27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 27528449 2024-01-01 2024-12-31 cmn:ConsolidatedMember 27528449 2025-01-01 2025-12-31 27528449 2024-01-01 2024-12-31 27528449 2025-12-31 cmn:ConsolidatedMember 27528449 2024-12-31 cmn:ConsolidatedMember 27528449 2025-12-31 27528449 2024-12-31 27528449 2024-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 27528449 2024-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 27528449 2024-12-31 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember cmn:OtherRenderingOfReportedValueMember 27528449 2025-12-31 cmn:ConsolidatedMember fsa:ContributedCapitalMember 27528449 2025-12-31 cmn:ConsolidatedMember fsa:RetainedEarningsMember 27528449 2025-12-31 cmn:ConsolidatedMember fsa:ProposedDividendRecognisedInEquityMember 27528449 2024-12-31 fsa:ContributedCapitalMember 27528449 2024-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 27528449 2024-12-31 fsa:RetainedEarningsMember 27528449 2024-12-31 fsa:ProposedDividendRecognisedInEquityMember 27528449 2024-12-31 cmn:OtherRenderingOfReportedValueMember 27528449 2025-01-01 2025-12-31 fsa:ContributedCapitalMember 27528449 2025-01-01 2025-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 27528449 2025-01-01 2025-12-31 fsa:RetainedEarningsMember 27528449 2025-01-01 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember 27528449 2025-12-31 fsa:ContributedCapitalMember 27528449 2025-12-31 fsa:ReserveForNetRevaluationAccordingToEquityMethodMember 27528449 2025-12-31 fsa:RetainedEarningsMember 27528449 2025-12-31 fsa:ProposedDividendRecognisedInEquityMember 27528449 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 1 27528449 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 1 27528449 2024-01-01 2024-12-31 cmn:ConsolidatedMember 1 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 1 27528449 2024-12-31 cmn:ConsolidatedMember cmn:OtherRenderingOfReportedValueMember 27528449 2023-12-31 cmn:ConsolidatedMember 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 1 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 2 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 3 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 1 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 2 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 3 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 4 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 5 27528449 2025-01-01 2025-12-31 cmn:ConsolidatedMember 1 iso4217:DKK ALFA Development A/S Knud Højgaards Ve 2 2860 Søborg 27528449 Kristian Hare At ALFA Development, we see our approach to being a property developer in a greater context than merely in relation to a specific building in a given location, but rather as part of the community and society at large.Raising the Standard of Urban Living2025 was a year of high activity, new projects, land acquisitions, and a strengthened organisation. At the same time, we laid the foundation for the next phase of ALFA Development’s growth with a clear strategic focus on brand, product, and customer experience.2025 was a busy year with a high level of activity, the launch of several new projects, new land acqui-sitions and the establishment of new companies. At the same time, we continued our focused eorts to strengthen the organisation and lay the foundation for the next phase of ALFA’s growth.In the Municipality of Gladsaxe, the approval of a local development plan in spring 2025 marked the starting point for a new residential district with nearly 400 rental and owner-occupied homes. From our headquarters we can follow the trans-formation of the site, where former commercial buildings have been removed and where the listed historic Mørkhøjgård estate, with its avenue and park, forms the setting for the new project, which we have named Søborg Skovby. The ambition is to create a green and vibrant neighbourhood with strong communities and a high quality of life.In Copenhagen, we are also working together with the municipality and other landowners on a new local development plan for the Rovsingsgade area in Nørrebro.At the end of 2025, we focused our eort on preparing the sales launch of Astas Have on Amager, as well as the February 2026 launch of owner-occupied apartments and townhouses in Egehaven, Rødovre. Egehaven is located adjacent to IrmaByen, which has evolved into one of our most attractive and sought-after residential areas, now home to more than 3,000 residents. Both developments have been carefully designed with strong consideration for the local context, and reflect our continued focus on delivering high-quality housing, ecient layouts, and well-func-tioning urban environments.An Organisation in GrowthWith a growing project portfolio, we strengthened our organisation during the year within project development, construction, services and asset management. In August, the leadership team together with our sales and development teams travelled to London to gain inspiration from the UK Build-to-Rent market and new serviced residential concepts. These insights are now being applied in the further development of the next generation of our serviced residential concept, Living By ALFA.In 2025, we also brought back property admin-istration in-house to strengthen the dialogue with our tenants and create a closer connection between development, operations and residents’ daily lives. Our perspective is long-term: we aim to remain an active presence in the areas we develop. With a current portfolio of approximately 250 rental units, and an expectation of growth in the coming years, we have also built new in-house competencies within services, asset management and property administration.To further strengthen our work with EU Taxonomy and to optimise material consumption and emis-sions, we hired an ESG specialist in the spring of 2025. One of the first results is the publication of our consolidated sustainability report, which clearly outlines our strategies and documents our progress for partners and stakeholders.New Companies and New MarketsOur Swedish sister companies have built a strong position in the Malmö region over the past decade. As our activities in Sweden have expanded, my husband Ludvig Find and I decided in 2025 to further strengthen and develop our Swedish projects in close collaboration with our Danish organisation.In 2025, ALFA Development AB established Science Properties, a company focused on developing oce and laboratory facilities for knowledge-in-tensive companies. The first project will be located in Lund, in proximity to the world-renowned Lund University, where we hope to secure development rights for 50,000 m of commercial buildings and a site close to the research district of Brunnshög, where we are also developing residential units through our sister company ALFA LandCo.In 2022, Ludvig and I founded the Planetary Respon-sibility Foundation, which works to restore biodiver-sity and receives a portion of the annual profits from ALFA Development’s activities. As an extension of the foundation’s work, we established Nature Develop-ment Company in 2025. The company focuses on restoring ecosystems to protect biodiversity in South and Central America through reforestation.Focus on the Next PhaseThe future direction of ALFA Development is continued growth and development. Our core mission remains the same: to develop homes and neighbourhoods we can be proud of – places where people thrive and where biodiversity has room to flourish.In the coming years, we will focus in particular on three strategic priorities.We will place even greater emphasis on the customer experience – from the first point of contact to many years after residents move in – through more coherent and customer-focused processes.We will further develop our product, placing design, quality and functionality at the center so that we can deliver the best homes in the mid-market segment.And we will continue to strengthen ALFA as a brand, working deliberately to be a trusted and preferred partner for customers, municipalities, investors and employees.The Owner’s PerspectiveIf 2025 was a year of high activity, the coming years will be at least as ambitious. Today, we stand on a strong foundation with a growing project portfolio, a highly capable organisation and a clear strategic direction.For me, ALFA Development has always been about more than real estate development. It is about creating places where our customers can thrive - and about taking responsibility for the world we are part of. By owning our own properties, we stay in the neigh-bourhood to service our tenants and condo buyers.I am proud of what we have achieved so far – and even more motivated by what still lies ahead.Andreea KaiserCo-Founder & Group CEO ALFA DevelopmentReady for construction and sales activities in 2026Key milestones reached in development projects and focus on strategic development of the investment portfolio.In 2025, we reached several key milestones in ourproject portfolio. With the final adoption of local plans for both Egehaven and Søborg Skovby, as well as obtaining building permits for Egehaven and ongoing demolition work, we are now enterina new phase, 2026 marking a significant construction activity. With construction starting on the first stages of Søborg Skovby in the first half of the year, the continuation of Egehaven and the completion of Astas Have, the sale of owner-occupied housing in both Egehaven and Astas Have wibe a central part of our activities during the year.Living By ALFA Irmabyen continues the strong development with strong interest in the concept and increasing rents on reletting. This arms ourstrategy to expand the concept to more geographical locations. As a result, in 2026, we will begin construction of another Living By ALFA project in Søborg Skovby, located in Gladsaxe.We have continued our strategy of buying invest-ment properties that oer development potential,while focusing on divesting older investment properties with no development potential. We havoptimised the operations of our portfolio, therebyincreasing our rental and operating income. In 2025, we saw stable growth in operating income from the properties with stable operations and positive cash flows.DKKm41Profit for the yearDKKm 1,040Equity3.2%ROE8%Avg. ROE 2021–2025Assuming yield requirements for investment prop-erties remain unchanged, our portfolio is devel-oping favourably, driven by growth in our regular rental and operating income. Value adjustments on investment properties for the year came to a net amount of DKK 35 million in 2025, comprising of operational adjustments of DKK -2 million and market-related adjustments of DKK 37 million.We are pleased with the growth in operating income from our investment properties, which ensure satisfactory operating cash flows for our investment portfolio thanks to our low loan-to-value ratios and long refinancing intervals.Current market conditions with high construc-tion costs and interest rates have aected our developer margins. Until market conditions supporta more profitable development for residential purposes, we will therefore continue to operate ourinvestment properties with development potential at Smedeland and Mileparken/Marielundvej, whichare generating stable cash flows from operations.The political discussions about the Marienlyst area in Aarhus have led us to lower our short-term expectations for the option areas around Aarhus. In the long-term, we remain positive on Aarhus, butwith the current sales prices and high construc-tion costs, we see limited potential for our option agreements in the area at present.Furthermore, we have maintained our conserva-tive approach to the property market with a solid balance sheet and strong cash position, preparing us for the opportunities that may arise. The prop-erty industry is cyclical, and we have prepared for the downturn in the best way we can, making sure that we are ready for the next upturn by acquiring projects with dierent development and construc-tion periods. This ensures that we stagger the timing of when the properties we sell or lease will hit the market, thereby spreading risk.Our solid balance sheet and strong cash position enable us to be opportunistic, and we expect to close deals and agreements at higher yields and earnings than we have achieved in recent years. In other words, we expect the coming years to provide better opportunities for acquiring attrac-tive building rights and investment properties with development potential at reasonable prices.We are preparing for the next cyclical movement and are patient with our investments. We have aligned our organisation so that our competencies match our activity level and expected revenue, and we have strengthened the Group’s development competencies to ensure the best possible execu-tion of our projects.ALFA at a glanceALFA Development is a family-owned company engaged in urban and property development and in the development and management of a proprietary portfolio of investment properties. The company has grown steadily since it was founded in 2006, evolving into a strong organisation with a solid network of dependable business partners.We are a young company with solid experience. Since 2006, we have been developing modern urban and residential areas.We are family-owned. That means we think long-term. We create places where people love to live, not just today, but also tomorrow. We are a niche player and choose our development projects carefully to ensure that we can realise our visions.We work internationally, bringing the best inspiration from abroad to Denmark and the best from Denmark to the world. We build mixed commu-nities, for owners and tenants, for young and old, for families and singles.62,000Sqm for rent276,000Sqm under development64 Homes in production35Employees (FTE)Our purpose is to create the best conditions for people and nature by raising the standards of our industry.We see our approach to being a property developer in a greater context than merely in relation to a specific building in a given location, but rather as part of the community and society at large. We want to make a positive dierence and focus consistently on the implications of our actions.To that end, we always strive to improve. We listen to the needs of our clients and are at the forefront of innovation and technological developments. Only in this way can we heighten the standards of our building projects in terms of design, functionality and climate impact.Our commitmentFOCUS ON THE CLIENTWe seek to understand the dierent life stages of our customers and to build housing and develop solutions that match their needs and make their lives easier. We do this by incorporating more functionality into our products in general: storage, terraces, entrances, etc. In addition, we conduct customer satisfaction surveys to continuously understand and meet our customers’ needs. QUALITY OF LIFEOur work is driven by an ambition to enhance the quality of life of our customers. Safety, more green spaces, better areas where children can play safely, better services, common areas that support the community spirit and feel cosy – places where people can come together and have shared experiences. SUSTAINABILITYIn order to remain competitive, we must consistently become more innovative, more ecient and more sustainable. Working closely together with the operations team to optimise buildings, minimise waste and make better choices from the beginning while taking into account our products' life cycle is the key to our success.Credibility and trustWe stand by our word. We prioritise long-term and close relationships based on fairness and mutual respect.Passion We work with dedication and passion to deliver excellent results for ourselves, our partners and our customers.Quality We take responsibility for creating lasting value with well thought-through solutions. We work with reliable part-ners who deliver the quality we want to bring to our customers.Professionalism We have in-depth market knowledge and work with a high degree of integrity. Being part of a competent and diverse group of people, we are agile, tolerant and work well together.For me, ALFA Development has always been about more than real estate development. It is about creating places where people can thrive, servicing all of our customers whether tenants or buyers in the long-term – and about taking responsibility for the world we are part of.ANDREEA KAISERCOFOUNDER & CEOFinancial reviewThe profit for the year after tax amounted to DKK 41 million – in line with expectations. After distribution of dividends, equity amounted to DKK 1,040 million, and the equity ratio was 53%.Revenue and earningsRevenue for the year amounted to DKK 85 million (2024: DKK 118 million), of which DKK 4 million (2024: DKK 37 million) was attributable to project sales from the development portfolio and DKK 81 million (2024: DKK 79 million) was rental income stemming mainly from the investment portfolio.Rental income increased DKK 2 million. With changed yield requirements, the value adjustments of investment properties for the year amounted to DKK 35 million (2024: DKK 1 million).Value adjustments of investment properties amounted to DKK 35 million (2024: DKK 1 million), of which DKK -1 million stems from investment properties under construction (2024: DKK -1 million), which are stated at fair value.Gross profit before value adjustments amounted to DKK 40 million (2024: DKK 35 million) for a gross margin of 47% (2024: 29.6%).Distribution costs, comprising sales and marketing costs, stayed at DKK 7 million (2024: DKK 7 million). Administrative expenses also stayed at a level of DKK 16 million (2024: DKK 16 million). The organisation consisted of 35 full-time equivalents at 31 December (2024: 30 FTEs).Profit before financial items and tax (EBIT) amounted to DKK 51 million (2024: DKK 8 million). Net financial items amounted to an expense of DKK 28 million (2024: DKK 21 million expense) including one-o financial income of DKK 2 million (2024: DKK 10 million).DKKm51EBIT53%Equity ratioDKKm1,949AssetsDKKm1,040EquityProfit before tax amounted to DKK 23 million (2024: DKK 12 million loss) and tax on the profit for the year was DKK -18 million (2024: DKK 7 million expense), bringing the profit for the year to DKK 41 million (2024: DKK 5 million loss).In our 2024 Annual Report, we projected a result for 2025 of DKK +5 to -5 million before value adjustments of investment properties and tax. Profit for the year before value adjustments of investment properties and tax amounted to DKK -12 million (2024: DKK -13 million).The negative deviation before value adjustments of investment properties are based on a number of factors. One factor was that salaries and employ-ee-related costs were higher than expected, mainly due to new hires for our projects.The challeging environment for our Aarhus projects resulted in unexpected drawdowns on option agreements, but these were almost zeroed out by a partial cancellation of previous drawdowns on the project at Astas Have. Overall, the profit for the year was satisfactory.Balance sheet and equityTotal assets amounted to DKK 1,949 million (2024: DKK 1,917 million), consisting of DKK 1,387 million attributable to the investment portfolio (2024: DKK 1,341 million), DKK 233 million attributable to the project and development portfolios (2024: DKK 159 million), DKK 68 million in cash and cash equiva-lents (2024: DKK 280 million) and DKK 261 million in other assets (2024: DKK 137 million).The Group’s head oce at Knud Højgaards Vej 2 in Søborg is still not recognised as part of the invest-ment portfolio, but is recognised as a long-term fixed asset measured at cost less depreciation.Equity amounted to DKK 1,040 million (2024: DKK 999 million), for an equity ratio of 53%, which was 1 percentage point higher than last year (2024: 52%).Outlook for the coming yearThe increased earnings from the investment port-folio will remain crucial for the Group’s perfor-mance in 2026. With construction starting on the first stages of Søborg Skovby in the first half of 2026 and the sale of owner-occupied housing in Egehaven and Astas Have, we expect a gradual increase in construction activity. However, we do not expect any significant handovers until 2027-2028.On that background, we expect to report a profit for 2026 of DKK 10 to DKK 15 million before tax and value adjustments of investment properties, which includes a donation to the Planetary Responsibility Foundation of DKK 4 million.Value adjustments of investment properties will depend on changes in operating profit and yield requirements. Yield requirements are aected by the general level of interest rates, inflation expec-tations and the risk premium determined by alter-native investment options available to investors.Assuming unchanged yield requirements, a 1.75% improvement in operations will produce a value adjustment of DKK 24 million before tax, all else being equal.The approval of a local development plan in spring 2025 marked the beginning of a new residential district in Gladsaxe with 400 homes. From our headquarters, we can follow the transformation of the site, where former commercial buildings have been removed and the listed Mørkhøjgård estate now forms the setting for our new project, Søborg Skovby.Financial highlights for the GroupDKK’000 2025 2024 2023 2022 2021Income statementRevenue 85,399 118,178 256,871 310,048 605,198Gross profit 75,437 35,662 24,651 174,138 249,713Ordinary operating profit 51,046 8,075 40,758 139,564 208,561Net financials -27,832 -20,563 39,244 12,528 -15,370Profit before tax 23,214 -12,493 80,002 152,092 193,191Profit for the year 41,393 -5,283 70,885 132,602 152,459Balance sheetTotal assets 1,948,712 1,917,352 2,249,429 2,718,136 2,215,179Investments in property, plant and equipment 114,327 18,042 103,381 662,378 335,145Equity 1,040,162 998,768 1,129,051 1,198,166 1,065,563Cash flowOperating activities -84,491 -32,795 111,713 264,612 94,388Investing activities -111,665 -28,767 646,826 -634,260 599,664Financing activities -15,722 -281,306 -283,583 441,321 -714,447Total cash flows -211,878 -342,868 474,956 71,673 -20,395DKK’000 2025 2024 2023 2022 2021EmployeesAverage number of full-time employees 34 36 44 40 42Financial ratios in %Current ratio 263.7 368.9 264.1 79.5 243.5Equity ratio 53.4 52.1 50.2 44.1 48.1Return on equity 4.1 -0.5 6.1 11.7 15.5Financial highlights have been calculated in accordance with ‘Recommendations & Ratios’ issued by the Danish Finance Society.Business modelINVESTMENT – Idea generation – Research – Bid/Negotiations – PurchaseDEVELOPMENT – Local plan – Design and planning – Building permitCONSTRUCTION – Demolition – Land development/infrastructure – ConstructionAFTERMARKET – Follow-up – One-year inspection – Five-year inspectionOur property development projects gener-ally involve residential properties. We sell our projects to private buyers, either individually or to professional investors buying one or more properties in a single transaction. We may also build residential units for our proprietary investment portfolio. Once construc-tion is completed and units are let, they are then transferred in-house from one core activity to the other. Our development projects may also involve commercial properties that either form an integral part of a residential project (typically retail space) or constitute the entire project, such as an oce building, serviced/multi-tenant oce facility or similar.INVESTMENT – Idea generation – Research – Bid/Negotiations – Purchase PROPERTY MANAGEMENT – Portfolio and property strategies – Optimisation and action plans – Property administration and operations – Renovation projectsOur portfolio of investment properties consists of a combination of residential and commer-cial properties. The portfolio is reviewed and adjusted on a regular basis through additions, divestments, optimising operations or extensive renovations. As an alternative to external acquisitions, we also add properties constructed by ALFA Development to the portfolio.Market overview2025 was characterised by continued uncertainty about economic developments, including interest rates, inflation and geopolitics. After the phasing in of the new housing taxes in 2024, the housing market in 2025 increasingly adapted to the new conditions. The owner-occu-pied housing market was characterised by stability and price increases, driven in large part by ever-growing demand and low supply throughout the metropolitan area, supported by lower interest rates and improved financing options. Time on the market decreased further relative to 2024, indi-cating a sustained high level of trading activity. Overall, the economic framework conditions in 2025 created the basis for moderately increased trading activity and continued price increases in the owner-occupied housing market.In Copenhagen Proper*, the supply of owner-oc-cupied housing dropped significantly by 30.3% for owner-occupied flats, while the supply of detached/terraced houses fell by 8.8%. Moreover, time on the market fell by 19.9% for owner-occu-pied flats and 10.9% for detached/terraced houses, emphasising the strong demand and increasing trading activity. The reduced supply was part of the reason for the significant price increases of 22.7% for owner-occupied flats and 14.2% for detached/terraced houses seen over the year. In Aarhus, the supply of owner-occupied flats was down by 52.5%, while the supply of detached/terraced houses fell by 29.3%. Moreover, time on the market fell by 14.7% for owner-occupied flats and 0.8% for detached/terraced houses, which is also indicative of an active market. The significant decrease in supply resulted in price increases of 10.0% for owner-occupied flats and 9.6% for detached/terraced houses.In 2025, the profitability of several development projects remained under pressure, although a gradual improvement was observed. Construction costs remained relatively high, but decreasing yield requirements from investors and rising rent prices have increased the incentive to start new residential projects. However, persistently low construction activity in 2025 and previous years has limited the supply of new housing units, especially owner-occupied flats in Copenhagen and Aarhus, which has contributing to sustained pressure on market prices. The number of new projects is expected to increase in 2026, but this development will only translate into supply a few years into the future, and we expect that there will still be a structural undersupply throughout the metropolitan area in the short to medium term.Living By ALFA IrmaByen is our flagship housing concept. In the years ahead, we aim to scale up and roll out the housing concept in Denmark and Sweden. The next projects are in the pipeline – all tailored to the specific area’s future resi-dents and their needs and dreams.PerformanceIn 2025, we reached key milestones in the realisation of our project portfolio. We achieved final adoption of local plans for two major development projects, secured building permits and started demolition work. Furthermore, we continued work on Astas Have, which is scheduled for handover in 2026 and 2027. Supported by a very buoyant property market in the Copenhagen area, we maintained strategic momentum in our investments with a focus on sustainable urban development.In 2025, the local plans for both Egehaven and Søborg Skovby were finally adopted without appeals, marking a significant milestone for these two important development projects. For the Egehaven project, we have obtained a final and unappealed local plan and building permit, and demolition has begun. For Egehaven, we expect the sales to start in 2026 and handover scheduled for 2027. The local plan for Søborg Skovby was also finalised and demolition has now begun. Egehaven comprises an area of 21,198 m with a total floor space of 13,523 m. The project consists of 133 owner-occupied flats (9,066 m), 36 terraced houses (4,322 m) and 25% social housing. In addition, 167 underground parking spaces (approx. 5,400 m) and a 135 m unheated communal building will be built. The project’s three key elements, Kvarterstien, Det grønne netværk and Klyngerne, will ensure coherent urban devel-opment. Kvarterstien will be the central element of the area, connecting clustered housing and recreational areas with varying activity and urban space functions. By having all parking spaces placed underground, Kvarterstien will be a car-free area for play and recreation, also providing a connection to the area’s large sports facilities at Espelunden, Rødovre Hallen and the multi-purpose hall at Valhøj Skole.In relation to Søborg Skovby, we have worked closely with the Municipality of Gladsaxe and Freja Ejendomme to develop the local plan for a new urban area around the listed building Mørkhøjgård. Our acquisition of the project, which was completed in 2025 after adop-tion of a final, unappealed local plan, comprises the development of a five hectare area with over 400 new units, of which 20% will be used for social housing and at least 10% for commercial purposes. The listed building Mørkhøjgård will be refurbished and converted into common facilities for the area’s residents. As part of the project, a serviced coliving community will be established under the concept Living By ALFA, targeting employees of the area’s knowledge-intensive businesses. The first stages of the project will be built as investment properties under construction with construction expected to start in the first half of 2026. The first residents are expected to move in in 2027.The construction of Astas Have at Sundholmsvej in Copenhagen continued in 2025. After the bank-ruptcy of design-and-build contractor Q-Con-struction in 2022 and the resumption of work in early 2023, the project has now made significant progress. Astas Have involves the building of 31 residential units for the VIBO housing association, 33 residential units that we expect to put up for sale in 2026 as well as dedicated parking spaces and commercial space. The project is expected to be handed over in february 2027. The final results of the project will not be known until the last residen-tial units have been sold.Outlook for 20262026 will be a year of significant construction activity in the Group. With construction starting on the first stages of Søborg Skovby in the first half of the year, as well as the continuation of Egehaven and the completion of Astas Have, we expect a significant increase in construction activity. Furthermore, the sale of owner-occupied housing in both Egehaven and Astas Have will be a central part of our activities during the year.For the past several years, we have worked actively to secure local plans for our option sites in the new Marienlyst urban district and our own land at Brendstrup Gaard. While the option sites are included directly in the new urban district being planned 6-8 kilometres from the Aarhus city centre with the capacity to house 12-14,000 residents, Brendstrup Gaard is only expected to be part of the area’s future climate and nature solutions.The large supply of newly built residential rental and owner-occupied housing in Aarhus has had a negative impact on the market in recent years. In particular, the large supply of residential rental properties has previously dampened market expectations for the short to medium term, but prospects are beginning to brighten. We are confident in the owner-occupiedhousing market and the long-term development in Aarhus, but with the current sales prices and high construction costs, we see limited potential for our option agreements in the area at present.Our presence around Aarhus also includes 18 hectares of rural land in Malling, some 13 kilometressouth of Aarhus, which we acquired in 2020. We consider this area to be an attractive location for residential development in the long-term.The project development portfolio represented assets of DKK 233 million at 31 December 2025 (2024: DKK 159 million). This amount does not include residential rental units being built for our proprietary investment portfolio, which is catego-rised – for accounting purposes – as investment properties under construction, nor does it include investment properties with development potential.We define as our ‘land bank’ the proportion of the project portfolio where actual construction projects have not yet commenced. At the end of the year, our land bank had assets of DKK 21 million (2024: DKK 92 million), consisting of land with and without building rights, options for land with building rights and project properties with potential for building rights.The usual one-year and five-year inspections with customers and contractors for housing projects were conducted in accordance with applicable statutory rules. In the vast majority of cases, we concur with buyers on the issues raised during the inspections, and these are rectified in collaboration with the design-and-build contractor on an ongoing basis. In a few cases, we disagree with the issues and claims raised. We seek to resolve such cases through dialogue to the greatest extent possible, but in some cases when an agreement cannot be reached, a matter will have to be resolved through an expert survey or, in a very limited number of cases, a legal assessment and decision.The Group is a party to an expert survey case where the full gross claim of DKK 14 million is recognised as a provision in the consolidated financial statements.In addition, the Group is a party to a small number of legal disputes. Based on internal and external legal reviews, we believe that we have a strong position in these matters and have not therefore made extraordi-nary provisions to cover the associated financial risks.Søborg SkovbyA new residential district focused on quality, community and green surroundings.Søborg Skovby is a new residential district under development in Gladsaxe, set within historically and naturally significant surroundings. The project is developed on a 54,000 sq m site centred around the listed Mørkhøjgård, which forms the heart of the area. Existing landscape elements, including mature trees, woodland and green corridors, are preserved and integrated as defining features of the new neighbourhood.Mørkhøjgård as a shared focal pointThe listed Mørkhøjgård will be refurbished and adapted to accommodate communal functions and shared facilities. As a central gathering point within Søborg Skovby, the historic buildings will support social interaction and everyday activities.The landscape plays a central role in the overall planning of Søborg Skovby. Green avenues, a new park and preserved woodland areas are integrated throughout the district, providing accessible recreational spaces. Location and long-term perspectiveSøborg Skovby is centrally located in Gladsaxe, with convenient access to Copenhagen via light rail, bus connections and cycle infrastructure. Schools, local services and workplaces are located nearby, supporting everyday functionality for residents. Developed with a long-term perspective, Søborg Skovby forms part of ALFA’s development portfolio and in and reflects a commitment to creating robust residential environments with lasting value.LOCATION MUNICIPALITY OF GLADSAXEEXPECTED CONSTRUCTION START 2026LAND AREA 54,000 m2UNITS MORE THAN  UNITS, INCLUDING % SOCIAL HOUSINGEgehavenA new residential neighbourhood closely connected to IrmaByen.Egehaven is Rødovre’s next green residential district, developed by ALFA Development. The project transforms a former industrial site into a contem-porary residential area comprising terraced houses and owner-occupied flats, organised as a coherent and car-free neighbourhood. Egehaven is located adjacent to the established IrmaByen district, oering proximity to both urban amenities and green surroundings.Egehaven is structured around clusters, each contrib-uting variation and character while forming a unified whole. The architectural approach draws on classical residential building traditions, interpreted through contemporary detailing and materials. At the centre of Egehaven runs a landscaped neigh-bourhood route that connects homes, shared spaces and activity areas. This green spine functions as a unifying element within the area. The shared outdoor areas are integrated into the overall layout and oer inviting spaces for everyday activities alongside the private homes.Designed for long-term value and everyday useEgehaven benefits from its location in Rødovre, close to schools, local retail and cafés, and immediately adjacent to IrmaByen. At the same time, the site is situated near larger green areas and sports facilities, providing access to recreational landscapes. The project is developed with a focus on quality, func-tionality and long-term durability. Egehaven addresses a broad residential target group and forms part of ALFA’s development portfolio, reflecting the Compa-ny’s ambition to create residential environments that support quality of life and retain value over time.LOCATION MUNICIPALITY OF RØDOVREEXPECTED CONSTRUCTION START 2026LAND AREA 21,200 m2UNITS  OWNEROCCUPIED APARTMENTS AND  TERRACED HOUSESAstas HaveUrban life and nature close by.In 2025, the construction of 64 apartments at our project Astas Have commenced. Astas Have is a residential development located at the corner of Sundholmsvej and Kornblomstvej in Amager, Copenhagen. The project comprises 33 owner-occupied apartments and 31 social housing units built in cooperation with VIBO all carefully arranged around a preserved building, completing and strengthening the existing urban block on the plot.The development combines new architecture with strong respect for the area’s history and char-acter. Designed by SWECO Architects, Astas Have reinterprets classic Copenhagen block architec-ture through pitched roofs, red brick façades, bay windows and refined detailing. The new buildings embrace the preserved property at the centre, creating a cohesive architectural expression that connects past and present.Astas Have oers modern, light-filled homes in a wide range of layouts, targeting young couples, small families and urban residents seeking high-quality living close to the city. A shared green courtyard forms the heart of the development, providing space for everyday life, play and informal social interaction, while a shared rooftop terrace is reserved for the owner-occupied apartments.With underground parking, bicycle facilities and nearness to metro, campus environments, green spaces and Copenhagen’s waterfront, Astas Have delivers contemporary city living in a vibrant and well-connected neighbourhood. The project reflects ALFA Development’s ambition to create long-lasting residential environments where architecture, func-tionality and urban life come together.LOCATION MUNICIPALITY OF COPENHAGEN, COPENHAGEN S EXPECTED CONSTRUCTION START LAND AREA , MUNITS  OWNEROCCUPIED APPARTMENTSMarket overviewIn 2025, the Danish investment landscape remained characterised by some degree of economic uncertainty. However, the stabilisation of inflation and gradually lower interest rates contributed to an improved investment appetite, which led to a decrease in yield requirements among investors. Investment activity gradually increased throughout the year, accelerating in particular in the second half of 2025. The total transaction volume grew by more than 40% relative to 2024. This positive trend is expected to continue into the coming year. Furthermore, foreign investors have increasingly returned to the Danish market. In the first nine months of 2025, international capital accounted for 42% of real estate investments, ranking Denmark number 12 globally in terms of attracting international capital.Residential properties in CopenhagenFor residential rental properties in Copenhagen, 2025 was characterised by decreasing net initial yields and increasing rents. The net initial yield was down to 3.75% for prime locations, while rents increased by 3% relative to 2024. Vacancy rates declined further throughout the year to stand at 1.6% at the end of the year from an already low level of 2.0% at year-end 2024. The lower interest rates and positive developments in disposable incomes served to support the rising rent levels in 2025. Moreover, persistently low levels of construc-tion starts put further pressure on supply, which is expected to contribute to a continued upward trend in rent levels for residential properties going forward.Oce properties in CopenhagenThe market for oce properties in prime locations was characterised by overall stability in 2025. The net initial yield on oce properties in Copenhagen decreased from 4.13% at the end of 2024 to 4.0% at year-end 2025. Rents increased marginally in the same period. Furthermore, interest in serviced oces and oce hotels was seen to increase, including a preference for modern and certified oce properties. This trend is largely driven by stricter ESG requirements and is expected to support the value of certified properties in the long -term.At ALFA, we design and build from the inside out. When we create homes, we aim to deliver a distinctive blend of design and functionality—so you always feel the dier-ence when you enter an ALFA building or home.ALFA WorkALFA Development’s headquarters, ALFA Work, is located at Knud Højgaards Vej 2 in Søborg. ALFA Work won the award for Best Commercial Redevelopment Project in Denmark at the European Property Awards 2022, and in 2024 the talented canteen team at ALFA Work won the award for Best Canteen in Denmark.The property at Knud Højgaards Vej, which previously served as the headquarters of the Stark Group, has undergone a radical transformation. Once a typical oce building with closed oces, it has been transformed into ALFA Work: a modern, flexible multi-oce building with a focus on inno-vation, aesthetics, usability and sustainability. The environment at ALFA Work provides compa-nies with the best conditions for growth, exchange of ideas and inspiring each other. In addition, it is an oce building boasting a wide range of eye-catching and original details. Among other features, the building has more than 100 living plants, moss walls and an atrium with “floating” meeting rooms. The canteen at ALFA Work is not only a place to eat, but also a gathering point where employees working in the building can enjoy a break in a welcoming and socially inspiring setting. The canteen is known for its high quality, tasty food and fresh ingredients, impressing and inspiring canteen users every day. The dedication and crea-tivity of the canteen team were ocially recog-nised when the canteen was named Best Canteen in Denmark at the 2024 Canteen Awards. “We are incredibly proud to be named winners at the 2024 Canteen Awards. We are good at communicating sustainability, focusing on food waste and circular workflows. Many canteens, like us, are good at working with local producers and suppliers, but we stand out from the crowd how we communicate our sustainability initiatives,” says Sine Andersen, head chef at ALFA Work. At ALFA Work, ALFA Development is joined by other companies sharing the same values and ambitions, especially when it comes to inspiring and making a positive impact on the outside world. The innovativesolutions and the stylish design of ALFA Work have also contributed to the property winning the award for Best Commercial Redevelopment Project in Denmark at the European Property Awards 2022. Each year, the European Property Awards recog-nise the most original and innovative initiatives in the property and construction industry across a range of categories.READ MORE HERE →LOCATION MUNICIPALITY OF GLADSAXEYEAR OF CONSTRUCTION 2001AREA 4,638 MUNITS 3,450 M OFFICE SPACE, 932 M BASEMENT, 75 PARKING SPACESPerformanceFavourable development in operating income and cash flows with a strategic focus on developing investment properties. The Living By ALFA concept is still experiencing strong interest and rising rents. Going forward, our focus will be on developing those of our investment properties that oer development potential and divesting older investment properties with no development potential.In 2025, we recorded stable growth in operating income from the properties. The existing invest-ment properties performed in line with expecta-tions with stable operations and positive cash flows from operations.Value adjustments of investment properties for the financial year amounted to a total of DKK 35 million. Negative value adjustments amounted to DKK 2 million and were driven by minor adjust-ments to operating profit and positive market-re-lated adjustments of DKK 37 million. By way of comparison, total value adjustments were positive at DKK 1 million in 2024, composed of positive operational adjustments of DKK 17 million and negative market-related adjustments of DKK 16 million.Living By ALFA Irmabyen continues the positive development, and we are experiencing strong interest in the concept and increasing rents. We have consistently been able to achieve higher rent levels on reletting, which confirms the concept’s strength and market appeal. The property still consists of 101 rental units, 62 dwellings for adults without children living at home and a number of popular common areas, including a lounge area, a home cinema and an events room. The commer-cial units with restaurant, supermarkets and small service businesses continue to contribute positively to overall operations. Supported by the positive experience with the Living By ALFA concept, we will start construction of another Living By ALFA concept in Søborg Skovby in Gladsaxe in 2026.Investment properties amounted to DKK 1,387 million at 31 December 2025, against DKK 1,341 million at 31 December 2024. The value of invest-ment properties under construction increased to DKK 106 million and includes Kaetårnet in IrmaByen and the properties in Living By ALFA Søborg Skovby. Kaetårnet is recognised at DKK 0, because it is a heritage-listed building with an expected remaining refurbishment budget amounts to DKK 40.9 million, of which DKK 31.4 million is recognised under provisions.Acquired in September 2022, the investment properties at Rovsingsgade are currently let to car dealerships. The plot where the investment properties are located covers just over 20,000 m in the old industrial estate where the districts of Nørrebro, Østerbro and Nordvest meet. Rovsings-gade connects Tagensvej with Lyngbyvej and extends from the old railway line that has now been converted to a very popular park, Nørre-bropark. Our goal at Rovsingsgade is to support local planning in close cooperation with the City of Copenhagen and the other land owners in the area to create a new, safe urban area shared by the Nørrebro, Østerbro and Nordvest districts, witha particular focus on diversity, community and sustainability.The plan is to create a mixed-use urban area combining housing and light commercial activi-ties, and for the new urban area at Rovsingsgade to accommodate a broad target group, ranging from small families, who value city life, a secure neighbourhood and proximity to schools and day care institutions, to active middle-aged singles or couples looking for close communities, green areas and good infrastructure.Other investment properties with development potential are located at Smedeland in Glostrup and Mileparken/Marielundvej in Herlev. These properties were acquired with a view to future development of residential rental properties. Due to the current market conditions for new-build projects, we have chosen to continue the existing operations as investment properties until market conditions support a more profitable conversion for residential purposes. This flexible approach ensures a stable cash flow while we wait for devel-opment market conditions to improve.The investment portfolio is financed exclusively by mortgage loans which, according to the Danish Financial Statements Act, are recognised at amor-tised cost.Living By ALFA IrmaByenLiving By ALFA IrmaByen in Rødovre is our serviced Build-to-Rent concept, oering residents a residential experience focused equally on privacy and community. Living By ALFA has 101 rental units aimed at families, singles and couples, as well as 62 dwellings for adults without children living at home. Common to all residential units is their access to The Clubhouse, which serves as a central meeting place featuring facilities such as a lounge, a home cinema, a playroom, an event room with a kitchen, guest rooms, and a community team supporting social life in the building. Living By ALFA exemplifies our commitment to creating modern residential environments that meet the residents’ needs for privacy and commu-nity. The common areas have been developed in collaboration with designer Ulrik Wang, who has created a distinctive residential experience for the residents. In 2022, Living By ALFA was named the Best Emerging Coliving Concept at the international Coliving Awards in recognition of the project’s inno-vative approach to coliving communities. LOCATION MUNICIPALITY OF RØDOVREYEAR OF CONTRUCTION AREA , MUNIT  RENTAL UNITS AND  M COMMON AREASOur Living by ALFA concept has proven to be a great success in IrmaByen, where we have created a thriving, serviced community. Building on that success, we are now preparing to expand the concept to our upcoming urban development project, Søborg Skovby.ANDREEA KAISER COFOUNDER & CEOTechnology and community – an integrated experienceA customised app connects the residents, the community team and local area shops on a single platform. The app makes it easy for residents to stay up to date with the latest news at Living By ALFA and IrmaByen, communicate with fellow residents, book services and sign up for communal activities and events. The digital platform therefore supports the community on which the concept is built.Foundation of Living By ALFALiving By ALFA has, from the outset, been built around key megatrends, such as the sharing economy, community, convenience. intergenera-tional interaction, social responsibility and sustain-ability. The concept has drawn inspiration from successful living concepts around the world that encompass the real estate, hotel and hospitality industries and creates a holistic living experience transcending conventional housing models.Customer satisfaction in focusAs part of our eorts to meet the needs of resi-dents in our residential units and initiatives, we have teamed up with Prognosecenteret to conduct customer satisfaction surveys among the residents of IrmaByen. Prognosecenteret has more than 45 years of experience in preparing forecasts and analyses for the construction and property industry, which they are doing with great success in Norway and Sweden. By conducting the survey, we help establish a benchmark for customer satis-faction in the Danish property market. The objective is to understand the residents’ expe-rience of their homes and create the foundation for improving future housing projects. By collecting data from tenants in Living By ALFA, we can work purposefully to optimise the living experience and ensure that our property development are always aligned with our residents’ expectations.READ MORE HERE →Risk managementRisk is inherent in running our business. The purpose of the risk management process is to assess on a regular basis the risks associated with our business activities to ensure that we use our eorts and resources eciently and thereby minimise the most significant risks. We define risks as non-recurring events or trends that may have an impact on our business activities or our ability to execute strategic decisions in the best possible way as well as have an adverse impact on our earnings capacity and reputation. Our flat organisational structure and agile busi-ness approach ensure swift and timely responses to any risks identified. The risk management is based on a structured process with a view to analysing, acting on and evaluating measures initiated to reduce the impact of the risks identi-fied. Subsequently, we follow up on an ongoing basis to ensure that risks remain at an accept-able level. The risk management process may be divided into two parallel processes: – Strategic risk management Managing short- and long-term strategic scenarios of the business. – Operational risk management Managing identified risks in connection with the daily business operations.Strategic risk managementALFA Development’s Board of Directors meets four times a year to discuss short- and long-term stra-tegic risks. Significant risks identified are analysed and recommendations for risk mitigation measures are communicated to senior management as part of the risk management process. Senior manage-ment monitors the risk management process and will verify whether adequate measures have been initiated to reduce risks to an acceptable level. Operational risk managementSenior management meets weekly and holds monthly meetings with the department manage-ment team concerning significant incidents, activities and events in the business. Moreover, they evaluate and follow up on any risk mitigation measures initiated by the department manage-ment team. The department management team is responsible for identifying risks, initiating risk mitigation meas-ures, evaluating the measures and for following up on managed risks associated with their business area. The functions help support and facilitate the implementation of the risk management processes as well as handling the day-to-day operational risk management. Follow-up on managed risks are documented and discussed at status meetings to provide an insight into and an understanding of any risks occurred and their future impact on the business activities. Continuous risk assessmentResearchRisks will be identified and analysed to determine the cause, consequences and the likelihood of occurrence.ActionSignificant risks are prioritised and departments responsible for the individual risks are appointed. Necessary actions are initiated to reduce the risk.EvaluationCompleted risk mitigation measures are evaluated and implemented in the daily business practices. Reporting to stakeholders.MonitoringFollow-upOngoing follow-up on implemented measures and verification that managed risks remain at an acceptable level.Risk analysis in 2025ALFA Development’s latest strategic and operational risk analysis was conducted in the fourth quarter of 2025. The analysis identified seven risks that may have a significant impact on our earnings capacity and reputation as well as the likelihood of occurrence.The identified risks and risk mitigation measures are described below and on the following pages.Macroeconomics – Economic slowdown – Increased competition – Force majeure Political conditions – Changes to statutory framework – Changed infrastructural planning and local planCredit facilities – Inadequate financing – Impaired credit terms – Market rate fluctuationsLiquidity – Higher vacancy rate – Decline in sales – Unforeseen costsValuation – Subjective estimates – Volatile external and internal cost driversCompliance – Non-compliance with legislation – Unethical conductIT – Cyberattacks – System failureMacroeconomics – The property 1market and macroeconomicsKey risksPositive demand and price trends in relation to buildings and rental properties require a healthy competitive environment, a well-balanced property market and a stable economy. Increased competition may reduce the supply of investment opportunities and limit access to compe-tent sta resources. A decline in the property market may aect our sales opportunities and earnings capacity.Risk- ALFA Development continuously monitors the market mitigating to foresee changes to market conditions and compe-tition as early as possible. actionsIt is our ambition to be an agile business with a flat organisational structure which enables us to trans-form the business swiftly in the event of changing market conditions. Our business model provides a natural hedge, reducing the sensitivity to the cyclicality of the property market. Weaker demand in one business area, i.e. the devel-opment and sale of properties, may be absorbed by greater demand in the other business area, purchase and letting of properties. RiskForce majeure: Natural disasters, pandemics, war, etc.Decreasing property valuesConstruction costsPolitical conditions 2 – Legislation and local plansChanges to legislation or infrastructure planning may have an impact on our business activities. Changes to tax and VAT legislation, tenancy legis-lation, credit legislation or changes to infrastructure and local planning may potentially aect our devel-opment and rental business activities, the pipeline and future investment opportunities.In order to reduce political risks, ALFA Development actively monitors the political landscape so as to be able to respond in a timely manner to changes that may aect our business operations. We make every eort to influence the political process by being an active participant when decisions are made. This entails that to the extent possible we are involved in local politics and play an active role in the preparation of future local plans. Changes to statutory framework Changed infrastructure planning and local planCredit facilities – The capital market 3and interest rate developmentsAccess to credit facilities is a requirement for main-taining the desired level of investments in both the development and investment portfolios. Reduced access to financing, less favourable financing terms or market rate fluctuations may aect the pipeline, the profitability of the devel-opment portfolio as well as the valuation of the investment portfolio. ALFA Development has detailed and risk-focused business procedures and a well-balanced capital structure. A prudent mortgaging and interest rate risk profile with an overweight of long-term financing commit-ments in the investment portfolio ensures appropriate risk hedging in terms of the asset side. In addition, we have built good relationships with several of Denmark’s largest financial institutions during many years based on transparency, influence and trust. The above-mentioned issues reduce the funding risk to an acceptable level. Inadequate financingLess favourable credit termsMarket rate fluctuations Liquidity 4– Payment obligationsInsucient liquidity to meet our payment obligationsin a timely manner or to finance the Company’s development is referred to as liquidity risk. Declining sales in the development portfolio, a low occupancy rate in the investment portfolio or unforeseen costs are factors that may have a cash flow impact. Lastly, our liquidity may be aected by tenants’ inability or unwillingness to pay.ALFA Development operates with a fixed minimum level of liquidity to secure our ability to pay. The liquidity resources are secured by a structured forecast process, regularly monitoring and fore-casting future cash flows. In the event of any signs of deviations relative to the minimum level, timely actions may be initiated to ensure that we always maintain optimum financing and adequate liquidity. Higher vacancy rateDecline in salesUnforeseen costsValuation 5 5– Accounting estimatesKey risksThe fair value of the investment portfolio is based on estimates, and thus the valuation is subject to some degree of uncertainty. Factors that may aect the valuation include initial yield requirements, developments in conditions in the property market and in the financial markets as well as fluctuations in matters related to the individual property, e.g. occupancy rates, maintenance, etc.The above-mentioned factors have a direct eect on valuations and could impact the earnings of ALFA Development. Risk- The financial management process consists of busi-mitigating ness procedures and controls, ensuring that operating and balance sheet items are optimised and that the actionsbasis for valuation is true and fair. Regardless of these controls, valuation is based on an estimated rental income and any expected future costs for operations and maintenance. The controls initiated ensure that the estimates made are well-founded and objectively justified based on the experience amassed in the organisation, which reduces the risk to an acceptable level.RiskSubjective estimates Volatile external and internal cost drivers Compliance 66 – Rules and standardsIt is important that we and our business partners operate within the rules of law, comply with policies and ethical standards and that we act responsibly in every respect. Many of our business activities are regulated, whereas in some areas we are responsible for setting high standards. Failure to comply with legislation or to meet external expectations may have an adverse impact on our business. Responsible and ethical conduct is deeply embedded in our organisation. Communication, politics, guide-lines, internal controls and business processes provide the framework for how we and our business partners should address particularly risky situations or issues. Business partners are expected to meet the same high standards. Partners are selected not only on the basis of their finances and skills, but also on values such as integrity, honesty and responsibility to ensure a mutual understanding of good business practice. Ongoing follow-up from the functions and manage-ment ensures that we and our partners are compliant to the full extent possible. Non-compliance with legislation Unethical conductIT 7– System failure and cyberattacksStable IT systems are essential for day-to-day operations – from managing investments, servicing customers to analysis and reporting.We rely on safe, up-to-date and scalable systems to ensure that we may continuously make data-driven decisions, increase productivity and strengthen our business.The IT strategy is focused on cloud migration, standardisation and centralisation of systems and processes. Having systems which support the users with the focus on ecient business procedures and value creation is essential to obtaining a stable platform with high user acceptance.The platform is managed centrally in order to handle and reduce the amount of software and hardware in use. Centralisation provides better opportunities for managing and monitoring the platform, master data, standards, controls and security.Our IT supplier handles maintenance and operation of systems, security standards and controls. CyberattacksSystem failure Corporate governanceALFA Development is owned by SeedALFA Holding S.A.R.L., which elects the members of the Board of Directors. The Board of Directors is responsible for the Company’s overall vision and strategy, while the Executive Management is responsible for day-to-day management.ALFA Development A/S is wholly owned by Seed ALFA Holding S.A.R.L., which is equally owned by the couple Andreea Ioana Kaiser and Ludvig Find.The Board of Directors currently consists of Andreea loana Kaiser and Ludvig Find and the external and independent members Anders Wahrer (Chairman), Klaus Kaae and Peter Winther. The Board of Directors is responsible for the Company’s overall vision and strategy as well as following up on their implementation, with a view to ensuring value creation in the Company in the short and long-term.The Board of Directors determines the division of duties between the Board of Directors and the Executive Management, as well as the Executive Management’s tasks and employment conditions. In addition, the Board of Directors ensures clear guidelines for accountability, planning, follow-up and risk management.The Board of Directors supervises the Executive Management and lays down guidelines for the exercise of supervision. In its supervision, the Board of Directors must ensure that day-to-day operations and management are satisfactory and that the Executive Management possesses the right competencies.The Company’s management team during the financial year consisted of Andreea Kaiser (CEO), Christian Wæver (COO), Kristian Hare (CFO) and Jesper Buris (CCAO). The management registered with the Danish Business Authority consisted of Andreea Kaiser, Christian Wæver and Kristian Hare.Over the coming years, the focus will be on growing the Danish business and finding new attractive projects for the development busi-ness and the investment portfolio. The strategy dictates a long-term presence in Aarhus, where wesee opportunities in the long-term based on our current landholdings and options. Based on the Board of Directors’ guidelines, the Executive Management is responsible for the day-to-day management of ALFA Development A/S, which, among other things, includes ensuring reasonable liquidity and capital resources. In addition, the Executive Management works to achieve a professional organisational structure and a corporate culture that, based on skilled and dedicated employees, focuses on quality and customer satisfaction. The organisation works with quality, environment and safety, as well as the optimisation and streamlining of the Company’s business processes with a view to creating quality buildings and integrated urban neighbourhoods within a financially and sustainably satisfactory framework.Furthermore, the Executive Management is respon-sible for ALFA Development’s financial develop-ment, planning and reporting systems, as well as internal controls and risk management processes.Internal controlsThe purpose of ALFA Development’s control envi-ronment is to minimise significant risks associated with the business activities as well as to ensure that the financial reporting gives a true and fair view of the assets, liabilities and financial position of the Company.The Board of Directors and the Executive Manage-ment are responsible for supervising the eciency of ALFA’s control environment. The Executive Management is responsible for implementing and following up on internal controls for the sta func-tions and together with the management team for implementing and following up on internal controls in the various functions.Under the sta functions, the finance department is responsible for the financial reporting and control environment.The control environment of the business activi-ties consists of a number of mandatory standard processes such as segregation of functions, powers of procuration and powers to commit the Company, authorisation procedures and docu-mentation requirements.Internal controls in relation to financial reporting are planned with a view to ensuring that the reporting is free from material misstatement, whether due to error or fraud.The eciency of the internal controls is continu-ously monitored, and ongoing eorts are made to improve the control environment.Management structureGeneral meetingsBoard of DirectorsExecutive ManagementSta functionsDepartment Management TeamFunctions: – Development – Marketing and Sales – Construction – Operation and Refurbishment2025 was a busy year with a high level of activity, including the launch of several new projects, new land acquisitions and the establishment of new companies. At the same time, we continued our focused efforts to strengthen the organisation – including the appointment of Tina Guldbæk Glad as Head of Sales & Rental.Corporate Social Responsibility StatementApproach to Corporate Social ResponsibilityAt ALFA Development, corporate social respon-sibility is addressed systematically. The work is organised according to the Company's size, business model, and risk profile.Policies for Corporate Social Responsibility In 2025, ALFA Development developed and implemented a number of formalised policies for corporate social responsibility. All policies are publicly available on the Company's website. The policies are based on international guidelines for responsible business conduct and set out our expectations for both employees and business partners. The policies cover topics such as human rights, internal and external codes of conduct, tax, anti-corruption, and fair competition.The policies are actively used in our dialogue and contracting with partners and form the basis for our eorts to prevent and manage potential negative impacts within the aforementioned areas. We continuously conduct risk assessments and revise the policies if changes in the risk landscape of relevance to our business are identified. Implementation of the Policies An essential part of working with corporate social responsibility is to ensure that the policies are translated into action. Therefore, we focus on inte-grating due diligence processes into our manage-ment system and development projects, ensuring that assessment and management of risks are a natural part of decision-making processes.Environmental and Climate MattersIn the area of environmental and climate matters, ALFA Development works to reduce negative impacts from our activities. At present, ALFA Development has not yet formalised separate environmental and climate policies. Instead, environmental and climate eorts are integrated into specific objectives and requirements for each development project. We consider this approach to be most eective and appropriate for our Company. For example, we have established an objective that all new construction projects, at a minimum, they must allways be one step ahead og the Danish Building Regulations in terms of carbon footprint and life cycle assesment (LCA). Furthermore, projects under the Living By ALFA concept must achieve DGNB Gold certification and comply with the EU taxonomy criterion 7.1 for the construction of new buildings. Results in the Financial Year and Future Expectations In 2025, the work with corporate social responsi-bility contributed to a more structured approach to policies, clearer requirements for partners, and increased focus on risk management in both projects and operations. The eorts have strength-ened the overall foundation for work with environ-mental matters, social issues, and business ethics. Going forward, we expect to further develop these eorts, including further operationalisation of objectives and enhanced follow-up.Business Model and Significant Risks The Company's business model is based on the operation of properties and property development with a focus on long-term value creation and responsible management of environmental, social, and governance matters. The most significant risks related to corporate social responsibility are primarily associated with construction, where occupational health and safety, environmental and climate impact from materials, energy and transport, social issues and human rights in the value chain, as well as business ethics risks in business relationships, are areas considered to be of high risk. These risks are continuously identi-fied and managed through established policies, governance structures, dialogue with relevant parties, and systematic follow-up.Supplementary ESG ReportingIn 2025, ALFA Development prepared its first ESG report, which provides a more detailed insight into our work with environmental, social, and busi-ness ethics matters. At the same time, we have improved our ongoing collection and management of ESG data, providing a robust basis for strength-ening our strategic direction and creating tangible impact in our projects. Data ethics reportWe collect, use and share data in accordance with applicable laws and with a legitimate business purpose. Our data is stored securely and with legal basis in accordance with fixed procedures for deletion and request for access, etc. We do not use algorithms for systematic collection and registra-tion of information about customers, partners or employees.We have a policy for GDPR and data ethics based on ALFA Development’s existing GDPR policy. The policy establishes the Group’s data ethics guide-lines for the collection, use and sharing of data in order to ensure good practice and the rights of customers, partners and employees. In addition, the policy describes the anchoring in the business units and the eorts to ensure knowledge sharing and education of relevant representatives across the Group.The Executive Management ensures that a data ethics policy is developed and approved. They take the lead in ensuring that the principles are integrated into daily work. The Board of Direc-tors is ultimately responsible for assessing and updating the policy if necessary, though at least once a year.Data security is continuously monitored and checked immediately in case of a suspected attack. Any data security breaches or leakage of personal data are reported to the Danish Data Protection Agency. Our data is systematically stored in a protected database with backup and protection against cyberattacks. 85399000 118178000 21815000 20317000 45252000 83174000 33704000 31106000 -35290000 -658000 0 0 75437000 35662000 -11889000 -10789000 7190000 6512000 2241000 1487000 16606000 16486000 13735000 12786000 3318000 3898000 975000 0 3913000 8487000 0 0 51046000 8075000 -26890000 -25062000 0 0 64920000 9708000 179000 265000 5811000 8211000 1558000 9749000 1024000 5549000 29569000 30582000 7515000 11025000 23214000 -12493000 37350000 -12619000 -18179000 -7210000 -5958000 -4874000 41393000 -5283000 43308000 -7745000 92284000 95118000 0 0 5827000 8895000 674000 741000 105712000 0 0 0 1386642000 1340803000 0 0 1590465000 1444816000 674000 741000 0 0 1165479000 796759000 20000 20000 1014000 998000 20000 20000 1166493000 797757000 1590485000 1444836000 1167167000 798498000 233036000 145013000 0 0 0 0 0 0 0 14200000 0 0 233036000 159213000 0 0 520000 128000 0 0 70000 2702000 45629000 110476000 43882000 22529000 5227000 4344000 0 0 5191000 552000 11414000 6146000 1310000 719000 872000 1484000 7000 194000 56758000 32989000 57364000 116285000 68433000 280314000 51850000 218794000 358227000 472516000 109214000 335079000 1948712000 1917352000 1276381000 1133577000 61000000 61000000 61000000 61000000 0 0 475017000 547097000 979162000 937768000 513978000 398591000 0 0 0 0 1040162000 998768000 1049995000 1006688000 4942000 2744000 0 0 60816000 60039000 0 0 65758000 62783000 0 0 706954000 727696000 0 0 706954000 727696000 0 0 22764000 22288000 0 0 64595000 60051000 297000 196000 334000 329000 0 0 23556000 20268000 1499000 3549000 0 0 220510000 118781000 18518000 18050000 0 0 801000 164000 0 0 5270000 6955000 4080000 4363000 135838000 128105000 226386000 126889000 842792000 855801000 226386000 126889000 1948712000 1917352000 1276381000 1133577000 61000000 937768000 0 998768000 0 0 0 0 0 41394000 0 41394000 61000000 979162000 0 1040162000 61000000 547097000 398590000 0 1006687000 0 64920000 -21612000 0 43308000 0 137000000 -137000000 0 0 61000000 475017000 513978000 0 1049995000 Profit for the year Profit for the year 41393000 -5283000 -19459000 18883000 -78257000 -14930000 -56323000 -1330000 1740000 10017000 29569000 30582000 -84152000 -21895000 339000 10900000 -84491000 -32795000 114327000 18036000 30000 96000 Purchase of investment property under construction Purchase of investment property under construction 0 0 0 -19000 0 -6000 11168000 20918000 8536000 31758000 -111665000 -28767000 0 0 20266000 17905000 0 102000000 Change in short-term bank debt Change in short-term bank debt 4544000 -161401000 -15722000 -281306000 -211878000 -342868000 280311000 623182000 68433000 280314000 Cash 68,433 280,314Cash and cash equivalents, end of year 68,433 280,31427. AdjustmentsGroupDKK’000 2025 2024Depreciation, amortisation and impairment of property, plant and equipment and intangible assets 6,200 6,178Loss on sale of property, plant and equipment -22 5Value adjustment of investment properties -35,290 -658Other financial income -1,737 -10,014Other financial expenses 29,569 30,582Tax on profit/loss for the year -18,179 -7,210-19,459 18,88328. Change in working capitalGroupDKK’000 2025 2024Change in inventories -73,823 -4,175Change in receivables -5,048 4,477Change in trade payables and other payables 2,076 -11,842Other changes in working capital -1,462 -3,390-78,257 -14,930 1. Uncertainties about recognition or measurementThe Group’s investment properties are recognised at fair value. The Group uses a return-based valua-tion model based on normalised operating returns and relevant return requirements. As part of the fair value, potential building rights are included based on expected building percentages. The fair value calculation is naturally subject to uncertainty as it contains significant elements of estimates such as yield levels, rent levels and the adoption of the final local plan.The Other provisions are subject to material uncertainty, since the cost for finalizing the projects can be dicult to estimate. 2. Special itemsSpecial items include material income and expenses that have a special nature in relation to the compa-ny’s revenue-generating operating activities. Special items also include other substantial lump-sum-amounts.The result for the year is impacted positivly by reversal of impairment losses on current assets. Special items for the year are specified below, including where these are recognised in the income statement.GroupDKK’000 2025Income:Reversal of impairment losses on current assets 11,35211,352Special items are included in the following lines of the financial statements:Production costs 11,352Result of special items, net 11,35222. Fair value disclosuresGroupInvestment Investment properties under DKK’000propertiesconstructionFair value, end of year 1,386,642 0Changes for the year in fair value through profit or loss 35,929 -63925. Financial riskCurrency riskAs ALFA Development has very limited foreign currency transactions, its currency risk is considered insignificant.Interest rate riskAny changes in market rates will aect earnings and cash flows. Rising interest rates will have an adverse impact on earnings from both development activities and the investment property portfolio. Interest expenses on credit facilities related to land purchases and construction will inevitably increase with a resulting negative impact on the development portfolio. Investment property yields will be pushed upwards, creating a downward pressure on valuations. In relation to financing, interest expenses will generally speaking increase. However, as a consequence of ALFA Development’s financing strategy for its investment portfolio, the risk exposure is limited. The market value of mortgage debt will decrease if interest rates increase. 3. RevenueGroup Parent companyDKK’000 2025 2024 2025 2024Revenue 0 0 21,815 20,317Revenue relating to projects 3,900 36,852 0 0Revenue from restaurant 301 2,458 0 0Rental income, Commercial 51,967 50,705 0 0Rental income, Residential 29,231 28,163 0 085,399 118,178 21,815 20,317 344. StaGroup Parent companyDKK’000 2025 2024 2025 2024Wages and salaries 31,269 30,270 31,090 27,600Pensions 1,122 1,136 1,107 1,035Other social security costs 252 305 239 24032,643 31,711 32,436 28,875Executive Board 6,736 0 6,736 0Board of Directiors 448 0 448 0Board of Directors and Exectuve Board 7,184 2,717 7,184 2,717 36 33 30 For 2024, the Company is using the exception in §98 b, art. 3. 5. Fees to auditors appointed in general meetingGroup Parent companyDKK’000 2025 2024 2025 2024Total fee paid to Redmark, Godkendt Revisionspartnerselskab 1,815 1,573 352 254Statutory audit fee 1,200 1,134 158 140Tax services 90 0 52 0Assurance tasks 119 78 0 14Other services 406 361 142 1001,815 1,573 352 254 6. Other financial expensesGroup Parent companyDKK’000 2025 2024 2025 2024Financial expenses, subsidiaries 0 259 6,971 10,484Other financial expenses 29,569 30,323 544 54129,569 30,582 7,515 11,025 9. Land and buildingsGroup Parent companyDKK’000 2025 2024 2025 2024Cost, beginning of year 103,854 103.854 0 0Additions during the year 0 0 0 0Cost, end of year 103,854 103.854 0 0Depreciation and impairment, begenning of year -8,736 -5.902 0 0Depreciation and impairment for the year -2,834 -2.834 0 0Depreciation and impairment, end of year -11,570 -8.736 0 0Carrying amount, end of year 92,284 95.118 0 010. Other fixtures and fittings, tools and equipmentGroup Parent companyDKK’000 2025 2024 2025 2024Cost, beginning of year 19,800 19,902 4,361 4,361Additions during the year 305 0 305 0Disposals during the year -1,336 -102 -1,295 0Transfer 0 0 0 0Cost, end of year 18,769 19,800 3,371 4,361Depreciation and impairment, beginning of year -10,905 -7,561 -3,620 -3,269Depreciation and impairment for the year -3,366 -3,344 -372 -351Depreciation and impairment, assets sold 1,329 0 1,295 0Depreciation and impairment, end of year -12,942 -10,905 -2,697 -3,620Carrying amount, end of year 5,827 8,895 674 74111. Investment properties under constructionGroup Parent companyDKK’000 2025 2024 2025 2024Cost, beginning of year 7,870 7,864 0Additions during the year 105,712 6 0Transfers, net 0 0 0Cost, end of year 113,582 7,870 0Fair value adjustment, beginning of year -7,870 -7,864 0Development costs set off against provisions 0 0 0Valiue adjustments for the year -639 -941 0Transfers 639 935 0Fair value adjustment, end of year -7,870 -7,870 0Carrying amount, end of year 105,712 0 0Measurement at fair value is carried out for each individual property based on the property’s detailed budget, adjusted for fluctuations that are deemed to be of a non-recurring nature.The fair value of one of the properties at the time of completion is expected to be lower than the antici-pated refurbishment costs. Consequently, a provision has been recognised. The expected fair value of the property has been determined based on accounting estimates, which are described in further detail below.When calculating the return for each property, the assessment is based on expected rental income assuming full occupancy. Expected operating, administrative, and maintenance costs are deducted. The resulting value is then adjusted for recognised vacancy periods over an appropriate timeframe and expected costs relating to fit-out and major maintenance work, etc.The required rate of return is determined based on market statistics, completed transactions, and management’s knowledge of the property market in general. In determining the required rate of return, factors such as property type (residential, oce, retail, etc.), location, age, maintenance condition, lease terms, and tenants’ creditworthiness, among others, are taken into account. The valuation method applied remains unchanged from the previous year.Material assumptions underlying the calculated fair value are as follows:31/12 2025 31/12 2024Weighted average yield (commercial København) 6.60 % 6.60 %Vacancy (commercial København) 0 % 0 %Highest rent pr. m2 incl. utilities (commercial København) 1,500 kr. 1,550 kr.Lowest rent pr. m2 incl. utilities (commercial København) 1,050 kr. 1,050 kr.Furthermore, the following assumptions have been applied:The expected remaining renovation budget is included in the fair value calculation at DKK 40.3 million.The Group is in the process of constructing the first property in the project known as Søborg Skovby. The property comprises approximately 9,200 sqm and will be used for residential purposes.It is currently not considered possible to determine a suciently reliable fair value for some of the investment properties under construction. This is due to the fact that the construction is still at an early stage, and the budgets for both constrruction and operations are subjet to normal uncertainties and risks. In addition, letting of residantial units and other commercial premises has not yet commenced. Any deviations from the budget may impact the recognised value.Furthermore, the Group holds approximately 10,000 building rigths, which are likewise intended for resi-dential properties, as well as 575 sqm of commercial space designated for shared facilities. Construc-tion of these has not yet commenced. Based on the above the property in Søborg and the remaining building rigths are recognised at cost.No external valuation has been obtained in connection with the valuation of the Group’s investment properties under construction.Sensitivity analysisChanges in yields have a significant impact on the measurement of investment properties. If the yield increases, the market value declines. Market developments can lead to a change in net initial yield.The table below shows changes to the key metrics of the property portfolio on an increase/decrease in the required rate of return:Sensitivity analysis, DKK’000Required rate of return Theoretical value Carrying amount Difference Adj. equity7.10% -32,045 -31,399 -646 1,039,5166.85% -31,734 -31,399 -335 1,039,8276.60% -31,399 -31,399 0 1,040,1626.35% -31,038 -31,399 361 1,040,5236.10% -30,648 -31,399 751 1,040,913 7. Tax on profit for the yearGroup Parent companyDKK’000 2025 2024 2025 2024Tax on profit/loss for the year -801 164 -5,197 -552Adjustment of deferred tax 19,155 -7.374 -883 -4.322Prior-year tax adjustments -175 0 122 018,179 -7.210 -5,958 -4.874 64920000 9708 0 125000 -21612000 -142453 12. Investment propertiesGroup Parent companyDKK’000 2025 2024 2025 2024Cost, beginning of year 1,361,611 1.343.575 0Adjustment, cost, beginning of year 0 0 0Additions during the year 8,310 18.036 0Disposals during the year 0 0 0Transfers 0 0 0Cost, end of year 1,369,921 1.361.611 0Fair value adjustment, beginning of year -20,808 -22.207 0Adjustment, fair value adjustment, beginning of year 0 0 0Fair value adjustment for the year 37,529 1.399 0Fair value adjustment, assets sold 0 0 0Transfers 0 0 0Fair value adjustment, end of year 16,721 -20.808 0Carrying amount, end of year 1,386,642 1.340.803 0In 2025, financial expenses recognised in the investment properties amounted to DKK’000 44.The Group owns a number of investment properties, including residential, commercial and mixed-use properties. The total area of these properties amounts to 55,500 square meters. The properties are mainly located in Copenhagen and the greater Copenhagen area.When calculating the return for each property, the assessment is based on expected rental income assuming full occupancy. Expected operating, administrative, and maintenance costs are deducted. The resulting value is then adjusted for recognised vacancy periods over an appropriate timeframe and expected costs relating to fit-out and major maintenance work, etc., while deposits and prepaid rent are added.The net initial yield is determined on the basis of market statistics, actual trades and Management’s knowl-edge of the property market in general. The calculation of net initial yield takes into account parameters such as type (residential, oce, retail, etc.), location, age, state of maintenance, lease terms,tenant credit-worthiness, etc.This item includes potential building rights in addition to the Group’s investment properties. The Group performs an individual measurement annually on the basis of prices per metre of building rights in the areas. If such measurement is not possible, the potential building rights are recognised at cost.The valuation of the potential building rights is based on the expected plot ratios expected in the areas. Plots are valued on the basis of similar plots in the same area.The valuation method is consistent with that applied last year.In determining market value (carrying amount), the following yields are applied:2025 2024Location Parameter Residential Commercial Residential CommercialYield 3.88-4.25% 4.50-7.75% 4.07-4.50% 4.50-7.50%Copenhagen Vacancy 0.00% 0.00% 0.00-2.00% 0.00-5.00%and the Greater 2Building rights pr. m0-4,623 0 0-4,100 0Copenhagen area2Rent pr. m731-2,468 352-5,190 714-2,391 340-5,190The value of potential building rigths are listed as residential as this is our main target, but the final split between residential and commercial building rigths will be known in the local plan.Furthermore, the following assumptions have been applied:The valuation takes into account non-recurring expenses. Costs of DKK 6,919 thousands are expected to be incurred before the premises can be leased. In valuating potential building rights a building percentage of 160% have been applied. No external valu-ation has been obtained in connection with the valuation of the Group’s investment properties under construction.Sensitivity analysisChanges in yields have a significant impact on the measurement of investment properties. If the yield increases, the market value declines. Market developments can lead to a change in net initial yield.The table below shows changes to the key metrics of the property portfolio on an increase/decrease on the required rate of return: Sensitivity analysis, DKK’000Change in required rate of return Theoretical value Carrying amount Difference Adjusted equity0.50% 1,273,335 1,386,642 -113,307 951,7830.25% 1,327,636 1,386,642 -59,006 994,1370.00% 1,386,643 1,386,642 0 1,040,162-0.25% 1,453,470 1,386,642 66,828 1,092,288-0.50% 1,526,972 1,386,642 140,330 1,149,61913. Investments in group enterprisesGroup Parent companyDKK’000 2025 2024 2025 2024Cost, beginning of year 0 0 249,662 244,663Additions during the year 0 0 310,800 5,000Disposals during the year 0 0 0 0Cost, end of year 0 0 560,462 249,662Revaluations at 1 January 0 0 547,740 788,032Profit for the year 0 0 64,920 9,708Reversals for the year re. disposals 0 0 0 0Dividend 0 0 -7,000 -250,000Revaluations, year-end 0 0 605,660 547,740Amortisation of goodwill, beginning of year 0 0 -643 -643Amortisation of goodwill, end of year 0 0 -643 -643Carrying amount, end of year 0 0 1,165,479 796,759Subsidiaries Municipality OwnershipALFA Properties A/S Gladsaxe 100 %ALFA Parkering ApS Gladsaxe 100 %Holdingselskabet af 27.10.2010 ApS Gladsaxe 100 %Korsdalskvarteret ApS Gladsaxe 100 %Living By ALFA Mørkhøj ApS Gladsaxe 100 %Mørkhøj Bygade P/S Gladsaxe 100 %Korsdalsparken P/S Gladsaxe 100 %Rovsingsgadekvarteret P/S Gladsaxe 100 %Amager Strand 1 ApS Gladsaxe 100 %Amager Strand 4 ApS Gladsaxe 100 %Amager Strand 6 ApS Gladsaxe 100 %Amager Strand 8 ApS Gladsaxe 100 %Amager Strand 9 ApS Gladsaxe 100 %Amager Strand 11 ApS Gladsaxe 100 %LIVING by ALFA IrmaByen Holding ApS Gladsaxe 100 %LIVING by ALFA IrmaByen ApS Gladsaxe 100 %IrmaByen 3 ApS Gladsaxe 100 %IrmaByen 6 ApS Gladsaxe 100 %IrmaByen 7 ApS Gladsaxe 100 %Subsidiaries Municipality OwnershipIrmaByen 11 ApS Gladsaxe 100 %IrmaByen 12 ApS Gladsaxe 100 %IrmaByen 13 ApS Gladsaxe 100 %IrmaByen 14 ApS Gladsaxe 100 %IrmaByen 16 ApS Gladsaxe 100 %IrmaByen 17 ApS Gladsaxe 100 %IrmaByen 19 ApS Gladsaxe 100 %IrmaByen 20 ApS Gladsaxe 100 %ALFA Work Søborg A/S Gladsaxe 100 %Smedeland 6 ApS Gladsaxe 100 %Scandiagade ApS Gladsaxe 100 %Udviklingsselskabet af 1. Juli 2019 A/S Gladsaxe 100 %Trongården ApS Gladsaxe 100 %Bækhus Enge ApS Gladsaxe 100 %Marielundkvarteret 1 ApS Gladsaxe 100 %Marielundkvarteret 2 ApS Gladsaxe 100 %Marielundkvarteret Holding ApS Gladsaxe 100 %ALFA Services ApS Gladsaxe 100 %ALFA Komplementar ApS Gladsaxe 100 % 14. DepositsGroup Parent companyDKK’000 2025 2024 2025 2024Cost, beginning of year 20 39 998 983Additions during the year 0 0 16 15Disposals during the year 0 -19 0 0Cost, end of year 20 20 1,014 998Carrying amount, end year 20 20 1,014 998 15. Project portfoliosGroup Parent companyDKK’000 2025 2024 2025 2024Project portfolios 233,036 145,013 0 0233,036 145,013 0 0In 2025, financial expenses recognised in the project portfolio amounted to DKK’000 2,199. 16. Deferred tax assetsGroup Parent companyDKK’000 2025 2024 2025 2024Deferred tax assets, beginning of year 22,529 12,412 4,344 22Deferred tax on profit/loss for the year 21,353 11,453 883 4,322Transferred to deferred tax liabilities 0 -1,336 0 043,882 22,529 5,227 4,344The Group’s deferred tax asset of DKK 43.9 million relates to tax loss carryforward. Management makes estimates of future taxable income in assessing whether and when deferred tax assets will be utilised. Management has prepared a plan for the utilisation of the recognised tax asset, which is expected to be realised within the next five years. Of the DKK 43.9 million, DKK 41.5 million is expected to be utilised more than 12 months after the end of the financial year. The Parent Company’s deferred tax asset of DKK 5.2 million relates to tax loss carryforwards. Manage-ment estimates the future taxable income in assessing whether and when deferred tax assets will be utilised. Management has prepared a plan for the utilisation of the recognised tax asset, which is expected to be realised within the next five years. The deferred tax asset is expected to be substantially utilised within 12 months after the end of the financial year. 17. PrepaymentsPrepayments comprise costs incurred in relation to subsequent years, including deferred rental rebates and project costs paid in advance. 18. Share capitalThe share capital consists of 2,440 shares of DKK’000 25 each and multiples thereof. The share capital is not divided into share classes. 19. Provisions for deferred taxGroup Parent companyDKK’000 2025 2024 2025 2024Provisions for deferred tax, beginning of the year 2,744 0 0 0Deferred tax on profit/loss for the year 2,198 4,080 0 0Transferred to deferred tax asset 0 -1,336 0 04,942 2,744 0 0 20. Other provisionsGroup Parent companyDKK’000 2025 2024 2025 2024Other provisions, beginning of year 60,039 62,694 0 0Changes in other provisions for the year 777 -2,655 0 060,816 60,039 0 0Maturing within one year 17,740 19,362 0 0Other provisions consist of expected costs relating to investments properties under construction and cost related to finalising projects. 23. Mortgages and guaranteesGroupAs security for debt to mortgage credit institutions in the amount of DKK 776.7 million, the Group has mortgaged investment properties with a carrying amount at 31 December 2025 of DKK 1,332.7 million and land and buildings with a carrying amount at 31 December 2025 of DKK 92.3 million.As security for debt to homeowners associations, DKK 0, a mortgage deed of DKK’000 129 has been registered on investment properties with a carrying amount at 31 December 2025 of DKK 52.3 million.ParentAs security for debt to banks in the amount of DKK 62 thousand, the parent have provided its shares in a subsidiary carrying amount at 31 December 2025 DKK 512.7 million as deposit. 21. Debt to mortgage credit institutionsGroup Parent companyDKK’000 2025 2024 2025 2024Total debt to mortage credit institutions 729,718 749,984 0 0Maturing within one year -22,764 -22,288 0 0706,954 727,696 0 0Portion of debt maturing after five years 622,540 643,057 0 0 24. Contractual liabilities and contingent itemsContingent assetsGroupIn addition to a deferred tax asset already recognised in the amount of DKK 43.9 million, a group company holds another potential deferred tax asset of DKK 10.1 million which has not been recognised.Contractual liabilities and contingent liabilitiesGroupThe Group has entered into construction contracts, where the remaining obligation as of December 31, 2025 amounts to DKK 292.9 million. The Group’s financial institutions have issued payment guarantees to suppliers and mortgage institu-tions totaling DKK 74.1 million.The Group has entered into operating lease agreements for equipment. The remaining lease term ranges from 28 to 35 months, and the total remaining lease obligation amounts to DKK 327 thousand.In connection with the sale of investment properties, the Group has a potential obligation regarding final property taxes up to the transfer date, as only preliminary property taxes for the income years 2022 and 2023 have been recognized as of the transfer date. At this time, it is not possible to reliably quantify the obligation. Additionally, the Group has a potential obligation pursuant to an unregistered easement on real estate. Management considers the obligation related to real estate to be very limited.During the financial year, the Group has been presented with a claim from the purchaser of a previ-ously sold property. The claim is disputed by the Company, and based on the information available, Management assesses that the claim will not result in a financial loss for the Company. As at the date of approval of the annual report, the matter has not been finally resolved. Consequently, no provision has been recognised.The group is party to a pending case concerning notice on defects. Management’s assesment is that the case will not aect the consolidated financial statements beyond what have already been recognised in the balance sheet. The Group has committed, for the next seven years, to donate 15% of a portion of its positive taxable income (before osetting tax losses carried forward from previous years). Parent companyThe parent company has provided a surety guarantee for the liabilities of LIVING by ALFA IrmaByen ApS to a financial institution. As of December 31, 2025, the company’s debt to the financial institution amounts to DKK 0 million. The parent company has provided a surety guarantee for the liabilities of Smedeland 6 ApS to the finan-cial institution. As of December 31, 2025, the company has no debt to the financial institution. The parent company has provided guarantees for the liabilities of the following subsidiaries to the mort-gage institution:• ALFA Properties A/S, mortgage debt to the mortgage credit institution as of December 31, 2025, amounts to 72,931 t.DKK, and the guarantee amounts to a maximum of 52,279 t.DKK.• Marielundkvarteret 1 ApS, mortgage debt to the mortgage credit institution as of December 31, 2025, amounts to 5,510 t.DKK.• Marielundkvarteret 2 ApS, mortgage debt to the mortgage credit institution as of December 31, 2025, amounts to 7,349 t.DKK.• Rovsingsgadekvarteret P/S, mortgage debt to the mortgage credit institution as of December 31, 2025, amounts to 136,406 t.DKK.• Scandiagade ApS, mortgage debt to the mortgage credit institution as of December 31, 2025, amounts to 66,910 t.DKK.• Smedeland 6 ApS, mortgage debt to the mortgage credit institution as of December 31, 2025, amounts to 21,121 t.DKK.• Living by ALFA IrmaByen ApS, mortgage debt to the mortgage credit institution as of December 31, 2025, amounts to 417,160 t.DKK.The parent company guarantees payment of subsidiary obligations, with the remaining payment as of December 31, 2025, amounting to DKK 1 million.The parent company has entered into a lease agreement with a subsidiary, which is non-cancelable for 18 months. The annual rent amounts to DKK 2 million.The parent company is liable for overdue VAT under the joint VAT registration. The total obligation under the joint registration amounts to DKK’000 0 as of December 31, 2025.The parent company has confirmed that it will provide sucient liquidity to support the operations of certain subsidiaries for the coming year.In connection with the sale of investment properties, the Parent Company has provided guarantees for a subsidiary’s potential obligation regarding final property taxes up to the transfer date, as only provi-sional property taxes for the fiscal years 2022 and 2023 have been accounted for as of the transfer date. At present, it is not possible to reliably quantify the obligation. Additionally, the Parent Company has provided guarantees for a subsidiary’s potential obligation pursuant to an unregistered servitude on real property. Management considers the obligation related to real property to be strongly limited.During the financial year, the Company has been presented with a claim from the purchaser of a previ-ously sold property. The claim is disputed by the Company, and based on the information available, Management assesses that the claim will not result in a financial loss for the Company. As at the date of approval of the annual report, the matter has not been finally resolved. Consequently, no provision has been recognised.Joint taxationThe Company is the designated management company for the national tax pool and is jointly and severally liable with the other enterprises in the tax pool for the total income tax.The Company is jointly and severally liable with the other enterprises in the tax pool for any obligation to withhold tax on interest, royalties and dividends.The liability for withholding tax on dividends, interest and royalties amounted to DKK 0.Any subsequent adjustments of income tax and withholding tax may result in the Company’s liability being of a dierent amount. 26. Related partiesPrincipal shareholderSeedALFA Holding S.A.R.L.412 F, Route d’EschL-1471 LuxembourgLuxembourgTransactionsIn accordance with section 98 C(7) of the Danish Financial Statements Act, it is disclosed that the Company had no related party transactions that were not conducted on an arm’s length basis. Accounting policiesThe annual report for ALFA Development A/S has been presented in accordance with the Danish Financial Statements Act regulations concerning reporting class C enterprises (large enterprises). Recognition and measurement in generalIncome is recognised in the income statement concurrently with its realisation, including the recognition of value adjustments of financial assets and liabilities. Likewise, all costs are recog-nised in the income statement, including depre-ciations amortisations, write downs for impair-ment, provisions, and reversals due to changes in estimated amounts previously recognised in the income statement.Assets are recognised in the statement of financialposition when it seems probable that future economic benefits will flow to the group and the value of the asset can be reliably measured.Liabilities are recognised in the statement of finan-cial position when it is seems probable that future economic benefits will flow out of the group and the value of the liability can be reliably measured. Assets and liabilities are measured at cost at the initial recognition. Hereafter, assets and liabilities are measured as described below for each indi-vidual accounting item.Certain financial liabilities are measured at amor-tised cost, allowing a constant eective interest rate to be recognised during the useful life of the liability. Amortised cost is recognised as the original cost less any payments, plus/less accruedamortisations of the dierence between cost and nominal amount. In this way, capital losses and gains are allocated over the useful life of the liability. Upon recognition and measurement, allowances are made for such predictable losses and risks which may arise prior to the presentation of the annual report and concern matters that exist on the reporting date.Foreign currency translationTransactions in foreign currency are translated by using the exchange rate prevailing at the date of the transaction. Dierences in the rate of exchange arising between the rate at the date of transaction and the rate at the date of payment are recognised in the profit and loss account as an item under net financials. If currency positions are considered to hedge future cash flows, the value adjustments are recognised directly in equity in a fair value reserve.Receivables, payables, and other foreign currency monetary items are translated using the closing rate. The dierence between the closing rate and the rate at the time of the occurrence or initial recognition in the latest financial statements of the receivable or payable is recognised in the income statement under financial income and expenses.DerivativesAt their initial recognition, derivatives are recognised at cost in the statement of financial position. Hereafter, they measured at fair value. Positive and negative fair values of derivatives are recognised under other receivables and payables, respectively.Changes in the fair value of derived financial instruments classified as and meeting the criteria for hedging the fair value of a recognised asset or a recognised liability are recognised in the income statement together with changes in the fair value of the hedged asset or the hedged liability.Changes in the fair value of derived financial instruments classified as hedging of future cash flows are recognised in other receivables or other payables, and in equity.If the future transaction results in the recogni-tion of assets or liabilities, amounts previously recognised in equity are transferred to the cost of the asset or the liability, respectively. If the future transaction results in income or costs, amounts recognised in equity on a continuing basis are transferred to the income statement for the period in which the hedged item aected the income statement.For derived financial statements that are no longer recognised as hedging instruments, changes in fair value are recognised in the income statement on a current basis.Fair value hierarchyThe company applies the concept of fair value when recognising investments properties and the value of financial instruments. Fair value is defined as the amount at which an asset or a liability could be exchanged in an arm’s length transaction between knowledgeable, willing parties. Measure-ment at fair value is based on a primary market. Four levels in the fair value hierarchy are used to calculate this value: 1. Fair value measurement in a comparable market2. Measurement according to recognised valuation methods based on observable market inputs3. Measurement based on recognised valuation methods and reasonable estimates4. CostThe Group uses level 3.The consolidated financial statementsThe consolidated income statements comprise the parent company ALFA Development A/S and those group enterprises of which ALFA Development A/S directly or indirectly owns more than 50 % of the voting rights or in other ways exercise control.Consolidation principlesThe consolidated financial statements have been prepared as a summary of the parent company's and the group enterprises' financial statements by adding together uniform accounting records calculated in accordance with the group's accounting policies.Investments in group enterprises are eliminated by the proportionate share of the group enterprises' fair value of net assets and liabilities at the acqui-sition date.On consolidation, intra group income and expenses, equity investments, balances and divi-dends as well as realised and unrealised gains and losses on transactions between the consolidated entities are eliminated.IIn the consolidated financial statements, the accounting records of the group enterprises are recognised by 100%. The minority interests' share of the profit for the year and of the equity in the group enterprises, which are not 100% owned, is included in the group's profit and equity, but presented separately.Business combinationsBusiness combinations completed on or after 1July 2018 (consolidation method).Acquisition of group enterprises are dealt with in accordance with the acquisition method, and afterwards the assets and liabilities of the acquired entity are measured at fair value at the date of acquisition. If it is possible to measure the value reliably, acquired contingent liabilities are measured at fair value under the item Equity investments in group enterprises.The date of acquisition is the date when control of the acquired entity is obtained.The cost of the acquired entity represents the fair value of the consideration agreed upon, including the considerations that are conditional on future events. Transaction costs directly attributable to the acquisition of group enterprises are recognised in the income statement as incurred.Positive dierences between the cost of the acquired entity and the identified assets and liabilities are recognised in the equity investment as goodwill, which is amortised on a straight line basis in the income statement over the expected useful life. Amortisation of goodwill is allocated to the functions to which the goodwill relates. If the dierence is negative, this is recognised immedi-ately in the income statement.If the allocation of the purchase price is not final, positive and negative dierences from acquired group enterprises may, as a result of changes in recognition and measurement of the identified net assets, be adjusted up to 12 months from the date of acquisition. These adjustments are also reflected in the value of goodwill or negative good-will, including depreciation already made.Business combinations (the carrying amount method)In case of intercompany business combinations, the carrying amount method is applied. By this method, the two enterprises are united at carrying amounts, and dierences are not identified. Any considerations exceeding the carrying amount in the acquired entity are recognised directly in equity.The carrying amount method is implemented on the acquisition date, and comparative figures are not modified.Income statementRevenueThe enterprise will be applying IAS 18 as its basis of interpretation for the recognition of revenue.Revenue is recognised in the income statement if delivery and passing of risk to the buyer have taken place before the end of the year and if the income can be determined reliably and inflow is anticipated. Revenue is measured at the fair value of the consideration promised exclusive of VAT and taxes and less any discounts relating directly to sales.Rental income comprises income from the letting of properties and common charges and is recog-nised in the income statement in the period to which the rent pertains. Income relating to the heating accounts is recognised in the balance sheet as balances with tenants.Production costsProduction costs include the manufacturing and procurement costs incurred to achieve the revenue for the year. Direct and indirect manufacturing costs are recognized, including costs for raw mate-rials and consumables, wages and salaries, energy consumption, maintenance, leasing and depreci-ation on production facilities, with adjustments for changes in finished goods inventories and work in progress.Production costs also comprise repair and main-tenance costs, direct and indirect taxes and other costs in relation to investment properties. Costs relating to the heating accounts are recognised in the balance sheet as balances with lessees.Furthermore, production costs comprise research costs, development costs which do not meet the criteria for capitalisation, and amortisation of capitalised development costs.Distribution costsDistribution costs comprise costs incurred for the distribution of goods sold during the year and for sales campaigns carried out during the year. Also, costs concerning sales sta, advertising and exhibitions costs, and depreciations.Administrative expensesAdministration expenses comprise expenses incurred during the year concerning management and administration, including expenses concerning administrative sta, the executive board, oce premises, stationery and oce supplies, and depreciations.Other operating incomeOther operating income comprises items of a secondary nature as regards the principal activ-ities of the enterprise, including profit from the disposal of tangible assets.Other operating expensesOther operating expenses comprise items secondary to the principal activities of the enter prise, including donations.Value adjustment of investment propertiesValue adjustment of investment property comprises value adjustments of properties at fair value and profit or loss from the disposal of properties.Results from investments in group enter-prisesAfter full elimination of intercompany profit or loss less amortised consolidated goodwill, the equity investment in the individual entities are recognised in the income statement of the parent as a propor-tional share of the entities' post tax profit or loss.Financial income and expensesFinancial income and expenses are recognised in the income statement with the amounts concerning the financial year. Financial income and expenses comprise interest income and expenses, realised and unrealised capital gains and losses relating to securities, debt and transac-tions in foreign currency, amortisation of financial liabilities as well as surcharges and reimburse-ments under the advance tax scheme, etc.Interest expenses and other expenses on loans financing projects are recognised in the cost of the project portfolios.Tax on net profit or loss for the yearTax for the year comprises the current income tax for the year and changes in deferred tax and is recognised in the income statement with the share attributable to the net profit or loss for the year and directly in equity with the share attributable to entries directly in equity. The parent and the Danish group enterprises are subject to Danish rules on compulsory joint taxation of Danish group enterprises. The parent acts as an administration company in relation to the joint taxation. This means that the total Danishincome tax payable by the Danish group compa-nies is paid to the tax authorities by the company.The current Danish income tax is allocated among the jointly taxed companies proportional to their respective taxable income (full allocation with reimbursement of tax losses).Balance sheetProperty, plant and equipmentProperty, plant, and equipment are measured at cost less accrued depreciation and write down for impairment. Land is not subject to depreciation.The depreciable amount is cost less any expected residual value after the end of the useful life of theasset. The amortisation period and the residual value are determined at the acquisition date and reassessed annually. If the residual value exceeds the carrying amount, the depreciation is discon-tinued.If the amortisation period or the residual value is changed, the eect on amortisation will, in future, be recognised as a change in the accounting estimates.The cost comprises acquisition cost and costs directly associated with the acquisition until the time when the asset is ready for use.Where individual components of an item of prop-erty, plant and equipment have dierent useful lives and the individual components constitute a substantial part of the total cost of the item, they are accounted for as separate items, which are depreciated separately.Depreciation is done on a straight line basis according to an assessment of the expected useful life and the residual value of the individual assets:Residual Useful lifevalueBuildings 15-70 years 0%Other fixtures and fittings, tools and equipment 3-5 years 0%Minor assets with an expected useful life of less than 1 year are recognised as costs in the income statement in the year of acquisition.Profit or loss derived from the disposal of property, land, and equipment is measured as the dierence between the sales price less selling costs and the carrying amount at the date of disposal. Profit or loss is recognised in the income statement as other operating income or other operating expenses.LeasesThe enterprise will be applying IAS 17 as its base of interpretation for recognition of classification and recognition of leases.At their initial recognition in the statement of financial position, leases concerning property, plant, and equipment where the group holds all essential risks and advantages associated with the proprietary right (finance lease) are measured either at fair value of the asset being leased or at the present value of the future lease payments, whichever value is lower. When calculating the present value, the discount rate used is the internal rate of return of the lease or, alternatively, the borrowing rate of the enterprise. Hereafter, assets held under a finance lease are treated in the same way as other similar property, plant, and equipment.The capitalised residual lease commitment is recognised in the statement of financial position as a liability other than provisions, and the interest part of the lease is recognised in the income state-ment for the term of the contract.All other leases are regarded as operating leases. Payments in connection with operating leases and other lease agreements are recognised in the income statement for the term of the contract. The group's total liabilities concerning operating leases and lease agreements are recognised under contingencies.Investment propertiesAt the initial recognition, investment properties are measured at cost, comprising the cost price of the property and any directly related costs.This item includes potential building rights in addition to the Group’s investment properties. The Group annually performs an individual measure-ments the basis of prices per metre of building rights in the area. If such measurement is not possible, the potential building rights are recog-nised at cost.Investment properties are subsequently measured at fair value, corresponding to the amount for which the individual property is estimated to be able to sell for on the balance sheet date to an independent buyer. The fair value is calculated using a return based model based on the budg-eted net earnings for the following year, restated according to normal earnings and by applying a required rate of return reflecting the market’s actual required rate of return of similar proper-ties. The value is adjusted for factors that are not reflected in normalized earnings, such as actual rent loss due to vacancy, major refurbishment work, etc. Compared to the latest financial year, the methods of measurement used have not been changed.Costs adding new or improved qualities to an investment property compared to its condition at the time of acquisition, thereby improving the future return on the property, are added to the cost as an improvement. Costs which do not add new or improved qualities to an investment prop-erty are recognized in the income statement under the item ”Costs concerning investment property”.Like other property, plant, and equipment except for land, investment property has a limited economic life. The impairment taking place concurrently with the ageing of the investment property is reflected in the continuing measure-ment of the investment property at fair value. Therefore, no systematic depreciations are made over the useful life of the investment property.Value adjustments are recognized in the income statement under the item ”Value adjustments of property”.If a reliable fair value cannot be determined, investment properties under construction are measured at cost. Cost comprises other external costs incurred in the construction of the property.Financial expenses directly attributable to the construction of the property are also recognised in cost.InvestmentsInvestments in group enterprisesInvestments in group enterprises are recognised and measured by applying the equity method. Theequity method is used as a method of consolida-tion.Investments in group enterprises are recognised in the balance sheet at the proportionate share of the enterprise's equity value. This value is calcu-lated in accordance with the parent's accounting policies with deductions or additions of unrealised intercompany gains and losses as well as with additions or deductions of the remaining value of positive or negative goodwill calculated in accordance with the acquisition method. Negative goodwill is recognised in the income statement at the time of acquisition of the equity investment. If the negative goodwill relates to contingent liabili-ties acquired, negative goodwill is not recognised until the contingent liabilities have been settled or lapsed.Investments in group enterprises with a negative equity value are measured at DKK 0, and any accounts receivable from these enterprises are written down to the extent that the account receiv-able is uncollectible. To the extent that the parent has a legal or constructive obligation to cover an negative balance that exceeds the account receiv-able, the remaining amount is recognised under provisions.To the extent the equity exceeds the cost, the net revaluation of equity investments in group enter-prises transferred to the reserve under equity for net revaluation according to the equity method. Dividends from group enterprises expected to be adopted before the approval of this annual report are not subject to a limitation of the revaluation reserve. The reserve is adjusted by other equity movements in group enterprises.Newly acquired or newly established companies are recognised in the financial statement as of thetime of acquisition. Sold or liquidated companies are recognised until the date of disposal.On the acquisition of enterprises, the acquisi-tion method, the uniting of interests method or the book value method is applied, cf. the above description under Business combinations.Impairment loss relating to non-current assetsThe carrying amount of tangible fixed assets as well as equity investments in group enterprises are subject to annual impairment tests in order to disclose any indications of impairment beyond those expressed by amortisation and depreciation respectively.If indications of impairment are disclosed, impair-ment tests are carried out for each individual assetor group of assets, respectively. Write down for impairment is done to the recoverable amount if this value is lower than the carrying amount.The recoverable amount is the higher value of value in use and selling price less expected selling cost. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the asset group and expected net cash flows from the sale of the asset or the asset group after the end of their useful life.Previously recognised impairment losses are reversed when conditions for impairment no longer exist. Impairment relating to goodwill is not reversed.InventoriesProject portfolios are measured at cost. Where the net realisable value is lower than cost, project portfolios are written down to this lower value.Goods for resale are measured at cost in accord-ance with the FIFO method. Where the net real-isable value of goods for resale is lower than the acquisition cost, the investment is written down to this lower value.The cost of project portfolios comprises other of the projects' external costs incurred in the construction Financial expenses directly attribut-able to the project are also recognised in cost.The cost of goods for resale comprises the purchase price plus delivery costs.The net realisable value of inventories is calculated as the expected selling price less completion costs and costs incurred in making the sale. The net realisable value is determined taking into account marketability, obsolescence and changes in the expected selling price.ReceivablesReceivables are measured at amortised cost, which usually corresponds to nominal value.In order to meet expected losses, impairment takes place at the net realisable value. The company has chosen to use IAS 39 as a basis for interpre-tation when recognising impairment of financial assets, which means that impairments must be made to oset losses where an objective indica-tion is deemed to have occurred that an account receivable or a portfolio of accounts receivable is impaired. If an objective indication shows that an individual account receivable has been impaired, an impairment takes place at individual level.PrepaymentsPrepayments recognised under assets comprise incurred costs concerning the following financial year.Cash and cash equivalentsCash and cash equivalents comprise cash at bank.EquityReserve for revaluation according to the equity methodThe reserve for net revaluation according to the equity method comprises net revaluation of equity investments in subsidiaries proportional to cost.The reserve may be eliminated in the event of losses, realisation of equity investments, or changes in the accounting estimates.The reserve cannot be recognised by a negative amount.DividendDividend expected to be distributed for the year is recognised as a separate item under equity. Income tax and deferred taxAs administration company, ALFA Development A/S is liable to the tax authorities for the subsidi-aries' corporate income taxes.Current tax liabilities and current tax receivable are recognised in the statement of financial position as calculated tax on the taxable income for the year, adjusted for tax of previous years' taxable income and for tax paid on account.The company is jointly taxed with consolidated Danish companies. The current corporate income tax is distributed between the jointly taxed compa-nies in proportion to their taxable income and with full distribution with reimbursement as to tax losses. The jointly taxed companies are comprised by the Danish tax prepayment scheme.Joint taxation contributions payable and receiv-able are recognised in the statement of financial position as ”Tax receivables from group enter-prises" or "Income tax payable to group enter-prises"Deferred tax is measured on the basis of tempo-rary dierences in assets and liabilities with a focus on the statement of financial position. Deferred tax is measured at net realisable value.Adjustments take place in relation to deferred tax concerning elimination of unrealised intercompany gains and losses.Deferred tax is measured based on the tax rules and tax rates applying under the legislation prevailing in the respective countries on the reporting date when the deferred tax is expected to be released as current tax. Changes in deferred tax due to changed tax rates are recognised in the income statement, except for items included directly in the equity.Deferred tax assets, including the tax value of tax losses allowed for carryforward, are recognised at the value at which they are expected to be real-isable, either by settlement against tax of future earnings or by set o in deferred tax liabilities within the same legal tax unit. Any deferred net tax assets are measured at net realisable value.ProvisionsProvisions comprise expected costs of guarantee commitments, completion of projects sold and construction of investment properties. Provisions are recognised when the group has a legal or actual commitment resulting from a previously occurred event and when it is probable that the settlement of the liability will result in consumption of the financial resources of the group.Provisions are measured at net realisable value or at fair value. If the fulfilment of a liability is expected to take place far in the future, the liability is measured at fair value.Guarantee liabilities comprise liabilities for repairs within the guarantee period of 1 5 years. Provisionsfor guarantee commitments are measured on basisof the obtained experience with guarantee work. Provisions with an expected due date later than 1 year from the reporting date are discounted at a rate reflecting risk and maturity of the liability.Liabilities other than provisionsFinancial liabilities other than provisions related to borrowings are recognised at the received proceeds less transaction costs incurred. In subsequent periods, the financial liabilities are recognised at amortised cost, corresponding to the capitalised value when using the eective interest rate. The dierence between the proceeds and the nominal value is recognised in the income statement during the term of the loan.Mortgage loans and bank loans are thus meas-ured at amortised cost which, for cash loans, corresponds to the outstanding payables. For bond loans, the amortised cost corresponds to an outstanding payable calculated as the underlying cash value at the date of borrowing, adjusted by amortisation of the market value on the date of the borrowing eectuated over the repayment period.Liabilities other than provisions relating to invest-ment properties are measured at amortised cost.Other liabilities are measured at amortised cost which usually corresponds to the nominal value.Statement of cash flowsThe cash flow statement shows the cash flows of the group for the year, divided in cash flows deriving from operating activities, investment activities and financing activities, respectively, the changes in the liabilities, and group’ cash and cash equivalents at the beginning and the end of the year, respectively.A cash flow statement for the parent has not been prepared as the cash flows of the enterprise are included in the consolidated cash flow statement, cf. section 86, subsection 4, of the Danish Finan-cial Statements Act.The eect on cash flows derived from the acqui-sition and sale of enterprises appears separately under cash flows from investment activities. In the statement of cash flows, cash flows derived from acquirees are recognised as of the date of acquisi-tion, and cash flows derived from sold enterprises are recognised until the date of sale.Cash flows from operating activitiesCash flows from operating activities are calcu-lated as the group's share of the profit adjusted fonon cash operating items, changes in the working capital, and corporate income tax paid. Dividend income from equity investments are recognised under “Interest income and dividend received”.Cash flows from investing activitiesCash flows from investment activities comprise payments in connection with the acquisition and sale of enterprises and activities as well as the acquisition and sale of intangible assets, property,plant, and equipment, and investments, respec-tively.Cash flows from financing activitiesCash flows from financing activities include changes in the size or the composition of the group's share capital and costs attached to it, as well as raising loans, repayments of interest bearing payables and payment of dividend to shareholders.Cash and cash equivalentsCash and cash equivalents comprise cash at bank and in hand. Cash and cash equivalents held in escrow accounts are recognised as receivables and adjusted through changes in working capital. true Søborg Andreea Ioana Kaiser Christian Hasling Wæver Kristian Hare CEO COO CFO Anders Håkan Wahrer Andreea Ioana Kaiser Erik Ludvig Find Chair Klaus Kaae Peter Winther Management’s statementToday, the board of Directors and the Executive Board have approved the annual report of ALFA Devel-opment A/S for the financial year 2025. The annual report has been prepared in accordance with the Danish Financial Statements Act.We consider the chosen accounting policy to be appropriate, and in our opinion, the consolidated finan-cial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2025, and the results of the Group and the Company's operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2025.Further, in our opinion, the Management’s review gives a true and fair review of the matters discussed in the Management’s review.We recommend that the annual report be approved at the Annual General Meeting. To the Shareholder of ALFA Development A/S OpinionWe have audited the consolidated financial statements and the parent company financial statements of ALFA Development A/S for the financial year 1 January to 31 December 2025, which comprise income statement, balance sheet, statement of changes in equity, notes and a summary of significant accounting policies for both the Group the Parent Company, as well as consolidated statement of cash flows. The consolidated financial statements and the parent company financial statements are prepared under the Danish Financial Statements Act.In our opinion, the consolidated financial state-ments and the parent company financial state-ments give a true and fair view of the financial position of the Group and the Parent Company at 31 December 2025, and of the results of the Group and the Company’s operations as well as the consolidated cash flows for the financial year 1 January - 31 December 2025 in accordance with the Danish Financial Statements Act. Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and the Parent Company Financial Statements” section of our report. We are independent of the Group in accordance with the International Ethics Stand-ards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these require-ments and the IESBA Code. We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for our opinion. Management’s Responsibilities for the Consolidated Financial Statements and the Parent Company Financial StatementsManagement is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial state-ments and parent company financial statements that are free from material misstatement, whether due to fraud or error.In preparing the consolidated financial state-ments and the parent company financial state-ments, Management is responsible for assessing the Group´s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the consolidated financial statements and the parent company financial statements unless Management either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and the Parent Company Financial StatementsOur objectives are to obtain reasonable assur-ance about whether the consolidated financial statements and the parent company financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial state-ments and parent company financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements and the parent company financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sucient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrep-resentations, or the override of internal control.• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circum-stances, but not for the purpose of expressing an opinion on the eectiveness of the Group´s and the Company’s internal control.• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.• Conclude on the appropriateness of Manage-ment’s use of the going concern basis of accounting in preparing the consolidated financial statements and the parent company financial statements and, based on the audit evidence obtained, whether a material uncer-tainty exists related to events or conditions that may cast significant doubt on the Group´s and the Company’s ability to continue as a going concern. If we conclude that a material uncer-tainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements and the parent company financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audi-tor’s report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern.• Evaluate the overall presentation, structure and contents of the consolidated financial state-ments and the parent company financial state-ments, including the disclosures, and whether the consolidated financial statements and the parent company financial statements represent the underlying transactions and events in a manner that gives a true and fair view.• Plan and perform the group audit to obtain sucient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated financial statements and the parent company financial statements. We are responsible for the direc-tion, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with govern-ance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Statement on Management’s ReviewManagement is responsible for Management’s Review.Our opinion on the consolidated financial statements and the parent company financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the consolidated financial statements and the parent company financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially incon-sistent with the consolidated financial statements and the parent company financial statements or our knowledge obtained during the audit, or other-wise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that Management’s Review is in accordance with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statement Act. We did not identify any material misstatement of Management’s Review. Aalborg RedmarkGodkendt Revisionspartnerselskab 29442789 Steen Jensen State Authorised Public Accountant mne27739 39200250 www.alfadev.dk info@alfadev.dk Gladsaxe Hasseris Bymidte 6 9000 Aalborg Danske Bank Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2025-01-01 2025-12-31 2024-01-01 2024-12-31 2026-06-18 Regnskabsklasse C, stor virksomhed 2006-07-01 2026-06-18 29442789 Redmark Godkendt Revisionspartnerselskab Hasseris Bymidte 6 9000 Aalborg Opinion Basis for Opinion 2026-06-18