Abridged unaudited financial statements for the three and nine months ended 30 November 2017 Atlantic Leaf Properties Limited (Incorporated in the Republic of Mauritius) (Registration number: 119492 C1/GBL) SEM share code: "ALPL.N0000" JSE share code: "ALP" ISIN: "MU0422N00009" www.atlanticleaf.mu ("Atlantic Leaf" or "the Company" or "the Group") ABRIDGED UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED 30 NOVEMBER 2017 DIRECTORS' COMMENTARY Atlantic Leaf is pleased to announce its results for the three and nine months ended 30 November 2017. Adjusted headline earnings per share at GBP 2.17 were slightly below the previous year (2016: GBP 2.22) due to the increase in the weighted number of shares in issue following the capital raise to finance the acquisition of a 45% interest in a joint venture ("JV") with LMP Retail Warehouse JV Holdings Limited concluded in September 2017. The JV comprises a portfolio of eleven properties in excellent regional locations throughout the United Kingdom tenanted by DFS Trading Limited. The Company's investment in the JV of GBP 24.8 million including acquisition costs was funded by the issue of 46.3 million shares in an accelerated book build on 20 September 2017 raising GBP 45.7 million in new equity. It is expected that this investment will contribute positively to the Company's future performance. As at the reporting date, excess cash raised from the bookbuild was allocated to our revolving credit facility to earn a better rate on the cash until these funds can be deployed into direct property assets. Long term borrowings are thus expected to increase as funds will be drawn—down to finance new acquisitions. The current portion of long term borrowings will be re—financed. The results for the three months ended 30 November 2017 are summarised as follows: 30 November 2016 30 November 2017 Assets Under Management (GBP million)* 305 342 +12% Total Rental Revenue (GBP million) 5.0 5.7 +14% Adjusted HEPS (GBP pence per share) 2.22 2.17 —1% No. of shares in issue 142,671,209 188,976,628 +32% * includes investment properties, investment in JV, listed investments and cash PROSPECTS The Company remains on track to achieve its forecast full year distribution of 9.1 GBP pence per share, which would represent an increase of 7.1% over the prior year. This forecast is based on the Company's current portfolio, and no material change in market conditions. This forecast has not been reviewed by the Company's external auditors. The UK commercial property sector remains very active. The strong forward property yield of 7.3% on the Company's portfolio is underpinned by quality commercial and industrial properties in excellent regional locations throughout the United Kingdom. VUKILE MANDATORY OFFER On 3 November 2017 Vukile Property Fund Limited ("Vukile") made a mandatory offer to the shareholders of the Company. The offer closed on 8 December 2017 and was accepted by shareholders holding 7 489 Atlantic Leaf shares, comprising 0.004% of the Atlantic Leaf shares in issue. Accordingly, Vukile now holds 65 958 606 Atlantic Leaf shares, which constitutes 34.9% of the issued share capital of Atlantic Leaf. SUBSEQUENT EVENTS Post the reporting period and as announced on SENS on 21 December 2017, the Company acquired a distribution warehouse in Crewe Gates Industrial Estate, Crewe in the United Kingdom for GBP 11.9 million including transaction costs. This was financed from funds which had been allocated to the revolving credit facility. By order of the Board Intercontinental Trust Limited Company Secretary 11 January 2018 STATEMENT OF FINANCIAL POSITION Group Group Group Unaudited Unaudited Audited as at as at as at 30—Nov—2017 30—Nov—2016 28—Feb—2017 GBP GBP GBP ASSETS Non—current assets 335 567 662 284 423 420 303 920 316 Investment properties 303 494 000 282 780 628 303 068 000 Investment in joint venture 24 826 214 — — Listed investments 7 097 325 633 057 702 193 Loan receivable — 1 009 735 — Other receivable 150 123 — 150 123 Current assets 11 282 668 23 209 371 14 031 369 Trade and other receivables 4 987 813 1 991 968 1 335 291 Cash and cash equivalents 6 294 855 21 217 403 12 696 078 Total Assets 346 850 330 307 632 791 317 951 685 Equity and Liabilities Equity 197 671 106 154 983 173 154 796 268 Share capital 198 484 877 152 786 592 152 772 761 Cash flow hedge reserve (804 259) (1 616 733) (1 880 949) Retained earnings (9 512) 3 813 314 3 904 456 Liabilities Non—Current liabilities 117 708 953 136 948 678 149 574 995 Long—term borrowings 117 708 953 136 948 678 149 574 995 Current liabilities 31 470 271 15 700 940 13 580 422 Trade and other payables 3 802 836 5 838 880 3 662 997 Current portion of long—term borrowings 14 216 307 6 922 000 7 038 750 Short term borrowings 2 406 063 — — Tax payable 1 618 663 1 211 199 887 088 Dividend payable 8 503 948 — — Derivative financial instruments 922 454 1 728 861 1 991 587 Total Equity and Liabilities 346 850 330 307 632 791 317 951 685 Number of shares in issue 188 976 628 142 671 209 142 671 209 Net asset value per share (GBP) 1.05 1.09 1.08 Net asset value per share excluding cash flow hedge reserve 1.05 1.10 1.10 STATEMENT OF CHANGES IN EQUITY Cash flow Stated Retained hedge Capital Earnings reserve Total GBP GBP GBP GBP Balance at 1 March 2016 132 854 283 4 959 307 (1 783 633) 136 029 957 Profit for the period — 8 993 364 — 8 993 364 Dividends — (10 139 357) — (10 139 357) Issue of shares (net of transaction costs) 19 932 309 — — 19 932 309 Other comprehensive income — — 166 900 166 900 Balance at 30 November 2016 152 786 592 3 813 314 (1 616 733) 154 983 173 Profit for the period — 91 147 — 91 147 Dividends — (5) — (5) Issue of shares (net of transaction costs) (13 831) — — (13 831) Other comprehensive income — — (264 216) (264 216) Balance at 28 February 2017 152 772 761 3 904 456 (1 880 949) 154 796 268 Profit for the period — 10 724 842 — 10 724 842 Dividends — (14 638 810) — (14 638 810) Issue of shares (net of transaction costs) 45 712 116 — — 45 712 116 Other comprehensive income — — 1 076 690 1 076 690 Balance at 30 November 2017 198 484 877 (9 512) (804 259) 197 671 106 STATEMENT OF CASH FLOWS Group Group Group Unaudited Unaudited Audited Nine Months Nine Months Year ended ended ended 30—Nov—2017 30—Nov—2016 28—Feb—2017 GBP GBP GBP Cash generated from operations 20 556 311 14 323 920 17 162 555 Interest received 30 680 202 749 204 980 Finance costs (3 256 500) (2 745 195) (4 182 627) Tax paid (491 154) (210 145) (906 750) Net cash from operating activities 16 839 337 11 571 329 12 278 158 Cash flows from investing activities Acquisition of investment properties (426 000) (97 581 510) (114 685 033) Investment in joint venture (25 660 407) — — Sale of investment property — 11 300 000 11 300 000 Deposit paid for acquisition of properties — 6 000 000 — Acquisition of listed investments (6 468 648) — — Dividends received 894 906 21 187 23 643 Loan to APIL — 5 723 996 6 733 730 Net cash from/(utilised in) investing activities (31 660 149) (74 536 327) (96 627 660) Cash flow from financing activities Proceeds from issue of shares 45 712 116 19 932 310 19 430 385 Proceeds from borrowings 2 406 063 75 480 116 88 499 186 Repayment of borrowings (25 109 000) (7 401 035) (7 713 000) Financial liabilities repaid — (163 239) — Dividends paid (14 638 810) (10 139 357) (9 651 269) Net cash (utilised in)/from financing activities 8 370 369 77 708 795 90 565 302 (Decrease)/Increase in cash and cash equivalents (6 450 443) 14 743 797 6 215 800 Cash and cash equivalents at beginning of the year 12 696 078 6 223 292 6 223 292 Effects of exchange difference on cash and cash equivalents 49 220 250 314 256 986 Cash and cash equivalents 6 294 855 21 217 403 12 696 078 RECONCILIATION OF BASIC EARNINGS TO DISTRIBUTABLE EARNINGS Group Group Group Group Group Unaudited Unaudited Unaudited Unaudited Audited Three months Nine months Three months Nine months Year ended ended ended ended ended 30—Nov—2017 30—Nov—2017 30—Nov—2016 30—Nov—2016 28—Feb—2017 GBP GBP GBP GBP GBP Basic earnings 4 295 577 10 724 842 3 746 130 8 993 362 9 084 511 Less: Fair value adjustments to investment properties 285 892 932 646 727 650 1 374 405 4 384 351 Profit on disposal of investment property — — (1 062 299) (1 062 299) (1 062 312) Headline earnings 4 581 469 11 657 488 3 411 481 9 305 468 12 406 550 Exclude: Fair value adjustments to listed investments 91 071 82 578 — — — Fair value adjustments to properties in associate (494 725) (494 725) — — — Straight line lease adjustments (285 892) (932 646) (323 377) (970 132) (1 293 509) Once—off transaction costs — — (406 030) — 365 725 Fair value loss on cash flow hedges transferred — — 163 658 163 658 163 658 Adjusted headline earnings/Distributable earnings 3 891 923 10 312 695 2 845 732 8 498 994 11 642 424 Weighted average number of shares in issue 179 308 464 154 626 426 128 425 063 125 413 564 129 548 965 Basic and diluted earnings per share (GBP pence) 2.40 6.94 2.92 7.17 7.01 Basic and diluted headline earnings per share (GBP pence) 2.56 7.54 2.66 7.42 9.58 Adjusted headline earnings per share (GBP pence) 2.17 6.67 2.22 6.78 9.00 Interim dividend — 8 503 948 — 4 936 284 5 203 084 Final dividend — — — — 6 134 862 Total dividend — 8 503 948 — 4 936 284 11 337 940 Interim dividend per share (GBP pence) — 4.50 — 4.20 4.20 Final dividend per share (GBP pence) — — — — 4.30 Total dividend per share (GBP pence) — 4.50 — 4.20 8.50 SEGMENTAL REPORTING – UNAUDITED NINE MONTHS ENDED 30 NOVEMBER 2017 Retail Industrial Office Warehouse Unallocated Total GBP GBP GBP GBP GBP Statement of profit or loss Revenue 12 571 950 4 248 574 315 600 932 646 18 068 770 Income from joint venture 364 990 — 500 541 — 865 531 Fair value adjustments — — — (1 015 224) (1 015 224) Interest expense (2 691 182) (877 199) (75 189) (5 630) (3 649 200) Income tax (883 403) (87 528) (60 945) (190 853) (1 222 729) Adjusted headline earnings 7 651 375 2 970 555 406 509 (715 744) 10 312 695 Statement of financial position Additions to investment property 426 000 — — — 426 000 Additions through investment in joint venture 5 157 127 — 19 669 087 — 24 826 214 Total assets 227 201 773 77 321 234 25 479 087 16 848 236 346 850 330 Total borrowings 90 262 039 39 496 296 2 166 925 2 406 063 134 331 323 SEGMENTAL REPORTING – UNAUDITED NINE MONTHS ENDED 30 NOVEMBER 2016 Retail Industrial Office Warehouse Unallocated Total GBP GBP GBP GBP GBP Statement of profit or loss Revenue 11 479 296 2 871 568 339 819 970 132 15 660 815 Profit on disposal of investments 1 062 299 — — — 1 062 299 Fair value adjustments (197 208) (207 065) — (1 173 117) (1 577 390) Interest expense (2 652 228) (560 981) (96 510) — (3 309 719) Income tax (790 710) (268 573) (10 714) (54 029) (1 124 026) Adjusted headline earnings 6 157 026 1 786 807 186 121 369 040 8 498 994 Statement of financial position Additions to investment property 81 613 222 15 968 288 — — 97 581 510 Total assets 222 260 948 54 840 251 5 900 000 24 631 592 307 632 791 Total borrowings 112 279 555 29 382 534 2 208 589 — 143 870 678 STATEMENT OF COMPREHENSIVE INCOME Group Group Group Group Group Unaudited Unaudited Unaudited Unaudited Audited Three months Nine months Three months Nine months Year ended ended ended ended ended 30—Nov—2017 30—Nov—2017 30—Nov—2016 30—Nov—2016 28—Feb—2017 GBP GBP GBP GBP GBP Rental revenue 5 736 051 17 136 124 5 005 240 14 690 683 20 035 401 Straight—line lease income adjustment 285 892 932 646 323 377 970 132 1 293 509 Revenue 6 021 943 18 068 770 5 328 617 15 660 815 21 328 910 Property operating expenses (214 319) (646 412) (224 474) (659 915) (862 555) Other operating expenditure (657 825) (1 863 725) (118 068) (1 492 228) (2 401 771) Operating income 5 149 799 15 558 633 4 986 075 13 508 672 18 064 584 Income from joint venture 865 531 865 531 — — Other income — 14 172 74 1 429 1 935 Investment income 77 332 124 439 21 442 181 783 196 770 Profit on disposal of investment property — — 1 062 299 1 062 299 1 062 312 Profit on foreign exchange 8 695 49 220 195 526 250 314 256 986 Fair value adjustments (376 963) (1 015 224) (961 608) (1 577 390) (4 518 202) Finance costs (1 171 760) (3 649 200) (1 136 836) (3 309 719) (4 483 354) Profit before taxation 4 552 634 11 947 571 4 166 972 10 117 388 10 581 031 Taxation (257 057) (1 222 729) (420 842) (1 124 026) (1 496 520) Profit after taxation 4 295 577 10 724 842 3 746 130 8 993 362 9 084 511 Other comprehensive incom Items that will be reclassified subsequently to profit or loss Fair value movement on interest rate swaps 754 381 1 076 690 1 315 860 166 900 (97 316) Total comprehensive income 5 049 958 11 801 532 5 061 990 9 160 262 8 987 195 RELATED PARTY TRANSACTIONS The related party transactions are detailed below: Per the Property Services Agreement ("PSA"), fees for the quarter paid to Martial Eagle Limited amounted to GBP 419 157 (2016: GBP 338 384). NOTES The Company is required to publish financial results for the three and nine months ended 30 November 2017 in terms of Listing Rule 12.19 of the Stock Exchange of Mauritius Ltd ("SEM"). The abridged unaudited financial statements for the three and nine months ended 30 November 2017 ("financial statements") have been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards ("IFRS"), the requirements of the SAICA Financial Reporting Guides as issued by the Accounting Practice Committee, the SEM Listing Rules, the Securities Act of Mauritius 2005, the JSE Listings Requirements and contains the information required by IAS 34: Interim Financial Reporting. The accounting policies and methods of computation adopted in the preparation of these financial statements are in terms of IFRS and consistent with those applied in the preparation of the audited financial statements for the year ended 28 February 2017. These financial statements were approved by the Board on 11 January 2018. The financial statements have not been reviewed or reported on by the Company's external auditors. Copies of the abridged unaudited financial statements and the Statement of direct and indirect interests of each officer of the Company, pursuant to Rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007 of Mauritius, are available free of charge, upon request at the Registered Office of the Company at c/o Intercontinental Trust Limited, Level 3, Alexander House, 35 Cybercity, Ebene 72201, Mauritius. Contact person: Mrs. Smitha Algoo. This communique is issued pursuant to SEM Listing Rules 11.3 and 12.20 and Section 88 of the Securities Act of Mauritius 2005. The Board accepts full responsibility for the accuracy of the information contained in these financial statements and this announcment. The Directors of the Company have disclosed all material matters or circumstances arising subsequent to the period ended 30 November 2017 that require any additional disclosure or adjustment to the financial statements. Atlantic Leaf has primary listings both on the Official Market of the SEM and on the Main Board of the JSE Limited. JSE sponsor SEM authorised representative and sponsor Java Capital +27 11 722 3050 Perigeum Capital Ltd +230 402 0890 Company secretary Intercontinental Trust Limited +230 403 0800 Date: 11/01/2018 03:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.