Restatement of Results for the years ending 30 June 2014 and 30 June 2013 Orion Real Estate Limited (Incorporated in the Republic of South Africa) (Registration number 1997/021085/06) Share code: ORE ISIN: ZAE000075651 ("Orion Real Estate" or "the company" or "the Group") RESTATEMENT OF RESULTS FOR THE YEARS ENDING 30 JUNE 2014 AND 30 JUNE 2013 Shareholders are advised that the audited financial statements for the year ended 30 June 2013 were selected for review as part of the JSE’s pro-active monitoring process. After a series of questions and responses through the pro-active monitoring process, the JSE has requested a restatement of the results for the year ended 30 June 2013, which in turn has impacted on the results for the year ended 30 June 2014, requiring a restatement of the annual financial statements for 30 June 2014. Consolidated Statement of Financial Position Year ended 30 June 2013 Previously Restated stated Figures in Rand Non-current assets 748 712 118 745 310 508 Trade and other receivables 14 323 895 10 922 285 Current assets 31 332 290 29 631 485 Trade and other receivables 21 404 542 19 703 737 Total assets 804 694 408 799 591 993 Retained earnings 334 192 893 329 090 478 Total equity attributable to Owners of the parent 419 104 305 414 001 890 Total equity 418 833 093 413 730 678 Total equity and liabilities 804 694 408 799 591 993 Net asset value per linked unit at year-end (cents) 75.52 74.71 Items Restated in Consolidated Statements of Comprehensive Income Previously Restated Stated Year ended Year ended Figures in Rand 30 June 2013 30 June 2013 Fair value adjustment to debtors - (5 102 415) Operating profit before interest 57 275 585 52 173 170 Profit before taxation 37 044 144 31 941 729 Profit for the year 30 464 049 25 361 634 Total comprehensive income for the year 30 464 049 25 361 634 Attributable to: Owners of the parent 30 467 835 25 365 420 Non-controlling interest (3 786) (3 786) 30 464 049 25 361 634 Basic earnings per linked unit (cents) 4,86 4,05 Diluted earnings per linked unit (cents) 4,86 4,05 Headline earnings per linked unit (cents) 0,30 (0,51) Diluted headline earnings per linked unit (cents) 0,30 (0,51) Previously Stated Restated Year ended Year ended Figures in Rand 30 June 2014 30 June 2014 Fair value adjustment to debtors (446 238) 4 656 177 Operating profit before interest 61 800 241 66 902 656 Profit before taxation 44 900 745 50 003 160 Profit for the year 34 820 256 39 922 671 Total comprehensive income for the year 34 820 256 39 922 671 Attributable to: Owners of the parent 34 819 171 39 921 586 Non-controlling interest 1 085 1 085 34 820 256 39 922 671 Basic earnings per linked unit (cents) 5,55 6,37 Diluted earnings per linked unit (cents) 5,55 6,37 Headline earnings per linked unit (cents) 0,62 1,44 Diluted headline earnings per linked unit (cents) 0,62 1,44 Consolidated Statements of Changes in Equity for the year ended 30 June 2014 Share Share Total share capital Debenture Figures in Rand capital premium and premium Reserve Balance at 30 June 2012 6 270 098 67 965 428 74 235 526 10 675 886 Total comprehensive income for the year – profit/(loss) – – – – Balance at 30 June 2013 6 270 098 67 965 428 74 235 526 10 675 886 Total comprehensive income for the year – profit – – – – Balance at 30 June 2014 6 270 098 67 965 428 74 235 526 10 675 886 Retained Non-controlling Total Earnings Total interest equity Balance at 30 June 2012 303 725 058 388 636 470 (267 426) 388 369 044 Total comprehensive income for the year – profit/(loss)as previously stated 30 467 835 30 467 835 (3 786) 30 464 049 Restatement for discounting of debtors (5 102 415) (5 102 415) - (5 102 415) Balance at 30 June 2013 329 090 478 414 001 890 (271 212) 413 730 678 Total comprehensive Income for the year – Profit as previously Stated 34 819 171 34 819 171 1 085 34 820 256 Restatement for discounting of debtors 5 102 415 5 102 415 - 5 102 415 Balance at 30 June 2014 369 012 064 453 923 476 (270 127) 453 653 349 The nature of the restatement relates to the discounting of related party debtors. No discount rate was being applied for the year ended 30 June 2013, based on the directors judgement at the time of finalisation of the audited financial statements. Utilising a discount rate of 9% (calculated at prime plus 0.5%) the fair value for the related party debtors was calculated to be R 17 836 073 as opposed to the carrying amount as per the annual financial statements for the year ended 30 June 2013 of R22 938 488. The overstatement is considered material both in the context of the debtors balance (which was overstated by 22.2%) and on the profit for the year (which was overstated by 16.7%). The following IFRS 7 disclosures will require adjustment in the notes to the Annual Report for the year ended 30 June 2013: - The value of trade receivables exposed to interest rate & cash flow interest rate risk will be R19 703 737 for a period of less than 1 year and R10 922 285 for a period of between 1 and 5 years. - Trade receivables disclosed in the note of financial instruments by category will be R27 022 841(previously R32 125 256). - Credit exposure due to trade receivables will be: Trade receivable 28 842 570 Less: Provision for impairment of trade receivables (1 865 594) Less: Deposits held (6 371 863) 20 605 113 It is advised that the Company has applied a market related discount rate in its annual financial statements for the year ended 30 June 2014. By order of the board Johannesburg 12 December 2014 Sponsor Arbor Capital Sponsors Proprietary Limited Date: 12/12/2014 04:58:00 Produced by the JSE SENS Department. 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