Letters

RESILIENT
PORTFOLIO

€359 M

GAV Dic’23¹
+22% on
total investment

+14,500 m²

Redevelopments completed
+25,000 sqm ongoing

109,336 sqm

Leasable area in
9 assets

RECYCLING
CAPITAL

2 acquisitions

c. €45 M in offices in
Madrid², both off-market
opportunities

1 divestment

Stabilised asset
sale completed in 4Q23

FURTHER
UPSIDE
POTENTIAL

≈6.5%

Expected yield on cost
in current portfolio

+90%

Organic growth
potential³

100%

LEED & BREEAM certified
2025

FINANCIAL
DISCIPLINE

c.€12.1M€

Annualised GRI
+33% 12-m LfL⁴

19.20%

NET LTV

€11.3 p.a.

EPRA NTA per share⁶
+17% since IPO

2.0%

All-in cost⁵

ESG
LEADERSHIP

92%

LEED & BREEAM
certified⁷

★★★★

GRESB (Global Real Estate
Sustainability Benchmark)

Gold

EPRA sBRP
Highest rating

100%

Green financing

Based on the external independent valuation carried out by CBRE Valuation Advisory (RICS) as of 31 December 2023.
One office property acquired in Madrid in H1 2023 totaling €29.75 million, a second office property secured through a promise to purchase agreement signed at year-end for an agreed price of €15.3 million.
Rental income upside potential of current portfolio post-capex.
Topped-up annualised passing rental income generated by the investment properties portfolio as of Dec’23 – including Torrelaguna, excluding M39 (sold).
Weighted average; includes spread, upfront costs and hedging, offset by the revenues generated from short-term investments.
In accordance with EPRA Best Practice Recommendations.
In GAV terms. Includes the precertification of Pradillo and the renewal of Torrelaguna’s LEED in 2024.

December 2023

Annual results: portfolio valued at €359m at December 31

Botanic building 100% leased

Off-market corporate agreement secures new accretive acquisition in Madrid

September 2023

Árima renews its Sustainability Gold award: EPRA sBPR

June 2023

Árima portfolio valued at €402M at 30 June 2023

Árima acquires an office building in Madrid

April 2023

Community Engagement Programme

October 2023

María de Molina sale agreement signed

Árima renews rating in 2023 GRESB assessment

Signing of a financing agreement with Abanca for 16 million euros

August 2023

Árima obtains certifications

May 2023

General Shareholders’ Meeting

January 2023

Annual CAPEX plan launched

December 2023

Annual results: portfolio valued at €359m at December 31 Árima announces its results for the 2023 financial year, with the portfolio valuation set at €359m (+22% on total investment). The valuation was carried out by CBRE Valuation Advisory in accordance with RICS (Royal Institution of Chartered Surveyors) valuation standards.

Botanic building 100% leased MSD, world leading multinational biopharmaceutical firm, transfers its headquarters in Spain to Botanic. The company will occupy the 9,902sqm of the property, guaranteeing an additional annual income of 2.5 million euros. The agreement has been formalised for 7 years, with annual CPI indexation1, and the right to an additional 5-year extension.

Off-market corporate agreement secures new accretive acquisition in Madrid With the lease of Botanic, Árima has reached an off-market corporate agreement to acquire MSD’s current headquarters in Spain once vacated2. The asset is a free-standing office building located in a well-established area of Madrid with a strong upside potential. The agreed acquisition price amounts to EUR 15.3 million.

October 2023

María de Molina sale agreement signed The sale was formalised in October 2023 for a price of 30.4 million euros, in line with the valuation of June 2023, following the deposit contract agreed on in July of the same year3. The asset had experienced an average 66% rent uplift on new lettings and renewals and was completely leased.

Árima renews rating in 2023 GRESB assessment The group maintains its ESG leadership. The benchmark index places us at the top of the sector, awarding us 4 stars and 86 points. This recognition confirms the successful incorporation of the latest GRESB requirements into our sustainability strategy.

Signing of a financing agreement with Abanca for 16 million euros The financing agreement with Abanca, for an amount of 16 million euros, will have a duration of 5 years at approximately a 50% loan-to-value (LTV) to finance the Torrelaguna property.

September 2023

Árima renews its Sustainability Gold award: EPRA sBPR The Company once again received the highest accolade from the prestigious organisation EPRA (European Public Real Estate Association), obtaining the GOLD award in recognition of the major advances in sustainability shown throughout the year, and detailed in the 2022 Annual Report.

August 2023

Árima obtains certifications The prestigious sustainable building certification systems have accredited compliance with the highest sustainability standards for 7 of the 8 assets in operation in the Group’s portfolio, representing 89% of their value.

June 2023

Árima portfolio valued at €402M at 30 June 2023 The Group’s Properties achieved value uplift of 25% on the total investment. The portfolio was valued by CBRE Valuation Advisory in accordance with RICS (Royal Institution of Chartered Surveyors) professional valuation standards.

Árima acquires an office building in Madrid The Torrelaguna property, 100% leased, is located in Madrid city centre and has 11,174 sqm of gross leasable area and 303 parking spaces. The purchase price amounted to 29.8 million euros, representing a capital value of 2,663 €/sqm or 1,919 €/sqm adjusted for parking spaces.

May 2023

General Shareholders’ Meeting The General Shareholders’ Meeting held on 23 May 2023 approved all the resolutions included in the Agenda, providing shareholders with all of the related documents prior to the meeting.

April 2023

Community Engagement Programme Árima launched the corporate community engagement programme. Over the course of the year the Company worked with various foundations that carry out important work for society through corporate donations amounting to 67,500 euros.

January 2023

Annual CAPEX plan launched The annual portfolio refurbishment works get underway, involving the properties Dune and Pradillo, as well as the final works in Cadenza.

Share price performance¹

Data re-based for graphical representation (base 10 at 01/01/2023)

LHS:
- Árima
- Comparable companies¹
- Ibex Small Caps
- EPRA EMA
RHS:
- Average daily volume

Our Company

ÁRIMA PRIORITIES

ÁRIMA’S APPROACH

Skilled deal-sourcing

Highly experienced team with deep market knowledge,
long-term view and a history of value creation

Best-in-class space in the
property’s area of influence

Differentiated assets, designed with people in mind

Environmentally conscious

Low carbon repositioning, circularity
and disciplined recycling

Financial strength

Conservative leverage to enhance, not drive,
returns and facilitate future growth

Árima’s success is built on the tried and tested experience of its management team, a group of professionals offering expert knowledge of the real estate market and who work tirelessly to achieve the Company’s objectives and to repeat and improve on the successes of previous projects.

The members of its management team each have over 20 years of experience in the sector and have been working together as a team for several years. This unrivalled expertise allows them to identify high-potential opportunities and create unique workspaces where inspiration thrives and occupiers feel a real sense of belonging, all while ensuring the very best returns for investors. The ultimate goal is to create value for shareholders, offering occupiers spaces that have been designed and executed to the most exacting of standards and that place sustainability and the use of state-of-the-art technology at the heart of their design.

At year-end 2023, the Árima Group comprised three companies

Árima Investments The company joined the Árima Group in 2021 when the acquisition of Pradillo 56 and Pradillo 58 was completed – a highly strategic deal that was closed following the acquisition of Pradillo 54 in 2020.

Árima I+D+i This is the Company that encompasses all initiatives relating to innovation and sustainable development within the Group.

Árima Real Estate SOCIMI It is the Group’s parent company, holding 100% of the shares of its two subsidiaries. It oversees most of the real estate and asset management operations, as well as the refurbishment works of the Dune and Cadenza buildings (works completed during the year) and the management of its occupied properties.

Árima’s current capital structure comprises debt and equity.

Investor location and profile

Spain
Europe
Canada

UK
USA
Others

Real Estate Specialist
Private Wealth Management
Long-only Funds
Management team

Average maturity of outstanding debt at 31/12/2023

Our Asset Portfolio

Árima’s goal is to create value for its shareholders via sustainable projects with the potential to transform. To do this, the Company explores and identifies suitable assets in up-and coming areas, then works to transform them, obtaining the most exacting of environmental certifications and significantly lowering their operational carbon footprints as part of the process. Its extensive experience in the real estate sector makes Árima a point of reference for both tenants and shareholders.

9 assets

8 offices, 1 logistics warehouse

€359.2M

Gross Asset Value

109,336 sqm

Total Gross Leasable Area

+10,500 sqm

In new leases

1

Habana

2

Pradillo

3

Ramírez de Arellano

4

Torrelaguna

5

Botanic

6

Cristalia

7

Cadenza

8

Dune

9

New Asset

10

Guadalix

CBD
Inner Madrid (M30)
A2/M30
Campo de las Naciones
Las Tablas/Manoteras

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PROPERTY TYPE
Offices
LOCATION
Madrid CBD
GLA
4,356 sqm
PARKING SPACES
65 (+25% electric)

DESCRIPTION

A stand-alone Grade A office building located in Madrid’s prime CBD. The property offers a GLA of 4,356 sqm arranged over five floors and features bright, flexible office spaces. Each floor comprises approximately 1,000 sqm, while the property also benefits from a generous roof terrace and 65 underground parking spaces. The property boasts excellent visibility and is ideal for housing a flagship corporate headquarters. Refurbishment works began in H2 2020 and were completed at the end of 2022. This project, the work of architects Fenwick Iribarren, has resulted in a new layout and building entrance, upgraded office and communal spaces, new fixtures and services and improvements to the facade. The main entrance is now at street level to the front of the building, enhancing its visual presence. The refurbishment works were carried out with the highest quality standards and a focus on sustainability. Habana has achieved energy efficiency grade A certification and LEED Gold, WELL Platinum and WELL Health & Safety certifications. The entire property has been let to a single top-tier tenant, who took up occupancy in late 2022.

LOCATION

Located in the northern part of Madrid’s CBD, Habana boasts excellent visibility from Paseo de la Habana and immediate access to Paseo de la Castellana. It offers first-rate transport links, and with Cuzco and Pío XII metro stations just a short walking distance away, it offers a quick connection to Madrid Barajas airport. The M-30 ring road is also easily accessed via Alberto Alcocer. A wide selection of local amenities are within easy reach of the property, with a multitude of shops and restaurants to choose from, as well as a number of schools and hospitals.

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PROPERTY TYPE
Offices
LOCATION
Inner Madrid
GLA
12,760 sqm
PARKING SPACES
283 (+10% electric)

DESCRIPTION

The property was acquired from multiple owners via several complex off-market transactions during 2020 and 2021, a process which gave rise to a large high-potential institutional project in one of Madrid’s best office submarkets close to the CBD. The acquisitions cover a total GLA of 10,225 sqm and offer the possibility of combining the properties to increase the buildable area to approximately 12,760 sqm and the number of parking spaces to 283. Thanks to the negotiation of the early termination of the lease of Pradillo 58, the demolition of the three assets has been completed in 2023. A construction company and the prestigious b720 studio have already been selected for the architectural design. The refurbishment works are expected to be completed in 2025.

LOCATION

Located in north Madrid, close to the CBD. The area, which is home to many tech company headquarters, is also seeing a rapid transformation as a number of new high-end residential schemes are starting to take shape. The Alfonso XIII and Concha Espina metro stations are located within walking distance from the building, providing a quick connection to Madrid Barajas airport, while the M-30 ring road is also easily accessed from the property. A wide selection of local amenities are located just a short distance away from the building, offering a multitude of restaurants and shops, as well as a number of schools and hospitals.

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PROPERTY TYPE
Offices
LOCATION
Inner Madrid
GLA
7,108 sqm
PARKING SPACES
110 (9% electric)

DESCRIPTION

A prime office building designed by architect Rafael de la Hoz in 2008, the property comprises a total of 7,108 sqm arranged over six floors, plus a basement floor housing 110 parking spaces. The property benefits from a double-height lobby and highly efficient, column-free floorplates of over 1,000 sqm. A generous internal courtyard floods 85% of the building’s interior with natural light. It features a curtain wall façade and has a clear height of 2.8 m. The property is fully let to one of the largest hospital groups in Spain.

LOCATION

Located in the consolidated submarket of Avenida de América-Torrelaguna Madrid, close to the junction where the A-2 motorway meets the M-30 ring road. The building is strategically located next to the Spanish headquarters of AXA and BNP Paribas. This A-2 area is within close reach of the CBD, the M-30 and Madrid Barajas airport. While the Arturo Soria and Avenida de la Paz metro stations, along with the Arturo Soria Plaza shopping centre are all within walking distance.

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PROPERTY TYPE
Offices
LOCATION
Inner Madrid
GLA
11,174 sqm
PARKING SPACES
303 (≈3% electric)

DESCRIPTION

A stand-alone office building located in a consolidated submarket of Madrid. The building was refurbished in 2008 and offers the qualities of a large building, with spacious floors and good floor to ceiling height that create a class A asset. The property comprises five floors above ground with excellent natural light and a bright semi-basement totalling 11,174 sqm, plus two basement floors housing 303 parking spaces. The property benefits from very good visibility for corporate signage. The building is fully leased to a well-known international organisation.

LOCATION

Located in the consolidated submarket of Avenida de América-Torrelaguna Madrid, close to the junction where the A-2 motorway meets the M-30 ring road. The building is strategically located next to the Spanish headquarters of AXA and BNP Paribas. This A-2 area is within close reach of the CBD, the M-30 and Madrid Barajas airport. While the Arturo Soria and Avenida de la Paz metro stations, along with the Arturo Soria Plaza shopping centre are all within walking distance.

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PROPERTY TYPE
Offices
LOCATION
A2/M30 Madrid
GLA
9,902 sqm
PARKING SPACES
223 (+15% electric)

DESCRIPTION

Prime office property, highly visible from Madrid’s A2 motorway, with a GLA of 9,902 sqm and 224 parking spaces. This nine-storey building offers an exceptional floor-to-ceiling height (2.8 m), with more than 90% of workstations benefitting from natural light. Botanic also features three glasshouses, a fitness area, restaurant and stunning landscaped grounds. Refurbishment works began in the second half of 2020 to a design by Estudio Álvarez-Sala and were completed in the latter part of 2022. The building now boasts a curtain wall façade providing acoustic insulation and solar control, plus a range of cutting-edge facilities. At the end of 2023, a lease agreement for the totality of the asset was signed with a world leading multinational biopharmaceutical firm that transfered its headquarters in Spain to Botanic.

LOCATION

Offering quick and easy access to central Madrid and the airport, the property is located in the well-established M-30/A-2 submarket. This is an outstanding strategic location close to the CBD, the M-30 motorway and Madrid-Barajas airport. It benefits from excellent public transport links and an abundance of local shops and services, including a shopping centre. Neighbouring buildings include the central headquarters of Banco Santander.

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PROPERTY TYPE
Offices
LOCATION
Campo de las Naciones
GLA
10,936 sqm
PARKING SPACES
202 (15% electric)

DESCRIPTION

A stand-alone, highly efficient, LEED Gold-certified, Grade A office building located in the consolidated Cristalia Business Park, within the Campo de las Naciones submarket. The building features 10,936 sqm of modern office space arranged over six column-free floors, with more than 1,800 sqm per floor and each floor offering the possibility of being divided into three modules. The property also boasts an extraordinary amount of natural light thanks to its fully glazed façade. Offering 202 parking spaces, it is currently let to several companies in the financial services, retail and technology sectors.

LOCATION

Located in the Campo de las Naciones area, once considered the most consolidated and attractive office market in Madrid, it is strategically situated between the airport and the CBD. The San Lorenzo metro station is located just a few minutes’ walk away. The complex can be very easily accessed from the M-40, M11, A-1, A-2 and R-2, all main motorways affording it excellent visibility and making it ideal for affixing corporate signage.

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PROPERTY TYPE
Offices
LOCATION
Campo de las Naciones
GLA
14.565 sqm
PARKING SPACES
215 (≈10% electric)

DESCRIPTION

Originally designed as a data processing centre, this Grade A office building offers large floorplates (approximately 2,800 sqm) with excellent floor to ceiling height. The property comprises five above-ground floors, with a total area of approximately 14,565 sqm and two basement floors accommodating 215 parking spaces. The property’s high-profile setting is ideal for corporate signage. Refurbishment works got underway during Q2 2020, with the renovation project designed by Estudio Lamela expected to be completed at the start of 2023. As part of the works the property has been given a new three-level curtain wall façade and a new central atrium and lobby, increasing its GLA and filling the building’s interior with considerably more natural light.

LOCATION

Located in the Campo de las Naciones area, once considered the most consolidated and attractive office market in Madrid, it is strategically situated between the airport and the CBD. The San Lorenzo metro station is located just a few minutes’ walk away. The complex can be very easily accessed from the M-40, M11, A-1, A-2 and R-2, all main motorways affording it excellent visibility and making it ideal for affixing corporate signage.

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PROPERTY TYPE
Offices
LOCATION
Las Tablas / Manoteras
GLA
12.842 sqm
PARKING SPACES
241 (≈10% electric)

DESCRIPTION

Based on the design proposal by renowned Spanish architect Carlos Rubio, this stand-alone office building will comprise six above-ground floors totalling approximately 12,850 sqm, and two basement floors with 241 parking spaces. The Grade A design offers spacious, light-filled, flexible, column-free floorplates (approximately 2,000 sqm per floor) and good floor-to-ceiling height. The upgrade will also see the addition of a generous rooftop terrace and extensive landscaped areas on the ground floor.

LOCATION

Excellent location in the up-and-coming area of Manoteras, the northern extension of Madrid’s CBD. Within easy reach of the Paseo de la Castellana and just a short distance from Madrid Barajas airport, the property benefits from both good public and private transport connections (A-1, M-11, M-30, and M-40). The building is just a few metres from the Virgen del Cortijo metro station and the Fuente de la Mora commuter train station. The area offers a wide range of services and is home to several public entities, as well as a number of high-profile tech and industrial-based companies.

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PROPERTY TYPE
Offices
LOCATION
A2/M30 Madrid
GLA
11.600 sqm
PARKING SPACES
167 (≈10% electric)

DESCRIPTION

New office asset secured through a promise to purchase agreement; acquisition expected in 2025.

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PROPERTY TYPE
Logistics
LOCATION
Madrid (2nd Ring)
GLA
25,694 sqm
Loading bays
29

DESCRIPTION

This cold storage logistics warehouse has direct access to and fronts the A-1 motorway to the north of Madrid. The warehouse was built by Gazeley as a turnkey project for the current tenant Eroski, which uses the facility as a strategic distribution centre for fresh produce. Within the 35,000 sqm plot, the logistics warehouse covers an area of around 25,700 sqm and, although most of it is dedicated to cold and frozen storage areas (including a basement with a cold storage chamber), it has an office space of around 1,000 sqm. In addition, it has 29 loading bays and a clear height of 9.5 m as well as approximately 100 parking spaces for employee use.

LOCATION

The warehouse is located at km 32 of the A-1 motorway which runs between Madrid and the Basque Country and France. It is located around 30 minutes from the centre of Madrid, 11 km from the junction of the A-1 with the M-50 motorway, meaning it is easily accessed via other national roads. Other companies operating out of this site include Schaeffler, Deco Pharma, Omega, Iberdrola and Mitsubishi. There are several public transport combinations that allow tenants and other visitors to reach the logistics centre both from Madrid and from other nearby towns.

An important task of the Árima team is to make the most of the existing portfolio. During 2023 we have materialised this active management through two major blocks:

1. Implementation of improvements.

In 2023 we carried out an analysis of Cristalia’s air-conditioning systems in order to improve their efficiency. We replaced 66% of the motors in Cristalia’s UTAS with Turntide smart motors from Future Motors.

These new smart motors reduce the energy consumed and, therefore, the carbon footprint of the asset and offer a return on investment via savings in consumption.

2. Capital recycling.

In line with our prudence and investment discipline, the following transactions were completed in 2023, adding value to the portfolio and to the Company:

The sale of the María de Molina asset
The purchase of Torrelaguna
The agreement to acquire another office property in Madrid.

€359M GAV December 2023¹

+22% vs. total investment² since IPO

At the end of 2023, the value of Arima’s assets stood at €359 million, up +22% versus total investment². In comparable terms (12 months LfL), the valuation declined 5.8% during the year, mainly driven by market yield expansion associated with the increase in interest rates. However, the value of the portfolio remains relatively resilient thanks to the higher quality of the portfolio.

Based on the external independent valuation carried out by CBRE Valuation Advisory (RICS) at 31 December 2023.
Total investment includes acquisition price plus capex invested as of the valuation date.

	Asset type
Offices		Logistics	Total
Properties	8	1	9
GLA (sqm)	76,233	25,694	101,927
Parking spaces (units)	1,281	0	1,281
Net acquisition price (EUR million)	212.5	16.4	228.9
Acquisition price (€/sqm)	2,864	638	n. a.
Market value (EUR million)	345	35	380
Gross LTV	31.9%	34.1%	32.1%

2023 Full Year

Spain’s GDP expanded by 2.5% in 2023 returning it to pre-pandemic levels. Key sectors in this improvement include the tourist sector which attracted some 85M visitors during the year. Unemployment also showed positive signs with the rate standing at 11.76% at year end with some 20.25M people registered for employment.

During the course of 2023, the European Central Bank’s (ECB) policy of increasing interest rates had its desired effects on inflation in Spain. By December 2023, CPI had fallen to 3.4%, one of the lowest in the European Union (EU) and 200 bps below the EU average. From October, the ECB has held rates stable with the prospect of a reduction if price growth continues to be limited. However, as we shall discuss later, the higher interest rate environment would have a significant impact on real estate transaction volumes and values.

Madrid and Barcelona Take Up

Take Up Madrid
Take Up Barcelona
No. of deals Madrid + Barcelona

Source: JLL

The Árima Group’s current portfolio offers significant growth potential. According to our (conservative) internal projections for rental growth –based on the 15-year average for each applicable submarket, adjusted for quality– on the completion of ongoing refurbishment works we should see a rate of return of between 6.4% and 6.9%.

Current portfolio – gross rental income expected evolution
(at current market rents)

Source: CBRE as of Q3 2023.
Passing gross yield defined as passing gross rents over total portfolio acquisition price.
Yield on cost defined as post-capex GRI divided by total investment (including expected capex).
Gross annualised income.
Expected increase in rents from reversionary potential and additional capex investments.
Projected gross rental income on realisation of reversion potential, adjusted for rental growth due to quality improvements in refurbished properties.

Key Income
statement metrics at 31/12/2023

€8,636 thousand Gross rental income-GRI¹ €6,237 thousand at 31/12/2022

€6,928 thousand Net rental income-NRI €5,551 thousand at 31/12/2022

€263 thousand Recurring operating profit/(loss)-EBIT €(628) thousand at 31/12/2022

€(26,548) thousand Change in fair value of assets €12,992 thousand at 31/12/2022

€(1.2) Earnings per share €0.4 at 31/12/2022

Key balance
sheet metrics at 31/12/2023

€359,200 thousand Gross asset value-GAV €379,700 thousand at 31/12/2022

€69,388 thousand Net debt €48,640 thousand at 31/12/2022

19.2% Net LTV 12.8% at 31/12/2022

€73 M Liquidity² €93 M at 31/12/2022

Recurring.
Includes, cash and cash equivalents, short-term investments and financing lines not utilised at the year-end.

To provide greater transparency and comparability, Árima Real Estate has been a member of the European Public Real Estate Association (EPRA) since its inception, and has adopted its best practice recommendations (BPR). The table below details EPRA´s key performance measures:

EPRA Definitions		EUR Thousand (unless specified) 2023
EPRA Adjusted Earnings	Adjusted earnings from operational activities.	(2,028)
EPRA Earnings	Earnings from operational activities.	(5,196)
EPRA Net Reinstatement Value (EPRA NRV)	Assumes that entities never sell assets and aims to represent the value required to rebuild the entity.	292,370
EPRA Net Tangible Assets (EPRA NTA)	Assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax.	292,146
EPRA Net Disposal Value (EPRA NDV)	Represents the shareholders’ value under a disposal scenario, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax.	293,666
EPRA Net Initial Yield (NIY)	Annualised rental income based on the cash rents passing at the balance sheet date, less non recoverable property operating expenses, divided by the market value¹ of the property, increased with (estimated) purchasers’ costs.	3,2%
EPRA "Topped-up" NIY	Incorporates an adjustment to the EPRA NIY in respect of the expiration of rent free periods or other unexpired lease incentives.	3.9%
EPRA Vacancy Rate	Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio.	22%

Market value based on the external independent appraisal determined by CBRE Valuation Advisory (RICS) at 31 December 2023.

Environmental, Social and Corporate Governance Commitment

This report follows the European Public Real Estate Association’s (EPRA’s) recommendations on sustainability best practices (sBPRs), which are themselves based on the Global Reporting Initiative (GRI) Standards.

In accordance with these recommendations, we take into account the company’s business model, strategy and main corporate risks; the topics most relevant to our industry; and the interests of our stakeholders; as well as the impact on society of the work Arima carries out and the regulatory environment.

ENVIRONMENTAL

Decarbonisation
Consumption efficiency
Waste Management
Sustainable mobility
Responsible landscaping
Sustainable refurbishments

SOCIAL

Well-being, health and safety
Training and development
Inclusion and diversity
Trusting relationships
Impact on the local community

CORPORATE GEVERNANCE

Control over reported information
Regulatory compliance
Standards and recommendations
Strategy and objectives
Risk management

ECONOMIC

Investor alignment
Value creation
Sound investments
Level of financial debt
Analyst opinion

2020-2023 Objectives

Incorporate sustainability (green) clauses into 85% of lease agreements signed by Árima with its tenants by 2023.

Conduct an ESG assessment of 50% of the Company’s Tier 1 suppliers by 2023.

Maintain an average employee satisfaction score above 80%.

Continue offering training to 75% of the workforce.

Offer social engagement programmes for the local community in 50% of Árima’s buildings.

Maintain a high score in the GRESB assessment.

>80% of the 2020 portfolio LEED/BREEAM-certified in 2023.

75% of the 2020 portfolio equipped with electric vehicle charging points in 2023.

100% of repositioning projects to obtain at least WELL GOLD certification by 2023.

100% of the current portfolio to have Renewable Guarantee of Origin electricity supply for communal areas by 2023.

Digital systems to control efficiency introduced across 80% of our 2020 portfolio in 2023.

95% of energy and water consumption data coverage by 2023.

Achieve an energy efficiency rating of A for all newly constructed buildings in 2023. In 2023, no new constructions have been completed.

2020 Objective
2023 Evaluation

During 2023 we have focused on Risk Management and Decarbonisation. As a result, Arima has defined an Evaluation System to assess the physical and transition risks that impact our portfolio. Thanks to this analysis we can focus all environmental initiatives in an objective framework, allowing us to consistently mitigate the identified risks.

Once the risks that may affect the portfolio have been identified, they are assessed from the dual perspective of probability of occurrence and impact and are represented graphically on a Risk Map.

Environmental degradation
Floods
Droughts
Heatwaves

Decline in demand
Not adapting to regulation
Technological obsolescence
Bad communication

ÁRIMA’S STAKEHOLDERS

INTERNAL

EXTERNAL

Investors and shareholders

Árima aims to maintain an open and constructive dialogue with shareholders, analysts and the entire investor community overall. We are committed to provide transparent disclosure and a clear investment case on a regular basis, and welcome any engagement with any market participant.

+120 meetings during the year

75% of shareholders met with Árima at least once during 2023

ÁRIMA’S STAKEHOLDERS

INTERNAL

EXTERNAL

Employees: Árima’s team

At Árima we believe that our employees are the key to the success of any project. We see the living proof of this every single day at our head offices, where our team of 13 professionals demonstrate the importance of their know-how, involvement and integrity day in day out. Árima’s Employee Engagement Plan, with its four focus areas, is our handbook for promoting best practices and looking after the well-being and professional development of our team.

ÁRIMA’S STAKEHOLDERS

INTERNAL

EXTERNAL

Suppliers and contractors

Árima could not carry out its day-to-day work without the help of its suppliers and contractors. To successfully carry out our projects, we draw on the experience of the very best specialists, fully trusting in their expertise and professionalism. To make sure we are working with the very best, Árima has developed a selection and communication process that helps us establish trust and promote a positive working environment.

ÁRIMA’S STAKEHOLDERS

INTERNAL

EXTERNAL

Tenants

The people who occupy our buildings every day are one of the Company’s most important stakeholder groups and a key part of our business. At Árima, we are particularly focused on supporting the wellbeing, health and safety of our tenants, making sure that we are meeting their needs and offering exceptional spaces where they can do their best work.

Results of the satisfaction survey in 2023

100%¹ Award a score of very good/excellent

Light and connectivity The most valued aspects in the workplace

Net Promoter Score = % score 9 and 10 – % 6 or less = 22% (vs. 7% in 2022).

ÁRIMA’S STAKEHOLDERS

INTERNAL

EXTERNAL

Local community

At Árima we pay special attention to the impact our business activity has on our local areas and communities. We work to create quality assets that are able to transform the areas in which they are located, benefitting not only our tenants themselves, but the wider community as well. With this goal in mind, we have continued to pursue our Community Engagement Programme at both its levels:

Community Engagement Programme: portfolio level

100% Leased offices with an engagement program

100% Logistics facilities with an engagement programme

Community Engagement Programme: corporate level

Through which we contribute to different initiatives through three areas of action:

Charity and healthcare
Education and sport
Heritage, culture and environment

The General Shareholders’ Meeting is the Company’s highest decision-making body. Its designated powers include the appointment of directors, the approval of the remuneration policy and the distribution of dividends, all of which are set forth in the Regulations of the General Shareholders’ Meeting.

Arima remains committed to the highest of standards and compliant with good governance recommendations. Every year the Company ensures it aligns its reporting with the recommendations set out in the Good Governance Code for Listed Companies of the CNMV, ensuring the Company’s governing bodies fulfil their roles effectively and transparently.

Compliance with recommendations

Complies
Under analysis

Under the umbrella of the General Shareholders’ Meeting, the Board of Directors is entrusted with managing and overseeing the Company’s activities and is responsible for establishing the Company’s strategy and goals, as well as for defining the policies by which these activities will be governed. Árima has a majority of Independent Directors who bring years of experience and expertise in the real estate, financial and legal sectors, at national and international level.

4 Board meetings in 2023

97% attendance at Board meetings

Board Committees

Audit and Control Committee

The main role of the Audit and Control Committee is to support the Board of Directors in its supervisory duties by regularly reviewing the process of preparing the economic and financial information, its internal controls and the independence of the external auditor, paying special attention to the adequate control of the information reported and the Company’s risk management.

Appointments and Remuneration Committee

The Appointments and Remuneration Committee supports the Board of Directors in the proposals for appointment, re-election, ratification and dismissal of directors; in drawing up and controlling the Remuneration Policy; in ensuring directors fulfil their duties, and in supervising compliance with the Internal Codes of Conduct.

Good Governance

Values: ethics and transparency

Árima is governed by corporate values of commitment, value creation and diligence in the Company’s daily operations. These values are based on ethical behaviour and transparency, as reflected in the Code of Conduct, drawn up in accordance with Good Governance recommendations.

0 Complaints received through the Whistleblower Channel

Anti-corruption

The Company works continuously to ensure the proper functioning of the different procedures and control elements implemented in order to avoid and prevent any form of corruption – including bribery, fraud and money laundering.

Handbook on Money Laundering Prevention Drafting and approval

Information Security

The security of computer systems and the protection of the Company’s information are issues of the utmost importance for Árima.

0 security breaches in 2023

Real sustainability

The Group is guided by the most prestigious international standards, among others, the Sustainable Development Goals from the United Nations 2030 Agenda. In order to develop its sustainability strategy, Árima has selected the five goals that have the greatest impact on its business activities and environment, with these goals being used as the basis for defining the Company’s corporate and portfolio objectives. Árima does not simply identify theoretical objectives, it actively works to achieve true sustainability, rolling out initiatives and making improvements where necessary – both at corporate and portfolio level – to ensure those goals are achieved.

Good health and well-being

Continuous monitoring of efficiency control systems
Review of installations in assets under operation
Obtaining WELL certifications

Clean water and sanitation

Responsible landscaping

Affordable and clean energy

Replacing motors in air treatment systems
Analysis and reduction of consumption in the portfolio
Energy audits

Sustainable cities and communities

Reuse of materials during building and refurbishment works
Local community engagement programme
Analysis of embodied carbon emitted during refurbishment works

Climate action

Monitoring of the Company’s Decarbonisation Strategy
Launch of CRREM analysis on assets

Global Real Estate Sustainability Benchmark (GRESB)

In the 2023 GRESB assessment, Arima was once again rated with 4 stars, scoring 86 points out of a maximum of 100. Arima’s achievement is even greater when considering how much it outperforms the average score obtained in the assessment and by other companies in Arima’s peer group, many of which are much larger companies.

European Public Real Estate Association (EPRA) sBPR

For the third year running, Arima obtained the highest score, being awarded the Gold certification in recognition of its exceptional compliance with EPRA sustainability standards. During 2023, particular emphasis has been placed on improving the narrative and description of metrics. EPRA has highly valued the segmented analysis of portfolio data and the explanations of consumption and asset performance.

We have introduced a set of key indicators to our Environmental Policy that allow us to monitor our properties so we can continue to offer exceptional quality, promote user well-being and make a positive difference to our environment.

Key sustainability indicators¹

Sustainable certifications

% portfolio to be certified (LEED/BREEAM)

Energy production

portfolio % with facilities for the production of renewable energy

Green energy

% portfolio in operation with green energy from renewable sources in common areas

Accessible buildings

portfolio % fully accessible

Average energy and water consumption

Consumption in office portfolio

2023 240.52 kwh/sqm/yr

2022 134.60 kwh/sqm/yr

Average energy use intensity

2023 0.35 m³/sqm/yr

2022 0.26 m³/sqm/yr

Average water use intensity

Consumption in logistics portfolio

2023 217.39 kwh/sqm/yr

2022 210.34 kwh/sqm/yr

Average energy use intensity

2023 1.26 m³/sqm/yr

2022 1.65 m³/sqm/yr

Average water use intensity

Carbon footprint

2022 24.8 kgCO₂/sqm/yr

2021 20.9 kgCO₂/sqm/yr

Average CO₂ emissions

Key consumption indicators have been calculated based on the scope of this report. Further information can be found in section 8 of this Report.
Based on certifications obtained at the date of publication.
Based on 2020 portfolio: includes pre-certifications of Pradillo.

Risk management

Continuing with its goal to create a strict internal monitoring system, Árima has implemented a number of management guidelines that are included in its Risk Control and Management (RMS) Policy and are explained in further detail in its Risk Management Manual.

These documents are regarded as key tools for the management of uncertainty and for reducing and mitigating the potential threats that the Company could face. All of these are shown graphically, in a systematic and organised way, in the Risk Map.

EPRA Sustainability Indicators