ATLANTIC LEAF PROPERTIES LIMITED - Business update

Business update

Atlantic Leaf Properties Limited
(Incorporated in Jersey)
(Registration Number: 128426)
SEM share code: ALPL.N0000
JSE share code: ALP
ISIN: MU0422N00009
www.atlanticleaf.mu
(“Atlantic Leaf” or the “Company”)


BUSINESS UPDATE


Atlantic Leaf would like to provide an update on its business. The Company considers that it is well
positioned, both financially and operationally, to navigate this period of uncertainty.

   -   The Company’s business continuity plans were enacted and have been working well in ensuring
       a seamless continuation of operations despite the Company and its service providers working
       remotely.

   -   The Company is in a strong liquidity position and currently holds cash and available facilities
       of GBP 29 million. There is no debt maturing in the current financial year ending 28 February
       2021 and scheduled debt amortisation payments for this year are approximately GBP 4 million.
       Forecasted operational cash outflows including interest but excluding capex and the debt
       repayments for the financial year are approximately GBP 10 million and prudently managing
       our cash resources is a key focus during this time. Further investments in new investment
       properties has been put on hold for the immediate future.

   -   The Company collects rent quarterly in advance. We have collected 85% of rent due this
       quarter, of which a portion (10%), has been agreed to be collected monthly instead of quarterly.
       We expect to collect a further 5% of the rent due in the forthcoming week. The remaining 10%
       of the rent remains due and we are currently working with those tenants to determine suitable
       payment options. Overall, we think that this is a very positive outcome in this climate as the
       majority of rent due to the end of June has been collected and this further strengthens our cash
       position.

   -   The Company is within its loan covenants and has substantial headroom in our interest cover
       and debt service cover ratios. This provides the ability to withstand significant stresses on the
       timing of rental receipts. All loan-to-value ratios are compliant with recent bank valuations in
       February 2020 and the valuations for covenant purposes have been set for the next 12 months.

   -   The Company benefits from long term Fully Repairing and Insuring leases on the majority of
       its property portfolio and there are no material capex requirements forecast. We have received
       quotes for the conversion of the Peterborough property to a multi let office block. The decision
       to implement this conversion will be made once there is more certainty in the market.

   -   Atlantic Leaf benefits from a tenant base operating in a diverse range of industries. The
       Company is not exposed to any direct consumer facing retail and a majority of the Company’s
       properties are in the industrial, distribution warehouse and office sector. The Company closely
       monitors the financial strength and position of its tenants, and during these times has a particular
       focus on any that are considered to be more susceptible to the disruptions caused by the current
       environment.
    -   The Company is committed to supporting its wider stakeholder base and understands the special
        importance of tenant relations at this time. We have engaged proactively with our tenants to
        agree mutually beneficial solutions where required.

    -   Atlantic Leaf’s year end was 28 February 2020 and the Company is still expecting to release
        its year end results as planned before the end of April. Updated guidance on the impact on
        earnings for the next financial year will then be provided.

Atlantic Leaf has a primary listing on the Main Board of the JSE Limited (“JSE”) and a secondary
listing on the Official Market of the SEM.

By order of the Board

31 March 2020

For further information please contact:

South African sponsor
Java Capital                                                      +27 11 722 3050
Corporate secretary
Ocorian Secretaries (Jersey) Limited                              +44 1534 507000
SEM authorised representative and sponsor
Perigeum Capital Ltd                                              +230 402 0890

Date: 31-03-2020 11:15:00
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