Wrap Text
Unaudited condensed consolidated financial results for the six months ended 30 June 2014
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 SIX MONTHS ENDED 30 JUNE 2014
DIRECTORS' COMMENTARY
DISTRIBUTABLE EARNINGS
The Company achieved 14.16 euro cents in recurring distributable earnings per share for the period ended 30 June 2014, which is in line
with the earnings guidance issued on 5 February 2014. This represents a 19% improvement in recurring income per share when compared
to the six months ended 30 June 2013 (11.87 euro cents per share).
DISTRIBUTION
The Board approved the 2014 half year distribution at 14.87 euro cents per share, an increase of 15% over the comparable prior period and
in line with the guidance issued on 5 February 2014. The balance of retained distributable earnings carried forward from prior financial
periods is €5.1 million. This amount will be considered for distribution in the subsequent financial periods.
OPTION TO RECEIVE CAPITAL RETURN
Shareholders have the option to receive their distribution as either cash or an issue of shares fully-paid up at a ratio of 2.332 new shares for
each 100 shares held.
A circular containing details of this resolution, accompanied by announcements on the Stock Exchange News Service (SENS) of the
Johannesburg Stock Exchange (JSE), the Regulatory News Service (RNS) of the London Stock Exchange (LSE) and the Bucharest Stock
Exchange (BVB), will be issued in due course.
ACQUISITIONS, DEVELOPMENTS AND EXTENSIONS
The Group has made significant progress in the construction and leasing of developments commenced prior to 31 December 2013. Mega
Mall (Bucharest), Vulcan Value Centre (Bucharest) and Shopping City Targu Jiu retail developments are substantially let and should be
completed as scheduled. A strip mall was completed and opened in Vaslui (Romania) and Phase I of The Office (Cluj-Napoca) is nearing
completion at a lower cost than originally estimated. A building permit has been received for the Piata Victoriei office development
(Bucharest) and construction will begin in a few weeks.
Extension works to the Group's retail assets in Constanta, Deva and Severin are subject to the completion of permitting and achievement of
Board mandated pre-leasing requirements. It is expected that construction will commence in 2014, after the opening of Vulcan Value
Centre and Shopping City Targu Jiu. The Company has acquired land in Timisoara and has entered into a binding agreement to purchase a
plot in Piatra Neamt. The Group is currently pursuing a number of retail acquisition opportunities of substantial value. As at 30 June 2014
NEPI's outstanding commitment to its development pipeline is estimated to be €105 million (in addition to €183 million that had been
incurred as at 30 June 2014). This compares to cash and listed property securities of €164 million. As at the date of this report, a further
€170 million of development opportunities have been secured, but not committed to.
Mega Mall:Construction of a 70,700m2 GLA mall, close to the national football stadium in Bucharest's densely populated eastern area, is
progressing well and should open as scheduled in the second quarter of 2015. Of the planned GLA, 85% has signed leases or is in the
process of lease finalisation. Secured anchor tenants include Altex, Carrefour, C&A, CCC, Cinema City, Bershka, Deichmann, H&M,
Koton, LC Waikiki, Mango, Marks & Spencer, New Yorker, Pull & Bear, Stradivarius, Word Class Fitness and Zara, and there is an
ongoing dialogue with additional anchor tenants who have indicated an interest to lease space. The Company is in discussions to acquire
the holding of its development partner and broad commercial terms have been agreed, but remain subject to the approval of Erste Bank and
documentation.
Shopping City Targu Jiu:Lease agreements have been concluded with tenants for more than 80% of the planned 26,800m2 GLA,
including Carrefour (anchor hypermarket), Altex, Benvenutti, CCC, Cinema City, Cosmote, Claire's, Deichmann, dm, Gatta, H&M,
Marionnaud, Musse, Noriel, Orange, Orsay, Poema, Teilor, Topshop, Vodafone and Yves Rocher. Construction is progressing well and the
planned opening is 16 October 2014.
Vulcan Value Centre: The development of this 25,200m2 GLA value centre in south-west Bucharest is progressing well. More than 90%
has been let to international and national tenants, including Carrefour, C&A, Deichmann, dm, Domo, Hervis, H&M, Jysk, Lems, Noriel
and Takko. The planned opening is 4 September 2014.
The Office Cluj-Napoca:In February 2013 the Group commenced the first of three phases of a joint-venture office development situated
in the city centre of Cluj-Napoca. This will include up to 54,400m2 of A-grade office GLA. Cluj is in the north-west of Romania and is the
country's second largest city by population. Construction of Phase I, comprising 21,358m2 of GLA, was substantially completed by June
2014. Phase I should be substantially let by the end of the 2014.
Shopping City Timisoara:Timisoara is the third largest city in Romania and is home to various universities. The city benefits from a
robust economy based on automotive component manufacturing, regional offices for multinational companies and a strong IT&C sector.
The city offers a skilled labour force at relatively low costs combined with close proximity to Western Europe.
The Company has acquired an 18 ha plot for development in south-west Timisoara, adjacent to a 4 ha plot acquired by Dedeman, one of the
country's leading DIY businesses. The site benefits from a catchment area of approximately 570,000 people within a 45-minute drive, and
has excellent visibility and accessibility due to its 550m frontage on the city's major north-south boulevard. Across from the site is a
densely populated residential neighbourhood housing 20,000 inhabitants within walking distance. Although there is a large modern
59,000m2 GLA shopping centre in north Timisoara, the city has the lowest retail density of the five largest Romanian cities and the demand
for rentable space is very high.
The aforementioned boulevard leads to Novi Sad and Belgrade in Serbia. Currently there is limited modern retail stock in Serbia, and
Timisoara benefits from its citizens travelling across the border to shop.
Permitting is progressing well and NEPI plans to develop a phased regional mall with a GLA of up to 80,000m2. Construction of the first
phase will commence once permitting is in place and pre-leasing requirements have been achieved.
Piatra Neamt: The Company has secured a 7.4 ha plot in the west of Piatra Neamt, the capital of Neamt county in Romania. The city has a
population of approximately 85,000 people, with 245,000 inhabitants within a 45-minute drive. The site is located in the most densely
populated area, with good vehicular access from two main roads, including one that crosses the city and leads to Bacau. The site has good
street frontage and access on both sides and a bus station in front. NEPI is evaluating the development of a 29,000m2 GLA regional mall on
the site.
OTHER HIGHLIGHTS
As at 30 June 2014 the Adjusted Net Asset Value (NAV) increased by 25% compared to 30 June 2013. The vacancy level is 1.39% without
accounting for investment properties held for sale, which include excess land not planned for further extensions, three street retail assets
and the regional office portfolio (compared to 1.18% at 31 December 2013). Non-recoverable tenant income for the period was €51,641,
which is equivalent to 0.12% of contractual rental income and expense recoveries.
CASH MANAGEMENT AND DEBT
The Group's debt ratio (interest bearing debt less cash divided by investment property and listed property securities) decreased to 16% from
22.5% (31 December 2013). The Company has a target debt ratio of 30%, subject to an upper limit of 35%. The average interest rate
(including hedging costs) of the debt was 4.98% during this period. The Group ended the half year with €164 million in cash and listed
property securities, and will continue to hold relatively large cash balances and liquid resources to fund its development pipeline and to
take advantage of new investment opportunities when they arise.
In addition to the cash balances, NEPI has an undrawn, secured revolving facility with UniCredit Tiriac Bank of €9.5 million.
PROSPECTS
The acquisition, development and extension pipeline, as well as the further opportunities detailed above, ensures that the Group is well
placed to pursue further attractive growth in its recurring distributable earnings in the second half of 2014 and beyond. The Group will
continue to focus on opportunities that lead to, and take decisions with a view to, maximising long-term, recurring distributable earnings
per share, even if these cause a reduction in short-term year-on-year per share distribution growth.
By order of the Board of Directors,
Martin Slabbert Victor Semionov
Chief Executive Officer Finance Director
30 July 2014
Transfer secretaries and settlement agent
Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg, 2001, South Africa (PO Box 61051, Marshalltown, 2107,
South Africa)
Computershare Investor Services (Jersey) Limited, 2nd floor, Queensway House, Hilgrove Street, St Helier, JE1 1ES, Jersey
Directors
Dan Pascariu (Chairman)*, Martin Slabbert (Chief Executive Officer), Alexandru Morar#, Desmond de Beer*, Dewald Joubert*, Jeffrey
Zidel*, Michael Mills*, Tiberiu Smaranda#, Victor Semionov (Finance Director)
*Independent non-executive director
#Executive director
For further information please contact
New Europe Property Investments plc:
Martin Slabbert
+40 744 328 882
Nominated Adviser and Broker:
Smith & Williamson Corporate Finance Limited,
Azhic Basirov
+44 20 7131 40 00
JSE Sponsor:
Java Capital
+27 11 283 00 42
Romanian Advisor:
SSIF Intercapital Invest SA,
Razvan Pasol
+40 21 222 87 31
All amounts in € '000 unless otherwise stated
CONSOLIDATED STATEMENTS OF FINANCIAL Pro forma Pro forma Pro forma IFRS IFRS IFRS
POSITION Unaudited Unaudited Unaudited Unaudited Audited Unaudited
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
2014 2013 2013 2014 2013 2013
ASSETS
Non-current assets 969 882 920 924 548 769 942 330 898 040 524 180
Investment property 911 817 872 465 509 879 841 970 807 465 447 778
Investment property at fair value 729 158 758 623 459 636 674 269 703 811 405 226
Investment property under development 182 659 113 842 50 243 167 701 103 654 42 552
Goodwill 16 218 16 218 17 326 16 218 16 218 17 272
Investments in joint ventures - - - 4 356 5 055 3 989
Long-term loans granted to joint ventures - - - 37 966 37 064 32 651
Other long-term assets 41 252 29 831 21 402 41 225 29 828 22 328
Financial assets at fair value through profit or loss 595 2 410 162 595 2 410 162
Current assets 240 531 149 920 151 899 234 625 143 168 145 732
Trade and other receivables 40 999 31 443 21 750 39 341 28 036 18 382
Financial investments at fair value through profit or loss 33 838 61 079 60 833 33 838 61 079 60 833
Cash and cash equivalents 130 674 55 837 69 316 126 426 52 492 66 517
Investment property held for sale 35 020 1 561 - 35 020 1 561 -
Total assets 1 210 413 1 070 844 700 668 1 176 955 1 041 208 669 912
EQUITY AND LIABILITIES
Total equity attributable to equity holders 828 541 712 236 473 426 828 541 712 236 473 426
Share capital 2 139 1 947 1 510 2 139 1 947 1 510
Share premium 693 807 611 949 416 164 693 807 611 949 416 164
Share-based payment reserve 34 232 23 852 13 660 34 232 23 852 13 660
Currency translation reserve (1 229) (1 229) (1 229) (1 229) (1 229) (1 229)
Accumulated profit 102 203 76 595 43 321 102 203 76 595 43 321
Non-controlling interest (2 611) (878) - (2 611) (878) -
Total liabilities 381 872 358 608 227 242 348 414 328 972 196 486
Non-current liabilities 260 237 244 542 133 514 242 328 232 260 107 833
Loans and borrowings 196 431 185 624 101 931 179 550 173 568 77 865
Deferred tax liabilities 51 447 50 160 24 750 51 889 50 678 24 178
Other long-term liabilities 6 858 4 059 1 609 6 650 4 059 1 609
Financial liabilities at fair value through profit or loss 5 501 4 699 5 224 4 239 3 955 4 181
Current liabilities 121 635 114 066 93 728 106 086 96 712 88 653
Trade and other payables 32 952 29 974 15 538 31 441 28 807 14 167
Loans and borrowings 87 196 80 512 75 119 73 166 64 466 71 519
Tenant deposits 1 487 3 580 3 071 1 479 3 439 2 967
Total equity and liabilities 1 210 413 1 070 844 700 668 1 176 955 1 041 208 669 912
CONSOLIDATED STATEMENTS OF INCOME Pro forma Pro forma Pro forma IFRS IFRS IFRS
Unaudited Unaudited Unaudited Unaudited Audited Unaudited
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
2014 2013 2013 2014 2013 2013
Net rental and related income 30 263 45 188 19 526 28 462 41 420 17 500
Contractual rental income and expense recoveries 42 558 60 927 26 167 39 697 55 322 23 178
Property operating expenses (12 295) (15 739) (6 641) (11 235) (13 902) (5 678)
Administrative expenses (1 339) (2 452) (1 189) (1 295) (2 180) (1 054)
Acquisition fees (272) (4 986) (883) (272) (4 986) (883)
Fair value adjustments of investment property - 19 913 - - 19 787 -
Fair value gains on financial investments at fair value through
3 039 970 682 3 039 970 682
profit or loss
Net result on sale of financial investments - 586 586 - 586 586
Dividends received from financial investments 2 417 2 906 1 801 2 417 2 906 1 801
Share-based payment expense (861) (955) (869) (861) (955) (869)
Foreign exchange gain/(loss) 35 (290) 225 17 (238) 217
Gain on acquisition of subsidiaries 1 400 5 547 - 1 400 5 547 -
Gain on disposal of investment property held for sale - 527 527 - 527 527
Impairment of goodwill - (816) - - (816) -
Profit before net finance (expense)/ income 34 682 66 138 20 406 32 907 62 568 18 507
Net finance (expense)/income (4 774) (1 816) (393) (1 938) 1 784 1 224
Finance income 1 358 5 300 4 214 3 176 7 514 5 126
Finance expense (6 132) (7 116) (4 607) (5 114) (5 730) (3 902)
Share of (loss)/profit of joint ventures - - - (1 136) 1 241 464
Profit before tax 29 908 64 322 20 013 29 833 65 593 20 195
Deferred tax expense (1 286) (7 736) 1 708 (1 211) (9 007) 1 526
Profit after tax 28 622 56 586 21 721 28 622 56 586 21 721
Non-controlling interest 1 733 878 - 1 733 878 -
Profit for the period attributable to equity holders 30 355 57 464 21 721 30 355 57 464 21 721
Weighted average number of shares in issue 207 579 778 163 836 991 145 133 096 207 579 778 163 836 991 145 133 096
Diluted weighted average number of shares in issue 212 287 132 168 827 400 150 236 334 212 287 132 168 827 400 150 236 334
Basic weighted average earnings per share (euro cents) 14.62 35.07 14.97 14.62 35.07 14.97
Diluted weighted average earnings per share (euro cents) 14.30 34.04 14.46 14.30 34.04 14.46
Distributable earnings per share (euro cents) 14.16 25.79 11.87 14.16 25.79 11.87
Headline earnings per share (euro cents) 13.95 21.58 14.60 13.95 21.58 14.60
Diluted headline earnings per share (euro cents) 13.64 20.94 14.11 13.64 20.94 14.11
RECONCILIATION OF PROFIT FOR THE PERIOD Pro forma Pro forma Pro forma IFRS IFRS IFRS
TO DISTRIBUTABLE EARNINGS Unaudited Unaudited Unaudited Unaudited Audited Unaudited
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
2014 2013 2013 2014 2013 2013
Profit for the period attributable to equity holders 30 355 57 464 21 721 30 355 57 464 21 721
Unrealised foreign exchange loss 1 256 99 2 256 107
Acquisition fees 272 4 986 883 272 4 986 883
Share-based payment expense 861 955 869 861 955 869
Accrued interest on share-based payments 286 563 285 286 563 285
Fair value adjustments of investment property - (19 913) - - (19 787) -
Fair value gains of financial investments at fair value
(3 039) (970) (682) (3 039) (970) (682)
through profit or loss
Fair value adjustment of financial assets and liabilities 2 617 (2 040) (2 592) 2 099 (1 157) (2 007)
Amortisation of financial assets (375) (476) (180) (375) (476) (180)
Net result on sale of financial investments - (586) (586) - (586) (586)
Dividends received from financial investments (2 417) (2 906) (1 801) (2 417) (2 906) (1 801)
Accrued dividend for financial investments 1 527 4 364 1 953 1 527 4 364 1 953
Gain on disposal of investment property held for sale - (527) (527) - (527) (527)
Gain on acquisition of subsidiaries (1 400) (5 547) - (1 400) (5 547) -
Deferred tax expense 1 286 7 736 (1 708) 1 211 9 007 (1 526)
Impairment of goodwill - 816 - - 816 -
Shares issued cum distribution 1 908 3 577 1 169 1 908 3 577 1 169
Adjustments related to joint ventures
Fair value adjustments of investment property - - - - (126) (8)
Fair value adjustment of financial assets and liabilities - - - 518 (883) (585)
Deferred tax expense - - - 75 (1 271) (182)
Unrealised foreign exchange loss - - - (1) - -
Adjustments related to non-controlling interest
Fair value adjustments of investment property - 1 - - 1 -
Deferred tax expense - (108) - - (108) -
Acquisition fees - (275) - - (275) -
Distributable earnings for the period 31 882 47 370 18 903 31 882 47 370 18 903
Distribution from reserves 1 593 1 574 1 692 1 593 1 574 1 692
Less: distribution declared (33 475) (48 944) (20 595) (33 475) (48 944) (20 595)
Interim distribution (33 475) (20 594) (20 595) (33 475) (20 594) (20 595)
Final distribution - (28 350) - - (28 350) -
Earnings not distributed - - - - - -
Number of shares entitled to distribution 225 119 658 204 544 236 159 277 789 225 119 658 204 544 236 159 277 789
Distributable earnings per share for the period (euro cents) 14.16 25.79 11.87 14.16 25.79 11.87
Distribution from reserves per share (euro cents) 0.71 1.00 1.06 0.71 1.00 1.06
Less: Distribution declared per share (euro cents) (14.87) (26.79) (12.93) (14.87) (26.79) (12.93)
Interim distribution per share (euro cents) (14.87) (12.93) (12.93) (14.87) (12.93) (12.93)
Final distribution per share (euro cents) - (13.86) - - (13.86) -
Earnings not distributed (euro cents) - - - - - -
RECONCILIATION OF NET ASSET VALUE TO Pro forma Pro forma Pro forma IFRS IFRS IFRS
ADJUSTED NET ASSET VALUE Unaudited Unaudited Unaudited Unaudited Audited Unaudited
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
2014 2013 2013 2014 2013 2013
Net Asset Value per the Statement of financial position 828 541 712 236 473 426 828 541 712 236 473 426
Loans in respect of the Initial Share Scheme 11 574 11 574 12 483 11 574 11 574 12 483
Deferred tax liabilities 51 447 50 160 24 750 51 889 50 678 24 750
Goodwill (16 218) (16 218) (17 326) (16 218) (16 218) (17 326)
Deferred tax liabilities for joint ventures - - - (442) (518) -
Adjusted net asset value 875 344 757 752 493 333 875 344 757 752 493 333
Net asset value per share 3.76 3.56 3.07 3.76 3.56 3.07
Adjusted net asset value per share 3.89 3.70 3.10 3.89 3.70 3.10
Number of shares for net asset value per share purposes 220 412 304 199 836 882 154 174 551 220 412 304 199 836 882 154 174 551
Number of shares for adjusted net asset value per share purposes 225 119 658 204 544 236 159 277 789 225 119 658 204 544 236 159 277 789
IFRS IFRS IFRS
ABRIDGED CONSOLIDATED Unaudited Audited Unaudited
STATEMENT OF CASH FLOWS 30 Jun 31 Dec 30 Jun
2014 2013 2013
Cash flows from operating activities 15 830 26 823 9 633
Cash flows from financing activities 89 622 293 677 15 830
Cash flows used in investing activities (31 518) (353 288) (44 226)
Net increase/(decrease) in cash and cash equivalents 73 934 (32 788) (18 763)
Cash and cash equivalents brought forward 52 492 85 280 85 280
Cash and cash equivalents carried forward 126 426 52 492 66 517
CONSOLIDATED STATEMENT OF CHANGES IN Share Share Share-based Currency Accumulated Non- Total
EQUITY (same amounts for Pro forma and IFRS) capital premium payment translation profit controlling
reserve reserve interest
Balance at 1 January 2013 1 353 355 027 15 492 (1 229) 22 980 - 393 623
Transactions with owners 157 61 137 (1 832) - (1 380) - 58 082
- Issue of shares 149 58 262 - - - - 58 411
- Share-based payment reserve - - 868 - - - 868
- Sale of shares issued under the Initial Share Scheme - 183 - - - - 183
- Sale of shares issued under the Current Share Scheme 1 343 (344) - - - -
- Vesting of shares issued under the Current Share Scheme 7 2 349 (2 356) - - - -
- Earnings distribution - - - - (1 380) - (1 380)
Total comprehensive income - - - - 21 721 - 21 721
- Profit for the period - - - - 21 721 - 21 721
Balance at 30 June 2013 1 510 416 164 13 660 (1 229) 43 321 - 473 426
Balance at 1 July 2013 1 510 416 164 13 660 (1 229) 43 321 - 473 426
Transactions with owners 437 195 785 10 192 - (2 469) - 203 945
- Issue of shares 430 193 429 - - - - 193 859
- Share-based payment reserve - - 10 519 - - - 10 519
- Sale of shares issued under the Initial Share Scheme 4 1 077 - - - - 1 081
- Sale of shares issued under the Current Share Scheme - 146 (146) - - - -
- Vesting of shares issued under the Initial Share Scheme - - 955 - - - 955
- Vesting of shares issued under the Current Share Scheme 3 1 133 (1 136) - - - -
- Earnings distribution - - - - (2 469) - (2 469)
Total comprehensive income - - - - 35 743 (878) 34 865
- Profit for the period - - - - 35 743 (878) 34 865
Balance at 31 December 2013 1 947 611 949 23 852 (1 229) 76 595 (878) 712 236
Balance at 1 January 2014 1 947 611 949 23 852 (1 229) 76 595 (878) 712 236
Transactions with owners 192 81 858 10 380 - (4 747) - 87 683
- Issue of shares 185 79 502 - - - - 79 687
- Share-based payment reserve - - 11 882 - - - 11 882
- Sale of shares issued under the Current Share Scheme - 41 (41) - - - -
- Vesting of shares issued under the Initial Share Scheme - - 861 - - - 861
- Vesting of shares issued under the Current Share Scheme 7 2 315 (2 322) - - - -
- Earnings distribution - - - - (4 747) - (4 747)
Total comprehensive income - - - - 30 355 (1 733) 28 622
- Profit for the period - - - - 30 355 (1 733) 28 622
Balance at 30 June 2014 2 139 693 807 34 232 (1 229) 102 203 (2 611) 828 541
Pro forma Pro forma Pro forma IFRS IFRS IFRS
RECONCILIATION OF PROFIT FOR THE PERIOD TO Unaudited Unaudited Unaudited Unaudited Audited Unaudited
HEADLINE EARNINGS 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
2014 2013 2013 2014 2013 2013
Profit for the period attributable to equity holders 30 355 57 464 21 721 30 355 57 464 21 721
Fair value adjustments of investment property - (19 913) - - (19 787) -
Gain on sale of investment property held for sale - (527) (527) - (527) (527)
Gain on acquisition of subsidiaries (1 400) (5 547) - (1 400) (5 547) -
Impairment of goodwill - 816 - - 816 -
Total tax effects of adjustments - 3 055 - 3 035 -
Fair value adjustment of investment property for joint ventures - - - (126) -
Total tax effects of adjustments for joint ventures - - - 20 -
Headline earnings 28 955 35 348 21 194 28 955 35 348 21 194
Pro forma Pro forma Pro forma IFRS IFRS IFRS
Unaudited Unaudited Unaudited Unaudited Audited Unaudited
SEGMENTAL ANALYSIS
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
2014 2013 2013 2014 2013 2013
Contractual rental income and expense recoveries
Retail 27 489 31 330 11 102 24 812 26 055 8 275
Office 14 079 27 644 14 089 13 895 27 313 13 927
Industrial 990 1 953 976 990 1 954 976
Total 42 558 60 927 26 167 39 697 55 322 23 178
Profit before net finance expense
Retail 18 415 46 847 7 962 16 778 43 735 6 173
Office 11 829 16 977 10 156 11 691 16 519 10 046
Industrial 824 1 339 802 824 1 339 802
Corporate 3 614 975 1 486 3 614 975 1 486
Total 34 682 66 138 20 406 32 907 62 568 18 507
BANK LOANS AND BORROWINGS REPAYMENT Outstanding Available for 2018 and
PROFILE (same amounts for Pro forma and IFRS) amount drawdown 2014 2015 2016 2017 beyond
Floreasca Business Park 53 667 - 1 960 3 920 3 920 3 920 39 947
Aupark Zilina 51 789 - 936 1 954 48 899 - -
Braila Mall 34 611 - 34 611 - - - -
The Lakeview 28 769 - 1 055 2 110 2 110 2 110 21 384
City Business Centre 26 261 - 639 1 314 1 365 1 418 21 525
Shopping City Galati 19 548 - 677 1 355 1 355 1 355 14 806
Ploiesti Shopping City (joint venture) 17 976 - 548 1 095 1 095 1 095 14 143
German Portfolio (joint venture) 12 520 - 12 520 - - - -
Retail Park Pitesti 11 765 - 528 11 237 - - -
New Europe Property Investments plc 8 902 - 8 902 - - - -
Street Segment Retail Portfolio and Brasov Strip Mall 6 013 - 125 250 5 638 - -
Regional Offices Portfolio 5 972 - 5 972 - - - -
Regional Strip Malls 5 469 - 186 373 373 373 4 164
The Office Cluj-Napoca (joint venture) 459 - 459 - - - -
Rasnov Industrial Facility and Otopeni Warehouse - 9 500 - - - - -
Total 283 721 9 500 69 118 23 608 64 755 10 271 115 969
The reference base rate (1 month EURIBOR, 3 month EURIBOR) was hedged with a weighted average interest rate cap of 2.0% for 50% of the outstanding
notional amount and a weighted average interest rate swap of 1.9% for 50% of the notional amount.
LEASE EXPIRY PROFILE 2014 2015 2016 2017 2018 2019 2020 2021 2022 >=2023 Total
Total based on rental income 1.1% 9.8% 12.0% 8.7% 15.8% 13.6% 9.2% 6.2% 2.2% 21.4% 100%
Total based on rented area 2.8% 8.8% 8.2% 6.8% 13.6% 11.8% 8.3% 6.2% 4.0% 29.5% 100%
BASIS OF PREPARATION
These unaudited condensed consolidated interim financial results (the 'IFRS statements') for the six months ended 30 June 2014 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'), specifically IAS34 "Interim Financial Reporting" and the JSE
listing 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 2013.
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 an unaudited pro forma statement of financial
position and an unaudited pro forma statement of income for the six months ended 30 June 2014 (the 'pro forma statements'). The main
difference between the pro forma statements and the IFRS statements is that the pro forma statements are prepared using the proportionate
consolidation method for investments in joint ventures, while the IFRS statements use the equity method for accounting for these
investments (following the adoption of IFRS 11 'Joint Arrangements' effective 1 January 2013).
The unaudited pro forma statement of financial position and the unaudited pro forma statement of income have been prepared by and are
the responsibility of the Directors of NEPI. Due to their nature, the pro forma statements may not fairly reflect the financial position and
results of the Group after the differences set out above.
The condensed consolidated interim 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.
30 July 2014
Date: 30/07/2014 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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