Sharenet Sites 
Sharenet Sites
Unaudited condensed consolidated financial results for the three months ended 31 March 2013
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 2013
The Company is required to publish financial results for the three months ended 31 March 2013
in terms of the rules of the Romanian National Securities Commission (“CNVM”) and the Rule
Book of the Bucharest Stock Exchange
(“the BVB”).
Accordingly, this announcement presents the unaudited condensed consolidated financial results
of the Group in respect of the financial period from 1 January 2013 to 31 March 2013 in a form
compliant with the requirements of the CNVM and the BVB.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
IFRS IFRS IFRS IFRS
Pro forma Reported Reported IFRS Restated Restated
Unaudited Audited Unaudited Unaudited Unaudited Unaudited
31 Mar 2013 31 Dec 2012 31 Mar 2012 31 Mar 2013 31 Dec 2012 31 Mar 2012
EUR EUR EUR EUR EUR EUR
ASSETS
Non-current
assets 523 570 547 444 666 197 420 716 222 439 577 160 418 853 914 411 392 914
Investment
property 484 807 438 416 674 175 396 877 528 361 237 385 356 732 724 365 840 699
Investment
property at
fair value 457 317 692 393 966 226 372 674 412 339 895 497 339 851 226 345 964 129
Investment
property under
development 27 489 746 22 707 949 24 203 116 21 341 888 16 881 498 19 876 570
Goodwill 17 325 704 13 188 795 15 906 114 13 134 609 13 134 609 15 851 928
Investments in
subsidiaries – – – 8 600 000 – –
Investments in
joint ventures – – – 3 644 410 3 546 212 (371 091)
Long term loans
granted to joint
ventures – – – 30 626 602 30 368 931 23 224 208
Other long-term
assets 21 367 835 14 727 635 6 259 329 22 264 584 14 995 846 6 259 352
Financial
assets at fair
value through
profit or loss 69 570 75 592 1 673 251 69 570 75 592 587 818
Current assets 106 087 745 185 176 059 43 758 487 148 018 617 176 894 494 37 461 633
Trade and other
receivables 22 771 308 15 798 975 9 321 411 15 597 438 9 748 620 8 580 463
Financial
investments at
fair value
through
profit or loss 72 772 627 81 865 443 – 72 772 627 81 865 443 1 085 433
Cash and cash
equivalents 10 543 810 87 511 641 34 437 076 59 648 552 85 280 431 27 795 737
Investment
property held for
sale 28 665 158 28 665 158 – 28 665 158 28 665 158 –
Total assets 658 323 450 658 507 414 464 474 709 616 260 935 624 413 566 448 854 547
EQUITY AND
LIABILITIES
Equity
attributable to
equity holders 405 612 868 393 622 378 243 723 452 405 089 776 393 622 378 243 723 452
Share capital 1 353 952 1 352 629 1 010 874 1 353 952 1 352 629 1 010 874
Share premium 355 619 791 355 026 520 243 760 927 355 619 791 355 026 520 243 760 927
Share-based
payment reserve 15 368 607 15 491 810 7 716 757 15 368 607 15 491 810 7 716 757
Currency
translation
reserve (1 228 783) (1 228 783) (1 717 990) (1 228 783) (1 228 783) (1 717 990)
Accumulated
profit / (loss) 34 499 301 22 980 202 (7 047 116) 33 976 209 22 980 202 (7 047 116)
Total liabilities 252 710 582 264 885 036 220 751 257 211 171 159 230 791 188 205 131 095
Non-current
liabilities 138 299 859 147 151 095 202 352 646 110 160 816 120 605 636 187 514 292
Loans and
borrowings 104 874 468 117 100 152 179 487 731 83 060 157 92 935 525 166 416 487
Deferred tax
liabilities 26 846 363 22 321 189 18 549 817 21 841 317 21 567 836 17 927 987
Financial
liabilities at
fair value
through
profit or loss 6 579 028 7 729 754 4 315 098 5 259 342 6 102 275 3 169 818
Current
liabilities 114 410 723 117 733 941 18 398 611 101 010 343 110 185 552 17 616 803
Trade and other
payables 17 216 193 12 985 200 4 578 996 12 318 987 9 773 420 4 329 835
Loans and
borrowings 94 143 262 102 048 042 11 052 981 86 049 442 97 781 406 10 558 949
Tenant deposits 3 051 268 2 700 699 2 766 634 2 641 914 2 630 726 2 728 019
Total equity and
liabilities 658 323 450 658 507 414 464 474 709 616 260 935 624 413 566 448 854 547
CONSOLIDATED STATEMENTS OF INCOME
IFRS IFRS IFRS IFRS
Pro forma Reported Reported IFRS Restated Restated
Unaudited Audited Unaudited Unaudited Unaudited Unaudited
31 Mar 2013 31 Dec 2012 31 Mar 2012 31 Mar 2013 31 Dec 2012 31 Mar 2012
EUR EUR EUR EUR EUR EUR
Net rental and
related income 9 867 662 30 432 771 7 284 865 7 548 314 28 344 410 6 928 220
Contractual
rental income
and expense
recoveries 13 210 177 40 176 801 9 770 486 9 896 837 37 312 436 9 185 267
Property
operating (3 342 515) (9 744 030) (2 485 621) (2 348 523) (8 968 026) (2 257 047)
expenses
Administrative
expenses (629 828) (2 211 006) (477 726) (560 753) (2 103 006) (427 287)
Acquisition
fees (429 432) (1 594 393) (431 097) (426 196) (915 212) (431 097)
Fair value
adjustments of
investment
property – 6 450 485 – – 1 063 940 –
Fair value gains
of financial
investments at
fair value
through profit
or loss 3 205 037 10 287 980 – 3 205 037 10 287 980 186 103
Distributable
income from
financial
investments at
fair value
through profit
or loss 886 715 822 691 – 886 715 822 691 –
Share-based
payment expense (10 101) (996 909) (260 500) (10 101) (996 909) (260 500)
Foreign
exchange gain /
(loss) 34 605 (2 529 495) (677 835) 40 593 (2 352 634) (585 024)
Other operating
income – 10 264 266 – – 10 264 266 –
Profit before net
finance
(expense)/income 12 924 658 50 926 390 5 437 707 10 683 609 44 415 526 5 410 415
Net finance
(expense)/income (825 114) (12 574 251) (3 758 237) 658 492 (9 537 659) (3 524 525)
Finance income 1 945 324 1 853 838 310 490 2 372 692 4 098 704 710 411
Finance expense (2 770 438) (14 428 089) (4 068 727) (1 714 200) (13 636 363) (4 234 936)
Share of profit /
(loss) of joint
ventures – – – 119 569 2 720 919 (828 250)
Profit before tax 12 099 544 38 352 139 1 679 470 11 461 670 37 598 786 1 057 640
Deferred tax
expense (388 264) (5 248 690) (753 353) (273 481) (4 495 337) (131 523)
Profit for the
period
attributable to
equity holders 11 711 280 33 103 449 926 117 11 188 189 33 103 449 926 117
RECONCILIATION OF PROFIT FOR THE PERIOD TO DISTRIBUTABLE EARNINGS
IFRS IFRS
Pro forma Reported Reported IFRS
Unaudited Audited Unaudited Unaudited
31 Mar 2013 31 Dec 2012 31 Mar 2012 31 Mar 2013
EUR EUR EUR EUR
Profit for the period attributable to 11 711 280 33 103 449 926 117 11 188 189
equity holders
Unrealised foreign exchange (gain) / loss (34 605) 2 529 495 677 835 (40 593)
Acquisition fees 429 432 1 594 393 431 097 426 196
Share-based payment expense 10 101 996 909 260 500 10 101
Accrued interest on share-based payments 140 735 569 597 152 277 140 735
Fair value adjustments of investment
property – (6 450 485) – –
Fair value gains of financial investments
at fair value through profit or loss (3 205 037) (10 287 980) – (3 205 037)
Financial assets at fair value (1 144 705) 6 328 495 2 243 122 (836 911)
Amortisation of financial assets (99 480) (572 063) (102 483) (99 480)
Distributable income from financial
investments at fair value through profit
or loss (886 715) (822 691) – (886 715)
Accrued income from financial investments
at fair value through profit or loss 1 126 986 3 092 147 – 1 126 986
Deferred tax expense 388 264 5 248 690 753 353 273 481
Shares issued cum distribution – 3 156 648 112 093 –
Non-distributable portion of the vendor
settlement income – (3 144 561) – –
Adjustments related to The Lakeview
acquisition
Profit for the period 523 091
Unrealised foreign exhange loss 43
Deferred tax expense 77 190
Adjustments related to joint ventures
Unrealised foreign exhange loss 5 945
Acquisition fees 3 236
Financial assets at fair value (307 794)
Deferred tax expense 37 593
Distributable earnings for the period 8 436 256 35 342 043 5 453 911 8 436 256
Less: distribution declared – (31 497 562) – –
Interim distribution – (14 101 923) – –
Final distribution – (17 395 639) – –
Earnings not distributed 8 436 256 3 844 481 5 453 911 8 436 256
Number of shares entitled to distribution 144 362 152 144 362 152 104 714 602 144 362 152
Distributable earnings per share (euro
cents) 5.84 25.95 5.21 5.84
Less: distribution declared per share (euro
cents) – (23.29) – –
Interim distribution per share (euro
cents) – (11.24) – –
Final distribution per share (euro cents) – (12.05) – –
Earnings per share not distributed (euro
cents) 5.84 2.66 5.21 5.84
RECONCILIATION OF NET ASSET VALUE TO ADJUSTED NET ASSET VALUE
IFRS IFRS
Pro forma Reported Reported IFRS
Unaudited Audited Unaudited Unaudited
31 Mar 2013 31 Dec 2012 31 Mar 2012 31 Mar 2013
EUR EUR EUR EUR
Adjusted net asset value 427 616 233 415 243 794 259 112 545 426 279 190
Net asset value per the statement of
financial position 405 612 868 393 622 378 243 723 452 405 089 776
Loans in respect of the Initial Share
Scheme 12 482 706 12 489 022 12 745 390 12 482 706
Deferred tax liabilities 26 846 363 22 321 189 18 549 817 21 841 317
Goodwill (17 325 704) (13 188 795) (15 906 114) (13 134 609)
Net asset value per share 2.91 2.83 2.36 2.91
Adjusted net asset value per share 2.96 2.88 2.39 2.95
Number of shares for net asset value per
share purposes 139 258 914 139 258 914 103 087 513 139 258 914
Number of shares for adjusted net asset
value per share purposes 144 362 152 144 362 152 108 301 750 144 362 152
KEY PERFORMANCE INDICATORS
IFRS IFRS
Pro forma Reported Reported IFRS
Unaudited Audited Unaudited Unaudited
31 Mar 2013 31 Dec 2012 31 Mar 2012 31 Mar 2013
1. Current liquidity ratio 1.18 1.82 2.38 1.75
2. Gearing ratio (debt to equity) 2.6:10 3.0:10 7.4:10 2.1:10
3. Tenant’s receivable turnover 13.57 days 10.02 days 10.36 days 10.86 days
4. Return on investment property 8% per annum 8% per annum 8% per annum 8% per annum
BASIS OF PREPARATION
These unaudited condensed consolidated quarterly financial results for the three months ended
31 March 2013 have been prepared in accordance with the recognition and measurement criteria
of the International Financial Reporting Standards (“IFRS”) and its interpretations adopted
by the International Accounting Board (“IASB”).
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 2012, with the
following exceptions:
- As a result of the adoption of IFRS 11 “Joint Arrangements” effective 1 January 2013, the
Group is now accounting for its investments in joint ventures under the equity method. The
Group has restated the presentation of the Statement of Financial Position and Statement
of Income starting 1 January 2012, which previously included joint ventures accounted for
under the proportionate consolidation method.
- The Group has changed the functional currency to Euro effective 1 January 2013. According
to IFRS, previously issued financial statements are not restated in this respect.
As the Group is focusing on being consistent on 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 pro forma statement of financial
position and unaudited proforma statement of income. The main differences between the unaudited
pro forma statements and the unaudited condensed consolidated quarterly financial results
prepared in accordance with IFRS are as follows:
- The unaudited pro forma statements are prepared using the proportionate consolidation
method for the investments in joint ventures, consistent with financial statements prepared
in accordance with IFRS reported in prior periods.
- The unaudited pro forma statements include the financial position and results of The
Lakeview acquisition for the full three month period ended 31 March 2013. These unaudited
pro forma statements were prepared on the basis that the acquisition of The Lakeview had
been accounted for as at 1 January 2013, the effective date of the acquisition agreed with
the vendors.
The unaudited pro forma statement of financial position and unaudited pro forma statement of
income have been prepared by and are the responsibility of the directors of NEPI.
The condensed consolidated quarterly financial results prepared in accordance with IFRS, the
pro forma statement of financial position and the pro forma statement of income have not been
reviewed or reported on by the Group’s external auditors.
Due to its nature, the unaudited pro forma statements of financial position and income may
not fairly reflect the financial position and results of the Group after the differences set
out above.
15 March 2013
For further information please contact:
New Europe Property Investments Plc, Martin Slabbert: +40 74 432 8882
Nominated Adviser and Broker: Smith & Williamson Corporate Finance Limited: +44 20 7131 4000
JSE sponsor: Java Capital: +27 11 283 0042
Romanian advisor: SSIF Intercapital Invest SA, Razvan Pasol: +40 21 222 8731
Date: 15/05/2013 05:00:00 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.
