Raptis Group Limited - Quarterly Activity Report to 30 June 2024

Business Activities

The Gallery Residences letting and caretaking business has continued to operate normally, generating a stable income flow. The audited accounts for 30 June 2024 will reflect the fair value recognition of any increment or decrement based on the investment property independent valuation at that date. An increment of $100,000 is anticipated in the unaudited management reports, following a $274,850 increment at 30 June 2023, which was an increase from the valuation dated 17 September 2021.

The management rights business cost is amortized according to IAS 38 Intangible Assets and is not disclosed at market value. Amortisation for the twelve months to 30 June 2024 is expected to be $61,504, compared to $77,805 in the prior year as disclosed in the 2023 Annual Report. Historically, the industry has shown growth in valuation multipliers over the past 30 years, and the asset class is generally considered to have lower business risk than property development.

Financial Updates

The management accounts to 30 June 2024 have not yet been audited but disclose a contingent liability of $100,000 for a personal injury claim. This amount represents the insurance excess, and there is significant uncertainty regarding the matter. However, it is not expected to exceed the insurance excess, and negotiations are ongoing to settle the issue appropriately.

The Pearl Main Beach Caretaking and Letting agreements were approved for acquisition by members at a general meeting. The building is nearing completion, with management rights expected to commence operations in September 2024. A deposit of $100,000 has been paid towards the acquisition of this asset and is noted in the Quarterly Cash Flow to 30 June 2024.

Property Development and Cash Flow

Project research and discussions with prospective Joint Venture/Funding partners are ongoing. The development of a residential resort tower on the Gold Coast is in the feasibility stage, with no firm commitments at this time. Negotiations are in the early stages and will be reported to the market as per Listing Rules.

Management rights are providing a consistent monthly cash flow. The quarter is not covered by 'use of funds' reporting as specified in section 4.7C.2.