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Unaudited condensed consolidated financial results for the nine months ended 30 September 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
BVB share code: NEP
JSE share code: NEP
ISIN: IM00B23XCH02
('NEPI', 'the Group' or 'the Company')
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016
The Company is required to publish financial results for the nine months ended 30 September 2016 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 2016 to 30 September 2016 in a form compliant with the requirements of the RFSA and the BVB.
DIRECTORS' COMMENTARY
HIGHLIGHTS
The Group achieved 29.28 euro cents in distributable earnings per share for the first nine months of 2016. This represents
a 10.7% increase compared to the 26.45 euro cents recurring distributable earnings reported for the first nine months of
2015. The growth is due to continuing strong performance of NEPI's assets and the positive impact of acquisitions and
developments completed during the period.
On 20 October 2016, NEPI and Rockcastle Global Real Estate Company Limited ('Rockcastle'), a property investment
company, established in Mauritius and listed on the Johannesburg Stock Exchange ('JSE') and the Stock Exchange of
Mauritius ('SEM'), issued a joint cautionary announcement regarding a potential transaction between them. The discussions
have progressed to a co-operative evaluation of an all-share transaction, with each party's relative value
to be expressed in a share-swap ratio, subject to all required shareholder and regulatory approvals. Various legal, regulatory
and tax aspects are being analysed in several jurisdictions.
A transaction between NEPI and Rockcastle would result in a substantially enlarged market capitalisation, with all
shareholders expected to benefit from enhanced liquidity. A transaction will also see the integration of two
complementary management teams, positioned to unlock synergies and create further value for NEPI shareholders.
NEPI shareholders will be kept updated on progress toward finalisation of the details of a transaction. Pending further
announcements, NEPI shareholders are advised to continue to exercise caution when dealing in their shares.
NEPI continues to pursue investment opportunities in the Central and Eastern Europe ('CEE') region, consolidating its
position in the countries where it has established its presence and entering new markets.
ACQUISITIONS AND DEVELOPMENTS
The Group completed the acquisition and development of the properties discussed below during the third quarter of 2016.
The country and the effective or opening date are included in brackets following the name. Populations are estimates.
RETAIL ACQUISITIONS AND COMPLETED DEVELOPMENTS AND EXTENSIONS
Korzo Shopping Centrum (Slovakia, 19 July 2016)
The Group acquired Korzo Shopping Centrum, the main shopping centre in Prievidz, with a 16,500m2 GLA. The city has
48,000 residents and there are 78,000 inhabitants within a 15-minute drive. The centre is part of a larger retail park, including a Tesco
hypermarket and DIY.
The centre features numerous international brands, such as: C&A, CCC, Deichmann, dm, H&M, New Yorker, Pepco and Takko.
A refurbishment is being considered.
Aupark Shopping Center Piestany (Slovakia, 31 August 2016)
NEPI has acquired Aupark Shopping Center Piestany, a 10,300m2 GLA shopping mall, the main shopping centre in Piestany.
The city is the main resort and spa centre in Slovakia, and has a population of 28,000 residents. There are 60,000 inhabitants
within a 15-minute drive.
The centre is anchored by a Billa supermarket, and contains many international brands, such as: CCC, Mango, Marionnaud,
New Yorker, Orange, Orsay, Pepco and Takko.
The transaction was finalised in October, following Competition Council approval, and will be recognised in the financial
statements of the fourth quarter of 2016.
These two Slovakian acquisitions have consolidated NEPI's position as one of the country's top retail space owners.
City Park - fashion extension (Romania, 30 September 2016)
NEPI completed the phased opening of the fashion extension to the City Park mall, Constanta, a city with 319,000
residents. There are 541,000 inhabitants within a 45-minute drive. Anchored by a Cora hypermarket, the centre
has a ten-screen cinema with a 4DX auditorium operated by Cinema City, and features brands such as Adidas,
Bata, Benvenuti, Bershka, BSB, 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. Including the extension, the centre has 52,000m2
GLA and is well positioned to be the dominant mall in the city.
Subject to permitting, management plans to refurbish the food court and provide more parking spaces during 2017.
DEVELOPMENT PIPELINE
Consistent with its strategy, the Group invests in developments which significantly contribute to growth in distributable
earnings per share.
RETAIL PROPERTY DEVELOPMENTS AND EXTENSIONS
Ramnicu Valcea Mall (Romania)
Following the acquisition of a 12ha land plot in Ramnicu Valcea, NEPI has initiated permitting for the development of a
27,900m2 GLA regional mall. Ramnicu Valcea has 119,000 residents and there are 314,500 inhabitants within a 45-minute drive.
Discussions with potential tenants are on-going; the centre will include a hypermarket and fashion anchors, as well as a
cinema. Subject to permitting, the development will begin in the first quarter of 2017 and the shopping centre is scheduled
to open in the fourth quarter of 2017.
Novi Sad Mall (Serbia)
The permitting process for a development of up to 56,000m2 GLA shopping mall in Novi Sad is on-going, with construction
expected to start in the first quarter of 2017 and opening targeted for the end of 2018. Novi Sad is the second-largest city
in Serbia, and has 250,000 inhabitants, with 354,000 residents within a 30-minute drive from the development.
Shopping City Galati (Romania)
The Group intends to extend Shopping City Galati, a 27,200m2 GLA regional mall, located in Galati, a city with 306,000
residents and 559,000 inhabitants within a 45-minute drive. Anchored by a Carrefour hypermarket, the centre now includes
internationally renowned brands, such as Benvenuti, BSB, C&A, CCC, dm, Deichmann, H&M, Intersport, Kendra, KFC,
Marionnaud, New Yorker, Nike, Otter, US Polo Assn., Yves Rocher. The centre's performance since opening has been excellent
and NEPI will extend it with approximately 21,000m2 GLA, including a cinema, food court and international fashion tenants.
Subject to permitting, management intends to start construction in the fourth quarter of 2016 and targets to complete the
extension in the second half of 2017.
Shopping City Piatra Neamt (Romania)
The Group is completing the development of a 27,900m2 GLA regional mall in Piatra Neamt. Piatra Neamt has 116,000 inhabitants,
and there are 245,000 residents within a 45-minute drive. Opening is scheduled for December 2016. Tenant leases for 90% of GLA
have been signed, including international brands such as Carrefour, CCC, Cinema City, Deichmann, dm, H&M, Intersport, KFC,
New Yorker, Pepco and Takko.
Shopping City Sibiu (Romania)
Shopping City Sibiu is a 79,100m2 GLA regional mall located in Sibiu, a city with 170,000 residents and 286,000 inhabitants
within a 45-minute drive. The mall is anchored by two hypermarkets, Carrefour and Auchan, and includes numerous
international and national brands, 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, Marionnaud, 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 intends to extend, reconfigure and refurbish the centre. The
extension will add approximately 11,000m2 GLA, including a cinema, food court and international fashion brands.
Subject to permitting, management intends to start construction in the first quarter of 2017 and targets to complete the
extension by the end of 2017.
OTHER HIGHLIGHTS
Non-recoverable tenant income for the first nine months of 2016 was equivalent to 0.4% of the contractual rental income
and expense recoveries. Excluding non-core properties, the vacancy level is 1.9%.
NEPI is now the sole owner of Mega Mall, following the purchase of the remaining 30% interest from the minority shareholder.
The transaction was finalised in July 2016, following Competition Council approval, and was recognised in the financial
statements for the nine months ended 30 September 2016.
CHANGES TO THE BOARD OF DIRECTORS
Mr Andries de Lange was appointed alternate director to Mr Desmond de Beer, independent non-executive Director of NEPI,
effective from 9 August 2016. After qualifying as a Chartered Accountant, Mr de Lange joined the Industrial Development
Corporation of South Africa and then Nedbank, where he gained experience in debt finance, debt and equity restructurings
and private equity. He joined Resilient REIT Limited (a South African real estate company listed on the JSE) in 2004 and
is currently its Chief Operating Officer.
CASH MANAGEMENT AND DEBT
As at 30 September 2016, the Group had EUR105 million in cash, EUR20 million in listed property securities and an additional
undrawn revolving facility of EUR80 million. NEPI's gearing ratio including joint ventures (interest bearing debt less cash
divided by investment property and listed property shares) reached 21.3%, compared to 14.6% at the end of 2015.
As at 30 September 2016, fixed-coupon bonds represent 69% of debt outstanding, and out of the remaining debt,
34% of the base interest rate (Euribor) was hedged with interest rate caps and 66% with interest rate swaps.
The average interest rate, including hedging costs, was 3.7% during the first nine months of 2016.
SUBSEQUENT EVENTS
Acquisition of Arena Centar (Croatia, 4 November 2016)
In November 2016, NEPI has acquired the largest shopping mall in Zagreb, Arena Centar, with 62,100m2 of GLA. Zagreb is the
capital and the largest city of Croatia, with 790,000 inhabitants. There are 1.4 million residents within a 45-minute drive.
The centre is 94.5% let and features the most comprehensive retail offering in the city, including brands such as Adidas,
Armani Exchange, Bata, Benetton, Bershka, C&A, Champion, Converse, Cropp Deichmann, Desigual, Ecco, Guess, H&M, House,
Intersport, Levi's, Massimo Dutti, Mango, Mohito, Napapijri, New Yorker, Nike, Nine West, Office Shoes, Orsay, Pepe Jeans,
Pull&Bear, Reebok, Replay, Reserved, S. Oliver, Sport Vision, Springfield, Stradivarius, Tally Weijl, Takko, Terranova,
Timberland, Tom Tailor, Tommy Hilfiger, US Polo Assn., Zara and Zara Home. Other tenants include an Interspar
hypermarket, a ten-screen CineStar multiplex (with an IMAX hall), several international fast food brands, including
Burger King, KFC and McDonalds, and various other international and national tenants such as Apple, dm, Elipso,
Hewlett Packard, JYSK, Kiehl's, L'Occitane, Lego, Nivea, Pandora, Samsonite, Samsung, Sony, Swarovski and
Yves Rocher.
Other subsequent events
The Group's revolving facility was increased to EUR130 million and extended by two years in October 2016. The term loan for
Aupark Zilina was extended until December 2022 and increased to EUR65 million in November 2016.
The Company delisted from the Alternative Investment Market (AIM) of the London Stock Exchange in October 2016.
PROSPECTS AND EARNINGS GUIDANCE
Distributable earnings per share for 2016 are projected to be approximately 15% higher compared to the
recurring distributable earnings for 2015, in line with previously issued guidance. 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. Furthermore, the Board projects that approximately 15%
growth in distributable earnings per share for 2017 is achievable based on the following assumptions: a) no further equity is
raised and an LTV level of approximately 30% is reached in completing controlled developments as planned; b) any potential
corporate-level transaction is ignored; and c) a stable macroeconomic environment prevails and no major corporate failures occur.
These forecasts have not been audited or reviewed by NEPI�s auditors and are the responsibility of the Board.
By order of the Board of Directors,
Alexandru Morar Mirela Covasa
Chief Executive Officer Finance Director
14 November 2016
CONSOLIDATED STATEMENT OF Unaudited Audited Unaudited
COMPREHENSIVE INCOME Nine months ended Twelve months ended Nine months ended
30 Sep 2016 31 Dec 2015 30 Sep 2015
Net rental and related income 103 691 104 067 73 339
Contractual rental income and expense recoveries 148 799 148 799 104 993
Property operating expenses (45 108) (44 732) (31 654)
Administrative expenses (6 419) (6 695) (3 499)
EBITDA* 97 272 97 372 69 840
Acquisition fees (2 261) (933) (743)
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 1 014 - -
Dividends received from financial investments 738 - -
Net result on sale of financial investments (630) - -
Share-based payment expense - (670) (670)
Foreign exchange gain/(loss) 367 (339) 53
Loss on disposal of investment property held for sale (285) - -
Profit before net finance (expense)/income 112 054 177 172 145 647
Net finance (expense)/income (9 225) (916) 2 150
Finance income 3 981 7 613 6 057
Finance expense (13 206) (8 529) (3 907)
Changes in fair value of financial instruments (551) 1 149 1 061
Share of profit/(loss) of joint ventures 3 014 2 399 (3 414)
Profit before tax 105 292 179 804 145 444
Current tax expense (994) - -
Deferred tax expense (11 576) (13 979) (16 531)
Profit after tax 92 722 165 825 128 913
Total comprehensive income for the year 92 722 165 825 128 913
Non-controlling interest 2 316 (7 427) (9 449)
Profit for the period attributable to equity holders 95 038 158 398 119 464
Weighted average number of shares in issue 305 842 478 284 461 222 279 252 882
Diluted weighted average number of shares in issue 305 862 643 285 813 260 281 047 360
Basic earnings per share (euro cents) 31.07 55.68 42.78
Diluted earnings per share (euro cents) 31.07 55.42 42.51
*EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) represents the Group's
operating profit, defined as Net rental and related income less Administrative expenses.
All amounts in EUR '000 unless otherwise stated
CONSOLIDATED STATEMENT OF Unaudited Audited Unaudited
FINANCIAL POSITION 30 Sep 2016 31 Dec 2015 30 Sep 2015
ASSETS
Non-current assets 2 225 542 1 829 440 1 764 821
Investment property 2 114 951 1 732 760 1 663 399
Investment property at fair value 1 920 927 1 576 019 1 497 501
Investment property under development 175 152 156 741 165 898
Advances for investment property 18 872 - -
Goodwill 41 031 23 986 25 240
Investments in joint ventures 18 654 15 640 9 826
Long-term loans granted to joint ventures 33 583 36 674 34 612
Other long-term assets 16 926 18 098 31 630
Financial assets at fair value through profit or loss 397 2 282 114
Current assets 165 277 381 097 120 167
Trade and other receivables 43 277 54 487 56 440
Financial investments at fair value through profit or loss 20 088 - -
Cash and cash equivalents 101 912 326 610 63 727
Investment property held for sale 21 192 25 255 27 143
Total assets 2 412 011 2 235 792 1 912 131
EQUITY AND LIABILITIES
Total equity attributable to equity holders 1 675 082 1 496 550 1 329 813
Share capital 3 188 2 986 2 837
Share premium 1 368 182 1 213 325 1 083 693
Share-based payment reserve 4 797 4 797 4 797
Currency translation reserve (1 229) (1 229) (1 229)
Accumulated profit 300 144 275 042 236 064
Non-controlling interest - 1 629 3 651
Total liabilities 736 929 739 242 582 318
Non-current liabilities 624 065 661 717 346 785
Bank borrowings 95 012 162 788 239 502
Bonds 394 527 392 140 -
Deferred tax liabilities 118 747 89 652 90 143
Other long-term liabilities 14 964 14 988 14 675
Financial liabilities at fair value through profit or loss 815 2 149 2 465
Current liabilities 112 864 77 525 235 533
Trade and other payables 55 538 62 827 57 176
Bank borrowings 50 087 13 424 178 357
Bonds 7 239 1 274 -
Total equity and liabilities 2 412 011 2 235 792 1 912 131
CONSOLIDATED STATEMENT Share-
OF CHANGES IN EQUITY based Currency Non-
Share Share payment translation Accumulated controlling
capital premium reserve reserve profit interest Total
Balance at 1 January 2015 2 746 1 074 310 4 127 (1 299) 167 133 (5 798) 1 241 289
Transactions with owners 240 139 015 670 - (50 489) - 89 436
- Issue of shares 205 129 767 - - - - 129 972
- Sale of shares issued under 35 9 248 - - - - 9 283
the Initial Share Scheme
- Vesting of shares issued under - - 670 - - - 670
the Initial Share Scheme
- Earnings distribution - - - - (50 489) - (50 489)
Total comprehensive income - - - - 158 398 7 427 165 825
- Profit for the period - - - - 158 398 7 427 165 825
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 202 154 857 - - (69 936) 688 85 811
- Issue of shares 202 154 829 - - - - 155 031
- Sale of shares issued under - 28 - - - - 28
the Initial Share Scheme
- Earnings distribution - - - - (48 287) - (48 287)
- Acquisition of non- - - - - (21 649) 688 (20 961)
controlling interest
Total comprehensive income - - - - 95 038 (2 317) 92 721
- Profit for the period - - - - 95 038 (2 317) 92 721
Balance at 30 September 2016 3 188 1 368 182 4 797 (1 229) 300 144 - 1 675 082
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited Audited Unaudited
30 Sep 2016 31 Dec 2015 30 Sep 2015
Profit after tax 92 722 165 825 128 913
Adjustments 5 303 (66 987) (63 230)
Changes in working capital (4 028) 1 378 17 766
Cash flows from operating activities 93 997 100 216 83 449
Proceeds from issue of shares 155 059 139 255 9 474
Earnings distribution (48 287) (50 489) (50 533)
Net movements in bank loans and bonds borrowings (30 020) 297 522 141 638
Other payments (20 961) (2 395) -
Cash flows from financing activities 55 791 383 893 100 579
Investments in acquisitions and developments (355 525) (265 735) (228 537)
Net cash flow used in investments in financial assets (18 961) - -
Cash flows used in investing activities (374 486) (265 735) (228 537)
Net (decrease)/increase in cash and cash equivalents (224 698) 218 374 (44 509)
Cash and cash equivalents brought forward 326 610 108 236 108 236
Cash and cash equivalents carried forward 101 912 326 610 63 727
RECONCILIATION OF NET ASSET VALUE TO Unaudited Audited Unaudited
ADJUSTED NET ASSET VALUE 30 Sep 2016 31 Dec 2015 30 Sep 2015
Net Asset Value per the Statement of financial position 1 675 082 1 496 550 1 329 813
Loans in respect of the Initial Share Scheme 36 64 145
Deferred tax liabilities for controlled subsidiaries 118 747 89 652 90 143
Goodwill (41 031) (23 986) (25 240)
Deferred tax liabilities for joint ventures 5 301 3 919 3 037
Adjusted Net Asset Value 1 758 135 1 566 199 1 397 898
Net Asset Value per share (euro) 5.25 5.01 4.69
Adjusted Net Asset Value per share (euro) 5.51 5.25 4.93
Number of shares for Net Asset Value per share purposes 318 829 185 298 565 564 283 719 502
Number of shares for adjusted Net Asset Value per share purposes 318 843 185 298 590 564 283 775 750
BUSINESS COMBINATIONS Shopping Forum Usti Korzo Shopping
City Sibiu Nad Labem Centrum TOTAL
Investment property 100 000 82 600 29 500 212 100
Current assets 2 950 4 546 1 482 8 978
Current liabilities (5 495) (3 371) (1 521) (10 387)
Deferred tax liabilities (9 850) (5 646) (2 021) (17 517)
Total identifiable net assets at fair value 87 605 78 129 27 440 193 174
Goodwill arising on acquisition 9 850 5 646 2 021 17 517
Total consideration payable 97 455 83 775 29 461 210 691
Amounts retained from sellers (1 000) - - (1 000)
Total consideration paid in cash 96 455 83 775 29 461 209 691
KEY PERFORMANCE INDICATORS 30 Sep 2016 31 Dec 2015 30 Sep 2015
Current liquidity ratio* 2.17 5.95 0.78
Gearing ratio** 20.8% 14.0% 21.3%
Tenant's receivable turnover 27 days 27 days 25 days
Return on investment property 7.2 p.a. 6.6 p.a. 7.1 p.a.
* Current liquidity ratio=(Current assets + Unused Revolving Facilities)/ Current liabilities
** Gearing ratio=(Loans and borrowings-Cash and cash equivalents)/(Investment property+Financial investments at fair value through profit
or loss)
All amounts in EUR '000 unless otherwise stated
RECONCILIATION OF PROFIT FOR THE PERIOD Nine months Twelve months Nine months
TO DISTRIBUTABLE EARNINGS ended ended ended
30 Sep 2016 31 Dec 2015 30 Sep 2015
Profit for the period attributable to equity holders 95 038 158 398 119 464
Reverse indirect result (4 323) (69 889) (57 232)
Unrealised foreign exchange (gain)/ loss (400) 344 (74)
Acquisition fees 2 261 933 743
Share-based payment expense - 670 670
Fair value adjustments of investment property
(15 839) (81 742) (77 167)
for controlled subsidiaries
Loss on disposal of investment property 285 - -
Fair value gains of financial investments (1 014) - -
Fair value adjustment of financial assets and
551 (1 149) (1 061)
liabilities for controlled subsidiaries
Deferred tax expense for controlled subsidiaries 11 576 13 979 16 531
Net result on sale of financial investments 630 - -
Adjustments related to joint ventures
Fair value adjustments of investment
(4 369) (8 204) (1 252)
property for joint ventures
Fair value adjustment of financial assets
613 (249) (269)
and liabilities for joint ventures
Deferred tax expense for joint ventures 1 383 5 529 4 647
Company specific adjustments (1 049) 12 096 13 983
Amortisation of financial assets (3 453) (3 554) (1 874)
Realised foreign exchange loss 37 4 (57)
Dividends received from financial investments (738) - -
Accrued interest on share-based payments - 89 103
Accrued dividend for financial investments 1 043 - -
Fair value adjustment of Investment property for
2 514 18 598 19 353
non-controlling interest
Deferred tax expense for non-controlling interest (452) (3 041) (3 542)
Antecedent dividend 3 706 1 954 500
Distributable earnings for the period 93 372 102 559 76 715
Less: distribution declared (56 553) (102 559) (51 304)
Antecedent dividend for H1 2016 (3 013) - -
Interim distribution (59 566) (51 304) (51 304)
Final distribution - (51 255) -
Earnings not distributed 33 806 - 25 411
Number of shares entitled to distribution 318 843 185 298 590 564 283 775 750
Distributable earnings per share for the period (euro cents) 29.28 35.34 27.03
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) 10.60 - 8.86
LEASE EXPIRY PROFILE more than
or equal
2016 2017 2018 2019 2020 2021 2022 2023 2024 to 2025 Total
Total based on rental income 0.8% 6.6% 12.0% 14.0% 17.2% 16.8% 9.8% 3.5% 3.9% 15.4% 100%
Total based on rented area 0.2% 3.7% 11.2% 13.9% 14.3% 15.0% 10.1% 5.7% 4.9% 21.0% 100%
SEGMENTAL ANALYSIS Retail Office Industrial Corporate Total
30 September 2016 (unaudited)
Contractual rental income and expense recoveries 124 790 22 369 1 640 - 148 799
Profit before net finance expense 101 704 10 425 1 267 (1 342) 112 054
Total Assets 1 888 969 376 106 16 916 130 020 2 412 011
Total Liabilities 281 769 50 034 2 485 402 641 736 929
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 September 2015 (unaudited)
Contractual rental income and expense recoveries 83 464 19 981 1 548 - 104 993
Profit before net finance expense 135 616 12 457 992 (3 418) 145 647
Total Assets 1 401 847 249 715 12 324 248 245 1 912 131
Total Liabilities 294 565 112 387 2 349 173 017 582 318
RECONCILIATION OF PROFIT FOR THE PERIOD TO HEADLINE EARNINGS Unaudited Audited Unaudited
30 Sep 2016 31 Dec 2015 30 Sep 2015
Profit for the period attributable to equity holders 95 038 158 398 119 464
Fair value adjustments of investment property (15 839) (81 742) (77 167)
Loss on sale of investment property held for sale 285 - -
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 78 779 84 097 53 823
Weighted average number of shares in issue 305 842 478 284 461 222 279 252 882
Diluted weighted average number of shares in issue 305 862 643 285 813 260 281 047 360
Headline earnings per share (euro cents) 25.76 29.56 19.27
Diluted headline earnings per share (euro cents) 25.76 29.42 19.15
Outstanding Available for
DEBT REPAYMENT PROFILE Type Secured/Unsecured Ownership amount drawdown 2016 2017 2018 2019 2020 2021
and beyond
Aupark Kosice Mall & Tower Term loan Secured 100% 100 855 - 1 382 5 526 5 526 5 526 82 895 -
Aupark Zilina Term loan Secured 100% 44 399 - 540 43 859** - - - -
Ploiesti Shopping City Term loan Secured 50% 15 512 - 273 1 095 1 095 1 095 1 095 10 859
The Office Term loan Secured 50% 16 684 - 158 950 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 577 450 100 000 2 353 51 430 7 671 7 671 85 040 423 285
The reference base rate for loans (1 month EURIBOR, 3 month 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.
*The facility was extended until December 2018 and increased to EUR130 million in October 2016.
**The loan was extended until December 2022 and increased to EUR65 million in November 2016.
BASIS OF PREPARATION
These unaudited condensed consolidated financial results for the nine months ended 30 September 2016 have been prepared in accordance with 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.
For further information please contact: New Europe Property Investments Plc, Mirela Covasa: +40 21 232 1398
JSE sponsor: Java Capital: +27 11 722 3050 BVB advisor: SSIF Intercapital Invest SA, Razvan Pasol: +40 21 222 8731
www.nepinvest.com
Date: 14/11/2016 01:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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