Nasdaq Copenhagen A/S
Charlottenlund, November 6, 2026
Announcement no. 300
Fair value adjustment of German properties in Q3 2026
As part of its regular quarterly review of property fair values, Management has, together with the Company’s independent external valuers, revalued the Company’s German high street investment properties. As a result, the fair value of the portfolio will be written down by EUR 9.0 million in Q3 2026, bringing the aggregate market value of the German properties to EUR 71.0 million as of September 30, 2026. The adjustment will be recognized in the interim financial report for Q3 2026 and will reduce the Company’s expected profit before tax for the financial year.
The write-down mainly reflects a general rise in recent months in the yields investors require on commercial property in Germany’s largest metropolitan areas, as well as higher risk premiums across the commercial property market. Long-term bond yields and return expectations remain at a level where investors demand a significantly higher premium for committing capital to illiquid property assets. In addition, the weakening macroeconomic climate in Germany, marked by stagnating growth, high energy costs and subdued consumer confidence, adds uncertainty about tenants’ future revenue and ability to pay. Finally, geopolitical unrest, related to the war in Iran and the ongoing war in Ukraine, is contributing significantly to investor caution and is pushing up the yields required on commercial property.
Although the Company’s underlying property operations remain stable, with a relatively high occupancy rate, increased market uncertainty, higher interest rates and a weaker macroeconomic climate in Germany have led to a downward correction in the market value of the properties.
The Company’s financial position remains strong. Following the fair value adjustment, the loan-to-value ratio remains within the financial covenants agreed with the Company’s lenders. The interim financial report for Q3 2026 will be published as planned in the Company’s financial calendar and will set out the full accounting impact and updated guidance for the 2026 financial year.
Questions may be directed to the undersigned at +45 8110 0800.
Yours sincerely,
German High Street Properties A/S
Hans Thygesen
Chairman of the Board
