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MAS REAL ESTATE INC - Condensed Consolidated Interim Financial Statements for the six-month period ended 31 December 2016

Release Date: 27/02/2017 09:00
Code(s): MSP     PDF:  
Wrap Text
Condensed Consolidated Interim Financial Statements for the six-month period ended 31 December 2016

MAS REAL ESTATE INC
Registered in British Virgin Islands
Registration number 1750199
Registered as an external company in the Republic of South Africa
Registration number 2010/000338/10
ISIN: VGG5884M1041
SEDOL (XLUX): B96VLJ5
SEDOL (JSE): B96TSD2
JSE share code: MSP
("MAS" or "the company")

Condensed Consolidated Interim Financial Statements for the six-month period ended 31 December 2016

Directors' report
Highlights
-    Distribution per share 19,3% higher than in the previous period
-    Passing rent increased by 60% since 30 June 2016
-    Investment property portfolio grown by 50% since 30 June 2016
-    Acquired Nova Park mall with partners Prime Kapital
-    EUR80,43 million of debt drawn down
-    ZAR 500 million of new equity raised

DISTRIBUTABLE EARNINGS
The group achieved distributable earnings of 2,27 euro cents per share for the six-months ended 31 December 2016,
compared to distributable earnings of 0,79 euro cents per share for the six-months ended 31 December 2015. The
improvement in recurring distributable earnings per share was driven by the accretive acquisitions of investment property in
Poland and Germany and the completion of the Adagio aparthotel at New Waverley in Scotland.

DISTRIBUTION
The board of directors has proposed a distribution of 2,66 euro cents per share in respect of the six-months ended 31
December 2016, which includes an amount of EUR1,49 million of reserves. This distribution represents an increase of 19,3%
over the 2,23 euro cents per share distribution declared in relation to the six-months to 30 June 2016. Shareholders continue
to have the option to receive the distribution in cash or as a return of capital by way of an issue of new shares. Further
details regarding the distribution will follow in due course.

The board will consider distributing retained earnings during forthcoming financial periods as the group pursues various
highly accretive property developments. Once completed, these developments are expected to have a significant positive
impact on per share distributions. Given the strength of the acquisition and development pipeline, discussed in more detail
below, in combination with the previously announced planned re-deployment of the balance sheet, the board is of the view
that the group is well placed to achieve its targeted annual growth in distribution per share of 30% per annum over a three
year period.

ACQUISITION AND DEVELOPMENT UPDATE
The income-generating property portfolio has grown by 67,5% from EUR242,63 million to EUR406,44 million in the six-months
ended 31 December 2016, with the acquisition of the Nova Park mall in Poland, the Edeka MIHA food retail portfolio and
the Munich logistics property in Germany, as well as the completion of the Adagio hotel at New Waverley, in Edinburgh, UK.

Nova Park
Nova Park is a dominant regional mall situated in Gorzów, Poland, with a catchment area of 460 000 people within 60
minutes drive. Gorzów is located in the wealthier western region of Poland, 150 km from Berlin and 50 km from the
German border. The property has an occupancy rate of 95,3% and anchor tenants include Bershka, C&A, CCC, Cropp
Town, Deichmann, H&M, House, Intersport, Media Expert, Mojito, New Yorker, Piotr I Pawel, Pull&Bear, Reserved,
Reserved Kids, Smyk and Stradivarius. An extension of approximately 6 800 square metres will further enhance the footfall
to this shopping centre, which already dominates its local competitors, and will add further to net operating income over
time through turnover linked leases.

Edeka MIHA food retail portfolio
The Edeka portfolio, which comprises 20 supermarkets in north-east Germany, provides particularly strong income returns
that underpin the low cost debt financing, resulting in attractive income returns on equity invested.

Munich logistics centre
The recently acquired Munich property, currently let to Volkswagen AG, has an initial acquisition yield of 7%, but is also
an exciting redevelopment opportunity. MAS is already in pre-lease negotiations with various tenants and in planning
discussions with the local municipality.

PIPELINE
The group made significant progress in expanding its acquisition and development pipeline during the interim period. As of
31 December 2016 the group had secured several additional earnings enhancing acquisitions and a number of attractive new
development opportunities.

Pipeline - Western Europe

New Waverley Phase II
Phase I of the New Waverley development delivered three hotels and twenty two new retail units. Phase II is now set to deliver 
a significant mix of new office, retail and residential uses. The group has been chosen as development partner to deliver 
approximately 19 000 sq m of Grade A office space on a pre-let to a significant tenant, and is now in the process of finalising 
detailed design and leasing agreements. The tenant will have an option to occupy an additional (up to) 3 000 sq m of further 
office space which would be delivered adjacent to the first proposed office building.

Pre-letting discussions with occupiers for the balance of the site are also underway. Attractive development and investment 
funding is being negotiated to fund the delivery of this next phase of development. Construction is set to begin in March 2017 
for completion in mid 2019.

Pipeline - Central and Eastern Europe

Accretive acquisition opportunities with value-add potential and high quality development opportunities are being
pursued in Central and Eastern Europe (CEE) in partnership with experienced developers Prime Kapital. This should
deliver significant growth in MAS' distributable earnings per share in the current and future financial periods.

Strong progress has been made since the end of the reporting period. The group has secured a further large acquisition in
excess of EUR50 million, with significant value-add potential. In addition, significant further progress has also been made in
securing a development pipeline in excess of EUR370 million at cost, with substantial further opportunities being
explored. The CEE development pipeline includes the opportunities discussed below in more detail, all of which have been
concluded within the Prime Kapital development joint venture.

Emonika mixed use retail, office and hotel development
In January 2017 the Prime Kapital development JV concluded an agreement to acquire a 97% interest in Emonika, a large-
scale development project for the construction of commercial and public logistic assets in a public-private partnership with
the Slovenian Railways and the Republic of Slovenia, in the heart of the country's capital Ljubljana. The project entails the
development of a 59 000 square metre gross lettable area ("GLA") mall and 21 000 square metre GLA of A-grade
offices and a hotel in addition to the development of public logistic infrastructure. This includes the re-development of the
city's central train station and the development of a new central bus station.

Emonika benefits from a prominent and highly visible central location, surrounded by dense residential and office
elements. The site is well served by public transport and lies on the main traffic routes that connect the city centre with
the main regional road and rail network. The catchment area is estimated to include a population of approximately 
305 000 and 560 000, respectively, within 15 and 30-minute drives.

Slovenia benefits from significantly higher per capita purchasing power than other CEE countries and yet Ljubljana lacks
a large modern and centrally located mall. Feedback from potential anchor tenants has been particularly encouraging.
Significant progress has been made in the re-design of the retail and railway sections, the last in conjunction with
Slovenian Railways. Given that the project benefits from an approved master plan, construction should commence in early
2018.

Balotesti retail value centre
During 2016 the development JV secured a development site of approximately 4,1 hectares in Balotesti, Romania, with a
view to developing a value centre. Since then, given the extraordinarily high demand from retailers, an additional
neighbouring plot of approximately 3,8 hectares has been secured with the intention of developing a larger retail value
centre.

Balotesti, a rapidly developing affluent residential area, is approximately 25km north of Bucharest. Conveniently situated
on the DN1, a major motorway connecting the northern lakeside residential areas with Bucharest, the land plots are
adjacent to Bucharest's most successful DIY outlet, Hornbach Balotesti, and the development site for
a new Lidl supermarket. Catchment analysis indicates a population of 85 000 and 137 000, respectively, within 15 and 30-
minute drives. The planned development will be integrated with Hornbach and the new planned Lidl on the adjacent sites,
extending the combined 18 122 square meters GLA of these two operators by an additional 28 000 square metres
of GLA in the first phase. This is planned to be open by October 2018 with a substantial further extension to be developed
at a later stage. Tenant negotiations are progressing well and include discussions with two international hypermarket
groups, as well as various international fashion and other discounters.

Ploiesti retail value centre
In February 2017 the development JV secured approximately 9,5 hectares of land in Ploiesti, Romania, with
the intention of developing and operating a 25 600 square metre GLA retail value centre with a high concentration of
anchor tenants. Ploiesti, with 210 000 inhabitants and the capital of Prahova county, is placed centrally in the larger urban
agglomeration emerging north of Bucharest that is home to a population of approximately 750 000. The city is an
important industrial centre hosting major production facilities for leading international oil, chemical and automotive
players as well as an important distribution hub for the wider area. The scheme will be integrated with
the existing Kaufland mini-hypermarket located next to the project site, as well as with the Lidl supermarket to be
developed on an adjacent site. The planned development is located in a densely populated residential area in
close proximity to the city's main train station, tram station and bus station with high visibility and very good road
access. The property benefits from a catchment of 96 000 residents within walking distance and 565 000 residents within a
30-minute drive. Major anchor tenants have already expressed a strong interest in the project and consideration is being
given to expanding the planned scheme.

Kaufland value extensions
Five land plots have been secured in various smaller cities across Romania with the intention of developing approximately
20 000 square metres of GLA of convenience value extensions to be integrated with the existing Kaufland mini-
hypermarkets. Kaufland is a German discount mini-hypermarket and supermarket chain that operates in excess of 1 000
stores in Germany and several Central and Eastern European countries. It has become the leading food retailer in
Romania, with more than 100 well located owned and operated stores generating over EUR2.2 billion in annual sales.
Approximately 70% of the planned extensions have been pre-leased to tenants including Deichmann, Jysk, Noriel and
Pepco. The first three of these developments are expected to complete in 2017, with the balance soon thereafter.

CASH MANAGEMENT AND DEBT
During the interim period the group raised ZAR500 million via the issue of new ordinary shares in an over-subscribed
private placing and ended the period with EUR20,80 million in cash (excluding the cash held in the Prime Kapital development
JV). In addition, the group had EUR121,74 million of third-party debt finance in place as at 31 December 2016, having drawn-
down EUR80,43 million of third-party debt during the period. This leaves the portfolio loan to value at 25,1% at 31 December
2016.

In the six months ahead, a further EUR96,45 million of secured debt is expected to be drawn-down against the Edeka MIHA
portfolio, Nova Park, Adagio and Lehrte property. The weighted average cost of this debt amounts to 1,9% per annum.

PROSPECTS

Given the secured development pipeline and further potential developments being pursued, the board is confident that the
group is well placed to achieve recurring distributable earnings per share in close proximation to its targeted growth in
distribution per share of 30% per annum for the current and following two years. Guidance for the final distribution in the
current financial year is 3,19 euro cents per share, on the assumption that a stable macro-economic environment will prevail,
that no major corporate failures will occur and that the investments and developments reported on above will progress in
accordance with expectations. Budgeted rental income is based on contractual escalations and market related renewals. This
forecast has not been audited or reviewed by our auditors.

MAS will continue to pursue profitable growth through further acquisition and development opportunities in its markets.
Further announcements will be made as appropriate.

By order of the board of directors

Directors:
Ron Spencer (Non-Executive Chairman)
Lukas Nakos (Chief Executive Officer)
Malcolm Levy (Chief Financial Officer)
Jonathan Knight (Chief Investment Officer)
Gideon Oosthuizen (Non-Executive Director)
Jaco Jansen (Non-Executive Director)
Morne Wilken (Non-Executive Director)
Pierre Goosen (Non-Executive Director)

There were no changes to the board during the six-month period ended 31 December 2016.

MANAGEMENT ACCOUNTS
The figures referred to above have been extracted from the management accounts that can be found in appendix 1 of these condensed
consolidated interim financial statements.

REPORTING CURRENCY
The company's results are reported in euros.

LISTINGS
MAS holds a dual primary listing on the Main Board of the Johannesburg Stock Exchange and the Euro MTF market of the Luxembourg
Stock Exchange.

HIGHLIGHTS

PORTFOLIO
-   Acquired Edeka MIHA portfolio 2 and Munich contributing additional passing rent of EUR3,86 million and EUR0,89 million
    respectively
-   Increased passing rent by 60% since year end to EUR27,74 million
-   Group WALT increased to 11.08 years
-   Sold shareholding in Sirius and reinvested in investment property portfolio
-   Acquired Nova Park contributing with net passing rent of EUR4,42 million

FUNDING
-   Daily median share volume increased by 63% since year end
-   Raised EUR31,59million in over-subscribed placement of shares
-   Group weighted average cost of debt 2,43%
-   Drawn down EUR 80,43 million of dept

TEAM
-   Established investment joint venture with Prime Kapital
-   Progressed implementation of Voyager, a property management and accounting package
-   Increased staff numbers
-   Leveraged experience from Prime Kapital relationship

RELATIONSHIPS
-   Shortlisted for RICS award for regeneration project of the year for New Waverley
-   Established relationships with more debt lenders
-   Established relationships with new tenants
-   Continued to develop existing tenant relationships

SUSTAINABILITY
-   Support for Ikhaya Le Themba
-   5,537 Incandescent lamps switched to LEDs
-   Construction of Adagio completed, conserving the listed frontage on the Royal Mile

KEY METRICS

Distribution per share
                                          H1 Distribution per      H2 Distribution per
                                                        share                    share
                                                 (Euro cents)             (Euro cents)
2014                                                     0.60                     1.24
2015                                                     1.15                     2.20
2016                                                     2.27                     2.23
2017                                                     2.66                     3.19

Investment property
                                                                   Investment property
                                                                       (Euro millions)
2014                                                                                65
2015                                                                               249
2016                                                                               312
H1 2017                                                                            466

Daily Median share volume
                                                                   Median daily volume
                                                                 (per thousand shares)
2014                                                                                 1
2015                                                                                41
2016                                                                                76
H1 2017                                                                            124

Total assets
                                                                          Total assets
                                                                       (Euro millions)
2014                                                                               310
2015                                                                               411
2016                                                                               468
H1 2017                                                                            569


Adjusted NAV per share
                                                                Adjusted NAV per share
                                                                          (Euro cents)
2014                                                                             103.8
2015                                                                             121.2
2016                                                                             115.1
H1 2017                                                                          112.7

Loan to value
                                                                         Loan to value
                                                                                   (%)
2014                                                                              16.0
2015                                                                               4.8
2016                                                                              12.3
H1 2017                                                                           25.1

Review report by KPMG Audit LLC to MAS Real Estate Inc.

We have been engaged by MAS Real Estate Inc. (the "company"), its subsidiaries and its associate (collectively the
"group") to review the condensed set of consolidated financial statements for the interim report for the six-months ended
31 December 2016 which comprise the condensed consolidated statement of profit or loss, the condensed consolidated
statement of other comprehensive income, the condensed consolidated statement of financial position, the condensed
consolidated statement of changes in equity, the condensed consolidated statement of cash flows and the related notes.

This report is made solely to the company in accordance with the terms of our engagement. Our review has been
undertaken so that we might state to the company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The interim report is the responsibility of, and has been approved by, the directors. The directors are responsible for
preparing the interim report in accordance with International Financial Reporting Standard IAS 34 Interim Financial
Reporting and the Johannesburg Stock Exchange ("JSE") Listings Requirements. The annual financial statements of the
group are prepared in accordance with IFRS. The condensed set of financial statements included in this interim report have
been prepared in accordance with IAS 34 Interim Financial Reporting.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of consolidated financial statements in
the interim report based on our review.

Scope of review

We have conducted our review in accordance with International Standard on Review Engagements 2410 Review of
Interim Financial Information Performed by the Independent Auditor of the Entity issued by the International Auditing
and Assurance Standards Board. A review of interim financial information consists of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with applicable law and International
Standards on Auditing (International) and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do not express 
an audit opinion.

Opinion on the financial statements

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated
financial statements in the interim report for the six-months ended 31 December 2016 is not prepared, in all material
respects, in accordance with IAS 34 Interim Financial Reporting.

KPMG Audit LLC
Chartered Accountants
Heritage Court
41 Athol Street
Douglas
Isle of Man IM99 1HN
24 February 2017

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

                                                                              Six-month       Six-month        Audited
                                                                           period ended    period ended     Year ended
                                                                            31 December     31 December        30 June
Euro                                                               Note            2016            2015           2016
          
Rental income                                                        4       11 067 791       6 586 450     14 203 699
Service charges and other recoveries                                          1 541 342         841 651      2 047 322
Revenue                                                                      12 609 133       7 428 101     16 251 021
Service charges and other property operating expenses                       (2 421 484)     (1 783 557)    (4 036 748)
Net rental income                                                            10 187 649       5 644 544     12 214 273
Other income                                                                          -               -      2 355 381
Corporate expenses                                                          (1 885 474)     (2 992 634)    (3 188 770)
Investment expenses                                                           (186 519)               -    (2 159 964)
Net operating income                                                          8 115 656       2 651 910      9 220 920
Fair value adjustments                                               5      (3 265 620)       2 378 038      6 431 719
Exchange differences                                                        (2 908 077)     (3 053 676)   (12 913 210)
Share of profit/(loss) from equity accounted investee, net of tax   10           36 154               -       (31 908)
Profit before finance income/costs                                            1 978 113       1 976 272      2 707 521
Finance income                                                                   39 527         318 713        392 801
Finance costs                                                                 (841 656)       (303 529)      (773 765)
Profit before taxation                                                        1 175 984       1 991 456      2 326 557
Taxation                                                             6        (500 958)       (644 799)      (828 525)
Profit for period/year                                                          675 026       1 346 657      1 498 032
Attributable to:    
Owners of the group                                                           (397 549)       1 346 657      1 498 032
Non-controlling interest                                             8        1 072 575               -              -
Basic and diluted earnings per share (euro cents)                   17           (0,11)            0,46           0,49

The notes below form part of these condensed consolidated interim financial statements

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

                                                                              Six-month       Six-month        Audited
                                                                           period ended    period ended     Year ended
                                                                            31 December     31 December        30 June
Euro                                                                               2016            2015           2016
Profit for period/year                                                          675 026       1 346 657      1 498 032
Other comprehensive income  
Items that are or may be reclassified subsequently  
to profit or loss  
Foreign operations - foreign currency translation                           (2 765 558)     (2 901 167)   (12 387 307)
differences  
Total comprehensive loss for the period/year                                (2 090 532)     (1 554 510)   (10 889 275)
Attributable to:  
Owners of the group                                                         (3 163 107)     (1 554 510)   (10 889 275)
Non-controlling interest                                                      1 072 575               -              -                 
Total comprehensive loss for the period/year                                (2 090 532)     (1 554 510)   (10 889 275)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                                 Restated*       Audited        Audited
                                                                    As at            As at         As at          As at
                                                              31 December      31 December       30 June        30 June
Euro                                                Note             2016             2015          2016           2015
Non-current assets
Intangible assets                                      7       24 499 280       28 449 119    25 262 818     29 351 139
Investment property                                    8      473 690 010      273 819 368   306 996 079    248 538 806
Financial investments                                  9                -       15 910 475             -     12 346 864
Investment in equity accounted investee               10       20 057 968                -    19 991 716              -
Property, plant and equipment                                     230 277          176 846       241 083         15 136
Deferred taxation asset                                6        1 047 599          908 482       721 292        737 015
Total non-current assets                                      519 525 134      319 264 290   353 212 988    290 988 960
Current assets
Financial investments                                  9                -       34 322 404    51 614 068     69 826 873
Short term loans receivable                                             -       19 056 917             -              -
Trade and other receivables                           11       27 378 402        5 118 880    11 264 083      4 527 803
Cash and cash equivalents                                      20 794 725       31 997 044    47 997 978     45 111 775
Assets held for sale                                            3 393 501        2 043 750     3 515 237              -
Total current assets                                           51 566 628       92 538 995   114 391 366    119 466 451

Total assets                                                  571 091 762      411 803 285   467 604 354    410 455 411

Equity
Share capital                                         12      410 113 075      308 913 797   378 530 556    305 671 992
Retained earnings                                              26 753 444       35 197 243    27 503 007     40 269 910
Foreign currency translation reserve                          (7 954 169)        4 297 529   (5 188 611)      7 198 696
Equity attributable to owners of the group                    428 912 350      348 408 569   400 844 952    353 140 598
Non-controlling interest                               8        1 072 595                -             -              -
Total equity                                                  429 984 945      348 408 569   400 844 952    353 140 598

Non-current liabilities
Interest bearing borrowings                           14      117 948 266       14 219 630    43 227 831     14 779 769
Financial instruments                                 13        6 187 015        6 413 512     5 396 943      6 545 482
Provisions                                                         40 410                -             -              -
Deferred taxation liability                            6        1 652 903        1 430 625     1 242 741      1 143 646
Total non-current liabilities                                 125 828 594       22 063 767    49 867 515     22 468 897
Current liabilities
Interest bearing borrowings                           14        3 796 331          751 848     1 350 764        968 120
Financial instruments                                 13        1 344 932       35 271 134     7 146 090     29 082 436
Trade and other payables                              15       10 059 974        5 215 677     8 296 197      4 795 360
Provisions                                                         76 986           92 290        98 836              -
Total current liabilities                                      15 278 223       41 330 949    16 891 887     34 845 916
Total liabilities                                             141 106 817       63 394 716    66 759 402     57 314 813

Total shareholder equity and liabilities                      571 091 762      411 803 285   467 604 354    410 455 411
Actual number of ordinary shares in issue                     380 583 836      294 455 630   348 625 219    291 787 889
Net asset value per share (euro cents)                              112,7            118,3         115,0          121,0
Adjusted net asset value per share (euro cents)#                    112,9            118,5         115,1          121,2

*Restated as a result of reclassifications, no impact on NAV, see note 19.
# Net asset value per share as adjusted for deferred taxation

The notes below form part of these condensed consolidated interim financial statements.

These condensed consolidated interim financial statements were approved by the board of directors on 24 February
2017 and signed on their behalf by:

Ron Spencer                                                           Malcolm Levy
Chairman                                                              Chief financial officer

 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
                                                                           Share            Retained        Foreign currency   Equity attributable to     Non-controlling          Total
 Euro                                                       Note         capital            earnings     translation reserve      owners of the group            interest         equity
 Balance at 30 June 2015 (audited)                                   305 671 992          40 269 910               7 198 696              353 140 598                   -    353 140 598
 Comprehensive income for the period 
 Profit for the period                                                         -           1 346 657                       -                1 346 657                   -      1 346 657
 Other comprehensive income                                                    -                   -             (2 901 167)              (2 901 167)                   -    (2 901 167)
 Total comprehensive income for the period                                     -           1 346 657             (2 901 167)              (1 554 510)                   -    (1 554 510)
 Transactions with the owners of the group 
 Issue of shares                                             12        3 241 805                   -                      -                 3 241 805                   -      3 241 805
 Distributions                                                                 -         (6 419 324)                      -               (6 419 324)                   -    (6 419 324)
 Total transactions with the owners of the group                       3 241 805         (6 419 324)                      -               (3 177 519)                   -    (3 177 519)
 Balance at 31 December 2015                                         308 913 797          35 197 243              4 297 529               348 408 569                   -    348 408 569
 Comprehensive income for the period
 Profit for the period                                                         -             151 375                      -                   151 375                   -        151 375
 Other comprehensive income                                                    -                   -            (9 486 140)               (9 486 140)                   -    (9 486 140)
 Total comprehensive income for the period                                     -             151 375            (9 486 140)               (9 334 765)                   -    (9 334 765)
 Transactions with the owners of the group
 Issue of shares                                              12      69 616 759                   -                      -                69 616 759                   -     69 616 759
 Distributions                                                                 -         (7 845 611)                      -               (7 845 611)                   -    (7 845 611)
 Total transactions with the owners of the group                      69 616 759         (7 845 611)                      -                61 771 148                   -     61 771 148
 Balance at 30 June 2016 (audited)                                   378 530 556          27 503 007            (5 188 611)               400 844 952                   -    400 844 952
 Comprehensive income for the period
 Profit for the period                                                         -           (397 549)                      -                 (397 549)           1 072 575        675 026
 Other comprehensive income                                                    -                   -            (2 765 558)               (2 765 558)                   -    (2 765 558)
 Total comprehensive income for the period                                     -           (397 549)            (2 765 558)               (3 163 107)           1 072 575    (2 090 532)
 Transactions with the owners of the group and non-
 controlling interests
 Issue of shares                                              12      39 576 609                   -                      -                39 576 609                   -     39 576 609
 Distributions                                                       (7 994 090)           (352 014)                      -               (8 346 104)                   -    (8 346 104)
 Acquisition of subsidiary with non-controlling interests                      -                   -                      -                         -                  20             20
 Total transactions with the owners of the group and                  31 582 519           (352 014)                      -                31 230 505                  20     31 230 525
 non-controlling interests    
 Balance at 31 December 2016                                         410 113 075          26 753 444            (7 954 169)               428 912 350           1 072 595    429 984 945

The notes on below form part of these condensed consolidated interim financial statements.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


                                                                        Six-month        Six-month        Audited
                                                                     period ended     period ended     Year ended
                                                                      31 December      31 December        30 June
  Euro                                                                       2016             2015           2016
    
  Profit for the period/year                                              675 026        1 346 657      1 498 032
  Cash (used in)/generated from operating activities                  (6 144 396)        1 245 361      6 119 848
  
  Net cash (used in)/generated from operating activities              (6 335 337)          743 083      5 808 854
  Cash used in investing activities                                 (127 764 942)     (10 385 043)   (56 997 957)
  Cash generated from/(used in) financing activities                  108 235 974      (3 886 730)     58 824 462
  Net (decrease)/increase in cash and cash equivalents               (25 864 305)     (13 528 690)      7 635 359
  Cash and cash equivalents at the beginning of the period/year        47 997 978       45 111 775     45,111 775
  Effect of exchange rate fluctuations                                (1 338 948)          413 959    (4 749 156)
  Cash and cash equivalents at the end of the period/year              20 794 725       31 997 044     47 997 978

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

   1. Reporting entity

      MAS Real Estate Inc. (the "company" or "MAS") is domiciled in the British Virgin Islands ("BVI"). These condensed
      consolidated interim financial statements as at, and for the six-month period ended 31 December 2016, comprise
      the company, its subsidiaries and associate (together referred to as the "group" and individually as "group entities")
      and reflect the group's interest in its associate.

      MAS is a real estate investment company with a portfolio of commercial properties in Europe. MAS' strategy is to
      generate sustainable and growing distributable earnings per share by acquiring, developing and operating retail,
      office, industrial, logistics and hotel assets in western Europe and central and eastern Europe ("CEE"). Where
      exceptional opportunities arise, the group will embark on mixed-use or residential developments with the view to
      either generate recurring income, or capital gains. The company aims to distribute all of its distributable earnings on
      a semi-annual basis, with distribution of capital and other profits at the discretion of the directors.

   2. Basis of preparation

      Statement of compliance
      These condensed consolidated interim financial statements have been prepared in accordance with International
      Financial Reporting Standard IAS 34: Interim Financial Reporting and the Johannesburg Stock Exchange ("JSE")
      Listings Requirements.

   3. Significant accounting policies

      The accounting policies applied in the preparation of these condensed consolidated interim financial statements
      are consistent with those applied in the preparation of the consolidated financial statements for the year ended 30
      June 2016. The accounting policy for business combinations below has been updated for the recognition of a non-
      controlling interest in the period.

      Business combinations
      These consolidated financial statements include the financial statements of the company and its group entities for
      the period under review.

      The group accounts for business combinations using the acquisition method from the date when control of the entity 
      is obtained. The consideration transferred on acquisition of the entity and the identifiable assets and liabilities 
      of the entity are measured at fair value and the amount of any non-controlling interest is recognised. The Group 
      measures the non-controlling interests proportionate share of the identifiable net assets. Transaction costs in 
      relation to the acquisition are expensed unless they relate to the issue of new debt or equity.

      Subsidiaries are the group entities controlled by the group. Control exists where the group is exposed to, or has the
      right to, variable returns from its involvement in an entity and has an ability to affect those returns through its power
      over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from
      the date on which control commences until the date control ceases.

      When the group loses control of a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any
      related non-controlling interests and other components of equity. Any resulting gain or loss is recognised in profit
      or loss. Any interest retained in the former subsidiary is measured at fair value at the date control was lost.

      Intra-group balances and income and expenses arising from intra-group transactions are eliminated in preparing the
      consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, to the
      extent that there is no evidence of impairment.

      New and amended standards and interpretations not yet adopted

      Below is a summary of amendments/improvements to standards and interpretations that are not yet effective and
      were not early adopted:

      Amendments/improvements to standards and interpretations not yet                       IASB effective for annual
      effective                                                                              periods beginning on or after
      IFRS 12 - Amendments clarifying scope                                                  1 January 2017
      IAS 7 - Amendment to disclosure initiative                                             1 January 2017

      IAS 12 - Amendments to recognition of deferred tax
      assets for unrealised losses                                                           1 January 2017
      IFRS 2 - Amendments to classification and measurement       
      of share based payment transactions                                                    1 January 2018
      IFRS 9 (2014) - Financial instruments                                                  1 January 2018
      IFRS 15 - Revenue from contracts with customers                                        1 January 2018
      IAS 28 - Amendments fair value measurement clarification                               1 January 2018
      IAS 40 -Amendments to clarify transfers of property to, or from, investment            1 January 2018
      property       
      IFRS 16 - Leases                                                                       1 January 2019

      Management has not yet assessed the impact of adopting these standards, amendments and interpretations.

   4. Rental income
   
      Rental income of EUR11 067 791 (December 2015: EUR6 586 450, June 2016: EUR14 203 699) was generated for the six-
      month period ended 31 December 2016.
   
      Revenue derived from the following tenants represents more than 10% of the group's rental income and is
      included within the income-generating segment of the group:
 
                                                                        Six-month          Six-month            Audited
                                                                     period ended       period ended         Year ended
                                                                      31 December        31 December            30 June
      Euro                                                                   2016               2015               2016
      Edeka MIHA AG                                                     2 630 622                  -                  -
      Toom Baumarkt GmbH                                                1 134 034          1 103 528          2 227 811
      Bauhaus GmbH and Co KG                                              859 092            825 041          1 644 562
                                                                        4 623 748          1 928 569          3 872 373
 
      The future aggregate minimum rental receivable under non-cancellable operating leases is as follows:
 
                                                                                                                Audited
                                                                             As at            As at               As at
                                                                       31 December      31 December             30 June
      Euro                                                                    2016             2015                2016
      No later than 1 year                                              28 108 091       15 292 948          18 796 482
      Greater than 1 year and less than 5 years                         99 462 055       65 655 806          71 729 913
      Greater than 5 years                                             185 296 845      121 583 632         157 873 608
                                                                       312 866 991      202 532 386         248 400 003
   5. Fair value adjustments  
      The group's fair value adjustments comprise:
                                                                                             Restated*
                                                                           Six-month         Six-month          Audited
                                                                        period ended      period ended       Year ended
                                                                         31 December       31 December          30 June
      Euro                                                   Note               2016              2015             2016
      (Loss)/gain on fair value of financial                             (4 569 029)         8 100 659       12 938 105                                                                
      investments 
      Gain/(loss) on fair value of investment                                598 369       (2 074 710)      (3 088 606)                                            
      property 
      Gain on assets held for sale                                            26 474                 -                -
      Gain/(loss) on fair value of financial                                 678 566       (3 647 911)      (3 417 780)                                           
      instruments                                                        (3 265 620)         2 378 038        6 431 719
      Summarised as follows:
 
      Fair value movement in financial investments
      Karoo Fund                                                9                  -         7 076 240        6 130 579
      Sirius Real Estate Limited ("Sirius")                     9        (4 569 029)         1 024 419        6 807 526
                                                                         (4 569 029)         8 100 659       12 938 105
      Fair value movement in investment property                     
      Income-generating                                         8            677 340       (2 074 710)      (1 764 630)
      Development                                               8           (78 971)                 -      (2 103 869)
      Land bank                                                 8                  -                 -          779 893
                                                                             598 369       (2 074 710)      (3 088 606)
      Fair value movement in assets held for sale                    
      Langley park - retail unit                                            (16 950)                 -                -
      New Waverley - retail unit                                              43 424                 -                -
                                                                              26 474                 -                -
      Fair value movement in financial instruments                      
      Interest rate swaps                                      13            559 117          (46 837)        (493 594)
      Attacq Limited ("Attacq") financial                      13                  -       (3 601 074)      (4 032 584)
      liability                          
      Development management fee                               13            205 516                 -      (1 092 047)
      Forward currency contract                                13           (86 067)                 -                -
      Priority participating profit dividend                   13                  -                 -        2 200 445
                                                                             678 566       (3 647 911)      (3 417 780)
       
      * Fair value adjustments disclosed in the prior period as 'Treasury investments' related to Sirius. These have been
      reclassified to fair value of 'Financial investments' to aid comparability with the classifications in the current
      period, see note 19.
 
   6. Taxation
  
      The company, which is domiciled in the British Virgin Islands, is not subject to tax in that jurisdiction. Operating
      subsidiaries of the group, however, are exposed to taxation in the jurisdictions in which they operate and,
      potentially, in the jurisdictions through which the SPV investment companies are held, as follows:
 
                                          Six-month                              Six-month                       Audited
                                         period ended                           period ended                    Year ended
                                       31 December 2016                       31 December 2015                  30 June 2016
                                   Applicable                         Applicable                       Applicable
      Euro                               rate      Taxation                 rate      Taxation               rate      Taxation
      Income taxation
      UK                                20,0%       256 173                20,0%       322 347              20,0%       324 054
      Switzerland                       26,2%             -                26,2%             -              26,2%             -
      Germany                           15,8%       143 965                15,8%       176 505              15,8%       311 461
      Luxembourg                         0,0%             -                 0,0%             -               0,0%             -
      Wealth taxation
      Switzerland                        0,2%         1 801                 0,2%         3 426               0,2%         3 544
      Luxembourg                         0,5%        22 557                 0,5%             -               0,5%        45 690
                                                    424 496                            502 278                          684 749
 
 
      Corporate tax charge and deferred taxation
                                                                     Six-month              Six-month                   Audited
                                                                  period ended           period ended                Year ended
                                                                   31 December            31 December                   30 June
      Euro                                                                2016                   2015                      2016
      Current taxation                                                 424 496                502 278                   684 749
      Deferred taxation expense                                         76 462                142 521                   143 776
      Taxation expense                                                 500 958                644 799                   828 525
  
      Reconciliation of deferred taxation:
                                                                     Six-month              Six-month                   Audited
                                                                  period ended           period ended                Year ended
                                                                   31 December            31 December                   30 June
      Euro                                                                2016                   2015                      2016
      Deferred taxation brought forward                                521 449                406 631                   406 631
      Current period/year deferred taxation                             76 462                142 521                   143 776
      Foreign currency translation difference                            7 393               (27 009)                  (28 958)
      Deferred taxation liability carried forward                      605 304                522 143                   521 449

      The deferred taxation liability results from the following:

                                                                                                                        Audited
                                                                         As at                  As at                     As at
                                                                   31 December            31 December                   30 June
      Euro                                                                2016                   2015                      2016
      Deferred taxation on temporary differences        
      between accounting and fiscal value of:        
      Investment property                                            1 047 599                908 482                   721 292
      Deferred taxation asset                                        1 047 599                908 482                   721 292
      Deferred taxation on temporary differences        
      between accounting and fiscal value of:        
      Investment property                                            1 652 903              1 430 625                 1 242 741
      Deferred taxation liability                                    1 652 903              1 430 625                 1 242 741
      Net deferred taxation liability                                  605 304                522 143                   521 449
      
      Reconciliation of effective taxation rate  
                                                             Six-month                      Six-month                   Audited
                                                          period ended                   period ended                Year ended
                                                           31 December                    31 December                   30 June
      Euro                                          %             2016             %             2015          %           2016
      Profit before taxation                                 1 175 984                      1 991 456                 2 326 557
      Taxation using the company's               0,00                -          0,00                -       0,00              -
      domestic rate 
      Effect of tax rates in foreign          (36,10)        (424 496)       (25,23)        (502 278)    (29,43)      (684 749)
      jurisdictions 
      Change in recognised deductible 
      temporary differences 
           - Revaluation of                     34,74          408 498         12,12          241 286     (7,99)      (185 826)
             investment property 
           - Change in tax base               (41,24)        (484 960)       (19,27)        (383 807)       1,81         42 050
                                              (42,60)        (500 958)       (32,38)        (644 799)    (35,61)      (828 525)
 
   7. Intangible assets
      The group's intangible assets comprise:
                                                                                                                        Audited
                                                                                            As at           As at         As at
                                                                                      31 December     31 December       30 June
      Euro                                                                                   2016            2015          2016
      Goodwill                                                                         24 387 942      28 449 119    25 262 818
      Other intangible assets                                                             111 338               -             -
                                                                                       24 499 280      28 449 119    25 262 818

      Reconciliation of the group's carrying amount of goodwill:

                                                                                     MAS Property             New
                                                                                         Advisors     Waverley 10
      Euro                                                                                Limited         Limited         Total
      Cost                    
      Balance at 30 June 2015 (audited)                                                27 768 955       1 582 184    29 351 139
      Foreign currency translation difference                                           (853 396)        (48 624)     (902 020)
      Closing balance 31 December 2015                                                 26 915 559       1 533 560    28 449 119
      Foreign currency translation difference                                         (3 014 543)       (171 758)   (3 186 301)
      Closing balance 30 June 2016 (audited)                                           23 901 016       1 361 802    25 262 818
      Foreign currency translation difference                                           (827 715)        (47 161)     (874 876)
      Closing balance 31 December 2016                                                 23 073 301       1 314 641    24 387 942

      Impairment
      The recoverable amounts of the group's CGUs are determined by their value-in-use, as this is greater than fair
      value less costs to sell.
      
      MAS Property Advisors Limited and New Waverley 10 Limited
      As there were no indicators of impairment at 31 December 2016, no impairment test was performed. Goodwill will
      be tested for impairment at 30 June 2017. No impairment charge arose as a result of the group's previous annual
      impairment test of goodwill in relation to New Waverley 10 Limited and MAS Property Advisors Limited (December
      2015: nil; June 2016: nil).

   8. Investment property
 
      The group's investment property comprises income-generating property, development property and land bank:
 
      Segment                                   Detail
      Income-generating property                Property that is currently producing income and held for the purpose of
                                                earning a yield. There may be further asset management opportunities on
                                                these properties, which could further enhance income returns.
      Development property                      Property that is being developed in order to create income producing
                                                property held for the purpose of earning a better yield than by acquiring
                                                standing property.
      Land bank                                 Land bank consists of residential elements of the developments at New
                                                Waverley, North Street Quarter and Langley Park, all of which now have
                                                planning permission in place.
     
      The carrying amount of the group's investment property was as follows:
 
                                                                               As at 31 December 2016
      Euro                                                            Fair value                 Cost                  Total
      Income-generating property                                     425 203 212                    -            425 203 212
      Development property                                                     -            7 583 361              7 583 361
      Land bank                                                                -           40 903 437             40 903 437
                                                                     425 203 212           48 486 798            473 690 010
     
                                                                               As at 31 December 2015
      Euro                                                            Fair value                 Cost                  Total
      Income-generating property                                     169 911 602                    -            169 911 602
      Development property                                                     -           59 081 009             59 081 009
      Land bank                                                                -           44 826 757             44 826 757
                                                                     169 911 602          103 907 766            273 819 368
     
                                                                          As at 30 June 2016 (audited)
      Euro                                                            Fair value                 Cost                  Total
      Income-generating property                                     242 625 172                    -            242 625 172
      Development property                                            17 927 863            4 502 390             22 430 253
      Land bank                                                                -           41 940 654             41 940 654
                                                                     260 553 035           46 443 044            306 996 079
 
      As at 31 December 2016
                                                           Income-
      Euro                                              generating          Development           Land bank            Total
      Opening balance                                  242 625 172           22 430 253          41 940 654      306 996 079
      Property acquisitions                            155 151 088                    -                   -      155 151 088
      Capitalised acquisition costs                      3 057 070                    -                   -        3 057 070
      Capitalised retentions (see note 13)                 600 000                    -                   -          600 000
      Property disposal                                          -            (274 480)                   -        (274 480)
      Transfer                                          25 458 248         (23 907 416)         (1 550 832)                -
      Capitalised expenditure                             (22 373)            9 995 649           1 919 729       11 893 005
      Capitalised interest from general borrowings               -              182 256              45 953          228 209
      Fair value adjustment (see note 5)                   677 340             (78 971)                   -          598 369
      Foreign currency translation difference          (2 343 333)            (763 930)         (1 452 067)      (4 559 330)
      Closing balance                                  425 203 212            7 583 361          40 903 437      473 690 010
     
      As at 31 December 2015
                                                           Income-
      Euro                                              generating        Development             Land bank            Total
      Opening balance                                  164 390 519         42 907 443            41 240 845      248 538 807
      Property acquisitions                             10 315 400                  -                     -       10 315 400
      Capitalised retentions (see note 13)                 270 755                  -                     -          270 755
      Capitalised acquisition costs                      1 089 375                  -                     -        1 089 375
      Capitalised expenditure                               26 219         17 494 995             4 853 324       22 374 538
      Fair value adjustment (see note 5)               (2 074 710)                  -                     -      (2 074 710)
      Transfer to assets held for sale                 (2 043 750)                  -                     -      (2 043 750)
      Foreign currency translation difference          (2 062 206)        (1 321 429)           (1 267 412)      (4 651 047)
      Closing balance                                  169 911 602         59 081 009            44 826 757      273 819 368
     
      As at 30 June 2016 (audited)
                                                          Income-
      Euro                                             generating         Development            Land bank            Total
      Opening balance                                 164 390 518          42 907 443           41 240 845      248 538 806
      Property acquisitions                            37 439 245                   -                    -       37 439 245
      Capitalised retentions (see note 13)              1 370 755                   -                    -        1 370 755
      Capitalised acquisition costs                     4 578 229                   -                    -        4 578 229
      Property disposal                               (1 814 850)                   -                    -      (1 814 850)
      Transfer                                         43 937 100        (43 937 100)                    -                -
      Capitalised expenditure                             749 693          31 356 543            5 910 392       38 016 628
      Capitalised financial liability (see note 13)             -                   -            3 327 225        3 327 225
      Capitalised interest from general borrowings              -              28 452                  354           28 806
      Fair value adjustment (see note 5)              (1 764 630)         (2 103 869)              779 893      (3 088 606)
      Transfer to assets held for sale                          -                   -          (3 515 237)      (3 515 237)
      Foreign currency translation difference         (6 260 888)         (5 821 216)          (5 802 818)     (17 884 922)
      Closing balance                                 242 625 172          22 430 253           41 940 654      306 996 079

      Fair value
      Investment property is carried at fair value. Where fair value cannot be reliably determined for development and
      land bank property, but for which the group expects the fair value to be reliably determinable as construction
      progresses, these properties are measured under the cost model of investment property until fair value becomes
      reliably determinable. Changes in fair values are recognised in profit or loss.
      
      Acquisitions and non-controlling interest
      In August 2016, the group acquired a portfolio of 20 retail units tenanted by Edeka MIHA AG and an industrial
      property tenanted by Volkswagen AG both in Germany for EUR56 010 400 and EUR10 500 000 respectively.
      
      On 20 September 2016 the group was issued 80% of the ordinary share capital of a newly incorporated entity PKM
      CEE Investments Limited ("PKM CEE") for the consideration of EUR80. The remaining 20% of the share capital of PKM
      CEE was issued to Prime Kapital CEE Property Investment Management Ltd, a non-controlling interest ("NCI") for
      the consideration of EUR20. The shares of PKM CEE carry equal voting rights, such that the group has 80% of the
      voting rights and control over PKM CEE. At the date of acquisition PKM CEE had no assets or liabilities. PKM CEE
      was incorporated initially to purchase the Nova Park investment property.
      
      In November 2016 PKM CEE acquired a retail shopping mall in Poland, Nova Park, for EUR88 640 688. The profit 
      attributable to NCI of EUR1 072 575 is predominately attributable to the fair value movement of Nova Park of which 
      the NCI's share is EUR1 037 862. The profit attributable to NCI is disclosed in the condensed consolidated statement 
      of profit or loss, the equity attributable to NCI of EUR1 072 595 is disclosed in the condensed consolidated 
      statement of financial position.
      
      Operating leases
      Investment properties are subject to operating leases. The group's investment property portfolio generated
      EUR11 067 791 (December 2015: EUR6 586 450; June 2016: EUR14 203 699) in rental income and EUR1 541 342 (December
      2015: EUR841 651; June 2016: EUR2 047 322) in service charges and other recoveries with service charges and other
      property operating expenses of EUR2 421 484 (December 2015: EUR1 783 557, June 2016: EUR4 036 748) being recognised
      in profit or loss.
      
      Interest bearing borrowings
      Bank borrowings of EUR121 744 597 (December 2015: EUR14 971 478; June 2016: EUR44 578 595) are secured on income-
      generating property with a fair value of EUR220 249 618 (December 2015: EUR28 272 258; June 2016: EUR79 269 836). The
      group has total designated bank borrowings of EUR107 417 874 (December 2015: nil, June 2016: EUR29 978 966) as
      general borrowings. During the period interest costs on general borrowings of EUR228 209 (December 2015: nil,
      June 2016: EUR28 806) have been capitalised and included within development and land bank investment property.
      
      Related parties
      The group has a development management agreement with the developer New Waverley Advisers Limited, a
      related party, for the development and construction of the New Waverley site in Edinburgh. A development
      management fee of EUR2 083 575 (December 2015: EUR1 528 321; June 2016: EUR2 367 448) has been recognised in
      relation to this development, see note 13.
      
      The group has capitalised costs incurred from related parties amounting to EUR12 123 929 (December 2015:
      EUR17 790 498; June 2016: EUR27 117 356) during the period, see note 18.
      
      Measurement of fair values
      
      Valuation process for level 3 investment property
      
      On an annual basis, the fair value of investment property is determined by external independent property valuers
      who have appropriate recognised professional qualifications and recent experience in the location and category of
      the property being valued. At the interim reporting date, the fair value of investment property is determined by
      the directors either by reviewing the most recent external valuation and updating for any material changes to the
      significant inputs or by reference to other relevant information generated by market transactions.
      
      For all investment properties their current use equates to the highest and best use. The external valuations
      received are initially reviewed by the relevant internal asset manager and compared to their expectation of what
      fair value would be for individual investment properties. If the asset manager is in agreement with the valuation,
      the valuation reports are then checked by the finance team to confirm their numerical and methodological
      accuracy. Lastly, the investment property valuation is reviewed by the Audit Committee.
      
      Fair value hierarchy
      The fair value measurement of all the group's investment properties have been categorised as level 3 in the fair
      value hierarchy based upon the significant unobservable inputs into the valuation techniques used.
      
      The following table shows the carrying amount and fair value of the group's investments in the fair value
      hierarchy:
      
      As at 31 December 2016
                                                                                            Fair value
      Euro                                Carrying amount                    Level 1           Level 2          Level 3
      Income-generating property              425 203 212                          -                 -      425 203 212
                                              425 203 212                          -                 -      425 203 212
      
      As at 31 December 2015
                                                                                            Fair value
      Euro                                Carrying amount                    Level 1           Level 2          Level 3
      Income-generating property              169 911 602                          -                 -      169 911 602
                                              169 911 602                          -                 -      169 911 602
      
      As at 30 June 2016 (audited)
                                                                                            Fair value
      Euro                                Carrying amount                    Level 1           Level 2          Level 3
      Income-generating property              242 625 172                          -                 -      242 625 172
      Development property                     17 927 863                          -                 -       17 927 863
                                              260 553 035                          -                 -      260 553 035
      
      Valuation techniques and significant unobservable inputs
      The following table shows the valuation techniques used in measuring the fair value of investment property, as
      well as the significant unobservable inputs used.
      
      As at 31 December 2016, 31 December 2015 and 30 June 2016

                                                                                        Inter-relation between key
      Investment                                               Significant              unobservable inputs and fair
      property type       Valuation technique                  unobservable inputs      value measurement
      Income-             Discounted cash flows:               - Risk adjusted          The estimated fair value
      generating          The valuation model considers           discount rates        would increase/(decrease) if:
      property            the present value of net cash        - Market rent             - Expected market rental
                          flows to be generated from the       - Net rental growth          growth was higher/
                          property, taking into account        - Reversionary               (lower)
                          expected rental growth rate,            discount rate          - The occupancy rate was
                          void periods, occupancy rate,                                     higher/(lower)
                          lease incentive costs such as                                  - The reversionary discount
                          rent-free periods and other                                       rate was lower/(higher)
                          costs not paid by tenants. The                                 - The risk adjusted discount
                          expected net cash flows are                                       rate was lower/(higher)
                          discounted using risk-adjusted
                          discount rates. Among other
                          factors, the discount rate
                          estimation considers the
                          quality of a building and its
                          location, tenant credit quality
                          and lease terms.
    
      As at 30 June 2016
     
                                                                                        Inter-relation between key
      Investment                                               Significant                unobservable inputs and fair
      property type       Valuation technique                  unobservable inputs        value measurement
      
      Development         Discounted cash flows less           - Risk adjusted            The estimated fair value would
      property            cost to complete:                      discount rates           increase/(decrease) if:
                          The discounted cash flow is          - Market rent              -   Expected market rental
                          determined on the same               - Net rental growth            growth was higher/(lower)
                          basis as income-generating           - Reversionary             -   The occupancy rate was
                          properties based on the                 discount rate               higher/(lower)
                          completed development                - Costs to complete        -   The reversionary discount
                          property.                                                           rate was lower/(higher)
                                                                                          -   The risk adjusted discount
                          Costs to complete as                                                rate was lower/(higher)
                          determined by external                                          -   The cost to complete was
                          quantity surveyors are                                              lower/(higher)
                          deducted from the                                               -   Completion date was
                          discounted cash flow.                                               earlier/(later)
                                     
      Income-generating investment property held at 31 December 2016 continues to be held at their 30 June 2016 fair
      value. A sensitivity analysis is available in the group's integrated annual report 2016. Development and land bank
      property for which fair value cannot be reliably determined are carried under the cost model of investment property.

   9. Financial investments

      The carrying amount of the group's financial investments was as follows:

                                                                                                                 Audited
                                                                       As at                     As at             As at
                                                                 31 December               31 December           30 June
      Euro                                                              2016                      2015              2016
      Non-current
      Sirius                                                               -                15 910 475                 -
                                                                           -                15 910 475                 -
      Current 
      Karoo Fund                                                           -                34 322 404                 -
      Sirius                                                               -                         -        51 614 068
                                                                           -                34 322 404        51 614 068
                                                                           -                50 232 879        51 614 068
 
      Financial investments have been classified as fair value through profit or loss ("FVTPL"). Accordingly, they are
      measured at fair value at the reporting date with changes in fair value being recognised in profit or loss.
   
      On 22 August 2016 the group sold 60 000 000 shares in Sirius for EUR29 282 323. As a result, the group's shareholding
      in Sirius decreased to 4,3%. On 21 September 2016 the remaining 36 474 895 shares in Sirius were disposed of for
      EUR17 762 716.

      Reconciliation of financial investments at fair value:

                                                                                             Restated*           Audited
                                                                           As at                 As at             As at
                                                                     31 December           31 December           30 June
      Euro                                                                  2016                  2015              2016
      Opening balance                                                 51 614 068            82 173 737        82 173 737
      Reclassification                                                         -              (42 537)          (42 537)
      Disposal                                                      (47 045 039)                     -                 -
      Cash redemptions                                                         -          (37 799 435)      (40 376 739)
      Fair value movement (note 5)                                   (4 569 029)             8 100 659        12 938 105
      Foreign currency translation difference                                  -           (2 199 545)       (3 078 498)
      Closing balance                                                          -            50 232 879        51 614 068

      * Fair value adjustments disclosed in the prior period as 'Treasury investments' related to Sirius. These have been
      reclassified to fair value of 'Financial investments' to aid comparability with the classifications in the current
      period, see note 19.

  10. Investment in equity accounted investee

      The carrying amount of the group's investments in equity accounted investee was as follows:

                                                                                                                 Audited
                                                                           As at               As at               As at
                                                                     31 December         31 December             30 June
      Euro                                                                  2016                2015                2016
      PKM Developments Limited ("PKM")                                20 057 968                   -          19 991 716

      Reconciliation of investments in equity accounted investee

                                                                                                                 Audited
                                                                           As at               As at               As at
                                                                     31 December         31 December             30 June
      Euro                                                                  2016                2015                2016
      Opening balance                                                 19 991 716                   -                   -
      Acquisition                                                              -                   -          20 000 000
      Capitalised acquisition costs                                       30 098                   -              23 624
                                                                      20 021 814                   -          20 023 624
      Share of profit/(loss)                                              36 154                   -            (31 908)
                                                                      20 057 968                   -          19 991 716

      On 23 March 2016 the group invested EUR20 000 000 in the ordinary shares of PKM, a development property
      company with its principal place of business in CEE. PKM is an associate in which the group has a 40% ownership
      interest. PKM is a separate entity and the group has a residual interest in the net assets of the associate.

      In addition to the investment in the ordinary shares, the group intends to fund a further EUR200 000 000 over 4 years
      through the investment in 7,5% preference shares.
      
      The following table summarises the financial information of PKM as included in its own financial statements:

                                                                                                                 Audited
                                                                           As at               As at               As at
      Euro                                                      31 December 2016    31 December 2015        30 June 2016
      Statement of financial position - PKM     
      Non-current assets                                              20 051 534                   -           2 697 078
      Current assets                                                  30 696 114                   -          47 496 624
      Total assets                                                    50 747 648                   -          50 193 702
           
      Current liabilities                                                737 035                   -             273 474
      Total liabilities                                                  737 035                   -             273 474
      Net assets                                                      50 010 613                   -          49 920 228
      Percentage ownership interest                                          40%                   -                 40%
      Group share of net assets                                       20 004 245                   -          19 968 092
      Capitalised costs                                                   53 723                   -              23 624
      Carrying amount                                                 20 057 968                   -          19 991 716
           
            
                                                                      Six-month            Six-month             Audited
                                                                   period ended         period ended          Year ended
                                                                    31 December          31 December             30 June
      Euro                                                                 2016                 2015                2016
      Statement of profit or loss and other       
      comprehensive income - PKM       
      Revenue                                                                 -                    -                   -
      Corporate expenses                                               (39 191)                    -            (36 756)
      Net finance income/(costs)                                        129 575                    -            (43 014)
           
      Total profit/(loss) and other                                      90 384                    -            (79 770)
      comprehensive income                        
      Percentage ownership interest                                         40%                    -                 40%
      Group's share of total comprehensive                               36 154                    -            (31 908)
      profit/(loss)  

  11. Trade and other receivables
      
      The group's trade and other receivables comprise:
                                                                                                                 Audited
                                                                          As at                As at               As at
                                                                    31 December          31 December             30 June
      Euro                                                                 2016                 2015                2016
      Property retentions held in escrow                              2 115 000            1 615 000           2 115 000
      VAT receivable                                                 20 911 114              757 949           1 866 772
      Dividends receivable                                                    -                    -           1 256 586
      Lease incentive accruals                                          207 710                    -             737 423
      Prepayments                                                       578 672              411 651           3 746 679
      Other                                                             485 185              349 817             607 688
      EMI receivable                                                          -                    -             589 826
      Trade receivables from lessees                                  2 456 071            1 984 463             344 109
      Collateral receivable (see note 18)                               624 650                    -                   -
                                                                     27 378 402            5 118 880          11 264 083
       
      The carrying amount of the group's trade and other receivables is an approximation of the fair value.
      
      The property retentions that relate to the acquisition of the Bruchsal, Heppenheim park and Munich properties
      have been held in escrow. Included in the VAT receivable balance is an amount of PLN92 000 000 which at the
      reporting date was approximately EUR20 280 739 (December 2015: nil; June 2016: nil) due to MAS CEE Investments
      Limited, a group entity on the purchase price of Nova Park.

  12. Share Capital

      The ordinary share capital of the company has no par value. The reconciliation of share capital for the period was
      as follows:

                                                                                     Number of            Share capital
                                                                                        shares                     Euro
      Balance at 30 June 2015 (audited)                                            291 787 889              305 671 992
      Issued during the period
      - Distributions reinvested                                                     2 667 741                3 241 805
      Balance at 31 December 2015                                                  294 455 630              308 913 797
      Issued during the period
      - Distributions reinvested                                                     3 004 004                3 784 335
      - Settlement of Attacq liability                                              21 317 449               28 156 329
      - Capital raise                                                               29 848 136               37 676 095
      Balance at 30 June 2016 (audited)                                            348 625 219              378 530 556
      Issued during the period
      - Distributions                                                                        -              (7 994 090)
      - Distributions reinvested                                                     6 317 591                7 983 727
      - Capital raise                                                               25 641 026               31 592 882
      Balance at 31 December 2016                                                  380 583 836              410 113 075

      Distributions reinvested represent scrip dividends paid out of share capital. During the period the group incurred
      EUR199 328 (December 2015: nil; June 2016: EUR13 029) expenses in relation to issuing shares which have been offset 
      against share capital.

  13. Financial instruments

      The carrying amounts of the group's financial instruments were as follows:

                                                                                            Restated*           Audited
                                                                            As at               As at             As at
                                                                      31 December         31 December           30 June
      Euro                                                                   2016                2015              2016
      Non-current
      Derivative financial instruments                                  2 488 440           2 592 709         3 029 495
      Financial liabilities                                             3 698 575           3 820 803         2 367 448
                                                                        6 187 015           6 413 512         5 396 943
      Current
      Derivative financial instruments                                     86 067                   -                 -
      Financial liabilities                                             1 258 865          35 271 134         7 146 090
                                                                        1 344 932          35 271 134         7 146 090
                                                                        7 531 947          41 684 646        12 543 033

      *Deferred consideration as disclosed in December 2015 has been reclassified to financial instruments and is included 
       within financial liabilities to aid comparability with the classifications in the current period, see note 19.

                                                                               As at 31 December 2016
      Euro                                                             Fair value      Amortised cost            Total
      Derivative financial instruments  
      Current                                                              86 067                   -           86 067
      Non-current                                                       2 488 440                   -        2 488 440
                                                                        2 574 507                   -        2 574 507
      Financial liabilities
      Current                                                                   -           1 258 865        1 258 865
      Non-current                                                       2 083 575           1 615 000        3 698 575
                                                                        2 083 575           2 873 865        4 957 440
                                                                        4 658 082           2 873 865        7 531 947
     
                                                                               As at 31 December 2015
      Euro                                                             Fair value      Amortised cost            Total
      Derivative financial instruments
      Non-current                                                       2 592 709                   -        2 592 709
                                                                        2 592 709                   -        2 592 709
      Financial liabilities 
      Current                                                          32 886 514           2 384 620       35 271 134
      Non-current                                                       3 820 803                   -        3 820 803
                                                                       36 707 317           2 384 620       39 091 937
                                                                       39 300 026           2 384 620       41 684 646
     
     
                                                                              As at 30 June 2016 (audited)
      Euro                                                             Fair value       Amortised cost           Total
      Derivative financial instrument
      Non-current                                                       3 029 495                   -        3 029 495
                                                                        3 029 495                   -        3 029 495
      Financial liabilitie
      Current                                                           3 327 225           3 818 865        7 146 090
      Non-current                                                       2 367 448                   -        2 367 448
                                                                        5 694 673           3 818 865        9 513 538
                                                                        8 724 168           3 818 865       12 543 033

      Financial liabilities held at amortised cost
      
      Deferred consideration is held at amortised cost. On the acquisitions of Heppenheim park, Bruchsal and Munich,
      the group retained a portion of the purchase price per the relevant selling purchase agreements, which will be
      released to the vendor at such time that they complete the agreed retention works/activities. These amounts have
      been capitalised within investment property.

      Reconciliation of financial liabilities held at amortised cost:
                                                                                                               Audited
                                                                            As at               As at            As at
                                                                      31 December         31 December          30 June
      Euro                                                                   2016                2015             2016
      Opening                                                           3 818 865           2 703 865        2 703 865
      Purchase price retained                                             600 000             270 755        1 370 755
      Purchase price released                                         (1 545 000)           (590 000)        (255 755)
      Closing                                                           2 873 865           2 384 620        3 818 865
      
      Financial instruments held at fair value
      The carrying amount of the group's financial instruments held at fair value was as follows:
      
                                                                                                              Audited
                                                                            As at               As at           As at
                                                                      31 December         31 December         30 June
      Euro                                                                   2016                2015            2016
      Derivative financial instruments  
      Interest rate swaps                                               2 488 440           2 592 709       3 029 495
      Forward currency contract                                            86 067                   -               -
                                                                        2 574 507           2 592 709       3 029 495
      Financial liabilities  
      Development management fee                                        2 083 575           1 528 321       2 367 448
      Priority participating profit dividend                                    -           2 292 482               -
      Attacq financial liability                                                -          29 112 780               -
      Santon financial liability                                                -           3 773 734       3 327 225
                                                                        2 083 575          36 707 317       5 694 673
        
      Derivative financial instruments
      
      The group has hedged the interest rate exposure on EUR14 326 723 of interest bearing borrowings on German and
      Swiss debt. In addition, the group has entered into a Polish zloty forward currency contract to hedge the exposure
      on VAT receivable in relation to the Nova Park acquisition (see note 11). These hedging instruments are classified
      as FVTPL; accordingly, they are measured at fair value at the reporting date with changes in fair value being
      recognised in profit or loss.
      
      Reconciliation of derivative financial instruments:
      
                                                                  Interest rate    Forward currency
      Euro                                                                swaps            contract             Total
      Balance at 30 June 2015 (audited)                               2 603 535                   -         2 603 535
      Fair value adjustment                                              46 837                   -            46 837
      Foreign currency translation difference                          (57 663)                   -          (57 663)
      Balance at 31 December 2015                                     2 592 709                   -         2 592 709
      Fair value adjustment                                             446 757                   -           446 757
      Foreign currency translation difference                           (9 971)                   -           (9 971)
      Balance at 30 June 2016 (audited)                               3 029 495                   -         3 029 495
      Fair value adjustment                                           (559 117)              86 067         (473 050)
      Foreign currency translation difference                            18 062                   -            18 062
      Balance at 31 December 2016                                     2 488 440              86 067         2 574 507
     
      Financial liabilities
         
      Reconciliation of financial liabilities held at fair value:   
   
                                                                                              Priority
                                                      Attacq       Santon  Development   participating
                                                   financial    financial   management          profit
      Euro                                         liability    liability          fee        dividend         Total
      Balance at 30 June 2015 (audited)           26 378 571            -    1 576 779       2 365 168    30 320 518
      Recognised on grant of planning                      -    3 773 734            -               -     3 773 734
      permission      
      Fair value adjustment (note 5)               3 601 074            -            -               -     3 601 074
      Foreign currency translation difference      (866 865)            -     (48 458)        (72 686)     (988 009)
      Balance at 31 December 2015                 29 112 780    3 773 734    1 528 321       2 292 482    36 707 317
      Fair value adjustment (note 5)                 431 510            -    1 092 047     (2 200 445)     (676 888)
      Settlement                                (28 156 329)            -            -               -  (28 156 329)
      Foreign currency translation difference    (1 387 961)    (446 509)    (252 920)        (92 037)   (2 179 427)
      Balance at 30 June 2016 (audited)                    -    3 327 225    2 367 448               -     5 694 673
      Fair value adjustment (note 5)                       -            -    (205 516)               -     (205 516)
      Settlement                                           -  (3 327 225)            -               -   (3 327 225)
      Foreign currency translation difference              -            -     (78 357)               -      (78 357)
      Balance at 31 December 2016                          -            -    2 083 575               -     2 083 575
      
      Development management fee and priority participating profit dividend
      
      These financial liabilities are classified as FVTPL. This reduces the accounting mismatch by matching the movement
      in the fair value of the financial liabilities with the fair value movement on the related investment directly in profit
      or loss.
      
      The group has a development management agreement with the developer under which the developer provides
      services in procuring the construction of the New Waverly site in Edinburgh. Under the terms of this agreement a
      fee is payable to the developer for its services with that fee being in two parts. Under the terms of a shareholders'
      agreement between the shareholders of New Waverly 10 Limited, shareholders are entitled to 7,5% annualised
      return on invested capital. The first part of the fee payable to the developer is 1/3rd of the annualised return
      payable to the group. The second part of the fee payable to the developer is linked to the value of the site
      following development with the developer entitled to 25% of the value of the developed site less both costs of
      development and the annualised return to shareholders on invested capital. This second part of the fee is only
      payable once the group has received its return on capital meaning that, in effect, the developer will receive a fee
      broadly equal to 25% of capital any gain that will be made should New Waverly 10 Limited ever decide to realise its
      investment in the site.

      Measurement of fair values
      
      Fair value hierarchy
      
      The following table shows the carrying amount and fair value of the group's financial instruments held at fair value
      in the fair value hierarchy:
      
      As at 31 December 2016
                                                                                             Fair value
      Euro                                            Carrying amount            Level 1             Level 2             Level 3
      Derivative financial liabilities
      Interest rate swaps                                   2 488 440                  -           2 488 440                   -
      Forward currency contract                                86 067                  -              86 067                   -
      Financial liabilities 
      Development management fee                            2 083 575                  -                   -           2 083 575
                                                            4 658 082                  -           2 574 507           2 083 575
      As at 31 December 2015
                                                                                                  Fair value
      Euro                                            Carrying amount            Level 1             Level 2             Level 3
      Derivative financial liabilities
      Interest rate swap                                    2 592 709                  -           2 592 709                   -
      Financial liabilities  
      Attacq financial liability                           29 112 780                  -          29 112 780                   -
      Development management fee                            1 528 321                  -                   -           1 528 321
  
      Santon financial liability                             3 773 734                  -                   -           3 773 734
      Priority participating profit dividend                 2 292 482                  -                   -           2 292 482
                                                            39 300 026                  -          31 705 489           7 594 537
      
      As at 30 June 2016 (audited)
                                                                                Fair value
      Euro                                            Carrying amount             Level 1            Level 2             Level 3
      Derivative financial liabilities                        
      Interest rate swap                                    3 029 495                   -          3 029 495                   -
      Financial liabilities                       
      Development management fee                            2 367 448                   -                  -           2 367 448
      Santon financial liability                            3 327 225                   -                  -           3 327 225
                                                            8 724 168                   -          3 029 495           5 694 673
      
      Level 2 financial instruments
      
      Valuation techniques and unobservable inputs
      The following table shows the valuation technique used to measure investments held at fair value as well as the
      inputs used for level 2 financial instruments.
      
      As at 31 December 2016
      
      Level 2 financial     Valuation technique             Inputs                     Inter-relationship
      liability                                                                        between inputs and
                                                                                       fair value
                                                                                       measurement
   
      Forward currency      The fair value of the           - Spot currency rate       The estimated fair value
      contract              forward contract is based       - Risk free rate           would
                            on the underlying spot          - Currency amount          increase/(decrease) if:
                            price of the currency, the                                 - Spot currency rate
                            risk-free rate and the date                                  for purchased
                            of expiration. The                                           currency was
                            theoretical price is derived                                 stronger/(weaker)
                            from the cash-and-carry                                    - Risk-free rate for
                            arbitrage.                                                   purchased currency
                                                                                         was lower/(higher)
                                                                                       - Currency amount was
                                                                                         higher/(lower)
   

      As at 31 December 2016, 31 December 2015 and 30 June 2016
   
      Financial             Valuation technique             Inputs                     Inter-relationship
      instrument                                                                       between inputs and
                                                                                       fair value
                                                                                       measurement
      Interest rate swaps   The fair value is based on      - 3 month Swiss            The estimated fair value
                            discounting future cash           Libor/Euribor            would increase/(decrease) if:
                            flows using the interest rate   - Swap rate                
                            swap curves plus the            - Notional loan value      - 3 month Swiss
                            historic charged credit         - Fixed rate of interest     libor/Euribor was
                            margin at the dates when                                     higher/(lower)
                            the cash flows will take                                   - Swap rate was
                            place.                                                       lower/(higher)
                                                                                       - Notional loan was
                                                                                         lower/(higher)
                                                                                       - Fixed rate of interest
                                                                                         was lower/(higher)
   
  
      As at 31 December 2015  
        
      Level 2 financial       Valuation technique             Inputs                        Inter-relationship
      liability                                                                             between inputs and fair
                                                                                            value measurement
            
      Attacq financial        Fair value is based on the      NAV per share                 The estimated fair value
      liability               fund's reported net asset       31 December 2015 - EUR2 236   would increase/
                              value ("NAV").                                                (decrease) if:
                                                               
                              The NAV of the fund is                                      - NAV per share was
                              valued by the fund's            All inputs used by the        higher/(lower)
                              investment manager as           fund's investment  
                              follows:                        manager in determining
                              -    Investments in             the fund's NAV are
                                   equities by the Karoo      observable with the
                                   Fund are valued at         exception of a convertible
                                   quoted prices in active    debenture that is not
                                   markets                    significant to the input for
                              -    Where there is not an      fair valuation.
                                   active market, fair
                                   value is based on
                                   broker quotes on
                                   similar contracts that
                                   are traded in an active
                                   market and the quotes
                                   reflect the actual
                                   transactions in similar
                                   instruments
         
      Level 3 financial instruments

      Valuation process of level 3 financial liabilities
      The fair value of level 3 financial liabilities in respect of New Waverley Advisers Limited and New Waverley
      Holdings Limited is calculated annually. The investment property valuation process is part of this valuation process
      as a consequence of the financial liability to New Waverley Advisors Limited and New Waverley Holdings Limited
      being derived from the fair value of New Waverley investment property. The fair value of the financial liability is
      calculated and based on the fair value of the New Waverley investment property. The fair value is then reviewed
      by the finance manager and chief financial officer before being reviewed by the Audit Committee.
      
      Valuation techniques and unobservable inputs
      The following table shows the valuation technique used to measure financial instruments held at fair value as well
      as the significant unobservable inputs for level 3 financial liabilities:
      
      As at 31 December 2016, 30 June 2016 and 31 December 2015
      
      Level 3 financial            Valuation technique        Significant                 Inter-relationship
      liability                                               unobservable inputs         between significant
                                                                                          unobservable inputs and
                                                                                          fair value measurement

      Development                  Discounted cash flows:     - Expected market           The estimated fair value
      management fee               Fair value is based on       rental growth             would increase/(decrease)
                                   the profitability of the   - Occupancy rate            if:
                                   New Waverley               - Reversionary discount      -   Expected market                                                                            
      and                          development. See note        rate                           rental growth was                                                         
                                   8, for the valuation       - Risk adjusted                  higher/(lower)                                                                                         
                                   technique in respect of      discount rates             -   The occupancy rate    
                                   New Waverley.              - Costs to complete              was higher/(lower)
      Priority participating                                  - Completion dates           -   The reversionary
                                                                                               discount rate was
      profit dividend                                                                          lower/(higher)
                                                                                           -   The risk adjusted
                                                                                               discount rate was
                                                                                               lower/(higher)
                                                                                           -   The costs to complete
                                                                                               was lower/(higher)
                                                                                           -   Completion date was
                                                                                               earlier/(later)
      
      As at 30 June 2016 and 31 December 2015
      
      Level 3 financial          Valuation technique          Significant                 Inter-relationship between
      liability                                               unobservable inputs         significant unobservable
                                                                                          inputs and fair value
                                                                                          measurement
               
      Santon financial           Discounted cash flows:       - Risk adjusted             The estimated fair value
      liability                                                 discount rate             would increase/(decrease)
                                 Fair value is based on       - Contractual amount        if:
                                 the contractual amount.
                                                                                          -   The risk adjusted
                                                                                              discount rate was
                                                                                              lower/(higher)
                                                                                          -   The contractual rate
                                                                                              was higher/(lower)
      
      A sensitivity analysis is available in the group's 2016 integrated annual report for the development management
      fee and priority participating profit dividend.
      
  14. Interest bearing borrowings
      
      The carrying amount of the group's interest bearing borrowings is as follows:
      
                                                                                                               Audited
                                                                            As at               As at            As at
                                                                      31 December         31 December          30 June
      Euro                                                                   2016                2015             2016
      Non-current - secured bank loans
      UK investment property                                           31 691 617                   -                -
      German investment property                                       77 943 361           5 620 509       34 833 306
      Swiss investment property                                         8 313 288           8 599 121        8 394 525
                                                                      117 948 266          14 219 630       43 227 831
      Current
      UK investment property                                            1 530 080                   -                -
      German investment property                                        1 903 083             391 917          991 886
      Swiss investment property                                           363 168             359 931          358 878
                                                                        3 796 331             751 848        1 350 764
                                                                      121 744 597          14 971 478       44 578 595
      
      Interest bearing borrowings are held at amortised cost, accordingly interest on interest bearing borrowings
      drawn down to fund development property is capitalised. All other interest is charged to profit or loss at the
      effective interest rate. These liabilities have been classified as amortised cost because the group does not hold
      them for trading purposes.
      
      Reconciliation of the group's carrying amount of interest bearing borrowings:

                                                                                                               Audited
                                                                         As at                 As at             As at
                                                                   31 December           31 December           30 June
      Euro                                                                2016                  2015              2016
      Opening balance                                               44 578 595            15 747 889        15 747 889
      Drawn down                                                    80 430 900                     -        30 550 000
      Capitalised transaction costs                                (1 456 967)              (30 135)         (412 345)
      Amortisation                                                 (1 135 900)             (375 923)         (922 638)
      Finance costs                                                    840 195               303 529           770 243
      General borrowings capitalised                                   228 209                     -            28 806
      Interest paid                                                  (842 927)             (300 072)         (827 855)
      Foreign currency translation difference                        (897 508)             (373 810)         (355 505)
                                                                   121 744 597            14 971 478        44 578 595

      Interest from general borrowings of EUR228 209 was capitalised to investment property during the period
      (December 2015: nil; June 2016: EUR28 806), see note 8 at a capitalisation rate of 2,11%.

  15. Trade and other payables

      The group's trade and other payables comprise:


                                                                           As at 31        As at 31           Audited
                                                                           December        December             As at
      Euro                                                                     2016            2015      30 June 2016
      Construction payables                                                 707 600         796 643         3 881 404
      Trade payables                                                      6 152 030       2 746 407         3 382 531
      Deferred income                                                     1 373 463         716 879           425 202
      Current taxation payable                                              593 793         460 289           373 755
      VAT payable                                                         1 233 088         495 459           233 305
                                                                         10 059 974       5 215 677         8 296 197

      Construction payables relate to amounts owed to developers from the construction of the group's development
      properties.

  16. Operating segments
  
      The group's chief operating decision maker is determined to be the executive management team. During the
      prior period the segmentation to monitor group performance was refined. Performance is now considered as
      follows:
 
      Reportable segment                                  Description
      Income-generating property                          Property that is currently producing income and held
                                                          for the purpose of earning a yield. There may be further
                                                          asset management angles on these properties, which
                                                          could further enhance income returns.
 
      Development property                                Property that is being developed in order to create
                                                          income producing property held for the purpose of
                                                          earning a better yield than by acquiring standing
                                                          property.
 
      Land bank                                           Land plots held for schemes that have not yet
                                                          commenced, residential developments and other real
                                                          estate equity investments.
 
      Corporate                                           Consists of the cash holdings outside of the other
                                                          reporting segments and goodwill on the acquisition of
                                                          MAS Prop.

      The 31 December 2015 comparative period has been reclassified to aid comparability with segmental reporting
      in the current period and the 30 June 2016 year end.
      
      The executive management team analyses the performance and position of the group by aggregating the group
      into the four reportable segments. These reportable segments have different risk profiles and generate
      revenue/income from different sources, accordingly, it allows the executive management team to make better
      informed strategic decisions for the group. Management reports are prepared and reviewed on a quarterly basis
      by the executive management team to facilitate this process.
      
      31 December 2016
      
      Euro                               Income-generating property       Development property         Land bank      Corporate            Total
      Statement of comprehensive income       
      External revenue                                    12 379 928                      1 823           227 382              -      12 609 133
      Segment profit/(loss) before tax                    10 240 594                    161 924       (4 488 483)    (4 738 051)       1 175 984
      Taxation                                             (499 520)                          5               175        (1 618)       (500 958)
      Interest income                                            157                          -                17         39 353          39 527
      Interest cost                                        (840 545)                          -                 -        (1 111)       (841 656)
      Depreciation                                                 -                          -                 -       (13 504)        (13 504)
      Other material non-cash items       
           - Fair value adjustments                        1 150 391                    126 544       (4 542 555)              -     (3 265 620)
           - Foreign exchange                               (57 672)                         22                 -    (2 850 427)     (2 908 077)
      Statement of financial position       
      Segment non-current assets                         427 871 884                 27 646 524        40 933 425     23 073 301     519 525 134
           - Investment in equity accounted       
      investee                                                     -                 20 057 968                 -              -      20 057 968
      Segment current assets                              37 765 491                    106 723         4 460 800      9 233 614      51 566 628
      Segment non-current liabilities                    123 704 609                  2 083 575                 -         40 410     125 828 594
      Segment current liabilities                         13 192 414                    712 180           592 926        780 703      15 278 223
          
          
      31 December 2015 Restated*    
      Euro                                  Income-generating property     Development property         Land bank       Corporate          Total
      Statement of comprehensive income        
      External revenue                                       7 073 749                    3 039           248 764         102 549      7 428 101
      Segment profit/(loss) before tax                       3 101 796                  (5 407)            33 228     (1 138 161)      1 991 456
      Taxation                                               (643 194)                        -                 -         (1 605)      (644 799)
      Interest income                                               42                        1                42         318 628        318 713
      Interest cost                                          (303 529)                        -                 -               -      (303 529)
      Depreciation                                                   -                        -                 -         (2 990)        (2 990)
      Other material non-cash items        
        - Fair value adjustments                           (2 121 548)                        -                 -       4 499 586      2 378 038
        - Exchange differences                                   (527)                  (2 888)                 -     (3 050 261)    (3 053 676)
      Statement of financial position         
      Segment non-current assets                           170 820 083               60 614 569        44 826 759      43 002 879    319 264 290
      Segment current assets                                16 228 343                  544 064        34 655 977      41 110 611     92 538 995
      Segment non-current liabilities                       18 242 964                3 820 803                 -               -     22 063 767
      Segment current liabilities                            7 584 154                    5 352         4 032 094      29 709 349     41 330 949
  
      *The December 2015 figures have been restated following the reclassification of prior year expenses in the condensed consolidated interim 
       statement of profit or loss and the reclassification of certain items in the condensed consolidated statement of financial position, 
       see note 19.

      30 June 2016 (audited)
      
      Euro                                  Income-generating property     Development property         Land bank       Corporate          Total
      Statement of comprehensive income   
      External revenue                                      15 370 255                   11 090           709 469         160 207     16 251 021
      Segment profit/(loss) before tax                       6 221 242              (1 007 358)         4 375 190     (7 262 517)      2 326 557
      Interest income                                                -                       57           383 370           9 374        392 801
      Interest cost                                          (770 243)                        -                 -         (3 522)      (773 765)
      Depreciation                                                   -                        -                 -        (35 535)       (35 535)
      Taxation                                               (828 525)                        -                 -               -      (828 525)
      Other material non-cash items   
        -   Fair value adjustments                         (1 478 331)                (995 471)         8 905 521               -      6 431 719
        -   Exchange differences                              (93 783)                      196       (5 835 877)     (6 983 746)   (12 913 210)
       
      Statement of financial position  
      Segment non-current assets                           243 509 575               43 798 848        42 003 549      23 901 016    353 212 988
        -   Investment in equity accounted    
      investee                                                       -               19 991 716                 -               -     19 991 716
      Segment current assets                                19 124 497                1 479 407        52 750 489      41 036 973    114 391 366
      Segment non-current liabilities                       47 500 067                2 367 448                 -               -     49 867 515
      Segment current liabilities                            8 051 526                4 813 814         3 683 792         342 755     16 891 887
 
      Where assets/liabilities and income/expense are shared by reportable segments they are allocated to each respective reportable segment based 
      on a rational driver of use or ownership of the assets/liabilities or income/expense.

      Geographical information
      The group invests in investment property in western Europe and CEE. The geographical information below analyses the group's revenue and 
      non-current assets by the company's country of domicile and the jurisdiction in which the underlying assets are held: UK; Germany; Switzerland; 
      Poland; and Romania.
       
      Revenue
       
                                                                                                      Six-month       Six-month         Audited
                                                                                                   period ended    period ended      Year ended
                                                                                                    31 December     31 December         30 June
      Euro                                                                                                 2016            2015            2016
      BVI                                                                                                     -               -               -
      UK                                                                                              3 208 219       2 584 456       5 674 973
      Germany                                                                                         8 075 817       4 220 335       9 332 689
      Switzerland                                                                                       619 086         623 310       1 243 359
      Poland                                                                                            706 011               -               -
                                                                                                     12 609 133       7 428 101      16 251 021
                                                                                   
      Non-current assets                                                                            
                                                                                                                                        Audited
                                                                                                          As at           As at           As at
                                                                                                    31 December     31 December         30 June
      Euro                                                                                                 2016            2015            2016
      BVI                                                                                                     -               -               -
      UK                                                                                            170 476 751     184 903 550     164 250 144
      Germany                                                                                       215 437 599     114 038 482     149 481 292
      Switzerland                                                                                    19 722 816      20 322 258      19 489 836
      Romania                                                                                        20 057 968               -      19 991 716
      Poland                                                                                         93 830 000               -               -
                                                                                                    519 525 134     319 264 290     353 212 988

  17. Earnings per share and diluted earnings per share

      Basic and diluted earnings per share
      The calculation of basic and diluted earnings per share has been based on the following profit attributable to
      ordinary shareholders and the weighted-average number of ordinary shares outstanding.
  
      Profit attributable to ordinary shareholders

                                                                                             Six-month           Six-month              Audited
                                                                                          period ended        period ended           Year ended
                                                                                           31 December         31 December              30 June
      Euro                                                                                        2016                2015                 2016
      (Loss)/profit for the period/year attributable to the                          
      owners of the group                                                                    (397 549)           1 346 657            1 498 032
                         
      Weighted-average number of ordinary shares                         
                         
                                                                                             Six-month           Six-month              Audited
                                                                                          period ended        period ended           Year ended
                                                                                           31 December         31 December              30 June
      Euro                                                                                        2016                2015                 2016
      Issued ordinary shares                                                               348 625 219         291 787 889          291 787 889
      Effect of shares issued for capital raise                                             21 599 777                   -            5 871 764
      Effect of shares issued related to the settlement of                         
      the Attacq liability                                                                           -                   -            6 465 128
      Effect of shares issued for scrip distributions                                        2 025 750             728 891            2 281 979
      Weighted-average number of ordinary shares                                           372 250 746         292 516 780          306 406 760

      Basic earnings per share

                                                                                             Six-month            Six-month             Audited
                                                                                          period ended         period ended          Year ended
                                                                                           31 December          31 December             30 June
      Euro                                                                                        2016                 2015                2016
      (Loss)/profit attributable to ordinary                     
      shareholders                                                                           (397 549)            1 346 657           1 498 032
      Weighted-average number of ordinary shares                                           372 250 746          292 516 780         306 406 760
      Basic earnings per share (euro cents)                                                     (0,11)                 0,46                0,49
                     
      Diluted earnings per share                     
      There are no dilutionary investments in issue and therefore basic earnings and diluted earnings are the same.
      
      Headline earnings and headline earnings per share
      Headline earnings and headline earnings per share was as follows:

                                                                                                                  Six-month period ended
                                                                                                                       31 December 2016
      Euro                                                                                                             Gross               Net
      Loss for the period                                                                                          (397 549)         (397 549)
      Adjusted for:                      
      Revaluation of investment property                                                                           (598 369)       (1 006 867)
      Headline earnings                                                                                            (995 918)       (1 404 416)
      Weighted-average number of ordinary shares                                                                 372 250 746       372 250 746
      Headline earnings per share (euro cents)                                                                        (0,27)            (0,38)
                          
                                                                                                                  Six-month period ended
                                                                                                                       31 December 2015
      Euro                                                                                                             Gross               Net
      Profit for the period                                                                                        1 346 657         1 346 657
      Adjusted for:                       
      Revaluation of investment property                                                                           2 074 710         1 833 424
      Headline earnings                                                                                            3 421 367         3 180 081
      Weighted-average number of ordinary shares                                                                 292 516 780       292 516 780
      Headline earnings per share (euro cents)                                                                          1,17              1,09
                          
                                                                                                                          Audited
                                                                                                                         Year ended
                                                                                                                        30 June 2016
      Euro                                                                                                             Gross               Net
      Profit for the year                                                                                          1 498 032         1 498 032
      Adjusted for:                      
      Revaluation of investment property                                                                           3 088 606         3 274 432
      Headline earnings                                                                                            4 586 638         4 772 464
      Weighted-average number of ordinary shares                                                                 306 406 760       306 406 760
      Headline earnings per share (euro cents)                                                                          1,50              1,56
                          
      There are no dilutionary instruments in issue and therefore headline earnings and diluted headline earnings are
      the same.
      
      The JSE Listings Requirements require the calculation of headline earnings and diluted headline earnings per share
      and the disclosure of a detailed reconciliation of headline earnings to the earnings numbers used in the calculation
      of basic earnings per share, as required by IAS 33 - Earnings per Share. Disclosure of headline earnings is not an
      IFRS requirement. The directors do not use headline earnings or headline earnings per share in their analysis of
      the group's performance, and do not consider it to be a useful or relevant metric for the group. The directors
      make no reference to headline earnings or headline earnings per share in their commentaries, instead, the
      directors use distributable earnings as a more relevant measure.

  18. Related parties
  
      Parent and ultimate controlling party
      The group has no ultimate controlling party, but is controlled by its ordinary shareholders in aggregate.
  
      Related party transactions
  
      Artisan Real Estate Investors Limited ("Artisan")
      Artisan is a real estate management company over which the directors of MAS have significant influence. 
      An associate of Malcolm Levy also has an indirect beneficial interest.
  
      During the period, Artisan on-charged expenses of EUR6 179 (December 2015: EUR30 120; June 2016: EUR51 962 income).
      At the end of the reporting period there was EUR2 920 payable (December 2015: EUR7 494 receivable; June 2016: EUR41
      255 receivable) to Artisan.
  
      New Waverley Advisers Limited ("NW Advisers")
      NW Advisers is a real estate developer and is a 100% owned subsidiary of Artisan, as such is controlled by Artisan
      which is a related party of the group.
  
      During the period, NW Advisers on-charged expenses in relation to the development of New Waverley which
      amounted to EUR12 049 068 (December 2015: EUR17 790 498; June 2016: EUR21 117 356). These have been capitalised as
      part of the New Waverley development within investment property. On-charges were charged to the group in
      accordance with the development management agreement, were on an arm's length basis, and relate to the
      construction costs of the development.
  
      In addition, the group has provided for a development management fee of EUR2 083 575 (December 2015: EUR1 528
      321; June 2016: EUR2 367 448). This fee is in accordance with the development management agreement and is on an
      arm's length basis.
  
      New Waverley Holdings Limited ("NW Holdings")
      NW Holdings is a real estate developer and is a 100% owned subsidiary of Artisan. As such it is controlled by
      Artisan which is a related party of the group.
  
      Corona Real Estate Partners Limited ("Corona")
      Corona is a real estate management company with six staff members and is owned 100% by Jonathan Knight who
      is the Chief Investment Officer of the group.
  
      During the period the group used the professional services of Corona and incurred expenses of EUR486 539
      (December 2015: EUR464 726; June 2016: EUR850 180), which were charged to the group on an arm's length basis. At
      the end of the reporting period nil (December 2015: nil; June 2016: EUR41 984) was due from Corona.

      Related party transactions
                                                            Income/(expenses)
                                                        for the period/year ended                Capitalised for the period/year ended        Balances receivable/(payable) as at
                                                                                    Audited                                    Audited                                          Audited
                                                 31 December    31 December         30 June  31 December     31 December       30 June     31 December     31 December          30 June
      Euro                                              2016           2015            2016         2016            2015          2016            2016            2015             2016
      New Waverley Advisers Limited  
      -    Oncharged development costs                     -              -               -   12 049 068      17 790 498    27 117 356        (90 587)       (127 164)      (1 069 607)
      -    Development management fee (1)            913 946              -     (1 092 047)            -               -             -     (2 083 575)     (1 528 321)      (2 367 448)
                                                     913 946              -     (1 092 047)   12 049 068      17 790 498    27 117 356     (2 174 162)     (1 655 485)      (3 437 055)
      New Waverley Holdings Limited   
      -    Development profit participation                -              -       2 200 445            -               -             -               -     (2 292 482)                -
           fee1       
                                                           -              -       2 200 445            -               -             -               -     (2 292 482)                -
      Corona Real Estate Partners Limited 
      -    Investment advisory                     (486 539)      (464 726)       (850 180)       74 861               -             -               -               -         (41 984)
                                                   (486 539)      (464 726)       (850 180)       74 861               -             -               -               -         (41 984)
      Attacq 
      -    Karoo Fund financial liability                  -    (3 601 074)     (4 032 584)            -               -             -               -    (29 112 780)                -
      -    Interest income from loan                       -        134 803         383 263            -               -             -               -      19 056 917                -
           receivable  
                                                           -    (3 466 271)     (3 649 321)            -               -             -               -    (10 055 863)                -
      Artisan Real Estate Investors Limited  
      -    Oncharged administrative                  (6 179)       (30 120)          51 962            -               -             -         (2 920)           7 494           41 255
           expenses  
                                                     (6 179)       (30 120)          51 962            -               -             -         (2 920)           7 494           41 255
                                                     421 228    (3 961 117)     (3 339 141)   12 123 929      17 790 498    27 117 356     (2 177 082)    (13 996 336)      (3 437 784)
     
      All related party balances are unsecured and are repayable on demand.
      
      (1) Differences between the income/(expense) and the corresponding receivable/(payable) related to foreign exchange movements recognised in OCI.
      
      Transactions with key management

      Six-months ended 31 December 2016
                                                                           Short-term     Long-term
      Euro            Role          Basic salary        Benefits            incentive     incentive         Total
      Lukas Nakos     CEO                 95 120               -              190 240             -       285 360
      Malcolm         CFO                 89 175               -              178 350             -       267 525
      Levy
      Jonathan        CIO                 35 670               -               89 176             -       124 846
      Knight    
      Ron Spencer     Chairman            15 000               -                    -             -        15 000
      Gideon          NED                 13 750               -                    -             -        13 750
      Oosthuizen     
      Jaco Jansen     NED                 13 750               -                    -             -        13 750
      Morne           NED                 10 000               -                    -             -        10 000
      Wilken     
      Pierre          NED                 10 000               -                    -             -        10 000
      Goosen    
                                         282 465               -              457 766             -       740 231
    
      Six-months ended 31 December 2015
                                                                           Short-term     Long-term
      Euro           Role          Basic salary         Benefits            incentive     incentive         Total
      Lukas Nakos    CEO                110 728                -              166 092       166 092       442 912
      Malcolm        CFO                103 808                -              155 711       155 711       415 230
      Levy
      Jonathan       CIO                 41 523                -               77 856        77 856       197 235
      Knight 
      Ron Spencer    Chairman            15 000                -                    -             -        15 000
      Gideon         NED                 13 750                -                    -             -        13 750
      Oosthuize
      Jaco Jansen    NED                 13 750                -                    -             -        13 750
      Morne          NED                 10 000                -                    -             -        10 000
      Wilke
      Pierre         NED                 10 000                -                    -             -        10 000
      Goose
                                        318 559                -              399 659       399 659     1 117 877
    
      Year ended 30 June 2016 (audited)
    
                                                                           Short-term     Long-term
      Euro            Role         Basic salary         Benefits            incentive     incentive         Total
      Lukas Nakos     CEO               209 248                -              166 092       166 092       541 432
      Malcolm         CFO               196 170                -              155 711       155 711       507 592
      Levy 
      Jonathan        CIO                78 468                -               77 856        77 856       234 180
      Knight 
      Ron Spencer     Chairman           30 000                -                    -             -        30 000
      Gideon          NED                27 500                -                    -             -        27 500
      Oosthuizen    
      Jaco Jansen     NED                27 500                -                    -             -        27 500
      Morne           NED                20 000                -                    -             -        20 000
      Wilken    
      Pierre          NED                20 000                -                    -             -        20 000
      Goosen 
                                        608 886                -              399 659       399 659     1 408 204
    
      The directors haven't received any benefits other than as disclosed above.

  19. Reclassification

      The group has reclassified some prior year expenses in the condensed consolidated statement of profit or loss and
      some items in the condensed consolidated statement of financial position to aid comparability with the classifications
      in the current period.
 
      There is no impact of the reclassifications on the prior period profit. The impact of the reclassification on the
      condensed consolidated statement of profit or loss and the condensed consolidated statement of financial position is
      as follows:
 
      Condensed consolidated statement of profit or loss
 
      Six-month period ended 31 December 2015

                                                                          Impact of reclassification
                                                             As previously
      Euro                                                       reported         Adjustment              As reclassified
      Other income                                                145 964          (145 964)                            -
      Service charge                                              695 687          (695 687)                            -
      Service charges and other recoveries                              -            841 651                      841 651
                                                                  841 651                  -                      841 651

      Condensed consolidated statement of financial position

      As at 31 December 2015

                                                                          Impact of reclassification
                                                             As previously
      Euro                                                        reported         Adjustment              As reclassified
      Non-current assets
      Investments                                               15 910 475       (15 910 475)                            -
      Financial investments                                              -         15 910 475                   15 910 475
      Current assets   
      Investments                                               34 322 404       (34 322 404)                            -
      Financial investments                                              -         34 322 404                   34 322 404
      Current liabilities   
      Deferred consideration                                     2 384 620        (2 384 620)                            -
      Financial instruments                                     32 886 514          2 384 620                   35 271 134
                                                                85 504 013                  -                   85 504 013

      APPENDIX 1 - MANAGEMENT ACCOUNTS

      Basis of preparation
      In order to provide information of relevance to investors and a meaningful basis of comparison for users of the financial
      statements, unaudited management accounts have been prepared and are presented below, in conjunction with the condensed
      consolidated financial statements. The directors consider that the management accounts are useful in interpreting the performance
      of the group. In terms of section 8.15 of the JSE Listings Requirements, the management accounts constitute pro forma financial
      information and the company is therefore required to comply with the requirement of sections 8.16 to 8.34 of the JSE Listings
      Requirements on pro forma financial information. In accordance with section 8.19, the pro forma financial information is to be
      presented in columnar format showing separately the unadjusted financial information, the pro forma adjustments and the pro
      forma financial information, see table below.

      The management accounts diverge from IFRS as they account for associates and joint ventures using the proportionate
      consolidation method, as opposed to the equity accounting method embodied in the condensed consolidated financial statements
      and in accordance with IFRS.

      Directors' responsibility
      The preparation of the management accounts is the sole responsibility of the directors and has been prepared in accordance with
      the basis stated, for illustrative purposes only, to show the impact on the distribution income statement and the summarised
      statement of financial position. Due to their nature the management accounts may not fairly present the results of the group and
      the financial position.

      Reconciliation of unadjusted financial information to pro forma financial information

      Distribution income statement

                                                                                                                  Six-month           Six-month
                                                                                                               period ended        period ended           Year ended
                                                                                                                31 December         31 December              30 June
      Euro                                                                                                             2016                2015                 2016
                                        
      Rental income                                                                                              10 959 343           6 586 450           14 203 699
      Net service charges and property operating expenses                                                         (899 648)         (1 064 227)          (1 989 426)
      - Service charges and other recoveries                                                                      1 508 587             841 651            2 047 322
      - Service charges and other property operating expenses                                                   (2 408 235)         (1 905 878)          (4 036 748)
      Net rental income                                                                                          10 059 695           5 522 223           12 214 273
      Other income                                                                                                        -                   -            1 717 829
      Corporate expenses                                                                                        (1 895 966)         (1 740 285)          (3 203 472)
      Net operating income                                                                                        8 163 729           3 781 938           10 728 630
      Net finance costs                                                                                           (669 627)              15 184            (355 990)
        - Finance income                                                                                            114 179             318 713              433 132
        - Finance costs                                                                                         (1 011 661)           (303 529)            (817 928)
        - Interest capitalised on development and land bank                                                         227 855                   -               28 806
      property                                    
      Current taxation                                                                                            (424 496)           (644 799)            (684 749)
      Direct investment result                                                                                    7 069 606           3 152 323            9 687 891
      Fair value adjustments                                                                                    (4 303 482)           2 378 038            6 431 719
      Investment expenses                                                                                         (183 040)         (1 130 028)          (2 202 144)
      Other income                                                                                                        -                   -              637 552
      Exchange differences                                                                                      (2 904 171)         (3 053 676)         (12 913 210)
      Deferred taxation                                                                                            (76 462)                   -            (143 776)
      Indirect investment result                                                                                (7 467 155)         (1 805 666)          (8 189 859)
      
      IFRS net (loss)/profit for the period/year attributable to 
      owners of the group                                                                                         (397 549)           1 346 657           1 498 032
                                     
      Earnings per share                                                                                             (0,11)                0,46                0,49
      Diluted earnings per share                                                                                     (0,11)                0,46                0,49
                                     
                                                                                                                 Six-month             Six-month
                                                                                                              period ended          period ended         Year ended
                                                                                                               31 December           31 December            30 June
      Euro                                                                                                            2016                  2015               2016
                                         
      Direct investment result                                                                                   7 069 606             3 152 323          9 687 891
      Other specific adjustments                                                                                 1 372 699            (844 123)*          1 698 750
      Adjustment relating to shares issued during period/year                                                      188 987                31 425          1 568 915
      Distributable earnings                                                                                     8 631 292             2 339 625         12 955 556
      Distribution from reserves                                                                                 1 492 238             4 355 077          2 750 000
      Total distribution                                                                                        10 123 530             6 694 702         15 705 556
      Closing number of shares                                                                                 380 583 836           294 455 630        348 625 219
      Final distribution per share (euro cents)                                                                          -                     -               2,23
      Interim distribution per share (euro cents)                                                                     2,66                  2,27               2,27
      Total distribution per share (euro cents)                                                                       2,66                  2,27               4,50
   
      The group uses distribution per share as its relevant unit of measure for trading statement purposes.
      
      * In order to align with industry peers, the board of directors has refined the methodology for commuting distributable earnings,
        upon which the level of distribution is based. In the prior year the difference between the core income methodology used and the
        updated direct investment result methodology amounts to (844 123). This has been included in other specific adjustments to
        reconcile the distributable earnings to core income in the previous year.
      
      Summarised statement of financial position
                                                                                                                                 As at          As at         As at
                                                                                                                           31 December    31 December       30 June
      Euro                                                                                                                        2016           2015          2016
      Investment property                                                                                                  466 391 848    275 863 118   311 613 772
        - Income-generating property                                                                                       406 437 212    169 911 602   242 625 172
        - Development property                                                                                              15 665 601     59 081 009    24 907 797
        - Land bank                                                                                                         44 289 035     46 870 507    44 080 803
      Financial investments                                                                                                 21 875 305     50 232 879    51 614 068
      Intangible assets                                                                                                     24 499 280     28 449 119    25 262 818
      Deferred taxation assets                                                                                               1 047 599        908 482       721 292
      Trade and other receivables                                                                                           23 174 544      5 118 880    11 313 808
      Other assets                                                                                                             230 277     19 233 763       241 083
      Cash and cash equivalents                                                                                             32 210 809     31 997 044    66 946 902
      Total assets                                                                                                         569 429 662    411 803 285   467 713 743
      Shareholders' equity                                                                                                 428 912 350    348 408 569   400 844 952
      Interest bearing borrowings                                                                                          121 744 597     14 971 478    44 578 595
      Financial instruments                                                                                                  7 531 949     41 684 646    12 543 033
      Deferred taxation liabilities                                                                                          1 652 903      1 430 625     1 242 741
      Trade and other payables                                                                                               9 470 469      5 215 677     8 405 586
      Other liabilities                                                                                                        117 394         92 290        98 836
      Total liabilities                                                                                                    140 517 312     63 394 716    66 868 791
      Total shareholders' equity and liabilities                                                                           569 429 662    411 803 285   467 713 743
      Actual number of ordinary shares in issue                                                                            380 583 836    294 455 630   348 625 219
      NAV per share (euro cents)                                                                                                 112,7          118,3         115,0
      Adjusted NAV per share (euro cents)                                                                                        112,9          118,5         115,1
     

      Distribution income statement
                                                                                                                                                         MANAGEMENT
                                                      IFRS                                ADJUSTMENTS                                                      ACCOUNTS
                                                 Six-month
                                              period ended                                             Equity                                      Six-month period
                                               31 December            Reclassification              accounted                                                 ended
      Euro                                            2016                         (1)            investee(2)          Nova Park(3)                31 December 2016
                                                                                          
      Rental income                             11 067 791                          -                       -             (108 448)                      10 959 343
      Service charges and other recoveries       1 541 342                          -                       -              (32 755)                       1 508 587
      Revenue                                   12 609 133                          -                       -             (141 203)                      12 467 930
      Service charges and other property       (2 421 484)                          -                       -                13 249                     (2 408 235)
      operating expenses   
      Net rental income                         10 187 649                          -                       -             (127 954)                      10 059 695
      Other income                                       -                          -                       -                     -                               -
      Corporate expenses                       (1 885 474)                          -                (15 676)                 5 184                     (1 895 966)
      Investment expenses                        (186 519)                    186 519                       -                     -                               -
      Net operating income                       8 115 656                    186 519                (15 676)             (122 770)                       8 163 729
      Fair value adjustments                   (3 265 620)                  3 265 620                       -                     -                               -
      Exchange differences                     (2 908 077)                  2 908 077                       -                     -                               -
      Share of profit/(loss) from equity            36 154                          -                (36 154)                     -                               -
      accounted investee, net of taxation
      Profit before finance income/costs         1 978 113                  6 360 216                (51 830)             (122 770)                       8 163 729
      Finance income                                39 527                          -                 (6 020)                80 672                         114 179
      Finance costs                              (841 656)                          -               (170 005)                     -                     (1 011 661)
      Interest capitalised on development                -                          -                 227 855                     -                         227 855
      propert
      Profit before taxation                     1 175 984                  6 360 216                       -              (42 098)                       7 494 102
      Taxation                                   (500 958)                     76 462                       -                     -                       (424 496)
      Profit for period/year                       675 026                  6 436 678                       -              (42 098)                       7 069 606
      DIRECT INVESTMENT RESULT                     675 026                  6 436 678                       -              (42 098)                       7 069 606
      Fair value adjustments                             -                (3 265 620)                       -           (1 037 862)                     (4 303 482)
      Investment expenses                                -                  (186,519)                       -                 3 479                       (183,040)
      Exchange differences                               -                (2 908 077)                       -                 3 906                     (2 904 171)
      Deferred taxation                                  -                   (76 462)                       -                     -                        (76 462)
      INDIRECT INVESTMENT                                -                (6 436 678)                       -           (1 030 477)                     (7 467 155)
      RESULT
      (1) A number of items in the condensed consolidated interim statement of profit or loss have been reclassified in the management accounts to provide information 
          of relevance to investors and a meaningful basis of comparison by classifying profit for the year as a direct or indirect investment result. The direct result 
          represents the realised result attributable to the generating of gross rental income. The indirect relates to all other elements of profit or loss: unrealised 
          fair value movements, deferred taxation, exchange differences and costs not attributable to gross rental income generation.
      (2) Proportional consolidation has been used as the basis of consolidation of the group's equity accounted investees in the manage ment accounts.
      (3) Proportional consolidation has been used as the basis of consolidation for the group's 80% ownership of Nova Park.
      
      Summarised statement of financial position
                                                             IFRS                                ADJUSTMENTS                                              MANAGEMEN
                                                            As at                                   Equity                                               T ACCOUNTS
                                                                                                                                                              As at
                                                      31 December      Reclassification             accounted                                      31 December 2016
                                                                               
      Euro                                                   2016                   (1)            investee(2)            Nova Park(3)
      Non-current assets
      Intangible assets                                24 499 280                     -                      -                       -                   24 499 280
      Investment property                             473 690 010             3 393 501              8 074 337            (18 766 000)                  466 391 848
      Investment in equity accounted investee          20 057 968                     -           (20 057 968)                       -                            -
      Property, plant and equipment                       230 277                     -                      -                       -                      230 277
      Deferred taxation asset                           1 047 599                     -                      -                       -                    1 047 599
      Total non-current assets                        519 525 134             3 393 501           (11 983 631)            (18 766 000)                  492 169 004
      Current assets       
      Financial investments                                     -                     -                      -              21 875 305                   21 875 305
      Trade and other receivables                      27 378 402                     -                 70 773             (4 274 631)                   23 174 544
      Cash and cash equivalents                        20 794 725                     -             12 207 673               (791 589)                   32 210 809
      Assets held for sale                              3 393 501           (3 393 501)                      -                       -                            -
      Total current assets                             51 566 628           (3 393 501)             12 278 446              16 809 085                   77 260 658
      Total assets                                    571 091 762                     -                294 815             (1 956 915)                  569 429 662
      Equity
      Share capital                                   410 113 075                     -                       -                      -                  410 113 075
      Retained earnings                                26 753 444                     -                       -                      -                   26 753 444
      Foreign currency translation reserve            (7 954 169)                     -                       -                      -                  (7 954 169)
      Equity attributable to owners of the            428 912 350                     -                       -                      -                  428 912 350
      group         
      Non-controlling interest                          1 072 595                     -                       -            (1 072 595)                            -
      Total Equity                                    429 984 945                     -                       -            (1 072 595)                  428 912 350
      Non-current liabilities
      Interest bearing borrowings                     117 948 266             3 796 331                       -                      -                  121 744 597
      Financial instruments                             6 187 015             1 344 932                       -                      -                    7 531 947
      Provisions                                           40 410                76 986                       -                      -                      117 396
      Deferred taxation liability                       1 652 903                     -                       -                      -                    1 652 903
      Total non-current liabilities                   125 828 594             5 218 249                       -                      -                  131 046 843
      Current liabilities
      Interest bearing borrowings                       3 796 331           (3 796 331)                       -                      -                            -
      Financial instruments                             1 344 932           (1 344 932)                       -                      -                            -
      Trade and other payables                         10 059 974                     -                 294 815              (884 320)                    9 470 469
      Provisions                                           76 986              (76 986)                       -                      -                            -
      Total current liabilities                        15 278 223           (5 218 249)                 294 815              (884 320)                    9 470 469
      Total liabilities                               141 106 817                     )       
                                                                                      -                 294 815              (884 320)                  140 517 312
      Total shareholder equity and liabilities        571 091 762                     -                 294 815            (1 956 915)                  569 429 662
      
      (1)A number of items in the condensed consolidated statement of financial position have been reclassified in the management accounts to provide information of
         relevance to investors and a meaningful basis of comparison by removing current and non-current assets and liabilities and reclassifying assets held for sale.
      (2)Proportional consolidation has been used as the basis of consolidation of the groups equity accounted investees in the manage ment accounts.
      (3)Proportional consolidation has been used as the basis of consolidation for the group's 80% ownership of Nova Park.
      

27 February 2017

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Java Capital  
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