Stock Exchange News Service

Condensed consolidated interim financial statements 
 - six-month period ended 31 December 2017

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

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
SIX-MONTH PERIOD ENDED 31 DECEMBER 2017

HIGHLIGHTS

DISTRIBUTION PER SHARE OF 3.58 EURO CENTS PROPOSED

9% INCREASE IN EPRA NAV PER SHARE

STRONG BALANCE SHEET EUR387M OF EQUITY AVAILABLE FOR INVESTMENT

GROWING PIPELINE OF INVESTMENT AND DEVELOPMENT OPPORTUNITIES

DIRECTORS' REPORT

DISTRIBUTABLE EARNINGS

The group achieved distributable earnings of EUR17.1 million for the six month reporting period, a growth of
98% relative to the comparative period in the previous financial year. This improvement in distributable earnings
was driven by the full period effect of accretive acquisitions, completion of developments and the deployment of
capital into PKM Developments Limited. The impact of the capital raised in 2017 has a dilutive impact on
the per share earnings growth, until the capital raised is deployed into the income-generating and development
pipeline.

DISTRIBUTION

The Board of Directors has proposed a distribution of 3.58 euro cents per share in respect of the first half of the
2018 financial year, which includes a supplement of 0.88 euro cents per share from reserves. This per share
distribution represents an increase of 34.6% over the comparative period in the previous financial year.
  
Shareholders continue to have the option to receive the distribution in cash or as a return of capital by way of
an issue of new shares. Further details regarding the distribution will follow in due course.
  
As the group pursues various earnings accretive property investments and developments, both directly and indirectly through PKM
Developments, the board will continue to consider distributing retained income, capital and other profits
during forthcoming financial periods to produce an even distribution per share growth profile during this transition period.

CAPITAL MANAGEMENT

Mitigating the group's future funding obligations in relation to PKM Developments has been a strategic
priority. Accordingly, 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 the timeline towards draw down of funding commitments by PKM Developments, the group has
made investments in a portfolio of liquid European REITs, totalling circa EUR200 million at period end, with a
predominantly retail focus. This strategy enables the group to:

-  generate a return on funds earmarked for PKM Developments before drawdown, compared to
   the negative euro interest rates on cash;
-  efficiently match the asset/liability profile;
-  gain access to a collateral pool for a debt facility at low margins that could be used to act quickly to
   secure investment opportunities and to efficiently manage the capital requirements of the group going forward; and
-  gain exposure to high quality positions in investments with similar risk exposures.

These REIT investments will be disposed of in the periods ahead as the drawdowns for the PKM Developments are made.

INCOME-GENERATING PORTFOLIO

Recycling capital out of mature assets is a strategic priority. In Germany, the Aldi portfolio has been disposed of in
its entirety, together with a non-core office building, all at a profit to book value. Attractive offers for
components of the New Waverley development have also been received, facilitating the potential to recycle
capital from areas where value has been created and prices are high to better yielding opportunities that allow
the group to leverage its ability to asset manage and create value from such assets.
  
The acquisition pipeline under due diligence, across both western Europe and CEE, totals in excess of EUR400
million, significantly up from EUR150 million as reported in November 2017. Substantial acquisitions are expected
to complete in the next six months.

DEVELOPMENTS AND EXTENSIONS 

NEW WAVERLEY, EDINBURGH, SCOTLAND

The office component of the New Waverley development, pre-let to the UK Government on a 25-year lease,
was forward-sold under a funding agreement to Legal and General for approximately EUR23.5 million, with
further development profits to be paid upon completion of the construction.
The transaction reflects the strong income stream, covenant strength and rare prime city centre location
afforded by the New Waverley development. The risk-free nature of the income stream from the UK
Government lease and guarantee attracted significant interest from large institutional investors. The
disposal facilitates the recycling of capital into further opportunities as part of the group's stated investment
and growth strategy. The last remaining undeveloped component of New Waverley is the residential element. Proposals from residential
developers have been received and are currently being reviewed and compared against in-house delivery options.

LANGLEY PARK, CHIPPENHAM, UK

The development site with residential planning consent at Langley Park, in Chippenham, UK, is in the process of
being sold and initial offers from housebuilders have been received. The construction of the hotel, pre-let to
Travelodge, will also commence shortly together with the sale of the supermarket land site to Aldi. This will
complete the acquisition business plan for this property, with strong income continuing to be generated from
tenants, including Siemens, on the adjacent Technology Park, where further extensions are now under consideration.

GALLERIA PORTFOLIO, BULGARIA (PRIME KAPITAL INVESTMENT JV)

In response to strong performance and tenant demand, a 15,000 square metre GLA extension and a
reconfiguration are being considered in relation to Galleria Burgas (37,500 square metre GLA pre-extension). The
extension will increase the fashion and leisure offering and consolidate the mall's dominance in its catchment area
of approximately 480,000 people within 60 minutes' drive (supplemented by a significant number of tourists during the summer
holiday season, as the city is near the most popular Black Sea resorts on the Bulgarian coast). A major refurbishment and reconfiguration is
also planned to improve the design and commercial layout of Galleria Stara Zagora (21,300 square metre GLA), the only dominent mall in 
Stara Zagora.
 
NOVA PARK SHOPPING MALL, GORZÓW, POLAND (PRIME KAPITAL INVESTMENT JV)

An adjacent land plot was acquired, and detailed design work is underway, to extend the 32,600 square metre
GLA regional mall to consolidate its dominant position in its catchment area of 460,000 people within 60
minutes' drive, enhance footfall and add further to net operating income. The planned extension of approximately 7,000 square 
metres of GLA includes a cinema as well as additional fashion and leisure offering.

PKM DEVELOPMENTS

The secured development pipeline in CEE amounted to approximately EUR785 million, as at the trading update issued in 
November 2017. After this date PKM Developments has completed the first three Kaufland convenience value centre extensions, 
made substantial positive progress in relation to planning, permitting and leasing of the retail developments 
(super-regional and regional malls and convenience value centre developments), and significantly advanced the 
planning and design of the two residential developments in the fast growing Bucharest market. However, substantial regulatory 
difficulties were encounted with the development process of Emonika in Slovenia. PKM Developments has consequently informed its 
counterparties during February 2018 of its decision to indefinitely suspend its development efforts in relation to  the project. 
Further to this, PKM Developments decided that it was prudent to remove this project (approximately EUR290 million) from its secured 
development pipeline. The decision is not expected to have an impact on MAS' distribution growth targets communicated to the market.
Further details on the development pipeline are provided below. 

EMONIKA MIXED USE PROJECT

As previously reported to the market, PKM Developments conditioned its payment obligations to the seller on
finalising various outstanding regulatory and related issues with the Slovenian Railways ("SZ"), the Municipality of
Ljubljana and the Republic of Slovenia. Although in-principle commercial agreement was reached with SZ, and
despite continuing encouraging progress on various fronts, it became evident in January 2018 that certain
regulatory issues were insurmountable. The resulting position left matters on a footing that did not meet the minimum
commercial and other requirements of all the parties. As a result, PKM Developments took the decision to
suspend further work on the project to focus its attention elsewhere. Since the development was structured to limit
costs in case of failure to resolve regulatory issues, the current potential aborted costs are expected to be
limited to approximately EUR1.5 million. MAS' share of this is approximately EUR600,000.

REDEVELOPMENT OF ERA SHOPPING PARK IASI INTO MALL OF MOLDOVA, A SUPER-REGIONAL MALL

As noted in the November trading update and following on from the acquisition of the senior secured debt,
PKM Developments acquired the entire equity interests of the former indirect owners of Era Shopping Park
Iasi. The intention is to redevelop the asset into the planned 100,000 square metre GLA super-regional Mall of
Moldova with an extensive retail and leisure offering, making it the largest retail and leisure development in
Romania outside Bucharest. The acquisition of the equity interests has accelerated the redevelopment
timetable anticipated at the time of the acquisition of the senior debt, bringing forward the expected
opening of the enlarged centre to the end of the 2019 calendar year. Retailer interest in the planned redevelopment
is exceptionally strong, design work is advanced, and the permitting process is underway.

ARGES MALL

A lease agreement has been concluded with Carrefour to anchor the 50,000 square metre GLA, regionally dominant shopping mall
that PKM Developments plans to develop in a central, high density location in Pitesti, Romania. Several
other major tenants expressed strong interest in the planned retail consolidation for the Pitesti and wider
Arges region. Work is ongoing in relation to permitting.

DAMBOVITA MALL

Permitting is underway in respect of the 31,000 square metre GLA regional shopping mall, 
in Targoviste, Romania, the first mall in the Dambovita county. This forms part of, and is complemented by, 
a wider urban regeneration project undertaken by the local authorities within 2 km of the city centre, in a 
densely populated residential area.

PLOIESTI VALUE CENTRE

As previously reported, PKM Developments plans to develop a 26,500 square metre GLA retail value
centre with a high concentration of anchor tenants on a plot of land in a densely populated residential area in
close proximity to the city's main train station, tram station and bus station with high visibility and very good road
access. The land acquisition was placed at risk due to one of the sellers becoming insolvent. At the date of this
report, this matter has been resolved in favour of PKM Developments, the creditors of the insolvent vendor
having approved the proposed restructuring of the transaction and the sale of land to PKM Developments.
Interest from anchor tenants is strong and planning is currently ongoing.

DN1 VALUE CENTRE

Leasing is progressing well in relation to the 28,000 square metre GLA convenience value extension of the
existing Hornbach and planned Lidl units in Balotesti, a rapidly developing affluent residential area, approximately
25km north of Bucharest. Agreements have been concluded with anchor tenants such as Carrefour
(hypermarket), Jysk, Noriel, Pepco and Animax. The permitting process is underway but there are certain
remaining planning risks that may cause the opening date of the first phase of the development to be
delayed beyond the end of the 2018 calendar year.

BAIA MARE VALUE CENTRE

Leasing is progressing well in relation to the approximately 22,000 square metre GLA development. Agreements
have been entered into with Carrefour (hypermarket) and Pepco. Permitting is ongoing and the centre is expected
to open for trade by the end of the 2018 calendar year, as scheduled.

ROMAN VALUE CENTRE

PKM Developments completed the acquisition of the 6.1 hectares of land in Roman, Romania (as of January
2018). In response to positive feedback from prospective tenants, the planned development was increased to 19,000
square metres of GLA. Lease agreements have been concluded with Carrefour (the first hypermarket in
town) and Pepco. Permitting is ongoing and the centre is expected to open for trade by the end of the 2018
calendar year, as scheduled.

KAUFLAND VALUE CENTRE EXTENSIONS (30,500 SQUARE METRES AGGREGATE GLA)

The first three convenience value extensions of existing Kaufland mini-hypermarkets opened for trade
by the end of the 2017 calendar year. A fourth development opened in February 2018 and an additional three
developments are expected to be completed by the end of 2018.

AVALON ESTATE

As previously reported, Prime Kapital is planning to develop an upmarket modern housing estate near the new
developing central business district and commercial centre in the affluent, northern part of Bucharest. Since the
date of the last report, substantial additional detailed design optimisation work with regard to the planned
individual units has been undertaken and the number of planned units was increased to a total of 767 (previously
550) high quality houses, townhouses and apartments. As a result, the permitting process is extended, and it
is currently estimated that the first units will be available for occupation in the second quarter of the 2019 
calendar year.

MARMURA APARTMENTS

Zoning is in progress in respect of the 1.5-hectare site in the expanding north-west of Bucharest where a
large-scale residential block development with up to 380 apartments is planned.

PROSPECTS

MAS benefits from a strong balance sheet, access to a development business with demonstrated
competitive advantages in identifying and executing exceptional opportunities, a strong development
and acquisition pipeline and remains focussed on meeting its distribution growth targets of 30% per annum until
June 2019. Given the substantial acquisition and development pipeline in place and further opportunities
being pursued and on the assumption that a stable macro-economic environment will prevail, that no major
corporate failures will occur, that the investments and developments reported on above will progress in
accordance with expectations, that budgeted rental income based on contractual escalations and market
related renewals are collected the board is confident that the group is well placed to achieve its targeted
distribution per share growth of 30% per annum until June 2019 (this forecast has not been audited or
reviewed by our auditors). At the same time, the board is cognisant of heated property markets fuelled by
liquidity and owners and developers eager to dispose of over-rented properties at yields that are high by
historical standards. As a result, the board is determined to retain investment discipline in relation to
pursuing only quality developments and acquisitions with value-add potential and with strong long-term
growth prospects. Longer term prospects will not be sacrificed in order to meet shorter term distribution
growth targets.

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

By order of the Board of Directors

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

Lukas Nakos resigned as a director on 31 December 2017. There have been no
other changes to the directorate in the period.

SUPPLEMENTARY INFORMATION

Where applicable, the figures have been extracted from the supplementary information after the
condensed consolidated interim financial statements and related notes.

REPORTING CURRENCY

The company's results are reported in euros.

LISTINGS

MAS holds a dual listing on the main board of the Johannesburg Stock Exchange and the Euro-MTF market
of the Luxembourg Stock Exchange.

INDEPENDENT AUDITOR'S REVIEW REPORT ON INTERIM FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF MAS REAL ESTATE INC.

We have reviewed the condensed consolidated financial statements of MAS Real Estate Inc., contained in the accompanying
interim report, which comprise the condensed consolidated statement of financial position as at 31 December 2017 and the
condensed consolidated statements of profit or loss, other comprehensive income, changes in equity and cash flows for the
six months then ended, and selected explanatory notes.

DIRECTORS' RESPONSIBILITY FOR THE INTERIM FINANCIAL STATEMENTS

The directors are responsible for the preparation and presentation of these interim financial statements in accordance with
the International Financial Reporting Standard, (IAS) 34 Interim Financial Reporting, 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, and for such internal control as the directors determine is necessary to enable the preparation of
interim financial statements that are free from material misstatement, whether due to fraud or error.

AUDITOR'S RESPONSIBILITY

Our responsibility is to express a conclusion on these interim financial statements. We conducted our review in accordance
with International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the
Independent Auditor of the Entity. ISRE 2410 requires us to conclude whether anything has come to our attention that causes
us to believe that the interim financial statements are not prepared in all material respects in accordance with the applicable
financial reporting framework. This standard also requires us to comply with relevant ethical requirements.
  
A review of interim financial statements in accordance with ISRE 2410 is a limited assurance engagement. We perform
procedures, primarily consisting of making inquiries of management and others within the entity, as appropriate, and applying
analytical procedures, and evaluate the evidence obtained.
  
The procedures performed in a review are substantially less than and differ in nature from those performed in an audit
conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these
financial statements.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed
consolidated financial statements of MAS Real Estate Inc. for the six months ended 31 December 2017 are not prepared, in all
material respects, in accordance with the International Financial Reporting Standard, (IAS) 34 Interim Financial Reporting, 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.

KPMG Audit LLC

Chartered Accountants
Heritage Court
41 Athol Street
Douglas
Isle of Man
IM99 1HN

23 February 2018

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Six-month period ended 31 December 2017

                                                                                                                     Reviewed       Reviewed
                                                                                                                    Six-month      Six-month       Audited
                                                                                                                 period ended   period ended    year ended
                                                                                                                  31 December    31 December       30 June
Euro                                                                                                   Note              2017           2016          2017
Rental income                                                                                             4        18,974,145     11,067,791    27,032,238
Service charges and other recoveries                                                                                2,147,390      1,541,342     4,550,190
Revenue                                                                                                            21,121,535     12,609,133    31,582,428
Service charges and other property operating expenses                                                             (5,859,557)    (2,421,484)   (7,598,036)
Net rental income                                                                                                  15,261,978     10,187,649    23,984,392
Sales of inventory property                                                                                         6,398,637              -             -
Cost of sales of inventory property                                                                               (5,339,258)              -             -
Profit on sales of inventory property                                                                     5         1,059,379              -             -
Other income                                                                                                           89,831              -             -
Corporate expenses                                                                                                (2,500,957)    (1,885,474)   (3,498,209)
Investment expenses                                                                                       6       (1,335,379)      (186,519)     (281,061)
Net operating income                                                                                               12,574,852      8,115,656    20,205,122
 
Fair value adjustments                                                                                    7         (613,755)    (3,265,620)    25,592,290
Exchange differences                                                                                                (586,186)    (2,908,077)   (4,684,895)
Share of profit from equity accounted investee, net of taxation                                          14         1,543,057         36,154       178,397
Goodwill impairment                                                                                      10       (1,274,346)              -             -
Profit before finance income/costs                                                                                 11,643,622      1,978,113    41,290,914
Finance income                                                                                            8         3,950,621         39,527     1,207,196
Finance costs                                                                                             8       (2,477,372)      (841,656)   (2,238,497)
Profit before taxation                                                                                             13,116,871      1,175,984    40,259,613
Current taxation                                                                                          9       (2,078,633)      (424,496)   (1,741,449)
Deferred taxation                                                                                         9         1,047,747       (76,462)   (3,942,153)
Profit for the period/year                                                                                         12,085,985        675,026    34,576,011
Attributable to:
Owners of the group                                                                                                11,703,478      (397,549)    33,587,948
Non-controlling interest                                                                                  21          382,507      1,072,575       988,063
 
Basic earnings/(loss) per share (euro cents)                                                              26             2.25         (0.11)          8.43
Diluted earnings/(loss) per share (euro cents)                                                            26             2.25         (0.11)          8.43

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

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
Six-month period ended 31 December 2017

                                                                                                                 Reviewed          Reviewed
                                                                                                                Six-month         Six-month        Audited
                                                                                                             period ended      period ended     year ended
                                                                                                              31 December       31 December        30 June
Euro                                                                                                Note             2017              2016           2017
Profit for the period/year                                                                                     12,085,985           675,026     34,576,011
Other comprehensive income                                                                              
Items that are or may be reclassified subsequently                                                      
to profit or loss
Foreign operations - foreign currency translation difference                                                  (1,187,667)       (2,765,558)    (5,371,692)
Total comprehensive profit/(loss) for the period/year                                                          10,898,318       (2,090,532)     29,204,319
Attributable to:
Owners of the group                                                                                            10,515,811       (3,163,107)     28,216,256
Non-controlling interest                                                                               21         382,507         1,072,575        988,063

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

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Six-month period ended 31 December 2017

                                                                                                                   Reviewed        Reviewed        Audited
                                                                                                                      As at           As at          As at
                                                                                                                31 December     31 December        30 June
Euro                                                                                                   Note            2017            2016           2017
Non-current assets                                                                                                                                        
Intangible assets                                                                                        10      22,515,572      24,499,280     23,967,355
Investment property                                                                                      11     489,518,759     473,690,010    564,291,928
Financial investments                                                                                    12     200,120,816               -              -
Financial assets                                                                                         13     129,103,276               -    101,134,245
Investment in equity accounted investee                                                                  14      21,751,615      20,057,968     20,205,297
Property, plant and equipment                                                                                       548,181         230,277        560,019
Deferred taxation asset                                                                                   9         756,280       1,047,599        758,055
Total non-current assets                                                                                        864,314,499     519,525,134    710,916,899
Current assets
Financial assets                                                                                         13               -               -         66,097
Trade and other receivables                                                                              15       7,688,545      27,378,402      8,707,035
Cash and cash equivalents                                                                                16     187,341,606      20,794,725     33,017,502
Investment property held for sale                                                                        17      53,647,686       3,393,501      6,336,915
Total current assets                                                                                            248,677,837      51,566,628     48,127,549
Total assets                                                                                                  1,112,992,336     571,091,762    759,044,448
Equity
Share capital                                                                                            18     837,465,772     410,113,075    557,556,273
Geared share purchase plan shares                                                                        18    (21,056,010)               -   (21,056,010)
Retained earnings                                                                                                60,633,693      26,753,444     55,888,038
Share-based payment reserve                                                                              19         702,521               -        225,973
Foreign currency translation reserve                                                                           (11,747,970)     (7,954,169)   (10,560,303)
Equity attributable to owners of the group                                                                      865,998,006     428,912,350    582,053,971
Non-controlling interest                                                                                 21       1,030,314       1,072,595        988,063
Total equity                                                                                                    867,028,320     429,984,945    583,042,034
Non-current liabilities
Interest bearing borrowings                                                                              23     166,657,495     117,948,266    141,751,953
Financial liabilities                                                                                    22      25,304,748       6,187,015      1,670,086
Provisions                                                                                                                -          40,410             -
Deferred taxation liability                                                                               9       3,761,990       1,652,903      4,998,374
Total non-current liabilities                                                                                   195,724,233     125,828,594    148,420,413
Current liabilities
Interest bearing borrowings                                                                              23      27,929,088       3,796,331      5,461,444
Financial liabilities                                                                                    22       9,991,544       1,344,932     11,211,990
Trade and other payables                                                                                 24      12,279,787      10,059,974     10,816,762
Provisions                                                                                                           39,364          76,986         91,805
Total current liabilities                                                                                        50,239,783      15,278,223     27,582,001
Total liabilities                                                                                               245,964,016     141,106,817    176,002,414
Total shareholder equity and liabilities                                                                      1,112,992,336     571,091,762    759,044,448
Actual number of ordinary shares in issue                                                                18     633,915,786     380,583,836    467,366,299
IFRS Net Asset Value per share (euro cents)                                                                           136.6           112.7          124.5

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

These condensed consolidated interim financial statements were approved by the Board of Directors on 23 February 2018
and signed on their behalf by:

Ron Spencer                                             Malcolm Levy
Chairman                                                Chief financial officer

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six-month period ended 31 December 2017

                                                                                                                           Equity
                                                                         Geared                              Foreign attributable
                                                                          share             Share-based     currency    to owners        Non-
                                                             Share     purchase    Retained     payment  translation       of the controlling        Total
Euro                                             Note      capital  plan shares    earnings     reserve      reserve        group    interest       equity
Balance at 30 June 2016 (audited)                      378,530,556            -  27,503,007           -  (5,188,611)  400,844,952           -  400,844,952
Comprehensive income for the period
(Loss)/profit for the period                                     -            -   (397,549)           -            -    (397,549)   1,072,575      675,026
Other comprehensive income                                       -            -           -           -  (2,765,558)  (2,765,558)           -  (2,765,558)
Total comprehensive (loss)/profit for the period                 -            -   (397,549)           -  (2,765,558)  (3,163,107)   1,072,575  (2,090,532)
Transactions with the owners of the group and
non-controlling interests
Issue of shares                                    18   39,576,609            -           -           -            -   39,576,609           -   39,576,609
Distributions                                      18  (7,994,090)            -   (352,014)           -            -  (8,346,104)           -  (8,346,104)
Acquisition of subsidiary with non-controlling                   -            -           -           -            -            -          20           20
interests
Total transactions with the owners of the group         31,582,519            -   (352,014)           -            -   31,230,505          20   31,230,525
and non-controlling interests
Balance at 31 December 2016 (reviewed)                 410,113,075            -  26,753,444           -  (7,954,169)  428,912,350   1,072,595  429,984,945
Comprehensive income for the period
Profit/(loss) for the period                                     -            -  33,985,497           -            -   33,985,497    (84,532)   33,900,965
Other comprehensive loss                                         -            -           -           -  (2,606,134)  (2,606,134)           -  (2,606,134)
Total comprehensive profit/(loss) for the period                 -            -  33,985,497           -  (2,606,134)   31,379,363    (84,532)   31,294,831
Equity transactions
Share-based payment reserve                        19            -            -           -     225,973            -      225,973           -      225,973
Total equity transactions                                        -            -           -     225,973            -      225,973           -      225,973
Transactions with the owners of the group
Issue of shares                                    18  152,715,833 (21,056,010)           -           -            -  131,659,823           -  131,659,823
Distributions                                      18  (5,272,635)            - (4,850,903)           -            - (10,123,538)           - (10,123,538)
Total transactions with the owners of the group        147,443,198 (21,056,010) (4,850,903)           -            -  121,536,285           -  121,536,285
Balance at 30 June 2017 (audited)                      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 period
Profit for the period                                            -            -  11,703,478           -            -   11,703,478     382,507   12,085,985
Other comprehensive loss                                         -            -           -           -  (1,187,667)  (1,187,667)           -  (1,187,667)
Total comprehensive profit/(loss) for the period                 -            -  11,703,478           -  (1,187,667)   10,515,811     382,507   10,898,318
Equity transactions
Share-based payment reserve                        19            -            -           -     476,548            -      476,548           -      476,548
Total equity transactions                                        -            -           -     476,548            -      476,548           -      476,548
Transactions with the owners of the group and
non-controlling interests
Issue of shares                                    18  290,334,223            -           -           -            -  290,334,223           -  290,334,223
Distributions                                   18,21 (10,424,724)            - (6,957,823)           -            - (17,382,547)   (340,256) (17,722,803)
Total transactions with the owners of the group        279,909,499            - (6,957,823)           -            -  272,951,676   (340,256)  272,611,420
and non-controlling interests
Balance at 31 December 2017 (reviewed)                 837,465,772 (21,056,010)  60,633,693     702,521 (11,747,970)  865,998,006   1,030,314  867,028,320

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

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six-month period ended 31 December 2017

                                                                                                               Reviewed          Reviewed
                                                                                                              Six-month         Six-month          Audited
                                                                                                           period ended      period ended       year ended
                                                                                                            31 December       31 December          30 June
Euro                                                                                             Note              2017              2016             2017
Profit for the period/year                                                                                   12,085,985           675,026       34,576,011
Adjustments for:
Depreciation                                                                                                     18,098            13,504           27,864
Provisions                                                                                                     (52,441)            53,950                -
Share-based payment expense                                                                                     403,302                 -          245,419
Fair value adjustments                                                                              7           613,755         3,265,620     (25,592,290)
Exchange differences                                                                                            586,186         2,908,077        4,684,895
Finance income                                                                                      8       (3,950,621)          (39,527)      (1,207,196)
Finance costs                                                                                       8         2,477,372           841,656        2,238,497
Share of profit from equity accounted investee                                                     14       (1,543,057)          (36,154)        (178,397)
Goodwill impairment                                                                                10         1,274,346                 -                -
Taxation expense                                                                                    9         1,030,886           500,958        5,683,602
Other income                                                                                                   (89,831)                 -                -
Profit on sales of inventory property                                                               5       (1,059,379)                 -                -
Changes in:
Trade and other receivables                                                                                   2,235,006      (16,114,319)        2,557,048
Trade and other payables                                                                                      (536,479)         1,763,779        2,520,565
Cash generated from/(used in) operating activities                                                           13,493,128       (6,167,430)       25,556,018
Taxation paid                                                                                       9         (215,056)         (190,941)      (1,066,198)
Net cash generated from/(used in) operating activities                                                       13,278,072       (6,358,371)       24,489,820
Investing activities
Acquisition of investment property                                                                 11                 -     (155,151,088)    (156,414,516)
Capitalised acquisition costs on investment property                                               11                 -       (3,057,070)      (3,993,439)
Capitalised expenditure on investment property                                                     11       (6,606,326)      (11,893,005)     (17,907,155)
Settlement of investment property acquisition retentions                                                              -       (1,545,000)      (3,318,865)
Proceeds from the sale of investment property                                                      11        23,826,034           274,480        7,999,160
Capitalised expenditure on investment property held for sale                                       17          (95,786)                 -                -
Proceeds from the sale of investment property held for sale                                        17         5,140,745                 -                -
Expenditure on inventory property                                                                   5       (5,153,579)                 -                -
Proceeds from sales of inventory property                                                           5         5,153,579                 -                -
Acquisition of subsidiary net of cash acquired                                                                        -                 -     (61,326,012)
Acquisition of PKM Developments preference shares                                                                     -                 -    (100,000,000)
Capitalised transaction costs of equity accounted investee                                         14           (3,261)          (30,098)         (35,184)
Acquisition of property, plant and equipment                                                                   (30,251)          (14,767)         (34,425)
Capitalised expenditure on intangible assets                                                                   (35,428)         (111,338)        (222,519)
Proceeds from the sale of financial investments                                                    12                 -        47,045,042       47,045,042
Acquisition of financial investments                                                               12     (198,165,906)                 -                -
Dividend income received                                                                           12            83,217                 -                -
Settlement of financial asset/liability                                                                     (1,251,903)       (3,327,225)      (3,327,225)
Interest received                                                                                   8             3,191            39,527           72,951
Negative interest paid on cash and cash equivalents                                                 8         (146,796)           (1,461)          (6,830)
Cash used in investing activities                                                                         (177,282,470)     (127,772,003)    (291,469,017)
Proceeds from the issue of share capital                                                                    279,909,499        31,592,882      157,984,909
Proceeds from interest bearing borrowings                                                          23        53,000,000        80,430,900      111,657,786
Transaction costs related to interest bearing borrowings                                           23         (699,386)       (1,456,967)      (2,168,837)
Repayment of capital on interest bearing borrowings                                                23       (4,409,446)       (1,135,900)      (7,098,329)
Interest paid on interest bearing borrowings                                                       23       (2,161,092)         (842,927)      (2,470,916)
Distributions paid                                                                                 18       (6,957,823)         (352,014)      (5,202,917)
Cash generated from financing activities                                                                    318,681,752       108,235,974      252,701,696
Net increase/(decrease) in cash and cash equivalents                                                        154,677,354      (25,894,400)     (14,277,501)
Cash and cash equivalents at the beginning of the period/year                                                33,017,502        47,997,978       47,997,978
Effect of movements in exchange rate fluctuations on cash held                                                (353,250)       (1,308,853)        (702,975)
Cash and cash equivalents at the end of the period/year                                            16       187,341,606        20,794,725       33,017,502

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

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Six-month period ended 31 December 2017

1. CORPORATE INFORMATION

MAS Real Estate Inc. (the "company" or "MAS") is domiciled in the British Virgin Islands ("BVI"). These condensed
consolidated interim financial statements are as at and for the six-month period ended 31 December 2017 and
comprise the company and its subsidiaries (together referred to as 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 condensed consolidated interim financial statements have been prepared in accordance with International
Financial Reporting Standard ("IFRS") IAS 34: Interim Financial Reporting, the Johannesburg Stock Exchange
("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.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

In the preparation of these condensed consolidated interim financial statements the directors have made judgements,
estimates and assumptions that affect the application of the group's accounting policies and the reported amounts in the
condensed consolidated interim 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 disclosed in the integrated annual report. In
addition the group made the following significant judgements and estimates in respect of the six-month
period ended 31 December 2017:

-   Inventory property: The group entered into an agreement to dispose of the office land at New Waverley
    in Edinburgh, Scotland to Legal & General and to develop the office on a forward funding basis for Legal & General.
    Although the forward funding agreement is not a typical construction contract, the directors are of the view that in
    legal terms and substance the development represents a continuous transfer of work in progress to Legal &
    General, see note 5. In addition, the directors have made the following key assumptions:
    - Construction costs; and
    - Stage of completion.

-   Investment in equity accounted investee: The group recognises interest income from its associate as a result
    of the investment in the PKM Developments Limited ("PKM Developments") preference shares, see note 13.
    Where interest is capitalised against qualifying assets held at fair value in the associate, the group does not
    consider this to give rise to an asset in the associate and accordingly interest income is not eliminated and is
    presented in finance income.

-   Goodwill impairment: During the period, the group impaired the New Waverley goodwill, see note 10. The
    recoverable amount of the cash generating unit (CGU) is determined as fair value less costs to sell. A significant
    proportion of the net assets consist of investment property and investment property held for sale. These
    assets have been measured at fair value during the period which is determined by external property
    valuation experts or where relevant, firm offers from market participants looking to acquire the assets. The
    external property valuation experts use recognised valuation techniques and apply the principals of IFRS 13:
    Fair value measurement. The significant methods and assumptions used by the valuers are set out in notes
    11 and 17.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in the preparation of these condensed consolidated interim financial statements are
consistent with those applied in the preparation of the consolidated financial statements for the year ended 
30 June 2017, with the exception of:

INVENTORY PROPERTY

Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental
or capital appreciation, is held as inventory property and is measured at the lower of cost or net realisable value.
  
The cost of inventory property recognised in profit or loss on disposal is determined with reference to the specific
costs incurred on the property sold.
  
The group has adopted this accounting policy in the current period and therefore it has no impact on the
comparative periods.

SALES OF INVENTORY PROPERTY

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 measured based on the costs incurred up until the end of the reporting period as
a proportion of total costs expected to be incurred.
  
The group has adopted this accounting policy in the current period and therefore it has no impact on the
comparative periods.

INVESTMENT IN EQUITY ACCOUNTED INVESTEE

Equity accounted investee comprises investments in associates. Associates are entities in which the group has
significant influence over the financial and operating policies. Significant influence 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.
  
Unrealised gains arising from financing arrangements with equity accounted investees are eliminated to the extent
that they give rise to an asset in the associate. Interest capitalised against qualifying assets held at fair value in the
associate do not give rise to an asset in the associate and accordingly interest income is not eliminated and is
presented in finance income.
  
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 is a favourable change
in the estimates used to determine the recoverable amount.

NEW AND AMENDED STANDARDS AND INTERPRETATIONS NOT YET ADOPTED

Below is a summary of new standards and amendments/ improvements to existing standards and interpretations that
are not yet effective:
                                              Effective for annual
Amendments/improvements to standards and      periods beginning on
interpretations not yet effective                         or after
IFRS 9 (2014) - Financial Instruments               1 January 2018
IFRS 15 - Revenue from Contracts with               1 January 2018
Customers
IAS 40 - Amendment to clarify                       1 January 2018
transfers of property to, or from,
investment property
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) are in respect of the impairment model, which is based on the premise of
providing for 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 a loss allowance for
financial instruments to be recognised equal to the 12-month expected credit losses that result from default events on
financial instruments that are possible within 12 months of the reporting date. At 31 December 2017 the group held the
following financial instruments that are in the scope of the impairment model: financial assets; 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
significant impact at this time.
  
The group will adopt the new standard for the year 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 revenue is
derived from lease contracts.
  
The group has assessed the impact on revenue resulting from the amendments and does not expect any significant
impact.
  
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 an evident 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 significant impact.
  
The group will adopt the new standard for the yearending 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 will provide additional disclosure on operating leases it enters into as lessor. Other than that, the group is
lessee under a lease contract for the group's head office. The group has assessed the impact of this lease and it is
unlikely that there will be a significant impact.
  
The group will adopt the new standard for the year ending 30 June 2020.

4.  RENTAL INCOME

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:

                                                                                                                     Reviewed       Reviewed
                                                                                                                    Six-month      Six-month
                                                                                                                       period         period       Audited
                                                                                                                     ended 31       ended 31    Year ended
                                                                                                                     December       December       30 June
Euro                                                                                                                     2017           2016          2017

Edeka MIHA AG                                                                                                       2,918,539      2,630,622     5,316,024
Toom Baumarkt GmbH                                                                                                        n/a      1,134,034           n/a
                                                                                                                    2,918,539      3,764,656     5,316,024

The future aggregate minimum rental receivable under non-cancellable operating leases is as follows:

                                                                                                                     Reviewed       Reviewed       Audited
                                                                                                                        As at          As at         As at
                                                                                                                  31 December    31 December       30 June
Euro                                                                                                                     2017           2016          2017
No later than 1 year                                                                                               33,942,945     28,108,091    34,403,438
Greater than 1 year and less than 5 years                                                                         113,581,661     99,462,055   116,200,143
Greater than 5 years                                                                                              178,163,445    185,296,845   190,513,803
                                                                                                                  325,688,051    312,866,991   341,117,384

Turnover rent of EUR1,767,573 (December 2016: EURnil; June 2017: EUR1,710,060) is included in rental income.

5.  PROFIT ON SALES OF INVENTORY PROPERTY

                                                                                                                     Reviewed       Reviewed
                                                                                                                    Six-month      Six-month
                                                                                                                       period         period       Audited
                                                                                                                     ended 31       ended 31    Year ended
                                                                                                                     December       December       30 June
Euro                                                                                                                     2017           2016          2017
Sales of inventory property                                                                                         6,398,637              -             -
Cost of sales of inventory property                                                                               (5,339,258)              -             -
Closing balance                                                                                                     1,059,379              -             -

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. EUR24,338,056) 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.
  
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 (approximately
EUR23,490,647) for the sale of the office land, with further development profits likely to be received under the Forward Funding
Agreement upon practical completion.
  
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 due to the UK Government in respect of the capital contribution (see note 22); and financial asset due
    from Legal & General in respect of the capital contribution (see note 13). 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 rent-free period; and financial asset due from Legal & General
    in respect of the rent-free period. The financial liability and financial asset have been offset because the offsetting criteria
    in IAS 32 - Financial Instruments: Presentation, have been met.

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 deemed interest income and deemed interest
expense on financial assets and financial liabilities respectively.
  
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 obligated 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 liabilities on a net
basis under the terms of the Forward Funding Agreement.

RECONCILIATION OF INVENTORY PROPERTY:
                                                                                                                       Reviewed        Reviewed    Audited
                                                                                                                          As at           As at      As at
                                                                                                                    31 December     31 December    30 June
Euro                                                                                                                       2017            2016       2017
Opening balance                                                                                                               -               -          -
Development expenditure                                                                                               5,339,258               -          -
Disposals (recognised in cost of sales of inventory property)                                                       (5,339,258)               -          -
Closing balance                                                                                                               -               -          -

The amount paid in the period in relation to expenditure on inventory property was EUR5,153,579 (December 2016: EURnil, June 2017: EURnil).

The amount received in the period in relation to sales of inventory property was EUR5,153,579 (December 2016: EURnil, June 2017: EURnil).

6. INVESTMENT EXPENSES

                                                                                                                    Reviewed        Reviewed
                                                                                                                   Six-month       Six-month       Audited
                                                                                                                period ended    period ended    Year ended
                                                                                                                 31 December     31 December       30 June
Euro                                                                                                                    2017            2016          2017
Transaction fees on listed real estate equity securities                                                             716,956               -             -
Transaction fees on investment property/other                                                                        618,423         186,519       281,061
                                                                                                                   1,335,379         186,519       281,061

7.  FAIR VALUE ADJUSTMENTS

                                                                                                                   Reviewed         Reviewed
                                                                                                                  Six-month        Six-month       Audited
                                                                                                               period ended     period ended    Year ended
                                                                                                                31 December      31 December       30 June
Euro                                                                                                                   2017             2016          2017
Gain/(loss) on fair value of financial investments                                                                1,954,910      (4,569,026)   (4,569,026)
(Loss)/gain on fair value of investment property                                                                (4,140,178)          598,369    36,763,196
Gain/(loss) on fair value of financial instruments                                                                    2,778          678,563   (7,388,675)
Gain on fair value of investment property held for sale                                                           1,568,735           26,474       786,795
                                                                                                                  (613,755)      (3,265,620)    25,592,290

Summarised as follows:
                                                                                                                   Reviewed         Reviewed
                                                                                                                  Six-month        Six-month       Audited
                                                                                                               period ended     period ended    Year ended
                                                                                                                31 December      31 December       30 June
                                                                                                       Note            2017             2016          2017
Fair value movement in financial investments
Real estate equities portfolio                                                                           12       1,954,910                -             -
Sirius Real Estate Limited ("Sirius")                                                                    12               -      (4,569,026)   (4,569,026)
                                                                                                                  1,954,910      (4,569,026)   (4,569,026)
Fair value movement in investment property
Income-generating                                                                                        11         521,643          677,340    19,437,659
Development                                                                                              11     (5,725,938)         (78,971)    17,325,537
Land bank                                                                                                11       1,064,117                -             -
                                                                                                                (4,140,178)          598,369    36,763,196
Fair value movement in financial instruments
Interest rate swaps                                                                                      22        (46,353)          559,117       769,594
Development management fee                                                                               22       (152,455)          205,516   (1,885,457)
Forward currency contract                                                                                                 -         (86,070)             -
Priority participating profit dividend                                                                   22         201,586                -   (6,272,812)
                                                                                                                      2,778          678,563   (7,388,675)
Fair value movement in investment property held for sale
Investment property held for sale                                                                        17       1,568,735           26,474       786,795
                                                                                                                  1,568,735           26,474       786,795

8.  FINANCE INCOME AND FINANCE COSTS

The group's finance income and finance costs comprise:
                                                                                                                    Reviewed        Reviewed
                                                                                                                   Six-month       Six-month       Audited
                                                                                                                period ended    period ended    Year ended
                                                                                                                 31 December     31 December       30 June
Euro                                                                                                  Note              2017            2016          2017
Finance income
Interest on bank deposits                                                                                              3,191          39,527        72,951
Interest on PKM Developments preference shares                                                          13         3,795,207               -     1,134,245
Capital Contribution - unwind of discount                                                               13           152,223               -             -
                                                                                                                   3,950,621          39,527     1,207,196
Finance costs
Interest on interest bearing borrowings                                                                 23       (2,156,911)       (840,195)   (2,231,667)
Negative interest on bank deposits                                                                                 (146,796)         (1,461)       (6,830)
Capital Contribution - unwind of discount                                                               22         (152,223)               -             -
Other finance costs                                                                                                 (21,442)               -             -
                                                                                                                 (2,477,372)       (841,656)   (2,238,497)

9. TAXATION

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

The group's taxation includes the following:

                                                                                                                   Reviewed         Reviewed
                                                                                                                  Six-month        Six-month       Audited
                                                                                                               period ended     period ended    Year ended
                                                                                                                31 December      31 December       30 June
Euro                                                                                                                   2017             2016          2017
Current taxation                                                                                                  2,078,633          424,496     1,741,449
Deferred taxation (income)/expense                                                                              (1,047,747)           76,462     3,942,153
Taxation expense                                                                                                  1,030,886          500,958     5,683,602

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

                                                                                         Reviewed                  Reviewed
                                                                                         Six-month                 Six-month                 Audited
                                                                                       period ended              period ended               Year ended
                                                                                     31 December 2017          31 December 2016           30 June 2017
                                                                                 Applicable                Applicable               Applicable
Euro                                                                               rate (%)     Taxation     rate (%)   Taxation      rate (%)    Taxation
Income/corporation taxation
UK - income tax                                                                        20.0      526,616        20.0     256,173          20.0     420,835
UK - corporation tax                                                                   19.0    1,860,399           -           -             -           -
Switzerland                                                                            26.8       32,288        26.2           -          26.8           -
Germany                                                                                15.8     (30,351)        15.8     143,965          15.8     623,902
Poland                                                                                 19.0    (280,221)           -           -          19.0     194,812
Romania                                                                                16.0            -           -           -          16.0           -
Bulgaria                                                                               10.0            -           -           -          10.0           -
Withholding taxation
Poland                                                                                  5.0            -           -           -           5.0     448,612
Wealth taxation
Switzerland                                                                             0.2          887         0.2       1,801           0.2       5,944
Luxembourg                                                                              0.5     (30,985)         0.5      22,557           0.5      47,344
                                                                                               2,078,633                 424,496                 1,741,449

The amount of taxation paid in the period was EUR215,056 (December 2016: EUR190,941; June 2017: EUR1,066,198).

RECONCILIATION OF DEFERRED TAXATION:
                                                                                                                   Reviewed         Reviewed
                                                                                                                  Six-month        Six-month       Audited
                                                                                                               period ended     period ended    Year ended
                                                                                                                31 December      31 December       30 June
Euro                                                                                                                   2017             2016          2017

Deferred taxation brought forward                                                                                 4,240,319          521,449       521,449
Current period/year deferred taxation                                                                           (1,047,747)           76,462     3,942,153
Foreign currency translation difference                                                                            (30,638)            7,393     (425,070)
Acquisition of subsidiary - deferred taxation asset                                                                       -                -       380,711
Sale of investment property                                                                                       (156,224)                -     (178,924)
Deferred taxation liability carried forward                                                                       3,005,710          605,304     4,240,319

The net deferred taxation liability which relates to temporary differences between accounting and fiscal value of investment
property results from the following:

                                                                                                                   Reviewed         Reviewed       Audited
                                                                                                                      As at            As at         As at
                                                                                                                31 December      31 December       30 June
Euro                                                                                                                   2017             2016          2017
Deferred taxation asset                                                                                             756,280        1,047,599       758,055
Deferred taxation liability                                                                                       3,761,990        1,652,903     4,998,374
Net deferred taxation liability                                                                                   3,005,710          605,304     4,240,319

RECONCILIATION OF EFFECTIVE TAXATION RATE

                                                                                                Reviewed                 Reviewed
                                                                                               Six-month                Six-month                  Audited
                                                                                            period ended             period ended               Year ended
                                                                                             31 December              31 December                  30 June
Euro                                                                                  %             2017        %            2016        %            2017
Profit before taxation                                                                        13,116,871                1,175,984               40,259,613
Taxation using the company's domestic rate                                          0.0                -      0.0               -      0.0               -
Effect of tax rates in foreign jurisdictions                                     (15.8)      (2,078,633)  (36.10)       (424,496)    (4.3)     (1,741,449)
Change in recognised deductible temporary
differences
-  Revaluation of investment property                                              14.0        1,833,632     34.7         408,498    (9.4)     (3,767,882)
-  Change in tax base                                                             (6.0)        (785,885)   (41.2)       (484,960)    (0.4)       (174,271)
                                                                                  (7.8)      (1,030,886)   (42.6)       (500,958)   (14.1)     (5,683,602)

10. INTANGIBLE ASSETS

                                                                                                                      Reviewed       Reviewed      Audited
                                                                                                                         As at          As at        As at
                                                                                                                   31 December    31 December      30 June
Euro                                                                                                                      2017           2016         2017
Goodwill                                                                                                            22,265,340     24,387,942   23,744,836
Other intangible assets                                                                                                250,232        111,338      222,519
                                                                                                                    22,515,572     24,499,280   23,967,355

Other intangible assets consist of costs capitalised on the implementation of a new property management and accounting
system. The accounting system is currently in the process of implementation, it is not yet available for use and therefore is not
amortised.

Reconciliation of the group's carrying amount of goodwill:
                                                                                                                  MAS Property           New
                                                                                                                      Advisors   Waverley 10
Euro                                                                                                                   Limited       Limited         Total
Balance at 30 June 2016 (audited)                                                                                   23,901,016     1,361,802    25,262,818
Foreign currency translation difference                                                                              (827,715)      (47,161)     (874,876)
Closing balance 31 December 2016 (reviewed)                                                                         23,073,301     1,314,641    24,387,942
Foreign currency translation difference                                                                              (608,440)      (34,666)     (643,106)
Closing balance 30 June 2017 (audited)                                                                              22,464,861     1,279,975    23,744,836
Foreign currency translation difference                                                                              (199,521)       (5,629)     (205,150)
Impairment                                                                                                                   -   (1,274,346)   (1,274,346)
Closing balance 31 December 2017 (reviewed)                                                                         22,265,340             -    22,265,340

IMPAIRMENT

The recoverable amounts of the group's CGUs are the higher of their value-in-use and fair value less costs to sell.

MAS PROPERTY ADVISORS LIMITED

As there were no indicators of impairment at 31 December 2017, no impairment test was performed. Goodwill will be tested
for impairment at 30 June 2018. No impairment charge arose as a result of the group's previous annual impairment test of
goodwill in relation to MAS Property Advisors Limited (December 2016: nil; June 2017: nil).

NEW WAVERLEY 10 LIMITED

An impairment of EUR1,274,346 (December 2016: EURnil; June 2017: EURnil) was recognised as a result of the group's impairment test
of the New Waverley 10 goodwill.

An impairment test was carried out because there was an indicator of impairment at 31 December 2017. As a result of fair
valuing the investment property in the New Waverley 10 Limited CGU, the carrying amount of the CGU exceeded the
recoverable amount, which resulted in all the goodwill attributable to the CGU being impaired.
  
The recoverable amount of the New Waverley 10 Limited 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 of investment property and investment property held for sale, the valuation techniques of which have been
disclosed in notes 11 and 17, respectively.

11.  INVESTMENT PROPERTY

The group's investment property comprises:

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

The carrying amount of the group's investment property was as follows:

                                                                                                                   As at 31 December 2017 (reviewed)
Euro                                                                                                               Fair value          Cost          Total
Income-generating property                                                                                        450,304,737             -    450,304,737
Development property                                                                                                        -       457,184        457,184
Land bank                                                                                                                   -    38,756,838     38,756,838
                                                                                                                  450,304,737    39,214,022    489,518,759

                                                                                                                    As at 31 December 2016 (reviewed)
Euro                                                                                                               Fair value          Cost          Total
Income-generating property                                                                                        425,203,212             -    425,203,212
Development property                                                                                                        -     7,583,361      7,583,361
Land bank                                                                                                                   -    40,903,437     40,903,437
                                                                                                                   425,203,212   48,486,798    473,690,010

                                                                                                                       As at 30 June 2017 (audited)
Euro                                                                                                               Fair value           Cost         Total
Income-generating property                                                                                        494,519,173             -    494,519,173
Development property                                                                                               26,413,036     3,668,759     30,081,795
Land bank                                                                                                                   -    39,690,960     39,690,960
                                                                                                                  520,932,209    43,359,719    564,291,928

As at 31 December 2017 (reviewed)

                                                                                                      Income-
Euro                                                                                               generating     Development    Land bank           Total
Opening balance                                                                                   494,519,173      30,081,795   39,690,960     564,291,928
Property disposals                                                                                          -    (23,826,034)            -    (23,826,034)
Transfer                                                                                              (9,941)     (2,738,011)    2,747,952               -
Transfer to investment property held for sale (see note 17)                                      (42,960,539)       (531,094)  (7,618,037)    (51,109,670)
Capitalised expenditure                                                                               225,006       3,202,877    3,178,443       6,606,326
Finance costs capitalised (see note 23)                                                                     -         220,659       88,245         308,904
Fair value adjustment (see note 7)                                                                    521,643     (5,725,938)    1,064,117     (4,140,178)
Foreign currency translation difference                                                           (1,990,605)       (227,070)    (394,842)     (2,612,517)
Closing balance                                                                                   450,304,737         457,184   38,756,838     489,518,759

As at 31 December 2016 (reviewed)
                                                                                                      Income-
Euro                                                                                               generating     Development     Land bank          Total
Opening balance                                                                                   242,625,172      22,430,253    41,940,654    306,996,079
Property acquisitions                                                                             155,151,088              -             -     155,151,088
Capitalised acquisition costs                                                                       3,057,070              -             -       3,057,070
Capitalised retentions (see note 22)                                                                  600,000              -             -         600,000
Property disposal                                                                                           -      (274,480)             -       (274,480)
Transfer                                                                                           25,458,248   (23,907,416)   (1,550,832)               -
Capitalised expenditure                                                                              (22,373)      9,995,649     1,919,729      11,893,005
Finance costs capitalised (see note 23)                                                                     -        182,256        45,953         228,209
Fair value adjustment (see note 7)                                                                    677,340       (78,971)             -         598,369
Foreign currency translation difference                                                           (2,343,333)      (763,930)   (1,452,067)     (4,559,330)
Closing balance                                                                                   425,203,212      7,583,361    40,903,437     473,690,010

As at 30 June 2017 (audited)
                                                                                                      Income-
Euro                                                                                               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 acquisitions as part of business combinations                                             61,330,722               -            -      61,330,722
Capitalised acquisition costs                                                                       3,993,439               -            -       3,993,439
Property disposal                                                                                 (7,737,076)       (262,084)            -     (7,999,160)
Transfer                                                                                           24,786,917    (23,276,980)  (1,509,937)               -
Capitalised expenditure                                                                               840,436      15,407,910    1,658,809      17,907,155
Finance costs capitalised (see note 23)                                                                     -         447,749      121,549         569,298
Fair value adjustment (see note 7)                                                                 19,437,659      17,325,537            -      36,763,196
Transfer to investment property held for sale (see note 17)                                       (2,180,000)       (115,378)            -     (2,295,378)
Foreign currency translation reserve                                                              (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

INTEREST BEARING BORROWINGS

The group's bank borrowings are secured against investment property to the value of EUR385,391,557 (December 2017:
EUR220,249,616; June 2017: EUR428,538,519), see note 23. The group has bank borrowings of EUR187,047,930 designated as general
borrowings (December 2016: EUR107,417,874; June 2017: EUR111,657,786).

RELATED PARTIES

The group has a development management agreement with the developer New Waverley Advisers Limited, a related party,
for the development and construction of the New Waverley site in Edinburgh. A development management fee and priority
participating profit dividend have been recognised in relation to the New Waverley development, see note 22. In addition, the
group has capitalised costs incurred from related parties, see note 27.

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, by 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. At the interim
reporting date, the fair value of investment property is determined by the directors either by reviewing the most recent
external valuation and updating for any material changes to the significant inputs or by reference to other relevant
information generated by market transactions.
  
For all investment properties their current use equates to the highest and best use. The external valuations received are
initially reviewed by the relevant internal asset manager and compared to their expectation of what fair value would be for
individual investment properties. If the asset manager is in agreement with the valuation, the valuation reports are then
checked by the finance team to confirm their numerical and methodological accuracy.

FAIR VALUE HIERARCHY

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

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

As at 31 December 2017 (reviewed)

                                                                                                                               Fair value
Euro                                                                                               Carrying amount  Level 1         Level 2        Level 3
Income-generating property                                                                             450,304,737        -               -    450,304,737
                                                                                                       450,304,737        -               -    450,304,737

As at 31 December 2016 (reviewed)
                                                                                                                               Fair value
Euro                                                                                               Carrying amount  Level 1         Level 2        Level 3
Income-generating property                                                                             425,203,212        -               -    425,203,212
                                                                                                       425,203,212        -               -    425,203,212

As at 30 June 2017 (audited)
                                                                                                                               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 TECHNIQUES AND SIGNIFICANT UNOBSERVABLE INPUTS

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

As at 31 December 2017, 31 December 2016 and 30 June 2017

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

Income-      Discounted cash flows:                           -  Risk adjusted discount rates    The estimated fair value would
generating   The valuation model considers the present        -  Market rent                     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 rate, void periods,                                          -  The occupancy rate was
             occupancy rate, lease incentive costs such                                             higher/(lower)
             as rent-free periods and other costs not                                            -  The reversionary discount
             paid by tenants. The expected net cash                                                 rate 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                                              -  The estimated rental value
             quality of a building and its location, tenant                                         was higher/(lower)
             credit quality and lease terms.

             Capitalisation rate: The valuation model         -  Capitalisation rate             The estimated fair value would
             considers the value of the property based        -  Market rent                     increase/(decrease) if:
             on actual location, size and quality of the      -  Passing rent                    the capitalisation rate was
             properties taking into account market data                                          lower/(higher)
             and the capitalisation rate of future income                                        the passing rent was higher/
             streams at the valuation date.                                                      (lower)
                                                                                                 the market rent was higher/
                                                                                                 (lower)
As at 30 June 2017

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

Development Firm offers:                                      -  Offers                        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)
                                                                                               -  The availability of
                                                                                                  comparable properties
                                                                                                  lower/(higher)

12. FINANCIAL INVESTMENTS

The group invested in a portfolio of listed real estate equity securities during the period.
  
The group classifies its investments in listed real estate equity securities as financial assets at fair value through profit or
loss ("FVTPL"). Accordingly, they are measured at fair value at the reporting date with changes in fair value being recognised
in profit or loss as they arise.

The group's financial investments comprise:

As at 31 December 2017 (reviewed)

                                                                                                                 Share price     Number of      Fair value
                                                                                                                      (Euro)         shares         (Euro)
Klepierre SA                                                                                                           36.66      1,626,364     59,630,636
Unibail - Rodamco SE                                                                                                  210.00        264,618     55,569,780
Eurocommercial Properties NV                                                                                           36.31        497,333     18,058,161
Hufvudstaden AB                                                                                                        13.35      1,083,000     14,463,917
Fonciere des Regions SA                                                                                                94.48        150,300     14,200,344
Mercialys SA                                                                                                           18.45        697,934     12,873,393
Land Securities Group PLC                                                                                              11.36      1,115,000     12,663,602
British Land Company PLC                                                                                                7.79      1,625,000     12,660,983
                                                                                                                                               200,120,816
Reconciliation of financial investments:
                                                                                                                   Reviewed        Reviewed        Audited
                                                                                                                      As at           As at          As at
                                                                                                                31 December     31 December        30 June
Euro                                                                                                                   2017            2016           2017
Opening balance                                                                                                           -      51,614,068     51,614,068
Purchases                                                                                                       198,165,906               -              -
Disposals                                                                                                                 -    (47,045,042)   (47,045,042)
Fair value adjustment (see note 7)                                                                                1,954,910     (4,569,026)    (4,569,026)
Closing balance                                                                                                 200,120,816               -              -

During the period dividend income of EUR83,217 was received (31 December 2016: EURnil; 30 June 2017: EURnil).

FAIR VALUE HIERARCHY 

As at 31 December 2017 (reviewed)                                                                                             Fair value
                                                                                                    Carrying
Euro                                                                                                  amount        Level 1          Level 2       Level 3
Financial investments                                                                            200,120,816    200,120,816                -             -
                                                                                                 200,120,816    200,120,816                -             -

13. FINANCIAL ASSETS
                                                                                                                   Reviewed         Reviewed       Audited
                                                                                                                      As at            As at         As at
                                                                                                                31 December      31 December       30 June
Euro                                                                                                Note               2017             2016          2017
Non-current assets
PKM Developments preference shares                                                                              104,929,452                -   101,134,245
Capital contribution                                                                                   5         24,173,824                -             -
                                                                                                                129,103,276                -   101,134,245
Current assets
Forward currency contract                                                                                                 -                -        66,097
                                                                                                                          -                -        66,097

PKM DEVELOPMENTS PREFERENCE SHARES

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

CAPITAL COMMITMENT

As described in note 5, 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, see note 22.

FORWARD CURRENCY CONTRACT

The group entered into a Polish Zloty forward contract to hedge the exposure on VAT receivable in relation to the Nova Park
acquisition. This forward currency contract was settled during the period.

Reconciliation of the group's financial assets held at amortised cost:

                                                                                                                       PKM 
                                                                                                              Developments 
                                                                                                                preference         Capital
                                                                                                                    shares    contribution           Total
Balance at 30 June 2016 (audited)                                                                                        -               -               -
Balance at 31 December 2016 (reviewed)                                                                                   -               -               -
Purchase of shares                                                                                             100,000,000               -     100,000,000
Finance income                                                                                                   1,134,245               -       1,134,245
Balance at 30 June 2017 (audited)                                                                              101,134,245               -     101,134,245
Finance income                                                                                                   3,795,207               -       3,795,207
Capital contribution                                                                                                     -      24,022,280      24,022,280
Finance income - unwind of discount                                                                                      -         152,223         152,223
Foreign currency translation reserve                                                                                     -           (679)           (679)
Balance at 31 December 2017 (reviewed)                                                                         104,929,452      24,173,824     129,103,276

14. INVESTMENT IN EQUITY ACCOUNTED INVESTEE
                                                                                                                  Reviewed        Reviewed  
                                                                                                                     As at           As at         Audited
                                                                                                               31 December     31 December   As at 30 June
Euro                                                                                                                  2017            2016            2017
PKM Developments                                                                                                21,751,615      20,057,968      20,205,297


RECONCILIATION OF INVESTMENT IN EQUITY ACCOUNTED INVESTEE
                                                                                                                  Reviewed        Reviewed  
                                                                                                                     As at           As at         Audited
                                                                                                               31 December     31 December   As at 30 June
Euro                                                                                                                  2017            2016            2017
Opening balance                                                                                                 20,205,297      19,991,716      19,991,716
Capitalised acquisition costs                                                                                        3,261          30,098          35,184
                                                                                                                20,208,558      20,021,814      20,026,900
Share of profit                                                                                                  1,543,057          36,154         178,397
Closing balance                                                                                                 21,751,615      20,057,968      20,205,297

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 four years through the investment in additional 7.5% preference
shares to be issued by PKM Developments.

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

                                                                                                                  Reviewed       Reviewed          Audited
                                                                                                                     As at          As at            As at
                                                                                                               31 December    31 December          30 June
Euro                                                                                                                  2017           2016             2017
Statement of financial position - PKM Developments
Non-current assets                                                                                              94,396,995     20,051,534       48,139,879
Current assets                                                                                                  71,220,021     30,696,114      105,905,277
Total assets                                                                                                   165,617,016     50,747,648      154,045,156
Non-current liabilities                                                                                        105,630,824             -       101,134,247
Current liabilities                                                                                              5,762,253        737,035        2,544,687
Total liabilities                                                                                              111,393,077        737,035      103,678,934
Net assets                                                                                                      54,223,939     50,010,613       50,366,222
Percentage ownership interest                                                                                          40%            40%              40%
Group share of net assets                                                                                       21,689,576     20,004,245       20,146,489
Capitalised costs                                                                                                   62,039         53,723           58,808
Carrying amount                                                                                                 21,751,615     20,057,968       20,205,297

                                                                                                                  Reviewed       Reviewed
                                                                                                                 Six-month      Six-month          Audited
                                                                                                              period ended   period ended       Year ended
                                                                                                               31 December    31 December          30 June
Euro                                                                                                                  2017           2016             2017
Statement of profit or loss and other comprehensive income -
PKM Developments
Revenue                                                                                                            546,610              -            2,009
Net service charge and property operating expenses                                                               (104,739)              -                -
Corporate expenses                                                                                               (286,361)       (39,191)        (131,992)
Finance expense                                                                                                      (419)       (15,049)         (13,739)
Finance income                                                                                                      89,806        144,624          190,867
Other income                                                                                                        99,282              -          284,363
Exchange differences                                                                                              (58,583)              -          115,719
Investment expenses                                                                                              (935,331)              -          (1,235)
Fair value adjustments of investment property                                                                    4,507,377              -                -
Total profit and other comprehensive income                                                                      3,857,642         90,384          445,992
Percentage ownership interest                                                                                          40%            40%              40%
Group's share of total comprehensive profit                                                                      1,543,057         36,154          178,397

15. TRADE AND OTHER RECEIVABLES
                                                                                                                  Reviewed       Reviewed          Audited
                                                                                                                     As at          As at            As at
                                                                                                               31 December    31 December          30 June
Euro                                                                                                                  2017           2016             2017
Trade receivables from lessees                                                                                   4,239,022      2,456,071        4,964,146
Receivable from sale of inventory property                                                                       1,216,516              -                -
Other                                                                                                              884,304        692,895          940,235
Prepayments                                                                                                        694,187        578,672          854,941
VAT receivable                                                                                                     634,516     20,911,114          947,766
Property retentions held in escrow                                                                                  20,000      2,115,000          500,000
Margin collateral - interest rate swap                                                                                   -        624,650          499,947
                                                                                                                 7,688,545     27,378,402        8,707,035

The carrying amount of the group's trade and other receivables approximates the fair value.

16. CASH AND CASH EQUIVALENTS
                                                                                                                    Reviewed        Reviewed       Audited
                                                                                                                       As at           As at         As at
                                                                                                                 31 December     31 December       30 June
Euro                                                                                                                    2017            2016          2017
Bank balances                                                                                                     76,981,588      20,794,725    33,017,502
Trading account                                                                                                  110,360,018               -             -
                                                                                                                 187,341,606      20,794,725    33,017,502

17.  INVESTMENT PROPERTY HELD FOR SALE
                                                                                                                    Reviewed        Reviewed       Audited
                                                                                                                       As at           As at         As at
                                                                                                                 31 December     31 December       30 June
Euro                                                                                                                    2017            2016          2017
United Kingdom
-  Hotel                                                                                                          43,224,089               -     1,137,200
-  Retail                                                                                                          2,807,872       3,393,501     3,019,715
-  Land bank                                                                                                       7,615,725               -             -
                                                                                                                  53,647,686       3,393,501     4,156,915
Germany
-  Retail                                                                                                                  -               -     2,180,000
                                                                                                                           -               -     2,180,000
Closing balance                                                                                                   53,647,686       3,393,501     6,336,915

Reconciliation of the group's investment property held for sale were as follows:

                                                                                                                    Reviewed        Reviewed       Audited
                                                                                                                       As at           As at         As at
                                                                                                                 31 December     31 December       30 June
Euro                                                                                               Note                 2017            2016          2017
Opening balance                                                                                                    6,336,915       3,515,237     3,515,237
Transfer from investment property                                                                    11           51,109,670               -     2,295,378
Disposals                                                                                                        (5,140,745)               -             -
Capitalised expenditure                                                                                               95,786               -             -
Retention release                                                                                                  (275,000)               -             -
Fair value adjustment                                                                                 7            1,568,735          26,474       786,795
Foreign currency translation reserve                                                                                (47,675)       (148,210)     (260,495)
Closing balance                                                                                                   53,647,686       3,393,501     6,336,915

The group continues to hold two vacant land plots in the United Kingdom which were classified as held for sale at 30 June
2017. As at 31 December 2017 these plots of land had a fair value of EUR2,807,872, and during the period a fair value adjustment
of EUR162,343 (loss) was recognised. Both plots of land are expected to be sold within six months and therefore continue to be
classified as held for sale.

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.

The following table shows the carrying amount and fair value of the group's investment property held for sale in the fair value 
hierarchy:

As at 31 December 2017 (reviewed)                                                                                              Fair value
                                                                                                 Carrying
Euro                                                                                              amount          Level 1         Level 2          Level 3
United Kingdom
- Hotel                                                                                       43,224,089                -                  -    43,224,089
- Retail                                                                                       2,807,872                -                  -     2,807,872
- Land bank                                                                                    7,615,725                -                  -     7,615,725
                                                                                              53,647,686                -                  -    53,647,686

As at 31 December 2016 (reviewed)                                                                                              Fair value
                                                                                                Carrying
Euro                                                                                              amount          Level 1            Level 2       Level 3

German
- Retail                                                                                       3,393,501                -                  -     3,393,501
                                                                                               3,353,501                -                  -     3,353,501

As at 30 June 2017 (audited)                                                                                                  Fair value
                                                                                                Carrying 
Euro                                                                                              amount          Level 1            Level 2       Level 3

United Kingdom
- Hotel                                                                                        1,137,200                -                  -     1,137,200
- Retail                                                                                       3,019,715                -                  -     3,019,715
German
- Retail                                                                                       2,180,000                -                  -     2,180,000
                                                                                               6,336,915                -                  -     6,336,915

VALUATION TECHNIQUE AND SIGNIFICANT UNOBSERVABLE INPUTS
The following table shows the valuation technique used in measuring the fair value of investment property held for sale, as
well as the significant unobservable inputs used.

                                                                               Interrelation between key
                                                                               unobservable inputs and fair value
Valuation technique                        Significant unobservable inputs     measurement

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


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

18. SHARE CAPITAL AND GEARED SHARE PURCHASE PLAN SHARES

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

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

Balance at 30 June 2016 (audited)                                    348,625,219   378,530,556              -              -     348,625,219   378,530,556
Issued during the period                                                                                                                               
-  Issue of share capital                                             25,641,026    31,592,882              -              -      25,641,026    31,592,882
-  Distributions reinvested                                            6,317,591     7,983,727              -              -       6,317,591     7,983,727
                                                                     31,958,617    39,576,609              -              -      31,958,617    39,576,609
Distributed during the year                                                                                                                            
-  Scrip distributions                                                        -    (7,994,090)              -              -               -   (7,994,090)
Balance at 31 December 2016 (reviewed)                               380,583,836   410,113,075              -              -     380,583,836   410,113,075
Issued during the period                                                                     
-  Issue of share capital                                             83,333,332   126,392,027              -              -      83,333,332   126,392,027
-  Geared share purchase plan shares (treated as                      12,850,000    21,056,010   (12,850,000)   (21,056,010)               -             -
   treasury shares)
-  Distributions reinvested                                            3,449,131     5,267,796              -              -      3,449,131      5,267,796
                                                                     99,632,463   152,715,833   (12,850,000)   (21,056,010)      86,782,463   131,659,823
Distributed during the year                                                                  
-  Scrip distributions                                                         -   (5,272,635)              -              -               -   (5,272,635)
Balance at 30 June 2017 (audited)                                    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   279,921,998              -              -     160,299,409   279,921,998
-  Distributions reinvested                                            6,250,078    10,412,225              -              -       6,250,078    10,412,225
                                                                    166,549,487   290,334,223              -              -     166,549,487   290,334,223
Distributed during the year                                                                  
-  Scrip distributions                                                         -  (10,424,724)              -              -               -  (10,424,724)
Balance at 31 December 2017 (reviewed)                               646,765,786   837,465,772   (12,850,000)   (21,056,010)     633,915,786   816,409,762

Distributions reinvested represent scrip dividends for which shareholders elect to receive shares by way of a return of capital.

CAPITAL RAISE
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 EUR155,670,514. The group incurred
expenses of EUR1,674,574 (December 2016: EUR199,328; June 2017: EUR942,908) in relation to shares issued during the period, which
were offset against share capital.

DISTRIBUTIONS
The holders of the company's shares are entitled to distributions as declared and to one vote per share at shareholders
meetings of the company. Distributions of the company can be paid from retained earnings or as a return of capital in
accordance with the BVI Business Companies Act 2004, subject to solvency and liquidity requirements.

The following distributions were paid by the group:

                                                                                                                    Reviewed        Reviewed
                                                                                                                   Six-month       Six-month       Audited
                                                                                                                period ended    period ended    Year ended
                                                                                                                 31 December     31 December       30 June
                                                                                                                        2017            2016          2017

Cash                                                                                                               6,957,823         352,014     5,202,917
Scrip                                                                                                             10,424,724       7,994,090    13,266,725
Total                                                                                                             17,382,547       8,346,104    18,469,642
Distributions paid per share (euro cents)                                                                               3.19            2.23          4.89

19. SHARE-BASED PAYMENT RESERVE

The share-based payment reserve relates to the option expense of the group's geared share purchase plan (see note 20).

Reconciliation of geared share purchase plan:

                                                                                                                        Reviewed       Reviewed    Audited
                                                                                                                           As at          As at      As at
                                                                                                                     31 December    31 December    30 June
Euro                                                                                                                        2017           2016       2017
Opening balance                                                                                                          225,973              -          -
Recognised during the period/year                                                                                        517,701              -    319,248
Non-forfeitable distribution                                                                                            (41,153)              -   (93,275)
Closing balance                                                                                                          702,521              -    225,973

20. SHARE-BASED PAYMENT ARRANGEMENTS

The total expense recognised in employment benefits was EUR444,455 (December 2016 EURnil; June 2017: EUR245,419).

The remaining term of the loans at 31 December 2017 was 9.19 years (December 2016: nil; June 2017: 9.69 years).

On 15 June 2017 it was announced that Lukas Nakos, 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 share scheme with no vesting of shares
occurring.

Refer to note 27 for further disclosures of the share-based payment expense included in key management compensation
and directors' remuneration.

21.NON-CONTROLLING INTEREST (NCI)
                                                                                                                      Reviewed       Reviewed      Audited
                                                                                                                         As at          As at        As at
                                                                                                                   31 December    31 December      30 June
Euro                                                                                                                      2017           2016         2017

Prime Kapital CEE Property Investment Management Limited                                                             1,030,314      1,072,595      988,063
                                                                                                                     1,030,314      1,072,595      988,063

RECONCILIATION OF NCI
                                                                                                                      Reviewed       Reviewed      Audited
                                                                                                                         As at          As at        As at
                                                                                                                   31 December    31 December      30 June
Euro                                                                                                                      2017           2016         2017

Opening balance                                                                                                        988,063              -            -
Share of profit                                                                                                        382,507      1,072,575      988,063
Distribution to NCI                                                                                                  (340,256)              -            -
Acquisition of subsidiary with non-controlling interests                                                                     -             20            -
Closing balance                                                                                                      1,030,314      1,072,595      988,063

During the period Prime Kapital CEE Property Investment Management Limited declared and paid a dividend of EUR340,256
(December 2016: EURnil; June 2017 EURnil) to its shareholders.

22. FINANCIAL LIABILITIES
                                                                                                                      Reviewed       Reviewed      Audited
                                                                                                                         As at          As at        As at
                                                                                                                   31 December    31 December      30 June
Euro                                                                                                     Note             2017           2016         2017
Non-current liabilities
Capital contribution                                                                                        5       24,173,824              -            -
Interest rate swaps                                                                                                  1,130,924      2,488,440    1,170,086
Deferred consideration - Bruchsal                                                                                            -      1,615,000            -
Deferred consideration - Heppenheim Park                                                                                     -              -      500,000
Development management fee                                                                                                   -      2,083,575            -
                                                                                                                    25,304,748      6,187,015    1,670,086
Current liabilities
Priority participating profit dividend                                                                      27       5,823,594              -    6,078,256
Development management fee                                                                                  27       4,167,950              -    4,052,171
Deferred consideration - Heppenheim Park                                                                                     -        658,865            -
Deferred consideration - Edeka Thales portfolio                                                                              -        600,000            -
Forward currency contract                                                                                                    -         86,067            -
Interest rate swaps                                                                                                          -              -    1,081,563
                                                                                                                     9,991,544      1,344,932   11,211,990

FINANCIAL LIABILITIES AT AMORTISED COST

CAPITAL CONTRIBUTION
As described in note 5, 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.

DEFERRED CONSIDERATION
Where the group enters into a deferred consideration commitment as part of a property transaction this is recognised as a
financial liability held at amortised cost until it is paid or released.
During the period 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.

Reconciliation of the group's financial liabilities held at amortised cost:

                                                                                                                               Edeka Thales
                                                                                                 Bruchsal       Heppenheim        portfolio
                                                                                                 deferred    Park deferred         deferred        Capital
                                                                                            consideration    consideration    consideration   contribution
Balance at 30 June 2016 (audited)                                                               1,615,000        2,203,865                -              -
Purchase price retained                                                                                 -               -         600,000              -
Purchase price released                                                                                 -     (1,545,000)                -             -
Balance at 31 December 2016 (reviewed)                                                          1,615,000          658,865          600,000              -
Purchase price released                                                                       (1,615,000)        (158,865)        (600,000)             -
Balance at 30 June 2017 (audited)                                                                       -          500,000                -              -
Purchase price released                                                                                 -        (500,000)                -              -
Capital contribution                                                                                    -                -                -     24,022,280
Finance cost - unwind of discount                                                                       -                -                -        152,223
Foreign currency translation reserve                                                                                                                 (679)
Balance at 31 December 2017 (reviewed)                                                                  -                -                -     24,173,824

FINANCIAL LIABILITIES AT FVTPL

INTEREST RATE SWAPS
The group has hedged some of the interest rate exposure on the interest bearing borrowings using interest rate swaps, see
note 23. 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 under which a fee is payable to the developer in relation to the
development of the New Waverley site in Edinburgh.

A priority participating profit dividend is also payable to the developer based on the value of the site following
development.

FORWARD CURRENCY CONTRACT
The group entered into a Polish Zloty forward contract to hedge the exposure on VAT receivable in relation to the Nova Park
acquisition in the prior period. This forward currency contract was held as a fair value asset at 30 June 2017 of EUR66,097, and
was settled during the period, see note 13.

Reconciliation of the group's financial liabilities held at FVTPL:

                                                                                                                                                  Priority
                                                                                                                                Development  participating
                                                                                                              Interest rate      management         profit
                                                                                                                      swaps             fee       dividend
Balance at 30 June 2016 (audited)                                                                                 3,029,495       2,367,448              -
Fair value adjustment (see note 7)                                                                                (559,117)       (205,516)              -
Foreign currency translation difference in other comprehensive Income                                                18,062        (78,357)              -
Balance at 31 December 2016 (reviewed)                                                                            2,488,440       2,083,575              -
Fair value adjustment (see note 7)                                                                                (210,477)       2,090,973      6,272,812
Foreign currency translation difference in other comprehensive income                                              (26,314)       (122,377)      (194,556)
Balance at 30 June 2017 (audited)                                                                                 2,251,649       4,052,171      6,078,256
Fair value adjustment (see note 7)                                                                                   46,353         152,455      (201,586)
Foreign currency translation difference in other comprehensive income                                              (74,078)        (36,676)       (53,076)
Settlement                                                                                                      (1,093,000)               -              -
Balance at 31 December 2017 (reviewed)                                                                            1,130,924       4,167,950      5,823,594

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 31 December 2017 (reviewed)                                                                                               Fair value
                                                                                                           Carrying
                                                                                                             amount  Level 1        Level 2        Level 3
Non-current liabilities
Zurich interest rate swap                                                                                 1,006,914        -      1,006,914              -
Nova Park interest rate swap                                                                                124,010        -        124,010              -
                                                                                                          1,130,924        -      1,130,924              -
Current liabilities
Development management fee                                                                                4,167,950        -              -      4,167,950
Priority participating profit dividend                                                                    5,823,594        -              -      5,823,594
                                                                                                          9,991,544        -              -      9,991,544

As at 31 December 2016 (reviewed)                                                                                               Fair value
                                                                                                           Carrying
                                                                                                             amount  Level 1        Level 2        Level 3
Non-current liabilities
Zurich interest rate swap                                                                                 1,339,491        -      1,339,491              -
Aldi portfolio interest rate swap                                                                         1,148,949        -      1,148,949              -
Development management fee                                                                                2,083,575        -              -      2,083,575
                                                                                                          4,572,015               2,488,440      2,083,575
Current liabilities
Forward currency contract                                                                                    86,067        -         86,067              -
                                                                                                             86,067        -         86,067              -

As at 30 June 2017 (audited)                                                                                                    Fair value
                                                                                                           Carrying
                                                                                                             amount  Level 1        Level 2        Level 3
Non-current liabilities
Zurich interest rate swap                                                                                 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
Aldi portfolio interest rate swap                                                                         1,081,563        -      1,081,563              -
                                                                                                         11,211,990               1,081,563     10,130,427

LEVEL 2 FINANCIAL INSTRUMENTS
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
unobservable inputs used for level 2 financial instruments.

As at 31 December 2017, 31 December 2016 and 30 June 2017
                                                                                                 Inter-relationship between
                                                                                                 inputs and fair value
Financial instrument             Valuation technique              Inputs                         measurement
Interest rate swaps              The fair value is based on       - 3 month Euro libor / Swiss   The estimated fair value
                                 discounting future cash            libor                        would increase/(decrease) if:
                                 flows using the interest rate    - Swap rate                    - 3 month Euro libor/Swiss
                                 swap curves plus the historic    - Notional loan value            libor was higher/ (lower)
                                 charged credit margin at the     - Fixed rate of interest       - Swap rate was lower/
                                 dates when the cash flows                                         (higher)
                                 will take place.                                                - Notional loan value was
                                                                                                   lower/ (higher)
                                                                                                 - Fixed rate of interest was
                                                                                                   lower/ (higher)
LEVEL 3 FINANCIAL INSTRUMENTS

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 (see note 11) 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 31 December 2017, 31 December 2016 and 30 June 2017

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

23.INTEREST BEARING BORROWINGS
                                                                                                                     Reviewed       Reviewed       Audited
                                                                                                                        As at          As at         As at
                                                                                                                  31 December    31 December       30 June
Euro                                                                                                                     2017           2016          2017
Non-current - secured bank loans
UK investment property                                                                                              7,604,642     31,691,617    30,284,516
German investment property                                                                                        102,402,299     77,943,361   103,478,073
Swiss investment property                                                                                           7,296,148      8,313,288     7,989,364
CEE investment property                                                                                            49,354,406             -             -
                                                                                                                  166,657,495    117,948,266   141,751,953
Current - secured bank loans
UK investment property                                                                                             23,228,329      1,530,080     1,489,732
German investment property                                                                                          2,381,698      1,903,083     3,614,901
Swiss investment property                                                                                             333,294        363,168       356,811
CEE investment property                                                                                             1,985,767              -             -
                                                                                                                   27,929,088      3,796,331     5,461,444
                                                                                                                  194,586,583    121,744,597   147,213,397

The carrying value of interest bearing borrowings approximates their fair value.

Interest bearing borrowings are held at amortised cost. Accordingly, interest on interest bearing borrowings drawn down
to fund development property is capitalised. All other interest is charged to profit or loss at the effective interest rate.

Reconciliation of the group's carrying amount of interest bearing borrowings:

                                                                                                                     Reviewed       Reviewed       Audited
                                                                                                                        As at          As at         As at
                                                                                                                  31 December    31 December       30 June
Euro                                                                                               Note                  2017           2016          2017
Opening balance                                                                                                   147,213,397     44,578,595    44,578,595
Drawn down                                                                                                         53,000,000     80,430,900   111,657,786
Capitalised transaction costs                                                                                       (699,386)    (1,456,967)   (2,168,837)
Capital repayment                                                                                                 (4,409,446)    (1,135,900)   (7,098,329)
Finance costs - income statement                                                                      8             2,156,911        840,195     2,231,667
Finance costs - capitalised                                                                          11               308,904        228,209       569,298
Interest paid                                                                                                     (2,161,092)      (842,927)   (2,470,916)
Foreign currency translation difference                                                                             (822,705)      (897,508)      (85,867)
Closing balance                                                                                                   194,586,583    121,744,597   147,213,397

Interest on general borrowings of EUR308,904 was capitalised to investment property during the period (December 2016:
EUR228,209; June 2017: EUR569,298), see note 11.

SUMMARY OF INTEREST BEARING BORROWING TERMS AND COVENANTS

The group is subject to both fixed and variable interest rates on its interest bearing borrowings:

                                                                                                                     Reviewed      Reviewed
                                                                                                                        As at         As at        Audited
                                                                                                                  31 December   31 December          As at
Euro                                                                                                                     2017          2016   30 June 2017
Fixed debt                                                                                                        145,605,748    69,368,769    112,857,253
Variable debt                                                                                                      48,980,835    52,375,828     34,356,144
                                                                                                                  194,586,583   121,744,597    147,213,397

The borrowing terms and covenants are consistent with those disclosed in the integrated annual report except for the loan
which was drawn down during the period, the terms of which are:

                                                                                                                           Annual
                                                                                                                          capital
                                                                                                                        repayment
Borrowing terms                                                                             Term of debt   Currency        (Euro)    Margin      Base rate
CEE investment property
-  Variable debt                                                                               4.5 years       Euro       530,000     2.50%    12M Euribor

                                                                                                                     Debt service
Covenants                                                                                                             cover ratio            Loan to value
CEE investment property
-  CEE variable debt                                                                                                         120%                      65%

24. TRADE AND OTHER PAYABLES
                                                                                                                        Reviewed     Reviewed      Audited
                                                                                                                        As at 31     As at 31        As at
                                                                                                                        December     December      30 June
Euro                                                                                                                        2017         2016         2017
Trade payables                                                                                                         6,406,362    6,152,030    6,722,430
Current taxation payable                                                                                               3,149,540      593,793    1,020,201
Deferred income                                                                                                          940,543    1,373,463      854,603
Other                                                                                                                    847,300           -         5,363
VAT payable                                                                                                              785,656    1,233,088      984,790
Construction payables                                                                                                    150,386      707,600    1,229,375
                                                                                                                      12,279,787   10,059,974   10,816,762

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

25. OPERATING SEGMENTS

The group's chief operating decision maker is determined to be the executive management team. During the current
period the segmentation to monitor group performance was refined because the group invested in real-estate equities. As
a result, there are now five reportable segments (there were no financial investments in December 2016 and June 2017).
Performance is now considered as follows:

Reportable segment             Description

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

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

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

Financial investments          Investment in real estate equities.

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 five reportable segments. These reportable segments have different risk profiles and generate income from different
sources, accordingly, this 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.

                                                                      Income-
                                                                   generating     Development     Land bank       Financial
Euro                                                                 property        property and inventory     investments       Corporate          Total
Statement of comprehensive income
   External revenue                                                20,980,965         (1,741)       119,486               -          22,825     21,121,535
   Segment profit/(loss) before tax                                13,789,374     (1,618,388)     2,505,231       1,321,171     (2,880,517)     13,116,871

  Other material items
  Finance income                                                        3,174       3,795,205       152,242               -               -      3,950,621
  Finance cost                                                    (2,178,353)               -     (152,223)               -       (146,796)    (2,477,372)
  Depreciation                                                              -               -             -               -        (18,098)       (18,098)
  Current taxation                                                  (217,206)             139    1,855,943)               -         (5,623)    (2,078,633)
  Deferred taxation                                               (1,358,739)               -     2,406,486               -               -      1,047,747
  Share of profit from investment in equity accounted                       -       1,543,057             -               -               -      1,543,057
  investee
  Fair value adjustments                                            1,448,741     (5,676,807)     1,659,401       1,954,910               -      (613,755)
  Foreign exchange                                                  (149,616)               -             -               -       (436,570)      (586,186)
Statement of financial position
   Segment non-current assets                                     451,061,018     127,138,251    62,930,662     200,120,816      23,063,752    864,314,499
   -  Investment in equity accounted investee                               -      21,751,615             -               -               -     21,751,615
   Segment current assets                                          67,278,364         573,059    18,504,267               -     162,322,147    248,677,837
   Segment non-current liabilities                                171,550,409               -    24,173,824               -               -    195,724,233
   Segment current liabilities                                     36,614,315       9,994,023     2,484,870               -       1,146,575     50,239,783

31 December 2016 (reviewed)
                                                                                      Income-
                                                                                   generating   Development       Land bank
Euro                                                                                 property      property   and inventory      Corporate           Total
Statement of comprehensive income
   External revenue                                                                12,379,928         1,823         227,382              -      12,609,133
   Segment profit/(loss) before tax                                                10,240,594       161,924     (4,488,483)    (4,738,051)       1,175,984
  Other material items
  Finance income                                                                          157             -              17         39,353          39,527
  Finance cost                                                                      (840,545)             -               -        (1,111)       (841,656)
  Depreciation                                                                              -             -               -       (13,504)        (13,504)
  Share of profit from investment in equity accounted investee                                       36,154                                         36,154
  Fair value adjustments                                                            1,150,391       126,544     (4,542,555)              -     (3,265,620)
  Foreign exchange                                                                   (57,672)            22               -    (2,850,427)     (2,908,077)
Statement of financial position
   Segment non-current assets                                                     427,871,884    27,646,524      40,933,425     23,073,301     519,525,134
   -  Investment in equity accounted investee                                               -             -      20,057,968              -      20,057,968
   Segment current assets                                                          37,765,491       106,723       4,460,800      9,233,614      51,566,628
   Segment non-current liabilities                                                123,704,609     2,083,575               -         40,410     125,828,594
   Segment current liabilities                                                     13,192,414       712,180         592,926        780,703      15,278,223

30 June 2017 (audited)
                                                                                      Income-
                                                                                   generating   Development       Land bank
Euro                                                                                 property      property   and inventory      Corporate           Total

Statement of comprehensive income
  External revenue                                                                 31,532,298             -          34,632         15,498      31,582,428
  Segment profit/(loss) before tax                                                 49,460,087       872,805     (5,003,657)    (5,069,622)      40,259,613
  Other material items
  Finance income                                                                        1,350     1,134,247              16         71,583       1,207,196
  Finance cost                                                                    (2,235,473)             -               -        (3,024)     (2,238,497)
  Depreciation                                                                       (23,977)       (1,963)         (1,924)              -        (27,864)
  Current taxation                                                                (1,741,449)             -               -              -     (1,741,449)
  Deferred taxation                                                               (3,942,153)             -               -              -     (3,942,153)
  Share of profit from investment in equity accounted investee                              -       178,397               -              -         178,397
  Fair value adjustments                                                           30,161,319             -     (4,569,029)              -      25,592,290
  Exchange differences                                                              (819,456)            18               -    (3,865,457)     (4,684,895)
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 assets/liabilities or income/expense.

GEOGRAPHICAL INFORMATION
The geographical information below analyses the group's revenue and non-current assets by the jurisdiction in which the
underlying assets are held.

REVENUE
                                                                                                                   Reviewed        Reviewed
                                                                                                                  Six-month       Six-month        Audited
                                                                                                               period ended    period ended     Year ended
                                                                                                                31 December     31 December        30 June
Euro                                                                                                                   2017            2016           2017
UK                                                                                                                4,000,304       3,208,219      7,073,814
Germany                                                                                                           7,379,906       8,075,817     17,041,915
Switzerland                                                                                                         577,782         619,086      1,212,855
Bulgaria                                                                                                          5,172,778               -      1,527,194
Poland                                                                                                            3,990,765         706,011      4,726,650
                                                                                                                 21,121,535      12,609,133     31,582,428

NON-CURRENT ASSETS
                                                                                                                   Reviewed        Reviewed        Audited
                                                                                                                      As at           As at          As at
                                                                                                                31 December     31 December        30 June
Euro                                                                                                                   2017            2016           2017
UK                                                                                                              177,159,719     170,476,751    203,013,452
Germany                                                                                                         214,346,362     215,437,599    214,648,055
Switzerland                                                                                                      14,442,739      19,722,816     15,461,810
Romania (Prime Kapital development joint venture and PKM Preference Shares)                                     126,681,067      20,057,968    121,305,189
Poland                                                                                                           89,707,103      93,830,000    156,488,393
Bulgaria                                                                                                         67,181,279               -              -
France                                                                                                          142,274,153               -              -
Netherlands                                                                                                      18,058,161               -              -
Sweden                                                                                                           14,463,916               -              -
                                                                                                                864,314,499     519,525,134    710,916,899

26. EARNINGS/(LOSS) PER SHARE

The calculation of basic and diluted earnings/(loss) per share has been based on the following profit attributable to
ordinary shareholders.

                                                                                                                    Reviewed        Reviewed
                                                                                                                   Six-month       Six-month       Audited
                                                                                                                period ended    period ended    Year ended
                                                                                                                 31 December     31 December       30 June
Euro                                                                                                                    2017            2016          2017
Profit/(loss) for the period/year attributable to the owners of the group                                         11,703,478       (397,549)    33,587,948

BASIC EARNINGS/(LOSS) PER SHARE
The calculation of basic earnings/(loss) per share has been based on the following weighted-average number of ordinary
shares outstanding.

                                                                                                                    Reviewed       Reviewed
                                                                                                                   Six-month      Six-month        Audited
                                                                                                                period ended   period ended     Year ended
                                                                                                                 31 December    31 December        30 June
Euro                                                                                                                    2017           2016           2017
Issued ordinary shares at start of the period/year                                                               467,366,299    348,625,219    348,625,219
Effect of shares issued for capital raises                                                                        50,858,057     21,599,777     44,608,360
Effect of shares issued for scrip distributions                                                                    2,751,393      2,025,750      5,023,402
Weighted-average number of ordinary shares                                                                       520,975,749    372,250,746    398,256,981

BASIC EARNINGS/(LOSS) PER SHARE
                                                                                                                    Reviewed       Reviewed
                                                                                                                   Six-month      Six-month        Audited
                                                                                                                period ended   period ended     Year ended
                                                                                                                 31 December    31 December        30 June
Euro                                                                                                                    2017           2016           2017
Profit/(loss) attributable to ordinary shareholders                                                               11,703,478      (397,549)     33,587,948
Weighted-average number of ordinary shares                                                                       520,975,749    372,250,746    398,256,981
Basic earnings/(loss) per share (euro cents)                                                                            2.25         (0.11)           8.43

DILUTED EARNINGS/(LOSS) 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.

                                                                                                                    Reviewed       Reviewed
                                                                                                                   Six-month      Six-month        Audited
                                                                                                                period ended   period ended     Year ended
                                                                                                                 31 December    31 December        30 June
Euro                                                                                                                    2017           2016           2017
Weighted-average number of ordinary shares (basic)                                                               520,975,749    372,250,746    398,256,981
Effect of share options                                                                                              255,935             -              -
Weighted-average number of ordinary shares (diluted)                                                             521,231,684    372,250,746    398,256,981

DILUTED EARNINGS/(LOSS) PER SHARE
                                                                                                                    Reviewed       Reviewed
                                                                                                                   Six-month      Six-month        Audited
                                                                                                                period ended   period ended     Year ended
                                                                                                                 31 December    31 December        30 June
Euro                                                                                                                    2017           2016           2017
Profit/(loss) attributable to ordinary shareholders                                                               11,703,478      (397,549)     33,587,948
Weighted-average number of ordinary shares                                                                       521,231,684    372,250,746    398,256,981
Diluted earnings/(loss) per share (euro cents)                                                                          2.25         (0.11)           8.43

At 31 December 2017, options on 2,873,333 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/(LOSS) AND HEADLINE EARNINGS/(LOSS) PER SHARE

                                                                                                                                       Reviewed
                                                                                                                                Six-month period ended
                                                                                                                                   31 December 2017
Euro                                                                                                                     Note         Gross            Net
Profit attributable to ordinary shareholders                                                                                     11,703,478     11,703,478
Adjusted for:
Revaluation of investment property                                                                                         11     4,140,178      2,306,546
Revaluation of investment property in associate                                                                            14   (1,802,951)    (1,802,951)
Revaluation of investment property held for sale                                                                           17   (1,568,735)    (1,568,735)
Goodwill impairment                                                                                                        10     1,274,346      1,274,346
Headline earnings                                                                                                                13,746,316     11,912,684
Basic headline earnings per share
Weighted-average number of ordinary shares (basic)                                                                              520,975,749    520,975,749
Headline earnings per share (euro cents)                                                                                               2.64           2.29
Diluted headline earnings per share
Weighted-average number of ordinary shares (diluted)                                                                            521,231,684    521,231,684
Headline earnings per share (euro cents)                                                                                               2.64           2.29

                                                                                                                                      Reviewed
                                                                                                                               Six-month period ended
                                                                                                                                  31 December 2016
Euro                                                                                                                                  Gross            Net
Loss attributable to ordinary shareholders                                                                                        (397,549)      (397,549)
Adjusted for:
Revaluation of investment property                                                                                                (598,369)    (1,006,867)
Headline loss                                                                                                                     (995,918)    (1,404,416)
Basic and diluted headline loss per share
Weighted-average number of ordinary shares                                                                                      372,250,746    372,250,746
Headline loss per share (euro cents)                                                                                                 (0.27)         (0.38)

                                                                                                                                           Audited
                                                                                                                                          Year ended
                                                                                                                                         30 June 2017
Euro                                                                                                                                  Gross            Net
Profit attributable to ordinary shareholders                                                                                     33,587,948     33,587,948
Adjusted for:
Revaluation of investment property                                                                                             (36,763,196)   (32,995,314)
Revaluation of investment property held for sale                                                                                  (786,795)              -
Headline (loss)/earnings                                                                                                        (3,962,043)        592,634
Basic and diluted headline (loss)/earnings per share
Weighted-average number of ordinary shares                                                                                      398,256,981    398,256,981
Headline (loss)/earnings per share (euro cents)                                                                                      (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 more relevant
measure.

27.RELATED PARTIES

PARENT AND ULTIMATE CONTROLLING PARTY
The group has no ultimate controlling party, but is controlled by its ordinary shareholders in aggregate.

RELATED PARTY RELATIONSHIPS

ARTISAN REAL ESTATE INVESTORS LIMITED ("ARTISAN")
Artisan is a real estate management company with a measure of commonality of directors with the company.

NEW WAVERLEY ADVISERS LIMITED ("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 which is a related party of the group.

Expenses on-charged from NW Advisers in relation to the development of New Waverley are capitalised as part of
the New Waverley development within investment property. On-charges are charged to the group in accordance with
the development management agreement, they are on an arm's length basis, and relate to the construction costs of the
development.

In addition, the group has provided for a development management fee. This fee is in accordance with the development
management agreement and is on an arm's length basis.

NEW WAVERLEY HOLDINGS LIMITED ("NW HOLDINGS")
NW Holdings is a real estate developer and is a 60% owned subsidiary of Artisan. As such it is controlled by Artisan which
is a related party of the group.

CORONA REAL ESTATE PARTNERS LIMITED ("CORONA")
Corona is a real estate management company with four staff members and is owned 100% by Jonathan Knight who is the
chief investment officer of the group.

PKM DEVELOPMENTS LIMITED
PKM Developments is an associate of the group and MAS owns 40% of the ordinary shares (see note 14).

In 2017, the group provided EUR100,000,000 to acquire 7.5% preference shares in PKM Developments (see note 13). The
group has committed to fund up to a further EUR250,000,000 over the next four years.

MOMATS
Momats provides corporate services and is a director on MAS BVI (Holdings) Limited, a 100% owned subsidiary of the
company.

KEY MANAGEMENT
Key management during the period consists of all directors and the Company secretary:

Lukas Nakos                              Chief executive officer ("CEO") (resigned 31 December 2017)
Malcolm Levy                             Chief financial officer ("CFO")
Jonathan Knight                          Chief investment officer ("CIO")
Ron Spencer                              Chairman
Morné Wilken                             Non-executive director ("NED") (appointed CEO 1 January 2018)
Pierre Goosen                            Non-executive director ("NED")
Gideon Oosthuizen                        Non-executive director ("NED")
Jaco Jansen                              Non-executive director ("NED")
Glynnis Carthy                           Non-executive director ("NED")
Helen Cullen                             Company secretary

Related party transactions
                                                       Income/(expenses)                   Capitalised for the            Balances receivable/(payable) 
                                                   for the period/year ended                period/year ended                      as at

                                                Reviewed    Reviewed     Audited    Reviewed    Reviewed     Audited     Reviewed    Reviewed      Audited
                                             31 December 31 December     30 June 31 December 31 December     30 June  31 December 31 December      30 June
Euro                                                2017        2016        2017        2017        2016        2017         2017        2016         2017
NW Advisers
-  Oncharged development costs                         -           -       (293)     230,704  12,049,068  12,860,460      163,350    (90,587)    (214,680)
-  Development management fee(1)               (152,455)     913,946 (1,684,723)           -           -           -  (4,167,950) (2,083,575)  (4,052,171)
                                               (152,455)     913,946 (1,685,016)     230,704  12,049,068  12,860,460  (4,004,600) (2,174,162)  (4,266,851)
NW Holdings
-  Development priority participation profit     201,586           - (6,078,256)           -           -           -  (5,823,594)           -  (6,078,256)
   dividend(1)
                                                 201,586           - (6,078,256)           -           -           -  (5,823,594)           -  (6,078,256)
Corona
-  Investment advisory services                (472,760)   (486,539)   (889,482)      96,931      74,861     176,266            -           -     (83,857)
                                               (472,760)   (486,539)   (889,482)      96,931      74,861     176,266            -           -     (83,857)
Artisan
-  Oncharged administrative expenses              22,825     (6,179)    (13,583)           -           -           -        8,388     (2,920)            -
                                                  22,825     (6,179)    (13,583)           -           -           -        8,388     (2,920)            -
PKM Developments
-  Investment in equity accounted investees    1,543,057      36,154     178,397           -           -           -   21,751,615  20,057,968   20,205,297
   (see note 14)
-  PKM Developments preference shares (see     3,795,207           -   1,134,245           -           -           -  104,929,452           -  101,134,245
   note 8)
                                               5,338,264      36,154   1,312,642           -           -           -  126,681,067  20,057,968  121,339,542
Momats
-  Directors fees and legal and professional    (11,840)           -           -           -           -           -            -           -            -
   fees
                                                (11,840)           -           -           -           -           -            -           -            -
                                               4,925,620     457,382 (7,353,695)     327,635  12,123,929  13,036,726  116,861,261  17,880,886  110,910,578

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

TRANSACTIONS WITH KEY MANAGEMENT
Six months ended 31 December 2017 (reviewed)
                                                                                                                                                    IFRS 2
                                                                                                              Short-term    Long-term               option
Euro                                                           Role               Basic salary  Benefits(2)    incentive    incentive      Total   expense

Lukas Nakos(1)                                                 CEO                           -            -            -            -          -         -
Malcolm Levy                                                   CFO                           -            -            -            -          -   242,008
Jonathan Knight                                                CIO                      33,970            -            -            -     33,970   107,413
Ron Spencer                                                    Chairman                 15,000            -            -            -     15,000         -
Gideon Oosthuizen                                              NED                      13,750            -            -            -     13,750         -
Jaco Jansen                                                    NED                      12,500            -            -            -     12,500         -
Morné Wilken                                                   NED                      10,000       13,163            -            -     23,163         -
Pierre Goosen                                                  NED                      10,000            -            -            -     10,000         -
Glynnis Carthy                                                 NED                      13,750            -            -            -     13,750         -
Helen Cullen                                                   Company secretary        48,540            -            -            -     48,540    35,804
                                                                                       157,510        13,163           -            -    170,673   385,225

(1) During January 2018 the Board of Directors approved an exit payment of EUR157,794 to Lukas Nakos.

(2) During the six-month period to 31 December 2017, the group paid EUR13,163 in relation to Morné Wilken's relocation.

Six months ended 31 December 2016 (reviewed)

                                                                                            Basic                     Short-term      Long-term
Euro                                                            Role                       salary      Benefits        incentive      incentive      Total
Lukas Nakos                                                     CEO                        95,120             -          190,240              -    285,360
Malcolm Levy                                                    CFO                        89,175             -          178,350              -    267,525
Jonathan Knight                                                 CIO                        35,670             -           89,176              -    124,846
Ron Spencer                                                     Chairman                   15,000             -                -              -     15,000
Gideon Oosthuizen                                               NED                        13,750             -                -              -     13,750
Jaco Jansen                                                     NED                        13,750             -                -              -     13,750
Morné Wilken                                                    NED                        10,000             -                -              -     10,000
Pierre Goosen                                                   NED                        10,000             -                -              -     10,000
Helen Cullen                                                    Company secretary          46,700             -           19,800              -     66,500
                                                                                          329,165             -          477,566              -    806,731
Year ended 30 June 2017 (audited)
                                                                                                                                                    IFRS 2
                                                                                                              Short-term    Long-term               option
Euro                                                           Role               Basic salary     Benefits    incentive    incentive      Total   expense
Lukas Nakos                                                    CEO                     125,000            -      181,952            -    306,952         -
Malcolm Levy                                                   CFO                     117,656            -      170,580            -    288,236   149,237
Jonathan Knight                                                CIO                      68,232            -       85,290            -    153,522    66,238
Ron Spencer                                                    Chairman                 30,000            -            -            -     30,000         -
Gideon Oosthuizen                                              NED                      27,500            -            -            -     27,500         -
Jaco Jansen                                                    NED                      27,500            -            -            -     27,500         -
Morné Wilken                                                   NED                      20,000            -            -            -     20,000         -
Pierre Goosen                                                  NED                      20,000            -            -            -     20,000         -
Glynnis Carthy                                                 NED                           -            -            -            -          -         -
Helen Cullen                                                   Company secretary        96,822            -       20,538            -    117,360    22,079
                                                                                       532,710            -      458,360            -    991,070   237,554

28. SUBSEQUENT EVENTS

After the reporting date the group completed its acquisition of the listed real estate equity securities with the purchase of a further
75,100 shares of Mercialys SA. As at 16 February 2018 the listed real estate equity securities had a fair value of EUR185,224,054.

SUPPLEMENTARY INFORMATION - UNAUDITED
Six-month period ended 31 December 2017

STATEMENT OF DIRECT AND INDIRECT INVESTMENT RESULT
                                                                                                                     IFRS             IFRS
                                                                                                                Six-month        Six-month
                                                                                                             period ended     period ended            IFRS
                                                                                                              31 December      31 December      Year ended
Euro                                                                                                                 2017             2016    30 June 2017
DIRECT INVESTMENT RESULT
Gross rental income                                                                                            18,974,145       11,067,791      27,032,238
Service charge income and other recoveries                                                                      2,147,390        1,541,342       4,550,190
                                                                                                               21,121,535       12,609,133      31,582,428
Service charge and other property operating expenses                                                          (5,859,557)      (2,421,484)     (7,597,216)
Net rental income                                                                                              15,261,978       10,187,649      23,985,212
Other income                                                                                                       89,831                -               -
Corporate expenses                                                                                            (2,500,957)      (1,885,474)     (3,253,610)
Net operating income                                                                                           12,850,852        8,302,175      20,731,602

Share of gain from equity accounted investees                                                                     137,672           36,154         132,602
Profit before net financing costs                                                                              12,988,524        8,338,329      20,864,204
Finance income                                                                                                  3,950,621           39,527       1,207,196
Finance costs                                                                                                 (2,477,372)        (841,656)     (2,238,497)
Profit before taxation                                                                                         14,461,773        7,536,200      19,832,903
Current taxation                                                                                                (218,234)        (424,496)     (1,741,449)
Non-controlling interest                                                                                        (676,312)         (42,098)       (192,276)
TOTAL DIRECT INVESTMENT RESULT                                                                                 13,567,227        7,069,606      17,899,178
INDIRECT INVESTMENT RESULT
Sales of inventory property                                                                                     6,398,637                -               -
Cost of sales of inventory property                                                                           (5,339,258)                -               -
Profit on sales of inventory property                                                                           1,059,379                -               -
Fair value adjustments                                                                                          (613,755)      (3,265,620)      25,592,290
Goodwill impairment                                                                                           (1,274,346)                -
Share of gain from equity accounted investees                                                                   1,405,385                -          45,795
Investment expenses                                                                                           (1,335,379)        (186,519)       (281,061)
Other expenses                                                                                                          -                -       (245,419)
- Service charges and other property operating expenses                                                                 -                -           (820) 
- Corporate expenses                                                                                                    -                -       (244,599)
Exchange differences                                                                                            (586,186)      (2,908,077)     (4,684,895)
Current taxation                                                                                              (1,860,399)                -         245,419
- Capital gain taxation                                                                                       (1,659,117)                -               -
- Inventory property sales                                                                                      (201,282)                -               -
Deferred taxation                                                                                               1,047,747         (76,462)     (3,942,153)
Non-controlling interest                                                                                          293,805      (1,030,477)       (795,787)
TOTAL INDIRECT INVESTMENT RESULT                                                                              (1,863,749)      (7,467,155)      15,688,770
Profit/(loss) for the period/year                                                                              11,703,478        (397,549)      33,587,948
Non-controlling interest                                                                                          382,507        1,072,575         988,063
IFRS PROFIT - DIRECT PLUS INDIRECT INVESTMENT RESULT                                                           12,085,985          675,026      34,576,011

                                                                                                                                 Six-month       Six-month
                                                                                                                              period ended    period ended
                                                                                                                               31 December     31 December
Euro                                                                                                                                  2017            2016
Direct investment result                                                                                                        13,567,227       7,069,606
Company specific adjustments:
Elimination of direct earnings in associate                                                                                      (137,672)               -
Net attributable profit on sales of inventory property                                                                             643,573               -
Prior period adjustments                                                                                                                 -       1,372,699
Distributable earnings before effect of shares issued during the period                                                         14,073,128       8,442,305
Weighted average number of shares in issue                                                                                     520,975,749     372,250,746
Distributable earnings per share (euro cents per share)                                                                               2.70            2.27

Distributable earnings before effect of shares issued during the period                                                         14,073,128       8,442,305
Adjustment relating to shares issued during the period                                                                           3,050,851         188,987
Distributable earnings (after adjustment for shares issued during the                                                           17,123,979       8,631,292
period)
Closing number of shares in issue                                                                                              633,915,786     380,583,836
Euro cents
Distributable earnings per share                                                                                                      2.70            2.27
Adjustment from reserves per share                                                                                                    0.88            0.39
Distribution per share                                                                                                                3.58            2.66

EPRA PERFORMANCE MEASURES
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, it is intended
to adopt the EPRA performance measures on a comprehensive basis. However, as the business goes through the current
stage of rapid change and growth, not all of the metrics are currently considered 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
                                                                                                               31 December     31 December           As at
Euro                                                                                                   Note           2017            2016    30 June 2017
Equity attributable to owners of the group                                                                     865,998,006     428,912,350     582,053,971
Adjustments for:
Fair value of interest rate swaps                                                                                1,130,924       2,448,440       2,251,649
Deferred tax                                                                                                     3,005,710         605,304       4,240,319
NCI in respect of the above adjustments                                                                          (247,180)               -       (102,479)
EPRA NAV                                                                                                       869,887,460     432,006,094     588,443,460
Fully diluted number of shares                                                                                 634,171,721     380,583,836     467,366,299
Closing number of shares in use                                                                                633,915,786     380,583,836     467,366,299
Effect of share options                                                                                  26        255,935               -               -
EPRA NAV per share (euro cents)                                                                                     137.17          113.51          125.91

GLOSSARY

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

Distributable earnings             Earnings attributable to the owners of the company that are available for
                                   distribution. This includes: net rental income, dividends received, finance
                                   income on preference shares, profit on sales of inventory property and the
                                   related taxation and non-controlling interest adjustments. This excludes:
                                   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. 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.

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

Financial investments              Investment in listed real estate equities.

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

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.

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

Investment property                The value of external debt divided by the fair value of investment property
Loan-to-Value (LTV)                and financial investments. This measure ignores cash balances.

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.

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

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.

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



26 February 2018

Sponsor 
Java Capital


Date: 26/02/2018 09:00:00 
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