MAS REAL ESTATE INC - Consolidated Preliminary Financial Statements 2018

Release Date: 07/09/2018 08:00
Code(s): MSP
 
Wrap Text
Consolidated Preliminary Financial Statements 2018

MAS REAL ESTATE INC
Registered in British Virgin Islands
Registration number 1750199
ISIN: VGG5884M1041
SEDOL (EMTF): B96VLJ5
SEDOL (JSE): B96TSD2
JSE share code: MSP
("MAS" or "the company")

CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS 2018

KEY METRICS

Distribution per share
                                        H1 distribution per share     H2 distribution per share            Total
Year                                                 (euro cents)                  (euro cents)     (euro cents)
2014                                                         0.60                          1.24             1.84
2015                                                         1.15                          2.20             3.35
2016                                                         2.27                          2.23             4.50
2017                                                         2.66                          3.19             5.85
2018                                                         3.58                          4.03             7.61

Investment property
                                              Investment property
Year                                               (Euro million)
2014                                                         64.8
2015                                                        248.5
2016                                                        310.5
2017                                                        570.6
2018                                                        632.8
2018 plus acquired post 30 June 2018                        752.8

Passing rent(2)
                                                     Passing rent
Year                                               (Euro million)
2014                                                          2.7
2015                                                         12.6
2016                                                         17.3
2017                                                         32.2
2018                                                         37.5
2018 plus acquired post 30 June 2018                         44.9

EPRA NAV per share
                                               EPRA NAV per share
Year                                                 (Euro cents)
2014                                                        104.6
2015                                                        122.1
2016                                                        116.0
2017                                                        125.9
2018                                                        134.9

Median daily share volume
                                        Median daily share volume
Year                                        (thousands of shares)
2014                                                          1.1
2015                                                         40.8
2016                                                         76.2
2017                                                        137.5
2018                                                        454.9


Loan to value
                                                     Loan to value
Year                                                  (percentage)
2014                                                       -188.8%
2015                                                        -30.0%
2016                                                        -12.7%
2017                                                         16.5%
2018                                                         10.0%
2018 plus impact of acquisitions post 30 June 2018           20.2% 

DIRECTORS' REPORT

7%
YEAR-ON-YEAR INCREASE IN
EPRA NAV PER SHARE

32%
YEAR-ON-YEAR
INCREASE IN INCOME-
GENERATING PROPERTY(1)

35%
INCREASE IN NET RENTAL INCOME
90% INCREASE IN NET OPERATING INCOME

ANNUAL 2018
DISTRIBUTION PER SHARE OF
7.61
EURO CENTS
4.03 EURO CENTS DISTRIBUTION
PER SHARE PROPOSED FOR H2

PKM DEVELOPMENTS
21,000 SQM COMPLETED
634,000 SQM UNDER DEVELOPMENT

(1) Includes investment property held for sale and
    acquisitions post 30 June 2018.
(2) MAS'share of the income-generating portfolio's passing rent.

DISTRIBUTABLE EARNINGS

The group achieved 29.6% growth in
distributable earnings per share for
the year, to 6.35 euro cents compared
with 4.90 euro cents for 2017. This
significant improvement in
distributable earnings per share was
driven by the strong performance and
accretive acquisitions of investment
property, completion of assets in the
development pipeline, investment in
PKM Developments and distributions
received from the investment in the
REIT portfolio.

FINAL DISTRIBUTION

As a result of the increase in
distributable earnings and strong
pipeline of investments and
developments, the board has proposed a final 
distribution of 4.03 euro cents per share 
for the second half of the 2018 financial 
year, which includes 0.38 euro cents per 
share from reserves. This brings the cumulative
annual distribution to 7.61 euro cents
per share for 2018, an increase of 30%
over last year's distribution of 5.85 euro
cents per share. This dividend will be
paid in cash, with no scrip alternative
offered to shareholders. An announcement 
containing further details will be released 
in due course.

The outlook for 2019 is discussed
under Prospects below.

CASH MANAGEMENT AND DEBT

A strategic priority has been to
mitigate the group's future funding
obligations towards PKM
Developments. Accordingly, during the
year, the group took advantage of the
opportunity to raise adequate equity
to fully meet its commitments to PKM
Developments and to finance suitable
acquisition opportunities.

To manage its funding ahead of
fulfilling its commitments to PKM
Developments, the group invested
EUR200 million in a portfolio of liquid
European REITs, that focus
predominantly on retail. This strategy
achieves many objectives for the
group as it:
-  generates a return on funds
   earmarked for PKM Developments
   before drawdown, since euro
   interest rates on cash are
   negative;
-  efficiently matches the asset/
   liability profile of the group;
-  provides a collateral pool for debt
   facilities at extremely low margins, 
   thereby facilitating substantial 
   flexibility in acquiring investments; 
   and
-  provides exposure to high quality
   businesses with similar risk
   profiles to those of the group.

This strategy exposes the portfolio to
some capital volatility. At year-end the REIT
portfolio has declined in value to EUR183.1
million, in line with the performance of
retail-focused stocks in Western
Europe that have come under pressure
in the first half of 2018. Dividend
income of EUR8.4 million has been earned 
on this portfolio since acquisition.

At year-end, the group held EUR147.8
million in cash (2017: EUR33.0 million),
excluding the cash held in PKM
Developments. In addition, the group
had EUR242.7 million of third-party debt
finance at 30 June 2018 (2017: EUR147.2
million), resulting in a group loan to
value of 10.0% (2017: 16.5%), with a
weighted average cost of debt of
2.69% of which 82% is fixed/hedged.

After year-end, the group completed
the acquisition of the Militari Shopping
Centre and the Braunschweig
properties as discussed below.

ACQUISITION AND
DEVELOPMENT UPDATE

INCOME-GENERATING PORTFOLIO

The portfolio performed strongly
during the reporting period, with net
operating income growing by 89.6%
year on year from EUR20.2 million to
EUR38.3 million. The EPRA net asset
value per share increased by 7.1% to
134.9 euro cents per share (IFRS NAV
2018: 134.0) from 125.9 euro cents per
share at the previous year-end (IFRS
NAV 2017: 124.5), driven by the impact
of the capital raises undertaken during
the year.

Work is in progress on reconfiguring
and adding about 18,000 square
metres to the aggregate GLA of the
CEE retail assets. This will increase the
fashion and leisure offering of the
centres to consolidate their regionally
dominant position and enhance the
performance of the portfolio.

Management's key focus is to deploy
the capital on the balance sheet.
Although opportunities are available,
strong investment discipline is needed
when assessing assets at current prices,
given the competitive environment and
liquidity in the market. The group is
focused on not overpaying for assets in
a heated market and assesses capital
deployment carefully to ensure that the
longer term strategy is not
compromised by shorter term goals.
Notwithstanding this, the group has
successfully acquired the following:

UBERIOR HOUSE, EDINBURGH, SCOTLAND
(ACQUISITION COMPLETED MAY 2018)

Uberior House was bought for GBP71
million (EUR80.1 million). The property
consists of grade A offices,
prominently positioned in the heart of
Edinburgh's Exchange financial district.

The property has an aggregate
GLA of 14,700 square metres, leased
to Bank of Scotland on several leases
that expire in 2025, at a current
passing rent of GBP4.15 million a year
(about EUR4.68 million).  This will be
topped up by the vendor to GBP4.20
million a year (about EUR4.74 million) to
reflect the anticipated settlement of
outstanding rent reviews. The annual
net operating income of the property
is GBP4.10 million (about EUR4.63
million). Bank of Scotland is a
subsidiary of the Lloyds Banking
Group PLC, a FTSE 100-listed financial
institution.

The acquisition represents a unique
opportunity to grow the rental income
of the property from current levels
through active asset management.
Edinburgh has a structural
undersupply of grade A office space,
compounded by growing demand and
declining supply dynamics. The
current lease has a rent review in 2020
which will make it possible to
negotiate a market-related payment,
creating upside for MAS. This, together
with the age of the lease, presents the
opportunity to re-gear what is an
under-rented property at a higher
rent-roll. The acquisition also enables
MAS to leverage its significant
experience in the Edinburgh property
market, after delivering the award-
winning New Waverley mixed-use
development of hotels, retail,
residential and a 19,000 square metre
office building.

MILITARI SHOPPING CENTRE, BUCHAREST, ROMANIA
(ACQUISITION COMPLETED JULY 2018)

The Militari Shopping Centre was
acquired in conjunction with Prime
Kapital, in which MAS has an 80%
direct participation, for a purchase
price of EUR95.0 million. Militari is located
in the west of Bucharest, the capital of
Romania, and draws footfall from an
aggregate catchment of
approximately 365,000 people within
a 15-minute drive. The centre benefits
from ongoing extensive residential
densification in its immediate
surroundings. Residential schemes
currently under construction will add
about another 4,000 apartments in
the vicinity and are expected to keep
the strong growth in footfall in the
near term.

Militari has 57 tenants spread across
about 56,400 square metres of GLA,
of which 53,700 square metres is retail
and 2,700 square metres is offices, in
addition to 2,500 parking spaces. The
annual net operating income of Militari
is EUR7.1 million at a weighted average
rental of EUR10.6 per square metre per
month.  The centre is anchored by
Auchan (hypermarket), Praktiker (DIY),
Decathlon (sports goods) as well as
various international fashion brands
such as H&M, C&A, Reserved, New
Yorker, LC Waikiki, Pepco, Deichmann,
Hervis, Humanic, Koton and Takko. The
current retail tenant mix has a
weighted average lease term to first
break option of 6.5 years and the
property is fully occupied. Fashion and
lifestyle tenants contribute 43% of
passing rent while food and grocery
tenants contribute 29%.

The asset provides stable
underlying income with good
prospects for future growth. This will
come from optimisation at lease
expiry and an extension of the lettable
area to match growing footfall, driving
the direct investment return.
Significant redevelopment
opportunities are expected to be
available in the medium and long term.

BRAUNSCHWEIG, GERMANY (ACQUISITION
COMPLETED AUGUST 2018)

A retail park and convenience centre
in Braunschweig, Germany, were
acquired for EUR25.0 million. 

The retail park, known as
"Gewerbehof Celler Str.", is located in
the northern part of the city of
Braunschweig, on one of the main
arterial roads leading from the inner
city to the Autobahn. Braunschweig,
with 250,000 inhabitants, is the
second-largest city in Lower Saxony.
Its population is expected to grow by
about 5% by 2030.

The retail park has a GLA of about
16,400 square metres, 540 parking
spaces and a current rental income of
EUR1.5 million a year. The centre has 22
tenants and is focused on large-scale
retail schemes such as food
discounters (Aldi & Lidl, HolAb!),
furniture, textile and interior shops
(Tedox, Christiansen, Dänisches
Bettenlager), complemented by
specialist shops such as Fressnapf
(pet shop) and Staples (office
equipment). In addition, the retail park
contains a development plot with
4,600 square metres of retail potential.
The current WALT is 6 years.

The convenience centre, known as
"Welfenplatz", is located in southern
Braunschweig and is anchored by an
Edeka supermarket with a long-term
lease until 2030. The asset has a GLA
of 2,500 square metres and current
rental income of EUR163,000 a year.

Both assets are well established
and provide strong prospects for
future growth, supporting the group's
drive for direct investment returns
delivering a return on equity of more 
than 8%. In the short to medium term,
extending the retail park will further 
increase direct investment returns.

DEVELOPMENTS AND LAND BANK

NEW WAVERLEY, EDINBURGH, SCOTLAND

The New Waverley development is
nearing completion. As previously
announced, the office component,
pre-let to the UK government on a
25-year lease, was forward-sold under
a funding agreement to Legal and
General for about EUR23.5 million.
Further development profits will be
paid when construction is complete.
The UK government has expressed
interest in exercising its option over
the adjacent residential development
site. It will make a decision in the first
half of the 2019 calendar year.

The last remaining undeveloped
component of New Waverley is the
residential element. Offers to acquire
both the northern and southern parts of
the site have been received and
accepted, subject to due diligence and
the finalisation of the government's
option over the northern part of the site.

LANGLEY PARK, CHIPPENHAM, ENGLAND

The development site with residential
planning consent at Langley Park in
Chippenham, UK, is in the last stages
of disposal. Final offers from home
builders are being considered. The
construction of the hotel, pre-let to
Travelodge, is well advanced and the
sale of the supermarket land site to
Aldi has been finalised. This will
complete the acquisition business plan
for this property. Steady income is
being generated from tenants,
including Siemens, on the adjacent
retained Technology Park, where
further extensions are under
consideration.

NORTH STREET QUARTER, LEWES, ENGLAND

Progress continues to be made on the
complex and large scale North Street
Quarter regeneration development
project in Lewes. The majority of
pre-commencement building permit
conditions have now been cleared and
the Land Collaboration Agreement
with the joint landowner, Lewes
District Council is close to being
finalised. Due to the complexity of the
project and the need to work with a
number of stakeholders, including the
local government as joint landowners,
the scheme has taken longer to
progress than originally budgeted.
Although there remains a structural 
shortfall, the residential market in 
the UK seems to be less dynamic at present 
than in previous periods but initial discussions 
with developers indicate that there is 
demand for the planned development, given 
the site's unique character and location 
within a National Park. Discussions are
ongoing with the aim to appoint a
specialist developer by the end of the
2018 calendar year.

PKM DEVELOPMENTS

PKM Developments has made good
progress on its development pipeline
completing its first six
convenience value extensions of
Kaufland mini-hypermarkets with an
aggregate GLA of about 21,000 square
metres on time and within budget. 
Construction has started of two value 
centres and a convenience value extension 
with an aggregate GLA of about 
48,000 square metres, which will be 
completed by the end of the 2018 calendar 
year. In addition, the secured development 
pipeline in CEE has expanded significantly to
approximately EUR755 million and consists
of the projects discussed below.

MALL MOLDOVA

Permitting is under way for the
planned redevelopment of Era
Shopping Park, Iasi, into the super-
regional Mall Moldova with 100,000
square metres GLA. Mall Moldova will
be the largest retail and leisure
development in Romania outside
Bucharest. With design work
substantially completed, pre-
construction leasing work in respect of
the extension has commenced and is
progressing well, as has been
anticipated.

ARGES MALL

Permitting for the planned regionally
dominant mall with 50,000 square
metres GLA and for the
accompanying public infrastructure in
a central, high-density location in
Pitesti, Romania is making good
progress. Tenant interest in the
planned retail consolidation for the
Pitesti and wider Arges region is
strong and pre-construction leasing
work is progressing well.

DAMBOVITA MALL

Permitting is under way for the
regionally dominant mall with 31,000
square metres GLA in Targoviste,
Romania. Despite the lease process
not having commenced, several major
anchor tenants have expressed strong
interest in the development. It will be
the first mall in the Dambovita county
and forms part of a wider urban
regeneration project undertaken by
the local authorities within 2km of the
city centre, in a densely populated
residential area.

PLOIESTI VALUE CENTRE

Permitting is underway for the retail
value centre with 25,600 square
metres GLA and a high concentration
of anchor tenants. The centre is
located in a densely populated
residential area in close proximity to
the city's main train, tram and bus
stations, with high visibility and good
road access. Despite the lease process
not yet having commenced, several
major anchor tenants have expressed
strong interest in the development.

DN1 VALUE CENTRE

Pre-construction leasing is progressing
well for the convenience value
extension of 28,000 square metres
GLA to the existing Hornbach and Lidl
units in Balotesti, a rapidly-developing,
affluent residential area about 25km
north of Bucharest. The first phase of
development is expected to open by
the end of the 2019 calendar year.

BAIA MARE VALUE CENTRE

Construction of about 22,000 square
metres GLA is advancing and the
centre is on schedule to open for trade
in December 2018.

ROMAN VALUE CENTRE

Construction of 19,000 square metres
GLA is progressing and the centre is
on schedule to open for trade in
November 2018.

KAUFLAND VALUE CENTRE EXTENSIONS (31,000
SQUARE METRES AGGREGATE GLA)

During the course of the 2018 financial
year the first six convenience value
extensions of existing Kaufland mini-
hypermarkets have been completed
on time and within budget. The first
phase (7,000 square metres GLA) of a
further development is expected to
complete by the end of the 2018
calendar year.

ZALAU VALUE CENTRE

About five hectares of land have been
secured in Zalau with plans to develop
and operate a retail value centre of
18,000 square metres GLA with a high
concentration of anchor tenants.
Zalau, with 56,000 inhabitants, is the
capital of Salaj county and an
important manufacturing centre in the
north west of Romania. The project is
highly visible. It is in the immediate
vicinity of a dense residential area and
the city's regional bus terminal, on the
main road connecting Zalau with the
other major cities in the county and
wider Transylvania area. The
catchment includes about 166,000
inhabitants within a 45-minute drive.
Anchor tenants have expressed strong
interest in the planned development
and permitting is ongoing. The centre
is expected to open for trade by the
end of the 2019 calendar year.

AVALON ESTATE

Permitting is ongoing on the
upmarket, modern housing estate
near the developing central business
district and commercial centre in the
affluent northern part of Bucharest.
The project was publicly launched in
June 2018 and received very positive
feedback. The pre-construction sales
process is planned to commence by
the end of this calendar year and the
first units of the planned 767 high
quality houses, townhouses and
apartments will be available for
occupation in the second quarter of
the 2020 calendar year.

MARMURA APARTMENTS

Since the date of the last report,
substantial additional design work has
been done on the large-scale
residential block development planned
for the 1.5-hectare site in the
expanding north west area of
Bucharest. The number of individual
units has been increased from 380 to
460. Permitting is in progress and the
pre-construction sales process is
expected to start by the end of the
2018 calendar year. The first units will
be available for occupation by the
third quarter of the 2020 calendar
year.

TEBA IASI

About 10 hectares of land have been
secured in Iasi with plans to develop a
large-scale, mixed-use project that will
include up to 100,000 square metres
of A-grade offices, over 2,500
residential units and a hotel. Iasi, with a
population of 369,000 inhabitants, is
the second-largest city in Romania,
the most important industrial centre in
the north east and the second-largest
university centre outside Bucharest,
with over 53,000 students. The project
is close to the city centre and within
walking distance of the two largest
university campuses in Iasi. This site is
highly visible, with 450 metres of
frontage on a main boulevard
connecting the site to the city centre,
and easily accessible both by car and
public transport since three public
transport hubs (bus and tram) are in
the immediate vicinity. Due diligence
and project planning work is currently
in progress. Major office tenants and
hotel operators have expressed strong
interest in the planned development.

PROSPECTS

MAS continues to benefit from a
strong balance sheet with sufficient
capital to meet its obligations, as well
as a healthy development and
acquisition pipeline. The group has
access to a development partner with
demonstrated competitive advantages
in identifying and executing
exceptional opportunities.
 
The board is cognisant of heated
property markets fuelled by liquidity
and owners and developers eager to
dispose of over-rented properties at
prices that are high by historical
standards. As a result, the board is
determined to retain strong
investment discipline and pursue only
quality developments and acquisitions
with value-adding potential and strong
long-term growth prospects. It has
previously been stated, and remains the 
view of the board, that longer-term
prospects will not be sacrificed to
meet shorter term distribution growth
targets and the implementation of
transactions is not being rushed.
 
The board is committed to
distributing quality earnings to
shareholders on a sustainable basis
and do not intend to subsidise the
2019 distribution from reserves, but to
fund it from distributable earnings.
Accordingly, the directors consider
that a distribution growth target of
15% for the 2019 financial year is
appropriate. This target is based on
the acquisition and development
pipeline in place and further
opportunities being pursued. It also
assumes that a stable macro-
economic environment will prevail, no
major corporate failures will occur, the
investments and developments
reported on above will progress as
expected and budgeted rental income
based on contractual escalations as
well as market-related renewals will be
collected. This target has not been
reviewed or audited by the group's
auditors.
 
Capital management is an
important area of value creation for
shareholders. The board will consider 
buying back shares as and when it can 
create value for shareholders, if the 
trading price is below the intrinsic 
NAV per share of the business. 
Such buybacks will be done with care, 
since capital is a scarce and valuable 
resource and there remains opportunities 
to grow shareholder value by investing and
developing at rates in excess of the
cost of capital.

MAS will continue to pursue
profitable growth through exploiting
further acquisition and development
opportunities in its markets, as well as
by optimising its balance sheet.
Further announcements will be made
as appropriate.

By order of the board of directors:

DIRECTORS:

Ron Spencer
(Non-Executive Chairman)
Morné Wilken
(Chief Executive Officer)
Malcolm Levy
(Chief Financial Officer)
Jonathan Knight
(Chief Investment Officer) 
Gideon Oosthuizen
(Non-Executive Director)
Jaco Jansen
(Non-Executive Director)
Pierre Goosen
(Non-Executive Director)
Glynnis Carthy
(Non-Executive Director)

Lukas Nakos, the former CEO, ceased
to be a director with effect from
31 December 2017. Morné Wilken,
previously a non-executive director,
took over as CEO with effect from
1 January 2018.

REPORTING CURRENCY

The group's results are reported in
euros.

ASSURANCE

These preliminary consolidated
financial statements for the year
ended 30 June 2018 have been
reviewed by KPMG Audit LLC who
expressed an unmodified review
conclusion. The auditor's report does
not necessarily report on all of the
information contained in this
announcement. Shareholders are
advised that in order to obtain a full
understanding of the nature of the
auditor's engagement they should
obtain a copy of the auditor's review
report from the company's head office
together with the financial statements
identified in the auditor's report.

TRADING STATEMENT

The group uses distribution per share
as its most relevant unit of
measurement for trading statement
purposes.

LISTINGS

MAS is listed on the Main Board of the
Johannesburg Stock Exchange and is
listed and admitted trading on the
Euro MTF market of the Luxembourg
Stock Exchange.

CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 30 June 2018

                                                                                              Year ended              Year ended
Euro                                                                       Note             30 June 2018            30 June 2017

Rental income                                                                 5               37,452,513              27,032,238   
Service charge income and other recoveries                                    7                5,954,048               4,550,190   
Revenue                                                                                       43,406,561              31,582,428   
Service charge and other property operating expenses                          8             (11,073,518)             (7,598,036)   
Net rental income                                                                             32,333,043              23,984,392   
Sales of inventory property                                                                   26,020,940                       -   
Cost of sales of inventory property                                          18             (21,704,016)                       -   
Profit on sales of inventory property                                         6                4,316,924                       -   
Other income                                                                 11                8,585,032                       -   
Corporate expenses                                                           12              (4,946,973)             (3,498,209)   
Investment expenses                                                           9              (1,976,096)               (281,061)   
Net operating income                                                                          38,311,930              20,205,122   
Fair value adjustments                                                       10             (15,800,127)              25,592,290   
Foreign currency exchange differences                                        13              (1,020,787)             (4,684,895)   
Share of profit from equity accounted investees, net of tax                  20                3,568,925                 178,397   
Goodwill impairment                                                          16              (1,274,346)                       -
Profit before finance costs                                                                   23,785,595              41,290,914  
Finance income                                                               14                7,975,558               1,207,196   
Finance costs                                                                14              (5,560,344)             (2,238,497)   
Profit before tax                                                                             26,200,809              40,259,613   
Current tax                                                                  15              (5,556,002)             (1,741,449)   
Deferred tax                                                                 15              (1,311,385)             (3,942,153)   
Profit for the year                                                                           19,333,422              34,576,011   
Attributable to:
Owners of the parent                                                         27               16,856,306              33,587,948
Non-controlling interest                                                                       2,477,116                 988,063        
Profit for the year                                                                           19,333,422              34,576,011   
Basic earnings per share (euro cents)                                        37                     2.92                    8.43   
Diluted earnings per share (euro cents)                                      37                     2.92                    8.43   

The notes form part of these consolidated preliminary financial statements.

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2018

                                                                                                        Year ended    Year ended
Euro                                                                                             Note 30 June 2018  30 June 2017

Profit for the year                                                                                     19,333,422    34,576,011
 
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:                                  
Foreign operations - foreign currency translation differences                                      26  (1,207,816)   (5,371,692)
 
Total comprehensive income for the year                                                                 18,125,606    29,204,319

Attributable to:
Owners of the parent                                                                                    15,648,490    28,216,256
Non-controlling interest                                                                           27    2,477,116       988,063

Total comprehensive income for the year                                                                 18,125,606    29,204,319

The notes form part of these consolidated preliminary financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2018

                                                                                                           As at           As at
Euro                                                                                         Note   30 June 2018    30 June 2017

 
Non-current assets
Investment property                                                                            17    579,212,345     564,291,928
Intangible assets                                                                              16     22,592,493      23,967,355
Investment in equity-accounted investees                                                       20     23,774,222      20,205,297
Financial assets                                                                               29    105,394,992     101,134,245
Property, plant and equipment                                                                            485,620         560,019
Deferred tax asset                                                                             15        607,179         758,055
Financial investments                                                                          19    183,052,263               -
Total non-current assets                                                                             915,119,114     710,916,899

Current assets
Financial assets                                                                               29     24,507,316          66,097
Inventory property                                                                             18      1,293,501               -
Investment property held for sale                                                              23     53,588,444       6,336,915
Trade and other receivables                                                                    21     16,148,333       8,707,035
Cash and cash equivalents                                                                      22    147,825,624      33,017,502
Total current assets                                                                                 243,363,218      48,127,549
                                                                                                                                
Total assets                                                                                       1,158,482,332     759,044,448
 
Equity
Share capital                                                                                  24    829,250,399     557,556,273
Geared share purchase plan shares                                                              24   (12,863,010)    (21,056,010)
Retained earnings                                                                                     48,616,712      55,888,038
Share-based payment reserve                                                                    25      1,031,739         225,973
Foreign currency translation reserve                                                           26   (11,768,119)    (10,560,303)
Equity attributable to owners of the parent                                                          854,267,721     582,053,971
Non-controlling interest                                                                       27      2,527,202         988,063
Total equity                                                                                         856,794,923     583,042,034
 
Non-current liabilities
Interest-bearing borrowings                                                                    28    214,407,455     141,751,953
Financial liabilities                                                                          30      1,696,005       1,670,086
Deferred tax liability                                                                         15      6,139,373       4,998,374
Total non-current liabilities                                                                        222,242,833     148,420,413
 
Current liabilities
Interest-bearing borrowings                                                                    28     28,305,652       5,461,444
Financial liabilities                                                                          30     36,121,577      11,211,990
Trade and other payables                                                                       31     14,733,264      10,816,762
Provisions                                                                                               284,083          91,805
Total current liabilities                                                                             79,444,576      27,582,001

Total liabilities                                                                                    301,687,409     176,002,414
 
Total shareholders' equity and liabilities                                                         1,158,482,332     759,044,448

Ordinary shares in issue                                                                       24    637,493,798     467,366,299
IFRS Net Asset Value per share (euro cents)                                                                134.0           124.5

The notes form part of these consolidated preliminary financial statements.

These consolidated preliminary financial statements were approved by the Board and signed on 3 September 2018 on their
behalf by:


Ron Spencer                                                      Malcolm Levy
Chairman                                                         Chief Financial Officer 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                            Geared share
                                                                purchase                                     Foreign       Equity
                                                             plan shares                 Share-based        currency attributable              Non-
                                                    Share      (treasury       Retained      payment     translation to owners of       controlling
Euro                                 Note         capital        shares)       earnings      reserve         reserve    the parent         interest  Total equity

Balance at 30 June 2016                       378,530,556              -     27,503,007            -     (5,188,611)   400,844,952               -    400,844,952

Comprehensive income for the year
Profit for the year                                     -              -     33,587,948            -              -    33,587,948          988,063     34,576,011
Other comprehensive income                              -              -             -             -    (5,371,692)   (5,371,692)                -    (5,371,692)
Total comprehensive income                              -              -     33,587,948            -    (5,371,692)    28,216,256          988,063     29,204,319
for the year

Equity transactions
Share-based payment reserve            25               -              -              -      225,973             -       225,973                 -        225,973
                                                        -              -              -      225,973             -       225,973                 -        225,973
Transactions with the owners of the
parent
Issue of shares                        24     192,292,442   (21,056,010)              -            -             -   171,236,432                 -    171,236,432
Distributions                          24    (13,266,725)              -    (5,202,917)            -             -  (18,469,642)                 -   (18,469,642)
Total other transactions with                 179,025,717   (21,056,010)    (5,202,917)            -             -   152,766,790                 -    152,766,790
the owners of the parent and
non-controlling interests

Balance at 30 June 2017                       557,556,273   (21,056,010)     55,888,038      225,973  (10,560,303)   582,053,971           988,063    583,042,034

Comprehensive income for the year
Profit for the year                                     -              -     16,856,306            -             -    16,856,306         2,477,116     19,333,422
Other comprehensive income                              -              -              -            -   (1,207,816)   (1,207,816)                 -    (1,207,816)
Total comprehensive income                              -              -     16,856,306            -   (1,207,816)    15,648,490         2,477,116     18,125,606
for the year

Equity transactions                                                                                                                              -
Share-based payment reserve            25               -              -              -      805,766             -       805,766                 -        805,766
                                                        -              -              -      805,766             -       805,766                 -        805,766
Transactions with the owners of the
parent
Issue of shares                        24     295,836,210              -              -            -             -   295,836,210                 -    295,836,210
Shares forfeited and cancelled         24     (8,193,000)      8,193,000              -            -             -             -                 -              -
Distributions                       24,27    (15,949,084)              -   (24,127,632)            -             -  (40,076,716)         (937,977)   (41,014,693)
Total other transactions with                 271,694,126      8,193,000   (24,127,632)            -             -   255,759,494         (937,977)    254,821,517
the owners of the parent and
non-controlling interest

Balance at 30 June 2018                       829,250,399   (12,863,010)     48,616,712    1,031,739  (11,768,119)   854,267,721         2,527,202    856,794,923

The notes form part of these consolidated preliminary financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2018

                                                                                                     Year ended       Year ended
Euro                                                                                     Note      30 June 2018     30 June 2017

Cash generated from operating activities                                                   22        34,900,798       20,478,405
Adjustments:
Decrease in receivables                                                                               1,029,613        2,557,048
(Decrease)/increase in payables                                                                       (904,406)        2,520,565
Increase in provisions                                                                                  192,278                -
Finance income received - interest on preference shares                                    14         3,602,861                -
Tax paid on operating activities                                                           15       (3,434,495)      (1,066,198)
Net cash from operating activities                                                                   35,386,649       24,489,820

Investing activities
Acquisition of investment property                                                         17      (79,650,439)    (156,414,516)
Capitalised expenditure on investment property                                             17      (13,167,161)     (21,900,594)
Settlement of investment property acquisition retentions                                              (225,000)      (3,318,865)
Proceeds from the sale of investment property                                              17        24,057,746        7,999,160
Capitalised expenditure on investment property held for sale                               23       (1,149,597)                -
Proceeds from the sale of investment property held for sale                                23         7,353,427                -
Expenditure on inventory property                                                                  (17,676,966)                -
Proceeds from sale of inventory property                                                             17,571,371                -
Acquisition of subsidiary net of cash acquired                                                                -     (61,326,012)
Acquisition of PKM preference shares                                                       29                 -    (100,000,000)
Capitalised transaction costs of equity-accounted investee                                 20                 -         (35,184)
Acquisition of property, plant and equipment                                                           (25,627)         (34,425)
Capitalised expenditure on intangible assets                                                           (78,679)        (222,519)
Proceeds from the sale of financial investments                                            19                 -       47,045,042
Acquisition of financial investments                                                       19     (199,557,215)                -
Finance cost paid - interest incurred on bank deposits                                     14         (332,222)          (6,830)
Finance income received - interest earned on bank deposits                                 14             4,223           72,951
Settlement of financial liability                                                                   (1,093,000)      (3,327,225)
Settlement of financial asset                                                                            66,097                -
Tax paid on investing activities                                                           15       (1,541,766)                -
Cash used in investing activities                                                                 (265,444,808)    (291,469,017)

Financing activities
Proceeds from the issue of share capital                                                   24       279,917,834      157,984,909
Proceeds from interest-bearing borrowings                                                  28       104,067,925      111,657,786
Transaction costs relating to interest-bearing borrowings                                  28       (1,431,560)      (2,168,837)
Repayment of capital on interest bearing-borrowings                                        28       (7,350,266)      (7,098,329)
Finance cost paid - interest on interest-bearing borrowings                             14,28       (4,435,102)      (2,470,916)
Distributions paid                                                                                 (25,096,317)      (5,202,917)
Cash generated from financing activities                                                            345,672,514      252,701,696

Net increase/(decrease) in cash and cash equivalents                                                115,614,355     (14,277,501)
Cash and cash equivalents at the beginning of the year                                               33,017,502       47,997,978
Effect of movements in foreign exchange rate fluctuations on cash held                                (806,233)        (702,975)
Cash and cash equivalents at the end of the year                                           22       147,825,624       33,017,502

The notes form part of these consolidated preliminary financial statements.

NOTES TO THE CONSOLIDATED PRELIMINARY FINANCIAL STATEMENTS
For the year ended 30 June 2018

1. CORPORATE INFORMATION

The Company is domiciled in the British Virgin Islands. These financial statements as at, and for the year ended,
30 June 2018 comprise the consolidated financial statements of the group.
 
MAS is a real estate investment group with a portfolio of real estate investments across Europe. The group aims to
deliver sustainable and growing distributions to shareholders over time.


2. BASIS OF PREPARATION

STATEMENT OF COMPLIANCE

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
("IFRS") as issued by the IASB, the JSE Listings Requirements, the Rules and Regulations of the Luxembourg Stock
Exchange and applicable legal and regulatory requirements of the BVI Business Companies Act 2004.

BASIS OF MEASUREMENT

These consolidated financial statements are prepared on the historical cost basis except for the following items that are
measured on the fair value basis:

- Financial instruments classified as at fair value through profit or loss FVTPL, refer to notes 29 and 30;
- Financial investments, refer to note 19;
- Share-based payments, refer to 25;
- Investment property, refer to note 17; and
- Investment property held for sale, refer to note 23

The group uses observable market data as far as it is available to measure the fair values of assets and liabilities. Fair values
are categorised into different levels in a fair value hierarchy based upon the inputs used in the valuation technique 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
         or indirectly.
          
Level 3: Inputs for the asset or liability that are not based on observable market data.

Where the inputs used in the valuation technique fall into more than one category in the fair value hierarchy, the asset or
liability is categorised into the lowest level input that is significant in the valuation of that asset or liability.
 
The group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which
the change occurred.

USE OF JUDGEMENT AND ESTIMATION UNCERTAINTY

The board has made judgements, estimates and assumptions that affect the application of the group's accounting policies
and the reported amounts in the financial statements. The directors continually evaluate these judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses based upon historical experience and on other
factors that they believe to be reasonable under the circumstances. Actual results may differ from the judgements,
estimates and assumptions.

The key areas of judgement are:

- Whether the acquisition of an investment property is a business combination: The group applies judgement to the
  acquisition of investment property to determine whether the acquisition is the acquisition of an asset, a group of assets
  or a business combination in the scope of IFRS 3 'Business Combinations'. The acquisitions during the year were not
  business combinations as the group did not acquire the strategic management. For property acquisitions refer to note 17.
- Sales of inventory property: Once a sale agreement contract is negotiated and a sale of investment property is agreed, the
  group assesses whether it is a continuous-sale transaction or a sale of goods transaction. The judgement is based on the
  terms and conditions of the sale agreement, which are comparable to the criteria set out in IFRIC 15 'Agreements for the
  Construction of Real Estate' and IAS 18 'Revenue', notwithstanding that the sale of inventory property is not income that
  arises in the ordinary activities of the group, refer to note 18.
- Preference shares - PKM Developments: The group is required to make judgements whether there is objective evidence that
  the preference shares may be impaired. The group has concluded there is no objective evidence that the preference
  shares are impaired, refer to note 29.

The key areas of estimation uncertainty are:

- Investment property and Investment property held for sale: External property valuation experts or, where relevant, firm
  offers from market participants are used to determine the fair value of investment property. The external property
  valuation experts use recognised valuation techniques and apply the principles of IFRS 13: Fair Value Measurement. The
  significant methods and assumptions used by the valuers in estimating fair value are set out in notes 17 and 23.
- Loan commitments: The group committed to acquire PKM Developments preference shares, refer to note 20.
  Judgements are made to assess the market related rate of these loan commitments. The group applies judgement in
  reviewing the loan commitments made and determined that the cost of funding the loan commitment is lower than the
  rate to be charged; accordingly the loan commitment is neither onerous nor impaired.
- Continuous-sale transaction: The group entered into an agreement to dispose of the land that is designated for offices at
  New Waverley in Edinburgh, Scotland to Legal & General and to develop the office on a forward funding basis for Legal &
  General. The transaction has been accounted for as a continuous-sale transaction and the following assumptions have
  been made to estimate the costs of completion to determine the amounts of revenue recognised:
   - Construction costs; and
   - Stage of completion.
  The significant methods and assumptions are set out in note 18.
- Financial instruments: In determining the fair value of financial instruments and financial investments measured at fair
  value through profit or loss, the group is required to make estimations of unobservable inputs in determining fair value.
  The significant methods and assumptions used in estimating fair value are set out in note 30.

PRESENTATION CURRENCY

These consolidated financial statements are presented in euro which is the group's presentation currency.

3. ADOPTION OF NEW AND REVISED STANDARDS

The group adopted the following amendments to standards:

Amendments/improvements to standards and interpretations adopted                                Description

IAS 7 (Amendments) 'Statement of Cash Flows'                                                    - Disclosure initiatives
IAS 12 (Amendments) 'Income taxes'                                                              - Recognition of deferred tax
                                                                                                  assets for unrealised losses
IFRS 12 (Amendments) 'Disclosure of Interests in Other Entities'                                - Clarification of scope

There has been no impact on the numbers reported or to the disclosures as a result of the adoption of the amendments to
these standards.

NEW AND AMENDED STANDARDS AND INTERPRETATIONS NOT YET ADOPTED

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

                                                                                                IASB effective for annual
Amendments/improvements to standards and interpretations not yet effective                      periods beginning on or after

IFRS 9 (2014) 'Financial Instruments'                                                           1 January 2018
IFRS 15 'Revenue from Contracts with Customers'                                                 1 January 2018
IAS 40 - 'Amendment to Clarify Transfers of Property to, or from, Investment Property'          1 January 2018
IFRS 16 'Leases'                                                                                1 January 2019

IFRS 9 (2014) - 'FINANCIAL INSTRUMENTS'

The group early adopted IFRS 9 (2013) in the financial year ended 30 June 2015. The changes to IFRS 9 (2014) relate to the
impairment model, which is based on the premise of recognising expected credit losses and will apply to financial assets
measured at amortised cost, fair value through other comprehensive income and loan commitments. The standard requires
financial instruments that have not had a significant increase in credit risk since initial recognition or that have low credit risk
at the reporting date to recognise 12-month expected credit losses, being the expected credit losses that result from default
events that are possible within 12 months after the reporting date.

At 30 June 2018 the group held the following financial instruments that are in the scope of the impairment model:
financial assets at amortised cost; cash and cash equivalents; and trade and other receivables (except prepayments). The
group has assessed the potential impact resulting from the amendments and does not expect there to be any impact at
this time as credit risk has not increased significantly since initial recognition and is assessed to be low, and no 12-month
expected credit loss is likely. The group will adopt the new standard for the reporting period ending 30 June 2019.

IFRS 15 - 'REVENUE FROM CONTRACTS WITH CUSTOMERS'

The standard applies to all contracts with customers except for: lease contracts, financial insurance contracts, financial
instruments and non-monetary exchanges between entities in the same business.
 
The majority of the group's income is rental income from leases, which are in the scope of IAS 17 and will not be affected
by the change in this standard.
 
The sale of certain assets will be affected by the change in the standard. The accounting treatment for these sales has
been considered under the existing IAS 18 and IFRIC 15 as well as the new IFRS 15 standards. The same conclusions have
been made. It has been concluded that revenue will be recognised over a period of time using the input method as the
measure of progress - with the performance obligations being the sale of the land and the development of the building.
 
The group will adopt the new standard for the year ending 30 June 2019.

IAS 40 - AMENDMENT TO CLARIFY TRANSFERS OF PROPERTY TO, OR FROM, INVESTMENT PROPERTY

The amendment clarifies whether a property under construction or development that was previously classified as inventory
could be transferred to investment property when there is evidence of a change in use.
 
The group has assessed the impact of adopting the amendment to IAS 40 in respect of transfer to and from investment
property and does not expect any impact.
 
The group will adopt the new amendment for the year ending 30 June 2019.

IFRS 16 - 'LEASES'

The standard applies to all lease contracts. The changes require lessees to recognise assets and liabilities for all leases
unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as
operating or finance, substantially unchanged from IAS 17.
 
The group has a number of small leases in the scope of the new standard which are required to be recognised as right-
of-use assets with corresponding lease liabilities in the group's statement of financial position. The impact is deemed to
be immaterial.
 
The group will adopt the new standard for the year ending 30 June 2020.

4. SIGNIFICANT GENERAL ACCOUNTING POLICIES

For specific accounting policies please refer to the corresponding notes.

FINANCIAL INSTRUMENTS

i FINANCIAL ASSETS

The group classifies its financial assets into the following categories: financial assets at amortised cost and financial assets at fair
value through profit or loss. Financial assets are recognised when the group becomes party to the contractual terms of the asset.

FINANCIAL ASSETS AT AMORTISED COST

Financial assets are classified as financial assets at amortised cost only if both the following criteria are met:
the financial asset is held within a business model whose objective is to hold assets in order to collect contractual cash
flows; and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. Interest is the consideration for the time value of money and
credit risk associated with the principal amount outstanding.
 
Financial assets classified as financial assets at amortised cost are recognised initially at fair value plus any directly
attributable transaction costs. Subsequent to initial recognition, these financial assets are measured at amortised cost using
the effective interest method, less any impairment losses.

DERECOGNITION OF FINANCIAL ASSETS

The group derecognises a financial asset when the contractual terms of the asset expire.

IMPAIRMENT

A financial asset measured at amortised cost is assessed at each reporting date to determine whether there is objective
evidence that it is impaired. A financial asset is impaired if objective evidence indicates that an incurred loss event has
occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash
flows of that asset.
 
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its
carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective
interest rate. Losses are recognised in profit or loss and reflected as either a direct impairment against the financial asset or
in the case of trade and other receivables, in an allowance account against trade and other receivables. Interest on the
impaired asset continues to be recognised to the extent that it is probable that the interest will be collected.
 
When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is
reversed through profit or loss.

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

A financial asset is classified as fair value if it does not meet either criteria for classification of a financial asset at amortised
cost. The group initially recognises these financial assets at fair value at the trade date and attributable transaction costs
are recognised in profit or loss as incurred. Financial assets at fair value through profit or loss are subsequently measured at
fair value and changes therein are recognised in profit or loss in the period in which they occur.

ii. FINANCIAL LIABILITIES

The group classifies its financial liabilities into the following categories: financial liabilities at amortised cost and financial
liabilities at fair value through profit or loss. Financial liabilities are recognised when the group becomes party to the
contractual terms of the liability.

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial liabilities are classified as financial liabilities at fair value if they are: financial liabilities that are held for trading;
derivative financial instruments; financial liabilities designated as fair value; financial liabilities that arise when a transfer of a
financial liability does not qualify for derecognition or when the continuing involvement applies; financial guarantees; and
commitments to provide loans at a below-market interest rate.

The group may elect to designate financial liabilities as financial liabilities at fair value that would otherwise meet the criteria
to be classified as a financial liability at amortised cost, if doing so eliminates or significantly reduces a measurement or
recognition inconsistency that would arise if the financial liability were measured at amortised cost.

The group initially recognises financial liabilities at fair value at trade date and attributable transaction costs are recognised
in profit or loss as incurred. Financial liabilities at fair value through profit or loss are subsequently measured at fair value
and changes therein are recognised in profit or loss in the period in which they occur.

FINANCIAL LIABILITIES AT AMORTISED COST

All financial liabilities are classified as financial liabilities at amortised cost unless they meet the criteria for classification as
financial liabilities at fair value through profit or loss.
 
These financial liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent
to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method.

DERECOGNITION OF FINANCIAL LIABILITIES

The group derecognises a financial liability when the contractual obligations of the liability expire, for example when the
obligation specified in the contract is discharged, cancelled or expires.

BORROWING COSTS

Interest-bearing borrowings are allocated to either specific or general borrowings. Specific or general borrowing costs are
capitalised if they are directly attributable to the acquisition, construction or production of qualifying assets which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale. These are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation.
 
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

EMPLOYEE COSTS

Employee benefits comprise the total costs of employment to the group, mainly consisting of; salary, annual leave,
employment taxes, and the current expense in relation to the geared share purchase plan. These short-term employee
benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the
group has a present legal or constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

5. RENTAL INCOME

ACCOUNTING POLICY

Rental income from investment properties leased out under operating leases is recognised in profit or loss on a straight-line
basis over the term of the lease. Initial direct costs incurred in negotiating and arranging an operating lease are recognised
as an expense over the lease term on the same basis as the lease income.
 
Tenant lease incentives are recognised as a reduction of rental income on a straight-line basis over the term of the lease.
The term of the lease is the non-cancellable period together with any further term for which the tenant has the option to
continue the lease, where, at the inception of the lease, there is reasonable certainty that the tenant will exercise that
option.
 
Turnover rent is contingent on the underlying performance of the tenant, as such it is recognised as incurred.

DISCLOSURE
                                                                                                     Year ended       Year ended
Euro                                                                                               30 June 2018     30 June 2017

Rental income                                                                                        35,461,317       25,322,178
Turnover rent                                                                                         1,991,196        1,710,060
                                                                                                     37,452,513       27,032,238

Rental income derived from the following tenants represents more than 10% of the group's rental income and is included
within the income-generating segment of the group:

                                                                                                     Year ended       Year ended
Euro                                                                                               30 June 2018     30 June 2017

Edeka MIHA AG                                                                                         5,837,967        5,316,024

The future aggregate minimum rental receivable under non-cancellable operating leases, excluding turnover based and
contingent rent is as follows:

                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

No later than 1 year                                                                                  39,501,963      34,403,438
Greater than 1 year and less than 5 years                                                            135,874,939     116,200,143
Greater than 5 years                                                                                 182,238,453     190,513,803
                                                                                                     357,615,355     341,117,384

6. PROFIT ON SALES OF INVENTORY PROPERTY

ACCOUNTING POLICY

When the group enters into a contract to sell completed property, revenue is recognised when the significant risks and
rewards of ownership are transferred from the group. Where the terms of the contract represent a continuous transfer of
work in progress to the purchaser, revenue is recognised using the percentage of completion method as work progresses.
Continuous transfer of work in progress is applied when:

- the land on which the property is being developed is owned by the purchaser;
- the buyer carries the risks and rewards of the incomplete property; and
- when the buyer cannot put the incomplete property back to the group.

The percentage of work completed is estimated based on the costs incurred to the end of the reporting period as a
proportion of total costs expected to be incurred.

DISCLOSURE
                                                                                                      Year ended      Year ended
Euro                                                                                    Note        30 June 2018    30 June 2017

Sales of inventory property                                                                           26,020,940               -
Cost of sales of inventory property                                                       18        (21,704,016)               -
                                                                                          22           4,316,924               -

During the period a total profit of EUR4,316,924 in relation to inventory property was recognised, which derives from the pre-let
agreement and disposal of land agreement for the office component of the New Waverley development, refer to note 18.

7. SERVICE CHARGE INCOME AND OTHER RECOVERIES

ACCOUNTING POLICY

The group's service charge income and other recoveries include service charges received under operating leases and
income for the recovery of direct expenses paid by the group. The income is recognised in profit or loss in the period in
which it is earned and incurred.

DISCLOSURE
                                                                                                     Year ended       Year ended
Euro                                                                                               30 June 2018     30 June 2017

Service charge income                                                                                 5,711,794        4,136,662
Other recoverable expenses                                                                              242,254          413,528
                                                                                                      5,954,048        4,550,190

8. SERVICE CHARGE AND OTHER PROPERTY OPERATING EXPENSES

ACCOUNTING POLICY

Service charge and other property operating expenses are expenses which are incurred in relation to the properties held by
the group. These expenses comprise of direct expenses in relation to income-generating properties and indirect expenses
in relation to development properties and land bank. These expenses are recognised in profit or loss in the period in which
they are incurred.
 
Employee costs which relate to the operating of investment properties are also recognised in property operating
expenses to the extent that they relate to income-generating property. They are capitalised where they relate to
development property.

DISCLOSURE
                                                                                                     Year ended       Year ended
Euro                                                                                               30 June 2018     30 June 2017

Property expenses                                                                                     4,291,513        4,153,918
Building repairs and maintenance                                                                      1,773,243        1,371,218
Management expense                                                                                    2,619,665        1,048,072
Marketing fees                                                                                          827,768          138,207
Insurance expense                                                                                       627,121          499,458
Legal fees                                                                                              587,102          272,005
Other expenses                                                                                          347,106          115,158
                                                                                                     11,073,518        7,598,036

9. INVESTMENT EXPENSES

ACCOUNTING POLICY

Investment expenses relate to expenses incurred in the process of acquiring investment property and listed real estate
equity securities that cannot be capitalised. These expenses are recognised in profit or loss in the period in which they are
incurred.

                                                                                                      Year ended      Year ended
Euro                                                                                                30 June 2018    30 June 2017

Transaction fees on investment property                                                                1,216,370         281,061
Transaction fees on listed real estate equity securities                                                 759,726               -
                                                                                                       1,976,096         281,061

10. FAIR VALUE ADJUSTMENTS

ACCOUNTING POLICY

Fair value adjustments comprise:

FAIR VALUE ADJUSTMENTS ON INVESTMENT PROPERTY

Investment property is measured at fair value at the reporting date and changes therein are recognised within fair value
adjustments in profit or loss in the period in which they occur, refer to note 17.

FAIR VALUE ADJUSTMENTS ON INVESTMENT PROPERTY HELD FOR SALE
Investment property held for sale is measured at fair value at the reporting date under IAS 40 and changes therein are
recognised within fair value adjustments in profit or loss in the period in which they occur, refer to note 23.

FAIR VALUE ADJUSTMENTS ON FINANCIAL INVESTMENTS

Financial investments held at fair value through profit or loss are measured at fair value at the reporting date and changes
therein are recognised within fair value adjustments in profit or loss in the period in which they occur, refer to note 19.

FAIR VALUE ADJUSTMENTS ON FINANCIAL LIABILITIES

Financial liabilities held at fair value through profit or loss are measured at fair value at the reporting date and changes
therein are recognised within fair value adjustments in profit or loss in the period in which they occur, refer to note 30.

FAIR VALUE ADJUSTMENTS ON FINANCIAL ASSETS

Financial assets held at fair value through profit or loss are measured at fair value at the reporting date and changes therein
are recognised within fair value adjustments in profit or loss in the period in which they occur, refer to note 29.

DISCLOSURE
                                                                                                      Year ended      Year ended
Euro                                                                                         Note   30 June 2018    30 June 2017

Fair value adjustments
(Loss)/gain on fair value of investment property                                                        (721,387)     36,763,196
Gain on fair value of investment property held for sale                                                 2,766,206        786,795
Loss on fair value of financial investments                                                          (16,504,952)    (4,569,026)
Gain on fair value of financial assets                                                                    350,585              -
Loss on fair value of financial liabilities                                                           (1,690,579)    (7,388,675)
                                                                                              22     (15,800,127)     25,592,290
Detailed as follows:

Change in fair value of investment property
Income-generating                                                                             17       13,439,408     19,437,659
Development                                                                                   17      (4,559,691)     17,325,537
Land bank                                                                                     17      (9,601,104)              -
                                                                                                        (721,387)     36,763,196
Change in fair value of investment property held for sale
Investment property held for sale                                                             23        2,766,206        786,795
                                                                                                        2,766,206        786,795

Change in fair value of financial investments
Listed real estate equity securities                                                          19     (16,504,952)              -
Sirius Real Estate Limited                                                                    19                -    (4,569,026)
                                                                                                     (16,504,952)    (4,569,026)

Change in fair value of financial assets
Interest rate swaps                                                                           29         350,585               -
                                                                                                         350,585               -

Change in fair value of financial liabilities
Interest rate swaps                                                                           30       (123,226)         769,594
Development management fee                                                                    30       (682,956)     (1,885,457)
Priority participating profit dividend                                                        30       (884,397)     (6,272,812)
                                                                                                     (1,690,579)     (7,388,675)

11. OTHER INCOME

ACCOUNTING POLICY

Other income includes dividend income from financial investments. Dividend income is recognised in profit or loss on the
date on which the group's right to receive payment is established.

DISCLOSURE
                                                                                                    Year ended        Year ended
Euro                                                                                    Note      30 June 2018      30 June 2017

Dividend income earned on financial investments                                           19         8,423,423                 -
Other                                                                                                  161,609                 -
                                                                                                     8,585,032                 -

12. CORPORATE EXPENSES

ACCOUNTING POLICY

Corporate expenses are expenses incurred that are not directly related to property. These expenses are recognised in profit
or loss in the period in which they are incurred.

DISCLOSURE
                                                                                                     Year ended       Year ended
Euro                                                                                    Note       30 June 2018     30 June 2017

Employee costs                                                                                        2,526,935        1,759,997
Office and administration expenses                                                                    1,288,761        1,018,974
Legal and professional                                                                                  374,986          175,199
Audit and accounting fees                                                                               352,282          171,139
Investor communications                                                                                 176,886          226,385
Listing fees                                                                                            127,097          118,651
Depreciation                                                                              22            100,026           27,864
                                                                                                      4,946,973        3,498,209

13. FOREIGN CURRENCY EXCHANGE DIFFERENCES

ACCOUNTING POLICY

Transactions in foreign currencies are translated into the presentation currency of the group at the rate of exchange
prevailing at the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in
foreign currencies are translated into the presentation currency at the rates prevailing at that date.

Non-monetary assets and liabilities measured at fair value that are denominated in foreign currencies are translated at
the rate at the date the fair value was determined. Non-monetary items that are measured based on the historical cost in a
foreign currency are not translated.

Foreign currency differences are recognised in profit or loss.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the group's foreign
operations are expressed in euros using exchange rates prevailing at the reporting date. Income and expense items are
translated at the average exchange rates for the period. Exchange differences arising, if any, are recognised in other
comprehensive income and presented in equity in the foreign currency translation reserve, except to the extent that the
translation difference is allocated to non-controlling interest. Such exchange differences are reclassified to profit or loss in
the period in which the foreign operation is disposed of.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities
of the foreign operation and translated at the closing rate.

DISCLOSURE
                                                                                                     Year ended       Year ended
Euro                                                                                     Note      30 June 2018     30 June 2017

Foreign currency exchange differences                                                      22         1,020,787        4,684,895

The group has loans between group entities which are eliminated on consolidation. The translation differences arising on
these intra-group loans are not eliminated and are recognised in profit or loss because they are not deemed to form part of
the net investment in a foreign operation.

Where intra-group loans are denominated in the non-euro functional currency of the foreign operation and are from
group entities with a euro functional currency, there is no translation difference recognised in profit or loss of the foreign
operation. However, there is a translation difference recognised in profit or loss of the group entity with a euro functional
currency. A translation difference on the foreign operation is recognised in other comprehensive income and accumulated
in the foreign currency translation reserve when the intra-group loans of the foreign operation are translated into euros, the 
presentation currency of the group.

Exchange gains and losses arise from the revaluation of monetary assets and liabilities. It is not the policy of the group
to hedge currencies held between euro, sterling, Swiss franc, Polish zloty and Bulgarian lev. As a result, translation
differences arise predominantly from the intra-group loans to foreign operations.

14. FINANCE INCOME AND FINANCE COSTS

ACCOUNTING POLICY

Finance income and finance costs include the following:

-  Interest income from financial assets held at amortised cost; and
-  Interest expense from financial liabilities held at amortised cost

Finance income and costs are recognised using the effective interest method.

DISCLOSURE
                                                                                                      Year ended      Year ended
Euro                                                                                     Note       30 June 2018    30 June 2017

Finance income
Interest earned on preference shares                                                       29          7,514,384       1,134,245
Amortisation of capital contribution - asset                                               29            456,951               -
Interest earned on bank deposits                                                                           4,223          72,951
                                                                                           22          7,975,558       1,207,196
Finance costs
Interest on interest bearing borrowings                                                    28        (4,771,171)     (2,231,667)
Amortisation of capital contribution - liability                                           30          (456,951)               -
Interest incurred on bank deposits                                                                     (332,222)         (6,830)
                                                                                           22        (5,560,344)     (2,238,497)

The group received EUR3,607,084 (2017: EUR72,951) of finance income during the reporting period. The amount relates to
EUR3,602,861 (2017: EURnil) of finance income received from operating activities and EUR4,223 (2017: EUR72,951) of finance income
received from investing activities.

The group paid EUR4,767,324 (2017: EUR2,477,746) of finance costs during the reporting period. The amount relates to EUR332,222
(2017: EUR6,830) of finance costs paid from investing activities and EUR4,435,102 (2017: EUR2,407,916) of finance costs paid from
financing activities.

15. TAX

ACCOUNTING POLICY

Income tax for the year comprises current and deferred tax. Income tax is recognised in profit or loss except to the extent
that it relates to items recognised in other comprehensive income or directly in equity, in which case it is recognised in
other comprehensive income or equity.

CURRENT TAX

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the reporting period plus/
minus any adjustments to the tax payable or receivable in respect of previous years. It is measured using enacted or
substantively enacted tax rates at the reporting date.

DEFERRED TAX

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the fiscal values used for tax purposes, except for the following temporary differences
which are not provided for:

- Those arising from goodwill not deductible for tax purposes;
- Those arising from the initial recognition of assets or liabilities that affect neither accounting or taxable profit, and are not
  part of a business combination; and
- Those arising on investments in subsidiaries and associates where the timing of the reversal can be controlled and it is
  probable that the temporary difference will not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount
of assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. For purposes of calculating
deferred tax on investment property there is a rebuttable presumption that the carrying amount is realised through sale.
 
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be utilised and is reduced to the extent that it is no longer probable that the related tax benefit
will be realised.

DISCLOSURE

CURRENT TAX

The company is domiciled in the BVI and is not subject to tax in that jurisdiction. Operating subsidiaries of the group,
however, are exposed to tax in the jurisdictions in which they operate and, potentially, in the jurisdictions through which the
subsidiary investment companies are held.

The group's taxation includes the following:
                                                                                                     Year ended       Year ended
Euro                                                                                               30 June 2018     30 June 2017

Current tax                                                                                           5,556,002        1,741,449
Deferred tax expense                                                                                  1,311,385        3,942,153
Tax expense                                                                                           6,867,387        5,683,602

The current tax, including under/over-provisions in respect of earlier periods, for each jurisdiction is as follows:

                                                                Year ended                          Year ended
                                                              30 June 2018                        30 June 2017
                                                                Applicable              Tax         Applicable               Tax
                                                                  rate (%)             Euro           rate (%)              Euro

Income tax
UK - income tax                                                       20.0          779,132               20.0           420,835
UK - corporation tax                                                  19.0        2,394,030               19.0                 -
Germany                                                               15.8          210,255               15.8           623,902
Poland                                                                19.0           66,792               19.0           194,812
Switzerland                                                           26.8           23,683               26.8                 -
Netherlands                                                           20.0           25,689               20.0                 -
 
Withholding tax
Poland                                                                 5.0        (281,974)                5.0           448,612
UK                                                                    20.0          144,982               20.0                 -
France                                                                30.0        2,174,252               30.0                 -
Sweden                                                                15.0           55,170               15.0                 -

Wealth tax
Switzerland                                                            0.2           19,490                0.2             5,944
Luxembourg                                                             0.5         (55,499)                0.5            47,344
                                                                                  5,556,002                            1,741,449

The UK corporation tax relates to the following sales at New Waverley, refer to note 18: 

- Tax on disposal of office land of EUR1,581,195.
- Tax on sale of inventory property of EUR812,835.

The group paid EUR4,976,261 (2017: EUR1,066,198) in total tax during the reporting period. The amount relates to EUR3,434,495
(2017: EUR1,066,198) for tax paid on operating activities and EUR1,541,766 (2017: EURnil) for tax paid on investing activities.

RECONCILIATION OF DEFERRED TAX:

                                                                                                   Year ended         Year ended
Euro                                                                                             30 June 2018       30 June 2017

Net deferred tax liability brought forward                                                          4,240,319            521,449
Current year deferred tax movement                                                                  1,311,385          3,942,153
Acquisition of subsidiary - deferred tax asset                                                              -            380,711
Disposal of investment property                                                                             -          (178,924)
Foreign currency translation difference in OCI                                                       (19,510)          (425,070)
Net deferred tax liability carried forward                                                          5,532,194          4,240,319
The net deferred tax liability is split as follows:

                                                                                                        As at              As at
Euro                                                                                             30 June 2018       30 June 2017

Deferred tax asset                                                                                    607,179            758,055
Deferred tax liability                                                                            (6,139,373)        (4,998,374)
Net deferred tax liability                                                                        (5,532,194)        (4,240,319)

The group recognises deferred tax assets to the extent that it is probable that future taxable profits will be available against
which the unused tax losses and unused tax credits can be utilised.

RECONCILIATION OF EFFECTIVE TAX RATE
                                                                        Year ended                        Year ended
                                                                       30 June 2018                      30 June 2017
                                                                             %            Euro                  %           Euro

Profit before tax                                                                   26,200,809                        40,259,613

Tax using the company's domestic rate                                      0.0               -                0.0              -
Effect of tax rates in foreign jurisdictions                            (22.5)     (5,894,358)              (4.3)    (1,741,449)
Over provision in respect of prior years                                   1.3         338,356                0.0              -
Current tax                                                             (21.2)     (5,556,002)              (4.3)    (1,741,449)

Change in recognised deductible temporary differences
Revaluation of investment property                                         1.9         488,574              (9.4)    (3,767,882)
Other temporary differences                                              (6.9)     (1,799,959)              (0.4)      (174,271)
Deferred tax expense                                                     (5.0)     (1,311,385)              (9.8)    (3,942,153)
Net tax expense                                                         (26.2)     (6,867,387)             (14.1)    (5,683,602)

The Isle of Man domestic tax rate of 0% was considered the most meaningful rate on the basis that the profits are earned
across several jurisdictions and none of those jurisdictions dominates the group's portfolio.

The other temporary differences relate to timing differences between the tax base and the carrying amount of the
assets due to depreciation allowable for tax purposes and unused tax losses.

There has been no change in the applicable tax rates. The primary reason for the increase in the effective tax rate from
14.1% to 26.2% is as a result of changes in the geographical mix of profits. 

16. INTANGIBLE ASSETS

ACCOUNTING POLICY

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount
recognised for non-controlling interests, and any previous interest held, over the fair value of net identifiable assets acquired
and liabilities assumed.

Goodwill impairment reviews are undertaken at each reporting date or more frequently if events or changes in
circumstances indicate a potential impairment. For impairment testing, assets are grouped together into the smallest
groups of assets that generate cash inflows from continuing use that are largely independent of the cash inflows of other
CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit
from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in
use is based on estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognised if the carrying amount of the CGU exceeds its recoverable amount. Impairment losses
are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU,
and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect
of goodwill is not reversed.

Other intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.
They are amortised on a straight-line basis over a useful life of 10 years.

DISCLOSURE
                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

Goodwill                                                                                             22,292,997       23,744,836
Other intangible assets                                                                                 299,496          222,519
                                                                                                     22,592,493       23,967,355
GOODWILL

                                                                                                            New
Euro                                                                                 MAS Prop          Waverley            Total

Balance at 30 June 2016                                                              23,901,016        1,361,802      25,262,818
Foreign currency translation difference in OCI                                       (1,436,155)        (81,827)     (1,517,982)
Balance at 30 June 2017                                                              22,464,861        1,279,975      23,744,836
Foreign currency translation difference in OCI                                         (171,864)         (5,629)       (177,493)
Impairment                                                                                   -       (1,274,346)     (1,274,346)
Balance at 30 June 2018                                                              22,292,997                -      22,292,997

NEW WAVERLEY

The initial goodwill arising on New Waverley was allocated to the New Waverley development CGU and represented a
portion of the estimated future value above the carrying amount of the New Waverley development. At acquisition the fair
value of the New Waverley development could not be reliably determined. Accordingly, it was carried at cost. As
construction progressed and a fair value became reliably determinable, the group measured the investment property in the
New Waverley development CGU at fair value.

An impairment test was performed at 31 December 2017, as a result of the group fair valuing the investment property in
the New Waverley development CGU. The carrying amount of the CGU, which included the goodwill, exceeded its
recoverable amount, which resulted in all the goodwill attributable to the CGU being impaired.

An impairment of EUR1,274,346 (2017: EURnil) was recognised as a result of the group's impairment test of the New Waverley
goodwill.

The recoverable amount of the New Waverley goodwill was calculated using the fair value less costs to sell of the New
Waverley business and is classified as level 3 in the fair value hierarchy. The majority of New Waverley net assets comprise
investment property and investment property held for sale. The valuation techniques have been disclosed in note 17.

MAS PROP

No impairment loss was recognised as a result of the group's annual impairment test of goodwill in relation to MAS Prop
(2017: EURnil).

The recoverable amount of the MAS Prop CGU was based on the value in use, using a discounted cash flow
methodology. Under the investment advisory agreement MAS Prop is entitled to a fee based upon the net asset value of
the group. As a result of the significant growth in the group's net asset value, the cash flows over the remaining forecast
period are substantially in excess of those originally forecast at the time of acquisition. Consequently, the value in use of the
MAS Prop CGU is significantly higher than the carrying value of goodwill.

 All cash flows in the value in use calculation were forecast for a period of 6 years (2017: 7 years) which is more than a
5 year projection as the cash flow forecasts are prepared for the remaining term of the pre-existing investment advisory
agreement. Budgeted EBITDA was based on expectations of future outcomes taking into account past experience adjusted
for anticipated net asset growth of the group and increases in operating expenses.

The following key assumptions were used to estimate value in use calculations as follows:
                                                                                                       As at               As at
Inputs                                                                                          30 June 2018        30 June 2017

Pre-tax discount rate                                                                                  6.49%               6.44%
Annual increase in revenue                                                                     2.00% - 3.00%       7.00% - 9.00%
Annual increase in operating expenses                                                          2.00% - 4.00%       4.00% - 6.00%
Budgeted period                                                                                      6 years             7 years
The key assumptions were derived from the following:

PRE-TAX DISCOUNT RATE

Derived from the weighted average cost of capital of MAS Prop.

ANNUAL INCREASE IN REVENUE

Derived from the operating budgets of MAS Prop.

ANNUAL INCREASE IN OPERATING EXPENSES

Derived from the operating budgets of MAS Prop.

BUDGETED PERIOD

Derived from the remaining term of the pre-existing investment advisory agreement.
 
No cash flows have been assumed beyond the budgeted period, and accordingly no growth is assumed beyond the
forecast period. Management has determined that a reasonably possible change to the key assumptions would not result in
an impairment.

17. INVESTMENT PROPERTY

ACCOUNTING POLICY

Investment property comprises freehold land, leasehold land, buildings and installed equipment held for the purpose of
earning rental income and for capital appreciation. Investment property also includes property under construction for
future use as investment property and property which has a currently undetermined use.

Investment property is treated as a long-term investment and is initially recognised at cost (including related transaction
costs unless acquired as part of a business combination). It is subsequently measured at fair value, with any changes therein
recognised in profit or loss. Subsequent expenditure that produces future economic benefit to the group is capitalised.

Fair value is based on a number of assumptions and inputs utilising the below methods;
- The market approach is based on comparing the subject asset with identical or similar assets for which price information
  is available, such as a comparison with market transactions in the same, or closely similar, type of asset within an
  appropriate time horizon.
- The income approach is based on capitalisation or conversion of present and predicted income (cash flows), which may
  take a number of different forms, to produce a single current capital value. Among the forms taken, capitalisation of a
  conventional market-based income or discounting of a specific income projection can both be considered appropriate
  depending on the type of asset and whether such an approach would be adopted by market participants.
- The cost approach is based on the economic principle that a purchaser will pay no more for an asset than the cost to
  obtain one of equal utility whether by purchase or construction.

External valuations, where applicable, are performed by independent professional valuers who hold recognised and relevant
professional qualifications and have recent experience of valuing that type and location of investment property.

Development property and land bank are initially recognised at cost and subsequently remeasured to fair value. The fair
value of development property and land bank is not always reliably determinable due to the properties being in the early
stages of construction or where construction has not yet begun. Where fair value cannot be reliably determined, but the
group expects that the fair value will be reliably determinable when construction is further progressed, the group measures
such properties at cost less impairment until such point in time that the fair value can be reliably determined. Where fair
value cannot be reliably determined and there are indicators of impairment the recoverable amount is estimated. In this
situation, the recoverable amount is determined using a value in use calculation, because the fair value less costs to sell
cannot be reliably determined. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable
amount. Impairment losses are recognised in profit or loss.

Any gains or losses arising from changes in fair value are included in profit or loss. Gains or losses arising from the
disposal of investment property, being the difference between the net disposal proceeds and the carrying amount, are
recognised in profit or loss.

DISCLOSURE

The group's investment property comprises income-generating property, development property and land bank:

Segment                       Detail
Income-generating property    Property that is currently producing income and held for the purpose of earning a yield.
                              There may be further asset management opportunities on these properties, which could
                              further enhance income returns.
Development property          Property that is being developed in order to create income producing property held for the
                              purpose of earning a better yield than by acquiring standing property.
Land bank                     Residential developments and land plots held for schemes that have not yet commenced.


                                                 As at 30 June 2018                           As at 30 June 2017
Euro                                    Fair value           Cost           Total        Fair value         Cost           Total

Income-generating property             546,238,139              -     546,238,139       494,519,173            -     494,519,173
Development property                            -               -               -        26,413,036    3,668,759      30,081,795
Land bank                               32,974,206              -      32,974,206                 -   39,690,960      39,690,960
                                       579,212,345              -     579,212,345       520,932,209   43,359,719     564,291,928

As at 30 June 2018
                                                                       Income-
Euro                                                       Note     generating      Development       Land bank            Total

Opening balance                                                    494,519,173       30,081,795      39,690,960      564,291,928
Property acquisitions                                               80,123,500                -               -       80,123,500
Property disposals                                                           -     (24,057,746)               -     (24,057,746)
Transfers                                                                           (3,434,151)       3,434,151                -
Capitalised expenditure                                              2,890,738        2,954,116       7,322,307       13,167,161
Capitalised interest on general borrowings               28,18               -                -         569,031          569,031
Transfer to investment property held for sale               23    (43,082,065)                -     (8,246,692)     (51,328,757)
Transfer to inventory property                              18               -      (1,078,030)               -      (1,078,030)
Fair value adjustment                                       10      13,439,408      (4,559,691)     (9,601,104)        (721,387)
Foreign currency translation difference                            (1,652,615)           93,707       (194,447)      (1,753,355)
Closing balance                                                    546,238,139                -      32,974,206      579,212,345
As at 30 June 2017
                                                                       Income-
Euro                                                      Note      generating      Development       Land bank            Total

Opening balance                                                    242,625,172       22,430,253      41,940,654      306,996,079
Property acquisitions                                              156,414,516                -               -      156,414,516
Property acquired in business combinations                          61,330,722                -               -       61,330,722
Capitalised acquisition costs                                        3,993,439                -               -        3,993,439
Property disposals                                                 (7,737,076)        (262,084)               -      (7,999,160)
Transfers                                                           24,786,917     (23,276,980)     (1,509,937)                -
Capitalised expenditure                                                840,436       15,407,910       1,658,809       17,907,155
Capitalised interest on general borrowings                  28               -          447,749         121,549          569,298
Transfer to investment property held for sale               23     (2,180,000)        (115,378)               -      (2,295,378)
Fair value adjustment                                       10      19,437,659       17,325,537               -       36,763,196
Foreign currency translation difference                            (4,992,612)      (1,875,212)     (2,520,115)      (9,387,939)
Closing balance                                                    494,519,173       30,081,795      39,690,960      564,291,928

ACQUISITIONS

On 3 May 2018 the group acquired the entire issued share capital of New Uberior House Limited, which owns two adjoining
commercial buildings known as Princes Exchange and New Uberior House in Edinburgh, United Kingdom. The acquisition
price was EUR80,123,500 but the group paid EUR79,650,439 as the group retained EUR473,061, which will be released to the
vendor conditional upon future rent reviews, refer to note 30. The fair value of the net assets acquired at acquisition were:
Investment property EUR80,123,500; trade and other receivables EUR141,030; cash and cash equivalents EUR1,502,600; and trade
payables EUR2,223,955. The acquisition was not accounted for as a business combination as the group did not acquire the
strategic management of New Uberior House Limited.

INTEREST-BEARING BORROWINGS

Bank borrowings of EUR242,713,107 (2017: EUR147,213,397) are secured against investment property, refer to note 28. The group
has designated bank borrowings drawn down in the period of EUR104,067,925 as general borrowings (2017: EUR111,657,786).
During the reporting period interest costs on general borrowings of EUR570,385 (2017: EUR569,298), refer to note 28, have been
capitalised and are included within land bank and inventory property, refer to note 18.

CAPITAL COMMITMENTS

The group has capital commitments of EUR64,866,015 (2017: EUR78,840,105) in respect of capital expenditures contracted for at
the reporting date, refer to note 39. In addition, EUR118,800,000 has been committed for the purchase of investment property
after the reporting date, refer to note 39.

RELATED PARTIES

The group has a development management arrangement with New Waverley Advisers, a related party, for the development
and construction of the New Waverley site in Edinburgh. A cumulative development management fee of EUR4,701,505 (2017:
EUR4,052,171) and priority participating dividend of EUR6,912,756 (2017: EUR6,078,256) have been recognised in relation to the New
Waverley development, refer to note 30.

MEASUREMENT OF FAIR VALUES

VALUATION PROCESS FOR LEVEL 3 INVESTMENT PROPERTY

On an annual basis the fair value of investment property is determined, where applicable, by external independent property
valuation experts or, where relevant, firm offers from market participants. External valuers have appropriate recognised
professional qualifications and recent experience in the location and category of the property being valued. For details of
the respective valuers used refer to company information and advisors.

For all investment properties their current use equates to the highest and best use. The external valuations received are
initially reviewed by the relevant internal asset manager and compared to the expectation of what fair value would be for
individual investment properties. If the asset manager agrees with the valuation, the valuation reports are then checked by
the finance team to confirm their numerical and methodological accuracy. The reports are then passed to the Portfolio
Management Committee and Investment Committee for approval. Lastly, the investment property valuations are reviewed
by the Audit and Risk Committee prior to the finalisation of the financial statements.

FAIR VALUE HIERARCHY

The fair value measurement of all of the group's investment properties has been categorised as level 3 in the fair value
hierarchy based upon the significant unobservable inputs into the valuation technique used.

As at 30 June 2018                                                                             Fair value
Euro                                                   Carrying amount             Level 1            Level 2            Level 3

Income-generating property                                 546,238,139                   -                  -        546,238,139
Land bank                                                   32,974,206                   -                  -         32,974,206
                                                           579,212,345                   -                  -        579,212,345
As at 30 June 2017                                                                             Fair value
Euro                                                   Carrying amount             Level 1            Level 2            Level 3

Income-generating property                                 494,519,173                   -                  -        494,519,173
Development property                                        26,413,036                   -                  -         26,413,036
                                                           520,932,209                   -                  -        520,932,209

VALUATION TECHNIQUE AND SIGNIFICANT UNOBSERVABLE INPUTS

The following table shows the valuation technique used in measuring the fair value of investment property, as well as the
significant unobservable inputs used.

As at 30 June 2018

Investment                                                                                         Inter-relationship between
property                                                           Significant                     key unobservable inputs and
type              Valuation technique                              unobservable inputs             fair value measurement

Income-           Discounted cash flows:                           -Risk adjusted discount rates   The estimated fair value would
generating        The valuation model considers the present        -Estimated rental value         increase/(decrease) if:
property          value of net cash flows to be generated          -Net rental growth              -Expected market rental
                  from the property, taking into account           -Reversionary discount rate      growth was higher/ (lower)
                  expected rental growth rates, void periods,                                      -The estimated rental value
                  occupancy rates, lease incentive costs such                                       was higher/(lower)
                  as rent-free periods and other costs not                                         -The reversionary discount rate
                  paid by tenants. The expected net cash                                            was lower/(higher)
                  flows are discounted using risk-adjusted                                         -The risk adjusted discount
                  discount rates. Among other factors, the                                          rate was lower/(higher)
                  discount rate estimation considers the
                  quality of a building and its location, tenant
                  credit quality and lease terms.

                  Purchase price:                                  -Purchase price                  The estimated fair value would
                  The valuation model takes into account the                                        increase/(decrease) if:
                  recent acquisition price no earlier than                                         -The number of the interested
                  three months before the reporting date,                                           parties was higher/(lower)
                  equivalent to the amount a third party                                            and/or,
                  would be willing to pay.                                                         -the availability of comparable
                                                                                                    properties was lower/(higher),
                                                                                                    thus altering the acquisition
                                                                                                    price

Land bank         Firm offers less costs to complete:              -Firm offer                      The estimated fair value would
                  Fair value is based on the amount a third        -Cost to complete                increase/(decrease) if:
                  party is willing to pay less any costs to                                        -The number of the interested
                  complete.                                                                         parties was higher/(lower)
                                                                                                    and/or
                                                                                                   -the availability of comparable
                                                                                                    properties was lower/(higher),
                                                                                                    thus altering the offer price
                                                                                                   -The budgeted costs to
                                                                                                    complete was lower/(higher)

                  Residual value method:                           -Cost to complete                The estimated fair value would
                  The valuation model considers the gross          -Residential unit prices         increase/(decrease) if:
                  development value of the property based          -Valuation yield                -The budgeted cost to
                  on an independent view of market values          -Funding yield                   complete was lower/(higher)
                  for the completed development less any                                            and/or
                  costs to complete.                                                               -the residential unit prices was
                                                                                                    higher/(lower),

As at 30 June 2017

Investment                                                                                      Inter-relationship between
property                                                       Significant                      key unobservable inputs and
type          Valuation technique                              unobservable inputs              fair value measurement

Income-       Discounted cash flows:                           -Risk adjusted discount rates    The estimated fair value would
generating    The valuation model considers the present        -Estimated rental value          increase/(decrease) if:
property      value of net cash flows to be generated          -Net rental growth               -Expected market rental
              from the property, taking into account           -Reversionary discount rate       growth was higher/ (lower)
              expected rental growth rates, void periods,                                       -The estimated rental value
              occupancy rates, lease incentive costs such                                        was higher/(lower)
              as rent-free periods and other costs not                                          -The reversionary discount rate
              paid by tenants. The expected net cash                                             was lower/(higher)
              flows are discounted using risk-adjusted                                          -The risk adjusted discount
              discount rates. Among other factors, the                                           rate was lower/(higher)
              discount rate estimation considers the
              quality of a building and its location, tenant
              credit quality and lease terms.

              Capitalisation rate:                             -Capitalisation rate             The estimated fair value would
              The valuation model considers the value of       -Market rent                     increase/(decrease) if:
              the property based on actual location, size                                       -the capitalisation rate was
              and quality of the properties taking into                                          lower/(higher)
              account market data and the capitalisation                                        -the passing rent was higher/
              rate of future income streams at the                                               (lower)
              valuation date.                                                                   -the market rent was higher/
                                                                                                 (lower)

Development Firm offers:                                       -Firm offer                       The estimated fair value would
property    The valuation model takes into account the                                           increase/(decrease) if:
            amount a third party is willing to pay.                                             -The number of the interested
                                                                                                 parties was higher/(lower)
                                                                                                 and or, the availability of
                                                                                                 comparable properties lower/
                                                                                                 (higher), thus altering the
                                                                                                 offer price

FAIR VALUE SENSITIVITY ANALYSIS

As at 30 June 2018
INCOME-GENERATING PROPERTY
                                                                                             Significant unobservable inputs
                                             Discount rate                       Net rental growth                 Reversionary discount rate             Estimated rental value
                                                     Sensitivity                            Sensitivity                            Sensitivity                        Sensitivity
Technique            Valuation            Input                               Input      Change         Valuation     Input       Change      Valuation       Input p.a. Change       Valuation
                                                   0.5% EUR441,185,461                     2.5%    EUR499,013,575                   0.5%  EUR449,480,278                    10%  EUR492,645,582
DCF             EUR466,114,639     4.50%-11.75%                               1%-2%                             5.25%-9.50%                                EUR34,178,897
                                                  -0.5% EUR489,817,223                    -2.5%    EUR442,139,843                  -0.5%  EUR519,673,413                   -10%  EUR437,771,688
                                              Purchase price
                                                       Sensitivity
Technique            Valuation          Input       Change       Valuation
Purchase                                                     EUR84,129,674
                 EUR80,123,499  EUR80,123,499           5%
price                                                        EUR76,117,324
                EUR546,238,139

LAND BANK
                                                 Firm offer                       Costs to complete
                                                        Sensitivity                          Sensitivity
Technique           Valuation              Input     Change       Valuation            Input  Change        Valuation
Firm offers
less costs to   EUR32,974,206      EUR38,094,775         5%   EUR34,878,944   (EUR5,120,569)      5%    EUR32,718,177
complete                                                -5%   EUR31,069,467                      -5%    EUR33,230,234

As at 30 June 2017
INCOME-GENERATING PROPERTY
                                                                                              Significant unobservable inputs
                                              Discount rate                       Net rental growth                 Reversionary discount rate                       Estimated Rental Value
                                                       Sensitivity                           Sensitivity                          Sensitivity                                       Sensitivity
Technique            Valuation         Input %    Change           Valuation      Input %       Change            Valuation     Input %   Change       Valuation     Input p.a   Change       Valuation
                                                   0.50%       EUR405,583,114                    2.50%        EUR433,652,067               0.50%   EUR394,024,086                10.00%  EUR444,161,124
DCF(1)          EUR417,844,894    4.75%-12.00%                                  1.%-6.75%                                    4.42%-9%                               31,461,564
                                                  -0.50%       EUR444,334,644                   -2.50%        EUR414,046,319              -0.50%   EUR418,742,092               -10.00%  EUR401,386,474
                                           Capitalisation rate
                                                       Sensitivity
Technique              Valuation          Input %   Change           Valuation
Capitalisation                                      0.50%        EUR66,628,548
                   EUR76,674,279      4.25%-7.00%
rate                                               -0.50%        EUR83,572,828
                  EUR494,519,173

DEVELOPMENT PROPERTY
                                             Market offer
                                                    Sensitivity
Technique              Valuation             Input Change          Valuation
Market                                                 5%      EUR27,733,687
                   EUR26,413,036     EUR26,413,036
­transaction                                           -5%      EUR25,092,384

(1) DCF less costs to complete.

18. INVENTORY PROPERTY

ACCOUNTING POLICY

Inventory property is measured at the lower of cost and net realisable value.
 
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs to make the sale. The cost of inventory comprises all costs of purchase, costs of
conversion and other costs incurred in bringing the inventory to its present location and condition.

DISCLOSURE
                                                                                                         As at             As at
Euro                                                                                   Note       30 June 2018      30 June 2017

Opening balance                                                                                              -                 -
Development expenditure                                                                             21,918,133                 -
Disposals (recognised in cost of sales of inventory property)                             6       (21,704,016)                 -
Transfer from investment property                                                        17          1,078,030                 -
General borrowings capitalised                                                           28              1,354                 -
Closing balance                                                                                      1,293,501                 -

On 13 July 2017 the group entered into a lease with the UK Government ("the Pre-let Agreement") for the office component
of the New Waverley development in Edinburgh, Scotland ("the Pre-let Office"). The Pre-let Agreement encompasses a lease
with a UK Government guarantee, for a term of 25 years commencing upon practical completion of the development.
Under the terms of the Pre-let Agreement, the group is obligated to pay GBP21,593,520 (approx. EUR24,368,287) for the office
fit-out when the UK Government takes occupation of the Pre-let Office. This is referred to as the capital contribution to the

UK Government in relation to the office fit-out ("capital contribution"). The group is also committed to granting the UK
Government a rent-free period of 7 months.

On 17 October 2017, the group entered into an agreement to dispose of the office land at New Waverley to Legal &
General ("Disposal of Land") and to develop the Pre-let Office on a forward-sold basis for Legal & General ("the Forward
Funding Agreement"). In terms of the Forward Funding Agreement, the group has sold the rights and obligations of the
Pre-let Agreement to Legal & General. Therefore, Legal & General has acquired the land, the Pre-let Agreement and the
obligations for the rent-free period and the capital commitment from MAS and appointed MAS to develop the Pre-let Office
under the Forward Funding Agreement. The Forward Funding Agreement provides for funds to be drawn down by the
group, as developer, from Legal & General against development costs incurred. The group received GBP20,841,671
(EUR23,490,647) for the sale of the office land.

The amounts relating to the rent-free period and the capital contribution are included in the development costs and are
funded by Legal & General under the Forward Funding Agreement subject to there being sufficient developer profits.

Accordingly, the group has recognised:
- a financial liability of EUR24,507,316 due to the UK Government in respect of the capital contribution, refer to note 30; and
  a financial asset of EUR24,507,316 due from Legal & General in respect of the capital contribution, refer to note 29. The
  financial liability and financial asset have not been offset because the offsetting criteria in IAS 32 - Financial Instruments:
  Presentation, have not been met.
- a financial liability due to Legal & General in respect of the reimbursement of a pre-negotiated lease incentive, payable to the
  purchaser; and financial asset due from Legal & General in respect of the reimbursement. The financial liability and a financial
  asset have been offset because the offsetting criteria in 'IAS 32 - Financial Instruments: Presentation' have been met. The
  group expects to settle these financial instruments on a net basis under the terms of the Forward Funding Agreement.

The financial assets and financial liabilities referred to above have been discounted at a market related interest rate as they
are only due upon practical completion. This has resulted in the recognition of finance income and finance expense as the
amortisation of the capital contribution on financial assets and financial liabilities respectively, refer to note 14.

Although the Forward Funding Agreement is not a typical construction contract, the legal terms are such that the
development project undertaken by the group on behalf of Legal & General represents a continuous transfer of work in
progress to Legal & General. Accordingly, this aspect of the accounting for the Forward Funding Agreement has been
determined by applying IAS 11 by analogy even though the contract is not part of the normal operations of the group.
Income is recognised based on the stage of completion. The stage of completion is determined based on the proportion
that costs incurred to date bear to the estimated total costs of the transaction. Development expenditure incurred in
respect of inventory property is recognised in profit or loss and classified as cost of sales of inventory property.

Included in the development costs in the Forward Funding Agreement is the land and buildings transaction tax ("LBTT")
on the office land sale. The group is obliged to settle these costs with Legal & General on practical completion and may use
the funding provided by Legal & General to do so, subject to there being sufficient developer profits. The financial liabilities
due to Legal & General in respect of the LBTT have been offset by the financial asset due from Legal & General in respect of
the funding available under the Forward Funding Agreement. The group expects to settle these financial instruments on a
net basis under the terms of the Forward Funding Agreement.

19. FINANCIAL INVESTMENTS

ACCOUNTING POLICY

Refer to note 4 for the group's general accounting policy for financial instruments.

DISCLOSURE

Financial investments have been classified as fair value through profit or loss under IFRS 9. Accordingly, they are measured
at fair value at the reporting date with changes in fair value recognised in profit or loss.

                                                                                                As at 30 June 2018
                                                                                  Share price         Number of       Fair value
Financial investment                                                                   (Euro)            shares           (Euro)

Eurocommercial Properties NV                                                            36.36           497,333       18,083,028
Unibail - Rodamco Westfield SE                                                         188.55           264,618       49,893,724
British Land Company PLC                                                                 7.60         1,625,000       12,350,045
Covivio SA                                                                              89.10           150,300       13,391,730
Hufvudstaden AB                                                                         12.28         1,083,000       13,295,975
Klepierre SA                                                                            32.25         1,626,364       52,450,239
Land Securities Group PLC                                                               10.82         1,115,000       12,063,076
Mercialys SA                                                                            14.91           772,934       11,524,446
                                                                                                                     183,052,263
There were no financial investments held as at 30 June 2017.

On 21 November 2017 the group invested in a portfolio of listed real estate equity securities in order to generate a return
on euro deposits awaiting investment into new acquisition opportunities and avoid negative interest on euro cash deposits.

RECONCILIATION OF FINANCIAL INVESTMENTS AT FAIR VALUE

As at 30 June 2018

                                                                                                           As at           As at
Euro                                                                                    Note        30 June 2018    30 June 2017

Opening balance                                                                                                -      51,614,068
Purchases                                                                                            199,557,215               -
Disposal                                                                                                       -    (47,045,042)
Fair value adjustment                                                                       10      (16,504,952)     (4,569,026)
Closing balance                                                                                      183,052,263               -

During the year dividend income of EUR8,423,423 (2017: EURnil) was received and EUR8,423,423 (2017: EURnil) was recognised as
other income, refer to note 11.

 The financial instrument and fair value disclosures are in notes 33 and 34.

FAIR VALUE HIERARCHY

The following table shows the carrying amount and fair value of the group's investments in the fair value hierarchy:

As at 30 June 2018
                                                                                                    Fair value
Euro                                                     Carrying amount        Level 1                Level 2           Level 3

Listed real estate equity securities                         183,052,263    183,052,263                      -                 -
                                                             183,052,263    183,052,263                      -                 -

20. INVESTMENT IN EQUITY ACCOUNTED INVESTEES

ACCOUNTING POLICY

Equity accounted investees comprise investments in associates. Associates are entities in which the group has significant
influence, which is the power to participate in the financial and operating policy decisions of the investee but does not
result in control or joint control of those entities.

Interests in associates are initially recognised at cost including transaction costs. Subsequently, they are accounted for
using the equity method. The group recognises its share of profit or loss and other comprehensive income of the associate
from the date on which significant influence commences, until the date on which significant influence ceases.

The group's share of interest charge by the group to the associate and capitalised against qualifying assets that are not
subsequently measured at fair value in the equity accounted investee is deducted from its share of earnings in the equity
accounted investee.

Unrealised losses on transactions are eliminated in the same way as unrealised gains, but only to the extent that there is
no evidence of impairment.

When the group's share of losses exceeds its interest in an equity accounted investee, the carrying amount of the
investment, including any long-term interests that form part thereof, is reduced to zero, and the recognition of further
losses is discontinued except to the extent that the group has an obligation or has made payments on behalf of the
investee.

Interests in associates are assessed for impairment if there is an impairment indicator. An impairment loss in respect of
an equity accounted investee is measured by comparing the recoverable amount of the investment with its carrying
amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in the
estimates used to determine the recoverable amount.

DISCLOSURE

                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

PKM Developments                                                                                     23,774,222       20,205,297

RECONCILIATION OF INVESTMENTS IN EQUITY ACCOUNTED INVESTEES

                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

Opening balance                                                                                      20,205,297       19,991,716
Share of profit, net of tax                                                                           3,568,925          178,397
                                                                                                     23,774,222       20,170,113
Capitalised acquisition costs                                                                                 -           35,184
Closing balance                                                                                      23,774,222       20,205,297

The group has an investment in PKM Developments Limited, a development property group which develops investment
property predominately in Romania and other central and eastern European countries. PKM Developments is an associate
of the group, MAS owns 40% of the ordinary shares and therefore has significant influence over the entity. The remaining
60% of the ordinary shares of PKM Developments are owned by Prime Kapital, who acts as the developer.

In addition to the investment in the ordinary shares, and the investment in PKM Developments 7.5% preference shares,
the group intends to fund up to a further EUR250,000,000 over 3 years through the investment in additional 7.5% preference
shares to be issued by PKM Developments, refer to note 39. The preference shares issued by PKM Developments are not
considered to be part of the long-term interest that the group has in PKM Developments.

The following table summarises the financial information of PKM Developments as included in its own financial
statements:

                                                                                                           As at           As at
Euro                                                                                                30 June 2018    30 June 2017

Statement of financial position - PKM Developments
Non-current assets                                                                                   138,511,061      48,139,879
Current assets                                                                                        41,864,316     105,905,277
Total assets                                                                                         180,375,377     154,045,156

Non-current liabilities                                                                              109,468,016     101,134,247
Current liabilities                                                                                    9,311,602       2,544,687
Total liabilities                                                                                    118,779,618     103,678,934
Net assets                                                                                            61,595,759      50,366,222

Percentage ownership interest                                                                                40%             40%
Un-adjusted group share of net assets                                                                 24,638,304      20,146,489

Elimination of preference share interest capitalised on qualifying assets carried at cost              (922,890)               -
Net assets attributable to the group                                                                  23,715,414      20,146,489

Capitalised costs                                                                                         58,808          58,808
Carrying amount                                                                                       23,774,222      20,205,297

                                                                                                      Year ended      Year ended
Euro                                                                                                30 June 2018    30 June 2017

Statement of profit or loss and other comprehensive income - PKM Developments
Revenue                                                                                                2,258,220           2,009
Fair value adjustments                                                                                16,372,691               -
Other income                                                                                               2,128         284,363
Corporate expenses                                                                                     (719,216)       (131,992)
Investment expenses                                                                                  (2,601,061)         (1,235)
Finance income                                                                                           144,260         190,867
Finance costs                                                                                           (36,808)        (13,739)
Translation differences                                                                                 (31,399)         115,719
Tax expense                                                                                          (4,159,274)               -
Total profit                                                                                          11,229,541         445,992

Percentage ownership interest                                                                                40%             40%
Total profit and other comprehensive income attributable to the group                                  4,491,816         178,397

Elimination of preference share interest capitalised on qualifying assets carried at cost               (922,891)              -
Group's share of profit                                                                                 3,568,925        178,397

PKM Developments has no other comprehensive income.

21. TRADE AND OTHER RECEIVABLES

ACCOUNTING POLICY

The group's trade and other receivables include financial instruments and non-financial instruments. The financial
instruments are classified as financial assets at amortised cost. Refer to note 4 for the group's general accounting policy for
financial instruments. The non-financial instruments include prepayments and VAT.

DISCLOSURE
                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

Receivable from sale of inventory property                                                            8,470,911                -
Receivables from lessees                                                                              4,384,629        4,964,146
VAT receivable                                                                                        1,141,499          947,766
Prepayments                                                                                           1,009,668          854,941
Other                                                                                                   799,070          940,235
Dividends receivable                                                                                    322,240                -
Property retentions held in escrow                                                                       20,316          500,000
Collateral receivable                                                                                         -          499,947
                                                                                                     16,148,333        8,707,035

The receivable from sale of inventory property relates to the New Waverley development and comprises EUR4,132,645 relating
to development costs receivable under the Forward Funding Agreement, which has been paid post year end, and
EUR4,338,266 relating to profit receivable under the Forward Funding Agreement, which will be paid on completion of the
development, refer to note 18.

The financial instrument and fair value disclosures are in notes 33 and 34.

22. CASH AND CASH EQUIVALENTS

ACCOUNTING POLICY

The group's cash and cash equivalents are financial instruments and are classified as financial assets at amortised cost.
Refer to note 4 for the group's general accounting policy for financial instruments

DISCLOSURE
                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

Bank balances                                                                                       147,825,624       33,017,502

The financial instrument and fair value disclosures are in notes 33 and 34.

RECONCILIATION OF CASH GENERATED FROM OPERATING ACTIVITIES:

                                                                                                     Year ended       Year ended
Euro                                                                                     Note      30 June 2018     30 June 2017
 
Profit for the year                                                                                  19,333,422       34,576,011

Adjustments for:
Depreciation                                                                               12           100,026           27,864
Share-based payment expense                                                                             805,766          245,419
Fair value adjustments                                                                     10        15,800,127     (25,592,290)
Exchange differences                                                                       13         1,020,787        4,684,895
Finance income                                                                             14       (7,975,558)      (1,207,196)
Finance costs                                                                              14         5,560,344        2,238,497
Share of profit from equity accounted investees                                            20       (3,568,925)        (178,397)
Goodwill impairment                                                                        16         1,274,346                -
Tax expense                                                                                15         6,867,387        5,683,602
Profit on sales of inventory property                                                       6       (4,316,924)                -

Cash generated from operating activities                                                             34,900,798       20,478,405

23.INVESTMENT PROPERTY HELD FOR SALE

ACCOUNTING POLICY

Investment property is classified as held for sale if it is highly probable that the carrying value of the property will be
recovered primarily through its sale rather than through continuing use, and the following criteria are met:
- Management has intent and a plan to sell;
- The asset is available for immediate sale and an active programme to locate a buyer is initiated;
- The sale is highly probable, within 12 months of classification as held for sale;
- The asset is being actively marketed for a reasonable sale price in relation to its fair value; and
- Actions required to complete the plan indicate that it is unlikely that the plan will be significantly changed or withdrawn.

The measurement requirements of IFRS 5 - 'Non-current Assets Held for Sale and Discontinued Operations', do not apply
to investment property, as such investment property continues to be measured at fair value once transferred to investment
property held for sale, in accordance with group's accounting policy for investment property.

DISCLOSURE
                                                                                                          As at            As at
                                                                                                   30 June 2018     30 June 2017

United Kingdom
-  Hotel                                                                                             42,528,044        1,137,200
-  Retail                                                                                                     -        3,019,715
-  Land bank                                                                                         11,060,400                -
                                                                                                     53,588,444        4,156,915
Germany
-  Retail                                                                                                     -        2,180,000

                                                                                                     53,588,444        6,336,915
RECONCILIATION OF THE GROUP'S INVESTMENT PROPERTY HELD FOR SALE:

                                                                                                          As at            As at
Euro                                                                                     Note      30 June 2018     30 June 2017

Opening balance                                                                                       6,336,915        3,515,237
Transfer from investment property                                                          17        51,328,757        2,295,378
Disposals                                                                                           (7,353,427)                -
Capitalised expenditure                                                                               1,149,597                -
Retention release                                                                                     (275,000)                -
Fair value adjustment                                                                      10         2,766,206          786,795
Foreign currency translation difference                                                               (364,604)        (260,495)
Closing balance                                                                                      53,588,444        6,336,915

MEASUREMENT OF FAIR VALUES

FAIR VALUE HIERARCHY

The fair value measurement of all the group's investment property held for sale has been categorised as level 3 in the fair
value hierarchy based upon the significant unobservable inputs into the valuation technique used.

VALUATION TECHNIQUE AND SIGNIFICANT UNOBSERVABLE INPUTS

The table in note 17 shows the valuation techniques used in measuring the fair value of investment property and investment
property held for sale, as well as the significant unobservable inputs used.

24.SHARE CAPITAL AND GEARED SHARE PURCHASE PLAN SHARES (TREASURY SHARES)

ACCOUNTING POLICY
ORDINARY SHARES
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised
as a deduction from equity.

The group's policy is to maintain a strong capital base to allow sustainable growth in the development of the group.

GEARED SHARE PURCHASE PLAN SHARES (TREASURY SHARES)

Geared purchase plan shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax effects. When geared share purchase plan shares are sold or
issued subsequently, the amount received is recognised as an increase in equity and the resulting surplus or deficit on the
transaction is recognised within share capital.

DISCLOSURE

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

                                                                           Geared share
                                                                       purchase plan shares
                                           Share capital                 (treasury shares)                   Total
                                        Number of                       Number of                        Number of
                                           Shares           Euro           shares           Euro            Shares          Euro

Balance at 30 June 2016               348,625,219    378,530,556                -              -       348,625,219   378,530,556
Issued during the period                                                                                                       
-  Issue of share capital             108,974,358    157,984,909                -              -       108,974,358   157,984,909
   
-  Geared share purchase              12,850,000     21,056,010     (12,850,000)   (21,056,010)                 -             -
   plan shares
-  Distributions reinvested             9,766,722     13,251,523                -              -         9,766,722    13,251,523
                                      480,216,299    570,822,998     (12,850,000)   (21,056,010)       467,366,299   549,766,988
Distributed during the year                                                                       
-  Scrip distributions                          -   (13,266,725)                -              -                 -  (13,266,725)
 Balance at 30 June 2017              480,216,299    557,556,273     (12,850,000)   (21,056,010)       467,366,299   536,500,263
Issued during the period
-  Issue of share capital             160,299,409    279,917,834                -              -       160,299,409   279,917,834
-  Distributions reinvested             9,828,090     15,918,376                -              -         9,828,090    15,918,376
-  Shares forfeited and               (5,000,000)    (8,193,000)        5,000,000      8,193,000                 -             -
   cancelled
                                      645,343,798    845,199,483      (7,850,000)   (12,863,010)       637,493,798   832,336,473
Distributed during the year
-  Scrip distributions                          -   (15,949,084)                -              -                 -  (15,949,084)
Balance at 30 June 2018               645,343,798    829,250,399      (7,850,000)   (12,863,010)       637,493,798   816,387,389

On 28 September 2017 the group issued 77,541,988 shares at an issue price of EUR1.63 (ZAR25.50) as part of an accelerated
book build, raising cash of EUR125,926,058. On 6 December 2017 a further 82,757,421 shares were issued by the group at an
issue price of EUR1.90 (ZAR31.00) as part of a further accelerated book build, raising cash of EUR154,764,328. The group incurred
expenses of EUR772,552 in relation to shares issued during the period, which were offset against share
capital.

In the prior year on 29 July 2016 the group issued 25,641,026 shares at an issue price of EUR1.24 (ZAR19.50) as part of an
accelerated book build, raising cash of EUR31,781,847. On 30 March 2017 a further 83,333,332 shares were issued by the group
at an issue price of EUR1.53 (ZAR21.00) as part of a further accelerated book build, raising cash of EUR127,145,970. The group
incurred expenses of EUR942,908 in relation to shares issued during the period, which were offset against share capital.

24.SHARE CAPITAL AND GEARED SHARE PURCHASE PLAN SHARES (TREASURY SHARES)

GEARED SHARE PURCHASE PLAN SHARES

                                                                                                           As at           As at
                                                                                                    30 June 2018    30 June 2017

Opening balance                                                                                       12,850,000               -
Geared share purchase plan shares issued                                                                       -      12,850,000
Geared share purchase plan shares forfeited                                                          (5,000,000)               -
Closing balance                                                                                        7,850,000      12,850,000

On 15 June 2017 it was announced that Lukas Nakos, the former CEO, would be leaving the group. Lukas Nakos ceased to
be a director on 31 December 2017, with a condition of his departure being his exit from the geared share purchase plan
with no vesting of shares occurring, refer to note 32 for cancelled shares. On 24 April 2018, the group cancelled all of Lukas
Nakos' 5,000,000 shares in relation to the geared share purchase plan. The shares were forfeited and cancelled in
accordance with the terms of the rules of the MAS share purchase scheme.

Refer to note 36 for further information on the lump sum amount paid to Lukas Nakos.

Distributions on the geared share purchase plan shares are referred to in note 32.

DISTRIBUTIONS

The holders of the company's shares are entitled to distributions as declared and to one vote per share at general meetings
of the company. Distributions of the company can be paid from retained earnings and share capital in accordance with the
BVI Business Companies Act 2004.

The following distributions were paid by the group:

Year ended 30 June 2018
                                                                                                                    Distribution
                                                                                                                       per share
Euro                                                            Scrip                Cash              Total        (euro cents)

11 November 2017                                           10,424,724           6,957,823         17,382,547                3.19
6 April 2018                                                5,524,360          17,169,809         22,694,169                3.58

Year ended 30 June 2017
                                                                                                                   Distribution
                                                                                                                      per share
Euro                                                           Scrip                Cash              Total        (euro cents)

2 November 2016                                            7,994,090             352,016          8,346,106                2.23
30 March 2017                                              5,272,635           4,850,901         10,123,536                2.66

The directors are pleased to propose a final distribution to shareholders of 4.03 euro cents per share (2017: 3.19 euro cents
per share).

25. SHARE-BASED PAYMENT RESERVE

ACCOUNTING POLICY

Refer to note 32 for the accounting policy for share-based payment arrangements.

DISCLOSURE

Reconciliation of geared share purchase plan:

                                                                                                           As at           As at
Euro                                                                                                30 June 2018    30 June 2017

Opening balance                                                                                          225,973               -
Recognised during the year                                                                               902,386         319,248
Non-forfeitable distribution                                                                            (96,620)        (93,275)
                                                                                                         805,766         225,973
Closing balance                                                                                        1,031,739         225,973

SHARE BASED PAYMENT ARRANGEMENTS

The remaining term of the loans at 30 June 2018 was 8.69 years (2017: 9.69 years).

Refer to note 36 for further disclosures of the share-based payment expense included in key management
compensation and directors' remuneration.

26. FOREIGN CURRENCY TRANSLATION RESERVE

ACCOUNTING POLICY

Refer to note 13 for the accounting policy for foreign currency translation reserve.

DISCLOSURE

The group recognised a foreign currency translation loss of EUR1,207,816 (2017: EUR5,371,692 loss) resulting in a foreign currency
translation deficit at the reporting date of EUR11,768,119 (2017: EUR10,560,303 deficit).

27. NON-CONTROLLING INTEREST

ACCOUNTING POLICY

The group recognises the non-controlling interests in the net assets of consolidated subsidiaries separately from the group's
interest, within equity. Profits or losses of subsidiaries attributable to non-controlling interests are allocated to the non-
controlling interest even if this results in a debit balance being recognised for the non-controlling interest.

DISCLOSURE

                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

Opening balance                                                                                          988,063               -
Share of profit for the year                                                                           2,477,116         988,063
Distribution to NCI                                                                                    (937,977)               -
Closing balance                                                                                        2,527,202         988,063

The non-controlling interest relates to the participation by Prime Kapital in the co-investment venture entered into with the
group.  This co-investment arrangement is focused on investing in income-generating properties in CEE. Under the terms of
the co-investment agreement, Prime Kapital's effective economic interest is equivalent to a 20% direct participation in the
co-investment venture, less the interest cost on the participation funding that is provided by MAS. The effective interest on
this participation funding is equivalent to the weighted average cost of external funding achieved by the co-investment
venture.

During the period, Prime Kapital received a dividend of EUR937,977 (2017: EURnil) in relation to its participation in the
co-investment venture.

28. INTEREST-BEARING BORROWINGS

ACCOUNTING POLICY

The group's interest-bearing borrowings are financial instruments and are classified as financial liabilities at amortised cost.
Refer to note 4 for the group's general accounting policy for financial instruments.

DISCLOSURE
The carrying amount of the group's interest-bearing borrowings was as follows:
                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

Non-current
UK                                                                                                   50,650,037       30,284,516
German                                                                                              108,187,711      103,478,073
Swiss                                                                                                 7,211,257        7,989,364
CEE                                                                                                  48,358,450               -
                                                                                                    214,407,455      141,751,953
Current
UK                                                                                                   23,272,484        1,489,732
German                                                                                                2,707,840        3,614,901
Swiss                                                                                                   337,116          356,811
CEE                                                                                                   1,988,212                -
                                                                                                     28,305,652        5,461,444

                                                                                                    242,713,107      147,213,397

The carrying value of interest-bearing borrowings approximates the fair value.
 
Included within current UK interest-bearing borrowing is EUR22,225,094 of debt which is associated with investment
property classified as held for sale.

RECONCILIATION OF THE GROUP'S CARRYING AMOUNT OF INTEREST-BEARING BORROWINGS:
                                                                                                         As at             As at
Euro                                                                                              30 June 2018      30 June 2017

Opening balance                                                                                     147,213,397       44,578,595
Changes from financing cash flows                                                                    90,850,997       99,919,704
 Proceeds from interest-bearing borrowings                                                          104,067,925      111,657,786
 Transaction costs related to interest-bearing borrowings                                           (1,431,560)      (2,168,837)
 Repayment of interest-bearing borrowings                                                           (7,350,266)      (7,098,329)
 Interest paid                                                                                      (4,435,102)      (2,470,916)
Finance costs                                                                                         5,341,556        2,800,965
 Finance costs - expense                                                                              4,771,171        2,231,667
 Finance costs - general borrowings capitalised                                                         570,385          569,298
Foreign currency translation difference                                                               (692,843)         (85,867)
Closing balance                                                                                     242,713,107      147,213,397

Interest from general borrowings of EUR570,385 (2017: EUR569,298) was capitalised during the year at a capitalisation rate of
2.60% (2017: 2.65%).

The financial instrument and fair value disclosures are in notes 33 and 34.

FIXED AND VARIABLE DEBT

The group is subject to both fixed and variable interest rates on its interest-bearing borrowings:
                                                                                                        As at              As at
Euro                                                                                             30 June 2018       30 June 2017

Fixed/hedged debt                                                                                 199,289,452        112,857,253
Floating rate debt                                                                                 43,423,655         34,356,144
                                                                                                  242,713,107        147,213,397
SUMMARY OF INTEREST BEARING BORROWING TERMS AND COVENANTS

As at 30 June 2018

BORROWING TERMS
                                                                         Weighted
                                                                          average                   Weighted
                                                                   remaining term           average interest      Significant terms
Jurisdiction                                Currency                      of debt                       rate      and conditions
UK
-  Floating/hedged debt                          GBP                   3.44 years              1.70% + 3M UK
                                                                                                    Libor(1)     - All loans were utilised to
                                                                                                                   purchase properties or to
German
                                                                                                                   invest in shares of
-  Fixed debt                                    EUR                   7.09 years                      1.87%
                                                                                                                   property owning entities
                                                                                                                 - Some loans have
Swiss
                                                                                                                   covenants as reported
-  Hedged debt                                   CHF                   7.00 years  1.29% + 3M Swiss Libor(1)       below
                                                                                                                   
                                                                                                  
                                                                                                                 - All loans are secured
CEE                                                                                                                against specific properties
-  Hedged debt                                   EUR                   6.58 years    2.50%+12M Euro Libor(1)
                                                                                                
(1) The group has entered into interest rate swaps to hedge some of the group's exposure to the applicable Libor, refer to note 29 and 30 for
    further information.

As at 30 June 2017

BORROWING TERMS
                                                                         Weighted
                                                                          average           Weighted
                                                                   remaining term   average interest       Significant terms
Jurisdiction                                   Currency                   of debt               rate       and conditions
UK
-  Floating debt                                 GBP                   3.83 years      2.00% + 3M UK       - All loans were utilised to
                                                                                            Libor(2)         purchase properties or to
German                                                                                                       invest in shares of
-  Fixed debt                                    EUR                   8.24 years              1.38%         property owning entities
                                                                                                           - Some loans have
-  Hedged debt                                   EUR                  12.26 years    0.95% + 3M Euro         covenants as reported
                                                                                            Libor(2)         below
Swiss                                                                                                      - All loans are secured
-  Hedged debt                                   CHF                   8.01 years   1.29% + 3M Swiss         against specific properties
                                                                                            Libor(2)

(2) The group has entered into interest rate swaps to hedge some of the group's exposure to the applicable Libor, refer to note 29 and 30 for
    further information.

COVENANTS

The group was compliant with its loan covenants during the current and prior reporting periods.

29.FINANCIAL ASSETS

ACCOUNTING POLICY

The group's financial assets are classified as financial assets at amortised cost and financial assets at fair value through
profit or loss. Refer to note 4 for the group's general accounting policy for financial instruments.

DISCLOSURE
                                                                                                          As at            As at
Euro                                                                                    Note       30 June 2018     30 June 2017

Non-current assets
Preference shares - PKM Developments                                                                105,045,768      101,134,245
Interest rate swap                                                                                      349,224                -
                                                                                                    105,394,992      101,134,245
Current assets
Forward currency contract                                                                                     -           66,097
Capital contribution                                                                      18         24,507,316                -
                                                                                                     24,507,316           66,097

                                                                                                    129,902,308      101,200,342

PREFERENCE SHARES - PKM DEVELOPMENTS

In 2017, the group invested EUR100,000,000 to acquire 7.5% preference shares in PKM Developments. The preference share
asset is held at amortised cost.

CAPITAL CONTRIBUTION

As described in note 18, a financial asset and corresponding financial liability have been recognised in respect of the capital
contribution due from Legal & General, and due to the UK Government, under the terms of the Pre-Let Agreement. Both
the financial asset and financial liability are held at amortised cost, refer to note 33.

INTEREST RATE SWAP

The group entered into an interest rate swap on 9 May 2018. The interest rate swap is held at fair value, with any changes in
fair value recognised in profit or loss in the period in which it occurs.

RECONCILIATION OF THE GROUP'S FINANCIAL ASSETS HELD AT AMORTISED COST:
                                                                                           PKM
                                                                                  Developments
                                                                                    preference         Capital
Euro                                                                                    shares    contribution             Total

Balance at 30 June 2016                                                                      -               -                 -
Purchase of shares                                                                 100,000,000               -       100,000,000
Finance income                                                                       1,134,245               -         1,134,245
Balance at 30 June 2017                                                            101,134,245               -       101,134,245
Capital contribution                                                                         -      24,052,119        24,052,119
Finance income                                                                       7,514,384               -         7,514,384
Distribution received                                                              (3,602,861)               -       (3,602,861)
Finance income - amortisation of capital contribution                                        -         456,951           456,951
Foreign currency translation reserve                                                         -         (1,754)           (1,754)
Balance at 30 June 2018                                                            105,045,768      24,507,316       129,553,084
RECONCILIATION OF THE GROUP'S FINANCIAL ASSETS HELD AT FVTPL:
                                                                                                                   Interest rate
Euro                                                                                                                       swaps

Balance at 30 June 2016                                                                                                        -
Balance at 30 June 2017                                                                                                        -
Fair value adjustment                                                                                                    350,585
Foreign currency translation difference in other comprehensive income                                                    (1,361)
Balance at 30 June 2018                                                                                                  349,224

30. FINANCIAL LIABILITIES

ACCOUNTING POLICY

The group's financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value
through profit or loss. Refer to note 4 for the group's general accounting policy for financial instruments.

DISCLOSURE

                                                                                                         As at             As at
Euro                                                                                  Note        30 June 2018      30 June 2017

Non-current liabilities
Interest rate swaps                                                                                  1,222,944         1,170,086
Deferred consideration                                                                                 473,061           500,000
                                                                                                     1,696,005         1,670,086
Current liabilities
Capital contribution                                                                    18          24,507,316                 -
Priority participating profit dividend                                                  17           6,912,756         6,078,256
Development management fee                                                              17           4,701,505         4,052,171
Interest rate swap                                                                                           -         1,081,563
                                                                                                    36,121,577        11,211,990

                                                                                                    37,817,582        12,882,076

FINANCIAL LIABILITIES AT AMORTISED COST

CAPITAL CONTRIBUTION

As described in note 18, a financial liability and corresponding financial asset have been recognised in respect of the capital
contribution due from Legal & General, and due to the UK Government, under the terms of the Pre-let Agreement. Both the
financial asset and financial liability are held at amortised cost, refer to note 33.

DEFERRED CONSIDERATION

Where settlement of any part of cash consideration is deferred, deferred consideration is classified as a financial liability and
is held at amortised cost. The amounts payable in the future are discounted to their present value if the impact of
discounting is material.

During the year the group paid EUR225,000 of the deferred consideration in relation to Heppenheim Park. The remaining
deferred consideration amount of EUR275,000 was released due to the vendor not completing the agreed retention works.
The deferred consideration was originally recognised as part of the purchase price of the asset, and accordingly, the
EUR275,000 release of the retention has been recognised as a fair value adjustment to investment property in profit or loss.

On the acquisition of Uberior House, the group retained a portion of the purchase price per the sale and purchase
agreement, which will be released to the vendor conditional upon future rent reviews.

RECONCILIATION OF THE GROUP'S FINANCIAL LIABILITIES HELD AT AMORTISED COST:

                                                                                                     Deferred            Capital
Euro                                                                                 Note       consideration       contribution

Balance at 30 June 2016                                                                             2,203,865                  -
Purchase price released                                                                           (1,703,865)                  -
Balance at 30 June 2017                                                                               500,000                  -
Purchase price released                                                                             (500,000)                  -
Purchase price retained                                                                               473,061
Capital contribution                                                                   18                   -         24,052,119
Finance cost - amortisation of capital contribution                                    18                   -            456,951
Foreign currency translation reserve                                                                        -            (1,754)
Balance at 30 June 2018                                                                               473,061         24,507,316

FINANCIAL LIABILITIES AT FVTPL

RECONCILIATION OF THE GROUP'S FINANCIAL LIABILITIES HELD AT FVTPL:
                                                                                                                        Priority
                                                                                                    Development    participating
                                                                                 Interest rate       management           profit
Euro                                                                                     swaps              fee         dividend

Balance at 30 June 2016                                                              3,029,495        2,367,448                -
Fair value adjustment                                                                (769,594)        1,885,457        6,272,812
Foreign currency translation difference recognised in other comprehensive              (8,252)        (200,734)        (194,556)
income
Balance at 30 June 2017                                                              2,251,649        4,052,171        6,078,256
Fair value adjustment                                                                  123,226          682,956          884,397
Foreign currency translation difference recognised in other comprehensive             (58,931)         (33,622)         (49,897)
income
Settlement                                                                         (1,093,000)                -                -
Balance at 30 June 2018                                                              1,222,944        4,701,505        6,912,756

FAIR VALUE HIERARCHY

The following table shows the carrying and fair value of the group's financial liabilities held at fair value in the fair value
hierarchy:

As at 30 June 2018
                                                                                               Fair value
Euro                                                          Carrying amount    Level 1             Level 2             Level 3

Non-current liabilities
Interest rate swaps                                                 1,222,944          -           1,222,944                   -
                                                                    1,222,944          -           1,222,944                   -
Current liabilities
Development management fee                                          4,701,505          -                   -           4,701,505
Priority participating profit dividend                              6,912,756          -                   -           6,912,756
                                                                   11,614,261          -                   -          11,614,261

As at 30 June 2017
                                                                                               Fair value
                                                              Carrying amount    Level 1             Level 2             Level 3

Non-current liabilities
Interest rate swaps                                                 1,170,086          -           1,170,086                   -
                                                                    1,170,086          -           1,170,086                   -
Current liabilities
Development management fee                                          4,052,171          -                  -            4,052,171
Priority participating profit dividend                              6,078,256          -                  -            6,078,256
Interest rate swaps                                                 1,081,563          -           1,081,563                  -
                                                                   11,211,990                      1,081,563          10,130,427

INTEREST RATE SWAPS

The group has hedged some of the interest rate exposure on the interest-bearing borrowings using interest rate swaps,
refer to note 28. These interest rate swaps are classified as FVTPL. Accordingly, they are measured at fair value at the
reporting date with changes in fair value being recognised in profit or loss. During the period the remaining Aldi store in the
Aldi portfolio was sold, consequently the interest-bearing borrowings secured against the portfolio were repaid and the
interest rate swap was settled on 6 July 2017.

DEVELOPMENT MANAGEMENT FEE AND PRIORITY PARTICIPATING PROFIT DIVIDEND

The group has a development management agreement with New Waverley Advisers and New Waverley Holdings ("the
developer") under which a fee and a priority participating profit dividend is payable to the developer in relation to the
development of the New Waverley site in Edinburgh, refer to note 17. Under the terms of the agreement, MAS is entitled to a
7.5% annualised preferred return on invested capital. The developer then earns one third of this annualised return and
thereafter is entitled to a fee or profit dividend that together approximate 25% of any further development profit.

These financial liabilities were designated and classified on initial recognition as FVTPL. Accordingly, they are measured at
fair value at the reporting date with changes in fair value being recognised in profit or loss. There has been no change to
the fair value of the financial liabilities as a result of the group's own credit risk.

LEVEL 2 FINANCIAL LIABILITIES

VALUATION TECHNIQUES AND UNOBSERVABLE INPUTS

The following table shows the valuation technique used to measure financial liabilities held at fair value as well as the
unobservable inputs used for level 2 financial liabilities.

As at 30 June 2018 and 30 June 2017

Financial                                                                              Inter-relationship between inputs and fair value
liability             Valuation technique                          Inputs              measurement

Interest rate         The fair value is based on discounting       -3-month EUR/       The estimated fair value would increase/
swaps                 future cash flows using the interest          GBP/CHF            (decrease) if:
                      rate swap curves plus the historic            LIBOR              -3-month Euro libor/Swiss libor was higher/
                      charged credit margin at the dates           -Swap rate            (lower)
                      when the cash flows will take place.         -Notional loan      -Swap rate was lower/ (higher)
                                                                    value              -Notional loan value was lower/ (higher)
                                                                   -Fixed rate of      -Fixed rate of interest was lower/ (higher)
                                                                    interest

LEVEL 3 FINANCIAL LIABILITIES

VALUATION PROCESS OF LEVEL 3 FINANCIAL LIABILITIES

The fair value of the level 3 financial liabilities in respect of New Waverley Advisers Limited and New Waverley Holdings
Limited is calculated semi-annually. The investment property valuation process, refer to note 17, is part of this valuation
process as the financial liability is derived from the fair value of New Waverley investment property.

VALUATION TECHNIQUES AND UNOBSERVABLE INPUTS

The following table shows the valuation technique used to measure financial instruments held at fair value as well as the
significant unobservable inputs used for level 3 financial instruments:

As at 30 June 2018 and as at 30 June 2017

Financial                                                                         Inter-relationship between inputs and fair value
instrument             Valuation technique                          Inputs        measurement

Development            Gross development value:                     -Value of     The estimated fair value would increase/
management             Fair value is based on the value of           investment   (decrease) if:
fee and priority       the properties in the New Waverley            property     -Value of investment property was higher/(lower)
participating          development.
profit dividend

FAIR VALUE SENSITIVITY ANALYSIS

As at 30 June 2018
                                                                                            Gross development value
                                                                                                         Sensitivity
                                                                                                             %
Financial liability                            Technique                 Valuation   Input (Euro)       Change         Valuation
                                                                                                         +5.00         4,936,580
Development
                                               Gross development value   4,701,505    46,457,049
management fee
                                                                                                         -5.00         4,466,430

                                                                                                         +5.00         7,258,394
Priority participating
                                               Gross development value   6,912,756    46,457,049
profit dividend
                                                                                                         -5.00         6,567,118

As at 30 June 2017
                                                                                            Gross development value
                                                                                                         Sensitivity
                                                                                                             %
Financial liability                            Technique                 Valuation  Input (Euro)        Change         Valuation
                                                                                                         +5.00         4,254,779
Development
                                               Gross development value   4,052,171    40,521,708
management fee
                                                                                                         -5.00         3,849,562

                                                                                                         +5.00         6,382,169
Priority participating
                                               Gross development value   6,078,256    40,521,708
profit dividend
                                                                                                         -5.00         5,774,343

31. TRADE AND OTHER PAYABLES

ACCOUNTING POLICY

The group's trade and other payables include financial instruments and non-financial instruments. The financial instruments
are classified as financial liabilities at amortised cost. Refer to note 4 for the group's general accounting policy for financial
instruments. The non-financial instruments include: deferred income, income tax and VAT.

DISCLOSURE

The group's trade and other payables comprise:
                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017

Construction payables                                                                                 4,551,993        1,229,375
Trade payables                                                                                        4,524,420        6,722,430
Deferred income                                                                                       1,904,870          854,603
Current tax payable                                                                                   1,599,942        1,020,201
VAT payable                                                                                           1,765,052          984,790
Other                                                                                                   386,987            5,363
                                                                                                     14,733,264       10,816,762

Construction payables relate to amounts owed to developers from the construction of the group's development properties.
The financial instrument and fair value disclosures are in notes 33 and 34.

32. SHARE-BASED PAYMENT ARRANGEMENTS

ACCOUNTING POLICY

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of
the equity instrument at the grant date.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line
basis over the vesting period, based on the group's estimate of shares that will eventually vest. A corresponding increase is
recognised in the share-based payment reserve.

Non-forfeitable distributions paid as part of the share-based payment awards are included within the fair value at the
grant date of the share-based payment.

Options are forfeited if the employee leaves the group before the options vest.

DISCLOSURE

The group has two geared share purchase plans - a Salaried and a Non-Salaried purchase plan. In terms of these, the group
granted participants a loan to acquire shares issued by the company. The loans accrue interest at the weighted average
cost of debt of the group. If distributions are declared, the participants are entitled to distributions on all their shares,
irrespective of vesting. A portion of any distribution received must be used to settle the interest that accrued on the loan.
Recourse on the loans is limited to the value of the shares acquired plus any unpaid interest accrued, and the shares are
pledged as security for repayment of the loan.

Salaried plan participants continue to receive basic salary and normal employment benefits from the group. The
participants are entitled to retain the surplus of any distributions received on their shares less the cost of interest on the loans.

The non-salaried variant participant ceased to receive any remuneration or employment benefits from the group from
9 March 2017. The participant does not receive any distributions on the participants shares - instead the distributions are
applied, firstly, to reduce the interest cost on the loans and, thereafter, to reduce the loan balance.

The key terms and conditions related to participation in the plans are as follows:
                                                           Shares                                 Initial term of loan
                      Grant                        Issue                              Vesting                            Initial
                       date          Number        price     Vesting period        conditions       Interest rate           term
Salaried variant    9 March       3,850,000      EUR1.64       20% annually     Service until         WACD of the       10 years
                       2017                                                     vesting dates         group 2.60%
Non-salaried        9 March       4,000,000      EUR1.64   15% annually for     Service until         WACD of the       10 years
variant                2017                               4 years, and then     vesting dates         group 2.60%
                                                               20% annually
                                  7,850,000

The total number of shares issued in relation to the geared share purchase plan is 7,850,000 (2017: 12,850,000) as at 30
June 2018. Since the grant date, 5,000,000 shares have been forfeited, refer to note 24.

The loans to acquire shares are, in substance, call options in terms of IFRS 2: 'Share-based Payments'. The options were
valued at the grant date. The cost thereof is recognised over the vesting period as an employment benefit, with a
corresponding increase in the share-based payment reserve. During the year EUR902,386 (2017: EUR319,248) was recognised in
the share-based payment reserve in relation to the options, refer to note 25.

As the options relate to multiple service periods, the awards have a graded vesting pattern whereby each tranche
relating to a particular service period is recognised as an expense in profit or loss over that service period.

MEASUREMENT OF FAIR VALUE

The fair value of the options of the Salaried and Non-salaried share option plans have been determined by using the Black-
Scholes-Merton model. The participants' service related vesting conditions have not been considered in the valuation of the
options. Instead, the expense has been recognised based on the group's estimate of shares that will eventually vest.

The valuation assumptions used to measure the grant date fair value of the options of the equity settled share-based
payments were as follows:
                                                                                                                           As at 
Salaried and Non-salaried plan                                                                                        grant date
Share price at grant date                                                                                                EUR1.64
Exercise price                                                                                                           EUR2.10
Expected volatility                                                                                                       21.16%
Risk free rate                                                                                                             0.43%
Expected distribution                                                                                                      0.00%
Time to expiration                                                                                                      10 years
Fair value of option                                                                                                     EUR0.31

As participants are effectively entitled to distributions, or distribution equivalents, between grant date and exercise date, the
options are valued as if no distributions will be paid on the underlying share. The input for expected distributions is
accordingly zero. In addition, the interest on the loan effectively increases the exercise price of the option from EUR1.64 to EUR2.10.

Expected volatility has been based upon the evaluation of the company's historic volatility and market conditions to
determine the future implied volatility of the company's share price over the term of the options in the geared purchase plans.

RECONCILIATION OF OUTSTANDING LOAN AND SHARES

The number of shares and the loan value of the employee incentive plans were as follows:

As at 30 June 2018

                                    Non-Salaried purchase plan                         Salaried purchase plan
                                  Number of     Weighted        Weighted             Number of         Weighted         Weighted
                                     shares average share    average loan               shares    average share     average loan
                                                   price        per share                                 price        per share

Opening outstanding               9,000,000    EUR1.5750          EUR1.6270          3,850,000        EUR1.5750        EUR1.6512
balance
Forfeited                       (5,000,000)            -                  -                  -                -                -
Interest                                  -            -          EUR0.0392                  -                -        EUR0.0426
Interest repayment                        -            -        (EUR0.0417)                  -                -      (EUR0.0448)
Capital repayment                         -            -        (EUR0.0260)                  -                -                -
Share price movement                      -  (EUR0.2667)                  -                  -      (EUR0.2667)                -
Closing outstanding               4,000,000    EUR1.3083          EUR1.5985          3,850,000        EUR1.3083        EUR1.6490
balance
Exercisable                         666,667    EUR1.3083          EUR1.5985            770,000       EUR1.3083         EUR1.6490

As at 30 June 2017

                                    Non-Salaried purchase plan                         Salaried purchase plan
                                  Number of      Weighted         Weighted          Number of         Weighted          Weighted
                                     shares average share     average loan             shares    average share      average loan
                                                   price         per share                               price         per share

Opening outstanding                       -            -                 -                  -                -                 -
balance
Granted                           9,000,000    EUR1.6386         EUR1.6386          3,850,000          EUR1.6386       EUR1.6386
Interest                                  -            -         EUR0.0150                  -                -         EUR0.0150
Interest repayment                        -            -       (EUR0.0024)                  -                -       (EUR0.0024)
Capital repayment                         -            -       (EUR0.0242)                  -                -                 -
Share price movement                      -  (EUR0.0636)                 -                  -      (EUR0.0636)                 -
Closing outstanding               9,000,000    EUR1.5750         EUR1.6270          3,850,000        EUR1.5750         EUR1.6512
balance
Exercisable                               -            -                 -                  -                -                 -

The remaining term of the loans as at 30 June 2018 was 8.69 years (2017: 9.69 years). The call options on the vested and
unvested shares are out of the money at 30 June 2018.
Refer to note 36 for further disclosures of the share-based payment expense included in key management
compensation and directors' remuneration.

33.ACCOUNTING CLASSIFICATION AND FAIR VALUES

As at 30 June 2018
                                                                              FVTPL
                                                                                                                    Amortised  Non-financial
Euro                                            Note      Level 1        Level 2         Level 3    Total FVTPL          cost    instruments          Total

Financial assets                                                                                
Non-current financial investments               19    183,052,263              -               -    183,052,263             -              -    183,052,263
Non-current financial assets                    29              -        349,224               -        349,224   105,045,786              -    105,394,992
Current financial asset                         29              -              -               -              -    24,507,316              -     24,507,316
Trade and other receivables                     21              -              -               -              -    13,997,166       2,151,167    16,148,333
Cash and cash equivalents                       22              -              -               -              -   147,825,624              -    147,825,624
                                                      183,052,263        349,224               -    183,401,487   291,375,874       2,151,167   476,928,528
Financial liabilities                                                                           
Non-current financial liabilities               30              -      1,222,944               -      1,222,944       473,061              -      1,696,005
Non-current interest-bearing borrowings         28              -              -               -              -   214,407,455              -    214,407,455
Current financial liabilities                   30              -              -      11,614,261     11,614,261    24,507,316              -     36,121,577
Current interest-bearing borrowings             28              -              -               -              -    28,305,652              -     28,305,652
Trade and other payables                        31              -              -               -              -     9,463,400       5,269,864    14,733,264 
                                                                -      1,222,944      11,614,261     12,837,205   277,156,884       5,269,864   295,363,953

As at 30 June 2017
                                                                              FVTPL
                                                                                                                   Amortised Non-financial
Euro                                            Note      Level 1        Level 2         Level 3    Total FVTPL         cost instruments              Total

Financial assets                                                                                
Non-current financial assets                    29              -              -               -              -   101,134,245               -   101,134,245
Current financial assets                        29              -         66,097               -         66,097             -               -        66,097
Trade and other receivables                     21              -              -               -              -     6,404,381       2,302,654     8,707,035
Cash and cash equivalents                       22              -              -               -              -    33,017,502               -    33,017,502
                                                                -         66,097               -         66,097   138,556,128       2,302,654   142,924,879
Financial liabilities                                                                           
Non-current financial liabilities               30              -      1,170,086               -      1,170,086       500,000               -     1,670,086
Non-current interest-bearing borrowings         28              -              -               -              -   141,751,953               -   141,751,953
Current financial instruments                   30              -      1,081,563      10,130,427     11,211,990             -               -    11,211,990
Current interest-bearing borrowings             28              -              -               -              -     5,461,444               -     5,461,444
Trade and other payables                        31              -              -               -              -     7,957,167       2,859,595    10,816,762
                                                                -      2,251,649      10,130,427     12,382,076   155,670,564       2,859,595   170,912,235

The group has not disclosed the fair values for financial instruments such as cash and cash equivalents, trade and other receivables and payables and
interest-bearing borrowings because their carrying amounts are a reasonable approximation of fair values. The disclosures for level 2 and level 3 can be
found in the relevant note to each line item.

34. FINANCIAL RISK MANAGEMENT

OVERVIEW

The group has exposure to the following risks from its use of financial instruments:
- Liquidity risk
- Market price risk
- Interest rate risk: fair value interest rate risk and cash flow interest rate risk
- Foreign exchange risk
- Credit risk

LIQUIDITY RISK - The risk that the group will encounter difficulty meeting its obligations associated with its financial liabilities
that arises when the maturity of assets and liabilities do not match. An unmatched position potentially enhances
profitability but can also increase the risk of losses.

The group has internal procedures focused on ensuring the efficient but prudent use of cash and availability of working
capital. The liquidity risk inherent in the business is mainly as a result of the tenant risk in the property portfolio. Should a
tenant default, liquidity risk may result in the inability of the group to cover the interest and capital payments. As a result,
adequate cash buffers are maintained, and tenant strength is reviewed on a continual basis. The group intends to invest up
to a further EUR250,000,000 in PKM Developments, refer to note 39. The group has no significant concentration of liquidity
risk on the basis that the group holds all cash and cash equivalents on demand.

The following are the contractual maturities, including interest payments:

As at 30 June 2018
Euro                                   Note   1-6 months       6-12 months          1-3 years          >3 years            Total

Capital commitments                      39  242,754,299        30,103,744        160,807,972                 -      433,666,015
 -  Investment property                      118,800,000                 -                  -                 -       118,800,00
 -  Inventory property                        23,954,299        30,103,744         10,807,972                 -      64,866,015
 -  Preference shares -                      100,000,000                 -        150,000,000                 -      250,000,000
    PKM Developments
Interest-bearing borrowings                    6,732,069         6,225,490         30,293,331       229,009,978      272,260,868
Trade and other payables                      14,733,264                 -                  -                 -       14,733,264
Financial instruments                                  -        36,121,577            473,061         1,222,944       37,817,582
 -  Current financial liabilities                      -        36,121,577                  -                 -       36,121,577
 -  Non-current financial liabilities                  -                 -            473,061                 -          473,061
 -  Non-current derivative                             -                 -                  -         1,222,944        1,222,944
    financial instruments
                                             264,219,632        72,450,811        191,574,364       230,232,922      758,477,729

As at 30 June 2017
Euro                                    Not   1-6 months       6-12 months          1-3 years          >3 years            Total

Capital commitments                      39    8,436,573       118,867,033         51,536,499                 -      178,840,105
 -  Investment property                        8,436,573        18,867,033         51,536,499                 -       78,840,105
 -  Preference shares -                                -       100,000,000                  -                 -      100,000,000
    PKM Developments
Interest bearing borrowings                    4,898,417         3,604,308         21,278,990       138,679,395      168,461,110
Trade and other payables                      10,816,762                 -                  -                 -       10,816,762
Financial instruments                          1,081,563        10,130,427            500,000         1,170,086       12,882,076
 -  Current financial liabilities                      -        10,130,427                  -                 -       10,130,427
 -  Non-current financial liabilities                  -                 -            500,000                -           500,000
 -  Current derivative financial               1,081,563                 -                  -                 -        1,081,563
    instruments
 -  Non-current derivative                             -                 -                  -         1,170,086        1,170,086
    financial instruments
                                              25,233,315        132,601,768        73,315,489       139,849,481      371,000,053

MARKET PRICE RISK - The risk that the market price of an investment or financial instrument will fluctuate due to changes in
foreign exchange rates, market interest rates, market factors specific to the security or its issuer or factors generally
affecting all such investments.

The risk to the group arises due to an imbalance between demand and supply for the relevant investments and financial
instruments in the portfolio, which could potentially result in a disorderly market. The concentration of market risk is
mitigated through the regular monitoring of the share price of financial investments.

The assets and liabilities affected by market price risk are as follows:
                                                                                                       As at               As at
Euro                                                                                            30 June 2018        30 June 2017

Assets
Financial investments                                                                             183,052,263                  -
Derivative financial instruments                                                                      349,224             66,097
                                                                                                  183,401,487             66,097
Liabilities
Financial liabilities                                                                              11,614,261         10,130,427
Derivative financial instruments                                                                    1,222,944          2,251,649
                                                                                                   12,837,205         12,382,076

At 30 June 2018, if market prices at that date had been 5% (2017: 5%) higher/lower with all other variables held constant,
post-tax profit for the year would have been EUR8,528,214 (2017: EUR729,023) higher/lower. This sensitivity analysis assumes that
all other variables remain constant.

INTEREST RATE RISK - A significant part of the funding of the group's portfolio derives from debt. Debt is managed on an active basis, sometimes hedging against
adverse movements in interest rates. Details of the hedging arrangements of the group are disclosed in note 29.

The carrying value of assets and liabilities affected by interest risk are as follows:

                                        As at 30 June 2018                                                As at 30 June 2017
                                                               Non-                                                                 Non-
                                                    No    financial                                                    No      financial
Euro                Fixed rate     Variable    exposure instruments          Total    Fixed rate     Variable    exposure    instruments          Total

Assets
Financial assets      349,224    24,507,316           - 105,045,768    129,902,308             -            -      66,097    101,134,245    101,200,342
Trade and other             -             -  13,997,166   2,151,167     16,148,333             -            -   8,707,035              -      8,707,035
receivables
Cash and cash               -   147,825,624           -           -    147,825,624             -    33,017,502          -              -     33,017,502
equivalents
                      349,224   172,332,940  13,997,166 107,196,935    293,876,265             -    33,017,502   8,773,132   101,134,245    142,924,879
Liabilities
Interest bearing   199,289,452   43,423,655           -           -    242,713,107   112,857,253    34,356,144           -             -    147,213,397
borrowings
Financial            1,222,944   24,980,377  11,614,261           -     37,817,582     2,251,649       500,000  10,130,427             -     12,882,076
instruments
  -  Derivative      1,222,944            -           -           -      1,222,944     2,251,649             -           -             -      2,251,649
     financial
     instruments
  -  Financial               -   24,980,377  11,614,261           -     36,594,638             -       500,000  10,130,427             -     10,630,427
     liabilities
Trade and other              -            -  14,733,265           -     14,733,265             -     7,951,805   2,864,957             -     10,816,762
payables
                   200,512,396   68,404,032  26,347,526           -     295,263,954  115,108,902    42,807,949  12,995,384             -    170,912,235

FAIR VALUE SENSITIVITY FOR FIXED-RATE INSTRUMENTS

The group does not account for any fixed rate interest bearing borrowings at fair value through profit or loss and the group
does not designate derivative financial instruments as hedging instruments. Therefore, a change in interest rates on fixed
rate interest-bearing borrowings would not affect profit or loss.

CASH FLOW SENSITIVITY FOR VARIABLE RATE INSTRUMENTS

At 30 June 2018, if interest rates at that date had been 25 basis points higher/lower (2017: 25 basis points) with all other
variables held constant, post-tax profit for the year would have been EUR330,003 (2017: EUR49,106) lower/higher, arising mainly
as a result of the higher/lower interest expense on variable borrowings. This sensitivity analysis assumes that all other
variables remain constant.

FOREIGN EXCHANGE RISK - The group is exposed to currency risk because it holds both assets and liabilities denominated in
currencies other than euro, the presentation currency. It is therefore exposed to currency risk, as the value of assets and
liabilities denominated in other currencies will fluctuate due to changes in exchange rates.

As at 30 June 2018 the group had the following currency exposures:

CURRENCY RISK EXPOSURES
                                                         GBP        CHF        ZAR      USD         PLN          SEK         BGN

Closing exchange rate                                 0.8861     1.1569    16.0514   1.1658      4.3725      10.4560      1.9560
 
FINANCIAL INSTRUMENTS - ASSETS

Financial investments
Foreign currency                                  21,633,249          -          -        -           -  139,022,719           -
Euro equivalent                                   24,413,121          -          -        -           -   13,295,975           -

Financial instruments
Foreign currency                                  22,026,176          -          -        -           -            -           -
Euro equivalent                                   24,856,540          -          -        -           -            -           -
 
Trade and other receivables
Foreign currency                                  10,736,098     53,258          -        -   3,909,118            -   3,508,951
Euro equivalent                                   12,115,687     46,036          -        -     894,015            -   1,794,098
 
Cash and cash equivalents
Foreign currency                                  15,417,936    844,729    154,061   14,623   1,546,070            -   5,479,690
Euro equivalent                                   17,399,141    730,184      9,598   12,544     353,586            -   2,801,721
 
FINANCIAL INSTRUMENTS - LIABILITIES
 
Financial instruments
Foreign currency                                  32,427,681  1,054,990          -        -   1,359,909            -           -
Euro equivalent                                   36,594,639    911,933          -        -     311,011            -           -
 
Interest bearing borrowings                     
Foreign currency                                  65,513,444  8,732,500          -        -           -            -           -
Euro equivalent                                   73,931,921  7,548,373          -        -           -            -           -
 
Trade and other payables
Foreign currency                                   8,764,932     53,924          -        -   1,338,840            -   3,790,847
Euro equivalent                                    9,891,226     46,612          -        -     306,193            -   1,938,229
 
Total net financial
(liability)/asset exposure                     
Foreign currency                                (36,892,598) (8,943,427)   154,061   14,623   2,756,439  139,022,719   5,197,794
Euro equivalent                                 (41,633,297) (7,730,698)     9,598   12,544     630,397   13,295,975   2,657,590

As at 30 June 2017 the group had the following currency exposures:

CURRENCY RISK EXPOSURES
                                                               GBP              CHF            ZAR            USD            PLN

Closing exchange rate                                       0.8794           1.0930        14.9254         1.1412         4.2265 
                                                                                                                                
FINANCIAL INSTRUMENTS - ASSETS

Financial instruments                                                                                                           

Foreign currency                                                 -                -              -              -        279,362
Euro equivalent                                                  -                -              -              -         66,097
                                                                                                                                
Trade and other receivables                                                                                                     
Foreign currency                                         2,794,851           39,650              -              -              -
Euro equivalent                                          3,178,304           36,276              -              -              -
                                                                                                                                
Cash and cash equivalents                                                                                                       
Foreign currency                                         2,628,385          512,562         22,241            821            122
Euro equivalent                                          2,989,000          468,943          1,518            720             29
                                                                                                                                
FINANCIAL INSTRUMENTS - LIABILITIES
                                                                                                                                
Financial instruments                                                                                                           
Foreign currency                                        10,783,254        1,278,922              -              -              -
Euro equivalent                                         12,262,716        1,170,086              -              -              -
                                                                                                                                
Interest bearing borrowings                                                                                                     
Foreign currency                                        27,952,244        9,122,500              -              -              -
Euro equivalent                                         31,787,292        8,346,175              -              -              -
                                                                                                                                
Trade and other payables                                                                                                        
Foreign currency                                         3,948,749           55,448        108,433              -              -
Euro equivalent                                          4,490,517           50,729          7,265              -              -
                                                                                                                                
Total net (liability)/asset exposure                                                                                            
Foreign currency                                      (37,261,011)      (9,904,658)       (86,192)            821        279,484
Euro equivalent                                       (42,373,221)      (9,061,771)        (5,747)            720         66,126

As at 30 June 2018, if the euro had strengthened/weakened against other currencies used by the group with all other
variables held constant, post-tax profit for the period would have been:

                                                             30 June 2018                           30 June 2017
                                                             Profit or loss                         Profit or loss
Euro                               Movement             Strengthening           Weakening        Strengthening         Weakening

GBP                                     5%                  2,081,665         (2,081,665)            2,114,749       (2,114,749)
CHF                                     5%                    386,535           (386,535)              453,089         (453,089)
ZAR                                    10%                      (960)                 960                  606             (606)
USD                                     5%                      (627)                 627                 (36)                36
PLN                                     5%                   (31,520)              31,520              (3,306)             3,306
SEK                                     5%                  (664,799)             664,799                    -                 -
BGN1                                    0%                          -                   -                    -                 -
                                                            1,770,294          (1,770,294)           2,565,102        (2,565,102)

This sensitivity analysis assumes that all other variables, particularly interest rates, remain constant.

(1) The Bulgarian Lev is fixed to the euro exchange rate therefore there was no currency risk exposure.

CREDIT RISK - The group is exposed to credit risk primarily as a result of its banking relationships, trade receivables owed by tenants, listed real estate equity
securities and the investment in the PKM Developments preference shares. In addition, the credit exposure arises due to potential default on derivative
instruments if the counterparty defaults as a result of a deteriorating credit rating. Credit risk is initially monitored by management with reference to external
credit ratings.

The carrying amount of financial assets represents the maximum credit risk exposure, as follows:

                                                     As at 30 June 2018                                                As at 30 June 2017
                                       Credit risk                    Non-financial                      Credit risk                   Non-financial
Euro                                      exposure      No exposure     instruments          Total          exposure    No exposure      instruments          Total

Non-current financial assets
Financial investments                  183,052,263                -               -    183,052,263                 -              -                -              -
Financial instruments                  105,394,992                -               -    105,394,992       101,134,245              -                -    101,134,245
                                       288,447,255                -               -    288,447,255       101,134,245              -                -    101,134,245
Current financial assets
Financial instruments                            -       24,507,316               -     24,507,316            66,097              -                -         66,097
Trade and other receivables             13,997,166                -       2,151,167     16,148,333         6,904,328       1,802,707               -      8,707,035
Cash and cash equivalents              147,825,624                -               -    147,825,624        33,017,502              -                -     33,017,502
                                       161,822,790       24,507,316       2,151,167    188,481,273        39,987,927       1,802,707               -     41,790,634

                                       450,270,045       24,507,316       2,151,167    476,928,528       141,122,172       1,802,707               -    142,924,879

Management reviews the credit quality on a quarterly basis by reviewing management accounts, including those of PKM Developments. Cash and cash
equivalents are held with banks and financial institution counterparties which are rated B+ or better by Moody's rating agency. The share price of the listed
real estate equity securities is monitored by management on a regular basis. The credit quality of trade and other receivables is reviewed by MAS Prop as
investment advisors to the group, no impairment indications have been found. If there are any significant changes to credit quality these are escalated to
the Audit and Risk Committee.

There is no significant concentration credit risk with respect to trade and other receivables as the group does not place reliance on one single
counterparty. The group reviews the financial status and risk profile of its tenants and has found no impairment indications. No financial assets are impaired
and none are past due dates.

35. OPERATING SEGMENTS

ACCOUNTING POLICY

Segment results that are reported to the executive board include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated items comprise mainly central costs that relate to the group
structure and operations not related to specific investments. In addition, unallocated items in the consolidated statement of
financial position relate predominantly to cash that has not been allocated to specific investments.
The risks and rewards faced by the group relate primarily to the business segment of the assets and therefore this forms
the basis of the reporting segment.

DISCLOSURE

Reportable segment                   Description

Income-generating property           Property that is currently producing income and held for the purpose of earning a
                                     yield. There may be further asset management opportunities on these properties,
                                     which could further enhance income returns.
Development property                 Property that is being developed in order to create income producing property held
                                     for the purpose of earning a better yield than by acquiring standing property.
Land bank and other strategic assets Residential developments and land plots held for schemes that have not yet
                                     commenced, and listed real estate equity securities.
Corporate                            Consists of the cash holdings outside of the other reporting segments and goodwill.

The executive management team analyses the performance and position of the group by aggregating the group into the
four reportable segments. These reportable segments have different risk profiles and generate revenue/income from
different sources. Accordingly, it allows the executive management team to make better informed strategic decisions for
the group. Management reports are prepared and reviewed on a quarterly basis by the executive management team to
facilitate this process.

As at and for the year ended 30 June 2018
                                                                    Reportable segments
                                                                                     Land bank
                                                      Income-                        and other
                                                   generating      Development       strategic
Euro                                                 property         property          assets        Corporate            Total

Statement of profit or loss
External revenue                                   43,010,408                -         396,153                -       43,406,561
Segment profit/(loss) before tax                   37,329,217        9,938,530    (18,696,118)      (2,370,820)       26,200,809
Finance income                                          3,744        7,971,335             479                -        7,975,558
Interest earned on preference shares                        -        7,514,384               -                -        7,514,384
Finance costs                                     (4,944,538)        (456,951)               -        (158,855)      (5,560,344)
Current tax                                         (788,830)      (2,394,030)     (2,369,785)          (3,357)      (5,556,002)
Deferred tax                                      (3,730,148)        2,418,763               -                -      (1,311,385)
Investment in equity-accounted investee                     -        3,568,925               -                -        3,568,925
Other material non-cash items
-  Fair value adjustments                          12,357,437      (5,388,602)    (22,921,758)          152,796     (15,800,127)
-  Exchange differences                                 (837)                -               -      (1,019,950)      (1,020,787)
-  Goodwill impairment                                      -                -               -      (1,274,346)      (1,274,346)
  Depreciation                                      (85,088)                -               -         (14,938)        (100,026)
Statement of financial position
Segment non-current assets                        548,602,766       105,010,649    216,150,430       21,581,047      891,344,892
Investment in equity-accounted investee                     -        23,774,222              -                -       23,774,222
-  Segment current assets                          72,949,162        37,001,253     15,532,543      117,880,260      243,363,218
Segment non-current liabilities                 (222,239,291)                 -              -          (3,542)    (222,242,833)
Segment current liabilities                      (47,772,895)      (29,887,847)    (1,419,996)        (363,838)     (79,444,576)

As at and for the year ended 30 June 2017
                                                                      Reportable segments
                                                                                      Land bank
                                                        Income-                       and other
                                                     generating      Development      strategic
Euro                                                   property         property         assets       Corporate            Total
Statement of profit or loss
External revenue                                     31,532,298                -         34,632           15,498      31,582,428
Inter-segment revenue                                         -                -              -                -               -
Segment profit/(loss) before tax                     49,460,087          872,805    (5,003,657)      (5,069,622)      40,259,613
Finance income                                            1,350        1,134,247             16           71,583       1,207,196
Finance costs                                       (2,235,473)                -              -          (3,024)     (2,238,497)
Current tax                                         (1,749,449)                -              -                -     (1,749,449)
Deferred tax                                        (3,942,153)                -              -                -     (3,942,153)
Investment in equity-accounted investee                       -          178,397              -                -         178,397
Other material non-cash items
-  Fair value adjustments                            30,161,319                -    (4,569,029)                -      25,592,290
-  Exchange differences                               (819,456)               18              -      (3,865,457)     (4,684,895)
-  Depreciation                                        (23,977)          (1,963)        (1,924)                -        (27,864)
Statement of financial position
Segment non-current assets                          495,615,079      152,701,312     39,690,960       22,909,548     710,916,899
Investment in equity accounted investee                       -       20,205,297              -                -      20,205,297
-  Segment current assets                            20,171,923        1,708,107      2,347,199       23,900,320      48,127,549
Segment non-current liabilities                     147,306,309          881,180        232,924                -     148,420,413
Segment current liabilities                          14,450,775       11,975,661        545,684          609,881      27,582,001

Where assets/liabilities and income/expense are shared by reportable segments they are allocated to each respective
reportable segment based on a rational driver of use or ownership of the asset/liabilities, income/expense.

GEOGRAPHICAL INFORMATION

The group invests in investment property in Europe. The geographical information below analyses the group's rental income
and service charge income and other recoveries and non-current assets by the company's country of domicile and the
jurisdiction in which the underlying assets are held: Western Europe (UK, Germany and Switzerland) and Central and Eastern
Europe (Poland, Bulgaria and Romania) as a result of the investment in associate, refer to note 20.

Revenue
                                                                                                     Year ended       Year ended
Euro                                                                                               30 June 2018     30 June 2017
BVI                                                                                                           -                -
Western Europe                                                                                       24,865,399       25,328,584
CEE                                                                                                  18,541,162        6,253,844
                                                                                                     43,406,561       31,582,428

Non-current assets
                                                                                                          As at            As at
Euro                                                                                               30 June 2018     30 June 2017
BVI                                                                                                 204,633,310                -
Western Europe                                                                                      414,204,311      433,123,317
CEE                                                                                                 296,281,493      277,793,582
                                                                                                    915,119,114      710,916,899
DIRECT AND INDIRECT INVESTMENT RESULTS

In order to provide information of relevance to investors and a meaningful basis of comparison for users of the financial
information, a statement of direct and indirect investment results for the year ended 30 June 2018 has been prepared and
presented below. It allocates the IFRS result between direct and indirect investment result respectively.
The directors consider that the distribution statement is useful in interpreting the performance of the group.

STATEMENT OF DIRECT AND INDIRECT INVESTMENT RESULT
                                                                                 Direct             Indirect
                                                                             investment           investment
Euro                                                                             result               result          Total IFRS
Rental income                                                                37,452,513                    -          37,452,513
Service charge income and other recoveries                                    5,954,048                    -           5,954,048
                                                                             43,406,561                    -          43,406,561
Service charge and other property operating expenses                       (11,073,518)                    -        (11,073,518)
Net rental income                                                            32,333,043                    -          32,333,043
Sales of inventory property                                                           -           26,020,940          26,020,940
Cost of sales of inventory property                                                   -         (21,704,016)        (21,704,016)
Profit on sale of inventory property                                                  -            4,316,924           4,316,924
Other income                                                                  8,585,032                    -           8,585,032
Corporate expenses                                                          (4,946,973)                    -         (4,946,973)
Investment expenses                                                                   -          (1,976,096)         (1,976,096)
Net operating income                                                         35,971,102            2,340,828          38,311,930
Fair value adjustments                                                                -         (15,800,127)        (15,800,127)
Foreign currency exchange differences                                                 -          (1,020,787)         (1,020,787)
Share of profit from equity accounted investee, net of tax                            -            3,568,925           3,568,925
Goodwill impairment                                                                   -          (1,274,346)         (1,274,346)
Profit/(loss) before net financing costs                                     35,971,102         (12,185,107)          23,785,595
Finance income                                                                7,975,558                    -           7,975,558
Finance costs                                                               (5,560,344)                    -         (5,560,344)
Profit/(loss) before tax                                                     38,386,316         (12,185,107)          26,200,809
Current tax                                                                 (2,979,626)          (2,576,376)         (5,556,002)
Deferred tax                                                                          -          (1,311,385)         (1,311,385)
Profit/(loss) for the period                                                 35,406,690         (16,073,268)          19,333,422
Attributable to:
Owners of the parent                                                         34,078,183         (17,221,877)          16,856,306
Non-controlling interest                                                      1,328,507            1,148,609           2,477,116

DISTRIBUTABLE EARNINGS AND BASIS OF DISTRIBUTION
                                                                                                                      Year ended 
Euro                                                                                                                30 June 2018
Direct investment result distributable to shareholders                                                                34,078,183

Company specific adjustments
Net attributable profit on sales of inventory property(1)                                                              2,628,067
Distributable earnings before effect of shares issued during the period                                               36,706,250
Weighted average number of shares in issue                                                                           577,814,866
Distributable earnings per share (euro cents per share)                                                                     6.35

Distributable earnings before effect of shares issued during the period                                               36,706,250
Adjustment relating to shares issued during the period                                                                 3,772,061
Distributable earnings (after adjustment for shares issued during the period)                                         40,478,311

Closing number of shares in issue                                                                                   637,493,798

(1) The profit on sales of inventory property during the year was EUR4,316,924 (2017: EURnil). The tax recognised on these sales was EUR812,835 (2017: EURnil), refer
    to note 15, giving a net amount of profit of EUR3,504,089 (2017: EURnil). The group has recognised 75% (2018: EUR2,628,067; 2017: EURnil) of this balance as
    distributable earnings as approximately 25% of profit is payable to the developer, refer to note 30.

                                                                            Six-month              Six-month
                                                                         period ended           period ended          Year ended
Euro cents                                                           31 December 2017           30 June 2018        30 June 2018
 Distributable earnings per share                                                2.70                   3.65                6.35
 Adjustment from reserves per share                                              0.88                   0.38                1.26
 Distribution per share                                                          3.58                   4.03                7.61

RECONCILIATION OF CASH FROM OPERATIONS TO DIRECT INVESTMENT RESULT
                                                                                                                      Year ended
Euro                                                                                                                30 June 2018

Net cash from operating activities                                                                                    35,386,649

Finance cost                                                                                                         (5,560,344)

Finance income                                                                                                         4,372,697
 Finance income                                                                                                        7,975,558
 Finance income received - interest on preference shares                                                             (3,602,861)

Tax                                                                                                                      454,869
 Tax expense                                                                                                         (2,979,626)
 Tax paid                                                                                                              3,434,495

Non-cash items                                                                                                         (905,792)
Depreciation                                                                                                           (100,026)
Share-based payment expenses                                                                                           (805,766)

Working capital movement                                                                                               (317,485)
Decrease in receivables                                                                                              (1,029,613)
Decrease in payables                                                                                                     904,406
Increase in provisions                                                                                                 (192,278)

Other                                                                                                                  1,976,096
Investment expenses                                                                                                    1,976,096

TOTAL DIRECT INVESTMENT RESULT                                                                                        35,406,690
Attributable to:
Owners of the parent                                                                                                  34,078,183
Non-controlling interest                                                                                               1,328,507

STATEMENT OF DIRECT AND INDIRECT INVESTMENT RESULT
                                                                                  Direct              Indirect
                                                                              investment            investment
Euro                                                                              result                result        Total IFRS
Rental income                                                                 27,032,238                     -         27,032,238
Service charge income and other recoveries                                     4,550,190                     -          4,550,190
                                                                              31,582,428                     -         31,582,428
Service charge and other property operating expenses                         (7,597,216)                 (820)        (7,598,036)
Net rental income                                                             23,985,212                 (820)         23,984,392
Sales of inventory property                                                            -                     -                  -
Cost of sales of inventory property                                                    -                     -                  -
Profit on sale of inventory property                                                   -                     -                  -
Other income                                                                           -                     -                  -
Corporate expenses                                                           (3,253,610)             (244,599)        (3,498,209)
Investment expenses                                                                    -             (281,061)          (281,061)
Net operating income/(loss)                                                   20,731,602             (526,480)         20,205,122
Fair value adjustments                                                                 -            25,592,290         25,592,290
Foreign currency exchange differences                                                  -           (4,684,895)        (4,684,895)
Share of profit from equity-accounted investee, net of taxation                  132,602                45,795            178,397
Goodwill impairment                                                                    -                     -                  -
Profit before net financing costs                                             20,864,204            20,426,710         41,290,914
Finance income                                                                 1,207,196                     -          1,207,196
Finance costs                                                                (2,238,497)                     -        (2,238,497)
Profit before tax                                                             19,832,903            20,426,710         40,259,613
Current tax                                                                  (1,741,449)                     -        (1,741,449)
Deferred tax                                                                           -           (3,942,153)        (3,942,153)
Profit for the period                                                         18,091,454            16,484,557         34,576,011
Attributable to:                                                                                                                
Owners of the parent                                                          17,899,178            15,688,770         33,587,948
Non-controlling interest                                                         192,276               795,787            988,063

DISTRIBUTABLE EARNINGS AND BASIS OF DISTRIBUTION
                                                                                                                      Year ended
Euro                                                                                                                30 June 2017
Direct investment result distributable to shareholders                                                                17,899,178
Company specific adjustments
Sirius earnings                                                                                                        1,137,215
Capitalisation of borrowing costs                                                                                        240,658
Other adjustments                                                                                                        438,407
Distributable earnings before effect of shares issued during the period                                               19,715,458
Weighted average number of shares in issue(1)                                                                        402,059,173
Distributable earnings per share (euro cents per share)                                                                     4.90

Distributable earnings before effect of shares issued during the period                                               19,715,458
Adjustment relating to shares issued during the period                                                                 3,832,529
Distributable earnings (after adjustment for shares issued during the period)                                         23,547,987

Closing number of shares in issue(1)                                                                                 480,216,299
                                                                              Six-month
                                                                           period ended           Six-month
                                                                            31 December        period ended           Year ended
Euro cents                                                                         2016        30 June 2017         30 June 2017
 Distributable earnings per share                                                  2.27                2.63                 4.90
 Adjustment from reserves per share                                                0.39                0.56                 0.95
 Distribution per share                                                            2.66                3.19                 5.85

(1) In the prior period, distributable earnings per share was calculated on the total number of shares in issue, which includes the geared share purchase
    plan shares. In the current period, the IFRS approach of treating the geared share purchase plan shares as unissued treasury shares is adopted.

RECONCILIATION OF CASH FROM OPERATIONS TO DIRECT INVESTMENT RESULT                       
                                                                                                                      Year ended
Euro                                                                                                                30 June 2017

Net cash from operating activities                                                                                    24,489,820

Finance cost                                                                                                         (2,238,497)
Finance cost                                                                                                         (2,238,497)

Finance income                                                                                                         1,207,196
Finance income                                                                                                         1,207,196

Tax                                                                                                                    (675,251)
 Tax expense                                                                                                         (1,741,449)
 Tax paid                                                                                                              1,066,198

Non-cash items                                                                                                         (104,738)
Depreciation                                                                                                            (27,864)
Share based payment expenses                                                                                           (245,419)
Earnings in associate                                                                                                    132,602
IFRS 2 expense                                                                                                           245,419

Working capital movement                                                                                             (5,077,613)
Decrease in receivables                                                                                              (2,557,048)
Increase in payables                                                                                                 (2,520,565) 

Other                                                                                                                    281,061
Investment expenses                                                                                                      281,061

TOTAL DIRECT INVESTMENT RESULT                                                                                        18,091,454
Attributable to:
Owners of the parent                                                                                                  17,899,178
Non-controlling interest                                                                                                 192,276

EPRA NAV

The European Public Real Estate Association (EPRA) is an organisation that promotes, develops and represents the
European public real estate sector. EPRA sets out best practice reporting guidelines on a number of financial and
operational performance indicators relevant to the real estate sector. As the business of the group matures, the board
intends to adopt the EPRA performance measures on a comprehensive basis. However, as the business goes through the
current stage of rapid change and growth, some of the metrics are currently considered not to be relevant. Initially, EPRA
NAV and EPRA NAV per share have been computed, which provides an industry standard methodology for the
computation of the net asset value per share of the group.

RECONCILIATION OF IFRS NAV TO EPRA NAV
                                                                                                          As at            As at
Euro                                                                                     Note      30 June 2018     30 June 2017
Equity attributable to owners of the parent                                                         854,267,721      582,053,971
Adjustments for:
Fair value of interest rate swaps                                                                       873,720        2,251,649
Deferred tax asset                                                                                    (607,179)        (758,055)
Deferred tax liability                                                                                6,139,373        4,998,374

NCI in respect of the above adjustments                                                               (616,418)        (102,479)
EPRA NAV                                                                                            860,057,217      588,443,460
Fully diluted number of shares                                                                      637,556,656      467,366,299
 Closing number of shares                                                                           637,493,798      467,366,299
 Effect of share options                                                                   37            62,858                -
EPRA NAV per share (euro cents)                                                                          134.90           125.91

36.RELATED PARTIES

PARENT AND ULTIMATE CONTROLLING PARTY

The group has no ultimate controlling party but is controlled by its ordinary shareholders in aggregate.

KEY MANAGEMENT - TRANSACTIONS

Year ended 30 June 2018
                                                                                                         IFRS 2
                                      Basic                  Short-term  Long-term                       option
Euro                 Role            salary         Benefits  incentive  incentive      Sub total       expense            Total
Morné Wilken(1)                     188,432          141,613                              330,045                        330,045
                     CEO            178,432          141,613          -          -        320,045             -          320,045
                     Former          10,000                -          -          -         10,000             -           10,000
                     NED
Malcolm Levy         CFO                  -                -          -          -              -       425,758          425,758
Jonathan Knight(2)   CIO             67,974                -          -          -         67,974       164,354          232,328
Ron Spencer          Chairman        30,000                -          -          -         30,000             -           30,000
Gideon Oosthuizen    NED             27,500                -          -          -         27,500             -           27,500
Jaco Jansen          NED             25,000                -          -          -         25,000             -           25,000
Pierre Goosen        NED             22,500                -          -          -         22,500             -           22,500
Glynnis Carthy       NED             27,500                -          -          -         27,500             -           27,500
Helen Cullen         Company         95,778                -          -          -         95,778        66,441          162,219
                     Secretary
Lukas Nakos(3)       Former               -          157,794          -          -        157,794             -          157,794
                     CEO
                                    484,684          299,407          -          -        784,091       656,553        1,440,644

(1) During the year, the group paid GBP25,000 (approximately EUR28,323) in relation to Morné Wilken's relocation. In addition, in order to secure the services of
    Morné Wilken on a full-time basis, the sum of GBP500,000 (approximately EUR564,250) was awarded and paid as recognition that he would forfeit in-the-
    money incentive scheme benefits by becoming CEO of MAS. This amount is repayable on a pro-rata basis should he cease to be employed by the
    company from 1 January 2018 and accordingly GBP16,667 (approximately EUR18,809) (GBP500,000 (approximately EUR564,250) divided by 30 months) is
    expensed monthly and recognised as a benefit paid to him.
(2) Jonathan Knight has a contract of employment with Corona Real Estate Partners Limited, a service provider to MAS Property Advisors Limited. The
    total remuneration paid to Corona in relation to services provided to MAS by Jonathan Knight was EUR130,284 (2017: EUR216,068). Jonathan Knight
    received a salary of EUR67,974 (2017: EUR68,232) from Corona.
(3) During January 2018 the Board of Directors approved an exit payment of GBP140,000 (EUR157,794) to Lukas Nakos.
  
Year ended 30 June 2017
                                                                                                            IFRS 2
                                        Basic                  Short-term        Long-term                  option
Euro                   Role            salary     Benefits      incentive        incentive   Sub total     expense         Total

Lukas Nakos            CEO            125,000            -        181,952                -     306,952           -       306,952
Malcolm Levy           CFO            117,656            -        170,580                -     288,236     149,237       437,473
Jonathan Knight        CIO             68,232            -         85,290                -     153,522      66,238       219,760
Ron Spencer            Chairman        30,000            -             -                 -      30,000           -        30,000
Gideon Oosthuizen      NED             27,500            -             -                 -      27,500           -        27,500
Jaco Jansen            NED             27,500            -             -                 -      27,500           -        27,500
Morné Wilken           NED             20,000            -             -                 -      20,000           -        20,000
Pierre Goosen          NED             20,000            -             -                 -      20,000           -        20,000
Glynnis Carthy         NED                  -            -             -                 -           -           -             -
Helen Cullen           Company         96,822            -         20,538                -     117,360      22,079       139,439
                       Secretary
                                      532,710            -        458,360                -     991,070     237,554     1,228,624

KEY MANAGEMENT - SHAREHOLDINGS
As at 30 June 2018

Euro                                                                      Direct        Indirect       Associate           Total

Morné Wilken                                                            284,039               -                -         284,039
Malcolm Levy                                                             11,633       4,000,000     1,568,928(2)       5,580,561
Jonathan Knight                                                         626,525       1,500,000                -       2,126,525
Ron Spencer                                                              12,061               -                -          12,061
Gideon Oosthuizen                                                             -      240,000(1)                -         240,000
Jaco Jansen                                                                   -               -                -               -
Pierre Goosen                                                                 -               -        46,679(2)          46,679
Glynnis Carthy                                                                -               -                -               -
Helen Cullen                                                             14,936         500,000                -         514,936
                                                                        949,194       6,240,000        1,615,607       8,804,801
(1) Associate company
(2) Non-beneficial to director

5,000,000 shares have been forfeited and cancelled during the year in respect of the geared share purchase plan, refer to
note 32. No new shares have been issued during the year to 30 June 2018 and the number of shares in the scheme at year
end is 7,850,000.

As at 30 June 2017

Euro                                                                    Direct        Indirect      Associate              Total

Lukas Nakos                                                            85,143       5,000,000         100,659(3)       5,185,802
Malcolm Levy                                                           11,633       4,000,000       1,568,928(3)       5,580,561
Jonathan Knight                                                       616,342       1,500,000                  -       2,116,342
Ron Spencer                                                            11,567               -                  -          11,567
Gideon Oosthuizen                                                           -      240,000(1)                  -         240,000
Jaco Jansen                                                                 -               -                  -               -
Morné Wilken                                                           61,804      250,280(2)                  -         312,084
Pierre Goosen                                                               -               -          44,766(3)          44,766
Glynnis Carthy                                                              -               -                  -               -
Helen Cullen                                                           14,656         500,000                  -         514,656
                                                                      801,145      11,490,280          1,714,353      14,005,778
(1) Associate company
(2) Associate family trust
(3) Non-beneficial to director

There has been no change in the shareholding of the directors or key management from 30 June 2018 to the date of
approval of these annual financial statements.

OTHER RELATED PARTY TRANSACTIONS:
                                                               Income/(expenses)                        Capitalised                            Balances
                                                                for the year ended                  for the year ended                  assets/(liabilities) as at
Euro                                             Note         30 June 2018       30 June 2017     30 June 2018       30 June 2017       30 June 2018      30 June 2017

NW Advisers
-  On-charged development costs                                          -              (293)        2,287,409         12,860,460                  -         (214,680)
-  Development management fee(1)                                 (682,957)        (1,684,723)                -                  -        (4,701,505)       (4,052,171)
                                                                 (682,957)        (1,685,016)        2,287,409         12,860,460        (4,701,505)       (4,266,851)

NW Holdings
-  Development profit participation fee(1)                     (1,042,368)        (6,078,256)                -                  -        (6,912,757)       (6,078,256)
                                                               (1,042,368)        (6,078,256)                -                  -        (6,912,757)       (6,078,256)

Corona
-- Legal and professional expenses                               (804,187)          (889,482)          132,549            176,266          (124,474)          (83,857)
                                                                 (804,187)          (889,482)          132,549            176,266          (124,474)          (83,857)

Artisan
-- On-charged administrative expenses                               46,946           (13,583)                -                  -                  -                 -
                                                                    46,946           (13,583)                -                  -                  -                 -
PKM Developments
-  Equity accounted investee                         20          3,568,925            178,397                -                  -         23,774,222        20,205,297
-  Preference shares - PKM Developments              29          7,514,384          1,134,245                -                  -        105,045,768       101,134,245
                                                                11,083,309          1,312,642                -                  -        128,819,990       121,339,542

Momats
-  Directors Fee and Legal and professional                         12,621                  -                -                  -              2,180                 -
   expenses
                                                                    12,621                  -                -                  -              2,180                 -

                                                                 8,613,364        (7,353,695)        2,419,958         13,036,726        117,083,434       110,910,578

(1)Differences between the income/(expense) and the corresponding receivable/(payable) related to foreign exchange movements recognised in other comprehensive income.

KEY MANAGEMENT

Key management consists of the executive and non-executive directors as well as the company secretary.

RELATED PARTY RELATIONSHIPS

ARTISAN

Artisan is a real estate management company, the board of which comprises four directors, two of which are common with 
MAS.

NW HOLDINGS

NW Holdings is a real estate development holding company and is a 60% owned subsidiary of Artisan. As such it is
controlled by Artisan. Refer to note 30.

NW ADVISERS

NW Advisers is a real estate developer and is a 100% owned subsidiary of New Waverley Holdings. As such it is controlled
by Artisan. Refer to note 30.

CORONA

Corona is a real estate management company with five staff members and is owned 100% by Jonathan Knight who is the
chief investment officer of the group.
 
Jonathan Knight has a contract of employment with Corona Real Estate Partners Limited, a service provider to MAS
Property Advisors Limited. The total remuneration paid to Corona in relation to services provided to MAS by Jonathan
Knight was EUR130,284 (2017: EUR216,068). Jonathan Knight received a salary of EUR67,974 (2017: EUR68,232) from Corona.

PKM DEVELOPMENTS

PKM Developments is an associate of the group and MAS owns 40% of the ordinary shares, refer to note 20.

In 2017, the group provided EUR100,000,000 to acquire 7.5% preference shares in PKM Developments, refer to note 29. The
group has committed to fund up to a further EUR250,000,000 over the next three years.

MOMATS

Momats provides BVI corporate services and is a director of MAS BVI (Holdings) Limited and MAS CEE Investments Limited,
100% owned subsidiaries of the company.

37. EARNINGS PER SHARE AND DILUTED EARNINGS PER SHARE

BASIC AND DILUTED EARNINGS PER SHARE

ACCOUNTING POLICY

The group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the company by the weighted average number of ordinary
shares outstanding during the period, adjusted for own shares held.

Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.

DISCLOSURE

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

PROFIT ATTRIBUTABLE TO ORDINARY SHAREHOLDERS
                                                                                                     Year ended       Year ended
Euro                                                                                               30 June 2018     30 June 2017

Profit for the year attributable to the owners of the group                                          16,856,306       33,587,948
WEIGHTED-AVERAGE NUMBER OF ORDINARY SHARES

                                                                                                     Year ended       Year ended
                                                                                         Note      30 June 2018     30 June 2017

Opening issued ordinary shares                                                             24       467,366,299      348,625,219
Effect of shares issued for capital raise                                                           105,128,974       44,608,360
Effect of shares issued for scrip distributions                                                       5,319,593        5,023,402
Weighted-average number of ordinary shares                                                          577,814,866      398,256,981

The shares issued as part of the geared share purchase plans are not included in the calculation of the weighted-average
number of ordinary shares as they are deemed to be unissued (treasury shares).

BASIC EARNINGS PER SHARE
                                                                                                     Year ended       Year ended
                                                                                                   30 June 2018     30 June 2017

Profit attributable to ordinary shareholders (euro)                                                  16,856,306       33,587,948
Weighted-average number of ordinary shares                                                          577,814,866      398,256,981
Basic earnings per shares (euro cents)                                                                     2.92             8.43

DILUTED EARNINGS PER SHARE

The calculation of diluted earnings per share has been based on the following weighted-average number of ordinary shares
outstanding after adjusting for the effects of all dilutive potential ordinary shares.

                                                                                                     Year ended       Year ended
                                                                                                   30 June 2018     30 June 2017

Weighted-average number of ordinary shares (basic)                                                  577,814,866      398,256,981
Effect of share options                                                                                  62,858                -
Weighted-average number of ordinary shares (diluted)                                                577,877,724      398,256,981

DILUTED EARNINGS PER SHARE

                                                                                                     Year ended       Year ended
                                                                                                   30 June 2018     30 June 2017

Profit attributable to ordinary shareholders (euro)                                                  16,856,306       33,587,948
Weighted-average number of ordinary shares                                                          577,877,724      398,256,981
Diluted earnings per share (euro cents)                                                                    2.92             8.43 

At 30 June 2018, options on 5,080,000 shares were excluded from the diluted weighted-average number of ordinary shares
because their effect would have been anti-dilutive.

The average market value of the company's shares for the purpose of calculating the dilutive effect of the share options
was based on quoted market prices for the period during which the options were outstanding.

HEADLINE EARNINGS AND HEADLINE EARNINGS PER SHARE

ACCOUNTING POLICY

Headline earnings is derived from basic earnings adjusted for re-measurements that relate to the capital platform of the
group per Circular 4/2018 issued by the South African Institute of Chartered Accountants.

DISCLOSURE

Headline earnings and headline earnings per share was as follows:

                                                                 Year ended 30 June 2018          Year ended 30 June 2017
Euro                                                  Note             Gross              Net             Gross              Net

Profit attributable to ordinary shareholders                       16,856,306      16,856,306        33,587,948       33,587,948
Adjusted for:
Fair value loss/(gain) on investment property           17            721,387         232,813      (36,763,196)     (32,995,314)
Fair value gain on investment property in                         (6,179,920)     (3,878,272)                 -                -
associate
Fair value gain on investment property held for         23        (2,766,206)     (2,766,206)         (786,795)                -
sale
Goodwill impairment                                     16          1,274,346       1,274,346                 -                -
Headline earnings                                                   9,905,913      11,718,987       (3,962,043)        (592,634)

Basic headline earnings per share
Weighted-average number of ordinary shares                        577,814,866     577,814,866       398,256,981      398,256,981
(basic)
Headline earnings per share                                              1.71            2.03            (0.99)             0.15
(euro cents)

Diluted headline earnings per share
Weighted-average number of ordinary shares                        577,877,724     577,877,724       398,256,981      398,256,981
(diluted)
Diluted headline earnings per share (euro cents)                         1.71            2.03            (0.99)             0.15

The JSE Listings Requirements require the calculation of headline earnings and diluted headline earnings per share and the
disclosure of a detailed reconciliation of headline earnings to the earnings numbers used in the calculation of basic earnings
per share, as required by IAS 33 - 'Earnings per Share'. Disclosure of headline earnings is not an IFRS requirement. The
directors do not use headline earnings or headline earnings per share in their analysis of the group's performance, and do
not consider it to be a useful or relevant metric for the group. The directors make no reference to headline earnings or
headline earnings per share in their commentaries, instead, the directors use distributable earnings as a measure, refer to
note 35.

38. SIGNIFICANT SHAREHOLDERS

The significant shareholders of the group are:
                                                                                                         Number of Percentage of
                                                                                                      shares as at  shares as at
                                                                                                      30 June 2018  30 June 2018

Attacq Limited                                                                                         146,818,251        22.75%
Argosy                                                                                                  55,841,264         8.65%
Public Investment Corporation                                                                           49,504,171         7.67%
                                                                                                       252,163,686        39.07%


                                                                                                        Number of  Percentage of
                                                                                                     shares as at   shares as at
                                                                                                     30 June 2017   30 June 2017

Attacq Limited                                                                                        146,818,251         30.57%
Argosy                                                                                                 58,550,056         12.19%
STANLIB Asset Management                                                                               35,577,283          7.40%
                                                                                                      240,945,590         50.16%

39. CAPITAL COMMITMENTS

INVENTORY PROPERTY

The group entered into contracts for the construction and development of the New Waverley office, refer to note 18. These
contracts will give rise to committed expenses of GBP53,092,275 (approximately EUR59,914,632) (2017: GBP69,328,267
(approximately EUR78,840,105) over the next 12 months, which will be capitalised as part of the New Waverley development.

The group entered into contracts for the construction and development of Travelodge at Langley. These contracts will
give rise to committed expenses of GBP4,387,579 (approximately EUR4,951,383) (2017: GBPnil) over the next 12 months, which will be
capitalised as part of the Langley development.

INVESTMENT PROPERTY

The group entered into a sale and purchase agreement ("SPA") to acquire the entire share capital of a special purpose
vehicle that owns the retail centre known as Militari Shopping Centre ("Militari"), located in Bucharest, Romania. The sale was
completed on 5 July 2018 for a purchase price of EUR95,000,000, only EUR93,800,000 is payable as at the reporting date and
the remaining amount of EUR1,200,000 is payable upon fulfilment of certain conditions precedent to the SPA.

The group entered into a sale and purchase agreement ("SPA") to acquire a retail park and a neighbourhood value centre,
both located in Braunschweig, Germany. The sale was completed on 1 August 2018 for a purchase price of EUR25,000,000.

INVESTMENT IN EQUITY ACCOUNTED INVESTEE

The group has committed to fund PKM Developments through 7.5% cumulative preference shares issued by PKM
Developments. During the current year, the group committed to funding up to a total of EUR350,000,000 (2017:
EUR350,000,000). The outstanding commitment at the reporting date was EUR250,000,000 (2017: EUR100,000,000) which is
expected to be funded over the next 3 years. The loan commitments have been reviewed and are not considered to be 
onerous at the reporting date.

40. EVENTS AFTER THE REPORTING DATE

ACQUISITION OF INVESTMENT PROPERTY

On 5 July 2018 the group acquired the share capital of a special purpose vehicle that owns the retail centre known as Militari
Shopping Centre ("Militari") for the purchase price of EUR95,000,000 Militari is located in Bucharest, Romania and has a
passing rent of EUR7,300,000.

On 1 August 2018 the group acquired a retail park and a neighbourhood value centre, both located in Braunschweig,
Germany for the purchase price of EUR25,000,000. Braunschweig has a passing rent of EUR1,510,000.

41. OTHER JSE DISCLOSURES

UNAUDITED PROPERTY PROFILE
                                                                                                               Passing
                                                                                           Rentable  Vacancy  rent per
                                                                                               area     area       sqm
Property                      Property address                                 Type           (sqm)    (sqm)    (Euro)      WALT

Bulgaria
Galleria portfolio - Burgas   Yanko Komitov Str. 6, Burgas, Bulgaria           Retail        38,222   2,810      138.4       5.9
Galleria portfolio - Stara    Ulitsa Han Asparuh 30, Stara Zagora,             Retail        25,147   2,273       85.1       3.8
Zagora                        Bulgaria
Germany
Bruchsal                      Kaiserstrasse 66, Bruchsal, Germany              Retail         7,103       -      205.8       4.1
Donaueschingen                Bregstrasse, Donauschingen, Germany              Retail         8,235       -       87.4      10.6
Edeka portfolio - Miha        Heidelberger Straße 90, Berlin, Germany          Retail         1,674       -      173.8      13.2
Edeka portfolio - Miha        Flankenschnze 32, Berlin, Germany                Retail         1,432       -      170.4      13.2
Edeka portfolio - Miha        Waldring 190, 110, Haldensleben, Germany         Retail         1,470       -       88.4      13.2
Edeka portfolio - Miha        Bahnhofstraße 12, Holzminden, Germany            Retail         1,924       -      129.4      13.2
Edeka portfolio - Miha        Alte Poststraße 1, Müllrose, Germany             Retail         1,676       -      155.7      13.2
Edeka portfolio - Miha        Erlenweg 3, Nebra, Germany                       Retail         1,423       -       98.4      13.2
Edeka portfolio - Miha        Händelstraße 1-2, Zepernick-Panketal,            Retail         1,656       -      140.7      13.2
                              Germany
Edeka portfolio - Miha        Rudolf-Breitscheid-Straße 193, Potsdam,          Retail         2,012       -      119.9      10.2
                              Germany
Edeka portfolio - Miha        Platz des Friedens 10, Sandersdorf,              Retail         1,630       -      130.7      13.2
                              Germany
Edeka portfolio - Miha        Goethepromenade 13, Gröningen,                   Retail         1,170       -       78.6      13.3
                              Germany
Edeka portfolio - Miha        Adolf-Meyer-Straße 15, Neinburg,                 Retail           989       -      100.1      13.3
                              Germany
Edeka portfolio - Miha        Marktstraße 6, Oldisleben, Germany               Retail           965       -      113.0      13.3
Edeka portfolio - Miha        Hallesche Straße 51 A, Raguhn, Germany           Retail           859       -      101.3      13.3
Edeka portfolio - Miha        Bahnhofstraße 21, Sangerhausen,                  Retail           888       -      102.5      13.3
                              Germany
Edeka portfolio - Miha        Haupstraße 29, Thale-Neinstedt, Germany          Retail           709       -      112.8      13.3
Edeka portfolio - Miha        Am Wiesenhof 147-148, Wilelmshaven,              Retail           995       -       85.4      13.3
                              Germany
Edeka portfolio - Miha        August-Bebel-Damm 25, Magdeburg,                 Retail         8,428       -       38.0      13.3
                              Germany
Edeka portfolio - Miha        Otto-von-Guericke-Straße 1A,                     Retail         6,455       -       46.5      13.3
                              Magdeburg, Germany
Edeka portfolio - Miha        Westringstraße 179, 181, 193, Dölzig-            Retail         9,167       -       40.9      13.3
                              Schkeuditz, Germany
Edeka portfolio - Miha        Vor dem Weiherbusch 9, Soltau-                   Retail         5,442       -       36.8      13.3
                              Tetendorf, Germany
Edeka portfolio - Thales      Alte Schmelze 23, 65201 Wiesbaden                Retail        11,502       -      105.2      12.5
Edeka portfolio - Thales      In der Teichmatt 6, 79689 Maulburg               Retail         4,435       -       78.9      12.5
Edeka portfolio - Thales      Rudolf-Diesel-Strasse 6, 72250                   Retail         5,908     925       74.5      12.5
                              Freudenstadt
Gotha                         Schubert-strsse 20, Gotha, Germany               Retail        9,442        -      105.0       8.0

Heppenheim retail park        Tiergartenstrasse 7, Heppenheim,                 Retail        16,978       -      111.1       9.5
                              Germany
Lehrte                        Germaniastrasse 18, Lehrte, Germany              Retail         9,203       -       82.5       8.6
Munich                        Wasserburger, Landstraße 133, Munich             Industrial    13,090       -       67.7       5.5
Toom Portfolio -              Eisenbahnstrasse 77, Frankenthal,                Retail         7,452       -       73.8      10.8
Frankenthal                   Germany
Toom Portfolio -              Vollmerhauser Strasse 36, Gummersbach,           Retail        10,937       -      100.6      10.8
Gummersbach                   Germany
Toom Portfolio -              Hallesche Strasse 141, Nordhausen,               Retail         6,902       -       79.7      10.8
Nordhausen                    Germany

Poland
Nova Park                     Przemyslowa 2, 66-400 Gorzow                     Retail        32,683   1,201      179.9       4.3
                              Wielkopolski, Poland

Switzerland
Zurich                        Mulbachstrasse 41, Zurich, Switzerland           Logistics      5,699       -      197.8       6.3

United Kingdom
Adagio                        New Waverley, Edinburgh (NW), United             Hotel/retail   8,499     880      180.3      18.4
                              Kingdom
Braehead                      Old Govan Road, Glasgow (BL), United             Industrial    18,476       -       42.6       6.6
                              Kingdom
Chippenham                    Langley Park, Chippenham (CL), United            Industrial    39,839   3,476       46.8       7.1
                              Kingdom
Langley park                  Langley Park, Chippenham (LPL), United           Residential/   9,184   5,751        9.2       1.0
                              Kingdom                                          Hotel
Whitbread and Arches          New Waverley, Edinburgh (NW), United             Hotel/retail   8,868       -      239.8      25.2
                              Kingdom
New Uberior House             9 Earl Grey Street, Edinburgh, United            Office        14,718       -      318.1       7.5
                              Kingdom
North Street Quarter          Phoenix Works, Lewes, United Kingdom             Residential   15,273   7,112       22.6       0.8


UNAUDITED PROPERTY PROFILE

UNAUDITED GEOGRAPHICAL PROFILE
                                                                                                                    Passing rent
                                                                  Rentable area    Rental income    Vacancy area         per sqm
Jurisdiction                                                              (sqm)           (Euro)           (sqm)          (Euro)

Bulgaria                                                                 63,369        8,162,439           5,083           117.3
Germany                                                                 162,151       14,758,093             925           100.2
Poland                                                                   32,683        5,887,000           1,201           179.9
Switzerland                                                               5,699        1,163,780               -           197.8
UK                                                                      114,935        7,481,201          17,551            98.0
                                                                        378,837       37,452,513          24,760        110.8(1)
UNAUDITED SECTOR PROFILE
                                                                                                                    Passing rent
                                                                  Rentable area    Rental income    Vacancy area         per sqm
Sector                                                                    (sqm)           (Euro)           (sqm)          (Euro)

Hotel                                                                    15,272        3,259,753               -           216.3
Industrial                                                               65,299        2,830,342           8,542            38.7
Logistics                                                                18,789        2,049,472               -           107.1
Office                                                                   16,918          757,736             685           285.2
Residential                                                              16,099          370,870           7,444            19.2
Retail                                                                  246,460       28,184,340           8,089           117.6
                                                                        378,837       37,452,513          24,760        110.8(1)
(1) Total rentable area divided by total passing rent.


UNAUDITED TENANT PROFILE

Category                                                                                                                  Number

A                                                                                                                             76
B                                                                                                                            151
C                                                                                                                            439
                                                                                                                             666
"A": large national tenants, large listed tenants, government and major franchisees;
"B": national tenants, listed tenants, franchisees, medium to large professional firms; and
"C": other

UNAUDITED PORTFOLIO YIELD

Yield                                                                                                                          %

Average annualised property yield                                                                                           7.17

Rental escalations are predominantly index linked or as a percentage of inflation and are not reliably determinable.
Accordingly, the group has not provided a weighted average rental escalation profile.

SHAREHOLDING DISCLOSURES
MAS Real Estate Inc. (the "company")

                                                                               No of Percentage of                 Percentage of
Public and non-public                                                  shareholders          total   No of shares          total

Public                                                                       10,033         99.84%    481,870,746         75.60%
Non-public
 Significant shareholders                                                         1          0.01%    146,818,251         22.75%
 Directors and their associates                                                  11          0.11%      8,804,801          1.36%
 Share scheme participants                                                        4          0.04%      7,850,000          0.29%
Total shareholders                                                           10,049           100%    645,343,798           100%

MAJOR SHAREHOLDERS

                                                                                                        Number of  Percentage of
                                                                                                     shares as at   shares as at
Name                                                                                                 30 June 2018   30 June 2018

Attacq Limited                                                                                        146,818,251         22.75%
Argosy                                                                                                 55,841,264          8.65%
Public Investment Corporation                                                                          49,504,171          7.67%
                                                                                                      252,163,686         39.07%


                                                                                                        Number of  Percentage of
                                                                                                     shares as at   shares as at
Name                                                                                                 30 June 2017   30 June 2017

Attacq Limited                                                                                        146,818,251         30.57%
Argosy                                                                                                 58,550,056         12.19%
STANLIB Asset Management                                                                               35,577,283          7.40%
                                                                                                      240,945,590         50.16%

COMPANY INFORMATION AND ADVISORS

REGISTERED OFFICE IN THE BVI              REGISTRAR/ TRANSFER SECRETARIES   PROPERTY VALUERS
MAS Real Estate Inc.
Craigmuir Chambers                        BRITISH VIRGIN ISLANDS            BULGARIA
Road Town, Tortola VG1110                 Computershare Investor Services   Forton international (Cushman &
British Virgin Islands                    (BVI) Limited                     Wakefield LLP)
                                          Registration number 003287V       Polygraphia Office Center
CORRESPONDENCE ADDRESS                    Woodbourne Hall                   47A Tsarigradsko Shose Blvd
MAS Real Estate Inc.                      PO Box 3162                       1124 Sofia
2nd Floor                                 Road Town, Tortola                Bulgaria
Clarendon House                           British Virgin Islands
Victoria Street                                                             GERMANY
Douglas                                   SOUTH AFRICA                      Cushman & Wakefield LLP
Isle of Man                               Computershare Investor Services   Rathenauplatz 1
IM1 2LN                                   Proprietary Limited               D-60313 Frankfurt am Main 
                                          Registration number               Germany
COMPANY SECRETARY                         2004/003647/07
Helen Cullen ACIS                         Rosebank Towers                   JLL
(Associate of the Institute of            15 Biermann Avenue                Wilhelm-Leuschner-Strasse 78
Chartered Secretaries &                   Rosebank, 2196                    D-60329 Frankfurt am Main
Administrators)                           PO Box 61051 Marshalltown 2107    Germany

INDEPENDENT AUDITOR                       DEPOSITORY                        POLAND
KPMG Audit LLC                            Computershare Investor Services   Cushmann & Wakefeild LLP
Heritage Court                            PLC                               Metropolitan
41 Athol Street                           The Pavilions                     Plac Pilsudskiego 1
Douglas                                   Bridgewater Road                  Warsaw, 00-078
Isle of Man                               Bristol,                          Poland
IM99 1HN                                  BS13 8AE
                                                                            ROMANIA
JSE SPONSOR                                                                 Cushmann & Wakefeild LLP
Java Capital                                                                Banu Antonache Street
2nd Floor                                                                   No 40-44, 3rd Floor Sector 1,
6a Sandown Valley Crescent                                                  Bucharest
Sandown
Sandton, 2196                                                               SWITZERLAND
Johannesburg                                                                Wüest & Partner AG
South Africa                                                                Bleicherweg 5
                                                                            CH-8001
                                                                            Zürich
LUXEMBOURG STOCK EXCHANGE LISTING AGENT                                     Switzerland
M Partners
56, rue Charles Martel                                                      UK
L-2134 Luxembourg                                                           CBRE
Grand Duchy of Luxembourg                                                   7 Castle Street, Edinburgh, 
                                                                            EH2 3AH
LUXEMBOURG ADMINISTRATOR
Hoche Partner Trust Services SA                                             GVA Grimley Limited
121, Avenue de la Faiencerie                                                Quayside House
L-1511 Luxembourg                                                           127 Fountainbridge
Grand Duchy of Luxembourg                                                   Edinburgh, EH3 9QG

BVI ADMINISTRATOR                                                           Montagu Evans LLP
Harneys Corporate and Trust                                                 4th Floor Exchange Tower,
Services Limited                                                            19 Canning Street, Edinburgh,
Craigmuir Chambers                                                          EH3 8EG
Road Town, Tortola VG1110
British Virgin Islands

SHAREHOLDER INFORMATION

Registered in the British Virgin Islands      Company number 1750199
JSE share code                                                   MSP
SEDOL (XLUX)                                                 B96VLJ5
SEDOL (JSE)                                                  B96TSD2
ISIN                                                    VGG5884M1041
LEI code                                        213800T1TZPGQ7HS4Q13
Number of shares in issue as at 30 June 2018             645,343,798

DEFINITIONS AND ABBREVIATIONS

BVI                               British Virgin Islands

CEE                               Central and Eastern Europe

CGU                               Cash-generating unit

Company                           MAS Real Estate Inc.

Development property              Property that is being developed in order to create income-producing property held for
                                  the purpose of earning a better yield than by acquiring standing property

Direct investment result          The underlying earnings of the group that derive from investment into property and
                                  related assets and entities. This includes: net rental income, dividends received, finance
                                  income on preference shares, and the related taxation and non-controlling interest
                                  adjustments. This excludes: profit on sales of inventory property, exchange differences,
                                  changes in fair value, goodwill impairment, investment/transaction expenses not
                                  capitalised, related taxation and non-controlling interest adjustments, and deferred
                                  taxation. Other adjustments may be made in order to reflect the underlying earnings of
                                  the group.

Distributable earnings            Distributable earnings is the Direct investment result, adjusted for company specific
                                  adjustments made to reflect the underlying earnings of the group. This final number is
                                  adjusted for the dilutionary impact of shares issued during the period.

Distributable earnings per share  Distributable earnings before the impact of shares issued during the period divided by
                                  the basic weighted average number of shares in issue.

Distribution per share            The distribution per share to be paid to shareholders as determined by the directors at
                                  their discretion. The group's policy is to pay out all distributable earnings per share on a 
                                  semi-annual basis, as well as capital or other profits as the directors may, at their
                                  discretion, determine.

EPRA                              European Public Real Estate Association

EPRA Net Asset Value              IFRS net assets adjusted for the dilutive impact of share options, deferred taxation on
                                  property and derivative valuations and the mark-to-market of effective cash flow hedges
                                  and related adjustments, as prescribed by EPRA.

EPRA NAV per share                EPRA Net Asset Value divided by the IFRS diluted number of shares in issue at the end
                                  of the period

ERV                               Estimated rental value

FVTPL                             Fair value through profit and loss

GLA                               Gross leasable area

Group                             MAS Real Estate Inc. and its subsidiaries

IASB                              International Accounting Standards Board

IFRS                              International Financial Reporting Standards as issued by the IASB

IFRS NAV per share                IFRS Net Asset Value divided by the IFRS basic number of shares in issue at the end of
                                  the period. For clarity ths excludes the geared share purchase plan shares

Income-generating property        Property that is currently producing income and held for the purpose of earning a yield.
                                  There may be further asset management opportunities on these properties, which could
                                  further enhance income returns.

Indirect investment result        The earnings of the group that do not relate to underlying operational activities. This
                                  includes the earnings excluded from the Direct investment result, including profit on sales
                                  of inventory property, exchange differences, changes in fair value, goodwill impairment,
                                  investment/transaction expenses not capitalised, related taxation and non-controlling
                                  interest adjustments, and deferred taxation.

Investment property               Income-generating property, Development property and Land-Bank

IOM                               Isle of Man

JSE                               Johannesburg Stock Exchange

Land bank                         Land plots held for schemes that have not yet commenced and residential developments

Land bank and inventory           Land plots held for schemes that have not yet commenced, residential developments
                                  and Inventory property

Lease incentives                  Incentives offered to lessees to enter into a lease, typically in the form of a rent-free
                                  period or cash contribution towards fit-out costs

Loan to value (LTV)               Loan to value (LTV) is the ratio of the nominal value of debt net of cash and equivalents
                                  to the aggregate value of property assets, including investment property held for sale,
                                  equity accounted investments, preference share investments and listed investments
                                  (REIT portfolio).

LuxSE                             Luxembourg Stock Exchange

Median daily share volume         The median number of shares traded per day during the financial period on the JSE

NAV                               Net asset value

PKM Developments                  PKM Development Limited

REIT                              Investment in listed real estate equity securities

Scrip distribution                Distributions elected to be received in the form of shares in the company, typically paid
                                  as a return of capital

WE                                Western Europe

WALT                              Weighted average lease term across the portfolio weighted by passing rent 

WACD                              Weighted average cost of debt

Date: 07/09/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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