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Unaudited Condensed Consolidated Financial Results For The Nine Months Ended 30 September 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
Registered office: 2nd Floor, Anglo International House, Lord Street, Douglas, Isle of Man, IM1 4LN
AIM share code: NEPI
BVB share code: NEP
JSE share code: NEP
ISIN: IM00B23XCH02
('NEPI', 'the Group' or 'the Company')
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015
The Company is required to publish financial results for the nine months ended 30 September 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
30 September 2015 in a form compliant with the requirements of the RFSA and the BVB.
All amounts in EUR '000 unless otherwise stated
Management Accounts
CONSOLIDATED STATEMENT OF INCOME 30 Sep 2015 31 Dec 2014 30 Sep 2014
Gross rental income 79 105 67 459 47 107
Net service charge and operating expenses (2 544) (1 733) (1 234)
Service charge and other recoveries 30 417 25 619 17 403
Property operating expenses (32 961) (27 352) (18 637)
Net operating income 76 561 65 726 45 873
Corporate expenses (5 758) (4 538) (2 939)
Property management net result 2 251 1 498 1 011
EBITDA 73 054 62 686 43 945
Net finance (expense) (1 373) (1 677) (1 572)
Finance expenses (11 880) (15 676) (12 653)
Finance income 3 338 6 374 5 306
Interest capitalised on development costs 7 169 7 625 5 775
Non-controlling interest (9 449) 4 920 3 097
Direct investment result 62 232 65 929 45 470
Indirect investment result 57 232 33 266 (116)
Profit for the period attributable to equity holders 119 464 99 195 45 354
Reverse indirect result (57 232) (33 266) 116
Company specific adjustments 13 983 2 273 1 894
Distributable earnings before issue cum distribution 76 215 68 202 47 364
Issue cum distribution adjustment 500 6 870 2 445
Distributable earnings 76 715 75 072 49 809
Distributable earnings per share (euro cents) 27.03 29.69 21.63
of which recurring distributable earnings per share (euro cents) 26.45 29.69 21.63
Distribution per share (euro cents) 18.17 32.22 14.87
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 Sep 2015 31 Dec 2014 30 Sep 2014
ASSETS
Non-current assets 1 792 252 1 389 772 1 019 856
Investment property 1 735 265 1 334 512 965 779
Investment property at fair value 1 559 116 1 038 545 794 355
Developments at cost 176 149 213 894 171 424
Advances paid for investment property – 82 073 –
Goodwill 25 240 17 639 16 218
Other long-term assets 31 633 37 446 37 519
Financial assets at fair value through profit or loss 114 175 340
Current assets 151 271 180 526 256 207
Investment property held for sale 27 143 27 360 35 018
Trade and other receivables 57 014 41 199 40 528
Financial investments at fair value through profit or loss – – 32 937
Cash and cash equivalents 67 114 111 967 147 724
Total assets 1 943 523 1 570 298 1 276 063
LIABILITIES 613 710 329 009 331 908
Loans and borrowings 442 952 218 399 227 165
Deferred tax liabilities 93 180 55 907 52 001
Other long-term liabilities 14 969 9 446 7 386
Financial liabilities at fair value through profit or loss 3 713 5 104 5 480
Trade and other payables 58 896 40 153 39 876
Equity attributable to equity holders 1 329 813 1 241 289 944 155
Total liabilities and equity attributable to equity holders 1 943 523 1 570 298 1 276 063
Adjusted net asset value per share (euro) 4.93 4.63 4.12
RECONCILIATION OF PROFIT FOR THE PERIOD TO DISTRIBUTABLE EARNINGS 30 Sep 2015 31 Dec 2014 30 Sep 2014
Profit for the period attributable to equity holders 119 464 99 195 45 354
Unrealised foreign exchange loss (131) 350 37
Acquisition fees 743 2 357 826
Share-based payment expense 670 675 665
Accrued interest on share-based payments 103 542 425
Fair value adjustments of investment property (78 419) (35 227) –
Fair value gains of financial investments at fair value through profit or loss – (1 299) (2 307)
Fair value adjustment of financial assets and liabilities (1 330) 2 882 2 850
Amortisation of financial assets (1 874) (708) (550)
Dividends received from financial investments – (2 417) (2 417)
Accrued dividend for financial investments – 2 304 2 041
Gain on disposal of investment property – (619) –
Gain on acquisition of subsidiaries – (1 400) (1 400)
Deferred tax expense 21 178 1 567 1 840
Shares issued cum distribution 500 6 870 2 445
Adjustments related to non-controlling interest
Fair value adjustment of Investment property 19 353 – –
Deferred tax expense (3 542) – –
Distributable earnings for the period 76 715 75 072 49 809
Distribution from reserves – 6 659 1 593
Less: distribution declared (51 304) (81 731) (33 475)
Interim distribution (51 304) (33 475) (33 475)
Final distribution – (48 256) –
Earnings not distributed 25 411 – 17 927
Number of shares entitled to distribution 283 775 750 278 138 240 240 161 543
Distributable earnings per share for the period (euro cents) 27.03 29.69 21.63
Distribution from reserves per share (euro cents) – 2.53 0.71
Less: Distribution declared per share (euro cents) (18.17) (32.22) (14.87)
Interim distribution per share (euro cents) (18.17) (14.87) (14.87)
Final distribution per share (euro cents) – (17.35) –
Earnings not distributed (euro cents) 8.86 – 7.46
LEASE EXPIRY PROFILE 2015 2016 2017 2018 2019 2020 2021 2022 2023 >2024 Total
Total based on rental income 0.7% 4.2% 10.4% 13.4% 14.3% 17.6% 11.6% 3.7% 2.9% 21.2% 100%
Total based on rented area 0.3% 2.4% 7.7% 13.2% 12.9% 14.6% 10.6% 4.3% 5.5% 28.5% 100%
BASIS OF PREPARATION
These unaudited condensed consolidated financial results for the nine months ended 30 September 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 Directors of NEPI. Due to their nature, the management accounts may not fairly reflect the financial position
and results of the Group after the differences set out above.
The condensed consolidated financial results for the nine months ended 30 September 2015, prepared in accordance with IFRS
and the management accounts have not been reviewed or reported on by the Group's external auditors.
By order of the Board of Directors
Alex Morar (Chief Executive Officer), Mirela Covasa (Finance Director)
2 November 2015
IFRS Accounts
Unaudited Audited Unaudited
CONSOLIDATED STATEMENT OF INCOME 30 Sep 2015 31 Dec 2014 30 Sep 2014
Net rental and related income 73 339 61 749 42 935
Contractual rental income and expense recoveries 104 993 87 017 60 052
Property operating expenses (31 654) (25 268) (17 117)
Administrative expenses (3 499) (2 839) (1 897)
Acquisition fees (743) (2 357) (826)
Fair value adjustments of investment property 77 167 27 980 –
Fair value gains on financial investments at fair value through profit or loss – 1 299 2 307
Dividends received from financial investments – 2 417 2 417
Share-based payment expense (670) (675) (665)
Foreign exchange gain/(loss) 53 (241) (72)
Gain on acquisition of subsidiaries – 1 400 1 400
Gain on disposal of investment property – 619 –
Profit before net finance income/(expense) 145 647 89 352 45 599
Net finance income/(expense) 3 211 1 412 (168)
Finance income 7 179 7 315 5 283
Finance expense (3 968) (5 903) (5 451)
Share of (loss)/profit of joint ventures (3 414) 4 148 (1 447)
Profit before tax 145 444 94 912 43 984
Deferred tax expense (16 531) (637) (1 727)
Profit after tax 128 913 94 275 42 257
Non-controlling interest (9 449) 4 920 3 097
Profit for the period attributable to equity holders 119 464 99 195 45 354
Weighted average number of shares in issue 279 252 882 225 426 685 214 793 968
Diluted weighted average number of shares in issue 281 047 360 229 775 959 219 392 598
Basic earnings per share (euro cents) 42.78 44.00 21.12
Diluted earnings per share (euro cents) 42.51 43.17 20.67
Unaudited Audited Unaudited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 Sep 2015 31 Dec 2014 30 Sep 2014
ASSETS
Non-current assets 1 764 821 1 368 193 991 708
Investment property 1 663 399 1 269 299 894 219
Investment property at fair value 1 497 501 978 980 726 396
Investment property under development 165 898 208 246 167 823
Advances paid for investment property – 82 073 –
Goodwill 25 240 17 639 16 218
Investments in joint ventures 9 826 13 241 4 046
Long-term loans granted to joint ventures 34 612 30 395 39 368
Other long-term assets 31 630 37 444 37 517
Financial assets at fair value through profit or loss 114 175 340
Current assets 120 167 148 705 216 368
Trade and other receivables 56 440 40 469 38 996
Financial investments at fair value through profit or loss – – 32 937
Cash and cash equivalents 63 727 108 236 144 435
Investment property held for sale 27 143 27 360 35 018
Total assets 1 912 131 1 544 258 1 243 094
EQUITY AND LIABILITIES
Total equity attributable to equity holders 1 329 813 1 241 289 944 155
Share capital 2 837 2 746 2 306
Share premium 1 083 693 1 074 310 797 975
Share-based payment reserve 4 797 4 127 31 876
Currency translation reserve (1 229) (1 229) (1 229)
Accumulated profit 236 064 167 133 117 202
Non-controlling interest 3 651 (5 798) (3 975)
Total liabilities 582 318 302 969 298 939
Non-current liabilities 346 785 241 345 237 364
Loans and borrowings 239 502 171 071 173 718
Deferred tax liabilities 90 143 57 517 52 405
Other long-term liabilities 14 675 9 171 7 115
Financial liabilities at fair value through profit or loss 2 465 3 586 4 126
Current liabilities 235 533 61 624 61 575
Trade and other payables 57 176 38 365 38 385
Loans and borrowings 178 357 23 259 23 190
Total equity and liabilities 1 912 131 1 544 258 1 243 094
KEY PERFORMANCE INDICATORS 30 Sep 2015
Current liquidity ratio* 0.78
Gearing ratio** 21.3%
Tenant's receivable turnover 25 days
Return on investment property 7.1% p.a.
*Current liquidity ratio=(Current assets+Unused Revolving Facilities)/ Current liabilities
**Gearing ratio=(Loans and borrowings-Cash and cash equivalents)/(Investment property+Financial investments at fair value through profit or loss)
Share-based Currency Non-
CONSOLIDATED STATEMENT Share Share payment translation Accumulated controlling
OF CHANGES IN EQUITY capital premium reserve reserve profit interest Total
Balance at 1 January 2014 1 999 632 296 3 453 (1 229) 76 595 (878) 712 236
Transactions with owners 747 442 014 674 – (8 657) – 434 778
- Issue of shares 715 427 289 – – – – 428 004
- Share-based payment reserve – – 11 882 – – – 11 882
– Sale of shares issued under
the Current Share Scheme 12 3 293 (431) – – – 2 874
- Vesting of shares issued under
the Initial Share Scheme – – 675 – – – 675
– Vesting of shares issued under
Current Share Scheme 13 4 791 (4 804) – – – –
– Reclassification of Current
Share Scheme 7 6 641 (6 648) – – – –
– Earnings distribution – – – – (8 657) – (8 657)
Total comprehensive income – – – – 99 195 (4 920) 94 275
– Profit for the period – – – – 99 195 (4 920) 94 275
Balance at 31 December 2014 2 746 1 074 310 4 127 (1 229) 167 133 (5 798) 1 241 289
Balance at 1 January 2015 2 746 1 074 310 4 127 (1 229) 167 133 (5 798) 1 241 289
Transactions with owners 91 9 383 670 – (50 533) – (40 389)
– Issue of shares 56 200 – – – – 256
– Sale of shares issued under
the Initial Share Scheme 35 9 183 – – – – 9 218
– Vesting of shares issued under
the Initial Share Scheme – – 670 – – – 670
– Earnings distribution – – – – (50 533) – (50 533)
Total comprehensive income – – – – 119 464 9 449 128 913
– Profit for the period – – – – 119 464 9 449 128 913
Balance at 30 September 2015 2 837 1 083 693 4 797 (1 229) 236 064 3 651 1 329 813
ABRIDGED CONSOLIDATED Unaudited Audited Unaudited
STATEMENT OF CASH FLOWS 30 Sep 2015 31 Dec 2014 30 Sep 2014
Cash flows from operating activities 83 449 50 295 38 895
Cash flows from financing activities 100 579 378 517 135 989
Cash flows used in investing activities (228 537) (373 068) (82 941)
Net (decrease)/increase in cash and cash equivalents (44 509) 55 744 91 943
Cash and cash equivalents brought forward 108 236 52 492 52 492
Cash and cash equivalents carried forward 63 727 108 236 144 435
Unaudited Audited Unaudited
RECONCILIATION OF NET ASSET VALUE TO ADJUSTED NET ASSET VALUE 30 Sep 2015 31 Dec 2014 30 Sep 2014
Net Asset Value per the Statement of financial position 1 329 813 1 241 289 944 155
Loans in respect of the Initial Share Scheme 145 9 132 9 132
Deferred tax liabilities 90 143 57 517 52 405
Goodwill (25 240) (17 639) (16 218)
Deferred tax liabilities/(assets) for joint ventures 3 037 (1 610) (404)
Adjusted Net Asset Value 1 397 898 1 288 689 989 070
Net Asset Value per share (euro) 4.69 4.52 3.99
Adjusted Net Asset Value per share (euro) 4.93 4.63 4.12
Number of shares for Net Asset Value per share purposes 283 719 502 274 526 188 236 549 491
Number of shares for adjusted Net Asset Value per share purposes 283 775 750 278 138 240 240 161 543
Unaudited Audited Unaudited
RECONCILIATION OF PROFIT FOR THE PERIOD TO HEADLINE EARNINGS 30 Sep 2015 31 Dec 2014 30 Sep 2014
Profit for the period attributable to equity holders 119 464 99 195 45 354
Fair value adjustments of investment property (77 167) (27 980) –
Gain on sale of investment property – (619) –
Gain on acquisition of subsidiaries – (1 400) (1 400)
Total tax effects of adjustments 12 578 4 952 –
Fair value adjustment of investment property for joint ventures (1 252) (7 247) –
Total tax effects of adjustments for joint ventures 200 1 160 –
Headline earnings 53 823 68 061 43 954
Weighted average number of shares in issue 279 252 882 225 426 685 214 793 968
Diluted weighted average number of shares in issue 281 047 360 229 775 959 219 392 598
Headline earnings per share (euro cents) 19.27 30.19 20.46
Diluted headline earnings per share (euro cents) 19.15 29.62 20.03
Outstanding Available for 2019
LOANS AND BORROWINGS REPAYMENT PROFILE Secured/Unsecured Ownership amount drawdown 2015 2016 2017 2018 and beyond
NE Property Cooperatief Unsecured 100% 143 800 – – – 143 800 – –
Aupark Kosice Mall Secured 100% 80 839 – 80 839 – – – –
Floreasca Business Park Secured 100% 48 767 – 980 3 920 3 920 39 947 –
Aupark Zilina Secured 100% 47 925 – 510 47 415 – – –
NE Property Cooperatief (revolving) Unsecured 100% 30 000 50 000 – 30 000 – – –
The Lakeview Secured 100% 26 131 – 528 2 110 2 110 21 383 –
Shopping City Galati Secured 100% 17 855 – 339 1 355 1 355 1 355 13 451
Ploiesti Shopping City (joint venture) Secured 50% 16 608 – 274 1 095 1 095 1 095 13 049
Pitesti Retail Park Secured 100% 10 181 – 317 9 864 – – –
The Office, Cluj-Napoca (joint venture) Secured 50% 8 768 – 113 524 450 450 7 231
City Business Centre Secured 100% 6 874 – 73 299 313 328 5 861
Regional offices portfolio Secured 100% 5 003 – 93 373 373 373 3 791
Street Segment Retail Portfolio and Brasov Strip Mall Secured 100% 2 700 3 000 63 2 637 – – –
Rasnov Industrial Facility and Otopeni Warehouse Secured 100% – 9 500 – – – – –
Total 445 451 62 500 84 129 99 592 153 416 64 931 43 383
For further information please contact: New Europe Property Investments Plc, Mirela Covasa: +40 21 232 1398
AIM Nominated Adviser and Broker: Smith & Williamson Corporate Finance Limited, Azhic Basirov: +44 20 7131 4000
JSE sponsor: Java Capital: +27 11 277 3050 BVB advisor: SSIF Intercapital Invest SA, Razvan Pasol: +40 21 222 8731
www.nepinvest.com
Date: 02/11/2015 05:44:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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