To view the PDF file, sign up for a MySharenet subscription.

NEW EUROPE PROPERTY INVESTMENTS PLC - Unaudited condensed consolidated financial results for the six months ended 30 June 2014

Release Date: 30/07/2014 17:00
Code(s): NEP     PDF:  
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'). 
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.

Share This Story