Abridged unaudited financial statements for the quarter ended 30 September 2013 ROCKCASTLE GLOBAL REAL ESTATE COMPANY LIMITED (Incorporated in the Republic of Mauritius) (Reg no 108869 C1/GBL) ISIN: MU0364N00003 Primary listing SEM SEM code: Rock.N0000 Secondary listing JSE JSE shares code: ROC (“Rockcastle” or “the Company”) ABRIDGED UNAUDITED FINANCIAL STATEMENTS for the quarter ended 30 September 2013 DIRECTORS’ COMMENTARY STRUCTURE OF ROCKCASTLE Rockcastle was established on 30 March 2012 in Mauritius as a Category One Global Business License Company with the primary objective of investing globally in listed real estate assets and opportunistically in direct property assets. Rockcastle is listed on both the Stock Exchange of Mauritius Limited (“SEM”) and the Alternative Exchange of the JSE Limited. REVIEW During the 3 month period since the release of the first audited annual financial statements for the period ended 30 June 2013, the number of investors increased and the trading liquidity of the Company’s shares improved. Rockcastle continues to invest in global listed real estate companies and is in the process of finalising various agreements for the acquisition of direct retail property assets in Africa (excluding South Africa). Further announcements will be made as and when appropriate. Rockcastle will continue to pursue direct property opportunities and will seek to raise additional capital accordingly. The global macro-economic environment continues to be volatile, providing Rockcastle with various investment opportunities. As at the end of the quarter, Rockcastle’s loan to value ratio (total interest-bearing borrowings divided by total assets) was 40,6%. The Company utilises short selling of government bonds as well as interest rate swaps to hedge out interest rate risk. No currency hedging strategies have been implemented. No dividend has been declared in respect of the quarter ended 30 September 2013. The Company will continue to consider and declare dividends on a semi-annual basis. OUTLOOK Rockcastle’s portfolio is performing in line with management’s expectations. Accordingly, the Company’s hybrid strategy of investing in global listed real estate equities and direct property should allow Rockcastle to deliver continued growth in distributable earnings per share. Annualised distributions are forecast to increase by approximately 5% for the 2014 financial year. The aforegoing forecast statement and the forecasts underlying such statement are the responsibility of the board and have not been reviewed or reported on by the Company’s external auditors. The forecast is based on the assumptions that a stable macro- economic environment will prevail and that no major currency fluctuation or failures of listed REITs will occur. By order of the board Intercontinental Trust Limited Company secretary 5 November 2013 STATEMENT OF FINANCIAL POSITION Unaudited Audited Restated as at as at as at 30 Sep 2013 30 Jun 2013 30 Sep 2012 USD’000 USD’000 USD’000 ASSETS Non-current assets 669 887 693 644 138 133 Listed security investments 665 477 689 257 138 133 Rockcastle management incentive loans 4 410 4 387 – Current assets 173 3 321 4 Trade and other receivables 82 3 126 4 Cash and cash equivalents 91 195 – Total assets 670 060 696 965 138 137 EQUITY AND LIABILITIES Total equity attributable to equity holders 396 690 401 361 122 250 Stated capital 409 771 409 771 120 970 Retained (loss)/earnings (13 081) (8 410) 1 280 Total liabilities 273 370 295 604 15 887 Non-current liabilities 179 541 66 970 15 733 Interest-bearing borrowings 179 541 66 970 15 733 Current liabilities 93 829 228 634 154 Trade and other payables 1 247 51 145 Interest-bearing borrowings 92 165 228 385 – Income tax payable 417 198 9 Total equity and liabilities 670 060 696 965 138 137 Total number of shares in issue 350 000 000 350 000 000 118 000 000 Net asset value per share (USD) 1,13 1,15 1,04 STATEMENT OF COMPREHENSIVE INCOME Unaudited Restated for the for the quarter quarter ended ended 30 Sep 2013 30 Sep 2012 USD’000 USD’000 Distributions received from listed security investments 6 164 930 Fair value loss on listed security investments (13 100) (546) Foreign exchange gain 4 380 1 394 Operating expenses (196) (61) Listing costs – (314) (Loss)/profit before net finance costs (2 752) 1 403 Net finance costs (1 700) (43) Finance costs (2 990) (43) Interest on borrowings (2 373) (43) Unrealised fair value loss on interest rate derivatives (459) – Unrealised fair value loss on bond shorts (158) – Finance income 1 290 – Interest received 22 – Unrealised fair value gain on interest rate derivatives 76 – Unrealised fair value gain on bond shorts 1 192 – (Loss)/profit before income tax expense (4 452) 1 360 Income tax expense (219) (9) (Loss)/profit for the period attributable to equity holders (4 671) 1 351 Total comprehensive (loss)/income for the period (4 671) 1 351 Basic (loss)/earnings per share and headline (loss)/earnings per share (USD cents) (1,33) 2,49 Basic (loss)/earnings per share and headline (loss)/earnings per share are based on the weighted average of 350 000 000 shares in issue for the three months ended 30 September 2013 (three months ended 30 September 2012: 54 315 815 shares). There are no reconciling items between basic (loss)/earnings and headline (loss)/earnings. Rockcastle has no dilutionary instruments in issue. STATEMENT OF CHANGES IN EQUITY Retained Stated earnings/ Capital (loss) Total USD’000 USD’000 USD’000 Restated for the quarter ended 30 September 2012 Balance as at 30 June 2012 6 201 (71) 6 130 Total comprehensive income for the period 1 351 1 351 Issue of shares 114 769 114 769 Balance at 30 September 2012 120 970 1 280 122 250 Unaudited for the quarter ended 30 September 2013 Balance as at 30 June 2013 409 771 (8 410) 401 361 Total comprehensive loss for the period (4 671) (4 671) Balance at 30 September 2013 409 771 (13 081) 396 690 STATEMENT OF CASH FLOWS Unaudited Restated for the for the quarter ended quarter ended 30 Sep 2013 30 Sep 2012 USD’000 USD’000 Cash inflow from operating activities 7 475 438 Cash inflow/(outflow) from investing activities 16 072 (137 141) Cash (outflow)/inflow from financing activities (23 651) 136 703 Decrease in cash and cash equivalents (104) – Cash and cash equivalents at beginning of period 195 – Cash and cash equivalents at end of period 91 – Cash and cash equivalents consist of: Current accounts 91 – SEGMENTAL REPORTING Unaudited Restated for the as at quarter ended quarter ended 30 Sep 2013 30 Sep 2012 USD’000 USD’000 (Loss)/profit before income tax expense Australia 623 66 Canada (4 017) 428 Europe 4 318 108 UK 1 815 9 Hong Kong 110 7 Singapore 809 33 USA (12 316) 155 Corporate 4 206 554 (4 452) 1 360 Unaudited Audited Restated as at as at as at 30 Sep 2013 30 Jun 2013 30 Sep 2012 USD’000 USD’000 USD’000 Total assets Australia 54 406 52 823 16 767 Canada 92 428 90 125 12 978 Europe 123 658 135 869 31 834 UK 61 028 58 106 9 780 Hong Kong 37 758 33 867 3 505 Singapore 73 553 72 900 19 902 USA 222 815 248 888 43 371 Corporate 4 414 4 387 – 670 060 696 965 138 137 Notes The Company is required to publish financial results for the quarter ended 30 September 2013 in terms of the Listing Rule 12.19 of the SEM. Accordingly, this announcement presents the financial results of the Company in respect of the period from 1 July 2013 to 30 September 2013 as well as the restated comparative results from the prior period. The comparative results for the quarter ended 30 September 2012 have been restated from a disclosure perspective to ensure the comparability of information for the users of the financial statements. The disclosure of the financial results for the quarter ended 30 September 2012 has accordingly been restated to ensure consistency between this information and the current quarter’s information using the accounting policies and disclosures currently applied. The accounting policies which have been applied are consistent with those used in the preparation of the audited financial statements for the 15 month period ended 30 June 2013. During the course of the quarter, shareholders approved a cash distribution of USD 4.00 cents per share by way of a reduction of stated capital. The distribution is due to be approved and paid in the following quarter. The abridged unaudited financial statements (“financial statements”) for the quarter ended 30 September 2013 have been prepared in accordance with the measurement and recognition requirements of IFRS, the requirements of IAS 34: Interim Financial Reporting, the JSE Listings Requirements, the SEM Listing Rules and the Securities Act of Mauritius 2005. The financial statements have not been reviewed or reported on by the Company’s external auditors. These financial statements were approved by the board on 5 November 2013. Copies of the financial statements and the Statement of direct and indirect interests of each officer of the Company, pursuant to rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules of Mauritius 2007, are available free of charge, upon request at the Registered Office of the Company at Level 3, Alexander House, 35 Cybercity, Ebene, Mauritius. Contact person: Mr Kesaven Moothoosamy This communiqué is issued pursuant to SEM Listing Rules 12.20 and section 88 of the Securities Act of Mauritius 2005. The board accepts full responsibility for the accuracy of the information contained in these financial statements. The directors are not aware of any additional matters or circumstances arising subsequent to the period ended 30 September 2013 that require any additional disclosure or adjustment to the financial statements. Directors: Mark Olivier (chairman); Craig Hallowes*; Stephen Delport*; Andries de Lange; Rory Kirk; Alexandru Morar; Yan Ng; Paul Pretorius* (*executive director) Company secretary: Intercontinental Trust Limited Registered address: Level 3, Alexander House, 35 Cybercity, Ebene, Mauritius Transfer secretary in South Africa: Link Market Services South Africa Proprietary Limited JSE sponsor: Java Capital SEM sponsor: Capital Market Brokers Limited www.rockcastleglobalre.mu Date: 05/11/2013 01:14:00 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.