Stock Exchange News Service

Reviewed results for the six months ended 31 December 2019 and changes to the board of directors

MAS Real Estate Inc. 
Registered in British Virgin Islands
Registration number 1750199 
(JSE): B96TSD2 
JSE share code: MSP 
ISIN: VGG5884M1041 
LEI code: 213800T1TZPGQ7HS4Q13 
(MAS, the Company or the Group)


MAS is currently disposing of direct and indirect investments in Western Europe (WE)
and redeploying proceeds in Central and Eastern Europe (CEE). Since the extraordinary
shareholders' meeting (20 November 2019) and consequential alterations to the Board and
executive management, strategy has altered significantly (detailed in Strategy Implementation
Update below). The financial results include, in addition to the reported IFRS results,
segmental reporting prepared on a proportionate, consolidated basis. These do not replace
IFRS results but assist with interpretation. Detailed financial results, as well as a revised and
updated Company Profile, as of 31 December 2019, including highlights and supplemental
operational information, are available on the Company website. Shareholders should read the
Company Profile and Strategy Implementation Update in conjunction with the financial results
for the six months ending 31 December 2019.

The Company achieved adjusted total earnings of EUR46.54 million for the six months ending 31 December 2019, 
divided into adjusted distributable earnings of EUR27.55 million and adjusted non-distributable earnings of 
EUR18.99 million. Tangible net asset value (NAV) is EUR1.24 per share as of 31 December 2019 (down 6.77% 
from 30 June 2019). 

The issue of 67 million shares on 27 November 2019 to acquire Prime Kapital's interest in the
Investment Joint Venture (IJV) was predicted to dilute per share NAV. However, investments
in CEE performed excellently, with positive CEE revaluations substantially offsetting dilution.
Unfortunately, Tangible NAV per share was heavily impacted by the amount of EUR36.07 million
raised, subsequent to 31 December 2019 but recorded herein, to provide for costs and discounts to 
book value expected to be incurred by selling the assets in WE (detailed in Disposals below).

Adjusted distributable earnings were 4.24 euro cents per share (compared to 4.33 euro cents
per share for the previous six months). The Board has consequently declared a cash dividend of
4.24 euro cents per share for the six months ending 31 December 2019 (compared to 3.78 euro
cents per share for the six months ended 31 December 2018). The dividend will be paid on, or
about, 27 March 2020.

Group adjusted total earnings is, on a segmented basis, the combined return of (i) the
Company's directly owned income property and operations in CEE, (ii) its investment in
the Development Joint Venture (DJV) with Prime Kapital in CEE (including earnings from a
proportion of completed DJV owned income properties and the development activities which
are reported on separately under Developments, Extensions and Refurbishments below), (iii)
its directly owned income property operations in WE and (iv) investments in listed securities
(together with elements disclosed as Corporate).

Property in CEE performed very well. CEE income properties acquired directly or developed in
the DJV for EUR415.2 million were valued at EUR516.2 million on 31 December 2019, of this increase
EUR39.76 million was recognised in the six months to 31 December 2019. Like-for-like (LFL) retail
sales per square meter increased by 8.2% in the six months to 31 December 2019 (7.8% in the
twelve months), resulting in a 10.6% overall occupancy cost ratio. Over the same six months,
passing net rental income increased by EUR10.1 million (35.8%), which includes EUR7.0 million
from the acquisition of Prime Kapital's 20% effective interest in the IJV, EUR2.5 million from the
completion of developments, and EUR0.6 million from LFL growth in passing net rental income.
The latter represents an increase of 2.1% in the six months to 31 December 2019, driven
primarily by a 16% uplift on EUR2.5 million of re-lettings (23% uplift on EUR4.5 million of re-lettings
for twelve months) achieved in spite of a significant base rent reduction for the food anchor
at Nova Park (Gorzow Wielkopolski, Poland). The relatively low occupancy of 95.2% on 
31 December 2019 is not a concern, as occupancy is affected by the ongoing refurbishment of two
malls and predicted lower initial occupancy at two newly developed open-air malls (detailed in
Developments, Extensions and Refurbishments below). The 0.8% decrease in LFL footfall is due
to Poland's Sunday trading ban and ongoing refurbishments. Strong growth in retail sales of the
Group's assets is expected throughout the current financial period, leading to expected further
positive results for properties in CEE during the second half of the financial year.

The assets in WE performed as expected due to 82% of rental being fixed, with a weighted
average lease term of 8.54 years. The EUR2.26 million valuation gain (due mostly to tightening
yields) is blighted by the amount of EUR36.07 million raised to provide for the estimated costs and 
discounts related to the planned disposals of the Western European properties (detailed in Disposals 
below). MAS has accelerated the Western European disposal program and intends to dispose of EUR508 million 
worth of properties in WE by the end of the 2020 calendar year (and the balance soon thereafter). These assets 
should be considered as 'Held for Sale' (despite not all having been classified as such due to strict 
held for sale recognition criteria under IFRS), and, as a result, their contribution to total adjusted 
earnings will reduce in the future.

On 31 December 2019, listed securities were valued for EUR131.35 million, with EUR61.93 million
of debt secured against it. EUR28.07 million of securities were disposed of at a realised loss of
EUR4.30 million whilst the difference to the gain reported on at 31 December 2019 was unrealised.
Due to efficient gearing, investments contributed EUR3.71 million to adjusted distributable
earnings, and this will reduce during the current period as shares to the value of EUR51.06 million
were sold between 31 December 2019 and the date of this report.

In the DJV, Prime Kapital completed the Zalau Value Centre and DN1 Value Centre
developments (both in Romania) and these were opened for trade in November and December 2019, 
respectively. These open-air malls were developed to the same design as the Roman
and Baia Mare developments: a large number of international and national anchors directly
and conveniently accessible from extensive parking, combined with a hypermarket-anchored
services mall with significant, upmarket leisure, fast food and entertainment components.
The yields on cost are 12.2% at Zalau and 11.1% at DN1. These continual, impressive results
underline the strength of Prime Kapital's unique integrated development and construction approach.

With projects worth EUR220.83 million under construction and EUR552.17 million under permitting,
the total DJV development pipeline is EUR773 million.

Currently under construction are a 32,900m(2) GLA mall (Targoviste, Romania) that is expected
to open for trading in May 2020, Mall Moldova, a 92,000m(2) GLA super-regional enclosed mall
(Iasi, Romania), a 17,000m(2) GLA open-air mall (Sfantu Gheorghe, Romania) and Prime Kapital's
first residential development in Bucharest, Marmura Residence with 135 of 465 apartments
sold to date. The latter is the first in a pipeline of high-quality residences sold at similar prices
to lower-quality residences, a deliberate strategy establishing Prime Kapital's reputation for
reliable, superior housing.

Exposure to DJV projects under permitting was EUR14.1 million at 31 December 2019. 
This is an important development risk indicator, as it highlights the relative risk to which 
MAS is exposed from a permitting perspective based on its interest in the DJV.

The Silk District, a mixed-use office and residential development (Iasi, Romania), represents
EUR258.03 million of DJV projects under permitting. Iasi is the country's second-largest city, the
second largest university hub outside Bucharest, and the most important industrial location
in Romania's north east, with 369,000 inhabitants, of which 53,000 are students. The project
will convert a 10ha industrial site near the city centre into a vibrant business and community
hub, with approximately 97,600m(2) GLA of A-grade offices and over 2,500 modern residential
units, with a wide range of ancillary facilities, including retail, leisure, hotel, kindergarten and
private clinic. The project addresses the significant shortage of A-grade offices and quality
housing reducing Iasi's ability to attract investment and retain young talent, by rejuvenating
derelict industrial property, introducing over 4.9ha of parkland and making use of the excellent,
under-utilised, public transport network to efficiently service a burgeoning community.
Unsurprisingly, the project was enthusiastically received by the locals and benefits from
overwhelming public support. Independent analysis by Cushman & Wakefield indicates that it
will contribute an estimated EUR160 million in taxes to the local community budget over ten years.

Zoning was expected to be completed Fourth Quarter (Q4) 2019, with construction starting
Second Quarter (Q2) 2020, but has unfortunately been delayed. Despite required zoning
consents being in place beginning December 2019, it was only approved by the local urbanism
commission on 24 February 2020 resulting in a postponed local council submission. Provided
that the process remains on track, construction will commence September 2020.

Construction will soon commence on the much-anticipated Avalon Estate, Prime Kapital's
second residential development, as building permits have been issued. The project was
classified as 'under permitting' in the Company Profile, as two road connection permits were
outstanding at publication, and work will commence when they are received.

The extension and refurbishment of Nova Park, Poland, and Galleria Stara Zagora, Bulgaria, are
progressing, and, when finished, will solidify the malls' current regional dominance. Permitting
to extend and convert Militari Shopping centre, Romania, into an approximately 80,147m(2) GLA
mall is ongoing, and construction may begin sooner than anticipated.

Disposal of Western European property is a strategic priority. MAS aims to dispose of EUR508 million 
worth of such assets by December 2020 and the remainder by 2021. The assets in WE were re-valued by 
external valuers at EUR544 million on 31 December 2019. Although Western European direct investments 
should generally be disposed of at these valuations, assets with relatively high future capital 
expenditure requirements and higher than standard vacancy may require discounting to facilitate 
sales if buyers do not agree with valuers' assumptions. In addition, there are significant associated 
costs to the planned sales, including punitive fixed-interest arrangements, early debt repayment 
penalties payable to banks, agency fees and others. 

Retaining low-growth Western European property to reduce bank related exit costs or fill vacancies, 
prior to selling it, is unlikely to improve long-term returns. Accordingly, based on the information 
available to management at the date of this report, an amount of  EUR36.07 million was raised in the 
calculation of Tangible NAV to provide for these expected costs and discounts.   

The remaining land at Langley was disposed of for GBP15 million (GBP14.24 million/EUR16.73 million book value 
on 31 December 2019) after 31 December 2019. The sale is conditional upon vacating the site, relocating 
parking and electrical equipment. Total cost of the sale, including relocation and disposal, is 
EUR1 million (estimated). Proceeds should be received by the end of March 2020.

Group net debt to the value of assets (LTV) ratio was 33.7% on 31 December 2019. As Western
European assets are disposed of, related debt will be repaid. Weighted average cost of
debt amounted to 2.87% and will rise as Western European debt is repaid. The Group held
EUR138 million in cash and net listed securities, and had access to a further EUR62.97 million in
undrawn debt facilities on 31 December 2019.

The Group's gearing is balanced and conservative, monitoring covenants to avoid early calls
for redemption. Long-term overall debt will be limited to a maximum LTV ratio of 40%, or, on
a forward-looking basis, seven times net rental income. Therefore, on 31 December 2019,
there was EUR64.2 million remaining debt capacity for current income properties in CEE, and
EUR181.9 million of additional future debt capacity for commercial assets in CEE.

MAS plans to sell the majority of its Western European properties by the end of the 2020
calendar year. The disposals of these assets, which have been a drag on MAS' total adjusted
earnings growth, represent a renewed focus on long-term total returns on investments. The
strategy implementation update below contains a detailed discussion of the factors that will
impact financial performance over the next five years. Following the IJV transaction, MAS
has an exemplary management team with a demonstrated ability to outperform competitors
in CEE. Ambitious operational targets are in place with regard to the redeployment strategy
in CEE, an attractive development and extension pipeline remains, and coherent investment
principles were adopted. The Board is confident that if these targets are achieved and
investment principles adhered to, adjusted total earnings per share and dividends per share are
set to grow strongly over the next five years, even if the total investment in income property
and therefore adjusted distributable earnings per share and dividend payments per share may
decline in the short-term because of Western European disposals.


In early 2016, MAS decided to invest in CEE and dispose of unproductive and underperforming
properties, enabling it to set ambitious per share annual dividend growth targets for the three
financial years up to 30 June 2019.

MAS, which had no CEE investment or development experience, attained CEE exposure by
entering into an exclusive partnership with CEE-experts Prime Kapital with the intention to
develop income property, referred to as the DJV. Initial investment consisted of a EUR20 million
upfront cash contribution with a commitment of a further EUR200 million in 7.5% coupon non-voting
cumulative redeemable preference shares to be drawn down as required, in exchange for a
40% voting interest in the DJV. Prime Kapital, in exchange for a 60% voting interest, contributed
EUR30 million in upfront cash and the entire secured development pipeline at cost as well as taking
full responsibility for sourcing further developments (exclusively for the DJV, subject to capital
base) and developing and managing DJV assets through its integrated, in-house investment,
construction, development, leasing, asset and property management platform. This secured
the Group access to a very lucrative development pipeline in CEE, and a co-investment position
with an experienced Central and East European partner, enabling financial participation, on a
downside protected basis, in the whole property value creation chain.

Given the DJV's early success, MAS increased exposure to properties in CEE, entering into a
non-exclusive joint venture with Prime Kapital investing in operational assets (IJV). The IJV,
80% owned and controlled by MAS, was managed by Prime Kapital. MAS funded Prime Kapital's
20% economic interest in the IJV through a full recourse loan bearing interest at a rate equal to
the IJV's weighted average cost of debt. MAS undertook no minimum commitment to the IJV
and left itself the freedom to acquire property in CEE outside the IJV, while gaining access to
Prime Kapital's networks and management at cost.

Prime Kapital sourced and MAS acquired income property for EUR381 million in the IJV. These
assets, identified as very attractive when acquired, have proved even better due to active
asset management, and were valued at EUR468 million on 31 December 2019, with significant
growth potential remaining to be unlocked through active management, extensions and
redevelopments. This was also the case in the DJV, where initial yields on developments
were all well ahead of those targeted at inception. The number of attractive development
opportunities available to the DJV exceeded initial expectations and the opportunity to add
attractive residential developments to the DJV became available. As a result, MAS increased its
DJV preference share investment commitment to a total commitment of EUR420 million, and the
venture's duration, scope and exclusivity was extended.

Achieving impressive per share dividend growth targets by June 2019 (8.75 euro cents per
share were paid in respect of 2019 compared to 3.35 euro cents per share in respect of 2015),
MAS reviewed its strategy early 2019. The investment performance and future prospects of
assets in CEE were exemplary. Investment performance and future prospects in WE were not.
Given the discrepancy in financial performance between, on the one hand, MAS' direct and
indirect investments in WE and, on the other, the CEE exposure via the two joint ventures with
manager and co-investor Prime Kapital, as well as the fundamentals and opportunities for
continued profitable growth in the CEE markets, it was decided to dispose of the WE portfolio in
favour of further investment in CEE.

To make this strategy sustainable in the long-term, MAS required in-house income property
investment, as well as asset and property management expertise suitable for CEE.
Consequently, MAS and Prime Kapital concluded a transaction on 5 September 2019, subject
to shareholder approval by the former, that would achieve these objectives on a first-year
earnings per share neutral basis. MAS issued shares to Prime Kapital in exchange for its interest
in the IJV, subject to a three-year lock-in. Additionally, Prime Kapital agreed to transfer its
asset and property management platform (staff, intellectual property, systems, software
and related contracts) to MAS, subject to the DJV receiving asset and property management
services from MAS at cost, from the date of transfer, and to complete planned extensions
and refurbishment to the former IJV assets at cost. MAS appointed Prime Kapital's founders
Lead Executives throughout lock-in, overseeing the WE disposal process and ensuring MAS
seamlessly transitions to a fully-fledged, internally managed, CEE-focused property investment
company. To manage potential conflicts of interest with appointments (Prime Kapital's
founders would, via Prime Kapital, have continuing indirect interests in DJV) it was agreed that
MAS' shareholders' approval would be required for changes to MAS' DJV funding commitments,
or any acquisitions of DJV assets from the DJV during lock-in.

Shareholders (77% in favour) approved the transaction on 20 November 2019, and new
management took charge December 2019. In addition, MAS' Board was reconstituted to ensure
its expertise was relevant to oversee the transition and operations in CEE, and strengthened
to manage any other potential conflicts during lock-in. As expected, this led to numerous
assessments, some ongoing, in relation to policies and practices as the integration process of
MAS and the former Prime Kapital management platform unfolds and plans are put in place to
accomplish the change in strategy. A number of these initiatives will lead to changes, some of
which are summarised below.

MAS' investment approach will be that of a long-term investor. Rather than focusing on specific
dividend distribution targets, MAS will maximise total long-term returns from investments
on a per share basis by concentrating on capital allocation, operational excellence, sensible
leveraging and cost efficiency, thereby sustainably growing distributable earnings per share.
Investment and disposal decisions are made on a forward-looking basis, with an emphasis
on the combination of net initial yield on investment and LFL growth in operational income.
Short-term dividend movements will not be the overriding objective of capital allocation. MAS
will sell mature property when markets are favourable, and continuously sell, or recycle, assets
that have insufficient growth potential to justify capital already invested, and well before major
and potentially value destructive capital expenditure is required. In addition, when Company
shares trade sufficiently below intrinsic value, and are attractively priced compared to other
investment opportunities, MAS will, subject to having the requisite authorisations and holding
adequate cash and liquid resources to fulfill funding commitments, purchase its own shares.

Operationally, following November 2019, MAS is a Central and Eastern European property
investor and operator, with a highly qualified in-house asset and property management
team, positioned, and determined, to achieve exceptional returns on property investment and
active management, without taking excessive risks. MAS' property development is limited to
participation in the DJV with Prime Kapital, which is a co-investor and fully integrated property
developer and builder, with an exceptional and proven track record. This involves the partial
financing of developments using preference share funding, earning a fixed, first-priority return
and limiting MAS' downside exposure, combined with an investment in the DJV's ordinary equity making
it eligible for profit participation. Additionally, this strategic relationship potentially provides
access to high-quality investment opportunities in completed developments.

Debt levels will be conservatively set, taking account of covenants, net debt to forward-looking
operating cash flows from income properties and aggregate LTV levels on assets. Measures
will be taken to protect the Group against unacceptable increases in the cost of long-term debt
commitments, and not the accounting impact of hedging options.

MAS will calculate distributable earnings per share consistently and combine this with a
sustainable dividend policy. Occasionally, commercial properties require major capital
expenditure for refurbishments and redevelopments to maintain earnings. This is accounted for
in valuations, and not considered in distributable earnings. Therefore, distributable earnings
for Real Estate Investment Trusts and other property investment companies, implicitly includes 
capital distribution. Accordingly, where property values have not increased sufficiently to support 
additional debt capacity for funding, and such expenditure is necessary, cash-backed distributable 
earnings will suffer over time. Fortunately, no major non-recoverable maintenance expenditure is 
forecast for the CEE assets in the foreseeable future. If this is combined with a disciplined and sensible 
disposal, or recycling program, there is no need to distribute less than 100% of adjusted distributable 
earnings to shareholders on a bi-annual basis.

Until further notice, adjusted distributable earnings per share will be distributed and paid in full
half-yearly, and will not be smoothed as long-term growth is pursued.

The Board has decided to not set specific dividend per share targets and the Company, accordingly, 
has resolved to withdraw the previously published dividend target for the 2022 financial year.

As Western European assets are disposed of, it is expected that adjusted distributable earnings
will initially be negatively affected and it will take approximately four years for the redeployment
strategy and planned asset management to take full effect (the current planned developments
and extensions in CEE should be completed during 2023). In addition to developments and
extensions, the following factors will have a substantial bearing on the total returns per share
over the next four to five years.

  1.  Growth in rental income from retail properties driven by growth in consumption and asset management 
      initiatives: the Group is aiming to achieve approximately 5% LFL growth in annual rental income over 
      next five years. This not only drives growth in distributable earnings per share, but also impacts 
      the Company's long-term borrowing capacity, which enables further investment.
  2.  The net proceeds from the disposal of Western European assets and listed securities.
  3.  The timing and successful deployment of approximately EUR891 million in developments and extensions 
      in MAS' direct properties and the DJV, and the generation of further development pipeline. This is 
      dependent, to a large extent, on permitting and market conditions.
  4.  The cost and availability of debt finance.
  5.  The raising of new capital and/or buying back of MAS' shares.
  6.  New income investment opportunities in CEE.

To consistently provide shareholders with improved, relevant information, MAS will publish
detailed income and development property schedules; this will be in addition to IFRS accounts
and general Johannesburg Stock Exchange (JSE) disclosure obligations. This information is
in the Company Profile and will be regularly updated. Using this resource, shareholders can
more easily track financial performance and total investment returns generated by income
property and assess expected net initial rental values for property developments and expected
sales margins for residential developments. This, combined with the commitment to provide
more relevant and improved information, will make it easier for shareholders to evaluate the
Company's investment return and future adjusted distributable earnings potential.

Management engage shareholders by considering requests, if relevant and not unduly affecting
the Groups' competitive market position, for further disclosure, and updating them regularly
about relevant developments.

Current corporate structure is costly, inefficient and inappropriate for a business focused on
investment in CEE, therefore, a new Maltese corporate holding company for the current and
future CEE investments is being incorporated. Malta is a member of the European Union (EU)
and the British Commonwealth. As an EU member state it benefits from single market access
and a robust EU compliant regulatory framework. As a member of the Commonwealth the
legal system has strong British overtones, familiar to South African investors and suitable for
a JSE listed company. Geographically, Malta is in close proximity to the CEE markets. MAS will
hire staff and set up an office in Malta to house some core functions. The Company's asset
and property management platform will be housed in a subsidiary of the Maltese holding
company located in Romania. Once assets in WE have been disposed of, the Isle of Man office
will close and Group companies in the Netherlands and Luxembourg will be wound up. 

Virtually no trading in Company's shares occurs on LuxSE, and it creates unnecessary
bureaucracy and costs. Therefore, in the short-term, MAS will seek the necessary regulatory
approvals to be delisted from the Euro MTF Market LuxSE. Once effective, the facility in place for
depository interest shareholders will be unwound and depository interest holders entered onto
the certificated register. Should a shareholder wish to transfer shares to the South African share
register, they will need to instruct Computershare accordingly. As some shareholders may not
wish to hold their shares on the South African share register, MAS will maintain a certificated
share register following the delisting, and these individuals will continue to benefit from
investment as before. Shareholders holding shares in certified form will be able to transfer them
on an over-the-counter basis to other shareholders. Further details of the LuxSE delisting will
be published in due course.

Martin Slabbert, CEO                                       Victor Semionov, CFO

Further to the recent announcements regarding Board composition and changes, the Board has been 
considering executive reporting lines, the functions of executive directors and the balance between 
executive and non-executive directors. The chief investment officer function has been combined with 
that of the CEO and reporting lines have been restructured. The Board has also concluded that the 
Company has more executive directors than required. As a result, Dan Petrisor and Jonathan Knight 
have resigned as executive directors of the Board of the Company. They remain senior executives of 
the Group, have been appointed as alternative executive directors and are permanent invitees to 
the Company's Board meetings.

Since the implementation of the transaction with Prime Kapital referred to in the Directors'
commentary, the new significantly enlarged management team has undertaken an enormous
amount of work to get to grips with MAS' Western European business and to ensure a smooth
integration of the former Prime Kapital and MAS management teams and businesses. The
Board is impressed with the standard of work. Significant improvements were introduced
to disclosure and the Board wishes to express their thanks to the new CEO and CFO for their
work ethic, attention to detail and drive towards a successful transition during the lock-in.
Shareholders are aware that the CEO and CFO may vacate management roles at the end of lock-in,
returning full-time to Prime Kapital. However, this will not end the relationship with Prime
Kapital, as the DJV, of which MAS owns a significant interest, terminates, at the earliest, in
2030. Furthermore, the DJV is expected to own a substantial amount of commercial investment
property by December 2022, which will be managed by the Group's property and asset
management team. Additionally, Prime Kapital's position as a substantial, long-term MAS'
shareholder requires that the two groups are intertwined for the foreseeable future. Given
these relationships, MAS and Prime Kapital are natural business partners and may explore other
mutually beneficial transactions, strengthening and expanding their relationship (subject, of
course, to MAS shareholders' approval during lock-in, when required). To ensure MAS is fully
prepared for any potential management changes occurring December 2022, the Company
will appoint a Deputy CEO and CFO, who have no affiliation to, or interest in, Prime Kapital by
December 2021 at the latest.

Werner Alberts, Interim Chairman                       
28 February 2020 Douglas, Isle of Man

All amounts in EUR thousand unless otherwise stated.

CONSOLIDATED STATEMENT OF                                                  Reviewed            Reviewed            Audited
FINANCIAL POSITION                                                        31 Dec 19           31 Dec 18          30 Jun 19
Non-Current Assets                                                        1,041,931             969,130          1,104,097
Current Assets                                                              358,370             269,063            285,749
Total Assets                                                              1,400,301           1,238,193          1,389,846
Equity Attributable to Owners of the Group                                  906,328             838,346            858,119
Non-Controlling Interest                                                          -               6,293              7,439
Total Equity                                                                906,328             844,639            865,558
Non-Current Liabilities                                                     334,422             252,589            341,760
Current Liabilities                                                         159,551             140,965            182,528
Total Liabilities                                                           493,973             393,554            524,288
Total Shareholder Equity & Liabilities                                    1,400,301           1,238,193          1,389,846

                                                                           Reviewed            Reviewed            Audited
CONSOLIDATED STATEMENT OF                                            6 months ended      6 months ended         Year ended
COMPREHENSIVE INCOME                                                      31 Dec 19           31 Dec 18          30 Jun 19
Rental income                                                                33,547              26,145             57,620
Service charge income and other recoveries                                    7,418               4,504             12,455
Revenue                                                                      40,965              30,649             70,075
Service charge and other property operating expenses                       (10,977)             (6,891)           (18,479)
Net rental income                                                            29,988              23,758             51,596
Profit on sale of inventory property                                            326               4,288              8,151
Sales of inventory property                                                   6,729              27,985             39,165
Cost of sales of inventory property                                         (6,403)            (23,697)           (31,014)
Other income                                                                  4,672               1,957              7,259
Corporate expenses                                                          (3,493)             (3,103)            (5,627)
Investment expense                                                          (2,063)             (1,347)            (3,210)
Net operating income                                                         29,430              25,553             58,169
Fair value adjustments                                                       41,908            (24,735)            (7,632)
Foreign exchange differences                                                  4,586                  34              (365)
Share of profit from equity accounted                                         8,378               6,399             11,009
investee, net of taxation
Goodwill impairment /Gain on bargain purchase                              (22,627)              12,263             12,263
Profit/(loss) before net financing costs                                     61,675              19,514             73,444
Finance income                                                                6,691               5,149             12,058
Finance costs                                                               (6,944)             (3,854)           (10,251)
Profit/(loss) before taxation                                                61,422              20,809             75,251
Current Tax                                                                   (950)             (1,994)            (3,948)
Deferred Tax                                                                (6,477)             (2,758)            (9,425)
Profit/(loss) for the period                                                 53,995              16,057             61,878
Attributable to:
 Owners of the group                                                         52,567              11,088             55,035
 Non-controlling interest                                                     1,428               4,969              6,843

                                                                           Reviewed            Reviewed            Audited
FINANCIAL PERFORMANCE                                                     31 Dec 19           31 Dec 18          30 Jun 19
IFRS Net asset value attributable to Owners of the Group                    906,328             838,346            858,119
IFRS Net asset value per share (euro cents)                                     129                 132                135
IFRS Gross revenue                                                           40,965              30,649             70,075
Earnings per share (euro cents)*                                               7.46                1.74               8.63
Gross headline earnings                                                      34,775            (20,450)              5,330
Net headline earnings                                                        42,762            (14,782)             16,037
Gross headline gain/(loss) per share (euro cents)                              5.35              (3.21)               0.84
Net headline gain/(loss) per share (euro cents)                                6.58              (2.32)               2.52
Gross diluted headline gain/(loss) per share (euro cents)                      5.35              (3.21)               0.84
Net diluted headline gain/(loss) per share (euro cents)                        6.58              (2.32)               2.52
Closing number of shares in issue**                                     704,493,798         637,493,798        637,493,798
Weighted average number of shares in issue**                            649,874,233         637,493,798        637,493,798

*  The Group's earnings per share have increased by 329% vs. 31 Dec 2018. 
** Excluding treasury shares.

SEGMENTAL ANALYSIS                                                       Proportionate accounts                            Adjustments                             Adjusted proportionate accounts
INCOME STATEMENT (JUL - DEC 2019)                                    Six months ended 31 Dec 2019                  Six months ended 31 Dec 2019                      Six months ended 31 Dec 2019
                                                             Total       CEE      DJV       WE     CO***      Total      CEE     DJV         WE       CO       Total      CEE      DJV        WE       CO
EARNINGS                                                    52,567    35,491   14,007    8,672   (5,603)    (6,025)    4,155   3,178   (36,073)   22,715      46,542   39,646   17,185  (27,401)   17,112
Distributable earnings                                      27,726    12,680    4,920    8,691     1,435      (176)        -       -          -    (176)      27,550   12,680    4,920     8,691    1,259
Net rental income - income property                         28,643    14,899      885   12,859         -          -        -       -          -        -      28,643   14,899      885    12,859        -
Net income - preference shares                               3,950         -    3,950        -         -          -        -       -          -        -       3,950        -    3,950         -        -
Net dividends - listed securities                            3,890         -        -        -     3,890      (176)        -       -          -    (176)       3,714        -        -         -    3,714
Net corporate expenses                                     (3,377)     (344)    (120)    (333)   (2,580)          -        -       -          -        -     (3,377)    (344)    (120)     (333)  (2,580)
Interest on debt financing                                 (5,819)   (1,630)    (477)  (3,256)     (456)          -        -       -          -        -     (5,819)  (1,630)    (477)   (3,256)    (456)
Interest capitalised on developments                           738         -      738        -         -          -        -       -          -        -         738        -      738         -        -
Other distributable net income/(cost)                          545      (15)     (27)        4       583          -        -       -          -        -         545     (15)     (27)         4      583
Income tax                                                   (844)     (230)     (29)    (583)       (2)          -        -       -          -        -       (844)    (230)     (29)     (583)      (2)
Non-distributable earnings                                  24,841    22,811    9,087     (19)   (7,038)    (5,849)    4,155   3,178   (36,073)   22,891      18,992   26,966   12,265  (36,092)   15,853
Fair value adjustments - income property                    42,023    27,338   12,423    2,262         -          -        -       -          -        -      42,023   27,338   12,423     2,262        -
Fair value adjustments - interest rate derivatives             439       507        -     (68)         -          -        -       -          -        -         439      507        -      (68)        -
Fair value adjustments - listed securities                  12,051         -        -        -    12,051        176        -       -          -      176      12,227        -        -         -   12,227
Fair value adjustments - other financial liabilities         (171)         -    (265)       94         -          -        -       -          -        -       (171)        -    (265)        94        -
Foreign currency exchange differences - indirect             4,554     (188)        -        -     4,742          -        -       -          -        -       4,554    (188)        -         -    4,742
Goodwill impairment                                       (22,627)         -        -        -   22,627)     22,627        -       -          -   22,627           -        -        -         -        -
Investment expenses                                        (1,990)     (691)     (34)    (149)   (1,116)          -        -       -          -        -     (1,990)    (691)     (34)     (149)  (1,116)
Share-based payment expense                                  (155)      (67)        -        -      (88)        155       67       -          -       88           -        -        -         -        -
Other non-distributable income/(cost)                          141         -      141        -         -          -        -       -          -        -         141        -      141         -        -
Deferred tax                                               (9,424)   (4,088)  (3,178)  (2,158)         -      7,266    4,088   3,178          -        -     (2,158)        -        -   (2,158)        -
Estimation for WE disposal realisation costs and losses          -         -        -        -         -   (36,073)        -       -   (36,073)        -    (36,073)        -        -  (36,073)        -
Weighted average number of shares (million)                                                                                                                    649.87                                     
Adjusted distributable earnings per share (euro cents)                                                                                                          4.24                                     
Dividend per share (euro cents)                                                                                                                                 4.24                                     
SEGMENTAL ANALYSIS                                                       Proportionate accounts                            Adjustments                               Adjusted proportionate accounts
BALANCE SHEET (31 DEC 2019)                                                   31 Dec 2019                                  31 Dec 2019                                         31 Dec 2019
                                                             Total       CEE      DJV       WE        CO      Total      CEE     DJV         WE       CO       Total      CEE      DJV        WE       CO
NET ASSET VALUE                                            906,328   344,309  171,275  298,051    92,693   (31,518)      397   4,158   (36,073)        -     874,810  344,706  175,433   261,978   92,693
Assets                                                   1,462,182   524,309  206,174  565,630   166,069   (24,664) (24,664)       -          -        -   1,437,518  499,645  206,174   565,630  166,069
Income property                                          1,043,146   467,375   48,452  527,319         -          -        -       -          -        -   1,043,146  467,375   48,452   527,319        -
Developments - income property                              47,673       331   30,608   16,734         -          -        -       -          -        -      47,673      331   30,608    16,734        -
Developments - residential property                         12,555         -   12,555        -         -          -        -       -          -        -      12,555        -   12,555         -        -
Preference shares                                          105,577         -  105,577        -         -          -        -       -          -        -     105,577        -  105,577         -        -
Listed securities                                          131,350         -        -        -   131,350          -        -       -          -        -     131,350        -        -         -  131,350
Goodwill                                                     8,286     8,286        -        -         -    (8,286)  (8,286)       -          -        -           -        -        -         -        -
Deferred tax asset                                           4,316     3,208      549      559         -          -        -       -          -        -       4,316    3,208      549       559        -
Interest rate derivative financial assets                      702         -        -      702         -          -        -       -          -        -         702        -        -       702        -
Other assets                                                 1,484        57      508        -       919          -        -       -          -        -       1,484       57      508         -      919
VAT receivable                                               4,820        92    3,923      637       168          -        -       -          -        -       4,820       92    3,923       637      168
Share-based payment prepayments                             16,378    16,378        -        -         -   (16,378) (16,378)       -          -        -           -        -        -         -        -
Trade and other receivables                                 17,294     9,667      492    6,746       389          -        -       -          -        -      17,294    9,667      492     6,746      389
Cash and cash equivalents                                   68,601    18,915    3,510   12,933    33,243          -        -       -          -        -      68,601   18,915    3,510    12,933   33,243
Liabilities                                                555,854   180,000   34,899  267,579    73,376      6,854 (25,061) (4,158)     36,073        -     562,708  154,939   30,741   303,652   73,376
Debt financing                                             485,266   142,207   22,032  248,644    72,383          -        -       -          -        -     485,266  142,207   22,032   248,644   72,383
Interest rate derivative financial liabilities               2,157     1,205        -      952         -          -        -       -          -        -       2,157    1,205        -       952        -
Other liabilities                                              693         -        -      693         -          -        -       -          -        -         693        -        -       693        -
Deferred tax liability                                      36,426    25,061    4,158    7,207         -   (29,219) (25,061) (4,158)          -        -       7,207        -        -     7,207        -
Trade and other payables                                    31,312    11,527    8,709   10,083       993          -        -       -          -        -      31,312   11,527    8,709    10,083      993
Estimation for WE disposal realisation costs and losses          -         -        -        -         -     36,073        -       -     36,073        -      36,073        -        -    36,073        -
Closing number of shares in issue (million)                                                                                                                   704.49                                     
Net asset value per share (euro cents)                         129        50       24       42        13                                                                                                 
Tangible net asset value per share (euro cents)                                                                                                                  124       49       25        37       13

***Corporate (Co), other assets, liabilities and activities related to the Group's management, including investments in listed securities, Group
level financing, as well as corporate level administration. 

This short-form announcement is the responsibility of the directors and is only a summary of the information contained in the full announcement 
released on Monday, 2 March 2020 and available at: or on the Company's website. 

This short-form announcement does not contain full or complete details, any investment decisions by investors and/or shareholders should be based on 
consideration of the full announcement. The full announcement is available for inspection or may be requested and obtained in person, at no charge, 
at the head office of the Company on the 2nd floor, Clarendon House, Douglas, Isle of Man, IM1 2LN, and at the offices of our sponsor Java Capital, 
at 6A Sandown Valley Crescent, Sandton, 2196, South Africa, during office hours from 2 March 2020 to 16 March 2020.

Date: 02-03-2020 08:00:00

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