GREENBAY PROPERTIES LIMITED - Condensed unaudited consolidated interim financial statements for the three and nine months ended 30 June 2018

Release Date: 08/08/2018 07:05
Code(s): GRP
 
Wrap Text
Condensed unaudited consolidated interim financial statements for the three and nine months ended 30 June 2018

Greenbay Properties Ltd
Incorporated in the Republic of Mauritius
Reg No C124756 C1/GBL 
ISIN MU0461N00007
SEM share code: GFP.N0000 and
JSE share code: GRP
("Greenbay" or "the company" or "the group")

www.greenbayprop.mu

Condensed unaudited consolidated interim financial statements 
for the three and nine months ended 30 June 2018

Directors' commentary

Nature of the business
Greenbay is a Category One Global Business Licence company registered in 
Mauritius. The company has primary listings on both the Official Market of the 
Stock Exchange of Mauritius Ltd ("SEM") and the Main Board of the Johannesburg 
Stock Exchange Limited ("JSE"). Greenbay invests globally in direct property, 
and in listed real estate and infrastructure securities.

Commentary
The company generated solid results for the quarter ended June 2018. The net 
asset value per share increased from 8,82 EUR cents at March 2018 to 
9,41 EUR cents at June 2018, an increase of 6,7%. In absolute terms the 
net asset value increased by EUR55,2 million, after paying a cash dividend 
of EUR27,4 million during the period. The most significant contributor to the 
increase in net asset value was the company's investments in infrastructure-
focused equities.

A substantial toll road and bridge project was identified for acquisition at 
the beginning of the year, however failed the due diligence process. Greenbay 
was out-bid on two other direct infrastructure projects. With the current 
global market uncertainties, the bidding process for participation in an 
international airport transaction has been postponed by the seller.

Greenbay has successfully acquired the remaining share in its two retail 
assets in Portugal following shareholder approval of the acquisition on 
2 August 2018. The major asset, Forum Coimbra, continues to perform well.
Greenbay is also considering other jurisdictions for direct retail property 
investments that offer better growth and value opportunities than currently 
available in Iberia. Based on feedback from investors, the board confirms 
that direct and indirect property holdings will constitute the majority 
of the investments of the company.

Greenbay continues to trade below its net asset value per share and the 
board has accordingly decided to replace the existing share repurchase 
programme with a pro rata share repurchase offer whereby the company 
repurchases up to 30% of its shares in issue. A circular to shareholders 
in this regard, together with a notice of general meeting, is in the process 
of being prepared and will be published in due course, following the 
required regulatory approvals. Shareholders should note that the current 
repurchase programme will remain in place until shareholder approval of 
the proposed pro rata share repurchase offer is obtained.

Summary of financial performance
                                                  Net asset
                   Dividend                       value per        Loan-to
                  per share          Shares in        share          value
                  EUR cents              issue    EUR cents          ratio*
Jun 2017                  -      7 037 912 566         8,74           20,7% 
Sep 2017             0,2360      9 322 176 525         9,59           10,1% 
Dec 2017                  -      9 488 106 526         9,68           28,7% 
Mar 2018             0,2885      9 488 106 526         8,82           31,3%
Jun 2018                  -      9 486 106 526         9,41           35,1%

* The loan-to-value ratio is calculated by dividing total interest-bearing 
borrowings, adjusted for cash, by the total of investments in property, listed 
securities and loans advanced. The ratio is based on the management accounts.

Outlook
The delay in the completion of the Portuguese acquisition due to unforeseen 
circumstances, and the board's decision to reduce the current leverage through 
sales in the listed portfolio, will result in a reduction in the forecast 
distribution growth for the 2018 financial year to between 15% and 20%. The 
2019 financial year distribution forecast will be updated in November 2018 
with the release of the annual results, when there will be greater certainty 
on new direct acquisitions.

The revised distribution forecast is based on the following assumptions:
-  That a stable global macro-economic environment will prevail;
-  That there will be no failures of listed real estate or infrastructure 
securities or of investment counterparties;
-  That there will be no material changes in the regulatory or taxation 
environment; and
-  That no further direct property and infrastructure investments will be made.

This forecast statement and the assumptions underlying such statement are the 
responsibility of the board and have not been reviewed or reported on by 
the company's external auditors.

By order of the board 

Intercontinental Trust Ltd
Company secretary

Mauritius - 8 August 2018


Consolidated statement of comprehensive income

                        Unaudited     Unaudited     Unaudited     Unaudited
                          for the       for the       for the       for the
                      nine months   nine months  three months  three months
                            ended         ended         ended         ended
                         Jun 2018      Jun 2017      Jun 2018      Jun 2017
                              EUR           EUR           EUR           EUR
Net rental and
related revenue         2 594 278     3 358 619       981 011     1 044 224
Recoveries and 
contractual rental
revenue                 4 406 720     4 515 653     1 447 275     1 519 261
Straight-lining of 
rental revenue
adjustment                    (69)        1 122          (115)            4
Rental revenue          4 406 651     4 516 775     1 447 160     1 519 265
Property operating
expenses               (1 812 373)   (1 158 156)     (466 149)     (475 041)
Income from equity
derivatives            30 795 191    18 847 017    10 415 817     7 819 551
Income from
investments            13 335 808       148 425     7 916 837       111 845
Total revenue          46 725 277    22 354 061    19 313 665     8 975 620
Fair value 
(loss)/gain on 
investment property, 
investments and
derivatives           (21 768 629)   (2 099 709)   49 343 133    (1 130 257)
Fair value
(loss)/gain on
investments            (1 631 326)      808 736    24 619 499       502 059
Fair value 
(loss)/gain
on equity derivatives (19 118 686)   (2 907 323)   30 361 862    (1 632 312)
Adjustment resulting 
from straight-lining
of rental revenue              69        (1 122)          115            (4)
Profit on sale of 
investment property
under development       2 223 157             -         1 794             -
Impairment of 
Greenbay share 
incentive loans          (681 495)            -        29 212             -
Fair value loss on
currency derivatives   (2 560 348)            -    (5 669 349)            -
Administrative  
expenses               (3 844 388)   (1 438 834)   (2 402 410)     (667 313)
Foreign exchange 
gain/(loss)             5 279 336   (15 272 249)   15 417 775    (9 805 074)
Income from joint
venture                 6 620 821       577 240     4 368 091       577 240
Operating
profit/(loss)          33 012 417     4 120 509    86 040 254    (2 049 784)
Net finance costs      (9 442 707)   (1 985 160)   (3 255 391)   (2 846 042) 
Finance income            429 718     2 841 639       102 940     1 714 028
Interest on share 
incentive loans            50 437        54 150         8 241        12 896
Interest received         379 281     2 787 489        94 699     1 701 132
Finance costs          (9 872 425)   (4 826 799)   (3 358 331)   (4 560 070) 
Interest on 
borrowings             (9 479 256)   (4 826 799)   (2 970 178)   (4 560 070)
Fair value 
adjustment on 
interest rate
derivatives              (393 169)            -      (388 153)            -
Other income              135 074             -       135 074             - 
Profit/(loss) 
before income tax      23 704 784     2 135 349    82 919 937    (4 895 826) 
Income tax             (1 031 352)     (795 583)     (187 413)     (289 875)
Profit/(loss) for 
the period 
attributable 
to equity holders 
of the company         22 673 432     1 339 766    82 732 524    (5 185 701)
Other comprehensive 
income net of tax:
Items that may 
subsequently be 
reclassified to 
profit or loss:
Exchange differences 
on translation of 
foreign operations
- subsidiaries              (796)             -        (1 783)            -
                            (796)             -        (1 783)            -
Total comprehensive 
income/(loss) for 
the period 
attributable to 
equity holders of 
the company           22 672 636      1 339 766    82 730 741    (5 185 701)
Basic earnings/
(loss) per share 
(EUR cents)                 0,24           0,02          0,87         (0,09)


Consolidated statement of financial position
                                    Unaudited         Audited      Unaudited
                                     Jun 2018        Sep 2017       Jun 2017
                                          EUR             EUR            EUR
Assets
Non-current assets                688 316 934     290 757 701    146 152 731
Investment property                57 916 707      57 498 838     56 732 861
Straight-lining of 
rental revenue adjustment               1 093           1 162          1 122
Investment property
under development                           -      13 942 548     13 818 470
Investment in and loans
to joint venture                   66 575 211      59 361 010     58 075 964
Greenbay share
incentive loans                     3 542 490         505 679      1 003 767
Investments                       556 524 869     159 448 464     16 520 547
Other non-current assets            3 756 564               -              - 
Current assets                    239 866 241     644 871 133    505 319 827
Trade and other receivables        24 763 900       4 457 081      4 024 002
Equity derivative cash margin      67 424 674     233 825 666    207 784 201
Cash and cash equivalents         147 677 667     406 588 386    293 511 624
Total assets                      928 183 175     935 628 834    651 472 558
Equity and liabilities
Total equity attributable 
to equity holders                 892 252 572     893 778 890    615 045 251
Stated capital                    917 719 017     892 382 767    605 264 538
Treasury shares                      (161 680)              -              -
Non-distributable reserve         (54 499 482)    (36 075 289)     1 662 737
Currency translation reserve      (11 029 575)    (11 028 779)   (11 028 765)
Retained earnings                  40 224 292      48 500 191     19 146 741
Total liabilities                  35 930 603      41 849 944     36 427 307
Non-current liabilities            24 118 705      25 144 714     25 500 069
Interest-bearing borrowings        23 714 094      24 714 857     25 500 069 
Deferred tax                          404 611         429 857              -
Current liabilities                11 811 898      16 705 230     10 927 238
Interest-bearing borrowings         1 428 598       1 374 996      1 374 996
Trade and other payables            9 940 724      14 670 411      9 050 537
Income tax payable                    442 576         659 823        501 705
Total equity and liabilities      928 183 175     935 628 834    651 472 558
Total number of shares 
in issue                        9 486 106 526   9 322 176 525  7 037 912 566
Net asset value per share 
(EUR cents)                              9,41            9,59           8,74


Consolidated statement of cash flows
                                                  Unaudited        Unaudited
                                                    for the          for the
                                                nine months      nine months
                                                      ended            ended
                                                   Jun 2018         Jun 2017
                                                        EUR              EUR
Operating activities
Cash generated by operations                     19 028 074       16 541 302
Income tax paid                                  (1 462 505)        (425 855) 
Dividends paid                                  (29 712 600)        (687 939)
Cash (outflow)/inflow from 
operating activities                            (12 147 031)      15 427 508
Investing activities
Share incentive loans (advanced)/repaid          (5 111 551)       1 599 870
Acquisition of listed security investments     (398 707 731)     (12 616 167) 
Improvement of investment property                 (417 800)        (499 024)
Proceeds from sale of investment property
under development                                16 165 705                - 
Investment in joint venture                      (1 373 232)     (38 483 224) 
Loan to joint venture                               (67 099)     (19 042 175)
Decrease/(increase) in equity 
derivative position                             147 281 510     (124 464 686) 
Cash outflow from investing activities         (242 230 198)    (193 505 406) 
Financing activities
(Decrease)/increase in interest-bearing
borrowings                                         (947 161)      26 875 065
Interest received                                   379 281        2 787 489
Interest paid                                    (9 479 256)      (4 826 799) 
Purchase of treasury shares                        (161 680)               - 
Proceeds from share issuances                     5 675 326      230 456 921
Cash (outflow)/inflow from 
financing activities                             (4 533 490)     255 292 676 
(Decrease)/increase in cash and 
cash equivalents                               (258 910 719)      77 214 778
Cash and cash equivalents at 
beginning of the period                         406 588 386      216 296 846
Cash and cash equivalents at end 
of the period                                   147 677 667      293 511 624
Cash and cash equivalents consist of:
Current accounts                                147 677 667      293 511 624


Consolidated statement of changes in equity
                                                                        Non-
                                    Stated         Treasury    distributable
                                   capital           shares          reserve
                                       EUR              EUR              EUR
Restated1 at Sep 2016          364 806 890                -       19 034 695
Translation of historical 
equity on change of 
presentation currency
Issue of shares:               220 726 841
- 1 324 503 311 shares 
on 27 Mar 2017                 144 979 034
- 620 000 000 shares 
on 12 Jun 2017                  75 747 807
Profit for the period
Dividend paid - final 2016       5 588 558
- scrip issue: 
56 962 424 shares                5 588 558
- cash
Dividend paid - interim 2017    14 142 249
- scrip issue 
- 115 613 498 shares 
on 14 Jun 2017                  14 142 249
- cash
Transfer to non-
distributable reserve                                            (17 371 958) 
Balance at Jun 2017            605 264 538                -        1 662 737
Issue of shares: 
2 284 263 959 shares 
on 22 Aug 2017                 287 118 229
Exchange differences on 
translation of foreign 
operations
Loss for the period
Transfer to non-
distributable reserve                                            (37 738 026) 
Balance at Sep 2017            892 382 767                 -     (36 075 289) 
Issue of shares: 
36 414 535 shares 
on 14 Dec 2017                   5 675 326
Share repurchase 
- 2 000 000 shares                                  (161 680) 
Dividend paid - final 2017      19 660 924
- scrip issue 
- 129 515 466 shares 
on 20 Dec 2017                  19 660 924
- cash
Dividend paid 
- interim 2018: cash
Exchange differences on 
translation of foreign 
operations
Profit for the period
Transfer to non-
distributable reserve                                             (18 424 193)
Balance at Jun 2018            917 719 017          (161 680)     (54 499 482)


                                  Currency          
                               translation         Retained            Total
                                   reserve         earnings           equity
                                       EUR              EUR              EUR
Restated1 at Sep 2016          (20 758 845)      20 853 763      383 936 503
Translation of historical 
equity on change of
presentation currency            9 730 080                         9 730 080
Issue of shares:                                                 220 726 841
- 1 324 503 311 shares 
on 27 Mar 2017                                                   144 979 034
- 620 000 000 shares 
on 12 Jun 2017                                                    75 747 807
Profit for the period                             1 339 766        1 339 766
Dividend paid - final 2016                       (5 873 040)        (284 482)
- scrip issue: 
56 962 424 shares                                (5 588 558)               -
- cash                                             (284 482)        (284 482) 
Dividend paid - interim 2017                    (14 545 706)        (403 457)
- scrip issue 
- 115 613 498 shares 
on 14 Jun 2017                                  (14 142 249)               -
- cash                                             (403 457)        (403 457) 
Transfer to non-
distributable reserve                            17 371 958                - 
Balance at Jun 2017            (11 028 765)      19 146 741      615 045 251
Issue of shares: 
2 284 263 959 shares 
on 22 Aug 2017                                                   287 118 229
Exchange differences on 
translation of foreign
operations                             (14)                              (14) 
Loss for the period                              (8 384 576)      (8 384 576) 
Transfer to non-
distributable reserve                            37 738 026                -
Balance at Sep 2017            (11 028 779)      48 500 191      893 778 890
Issue of shares: 
36 414 535 shares 
on 14 Dec 2017                                                     5 675 326
Share repurchase -
2 000 000 shares                                                    (161 680)
Dividend paid - final 2017                      (22 000 337)      (2 339 413)
- scrip issue 
- 129 515 466 shares 
on 20 Dec 2017                                  (19 660 924)               -
- cash                                           (2 339 413)      (2 339 413)
Dividend paid 
- interim 2018: cash                            (27 373 187)     (27 373 187) 
Exchange differences on
translation of foreign 
operations                            (796)                             (796)
Profit for the period                            22 673 432       22 673 432
Transfer to non-
distributable reserve                            18 424 193                -
Balance at Jun 2018            (11 029 575)      40 224 292      892 252 572

1  The restated figures are based on the audited consolidated financial
statements for the year ended September 2016 and were translated from GBP 
to EUR.


Notes
1. Preparation and accounting policies
The condensed unaudited consolidated interim financial statements for the three 
and nine months ended 30 June 2018 ("interim financial statements") have been 
prepared in accordance with the measurement and recognition requirements of 
IFRS, the requirements of IAS 34: Interim Financial Reporting, the JSE Listings 
Requirements, the SEM Listing Rules and the Securities Act of Mauritius 2005.

The accounting policies applied in the preparation of the interim financial 
statements are consistent with those applied in the preparation of the audited 
consolidated financial statements for the year ended 30 September 2017.

All amendments to standards that are applicable to Greenbay for its financial 
year beginning 1 October 2017 have been considered. Based on management's 
assessment, the amendments do not have a material impact on the group's 
condensed unaudited consolidated interim financial statements.

The group's investment property is valued internally by management at interim 
reporting periods and externally by an independent valuer for year-end
reporting. In terms of IAS 40: Investment Property and IFRS 7: Financial 
Instruments: Disclosure, investment property is valued at fair value and 
is categorised as a level 3 investment, as one or more of the significant 
inputs is not based on observable market data.

In terms of IFRS 7: Financial Instruments: Disclosures, IAS 39: Financial 
Instruments: Recognition and measurement and IFRS 13: Fair Value Measurement, 
the group's currency and interest rate derivatives, as well as the equity 
derivatives are measured at fair value through profit or loss. The currency 
and interest rate derivatives are categorised as level 2 investments, while 
the equity derivatives are categorised as level 1 investments. In terms of 
IFRS 13, investments are measured at fair value, based on directly observable 
quoted closing prices at the reporting date, and are therefore categorised as 
level 1 investments.

The company is required to publish financial results for the three and nine 
months ended 30 June 2018 in terms of Listing Rule 12,20 of the SEM. This 
report was compiled under the supervision of Kobus van Biljon CA(SA), the 
chief financial officer.

These interim financial statements were approved by the board of Greenbay 
on 7 August 2018.

These interim financial statements have not been audited, reviewed or 
reported on by the company's external auditor.

This communique is issued pursuant to SEM Listing Rule 12.19 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. 
The directors are not aware of any matters or circumstances arising subsequent 
to 30 June 2018, other than those discussed in the directors' commentary and 
in note 2 below, that require any additional disclosure or adjustment to the 
financial statements.

Copies of the interim 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, 
are available free of charge, upon request at Greenbay's registered office 
address.

Contact person: Jan Wandrag.

2. Subsequent events and other disclosures
At the 2 August 2018 general meeting shareholders authorised:
-  the acquisition from Resilient REIT Limited of the 50% of the shares and 
claims in LocaViseu-Sociedade de Gestao de Imoveis, S.A. that it does not yet 
own;
-  the transfer of EUR 400 million of stated capital to non-distributable 
reserve; and
-  changes to the company's constitution.

Refer to the circular relating to these items for details of the pro forma 
financial effects. 

Greenbay has converted a substantial component of its overall listed equity
exposure from equity swap derivatives to directly-held equity investments.
Combined with fair value adjustments for market movements it resulted in the 
majority of the changes in:
-  Investments, Trade and other receivables, and Equity derivative cash margin, 
compared to June and September 2017, respectively; and
-  Income from equity derivatives, Income from investments, Fair value 
(loss)/gain on investments, Fair value (loss)/gain on equity derivatives, 
and Interest on borrowings, compared to the prior periods.

In March 2018, Greenbay disposed of its investment property under development, 
being the Tivoli land investment in Ljubljana, Slovenia.

Cash and cash equivalents have decreased mainly as a result of the group 
reducing its investments in equity derivative swaps in favour of directly-held 
equity securities (as noted above), cash dividends paid in June 2018, offset 
by the subsequent release of equity derivative margin cash and the disposal 
of the Tivoli land.

The changes in Foreign exchange gain/(loss), partially offset by the Fair 
value loss on currency derivatives, compared to the prior periods, resulted 
primarily from the impact of foreign currency fluctuations on the net 
investment in foreign exchange holdings.

The group's weighted average income tax rate is not expected to change 
significantly to that which was disclosed at 30 September 2017.

3. Fair value measurement
The fair value of the level 2 instruments, being the currency and interest 
rate derivatives, is determined using valuation techniques that maximise 
the use of observable market data (for example observable yield curves 
and forward exchange rates) where it is available and rely as little as 
possible on entity-specific estimates.

There were no transfers between levels 1, 2 and 3 during the period. 
The valuation methods applied are consistent with those applied in preparing 
the previous consolidated financial statements. Quarterly discussions of 
valuation processes and results are held between the CFO and management where 
any changes in level 2 and 3 fair values are analysed for period-end reporting.

                                   Level 1        Level 2          Level 3
Fair value hierarchy                   EUR            EUR              EUR
Jun 2018
Assets
Investment property                                             57 916 707
Investments                    556 524 869
Interest rate derivatives
receivable                                        140 038
Currency derivatives
receivable                                         78 883
                               556 524 869        218 921       57 916 707
Liabilities
Interest rate derivatives
payable                                           265 770
Currency derivatives
payable                                         2 335 563
                                         -      2 601 333                -
Jun 2017
Assets
Investment property                                             56 732 861
Investment property under
development                                                     13 818 470
Investments                     16 520 547
Currency derivatives
receivable                                      1 104 115
                                16 520 547      1 104 115       70 551 331

Greenbay uses equity swap derivatives to obtain exposure to listed real 
estate and infrastructure securities. In addition to cash, Greenbay 
utilises its directly-held listed equity investments as collateral for the 
group's equity derivative exposure.

Below is a summary of the amounts directly related to the equity swap 
derivatives:
                                                 Jun 2018          Jun 2017
                                                      EUR               EUR
Gross exposure to listed investments          623 546 291       589 744 886
Interest bearing borrowings                  (623 546 291)     (589 744 886) 
Net exposure to listed investments                      -                 - 
Equity derivative collateral                  330 270 261       207 784 201
- cash                                         67 424 674       207 784 201
- directly-held listed equity investments
(Investments)                                 262 845 587                 -


4. Segmental analysis
                                    Unaudited         Audited      Unaudited
                                     Jun 2018        Sep 2017       Jun 2017
Total assets                              EUR             EUR            EUR
Geographical
Australia                          45 548 709       1 781 607        980 317
Canada                             77 080 688       1 344 166      1 790 593
Europe                            410 324 698     797 174 578    460 945 642
Hong Kong                          34 050 355       9 656 029      2 240 031
Singapore                          16 126 442       1 466 401      1 175 207
UK                                 58 278 834       4 738 221     63 268 843
USA                               266 299 923     110 977 339    112 484 203
Corporate                          20 473 526       8 490 493      8 587 722
                                  928 183 175     935 628 834    651 472 558
Sectoral
Listed investments                626 354 766     393 274 130    224 304 748
Direct investments                143 694 627     135 381 550    133 408 203
Corporate                         158 133 782     406 973 154    293 759 607
                                  928 183 175     935 628 834    651 472 558

                                    Unaudited         Audited      Unaudited
                                     Jun 2018        Sep 2017       Jun 2017
Total liabilities                         EUR             EUR            EUR
Geographical
Australia                              52 574         395 007      1 223 180
Canada                                 78 461         122 212        885 384
Europe                             31 262 605      28 236 432     31 192 282
Hong Kong                                   -               -         36 243
Singapore                             187 256         463 770        110 775
UK                                  1 443 651         146 202         22 089
USA                                 2 474 471      11 415 370      2 208 814
Corporate                             431 585       1 070 951        748 540
                                   35 930 603      41 849 944     36 427 307
Sectoral
Listed investments                  5 707 441       5 993 050        591 192
Direct investments                 26 913 341      27 157 820     27 528 959
Corporate                           3 309 821       8 699 074      8 307 156
                                   35 930 603      41 849 944     36 427 307


                                                    Unaudited      Unaudited
                                                      for the        for the
                                                  nine months    nine months
                                                        ended          ended
                                                     Jun 2018       Jun 2017
Revenue                                                   EUR            EUR
Geographical
Australia                                           3 887 514        615 831
Canada                                              4 430 461      1 306 627
Europe                                             12 711 281      6 959 949
Hong Kong                                             798 819         42 818
Singapore                                             345 658        500 424
UK                                                  1 627 456      1 039 638
USA                                                22 924 088     11 888 774
Corporate                                                   -              -
                                                   46 725 277     22 354 061
Sectoral
Listed investments                                 44 130 999     18 995 442
Direct investments                                  2 594 278      3 358 619
Corporate                                                   -              -
                                                   46 725 277     22 354 061


                                                    Unaudited      Unaudited
                                                      for the        for the
                                                  nine months    nine months
                                                        ended          ended
                                                     Jun 2018       Jun 2017
Profit for the period                                     EUR            EUR
Geographical
Australia                                           6 290 206      2 054 160
Canada                                             (2 724 861)       330 540
Europe                                              7 918 992      7 439 281
Hong Kong                                             144 102          3 896
Singapore                                            (525 285)       124 327
UK                                                    827 475        902 980
USA                                                 7 924 640      5 664 996
Corporate                                           2 818 163    (15 180 414)
                                                   22 673 432      1 339 766
Sectoral
Listed investments                                 13 170 017     12 786 341
Direct investments                                  9 737 424      3 166 547
Corporate                                            (234 009)   (14 613 122)
                                                   22 673 432      1 339 766

After reassessing the group's segmental reporting during the quarter, 
management has added further details to the report to enhance the disclosure.

5. Headline earnings
                                                  Unaudited        Unaudited
                                                    for the          for the
                                                nine months      nine months
                                                      ended            ended
Reconciliation of profit for the                   Jun 2018         Jun 2017
period to headline earnings                             EUR              EUR
Basic earnings – profit for the
period attributable to equity holders            22 673 432        1 339 766
Adjusted for:
- Impairment of Greenbay share incentive
loans                                               681 495                -
- Profit on sale of investment property
under development                                (2 223 157)               -
- Fair value gain on investment property –
included in income from joint venture            (4 635 000)               -
- Income tax effect                               1 604 325                - 
Headline earnings                                18 101 095        1 339 766
Weighted average shares in issue              9 440 143 475    5 480 133 586
Headline earnings per share (EUR cents)                0,19             0,02

Greenbay has no dilutionary instruments in issue.

Management accounts
Basis of preparation
In order to provide information of relevance to investors these management 
accounts, which comprise financial information extracted from the condensed 
unaudited consolidated interim financial statements for the three and nine
months ended 30 June 2018, have been prepared and are presented below to 
provide users with the position:
-  had the equity investments held through derivative products been 
accounted for on a grossed-up basis instead of only accounting for the 
margin; and
-  had the group's interest in Locaviseu, the joint venture in Portugal, 
accounted for on the equity method for IFRS, been proportionately 
consolidated.

The pro forma financial information (management accounts) has been 
prepared in terms of the JSE Listings Requirements and the SAICA Guide 
on pro forma financial information.

This pro forma financial information has not been reviewed or reported 
on by Greenbay's auditor.

Directors' responsibility statement
The preparation of the management accounts is the sole responsibility of 
the directors and have been prepared on the basis stated, for illustrative 
purposes only, to show the impact on the condensed consolidated statement 
of financial position and the condensed consolidated statement of 
comprehensive income. Due to their nature the management accounts may not 
fairly present the financial position and results of the group in terms 
of IFRS.

Management account adjustments
Adjustment 1
The equity derivatives are grossed-up by multiplying the shares held 
in each counter by the quoted closing price of the respective counter 
at June 2018 and raising the corresponding equity swap liability. This
more accurately reflects the group's assets and liabilities.

Adjustment 2
This adjustment proportionately consolidates the indirect investments 
in Forum Coimbra and Forum Viseu that are held through Locaviseu, accounted 
for using the equity method. It effectively discloses the group's interest 
in the assets, liabilities and results of operations from these investments 
by disclosing the consolidated management accounts for the nine months 
ended June 2018 on a line-by-line basis. Greenbay is satisfied with the 
quality of the financial information contained in the management accounts 
of Locaviseu.


Condensed consolidated statement of financial position
                                                     Adjust-
                                                      ment 2
                                               Proportionate
                                       Adjust-      consoli-
                                        ment 1     dation of
                                        Equity    investment
                                   derivatives      in joint      Management
                           IFRS       gross-up       venture        accounts
                       Jun 2018       Jun 2018      Jun 2018        Jun 2018
                            EUR            EUR           EUR             EUR
Assets
Non-current assets  688 316 934    623 546 291    62 039 116   1 373 902 341
Investment
property             57 916 707                  117 668 826     175 585 533
Straight-lining 
of rental revenue
adjustment                1 093                     (218 326)       (217 233)
Investment in 
and loans to
joint venture        66 575 211                  (66 575 211)              -
Greenbay share
incentive loans       3 542 490                                    3 542 490
Investments         556 524 869    623 546 291                 1 180 071 160
Other non-
current assets        3 756 564                                     3 756 564
Goodwill                      –                    11 163 827      11 163 827
Current assets      239 866 241              -      7 087 692     246 953 933
Trade and other
receivables          24 763 900                     1 279 948      26 043 848
Equity derivative 
cash margin          67 424 674    (67 424 674)                             -
Cash and cash
equivalents         147 677 667     67 424 674      5 807 744     220 910 085
Total assets        928 183 175    623 546 291     69 126 808   1 620 856 274
Equity and 
liabilities
Total equity 
attributable to
equity holders      892 252 572              -              -     892 252 572
Stated capital      917 719 017                                   917 719 017
Treasury shares        (161 680)                                     (161 680) 
Non-distributable
reserve             (54 499 482)                                  (54 499 482)
Currency 
translation 
reserve             (11 029 575)                                  (11 029 575)
Retained earnings    40 224 292                                    40 224 292
Total liabilities    35 930 603    623 546 291      69 126 808    728 603 702
Non-current
liabilities          24 118 705    623 546 291      66 222 212    713 887 208
Interest-bearing
borrowings           23 714 094    623 546 291      50 727 461    697 987 846
Deferred tax            404 611                     15 494 751     15 899 362
Current liabilities  11 811 898              -       2 904 596     14 716 494
Interest-bearing
borrowings            1 428 598                                     1 428 598
Trade and other
payables              9 940 724                      2 659 249     12 599 973
Income tax payable      442 576                        245 347        687 923
Total equity and
liabilities         928 183 175    623 546 291      69 126 808   1 620 856 274



Condensed consolidated statement of comprehensive income
                                                     Adjust-
                                                      ment 2
                                               Proportionate
                                       Adjust-      consoli-
                                        ment 1     dation of
                                        Equity    investment
                                   derivatives      in joint      Management
                           IFRS       gross-up       venture        accounts
                        for the        for the       for the         for the
                    nine months    nine months   nine months     nine months
                          ended          ended         ended           ended
                       Jun 2018       Jun 2018      Jun 2018        Jun 2018
                            EUR            EUR           EUR             EUR
Net rental and
related revenue       2 594 278              -     5 208 271       7 802 549
Recoveries and 
contractual
rental revenue        4 406 720                    7 226 086      11 632 806
Straight-lining of 
rental revenue
adjustment                  (69)                      16 249          16 180
Rental revenue        4 406 651              -     7 242 335      11 648 986
Property operating
expenses             (1 812 373)                  (2 034 064)     (3 846 437)
Income from equity
derivatives          30 795 191                                   30 795 191
Income from
investments          13 335 808                                   13 335 808
Total revenue        46 725 277              -     5 208 271      51 933 548
Fair value 
(loss)/gain on 
investment 
property, 
investments and
derivatives         (21 768 629)             -     4 618 751     (17 149 878)
Fair value loss
on investments       (1 631 326)                                  (1 631 326)
Fair value loss 
on equity
derivatives         (19 118 686)                                 (19 118 686)
Fair value gain 
on investment
property                      -                    4 635 000       4 635 000
Adjustment resulting 
from straight-
lining of rental
revenue                      69                      (16 249)        (16 180)
Profit on sale of 
investment property 
under development     2 223 157                                     2 223 157
Impairment of
Greenbay share
incentive loans        (681 495)                                     (681 495)
Fair value loss 
on currency
derivatives          (2 560 348)                                   (2 560 348)
Administrative
expenses             (3 844 388)                    (155 676)      (4 000 064)
Foreign exchange
gain                  5 279 336                                     5 279 336
Income from
joint venture         6 620 821                   (6 620 821)               -
Profit before net 
finance costs        33 012 417               -    3 050 525       36 062 942
Net finance
costs                (9 442 707)              -   (1 081 999)     (10 524 706)
Finance income          429 718               -            -          429 718
Interest on  
share incentive 
loans                    50 437                                        50 437
Interest
received                379 281                                       379 281
Finance costs        (9 872 425)              -   (1 081 999)     (10 954 424)
Interest on
borrowings           (9 479 256)      7 650 621   (1 081 999)      (2 910 634)
Fair value 
adjustment on 
interest rate
derivatives            (393 169)                                     (393 169)
Interest on equity
derivatives                   -      (7 650 621)                   (7 650 621) 
Other income            135 074                                       135 074
Profit before
income tax           23 704 784               -    1 968 526       25 673 310
Income tax           (1 031 352)                  (1 968 526)      (2 999 878) 
Profit for the
period               22 673 432               -            -       22 673 432

Directors:
Terry Warren (chairman); Stephen Delport (CEO)*; Kobus van Biljon*; 
Jan Wandrag*, Karen Bodenstein; Teddy Lo Seen Chong; Mark Olivier; 
Barry Stuhler  
*executive director)

There were no changes to the board of directors during the quarter. 

Mauritian management company and company secretary:
Intercontinental Trust Ltd

Registered address:
C1-401, 4th Floor, La Croisette, Grand Baie, Mauritius

Transfer secretary in South Africa:
Link Market Services South Africa (Pty) Ltd

JSE sponsor: 
Java Capital

SEM authorised representative and sponsor: 
Perigeum Capital Ltd

 

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