders, with the majority of the implementation already in place. The relocation costs for the period amounted to \u20ac1.6 million (included in the Advisory services). Out of the above administrative expenses, fees related to EY, as the Group\u2019s current auditors and PwC, as the Group\u2019s previous auditor, are summarised below: 31 Dec 2022 in \u20ac thousand Ernst & Young Accountants LLP Other EY network Non-EY network Audit of \ufb01nancial statements (300) (1,143) (96) Other assurance procedures - (177) (24) TOTAL (300) (1,320) (120) in \u20ac thousand 31 Dec 2021 Audit fees (1,138) Other assurance services (180) TOTAL (1,318) 29. EXPENSES WITH LITIGATION CLAIM in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gain from reversal of/ (expenses) with litigation claim 21,304 (37,304) In October 2017, one of the Group's subsidiaries entered into an agreement in relation to the conditional acquisition of an operating shopping centre and a related development, Serenada and Krokus Shopping Centres in Poland. On 1 January 2019, upon the lapse of the respective transaction's long stop date, the subsidiary noti\ufb01ed the counterparty that it had exercised its right to terminate the transaction as the long stop date had passed and certain conditions precedent had not been met. The counterparty consequently initiated arbitration proceedings against the Group, claiming a contractual penalty in the amount of \u20ac30 million. On 31 January 2022, the Group was informed by the Arbitral Tribunal that the arbitrators ordered that the Group is liable to pay the contractual penalty of \u20ac30 million plus accumulated interest and arbitration expenses. A litigation provision expense was previously recognised as a result in the 2021 \ufb01nancial statements for the amount of \u20ac37,304 thousand. Following negotiations between the Company and the counterparty to the initial transaction, the parties agreed on 23 November 2022 on an amicable settlement. Pursuant to the settlement, the Group paid to the counterparty an amount of \u20ac16 million and the parties have reciprocally waived, de\ufb01nitely and irrevocably, all and any present and potential rights and claims arising out of or in connection with the initial purchase transaction and Arbitral Tribunal award. As a result, a gain from the reversal of the di\ufb00erence between the initially provided amount and the settled amount of \u20ac21,304 thousand was recognised in the 2022 \ufb01nancial statements. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22488": {
"value": "4.22 Property operating and administrative expenses Property operating expenses and administrative expenses are recognised on an accrual basis. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22492": {
"value": "4.23 Earnings distribution A distribution is recorded as a liability and deducted from equity in the period in which it is declared and approved. Any distribution declared after the reporting period and before the \ufb01nancial statements are authorised for issue is disclosed in Note 37. 17. SHARE CAPITAL AND SHARE PREMIUM The Group has granted dividends as summarized below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Earnings distribution (241,223) (210,222) As of 8 March 2022, the Board has declared a dividend of 16.78 euro cents per share for the year ended 31 December 2021, corresponding to 100% of the distributable earnings per share for this period. The distribution amounting to \u20ac102,189 thousand was paid in cash during March 2022. As of 20 September 2022, the Board has declared a dividend of 22.83 euro cents per share for the six months ended 30 June 2022, corresponding to 100% of the distributable earnings per share for this period. The distribution amounting to \u20ac139,034 thousand was paid in cash during October 2022. 37. SEGMENT REPORTING RECONCILIATION OF PROFIT FOR THE YEAR TO DISTRIBUTABLE EARNINGS \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Fair value adjustment investment property for non-controlling interest (1) (120) Deferred tax income/(expense) for non-controlling interest 8 (51) Antecedent earnings (344) - Distributable earnings 317,055 209,613 Interim distributable earnings (139,058) (107,409) Final distributable earnings (177,997) (102,204) Distributable earnings per share (euro cents) 52.15 34.42 Interim distributable earnings per share (euro cents) 22.83 17.64 Final distributable earnings per share (euro cents) 29.32 16.78 Distribution declared 308,155 209,613 Interim distribution 139,058 107,409 Final distribution 169,097 102,204 Distribution declared per share (euro cents) 50.68 34.42 Interim distribution per share (euro cents) 22.83 17.64 Final distribution per share (euro cents) 27.85 16.78 Earnings not distributed 8,900 - Earnings not distributed per share (euro cents) 1.47 - Number of shares entitled to interim distribution 608,994,907 608,994,907 Number of shares entitled to \ufb01nal distribution 607,000,000 608,994,907 Distributable earnings per share is prepared on a basis that is consistent with SA REIT funds from operations (SA REIT FFO) as set out in the SA REIT Association\u2019s Best Practice Recommendations Second Edition. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22494": {
"value": "4.23 Earnings distribution A distribution is recorded as a liability and deducted from equity in the period in which it is declared and approved. Any distribution declared after the reporting period and before the \ufb01nancial statements are authorised for issue is disclosed in Note 37. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22505": {
"value": "4.24 Taxation Taxation on the pro\ufb01t or loss for the year comprises current and deferred tax. Current income tax and liabilities are measured at the amount expected to be recovered from, or paid to, taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date. Current income tax relating to items recognised directly in equity is recognised directly in equity and not in the Statement of comprehensive income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax is determined using the liability method and is based on temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial reporting purposes and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the date of the Statement of \ufb01nancial position, which are expected to apply to the period when the temporary di\ufb00erences will reverse or the tax loss carried forward will be utilised. The following temporary di\ufb00erences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that a\ufb00ect neither accounting nor taxable pro\ufb01t, and di\ufb00erences relating to investments in subsidiaries that are unlikely to reverse in the foreseeable future. A deferred tax asset is recognised based on the assumption that it is probable that future taxable pro\ufb01ts will be available against which it can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax bene\ufb01t will be realised. The current tax expense incurred by the Group re\ufb02ects tax accrued in the subsidiaries of the Group located in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Malta, Mauritius, Poland, Romania, Serbia, Slovakia and the Netherlands. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22506": {
"value": "4.24 Taxation Taxation on the pro\ufb01t or loss for the year comprises current and deferred tax. Current income tax and liabilities are measured at the amount expected to be recovered from, or paid to, taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date. Current income tax relating to items recognised directly in equity is recognised directly in equity and not in the Statement of comprehensive income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax is determined using the liability method and is based on temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial reporting purposes and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the date of the Statement of \ufb01nancial position, which are expected to apply to the period when the temporary di\ufb00erences will reverse or the tax loss carried forward will be utilised. The following temporary di\ufb00erences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that a\ufb00ect neither accounting nor taxable pro\ufb01t, and di\ufb00erences relating to investments in subsidiaries that are unlikely to reverse in the foreseeable future. A deferred tax asset is recognised based on the assumption that it is probable that future taxable pro\ufb01ts will be available against which it can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax bene\ufb01t will be realised. 25. CORPORATE TAX CHARGE AND DEFERRED TAX Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in pro\ufb01t or loss, except to the extent they relate to business combination or items recognised directly to equity. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets are realised or the liabilities are settled, based on tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised to the extent it is probable that future taxable pro\ufb01t will be available against which temporary di\ufb00erences can be utilised. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current tax expense 23,068 10,274 Deferred tax expense 43,266 16,643 INCOME TAX EXPENSE 66,334 26,917 Deferred tax brought forward 322,697 306,646 Other adjustments (deferred tax liability released further to sale of one Serbian entity in 2022 and two Serbian entities in 2021 included in the disposal proceeds)-no P&L e\ufb00ect 23 (592) Deferred tax balance transferred to Held for sale assets-no P&L e\ufb00ect (1,111) - Deferred tax expense 43,266 16,643 Net deferred tax liability carried forward, out of which: 364,875 322,697 Deferred tax asset (*) (54,679) (48,669) Deferred tax liability (*) 419,554 371,366 (*) Deferred tax assets and liabilities presented in this table, in net amount of \u20ac40,978 thousand (2021: \u20ac36,900 thousand), have been o\ufb00set at the level of the Group entities. Net deferred tax liability results from the following types of di\ufb00erences: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Fiscal losses 249,282 284,304 Other deductible temporary di\ufb00erences (*) 241,514 149,562 Deferred tax asset 95,657 85,568 Temporary di\ufb00erences between accounting and \ufb01scal value of investment property (2,983,715) (2,683,068) Other taxable temporary di\ufb00erences (*) (22,649) (885) Deferred tax liability (460,532) (408,265) Net deferred tax liability (364,875) (322,697) (*) Other deductible and taxable temporary di\ufb00erences include mainly prepayments and accruals, deferred income and allowances for doubtful debts. The deferred tax balance as at 31 December 2022 is the net e\ufb00ect of deferred tax assets resulted mainly from \ufb01scal losses and deferred tax liabilities resulted from di\ufb00erences between the \ufb01scal base and the accounting base of assets and liabilities, mainly investment property. Deferred tax liabilities are not expected to be settled within the following \ufb01ve years from the reporting date. Deferred tax liabilities, which are a non-cash item, result directly from the fair value revaluation of the investment property and other local tax adjustments (e.g., local tax depreciation charges, non-capitalisation of certain items, foreign exchange impact given that tax value is recorded in local currency, etc.) which diminishes the tax value of the investment property. in \u20ac thousand Consolidated Statement of \ufb01nancial position Consolidated Statement of comprehensive income Deferred tax liability (net) 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 Valuation of investment property at fair value (456,232) (408,096) (49,221) (33,649) Recognised unused tax losses 49,934 57,271 (7,338) 16,074 Deductible/Taxable temporary di\ufb00erences 41,423 28,128 13,293 932 TOTAL (364,875) (322,697) (43,266) (16,643) The Group is liable for taxation on taxable pro\ufb01ts in the following jurisdictions at the rates below: Corporate income tax rates 31 Dec 2022 31 Dec 2021 Isle of Man 0% 0% Netherlands 25.8% 25.8% Mauritius 15% 15% Romania 16% 16% Poland 19% 19% Slovakia 21% 21% Serbia 15% 15% Czech Republic 19% 19% Croatia 18% 18% Bulgaria 10% 10% Hungary 9% 9% Lithuania 15% 15% Malta 35% 35% A reconciliation between the current year income tax charge (current and deferred tax) and the Group consolidated pro\ufb01t/(loss) before tax for the years 2022 and 2021 is presented below: Pro\ufb01t Before Tax Reconciliation in \u20ac thousand 31 Dec 2022 31 Dec 2021 Consolidated Pro\ufb01t Before Tax 501,607 261,986 Weighted tax rate on consolidated Pro\ufb01t Before Tax 14.91% 16.53% Group income tax charge based on Group weighted tax rate (74,771) (43,346) E\ufb00ect in corporate income tax resulting from the following items: Group share in earnings from companies accounted for under equity method 489 304 E\ufb00ect of gains/(losses) at Holding level without tax impact (including release of provision for litigation claim) 6,583 (7,603) Tax expense in Holdings (inter-companies) not included in Pro\ufb01t before tax of the Group for consolidation (3,862) (2,804) Tax value adjustments in local jurisdictions related to previous years (including foreign exchange impact on non-\ufb01nancial tax base and statutory adjustments) 12,114 4,692 Refund of minimum tax for Polish entities related to previous years 342 1,330 Deferred tax assets released due to \ufb01scal losses expired and/or not utilised in the current year or expected to expire without being utilised in future periods (release of DTA not related to current year) (2,821) (1,832) Release of deferred tax asset recognised for prior year tax losses (4,550) 19,182 Deferred tax asset recognised for additional \ufb01scal losses incurred in the current year and derived from tax deductions in relation to statutory expenses eliminated for IFRS - 1,845 Others 142 1,315 TOTAL Group tax expense (66,334) (26,917) E\ufb00ective tax rate (Group consolidated Pro\ufb01t Before Tax) 13 % 10% The Group accounts for deferred taxes assuming the theoretical future disposals of properties in the form of asset deals, triggering the full corporate income tax rate in each jurisdiction in which the Group owns property. In practice, if the Group would be in the position to dispose of certain assets, these disposals will most probably be conducted via share deals, as assets are held in separate SPVs, signi\ufb01cantly reducing the e\ufb00ective tax rate on potential capital gains. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22507": {
"value": "4.24 Taxation Taxation on the pro\ufb01t or loss for the year comprises current and deferred tax. Current income tax and liabilities are measured at the amount expected to be recovered from, or paid to, taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date. Current income tax relating to items recognised directly in equity is recognised directly in equity and not in the Statement of comprehensive income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax is determined using the liability method and is based on temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial reporting purposes and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the date of the Statement of \ufb01nancial position, which are expected to apply to the period when the temporary di\ufb00erences will reverse or the tax loss carried forward will be utilised. The following temporary di\ufb00erences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that a\ufb00ect neither accounting nor taxable pro\ufb01t, and di\ufb00erences relating to investments in subsidiaries that are unlikely to reverse in the foreseeable future. A deferred tax asset is recognised based on the assumption that it is probable that future taxable pro\ufb01ts will be available against which it can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax bene\ufb01t will be realised. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22508": {
"value": "4.24 Taxation Output Value Added Tax (\u201cVAT\u201d) related to sales is payable to tax authorities on either the collection of receivables from customers or the delivery of services to customers depending on which occurs \ufb01rst. Input VAT is generally recoverable against output VAT upon receipt of the invoice. The tax authorities in individual countries permit the settlement of VAT on a net basis. VAT relating to sales and purchases is recognised in the Statement of \ufb01nancial position on a net basis and is disclosed separately as an asset or liability, as the case may be. Where provision has been made for impairment of receivables, the loss is recorded for the gross amount of the debt, including VAT. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22539": {
"value": "4.25 Segment reporting Management decisions and consequent allocation of resources are based on individual property level reports, which are analysed in detail. Management has a hands-on approach and is involved in day-to-day activities. Regular management meetings are held at least monthly for each property, where the senior management of the Group and each property manager analyse the \ufb01nancial results, decide whether any repairs or improvements are necessary, review rent collection issues and allocate resources to resolve any delays with tenants and review maintenance plans, vacancies and the status of any contract negotiations, as well as other operational matters. The results of these discussions ensure management decisions are speci\ufb01c to each of the properties. The Segmental Reporting in Note 37 summarises the results recorded by the properties held by the Group. The properties can be classi\ufb01ed as retail, o\ufb03ce, residential or industrial properties, depending on industry practice. The Group\u2019s Chief Operating Decision Makers (\u201cCODM\u201d) are the executive directors, and they take decisions based on detailed reports. These are prepared regularly and are presented to the Board of Directors, which approves the results and gives guidance on the subsequent strategy to be undertaken. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated there on a reasonable basis. Unallocated items comprise mainly investments (other than investment property) and related revenue, corporate assets and head o\ufb03ce expenses. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill. Financial information in respect of investment property is provided to the Board of Directors: net rentals (including rental income, service charge income and property operating expenses) and valuation gains and losses. Individual properties are aggregated into segments with similar economic characteristics. Consequently, the Group is considered to have \ufb01ve reportable operating segments: \u2022 Retail segment: acquires, develops and leases retail properties in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia and Slovakia; \u2022 O\ufb03ce segment: acquires and leases o\ufb03ce properties in Bulgaria and Slovakia; \u2022 Residential segment: develops and sales on completion, residential properties in Romania; \u2022 Industrial segment: acquires and leases industrial facilities in Romania, and \u2022 Corporate segment: head o\ufb03ce, administrative o\ufb03ces, Group and \ufb01nancing expenses. Group entities have been aggregated into \ufb01ve reportable segments (retail, o\ufb03ce, residential, industrial and corporate) as each of these segments have speci\ufb01c revenue streams, di\ufb00erent operational reporting cycles across the Group\u2019s portfolio, separate operational teams including technical, leasing, property and facility management. The Group also reports by geographic segments: Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia. There is also a Corporate segment which includes entities located in Malta and the Netherlands. In addition, the Group\u2019s CODM closely follow changes in distributable earnings to its shareholders as a measure of pro\ufb01tability and as a result of successful implementation of the Group\u2019s strategy. Distributable earnings per share is calculated in terms of the SA REIT Association\u2019s Best Practice Recommendations Second Edition. 37. SEGMENT REPORTING Reporting segments are retail, o\ufb03ce, residential, industrial and corporate, and the Group primarily manages operations in accordance with this classi\ufb01cation. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated on a reasonable basis. The measure of segment performance is Pro\ufb01t before net \ufb01nance costs and other items, as disclosed in the following tables. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets. Segment assets represent investment property. Segment liabilities represent loans and borrowings, as these are the only liabilities reported on a segmental basis. Segment results 31 Dec 2022 in \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 414,712 5,375 1,964 - - 422,051 Service charge income 197,396 2,060 356 - - 199,812 Property operating expenses (216,326) (2,460) (602) - - (219,388) Partial forgiveness of receivables (Covid-19 forgiveness) 2,097 (7) - - - 2,090 Net rental and related income 397,879 4,968 1,718 - - 404,565 Administrative expenses (14,857) (363) (77) (212) (14,872) (30,381) Reversal of/(expenses) with litigation claim - - - - 21,304 21,304 EBIT* 383,022 4,605 1,641 (212) 6,432 395,488 Fair value adjustments of investment property 142,975 (1,421) 147 - - 141,701 Foreign exchange (loss)/gain 1,722 (1) 3 27 (166) 1,585 Gain on disposal of assets held for sale - - - - 1,121 1,121 Pro\ufb01t before net \ufb01nance costs and other items 527,719 3,183 1,791 (185) 7,387 539,895 Finance income 3,511 3,511 Finance costs (56,802) (56,802) Bank charges, commissions and fees (4,298) (4,298) Fair value adjustments of derivatives 37,946 37,946 Losses on extinguishment of \ufb01nancial instruments (21,925) (21,925) Share of pro\ufb01t of Joint Ventures 3,280 3,280 Pro\ufb01t/(Loss) before tax (30,901) 501,607 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses) Segment results 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 362,321 5,310 1,764 - - 369,395 Service charge income 165,129 1,853 342 - - 167,324 Property operating expenses (169,649) (1,963) (451) - - (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) (17,753) (12) - - - (17,765) Net rental and related income** 340,048 5,188 1,655 - - 346,891 Administrative expenses (12,939) (328) (60) (153) (11,185) (24,665) Expenses with litigation claim - - - - (37,304) (37,304) EBIT* 327,109 4,860 1,595 (153) (48,489) 284,922 Fair value adjustments of investment property 36,592 (3,299) 1,321 36 - 34,650 Foreign exchange (loss)/gain (1,008) (12) (26) (3) 114 (935) Gain on disposal of assets held for sale - - - - 1,995 1,995 Pro\ufb01t/(Loss) before net \ufb01nance costs and other items 362,693 1,549 2,890 (120) (46,380) 320,632 Finance income 1,423 1,423 Finance costs (62,649) (62,649) Bank charges, commissions and fees (4,496) (4,496) Fair value adjustments of derivatives 5,174 5,174 Share of pro\ufb01t of Joint Ventures 1,902 1,902 Pro\ufb01t/(Loss) before tax (105,026) 261,986 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses). **Out of the total Net rental and related income associated to the Retail segment, \u20ac2.5 million relates to the two Serbian properties disposed of on 12 July 2021. Segment assets and liabilities 31 Dec 2022 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT ASSETS Non-current assets 6,613,203 71,406 18,540 18 61,088 6,764,255 Investment property 6,507,805 69,800 18,532 - - 6,596,137 \u2014 Investment property in use 6,243,497 69,800 18,496 6,331,793 \u2014 Investment property under development 264,308 - 36 - - 264,344 Goodwill 70,922 - - - 5,882 76,804 Deferred tax assets 26,779 1,573 - - 26,327 54,679 Other long-term assets 5,183 33 8 18 5,808 11,050 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss 2,514 - - - 23,071 25,585 Current assets 217,333 3,195 1,668 25,063 120,041 367,300 Trade and other receivables 75,583 947 143 4,000 4,823 85,496 Inventory property - - - 20,694 - 20,694 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss through pro\ufb01t or loss ST 3,075 - - - 7,404 10,479 Cash and cash equivalents 138,675 2,248 1,525 369 107,814 250,631 Assets held for sale 18,055 630 - - - 18,685 TOTAL ASSETS 6,848,591 75,231 20,208 25,081 181,129 7,150,240 Segment assets and liabilities 31 Dec 2022 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT LIABILITIES Non-current liabilities 760,126 2,230 1,927 3,427 2,284,663 3,052,373 Loans from third party - - - - 33,333 33,333 Bank loans 274,122 - - - 272,622 546,744 Bonds - - - - 1,978,708 1,978,708 Deferred tax liabilities 416,529 1,438 1,587 - - 419,554 Lease liabilities 36,368 - - - - 36,368 Other long-term liabilities 33,107 792 340 3,427 - 37,666 Current liabilities 143,981 1,464 462 1,118 51,003 198,028 Trade and other payables 132,381 1,464 462 1,118 19,577 155,002 Loans from third party - - - - 16,774 16,774 Bank loans 10,768 - - - 389 11,157 Bonds - - - - 14,263 14,263 Lease liabilities 832 - - - - 832 Liabilities associated with assets held for sale 1,118 - - - - 1,118 TOTAL LIABILITIES 905,225 3,694 2,389 4,545 2,335,666 3,251,519 Segment assets and liabilities 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT ASSETS Non-current assets 5,889,465 72,168 17,985 - 47,653 6,027,271 Investment property 5,752,991 70,700 17,985 - - 5,841,676 \u2014 Investment property in use 5,582,091 70,700 17,985 - - 5,670,776 \u2014 Investment property under development 170,900 - - - - 170,900 Goodwill 70,922 - - - 5,882 76,804 Deferred tax assets 16,335 1,457 - - 30,877 48,669 Investments in joint ventures 23,659 - - - - 23,659 Long-term loans granted to joint ventures 22,466 - - - - 22,466 Other long-term assets 3,092 11 - - 6,352 9,455 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss - - - - 4,542 4,542 Current assets 228,760 2,555 1,600 10,868 325,334 569,117 Trade and other receivables 56,858 782 101 1,109 2,122 60,972 Inventory property - - - 9,522 - 9,522 Cash and cash equivalents 171,902 1,773 1,499 237 323,212 498,623 Assets held for sale 1,138 614 - - - 1,752 TOTAL ASSETS 6,119,363 75,337 19,585 10,868 372,987 6,598,140 Segment assets and liabilities 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT LIABILITIES Non-current liabilities 663,259 1,847 1,748 217 2,049,243 2,716,314 Bank loans 225,247 - - - 71,908 297,155 Bonds - - - - 1,977,191 1,977,191 Deferred tax liabilities 368,832 1,097 1,437 - - 371,366 Lease liabilities 32,779 - - - - 32,779 Other long-term liabilities 33,332 750 311 217 2 34,612 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 3,069 - - - 142 3,211 Current liabilities 100,313 859 253 32 60,127 161,584 Trade and other payables 92,050 859 253 32 11,775 104,969 Provisions for litigations - - - - 37,304 37,304 Bank loans 7,431 - - - - 7,431 Bonds - - - - 11,048 11,048 Lease liabilities 832 - - - - 832 TOTAL LIABILITIES 763,572 2,706 2,001 249 2,109,370 2,877,898 The Group\u2019s geographical breakdowns per country are detailed below: Country results 31 Dec 2022 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 158,182 305,661 2,441,758 Poland 80,371 59,623 1,802,833 Slovakia** 35,064 32,496 523,283 Hungary 35,101 25,086 585,900 Bulgaria 40,525 49,465 505,543 Croatia 20,978 28,733 272,490 Serbia 12,138 16,530 137,100 Lithuania 10,762 17,388 152,030 Czech Republic 11,444 11,909 175,200 Corporate* - (45,284) - Total 404,565 501,607 6,596,137 *The Corporate segment represents head o\ufb03ce and administrative o\ufb03ces **Investment property excludes held for sale portfolio. Country results 31 Dec 2021 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 140,186 173,326 2,081,853 Poland 62,728 40,071 1,426,810 Slovakia 32,075 35,490 531,485 Hungary 30,823 27,663 590,200 Bulgaria 30,220 35,991 493,765 Croatia 19,238 20,615 264,190 Serbia^ 12,723 13,824 134,778 Lithuania 9,740 10,483 144,095 Czech Republic 9,158 9,823 174,500 Corporate* - (105,300) - Total 346,891 261,986 5,841,676 *The Corporate segment represents head o\ufb03ce, administrative o\ufb03ces, and listed securities entity disposed of in May 2021 ** Investment property excludes held for sale portfolio ^ Out of the total Net rental and related income for 2021, \u20ac2.5 million relates to the two Serbian properties (disposed of on 12 July 2021). RECONCILIATION OF PROFIT FOR THE YEAR TO DISTRIBUTABLE EARNINGS \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Pro\ufb01t per IFRS Statement of comprehensive income attributable to equity holders 435,167 235,004 Accounting speci\ufb01c adjustments (118,112) (25,391) Fair value adjustments of investment property for controlled subsidiaries (141,701) (34,650) Depreciation and amortisation expense (in relation to property, plant and equipment of an administrative nature) 1,469 643 Fair value adjustments of derivatives (37,946) (5,174) Losses on extinguishment of \ufb01nancial instruments 21,925 - Amortisation of \ufb01nancial assets (1,940) (1,189) Deferred tax expense for controlled subsidiaries 43,266 16,643 Gain on disposal of assets held for sale (1,121) (1,995) Adjustments related to joint ventures: (1,727) 502 Fair value adjustment investment property for joint ventures (1,632) 731 Fair value adjustments of derivatives for joint ventures (407) (289) Depreciation in relation to property, plant and equipment of an administrative nature for joint venture (32) - Deferred tax expense for joint ventures 344 60 Adjustments related to non-controlling interest: 7 (171) RECONCILIATION OF PROFIT FOR THE YEAR TO DISTRIBUTABLE EARNINGS \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Fair value adjustment investment property for non-controlling interest (1) (120) Deferred tax income/(expense) for non-controlling interest 8 (51) Antecedent earnings (344) - Distributable earnings 317,055 209,613 Interim distributable earnings (139,058) (107,409) Final distributable earnings (177,997) (102,204) Distributable earnings per share (euro cents) 52.15 34.42 Interim distributable earnings per share (euro cents) 22.83 17.64 Final distributable earnings per share (euro cents) 29.32 16.78 Distribution declared 308,155 209,613 Interim distribution 139,058 107,409 Final distribution 169,097 102,204 Distribution declared per share (euro cents) 50.68 34.42 Interim distribution per share (euro cents) 22.83 17.64 Final distribution per share (euro cents) 27.85 16.78 Earnings not distributed 8,900 - Earnings not distributed per share (euro cents) 1.47 - Number of shares entitled to interim distribution 608,994,907 608,994,907 Number of shares entitled to \ufb01nal distribution 607,000,000 608,994,907 Distributable earnings per share is prepared on a basis that is consistent with SA REIT funds from operations (SA REIT FFO) as set out in the SA REIT Association\u2019s Best Practice Recommendations Second Edition. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22540": {
"value": "4.25 Segment reporting Management decisions and consequent allocation of resources are based on individual property level reports, which are analysed in detail. Management has a hands-on approach and is involved in day-to-day activities. Regular management meetings are held at least monthly for each property, where the senior management of the Group and each property manager analyse the \ufb01nancial results, decide whether any repairs or improvements are necessary, review rent collection issues and allocate resources to resolve any delays with tenants and review maintenance plans, vacancies and the status of any contract negotiations, as well as other operational matters. The results of these discussions ensure management decisions are speci\ufb01c to each of the properties. The Segmental Reporting in Note 37 summarises the results recorded by the properties held by the Group. The properties can be classi\ufb01ed as retail, o\ufb03ce, residential or industrial properties, depending on industry practice. The Group\u2019s Chief Operating Decision Makers (\u201cCODM\u201d) are the executive directors, and they take decisions based on detailed reports. These are prepared regularly and are presented to the Board of Directors, which approves the results and gives guidance on the subsequent strategy to be undertaken. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated there on a reasonable basis. Unallocated items comprise mainly investments (other than investment property) and related revenue, corporate assets and head o\ufb03ce expenses. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill. Financial information in respect of investment property is provided to the Board of Directors: net rentals (including rental income, service charge income and property operating expenses) and valuation gains and losses. Individual properties are aggregated into segments with similar economic characteristics. Consequently, the Group is considered to have \ufb01ve reportable operating segments: \u2022 Retail segment: acquires, develops and leases retail properties in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia and Slovakia; \u2022 O\ufb03ce segment: acquires and leases o\ufb03ce properties in Bulgaria and Slovakia; \u2022 Residential segment: develops and sales on completion, residential properties in Romania; \u2022 Industrial segment: acquires and leases industrial facilities in Romania, and \u2022 Corporate segment: head o\ufb03ce, administrative o\ufb03ces, Group and \ufb01nancing expenses. Group entities have been aggregated into \ufb01ve reportable segments (retail, o\ufb03ce, residential, industrial and corporate) as each of these segments have speci\ufb01c revenue streams, di\ufb00erent operational reporting cycles across the Group\u2019s portfolio, separate operational teams including technical, leasing, property and facility management. The Group also reports by geographic segments: Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia. There is also a Corporate segment which includes entities located in Malta and the Netherlands. In addition, the Group\u2019s CODM closely follow changes in distributable earnings to its shareholders as a measure of pro\ufb01tability and as a result of successful implementation of the Group\u2019s strategy. Distributable earnings per share is calculated in terms of the SA REIT Association\u2019s Best Practice Recommendations Second Edition. 37. SEGMENT REPORTING Reporting segments are retail, o\ufb03ce, residential, industrial and corporate, and the Group primarily manages operations in accordance with this classi\ufb01cation. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated on a reasonable basis. The measure of segment performance is Pro\ufb01t before net \ufb01nance costs and other items, as disclosed in the following tables. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets. Segment assets represent investment property. Segment liabilities represent loans and borrowings, as these are the only liabilities reported on a segmental basis. Segment results 31 Dec 2022 in \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 414,712 5,375 1,964 - - 422,051 Service charge income 197,396 2,060 356 - - 199,812 Property operating expenses (216,326) (2,460) (602) - - (219,388) Partial forgiveness of receivables (Covid-19 forgiveness) 2,097 (7) - - - 2,090 Net rental and related income 397,879 4,968 1,718 - - 404,565 Administrative expenses (14,857) (363) (77) (212) (14,872) (30,381) Reversal of/(expenses) with litigation claim - - - - 21,304 21,304 EBIT* 383,022 4,605 1,641 (212) 6,432 395,488 Fair value adjustments of investment property 142,975 (1,421) 147 - - 141,701 Foreign exchange (loss)/gain 1,722 (1) 3 27 (166) 1,585 Gain on disposal of assets held for sale - - - - 1,121 1,121 Pro\ufb01t before net \ufb01nance costs and other items 527,719 3,183 1,791 (185) 7,387 539,895 Finance income 3,511 3,511 Finance costs (56,802) (56,802) Bank charges, commissions and fees (4,298) (4,298) Fair value adjustments of derivatives 37,946 37,946 Losses on extinguishment of \ufb01nancial instruments (21,925) (21,925) Share of pro\ufb01t of Joint Ventures 3,280 3,280 Pro\ufb01t/(Loss) before tax (30,901) 501,607 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses) Segment results 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 362,321 5,310 1,764 - - 369,395 Service charge income 165,129 1,853 342 - - 167,324 Property operating expenses (169,649) (1,963) (451) - - (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) (17,753) (12) - - - (17,765) Net rental and related income** 340,048 5,188 1,655 - - 346,891 Administrative expenses (12,939) (328) (60) (153) (11,185) (24,665) Expenses with litigation claim - - - - (37,304) (37,304) EBIT* 327,109 4,860 1,595 (153) (48,489) 284,922 Fair value adjustments of investment property 36,592 (3,299) 1,321 36 - 34,650 Foreign exchange (loss)/gain (1,008) (12) (26) (3) 114 (935) Gain on disposal of assets held for sale - - - - 1,995 1,995 Pro\ufb01t/(Loss) before net \ufb01nance costs and other items 362,693 1,549 2,890 (120) (46,380) 320,632 Finance income 1,423 1,423 Finance costs (62,649) (62,649) Bank charges, commissions and fees (4,496) (4,496) Fair value adjustments of derivatives 5,174 5,174 Share of pro\ufb01t of Joint Ventures 1,902 1,902 Pro\ufb01t/(Loss) before tax (105,026) 261,986 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses). **Out of the total Net rental and related income associated to the Retail segment, \u20ac2.5 million relates to the two Serbian properties disposed of on 12 July 2021. Segment assets and liabilities 31 Dec 2022 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT ASSETS Non-current assets 6,613,203 71,406 18,540 18 61,088 6,764,255 Investment property 6,507,805 69,800 18,532 - - 6,596,137 \u2014 Investment property in use 6,243,497 69,800 18,496 6,331,793 \u2014 Investment property under development 264,308 - 36 - - 264,344 Goodwill 70,922 - - - 5,882 76,804 Deferred tax assets 26,779 1,573 - - 26,327 54,679 Other long-term assets 5,183 33 8 18 5,808 11,050 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss 2,514 - - - 23,071 25,585 Current assets 217,333 3,195 1,668 25,063 120,041 367,300 Trade and other receivables 75,583 947 143 4,000 4,823 85,496 Inventory property - - - 20,694 - 20,694 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss through pro\ufb01t or loss ST 3,075 - - - 7,404 10,479 Cash and cash equivalents 138,675 2,248 1,525 369 107,814 250,631 Assets held for sale 18,055 630 - - - 18,685 TOTAL ASSETS 6,848,591 75,231 20,208 25,081 181,129 7,150,240 Segment assets and liabilities 31 Dec 2022 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT LIABILITIES Non-current liabilities 760,126 2,230 1,927 3,427 2,284,663 3,052,373 Loans from third party - - - - 33,333 33,333 Bank loans 274,122 - - - 272,622 546,744 Bonds - - - - 1,978,708 1,978,708 Deferred tax liabilities 416,529 1,438 1,587 - - 419,554 Lease liabilities 36,368 - - - - 36,368 Other long-term liabilities 33,107 792 340 3,427 - 37,666 Current liabilities 143,981 1,464 462 1,118 51,003 198,028 Trade and other payables 132,381 1,464 462 1,118 19,577 155,002 Loans from third party - - - - 16,774 16,774 Bank loans 10,768 - - - 389 11,157 Bonds - - - - 14,263 14,263 Lease liabilities 832 - - - - 832 Liabilities associated with assets held for sale 1,118 - - - - 1,118 TOTAL LIABILITIES 905,225 3,694 2,389 4,545 2,335,666 3,251,519 Segment assets and liabilities 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT ASSETS Non-current assets 5,889,465 72,168 17,985 - 47,653 6,027,271 Investment property 5,752,991 70,700 17,985 - - 5,841,676 \u2014 Investment property in use 5,582,091 70,700 17,985 - - 5,670,776 \u2014 Investment property under development 170,900 - - - - 170,900 Goodwill 70,922 - - - 5,882 76,804 Deferred tax assets 16,335 1,457 - - 30,877 48,669 Investments in joint ventures 23,659 - - - - 23,659 Long-term loans granted to joint ventures 22,466 - - - - 22,466 Other long-term assets 3,092 11 - - 6,352 9,455 Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss - - - - 4,542 4,542 Current assets 228,760 2,555 1,600 10,868 325,334 569,117 Trade and other receivables 56,858 782 101 1,109 2,122 60,972 Inventory property - - - 9,522 - 9,522 Cash and cash equivalents 171,902 1,773 1,499 237 323,212 498,623 Assets held for sale 1,138 614 - - - 1,752 TOTAL ASSETS 6,119,363 75,337 19,585 10,868 372,987 6,598,140 Segment assets and liabilities 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total SEGMENT LIABILITIES Non-current liabilities 663,259 1,847 1,748 217 2,049,243 2,716,314 Bank loans 225,247 - - - 71,908 297,155 Bonds - - - - 1,977,191 1,977,191 Deferred tax liabilities 368,832 1,097 1,437 - - 371,366 Lease liabilities 32,779 - - - - 32,779 Other long-term liabilities 33,332 750 311 217 2 34,612 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 3,069 - - - 142 3,211 Current liabilities 100,313 859 253 32 60,127 161,584 Trade and other payables 92,050 859 253 32 11,775 104,969 Provisions for litigations - - - - 37,304 37,304 Bank loans 7,431 - - - - 7,431 Bonds - - - - 11,048 11,048 Lease liabilities 832 - - - - 832 TOTAL LIABILITIES 763,572 2,706 2,001 249 2,109,370 2,877,898 The Group\u2019s geographical breakdowns per country are detailed below: Country results 31 Dec 2022 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 158,182 305,661 2,441,758 Poland 80,371 59,623 1,802,833 Slovakia** 35,064 32,496 523,283 Hungary 35,101 25,086 585,900 Bulgaria 40,525 49,465 505,543 Croatia 20,978 28,733 272,490 Serbia 12,138 16,530 137,100 Lithuania 10,762 17,388 152,030 Czech Republic 11,444 11,909 175,200 Corporate* - (45,284) - Total 404,565 501,607 6,596,137 *The Corporate segment represents head o\ufb03ce and administrative o\ufb03ces **Investment property excludes held for sale portfolio. Country results 31 Dec 2021 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 140,186 173,326 2,081,853 Poland 62,728 40,071 1,426,810 Slovakia 32,075 35,490 531,485 Hungary 30,823 27,663 590,200 Bulgaria 30,220 35,991 493,765 Croatia 19,238 20,615 264,190 Serbia^ 12,723 13,824 134,778 Lithuania 9,740 10,483 144,095 Czech Republic 9,158 9,823 174,500 Corporate* - (105,300) - Total 346,891 261,986 5,841,676 *The Corporate segment represents head o\ufb03ce, administrative o\ufb03ces, and listed securities entity disposed of in May 2021 ** Investment property excludes held for sale portfolio ^ Out of the total Net rental and related income for 2021, \u20ac2.5 million relates to the two Serbian properties (disposed of on 12 July 2021). RECONCILIATION OF PROFIT FOR THE YEAR TO DISTRIBUTABLE EARNINGS \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Pro\ufb01t per IFRS Statement of comprehensive income attributable to equity holders 435,167 235,004 Accounting speci\ufb01c adjustments (118,112) (25,391) Fair value adjustments of investment property for controlled subsidiaries (141,701) (34,650) Depreciation and amortisation expense (in relation to property, plant and equipment of an administrative nature) 1,469 643 Fair value adjustments of derivatives (37,946) (5,174) Losses on extinguishment of \ufb01nancial instruments 21,925 - Amortisation of \ufb01nancial assets (1,940) (1,189) Deferred tax expense for controlled subsidiaries 43,266 16,643 Gain on disposal of assets held for sale (1,121) (1,995) Adjustments related to joint ventures: (1,727) 502 Fair value adjustment investment property for joint ventures (1,632) 731 Fair value adjustments of derivatives for joint ventures (407) (289) Depreciation in relation to property, plant and equipment of an administrative nature for joint venture (32) - Deferred tax expense for joint ventures 344 60 Adjustments related to non-controlling interest: 7 (171) RECONCILIATION OF PROFIT FOR THE YEAR TO DISTRIBUTABLE EARNINGS \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Fair value adjustment investment property for non-controlling interest (1) (120) Deferred tax income/(expense) for non-controlling interest 8 (51) Antecedent earnings (344) - Distributable earnings 317,055 209,613 Interim distributable earnings (139,058) (107,409) Final distributable earnings (177,997) (102,204) Distributable earnings per share (euro cents) 52.15 34.42 Interim distributable earnings per share (euro cents) 22.83 17.64 Final distributable earnings per share (euro cents) 29.32 16.78 Distribution declared 308,155 209,613 Interim distribution 139,058 107,409 Final distribution 169,097 102,204 Distribution declared per share (euro cents) 50.68 34.42 Interim distribution per share (euro cents) 22.83 17.64 Final distribution per share (euro cents) 27.85 16.78 Earnings not distributed 8,900 - Earnings not distributed per share (euro cents) 1.47 - Number of shares entitled to interim distribution 608,994,907 608,994,907 Number of shares entitled to \ufb01nal distribution 607,000,000 608,994,907 Distributable earnings per share is prepared on a basis that is consistent with SA REIT funds from operations (SA REIT FFO) as set out in the SA REIT Association\u2019s Best Practice Recommendations Second Edition. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOperatingSegmentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22542": {
"value": "4.25 Segment reporting Management decisions and consequent allocation of resources are based on individual property level reports, which are analysed in detail. Management has a hands-on approach and is involved in day-to-day activities. Regular management meetings are held at least monthly for each property, where the senior management of the Group and each property manager analyse the \ufb01nancial results, decide whether any repairs or improvements are necessary, review rent collection issues and allocate resources to resolve any delays with tenants and review maintenance plans, vacancies and the status of any contract negotiations, as well as other operational matters. The results of these discussions ensure management decisions are speci\ufb01c to each of the properties. The Segmental Reporting in Note 37 summarises the results recorded by the properties held by the Group. The properties can be classi\ufb01ed as retail, o\ufb03ce, residential or industrial properties, depending on industry practice. The Group\u2019s Chief Operating Decision Makers (\u201cCODM\u201d) are the executive directors, and they take decisions based on detailed reports. These are prepared regularly and are presented to the Board of Directors, which approves the results and gives guidance on the subsequent strategy to be undertaken. Segment results, assets and liabilities include items directly attributable to a segment, as well as those that can be allocated there on a reasonable basis. Unallocated items comprise mainly investments (other than investment property) and related revenue, corporate assets and head o\ufb03ce expenses. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill. Financial information in respect of investment property is provided to the Board of Directors: net rentals (including rental income, service charge income and property operating expenses) and valuation gains and losses. Individual properties are aggregated into segments with similar economic characteristics. Consequently, the Group is considered to have \ufb01ve reportable operating segments: \u2022 Retail segment: acquires, develops and leases retail properties in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia and Slovakia; \u2022 O\ufb03ce segment: acquires and leases o\ufb03ce properties in Bulgaria and Slovakia; \u2022 Residential segment: develops and sales on completion, residential properties in Romania; \u2022 Industrial segment: acquires and leases industrial facilities in Romania, and \u2022 Corporate segment: head o\ufb03ce, administrative o\ufb03ces, Group and \ufb01nancing expenses. Group entities have been aggregated into \ufb01ve reportable segments (retail, o\ufb03ce, residential, industrial and corporate) as each of these segments have speci\ufb01c revenue streams, di\ufb00erent operational reporting cycles across the Group\u2019s portfolio, separate operational teams including technical, leasing, property and facility management. The Group also reports by geographic segments: Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Poland, Romania, Serbia, Slovakia. There is also a Corporate segment which includes entities located in Malta and the Netherlands. In addition, the Group\u2019s CODM closely follow changes in distributable earnings to its shareholders as a measure of pro\ufb01tability and as a result of successful implementation of the Group\u2019s strategy. Distributable earnings per share is calculated in terms of the SA REIT Association\u2019s Best Practice Recommendations Second Edition. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22598": {
"value": "4.26 Earnings per share The Group presents basic and diluted earnings per share. Basic and diluted earnings/(loss) per share are calculated by dividing annual pro\ufb01t/(loss) for the year attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year. Diluted earnings/(loss) per share are calculated by dividing the pro\ufb01t/(loss) attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. 26. NET ASSET VALUE PER SHARE in \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Net Asset Value (per the Statement of \ufb01nancial position) 3,898,721 3,714,922 Deferred tax liabilities for controlled subsidiaries 420,665 371,366 Deferred tax assets for controlled subsidiaries (54,679) (48,669) Goodwill (76,804) (76,804) Derivative \ufb01nancial assets at fair value through pro\ufb01t or loss (36,064) (4,542) Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss - 3,211 Deferred tax liabilities for joint ventures - 5,547 Derivatives at fair value through pro\ufb01t or loss for joint ventures - 399 EPRA Net Reinstatement Value 4,151,839 3,965,430 Net Asset Value per share (euro) 6.42 6.10 EPRA Net Reinstatement Value per share (euro) 6.84 6.51 Number of shares for Net Asset Value/EPRA Net Reinstatement Value (Note 33) 607,000,000 608,994,907 33. BASIC AND DILUTED EARNINGS PER SHARE The calculation of basic and diluted earnings per share for the year ended 31 December 2022 was based on the pro\ufb01t attributable to equity holders of \u20ac435,167 thousand (31 December 2021: \u20ac235,004 thousand) and the weighted average number of shares. \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Pro\ufb01t for the year attributable to equity holders 435,167 235,004 Basic weighted average number of shares 607,756,809 608,994,907 Diluted weighted average number of shares 608,529,063 608,994,907 Basic earnings per share (euro cents) attributable to equity holders 71.60 38.59 Diluted earnings per share (euro cents) attributable to equity holders 71.51 38.59 Weighted and diluted weighted average number of shares for basic and diluted earnings per share purposes are detailed below: 2022 Event Number of shares Cumulative number of shares after equity-related transactions % of period Weighted average 01/01/2022 Opening balance 608,994,907 608,994,907 77% 466,784,558 07/10/2022 Repurchase of shares** (1,994,907) 607,000,000 23% 141,744,505 31/12/2022 Diluted weighted average number of shares 608,529,063 E\ufb00ect of unvested shares under LTSIP (772,254) Basic weighted average number of shares 607,756,809 **The shares were repurchased between 29 September and 12 October 2022 from the cash available within the Company. Subsequently, the repurchased shares were cancelled. In 2021, there have been no movement in the number of shares of the Company. 34. HEADLINE EARNINGS AND DILUTED HEADLINE EARNINGS PER SHARE The starting point is for headline earnings per share calculation are earnings as determined in IAS 33, excluding \u201cseparately identi\ufb01able re-measurements\u201d, net of related tax (both current and deferred) and minority interest, other than re-measurements speci\ufb01cally included in headline earnings (referred to as included re-measurements), in terms of Circular 1/2021 issued by South African Institute of Chartered Accountants (SAICA). The calculation of headline earnings per share for the year ended 31 December 2022 was based on headline earnings of \u20ac313,186 thousand (31 December 2021: of \u20ac204,177 thousand) and the weighted average number of shares. Reconciliation of pro\ufb01t for the year to headline earnings \u20ac thousand, unless otherwise stated 31 Dec 2022 31 Dec 2021 Pro\ufb01t for the year attributable to equity holders 435,167 235,004 Fair value adjustments of investment property (Note 30) (141,701) (34,650) Gain on disposal of assets held for sale (Note 15) (1,121) (1,995) Tax e\ufb00ects of adjustments for controlled subsidiaries 22,212 5,204 Fair value adjustment of investment property for joint ventures (1,632) 731 Tax e\ufb00ects of adjustments for joint ventures 261 (117) HEADLINE EARNINGS 313,186 204,177 Basic weighted average number of shares 607,756,809 608,994,907 Diluted weighted average number of shares 608,529,063 608,994,907 Headline earnings per share (euro cents) 51.53 33.53 Diluted headline earnings per share (euro cents) 51.47 33.53 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22600": {
"value": "4.26 Earnings per share The Group presents basic and diluted earnings per share. Basic and diluted earnings/(loss) per share are calculated by dividing annual pro\ufb01t/(loss) for the year attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year. Diluted earnings/(loss) per share are calculated by dividing the pro\ufb01t/(loss) attributable to ordinary equity holders by the weighted average number of ordinary shares in issue during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22611": {
"value": "4.27 Investment property acquisitions and business combinations The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination where an integrated set of activities and assets, including property, is acquired. More speci\ufb01cally the following criteria, which indicate an acquisition of a business, are considered: the number of properties acquired, the extent to which strategic management processes and operation processes are acquired and the complexity of the processes acquired. In line with amended IFRS 3 since 1 January 2020 the Group may also apply optional concentration test. Business combinations are accounted for using the acquisition method. The acquisition is recognised at the aggregate amount of the consideration transferred, measured at fair value on the date of acquisition and the amount of any non- controlling interest in the acquired entity. If the fair value of net assets acquired is lower, the di\ufb00erence is recorded as goodwill. If the consideration is lower, the di\ufb00erence is recognised directly in the Statement of comprehensive income. When the acquisition of subsidiaries does not represent a business combination, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax is recognised. For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. If the business combination is achieved in stages, the previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in pro\ufb01t or loss. Any contingent consideration to be transferred by the acquirer will be recognised at fair value on the date of acquisition. Subsequent changes to the fair value of any contingent consideration classi\ufb01ed as a liability will be recognised in the Statement of comprehensive income. Acquisition accounting is \ufb01nalised when the Group has gathered all the necessary information, which must occur within 12 months of the acquisition date. There are no exemptions from the 12-month rule for deferred tax assets or changes in the contingent consideration. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. 12. GOODWILL Goodwill from recognition of deferred taxes at the date of the business combination All the goodwill summarised in the table above, with the exception of NEPI Investment Management and Energit, resulted from business combinations, as the di\ufb00erence between the deferred tax liability recognised in the balance sheet of the business acquired and the expected tax to be paid in case of a future disposal. As a consequence, impairment tests performed on this type of goodwill at each reporting date consist in comparing its carrying amount with the amounts expected to arise from deferred taxes payable, should a disposal occur, at the level of each CGU. As a result of this test in 2022, no impairment arose in respect to the goodwill from recognition of deferred taxes at the date of the business combination (31 December 2021: nil). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22612": {
"value": "4.27 Investment property acquisitions and business combinations The Group acquires subsidiaries that own real estate. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination where an integrated set of activities and assets, including property, is acquired. More speci\ufb01cally the following criteria, which indicate an acquisition of a business, are considered: the number of properties acquired, the extent to which strategic management processes and operation processes are acquired and the complexity of the processes acquired. In line with amended IFRS 3 since 1 January 2020 the Group may also apply optional concentration test. Business combinations are accounted for using the acquisition method. The acquisition is recognised at the aggregate amount of the consideration transferred, measured at fair value on the date of acquisition and the amount of any non- controlling interest in the acquired entity. If the fair value of net assets acquired is lower, the di\ufb00erence is recorded as goodwill. If the consideration is lower, the di\ufb00erence is recognised directly in the Statement of comprehensive income. When the acquisition of subsidiaries does not represent a business combination, it is accounted for as an acquisition of a group of assets and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax is recognised. For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. If the business combination is achieved in stages, the previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognised in pro\ufb01t or loss. Any contingent consideration to be transferred by the acquirer will be recognised at fair value on the date of acquisition. Subsequent changes to the fair value of any contingent consideration classi\ufb01ed as a liability will be recognised in the Statement of comprehensive income. Acquisition accounting is \ufb01nalised when the Group has gathered all the necessary information, which must occur within 12 months of the acquisition date. There are no exemptions from the 12-month rule for deferred tax assets or changes in the contingent consideration. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22615": {
"value": "4.27 Investment property acquisitions and business combinations For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. 35. SIGNIFICANT ASSET DEALS Acquisition of non-controlling interest In March 2022, the Group acquired the remaining non-controlling stakes in ACE3 Sp.zo.o. and Monarda Sp. z o.o. of 15% in 10% respectively, for a cash consideration of \u20ac9.4 million, thus obtaining 100% control in the two Polish entities. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22616": {
"value": "4.27 Investment property acquisitions and business combinations For each business combination, the acquirer measures the non-controlling interest in the acquired entity either at fair value or as a proportionate share of their identi\ufb01able net assets. Transaction costs incurred are expensed. Transactions with non-controlling interests, where control is maintained, are accounted for as transactions within equity. Any di\ufb00erence between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in the accumulated pro\ufb01t reserve. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22653": {
"value": "4.28 Leases where the Group is a lessee The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets for all leases, except for short-term leases and leases of low-value assets. The Group recognises right- of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised and lease payments made at or before the commencement date. Lease liabilities are measured at the present value of lease payments to be made over the lease term. The lease payments include \ufb01xed payments. The present value of lease payments is recognised by discounting the contractual lease payments using the interest rate implicit in the lease, representing the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. 24. LEASE LIABILITIES The Group recognises the right-of-use assets from leases of land plots on which its Polish properties are located, commissioned from the local authorities. The correspondent lease liabilities are recognised by discounting the contractual lease payments using the interest rate implicit in the lease, representing the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The contractual lease agreements are signed for the period of 99 years with extension option by the lessee. The agreements include \ufb01xed payment terms subject to adjustment due to revaluation of land, such revaluation can be done by the lessor not more often than every three years. Reconciliation of lease liabilities in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value of the lease liabilities 33,611 33,862 Out of which short-term 832 832 Additions to lease liabilities from acquired assets 3,843 - Interest expense (Note 31) 577 581 Lease liability payment (832) (832) Lease liabilities 37,200 33,611 Out of which short-term 832 832 27. NET RENTAL AND RELATED INCOME in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gross rental income 422,051 369,395 Service charge income 199,812 167,324 Gross rental and service charge income 621,863 536,719 Property management fees, tax, insurance and utilities (138,651) (102,605) Property maintenance cost (80,077) (70,752) Net expected credit (losses)/gains (660) 1,294 Property operating expenses (219,388) (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) 2,090 (17,765) TOTAL NET RENTAL AND RELATED INCOME 404,565 346,891 The Group rents its investment property under operating leases of various expiry terms. The standard terms of the leases comprise information relating to leased space, rent, rights and obligations of the landlord and tenant, including notice periods, renewal options and service charge arrangements. For most of the leases, the rent is indexed annually, over the term of the leases. Most retail leases have turnover rent clauses, which imply that if the agreed percentage of turnover from the retail unit under lease exceeds the base rent, the tenant will pay the di\ufb00erence to the Group. A proportion of 4.4% (\u20ac18,758 thousand) of the Gross rental income is represented by the turnover rent (paid on top of \ufb01xed rent) as at 31 December 2022 (31 December 2021: 3.1% (\u20ac11,491 thousand). Lease incentives represent the non-recurring amount granted (in cash or as \ufb01t-out works) by the Group, to a new or an existing tenant, in connection with a new or renewed lease. Lease incentives are straight-lined over the lease term. The lease term corresponds to the contractual duration for the majority of the leases, except for the anchor tenants, for which the lease duration is assessed by the Group based on past experience and taking into account factors such as: GLA of the property where the anchor tenant is located, catchment area, dominance/competition in the catchment area or purchasing power. The future minimum lease payments receivable under non-cancellable operating leases are detailed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 No later than 1 year 397,217 359,971 Between 1-2 years 307,032 294,789 Between 2-3 years 221,625 225,156 Between 3-4 years 150,927 154,503 Between 4-5 years 93,167 97,318 Later than 5 years 147,887 165,611 TOTAL 1,317,855 1,297,348 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"f22655": {
"value": "4.28 Leases where the Group is a lessee The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identi\ufb01ed asset for a period of time in exchange for consideration. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets for all leases, except for short-term leases and leases of low-value assets. The Group recognises right- of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised and lease payments made at or before the commencement date. Lease liabilities are measured at the present value of lease payments to be made over the lease term. The lease payments include \ufb01xed payments. The present value of lease payments is recognised by discounting the contractual lease payments using the interest rate implicit in the lease, representing the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22865": {
"value": "6.1 Credit risk Credit risk is the risk of \ufb01nancial loss to the Group if a counterparty to a \ufb01nancial instrument fails to meet its contractual obligations and arises principally from the Group\u2019s loans granted to joint ventures, receivables from tenants and cash and cash equivalents. The carrying amount of \ufb01nancial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date is set out below: Credit exposure on \ufb01nancial instruments in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Loans granted to joint ventures 36 - 22,466 Tenant receivables 13 59,691 46,874 Cash and cash equivalents 14 250,631 498,623 Financial assets at fair value through pro\ufb01t or loss* 20 36,064 4,542 Loans to participants in the Share Purchase Scheme** 11,18 4,205 4,510 TOTAL 350,591 577,015 * Includes both long-term and short-term \ufb01nancial assets at fair value through pro\ufb01t or loss **Presented in line Other long-term assets in the Statement of \ufb01nancial position Out of the above maximum credit exposure, the balance of Loans to participants in the Share Purchase Scheme is not considered to present credit risk as these are guaranteed with the Company\u2019s shares held as security (see details in Note 18). Trade and other receivables relate mainly to the Group\u2019s tenants. When monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or legal entity, the industry they work in, business size and previous \ufb01nancial di\ufb03culties. 4.10.4 Impairment \u2013 credit loss allowance for Expected Credit Losses (\u201cECL\u201d) In line with IFRS 9 \u201cFinancial instruments\u201d, the Group assesses on a forward-looking basis the ECL for debt instruments (including loans) measured at amortised cost. The Group measures ECL and recognises credit loss allowance on an annual basis. The measurement of ECL re\ufb02ects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and e\ufb00ort at the end of each reporting period about past events, current conditions and forecasts of future conditions. The carrying amount of the \ufb01nancial assets is reduced through the use of an allowance account, and the amount of any loss is recognised in the Statement of comprehensive income (pro\ufb01t or loss). Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL. ECLs are recognised for loans granted in two stages. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). Expected credit losses for trade receivables are recognized using the simpli\ufb01ed approach. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. 4.15 Trade receivables Trade receivables are also subject to the impairment requirements of IFRS 9. The Group applies the IFRS 9 simpli\ufb01ed approach to measuring expected credit losses. Trade receivables are written-o\ufb00 when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group. The exposure to credit risk is mainly in\ufb02uenced by the tenant\u2019s individual characteristics. The Group\u2019s widespread customer base reduces credit risk. The majority of rental income is derived from type A tenants (large international and national tenants; large listed tenants; government and major franchisees and companies with assets and/or turnovers exceeding \u20ac200 million), and there is no concentration of credit risk with respect to trade debtors: top 10 tenants account for 24.8% of the rental income as at 31 December 2022 (31 December 2021: 24.1%). Management has established a credit policy where new customers are analysed individually for creditworthiness before standard payment terms and conditions are o\ufb00ered. When available, the analysis includes external ratings. The Group establishes an allowance for impairment based on a simpli\ufb01ed expected credit loss model in respect of Trade and other receivables. For credit exposures for which there has not been a signi\ufb01cant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a signi\ufb01cant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). The carrying value of \ufb01nancial assets approximates their fair value. The Group\u2019s exposure to credit risk associated cash and cash equivalents is limited through using \ufb01nancial institutions of good standing for investment and cash handling purposes. An overview of the tenant receivables net of impairment provision is set out below: in \u20ac thousand Note 31 Dec 2022 31 Dec 2021 Tenant receivables \u2013 gross 69,033 54,156 Less: Impairment provisions (9,342) (7,282) TENANT RECEIVABLES-NET OF IMPAIRMENT PROVISION 13 59,691 46,874 Reconciliation of impairment provisions is set out below: Movement of provisions for doubtful debtors in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value at beginning of year (7,282) (9,753) Additional provision from properties acquired during the year (2,489) - Additional expected credit losses (2,841) (4,962) Write-o\ufb00 of receivables 986 469 Recovery of previously expected credit losses 2,182 6,256 Released in relation to assets held for sale disposed during the year - 625 Foreign exchange gain 102 83 CARRYING VALUE (9,342) (7,282) This table excludes rent concessions. The expected loss rates are based on the historical payment pro\ufb01les of tenants and the corresponding historical credit losses, adjusting for forward looking macroeconomic data. For example, if forecast economic conditions are expected to deteriorate over the next year which can lead to an increased number of defaults in a customer segment, the historical default rates are adjusted upwards. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the impairment provision as at 31 December 2022 was determined as follows for trade receivables. 31 December 2022 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 1% 5% 24% 89% Gross carrying amount \u2013 trade receivables 48,148 8,685 1,483 529 10,188 69,033 PROVISION FOR DOUBTFUL DEBTORS (74) (56) (67) (128) (9,017) (9,342) The impairment provision for trade receivables as at 31 December 2021 is set out below: 31 December 2021 in \u20ac thousand Current 0-30 days 31-60 days 61-90 days >90 days Total Expected loss rate 0% 0% 4% 8% 61% Gross carrying amount \u2013 trade receivables 32,278 7,795 1,422 922 11,739 54,156 PROVISION FOR DOUBTFUL DEBTORS - (31) (52) (73) (7,126) (7,282) The maturity pro\ufb01le of the Financial assets at fair value through pro\ufb01t or loss is disclosed below: 31 December 2022 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 25,958 10,106 36,064 31 December 2021 in \u20ac thousand 1\u20135 years over 5 years Total Financial assets at fair value through pro\ufb01t or loss 2,643 1,899 4,542 While cash and cash equivalents and loans granted to joint ventures are also subject to the impairment requirements of IFRS 9, the expected credit losses are immaterial. For purposes of liquidity management, the Group has\u00a0various\u00a0deposit accounts and negotiated current account agreements with several banks.\u00a0The arrangements in place result in an optimized mix between \ufb02exibility and reduced interest charges or best interest o\ufb00ered. The banks\u2019 credit ratings, as well as exposure per each bank are constantly monitored. At 31 December 2022, 95% of the Group's cash was held with investment-grade rated banks (31 December 2021: 96%), as detailed below: Cash and cash equivalents 31 Dec 2022 31 Dec 2021 Held with banks as rated by Moody\u2019s A1 7% 4% A2 30% 53% A3 15% 3% Aa3 8% 5% Baa1 35% 14% Baa2 - 2% Baa3 - 15% Held with not rated banks 5% 4% TOTAL 100% 100% ",
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"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23118": {
"value": "6.2 Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its \ufb01nancial obligations when due. The Group\u2019s approach to managing this risk ensures, as far as possible, it will always have enough liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation. To ensure this occurs, the Group prepares budgets, cash \ufb02ow analyses and forecasts, which enable the Directors to assess the level of \ufb01nancing required for future periods. Budgets and projections are used to assess any future potential investments and are compared to existing funds held on deposit to evaluate the nature, and extent of any future funding requirements. Further reference to bank loan maturity analysis is made in Note 19. The table below presents undiscounted cash \ufb02ows for all \ufb01nancial liabilities, computed at the contractual rates. 31 Dec 2022 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 30,707 28,539 1,616,496 518,081 2,193,823 1,992,971 Bank loans (including estimated future interest) 19 9,232 22,974 393,592 211,739 637,537 557,901 Borrowings from third parties (including estimated future interest) 23 908 19,080 36,518 - 56,506 50,107 Trade and other payables 21 31,000 124,002 - - 155,002 155,002 Other long-term liabilities 22 - - 31,303 6,363 37,666 37,666 Lease liabilities (including estimated future interest) 24 832 - 4,506 67,036 72,374 37,200 TOTAL 72,679 194,595 2,082,415 803,219 3,152,908 2,830,847 31 Dec 2021 in \u20ac thousand Note under 3 months 3\u201312 months 1\u20135 years over 5 years Total undiscounted cash \ufb02ows Total carrying amount Bonds (including estimated future interest) 19 28,915 30,137 1,603,847 508,790 2,171,689 1,988,239 Bank loans (including estimated future interest) 19 2,901 9,002 195,444 115,967 323,314 304,586 Derivative \ufb01nancial liabilities at fair value through pro\ufb01t or loss 20 - - 3,211 - 3,211 3,211 Borrowings from third parties short and long-term (including estimated future interest) 22 317 4,965 1,044 5,396 11,722 8,746 Trade and other payables (excluding short-term borrowings from third parties) 21 20,116 80,465 - - 100,581 100,581 Other long-term liabilities (excluding long-term borrowings from third parties) 22 - - 22,410 7,844 30,254 30,254 Lease liabilities (including estimated future interest) 24 832 - 3,329 53,279 57,440 33,611 TOTAL 53,082 124,569 1,829,285 691,276 2,698,211 2,469,228 To enhance the liquidity risk disclosure, the \u201cbonds\u201d and \u201cbank loans\u201d components of this table, which were previously aggregated, are now disclosed separately. The comparative liquidity risk table, as of 31 December 2021, has accordingly been amended. 19 BORROWINGS (BONDS AND BANK LOANS) The Group is currently assigned a long-term corporate credit rating of BBB (stable outlook) from Standard & Poor\u2019s Rating Services and BBB+ (stable outlook) from Fitch Ratings. In 2022, NEPI Rockcastle extended the contractual maturities related to its unsecured committed revolving credit facilities, as follows: \u2022 the revolving credit facility from BRD-Groupe Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and Garanti Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac170 million; \u2022 the revolving credit facility from ING Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac100 million; and \u2022 the revolving credit facility from Rai\ufb00eisen Bank International was extended for one year, until January 2025, with the maximum principal available maintained at \u20ac150 million. The above mentioned committed revolving credit facilities together with the revolving credit facility from a four-bank syndicate of a maximum limit of \u20ac200 million amount to a total of \u20ac620 million available unsecured committed revolving credit facilities, of which \u20ac420 million were undrawn as at 31 December 2022 (31 December 2021: \u20ac620 million). In January 2022, the Group issued its second green \u20ac500 million unsecured 8-year Eurobond, carrying a 2% \ufb01xed coupon, with an issue price of 98.713%. The bond issue was used for liability management, to repay a \u20ac500 million bond maturing in 2023. The repurchase of 2023 bond was made at market price in January and February 2022, with the premium paid over its carrying value of \u20ac22 million, recognised in the Statement of comprehensive income. The average interest rate of the Group\u2019s debt, including hedging result, was approximately 2.3% during 2022 (31 December 2021: 2.4%). As at 31 December 2022, \ufb01xed-coupon bonds represented 78% of NEPI Rockcastle\u2019s outstanding debt; out of the remaining long-term debt exposed to Euribor, 59% was hedged with interest rate caps and 21% with interest rate swaps. The unhedged portion represents less than 5% of the outstanding debt and relates to a proportion of the revolving credit facilities disbursed as of year-end. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. The repayment pro\ufb01le for outstanding loans, excluding future interest, is detailed below. In addition to these loans, the Group had loans and borrowings related to its joint ventures presented in Note 36, which were repaid in the second half of 2022 following acquisition of the remaining 50% stake in the joint-venture. Interest bearing borrowings 31 Dec 2022 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,498,980 500,000 1,998,980 Netherlands Revolving facilities - 200,000 - 200,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 1,520 74,100 - 75,620 Slovakia Secured loans 6,475 23,200 82,137 111,812 Czech Republic Secured loans 615 38,694 - 39,309 Romania Secured loans 2,727 10,908 46,365 60,000 Accrued interest on loans and deferred loan costs (180) (2,181) - (2,361) Accrued coupon on bonds 20,353 - - 20,353 Deferred bond costs (2,504) (7,359) (1,203) (11,066) Issue discount on bonds (3,586) (10,161) (1,549) (15,296) Total 25,420 1,826,181 699,271 2,550,872 Interest bearing borrowings 31 Dec 2021 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,495,000 500,000 1,995,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 380 75,620 - 76,000 Slovakia Secured loans 7,216 71,607 39,176 117,999 Czech Republic Secured loans 564 39,309 - 39,873 Accrued interest on loans and deferred loan costs (729) (2,078) - (2,807) Accrued coupon on bonds 18,856 - - 18,856 Deferred bond costs (2,772) (6,846) (430) (10,048) Issue discount on bonds (5,036) (9,909) (624) (15,569) Total 18,479 1,662,703 611,643 2,292,825 Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). Further details for the Group\u2019s loans and bonds are presented below: Secured term loans The Group has secured term loans contracted by some of its subsidiaries in Poland, Slovakia, Czech Republic and Romania. In December 2022, a Romanian subsidiary concluded a \u20ac60 million secured loan which matures in March 2030. Securities \u2022 General security over the properties (fair values as at 31 December 2022), current assets, cash in\ufb02ows from operating activities, accounts and receivables; and \u2022 General security over the shares in the property-owning entities. Covenants \u2022 Debt service cover ratio of a minimum between 120% and 130%; and \u2022 Loan to value ratio of a maximum between 60% and 70%. Unsecured green term loan In June 2021, the Group concluded a green unsecured \ufb01nancing agreement which matures in June 2028 in amount of \u20ac73.5 million. The loan was fully disbursed in July 2021. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. The loan is linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Unsecured committed revolving facilities At 31 December 2022, out of the \u20ac620 million revolving facilities, \u20ac420 million were available for drawdown following disbursement of \u20ac200 million in December 2022. The drawn amounts have the maturity of the revolving facilities from which they have been disbursed, in 2025, but they can be reimbursed earlier. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. All available revolving facilities are linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Management considers that the above ESG related variability feature does not meet the de\ufb01nition of a derivative, as de\ufb01ned in Appendix A of IFRS 9, on the basis that the external rating is a non\u2013\ufb01nancial variable speci\ufb01c to the Group. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23314": {
"value": "6.3 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates or equity prices will a\ufb00ect the Group\u2019s fair value or future cash \ufb02ows of \ufb01nancial instruments. The objective of market risk management is to manage market risk exposures within acceptable parameters, while optimising returns. The carrying value of \ufb01nancial assets and liabilities approximates their fair value, except for the carrying value of bonds, whose fair value is presented in Note 19. 6.3.1 Currency risk Group\u2019s current assets and liabilities are exposed to foreign currency risk on purchases and receivables denominated in Romanian leu (RON), Polish zloty (PLN), Bulgarian Lev (BGN), Hungarian forint (HUF), Serbian dinar (RSD), Czech crown (CZK), Croatian kuna (HRK) and South African rand (ZAR). Cash in\ufb02ows received in other currencies than Euro are converted to Euro using the spot rate available on the collection date. The amount converted to Euro is the net amount of cash in\ufb02ow in a foreign currency and the estimated cash out\ufb02ow in the same currency. The Group applies this policy to control its currency exposures in respect of monetary assets and liabilities denominated in currencies other than EUR. Sensitivities of pro\ufb01t or loss to reasonably possible changes in exchange rates applied at the \ufb01nancial position date relative to the local currency of the respective Group entities, with all other variables such as interest rates held constant, are immaterial. 6.3.2 Interest rate risk Interest rate risk is the risk that the future cash \ufb02ows of a \ufb01nancial instrument will \ufb02uctuate because of changes in market interest rates. The Group is exposed to interest rate risk on loans, borrowings and cash balances held. Group policy is to hedge this risk through the use of derivative \ufb01nancial instruments. As at 31 December 2022 and 31 December 2021, the Group held interest rate instruments in the form of interest rate swaps and interest rate caps, as further disclosed in Note 20. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Bank loans 557,901 304,586 \u2014 Rate capped 330,000 191,520 \u2014 Rate swapped 114,928 115,873 \u2014 Variable rate 115,333 - Accrued interest on loans and deferred loan costs* (2,360) (2,807) * The balance exposed to variable rate as of 31 December 2022 relate to a portion of the outstanding revolving credit facilities disbursed at year-end and represents less than 5% of the total outstanding debt. Sensitivity analysis for interest bearing \ufb01nancial instruments A change of 100 basis points (bps) in interest rates would have increased/(decreased) equity and pro\ufb01t for the year as shown below. Calculations are based on the cash and loans and borrowings balances outstanding at the respective balance sheet dates. Cash and loans and borrowings balances are subject to change over the year. This analysis assumes that all other variables, particularly foreign currency rates, remain constant. All sensitivity analysis calculations presented below are before tax. The benchmark rate for the bank loans with an outstanding amount of \u20ac557,901 thousand as at 31 December 2022 (2021: \u20ac304,586 thousand) is Euribor 3 months; if this rate is less than zero, Euribor shall be deemed to be zero. There are no plans to discontinue Euribor. Loans and borrowings with \ufb01xed or swapped interest rates are not a\ufb00ected by market changes in interest rates. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants in the Share Purchase Scheme (including accrued interest) (Note 18) 4,205 4,510 Loans and borrowings (variable or capped rate) (445,333) (191,520) TOTAL (441,128) (187,010) 31 Dec 2022 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 42 (42) 42 (42) Loans and borrowings (variable or capped rate)* (856) 1,130 (856) 1,130 TOTAL (814) 1,088 (814) 1,088 *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 31 Dec 2021 in \u20ac thousand Pro\ufb01t or loss 100bps increase Pro\ufb01t or loss 100bps decrease Equity 100bps increase Equity 100bps decrease Loans to participants in the Share Purchase Scheme (including accrued interest) 45 (45) 45 (45) Loans and borrowings (variable or capped rate)* (742) - (742) - TOTAL (697) (45) (697) (45) *Calculation is based considering loans' speci\ufb01cs and the allocated hedges (CAPs) net of tax. 19 BORROWINGS (BONDS AND BANK LOANS) The Group is currently assigned a long-term corporate credit rating of BBB (stable outlook) from Standard & Poor\u2019s Rating Services and BBB+ (stable outlook) from Fitch Ratings. In 2022, NEPI Rockcastle extended the contractual maturities related to its unsecured committed revolving credit facilities, as follows: \u2022 the revolving credit facility from BRD-Groupe Soci\u00e9t\u00e9 G\u00e9n\u00e9rale and Garanti Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac170 million; \u2022 the revolving credit facility from ING Bank was extended for one year, until July 2025, with the maximum principal available maintained at \u20ac100 million; and \u2022 the revolving credit facility from Rai\ufb00eisen Bank International was extended for one year, until January 2025, with the maximum principal available maintained at \u20ac150 million. The above mentioned committed revolving credit facilities together with the revolving credit facility from a four-bank syndicate of a maximum limit of \u20ac200 million amount to a total of \u20ac620 million available unsecured committed revolving credit facilities, of which \u20ac420 million were undrawn as at 31 December 2022 (31 December 2021: \u20ac620 million). In January 2022, the Group issued its second green \u20ac500 million unsecured 8-year Eurobond, carrying a 2% \ufb01xed coupon, with an issue price of 98.713%. The bond issue was used for liability management, to repay a \u20ac500 million bond maturing in 2023. The repurchase of 2023 bond was made at market price in January and February 2022, with the premium paid over its carrying value of \u20ac22 million, recognised in the Statement of comprehensive income. The average interest rate of the Group\u2019s debt, including hedging result, was approximately 2.3% during 2022 (31 December 2021: 2.4%). As at 31 December 2022, \ufb01xed-coupon bonds represented 78% of NEPI Rockcastle\u2019s outstanding debt; out of the remaining long-term debt exposed to Euribor, 59% was hedged with interest rate caps and 21% with interest rate swaps. The unhedged portion represents less than 5% of the outstanding debt and relates to a proportion of the revolving credit facilities disbursed as of year-end. The fair value of all \ufb01nancial instruments is substantially in line with their carrying amounts as re\ufb02ected on the Statement of \ufb01nancial position, except for the bonds. For reference, as at 31 December 2022, the \u20ac499 million bonds issued in 2017 were trading on the market at 93.55% (31 December 2021: 102.81%), the \u20ac500 million bonds issued in 2019 were trading on the market at 84.13% (31 December 2021: 102.59%), the \u20ac500 million bonds issued in 2020 were trading on the market at 86.52% (31 December 2021: 110.65%) and the \u20ac500 million bonds issued in January 2022 were trading on the market at 69.04% (31 December 2021: n/a). However, the fair value of bonds presented above might not be relevant, as the liability towards bonds holders would not vary in line with the market price of its listed notes. The repayment pro\ufb01le for outstanding loans, excluding future interest, is detailed below. In addition to these loans, the Group had loans and borrowings related to its joint ventures presented in Note 36, which were repaid in the second half of 2022 following acquisition of the remaining 50% stake in the joint-venture. Interest bearing borrowings 31 Dec 2022 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,498,980 500,000 1,998,980 Netherlands Revolving facilities - 200,000 - 200,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 1,520 74,100 - 75,620 Slovakia Secured loans 6,475 23,200 82,137 111,812 Czech Republic Secured loans 615 38,694 - 39,309 Romania Secured loans 2,727 10,908 46,365 60,000 Accrued interest on loans and deferred loan costs (180) (2,181) - (2,361) Accrued coupon on bonds 20,353 - - 20,353 Deferred bond costs (2,504) (7,359) (1,203) (11,066) Issue discount on bonds (3,586) (10,161) (1,549) (15,296) Total 25,420 1,826,181 699,271 2,550,872 Interest bearing borrowings 31 Dec 2021 in \u20ac thousand Type Payable in less than 1 year Payable in 1-5 years Payable over 5 years Total Netherlands Unsecured \ufb01xed coupon bonds - 1,495,000 500,000 1,995,000 Netherlands Unsecured loan - - 73,521 73,521 Poland Secured loans 380 75,620 - 76,000 Slovakia Secured loans 7,216 71,607 39,176 117,999 Czech Republic Secured loans 564 39,309 - 39,873 Accrued interest on loans and deferred loan costs (729) (2,078) - (2,807) Accrued coupon on bonds 18,856 - - 18,856 Deferred bond costs (2,772) (6,846) (430) (10,048) Issue discount on bonds (5,036) (9,909) (624) (15,569) Total 18,479 1,662,703 611,643 2,292,825 Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). Further details for the Group\u2019s loans and bonds are presented below: Secured term loans The Group has secured term loans contracted by some of its subsidiaries in Poland, Slovakia, Czech Republic and Romania. In December 2022, a Romanian subsidiary concluded a \u20ac60 million secured loan which matures in March 2030. Securities \u2022 General security over the properties (fair values as at 31 December 2022), current assets, cash in\ufb02ows from operating activities, accounts and receivables; and \u2022 General security over the shares in the property-owning entities. Covenants \u2022 Debt service cover ratio of a minimum between 120% and 130%; and \u2022 Loan to value ratio of a maximum between 60% and 70%. Unsecured green term loan In June 2021, the Group concluded a green unsecured \ufb01nancing agreement which matures in June 2028 in amount of \u20ac73.5 million. The loan was fully disbursed in July 2021. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. The loan is linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Unsecured committed revolving facilities At 31 December 2022, out of the \u20ac620 million revolving facilities, \u20ac420 million were available for drawdown following disbursement of \u20ac200 million in December 2022. The drawn amounts have the maturity of the revolving facilities from which they have been disbursed, in 2025, but they can be reimbursed earlier. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. All available revolving facilities are linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Management considers that the above ESG related variability feature does not meet the de\ufb01nition of a derivative, as de\ufb01ned in Appendix A of IFRS 9, on the basis that the external rating is a non\u2013\ufb01nancial variable speci\ufb01c to the Group. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). 20. DERIVATIVE FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS The Group uses mainly derivative instruments to hedge variable interest rate (Euribor) exposure. Their fair value is summarised below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Derivative \ufb01nancial assets \u2013 long-term 25,585 4,542 Derivative \ufb01nancial assets \u2013 short-term 10,479 - Derivative \ufb01nancial liabilities - 3,211 The above \ufb01nancial assets and liabilities consist of interest rate caps and \ufb01xed interest rate swaps which are not designated as cash \ufb02ow hedges. At 31 December 2022, \u20ac330 million of long-term debt exposed to Euribor was hedged with interest rate caps, \u20ac115 million with interest rate swaps and another \u20ac115 million (a proportion of the revolving credit facilities disbursed at year-end) was exposed to \ufb02oating interest rate at Euribor 3 months. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23472": {
"value": "8. CAPITAL MANAGEMENT The primary objective of the Group\u2019s capital management is to ensure it complies with its quantitative banking covenants and maintains a strong credit rating. During the year, no changes were made in the objectives, policies or processes. Capital is primarily monitored using the gearing ratio (Loan-to-value), which was 35.7% (31 December 2021: 30.9%). The ratio is computed as interest bearing debt less lease liabilities less cash, divided by investment property (including investment property held for sale) and excludes the right-of-use assets. Loan-to-value is a non IFRS measure. The Group\u2019s policy is to maintain a strong capital base of equity so as to maintain investor, creditor and market con\ufb01dence and to sustain future business development. The Board of Directors also monitors the level of distributions to shareholders. Neither the Company, nor its subsidiaries, are subject to externally imposed capital requirements, except that the Group\u2019s subsidiaries are subject to compliance with bonds and bank borrowings\u2019 covenants, as presented in Note 19. The Group ensures it retains comfortable levels of access to liquidity to \ufb01nance the Group\u2019s ongoing operations and further investment opportunities. 19 BORROWINGS (BONDS AND BANK LOANS) Unsecured committed revolving facilities At 31 December 2022, out of the \u20ac620 million revolving facilities, \u20ac420 million were available for drawdown following disbursement of \u20ac200 million in December 2022. The drawn amounts have the maturity of the revolving facilities from which they have been disbursed, in 2025, but they can be reimbursed earlier. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. All available revolving facilities are linked to the ESG performance of the Group through the sustainability rating provided by Sustainalytics. Management considers that the above ESG related variability feature does not meet the de\ufb01nition of a derivative, as de\ufb01ned in Appendix A of IFRS 9, on the basis that the external rating is a non\u2013\ufb01nancial variable speci\ufb01c to the Group. Unsecured \ufb01xed coupon bonds The Group successfully issued \ufb01xed coupon bonds as follows: \u2022 November 2017: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 23 November 2024 and carry a 1.75% \ufb01xed coupon, with an issue price of 99.051%; \u2022 October 2019: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 9 October 2026 and carry a 1.875% \ufb01xed coupon, with an issue price of 98.927%; \u2022 July 2020: \u20ac500 million of unsecured, 7-year Eurobonds. The bonds mature on 14 July 2027 and carry a 3.375% \ufb01xed coupon, with an issue price of 98.172%; and \u2022 January 2022: \u20ac500 million of unsecured, 8-year Eurobonds. The bonds mature on 21 January 2030 and carry a 2.00% \ufb01xed coupon, with an issue price of 98.713%. All the bonds include early redemption options. At each date of bond issue initial recognition management has performed an assessment whether those options are closely related to the host contract, considering the IFRS 9 clauses, which states that early repayment options are closely related to the host debt, if either: \u2022 the option\u2019s exercise price is approximately equal on each exercise date to the host debt instrument\u2019s amortised cost; or \u2022 the exercise price of a prepayment option reimburses the lender for an amount up to the approximate present value of lost interest for the remaining term of the host contract. Based on management assessment in case of the exercise of any of the early redemption options either \ufb01rst or second criteria will be met, therefore those were considered as closely related to the bond and thus not separately valued and disclosed. Covenants \u2022 Solvency Ratio of maximum 0.60; \u2022 Consolidated Coverage Ratio of minimum 2:1; and \u2022 Unsecured Ratio of minimum 150%. NEPI Rockcastle has complied with all \ufb01nancial covenants of its borrowing facilities during 2022 and 2021. The ratios calculated for all unsecured loans and bonds showed ample headroom compared to the covenants: \u2022 Solvency Ratio: 0.40 (31 December 2021: 0.39); \u2022 Consolidated Coverage Ratio: 6.2* (31 December 2021: 4.06); and \u2022 Unsecured Ratio: 251% (31 December 2021: 263%). *The Consolidated Coverage Ratio as at 31 December 2022 is signi\ufb01cantly higher compared to the previous year, due to the reversal of litigation provision following settlement of \u20ac21 million. Excluding the e\ufb00ect of the reversal, the Consolidated Coverage Ratio would have been 5.8 (2021: 4.6, excluding the e\ufb00ect of the expense with litigation claim). ",
"dimensions": {
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"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23854": {
"value": "11. OTHER LONG-TERM ASSETS Other long-term assets are classi\ufb01ed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants under the Share Purchase Scheme (Note 18) 4,205 4,510 Property, plant and equipment 3,780 3,599 Intangible assets 3,065 1,346 TOTAL 11,050 9,455 13. TRADE AND OTHER RECEIVABLES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Tenant receivables (Note 6.1) 59,691 46,874 VAT receivable 11,287 5,804 Prepaid property expenses 9,447 5,582 Other receivables 4,989 2,490 Other prepaid fees 82 222 TOTAL 85,496 60,972 18. SHARE-BASED PAYMENTS a. Purchase O\ufb00ers (\u201cSPS\u201d) Under this program, loans were granted to participants in the share purchase schemes (the \u201cShare Purchase Scheme\u201d or \u201cSPS\u201d) to buy shares, the repayment of which could be made in part out of the distribution payable in relation to the shares (the \u201cNRP SPS\u201d). Of the shares initially subscribed for, 20% vested annually. The Group o\ufb00ered each participant the immediate right to subscribe for the permitted number of shares at their market value, less a maximum discount of 5%, together with a loan to fund the purchase. Each loan carried interest at the weighted average rate that the Group can borrow money. Loans are payable in full, together with interest, ten years after its subscription date, but could be repaid earlier. The Company has security interests that ensure the repayment of the principal and interest on the loan given to participants. The NRP SPS is a full recourse scheme (i.e., recourse in relation to loans granted is not limited to shares issued). Pending repayment of the loan, the distributions on such shares are used to repay loan interest. Any excess distribution after interest payment is used to repay the loan. No shares were issued during 2022 and 2021 under the NRP SPS. The number of shares outstanding and the loans to participants under the Share Purchase Scheme as at the year-end are summarised below: NRP SPS 31 Dec 2022 31 Dec 2021 Number of shares outstanding, collateralising the Loans to participants under the Share Purchase Scheme 657,276 705,864 Loans to participants under the Share Purchase Scheme (in \u20ac thousand) 4,205 4,510 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23855": {
"value": "11. OTHER LONG-TERM ASSETS Other long-term assets are classi\ufb01ed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Loans to participants under the Share Purchase Scheme (Note 18) 4,205 4,510 Property, plant and equipment 3,780 3,599 Intangible assets 3,065 1,346 TOTAL 11,050 9,455 18. SHARE-BASED PAYMENTS a. Purchase O\ufb00ers (\u201cSPS\u201d) Under this program, loans were granted to participants in the share purchase schemes (the \u201cShare Purchase Scheme\u201d or \u201cSPS\u201d) to buy shares, the repayment of which could be made in part out of the distribution payable in relation to the shares (the \u201cNRP SPS\u201d). Of the shares initially subscribed for, 20% vested annually. The Group o\ufb00ered each participant the immediate right to subscribe for the permitted number of shares at their market value, less a maximum discount of 5%, together with a loan to fund the purchase. Each loan carried interest at the weighted average rate that the Group can borrow money. Loans are payable in full, together with interest, ten years after its subscription date, but could be repaid earlier. The Company has security interests that ensure the repayment of the principal and interest on the loan given to participants. The NRP SPS is a full recourse scheme (i.e., recourse in relation to loans granted is not limited to shares issued). Pending repayment of the loan, the distributions on such shares are used to repay loan interest. Any excess distribution after interest payment is used to repay the loan. No shares were issued during 2022 and 2021 under the NRP SPS. The number of shares outstanding and the loans to participants under the Share Purchase Scheme as at the year-end are summarised below: NRP SPS 31 Dec 2022 31 Dec 2021 Number of shares outstanding, collateralising the Loans to participants under the Share Purchase Scheme 657,276 705,864 Loans to participants under the Share Purchase Scheme (in \u20ac thousand) 4,205 4,510 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"f23987": {
"value": "13. TRADE AND OTHER RECEIVABLES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Tenant receivables (Note 6.1) 59,691 46,874 VAT receivable 11,287 5,804 Prepaid property expenses 9,447 5,582 Other receivables 4,989 2,490 Other prepaid fees 82 222 TOTAL 85,496 60,972 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f24024": {
"value": "14. CASH AND CASH EQUIVALENTS Cash and cash equivalents by currency in \u20ac thousand 31 Dec 2022 31 Dec 2021 EUR 161,035 418,751 RON 38,556 29,442 PLN 19,837 15,799 BGN 10,663 8,974 HUF 3,213 6,645 HRK 7,703 12,562 CZK 5,909 4,016 RSD 3,101 1,773 ZAR 614 572 USD - 9 GBP - 80 TOTAL 250,631 498,623 Cash and cash equivalents by type in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current accounts 196,019 378,401 Deposits 50,079 120,000 Restricted cash 4,250 - Petty cash and other values 283 222 TOTAL 250,631 498,623 19 BORROWINGS (BONDS AND BANK LOANS) Bonds and bank loans reconciliation This section sets out an analysis of bonds and bank loans outstanding and the related movements for the periods presented. in \u20ac thousand Bank loans Bonds Total*,** Debt as at 31 December 2021 304,586 1,988,239 2,292,825 Cash repayments of principal (25,563) (496,020) (521,583) Loan taken over from the acquisition of the remaining 50% stake in joint venture 18,432 - 18,432 Cash proceeds from bank loans or bonds 260,000 493,566 753,566 Cash payments of interest on bank loans or coupon on bonds (5,972) (44,024) (49,996) Interest expense 6,288 45,522 51,810 Amortisation of capitalised borrowing costs 916 2,595 3,511 Amortisation of bond discount - 3,824 3,824 Additional capitalised borrowing costs in the period (786) (4,674) (5,460) Costs released following bonds buy-back prior maturity - 3,943 3,943 Debt as at 31 December 2022 557,901 1,992,971 2,550,872 *The carrying value of the bond repurchased during January and February 2022 was \u20ac492,078 thousand, consisting of its nominal value of \u20ac496,020 thousand together with unamortised discount and capitalized borrowing costs of \u20ac3,943 thousand. **The table above does not contain interest bearing loans from third parties in amount of \u20ac50,107 thousand as at 31 December 2022 (Note 23). The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,513 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac577 thousand (Note 24). in \u20ac thousand Bank loans Bonds Total* Debt as at 31 December 2020 482,587 1,980,285 2,462,872 Cash repayments of principal (250,458) - (250,458) Cash proceeds from bank loans or bonds 73,521 - 73,521 Cash payments of interest on bank loans or coupon on bonds (7,169) (48,003) (55,172) Interest expense 7,168 48,003 55,171 Amortisation of capitalised borrowing costs 1,209 2,769 3,978 Amortisation of bond discount - 5,185 5,185 Additional capitalised borrowing costs in the period (1,876) - (1,876) Other non-cash items (396) - (396) Debt as at 31 December 2021 304,586 1,988,239 2,292,825 *The table above does not contain interest bearing loans from third parties in amount of \u20ac8,746 thousand as at 31 December 2021 (included in Other long-term liabilities in Note 22 and in Trade and other payables in Note 21), and the associated \ufb01nance cost. The above \ufb01nance costs also do not include interest capitalized on developments of \u20ac3,193 thousand (refer to Note 10), and interest on lease liabilities related to the right-of-use assets of \u20ac582 thousand (Note 24). 22. OTHER LONG-TERM LIABILITIES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Borrowings from third parties \u2013 long-term* - 4,358 Tenant security deposits 32,990 29,034 Advances from residential customers 3,427 217 Other long-term payables 1,249 1,003 TOTAL 37,666 34,612 *Reconciliation of borrowings from third parties This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 24. LEASE LIABILITIES Reconciliation of lease liabilities in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value of the lease liabilities 33,611 33,862 Out of which short-term 832 832 Additions to lease liabilities from acquired assets 3,843 - Interest expense (Note 31) 577 581 Lease liability payment (832) (832) Lease liabilities 37,200 33,611 Out of which short-term 832 832 38. CASH FLOW FROM OPERATIONS \u20ac thousand Note 31 Dec 2022 31 Dec 2021 OPERATING ACTIVITIES Pro\ufb01t after tax 435,273 235,069 Adjustments (56,340) 89,702 Fair value adjustments of investment property 30 (141,701) (34,650) Foreign exchange (gain)/loss (1,585) 935 Gain on disposal of assets held for sale 15 (1,121) (1,995) Net \ufb01nance costs 31 57,589 65,722 Fair value adjustments of derivatives 32 (37,946) (5,174) Losses on extinguishment of \ufb01nancial instruments 21,925 - Deferred tax expense 25 43,266 16,643 Current tax expense 25 23,068 10,274 Depreciation expense for property, plant and equipment 1,469 643 (Reversal of)/ Expense with litigation claim 29 (21,304) 37,304 Changes in working capital (3,571) (740) (Increase) in trade and other receivables (12,484) (6,063) Increase in trade and other payables 20,085 11,545 (Increase) in Inventory property (11,172) (6,222) Net cash \ufb02ow from operations 375,362 324,031 ",
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"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"f24025": {
"value": "14. CASH AND CASH EQUIVALENTS Cash and cash equivalents by type in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current accounts 196,019 378,401 Deposits 50,079 120,000 Restricted cash 4,250 - Petty cash and other values 283 222 TOTAL 250,631 498,623 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"f24184": {
"value": "17. SHARE CAPITAL AND SHARE PREMIUM Movement of ordinary shares in \u20ac thousand Number of shares Share capital \u20ac0.01/share Share premium Issued as of 1 January 2021 608,994,907 6,090 3,550,061 CARRIED FORWARD AS AT 31 DECEMBER 2021 608,994,907 6,090 3,550,061 \u2014 Repurchase of shares 1,994,907 ordinary shares representing 0.33% of the Company issued shared capital* (1,994,907) (20) (9,326) \u2014 Share premium reduction (During 2022, \u20ac350,000 thousand were transferred from share premium to accumulated pro\ufb01t, to ensure positive retained earnings at stand-alone parent Company level) - - (350,000) CARRIED FORWARD AS AT 31 DECEMBER 2022 607,000,000 6,070 3,190,735 *The shares were repurchased between 29 September and 12 October 2022 from available cash. Subsequently, the repurchased shares were cancelled. The shares were repurchased at an average share price of \u20ac4.68. The Group had no issues of share capital or options to receive capital return granted to its shareholders during 2022. Ordinary shares carry the right to vote at general meetings, to distribution and to the surplus assets of the Group on winding-up. The Group has granted dividends as summarized below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Earnings distribution (241,223) (210,222) As of 8 March 2022, the Board has declared a dividend of 16.78 euro cents per share for the year ended 31 December 2021, corresponding to 100% of the distributable earnings per share for this period. The distribution amounting to \u20ac102,189 thousand was paid in cash during March 2022. As of 20 September 2022, the Board has declared a dividend of 22.83 euro cents per share for the six months ended 30 June 2022, corresponding to 100% of the distributable earnings per share for this period. The distribution amounting to \u20ac139,034 thousand was paid in cash during October 2022. 4.17 Share capital and share premium Ordinary shares are classi\ufb01ed as equity. Incremental external costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. The consideration paid, including any directly attributable incremental costs (net of income taxes for the purchases of the Company\u2019s equity instruments by any of the Group\u2019s subsidiaries, as a result of a share buy-back or for a share- based incentive plan) is presented within \u201cOther reserves\u201d, until the shares are cancelled or reissued. Where such ordinary shares are cancelled, their nominal value is debited to Share capital, with the corresponding di\ufb00erence up to their purchase price (including any attributable incremental cost, net of taxes) debited from Share premium. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax e\ufb00ects, is included in equity attributable to the owners of the Group. Usually, shares are purchased for the debt-free Long-Term Share Incentive Plan (Note 4.18 (b)). 4.19 Accumulated pro\ufb01t The balance on the Statement of comprehensive income is transferred to accumulated pro\ufb01t at the end of each \ufb01nancial period. Distributions paid in cash are deducted from accumulated pro\ufb01t. Distributions for which shareholders elected to receive a return of capital are accounted for as an issue of share capital with a corresponding deduction from the share premium account. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"f24777": {
"value": "21. TRADE AND OTHER PAYABLES in \u20ac thousand 31 Dec 202 31 Dec 2021 Property related payables 80,167 43,266 Advances from tenants 43,710 37,905 Payable for assets under construction 16,973 11,978 Borrowings from third parties \u2013 short-term (Note 22) - 4,388 Accrued administrative expenses 5,246 3,783 Tenant security deposits 2,635 2,335 Deferred consideration on acquisitions of subsidiaries and asset deals 6,271 1,314 TOTAL 155,002 104,969 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"f24808": {
"value": "22. OTHER LONG-TERM LIABILITIES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Borrowings from third parties \u2013 long-term* - 4,358 Tenant security deposits 32,990 29,034 Advances from residential customers 3,427 217 Other long-term payables 1,249 1,003 TOTAL 37,666 34,612 *Reconciliation of borrowings from third parties This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f24809": {
"value": "22. OTHER LONG-TERM LIABILITIES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Borrowings from third parties \u2013 long-term* - 4,358 Tenant security deposits 32,990 29,034 Advances from residential customers 3,427 217 Other long-term payables 1,249 1,003 TOTAL 37,666 34,612 *Reconciliation of borrowings from third parties This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f24812": {
"value": "22. OTHER LONG-TERM LIABILITIES This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 23. LOANS FROM THIRD PARTY As disclosed in Note 35, as part of the deal for the acquisition of Forum Gdansk Sp. z o.o., the Group obtained vendor \ufb01nancing in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand, bearing an interest rate of 6.5%. One third of the loan principal is repayable at each anniversary of the loan until maturity, however the loan can be repaid by the Group at any time at its own discretion. The fair value of the loan is substantially in line with its carrying amount. 24. LEASE LIABILITIES Reconciliation of lease liabilities in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value of the lease liabilities 33,611 33,862 Out of which short-term 832 832 Additions to lease liabilities from acquired assets 3,843 - Interest expense (Note 31) 577 581 Lease liability payment (832) (832) Lease liabilities 37,200 33,611 Out of which short-term 832 832 31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. 36. JOINT VENTURES Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f24813": {
"value": "22. OTHER LONG-TERM LIABILITIES This section sets out the movements in borrowings from third parties for the periods presented. in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2021 8,746 Out of which short-term 4,388 Cash repayments of principal (8,580) Cash payments of interest (652) Interest expense 486 Borrowings as at 31 December 2022 - Out of which short-term (Note 21) - in \u20ac thousand Borrowings from third parties Borrowings as at 31 December 2020 8,653 Cash repayments of principal - Cash payments of interest (991) Interest expense 926 Other non-cash items 158 Borrowings as at 31 December 2021 8,746 Out of which short-term (Note 21) 4,388 23. LOANS FROM THIRD PARTY As disclosed in Note 35, as part of the deal for the acquisition of Forum Gdansk Sp. z o.o., the Group obtained vendor \ufb01nancing in the form of a three-year unsecured loan from the seller, for part of the purchase price amounting to \u20ac50,000 thousand, bearing an interest rate of 6.5%. One third of the loan principal is repayable at each anniversary of the loan until maturity, however the loan can be repaid by the Group at any time at its own discretion. The fair value of the loan is substantially in line with its carrying amount. 24. LEASE LIABILITIES Reconciliation of lease liabilities in \u20ac thousand 31 Dec 2022 31 Dec 2021 Carrying value of the lease liabilities 33,611 33,862 Out of which short-term 832 832 Additions to lease liabilities from acquired assets 3,843 - Interest expense (Note 31) 577 581 Lease liability payment (832) (832) Lease liabilities 37,200 33,611 Out of which short-term 832 832 31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25021": {
"value": "in \u20ac thousand Consolidated Statement of \ufb01nancial position Consolidated Statement of comprehensive income Deferred tax liability (net) 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 Valuation of investment property at fair value (456,232) (408,096) (49,221) (33,649) Recognised unused tax losses 49,934 57,271 (7,338) 16,074 Deductible/Taxable temporary di\ufb00erences 41,423 28,128 13,293 932 TOTAL (364,875) (322,697) (43,266) (16,643) The Group is liable for taxation on taxable pro\ufb01ts in the following jurisdictions at the rates below: Corporate income tax rates 31 Dec 2022 31 Dec 2021 Isle of Man 0% 0% Netherlands 25.8% 25.8% Mauritius 15% 15% Romania 16% 16% Poland 19% 19% Slovakia 21% 21% Serbia 15% 15% Czech Republic 19% 19% Croatia 18% 18% Bulgaria 10% 10% Hungary 9% 9% Lithuania 15% 15% Malta 35% 35% A reconciliation between the current year income tax charge (current and deferred tax) and the Group consolidated pro\ufb01t/(loss) before tax for the years 2022 and 2021 is presented below: Pro\ufb01t Before Tax Reconciliation in \u20ac thousand 31 Dec 2022 31 Dec 2021 Consolidated Pro\ufb01t Before Tax 501,607 261,986 Weighted tax rate on consolidated Pro\ufb01t Before Tax 14.91% 16.53% Group income tax charge based on Group weighted tax rate (74,771) (43,346) E\ufb00ect in corporate income tax resulting from the following items: Group share in earnings from companies accounted for under equity method 489 304 E\ufb00ect of gains/(losses) at Holding level without tax impact (including release of provision for litigation claim) 6,583 (7,603) Tax expense in Holdings (inter-companies) not included in Pro\ufb01t before tax of the Group for consolidation (3,862) (2,804) Tax value adjustments in local jurisdictions related to previous years (including foreign exchange impact on non-\ufb01nancial tax base and statutory adjustments) 12,114 4,692 Refund of minimum tax for Polish entities related to previous years 342 1,330 Deferred tax assets released due to \ufb01scal losses expired and/or not utilised in the current year or expected to expire without being utilised in future periods (release of DTA not related to current year) (2,821) (1,832) Release of deferred tax asset recognised for prior year tax losses (4,550) 19,182 Deferred tax asset recognised for additional \ufb01scal losses incurred in the current year and derived from tax deductions in relation to statutory expenses eliminated for IFRS - 1,845 Others 142 1,315 TOTAL Group tax expense (66,334) (26,917) E\ufb00ective tax rate (Group consolidated Pro\ufb01t Before Tax) 13 % 10% The Group accounts for deferred taxes assuming the theoretical future disposals of properties in the form of asset deals, triggering the full corporate income tax rate in each jurisdiction in which the Group owns property. In practice, if the Group would be in the position to dispose of certain assets, these disposals will most probably be conducted via share deals, as assets are held in separate SPVs, signi\ufb01cantly reducing the e\ufb00ective tax rate on potential capital gains. Group subsidiaries are subject to corporate tax on an annual basis. The Group carries forward aggregate \ufb01scal losses of \u20ac249,282 thousand (31 December 2021: \u20ac284,304 thousand), which are mainly available for up to seven years to o\ufb00set against any future taxable pro\ufb01ts of the companies in which the losses arose. The notable exception is the Netherlands where, starting 1 January 2022 tax losses available as at 31 December 2021 may be used for an inde\ufb01nite amount of time to o\ufb00set against 50% of the future taxable pro\ufb01ts of the Dutch companies. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable pro\ufb01t will be available against which the losses can be utilised. Signi\ufb01cant management judgement is required to determine recognisable deferred tax assets, based on the likely timing and the level of future taxable pro\ufb01ts and future tax planning strategies. Deferred tax assets have not been recognised for \ufb01scal losses of \u20ac40,754 thousand (31 December 2021: \u20ac39,597 thousand) as these could have been used only to o\ufb00set the taxable pro\ufb01ts of certain companies in the Group, and there is uncertainty whether these companies will either generate sufficient taxable profit in the future. The expiry dates for these losses are as follows: in \u20ac thousand 31 Dec 2022 31 Dec 2021 2022 - 6,026 2023 5,619 7,339 2024 4,271 12,011 2025 2,457 733 2026 6,906 11,701 2027 1,347 1,787 2028 2,712 - 2029 and later 17,442 Total 40,754 39,597 The Group does not withhold taxes on distribution paid. 4.24 Taxation Taxation on the pro\ufb01t or loss for the year comprises current and deferred tax. Current income tax and liabilities are measured at the amount expected to be recovered from, or paid to, taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, or substantively enacted, by the reporting date. Current income tax relating to items recognised directly in equity is recognised directly in equity and not in the Statement of comprehensive income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax is determined using the liability method and is based on temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial reporting purposes and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the date of the Statement of \ufb01nancial position, which are expected to apply to the period when the temporary di\ufb00erences will reverse or the tax loss carried forward will be utilised. The following temporary di\ufb00erences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that a\ufb00ect neither accounting nor taxable pro\ufb01t, and di\ufb00erences relating to investments in subsidiaries that are unlikely to reverse in the foreseeable future. A deferred tax asset is recognised based on the assumption that it is probable that future taxable pro\ufb01ts will be available against which it can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax bene\ufb01t will be realised. The current tax expense incurred by the Group re\ufb02ects tax accrued in the subsidiaries of the Group located in Bulgaria, Croatia, Czech Republic, Hungary, Lithuania, Malta, Mauritius, Poland, Romania, Serbia, Slovakia and the Netherlands. 25. CORPORATE TAX CHARGE AND DEFERRED TAX Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in pro\ufb01t or loss, except to the extent they relate to business combination or items recognised directly to equity. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets are realised or the liabilities are settled, based on tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised to the extent it is probable that future taxable pro\ufb01t will be available against which temporary di\ufb00erences can be utilised. in \u20ac thousand 31 Dec 2022 31 Dec 2021 Current tax expense 23,068 10,274 Deferred tax expense 43,266 16,643 INCOME TAX EXPENSE 66,334 26,917 Deferred tax brought forward 322,697 306,646 Other adjustments (deferred tax liability released further to sale of one Serbian entity in 2022 and two Serbian entities in 2021 included in the disposal proceeds)-no P&L e\ufb00ect 23 (592) Deferred tax balance transferred to Held for sale assets-no P&L e\ufb00ect (1,111) - Deferred tax expense 43,266 16,643 Net deferred tax liability carried forward, out of which: 364,875 322,697 Deferred tax asset (*) (54,679) (48,669) Deferred tax liability (*) 419,554 371,366 (*) Deferred tax assets and liabilities presented in this table, in net amount of \u20ac40,978 thousand (2021: \u20ac36,900 thousand), have been o\ufb00set at the level of the Group entities. Net deferred tax liability results from the following types of di\ufb00erences: in \u20ac thousand 31 Dec 2022 31 Dec 2021 Fiscal losses 249,282 284,304 Other deductible temporary di\ufb00erences (*) 241,514 149,562 Deferred tax asset 95,657 85,568 Temporary di\ufb00erences between accounting and \ufb01scal value of investment property (2,983,715) (2,683,068) Other taxable temporary di\ufb00erences (*) (22,649) (885) Deferred tax liability (460,532) (408,265) Net deferred tax liability (364,875) (322,697) (*) Other deductible and taxable temporary di\ufb00erences include mainly prepayments and accruals, deferred income and allowances for doubtful debts. The deferred tax balance as at 31 December 2022 is the net e\ufb00ect of deferred tax assets resulted mainly from \ufb01scal losses and deferred tax liabilities resulted from di\ufb00erences between the \ufb01scal base and the accounting base of assets and liabilities, mainly investment property. Deferred tax liabilities are not expected to be settled within the following \ufb01ve years from the reporting date. Deferred tax liabilities, which are a non-cash item, result directly from the fair value revaluation of the investment property and other local tax adjustments (e.g., local tax depreciation charges, non-capitalisation of certain items, foreign exchange impact given that tax value is recorded in local currency, etc.) which diminishes the tax value of the investment property. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25333": {
"value": "The Group rents its investment property under operating leases of various expiry terms. The standard terms of the leases comprise information relating to leased space, rent, rights and obligations of the landlord and tenant, including notice periods, renewal options and service charge arrangements. For most of the leases, the rent is indexed annually, over the term of the leases. Most retail leases have turnover rent clauses, which imply that if the agreed percentage of turnover from the retail unit under lease exceeds the base rent, the tenant will pay the di\ufb00erence to the Group. A proportion of 4.4% (\u20ac18,758 thousand) of the Gross rental income is represented by the turnover rent (paid on top of \ufb01xed rent) as at 31 December 2022 (31 December 2021: 3.1% (\u20ac11,491 thousand). Lease incentives represent the non-recurring amount granted (in cash or as \ufb01t-out works) by the Group, to a new or an existing tenant, in connection with a new or renewed lease. Lease incentives are straight-lined over the lease term. The lease term corresponds to the contractual duration for the majority of the leases, except for the anchor tenants, for which the lease duration is assessed by the Group based on past experience and taking into account factors such as: GLA of the property where the anchor tenant is located, catchment area, dominance/competition in the catchment area or purchasing power. The future minimum lease payments receivable under non-cancellable operating leases are detailed below: in \u20ac thousand 31 Dec 2022 31 Dec 2021 No later than 1 year 397,217 359,971 Between 1-2 years 307,032 294,789 Between 2-3 years 221,625 225,156 Between 3-4 years 150,927 154,503 Between 4-5 years 93,167 97,318 Later than 5 years 147,887 165,611 TOTAL 1,317,855 1,297,348 The breakdown of the net rental and related income by country is disclosed in Note 37. 4.21 Revenue Revenue is recognised at the fair value of the consideration received or receivable. Revenue comprises rental and related income and recovery of expenses, excluding VAT. Rental income Rental income receivable from operating leases is recognised on a straight-line basis over the duration of the lease, except for variable lease payments which are recognized when they arise. Service charges income from tenants Revenue from service and property management charges is recognised in the accounting period in which control of the services are passed to the customer, which is when the service is rendered. For certain service contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services. As speci\ufb01ed in the lease agreements, the Group has the primary responsibility for providing services to tenants (electricity, water and gas utilities, interior and exterior cleaning, security, maintenance, repairs, etc). The Group has determined that these services constitute distinct non-lease components (transferred separately from the right to use the underlying asset) and are within the scope of IFRS 15. The Group allocates the consideration in the contract to the separate lease and revenue (non-lease) components on a relative stand-alone selling price basis. In respect of the revenue component, these services represent a series of daily services that are individually satis\ufb01ed over time because the tenants simultaneously receive and consume the bene\ufb01ts provided by the Group. The Group applies the time elapsed method to measure progress. The Group negotiates directly with the suppliers all contracts for services provided to tenants. These contracts are concluded between the Group subsidiaries which own the properties and the direct supplier. As the Group sometimes uses the same providers for services across most of its portfolio, it can negotiate better prices through the economies of scale. The Group is considered principal in these transactions, in terms of the IFRS 15 requirements. The Group negotiates and pays all expenses incurred by the tenants and then re-invoices these costs to them as de\ufb01ned in the contractual clauses included in the lease agreements. A \ufb02at fee is charged monthly during the year. This fee is estimated based on the previous year\u2019s actual costs, with an annual service charge reconciliation performed based on current year\u2019s actual costs incurred by the Group. For contracts terminated during the year, the Group estimates the service charge to be collected based on the current budget and last year\u2019s actual costs. Covid-19 pandemic discounts Reduction of gross rental income Since the beginning of the pandemic, the Polish Government imposed a rent-free period for tenants, including service charge and marketing costs, during the state of emergency/lockdowns. This relief, which was legally enforced and implemented without changes to the lease contracts with tenants, has been recognised in the Statement of comprehensive income, as a reduction of Gross rental income and Service charge income and as a decrease of Trade and other receivables, in the Consolidated Statement of \ufb01nancial position. In some instances, the Group agreed to variable discounts contingent upon tenants\u2019 performance falling below a certain threshold, which has been recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income (negative variable rent). Partial forgiveness of receivables In the context of trading restrictions, the Group granted voluntary rental concessions during lockdowns periods, and/ or immediately following a lockdown. For the period up to the signing of lease modi\ufb01cations, the receivables already accrued in accordance with the in-force lease agreements have been partially written-o\ufb00 in accordance with the signed addendums, and therefore their \ufb01nancial impact was recognised immediately and not straight-lined over the new lease term. As such, tenant concessions granted before the signing of lease modi\ufb01cations were fully accounted for in the Consolidated Statement of comprehensive income as \u201cPartial forgiveness of receivables (Covid-19 Forgiveness)\u201d, and \u201cTrade and other receivables\u201d in the Consolidated Statement of \ufb01nancial position, in accordance with IFRS 9 \u201cFinancial Instruments\u201d (in relation to impairment of receivables). The accounting treatment is in accordance with IFRS 16, which allows rental income to be recognised even if recoverability is uncertain. Contractually agreed and signed modi\ufb01cations subject to straight-lining from the e\ufb00ective date of the modi\ufb01cation Contractually agreed and signed concessions granted to, and obtained from, tenants are treated according to IFRS 16 \u201cLeases\u201d. IFRS 16 de\ufb01nes \u201clease modi\ufb01cation\u201d as a change in scope, or consideration, of the lease, not part of the original terms and conditions, such as rent discounts, lease extensions, increase in variable rent (overage/turnover), introduction of break options, etc. Lease modi\ufb01cations are recognised prospectively over the new lease term and accounted for by the Group from the date the modi\ufb01cation is contractually agreed and signed by both parties. Agreed lease modi\ufb01cations are recognised as lease incentives from the date the modi\ufb01cation was signed. Such modi\ufb01cations are straight-lined over the new lease term and recognised in the Consolidated Statement of comprehensive income as a reduction of Gross rental income. 27. NET RENTAL AND RELATED INCOME in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gross rental income 422,051 369,395 Service charge income 199,812 167,324 Gross rental and service charge income 621,863 536,719 Property management fees, tax, insurance and utilities (138,651) (102,605) Property maintenance cost (80,077) (70,752) Net expected credit (losses)/gains (660) 1,294 Property operating expenses (219,388) (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) 2,090 (17,765) TOTAL NET RENTAL AND RELATED INCOME 404,565 346,891 37. SEGMENT REPORTING Segment results 31 Dec 2022 in \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 414,712 5,375 1,964 - - 422,051 Service charge income 197,396 2,060 356 - - 199,812 Property operating expenses (216,326) (2,460) (602) - - (219,388) Partial forgiveness of receivables (Covid-19 forgiveness) 2,097 (7) - - - 2,090 Net rental and related income 397,879 4,968 1,718 - - 404,565 Administrative expenses (14,857) (363) (77) (212) (14,872) (30,381) Reversal of/(expenses) with litigation claim - - - - 21,304 21,304 EBIT* 383,022 4,605 1,641 (212) 6,432 395,488 Fair value adjustments of investment property 142,975 (1,421) 147 - - 141,701 Foreign exchange (loss)/gain 1,722 (1) 3 27 (166) 1,585 Gain on disposal of assets held for sale - - - - 1,121 1,121 Pro\ufb01t before net \ufb01nance costs and other items 527,719 3,183 1,791 (185) 7,387 539,895 Finance income 3,511 3,511 Finance costs (56,802) (56,802) Bank charges, commissions and fees (4,298) (4,298) Fair value adjustments of derivatives 37,946 37,946 Losses on extinguishment of \ufb01nancial instruments (21,925) (21,925) Share of pro\ufb01t of Joint Ventures 3,280 3,280 Pro\ufb01t/(Loss) before tax (30,901) 501,607 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses) Segment results 31 Dec 2021 \u20ac thousand Retail O\ufb03ce Industrial Residential Corporate and unallocated items Total Gross rental income 362,321 5,310 1,764 - - 369,395 Service charge income 165,129 1,853 342 - - 167,324 Property operating expenses (169,649) (1,963) (451) - - (172,063) Partial forgiveness of receivables (Covid-19 forgiveness) (17,753) (12) - - - (17,765) Net rental and related income** 340,048 5,188 1,655 - - 346,891 Administrative expenses (12,939) (328) (60) (153) (11,185) (24,665) Expenses with litigation claim - - - - (37,304) (37,304) EBIT* 327,109 4,860 1,595 (153) (48,489) 284,922 Fair value adjustments of investment property 36,592 (3,299) 1,321 36 - 34,650 Foreign exchange (loss)/gain (1,008) (12) (26) (3) 114 (935) Gain on disposal of assets held for sale - - - - 1,995 1,995 Pro\ufb01t/(Loss) before net \ufb01nance costs and other items 362,693 1,549 2,890 (120) (46,380) 320,632 Finance income 1,423 1,423 Finance costs (62,649) (62,649) Bank charges, commissions and fees (4,496) (4,496) Fair value adjustments of derivatives 5,174 5,174 Share of pro\ufb01t of Joint Ventures 1,902 1,902 Pro\ufb01t/(Loss) before tax (105,026) 261,986 *EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses). **Out of the total Net rental and related income associated to the Retail segment, \u20ac2.5 million relates to the two Serbian properties disposed of on 12 July 2021. The Group\u2019s geographical breakdowns per country are detailed below: Country results 31 Dec 2022 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 158,182 305,661 2,441,758 Poland 80,371 59,623 1,802,833 Slovakia** 35,064 32,496 523,283 Hungary 35,101 25,086 585,900 Bulgaria 40,525 49,465 505,543 Croatia 20,978 28,733 272,490 Serbia 12,138 16,530 137,100 Lithuania 10,762 17,388 152,030 Czech Republic 11,444 11,909 175,200 Corporate* - (45,284) - Total 404,565 501,607 6,596,137 *The Corporate segment represents head o\ufb03ce and administrative o\ufb03ces **Investment property excludes held for sale portfolio. Country results 31 Dec 2021 \u20ac thousand Net rental and related income Pro\ufb01t/(Loss) before tax Investment property Romania** 140,186 173,326 2,081,853 Poland 62,728 40,071 1,426,810 Slovakia 32,075 35,490 531,485 Hungary 30,823 27,663 590,200 Bulgaria 30,220 35,991 493,765 Croatia 19,238 20,615 264,190 Serbia^ 12,723 13,824 134,778 Lithuania 9,740 10,483 144,095 Czech Republic 9,158 9,823 174,500 Corporate* - (105,300) - Total 346,891 261,986 5,841,676 *The Corporate segment represents head o\ufb03ce, administrative o\ufb03ces, and listed securities entity disposed of in May 2021 ** Investment property excludes held for sale portfolio ^ Out of the total Net rental and related income for 2021, \u20ac2.5 million relates to the two Serbian properties (disposed of on 12 July 2021). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25377": {
"value": "28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Sta\ufb00 costs The sta\ufb00 costs of the period have been revised and adjusted for in\ufb02ation, increases in minimum and average wages in CEE, in order for the Company to remain competitive in the market. Moreover, for better managing the business, the Company strengthened its internal Group\u2019s organisational structure, in the area of environmental, social and corporate governance (ESG) function and the newly created procurement function. As a result of the relocation to Netherlands, the Company terminated its labour relationship with its employees in the Isle of Man. Starting the last quarter of 2021, the Group embarked on a partial internalisation of property management and selected accounting activities in countries such as Poland, Lithuania, Czech Republic and Hungary, leading to a net increase in the sta\ufb00 costs for the period of \u20ac320 thousand. These expenses overcompensated for the fees with third parties included in the Net Operating Income. The full internalisation of property management activities and accounting in the above-mentioned countries is planned to be completed by mid- 2024, with envisaged improvement of the overall Group performance. Advisory services In the year ended 31 December 2022, the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. Relocation costs During 2022, the relocation of the parent Company from the Isle of Man to Netherlands via Luxembourg as steppingstone was approved by shareholders, with the majority of the implementation already in place. The relocation costs for the period amounted to \u20ac1.6 million (included in the Advisory services). Out of the above administrative expenses, fees related to EY, as the Group\u2019s current auditors and PwC, as the Group\u2019s previous auditor, are summarised below: 31 Dec 2022 in \u20ac thousand Ernst & Young Accountants LLP Other EY network Non-EY network Audit of \ufb01nancial statements (300) (1,143) (96) Other assurance procedures - (177) (24) TOTAL (300) (1,320) (120) in \u20ac thousand 31 Dec 2021 Audit fees (1,138) Other assurance services (180) TOTAL (1,318) ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25378": {
"value": "28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Sta\ufb00 costs The sta\ufb00 costs of the period have been revised and adjusted for in\ufb02ation, increases in minimum and average wages in CEE, in order for the Company to remain competitive in the market. Moreover, for better managing the business, the Company strengthened its internal Group\u2019s organisational structure, in the area of environmental, social and corporate governance (ESG) function and the newly created procurement function. As a result of the relocation to Netherlands, the Company terminated its labour relationship with its employees in the Isle of Man. Starting the last quarter of 2021, the Group embarked on a partial internalisation of property management and selected accounting activities in countries such as Poland, Lithuania, Czech Republic and Hungary, leading to a net increase in the sta\ufb00 costs for the period of \u20ac320 thousand. These expenses overcompensated for the fees with third parties included in the Net Operating Income. The full internalisation of property management activities and accounting in the above-mentioned countries is planned to be completed by mid- 2024, with envisaged improvement of the overall Group performance. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25380": {
"value": "28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Advisory services In the year ended 31 December 2022, the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. 40. RELATED PARTY TRANSACTIONS Identity of related parties with whom material transactions have occurred The Directors and jointly controlled entities are related parties for the Group. Material related party transactions Fees paid to Directors, together with the performance bonus, during the current and previous year are detailed below. No other payments were made to Directors by NEPI Rockcastle, except reimbursements for travel and accommodation. Transactions with joint ventures are presented in Note 36. 31 Dec 2022 31 Dec 2021 in \u20ac thousand Directors\u2019 fees 2022 performance related remuneration 2021 performance related remuneration Interim period related remuneration (one o\ufb00) Directors\u2019 fees 2020 performance related remuneration R\u00fcdiger Dany 1 517 870 200 200 202 - Eliza Predoiu 2 253 490 - 150 - - Marek Noetzel 3 329 518 225 - 300 30 Alex Morar 4 188 - - - 600 60 Mirela Covasa 5 147 - - - 400 40 Robert Emslie 6 * - - - - 78 - George Aase 7 * 102 - - - 113 - Antoine Dijkstra* 88 - - - 104 - Andre van der Veer* 98 - - - 116 - Andreas Klingen* 89 - - - 103 - Steven Brown 75 - - - 84 - Andries de Lange 63 - - - 74 - Jonathan Lurie 8 68 - - - 25 - Ana Maria Mihaescu 9 74 - - - 27 - TOTAL 2,091 1,878 425 350 2,226 130 1 Mr. R\u00fcdiger Dany was appointed as Executive Director and Chief Operating O\ufb03cer of the Group with e\ufb00ect from 18 August 2021. From 1 February 2022 he was appointed as interim CEO and from 1 June 2022 he was con\ufb01rmed in his role on a permanent basis. 2 Ms. Eliza Predoiu was appointed as interim CFO of the Group with e\ufb00ect from 1 February 2022 and from 1 June 2022 she was con\ufb01rmed in her role on a permanent basis. 3 Mr. Marek Noetzel, an Executive Director of the Group, was appointed as Chief Operating O\ufb03cer e\ufb00ective from 1 June 2022. 4 Mr. Alex Morar resigned from his position of Chief Operating O\ufb03cer e\ufb00ective from 1 February 2022. The fees for 2022 include a non-compete compensation of \u20ac120 thousand. 5 Ms Mirela Covasa resigned from her position of Chief Financial O\ufb03cer e\ufb00ective from 1 February 2022. The fees for 2022 include a non-compete compensation of \u20ac100 thousand. 6 Mr Robert Emslie has retired from his position as non-Executive Director and Chairman of the Board of Directors e\ufb00ective 18 August 2021. 7 Mr. George Aase was appointed as Chairman of the Board of Directors e\ufb00ective 18 August 2021. 8 Mr. Jonathan Lurie was appointed as an Independent non-Executive Director with e\ufb00ect from 18 August 2021. 9 Ms. Ana Maria Mihaescu was appointed as an Independent non-Executive Director with e\ufb00ect from 18 August 2021. *The remuneration of the non-Executive Directors for the year includes a cumulative amount of \u20acnil thousand (2021: \u20ac107 thousand) paid for one-o\ufb00 services performed during the previous year. a. Shares held under the Share Purchase Schemes^: Name of Director Number of shares held as at 31 Dec 2022 Number of shares held as at 31 Dec 2021 Marek Noetzel 88,358 88,358 TOTAL 88,358 88,358 ^Shares presented in the table above are pledged as security for the loan under Share Purchase Scheme. b. Shares unvested under the LTSIP Name of Director Number of shares unvested at 31 Dec 2022 Number of shares unvested at 31 Dec 2021 R\u00fcdiger Dany 137,945 - Eliza Predoiu 22,000 16,966 Marek Noetzel 78,394 93,995 TOTAL 238,339 110,961 As a result of the exit arrangements signed with the former CEO and CFO during 2021, the Company transferred to them 299,587 shares and 214,053 shares respectively, representing the total number of unvested shares as at exit date from the previous 2017 \u2013 2021 awards. The shares have an associated selling restriction correlated with the initial vesting of each tranche. The Group accounted for the related expense associated with this transfer in the 2021 \ufb01nancial statements. The share based payment expense related to the directors of the Group amounted to \u20ac262 thousand in 2022 (31 December 2021: \u20ac4,325 thousand). The directors of the Group hold 739,612 shares as at 31 December 2022 (31 December 2021: 2,356,717 shares), which represents 0.12% of the outstanding shares (31 December 2021: 0.38% of the outstanding shares). Out of the above- mentioned shareholding, 283,397 shares (31 December 2021: 130,297 shares) which represent 0.05% of the outstanding shares (31 December 2021: 0.02% of the outstanding shares) are held by the non-executive directors. There were no changes to the Director\u2019s interests from 31 December 2022 to the approval of the annual audited Consolidated Financial Statements. Other than as set out in note 40(a) above, none of the shares of the Director are subject to security, guarantee, collateral and they are not encumbered in any way. c. Advisory services As mentioned in note 28, \u201cAdministrative expenses\u201d, in 2022 the Group incurred advisory fees of \u20ac2 million with companies which are related parties of former management. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25381": {
"value": "28. ADMINISTRATIVE EXPENSES in \u20ac thousand 31 Dec 2022 31 Dec 2021 Sta\ufb00 costs* (10,671) (8,135) Directors\u2019 remuneration (Note 40) (4,744) (2,356) Advisory services (7,683) (4,007) Audit and other assurance services (1,740) (1,138) Companies\u2019 administration (2,459) (2,297) Travel and accommodation (1,015) (311) Stock exchange expenses (597) (482) Share based payment expense (1,472) (5,050) Transaction fees - (889) TOTAL (30,381) (24,665) *Sta\ufb00 costs capitalised on investment property under development and inventory property in 2022 amount to \u20ac1,947 thousand (2021: \u20ac1,805 thousand). Out of the above administrative expenses, fees related to EY, as the Group\u2019s current auditors and PwC, as the Group\u2019s previous auditor, are summarised below: 31 Dec 2022 in \u20ac thousand Ernst & Young Accountants LLP Other EY network Non-EY network Audit of \ufb01nancial statements (300) (1,143) (96) Other assurance procedures - (177) (24) TOTAL (300) (1,320) (120) in \u20ac thousand 31 Dec 2021 Audit fees (1,138) Other assurance services (180) TOTAL (1,318) ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25471": {
"value": "29. EXPENSES WITH LITIGATION CLAIM in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gain from reversal of/ (expenses) with litigation claim 21,304 (37,304) In October 2017, one of the Group's subsidiaries entered into an agreement in relation to the conditional acquisition of an operating shopping centre and a related development, Serenada and Krokus Shopping Centres in Poland. On 1 January 2019, upon the lapse of the respective transaction's long stop date, the subsidiary noti\ufb01ed the counterparty that it had exercised its right to terminate the transaction as the long stop date had passed and certain conditions precedent had not been met. The counterparty consequently initiated arbitration proceedings against the Group, claiming a contractual penalty in the amount of \u20ac30 million. On 31 January 2022, the Group was informed by the Arbitral Tribunal that the arbitrators ordered that the Group is liable to pay the contractual penalty of \u20ac30 million plus accumulated interest and arbitration expenses. A litigation provision expense was previously recognised as a result in the 2021 \ufb01nancial statements for the amount of \u20ac37,304 thousand. Following negotiations between the Company and the counterparty to the initial transaction, the parties agreed on 23 November 2022 on an amicable settlement. Pursuant to the settlement, the Group paid to the counterparty an amount of \u20ac16 million and the parties have reciprocally waived, de\ufb01nitely and irrevocably, all and any present and potential rights and claims arising out of or in connection with the initial purchase transaction and Arbitral Tribunal award. As a result, a gain from the reversal of the di\ufb00erence between the initially provided amount and the settled amount of \u20ac21,304 thousand was recognised in the 2022 \ufb01nancial statements. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25472": {
"value": "29. EXPENSES WITH LITIGATION CLAIM in \u20ac thousand 31 Dec 2022 31 Dec 2021 Gain from reversal of/ (expenses) with litigation claim 21,304 (37,304) In October 2017, one of the Group's subsidiaries entered into an agreement in relation to the conditional acquisition of an operating shopping centre and a related development, Serenada and Krokus Shopping Centres in Poland. On 1 January 2019, upon the lapse of the respective transaction's long stop date, the subsidiary noti\ufb01ed the counterparty that it had exercised its right to terminate the transaction as the long stop date had passed and certain conditions precedent had not been met. The counterparty consequently initiated arbitration proceedings against the Group, claiming a contractual penalty in the amount of \u20ac30 million. On 31 January 2022, the Group was informed by the Arbitral Tribunal that the arbitrators ordered that the Group is liable to pay the contractual penalty of \u20ac30 million plus accumulated interest and arbitration expenses. A litigation provision expense was previously recognised as a result in the 2021 \ufb01nancial statements for the amount of \u20ac37,304 thousand. Following negotiations between the Company and the counterparty to the initial transaction, the parties agreed on 23 November 2022 on an amicable settlement. Pursuant to the settlement, the Group paid to the counterparty an amount of \u20ac16 million and the parties have reciprocally waived, de\ufb01nitely and irrevocably, all and any present and potential rights and claims arising out of or in connection with the initial purchase transaction and Arbitral Tribunal award. As a result, a gain from the reversal of the di\ufb00erence between the initially provided amount and the settled amount of \u20ac21,304 thousand was recognised in the 2022 \ufb01nancial statements. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25532": {
"value": "31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. 36. JOINT VENTURES Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f25533": {
"value": "31 NET FINANCE COSTS in \u20ac thousand 31 Dec 2022 31 Dec 2021 Interest income on loans granted to joint ventures 889 1,282 Interest on Loan to participants under Share Purchase Scheme 100 115 Interest on bank deposits 2,522 26 Finance income 3,511 1,423 Bonds borrowing costs* (51,941) (55,957) Interest expense on bank borrowings (7,204) (8,377) Interest expense on borrowings from third parties (Note 22, 23) (593) (926) Interest expense on lease liabilities (Note 24) (577) (582) Interest expense capitalised on developments and inventory property 3,513 3,193 Finance costs (56,802) (62,649) Bank charges, commissions, and fees (4,298) (4,496) TOTAL (57,589) (65,722) * Bonds borrowing costs include coupon, amortisation of borrowing costs and debt discount, using the e\ufb00ective interest approach. 36. JOINT VENTURES Shareholder loans to Ploiesti Shopping City were granted by NE Property B.V. Interest income from joint ventures in 2022 (period until Ploiesti Shopping City was still a joint venture) amounted to \u20ac889 thousand (2021: \u20ac1,282 thousand). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27042": {
"value": "39. GUARANTEES HELD AND COMMITMENTS Guarantees As at 31 December 2022, the Group had received letters of guarantee from tenants worth \u20ac108,406 thousand (31 December 2021: \u20ac107,078 thousand) and from suppliers worth \u20ac62,692 thousand (31 December 2021: \u20ac16,351 thousand) related to ongoing developments. Commitments In 2023, the Group estimates to invest \u20ac223 million in development and capital expenditure related to its ongoing projects or new development opportunities, out of which only a portion is already contracted at reporting date. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27043": {
"value": "39. GUARANTEES HELD AND COMMITMENTS Commitments In 2023, the Group estimates to invest \u20ac223 million in development and capital expenditure related to its ongoing projects or new development opportunities, out of which only a portion is already contracted at reporting date. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f27287": {
"value": "41. SUBSEQUENT EVENTS Subsequent to the year-end, the Group signed a secured green portfolio \ufb01nancing of \u20ac200 million for a 5-year term. The disbursement of the loan, subject to conditions precedent, is expected to occur by the end of April 2023. The funding has been secured for a competitive pricing, in the current market conditions, by reference to Euribor rates. The proceeds will be used for debt repayment (revolving credit facilities) and general corporate purposes. The Directors are not aware of any other subsequent events from 31 December 2022 and up to the date of signing these Consolidated Financial Statements which are likely to have a material e\ufb00ect on the \ufb01nancial information contained in this report. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:549300FMWM53K9ULYT15",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"footnote2x22x0": {
"value": "^ Share premium movement \u2013 In June 2021, the Group transferred \u20ac1,500,000 thousand from share premium to accumulated pro\ufb01t. After a thorough reassessment, the Company decided to maintain the reserves as they were accounted for previously to the transfer from June, and thus, unwound the respective transfer in December 2021. ",
"dimensions": {
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"noteId": "footnote2x22x0",
"language": "en"
}
},
"footnote2x21x0": {
"value": "*LTSIP = debt free Long-Term Share Incentive Plan with a vesting component. ",
"dimensions": {
"concept": "xbrl:note",
"noteId": "footnote2x21x0",
"language": "en"
}
},
"footnote2x23x0": {
"value": "^^ During 2022, \u20ac350,000 thousand were transferred from share premium to accumulated pro\ufb01t, to ensure positive retained earnings at stand-alone parent Company level. ",
"dimensions": {
"concept": "xbrl:note",
"noteId": "footnote2x23x0",
"language": "en"
}
},
"footnote0x50x0": {
"value": "***EPRA Net Reinstatement Value per share (non-IFRS measure) is Net Asset Value per share adjusted for the e\ufb00ect of non-monetary balance sheet items, such as deferred tax, goodwill and interest rate derivatives. ",
"dimensions": {
"concept": "xbrl:note",
"noteId": "footnote0x50x0",
"language": "en"
}
},
"footnote1x36x0": {
"value": "**EBIT (Earnings Before Interest and Taxes) represents the Group's Operating pro\ufb01t, de\ufb01ned as Net rental and related income less Administrative expenses (Depreciation and Amortisation are included in Administrative expenses) ",
"dimensions": {
"concept": "xbrl:note",
"noteId": "footnote1x36x0",
"language": "en"
}
},
"footnote0x49x0": {
"value": "** At 31 December 2021, \u201cProvisions for litigations\u201d (with a carrying amount of \u20ac37,304 thousand) were presented in line \u201cTrade and other payables\u201d. At 31 December 2022, these are presented on a separate line, with corresponding comparative re-classi\ufb01ed accordingly, to enhance presentation. ",
"dimensions": {
"concept": "xbrl:note",
"noteId": "footnote0x49x0",
"language": "en"
}
},
"footnote1x35x0": {
"value": "* Out of the total Net rental and related income for 2021, \u20ac2.5 million relates to the two Serbian properties (disposed of on 12 July 2021). ",
"dimensions": {
"concept": "xbrl:note",
"noteId": "footnote1x35x0",
"language": "en"
}
},
"footnote0x48x0": {
"value": "*At 31 December 2021, \u201cLease liabilities\u201d (with a carrying amount of \u20ac33,612 thousand) were presented in line \u201cOther long-term liabilities\u201d. At 31 December 2022, these are presented on separate lines within \"Non-current liabilities\" (long-term portion) and \u201cCurrent liabilities\u201d (short-term portion), with corresponding comparatives re-classi\ufb01ed accordingly, to enhance presentation. ",
"dimensions": {
"concept": "xbrl:note",
"noteId": "footnote0x48x0",
"language": "en"
}
}
}
}