Wrap Text
Unaudited Condensed Consolidated Financial Results For The Six Months Ended 30 June 2016
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 2016
DIRECTORS' COMMENTARY
DISTRIBUTABLE EARNINGS
The Group achieved 18.68 euro cents in recurring distributable earnings per share for the six-month period ended 30 June 2016.
This represents a 6.2% increase compared to the 17.59 euro cents recurring distributable earnings reported for the first half of 2015,
and an improvement compared to the 5% growth guidance issued on 9 February 2016. This is due to the strong performance of the
Company's assets and the favourable impact of acquisitions and developments completed after June 2015.
HALF-YEAR DISTRIBUTION AND OPTION TO RECEIVE CAPITAL RETURN
The Company declares a distribution of 18.68 euro cents per share for the six months ended 30 June 2016. Shareholders can elect
to receive their distribution either in cash or as an issue of fully paid shares at a ratio between the distribution declared and the
reference price. The reference price will be determined using a 5% discount to the five–day volume weighted average traded price
(less distribution) of NEPI shares on the Johannesburg Stock Exchange Limited (JSE), by no later than 5 September 2016.
A circular containing details of the election being offered to shareholders, accompanied by announcements on the Stock Exchange
News Service (SENS) of the JSE, the Regulatory News Service (RNS) of the London Stock Exchange (LSE) and the Bucharest Stock
Exchange (BVB), will be issued in due course.
HIGHLIGHTS
The Company continues to pursue investment opportunities in the Central and Eastern European (CEE) region, consolidating
its position in the markets where it has established its presence and entering new markets. Despite increased competition, NEPI
remains well positioned to leverage its platform and track record as a foundation for further expansion.
ACQUISITIONS AND DEVELOPMENTS
The Group acquired and developed a number of properties during the first half of 2016 (discussed below). The country and the
effective or opening date are included in brackets. All figures related to populations are estimates.
RETAIL PROPERTY ACQUISITIONS AND COMPLETED DEVELOPMENTS AND EXTENSIONS
Forum Ústí nad Labem (Czech Republic, 29 February 2016)
NEPI has acquired a 27,800m(2) GLA shopping mall, the main shopping centre in Ústí nad Labem, a city with 93,000 inhabitants
and 478,000 residents within a 45–minute drive. Anchored by a Billa supermarket, the centre houses numerous international
and national brands such as Adidas, CCC, C&A, Cropp, Deichmann, dm, Gant, H&M, Humanic, KFC, Levi's, Manufaktura, Mohito,
New Yorker, Nike, Orsay, Promod, Takko, Tchibo and Tommy Hilfiger, as well as a five–screen Cinema City.
Shopping City Sibiu (Romania, 31 March 2016)
NEPI acquired Shopping City Sibiu, a 79,100m(2) GLA retail park, located in Sibiu, a city with 170,000 inhabitants and
286,000 residents within a 45–minute drive. It is the city's main shopping destination and it contains two hypermarkets,
Auchan and Carrefour, and numerous international and national tenants, such as Adidas, Altex, Benvenuti, BSB, C&A, CCC,
Coccodrillo, Decathlon, Deichmann, Diverta, dm, Douglas, Flanco, H&M, Hervis, Humanic, Kendra, Kenvelo, KFC, Lee Cooper,
New Yorker, Noriel, Orsay, Pepco, Salamander, Takko, Yves Rocher, and a wide selection of furniture and DIY stores, including Jysk,
Lems, Leroy Merlin, Mobexpert, Nobila Casa and Rovere Mobili. NEPI will refurbish the centre in 2017, improving its offering with a
cinema, entertainment and fashion extensions.
Shopping City Timisoara – fashion and entertainment section (Romania, 31 March 2016)
The Group has completed the second phase of Shopping City Timisoara, which consists of an additional 41,400m(2) of fashion
and entertainment GLA. This complements the first phase, a 16,300m(2) GLA hypermarket and gallery, which opened at the end
of 2015. The centre is located in Timisoara, the third largest city in Romania, with 334,000 inhabitants and 570,000 residents
within a 45–minute drive. Anchored by a Carrefour hypermarket, the centre houses a large number of international brands such
as Bershka, C&A, CCC, Collins, Cropp, Deichmann, dm, Douglas, H&M, Hervis, House, Intersport, Kendra, KFC, Koton, LC Waikiki,
Lee Cooper, Levi's, New Yorker, Noriel, Orsay, Otter, Pepco, Pimkie, Pizza Hut, Pull&Bear, Reserved, Sensiblu, Sephora, Sinsay,
Sport Vision, Stradivarius, Timeout, Tom Tailor, Yver Rocher and Zara, a gym, swimming pool and a thirteen–screen cinema (the
largest outside of Bucharest), with IMAX and 4DX auditoriums. Shopping City Timisoara is adjacent to a Dedeman shop (a successful
Romanian DIY) and has land available for further extension. The occupancy rate is currently 99.4%.
Mega Mall – acquisition of minority interest (Romania, 31 May 2016)
Following the purchase of a 30% interest, NEPI is the sole owner of Mega Mall. The property has been trading since May 2015, has
75,500m(2) of GLA and is the dominant mall in eastern Bucharest, with 910,000 residents within a 30–minute drive. The transaction
was finalised in July, following receipt of Competition Council's approval, and will be recognised in the financial statements of the
third quarter of 2016.
DEVELOPMENT PIPELINE
Consistent with its strategy, the Group continues to invest in developments that significantly contribute to the growth in distributable
earnings per share. NEPI is pursuing a development pipeline which exceeds EUR750 million (including redevelopments and extensions,
estimated at cost), of which EUR190 million was spent by 30 June 2016. This represents an increase of approximately EUR150 million
compared with 31 December 2015.
RETAIL PROPERTY DEVELOPMENTS AND EXTENSIONS
Promenada Mall extension (Romania)
The Group is in process of obtaining new zoning and construction permits for a retail extension and integrated office building to
its Promenada Mall, located in Bucharest's new business district. Subject to permitting, the extension will be completed in 2018.
City Park – fashion extension (Romania)
NEPI has commenced the phased opening of City Park's fashion extension, located in Constanta. The city has 319,000 inhabitants
and there are 541,000 residents within a 45–minute drive. All tenants will be trading in the second half of 2016. Anchored by a Cora
hypermarket, the centre has a ten–screen cinema with a 4DX auditorium operated by Cinema City, and, following the completion of
the extension, will include internationally renowned tenants such as Adidas, Bata, BSB, Benvenuti, Bershka, C&A, Colin's, Columbia,
Ecco, Guess, H&M, Koton, Lacoste, LC Waikiki, Mango, Marks & Spencer, Mothercare, Motivi, Musette, New Yorker, Nike, Oysho,
Pandora, Pull&Bear, Sephora, Sport Vision, Stefanel, Stradivarius, Tom Tailor, US Polo Assn, World Class, Zara and Zara Home.
The centre will have approximately 50,000m(2) GLA.
Shopping City Piatra Neamt (Romania)
The Group has started construction of the 27,900m(2) GLA regional mall in Piatra Neamt. Tenants such as Cinema City, C&A, CCC, Intersport,
New Yorker, Orsay and Pepco have been secured. Leasing is on–going and the centre is targeted to open by the end of 2016.
Novi Sad Mall (Serbia)
Following the acquisition of a 3.3ha land plot in Novi Sad (Serbia's second largest city), NEPI has initiated permitting for the
development of a shopping mall with more than 50,000m2 GLA. Novi Sad has 250,000 inhabitants, with 354,000 residents within
a 30–minute drive. Given the prime location, excellent visibility and size, the scheme will become dominant in the city. The mall
will house international fashion brands and diverse entertainment facilities. Subject to permitting, the opening is targeted for 2018.
OFFICE DEVELOPMENTS
The Office, Cluj–Napoca – third phase (Romania)
Construction on the third phase of The Office, Cluj–Napoca, comprising 18,500m2 GLA, is on–going and will be completed
during 2017.
Victoriei Office (Romania)
The Group is developing a 8,400m(2) GLA landmark office, including a refurbished historical building, located in central Bucharest,
adjacent to the Romanian Government building. The building has been largely completed and the fit-out is currently under
permitting, to be finalised by the end of 2016.
CASH MANAGEMENT AND DEBT
The Company raised EUR195 million issuing new ordinary shares in 2016, of which EUR156 million was raised in the accelerated book build
which closed on 13 July 2016. NEPI repaid the Floreasca Business Park loan (EUR46 million) and obtained additional bank financing for
Aupark Kosice (EUR25 million), and for The Office, Cluj-Napoca (EUR8.5 million). During the first half of 2016, the average interest rate,
including hedging costs, was 3.7%, down from 3.9% in 2015. As of 30 June 2016, 34% of the base interest rate (Euribor) was hedged
with interest rate caps and 66% with interest rate swaps.
As at 30 June 2016, the Group had EUR54 million in cash, EUR20 million in listed property securities and an additional undrawn revolving
facility of EUR80 million. NEPI's gearing ratio (interest bearing debt less cash divided by investment property and listed property
securities) was 24.3%, compared to 14.6% at the end of the previous year.
OTHER HIGHLIGHTS
Non–recoverable tenant income for the first half of 2016 was equivalent to 0.3% of the contractual rental income and expense
recoveries. The vacancy level is 1.9%, excepting non–core properties held for sale.
CHANGES TO THE BOARD OF DIRECTORS
Mr Tiberiu Smaranda will resign from his position of Executive Director, effective 1 September 2016, to pursue other opportunities.
On 13 June 2016, the Board appointed Mr Antoine Laurens Vincent Dijkstra as a Non–executive Director. Mr Dijkstra has extensive
experience in investment management, with a focus on public sector related entities and financial institutions, and has advised
numerous clients on financing.
PROSPECTS AND EARNINGS GUIDANCE
Recurring distributable earnings per share for the year 2016 are expected to be approximately 15% higher compared to 2015, in line
with the guidance issued on 9 February 2016. This guidance is based on the assumptions that a stable macroeconomic environment
prevails, no major corporate failures occur, planned developments remain on schedule, and is sensitive to the impact of acquisitions
currently in the pipeline. This forecast has not been audited or reviewed by NEPI's auditors and is the responsibility of the Board.
By order of the Board of Directors,
Alexandru Morar Mirela Covasa
Chief Executive Officer Finance Director
10 August 2016
Management Accounts All amounts in EUR '000 unless otherwise stated
CONSOLIDATED STATEMENTS OF INCOME 30 Jun 2016 31 Dec 2015 30 Jun 2015
Gross rental income 68 356 110 937 49 731
Net service charge and operating expenses (970) (2 526) (767)
Service charge and other recoveries 29 017 44 074 19 110
Property operating expenses (29 987) (46 600) (19 877)
Net operating income 67 386 108 411 48 964
Corporate expenses (6 466) (9 618) (3 583)
Property management net result 1 761 2 902 1 475
EBITDA 62 681 101 695 46 856
Net finance (expense)/income (8 545) (5 759) 409
Finance expenses (12 196) (17 829) (7 220)
Finance income 765 3 822 2 354
Interest capitalised on development costs 2 886 8 248 5 275
Non–controlling interest 2 316 (7 427) 3 809
Dividends received from financial investments 393 – –
Current income tax (351) – –
Direct investment result 56 494 88 509 51 074
Indirect investment result 10 402 69 889 64 575
Profit for the year attributable to equity holders 66 896 158 398 115 649
Reverse indirect result (10 402) (69 889) (64 575)
Company specific adjustments (282) 12 096 (158)
Distributable earnings before issue cum distribution 56 212 100 605 50 916
Issue cum distribution adjustment 341 1 954 388
Distributable earnings 56 553 102 559 51 304
Distributable earnings per share (euro cents) 18.68 35.34 18.17
of which recurring distributable earnings per share (euro cents) 18.68 34.76 17.59
Distribution per share (euro cents) 18.68 35.34 18.17
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 30 Jun 2016 31 Dec 2015 30 Jun 2015
ASSETS
Non–current assets 2 188 017 1 858 740 1 670 075
Investment property 2 130 934 1 814 357 1 611 737
Investment property at fair value 1 928 089 1 655 219 1 460 938
Developments at cost 202 845 159 138 150 799
Goodwill 39 010 23 986 20 334
Other long–term assets 17 357 18 115 37 742
Financial assets at fair value through profit or loss 716 2 282 262
Current assets 149 158 410 095 145 899
Investment property held for sale 21 479 25 255 27 135
Trade and other receivables 53 940 55 229 55 276
Financial investments at fair value through profit or loss 19 556 – –
Cash and cash equivalents 54 183 329 611 63 488
Total assets 2 337 175 2 268 835 1 815 974
LIABILITIES 788 620 772 285 464 711
Bank borrowings 179 227 201 095 302 977
Bonds 397 518 393 414 –
Deferred tax liabilities 115 561 93 571 81 162
Other long–term liabilities 17 144 15 443 14 585
Financial liabilities at fair value through profit or loss 3 188 3 417 3 749
Trade and other payables 75 982 65 345 62 238
Equity attributable to equity holders 1 548 555 1 496 550 1 351 263
Total liabilities and equity attributable to equity holders 2 337 175 2 268 835 1 815 974
Adjusted NAV per share (euro) 5.37 5.25 5.00
RECONCILIATION OF PROFIT FOR THE PERIOD TO DISTRIBUTABLE EARNINGS 30 Jun 2016 31 Dec 2015 30 Jun 2015
Profit for the period attributable to equity holders 66 896 158 398 115 649
Reverse indirect result (10 402) (69 889) (64 575)
Unrealised foreign exchange loss/(gain) 51 344 (30)
Acquisition fees 1 542 933 580
Share–based payment expense – 670 670
Fair value adjustments of investment property (20 208) (89 946) (78 419)
Fair value adjustment of financial assets and liabilities 1 338 (1 398) (1 442)
Fair value of listed securities investments (484) – –
Net result on sale of listed securities investments 630 – –
Loss on sale of investment property 235 – –
Deferred tax expense 6 494 19 508 14 066
Company specific adjustments (282) 12 096 (158)
Amortisation of financial assets (2 873) (3 554) (332)
Realised foreign exchange loss 41 4 72
Accrued dividend for financial investments 487 – –
Accrued interest on share–based payments 1 89 102
Fair value adjustment of investment property
for non-controlling interest 2 514 18 598 –
Deferred tax expense for non-controlling interest (452) (3 041) –
Antecedent dividend 341 1 954 388
Distributable earnings for the period 56 553 102 559 51 304
Less: distribution declared (56 553) (102 559) (51 304)
Interim distribution (56 553) (51 304) (51 304)
Final distribution – (51 255) –
Earnings not distributed – – –
Number of shares entitled to distribution 302 714 153 298 590 564 282 423 985
Distributable earnings per share for the period (euro cents) 18.68 35.34 18.17
Less: Distribution declared per share (euro cents) (18.68) (35.34) (18.17)
Interim distribution per share (euro cents) (18.68) (18.17) (18.17)
Final distribution per share (euro cents) – (17.17) –
Earnings not distributed (euro cents) – – –
LEASE EXPIRY PROFILE 2016 2017 2018 2019 2020 2021 2022 2023 2024 more than or Total
equal to 2025
Total based on rental income 1.7% 8.6% 12.3% 14.5% 17.4% 15.5% 7.2% 2.9% 4.0% 15.9% 100%
Total based on rented area 0.6% 5.2% 11.8% 14.4% 14.2% 14.3% 8.2% 5.0% 4.9% 21.4% 100%
BASIS OF PREPARATION
The management accounts presented constitute pro forma financial information in terms of the JSE Limited Listings Requirements
and have not been prepared in accordance with IAS 34 Interim Financial reporting. 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 unaudited management accounts. The main difference
between the management accounts and the condensed consolidated financial results prepared in accordance with IFRS is that
the management accounts are prepared using the proportionate consolidation method for investments in joint ventures, which is
not in accordance with IFRS (consistent with financial statements prepared in accordance with IFRS reported before 1 January 2013),
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 management accounts have been prepared by and are the responsibility of the
Directors of NEPI. Due to their 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 six months ended 30 June 2016 have not been reviewed or
reported on by the Group's external auditors.
IFRS Accounts All amounts in EUR '000 unless otherwise stated
Unaudited Audited Unaudited
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 30 Jun 2016 31 Dec 2015 30 Jun 2015
Net rental and related income 64 403 104 067 46 908
Contractual rental income and expense recoveries 93 292 148 799 65 913
Property operating expenses (28 889) (44 732) (19 005)
Administrative expenses (4 676) (6 695) (2 112)
EBITDA 59 727 97 372 44 796
Acquisition fees (1 542) (933) (580)
Fair value adjustments of investment property 15 839 81 742 77 167
Fair value gains on financial investments at fair value through profit or loss 484 – –
Net result on sale of financial investments (630) – –
Dividends received from financial investments 393 – –
Share–based payment expense – (670) (670)
Foreign exchange (loss)/gain (51) (339) 16
Loss on disposal of investment property held for sale (235) – –
Profit before net finance (expense)/income 73 985 177 172 120 729
Net finance (expense)/income (5 805) (916) 3 645
Finance income 2 802 7 613 5 606
Finance expense (8 607) (8 529) (1 961)
Changes in fair value of financial instruments (724) 1 149 –
Share of profit of joint ventures 2 916 2 399 1 257
Profit before tax 70 372 179 804 125 631
Current tax expense (351) – –
Deferred tax expense (5 441) (13 979) (13 791)
Profit after tax 64 580 165 825 111 840
Total comprehensive income for the year 64 580 165 825 111 840
Non–controlling interest 2 316 (7 427) 3 809
Profit for the period attributable to equity holders 66 896 158 398 115 649
Weighted average number of shares in issue 300 845 492 284 461 222 277 645 825
Diluted weighted average number of shares in issue 300 868 790 285 813 260 280 328 732
Basic earnings per share (euro cents) 22.24 55.68 41.65
Diluted earnings per share (euro cents) 22.23 55.42 41.25
Unaudited Audited Unaudited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 Jun 2016 31 Dec 2015 30 Jun 2015
ASSETS
Non–current assets 2 150 727 1 829 440 1 643 184
Investment property 2 043 175 1 732 760 1 541 456
Investment property at fair value 1 845 324 1 576 019 1 399 338
Investment property under development 197 851 156 741 142 118
Goodwill 39 010 23 986 20 334
Investments in joint ventures 18 556 15 640 10 451
Long–term loans granted to joint ventures 31 955 36 674 32 942
Other long–term assets 17 315 18 098 37 739
Financial assets at fair value through profit or loss 716 2 282 262
Current assets 123 358 381 097 114 819
Trade and other receivables 53 039 54 487 54 308
Financial investments at fair value through profit or loss 19 556 – –
Cash and cash equivalents 50 763 326 610 60 511
Investment property held for sale 21 479 25 255 27 135
Total assets 2 295 564 2 235 792 1 785 138
EQUITY AND LIABILITIES
Total equity attributable to equity holders 1 548 555 1 496 550 1 351 263
Share capital 3 027 2 986 2 824
Share premium 1 213 293 1 213 325 1 083 664
Share–based payment reserve 4 797 4 797 4 797
Currency translation reserve (1 229) (1 229) (1 229)
Accumulated profit 329 354 275 042 270 814
Non–controlling interest (687) 1 629 (9 607)
Total liabilities 747 009 739 242 433 875
Non–current liabilities 661 667 661 717 193 156
Bank borrowings 139 111 162 788 97 647
Bonds 394 042 392 140 –
Deferred tax liabilities 110 589 89 652 78 450
Other long–term liabilities 16 619 14 988 14 290
Financial liabilities at fair value through profit or loss 1 306 2 149 2 769
Current liabilities 85 342 77 525 240 719
Bank borrowings 7 829 13 424 179 696
Bonds 3 476 1 274 –
Trade and other payables 74 037 62 827 61 023
Total equity and liabilities 2 295 564 2 235 792 1 785 138
BUSINESS COMBINATIONS Shopping City Sibiu Forum Usti Nad Labem Total
Investment property 100 000 82 600 182 600
Current assets 3 293 4 546 7 839
Current liabilities (5 970) (3 371) (9 341)
Deferred tax liabilities (9 850) (5 646) (15 496)
Total identifiable net assets at fair value 87 473 78 129 165 602
Goodwill arising on acquisition 9 850 5 646 15 496
Total consideration payable 97 323 83 775 181 098
Amounts retained from sellers (1 000) – (1 000)
Total consideration paid in cash 96 323 83 775 180 098
Share-based Currency Non-
CONSOLIDATED STATEMENT Share Share payment translation Accumulated controlling Total
OF CHANGES IN EQUITY capital premium reserve reserve profit interest
Balance at 1 January 2015 2 746 1 074 310 4 127 (1 229) 167 133 (5 798) 1 241 289
Transactions with owners 78 9 354 670 – (11 968) – (1 866)
– Issue of shares 43 189 – – – – 232
– Sale of shares issued under
the Initial Share Scheme 35 9 165 – – – – 9 200
– Vesting of shares issued under
the Initial Share Scheme – – 670 – – – 670
– Earnings distribution – – – – (11 968) – (11 968)
Total comprehensive income – – – – 115 649 (3 809) 111 840
– Profit for the period – – – – 115 649 (3 809) 111 840
Balance at 30 June 2015 2 824 1 083 664 4 797 (1 229) 270 814 (9 607) 1 351 263
Balance at 1 July 2015 2 824 1 083 664 4 797 (1 229) 270 814 (9 607) 1 351 263
Transactions with owners 162 129 661 – – (38 521) – 91 302
– Issue of shares 162 129 578 – – – – 129 740
– Sale of shares issued under
the Initial Share Scheme – 83 – – – – 83
– Earnings distribution – – – – (38 521) – (38 521)
Total comprehensive income – – – – 42 749 11 236 53 985
– Profit for the year – – – – 42 749 11 236 53 985
Balance at 31 December 2015 2 986 1 213 325 4 797 (1 229) 275 042 1 629 1 496 550
Balance at 1 January 2016 2 986 1 213 325 4 797 (1 229) 275 042 1 629 1 496 550
Transactions with owners 41 (32) – – (12 584) – (12 575)
– Issue of shares 41 (60) – – – – (19)
– Sale of shares issued under
the Initial Share Scheme – 28 – – – – 28
– Earnings distribution – – – – (12 584) – (12 584)
Total comprehensive income 66 896 (2 316) 64 580
– Profit for the period – – – – 66 896 (2 316) 64 580
Balance at 30 June 2016 3 027 1 213 293 4 797 (1 229) 329 354 (687) 1 548 555
SEGMENTAL ANALYSIS Retail Office Industrial Corporate Total
30 June 2016 (unaudited)
Contractual rental income and expense recoveries 77 855 14 405 1 032 – 93 292
Profit before net finance expense 70 315 4 622 808 (1 760) 73 985
Total Assets 1 841 129 371 960 16 683 65 792 2 295 564
Total Liabilities 284 694 60 834 2 435 399 046 747 009
31 December 2015 (audited)
Contractual rental income and expense recoveries 120 046 26 728 2 025 – 148 799
Profit before net finance expense 162 501 15 856 1 295 (2 480) 177 172
Total Assets 1 532 260 380 016 17 099 306 417 2 235 792
Total Liabilities 241 875 99 038 2 372 395 957 739 242
30 June 2015 (unaudited)
Contractual rental income and expense recoveries 51 357 13 540 1 016 – 65 913
Profit before net finance expense 114 836 8 124 584 (2 815) 120 729
Total Assets 1 400 044 301 816 17 114 66 164 1 785 138
Total Liabilities 280 862 121 548 2 457 29 008 433 875
Unaudited Audited Unaudited
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 30 Jun 2016 31 Dec 2015 30 Jun 2015
Profit after tax 64 580 165 825 111 840
Adjustments (3 479) (66 987) (66 367)
Changes in working capital (2 963) 1 378 9 772
Cash flows from operating activities 58 138 100 216 55 245
Proceeds from issue of shares 9 139 255 9 431
Earnings distribution (12 584) (50 489) (11 968)
Net movements in bank loans and bonds borrowings (28 141) 297 522 1 122
Other proceeds/payments – (2 395) –
Cash flows from financing activities (40 716) 383 893 (1 415)
Investments in acquisitions and developments (273 959) (265 735) (101 555)
Net cash flow used in investments in financial assets (19 310) – –
Cash flows used in investing activities (293 269) (265 735) (101 555)
Net (decrease)/ increase in cash and cash equivalents (275 847) 218 374 (47 725)
Cash and cash equivalents brought forward 326 610 108 236 108 236
Cash and cash equivalents carried forward 50 763 326 610 60 511
Unaudited Audited Unaudited
RECONCILIATION OF NET ASSET VALUE TO ADJUSTED NET ASSET VALUE 30 Jun 2016 31 Dec 2015 30 Jun 2015
Net Asset Value per the Statement of financial position 1 548 555 1 496 550 1 351 263
Loans in respect of the Initial Share Scheme 36 64 145
Deferred tax liabilities for controlled subsidiaries 110 589 89 652 78 450
Goodwill (39 010) (23 986) (20 334)
Deferred tax liabilities for joint ventures 4 972 3 919 2 712
Adjusted Net Asset Value 1 625 142 1 566 199 1 412 236
Net Asset Value per share (euro) 5.12 5.01 4.79
Adjusted Net Asset Value per share (euro) 5.37 5.25 5.00
Number of shares for Net Asset Value per share purposes 302 700 153 298 565 564 282 367 737
Number of shares for Adjusted Net Asset Value per share purposes 302 714 153 298 590 564 282 423 985
Unaudited Audited Unaudited
RECONCILIATION OF PROFIT FOR THE PERIOD TO HEADLINE EARNINGS 30 Jun 2016 31 Dec 2015 30 Jun 2015
Profit for the period attributable to equity holders 66 896 158 398 115 649
Fair value adjustments of investment property for controlled subsidiaries (15 839) (81 742) (77 167)
Loss on sale of investment property held for sale 235 – –
Tax effects of adjustments for controlled subsidiaries 2 965 14 333 12 578
Fair value adjustments of investment property for joint ventures (4 369) (8 204) (1 252)
Tax effects of adjustments for joint ventures 699 1 312 200
Headline earnings 50 587 84 097 50 008
Weighted average number of shares in issue 300 845 492 284 461 222 277 645 825
Diluted weighted average number of shares in issue 300 868 790 285 813 260 280 328 732
Headline earnings per share (euro cents) 16.81 29.56 18.01
Diluted headline earnings per share (euro cents) 16.81 29.42 17.84
Outstanding Available for 2021 and
LOANS AND BORROWINGS REPAYMENT PROFILE Type Secured/Unsecured Ownership amount drawdown 2016 2017 2018 2019 2020 beyond
Aupark Kosice Mall & Tower Term loan Secured 100% 102 237 – 2 763 5 526 5 526 5 526 82 896 –
Aupark Zilina Mall Term loan Secured 100% 44 896 – 1 038 43 858 – – – –
Ploiesti Shopping City Term loan Secured 50% 15 786 – 548 1 095 1 095 1 095 1 094 10 859
The Office Term loan Secured 50% 16 841 – 315 950 1 050 1 050 1 050 12 426
City Business Centre Term loan Secured 100% – 20 000 – – – – – –
NE Property Cooperatief Fixed coupon bonds Unsecured 100% 400 000 – – – – – – 400 000
NE Property Cooperatief Revolving facility Unsecured 100% – 80 000 – – – – – –
Total 579 760 100 000 4 664 51 429 7 671 7 671 85 040 423 285
The reference base rate (1 month EURIBOR, 3 months EURIBOR) was hedged with a weighted average interest rate cap of 0.3% for 34% of the outstanding notional amount and a weighted
average interest rate swap of 1.7% for 66% of the outstanding notional amount.
BASIS OF PREPARATION
These unaudited condensed consolidated financial results for the six months ended 30 June 2016 have been prepared in accordance with IFRS, 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 financial statements for the
year ended 31 December 2015. These unaudited condensed consolidated financial results have not been reviewed or reported on by the Group's external auditors.
Certain information contained in this announcement would have been deemed inside information for the purpose of Article 7 Regulation (EU) No 596/2014 until the release of
this announcement.
For further information please contact: New Europe Property Investments Plc, Mirela Covasa: +4 072 137 1100
AIM Nominated Adviser and Broker: Smith & Williamson Corporate Finance Limited, Azhic Basirov/Katy Birkin: +44 20 7131 4000
JSE sponsor: Java Capital: +27 11 277 3050 BVB advisor: SSIF Intercapital Invest SA, Razvan Pasol: +40 21 222 8731
www.nepinvest.com
Date: 10/08/2016 12:57:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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