Abridged unaudited financial statements for the three and nine months ended 30 November 2015 Atlantic Leaf Properties Limited (Incorporated in the Republic of Mauritius) (Registration number: 119492 C1/GBL) SEM share code: ALPL.N0000 JSE share code: ALP ISIN: MU0422N00009 www.atlanticleaf.mu ("Atlantic Leaf" or "the Company") ABRIDGED UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED 30 NOVEMBER 2015 DIRECTORS’ COMMENTARY Atlantic Leaf presents its results for the quarter and nine months ended 30 November 2015. In line with management’s expectations, the Company earned adjusted headline earnings of 1.93 pence per share. This represents an increase of almost 22% over the adjusted headline earnings of the second quarter when revaluations over the periods are excluded. Management is pleased with the continued growth as the Company continues to acquire good quality assets. During the quarter, the Company concluded two additional acquisitions. On 22 October 2015, the Company purchased two new properties tenanted by the Inspirepac Group, at a total value of GBP12.9 million with an expected forward yield of 6.7%. On 26 November 2015, the Company acquired a new property tenanted by Gestamp Tallent Limited at a total value of GBP10.8 million with an expected forward yield of 7.4%. Both acquisitions were financed with a combination of new debt and existing cash. During the period, the company also successfully refinanced a major portion of its debt portfolio (GBP54.6 million), in this process, the company repaid GBP10 million and reduced the cost of the remaining GBP44.6 million from 7% to around 3,9%. This will benefit earnings in the next period. DIVIDEND PAID The dividend of 3 pence per share declared at the six months’ results, was paid in December 2015. Shareholders were given the option to receive their dividend as cash or as a scrip dividend and as a result, 372 657 new shares were issued to existing shareholders. Cash dividends of approximately GBP1,45 million were paid. COMPANY OUTLOOK In line with the strategy to grow the asset base of the company, there are a number of potential transactions that the company is evaluating which we are hopeful of completing before the year end. Management is on track to meet its projected distribution of 7 pence per share for the full 2015/16 year. OVERVIEW OF THE BUSINESS Atlantic Leaf is a Mauritian registered company, regulated by the Mauritius Financial Services Commission and holds a Category One Global Business Licence. The primary objective of the Company is to provide investors with consistent income and growth by investing in quality real estate assets which generate appropriate income yields and have potential of capital appreciation. The Company has a primary listing on the Stock Exchange of Mauritius Ltd ("SEM") and a secondary listing on the AltX of the Johannesburg Stock Exchange Limited ("JSE"). By order of the Board Intercontinental Trust Limited Company Secretary 11 January 2016 STATEMENT OF FINANCIAL POSITION Unaudited Unaudited Audited as at as at as at 30 Nov 2015 30 Nov 2014 28 Feb 15 GBP GBP GBP ASSETS Non-current assets 87 475 978 12 733 627 26 255 997 Financial assets at fair value through profit or loss 83 150 964 12 733 627 13 652 211 Escrow account – – 10 813 467 Loan receivable 4 325 014 – 1 790 319 Current assets 887 022 16 036 114 10 007 685 Trade and other receivables 8 323 44 009 321 134 Cash and cash equivalents 878 699 15 992 105 9 686 551 Total assets 88 363 000 28 769 741 36 263 682 Equity and liabilities Equity 86 164 252 28 551 882 36 134 679 Share capital 83 435 261 28 327 802 34 770 873 Reserves – – – Retained earnings 2 728 991 224 080 1 363 806 Liabilities Current liabilities 2 198 748 217 859 129 003 Trade and other payables 2 193 865 217 859 129 003 Tax provision 4 883 – – Total equity and liabilities 88 363 000 28 769 741 36 263 682 Number of shares in issue 78 806 785 27 854 852 33 941 306 Net asset value per share (GBP) 1.09 1.03 1.06 STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Unaudited Unaudited Audited 9 months 3 months 9 months 3 months Year ended ended ended ended ended 30 Nov 2015 30 Nov 2015 30 Nov 2014 30 Nov 2014 28 Feb 2015 GBP GBP GBP GBP GBP INCOME 4 261 061 1 628 252 623 157 282 007 1 746 138 Net gain on financial assets at fair value through profit and loss 4 098 296 1 572 806 589 392 273 775 1 691 031 Dividend income 31 487 2 667 25 328 7 891 33 509 Interest income 131 278 52 779 8 437 341 21 598 EXPENSES (1 037 650) (213 460) (399 077) (89 975) (373 290) Operating expenses (34 112) (10 765) (68 816) (13 081) (49 939) Property service fee (399 934) (179 710) (128 712) (53 172) (182 099) Audit fees (6 900) (2 300) (7 179) (1 881) (10 928) Directors’ fees (15 000) – – – (25 833) Foreign exchange gain/(loss) (513 583) 10 573 – – 118 150 Professional fees (68 122) (31 258) (194 370) (21 841) (222 641) Profit before taxation 3 223 410 1 414 792 224 080 192 032 1 372 848 Taxation (11 096) (2 740) – – (9 042) Profit for the period 3 212 315 1 412 052 224 080 192 032 1 363 806 OTHER COMPREHENSIVE INCOME Effective portion of changes in fair value of cash flow hedges 368 667 – – – – Total comprehensive income for the period 3 580 982 1 412 052 224 080 192 032 1 363 806 Weighted average number of shares in issue 54 744 237 73 124 673 14 397 535 14 397 535 18 930 998 Basic earnings per share and headline earnings per share (GBP pence) 5.87 1.93 1.56 1.33 7.20 Adjusted headline earnings per share (GBP pence) 6.92 1.93 2.87 1.44 8.28 There are no reconciling items between basic earnings and headline earnings Atlantic Leaf has no dilutionary instruments in issue RECONCILIATION OF ADJUSTED HEADLINE EARNINGS PER SHARE Unaudited Unaudited Unaudited Unaudited Audited 9 months 3 months 9 months 3 months Year ended ended ended ended ended 30 Nov 2015 30 Nov 2015 30 Nov 2014 30 Nov 2015 28 Feb 2015 GBP GBP GBP GBP GBP Profit/(loss) for the period 3 212 315 1 412 052 224 080 192 032 1 363 806 Adjusted for: One-off listing costs – – 33 282 19 568 47 722 One-off transaction costs – – 140 150 – 140 151 Foreign exchange losses/ (gains) on equity raise 578 540 – 16 392 (4 742) 16 392 Adjusted headline earnings 3 790 856 1 412 052 413 904 206 858 1 568 071 STATEMENT OF CHANGES IN EQUITY Stated Retained capital earnings Reserves Total GBP GBP GBP GBP At 1 March 2014 1 000 – – 1 000 Issue of shares 28 326 802 – – 28 326 802 Net income attributable to shareholders – 224 080 – 224 080 At 30 November 2014 28 327 802 224 080 – 28 551 882 Issue of shares 6 443 071 – – 6 443 071 Net income attributable to shareholders – 1 139 726 – 1 139 726 At 28 February 2015 34 770 873 1 363 806 – 36 134 679 Issue of shares 48 664 388 – – 48 664 388 Net income attributable to shareholders 3 212 399 3 212 399 Dividends paid – (1 847 214) (1 847 214) Effective portion of changes in fair value of cash flow hedges – – – – At 30 November 2015 83 435 261 2 728 991 – 86 164 252 STATEMENT OF CASH FLOWS Unaudited Unaudited Audited 9 months 9 months 12 months ended ended ended 30 Nov 2015 30 Nov 2014 28 Feb 2015 GBP GBP GBP Net cash utilised in operating activities 5 848 (192 660) (637 506) Cash outflow from investing activities (56 964 504) (12 143 037) (24 564 966) Cash inflow from financing activities 48 664 388 28 326 802 34 769 873 Increase in cash and cash equivalents (8 294 268) 15 991 105 9 567 401 Cash and cash equivalents at beginning of the period 9 686 551 1 000 1 000 Effects of exchange difference on cash and cash equivalents (513 584) – 118 150 Cash and cash equivalents at end of period 878 699 15 992 105 9 686 551 NOTES The Company is required to publish financial results for the three and nine months ended 30 November 2015 in terms of the Listing Rule 12.19 of the SEM. The abridged unaudited financial statements for the three and nine months ended 30 November 2015 ("financial statements") have been prepared in accordance with the measurement and recognition requirements of IFRS, the requirements of IAS 34: Interim Financial Reporting, the SEM Listing Rules and the Securities Act of Mauritius 2005. The accounting policies adopted in the preparation of these financial statements are consistent with those applied in the preparation of the audited financial statements for the year ended 28 February 2015. These financial statements were approved by the Board on 11 January 2016. The financial statements have not been reviewed or reported on by the Company’s external auditors. Copies of the abridged unaudited financial statements and the Statement of direct and indirect interests of each officer of the Company, pursuant to Rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007, are available free of charge, upon request at the Registered Office of the Company at Level 3, Alexander House, 35 Cybercity, Ebene 72201, Mauritius. Contact person: Mr Kesaven Moothoosamy. This communique is issued pursuant to SEM Listing Rules 11.3 and 12.20 and section 88 of the Securities Act of Mauritius 2005. The Board accepts full responsibility for the accuracy of the information contained in these financial statements. The Directors have disclosed all matters or circumstances arising subsequent to the period ended 30 November 2015 that require any additional disclosure or adjustment to the financial statements. South African joint corporate advisor and JSE sponsor Java Capital +27 11 722 3050 South African joint corporate advisor Leaf Capital +27 21 657 1180 Corporate secretary Intercontinental Trust Limited +230 403 0800 12 January 2016 Date: 12/01/2016 11:15:00 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.