ABRIDGED UNAUDITED CONSOLIDATED RESULTS FOR THE SIX AND TWELVE MONTHS ENDED 30 JUNE 2025

Grit Real Estate Income Group Limited, a leading Pan-African real estate company focused on investing in, developing and actively managing a diversified portfolio of assets underpinned by predominantly US Dollar and Euro denominated long-term leases with high quality multi-national tenants, today announces its unaudited results for the six and twelve months ended 30 June 2025.

Bronwyn Knight, Chief Executive Officer of Grit Real Estate Income Group Limited, commented:

“Grit’s performance reflects persistent macroeconomic headwinds, particularly policy changes in the United States that have triggered capital outflows from emerging markets. These shifts have tightened liquidity conditions and disrupted demand-supply dynamics across the continent, prompting a widespread reassessment of real estate valuations and exerting downward pressure on distributable earnings.

Investor sentiment remained cautious, with subdued appetite widening bid-ask spreads and delaying the Group’s asset recycling programme. Elevated finance costs further constrained free cash flow, contributing to covenant-related liquidity pressures.

Despite these headwinds, Grit remains focused on repositioning the portfolio toward more defensive, higher-yielding asset classes such as diplomatic housing, data centres, light industrial and logistics, and Business Process Outsourcing (BPO) infrastructure, supported by strong tenant demand and long-term sovereign-grade leases.

The Group continues to deliver against key performance indicators within its control by actively mitigating exogenous factors to support long-term sustainability, while acknowledging the impact of valuation pressures and constrained distributable earnings in the short term.

It is especially encouraging to note that several initiatives introduced in prior reporting periods are increasingly delivering tangible results. These include a reduction in administration expenses, the maintenance of a long lease profile, strong contractual rental collections and increased portfolio occupancy.

Looking ahead, our diversified footprint - both geographically and across asset classes - continues to position the portfolio defensively, with a substantial portion of income secured through long-term hard currency leases. This solid foundation enables Grit to provide a degree of income stability in an otherwise volatile capital environment, while addressing balance sheet constraints through disciplined capital recycling and asset management initiatives.”

Financial and Portfolio highlights

Notes

Summarised results commentary:

The sustained high interest rate environment continued to weigh on African real estate markets, dampening investor appetite and constraining asset pricing negotiations. Elevated inflation added further pressure on consumers, contributing to broad-based valuation headwinds across the sector.

For Grit, the elevated cost of capital delayed progress on its asset disposal programme, while increased finance costs and downward property revaluations placed strain on covenant metrics - most notably the Group’s interest cover ratio. While funder support remains intact, the Group is actively evaluating strategic options to optimise its capital structure and establish a more resilient, liquid, and growth-oriented platform.

As a result, and as previously guided, the Group adopted a prudent approach to business operations, prioritising tenant retention and lease security amid a slowdown in corporate expansion. The Group continues to benefit from its quality portfolio with leading ESG credentials, increasing portfolio occupancy for the six months ended 30 June 2025 by 2.2% to 92.0% year-on-year, with 91.7% of income produced in US dollar, Euro or pegged currencies. 84.7% of revenue is earned from multinational tenants (30 June 2024: 85.4%).

In the context of the current operating environment, the Group balanced longer-term lease renewals with reversionary rates, maintaining a weighted average lease profile of 4.6 years (30 June 2024: 5.2 years). Strong focus on contractual rental collections was maintained, with an average collection rate of 91.3%, a 0.2% increase on the prior year comparative period.

The Group’s strategic pivot toward more defensive, higher-yielding asset classes - including Business Process Outsourcing (BPO) infrastructure, data centres, light industrial and logistics facilities, and diplomatic housing - was tempered by constrained access to development capital, despite a robust committed pipeline and strong co-investor support.

Nevertheless, during the review period, Grit advanced its sector-focused development strategy through the establishment of Africa’s largest embassy accommodation platform. The consolidated entity, DH Africa, represents a scaled and specialist vehicle designed to better serve diplomatic clients, including the US Government and other sovereign stakeholders.

This enhanced platform not only expands Grit’s exposure to resilient, income-generating assets but also unlocks additional revenue streams through development fees and asset management income.

Property values, based on Grit’s proportionate share of the total portfolio, including joint ventures, contracted by 1.8% over the 12-month period ended 30 June 2025 to US$857.6 million (30 June 2024: US$873.0 million). The reduction was primarily as a result of negative fair value adjustments of US$43.8 million, a 5.0% decrease, offset by positive foreign currency movements of US$14.9 million and the consolidation of Rosslyn Grove diplomatic housing (DH3) development in Kenya.

The Group’s proportionate Property Portfolio Net Operating Income (NOI) declined by 7.1% over the comparative six-month period to 30 June 2025, but recorded a 1.1% increase over the 12-month period ended 30 June 2025. This year-on-year increase was offset by a US$9.6 million impact as a result of changes in non-controlling interests, stemming from the June 2024 disposal of Bora Africa Group to Gateway Real Estate Africa Limited (“GREA”), reducing Grit’s effective ownership from 100% to 53.24%. NOI came under further pressure as a result of rental reversions to secure key long-term lease renewals and lease concessions granted, particularly within the retail sector.

For the six months to 30 June 2025, EPRA net reinstatement value (“NRV”) declined by US$9.5 cents per share to US$48.4 cents per share (30 June 2024: US$57.9 cents per share), mainly due to the decrease in the fair value adjustment made on investment properties during the period. This follows continued downward pressure on market rental rates as a result of rising inflation and unemployment, increased import duties and consumer pressure. This material contraction reflects broader valuation headwinds across African real estate markets, especially retail, and signals continued NAV pressure amid persistent inflation and global interest rate volatility

The IFRS NAV concomitantly contracted meaningfully over the reporting period, reflecting the broader valuation pressures across African real estate markets. As at 30 June 2025, IFRS NRV declined to US$35.5 cents per share, down from US$43.9 cents per share in the prior year.

Despite these valuation challenges, Grit’s NRV remains underpinned by a portfolio of income-producing assets valued at US$988.8 million, with 91.7% of revenue earned in hard or pegged currencies and 84.7% derived from multinational tenants. The Group’s disciplined approach to capital recycling, lease renewals, and cost containment has helped mitigate the impact of external pressures, while its strategic pivot toward defensive asset classes and sovereign-grade leases provides a foundation for long-term value recovery.

During the twelve-month period ended 30 June 2025, administrative expenses reported under IFRS declined by 1.4% year-on-year, despite the full-year consolidation of costs from the Group’s project development arm Africa Property Development Managers Limited (“APDM”), totalling US$4.0 million. Excluding the consolidation of APDM, underlying administrative expenses decreased by 13.9% year-on-year, reflecting improved operational efficiency.

For the six-month period ended 30 June 2025, administrative expenses under IFRS fell by 9.7% year-on-year. Adjusting for APDM-related costs, the decline was even more pronounced at 21.6%, highlighting the tangible impact of the Group’s targeted savings initiatives.

Administrative expenses as a percentage of total income-producing assets reduced to 1.26% for the six months ended 30 June 2025, down from 1.63% for the prior comparable period. This is closely aligned with the Group’s near-term target of 1.25%

The weighted average cost of debt for the Group, reduced to 9.41% at 30 June 2025, down from 10.00% in the prior 12-month comparative period. For this period, finance charges increased by 20.8% mainly due to the full twelve- month impact of finance costs associated with the acquisition of GREA (the comparative period reflected a seven- month impact following GREA’s consolidation on 30 November 2023. Despite higher borrowings, the impact was partially mitigated by marginal reductions in global interest rates and the strategic use of interest rate derivatives.

During the six-month period ended 30 June 2025, finance charges increased by 3.3% versus the comparable period, primarily due to increased borrowings.

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NOTES:

Grit Real Estate Income Group Limited is the leading Pan-African real estate company focused on investing in, developing and actively managing a diversified portfolio of assets in carefully selected African countries (excluding South Africa). These high-quality assets are underpinned by predominantly US$ and Euro denominated long-term leases with a wide range of blue-chip multi-national tenant covenants across a diverse range of robust property sectors. The Company is committed to delivering strong and sustainable income for shareholders, with the potential for income and capital growth. The Company holds its primary listing on the Main Market of the London Stock Exchange (LSE: GR1T and a secondary listing on the Stock Exchange of Mauritius (SEM: DEL.N0000).

Further information on the Company is available at www.grit.group.

Directors:

Peter Todd (Chairman), Bronwyn Knight (Chief Executive Officer) *, Gareth Schnehage (Chief Financial Officer) *, David Love+, Catherine McIlraith+, Cross Kgosidiile, Lynette Finlay + and Nigel Nunoo+.

(* Executive Director) (+ independent Non-Executive Director)

Company secretary: Intercontinental Fund Services Limited

Corporate service provider: Mourant Governance Services (Guernsey) Limited

Registered office address: PO Box 186, Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey GY1 4HP

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