Unaudited condensed consolidated financial results for the three months ended 31 March 2015 NEW EUROPE PROPERTY INVESTMENTS PLC (Incorporated and registered in the Isle of Man with registered number 001211V) (Registered as an external company with limited liability under the laws of South Africa, (Registration number 2009/000025/10) AIM share code: NEPI JSE share code: NEP BVB share code: NEP ISIN: IM00B23XCH02 (“NEPI”, “the Group”, or “the Company”) UNAUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2015 The Company is required to publish financial results for the three months ended 31 March 2015 in terms of the rules of the Romanian Financial Supervisory Authority ('RFSA') and the Rule Book of the Bucharest Stock Exchange ('BVB'). Accordingly, this announcement presents the unaudited condensed consolidated financial results of the Group in respect of the financial period from 1 January 2015 to 31 March 2015 in a form compliant with the requirements of the RFSA and the BVB. All amounts in € ‘000 unless otherwise stated IFRS Accounts Unaudited Audited Unaudited CONSOLIDATED STATEMENTS OF INCOME 31 Mar 2015 31 Dec 2014 31 Mar 2014 Net rental and related income 22 298 61 749 14 624 Contractual rental income and expense recoveries 31 938 87 017 19 763 Property operating expenses (9 640) (25 268) (5 139) Administrative expenses (703) (2 839) (536) Acquisition fees (520) (2 357) (107) Fair value adjustments of investment property – 27 980 – Fair value gains / (losses) of financial investments at fair value – 1 299 (150) through profit or loss Dividends received from financial investments – 2 417 803 Share-based payment expense (7) (675) (3) Foreign exchange loss (55) (241) (847) Gain on acquisition of subsidiaries – 1 400 1 400 Gain on disposal of investment property – 619 – Profit before net finance income 21 013 89 352 15 184 Net finance income/(expense) 1 072 1 412 (1 516) Finance income 1 702 7 315 1 385 Finance expense (630) (5 903) (2 901) Share of (loss)/ profit of joint ventures (161) 4 148 (368) Profit before tax 21 924 94 912 13 300 Deferred tax expense (2 663) (637) (535) Profit after tax 19 261 94 275 12 765 Non-controlling interest 1 755 4 920 515 PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS 21 016 99 195 13 280 Weighted average number of shares in issue 274 638 368 225 426 685 199 836 882 Diluted weighted average number of shares in issue 278 186 394 229 775 959 204 544 236 Basic weighted average earnings per share (euro cents) 7.65 44.00 6.65 Diluted weighted average earnings per share (euro cents) 7.55 43.17 6.49 Distributable earnings per share (euro cents) 8.61 29.69 7.34 Headline earnings per share (euro cents) 7.65 30.19 5.94 Diluted headline earnings per share (euro cents) 7.55 29.62 5.81 Unaudited Audited Unaudited CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 Mar 2015 31 Dec 2014 31 Mar 2014 ASSETS Non-current assets 1 502 668 1 368 193 910 017 Investment property 1 402 862 1 269 299 818 560 Investment property at fair value 1 140 791 978 980 705 920 Investment property under development 262 071 208 246 112 640 Advances paid for investment property – 82 073 – Goodwill 22 828 17 639 16 218 Investments in joint ventures 9 033 13 241 5 124 Long-term loans granted to joint ventures 31 578 30 395 38 714 Other long-term assets 36 216 37 444 30 115 Financial assets at fair value through profit or loss 151 175 1 286 Current assets 144 547 148 705 154 863 Trade and other receivables 49 087 40 469 33 047 Financial investments at fair value through profit or loss – – 30 649 Cash and cash equivalents 95 460 108 236 91 167 Investment property held for sale 27 688 27 360 1 561 TOTAL ASSETS 1 674 903 1 544 258 1 066 441 EQUITY AND LIABILITIES Equity attributable to equity holders 1 250 076 1 241 289 724 494 Share capital 2 793 2 746 1 999 Share premium 1 075 750 1 074 310 632 302 Share-based payment reserve 4 135 4 127 3 456 Currency translation reserve (1 229) (1 229) (1 229) Accumulated profit 176 181 167 133 89 360 Non-controlling interest (7 554) (5 798) (1 394) Total liabilities 424 827 302 969 341 947 Non-current liabilities 233 892 241 345 240 113 Loans and borrowings 149 252 171 071 178 080 Deferred tax liabilities 67 322 57 517 51 213 Other long-term liabilities 14 054 9 171 6 759 Financial liabilities at fair value through profit or loss 3 264 3 586 4 061 Current liabilities 190 935 61 624 101 834 Trade and other payables 69 873 38 365 27 061 Loans and borrowings 121 062 23 259 74 773 TOTAL EQUITY AND LIABILITIES 1 674 903 1 544 258 1 066 441 RECONCILIATION OF NET ASSET VALUE TO ADJUSTED NET ASSET Unaudited Audited Unaudited VALUE 31 Mar 2015 31 Dec 2014 31 Mar 2014 Net asset value per the statement of financial position 1 250 076 1 241 289 724 494 Loans in respect of the Initial Share Scheme 8 003 9 132 11 574 Deferred tax liabilities 67 322 57 517 51 213 Goodwill (22 828) (17 639) (16 218) Deferred tax liabilities/(assets) for joint ventures 2 434 (1 610) (480) Adjusted net asset value 1 305 007 1 288 689 770 583 Net asset value per share (euro) 4.48 4.52 3.63 Adjusted net asset value per share (euro) 4.62 4.63 3.77 Number of shares for net asset value per share purposes 279 250 260 274 526 188 199 836 882 Number of shares for adjusted net asset value per share purposes 282 423 985 278 138 240 204 544 236 Unaudited Unaudited KEY PERFORMANCE INDICATORS 31 Mar 2015 31 Mar 2014 Current liquidity ratio 1.24* 1.54 Gearing ratio (debt to equity) 12% 25% Tenant’s receivable turnover 5.77 days 7.54 days Return on investment property 8% per annum 8% per annum * Computation includes the revolving facilities remaining unused as at 31 March 2015 Management Accounts CONSOLIDATED STATEMENTS OF INCOME 31 Mar 2015 31 Dec 2014 31 Mar 2014 Gross rental income 23 943 67 459 16 342 Net service charge and operating expenses (592) (1 733) (820) Service charge and other recoveries 9 491 25 619 4 886 Property operating expenses (10 083) (27 352) (5 706) Net operating income 23 351 65 726 15 522 Corporate expenses (1 554) (4 667) (920) Property management net result 760 1 498 306 EBITDA 22 557 62 557 14 908 Net finance income/(expense) 1 499 3 372 (903) Finance income 619 6 374 1 726 Finance expense (1 691) (7 502) (3 990) Interest capitalised on development costs 2 571 4 500 1 361 Direct investment result 24 056 65 929 14 005 Indirect investment result (3 040) 33 266 (725) Profit for the year attributable to equity holders 21 016 99 195 13 280 Reverse indirect result 3 040 (33 266) 725 Company specific adjustments (102) 2 273 1 008 Distributable earnings before issue cum distribution 23 954 68 202 15 013 Issue cum distribution adjustment 362 6 870 – Distributable earnings 24 316 75 072 15 013 Distributable earnings per share (euro cents) 8.61 29.69 7.34 of which recurring distributable earnings per share (euro cents) 8.61 29.69 7.34 Distribution per share (euro cents) – 32.22 – CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 Mar 2015 31 Dec 2014 31 Mar 2014 ASSETS Non-current assets 1 529 040 1 389 772 933 624 Investment property 1 469 842 1 334 512 886 003 Income producing properties at fair value 1 200 850 1 038 545 760 789 Developments at cost 268 992 213 894 125 214 Advances paid for investment property – 82 073 – Goodwill 22 828 17 639 16 218 Long-term loans granted 36 219 37 446 30 117 Financial assets at fair value through profit or loss 151 175 1 286 Current assets 175 983 180 526 166 740 Investment property held for sale 27 688 27 360 1 561 Trade and other receivables 50 039 41 199 34 672 Financial investments at fair value through profit and loss – – 30 649 Cash and cash equivalents 98 256 111 967 99 858 TOTAL ASSETS 1 705 023 1 570 298 1 100 364 LIABILITIES 454 947 329 009 375 870 Loans and borrowings 294 912 218 399 283 748 Deferred tax liabilities 69 756 55 907 50 733 Other long-term liabilities 14 348 9 446 6 864 Financial liabilities at fair value through profit and loss 4 878 5 104 4 837 Trade and other payables 71 053 40 153 29 688 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS 1 250 076 1 241 289 724 494 TOTAL LIABILITIES AND EQUITY ATTRIBUTABLE TO EQUITY HOLDERS 1 705 023 1 570 298 1 100 364 Adjusted NAV per share (euro) 4.62 4.63 3.77 RECONCILIATION OF PROFIT FOR THE PERIOD TO DISTRIBUTABLE EARNINGS 31 Mar 2015 31 Dec 2014 31 Mar 2014 Profit for the period attributable to equity holders 21 016 99 195 13 280 Unrealised foreign exchange loss 19 350 868 Acquisition fees 520 2 357 107 Share-based payment expense 7 675 3 Accrued interest on share-based payments 100 542 141 Fair value adjustments of investment property – (35 227) – Fair value gains of financial investments at fair value through profit – (1 299) 150 or loss Fair value adjustment of financial assets and liabilities (202) 2 882 1 262 Amortisation of financial assets (166) (708) (184) Dividends received from financial investments – (2 417) (803) Accrued dividend from financial investments – 2 304 1 016 Gain on disposal of investment property – (619) – Gain on acquisition of subsidiaries – (1 400) (1 400) Deferred tax expense 2 660 1 567 573 Shares issued cum distribution 362 6 870 – DISTRIBUTABLE EARNINGS FOR THE PERIOD 24 316 75 072 15 013 Distribution from reserves – 6 659 – Less: distribution declared – (81 731) – Interim distribution – (33 475) – Final distribution – (48 256) – Earnings not distributed 24 316 – 15 013 Number of shares entitled to distribution 282 423 985 278 138 240 204 544 236 Distributable earnings per share for the period (euro cents) 8.61 29.69 7.34 Distribution from reserves per share (euro cents) – 2.53 – Less: Distribution declared per share (euro cents) – (32.22) – Interim distribution per share (euro cents) – (14.87) – Final distribution per share (euro cents) – (17.35) – Earnings per share not distributed (euro cents) 8.61 – 7.34 BASIS OF PREPARATION These unaudited condensed consolidated financial results for the three months ended 31 March 2015 have been prepared in accordance with the recognition and measurement criteria of the International Financial Reporting Standards (“IFRS”), its interpretations adopted by the International Accounting Standards Board (“IASB”), the presentation and the disclosure requirements of IAS 34 Interim Financial Reporting and the JSE Listings 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 2014. As the Group is focusing on being consistent in those areas of reporting that are seen to be of most relevance to investors and on providing a meaningful basis of comparison for users of the financial information, it has prepared unaudited management accounts. The main difference between the management accounts and the financial statements is that the management accounts statements are prepared using the proportionate consolidation method for investments in joint-ventures, which is not in accordance with IFRS (but consistent with financial statements prepared in accordance with IFRS reported before 1 January 2013), while the IFRS financial statements use the equity method for accounting for these investments (following the adoption of IFRS 11 ‘Joint Arrangements’ effective 1 January 2013). The management accounts have been prepared by and are the responsibility of the below mentioned Directors of NEPI. Due to its nature, the management accounts may not fairly reflect the financial position and results of the Group after the differences set out above. These unaudited condensed consolidated financial results for the three months ended 31 March 2015 have not been reviewed or reported on by the Group’s external auditors. Martin Slabbert (Chief Executive Officer), Mirela Covasa (Finance Director) 15 May 2015 For further information please contact: New Europe Property Investments Plc, Mirela Covasa: +4 072 137 1100 Nominated Adviser and Broker: Smith & Williamson Corporate Finance Limited, Azhic Basirov: +44 20 7131 4000 JSE sponsor: Java Capital: +27 11 722 3050 Romanian advisor: SSIF Intercapital Invest SA, Razvan Pasol: +40 21 222 8731 Date: 15/05/2015 08:00:00 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.