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STENPROP LIMITED - Half yearly report 2017 and change in presentation currency

Release Date: 23/11/2017 07:05
Code(s): STP     PDF:  
Wrap Text
Half yearly report 2017 and change in presentation currency

STENPROP LIMITED
(Incorporated in Bermuda)  
Registration number: 47031      
BSX share code: STP.BH         
JSE share code: STP               
ISIN: BMG8465Y1093

Stenprop Limited ('Stenprop' or the 'Company' or together
with its subsidiaries the 'Group') is a property investment
company with a primary listing on the Johannesburg Stock
Exchange ('JSE') and a secondary listing on the Bermuda
Stock Exchange ('BSX').

Stenprop's strategy is to enhance shareholder value by
delivering sustainable growth in earnings and distributions
through identifying and investing in sectors and assets that
have positive growth fundamentals and where there is an
opportunity to add value and grow earnings through active
asset management.

HALF YEARLY REPORT 2017 AND CHANGE IN PRESENTATION CURRENCY

Highlights

GBP130.5m 
Strategic MLI acquisitions

GBP1.35 
diluted EPRA* NAV per share

4.87 pence
diluted adjusted EPRA earnings per share

4.0 pence 
interim dividend per share declared

2.6% 
increase in half-year dividend per share against prior year

Key highlights

key strategic decisions taken to:
 - invest significantly in multi-let industrial ('MLI') assets, with the objective of establishing Stenprop as a leading player in the
   MLI sector;
 - fund the Company's MLI investments primarily through selling assets with lower growth prospects;
 - actively pursue a listing on the London Stock Exchange and a conversion to a UK REIT; and
 - reduce debt from the current LTV* of 55% to no more than 45% by 31 March 2019 and no more than 40% by
   31 March 2020.

GBP135 million investment in MLI sector, including the GBP130.5 million strategic acquisition of the industrials.co.uk portfolio and
management platform. GBP4.5 million completed post-period end.

GBP71.0 million proceeds from asset sales (including GBP54.0** million of post-balance sheet sales) to fund the Company's
investment in the MLI sector and to reduce debt.

Successful integration of the C2 Capital management team and industrials.co.uk platform.

Financial highlights

Declaration of an interim dividend on 22 November 2017 of 4.0 pence per share for the six months ended
30 September 2017, in line with forecast and payable on 26 January 2018. The 2016 interim dividend was paid in Euros and
amounted to 4.5 cents per share, which at the then prevailing exchange rate would have equated to 3.9 pence per share.

Based on a projected full-year dividend of 8.0 pence per share, a dividend yield of 7.5% on the share price of GBP1.07^ at
20 November 2017, or 5.9% on the diluted EPRA NAV of GBP1.35 at 30 September 2017.

Diluted adjusted EPRA EPS* of 4.87 pence (2016: 4.35 pence) for the period ended 30 September 2017. Diluted IFRS EPS
was 3.08 pence (2016: 1.59 pence loss). Projected diluted adjusted EPRA EPS for the full year is 9.1 pence.

Diluted EPRA net asset value per share of GBP1.35 (2016: GBP1.34). Diluted IFRS net asset value per share of GBP1.30 (2016: GBP1.28).

Effective 1 April 2017, a change in reporting currency from Euros to Pounds Sterling. This change has been made to reflect
the relatively larger weighting of Stenprop's UK portfolio following Stenprop's entry into the UK multi-let industrial estate
asset class. It also accords with Stenprop's expected listing on the London Stock Exchange, as explained later in this commentary.

FX rates in period

Average foreign exchange rates in the period: GBP1.00:EUR1.138; GBP1.00:CHF1.259 (2016: GBP1.00:EUR1.223; GBP1.00:CHF1.336)
Period-end foreign exchange rates: GBP1.00:EUR1.134; GBP1.00:CHF1.298 (2016: GBP1.00:EUR1.157; GBP1.00:CHF1.257)
*  'EPRA' means European Public Real Estate Association. 'LTV' means loan to value ratio. 'EPS' means earnings per share.
**  Includes GBP42.2 million from the conditional exchange on the sale of the investment in Pilgrim Street.
^   JSE closing price on 20 November 2017 was ZAR20.00. ZAR:GBP rate at the same date was 18.637:1.

Commentary

Stenprop is pleased to report its interim financial
statements for the six months ended 30 September 2017.

Business strategy

Investment

Stenprop's objective is to deliver sustainable growing
income to its investors. The Company's investment
strategy for achieving this objective is to identify and
invest in sectors and assets that have positive growth
fundamentals and where there is an opportunity to add
value and grow earnings through active asset management.

Stenprop identified UK multi-let industrial as a sector
likely to deliver superior growth in earnings as a result of
a structural imbalance in supply and demand dynamics
with increasing tenant demand and static supply that
should translate into higher rents over time. Stenprop
also identified that, in order to exploit this opportunity and
deliver consistent returns, it required sufficient scale and
an excellent management team and operating platform.

With the June 2017 acquisition of the industrials.co.uk
multi-let industrial portfolio and management platform,
Stenprop acquired both the necessary scale and
management expertise required to take full advantage of
the opportunities in this sector.

The performance of the industrials.co.uk portfolio, and
the successful integration of the C2 Capital management
team that created it, has confirmed Stenprop's views on
the merits of its multi-let industrial strategy. Stenprop
is actively pursuing further acquisitions of multi-let
industrial assets, with the objective of establishing itself
as a leader in the UK multi-let industrial space. With
increased competition for large portfolios resulting
in increased prices, the Company anticipates that
the majority of its investments are likely to be smaller
individual estates, like the GBP4.15 million post-balance sheet
acquisition of an industrial estate in Aberdeen, where
the long established relationships and networks of the
industrials.co.uk management team give Stenprop a
competitive advantage.

In the current environment, Stenprop does not anticipate
making any acquisitions outside of the UK multi-let
industrial sector.

Stenprop's investment strategy includes a constant
evaluation of the existing portfolio in order to identify
assets with lower growth prospects that can be recycled
into higher growth opportunities. Stenprop's decision
to exit its Swiss assets and dispose of its London office
building in Pilgrim Street, with the intention of deploying
the proceeds into UK multi-let industrial properties, is in
line with this strategy. As Stenprop's multi-let strategy
unfolds, and provided that the Company continues to
source appropriate multi-let industrial opportunities, the
Company will continue to assess its existing portfolio
to determine assets suitable for sale, with a view to
transitioning to a specialised, focused multi-let industrial company.

Active asset management

Stenprop's preference is to invest in assets and sectors
where it can add value and grow earnings through active
asset management.

The multi-let industrial sector is an asset class particularly
well suited to the addition of value through asset
management due to the highly diversified tenant base and
physical attributes of the asset class. With the acquisition
of the industrials.co.uk platform, a significant focus of
the Company going forward is to build its technology
platform to allow for the management of its multi-let
industrial portfolio with ever increasing efficiency and
cost savings. Stenprop is confident that investment in
technology together with the Company's ability to offer
tenants increasingly flexible terms and pricing should
result in further enhancement of earnings from its multi-let
industrial portfolio.

Debt management

Ongoing management of Stenprop's debt and interest
structure is a key component of the Company's strategy.
Stenprop has been steadily reducing its debt from above
54% in October 2014 to its targeted level of not more than
50% LTV. The Company's LTV has temporarily increased to
approximately 55% as a result of the bridge funding used
to finance the acquisition of the industrials.co.uk portfolio
and C2 Capital, but is expected to reduce to below 50% by
year-end following the sales detailed below.

Stenprop is of the view that conditions in credit markets
are changing. Inflation is emerging and there is a strong
likelihood that the economy is entering a cycle of interest
rate increases, as central banks withdraw the support
which they have provided for the last eight years.

In light of these anticipated changes, the Company has
decided that it is prudent to reduce its LTV target from 50%
to 40%, and will look to responsibly reduce its gearing to no
more than 45% by 31 March 2019 and no more than 40% by
March 2020. More detail on this is set out further on in 
this commentary.

Notwithstanding the Company's strategic decision to
reduce the levels of its long-term borrowings, Stenprop
is of the view that access to flexible bridging finance is a
critical component in positioning the Company to actively
pursue its multi-let industrial investment strategy, while
managing the timing of the disposal of assets and reducing
the impact of cash drag. The Company is in discussions
around arranging appropriate bridging facilities, and the
use of these facilities may from time to time temporarily
increase Stenprop's gearing levels.

Listing and REIT status

Stenprop has taken the strategic decision to pursue a
listing on the London Stock Exchange and a conversion
to UK REIT status. The Company believes that these
initiatives will make it more accessible to a broader pool
of investors, including, in particular, UK investors. In
the longer-term, accessibility to more investors should
improve Stenprop's liquidity and access to equity capital,
both of which will be beneficial to the company in delivering
on its strategic objectives. Progress in this regard is well
advanced and the Company anticipates that both the
listing and the conversion will take place in the first half of
the Company's next financial year. More detail on these
aspects is discussed later in the commentary.

Management fee income from assets managed for third parties

With the focus of the business now on growing the multi-let
industrial portfolio and actively embracing technology to
improve cost efficiencies and unlock additional sustainable
income streams, Stenprop intends to steadily withdraw
from involvement in its historic fund management arm.
Many of these managed funds come to a natural end
during the current financial year, and at the interim stage
have delivered management fee income of GBP3.2 million.
Further material fees may arise during the next six to
twelve months. Thereafter, management fee income
is expected to decline to insignificant levels. In future,
guidance will be given so as to distinguish between EPRA
earnings attributable to the property rental business
and those attributable to the historic fund management
business.

Future distributions

To date, Stenprop has pursued a distribution policy in terms
of which it distributed at least 85% of its EPRA earnings
on a bi-annual basis. Following successful conversion to
UK REIT status and a listing in London, Stenprop intends
to distribute at least 90% of its property-related EPRA
earnings. Distribution of non-property-related earnings
will be evaluated from time-to-time by the board.

Business review

Portfolio Summary

As at 30 September 2017, including assets held for sale,
the Company's real estate portfolio comprised an interest
in 74 properties valued at GBP785.0 million(1), with 52.2% in
the United Kingdom, 33.7% in Germany and 14.1% in
Switzerland (by value). The portfolio, which has a gross
lettable area of approximately 402,358(1) m2 and gross
annual rent of GBP48.3 million(1), is currently predominantly in
the office and retail sectors, which account for 43% and
28% of rental income respectively. The multi-let industrial
portfolio accounted for 18% of rental income as at
30 September 2017, and this is expected to increase over
time as the company pursues further acquisitions in the
multi-let industrial sector and makes disposals from other
asset classes.

(1) Includes Stenprop's share of the properties held within joint venture investments.

A table detailing the top six properties in the portfolio can
be found below. These six investments account for 66%
of the total portfolio asset value. The value of the three
Central London properties (including Stenprop's share of
25 Argyll Street) accounts for 25% of the total portfolio
asset value, although this will reduce to 15% following
completion of the sale of the Pilgrim Street property. The
value of the multi-let industrial portfolio accounts for 16%
of the total portfolio asset value and the Berlin retail centre
portfolio (comprising three centrally located daily needs
shopping centres) accounts for 8%.

Additions and disposals

On 30 June 2017 Stenprop acquired all of the interests in a
portfolio of 25 separate multi-let industrial estates situated
across the UK, operating as industrials.co.uk, based on
a portfolio price of GBP127 million excluding costs. The
portfolio comprised properties with a gross lettable area
of approximately two million square feet and contractual
rent (including contractual fixed uplifts) of approximately
GBP9.1 million per annum representing an average rent of
GBP5.15 psf. There are over 400 tenants creating a diversified
base of earnings.

Top six properties by value as at 30 September 2017
                                                                  Stenprop                                Annualised    Weighted
                                                                     share                              gross rental     average
                                         Market  Ownership       of market                 Lettable        (Stenprop   unexpired
                                          value   interest           value                     area           share)  lease term
Property                          (GBP million)          %   (GBP million)        Sector       (m2)    (GBP million)     (years)
Multi-Let Industrial                      122.4        100           122.4           MLI    185,772              8.5         4.4
('MLI') portfolio, UK       
Bleichenhof, Hamburg                      118.8       94.9           112.7     Mixed use     20,067              5.1         4.9
Euston House, London                       78.1        100            78.1        Office     10,204              4.1         3.9
Pilgrim Street, London*                    78.0        100            78.0        Office      9,967              4.4         3.7
Trafalgar Court, Guernsey                  60.9        100            60.9        Office     10,564              4.2         9.6
Berlin daily needs retail         
centre portfolio                           62.9        100            62.9        Retail     35,347              4.0         8.2
Total                                     521.1          -         (515.0)                  271,921             30.3         5.6

* Sale contract exchanged on 20 November 2017

Also on 30 June 2017, Stenprop completed the acquisition
of C2 Capital Limited, the management platform
responsible for aggregating and managing the portfolio,
for a purchase consideration of GBP3.5 million settled by the
issue of 3,270,500 Stenprop shares valued at EUR1.22 per
share. By structuring the acquisition in this way, Stenprop
acquired a strategic portfolio of sufficient scale in the multi-
let industrial sector together with a specialist operating
platform and team.

As at 31 March 2017 Stenprop owned a 28.42% share in
Stenham European Shopping Centre Fund which owned a
shopping centre situated near Leipzig. On 22 June 2017 the
asset was sold at a valuation of EUR208.5 million. Stenprop's
share of the net proceeds from the first distribution was
used towards the acquisition of the industrials.co.uk
portfolio.

In July 2017 Stenprop completed the sale of the Swiss
property known as Granges Paccot at its valuation of
CHF20.0 million.

In August 2017 Stenprop sold an office block in Uxbridge,
west London, at a sale price of GBP3.4 million, an uplift of
13.3% compared with the 31 March 2017 valuation of
GBP3.0 million.

On 30 October 2017, Stenprop disposed of the Swiss
property known as Cham at its valuation of CHF14.2 million.

On 17 November 2017 Stenprop added to its industrial
portfolio with the acquisition of an industrial estate located
in Aberdeen, Scotland for GBP4.15 million.

On 20 November 2017, Stenprop exchanged contracts
for the sale of its investment in the London office building
located in Pilgrim Street for a purchase consideration which
values the property at GBP80.9 million, 3.5% above valuation.
Completion is conditional upon the buyer receiving
written confirmation from a lender that debt finance on
commercially acceptable terms will be available to the
buyer at completion.

Financial review

Earnings

The basic earnings attributable to ordinary shareholders
for the six-month period ended 30 September 2017 were
GBP8.7 million (2016: GBP4.5 million loss). This equates to a
diluted IFRS EPS of 3.08 pence (2016: 1.59 pence loss per share).

Net rental income increased by 25.1% over the prior
period to GBP15.96 million of which 17.7% is due to net
rents from the industrials.co.uk portfolio and 3.1% due to
different average exchange rates. Goodwill of GBP3.5 million
attaching to the acquisition of the C2 Capital management
platform was written off during the period. Finance
charges increased by 61.6% to GBP4.82 million due to the
industrials.co.uk portfolio bank debt interest (19.4%) and
the interest and costs associated with the bridging finance
used to acquire the industrials portfolio (44.0%).

Management fee income totals GBP3.2 million for the
period (2016: GBP1.8 million) and relates to fees earned
by the management companies on management and
administration services provided to certain managed
property syndicates and funds. Included in the total are
management fees of GBP1.4 million which relate to a managed
syndicate which holds the WestendGate property in
Frankfurt. This asset is currently being marketed for sale,
and may result in a performance fee being earned by Stenprop.

Headline earnings were GBP15.2 million (2016: GBP13.5 million)
equating to a diluted headline EPS of 5.41 pence
(2016: 4.73 pence).

In accordance with reporting standards widely adopted
across the real estate industry in Europe, the board of
directors feels it is appropriate and useful, in addition to
providing the IFRS disclosed earnings, to also disclose
EPRA(2) earnings. Adjusted EPRA earnings attributable
to shareholders were GBP13.7 million (2016: GBP12.4 million),
equating to a diluted adjusted EPRA EPS of 4.87 pence
(2016: 4.35 pence). This represents a 11.8% increase on
the diluted adjusted EPRA EPS at 30 September 2016.
If current period exchange rates had been in force
in the prior period, the diluted adjusted EPRA EPS at
30 September 2016 would have been 4.68 pence.
The increase against this of 4.1% is primarily as a result of
higher management fee income.

(2) The European Public Real Estate Association ('EPRA') issued Best Practices Policy Recommendations 
    in November 2016, which provide guidelines for performance measures relevant to real estate companies. 
    Their recommended reporting standards are widely applied across this market, aiming to bring consistency 
    and transparency to the sector. The EPRA earnings measure is intended to show the level of recurring earnings 
    from core operational activities with the purpose of highlighting the Group's underlying operating results 
    from its property rental business and an indication of the extent to which current dividend payments are supported 
    by earnings. The measure excludes unrealised changes in the value of investment properties, gains or losses on the 
    disposal of properties and other items that do not provide an accurate picture of the Group's underlying operational
    performance. The measure is considered to accurately capture the long-term strategy of the Group, and is an indication
    of the sustainability of dividend payments.

The diluted adjusted EPRA EPS attributable to the property
rental business amounts to 3.73 pence per share, with the
remaining amount of 1.14 pence being attributable to the
management fee income.

Stenprop has considered the adoption of further EPRA
metrics and in line with best practice believes it useful
to disclose the EPRA cost ratio (including direct vacancy
costs). The EPRA cost ratio includes all administrative
and operating expenses in the IFRS statements (including
share of joint ventures). The EPRA cost ratio (including
direct vacancy costs) at 30 September 2017 was 21.3%
(2016: 24.8%). The decrease is due to additional rents
received from the industrials portfolio. When Swiss and
other sales complete and bridging finance is repaid, the
cost ratio is expected to increase.

Dividends

On 22 November 2017, the directors declared a dividend
of 4.0 pence per share payable on 26 January 2018,
relating to the six months to 30 September 2017. This
interim dividend will be a cash dividend and represents
a payout ratio of 82% of diluted adjusted EPRA EPS.
An announcement containing details of the dividend and
the timetable will be made separately.

On 7 June 2017, the directors declared a final dividend
of 4.5 cents per share (2016: 4.7 cents) in respect of the
year ended 31 March 2017. The final dividend was paid on
4 August 2017.

Net asset value

The IFRS basic and diluted net asset values per share at
30 September 2017 were GBP1.31 and GBP1.30 respectively
(2016: basic and diluted GBP1.28).

As is the case with regard to the disclosure of EPRA
earnings, the directors feel that it is appropriate and
useful, in addition to IFRS NAV, to also disclose EPRA NAV(3).
The diluted EPRA NAV per share at 30 September 2017
was GBP1.35 (2016: GBP1.34). This represents a 0.1% decrease on
the diluted EPRA NAV per share of GBP1.36 at 31 March 2017.
If exchange rates had remained constant between
31 March and 30 September 2017, the diluted EPRA NAV
per share at 30 September 2017 would have been GBP1.31.

(3) The objective of the EPRA NAV measure is to highlight the fair value of net assets on an ongoing, long-term basis. 
    EPRA NAV is used as a reporting measure to better reflect underlying net asset value attributable to shareholders. 
    Assets and liabilities that are not expected to crystallise in normal circumstances such as the fair value of financial 
    derivatives and deferred taxes on property valuation surpluses are therefore excluded.  The EPRA measure thus takes into 
    account the fair value of assets and liabilities as at the balance sheet date, other than fair value adjustments to 
    financial instruments, deferred tax and goodwill. As the Group has adopted fair value accounting for investment property per 
    IAS 40, adjustments  to reflect the EPRA NAV include only those relating to the revaluation of financial instruments and deferred tax.

Change in presentation currency

Effective 1 April 2017, the Company changed its
presentation currency from Euros to Pounds Sterling
('GBP'). This represents a change from the year-end and
has been applied to reflect the relatively larger weighting
of Stenprop's UK portfolio following the acquisition and
sales strategy and Stenprop's entry into the UK multi-let
industrial asset class. It is also better suited to the proposed
Stenprop listing on the London Stock Exchange during the
first half of the next financial year. Accordingly all results
and comparatives have been reported in GBP.

Foreign exchange

At 30 September 2017, approximately 31% of Stenprop's
net asset value and 40% of its earnings were in Euros.
Consequently the GBP:EUR exchange rate has a material
impact on reported GBP earnings and net asset values.
At the start of April 2017, the GBP:EUR rate was
GBP1.00:EUR1.169 and the Euro strengthened over the
six-month reporting period by 3.1% to GBP1.00:EUR1.134.

                                                        Market                            Annualised   Net initial
                                        Portfolio        value                                 gross         yield
                                       by market       30 Sept                                rental     (weighted         WAULT
Combined                                   value          2017                    Area        income      average)     by rental
portfolio                                    (%) (GBP million)   Properties       (m2) (GBP million)           (%)       (years)
United Kingdom                              37.1         291.5           36    238,026          19.8          6.50           4.7
Germany                                     29.7         233.2           23     91,927          12.9          4.98           6.5
Assets held for sale                        24.0         188.3           10     50,072          11.2          4.45           5.8
 United Kingdom                              9.9          78.0            1      9,705           4.4          4.98           3.7
 Switzerland                                14.1         110.3            9     40,367           6.8          4.07           7.1
Subtotal                                    90.8         713.0           69    380,025          43.9          5.46           5.5
Share of joint ventures and             
associates                                   9.2          72.0            5     22,333           4.4          5.30           7.5
Total                                      100.0         785.0           74    402,358          48.3          5.45           5.7

See the Prospects section for further information about
the impact of exchange rate movements on earnings.

Stenprop matches the currency of borrowings to the
underlying asset, and, where the timing and amount of
a liability has been determined, and is to be met from the
proceeds of a sale which is known in terms of timing and
amount, the currency risk is managed through hedging instruments.

Stenprop's diversification across the UK, Germany and
Switzerland (until the Swiss portfolio is sold) continues to
provide a natural spread of currencies and it remains our
policy not to hedge this natural spread, thereby maintaining
a multi-currency exposure.

Portfolio valuation

Including the Company's share of associates and joint
ventures, its investment properties were valued at
GBP785.0 million (31 March 2017: GBP725.5 million), of which
GBP188.3 million were classified as assets held for sale at
30 September 2017 (31 March 2017: GBP133.4 million). Assets
held for sale (some of which have subsequently been sold),
consist of the remaining Swiss portfolio, and the office
building in the City of London known as Pilgrim Street. On
a like-for-like basis, excluding the impact of additions and
disposals in the period, the valuation of the portfolio since
year end increased by 1.4% of which 0.7% resulted from
currency movements. The German and Swiss properties
have been translated to GBP at a rate of GBP1.00:EUR1.13 and
GBP1.00:CHF1.30 respectively. This compares with exchange
rates of GBP1.00:EUR1.17 and GBP1.00:CHF1.25 at 31 March 2017.

United Kingdom

The UK portfolio (excluding Stenprop's share of 25 Argyll
Street), was independently valued at GBP369.5 million. On
a like-for-like basis, after excluding Uxbridge, which has
been sold, and the acquisition of the Industrials portfolio,
the valuation of the UK portfolio decreased by GBP1.4 million,
or 0.6%, on the valuation at 31 March 2017. This decrease
in value was mainly due to a downward valuation of
GBP1.7 million (2.7%) of the Trafalgar Court property in
Guernsey, driven by a softening of yields on the island.
The valuation does not include the GBP2.9 million (3.7%)
increase over valuation of the selling price of the Pilgrim
Street property, which exchanged on 20 November 2017.

On 30 June 2017, the 25 estates comprising the industrial
portfolio were acquired at a portfolio valuation of
GBP127.0 million. In line with accounting standards and
the RICS red books valuation guide, these accounts are
required to value these assets on an individual basis.
This valuation was undertaken by third party valuers,
JLL, and at 30 September 2017 was GBP122.4 million. JLL
also provided a like-for-like portfolio valuation as at
30 September 2017 which valued the industrial portfolio as
a whole at GBP131.6 million, an increase of 3.6%.

Germany

The German portfolio (excluding associates and joint
ventures) was independently valued at EUR264.5 million. This
represents a like-for-like increase of 3.3% on the year-end
valuation of EUR256.1 million. The increase of EUR8.4 million was
driven mainly by a EUR7.2 million (5.6%) uplift at Stenprop's
Bleichenhof property in central Hamburg, an asset which
continues to benefit from positive market development
seen in core assets in prime cities and from the asset
management work being done to reposition this asset in
conjunction with the adjacent city centre redevelopment.
Elsewhere, it is pleasing to report higher valuations at the
three Central Berlin retail centres which experienced a
combined uplift of EUR1.0 million (1.4%).

Switzerland

The Swiss portfolio was valued at CHF143.1 million
compared with the like-for-like 2017 year end valuation
of CHF144.0 million. As previously reported, following
a decision to sell these lower yielding and more mature
assets, the Swiss portfolio has been classified as held for
sale in the financial statements. All properties are being
marketed for sale and are at various stages in the sale process.

Joint ventures and associates

The Care Homes portfolio in Germany was independently
valued at EUR35.7 million, a marginal increase of 1.0% on the
31 March 2017 valuation of EUR35.4 million.

Stenprop's 50% interest in 25 Argyll Street, a property
located in the heart of London's West End, is valued
at GBP40.5 million, a valuation unchanged from that at
31 March 2017.

Following the disposal of the Nova Eventis shopping centre
by Stenham European Shopping Centre Fund Limited on
22 June 2017, Stenprop no longer holds any direct property
interests through associate investments.

Capital management

The value of the property portfolio as at
30 September 2017, including the Group's share of
joint venture properties and assets held for sale, was
GBP785.0 million. Senior bank debt at the same date was
GBP397.7 million resulting in an average loan-to-value ratio of
50.7% (31 March 2017: 51.6%). Including short-term bridge
funding of EUR39 million, the average loan-to-value ratio is 55.1%.

As previously reported, the temporary increase in the LTV
ratio was driven by the acquisition of the industrial portfolio.
The portfolio was acquired with debt in place, and has an
LTV of 56.4% at the reporting date. Additional borrowing
of GBP6.1 million was taken on the Trafalgar Court loan, where
the LTV at the reporting date is 59.3%. The short-term
bridge loans totalling EUR39 million remain in place. Stenprop
will utilise the proceeds of the sale of the Pilgrim Street
property and the Swiss assets to repay the bridge facilities,
and to reduce the LTV ratios in the industrial portfolio
and on the Trafalgar Court property. It is expected that
the LTV ratio will have reduced from 55.1% to 49.9% by
31 March 2018.

The weighted average debt maturity stood at 2.6 years
at 30 September 2017 compared with 2.4 years at
31 March 2017. However, excluding bridge finance and
the Swiss portfolio and Pilgrim Street loans, all of which
are expected to be repaid in the near term, the weighted
average debt maturity at 30 September 2017 stands at
3.3 years.

Excluding the Swiss portfolio, annual amortisation
payments are GBP4.0 million (31 March 2017: GBP1.2 million).
The increase since year-end relates to the Trafalgar Court
loan facility, and will be removed once the additional
amount of GBP6.1 million has been repaid.

At 30 September the all-in contracted weighted average
cost of debt, excluding bridge finance, was 2.52% (2.53%
at 31 March 2017). Including bridging finance, the all-in
contracted weighted average cost of debt was 2.87%.

The bank facility of EUR14.5 million relating to the five German
Bikemax properties matures on 31 December 2017. Terms
have been agreed with the existing lender for a new five year
facility at a margin of 1.55%. The current LTV of 57% will be
reduced to 49.6% and annual amortisation of EUR400,000
will be removed. An interest rate cap will be purchased in
order to provide flexibility over future disposals whilst also
allowing Stenprop to benefit from the current low interest
rate environment.

The intention is to steadily reduce overall debt further
during the 2019 financial year to approximately 45% LTV,
and in the subsequent year to 40%. Stenprop's view is that
the debt and property cycles have been very favourable
for the past eight years with the significant aid of Central
banks following the credit crisis in 2008.Stenprop believes
it is prudent to now be reducing overall debt levels as the
support of Central banks cannot continue indefinitely and
there are signs that inflation is picking up and that interest
rates may have reached the low point of their cycle.

Industrial portfolio update

In the quarter since acquisition of the multi-let industrial
portfolio on 30 June 2017, the management team have
signed 18 new leases and renewed 12 existing leases.
At the time of purchase, the average passing rent on
the portfolio was GBP5.01 per square foot per annum and
the average estimated rental value on the portfolio was
GBP5.45 per square foot per annum. The 18 new leases have
been signed up at an average rent of GBP6.80 per square foot
which is approximately 8% ahead of the estimated rental
value at June 2017. The 12 renewed leases have been
extended at an average rent per square foot of GBP6.44 which
is 6% ahead of estimated rental value at 30 June 2017.
These lettings confirm the Company's view that tenant
demand is outstripping supply of space resulting in upward
pressure on rents. This rental growth will in due course
translate into higher earnings, NAV and total shareholder
return.

The integration of the C2 Capital management team with
the existing Stenprop team is proceeding smoothly and
synergies are emerging. A significant focus going forward
is to build on the technology platform of managing multiple
smaller units with ever increasing efficiency and cost
savings. Stenprop is confident that investment in cutting-
edge technology together with the Company's ability to
offer tenants increasingly flexible terms and pricing should
result in further enhancement of the earnings that can be
generated from the portfolio.

The Company continues to seek out appropriate additional
acquisition opportunities in the multi-let space. As set out
in the Strategy section of this commentary, these are more
likely to be smaller individual estates which can be added
on incrementally, as there is growing competition for
large portfolios with premiums having to be paid for scale.

As a result of the long-established relationships and
networks of the industrials.co.uk team, the Company is
under offer on a number of smaller estates and Stenprop
anticipates having acquired an additional c. GBP20 million
of multi-let industrial estates by the end of this financial
year to add to the portfolio acquired in June 2017.

The industrials.co.uk team also benefits from a steady
pipeline of further opportunities, having already reviewed
over GBP135 million of potential opportunities since
June 2017.

Update on conversion to UK REIT status

Stenprop reported in June that it intended to actively
investigate a conversion to UK REIT status. This followed
new legistation introduced in the UK restricting interest
deductibility for UK companies, and at the same time
announcing a consultation to bring non-resident landlord
companies such as Stenprop into the scope of UK
corporation tax. It was also considered that, given the
intention to list on the LSE, the proven track record of the
REIT brand to attract international capital would potentially
unlock new sources of investor interest, whilst potentially
improving after-tax returns for some shareholders.

The REIT feasibility study concluded that Stenprop will be
able to meet and maintain the conditions necessary for
conversion to UK REIT status from 1 April 2018. This date
may be delayed by one to two months depending on the
outcome of the sale of the WestendGate property, which
is part of the legacy managed portfolio, and whether a
performance fee is payable to Stenprop as a result of the
sale. Such a performance fee may temporarily increase
the proportion of Stenprop's profits from its non-property
rental business above the prescribed level of 25% and thus
delay the conversion to UK REIT status for a short period.

The conversion to UK REIT status will require certain
provisions to be included in the constitutional documents
of the Company, and will thus require shareholder approval.

Details of an extraordinary general meeting to approve the
proposed amendments will be circulated to shareholders
at the appropriate time.

Update on London listing

In the course of its investigations into listing in London,
Stenprop has engaged with a number of potential
advisors and has considered listings on the Main Market
of the London Stock Exhange (LSE), the Specialist Fund
Segment (SFS) of the LSE and AIM. Whilst a listing on the
Main Market of the LSE is the most desirable outcome,
Stenprop does not currently meet the requirement for
25% of its issued shares to be held by the public in one or
more of the European Economic Area States. In all other
respects Stenprop would have qualified. Therefore a listing
on the SFS is seen as a strong alternative, with the ultimate
aim of moving to the Main Market once this EEA free float
requirement has been achieved.

Whilst the SFS is typically designed for professional or
professionally-advised investors, with REIT status Stenprop
shares would be eligible to be marketed to ordinary retail
investors as well (subject to certain conditions). Therefore,
an SFS listing would be suitable for both current investors
and is expected to attract wealth managers, pension funds,
and other investors seeking real estate income yield in
their portfolios.

Stenprop is in the process of appointing a financial advisor
to assist in gaining admission to the SFS or, if the share
register changes prior to admission, to act as sponsor for
a move to the Main Market of the LSE. A listing date in the
second half of May 2018 is targeted. Stenprop does not
intend to issue any shares on listing. Instead, Stenprop
intends to fund the roll out of its multi-let industrial
acquisition strategy by selling assets in its portfolio and
utilising the proceeds for such acquisitions.

As a consequence of the intended listing, Stenprop will
migrate its jurisdiction of incorporation from Bermuda to
Guernsey. This decision follows advice that Guernsey has
a regulatory and legal framework which is more familiar
and more acceptable to investors in the London markets
than Bermuda. The migration will require the adoption
of a new set of articles of incorporation replacing the
existing by-laws, and will also incorporate the requirements
necessitated by the conversion of Stenprop to UK REIT
status. These will be presented to shareholders to vote on
at an Extraordinary General Meeting, details of which, as
already mentioned, will be circulated to shareholders at the
appropriate time.

Board appointments

On 5 April 2017 Warren Lawlor was appointed as non-executive director.

Subsequent events

On 30 October 2017 the sale of one of the Swiss properties,
located in Cham, was completed at a sale price of
CHF14.2 million. Cham was valued at CHF14.2 million.

On 20 November 2017, a sale and purchase agreement was
signed in respect of the entire share capital of Normanton
Properties Limited, a subsidiary of the Group, which owns
the property known as Pilgrim Street in the City of London.
The sale of the shares values the property at GBP80.9 million,
a sale price above the 30 September 2017 valuation of
GBP78.0 million.

Completion is conditional upon the buyer receiving
written confirmation from a lender that debt finance on
commercially acceptable terms will be available to the
buyer at completion for the purposes of funding the
acquisition of the shares. Failure to fulfil this condition by
no later than 8 December 2017 will result in termination of
the agreement, and a payment of GBP250,000 by the buyer to
the seller. Subject to fulfilment of the condition mentioned
below, completion is expected to be on 20 December 2017,
but no later than 12 January 2018. Failure to complete
by this date due to a default by the buyer will result in the
Group retaining the deposit of GBP4.03 million which was paid
by the buyer on exchange.

On 17 November 2017 a multi-let industrial estate
located in Aberdeen, Scotland, was acquired for
GBP4.4 million including acquisition costs. The estate has
14 tenants and a passing rent of GBP360,900, giving a net
initial yield of 8.2%. The return on equity on this investment
exceeded 9% per annum at inception after taking into
account vacancies of approximately 15% of all lettable space.

Prospects

Stenprop is confident of its ability to earn growing income
from its multi-let industrial portfolio and to further enhance
earnings through its technology platform and active asset
management strategies. In addition, Stenprop believes
that its proposed listing on the London Stock Exchange
and its conversion to a REIT will have a positive impact on
the Company's liquidity and access to capital, to the benefit
of all of its shareholders.

The full impact of these strategies on Stenprop's adjusted
EPRA earnings per share and distributions per share
over the short-term will depend on a number of factors,
including the timing and commercial terms of acquisitions
and disposals and the implementation of Stenprop's
strategic decision to lower its gearing levels. However, the
Company is confident that its increasing investment in the
multi-let industrial sector will, over the long-term, position
it to achieve its objective of delivering sustainable growing
income to its shareholders.

Results for the current year ending 31 March 2018 are
expected to deliver diluted adjusted EPRA earnings
attributable to the property rental business of 7.3 pence
per share, and 1.8 pence per share attributable to the
fund management business, giving a total diluted adjusted
EPRA earnings per share of 9.1 pence. The dividend per
share for the year is expected to be 8 pence, reflecting a
payout ratio of 87.9%, of which 4 pence per share will be
paid on 26 January 2018. The expected full-year dividend is
in line with the guidance provided in the company's financial
statements for the year ended 31 March 2017.

This general forecast has been based on the Group's
forecast and has not been reported on by the external auditors.

Given the nature of its business, Stenprop has adopted
distribution per share as its key performance measure,
as this is considered more relevant than earnings or
headline earnings per share.

Independent review report to Stenprop Limited

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report
for the six months ended 30 September 2017 which comprises the condensed consolidated income statement, the condensed
consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed
consolidated cash flow statement and related notes. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.

This report is made solely to the Company in accordance with International Standard on Review Engagements
(UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the
Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required
to state to it in an independent review 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 formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for
preparing the half-yearly financial report in accordance with the Listings Requirements of the Johannesburg Stock Exchange.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as issued by the
International Accounting Standards Board. The condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as issued by
the International Accounting Standards Board.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly
financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of
Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use
in the United Kingdom. A review of interim financial information consists of making inquiries, 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 International Standards on Auditing (UK) 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, but we will issue a review report addressed to the members of the entity. Our report will not be 
prepared for the use of any third party nor for any purpose connected with any specific transactions and should not be relied upon 
by any such person or for any such purpose, save that you may disclose the contents of our report to the Listings Committee of the 
JSE Securities Exchange South Africa.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30 September 2017 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as issued by the International Accounting Standards Board.


Deloitte LLP

Guernsey
22 November 2017

Condensed consolidated
statement of comprehensive income
                                                                                                      Reviewed          Reviewed
                                                                                                  30 September      30 September
                                                                                                          2017              2016
                                                                                         Notes         GBP'000           GBP'000
Net rental income                                                                            3          15,955            12,751
Management fee income                                                                                    3,204             1,817
Operating costs                                                                              4         (2,628)           (2,390)
Net operating income                                                                                    16,531            12,178
Fair value movement of investment properties                                                 8           (293)           (6,092)
Gain/(loss) from associates                                                                  9             421           (7,890)
Income from joint ventures                                                                  10           1,829               462
Profit/(loss) from operations                                                                           18,488           (1,342)
Net gain/(loss) from fair value of derivative financial instruments                                      1,183           (1,011)
Net finance costs                                                                                      (4,823)           (2,984)
Net foreign exchange (loss)/gain                                                                         (417)                64
Gain on disposal of property                                                                               336                 -
Goodwill impairment                                                                         14         (3,500)                 -
Profit/(loss) for the period before taxation                                                            11,267           (5,273)
Taxation           
Current tax                                                                                              (799)             (709)
Deferred tax                                                                                           (1,286)             (260)
Total taxation                                                                                         (2,085)             (969)
Profit/(loss) for the period from continuing operations                                                  9,182           (6,242)
Discontinued operations           
(Loss)/profit for the period from discontinued operations                                   11           (193)             1,765
Profit/(loss) for the period                                                                             8,989           (4,477)
Profit attributable to:           
Equity holders                                                                                           8,652           (4,525)
Non-controlling interest derived from continuing operations                                                337                48
Other comprehensive income           
Items that may be reclassified subsequently to profit or loss:           
Foreign currency translation reserve                                                                     1,827            18,046
Total comprehensive income for the period                                                               10,816            13,569
Total comprehensive profit attributable to:              
Equity holders                                                                                          10,479            13,521
Non-controlling interest                                                                                   337                48
Earnings/(loss) per share           
From continuing operations           
IFRS EPS                                                                       (pence)       5            3.16            (2.21)
Diluted IFRS EPS                                                               (pence)       5            3.14            (2.20)
From continuing and discontinued operations           
IFRS EPS                                                                       (pence)       5            3.09            (1.59)
Diluted IFRS EPS                                                               (pence)       5            3.08            (1.59)

Condensed consolidated
statement of financial position
                                                                                                          Reviewed       Audited
                                                                                                      30 September      31 March
                                                                                                              2017          2017
                                                                                              Notes        GBP'000       GBP'000
ASSETS           
Investment properties                                                                             8        524,755       470,603
Investment in associates                                                                          9          1,176        17,863
Investment in joint ventures                                                                     10         32,680        31,435
Other debtors                                                                                               13,901        11,634
Total non-current assets                                                                                   572,512       531,535
Cash and cash equivalents                                                                                   26,063        25,202
Trade and other receivables                                                                                  6,204         4,069
Assets classified as held for sale                                                                11       192,798       135,373
Total current assets                                                                                       225,065       164,644
Total assets                                                                                               797,577       696,179
EQUITY AND LIABILITIES           
Capital and reserves           
Share capital and share premium                                                                   7        315,551       310,141
Equity reserve                                                                                             (8,991)       (8,976)
Retained earnings                                                                                           38,549        40,945
Foreign currency translation reserve                                                                        24,267        22,440
Total equity attributable to equity shareholders                                                           369,376       364,550
Non-controlling interest                                                                                     2,359         2,022
Total equity                                                                                               371,735       366,572
Non-current liabilities            
Bank loans                                                                                       12        242,403       216,047
Derivative financial instruments                                                                             1,220         2,853
Deferred tax                                                                                                 7,245         5,794
Total non-current liabilities                                                                              250,868       244,694
Current liabilities            
Bank loans                                                                                       12         26,746        13,004
Derivative financial instruments                                                                               131           119
Accounts payable and accruals                                                                               15,746        15,589
Other loans                                                                                      13         34,367             -
Liabilities directly associated with assets classified as held for sale                          11         97,984        76,201
Total current liabilities                                                                                  174,974       104,913
Total liabilities                                                                                          425,842       329,607
Total equity and liabilities                                                                               797,577       696,179
IFRS net asset value per share                                                      (pence)       6           1.31          1.31

Condensed consolidated
statement of changes in equity
                                          Share                                 Foreign
                                        capital                                currency  Attributable           Non-
                                      and share       Equity    Retained    translation     to equity    controlling       Total
                                        premium      reserve    earnings        reserve  shareholders       interest      equity
                                        GBP'000      GBP'000     GBP'000        GBP'000       GBP'000        GBP'000     GBP'000
Balance at 1 April 2017                 310,141      (8,976)      40,945         22,440       364,550          2,022     366,572
Issue of share capital                    5,410         (16)           -              -         5,394              -       5,394
Credit to equity    
for equity-settled    
share-based payments                          -            1           -              -             1              -           1
Total comprehensive    
income for the period                         -            -       8,652          1,827        10,479            337      10,816
Ordinary dividends                            -            -    (11,048)             -       (11,048)              -    (11,048)
Balance at    
30 September 2017                       315,551      (8,991)      38,549         24,267       369,376          2,359     371,735
Balance at 1 April 2016                 305,999          353      48,020          5,613       359,985          1,847     361,832
Issue of share capital                    4,142         (11)           -              -         4,131              -       4,131
Credit to equity    
for equity-settled      
share-based payments                          -          119           -              -           119              -         119
Repurchase of own shares                      -      (1,533)           -              -       (1,533)              -     (1,533)
Total comprehensive      
(loss)/income for the period                  -            -     (4,525)         18,046        13,521             48      13,569
Ordinary dividends                            -            -    (10,964)              -      (10,964)              -    (10,964)
Balance at    
30 September 2016                       310,141      (1,072)      32,531         23,659       365,259          1,895     367,154

Condensed consolidated statement of cash flows
                                                                                                        Reviewed        Reviewed
                                                                                                    30 September    30 September
                                                                                                            2017            2016
                                                                                            Notes        GBP'000         GBP'000
                       
Operating activities                       
Profit/(loss) from operations from continuing operations                                                  18,488         (1,342)
Profit from operations from discontinuing operations                                           11            419           2,588
                       
                                                                                                          18,907           1,246
Share of (profit)/loss in associates                                                            9          (421)           7,890
Decrease in fair value of investment property                                                   8          2,216           6,041
Share of profit in joint ventures                                                              10        (1,829)           (462)
Exchange rate (gains)/losses                                                                               (419)              64
(Increase)/decrease in trade and other receivables                                                          (42)             368
(Decrease)/increase in trade and other payables                                                          (2,358)             795
Interest paid                                                                                            (3,914)         (3,940)
Interest received                                                                                            538             584
Net tax paid                                                                                               (419)           (298)
Net cash from operating activities                                                                        12,259          12,288
Contributed by: Continuing operations                                                                     10,695          11,096
                Discontinued operations                                                                    1,564           1,192
Investing activities                       
Dividends received from joint ventures                                                                       563             345
Asset acquisitions                                                                             14       (57,858)           (596)
Capital expenditure                                                                                      (3,351)               -
Proceeds on disposal of investment property                                                               21,574               -
Acquisition of investment in subsidiary                                                        14            (2)               -
Proceeds on disposal of investment in associate                                                 9         17,595               -
Net cash used in investing activities                                                                   (21,479)           (251)
Financing activities                       
New bank loans raised                                                                                      6,107               -
New third party loans raised                                                                              34,080               -
Dividends paid                                                                                          (11,048)        (10,964)
Repayment of borrowings                                                                                 (17,790)         (2,183)
Repurchase of shares                                                                                           -         (1,533)
Financing fees paid                                                                                        (904)           (159)
Payments made on swap break                                                                                    -            (52)
Net cash from/(used in) financing activities                                                              10,445        (14,891)
Net increase/(decrease) in cash and cash equivalents                                                       1,225         (2,854)
Effect of foreign exchange rate changes                                                                      296           1,611
Cash and cash equivalents at beginning of the period                                                      25,827          29,093
Cash and cash equivalents at end of the period                                                            27,348          27,850
Contributed by: Continuing operations                                                                     26,063          25,487
                Discontinued operations and assets held for sale                                           1,285           2,363

Notes to the condensed consolidated
financial statements

1.  Basis of preparation

    These reviewed and unaudited condensed consolidated financial statements (the 'IFRS Statements') for the six months
    ended 30 September 2017 have been prepared in accordance with the recognition and measurements principles of the
    International Financial Reporting Standards ('IFRS') and its interpretations adopted by the International Accounting
    Standards Board ('IASB'), specifically IAS34 'Interim Financial Reporting' and the JSE Listings Requirements, the BSX Listing
    Regulations and applicable Bermuda law.

    These financial statements have been prepared by, and are the responsibility of, the directors of Stenprop Limited
    ('Stenprop').

    The accounting policies and methods of computation are consistent with those applied in the preparation of the annual
    financial statements for the year ended 31 March 2017 which were audited and reported on by the Group's external auditor.
    There were no new standards adopted during the period which had any material impact on the disclosures or the amounts
    reported in these financial statements. The consolidated annual financial statements for the year ended 31 March 2017 are
    available on the Company's website at www.stenprop.com.

    Going concern

    At the date of signing these accounts, the Group has positive operating cash flow forecasts and positive net assets.
    Management have reviewed the Group's cash flow forecasts for the 18 months to 31 March 2019 and, in light of this review
    and the current financial position, they are satisfied that the Company and the Group have access to adequate resources
    to meet the obligations and continue in operational existence for the foreseeable future, and specifically the 12 months
    subsequent to the signing of these financial statements. The directors believe that it is therefore appropriate to prepare
    the accounts on a going concern basis.

    The remaining Swiss portfolio is currently being marketed for sale. The properties are at various stages in the sale process
    and are targeted to be sold by financial year-end. As such, the loans at 31 March 2017 were refinanced on a short-term basis
    as a rolling credit facility or will mature on 31 March 2018. Should a decision be taken not to sell the properties for any reason,
    or if the sale process is delayed, the directors anticipate that, given the quality of the properties and the strong and proven
    relationships with Swiss lenders, a refinancing can be secured on favourable terms where necessary.

    Bank loans relating to the Bikemax portfolio (EUR14.5 million) and Aldi portfolio (EUR15.0 million) mature at the end of December
    2017 and April 2018 respectively. Part of the Carehomes debt facility (EUR11.8 million), held as a joint venture, matures in
    March 2018. Stenprop is in discussions with the existing lenders and terms have been agreed with regards to the Bikemax
    facility. Stenprop has seen evidence of significant liquidity in the German market, particularly at the levels of gearing shown
    by the properties in question. Stenprop has strong refinancing experience and given the strength of the assets and the
    level of existing gearing, Stenprop expects to secure favourable all-in interest rates on refinancing and the directors are
    confident that all the facilities will be refinanced.

    During the period Stenprop secured a EUR31 million bridging facility which attracts interest at 7% and is subject to a Group
    loan to value covenant of 65%. A further bridging facility of EUR8 million was secured at the same interest rate of 7%. Both
    loans are repayable in June 2018. Stenprop intends to repay these loans from net sale proceeds from the disposal of the
    Swiss portfolio.

    Change in presentation currency

    From 1 April 2017 the Group has changed its presentation currency to Pounds Sterling ('GBP'). This represents a change
    from the prior period and has been applied to reflect the relatively larger weighting of Stenprop's UK portfolio following
    implementation of the acquisition and sales strategy and Stenprop's entry into the multi-let industrial estate asset class.

    Comparative information has been restated in GBP in accordance with the guidance defined in IAS 21, specifically:

    - Assets and liabilities for each statement of financial position presented have been translated at the closing rate at the
      date of that statement of financial position;
    - Income and expenses for each statement of comprehensive income statement presented have been translated at
      exchange rates at the dates of the transactions (average rate for the period has been used); and
    - All resulting exchange differences have been recognised in other comprehensive income.

    Adoption of new and revised standards

    In the current period, the following new and revised Standards and Interpretations have been adopted. Their adoption has
    not had any material impact on the disclosures or the amounts reported in these financial statements.

    IAS 12 (amendments)                    Recognition of Deferred Tax Assets for Unrealised Losses (1 January 2017)
    IAS 7 (amendments)                     Disclosure Initiative (1 January 2017)
    Annual Improvements 2014 - 2016 Cycle  (1 January 2017)

    At the date of authorisation of these financial statements, the following applicable standards which have not been applied
    to these financial statements, were in issue but not yet effective. They are effective for periods commencing on or after the
    disclosed date and will be adopted as they become effective.

    IFRS 9                                 Financial instruments (1 January 2018)
    IFRS 15                                Revenue from Contracts with Customers (1 January 2018)
    IFRS 16                                Leases (1 January 2019)
    IAS 2 (amendments)                     Classification and Measurement of Share-based Payment Transactions
                                           (1 January 2018)
    IFRS 10 & IAS 28 (amendments)          Sale or Contribution of Assets between an Investor and its Associate or Joint
                                           Venture (effective date deferred indefinitely)
    IAS 40 (amendments)                    Transfers of investment property (1 January 2018)

    Management are in the process of assessing these standards and do not expect that the adoption of the standards listed
    above will have a material impact on the financial statements of the Group in the forthcoming period.

    Critical accounting judgements and estimates

    The preparation of the condensed consolidated interim financial statements requires the use of judgements and estimates
    that affect the reported amounts of assets and liabilities at the reporting date and the reported amounts of revenues and
    expenses reported during the period. Although these estimates are based on the management's best knowledge of the
    amount, event or actions, actual results may differ from those estimates.

    Critical judgements made in applying the Group's accounting policies

    The following are the critical judgements, apart from those involving estimations (which are dealt with separately below),
    that the directors have made in the process of applying the Group's accounting policies and which have the most significant
    effect on the amounts recognised in the financial statements.

    Business combinations and asset acquisitions

    In accounting for the acquisitions of the Industrials portfolio and C2 Capital Limited, both of which completed on
    30 June 2017, Stenprop has considered whether each of the transactions represented a business combination as defined
    by IFRS 3, or an asset acquisition. When management conclude that processes and inputs are being acquired in addition
    to the property then the transaction is accounted for as a business combination. When there are no such items, the
    transaction is treated as an asset acquisition.

    Business combinations are accounted for using the acquisition method any excess of the purchase consideration over the
    fair value of the next assets acquired is initially recognised as goodwill and reviewed for impairment. Any discount received
    or acquisition costs are recognised in the income statement. Where an acquisition of properties held within a corporate
    structure is not judged to be an acquisition of a business, the transaction is accounted for as if the Group had acquired the
    underlying properties directly.

    Critical accounting estimates and sources of estimation uncertainty

    The Group does not have any key assumptions concerning the future, or other key sources of estimation uncertainty in the
    reporting period, which may have a significant risk of causing a material adjustment to the carrying amounts of assets and
    liabilities within the next financial year.

    Notwithstanding this, the Group's investment properties are stated at estimated fair value, as determined by the directors,
    based on independent external appraisals. The valuation of the Group's property portfolio is inherently subjective due to a
    number of factors including the individual nature of the property, its location and the expectation of future rentals.

2.  Operating segments

    The Group is focused on real estate investment in well-developed, large economies with established real estate markets.
    The investment portfolio is geographically diversified across the United Kingdom, Germany and Switzerland, and these
    geographical locations provide the basis of the business segments identified by the Group. Each segment derives its
    revenue from the rental of investment properties in the respective geographical regions.

    Relevant financial information is set out below:

    i) Information about reportable segments
                                                                                Continuing operations
                                                                                                United  Discontinued
                                                                                Germany        Kingdom    operations       Total
                                                                                GBP'000        GBP'000       GBP'000     GBP'000
    Reviewed for the year ended 30 September 2017
    Net rental income                                                             5,748         10,207             -      15,955
    Fair value movement of investment properties                                  7,464        (7,757)             -       (293)
    Net gain from fair value of financial liabilities                               175          1,008             -       1,183
    Income from associates                                                          421              -             -         421
    Income from joint ventures                                                      912            854             -       1,766
    Net finance costs                                                           (1,065)        (3,623)             -     (4,688)
    Operating costs                                                               (286)          (144)             -       (430)
    Net foreign exchange loss                                                      (30)          (204)             -       (234)
    Other gains                                                                       -            336             -         336
    Loss for the year from discontinued operations (see note 11)                      -              -         (193)       (193)
    Taxation                                                                    (1,327)          (481)             -     (1,808)
    Total profit/(loss) per reportable segments                                  12,012            196         (193)      12,015
    Reviewed 30 September 2017  
    Investment properties                                                       233,230        291,525             -     524,755
    Investment in associates                                                      1,176              -             -       1,176
    Investment in joint ventures                                                 11,121         21,520             -      32,641
    Cash                                                                         12,225         10,373             -      22,598
    Other                                                                        15,081          2,632             -      17,713
    Assets classified as held for sale                                                -         79,997       112,801     192,798
    Total assets                                                                272,833        406,047       112,801     791,681
    Borrowings - bank loans                                                     126,268        142,881             -     269,149
    Other                                                                         9,695         39,355             -      49,050
    Liabilities directly associated with assets classified 
    as held for sale (see note 11)                                                    -         40,207        57,777      97,984
    Total liabilities                                                           135,963        222,443        57,777     416,183

    i) Information about reportable segments
                                                                              Continued operation
                                                                                              United    Discontinued
                                                                              Germany        Kingdom      operations       Total
                                                                              GBP'000        GBP'000         GBP'000     GBP'000
    Reviewed for the period ended 30 September 2016
    Net rental income                                                           5,302          7,449               -      12,751
    Fair value movement of investment properties                                   63        (6,155)               -     (6,092)
    Net gain/(loss) from fair value of financial liabilities                       53        (1,064)               -     (1,011)
    Loss from associates                                                      (7,890)              -               -     (7,890)
    Income/(loss) from joint ventures                                             484          (199)               -         285
    Net finance costs                                                         (1,179)        (1,808)               -     (2,987)
    Operating costs                                                             (360)           (53)               -       (413)
    Net foreign exchange gain                                                       2              -               -           2
    Profit for the year from discontinued operations (see note 11)                  -              -           1,765       1,765
    Taxation                                                                    (363)          (607)               -       (970)
    Total profit per reportable segment                                       (3,888)        (2,437)           1,765     (4,560)
    Audited 31 March 2017 
    Investment properties                                                     219,057        251,546               -     470,603
    Investment in associates                                                   17,863              -               -      17,863
    Investment in joint venture                                                10,283         21,115               -      31,398
    Cash                                                                       11,693         12,280               -      23,973
    Other                                                                      12,999          2,347               -      15,346
    Assets classified as held for sale                                          2,541              -         132,832     135,373
    Total assets                                                              274,436        287,288         132,832     694,556
    Borrowings - bank loans                                                   122,898        106,153               -     229,051
    Other                                                                      11,365         11,245               -      22,610
    Liabilities directly associated with assets classified as held                  -              -          76,200      76,200
    for sale (see note 11)  
    Total liabilities                                                         134,263        117,398          76,200     327,861

    ii) Reconciliation of reportable segment profit or loss
                                                                                                      Reviewed          Reviewed
                                                                                                  30 September      30 September
                                                                                                          2017              2016
                                                                                                       GBP'000           GBP'000
    Rental income                     
    Net rental income for reported segments                                                             15,955            12,751
    Profit or loss                     
    Fair value movement of investment properties                                                         (293)           (6,092)
    Net gain/(loss) from fair value of financial liabilities                                             1,183           (1,011)
    Gain/(loss) from associates                                                                            421           (7,890)
    Income from joint ventures                                                                           1,766               285
    Net finance costs                                                                                  (4,688)           (2,987)
    Operating costs                                                                                      (430)             (413)
    Net foreign exchange (loss)/gain                                                                     (234)                 2
    Other gains                                                                                            336                 -
    Profit for the year from discontinued operations (see note 11)                                       (193)             1,765
    Taxation                                                                                           (1,808)             (970)
    Total profit/(loss) per reportable segments                                                         12,015           (4,560)
    Other profit or loss - unallocated amounts                     
    Management fee income                                                                                3,204             1,817
    Income from joint ventures                                                                              63               177
    Net finance income                                                                                   (135)                 3
    Tax, legal and professional fees                                                                      (41)              (65)
    Audit fees                                                                                           (116)             (117)
    Administration fees                                                                                  (119)             (118)
    Non-executive directors                                                                               (69)              (67)
    Staff remuneration costs                                                                           (1,381)           (1,082)
    Other operating costs                                                                                (472)             (528)
    Net foreign exchange (loss)/gain                                                                     (183)                62
    Goodwill impairment (see note 14)                                                                  (3,500)                 -
    Taxation                                                                                             (277)                 1
    Consolidated profit/(loss) before taxation                                                           8,989           (4,477)

    iii) Reconciliation of reportable segment financial position

                                                                                                           Reviewed      Audited
                                                                                                       30 September     31 March
                                                                                                               2017         2017
                                                                                                            GBP'000      GBP'000
    ASSETS  
    Investment properties                                                                                   524,755      470,603
    Investment in associates                                                                                  1,176       17,863
    Investment in joint venture                                                                              32,641       31,398
    Cash                                                                                                     22,598       23,973
    Other                                                                                                    17,713       15,346
    Assets classified as held for sale                                                                      192,798      135,373
    Total assets per reportable segments                                                                    791,681      694,556
    Other assets - unallocated amounts    
    Investment in joint ventures                                                                                 39           37
    Cash                                                                                                      3,465        1,229
    Other                                                                                                     2,392          357
    Total assets per consolidated statement of financial position                                           797,577      696,179
    LIABILITIES   
    Borrowings - bank loans                                                                                 269,149      229,051
    Other                                                                                                    49,050       22,610
    Liabilities directly associated with assets classified as held for sale (see note 11)                    97,984       76,200
    Total liabilities per reportable segments                                                               416,183      327,861
    Other liabilities - unallocated amounts   
    Other                                                                                                     9,659        1,717
    Total liabilities per consolidated statement of financial position                                      425,842      329,578
  
                                                                                                         Reviewed       Reviewed
                                                                                                     30 September   30 September
                                                                                                             2017           2016
                                                                                                          GBP'000        GBP'000
3.  Net rental income                                                   
    Rental income                                                                                          16,535         13,656
    Other income - tenant recharges                                                                         3,585          2,382
    Other income                                                                                              318             92
    Rental income                                                                                          20,438         16,130
    Direct property costs                                                                                 (4,483)        (3,379)
    Total net rental income                                                                                15,955         12,751
                                                    
4.  Operating costs                                                   
    Tax, legal and professional fees                                                                          222            290
    Audit fees                                                                                                 92             90
    Interim review fees                                                                                        30             30
    Administration fees                                                                                       194            133
    Investment advisory fees                                                                                  144            122
    Non-executive directors                                                                                    69             67
    Staff remuneration costs                                                                                1,381          1,082
    Other operating costs                                                                                     496            576
                                                                                                            2,628          2,390

                                                                                                         Reviewed       Reviewed
                                                                                                     30 September   30 September
                                                                                                             2017           2016
                                                                                                          GBP'000        GBP'000
5.  Earnings per ordinary share
    Reconciliation of profit/(loss) for the period to adjusted EPRA(1) earnings
    Earnings/(loss) per IFRS income statement attributable to shareholders                                  8,652        (4,525)
    Adjustment to exclude profit/(loss) from discontinued operations                                          193        (1,765)
    Earnings/(loss) per IFRS income statement from continuing operations
    attributable to shareholders                                                                            8,845        (6,290)
    Earnings/(loss) per IFRS income statement attributable to shareholders                                  8,652        (4,525)
    Adjustments to calculate EPRA earnings, exclude:
    Changes in fair value of investment properties                                                          2,216          6,042
    Changes in fair value of financial instruments                                                        (1,183)            357
    Deferred tax in respect of EPRA adjustments                                                             1,462            544
    Goodwill impairment                                                                                     3,500              -
    Gain on disposal of properties                                                                          (230)              -
    Adjustments above in respect of joint ventures and associates
    Changes in fair value of investment properties and financial instruments                                (897)          9,949
    Deferred tax in respect of EPRA adjustments                                                                26          (391)
    EPRA earnings attributable to shareholders                                                             13,546         11,976
    Further adjustments to arrive at adjusted EPRA earnings 
    Straight-line unwind of purchased swaps                                                                   144            447
    Adjusted EPRA earnings attributable to shareholders                                                    13,690         12,423
    Weighted average number of shares in issue (excluding treasury shares)(2)                         280,302,489    284,521,579
    Share-based payment award                                                                           1,004,369        920,287
    Diluted weighted average number of shares in issue                                                281,306,858    285,441,866
    Earnings/(loss) per share from continuing operations
    IFRS EPS                                                                       (pence)                   3.16         (2.21)
    Diluted IFRS EPS                                                               (pence)                   3.14         (2.20)
    Earnings/(loss) per share from continuing and discontinued operations
    IFRS EPS                                                                       (pence)                   3.09         (1.59)
    Diluted IFRS EPS                                                               (pence)                   3.08         (1.59)
    EPRA EPS                                                                       (pence)                   4.83           4.21
    Diluted EPRA EPS                                                               (pence)                   4.82           4.20
    Adjusted EPRA EPS                                                              (pence)                   4.88           4.37
    Diluted adjusted EPRA EPS                                                      (pence)                   4.87           4.35
    
    (1) The European Public Real Estate Association (EPRA) issued Best Practices Policy Recommendations in November 2016, which provide
        guidelines for performance measures relevant to real estate companies. Their recommended reporting standards are widely applied
        across this market, aiming to bring consistency and transparency to the sector. The EPRA earnings measure is intended to show the level
        of recurring earnings from core operational activities with the purpose of highlighting the Group's underlying operating results from its
        property rental business and an indication of the extent to which current dividend payments are supported by earnings. The measure
        excludes unrealised changes in the value of investment properties, gains or losses on the disposal of properties and other items that do
        not provide an accurate picture of the Group's underlying operational performance. The measure is considered to accurately capture the
        long-term strategy of the Group, and is an indication of the sustainability of dividend payments.
    (2) As at 30 September 2017, the Company held 9,026,189 treasury shares (September 2016: 1,356,567 and March 2017: 9,026,189).
 
    Straight-line unwind of purchased swaps

    A further adjustment was made to the EPRA earnings attributable to shareholders relating to the straight-line unwind
    of the value as at 1 April 2014 of the swap contracts in the property companies acquired. When the property companies
    were acquired by Stenprop with effect from 1 April 2014, it also acquired the bank loans and swap contracts which were in
    place within these property companies. As a result, Stenprop took over loans with higher swap interest rates than would
    have been the case had new loans and swaps been put in place at 1 April 2014. To compensate for this, the value of the
    swap break costs was calculated at 1 April 2014 and the purchase consideration for the property companies was reduced
    accordingly to reflect this liability.

    Reconciliation of profit for the period to headline earnings
                                                                                                       Reviewed         Reviewed
                                                                                                   30 September     30 September
                                                                                                           2017             2016
                                                                                                        GBP'000          GBP'000
    Earnings/(loss) per IFRS income statement from operations
    attributable to shareholders                                                                          8,652          (4,525)
    Adjustments to calculate headline earnings, exclude:
    Changes in fair value of investment properties                                                        2,216            6,042
    Gain on disposal of properties                                                                        (230)                -
    Goodwill impairment                                                                                   3,500                -
    Deferred tax in respect of headline earnings adjustments                                              1,436              910
    Adjustments above in respect of joint ventures and associates
    Changes in fair value of investment properties                                                        (437)           12,004
    Deferred tax in respect of headline earnings adjustments                                                 91            (926)
    Headline earnings attributable to shareholders                                                       15,228           13,505
    Earnings per share
    Headline EPS                                                                         (pence)           5.43             4.75
    Diluted headline EPS                                                                 (pence)           5.41             4.73

                                                                                          Reviewed       Reviewed        Audited
                                                                                      30 September   30 September       31 March
                                                                                              2017           2016           2017
                                                                                           GBP'000        GBP'000        GBP'000
6.  Net asset value per ordinary share
    Net assets attributable to equity shareholders                                         369,376        365,259        364,550
    Adjustments to arrive at EPRA net asset value: 
    Derivative financial instruments                                                         1,897          5,077          2,972
    Deferred tax                                                                            11,084         11,282         10,138
    Adjustments above in respect of non-controlling interests                                1,322          1,891          1,544
    EPRA net assets attributable to shareholders                                           383,679        383,509        379,204
    Number of shares in issue (excluding treasury shares)(1)
                                                                                       282,692,287    285,325,313    277,655,691
    Share-based payment award                                                            1,004,369        920,287        956,185
    Diluted number of shares in issue                                                  283,696,656    286,245,600    278,611,876
    Net asset value per share (basic and diluted)
    IFRS net asset value per share                                            (pence)         1.31           1.28           1.31
    Diluted IFRS net asset value per share                                    (pence)         1.30           1.28           1.31
    EPRA net asset value per share                                            (pence)         1.36           1.34           1.37
    Diluted EPRA net asset value per share                                    (pence)         1.35           1.34           1.36
    
    (1) As at 30 September 2017, the Company held 9,026,189 treasury shares
        (September 2016: 1,356,567 and March 2017: 9,026,189). 

7.  Share capital
 
    Authorised

    1,000,000,000 ordinary shares with a par value of EUR0.000001258 each                        1              1              1
  
                                                                                      Reviewed         Reviewed          Audited
                                                                                  30 September     30 September         31 March
                                                                                          2017             2016             2017
    Issued share capital  
    Opening balance                                                                286,681,880      282,984,626      282,984,626
    Issue of new shares                                                              5,036,596        3,697,254        3,697,254
    Closing number of shares issued1                                               291,718,476      286,681,880      286,681,880
    Share capital 
    Share premium                                                    (GBP'000)         317,782          312,372          312,372
    Less: Acquisition/transaction costs                              (GBP'000)         (2,231)          (2,231)          (2,231)
    Total share premium(GBP'000)                                                       315,551          310,141          310,141
 
    There were no changes made to the number of authorised shares of the Company during the period under review.
    Stenprop Limited has one class of share; all shares rank equally and are fully paid.
 
    The Company has 291,718,476 (September 2016 and March 2017: 286,681,880) ordinary shares in issue at the reporting
    date. On 8 June 2017, 1,752,359 and 13,737 new ordinary shares were issued on the JSE and the BSX at an issue price of
    EUR1.22 per share in respect of the Share Purchase Plan and Deferred Share Bonus Plan respectively (the debit to the Equity
    Reserve of GBP16,000 reflects the exercise of the Bonus Plan share options). On 7 July 2017, 3,270,500 new ordinary shares
    were issued on the JSE and the BSX at an issue price of EUR1.22 per share in order to fund the acquisition of C2 Capital Limited.

8.  Investment property

    The fair value of the consolidated investment properties at 30 September 2017 was GBP524,755,000 (31 March 2017:
    GBP470,603,000). This excludes an amount of GBP188,318,000 (31 March 2017: GBP133,645,000) for properties which have been
    classified as held for sale, including the entire Swiss portfolio & Pilgrim Street (UK). The carrying amount of investment
    property is the fair value of the property as determined by registered independent appraisers having an appropriate
    recognised professional qualification and recent experience in the location and category of the property being valued
    ('valuers').
 
    The fair value of each of the properties for the period ended 30 September 2017 was assessed by the valuers in accordance
    with the Royal Institute of Chartered Surveyors ('RICS') standards and IFRS 13. Valuers are qualified for purposes of providing
    valuations in accordance with the 'Appraisal and Valuation Manual' published by RICS.
 
    The valuations performed by the valuers are reviewed internally by senior management. This includes discussions of the
    assumptions used by the valuers, as well as a review of the resulting valuations.
 
    Discussions of the valuations process and results are held between the senior management and the valuers on a 
    bi-annual basis. The Audit Committee reviews the valuation results and, provided the committee is satisfied with the results,
    recommends them to the board for approval.
 
    The valuation techniques used are consistent with IFRS13 and use significant 'unobservable' inputs. Investment properties
    are all at level 3 in the fair value hierarchy and valuations represent the highest and best use of the properties. There have
    been no changes in valuation techniques since the prior year.
 
    There are interrelationships between all these unobservable inputs as they are determined by market conditions.
    An increase in more than one unobservable input would magnify the impact on the valuation. The impact on the valuation
    would be mitigated by the interrelationship of two unobservable inputs moving in the opposite directions e.g. an increase
    in rent may be offset by an increase in yield, resulting in no net impact on the valuation. Expected vacancy rates may impact
    the yield with higher vacancy rates resulting in higher yield. All revenue is derived from the underlying tenancies given on the
    investment properties.
 
    All investment properties are mortgaged. Details of all borrowings can be seen in note 12. As at the date of signing this
    report, there are no restrictions on the realisability of any of the underlying investment properties, nor on the remittance of
    income and disposal proceeds.
 
    The key unobservable inputs used in the valuation of the Group's investment properties at 30 September 2017 are detailed
    in the table below:
 
    Combined
    portfolio                  Percentage         Market                          Annualised   Net initial
    (including share         of portfolio          value                               gross         yield
    of jointly                  by market        30 Sept                              rental     (weighted       WAULT     Voids
    controlled                      value           2017                  Area        income      average)   by rental   by area
    entities)                         (%)  (GBP million)  Properties    (m(2)) (GBP million)           (%)     (years)       (%)
    United Kingdom                   37.1          291.5          36   238,026          19.8          6.50         4.7       6.9
    Germany                          29.7          233.2          23    91,927          12.9          4.98         6.5       5.6
    Assets 
    held for sale                    24.0          188.3          10    50,072          11.2          4.45         5.8       4.5
     United Kingdom                   9.9           78.0           1     9,705           4.4          4.98         3.7       0.0
     Switzerland                     14.1          110.3           9    40,367           6.8          4.07         7.1       5.6
    Subtotal                         90.8          713.0          69   380,025          43.9          5.46         5.5       6.3
    Share of joint 
    ventures and 
    associates                        9.2           72.0           5    22,333           4.4          5.30         7.5       0.0
    Total                           100.0          785.0          74   402,358          48.3          5.45         5.7       5.9

                                                                                                          Reviewed       Audited
                                                                                                      30 September      31 March
                                                                                                              2017          2017
                                                                                              Note         GBP'000       GBP'000   
    Opening balance                                                                                        470,603       576,757
    Properties acquired                                                                         14         127,000             -
    Capitalised expenditure                                                                                  3,437         1,643
    Disposals through the sale of property                                                                (21,345)       (5,346)
    Foreign exchange movement in foreign operations                                                          1,949        29,621
    Net fair value (loss)/gain on investment property - continuing operations                                (293)         2,431
    Net fair value loss on investment property - discontinued operations                                   (1,923)         (858)
    Transfer to assets classified as held for sale                                                        (54,673)     (133,645)
    Closing balance                                                                                        524,755       470,603
    Acquisitions        
    UK        
    Industrials Portfolio                                                                                  127,000             -
                                                                                                           127,000             -
    Disposals        
    Germany          
    Hermann (Burger King)                                                                                  (2,931)             -
    Swiss            
    Kantone (Granges-Paccot)                                                                              (15,414)             -
    Interlaken                                                                                                   -       (5,346)
    UK        
    GGP1 Limited - Uxbridge                                                                                (3,000)             -
                                                                                                          (21,345)       (5,346)
        
9.  Investments in associates

    Details of the Group's associates at the end of the reporting period are as follows:
                                                                                                                        % equity
                                                                                          Place of        Principal     owned by
    Name                                                                                  incorporation   activity    subsidiary

    Stenham European Shopping Centre Fund Limited ('SESCF')                               Guernsey        Fund            28.42*

    * 28.16% of the investment in the underlying property is held through SESCF, and 0.26% of the property investment is held via a wholly-owned
      subsidiary, Leatherback Property Holdings Limited, a company incorporated in the British Virgin Islands.

    During the period the Group sold its investment in Stenham Berlin Residential Fund Limited in which it had held a 5.24%
    holding at 31 March 2017.
   
    Associates are accounted for using the equity method in these consolidated financial statements.
   
    Summarised financial information in respect of each of the Group's associates is set out below:
  
                                                                                              Stenham       Stenham
                                                                                             European        Berlin
                                                                                             Shopping   Residential
                                                                                          Centre Fund          Fund
                                                                                              Limited       Limited        Total
                                                                                              GBP'000       GBP'000      GBP'000
    Reviewed 30 September 2017
    Non-current assets                                                                              -             -            -
    Assets held for sale                                                                            -             -            -
    Current assets                                                                              4,901             -        4,901
    Non-current liabilities                                                                         -             -            -
    Current liabilities                                                                       (1,001)             -      (1,001)
    Equity attributable to owners of the Company                                                3,900             -        3,900
    Revenue                                                                                     3,415        21,351        3,415
    Profit from continuing operations and total comprehensive income                            1,237         1,568        1,237
    Audited 31 March 2017   
    Non-current assets                                                                            141             -          141
    Assets held for sale                                                                      177,637        16,865      194,502
    Current assets                                                                              6,725        19,317       26,042
    Non-current liabilities                                                                         -             -            -
    Current liabilities                                                                     (128,328)         (498)    (128,826)
    Equity attributable to owners of the Company                                               56,175        35,684       91,859
    Revenue                                                                                    15,984        50,230       66,214
    (Loss)/profit from continuing operations and total comprehensive income                  (42,506)        19,598     (22,908)

    Reconciliation of the above summarised financial information to the carrying amount of the interest in the associates
    recognised in the financial statements:

                                                                                      Stenham           Stenham
                                                                                     European            Berlin
                                                                                     Shopping       Residential
                                                                                  Centre Fund              Fund
                                                                                      Limited           Limited            Total
                                                                                      GBP'000           GBP'000          GBP'000
    30 September 2017 
    Opening balance as at 1 April 2017                                                 15,994             1,869           17,863
    Share of associates' profit*                                                          350                71              421
    Share in associates disposed during the period                                   (15,603)           (1,992)         (17,595)
    Foreign exchange movement in foreign operations                                       435                52              487
    Closing balance                                                                     1,176                 -            1,176
    31 March 2017
    Opening balance as at 1 April 2016                                                 26,095             4,962           31,057
    Share of associates' (loss)/profit*                                              (12,053)             2,203          (9,850)
    Associate balance sheet adjustment                                                     16                 -               16
    Share in associates disposed during the year                                            -           (5,745)          (5,745)
    Distribution received from associates                                                   6                 -                6
    Foreign exchange movement in foreign operations                                     1,930               449            2,379
    Closing balance                                                                    15,994             1,869           17,863

    * The share of associates' profit includes the fair value movement in the underlying investments for the period. This is covered in 
      the subsequent paragraphs.

    Stenham European Shopping Centre Fund Limited ('SESCF')

    SESCF, in which the Group has a 28.42% interest completed the sale of its investment in the Nova Eventis Shopping
    Centre on 22 June 2017. The sale price of the property was EUR208.5 million less selling costs (equivalent to the value at
    31 March 2017) and any fair value movement in the underlying investment is reflective of the movement in the net asset
    value of SESCF and the property company which was sold.
    
    Stenham Berlin Residential Fund Limited ('SBRF')

    At 31 March 2017 SBRF's sole investment was its remaining holding of 623,868 shares in ADO Properties Limited. All of
    these shares were sold by 31 May 2017 and monies subsequently distributed to the SBRF shareholders by way of a share
    buyback in June 2017. SBRF's share price at 31 March 2017 was EUR1.85. This had risen to EUR1.92 at the date of share buyback
    in June 2017. Stenprop Germany Limited disposed of its entire shareholding of 1,180,251 shares at EUR1.92 per share realising
    EUR2,268,000. This represented a gain of EUR83,000 for the six months to 30 September 2017. The GBP equivalent was GBP71,000.
    
    At 30 September 2017, SBRF did not have any investment with its net assets consisting purely of cash required to pay the
    balance of buyback monies and, thereafter, liquidation costs.

10. Investment in joint ventures

    Details of the Group's joint ventures at the end of the reporting period are as follows:
                                                                                                                        % equity
                                                                     Place of              Principal                    owned by
    Name                                                             incorporation         activity                   subsidiary
    Luxembourg
    Elysion S.A.                                                     Luxembourg            Holding company                 50.00
    Elysion Braunschweig Sarl                                        Luxembourg            Property company                50.00
    Elysion Dessau Sarl                                              Luxembourg            Property company                50.00
    Elysion Kappeln Sarl                                             Luxembourg            Property company                50.00
    Elysion Winzlar Sarl                                             Luxembourg            Property company                50.00
    Guernsey 
    Stenpark Management Limited                                      Guernsey              Management company              50.00
    BVI 
    Stenprop Argyll Limited                                          BVI                   Holding company                 50.00
    Regent Arcade House Holdings Limited                             BVI                   Property company                50.00
    Republic of Ireland 
    Ardale Industrials Limited                                       Republic of Ireland   Management company              50.00

    Summarised consolidated financial information in respect of the Group's joint ventures is set out below. Where applicable
    these represent the consolidated results of the respective holding companies.
 
                                                                      Stenpark         Stenprop             Ardale
                                                       Elysion      Management           Argyll        Industrials
                                                          S.A.         Limited          Limited            Limited         Total
                                                       GBP'000         GBP'000          GBP'000            GBP'000       GBP'000
    Reviewed 30 September 2017
    Investment property                                 31,625               -           81,000                  -       112,625
    Current assets                                         336             186            4,334                  2         4,858
    Assets                                              31,961             186           85,334                  2       117,483
    Bank loans                                        (19,751)               -         (37,344)                  -      (57,095)
    Shareholder loan                                  (13,070)               -                -                  -      (13,070)
    Deferred tax                                         (573)               -                -                  -         (573)
    Financial liability                                  (330)               -            (838)                  -       (1,168)
    Current liabilities                                  (185)           (107)          (4,113)                (5)       (4,410)
    Liabilities                                       (33,909)           (107)         (42,295)                (5)      (76,316)
    Net (liabilities)/assets of joint ventures         (1,948)              79           43,039                (3)        41,167
    Net assets of joint ventures excluding
    shareholder loans                                   11,122              79           43,039                (3)        54,240
    Group share of net assets                           11,122              40           21,520                (2)        32,680
    Revenue                                              1,207             381            2,393                 31         4,012
    Interest payable                                     (888)               -            (559)                  -       (1,447)
    Tax expense                                          (158)               -                -                  -         (158)
    Profit from continuing operations and
    total comprehensive income excluding
    interest due to Group                                  912             109            1,709                 11         2,741
    Share of joint ventures prof
    due to the Group                                       912              56              855                  6         1,829

                                                                                             Stenpark       Stenprop
                                                                               Elysion     Management         Argyll
                                                                                  S.A.        Limited        Limited       Total
                                                                               GBP'000        GBP'000        GBP'000     GBP'000  
    Audited 31 March 2017                              
    Investment property                                                         30,385              -         80,997     111,382
    Current assets                                                                 450            258          3,826       4,534
    Assets                                                                      30,835            258         84,823     115,916
    Bank loans                                                                (19,393)              -       (37,313)    (56,706)
    Shareholder loan                                                          (12,435)              -              -    (12,435)
    Deferred tax                                                                 (453)              -              -       (453)
    Financial liability                                                          (502)              -        (1,236)     (1,738)
    Current liabilities                                                          (202)          (186)        (4,046)     (4,434)
    Liabilities                                                               (32,985)          (186)       (42,595)    (75,766)
    Net (liabilities)/assets of joint ventures                                 (2,150)             72         42,228      40,150
    Net assets of joint ventures excluding                                      10,285             72         42,228      52,585
    shareholder loans                              
    Group share of net assets                                                   10,285             36         21,114      31,435
    Revenue                                                                      2,313            822          4,509       7,644
    Interest payable                                                           (1,676)              -        (1,114)     (2,790)
    Tax expense                                                                  (327)              -              -       (327)
    Profit from continuing operations and                             
    total comprehensive income excluding                             
    interest due to Group                                                        2,270            611          1,708       4,589
    Share of joint ventures profit due to                               
    the Group                                                                    2,270            306            854       3,430
 
    Elysion S.A

    Stenprop owns 100% of the shares and shareholder loans in Bernina Property Holdings Limited (Bernina). Bernina in
    turn owns 50% of the issued share capital and 100% of the shareholder loans of Elysion S.A., a company incorporated in
    Luxembourg which is the beneficial owner of the Care Home portfolio. The remaining 50% of Elysion S.A. is owned by a joint
    venture partner who manages the portfolio.
    
    The acquired shareholder loans have attracted, and continue to attract, a 10% compounded interest rate since inception
    in 2007. The outstanding shareholder loan, which is wholly-owned by Stenprop, has been valued at the recoverable balance
    which is deemed equal to the net assets of the joint venture excluding the shareholder loan.

    Reconciliation of the above summarised financial information to the carrying amount of the interest recognised in the
    consolidated financial statements:

                                                                      Stenpark        Stenprop            Ardale
                                                     Elysion        Management          Argyll       Industrials
                                                        S.A.           Limited         Limited           Limited           Total
                                                     GBP'000           GBP'000         GBP'000           GBP'000         GBP'000
    Reviewed 30 September 2017
    Opening balance                                   10,283                37          21,115                 -          31,435
    Share in associates acquired during    
    the period                                             -                 -               -               (2)             (2)
    Share of joint venture profit                        912                56             855                 6           1,829
    Distribution received from joint venture           (388)              (53)           (450)               (6)           (897)
    Foreign exchange movement in foreign     
    operations                                           315                 -               -                 -             315
    Closing balance                                   11,122                40          21,520               (2)          32,680
    Audited 31 March 2017     
    Opening balance                                    8,163                32          21,536                 -          29,731
    Share of joint venture profit                      2,270               306             854                 -           3,430
    Distribution received from joint venture           (864)             (301)         (1,275)                 -         (2,440)
    Foreign exchange movement in foreign  
    operations                                           714                 -               -                 -             714
    Closing balance                                   10,283                37          21,115                 -          31,435

11. Assets held for sale and discontinued operations

    Asset held for sale

    Ten properties (the entire Swiss portfolio and Pilgrim Street) meet the conditions relating to assets held for sale, as per
    IFRS 5: Non-current Assets Held for Sale. The properties are expected to be disposed of during the next 12 months. The
    values have been determined by the directors based on the sale price per a letter of intent, a draft sales and purchase
    agreement, or in the case where this is not yet finalised, the fair value as determined by an independent third party valuer.
 
    The fair value of these properties, and their comparatives are shown in the table below:

                                                                                                      Reviewed           Audited
                                                                                                  30 September          31 March
                                                                                                          2017              2017
                                                                                                       GBP'000           GBP'000
    Investment properties                                                                              188,318           133,646
    Cash and cash equivalents                                                                            1,285               625
    Trade and other receivables                                                                          3,195             1,101
    Total assets classified as held for sale                                                           192,798           135,372
    Bank loans                                                                                          89,191            70,783
    Derivative financial instruments                                                                       546                 -
    Deferred tax                                                                                         3,839             4,344
    Accounts payable and accruals                                                                        4,408             1,073
    Liabilities directly associated with assets classified as held for sale                             97,984            76,200
 
    Discontinued operations

    Nine properties (the entire Swiss portfolio) have been recognised as discontinued operations in accordance with IFRS 5.
 
    The results of the discontinued operations were as follows:

                                                                                                     Reviewed           Reviewed
                                                                                                 30 September       30 September
                                                                                                         2017               2016
                                                                                                      GBP'000            GBP'000
    Net rental income                                                                                   2,517              2,739
    Operating costs                                                                                     (175)              (201)
    Net operating income                                                                                2,342              2,538
    Fair value movement of investment properties                                                      (1,923)                 50
    Profit from operations                                                                                419              2,588
    Other gains and losses                                                                              (106)                  -
    Net gain from fair value of derivative financial instruments                                            -                654
    Net finance costs                                                                                   (361)            (1,005)
    Net foreign exchange losses                                                                           (2)                  -
    (Loss)/profit for the year before taxation                                                           (50)              2,237
    Taxation                                                                                            (143)              (472)
    (Loss)/profit for the year from discontinued operations                                             (193)              1,765

    Disposals

    On 1 July 2017, the Group disposed of the Kantone Holdings Ltd properties known as Grange Paccot 1 & Grange Paccot
    2, Switzerland, for CHF20.0 million (equating to CHF19.9 million after disposal costs). At disposal, there was a loss of
    CHF0.1 million to the Group equating to the disposal costs, as the property was already held at a fair value equivalent to
    the sale price.

                                                                                                          Reviewed       Audited
                                                                                                      30 September      31 March
                                                                                                              2017          2017
                                                                                                           GBP'000       GBP'000
12. Borrowings
    Opening balance                                                                                        229,051       290,434
    Loan repayments                                                                                       (16,389)       (4,143)
    New loans                                                                                               75,108             -
    Amortisation of loans                                                                                  (1,401)       (3,536)
    Capitalised borrowing costs                                                                              (189)         (161)
    Amortisation of transaction fees                                                                           171           392
    Foreign exchange movement in foreign operations                                                          1,206        16,848
    Adjustment for liabilities directly associated with assets classified as held for sale
    adjustment (see note 11)                                                                              (18,408)      (70,783)
    Total borrowings                                                                                       269,149       229,051
    Amount due for settlement within 12 months                                                             115,937        83,787
    Amount due for settlement between one to three years                                                    79,677        79,265
    Amount due for settlement between three to five years                                                  162,726       136,782
    Amount due for settlement after five years                                                                   -             -
    Liabilities directly associated with assets classified as held for sale adjustment (see note 11)      (89,191)      (70,783)
                                                                                                           269,149       229,051
    Non-current liabilities
    Bank loans                                                                                             242,403       216,047
    Total non-current loans and borrowings                                                                 242,403       216,047
    The maturity of non-current borrowings is as follows: 
    One year to five years                                                                                 242,403       216,047
    More than five years                                                                                         -             -
                                                                                                           242,403       216,047
    Current liabilities 
    Bank loans                                                                                             115,937        83,787
    Liabilities directly associated with assets classified as held for sale adjustment (see note 11)      (89,191)      (70,783)
    Total current loans and borrowings                                                                      26,746        13,004
    Total loans and borrowings                                                                             269,149       229,051

    The facilities are secured by debentures and legal charges over the properties to which they correspond. There is no
    cross-collaterisation of the facilities. The terms and conditions of outstanding loans are as follows:

                                                                                             Nominal value       Carrying value*   
                                                  Loan                                     30 Sep    31 Mar    30 Sep     31 Mar
                                                  interest                    Maturity       2017      2017      2017       2017
    Facility                         Amortising   rate             Currency   date        GBP'000   GBP'000   GBP'000    GBP'000
    United Kingdom
    Laxton Properties Limited        No           LIBOR +1.4%      GBP        2020/05/08   27,540    27,540    27,379     27,348
    Normanton Properties Limited     No           LIBOR +1.4%      GBP        2019/03/25   37,050    37,050    36,982     36,958
    Davemount Properties Limited     No           LIBOR +2.25%     GBP        2021/05/26    4,000     4,000     3,971      3,967
    LPE Limited(1)                   Yes          LIBOR +2.5%      GBP        2020/03/31   36,108    30,000    35,619     29,620
    GGP1 Limited                     No           LIBOR +2.25%     GBP        2021/05/26    7,000     8,360     6,912      8,260
    Industrials UK(2)                No           LIBOR +2.25%     GBP        2022/06/02   69,000         -    69,000          -
    Switzerland(3)
    Algy Properties S.a.r.l.         Yes          LIBOR +1.5%      CHF        2018/03/31    2,437     2,590     2,437      2,590
    Bruce Properties S.a.r.l.        No           LIBOR +1.35%     CHF        2018/03/31    3,665     3,804     3,665      3,804
    David Properties S.a.r.l.        Yes          LIBOR +1.4%      CHF        2018/03/31    5,838     6,181     5,838      6,181
    Kantone Holdings Limited         Yes          LIBOR +1.05%     CHF        Footnote 3   22,350    39,205    22,350     39,205
    Polo Property GmbH               Yes          LIBOR +1.15%     CHF        Footnote 3   17,919    19,002    17,919     19,002
    Germany
    Century BV                       Yes          Euribor +1.65%   EUR        2017/12/31    8,393     8,254     8,388      8,238
    Century 2 BV                     Yes          Euribor +1.65%   EUR        2017/12/31    3,634     3,573     3,631      3,567
    Century 2 BV                     Yes          Euribor +1.65%   EUR        2017/12/31      760       748       760        746
    Stenham Beryl Limited            Yes          Euribor +1.85%   EUR        2018/04/30    4,644     4,599     4,644      4,599
    Stenham Crystal Limited          Yes          Euribor +1.85%   EUR        2018/04/30    3,878     3,841     3,878      3,841
    Stenham Jasper Limited           Yes          Euribor +1.85%   EUR        2018/04/30    4,745     4,700     4,745      4,700
    Isabel Properties BV             No           Euribor +2.50%   EUR        2021/12/31    7,937     7,699     7,937      7,699
    Bleichenhof GmbH & Co. KG        No                    1.58%   EUR        2022/02/28   74,906    72,655    74,906     72,655
    Stenprop Hermann Ltd             No           Euribor +1.13%   EUR        2020/06/30    8,316     8,066     8,296      8,042
    Stenprop Victoria Ltd            No           Euribor +1.28%   EUR        2020/08/31    9,084     8,811     9,084      8,811
                                                                                          359,204   300,678   358,341    299,833

    *   The difference between the nominal and the carrying value represents unamortised facility costs.
    (1) On 2 June 2017, LPE Limited entered into an amendment agreement with RBSI to extend their facility by a further GBP6.1 million. Per the
        amended facility agreement the full loan is repayable in March 2020. The margin on the debt increased by 0.5% to 2.5% for the period until
        the extended debt is repaid. This is expected to occur in December 2017. The all-in rate on this facility is 3.85% (including a swap of 1.35%).
        Finance costs associated with this transaction amounted to GBP189,000.
    (2) On 2 June 2017, an amount of GBP69.1 million was lent to Industrials UK by RBS for a period of five years, until 2 June 2022. GBP60.375 million 
        of the loan is covered by means of a swap at an all-in interest rate of 3.2% per annum (the balance incurs interest at LIBOR + a margin of 
        2.25% per annum).
    (3) All of the bank loans in respect of the Swiss properties were due for expiry on 31 March 2017. Given that all of the properties in the Swiss
        portfolio were held for sale at this date, the loans were re-financed on a short-term basis as follows:
    
       - Algy Properties Sarl extended its loan with Credit Suisse in the sum of CHF3,237,500, for a period of one year from 1 April 2017 at a loan
         interest rate of LIBOR +1.5 % and no swap (previous facility: LIBOR +1.3% +0.91% swap).
       - Bruce Properties Sarl extended its loan with Credit Suisse in the sum of CHF4,755,000, for a period of one year from 1 April 2017 at a loan
         interest rate of LIBOR +1.35 % and no swap (previous facility: LIBOR +1.25% +1.90% swap).
       - David Properties Sarl extended its loan with Credit Suisse in the sum of CHF7,725,000, for a period of one year from 1 April 2017 at a loan
         interest rate of LIBOR +1.4 % and no swap (previous facility: LIBOR +1.3% +1.73% swap).
       - Kantone Holdings Limited entered into a rolling credit facility with its existing lender, Union Bank of Switzerland ('UBS'). The credit 
         facility was for CHF49,000,000 at a loan interest rate of LIBOR +1.05 % and no swap (previous facility: LIBOR +1.05% +0.7% swap). As each 
         property within the Kantone portfolio is sold, partial repayments of the loan are to be made.
       - Polo Properties GmbH entered into a rolling credit facility with its existing lender, Union Bank of Switzerland ('UBS'). The credit facility was
         for CHF23,750,000 at a loan interest rate of LIBOR +1.15 % and no swap.

                                                                                                      Reviewed           Audited
                                                                                                  30 September          31 March
                                                                                                          2017              2017
                                                                                                       GBP'000           GBP'000
13. Other loans
    Loans                                                                                               34,080                 -
    Amortised borrowing costs                                                                            (119)                 -
    Foreign exchange movement                                                                              330                 -
    Interest                                                                                                76                 -
                                                                                                        34,367                 -

    On 2 June 2017 and 23 June 2017 the Group secured a bridging loan of EUR31 million from Bellerive SPV5 Limited, which
    attracts interest at 7% per annum. The loan is subject to a Group loan to value covenant of 65% and is repayable on
    13 June 2018. A further 12 month facility of EUR8 million was secured at an interest rate of 7% per annum from Peregrine
    Direct Limited. Drawdown was on 23 June 2017 and the loan is repayable within one year of the advance.

14. Acquisitions of subsidiaries (business combinations and asset acquisitions)

    Business combinations

    On 30 June 2017, the Group acquired 100% of the share capital of C2 Capital Limited which is the management platform
    that provides asset management and portfolio services to Industrials LP, the partnership which owns 25 multi-let industrial
    estates across the UK. Stenprop acquired the shares in C2 Capital Limited for GBP3.5 million, which was settled by the issue of
    3,270,500 Stenprop shares valued at EUR1.22 per share.
 
    Details of the assets and liabilities acquired and goodwill arising are as follows:

                                                                                                                      Attributed
                                                                                                                      fair value
                                                                                                                         GBP'000
    Investment in joint venture                                                                                              (1)
    Cash and cash equivalents                                                                                                 89
    Trade and other receivables                                                                                               52
    Trade and other payables                                                                                               (138)
    Fair value of acquired interest in net assets of subsidiary                                                                2
    Goodwill                                                                                                               3,500
    Total purchase consideration                                                                                           3,502

    Goodwill of GBP3.5 million arising as a result of the acquisition of C2 Capital Limited has subsequently been impaired in full
    during the period as the amount was not considered material to the Group.
 
    Asset acquisitions

    On 30 June 2017, the Group acquired 100% of the interests in Industrials UK LP which owns a portfolio of multi-let industrial
    properties (the 'MLI Portfolio'). The MLI Portfolio is made up of 25 separate multi-let industrial estates situated in or near
    densely populated nodes across the United Kingdom. The acquisition was effected through the acquisition of a Jersey
    unit trust (Industrials Investment Unit Trust) and a general partner (Industrials UK GP LLC) who together held 100% of the
    limited partnership.
 
    The total purchase consideration for the acquisition was calculated with reference to the net asset value of the three
    entities as at 30 June 2017 and which valued the properties at GBP127 million. The acquisition was financed by a loan of
    GBP69 million, proceeds from the share of associates disposed during the period and bridging loan facilities.

                                                                   Industrials                                             Total
                                                                    Investment  Industrials UK   Industrials UK       attributed
                                                                    Unit Trust          GP LLC               LP       fair value
                                                                       GBP'000         GBP'000          GBP'000          GBP'000
    Investment property                                                      -               -          127,000          127,000
    Cash and cash equivalents                                               23               6            2,954            2,983
    Trade and other receivables                                             52               -            1,208            1,260
    Trade and other payables                                              (14)             (4)          (4,234)          (4,252)
    External debt                                                            -               -         (69,133)         (69,133)
    Total purchase consideration settled in cash                            61               2           57,795           57,858

    Costs incurred in the acquisition of the MLI Portfolio amounted to GBP1.43 million. These acquisition costs were capitalised to
    the cost of the asset. At 30 September 2017, the investment was stated at fair value, and any movement was recognised as
    fair value movement in the statement of comprehensive income.

15. Financial risk management

    Fair value of financial instruments

    The following table summarises the Group's financial assets and liabilities into categories required by IFRS7 Financial
    instruments disclosures. The directors consider that the carrying amounts of financial assets and financial liabilities
    recorded at amortised cost in the financial statements approximate their fair values.
        
                                                                                          Held at                          Total
                                                                                       fair value                       carrying
                                                                                          through        Held at          amount
                                                                                           profit      amortised    30 September
                                                                                         and loss           cost            2017
                                                                                          GBP'000        GBP'000         GBP'000
    Financial assets           
    Cash and cash equivalents                                                                   -         26,063          26,063
    Accounts receivable                                                                         -          5,770           5,770
    Other debtors                                                                               -         14,030          14,030
                                                                                                -         45,863          45,863
    Financial liabilities           
    Bank loans                                                                                  -        269,149         269,149
    Other loans and interest                                                                    -         34,367          34,367
    Derivative financial instruments                                                        1,351              -           1,351
    Accounts payable and accruals                                                               -         15,746          15,746
    Reviewed 30 September 2017                                                              1,351        319,262         320,613
         
         
                                                                                          Held at                          Total
                                                                                       fair value                       carrying
                                                                                          through        Held at          amount
                                                                                           profit      amortised        31 March
                                                                                         and loss           cost            2017
                                                                                          GBP'000        GBP'000         GBP'000
    Financial assets        
    Cash and cash equivalents                                                                   -         25,202          25,202
    Accounts receivable                                                                         -          3,731           3,731
    Other debtors                                                                               -         11,713          11,713
                                                                                                -         40,646          40,646
    Financial liabilities           
    Bank loans                                                                                  -        229,051         229,051
    Derivative financial instruments                                                        2,972              -           2,972
    Accounts payable and accruals                                                               -         15,560          15,560
    Audited 31 March 2017                                                                   2,972        247,583         247,583

    Fair value hierarchy

    The table below analyses the Group's financial instruments carried at fair value, by valuation method. The different levels
    have been defined as follows:

    Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

    Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e.
    as prices) or indirectly (i.e. derived from prices).

    Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

                                                                      Total
                                                                  financial
                                                                instruments               
                                                                 recognised                 Designated at fair value
                                                              at fair value        Level 1           Level 2             Level 3
                                                                    GBP'000        GBP'000           GBP'000             GBP'000
    Reviewed 30 September 2017
    Liabilities
    Derivative financial liabilities                                  1,351              -             1,351                   -
    Total liabilities                                                 1,351              -             1,351                   -
    Audited 31 March 2017 
    Liabilities 
    Derivative financial liabilities                                  2,972              -            2,972                    -
    Total liabilities                                                 2,972              -            2,972                    -
    
    Details of changes in valuation techniques

    There have been no significant changes in valuation techniques during the period under review.

    Significant transfers between level 1, level 2 and level 3

    There have been no significant transfers during the period under review.

    Unobservable inputs

    Investment properties are considered level 3 and associated unobservable inputs are disclosed in note 8.

16. Related party transactions

    Parties are considered related if one party has control, joint control or significant influence over the other party in making
    financial and operating decisions. Transactions with related parties are made on terms equivalent to those that prevail in an
    arm's-length transaction.

    Other than those further referred to below, there were no other related party transactions during the period ended
    30 September 2017.

    During the normal course of business, some directors of the Company are also directors of administered and managed
    entities and all transactions between these companies are conducted on an arm's-length basis.

    P Arenson, a director of the Company, is also a director of Stenham Limited which at 30 September 2017 had an indirect
    beneficial interest of 4.77% in Stenprop Limited through its wholly-owned subsidiary, Stenham Group Limited ('SGL')
    (March 2017: 4.85%).

    At 30 September 2017, P Arenson held no interest in the share capital of Stenham Limited (March 2017: 1.13%).

    M Yachad is a non-executive director of the Company and an executive director of Peregrine Holdings Limited ('PHL'),
    which as at 30 September 2017, had a beneficial interest (direct and indirect) of 6.93% in the shares of the Company
    (March 2017: 6.51%).

17. Events after the reporting period

    (i)   Sale of Swiss property

          At the balance sheet date, all of the properties within the Swiss portfolio were classified as assets held for sale.
          On 30 October 2017 the sale of one of these properties, located in Cham, was completed at a sale price of
          CHF14.2 million.

    (ii)  Signing of sale and purchase agreement of shares in subsidiary relating to UK property

          On 20 November 2017, a sale and purchase agreement was signed in respect of the entire share capital of Normanton
          Properties Limited, a subsidiary of the Group, which owns the property known as Pilgrim Street in the City of London.
          The sale of the shares values the property at GBP80.9 million, a sale price above the 30 September 2017 valuation of
          GBP78.0 million. Completion is conditional upon the buyer receiving written confirmation from a lender that debt
          finance on commercially acceptable terms will be available to the buyer at completion for the purposes of funding the
          acquisition of the shares. Failure to fulfil this condition by no later than 8 December 2017 will result in termination of
          the agreement, and a payment of GBP250,000 by the buyer to the seller. Subject to fulfilment of the condition mentioned
          below, completion is expected to be on 20 December 2017, but no later than 12 January 2018. Failure to complete by
          this date due to a default by the buyer will result in the Group retaining the deposit of GBP4.03 million which was paid by the
          buyer on exchange.

    (iii) Acquisition of UK multi-let industrial estate

          On 17 November 2017, a multi-let industrial estate located in Aberdeen, Scotland, was acquired for GBP4.4 million
          including acquisition costs.

    (iv)  Related party transactions

          Post the reporting period, PHL disposed of its entire shareholding (including the shares in Stenprop held by SGL) to
          Sandown Capital International Limited, a wholly-owned subsidiary of Sandown Capital Limited ('SCL'). M Yachad is a
          non-executive director of SCL.

  Corporate information

  STENPROP LIMITED                       SA transfer secretaries                BSX sponsor
  (Incorporated in Bermuda)              Computershare Investor Services        Estera Securities (Bermuda) Limited
  Registration number: 47031             Proprietary Limited                    (Registration number 25105)
  BSX share code: STP.BH                 (Registration number 2004/003647/07)   Canon's Court
  JSE share code: STP                    Rosebank Towers                        22 Victoria Street
  ISIN: BMG8465Y1093                     15 Biermann Avenue                     Hamilton, HM12, Bermuda
                                         Rosebank, 2196                         (Postal address the same as the
  Registered office of the Company       South Africa                           physical address above)
  Stenprop Limited
  (Registration number 47031)            Correspondence address                 Bermudian registrars
  20 Reid Street                         PO Box 61051                           Computershare Investor Services
  3rd Floor, Williams House              Marshalltown, 2107                     (Bermuda) Limited
  Hamilton, HM11                         South Africa                           (Company number 41776)
  Bermuda                                                                       Corner House
                                         Legal advisors                         20 Parliament Street
  Company secretary                      Berwin Leighton Paisner LLP            Hamilton, HM12
  Apex Corporate Services Ltd.           Adelaide House                         Bermuda
  (Registration number 33832)            London Bridge
  3rd Floor, Williams House              London, EC4R 9HA                       Correspondence address
  20 Reid Street                         United Kingdom                         2nd Floor, Queensway House
  Hamilton HM11, Bermuda                                                        Hilgrove Street
  (PO Box 2460 HM JX, Bermuda)           Postal address of the Company          St. Helier
                                         Kingsway House                         Jersey
  JSE sponsor                            Havilland Street                       JE1 1ES
  Java Capital Trustees and Sponsors     St Peter Port, GY1 2QE                 Channel Islands
  Proprietary Limited                    Guernsey
  (Registration number 2006/005780/07)                                          Auditors
  6A Sandown Valley Crescent             South African corporate advisor        Deloitte LLP          
  Sandown                                Java Capital Proprietary Limited       Regency Court
  Sandton, 2196                          (Registration number 2012/089864/07)   Glategny Esplanade    
  South Africa                           6A Sandown Valley Crescent             St Peter Port
  (PO Box 2087, Parklands, 2121)         Sandown                                GY1 3HW  
                                         Sandton, 2196                          Guernsey
                                         South Africa                           Channel Islands
                                         (PO Box 2087, Parklands, 2121)
  
  www.stenprop.com



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