Sharenet Sites 
Sharenet Sites
Unaudited condensed consolidated financial results for the three months ended 31 March 2015
NEW EUROPE PROPERTY INVESTMENTS PLC
(Incorporated and registered in the Isle of Man with registered number 001211V)
(Registered as an external company with limited liability under the laws of South
Africa,
(Registration number 2009/000025/10)
AIM share code: NEPI JSE share code: NEP BVB share code: NEP
ISIN: IM00B23XCH02
(“NEPI”, “the Group”, or “the Company”)
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2015
The Company is required to publish financial results for the three months ended 31 March 2015 in terms of the rules of the
Romanian Financial Supervisory Authority ('RFSA') and the Rule Book of the Bucharest Stock Exchange ('BVB'). Accordingly, this
announcement presents the unaudited condensed consolidated financial results of the Group in respect of the financial period from
1 January 2015 to 31 March 2015 in a form compliant with the requirements of the RFSA and the BVB.
All amounts in € ‘000 unless otherwise stated
IFRS Accounts
Unaudited Audited Unaudited
CONSOLIDATED STATEMENTS OF INCOME 31 Mar 2015 31 Dec 2014 31 Mar 2014
Net rental and related income 22 298 61 749 14 624
Contractual rental income and expense recoveries 31 938 87 017 19 763
Property operating expenses (9 640) (25 268) (5 139)
Administrative expenses (703) (2 839) (536)
Acquisition fees (520) (2 357) (107)
Fair value adjustments of investment property – 27 980 –
Fair value gains / (losses) of financial investments at fair value
– 1 299 (150)
through profit or loss
Dividends received from financial investments – 2 417 803
Share-based payment expense (7) (675) (3)
Foreign exchange loss (55) (241) (847)
Gain on acquisition of subsidiaries – 1 400 1 400
Gain on disposal of investment property – 619 –
Profit before net finance income 21 013 89 352 15 184
Net finance income/(expense) 1 072 1 412 (1 516)
Finance income 1 702 7 315 1 385
Finance expense (630) (5 903) (2 901)
Share of (loss)/ profit of joint ventures (161) 4 148 (368)
Profit before tax 21 924 94 912 13 300
Deferred tax expense (2 663) (637) (535)
Profit after tax 19 261 94 275 12 765
Non-controlling interest 1 755 4 920 515
PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS 21 016 99 195 13 280
Weighted average number of shares in issue 274 638 368 225 426 685 199 836 882
Diluted weighted average number of shares in issue 278 186 394 229 775 959 204 544 236
Basic weighted average earnings per share (euro cents) 7.65 44.00 6.65
Diluted weighted average earnings per share (euro cents) 7.55 43.17 6.49
Distributable earnings per share (euro cents) 8.61 29.69 7.34
Headline earnings per share (euro cents) 7.65 30.19 5.94
Diluted headline earnings per share (euro cents) 7.55 29.62 5.81
Unaudited Audited Unaudited
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 Mar 2015 31 Dec 2014 31 Mar 2014
ASSETS
Non-current assets 1 502 668 1 368 193 910 017
Investment property 1 402 862 1 269 299 818 560
Investment property at fair value 1 140 791 978 980 705 920
Investment property under development 262 071 208 246 112 640
Advances paid for investment property – 82 073 –
Goodwill 22 828 17 639 16 218
Investments in joint ventures 9 033 13 241 5 124
Long-term loans granted to joint ventures 31 578 30 395 38 714
Other long-term assets 36 216 37 444 30 115
Financial assets at fair value through profit or loss 151 175 1 286
Current assets 144 547 148 705 154 863
Trade and other receivables 49 087 40 469 33 047
Financial investments at fair value through profit or loss – – 30 649
Cash and cash equivalents 95 460 108 236 91 167
Investment property held for sale 27 688 27 360 1 561
TOTAL ASSETS 1 674 903 1 544 258 1 066 441
EQUITY AND LIABILITIES
Equity attributable to equity holders 1 250 076 1 241 289 724 494
Share capital 2 793 2 746 1 999
Share premium 1 075 750 1 074 310 632 302
Share-based payment reserve 4 135 4 127 3 456
Currency translation reserve (1 229) (1 229) (1 229)
Accumulated profit 176 181 167 133 89 360
Non-controlling interest (7 554) (5 798) (1 394)
Total liabilities 424 827 302 969 341 947
Non-current liabilities 233 892 241 345 240 113
Loans and borrowings 149 252 171 071 178 080
Deferred tax liabilities 67 322 57 517 51 213
Other long-term liabilities 14 054 9 171 6 759
Financial liabilities at fair value through profit or loss 3 264 3 586 4 061
Current liabilities 190 935 61 624 101 834
Trade and other payables 69 873 38 365 27 061
Loans and borrowings 121 062 23 259 74 773
TOTAL EQUITY AND LIABILITIES 1 674 903 1 544 258 1 066 441
RECONCILIATION OF NET ASSET VALUE TO ADJUSTED NET ASSET Unaudited Audited Unaudited
VALUE 31 Mar 2015 31 Dec 2014 31 Mar 2014
Net asset value per the statement of financial position 1 250 076 1 241 289 724 494
Loans in respect of the Initial Share Scheme 8 003 9 132 11 574
Deferred tax liabilities 67 322 57 517 51 213
Goodwill (22 828) (17 639) (16 218)
Deferred tax liabilities/(assets) for joint ventures 2 434 (1 610) (480)
Adjusted net asset value
1 305 007 1 288 689 770 583
Net asset value per share (euro)
4.48 4.52 3.63
Adjusted net asset value per share (euro)
4.62 4.63 3.77
Number of shares for net asset value per share purposes 279 250 260 274 526 188 199 836 882
Number of shares for adjusted net asset value per share purposes 282 423 985 278 138 240 204 544 236
Unaudited Unaudited
KEY PERFORMANCE INDICATORS 31 Mar 2015 31 Mar 2014
Current liquidity ratio 1.24* 1.54
Gearing ratio (debt to equity) 12% 25%
Tenant’s receivable turnover 5.77 days 7.54 days
Return on investment property 8% per annum 8% per annum
* Computation includes the revolving facilities remaining unused as at 31 March 2015
Management Accounts
CONSOLIDATED STATEMENTS OF INCOME 31 Mar 2015 31 Dec 2014 31 Mar 2014
Gross rental income 23 943 67 459 16 342
Net service charge and operating expenses (592) (1 733) (820)
Service charge and other recoveries 9 491 25 619 4 886
Property operating expenses (10 083) (27 352) (5 706)
Net operating income 23 351 65 726 15 522
Corporate expenses (1 554) (4 667) (920)
Property management net result 760 1 498 306
EBITDA 22 557 62 557 14 908
Net finance income/(expense) 1 499 3 372 (903)
Finance income 619 6 374 1 726
Finance expense (1 691) (7 502) (3 990)
Interest capitalised on development costs 2 571 4 500 1 361
Direct investment result 24 056 65 929 14 005
Indirect investment result (3 040) 33 266 (725)
Profit for the year attributable to equity holders 21 016 99 195 13 280
Reverse indirect result 3 040 (33 266) 725
Company specific adjustments (102) 2 273 1 008
Distributable earnings before issue cum distribution 23 954 68 202 15 013
Issue cum distribution adjustment 362 6 870 –
Distributable earnings 24 316 75 072 15 013
Distributable earnings per share (euro cents) 8.61 29.69 7.34
of which recurring distributable earnings per share (euro cents) 8.61 29.69 7.34
Distribution per share (euro cents) – 32.22 –
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 Mar 2015 31 Dec 2014 31 Mar 2014
ASSETS
Non-current assets 1 529 040 1 389 772 933 624
Investment property 1 469 842 1 334 512 886 003
Income producing properties at fair value 1 200 850 1 038 545 760 789
Developments at cost 268 992 213 894 125 214
Advances paid for investment property – 82 073 –
Goodwill 22 828 17 639 16 218
Long-term loans granted 36 219 37 446 30 117
Financial assets at fair value through profit or loss 151 175 1 286
Current assets 175 983 180 526 166 740
Investment property held for sale 27 688 27 360 1 561
Trade and other receivables 50 039 41 199 34 672
Financial investments at fair value through profit and loss – – 30 649
Cash and cash equivalents 98 256 111 967 99 858
TOTAL ASSETS 1 705 023 1 570 298 1 100 364
LIABILITIES 454 947 329 009 375 870
Loans and borrowings 294 912 218 399 283 748
Deferred tax liabilities 69 756 55 907 50 733
Other long-term liabilities 14 348 9 446 6 864
Financial liabilities at fair value through profit and loss 4 878 5 104 4 837
Trade and other payables 71 053 40 153 29 688
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS 1 250 076 1 241 289 724 494
TOTAL LIABILITIES AND EQUITY ATTRIBUTABLE TO EQUITY HOLDERS 1 705 023 1 570 298 1 100 364
Adjusted NAV per share (euro) 4.62 4.63 3.77
RECONCILIATION OF PROFIT FOR THE PERIOD TO DISTRIBUTABLE EARNINGS
31 Mar 2015 31 Dec 2014 31 Mar 2014
Profit for the period attributable to equity holders 21 016 99 195 13 280
Unrealised foreign exchange loss 19 350 868
Acquisition fees 520 2 357 107
Share-based payment expense 7 675 3
Accrued interest on share-based payments 100 542 141
Fair value adjustments of investment property – (35 227) –
Fair value gains of financial investments at fair value through profit – (1 299) 150
or loss
Fair value adjustment of financial assets and liabilities (202) 2 882 1 262
Amortisation of financial assets (166) (708) (184)
Dividends received from financial investments – (2 417) (803)
Accrued dividend from financial investments – 2 304 1 016
Gain on disposal of investment property – (619) –
Gain on acquisition of subsidiaries – (1 400) (1 400)
Deferred tax expense 2 660 1 567 573
Shares issued cum distribution 362 6 870 –
DISTRIBUTABLE EARNINGS FOR THE PERIOD 24 316 75 072 15 013
Distribution from reserves – 6 659 –
Less: distribution declared – (81 731) –
Interim distribution – (33 475) –
Final distribution – (48 256) –
Earnings not distributed 24 316 – 15 013
Number of shares entitled to distribution 282 423 985 278 138 240 204 544 236
Distributable earnings per share for the period (euro cents) 8.61 29.69 7.34
Distribution from reserves per share (euro cents) – 2.53 –
Less: Distribution declared per share (euro cents) – (32.22) –
Interim distribution per share (euro cents) – (14.87) –
Final distribution per share (euro cents) – (17.35) –
Earnings per share not distributed (euro cents) 8.61 – 7.34
BASIS OF PREPARATION
These unaudited condensed consolidated financial results for the three months ended 31 March 2015 have been prepared in
accordance with the recognition and measurement criteria of the International Financial Reporting Standards (“IFRS”), its
interpretations adopted by the International Accounting Standards Board (“IASB”), the presentation and the disclosure
requirements of IAS 34 Interim Financial Reporting and the JSE Listings Requirements. The accounting policies which have been
applied are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2014.
As the Group is focusing on being consistent in those areas of reporting that are seen to be of most relevance to investors and on
providing a meaningful basis of comparison for users of the financial information, it has prepared unaudited management accounts.
The main difference between the management accounts and the financial statements is that the management accounts statements
are prepared using the proportionate consolidation method for investments in joint-ventures, which is not in accordance with IFRS
(but consistent with financial statements prepared in accordance with IFRS reported before 1 January 2013), while the IFRS financial
statements use the equity method for accounting for these investments (following the adoption of IFRS 11 ‘Joint Arrangements’
effective 1 January 2013).
The management accounts have been prepared by and are the responsibility of the below mentioned Directors of NEPI. Due to its
nature, the management accounts may not fairly reflect the financial position and results of the Group after the differences set out
above.
These unaudited condensed consolidated financial results for the three months ended 31 March 2015 have not been reviewed or
reported on by the Group’s external auditors.
Martin Slabbert (Chief Executive Officer), Mirela Covasa (Finance Director)
15 May 2015
For further information please contact: New Europe Property Investments Plc, Mirela Covasa: +4 072 137 1100
Nominated Adviser and Broker: Smith & Williamson Corporate Finance Limited, Azhic Basirov: +44 20 7131 4000
JSE sponsor: Java Capital: +27 11 722 3050
Romanian advisor: SSIF Intercapital Invest SA, Razvan Pasol: +40 21 222 8731
Date: 15/05/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
