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MAS REAL ESTATE INC - Condensed consolidated interim financial statements six month period ended 31 December 2018

Release Date: 04/03/2019 09:30
Code(s): MSP     PDF:  
 
Wrap Text
Condensed consolidated interim financial statements six month period ended 31 December 2018

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

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 
SIX-MONTH PERIOD ENDED 31 DECEMBER 2018

HIGHLIGHTS

38%
YEAR-ON-YEAR
INCREASE IN
RENTAL INCOME

103%
YEAR-ON-YEAR
INCREASE IN NET
OPERATING INCOME

40%
YEAR-ON-YEAR
INCREASE IN HI 
DISTRIBUTABLE
EARNINGS PER
SHARE

73%
YEAR-ON-YEAR
INCREASE IN HI
INVESTMENT
PROPERTY(1)
48%INCREASE SINCE 
JUNE 2018

DISTRIBUTION
PER SHARE OF
3.78
EURO CENTS

2-YEAR EXTENSION 
TO EXCLUSIVITY 
WITH PRIME KAPITAL
UNTIL 2023
 
(1)Includes acquisitions post 31 December 2018 and assets held for sale

KEY METRICS

Distribution per share       
                              H1              H2              Total
Year                  Euro Cents      Euro Cents         Euro Cents 
FY 2014                     0.60            1.24               1.84
FY 2015                     1.15            2.20               3.35
FY 2016                     2.27            2.23               4.50
FY 2017                     2.66            3.19               5.85
FY 2018                     3.58            4.03               7.61
FY 2019                     3.78         4.97(1)            8.75(2)

(1) Guidance                        
                          
(2) This target is based on the acquisition and development pipeline in place and further opportunities being pursued.
It also assumes that a stable macro-economic environment will prevail, no major corporate failures will occur, the 
investments and developments reported on above will progress as expected and budgeted rental income based on contractual
escalations as well as market-related renewals will be collected. This target has not been reviewed or audited by the
group's auditors.                        
                          
Investment Property (3)     
    
                    Euro              Euro 
Year            Millions          Millions
FY 2014             64.8               n/a
FY 2015            248.5               n/a 
FY 2016            310.5               n/a 
FY 2017            570.6               n/a 
FY 2018            632.8               n/a 
H1 2019            769.8          941.0(5) 
      
(3) Includes investment property held for sale   
(5) Includes Acquired post 31 December 2018 
                                                    
Passing rent (4)       
      
                     Euro            Euro
Year             Millions        Millions
FY 2014               2.7             n/a        
FY 2015              12.6             n/a         
FY 2016              17.3             n/a         
FY 2017              32.2             n/a         
FY 2018              37.5             n/a         
H1 2019              47.0          57.2(6)  
        
(4) MAS' share of the income-generating portfolio's passing rent.     
(6) Includes Acquired post 31 December 2018
              
EPRA NAV PER SHARE      
      
                         EURO 
Year                    CENTS    
FY 2014                 104.6    
FY 2015                 122.1    
FY 2016                 116.0    
FY 2017                 125.9    
FY 2018                 134.9    
H1 2019                 132.7    
                
MEDIAN DAILY SHARE VOLUME       
      
                   Thousands
Year               of shares   
FY 2014                  1.1   
FY 2015                 40.8    
FY 2016                 76.2    
FY 2017                137.5   
FY 2018                454.9   
H1 2019                427.4   
               
Loan to value     
                                 
Year            Percentage  Percentage
FY 2014             -188.8         n/a  
FY 2015              -30.0         n/a
FY 2016              -12.7         n/a
FY 2017               16.5         n/a
FY 2018               10.0         n/a
H1 2019               24.9     38.2(7)  

(7) Impact of acquisitions post  31 December 2018

DIRECTORS' REPORT

In early 2016, MAS embarked on an ambitious three-year programme to restructure and grow its balance sheet.
The programme had two principal components. The first component was the targeted disposal of assets in
western Europe whose valuations were approaching historic highs relative to their recurring cash flows and which
had muted further organic growth potential. At the same time, we intended to retain the benefits of a
geographically diversified asset portfolio. The second component wasto invest in a mixture of income-
generating assets with high organic growth potential and/or significant potential to add value. This
component would be funded through raising both moderate debt and additional equity. The emphasis was on
developing and owning retail assets in CEE, given strong historical CEE consumption growth trends that we
expect will continue. Direct retail assets in the UK were actively avoided.
   
In line with this strategy, two joint ventures were established in 2016 with Prime Kapital, whose team has an
exceptional property development and investment track record in CEE markets. The primary focus of the joint
ventures is on developing and acquiring dominant retail assets in strong locations within CEE.
Management also set ambitious distribution growth targets for the financial reporting periods to the end
of the 2019 financial year.
  
The results for the six month period ended 31 December 2018, and the distribution guidance for the financial
year ending on 30 June 2019, reflect the successful implementation of the group's strategy, which continues at
pace balanced by appropriate execution discipline. The group is on track to meet its distribution target of
8.75 euro cents per share for the financial year ending 30 June 2019, funded entirely from distributable
earnings. This target represents a 15% increase in the full year distribution and a 37.7% year-on-year increase in
distributable earnings. It equates to a compound annual rate of growth in distributable income per share of 25%
since 2016. The group is also well positioned for continued growth in distributable income per share beyond
the end of the 2019 financial year, as a result of exposure to assets with high organic growth potential and the
substantial development pipeline.

DISTRIBUTABLE EARNINGS

The group achieved distributable earnings per share of 3.78 euro cents for the six month reporting period.
The strong improvement of 40.0% in distributable earnings per share over the 2.70 euro cents in the comparative
period was driven by acquisitions of investment property, as well as continued investment into PKM
Developments and distributions received from the REIT portfolio.

INTERIM DISTRIBUTION AND GUIDANCE FOR THE FINANCIAL YEAR ENDING 30 JUNE 2019

Based on the increase in distributable earnings, the board has proposed an
interim distribution per share of 3.78 euro cents for the first half of the 2019
financial year.
  
Considering the progress made to date, the board is confident that MAS will achieve a distribution of 8.75 euro
cents per share for the full 2019 financial year, covered by distributable earnings. This distribution guidance is
based on the acquisition and development pipeline in place and further opportunities being pursued. It
also assumes that a stable macro-economic environment will prevail, no major corporate failures will occur, the
investments and developments reported on below will progress as expected and budgeted rental income,
based on contractual escalations as well as market-related renewals, will be collected. This target has not been
reviewed or audited by the group's auditors.

INCOME-GENERATING PORTFOLIO AND NAV

Investment property, including investment property held for sale and acquisitions after period-end, grew by
48.7%, from EUR632.8 million at 30 June 2018 to EUR941.0 million. The portfolio performed strongly, with first half net
rental income growing by 55.6% from EUR15.3 million to EUR23.8 million year on year and net operating income
increasing by 103.2%, from EUR12.6 million to EUR25.6 million. This growth was driven by acquisitions, income-
enhancing asset management initiatives and strong tenant performance.
  
The EPRA net asset value per share fell by 1.6% to 132.7 euro cents per share, from 134.9 euro cents per share
at the 30 June 2018 year end. The decline was largely the result of fair value adjustments made to the REIT
portfolio, following significant market pressure in late 2018, partially offset by the completion of developments and
valuation gains on assets.

ACQUISITION, DISPOSAL AND DEVELOPMENT UPDATE

Deploying available capital has been a key focus for the group. While opportunities remain, current market
pricing requires us to exercise significant caution when assessing assets, given the competitive
environment and liquidity available in the market. The group is not prepared to overpay for assets in a heated
market and assesses capital deployment carefully to ensure that its longer-term strategic objectives are
not compromised by actions taken in pursuit of short-term goals. MAS remains prudent in its investment
process and continues to focus on acquiring assets with value-adding potential and/or strong long-term
organic growth opportunities.

PREMIER INN AND HUB BY PREMIER INN HOTELS, EDINBURGH, SCOTLAND (DISPOSED OCTOBER 2018)

In October the group disposed of the Premier Inn and Hub by Premier Inn Hotels, with its associated retail units,
at New Waverley, Edinburgh, for GBP38.0 million (about EUR43.4 million). The sale price represented a NOI yield of 4.07%.
This capital was recycled to higher-yielding opportunities, allowing the group to leverage its ability to manage
assets and grow income generated by investments.

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

Substantial progress has been made at Uberior House in Edinburgh, Scotland. The asset was acquired with the
intention of re-gearing the leases. This was completed well ahead of schedule, with leases extending to 2030 signed
with Bank of Scotland, significantly increasing the certainty of income from, and value of, the asset. The
contracted rent also increased by 1.3% as a result of settling the outstanding rent reviews as part of the lease
negotiations. There is further potential for rental income growth at the next rent reviews in 2020.

FLENSBURG GALERIE SHOPPING CENTRE, FLENSBURG, GERMANY (ACQUIRED JANUARY 2019)

The Flensburg Galerie shopping centre was built in 2006 with a GLA of 25,540 square metres. The asset was
acquired from a limited life investment fund that was being wound up. Situated on Flensburg's prime
shopping street, the Flensburg Galerie is the only shopping centre in the inner city and is well established with more
than 4.2 million visitors in 2018. The city of Flensburg is located in Schleswig-Holstein in the north of
Germany, bordering Denmark. Flensburg is an important economic and regional centre, both within
Schleswig-Holstein and across the border in Denmark. The total catchment area for the Flensburg
Galerie is more than 500,000 people. Tourists from Denmark are attracted by lower prices in Germany.
  
The investment offers great value-adding potential, with scope to reduce vacancies and undertake some
reconfiguration and tenant relocations. A food discounter has already been secured and will open shortly. The
acquisition price of EUR62.6 million was agreed outside of a competitive bidding process and is attractive
compared to prevailing market prices. We expect that reducing vacancy levels will contribute positively, not
only to the direct investment return, but also by bringing in additional retail brands not currently located in the city
centre. In addition, the opportunity exists to reduce non-recoverable costs through better asset management.

MILITARI SHOPPING CENTRE, BUCHAREST, ROMANIA (ACQUIRED JULY 2018)

This acquisition, made in association with our CEE partners Prime Kapital, was completed in the current
reporting period and discussed in detail in the directors' commentary accompanying the 2018 year end
results. Trading at the 56,200 square metre GLA centre has been strong since acquisition, with the optimisation
of leases at expiry providing a platform to grow income. Given ongoing residential densification
around the centre, we are considering redeveloping the centre and substantially increasing the GLA to
about 80,000 square metres.

ATRIUM MALL SHOPPING CENTRE, ARAD, ROMANIA (ACQUIRED DECEMBER 2018)

The Atrium Mall ("Atrium"), acquired with Prime Kapital, was part of the secured pipeline disclosed at the 2018
year end. Atrium is the only modern retail destination in Arad and the broader Arad county. The mall is well
established and centrally located, adjacent to main transport hubs, and with good accessibility and visibility.
The city of Arad is situated in western Romania, close to the Hungarian border. It is the administrative capital
of Arad county and forms the principal economic hub of the area. The city has healthy demographics, which are
supported by growing purchasing power, and it benefits from a significant catchment area, with
334,000 people within a 45-minute drive.
  
The mall has a fashion and entertainment focus, with an approximate GLA of 28,600 square
metres over three floors. It is anchored by strong tenants including large European retailers Carrefour, Inditex,
H&M, C&A, New Yorker, LC Waikiki, Hervis, Deichmann, Media Galaxy, Pepco, CCC and Cinema City with a
10-screen cinema.
  
MAS aims to improve the quality of the retail offering and customer experience through improved asset
management and the introduction of new entertainment and leisure operators to drive growth in footfall.
Reconfiguration of some parts of the mall will be considered in the medium term to enhance the tenant mix and
increase dwell time.

PKM DEVELOPMENTS

ACQUISITION OF ASSETS DEVELOPED TO DATE AND EXTENSION OF THE DEVELOPMENT JOINT VENTURE WITH PRIME KAPITAL

The first of the larger retail centres developed by PKM Developments, the development joint venture with Prime
Kapital, were completed. Roman opened for trade in November 2018 and Baia Mare opened in December
2018. This brings the total completed GLA by PKM Developments to 67,950 square meters at a net initial yield of
10.6% (after taking into account the cost of preference share finance). This result is ahead of the original
expectations for the developments and bodes well for the current development pipeline.
  
On 28 February 2019, MAS and Prime Kapital reached agreement that MAS, through the investment joint
venture with Prime Kapital, would acquire the nine completed developments in Romania from PKM
Developments for a price of EUR108.7 million. The purchase price of the entities owning the retail centres, after
adjustments for working capital and development land for extensions, amounts to EUR113.0 million. In addition,
it was agreed that the development joint venture between Prime Kapital and MAS and the accompanying exclusivity 
on new developments within the joint venture would be extended by a further two years, taking the exclusivity period 
to March 2023. Second-phase developments planned for the centres in Slobozia, Roman and Baia Mare are expected to 
add 11,000 square metres of GLA. On completion they will be acquired by MAS at a yield of 7.5%.
  
The portfolio was independently valued at a net initial yield of 7.5%. Given MAS' interest in PKM
Developments, the cash-on-cash yield (including earnings on preference shares in PKM Developments that it
has subscribed for) on the acquisition is 9.14%, positioning MAS ahead of its peers in relation to developments in
CEE. The consideration for the transaction will be deferred until required by PKM Developments for
further projects. Prime Kapital will continue to manage the properties.
  
The portfolio of retail assets in Romania currently includes two larger centres, both anchored by Carrefour, in
Roman (18,808 square meters of GLA) and Baia Mare (21,318 square meters of GLA), in addition to seven smaller,
well-located developments adjacent to pre-existing Kaufland mini-hypers in Slobozia, Focsani, Targu Secuiesc,
Ramnicu Sarat, Fagaras, Sebes and Gheorgheni. Of the total GLA, 87% is rented to large international and
national anchors such as Carrefour, New Yorker, C&A, DM, Altex, Takko, CCC, Pepco, Deichmann, Jysk, KFC
and McDonald's. In line with expectations, these newly developed centres already have an occupancy
level of 93.5%, with full occupation expected to be achieved by the end of the 2019 calendar year. PKM
Developments has provided a rental guarantee for the first year to cover the current vacancy level.

DEVELOPMENT PIPELINE

PKM Developments is expected to start the construction of seven developments and complete two of
them by the end of December 2019. The cost of completion for the secured pipeline in CEE is estimated at EUR738.0
million and consists of the projects discussed below.

SILK DISTRICT, IASI

Zoning is ongoing on the 10-hectare site in Iasi where a large-scale, mixed-use project is planned that will
include up to 100,000 square metres of A-class offices, about 2,500 residential units and a hotel. Iasi, with a
population of 369,000 people, is the second-largest city in Romania, the most important industrial centre in the
north-eastern part of the country and the second-largest university city outside Bucharest, with over 53,000
students. The project is near the city centre and within walking distance of the two largest university campuses. It
is highly visible, with 450 metres of frontage on the main boulevard connecting the site to the city centre,
and is easily accessible both by car and public transport. Three public transport hubs (bus and tram) are
located on, or in the immediate vicinity of, the site. Major office tenants and hotel operators have expressed a
strong interest in the planned development. The zoning process is expected to be completed in the
fourth quarter of 2019 and construction is planned to start in the second quarter of 2020. The delivery
of the first residential and office buildings is expected to take place in the third quarter of 2021.

MALL MOLDOVA , MOLDOVA

Zoning approval has been secured and work is currently under way to obtain a building permit for the planned
redevelopment of Era Shopping Park, Iasi, into the 100,000 square metre GLA super-regional Mall Moldova,
which will be the largest retail and leisure development in Romania outside Bucharest. Tenant demand
remains strong with leasing progressing in line with expectations.

AVALON ESTATE, BUCHAREST

Permitting is ongoing on the upmarket, modern housing estate near the new developing central business
district and commercial centre in the affluent northern part of Bucharest. The pre-construction sales process has
commenced and was well received, with pre-construction sales targets achieved within three weeks. The first
units of the planned 767 (previously 550) high-quality houses, townhouses and apartments should be available
for occupation in the second quarter of the 2020 calendar year.

ARGES MALL, PITESTI

Permitting and leasing are ongoing for the planned 50,000 square metres GLA, regionally-dominant mall in a
central, high density location in Pitesti, Romania. The project includes the construction of a bridge and
connecting roads over the railway tracks between the site and town centre that will be funded and
constructed by PKM Developments and donated to the public authorities on completion. Given its substantial
contribution to the local economy, the project has the full support of the local authorities. Permitting is progressing
well, despite attempts by the owners of Jupiter City mall, which is expected to be affected by the development, to
undermine the permitting process.

MARMURA RESIDENCE, BUCHAREST

Zoning approval has been obtained and pre-construction sales have begun for the development, which will consist
of five towers and 468 individual apartments. It will also host 1,700 square metres of supporting retail and
service functions.

DAMBOVITA MALL, TARGOVISTE

A building permit was secured for the 31,000 square metre GLA, regionally-dominant mall in Targoviste, Romania.
Several major anchor tenants, including Carrefour, Cinema City, Altex, Pepco and CCC were secured for the
development. It will be the first mall in the Dambovita county that will form part of, and be complemented by, a
wider urban regeneration project undertaken by the local authorities within two kilometers of the city
centre, in a densely populated residential area. Construction is expected to begin in the second
quarter of the 2019 calendar year, with opening planned for April 2020.

DN1 VALUE CENTRE, BALOTESTI

Zoning approval has been obtained in relation to the 28,000 square metre GLA, convenience value extension of
the existing Hornbach and Lidl units in Balotesti, a rapidly developing affluent residential area, about 25kms north of
Bucharest. Lease agreements were concluded with anchor tenants such as Carrefour (hypermarket), Jysk,
Noriel, Pepco, Animax, DM Drogerie, CCC, Hervis, Sportissimo, Deichmann, New Yorker and Altex. Construction
will start as soon as a building permit is issued and the opening of the first phase of the development is expected
in December 2019.

PLOIESTI VALUE CENTRE, PLOIESTI

Zoning efforts are ongoing for a retail development in Ploiesti on a plot of land in a densely populated residential
area in close proximity to the city's main train, tram and bus stations with high visibility and excellent road
access. Even though leasing has not yet commenced, several major anchor tenants have expressed strong interest
in the development.

ZALAU VALUE CENTRE, ZALAU

The building permit for the development of an 18,000 square metre GLA retail value centre with a
high concentration of anchor tenants in Zalau is expected to be issued in March 2019. The project location is
highly visible, in the immediate vicinity of a dense residential area and the city's regional bus terminal, on the
main road connecting Zalau with the other major cities in the county and wider Transylvania area. Lease
agreements have been entered with tenants including Carrefour, Noriel, Altex, CCC, Pepco, Jysk, Benvenuti and
Takko and the demolition works have commenced. The centre is expected to open for trade by November 2019.

SEPSI VALUE CENTRE, SFANTU GHEORGHE

About six hectares of land have been secured in Sfantu Gheorghe (54,000 inhabitants and the capital of Covasna
county) with plans to develop and operate a retail value centre of 15,000 square metres GLA with a high
concentration of anchor tenants. The project is in the immediate vicinity of the city centre and easily accessible by
car and public transport, both from the city as well as from the wider region. The catchment area includes
about 172,000 inhabitants within a 45-minute drive. Anchor tenants have expressed strong interest in the
planned development and permitting is ongoing. The centre is planned to open for trade by June 2020.

OTHER DEVELOPMENTS, EXTENSIONS AND LAND BANK

Plans are under way to refurbish and extend the retail assets owned in the investment joint venture with Prime
Kapital in CEE. They are expected to add approximately 57,000 square metres to the aggregate GLA of these
retail assets at a cost of about EUR134.5 million. This will increase the fashion and leisure offering of the centres to
consolidate their regionally dominant position and enhance asset performance. Plans include an
extension of 3,000 square metres GLA at Nova Park in Poland, for which the building permit has been received; an
extension of 15,000 square metres of GLA at Burgas Mall (formerly Galleria Burgas), for which land has been
secured; a refurbishment of Stara Zagora Mall (formerly Galleria Stara Zagora), which is expected to be
completed by July 2019; a major extension and redevelopment of Militari Shopping Centre; and
extensions to the newly developed assets which form part of the transaction with Prime Kapital
discussed above.

NEW WAVERLEY, EDINBURGH, SCOTLAND

The New Waverley development is nearing completion. The 19,000 square metre office development for
the UK government is on track to be completed before the end of the current financial year. In addition, the
southern section of the residential element of the scheme was sold to housebuilder Queensberry on 30
October 2018 for EUR7.5 million (GBP6.7 million).

LANGLEY PARK, CHIPPENHAM, ENGLAND

Planning permission was obtained in 2016 to develop the site for 400 residential units, a Travelodge hotel
with ground floor retail and a discount food store. The sale of the food store to Aldi was completed in June 2018. A
forward sale of the Travelodge was concluded with Torbay Council in 2018 and it is expected to be finalised
before the end of the financial year at the agreed price of EUR6.4 million (GBP5.8 million). Negotiations are at an
advanced stage with two housebuilders for the sale of the rest of the development site. It is
anticipated that legal contracts will be exchanged between the parties in the current financial year with sales
receipts to follow on a phased basis at key points over the development period. The combined gross sale price
for the residential land is EUR13.9 million (GBP12.4 million). To facilitate the sale of the development land, the existing car
park serving the Siemens main facility is being relocated from Langley Park land to the adjacent industrial and
business park, which we have retained. Work is ongoing and is expected to be completed in April 2019.

CAPITAL MANAGEMENT

At period end, the group held EUR52.9 million in cash (30 June 2018: EUR147.8 million); a portfolio of listed securities
valued at EUR149.2 million (30 June 2018: EUR183.1 million); and had access to EUR90.0 million in undrawn secured and
unsecured debt facilities. As a result of the deferred consideration for the post-interim period acquisition of the
Romanian retail asset portfolio, the undrawn facilities remain in place and the group does not expect it will need
to sell down its portfolio of listed securities in the near term.
  
At 31 December 2018 the group had EUR330.5 million of third-party debt finance in place (30 June 2018: EUR242.7
million). The group loan to value was 24.9% at 31 December 2018 (30 June 2018: 10.0%).
  
Efficient capital management is an important area of value creation for shareholders. To achieve this, the
board of directors will consider buying back shares as and when it can create value for shareholders, if the trading
price of the Company's shares falls below the intrinsic NAV per share. Such buybacks will be done with care,
since capital is a scarce and valuable resource.

PROSPECTS

MAS' strategy continues to be one of retaining investment discipline in pursuing only good-quality
acquisitions and developments with value-adding potential and attractive long-term growth prospects. MAS
benefits from a strong and increasingly efficient balance sheet with sufficient capital and undrawn
secured and unsecured bank finance facilities to meet its funding obligations. The group has
substantially rebalanced its exposure in favour of assets with potential for value accretive redevelopment and
long-term organic growth. The development pipeline is substantial, has the potential to increase further
and has delivered results well ahead of expectations to date. The group is therefore well positioned for
continued growth beyond the June 2019 financial year.
  
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 AND CHANGES:

Ron Spencer
(Non-Executive Chairman)
Malcolm Levy
(Interim CEO)
Paul Osbourn
(CFO)
Jonathan Knight
(CIO) 
Werner Alberts
(Non-Executive Director)
Jaco Jansen
(Non-Executive Director)
Pierre Goosen
(Non-Executive Director)
Glynnis Carthy
(Non-Executive Director)
Melt Hamman
(Non-Executive Director)

Morne Wilken, the former CEO, and Gideon Oosthuizen, former non-executive director, ceased to be directors with effect from 
14 December 2018. Paul Osbourn and Werner Alberts were appointed to the board with effect from 7 September
2018. Melt Hamman was appointed to the board with effect from 14 December 2018.

REPORTING CURRENCY

The group's results are reported in euros.

LISTINGS

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

EXTERNAL AUDITOR

During the period the board of directors with the approval of the shareholders considered the rotation
of auditor and has appointed PricewaterhouseCoopers LLC ("PwC") as group auditor on 27 November 2018.

DATE OF RELEASE

4 March 2019

INDEPENDENT AUDITOR'S REVIEW REPORT
ON INTERIM FINANCIAL STATEMENTS

TO THE SHAREHOLDERS OF MAS REAL ESTATE INC.
We have reviewed the condensed consolidated interim 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
2018 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 SAICA Financial Reporting Guides, as
issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards
Council 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 interim financial statements of MAS Real Estate Inc. for the six months ended 31 December 2018 are not
prepared, in all material respects, in accordance with the International Financial Reporting Standard, (IAS) 34 Interim Financial
Reporting, the SAICA Financial Reporting Guides, as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by Financial Reporting Standards Council.


PricewaterhouseCoopers LLC
Chartered Accountants
Sixty Circular Road
Douglas
Isle of Man
IM1 ISA
1 March 2019

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Six-month period ended 31 December 2018

                                                                                  Reviewed        Reviewed
                                                                                 Six-month       Six-month         Audited
                                                                              period ended    period ended      Year ended
                                                                               31 December     31 December         30 June
Euro                                                               Note               2018            2017            2018
                                                                                                                          
Rental income                                                         4         26,144,714      18,974,145      37,452,513
Service charges and other recoveries                                             4,504,330       2,147,390       5,954,048
Revenue                                                                         30,649,044      21,121,535      43,406,561
Service charges and other property operating expenses                          (6,891,085)     (5,859,557)    (11,073,518)
Net rental income                                                               23,757,959      15,261,978      32,333,043

Sales of inventory property                                                     27,985,713        6,398,637     26,020,940
Cost of sales of inventory property                                           (23,697,456)      (5,339,258)   (21,704,016)
Profit on sales of inventory property                                 5          4,288,257        1,059,379      4,316,924

Other income                                                          6          1,957,207           89,831      8,585,032
Corporate expenses                                                             (3,103,013)      (2,500,957)    (4,946,973)
Investment expenses                                                   7        (1,346,995)      (1,335,379)    (1,976,096)
Net operating income                                                            25,553,415       12,574,852     38,311,930
 
Fair value adjustments                                                8       (24,735,019)        (613,755)   (15,800,127)
Foreign currency exchange differences                                               33,700        (586,186)    (1,020,787)
Share of profit from equity accounted investee, net of tax           16          6,398,768        1,543,057      3,568,925
Gain on bargain purchase/(goodwill impairment)                    11,25         12,263,193      (1,274,346)    (1,274,346)
Profit before finance income/costs                                              19,514,057       11,643,622     23,785,595
 
Finance income                                                        9          5,148,562        3,950,621      7,975,558
Finance costs                                                         9        (3,854,447)      (2,477,372)    (5,560,344)
Profit before tax                                                               20,808,172       13,116,871     26,200,809

Current tax                                                          10        (1,994,464)      (2,078,633)    (5,556,002)
Deferred tax                                                         10        (2,758,191)        1,047,747    (1,311,385)
Profit for the period/year                                                      16,055,517       12,085,985     19,333,422
 
Attributable to:
Owners of the group                                                             11,086,908       11,703,478     16,856,306
Non-controlling interest                                             19          4,968,609          382,507      2,477,116
 
Basic earnings per share (euro cents)                                27               1.74             2.25           2.92
Diluted earnings per share (euro cents)                              27               1.74             2.25           2.92

CONDENSED CONSOLIDATED STATEMENT OF OTHER
COMPREHENSIVE INCOME
Six-month period ended 31 December 2018

                                                                                   Reviewed         Reviewed
                                                                                  Six-month        Six-month        Audited
                                                                               period ended     period ended     Year ended
                                                                                31 December      31 December        30 June
Euro                                                                    Note           2018             2017           2018

Profit for the period/year                                                       16,055,517       12,085,985     19,333,422
                                                                          
Other comprehensive income                                                
Items that are or may be reclassified subsequently                        
to profit or loss
Foreign operations - foreign currency translation differences                   (1,557,070)      (1,187,667)    (1,207,816)
                                                                          
Total comprehensive profit for the period/year                                   14,498,447       10,898,318     18,125,606

Attributable to:
Owners of the group                                                               9,529,838       10,515,811     15,648,490
Non-controlling interest                                                  19      4,968,609          382,507      2,477,116

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Six-month period ended 31 December 2018

                                                                               Reviewed          Reviewed          Audited
                                                                                  As at             As at            As at
                                                                            31 December       31 December          30 June
Euro                                                               Note            2018              2017             2018

Non-current assets                                                                                                        
Investment property                                                  12     752,925,945       489,518,759      579,212,345
Intangible assets                                                    11      22,411,962        22,515,572       22,592,493
Investment in equity accounted investee                              16      30,172,990        21,751,615       23,774,222
Financial assets                                                     21     162,558,275       129,103,276      105,394,992
Property, plant and equipment                                                   280,404           548,181          485,620
Deferred tax asset                                                   10         780,574           756,280          607,179
Financial investments                                                15               -       200,120,816      183,052,263
Total non-current assets                                                    969,130,150       864,314,499      915,119,114

Current assets
Financial assets                                                     21      24,577,732                 -       24,507,316
Inventory property                                                   14       2,757,781                 -        1,293,501
Investment property held for sale                                    13      16,841,620        53,647,686       53,588,444
Trade and other receivables                                          23      22,855,693         7,688,545       16,148,333
Financial investments                                                15     149,171,912                 -                -
Cash and cash equivalents                                            17      52,858,418       187,341,606      147,825,624
Total current assets                                                        269,063,156       248,677,837      243,363,218
Total assets                                                              1,238,193,306     1,112,992,336    1,158,482,332

Equity
Share capital                                                               829,250,399       837,465,772      829,250,399
Geared share purchase plan shares                                          (12,863,010)      (21,056,010)     (12,863,010)
Retained earnings                                                            34,012,620        60,633,693       48,616,712
Share-based payment reserve                                          18       1,271,565           702,521        1,031,739
Foreign currency translation reserve                                       (13,325,189)      (11,747,970)     (11,768,119)
Equity attributable to owners of the group                                  838,346,385       865,998,006      854,267,721
Non-controlling interest                                             19       6,293,349         1,030,314        2,527,202
Total equity                                                                844,639,734       867,028,320      856,794,923

Non-current liabilities
Interest bearing borrowings                                          20     242,267,141       166,657,495      214,407,455
Financial liabilities                                                22       1,805,669        25,304,748        1,696,005
Deferred tax liability                                               10       8,515,711         3,761,990        6,139,373
Total non-current liabilities                                               252,588,521       195,724,233      222,242,833

Current liabilities
Interest bearing borrowings                                          20      88,255,210        27,929,088       28,305,652
Financial liabilities                                                22      29,403,839         9,991,544       36,121,577
Trade and other payables                                             24      23,052,254        12,279,787       14,733,264
Provisions                                                                      253,748            39,364          284,083
Total current liabilities                                                   140,965,051        50,239,783       79,444,576
Total liabilities                                                           393,553,572       245,964,016      301,687,409
Total shareholder equity and liabilities                                  1,238,193,306     1,112,992,336    1,158,482,332
Actual number of ordinary shares in issue                                   637,493,798       633,915,786      637,493,798
IFRS Net Asset Value per share (euro cents)                                       131.5             136.6            134.0

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six-month period ended 31 December 2018

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

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                         18              -              -              -         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                                           290,334,223              -              -               -             -    290,334,223               -   290,334,223
Distributions                                            (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
Comprehensive income for the period
Profit for the period                                               -              -      5,152,828               -             -      5,152,828       2,094,609     7,247,437
Other comprehensive loss                                            -              -              -               -      (20,149)       (20,149)               -      (20,149)
Total comprehensive profit/(loss) for the period                    -              -      5,152,828               -      (20,149)      5,132,679       2,094,609     7,227,288
Equity transactions
Share-based payment reserve                         18              -              -              -         329,218             -        329,218               -       329,218
Total equity transactions                                           -              -              -         329,218             -        329,218               -       329,218
Transactions with the owners of the group
Issue of shares                                             5,501,987              -              -               -             -      5,501,987               -     5,501,987
Shares forfeited and cancelled                            (8,193,000)      8,193,000              -               -             -              -               -             -
Distributions                                             (5,524,360)              -   (17,169,809)               -             -   (22,694,169)       (597,721)  (23,291,890)
Total transactions with the owners of the group           (8,215,373)      8,193,000   (17,169,809)               -             -   (17,192,182)       (597,721)  (17,789,903)
Balance at 30 June 2018 (audited)                         829,250,399   (12,863,010)     48,616,712       1,031,739  (11,768,119)    854,267,721       2,527,202   856,794,923
Comprehensive income for the period
Profit for the period                                               -              -     11,086,908               -             -     11,086,908       4,968,609    16,055,517
Other comprehensive loss                                            -              -              -               -   (1,557,070)    (1,557,070)               -   (1,557,070)
Total comprehensive profit/(loss) for the period                    -              -     11,086,908               -   (1,557,070)      9,529,838       4,968,609    14,498,447

Equity transactions
Share-based payment reserve                         18              -              -              -         239,826             -        239,826               -      239,826
Total equity transactions                                           -              -              -         239,826             -        239,826               -      239,826
Transactions with the owners of the group and
non-controlling interests
Distributions                                                       -              -   (25,691,000)               -             -   (25,691,000)     (1,202,462) (26,893,462)
Total transactions with the owners of the group                     -              -   (25,691,000)               -             -   (25,691,000)     (1,202,462) (26,893,462)
and non-controlling interests
Balance at 31 December 2018 (reviewed)                    829,250,399   (12,863,010)     34,012,620       1,271,565  (13,325,189)    838,346,385       6,293,349  844,639,734

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six-month period ended 31 December 2018


                                                                                                                                      Reviewed        Reviewed
                                                                                                                                     Six-month       Six-month        Audited
                                                                                                                                  period ended    period ended     Year ended
                                                                                                                                   31 December     31 December        30 June
Euro                                                                                                                   Note               2018            2017           2018

Cash generated from operating activities                                                                                 17         21,649,309      11,847,042     34,900,798
Adjustments:
Decrease in receivables                                                                                                                516,733       2,235,006      1,029,613
Decrease in payables                                                                                                                 (539,188)       (536,479)      (904,406)
(Decrease)/increase in provisions                                                                                                     (27,915)        (52,441)        192,278
Finance income received - interest on preference shares                                                                              4,630,321               -      3,602,861
Tax paid on operating activities                                                                                         10        (1,010,808)       (215,056)    (3,434,495)
Net cash from operating activities                                                                                                  25,218,452      13,278,072     35,386,649

Investing activities
Acquisition of investment property                                                                                       12       (25,000,000)               -   (79,650,439)
Capitalised expenditure on investment property                                                                           12        (8,053,711)     (6,606,326)   (13,167,161)
Settlement of investment property acquisition retentions                                                                                     -               -      (225,000)
Proceeds from the sale of investment property                                                                            12                  -      23,826,034     24,057,746
Capitalised expenditure on investment property held for sale                                                                       (1,438,992)        (95,786)    (1,149,597)
Proceeds from the sale of investment property held for sale                                                              13         49,263,427       5,140,745      7,353,427
Expenditure on inventory property                                                                                                 (25,771,039)     (5,153,579)   (17,676,966)
Proceeds from sales of inventory property                                                                                           23,551,191       5,153,579     17,571,371
Acquisition of subsidiaries net of cash acquired                                                                         25      (119,216,499)               -              -
Investment in PKM preference shares                                                                                      21       (57,000,000)               -              -
Capitalised transaction costs of equity-accounted investee                                                                                   -         (3,261)              -
Acquisition of property, plant and equipment                                                                                          (15,512)        (30,251)       (25,627)
Disposal of property, plant and equipment                                                                                               73,145               -              -
Capitalised expenditure on intangible assets                                                                                          (31,669)        (35,428)       (78,679)
Acquisition of financial investments                                                                                                         -   (198,082,689)  (199,557,215)
Finance costs paid - interest incurred on bank deposits                                                                   9           (16,439)       (146,796)      (332,222)
Finance income received - interest earned on bank deposits                                                                9             11,200           3,191          4,223
Settlement of financial liability                                                                                                            -     (1,318,000)    (1,093,000)
Settlement of financial asset                                                                                                                -          66,097         66,097
Tax paid on investing activities                                                                                         10        (1,347,840)               -    (1,541,766)
Cash used in investing activities                                                                                                (164,992,738)   (177,282,470)  (265,444,808)

Financing activities
Proceeds from the issue of share capital                                                                                                     -     279,909,499    279,917,834
Proceeds from interest-bearing borrowings                                                                                20        101,207,794      53,000,000    104,067,925
Transaction costs related to interest-bearing borrowings                                                                 20          (897,711)       (699,386)    (1,431,560)
Repayment of capital on interest-bearing borrowings                                                                      20       (25,327,553)     (4,409,446)    (7,350,266)
Finance costs paid - interest on interest-bearing borrowings                                                             20        (3,448,874)     (2,161,092)    (4,435,102)
Distributions paid                                                                                                                (26,893,462)     (6,957,823)   (25,096,317)
Cash generated from financing activities                                                                                            44,640,194     318,681,752    345,672,514

Net (decrease)/increase in cash and cash equivalents                                                                              (95,134,092)     154,677,354    115,614,355
Cash and cash equivalents at the beginning of the period/year                                                                      147,825,624      33,017,502     33,017,502
Effect of movements in foreign exchange rate fluctuations                                                                              166,886       (353,250)      (806,233)
on cash held
Cash and cash equivalents at the end of the period/year                                                                  17         52,858,418     187,341,606    147,825,624

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Six-month period ended 31 December 2018

1. CORPORATE INFORMATION
MAS Real Estate Inc. (the "company" or "MAS") is domiciled in the British Virgin Islands ("BVI") and head quartererd in the Isle
of Man ("IoM"). These condensed consolidated interim financial statements are as at, and for the six-month period ended 31
December 2018 and comprise the company and its subsidiaries (together referred to as the "group"). Comparative figures are
included for both the six-month period ended 31 December 2017 and the year ended 30 June 2018, however the latter are not
directly comparable due to the different length of period.
 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 ("LuxSE") and applicable legal and regulatory
requirements of the BVI Business Companies Act 2004.

SIGNIFICANT JUDGEMENTS AND ESTIMATES
The board has 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 for the year ended 30 June 2018 with the addition of the following key judgement made in the period:  
 Determination of whether the acquisition of an investment property is a business combination: The group applies
judgement to the acquisition of investment property to determine whether the acquisition is the acquisition of an asset, a
group of assets or a business combination in the scope of IFRS 3 'Business Combinations'. During the year there were two
acquisitions which are considered business combinations because the strategic management was acquired, refer to note 25.

3. SIGNIFICANT ACCOUNTING POLICIES
Except as described below 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 2018. Accordingly, these financial statements should be read in conjunction with the consolidated financial
statements for the year ended 30 June 2018 as well as any public announcements made by the group during the six-month
period ended 31 December 2018.
 During the six-month period ended 31 December 2018, the group adopted the following standards:
- IFRS 9 (2014) - Financial Instruments
- IFRS 15 - Revenue from Contracts with Customers

 The adoption of these standards does not affect previously reported numbers, however, there are additional disclosure
requirements. A number of other new standards are effective and have been adopted from 1 July 2018 but they have not had
a material effect on these condensed consolidated interim financial statements.
 The changes in the accounting policies will be reflected in the group's consolidated financial statements for the year ended
30 June 2019.

IFRS 9 (2014) - FINANCIAL INSTRUMENTS
The group early adopted IFRS 9 (2013) Financial Instruments for the year ended 30 June 2015, the group has now adopted
IFRS 9 (2014) Financial Instruments. The amendments to this standard introduce an expected credit loss model which
requires expected credit losses to be recognised on financial assets held at amortised cost. The adoption of IFRS 9 (2014)
Financial Instruments has no material impact on these condensed consolidated interim financial statements. The group has
adopted the following policy with effect from 1 July 2018:

IMPAIRMENT OF FINANCIAL ASSETS
The group recognises loss allowances for expected credit losses on: financial assets measured at amortised cost; and contract
assets.
 For lease receivables, trade receivables and contract assets the group applies the simplified approach to measuring
expected credit losses which uses a lifetime expected loss allowance. For all other financial assets 12 month expected credit
losses are recognised where the financial asset is determined to have a low credit risk and for which the credit risk has not
increased significantly since initial recognition. When determining whether the credit risk of a financial asset has increased
significantly since initial recognition and when estimating expected credit losses, the group considers quantitative and
qualitative information that is reasonably available.
 Lifetime expected credit losses are expected defaults over the expected life of the financial asset. 12 month expected credit
losses are expected defaults within the 12 months after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months). The maximum period considered when estimating expected credit losses is the maximum
contractual period over which the group is exposed to credit risk.

IFRS 15 - REVENUE FROM CONTRACTS WITH CUSTOMERS
This standard replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. It applies to contracts with
customers except for: lease contracts, finance insurance contracts, financial instruments and non-monetary exchanges
between entities in the same business. The standard establishes a five-step model which determines whether, how much and
when revenue is recognised.
 The majority of the group's income is rental income from leases, which are in the scope of IAS 17 Leases and is therefore
not affected by the new standard. The recognition and measurement requirements in IFRS 15 Revenue from Contracts with
Customers are applicable for determining the timing of derecognition and the measurement of consideration (including
applying the requirements for variable consideration) of any gains or losses on disposal of non-financial assets when that
disposal is not in the ordinary course of business. The group has determined that no changes are required on transition to
IFRS 15 Revenue from Contracts with Customers for past disposals of investment properties previously held for rental income.

The group has identified the following revenue streams that are in the scope of IFRS 15 Revenue from Contracts with
Customers:
- Sales of inventory property; and
- Service charges and other recoveries

SALES OF INVENTORY PROPERTY
The group enters into contracts with customers to sell inventory property which is either complete or under development.
Where contracts include development management services and consequently include the provision of a number of goods
and services, the group determines whether the goods and services are not distinct and accounts for them as a single
performance obligation if they are not separately identifiable from other promises in the contract.
 The group determines whether control is transferred at a point in time or over time based upon the following:
- Sales of inventory property under development are recognised over time when the group's performance creates an
  asset that the customer controls as the asset is created. In these situations, the group recognises sales of inventory
  property to the extent that the performance obligations have been satisfied.
- Sales of inventory property under development are recognised on completion when control is transferred at a point
  in time.

For contracts where sales of inventory property are recognised over-time the group's performance is measured using the
input method, by reference to the costs incurred as a percentage of the total expected costs required to satisfy the
performance obligation. The group excludes the effect of costs incurred that do not contribute to the group's performance
obligations, such as wastage, and adjusts for costs incurred that are not proportionate to the group's progress in satisfying the
performance obligations, such as uninstalled materials.
 Where contracts for the sale of inventory property include a variable consideration, the transaction price is estimated and
includes the impact of constraints. The group uses either the most likely or expected value method depending on which best
predicts the transaction price.
 The group does not adjust the transaction price for the effects of a financing component in the contract, where the group
expects, at contract inception, that the period between the time the customer pays for the good or service and when the
group transfers that promised good or service to the customer will be one year or less.

SERVICE CHARGES AND OTHER RECOVERIES
The group has lease agreements that fall within the scope of IAS 17 which also include the provision of common area
maintenance. These services which are specified in the lease agreement are distinct non-lease components and are separately
invoiced. The group allocates the consideration in the lease contract to the lease component and revenue from contracts with
customers component. The group recognises revenue in relation to these services as the performance obligations are
satisfied over time.

The group adopted the standard on 1 July 2018 with effect from 1 July 2017 using the full retrospective method with the
practical expedient of disclosing the amount of the transaction price allocated to the remaining performance obligations or an
explanation of when the group expects to recognise the transaction price for comparative periods. Where the standard does
apply to the group's contracts with its customers there is no effect of adopting the new standard. Accordingly, the
information presented as at and for the six-month period ended 31 December 2017 has not been restated. However, there are
additional disclosure requirements and a reclassification of previously reported numbers, refer to note 23.

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, and which are expected to be applicable to the group:

                                                                                                             Effective for annual periods
Amendments/improvements to standards and interpretations not yet effective                                          beginning on or after
IFRS 16 - Leases                                                                                                           1 January 2019
IFRS 3 - Amendment to IFRS 3 'Business combinations'                                                                       1 January 2021
IFRIC 23 - Uncertainty over income tax treatments                                                                          1 January 2020
IAS 28 - Amendments to IAS 28 'Investments in associates' on long term interests                                           1 January 2020
in an associate or joint venture

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 Leases.
The group will provide additional disclosure on operating leases it enters into as lessor. Other than that, the group is also a
lessee under a lease contract for the group's head office. The group has assessed the impact of this lease and has concluded
that it is unlikely that there will be a significant impact.
The group will adopt the new standard for the year ending 30 June 2020.

IFRS 3 - AMENDMENT TO IFRS 3 'BUSINESS COMBINATIONS'
The amendment clarifies the definition of a business combination to resolve the difficulties that arise when an entity
determines whether it has acquired a business or a group of assets.
The group has not yet assessed the impact of adopting this amendment. The group will adopt the amendment for the year
ending 30 June 2022.

IFRIC 23 - UNCERTAINTY OVER INCOME TAX TREATMENTS
The amendment clarifies the accounting for uncertainties in income taxes.
The group has not yet assessed the impact of adopting this amendment. The group will adopt the amendment for the year
ending 30 June 2021.

IAS 28 - AMENDMENTS TO IAS 28 'INVESTMENTS IN ASSOCIATES' ON LONG TERM INTERESTS IN AN ASSOCIATE OR JOINT VENTURE
IAS 28 clarifies that an entity applies IFRS 9 'Financial Instruments' to long term interests in an associate or joint venture that
form part of the new investment in the associate or joint venture but to which the equity method is not applied.
The group has not yet assessed the impact of adopting this amendment. The group will adopt the amendment for the year
ending 30 June 2021.

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                                                                                   2018             2017             2018

Edeka MIHA AG                                                                     2,926,132        2,918,539        5,837,967


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                                                                                   2018            2017              2018

No later than 1 year                                                             49,933,764      33,942,945        39,501,963
Greater than 1 year and less than 5 years                                       159,099,210     113,581,661       135,874,939
Greater than 5 years                                                            216,835,901     178,163,445       182,238,453
                                                                                425,868,875     325,688,051       357,615,355

Turnover rent of EUR1,332,003 (December 2017: EUR1,767,573; June 2018: EUR1,991,196) is included in rental income.


5. PROFIT ON SALES OF INVENTORY PROPERTY

                                                                                   Reviewed        Reviewed
                                                                                  Six-month       Six-month          Audited
                                                                                     period          period             Year
                                                                                      ended           ended            ended
                                                                                31 December     31 December          30 June
Euro                                                                                   2018            2017             2018

Sales of inventory property                                                      27,985,713       6,398,637       26,020,940
Cost of sales of inventory property                                            (23,697,456)     (5,339,258)     (21,704,016)
                                                                                  4,288,257       1,059,379        4,316,924

During the period a total profit of EUR4,288,257 (December 2017: EUR1,059,379; June 2018: EUR4,316,924) in relation to inventory
property was recognised, which derives from the pre-let agreement and disposal of land agreement for the office component of the
New Waverley development.

6. OTHER INCOME
                                                                                  Reviewed        Reviewed          Audited
                                                                                 Six-month       Six-month             Year
                                                                              period ended    period ended            ended
                                                                               31 December     31 December          30 June
Euro                                                                                  2018            2017             2018

Dividend income earned on financial investments                                  1,879,863          83,217        8,423,423
Other                                                                               77,344           6,614          161,609
                                                                                 1,957,207          89,831        8,585,032


7. INVESTMENT EXPENSES
                                                                     Note         Reviewed        Reviewed         Audited
                                                                                 Six-month       Six-month            Year
                                                                              period ended    period ended           ended
                                                                               31 December     31 December         30 June
Euro                                                                                  2018            2017            2018
                                                                     
Transaction fees on acquisition of subsidiaries                        25          839,282               -               -
Transaction fees on aborted transactions                                           451,784         618,423       1,216,370
Transaction fees on listed real estate equity securities                           55,929          716,956         759,726
                                                                                 1,346,995       1,335,379       1,976,096

8. FAIR VALUE ADJUSTMENTS
                                                                                  Reviewed         Reviewed        Audited
                                                                                 Six-month        Six-month           Year
                                                                              period ended     period ended          ended
                                                                               31 December      31 December        30 June
Euro                                                                 Note             2018             2017           2018

Gain/(loss) on fair value of investment property                       12       10,625,741      (4,140,178)      (721,387)
(Loss)/gain on fair value of investment property held for sale         13        (467,919)        1,568,735      2,766,206
(Loss)/gain on fair value of financial assets                          21         (38,621)                -        350,585
(Loss)/gain on fair value of financial liabilities                               (973,869)            2,778    (1,690,579)
(Loss)/gain on fair value of financial investments                     15     (33,880,351)        1,954,910   (16,504,952)
                                                                              (24,735,019)        (613,755)   (15,800,127)

Detailed as follows:

Change in fair value of investment property
Income-generating                                                      12      14,854,518           521,643     13,439,408
Development                                                            12               -       (5,725,938)    (4,559,691)
Land bank                                                              12     (4,228,777)         1,064,117    (9,601,104)
                                                                               10,625,741       (4,140,178)      (721,387)
Fair value movement in investment property held for sale
Investment property held for sale                                      13       (467,919)         1,568,735      2,766,206
                                                                                (467,919)         1,568,735      2,766,206
Change in fair value of financial assets
Interest rate swaps                                                    21        (38,621)                 -        350,585
                                                                                 (38,621)                 -        350,585
Change in fair value of financial liabilities
Interest rate swaps                                                    22        (90,194)          (46,353)      (123,226)
Development management fee                                             22       (299,089)         (152,455)      (682,956)
Priority participating profit dividend                                 22       (584,586)           201,586      (884,397)
                                                                                (973,869)             2,778    (1,690,579)
Change in fair value of financial investments
Listed real estate equity securities                                   15    (33,880,351)         1,954,910   (16,504,952)
                                                                             (33,880,351)         1,954,910   (16,504,952)

9. FINANCE INCOME AND FINANCE COSTS
The group's finance income and finance costs comprise:

                                                                                Reviewed         Reviewed         Audited
                                                                               Six-month        Six-month            Year
                                                                            period ended     period ended           ended
                                                                             31 December      31 December         30 June
Euro                                                                Note            2018             2017            2018

Finance income
Interest on PKM Developments preference shares                        21       4,835,323        3,795,207       7,514,384
Capital contribution - unwind of discount                             21         302,039          152,223         456,951
Interest on bank deposits                                                         11,200            3,191           4,223
                                                                               5,148,562        3,950,621       7,975,558
Finance costs
Interest on interest bearing borrowings                               20     (3,535,969)      (2,156,911)     (4,771,171)
Capital contribution - unwind of discount                             22       (302,039)        (152,223)       (456,951)
Negative interest on bank deposits                                              (16,439)        (146,796)       (332,222)
Other finance costs                                                                    -         (21,442)               -
                                                                             (3,854,447)      (2,477,372)     (5,560,344)

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

The group's tax includes the following:

                                                                                       Reviewed           Reviewed
                                                                                      Six-month          Six-month         Audited
                                                                                   period ended       period ended      Year ended
                                                                                    31 December        31 December         30 June
Euro                                                                                       2018               2017            2018

Current tax                                                                           1,994,464          2,078,633       5,556,002
Deferred tax expense/(income)                                                         2,758,191        (1,047,747)       1,311,385
Tax expense                                                                           4,752,655          1,030,886       6,867,387

The current tax, 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 2018               31 December 2017                 30 June 2018

                                                 Applicable                    Applicable                     Applicable
Euro                                               rate (%)          Tax        rate (%)          Tax        rate (%)          Tax

Income/corporation tax
UK - income tax                                        20.0      284,986            20.0      526,616            20.0      779,132
UK - corporation tax                                   19.0      813,594            19.0    1,860,399            19.0    2,394,030
Germany                                                15.8      219,903            15.8     (30,351)            15.8      210,255
Poland                                                 19.0      177,986            19.0    (280,221)            19.0       66,792
Switzerland                                            26.8       16,379            26.8       32,288            26.8       23,683
Netherlands                                            20.0       14,170            20.0            -            20.0       25,689

Withholding tax
Poland                                                  5.0       98,853             5.0            -             5.0    (281,974)
UK                                                     20.0       84,826            20.0            -            20.0      144,982
France                                                 30.0      115,940            30.0            -            30.0    2,174,252
Sweden                                                 15.0           -             15.0            -            15.0       55,170
Netherlands                                            15.0      160,390            15.0            -            15.0            -

Wealth tax
Switzerland                                             0.2      (5,410)             0.2          887             0.2       19,490
Luxembourg                                              0.5       12,847             0.5     (30,985)             0.5     (55,499)
                                                               1,994,464                    2,078,633                    5,556,002

The amount of tax paid on operating activities in the period was EUR1,010,808 (December 2017: EUR215,056; June 2018:
EUR3,434,495) and the amount of tax paid on investing activities in the period was EUR1,347,840 (December 2017: EURnil; June 2018:
EUR1,541,766).

The UK corporation tax relates to the following sales at New Waverley, refer to note 14:
-  Tax on disposal of office land of EURnil (December 2017: EUR1,659,117, June 2018: EUR1,581,195).
-  Tax on sale of inventory property of EUR813,594 (December 2017: EUR201,282 June 2018: EUR812,835).

RECONCILIATION OF DEFERRED TAX:

                                                                                     Reviewed         Reviewed
                                                                                    Six-month        Six-month        Audited
                                                                                 period ended     period ended     Year ended
                                                                                  31 December      31 December        30 June
Euro                                                                   Note              2018             2017           2018

Net deferred tax liability brought forward                                          5,532,194        4,240,319      4,240,319
Current period/year deferred tax movement                                           2,758,191      (1,047,747)      1,311,385
Acquisition of subsidiaries - deferred tax asset                         25         (562,660)                -
Disposal of investment property                                                             -        (156,224)              -
Foreign currency translation difference in other comprehensive                          7,412         (30,638)       (19,510)
income ("OCI")
Net deferred tax liability carried forward                                          7,735,137        3,005,710      5,532,194


The net deferred tax liability is split as follows:
                                                                                     Reviewed         Reviewed
                                                                                        As at            As at       Audited
                                                                                  31 December      31 December As at 30 June
Euro                                                                                     2018             2017          2018

Deferred tax asset                                                                    780,574          756,280       607,179
Deferred tax liability                                                            (8,515,711)      (3,761,990)   (6,139,373)
Net deferred tax liability                                                        (7,735,137)      (3,005,710)   (5,532,194)



RECONCILIATION OF EFFECTIVE TAX RATE
                                                                    Reviewed                Reviewed
                                                                   Six-month               Six-month                 Audited
                                                                period ended            period ended              Year ended
                                                                 31 December             31 December                 30 June
Euro                                                       %            2018       %            2017         %          2018

Profit before tax                                                 20,808,172              13,116,871              26,200,809
Tax using the company's domestic rate                    0.0               -     0.0               -       0.0             -
Effect of tax rates in foreign jurisdictions           (9.6)     (2,007,422)  (15.8)     (2,078,633)    (22.5)   (5,894,358)
Over provision in respect of year                        0.1          12,958     0.0               -       1.3       338,356
Current tax                                            (9.5)     (1,994,464)  (15.8)     (2,078,633)    (21.2)   (5,556,002)

Change in recognised deductible temporary
differences
Revaluation of investment property                    (10.3)     (2,142,244)    14.0       1,833,632       1.9       488,574
Other temporary differences                            (3.0)       (615,947)   (6.0)       (785,885)     (6.9)   (1,799,959)
Deferred tax expense                                  (13.3)     (2,758,191)     8.0       1,047,747     (5.0)   (1,311,385)
Net tax expense                                       (22.8)     (4,752,655)   (7.8)     (1,030,886)    (26.2)   (6,867,387)

The Isle of Man domestic tax rate of 0% was considered the most meaningful rate on the basis that the profits are earned
across several jurisdictions and none of those jurisdictions dominates the group's portfolio.
 The other temporary differences relate to timing differences between the tax base and carrying amount of the assets due
to depreciation allowable for tax purposes and unused tax losses.
 There has been no change in the applicable tax rates. The primary reason for the decrease in the effective tax rate from
26.2% at the 30 June 2018 to 22.8% is a result of changes in geographical mix of profits.

11. INTANGIBLE ASSETS
                                                                                  Reviewed        Reviewed         Audited
                                                                                     As at           As at           As at
                                                                               31 December     31 December         30 June
Euro                                                                                  2018            2017            2018

Goodwill                                                                        22,083,599      22,265,340      22,292,997
Other intangible assets                                                            328,363         250,232         299,496
                                                                                22,411,962      22,515,572      22,592,493
IMPAIRMENT
The recoverable amounts of the group's CGUs are the higher of their value-in-use and fair value less costs to sell.
 The group's goodwill relates to the internalisation of MAS Property Advisors Limited. As there were no indicators of
impairment at 31 December 2018, no impairment test was performed. Goodwill will be tested for impairment at 30 June 2019.
No impairment charge arose as a result of the group's previous annual impairment test of goodwill at 30 June 2018
(December 2017: nil).
 At 31 December 2017 an impairment test was performed in relation to goodwill arising on the New Waverley development
CGU. As a result, an impairment of EUR1,274,346 (June 2018: EUR1,274,346) was recognised resulting in the related goodwill being
written down to nil.

12.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                           Residential developments and land plots held for schemes that have not yet
                                    commenced.


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

                                                                               As at 31 December 2018 (reviewed)
Euro                                                                          Fair value         Cost          Total

Income-generating property                                                   731,585,733            -    731,585,733
Development property                                                                   -            -              -
Land bank                                                                     21,340,212            -     21,340,212
                                                                             752,925,945            -    752,925,945

                                                                               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 30 June 2018 (audited)
Euro                                                                          Fair value         Cost          Total

Income-generating property                                                   546,238,139            -    546,238,139
Development property                                                                   -            -              -
Land bank                                                                     32,974,206            -     32,974,206
                                                                             579,212,345            -    579,212,345

As at 31 December 2018 (reviewed)
                                                                   Income-
Euro                                                Note        generating      Development       Land bank           Total

Opening balance                                                546,238,139                -      32,974,206      579,212,345
Property acquisitions                                           25,000,000                -               -       25,000,000
Property acquisitions as part of acquisition of       25       142,784,946                -               -      142,784,946
subsidiaries
Transfer to asset held for sale                       13                 -                -    (11,627,589)     (11,627,589)
Capitalised expenditure                                          3,758,784                -       4,294,927        8,053,711
Capitalised interest on general borrowings                               -                -         216,191          216,191
Fair value adjustment                                  8        14,854,518                -     (4,228,777)       10,625,741
Foreign currency translation difference                        (1,050,654)                -       (288,746)      (1,339,400)
Closing balance                                                731,585,733                -      21,340,212      752,925,945

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         13      (42,960,539)        (531,094)     (7,618,037)    (51,109,670)
Capitalised expenditure                                            225,006        3,202,877       3,178,443       6,606,326
Capitalised interest on general borrowings                               -          220,659          88,245         308,904
Fair value adjustment                                 8            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 30 June 2018 (audited)
                                                                   Income-
Euro                                                            generating      Development       Land bank           Total

Opening balance                                                494,519,173       30,081,795      39,690,960     564,291,928
Property acquisitions                                           80,123,500                -               -      80,123,500
Property disposals                                                       -     (24,057,746)               -    (24,057,746)
Transfers                                                                -      (3,434,151)       3,434,151               -
Transfer to investment property held for sale         13      (43,082,065)                -     (8,246,692)    (51,328,757)
Transfer to inventory property                        14                 -      (1,078,030)               -     (1,078,030)
Capitalised expenditure                                          2,890,738        2,954,116       7,322,307      13,167,161
Capitalised interest on general borrowings                               -                -         569,031         569,031
Fair value adjustment                                 8         13,439,408      (4,559,691)     (9,601,104)       (721,387)
Foreign currency translation difference                        (1,652,615)           93,707       (194,447)     (1,753,355)
Closing balance                                                546,238,139                -      32,974,206     579,212,345


INTEREST BEARING BORROWINGS
Bank borrowings of EUR256,639,557 (December 2017: EUR194,586,583, June 2018: EUR242,713,107) are secured against investment
property. The group has designated bank borrowings drawn down in the period of EUR114,050,163 as general borrowings
(December 2017: EUR53,000,000, June 2018: EUR104,067,925). During the reporting period interest costs on general borrowings of
EUR217,397 (December 2017: EUR308,904, June 2018: EUR570,385, refer to note 20), have been capitalised and are included within
land bank as above EUR216,191 (December 2017: EUR308,904, June 2018: EUR569,031) and inventory property EUR1,206 (December 2017: EURnil,
June 2018 EUR1,354), refer to note 14.

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, refer to note 22 and note 31.
In addition, the group has capitalised costs of EUR1,532,293 (December 2017: EUR327,635, June 2018: of EUR2,419,958) incurred from
related parties, refer to note 28.

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 reviewing the carrying value and assessing if there have
been any material changes to the significant inputs or to other relevant information generated by market transactions ("the
Assessment"). If there has been a material change to the value of the investment property, an external independent valuation
is obtained. Where the directors conclude that there has not been a material change to the value of the investment property,
the carrying value issued, being the most recent external valuation or acquisition price where relevant is used.
 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 agrees with the valuation, the valuation reports are reviewed by the
finance team to confirm their numerical and methodological accuracy. The valuations and the Assessment are approved by
the Portfolio Management Committee and Investment Committee. Lastly, the investment property valuations and the
Assessment are reviewed by the Audit and Risk Committee prior to the finalisation of the financial statements.

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

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.
 At 31 December 2018 the method of valuation for investment property of EUR85,093,504 changed from purchase price to
discounted cash flows and the method of valuation for investment property of EUR2,482,856 changed from discounted cash
flows to a firm offer.

As at 31 December 2018, 31 December 2017 and 30 June 2018

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

Income-      Discounted cash flows:                  December       -  Risk adjusted         The estimated fair value would
generating   The valuation model considers the       2018              discount rates        increase/(decrease) if:
property     present value of net cash flows to      EUR704,102,877    (4.5% - 11.75%)       - Expected market rental
             be generated from the property,                        -  Estimated rental        growth was higher/ (lower)
             taking into account expected            December          value (December       - The estimated rental value
             rental growth rate, void periods,       2017              2018: EUR51,912,296       was higher/(lower)
             occupancy rate, lease incentive         EUR450,304,737    p.a., December        - The reversionary discount
             costs such as rent-free periods and                       2017: EUR31,461,564       rate was lower/(higher)
             other costs not paid by tenants.        June 2018         p.a., June 2018:      - The risk adjusted discount
             The expected net cash flows are         EUR466,114,639    EUR34,178,897 p.a.)       rate was lower/(higher)
             discounted using risk-adjusted                         -  Net rental growth
             discount rates. Among other                               (1% - 2%)
             factors, the discount rate estimation                  -  Reversionary
             considers the quality of a building                       discount rate
             and its location, tenant credit                           (5.25% - 9.5%)
             quality and lease terms.

             Purchase price:                         December       - Purchase price         The estimated fair value would
             The valuation model takes into          2018             (December 2018:        increase/(decrease) if:
             account the recent acquisition price,   EUR25,000,000    EUR25,000,000,         - The number of the interested
             which equals the amount a third                          December 2017:         parties was higher/(lower)
             party would be willing to pay.          December         EURnil, June 2018:     - The availability of
                                                     2017             EUR80,123,500)           comparable properties was
                                                     EURnil                                    lower/(higher), thus altering
                                                                                               the acquisition price
                                                     June 2018
                                                     EUR80,123,500

             Firm offers:                            December       - Firm offer              The estimated fair value would
             The valuation model takes into          2018             (December 2018:         increase/(decrease) if:
             account the amount a third party is     EUR2,482,856     EUR2,482,856,           - The number of the interested
             willing to pay.                                          December 2017:            parties was higher/(lower)
                                                     December         EURnil, June 2018:        and or,
                                                     2017             EURnil)                 - The availability of
                                                     EURnil                                    comparable properties lower/
                                                                                               (higher), thus altering the
                                                     June 2018                                 offer price
                                                     EURnil
Land bank 
             Residual value method:                  December       - Residual value         The estimated fair value would
             The valuation model considers the       2018             (December 2018:        increase/(decrease) if:
             gross development value of the          EUR21,340,212    EUR23,531,795,         - The budgeted costs to
             property based on an independent                         December 2017:         complete were lower/
             view of market values for the           December         EURnil, June 2018:       (higher)
             completed development less any          2017             EUR38,094,775)         - The residential unit prices
             costs to complete.                      EURnil         - Costs to complete      were higher/(lower)
                                                                      (December
                                                     June 2018        2018: EUR2,191,583,
                                                     EUR32,974,206    December 2017:
                                                                      EURnil, June 2018:
                                                                      EUR5,120,569)

13. INVESTMENT PROPERTY HELD FOR SALE
                                                                                       Reviewed        Reviewed        Audited
                                                                                          As at           As at          As at
                                                                                    31 December     31 December        30 June
Euro                                                                                       2018            2017           2018

United Kingdom
- Hotel                                                                                       -      43,224,089     42,528,044
- Retail                                                                                      -       2,807,872              -
- Land bank                                                                          16,841,620       7,615,725     11,060,400
                                                                                     16,841,620      53,647,686     53,588,444


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                 2018            2017           2018

Opening balance                                                                      53,588,444       6,336,915      6,336,915
Transfer from investment property                                       12           11,627,589      51,109,670     51,328,757
Disposals                                                                          (49,263,427)     (5,140,745)    (7,353,427)
Capitalised expenditure                                                               1,858,268          95,786      1,149,597
Retention release                                                                             -       (275,000)      (275,000)
Fair value adjustment                                                    8            (467,919)       1,568,735      2,766,206
Foreign currency translation reserve                                                  (501,335)        (47,675)      (364,604)
Closing balance                                                                      16,841,620      53,647,686     53,588,444

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

VALUATION TECHNIQUE AND SIGNIFICANT UNOBSERVABLE INPUTS

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

Land bank         Firm offers less costs to complete:    December 2018    -  Firm offer               The estimated fair value would
                  Fair value is based on the amount a    EUR16,841,620       (December 2018:          increase/(decrease) if:
                  third party is willing to pay less any                     EUR19,730,935,           -  The number of the
                  costs to complete.                     December 2017       December 2017:              interested parties was
                                                         EUR7,615,725        EUR9,016,800, June          higher/(lower)
                                                                             2018: EUR13,688,705)     -  The availability of
                                                         June 2018        -  Cost to complete            comparable properties was
                                                         EUR11,060,400       (December                   lower/(higher), thus altering
                                                                             2018: EUR2,889,315,         the offer price
                                                                             December 2017:           -  The budgeted costs to
                                                                             EUR1,401,075, June          complete were lower/
                                                                             2018: EUR2,628,305)         (higher)

Hotel and         Firm offers:                           December 2018    -  Firm offer               The estimated fair value would
Retail            The valuation model takes into         EURnil              (December 2018:          increase/(decrease) if:
                  account the amount a third party is                        EURnil, December         - The number of the
                  willing to pay.                        December 2017       2017: EUR46,031,961,       interested parties was
                                                         EUR46,031,961       June 2018:                 higher/(lower) and or,
                                                                             EUR42,528,044)           - The availability of
                                                         June 2018                                      comparable properties
                                                         EUR42,528,044                                  lower/(higher), thus altering
                                                                                                        the offer price

14. INVENTORY PROPERTY
                                                                                                           
                                                                                           Reviewed          Reviewed          Audited
                                                                                              As at             As at            As at
                                                                                        31 December       31 December          30 June
Euro                                                                      Note                 2018              2017             2018

Opening balance                                                                           1,293,501                 -                -
Development expenditure                                                                  25,172,672         5,339,258       21,918,133
Disposals (recognised in costs of sales of inventory property)               5         (23,697,456)       (5,339,258)     (21,704,016)
Transfer from investment property                                           12                    -                 -        1,078,030
Capitalised interest on general borrowings                                                    1,206                 -            1,354
Foreign currency translation reserve                                                       (12,142)                 -                -
Closing balance                                                                           2,757,781                 -        1,293,501

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

As at 31 December 2018 (reviewed)                                                  Share price        Number of      Fair value
                                                                                        (Euro)           shares          (Euro)

Klepierre SA                                                                             26.96        1,626,364      43,846,773
Unibail - Rodamco Westfield SE                                                          135.40          264,618      35,829,277
Hufvudstaden AB                                                                          13.35        1,083,000      14,457,884
Eurocommercial Properties NV                                                             26.98          497,333      13,418,044
Covivio SA                                                                               84.20          150,300      12,655,260
Land Securities Group PLC                                                                 8.99        1,115,000      10,026,562
British Land Company PLC                                                                  5.96        1,625,000       9,686,092
Mercialys SA                                                                             11.97          772,934       9,252,020
                                                                                                                    149,171,912

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 Westfield 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
Covivio 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

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

Klepierre SA                                                                             32.25        1,626,364      52,450,239
Unibail - Rodamco Westfield SE                                                          188.55          264,618      49,893,724
Eurocommercial Properties NV                                                             36.36          497,333      18,083,028
Covivio SA                                                                               89.10          150,300      13,391,730
Hufvudstaden AB                                                                          12.28        1,083,000      13,295,975
British Land Company PLC                                                                  7.60        1,625,000      12,350,045
Land Securities Group PLC                                                                10.82        1,115,000      12,063,076
Mercialys SA                                                                             14.91          772,934      11,524,446
                                                                                                                    183,052,263

RECONCILIATION OF FINANCIAL INVESTMENTS:
                                                                                     Reviewed         Reviewed         Audited
                                                                                        As at            As at           As at
                                                                                  31 December      31 December         30 June
Euro                                                                   Note              2018             2017            2018

Opening balance                                                                   183,052,263                -               -
Purchases                                                                                   -      198,165,906     199,557,215
Fair value adjustment                                                     8      (33,880,351)        1,954,910    (16,504,952)
Closing balance                                                                   149,171,912      200,120,816     183,052,263

During the period dividend income of EUR1,879,863 was recognised as other income (31 December 2017: EUR83,217; 30 June 2018:
EUR8,423,423), refer to note 6.

FAIR VALUE HIERARCHY
The fair value measurement of all the group's financial investments have been categorised as level 1 in the fair value hierarchy
as they are traded in active markets and are measured on quoted market prices at the end of the reporting period.

INTEREST BEARING BORROWINGS
Bank borrowings of EUR73,882,794 (December 2017: EURnil, June 2018: EURnil) are secured against the listed real estate equity
securities, refer to note 20.

16. INVESTMENT IN EQUITY ACCOUNTED INVESTEE
                                                                                 Reviewed         Reviewed         Audited
                                                                                    As at            As at           As at
                                                                              31 December      31 December         30 June
Euro                                                                                 2018             2017            2018

PKM Developments                                                               30,172,990       21,751,615      23,774,222


RECONCILIATION OF INVESTMENT IN EQUITY ACCOUNTED INVESTEE

                                                                                 Reviewed         Reviewed         Audited     
                                                                                    As at            As at           As at
                                                                              31 December      31 December         30 June
Euro                                                                                 2018             2017            2018
 
Opening balance                                                                23,774,222       20,205,297      20,205,297
Capitalised acquisition costs                                                           -            3,261               -
                                                                               23,774,222       20,208,558      20,205,297
Share of profit                                                                 6,398,768        1,543,057       3,568,925
Closing balance                                                                30,172,990       21,751,615      23,774,222

The group has an investment in PKM Developments, a development property group which develops investment property
predominately in Romania and other central and eastern European countries. PKM Developments is an associate of the group,
MAS owns 40% of the ordinary shares and therefore has significant influence over the entity. The remaining 60% of the
ordinary shares of PKM Developments are owned by Prime Kapital, who acts as the developer.
In addition to the investment in the ordinary shares, and the investment in PKM Developments 7.5% preference shares, refer
to note 21, the group is committed to fund up to EUR300,000,000 by 23 March 2021 through the investment in additional 7.5%
preference shares to be issued by PKM Developments, refer to notes 30 and 31.
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                                                                                     2018             2017            2018

Statement of financial position - PKM Developments
Non-current assets                                                                207,358,645       94,396,995     138,511,061
Cash and cash equivalents                                                          41,782,165       43,123,732      26,990,875
Other current assets                                                               21,321,539       28,096,289      14,873,441
Total assets                                                                      270,462,349      165,617,016     180,375,377

Interest-bearing borrowings                                                       162,950,993      105,630,824     105,745,768
Deferred tax liabilities                                                           10,268,644                -       4,084,647
Trade and other payables                                                           16,548,675        5,762,253       8,611,602
Other liabilities                                                                   2,173,746                -         337,601
Total liabilities                                                                 191,942,058      111,393,077     118,779,618
Net assets                                                                         78,520,291       54,223,939      61,595,759

Percentage of the groups ownership interest                                               40%              40%             40%
Un-adjusted group share of net assets                                              31,408,118       21,689,576      24,638,304
 
Elimination of preference share interest capitalised on qualifying assets         (1,293,936)                -       (922,890)
carried at cost
Net assets attributable to the group                                               30,114,182       21,689,576      23,715,414

Capitalised costs                                                                      58,808           62,039          58,808
Carrying amount                                                                    30,172,990       21,751,615      23,774,222

                                                                                    Reviewed         Reviewed
                                                                                   Six-month        Six-month         Audited
                                                                                period ended     period ended      Year ended
                                                                                 31 December      31 December         30 June
Euro                                                                                    2018             2017            2018

Statement of profit or loss and other comprehensive income - PKM
Developments
Revenue                                                                            2,837,816          441,871       2,258,220
Fair value adjustments of investment property                                     21,180,934        4,507,377      16,372,691
Other income                                                                         145,140           99,282           2,128
Corporate expenses                                                                 (208,620)        (286,361)       (719,216)
Investment expenses                                                                (323,779)        (935,331)     (2,601,061)
Finance income                                                                        29,825           89,806         144,260
Finance expense                                                                    (833,039)            (419)        (36,808)
Foreign currency translation differences                                            (19,180)         (58,583)        (31,399)
Deferred tax                                                                     (5,832,296)              -       (4,084,647)
Current tax expense                                                                 (52,269)              -          (74,627)
Total profit                                                                      16,924,532        3,857,642      11,229,541

Percentage of the groups ownership interest                                              40%              40%             40%
Total profit and other comprehensive income attributable to the group              6,769,812        1,543,057       4,491,816
Elimination of preference share interest capitalised on qualifying assets          (371,044)                -       (922,891)
carried at cost
Group's share of profit                                                            6,398,768        1,543,057       3,568,925

PKM Developments has no other comprehensive income.
PKM Developments is subject to litigation brought by an unpaid lender which was assumed as part of a business
combination. The payable was recognised at fair value at acquisition and has a carrying amount of EUR700,000 at 31 December
2018. The lender is currently under liquidation and is seeking full repayment of EUR3,500,000 principal as well as the related
accrued interest (amounting to EUR1,595,737 at 31 December 2018). As at the date of this report legal proceedings are underway,
however, it is considered unlikely that the cash outflow will exceed the EUR700,000 already provided because this amount has
been formally agreed with all the lender's creditors as part of its liquidation process.

17. CASH AND CASH EQUIVALENTS
                                                                                     Reviewed         Reviewed        Audited
                                                                                        As at            As at          As at
                                                                                  31 December      31 December        30 June
Euro                                                                                     2018             2017           2018

Bank balances                                                                      52,858,418      187,341,606    147,825,624

Reconciliation of cash generated from operating activities:

                                                                                      Reviewed        Reviewed        Audited
                                                                                         As at           As at          As at
                                                                                   31 December     31 December        30 June
Euro                                                                   Note               2018            2017           2018
 
Profit for the period/year                                                          16,055,517      12,085,985     19,333,422

Adjustments for:
Depreciation                                                                            53,654          18,098        100,026
Loss on disposal of property, plant and equipment                                       90,671               -              -
Share-based payment expense                                                            239,826         403,302        805,766
Fair value adjustments                                                    8         24,735,019         613,755     15,800,127
Foregin exchange differences                                                          (33,700)         586,186      1,020,787
Finance income                                                            9        (5,148,562)     (3,950,621)    (7,975,558)
Finance costs                                                             9          3,854,447       2,477,372      5,560,344
Share of profit from equity accounted investees                          16        (6,398,768)     (1,543,057)    (3,568,925)
(Gain on bargain purchase)/goodwill impairment                        11,25       (12,263,193)       1,274,346      1,274,346
Tax expense                                                              10          4,752,655       1,030,886      6,867,387
Profit on sales of inventory property                                     5        (4,288,257)     (1,059,379)    (4,316,924)
Other income                                                                                -         (89,831)              -
Cash generated from operating activities                                            21,649,309      11,847,042     34,900,798

18. SHARE-BASED PAYMENT RESERVE
The share-based payment reserve relates to the option expense of the group's geared share purchase plan.

RECONCILIATION OF GEARED SHARE PURCHASE PLAN:
                                                                                     Reviewed         Reviewed       Audited
                                                                                        As at            As at         As at
                                                                                  31 December      31 December       30 June
Euro                                                                                     2018             2017          2018

Opening balance                                                                     1,031,739          225,973       225,973
Recognised during the period/year                                                     305,364          517,701       902,386
Non-forfeitable distribution                                                         (65,538)         (41,153)      (96,620)
Closing balance                                                                     1,271,565          702,521     1,031,739

The remaining term of the loans at 31 December 2018 was 8.19 years (December 2017: 9.19 years; June 2018: 8.69 years).
 Refer to note 28 for further disclosures of the share-based payment expense included in key management compensation
and directors' remuneration.

19. NON-CONTROLLING INTEREST (NCI)
                                                                                    Reviewed         Reviewed        Audited
                                                                                       As at            As at          As at
                                                                                 31 December      31 December        30 June
Euro                                                                                    2018             2017           2018

Opening balance                                                                    2,527,202          988,063        988,063
Share of profit                                                                    4,968,609          382,507      2,477,116
Distribution to NCI                                                              (1,202,462)        (340,256)      (937,977)
Closing balance                                                                    6,293,349        1,030,314      2,527,202

The non-controlling interest relates to the participation by Prime Kapital in the co-investment venture entered into with the
group.  This co-investment arrangement is focused on investing in income-generating properties in CEE. 
 Under the terms of the co-investment agreement, Prime Kapital's effective economic interest is equivalent to a 20% direct
participation in the co-investment venture, less the interest cost on the participation funding that is provided by MAS. The
effective interest on this participation funding is equivalent to the weighted average cost of external funding achieved by the
co-investment venture. The effective economic interest is earned by and paid to entities that are not owned by the group, but
the group has control, as defined by IFRS 3, of these entities and consolidates them accordingly.
 During the period Prime Kapital received a dividend of EUR1,202,462 (December 2017: EUR340,256; June 2018: EUR937,977) in
relation to its participation in the co-investment venture.

20. INTEREST BEARING BORROWINGS
                                                                                   Reviewed         Reviewed          Audited
                                                                                      As at            As at            As at
                                                                                31 December      31 December          30 June
Euro                                                                                   2018             2017             2018

Non-current
UK investment property                                                            42,893,300       7,604,642       50,650,037
German investment property                                                       132,986,228     102,402,299      108,187,711
Swiss investment property                                                          7,228,780       7,296,148        7,211,257
CEE investment property                                                           59,158,833      49,354,406       48,358,450
                                                                                 242,267,141     166,657,495      214,407,455
Current
UK investment property                                                             8,009,419      23,228,329       23,272,484
German investment property                                                         3,224,788       2,381,698        2,707,840
Swiss investment property                                                            346,086         333,294          337,116
CEE investment property                                                            2,792,123       1,985,767        1,988,212
BVI group facility                                                                73,882,794              -                -
                                                                                  88,255,210      27,929,088       28,305,652
                                                                                 330,522,351     194,586,583      242,713,107

The BVI group facility of EUR73,882,794 (December 2017: EURnil, June 2018: EURnil) is secured against the groups listed real estate
equity securities with a value of EUR149,171,912, refer to note 15. The remaining bank borrowings of EUR256,639,557 (December
2017: EUR194,586,583, June 2018: EUR242,713,107) are secured against investment property with a value of EUR514,600,802
(December 2017: EUR361,152,972, June 2018: EUR454,498,545), refer to note 12.
The carrying value of interest-bearing borrowings approximates their fair value.

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              2018                2017            2018

Opening balance                                                                   242,713,107         147,213,397     147,213,397
Changes from financing cash flows                                                  84,376,025          45,730,076      90,850,997

 Proceeds from interest-bearing borrowings                                        101,207,794          53,000,000     104,067,925
 Acquisition of subsidiaries                                             25        12,842,369                   -               -
 Transaction costs related to interest-bearing borrowings                           (897,711)           (699,386)     (1,431,560)
 Repayment of interest-bearing borrowings                                        (25,327,553)         (4,409,446)     (7,350,266)
 Interest paid                                                                    (3,448,874)         (2,161,092)     (4,435,102)
 
Finance costs                                                                      3,753,366           2,465,815       5,341,556
 Finance costs - expenses                                                 9         3,535,969           2,156,911       4,771,171
 Finance costs - general borrowings capitalised                                       217,397             308,904         570,385
Foreign currency translation difference                                             (320,147)           (822,705)       (692,843)
 Closing balance                                                                  330,522,351         194,586,583     242,713,107

Interest on general borrowings of EUR217,397 (December 2017: EUR308,904; June 2018: EUR570,385) was capitalised during the
period at a rate of 2.57% (December 2017: 2.64%; June 2018: 2.69%), refer to notes 12 and 14.

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         Audited
                                                                                        As at               As at           As at
                                                                                 3 1 December         31 December         30 June
Euro                                                                                     2018                2017            2018

Fixed/hedged debt                                                                 297,212,924         145,605,748     199,289,452
Variable debt                                                                      33,309,427          48,980,835      43,423,655
                                                                                  330,522,351         194,586,583     242,713,107

The borrowing terms and covenants are consistent with those disclosed in the 2018 integrated annual report except for the
loans which were drawn down during the period, the terms of which are:
                                                                                       Annual
                                                                            capital repayment
BORROWING TERMS                              Term of debt    Currency                  (Euro)       Margin             Base rate
German investment property
- Fixed debt                                      5 years        Euro                 316,950        1.67%            Euribor 3M

CEE investment property
- Variable debt                                  13 years        Euro                 783,000        3.50%            Euribor 3M

BVI group facility                              On demand        Euro                     n/a           1%          Central Bank
                                                                                                                       base rate



COVENANTS                                                            Debt service cover ratio                     Loan to value

German investment property
- German fixed debt                                                                      135%                               78%

CEE investment property
- CEE variable debt                                                                      115%                               65%

21. FINANCIAL ASSETS
                                                                                     Reviewed         Reviewed          Audited
                                                                                        As at            As at            As at
                                                                                  31 December      31 December          30 June
Euro                                                                                     2018             2017             2018

Non-current assets
Preference shares - PKM Developments                                              162,250,770      104,929,452      105,045,768
Capital contribution                                                                        -       24,173,824                -
Interest rate swap                                                                    307,505                -          349,224
                                                                                  162,558,275      129,103,276      105,394,992
Current assets
Capital contribution                                                               24,577,732                -       24,507,316
                                                                                   24,577,732                -       24,507,316

Total assets                                                                       187,136,007      129,103,276     129,902,308

PKM DEVELOPMENTS - PREFERENCE SHARES
The group invested EUR157,000,000 to acquire 157,000,000 preference shares with a coupon rate of 7.5% in PKM Developments.
The preference share asset is held at amortised cost. The expected credit loss allowance is EURnil and the carrying amount
approximates the fair value.

CAPITAL CONTRIBUTION
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. The expected credit loss allowance is EURnil and the carrying amount approximates
the fair value.

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

FINANCIAL ASSETS AT AMORTISED COST
Reconciliation of the group's financial assets held at amortised cost:

                                                                                         PKM
                                                                                Developments
                                                                                  preference          Capital
Euro                                                              Note                shares     contribution            Total

Balance at 30 June 2017 (audited)                                                101,134,245                -      101,134,245
Finance income                                                       9             3,795,207                -        3,795,207
Capital contribution                                                                       -       24,022,280       24,022,280
Finance income - unwind of discount                                  9                     -          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
Finance income                                                                     3,719,177                -        3,719,177
Distribution received                                                            (3,602,861)                -      (3,602,861)
Capital contribution                                                                       -           29,839           29,839
Finance income - unwind of discount                                                        -          304,728          304,728
Foreign currency translation reserve                                                       -          (1,075)          (1,075)
Balance at 30 June 2018 (audited)                                                105,045,768       24,507,316      129,553,084
Drawdown on preference shares                                                     57,000,000                -       57,000,000
Finance income                                                       9             4,835,323                -        4,835,323
Distribution received                                                            (4,630,321)                -      (4,630,321)
Finance income - unwind of discount                                  9                     -          302,039          302,039
Foreign currency translation reserve                                                       -        (231,623)        (231,623)
Balance at 31 December 2018 (reviewed)                                           162,250,770       24,577,732      186,828,502

FINANCIAL ASSETS AT FVTPL
Reconciliation of the group's financial assets held at fair value:

                                                                                                                 Interest rate
Euro                                                                                                 Note                 swap

Balance at 30 June 2017 (audited)                                                                                            -
Balance at 31 December 2017 (reviewed)                                                                                       -
Fair value adjustment                                                                                  8               350,585
Foreign currency translation reserve                                                                                   (1,361)
Balance at 30 June 2018 (audited)                                                                                      349,224
Fair value adjustment                                                                                  8              (38,621)
Foreign currency translation reserve                                                                                   (3,098)
Balance at 31 December 2018 (reviewed)                                                                                 307,505

The carrying and fair value of the interest rate swap is the same and is level 2 in the fair value hierarchy.
 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 2018 and 30 June 2018

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

Interest rate swaps              The fair value is based on          -   3-month GBP Libor        The estimated fair value
                                 discounting future cash             -   Swap rate                would increase/(decrease) if:
                                 flows using the interest rate       -   Notional loan value      - 3-month GBP libor was
                                 swap curves plus the historic       -   Fixed rate of interest     higher/ (lower)
                                 charged credit margin at the                                     - 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)

22. FINANCIAL LIABILITIES
                                                                                       Reviewed        Reviewed           Audited
                                                                                          As at           As at             As at
                                                                                    31 December     31 December           30 June
Euro                                                                                       2018            2017              2018

Non-current liabilities
Capital contribution                                                                          -      24,173,824                 -
Interest rate swaps                                                                   1,337,051       1,130,924         1,222,944
Deferred consideration                                                                  468,618               -           473,061
                                                                                      1,805,669      25,304,748         1,696,005
Current liabilities
Capital contribution                                                                 24,577,732               -        24,507,316
Priority participating profit dividend                                                2,895,216       5,823,594         6,912,756
Development management fee                                                            1,930,891       4,167,950         4,701,505
                                                                                     29,403,839       9,991,544        36,121,577
FINANCIAL LIABILITIES AT AMORTISED COST

CAPITAL CONTRIBUTION
A financial liability and corresponding financial asset have been recognised in respect of the capital contribution due from
Legal & General (buyer), and due to the UK Government (tenant), under the terms of the Pre-let Agreement. Both the
financial asset and financial liability are held at amortised cost.

DEFERRED CONSIDERATION
Where settlement of any part of cash consideration is deferred, deferred consideration is classified as a financial liability and is
held at amortised cost. The amounts payable in the future are discounted to their present value if the impact of discounting is
material.
On the acquisition of Uberior House, the group retained a portion of the purchase price per the sale and purchase
agreement, which will be released to the vendor but is conditional upon future rent reviews.

Reconciliation of the group's financial liabilities held at amortised cost:
                                                                                                      Deferred         Capital
Euro                                                                              Note           consideration    contribution

Balance at 30 June 2017 (audited)                                                                      500,000               -
Purchase price released                                                                              (500,000)               -
Capital contribution                                                                                         -      24,022,280
Finance costs - unwind of discount                                                   9                       -         152,223
Foreign currency translation reserve                                                                         -           (679)
Balance at 31 December 2017 (reviewed)                                                                       -      24,173,824
Purchase price retained                                                                                473,061               -
Capital contribution                                                                                         -          29,839
Finance costs - unwind of discount                                                                           -         304,728
Foreign currency translation reserve                                                                         -         (1,075)
Balance at 30 June 2018 (audited)                                                                      473,061      24,507,316
Finance costs - unwind of discount                                                   9                       -         302,039
Foreign currency translation reserve                                                                   (4,443)       (231,623)
Balance at 31 December 2018 (reviewed)                                                                 468,618      24,577,732

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

                                                                                                                     Priority
                                                                                                  Development   participating
                                                                                Interest rate      management          profit
Euro                                                                    Note            swaps             fee        dividend

Balance at 30 June 2017 (audited)                                                   2,251,649       4,052,171       6,078,256
Fair value adjustment                                                      8           46,353         152,455       (201,586)
Foreign currency translation difference in OCI                                       (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 adjustment                                                                  76,873         530,501       1,085,983
Foreign currency translation difference in OCI                                         15,147           3,054           3,179
Balance at 30 June 2018 (audited)                                                   1,222,944       4,701,505       6,912,756
Fair value adjustment                                                      8           90,194         299,089         584,586
Foreign currency translation difference in OCI                                         23,913        (45,573)        (67,689)
Transfer to other payables                                                24                -     (3,024,130)     (4,534,437)
Balance at 31 December 2018 (reviewed)                                              1,337,051       1,930,891       2,895,216

The amount transferred to other payables is a portion of the development management fee payable to New Waverley Advisers
Limited and the priority participating dividend payable to New Waverley Holdings Limited that is certain as at 31 December
2018, refer to note 31.

FAIR VALUE HIERARCHY
The following table shows the financial liabilities held at fair value in the fair value hierarchy:

As at 31 December 2018 (reviewed)                                                                     Fair value
                                                                         Carrying
Euro                                                                      amount            Level 1        Level 2        Level 3

Non-current liabilities
Interest rate swaps                                                      1,337,051                -      1,337,051              -
                                                                         1,337,051                -      1,337,051              -
Current liabilities
Development management fee                                               1,930,891                -              -      1,930,891
Priority participating profit dividend                                   2,895,216                -              -      2,895,216
                                                                         4,826,107                -              -      4,826,107

As at 31 December 2017 (reviewed)                                                                       Fair value
                                                                          Carrying
Euro                                                                        amount          Level 1        Level 2        Level 3

Non-current liabilities
Interest rate swaps                                                      1,130,924                -      1,130,924              -
                                                                         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 30 June 2018 (audited)                                                                            Fair value
                                                                          Carrying
Euro                                                                        amount          Level 1        Level 2        Level 3

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

INTEREST RATE SWAPS
The group has hedged some of the interest rate exposure on the interest-bearing borrowings using interest rate swaps, refer
to note 20. 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.

DEVELOPMENT MANAGEMENT FEE AND PRIORITY PARTICIPATING PROFIT DIVIDEND
The group has a development management agreement with New Waverley Advisers Limited under which a fee is payable to
New Waverley Advisers Limited in relation to the development of the New Waverley site in Edinburgh.
 The priority participating profit dividend is payable to New Waverley Holdings Limited based on the value of the site
following development.

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 2018, 31 December 2017 and 30 June 2018

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

Interest rate swaps                      The fair value is based on       -   3-month EUR/CHF Libor    The estimated fair value
                                         discounting future cash          -   Swap rate                would increase/(decrease) if:
                                         flows using the interest rate    -   Notional loan value      - 3-month EUR libor/CHF
                                         swap curves plus the historic    -   Fixed rate of interest     libor was higher/ (lower)
                                         charged credit margin at the                                  - 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 liability in respect of New Waverley Advisers Limited and New Waverley Holdings Limited
is calculated semi-annually. The investment property valuation process, refer to note 12, 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 2018, 31 December 2017 and 30 June 2018

                                                                                                        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 profit                  Fair value is based on the          property                   would increase/(decrease) if:
dividend                                 value of the properties in the                                 - Value of investment
                                         New Waverley development.                                        property was higher/
                                                                                                          (lower)

FAIR VALUE SENSITIVITY ANALYSIS
As at 31 December 2018 (reviewed)
                                                                                      Gross development value
                                                                                                    Sensitivity
                                                                                                        %
Financial liability                      Technique                 Valuation   Input (Euro)        Change       Valuation
                                                                                                    +5.00       2,027,436
Development management fee               Gross development value   1,930,891     19,304,432
                                                                                                    -5.00       1,834,346
                                                                                                    +5.00       3,039,977
Priority participating profit dividend   Gross development value   2,895,216     19,304,432
                                                                                                    -5.00       2,750,455

As at 31 December 2017 (reviewed)
                                                                                      Gross development value
                                                                                                    Sensitivity
                                                                                                        %
Financial liability                      Technique                 Valuation   Input (Euro)        Change       Valuation
                                                                                                    +5.00       4,376,348
Development management fee               Gross development value   4,167,950     39,976,121
                                                                                                    -5.00       3,959,553
                                                                                                    +5.00       6,114,774
Priority participating profit dividend   Gross development value   5,823,594     39,976,121
                                                                                                    -5.00       5,532,414

As at 30 June 2018 (audited)
                                                                                      Gross development value
                                                                                                    Sensitivity
                                                                                                        %
Financial liability                      Technique                 Valuation   Input (Euro)        Change       Valuation
                                                                                                    +5.00       4,936,580
Development management fee               Gross development value   4,701,505     46,457,049
                                                                                                    -5.00       4,466,430
                                                                                                    +5.00       7,258,394
Priority participating profit dividend   Gross development value   6,912,756     46,457,049
                                                                                                    -5.00       6,567,118

23.TRADE AND OTHER RECEIVABLES
                                                                                                                                        Reviewed               Audited
                                                                                                                 Reviewed                  As at                 As at
                                                                                                                    As at            31 December               30 June
                                                                                                              31 December                   2017                  2018
Euro                                                                                                                 2018        Reclassified(1)       Reclassified(1)

Contract assets                                                                                                 9,697,749              1,059,379             5,134,337
Trade receivables from lessees                                                                                  6,135,033              4,239,022             3,588,558
Receivables                                                                                                     4,013,308                157,137             4,132,645
VAT receivable                                                                                                  1,208,513                634,516             1,141,499
Prepayments                                                                                                     1,142,253                694,187             1,009,668
Other                                                                                                             497,986                884,304               799,070
Dividends receivable                                                                                              140,851                     -                322,240
Property retentions held in escrow                                                                                 20,000                 20,000                20,316
                                                                                                               22,855,693              7,688,545            16,148,333
(1) In the prior year receivables from contracts with customers were not split out, this has been reclassified to Contract assets as a result of the group adopting IFRS 15,
refer to note 3 for further detail regard the adoption of IFRS 15.


Receivables of EUR4,013,308 (December 2017: EUR157,137, June 2018: EUR4,132,645) relate to development costs receivable under the
Forward Funding Agreement on the New Waverley development. This receivable is only conditional on the passage of time
and is therefore a receivable from a contract with the group's customers.
 Contract assets of EUR9,697,749 (December 2017: EUR1,059,379, June 2018: EUR5,134,337) relate to the group's right to
consideration for work completed. Contract assets are transferred to receivables when the rights become unconditional.
EUR8,902,922 (December 2017: EUR1,059,379, June 2018: EUR4,338,266) relates to profit receivable under the Forward Funding
Agreement, which will be paid on completion of the development. The profit is conditional on the group's ability to complete
the development on time and within budget. As at 31 December 2018, the development was progressing well and is on
schedule to be completed on time and within budget. EUR794,827 (December 2017: EURnil, June 2018: EUR796,071) relates to a
receivable in relation to the sale of investment property. The contract assets are all classified as current.

Significant changes to contract assets during the period are as follows:

                                                                                                                  Reviewed              Reviewed                Audited
                                                                                                                     As at                 As at                  As at
                                                                                                               31 December           31 December                30 June
Euro                                                                                                                  2018                  2017                   2018

Opening balance                                                                                                  5,134,337                     -                      -
Increase in measure of progress                                                                                  4,563,412             1,059,379              5,134,337
Closing balance                                                                                                  9,697,479             1,059,379              5,134,337
The carrying amount of the group's trade and other receivables approximates the fair value.

24. TRADE AND OTHER PAYABLES

                                                                                                                               Reviewed        Reviewed         Audited
                                                                                                                               As at 31        As at 31           As at
                                                                                                                               December        December         30 June
Euro                                                                                                              Note             2018            2017            2018

Trade payables                                                                                                                6,222,207       6,406,362       4,524,420
Priority participating profit dividend                                                                            22,31       4,534,437               -               -
Construction payables                                                                                                         3,804,885         150,386       4,551,993
Development management fee                                                                                        22,31       3,024,130               -               -
Current tax payable                                                                                                           1,223,791       3,149,540       1,599,942
Deferred income                                                                                                               2,192,101         940,543       1,904,870
VAT payable                                                                                                                   1,121,245         785,656       1,765,052
Other                                                                                                                           929,458         847,300         386,987
                                                                                                                             23,052,254      12,279,787      14,733,264

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

25. ACQUISITION OF SUBSIDIARIES
On 5 July 2018, the group acquired 100% of the shares and the voting interests of Militari shopping centre ("Militari") in
Romania and on 5 December 2018, the group acquired 100% of the shares and the voting interests of the Atrium Mall in Arad,
Romania ("Arad").
 The group acquired the shares of both entities to gain control over the operations of two investment properties, namely
Militari and Arad both located in Romania. The entities each held and operated a single investment property, Militari shopping
centre and the Atrium Mall respectively. The acquisition is part of the group's strategy and continued investment into central
and eastern Europe to enhance the group's distributions over the immediate, medium and long term. The acquisitions have
both been treated as business combinations as the group substantially acquired all business operations.
 From the date of acquisition to 31 December 2018 Militari and Arad contributed revenue of EUR5,569,037 and EUR672,134
respectively and profit of EUR6,833,026 and EUR12,240,735 respectively. If the acquisitions had occurred on 1 July 2018,
management estimates that the revenue up to 31 December 2018 for the acquisitions combined would have been EUR8,773,152
and profit for the period for the acquisitions would have been EUR20,317,618. Included in this profit is fair value movements in
investment property and the gain on bargain purchase below.

CONSIDERATION TRANSFERRED
The following table summarises the acquisition date fair value of the consideration transferred:

Euro                                                                                                                       Total

Militari                                                                                                              94,472,318
Arad                                                                                                                  28,145,360
                                                                                                                     122,617,678
ACQUISITION RELATED COSTS
The group incurred acquisition-related costs of EUR839,282 on legal and due diligence fees. These costs have been included in
profit or loss within investment expenses.

IDENTIFIED ASSETS ACQUIRED AND LIABILITIES ASSUMED
The following table summarises the fair value of assets and liabilities that were acquired at the date of acquisition:

Euro                                                                   Note           Militari              Arad           Total

Investment property                                                      12         93,854,946        48,930,000     142,784,946
Trade and other receivables                                                          1,543,313         1,325,825       2,869,138
Trade and other payables                                                             (846,799)       (1,047,884)     (1,894,683)
Interest-bearing borrowings                                              20                  -      (12,842,369)    (12,842,369)
Deferred tax (liability)/asset                                           10          (203,919)           766,579         562,660
Net assets excluding cash                                                           94,347,541        37,132,151     131,479,692
Cash and cash equivalents                                                              124,777         3,276,402       3,401,179
Net assets                                                                          94,472,318        40,408,553     134,880,871
Gain on bargain purchase                                                                     -      (12,263,193)    (12,263,193)
Cash consideration transferred                                                      94,472,318        28,145,360     122,617,678
Cash and cash equivalents acquired                                                   (124,777)       (3,276,402)     (3,401,179)
Cash consideration transferred, net of cash acquired                                94,347,541        24,868,958     119,216,499

The gross contracted value of trade and other receivables of Militari and Arad was EUR1,543,313 and EUR1,325,825. Of this
management expects to receive EUR1,543,313 and EUR1,325,825 respectively.
No goodwill arose on the acquisition of Militari because the consideration paid was equal to the fair value of assets
acquired and liabilities assumed. A gain on bargain purchase of EUR12,263,193 arose on the acquisition of Arad because the
consideration paid was less than the fair value of net assets acquired and liabilities assumed. The transaction price was based
on the offer made at the start of the negotiations, 12 months prior to closing the deal. Within this period the footfall, tenants'
turnover and the net operating income increased significantly, which implicitly lead to an increase in the valuation of the
property.

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

Reportable segment            Description

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

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

Land bank and other           Residential developments and land plots held for schemes that have not yet commenced and
strategic assets              listed real estate equity securities.

Corporate                     Consists of the cash holdings outside of the other reporting segments as well as goodwill.



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

31 December 2018 (reviewed)
                                                                Reportable segments
                                                                                 Land bank
                                                 Income-                         and other
                                              generating      Development        strategic
Euro                                            property         property           assets        Corporate              Total

Statement of comprehensive income
External revenue                              30,428,609                -          220,435                -         30,649,044
Segment profit/(loss) before tax              37,662,102       14,074,490     (37,835,945)        6,907,525         20,808,172
Finance income                                    10,805        5,137,362              152              243          5,148,562
- Interest earned on preference shares                 -        4,835,323                -                -          4,835,323
Finance costs                                (3,409,941)        (302,039)                -        (142,467)        (3,854,447)
Current tax                                    (456,150)        (813,594)        (361,156)        (363,564)        (1,994,464)
Deferred tax                                 (2,758,191)                -                -                -        (2,758,191)
Share of profit from investment in equity-             -        6,398,768                -                -          6,398,768
accounted investee, net of tax
Other material non-cash items
- Fair value adjustments                      11,714,738                -     (37,491,504)        1,041,747       (24,735,019)
- Gain on bargain purchase                    12,263,193                -                -                -         12,263,193
- Exchange differences                           708,119                -        (768,354)           93,935             33,700
- Depreciation                                  (32,945)                -                -         (20,709)           (53,654)

Statement of financial position
Segment non-current assets                   735,228,425      192,388,649       21,465,470       20,047,606        969,130,150
- Investment in equity accounted investee              -       30,172,990                -                -         30,172,990
Segment current assets                        50,921,107       39,863,324      170,532,580        7,746,145        269,063,156
Segment non-current liabilities            (252,586,633)                -                -          (1,888)       252,588,521)
Segment current liabilities                 (36,583,721)     (28,839,583)     (75,075,917)        (465,830)       140,965,051)

31 December 2017 (reviewed)
                                                                Reportable segments
                                                                                 Land bank  
                                                  Income-                        and other  
                                               generating      Development       strategic  
Euro                                             property         property          assets        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)       3,826,402      (2,880,517)         13,116,871
Finance income                                      3,174        3,795,205         152,242                -          3,950,621
- Interest earned on preference shares                  -        3,795,205               -                -          3,795,205
Finance costs                                 (2,178,353)                -       (152,223)        (146,796)        (2,477,372)
Current tax                                     (217,206)              139     (1,855,943)          (5,623)        (2,078,633)
Deferred tax                                  (1,358,739)                -       2,406,486                -          1,047,747
Share of profit from investment in equity-              -        1,543,057               -                -          1,543,057
accounted investee, net of tax   
Other material non-cash items   
- Fair value adjustments                        1,448,741      (5,676,807)       3,614,311                -          (613,755)
- Exchange differences                          (149,616)                -               -        (436,570)          (586,186)
- Goodwill impairment                                   -                -               -      (1,274,346)        (1,274,346)
- Depreciation                                          -                -               -         (18,098)           (18,098)
   
Statement of financial position   
Segment non-current assets                    451,061,018      127,138,251     263,051,478       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)

30 June 2018 (audited)
                                                                Reportable segments
                                                                                 Land bank
                                                  Income-                        and other
                                               generating      Development       strategic
Euro                                             property         property          assets        Corporate              Total

Statement of comprehensive income
External revenue                               43,010,408                -         396,153                -         43,406,561
Segment profit/(loss) before tax               37,329,217        9,938,530    (18,696,118)      (2,370,820)         26,200,809
Finance income                                      3,744        7,971,335             479                -          7,975,558
- Interest earned on preference shares                  -        7,514,384               -                -          7,514,384
Finance costs                                 (4,944,538)        (456,951)               -        (158,855)        (5,560,344)
Current tax                                     (788,830)      (2,394,030)     (2,369,785)          (3,357)        (5,556,002)
Deferred tax                                  (3,730,148)        2,418,763               -                -        (1,311,385)
Share of profit from investment in equity-              -        3,568,925               -                -          3,568,925
accounted investee, net of tax
Other material non-cash items
- Fair value adjustments                       12,357,437      (5,388,602)    (22,921,758)          152,796       (15,800,127)
- Exchange differences                              (837)                -               -      (1,019,950)        (1,020,787)
- Goodwill impairment                                   -                -               -      (1,274,346)        (1,274,346)
- Depreciation                                   (85,088)                -               -         (14,938)          (100,026)

Statement of financial position
Segment non-current assets                    548,602,766      128,784,871     216,150,430       21,581,047        915,119,114
- Investment in equity accounted investee               -       23,774,222               -                -         23,774,222
Segment current assets                         72,949,162       37,001,253      15,532,543      117,880,260        243,363,218
Segment non-current liabilities             (222,239,291)                -               -          (3,542)      (222,242,833)
Segment current liabilities                  (47,772,895)     (29,887,847)     (1,419,996)        (363,838)       (79,444,576)

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 group invests in investment property in Europe. The geographical information below analyses the group's rental income
and service charges and other recoveries and non-current assets by the relevant company's country of domicile and the
jurisdiction in which the underlying property assets are held: western Europe (UK, Germany and Switzerland) and central and
eastern Europe (Poland, Bulgaria and Romania) ("CEE").

Revenue
                                                                                 Reviewed       Reviewed
                                                                                Six-month      Six-month         Audited
                                                                             period ended   period ended      Year ended
                                                                              31 December    31 December         30 June
Euro                                                                                 2018           2017            2018

BVI                                                                                     -              -               -
Western Europe                                                                 14,841,670     11,957,992      24,865,399
CEE                                                                            15,807,374      9,163,543      18,541,162
                                                                               30,649,044     21,121,535      43,406,561

Non-current assets
                                                                                Reviewed        Reviewed        Audited
                                                                                   As at           As at          As at
                                                                             31 December     31 December        30 June
Euro                                                                                2018            2017           2018

BVI                                                                           20,047,609              -     204,633,310
Western Europe                                                               433,522,128     580,745,050    414,204,311
CEE                                                                          515,560,413     283,569,449    296,281,493
                                                                             969,130,150     864,314,499    915,119,114

Income from contracts with customers
                                                                                Reviewed        
                                                                               Six-month       Six-month       
                                                                                  period          period           Year
                                                                                   ended           ended          ended
                                                                             31 December     31 December        30 June
Euro                                                                                2018            2017           2018

Sales of inventory property                                                   27,985,713       6,398,637     26,020,940
Service charges and other recoveries                                           4,504,330       2,147,390      5,954,048
                                                                              32,490,043       8,546,027     31,974,988

DISAGGREGATION
The following table disaggregates the income from contracts with customers by jurisdiction and the timing of income
recognition. The table also includes a reconciliation to the group's reportable segments.

                                                                                  Reviewed
                                                                   Six-month period ended 31 December 2018
                                                                             Reportable segments
                                                                 Income-
                                                              generating     Development
Euro                                                            property        property       Corporate           Total

Jurisdiction
BVI                                                                    -               -               -               -
Western Europe                                                   712,511      27,985,713          23,761      28,721,985
CEE                                                            3,768,058               -               -       3,768,058
                                                               4,480,569      27,985,713          23,761      32,490,043
Timing of income recognition
Over a period of time                                          4,480,569      27,985,713          23,761      32,490,043
                                                               4,480,569      27,985,713          23,761      32,490,043

DIRECT AND INDIRECT INVESTMENT RESULTS
In order to provide information of relevance to investors and a meaningful basis of comparison for users of the financial
information, a statement of direct and indirect investment results for the six-month period ended 31 December 2018 has been
prepared and presented below. It allocates the IFRS result between direct and indirect investment result respectively.
 The directors consider that the distribution statement is useful in interpreting the performance of the group.

Six-month period ended 31 December 2018 (reviewed)

STATEMENT OF DIRECT AND INDIRECT RESULT
                                                                                                                Direct             Indirect
                                                                                                            investment           investment
Euro                                                                                                            result               result           Total IFRS

Rental income                                                                                               26,144,714                    -             26,144,714
Service charge income and other recoveries                                                                   4,504,330                    -              4,504,330
Revenue                                                                                                     30,649,044                    -             30,649,044
Service charge and other property operating expenses                                                       (6,891,085)                    -            (6,891,085)
Net rental income                                                                                           23,757,959                    -             23,757,959
Sale of inventory property                                                                                           -           27,985,713             27,985,713
Cost of sales of inventory property                                                                                  -         (23,697,456)           (23,697,456)
Profit on sale of inventory property                                                                                 -            4,288,257              4,288,257
Other income                                                                                                 1,957,207                    -              1,957,207
Corporate expenses                                                                                         (3,103,013)                    -            (3,103,013)
Investment expenses                                                                                                  -          (1,346,995)            (1,346,995)
Net operating income                                                                                        22,612,153            2,941,262             25,553,415
Fair value adjustments                                                                                               -         (24,735,019)           (24,735,019)
Foreign currency exchange differences                                                                                -               33,700                 33,700
Share of profit from equity accounted investee, net of tax                                                           -            6,398,768              6,398,768
Gain on bargain purchase                                                                                             -           12,263,193             12,263,193
Profit/(loss) before financing costs                                                                        22,612,153          (3,098,096)             19,514,057
Finance income                                                                                               5,148,562                    -              5,148,562
Finance costs                                                                                              (3,854,447)                    -            (3,854,447)
Profit/(loss) before tax                                                                                    23,906,268          (3,098,096)             20,808,172
Current tax                                                                                                (1,180,870)            (813,594)            (1,994,464)
Deferred tax                                                                                                         -          (2,758,191)            (2,758,191)
Profit/(loss) for the period                                                                                22,725,398          (6,669,881)             16,055,517
Attributable to:
Owners of the group                                                                                         21,486,625         (10,399,717)             11,086,908
Non-controlling interest                                                                                     1,238,773            3,729,836              4,968,609
 
DISTRIBUTABLE EARNINGS AND BASIS OF DISTRIBUTION
                                                                                                                                                         Six-month
                                                                                                                                                      period ended
                                                                                                                                                       31 December
Euro                                                                                                                                                          2018

Direct investment result distributable to shareholders                                                                                                  21,486,625

Company specific adjustments
Net attributable profit on sales of inventory property(1)                                                                                                2,605,997
Distributable earnings before effect of shares issued during the period                                                                                 24,092,622
Weighted average number of shares in issue                                                                                                             637,493,798
Distributable earnings per share (euro cents per share)                                                                                                       3.78

Distributable earnings before effect of shares issued during the period                                                                                 24,092,622
Adjustment relating to shares issued during the period                                                                                                           -
Distributable earnings (after effect of shares issued during the period)                                                                                24,092,622

Closing number of shares in issue                                                                                                                      637,493,798

  (1)The profit on sales of inventory property during the year was EUR4,288,257. The tax recognised on these sales was EUR813,594, giving a net amount of profit of EUR3,474,663.
  The group has allocated 75% (EUR2,605,997) of this balance as distributable earnings as approximately 25% of profit is payable to the developer.

                                                                                                                                                         Six-month
                                                                                                                                                      period ended
                                                                                                                                                       31 December
Euro cents                                                                                                                                                    2018

Distributable earnings per share                                                                                                                              3.78
Adjustment from reserves per share                                                                                                                               -
Distribution per share                                                                                                                                        3.78

RECONCILIATION OF CASH FROM OPERATIONS TO DIRECT INVESTMENT RESULT


                                                                                                                                                         Six-month
                                                                                                                                                      period ended
Euro                                                                                                                                                   31 December
                                                                                                                                                              2018

Net cash from operating activities                                                                                                                      25,218,452

Finance cost                                                                                                                                           (3,854,447)
Finance cost                                                                                                                                           (3,854,447)

Finance income                                                                                                                                             518,242
Finance income                                                                                                                                           5,148,562
Finance income received - interest on preference shares                                                                                                (4,630,321)

Tax                                                                                                                                                      (170,062)
Tax expense                                                                                                                                            (1,180,870)
Tax paid on operating activities                                                                                                                         1,010,808

Non-cash items                                                                                                                                           (384,151)
Depreciation                                                                                                                                              (53,654)
Loss on disposal of property, plant and equipment                                                                                                         (90,671)
Share based payment expenses                                                                                                                             (239,826)

Working capital movement                                                                                                                                    50,369
Decrease in receivables                                                                                                                                  (516,733)
Decrease in payables                                                                                                                                       539,188
Decrease in provisions                                                                                                                                      27,914

Other                                                                                                                                                    1,346,995
Investment expenses                                                                                                                                      1,346,995

TOTAL DIRECT INVESTMENT RESULT                                                                                                                          22,725,398
Attributable to:
Owners of the group                                                                                                                                     21,486,625
Non-controlling interest                                                                                                                                 1,238,773

Six-month period ended 31 December 2017 (reviewed)

STATEMENT OF DIRECT AND INDIRECT RESULT

                                                                                                                Direct                Indirect
                                                                                                            investment              investment
Euro                                                                                                            result                  result           Total IFRS

Rental income                                                                                               18,974,145                       -            18,974,145
Service charge income and other recoveries                                                                   2,147,390                       -             2,147,390
Revenue                                                                                                     21,121,535                       -            21,121,535
Service charge and other property expenses                                                                 (5,859,557)                       -           (5,859,557)
Net rental income                                                                                           15,261,978                       -            15,261,978
Sale of inventory property                                                                                           -               6,398,637             6,398,637
Cost of sales of inventory property                                                                                  -             (5,339,258)           (5,339,258)
Profit on sale of inventory property                                                                                 -               1,059,379             1,059,379
Other income                                                                                                    89,831                       -                89,831
Corporate expenses                                                                                         (2,500,957)                       -           (2,500,957)
Investment expenses                                                                                                  -             (1,335,379)           (1,335,379)
Net operating income                                                                                        12,850,852               (276,000)            12,574,852
Fair value adjustments                                                                                               -               (613,755)             (613,755)
Foreign currency exchange differences                                                                                -               (586,186)             (586,186)
Share of profit from equity accounted investee, net of tax                                                     137,672               1,405,385             1,543,057
Good will impairment                                                                                                 -             (1,274,346)           (1,274,346)
Profit/(loss) before financing costs                                                                        12,988,524             (1,344,902)            11,643,622
Finance income                                                                                               3,950,621                       -             3,950,621
Finance costs                                                                                              (2,477,372)                       -           (2,477,372)
Profit/(loss) before tax                                                                                    14,461,773             (1,344,902)            13,116,871
Current tax                                                                                                  (218,234)             (1,860,399)           (2,078,633)
Deferred tax                                                                                                         -               1,047,747             1,047,747
Profit/(loss) for the period                                                                                14,243,539             (2,157,554)            12,085,985
Attributable to:
Owners of the group                                                                                         13,567,227             (1,863,749)            11,703,478
Non-controlling interest                                                                                       676,312               (293,805)               382,507

DISTRIBUTABLE EARNINGS AND BASIS OF DISTRIBUTION
                                                                                                                                                          Six-month
                                                                                                                                                       period ended
                                                                                                                                                        31 December
Euro                                                                                                                                                           2017

Direct investment result distributable to shareholders                                                                                                   13,567,227

Company specific adjustments
Elimination of direct earnings in associate                                                                                                               (137,672)
Net attributable profit on sales of inventory property(1)                                                                                                   643,573
Distributable earnings before effect of shares issued during the period                                                                                  14,073,128
Weighted average number of shares in issue                                                                                                              520,975,749
Distributable earnings per share (euro cents per share)                                                                                                        2.70

Distributable earnings before effect of shares issued during the period                                                                                  14,073,128
Adjustment relating to shares issued during the period                                                                                                    3,050,851
Distributable earnings (after effect of shares issued during the period)                                                                                 17,123,979

Closing number of shares in issue                                                                                                                       633,915,786

  (1)The profit on sales of inventory property during the year was EUR1,059,379. The tax recognised on these sales was EUR201,282, giving a net amount of profit of EUR858,097.
  The group has recognised 75% (EUR643,573) of this balance as distributable earnings as approximately 25% of profit is payable to the developer.

                                                                                                                                                           Six-month
                                                                                                                                                        period ended
                                                                                                                                                         31 December
Euro cents                                                                                                                                                      2017

Distributable earnings per share                                                                                                                                2.70
Adjustment from reserves per share                                                                                                                              0.88
Distribution per share                                                                                                                                          3.58


RECONCILIATION OF CASH FROM OPERATIONS TO DIRECT INVESTMENT RESULT
                                                                                                                                                           Six-month
                                                                                                                                                              period
                                                                                                                                                            ended 31
                                                                                                                                                            December
Euro                                                                                                                                                            2017

Net cash from operating activities                                                                                                                        13,278,072

Finance cost                                                                                                                                             (2,477,372)
Finance cost                                                                                                                                             (2,477,372)

Finance income                                                                                                                                             3,950,621
Finance income                                                                                                                                             3,950,621

Tax                                                                                                                                                          (3,178)
Tax expense                                                                                                                                                (218,234)
Tax paid on operating activities                                                                                                                            215,056

Non-cash items                                                                                                                                             (421,400)
Depreciation                                                                                                                                                (18,098)
Share based payment expenses                                                                                                                               (403,302)

Working capital movement                                                                                                                                 (1,646,086)
Decrease in receivables                                                                                                                                  (2,235,006)
Decrease in payables                                                                                                                                         536,479
Decrease in provisions                                                                                                                                        52,441

Other                                                                                                                                                      1,562,882
Investment expenses                                                                                                                                        1,335,379
Share of profit from equity accounted investee                                                                                                               137,672
Other income                                                                                                                                                  89,831

TOTAL DIRECT INVESTMENT RESULT                                                                                                                            14,243,539
Attributable to:
Owners of the group                                                                                                                                       13,567,227
Non-controlling interest                                                                                                                                     676,312

STATEMENT OF DIRECT AND INDIRECT RESULT

                                                                                                                Direct              Indirect
                                                                                                            investment            investment
Euro                                                                                                            result                result           Total IFRS

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

DISTRIBUTABLE EARNINGS AND BASIS OF DISTRIBUTION
                                                                                                                                                        Year ended
                                                                                                                                                           30 June
Euro                                                                                                                                                          2018

Direct investment result distributable to shareholders                                                                                                 34,078,183

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

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

Closing number of shares in issue                                                                                                                     637,493,798

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

                                                                                                                                                      Year ended
                                                                                                                                                         30 June
Euro cents                                                                                                                                                  2018

Distributable earnings per share                                                                                                                            6.35
Adjustment from reserves per share                                                                                                                          1.26
Distribution per share                                                                                                                                      7.61


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

Net cash from operating activities                                                                                                                    35,386,649

Finance cost                                                                                                                                         (5,560,344)
Finance cost                                                                                                                                         (5,560,344)

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

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

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

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

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

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

EPRA NAV
The European Public Real Estate Association (EPRA) is an organisation that promotes, develops and represents the European
public real estate sector. EPRA sets out best practice reporting guidelines or several financial and operational performance
indicators relevant to the real estate sector. 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.

                                                                                   Reviewed        Reviewed
                                                                                  Six-month       Six-month          Audited
                                                                               period ended    period ended       Year ended
                                                                                31 December     31 December          30 June
Euro                                                                 Note              2018            2017             2018

Equity attributable to owners of the group                                      838,346,385     865,998,006      854,267,721
Adjustments for:
Fair value of interest rate swaps                                                 1,029,546       1,130,924          873,720
Deferred tax asset                                                                (780,574)       (756,280)        (607,179)
Deferred tax liability                                                            8,545,711       3,761,990        6,139,373

NCI in respect of the above adjustments                                         (1,114,380)       (247,180)        (616,418)
EPRA NAV                                                                        846,026,688     869,887,460      860,057,217
Fully diluted number of shares                                                  637,493,798     634,171,721      637,556,656
 Closing number of shares                                                       637,493,798     633,915,786      637,493,798
 Effect of share options                                              27                  -         255,935           62,858
EPRA NAV per share (euro cents)                                                       132.7           137.2            134.9



DISTRIBUTIONS
The holders of the company's shares are entitled to distributions as declared and to one vote per share at general meetings of
the company. Distributions of the company can be paid from retained earnings and share capital in accordance with the BVI
Business Companies Act 2004.
 The following distributions were paid by the group:
                                                                                    Reviewed       Reviewed
                                                                                   Six-month      Six-month          Audited
                                                                                period ended   period ended       Year ended
                                                                                 31 December    31 December          30 June
                                                                                        2018           2017             2018

Cash                                                                             25,691,000       6,957,823       24,127,632
Scrip                                                                                     -      10,424,724       15,949,084
                                                                                 25,691,000      17,382,547       40,076,716

Distributions paid per share (euro cents)                                              4.03            3.19            6.77

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

PROFIT ATTRIBUTABLE TO ORDINARY SHAREHOLDERS
                                                                                  Reviewed        Reviewed
                                                                                 Six-month       Six-month          Audited
                                                                              period ended    period ended       Year ended
                                                                               31 December     31 December          30 June
Euro                                                                                  2018            2017             2018

Profit for the period/year attributable to the owners of the group              11,086,908      11,703,478       16,856,306


WEIGHTED-AVERAGE NUMBER OF ORDINARY SHARES
                                                                                  Reviewed        Reviewed
                                                                                 Six-month       Six-month          Audited
                                                                              period ended    period ended       Year ended
                                                                               31 December     31 December          30 June
Euro                                                                                  2018            2017             2018

Opening issued ordinary shares                                                 637,493,798     467,366,299      467,366,299
Effect of shares issued for capital raises                                               -      50,858,057      105,128,974
Effect of shares issued for scrip distributions                                          -       2,751,393        5,319,593
Weighted-average number of ordinary shares                                     637,493,798     520,975,749      577,814,866

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

BASIC EARNINGS PER SHARE
                                                                                  Reviewed        Reviewed
                                                                                 Six-month       Six-month          Audited
                                                                              period ended    period ended       Year ended
                                                                               31 December     31 December          30 June
Euro                                                                                  2018            2017             2018

Profit attributable to ordinary shareholders                                    11,086,908      11,703,478       16,856,306
Weighted-average number of ordinary shares                                     637,493,798     520,975,749      577,814,866
Basic earnings per share (euro cents)                                                 1.74            2.25             2.92



DILUTED EARNINGS PER SHARE
The calculation of diluted earnings per share has been based on the following weighted-average number of ordinary shares
outstanding after adjusting for the effects of all dilutive potential ordinary shares.
                                                                                   Reviewed        Reviewed
                                                                                  Six-month       Six-month          Audited
                                                                               period ended    period ended       Year ended
                                                                                31 December     31 December          30 June
Euro                                                                                   2018            2017             2018

Weighted-average number of ordinary shares (basic)                              637,493,798     520,975,749      577,814,866
Effect of share options                                                                  -          255,935           62,858
Weighted-average number of ordinary shares (diluted)                            637,493,798     521,231,684      577,877,724

DILUTED EARNINGS PER SHARE
                                                                                  Reviewed        Reviewed
                                                                                 Six-month       Six-month          Audited
                                                                              period ended    period ended       Year ended
                                                                               31 December     31 December          30 June
Euro                                                                                  2018            2017             2018

Profit attributable to ordinary shareholders                                    11,086,908      11,703,478       16,858,306
Weighted-average number of ordinary shares                                     637,493,798     521,231,684      577,877,724
Diluted earnings per share (euro cents)                                               1.74            2.25             2.92

At 31 December 2018, options on 7,850,000 shares were excluded from the diluted weighted-average number of ordinary
shares because their effect would have been anti-dilutive.
 The average market value of the company's shares for the purpose of calculating the dilutive effect of the share options
was based on quoted market prices for the period during which the options were outstanding.

HEADLINE EARNINGS/(LOSS) AND DILUTED HEADLINE EARNINGS/(LOSS) PER SHARE
                                                                                                       Reviewed
                                                                                                Six-month period ended
                                                                                                   31 December 2018
Euro                                                                                Note                Gross              Net

Profit for the period attributable to ordinary shareholders                                        11,086,908       11,086,908
Adjusted for:
Fair value gain on investment property                                                12         (10,625,741)      (8,483,497)
Fair value gain on investment property in associate                                               (8,529,274)      (5,003,872)
Fair value loss on investment property held for sale                                  13              467,919          467,919
Recycle of foreign currency exchange through profit and loss                                        (679,015)        (679,015)
Loss on disposal of property, plant and equipment                                                      90,671           90,671
Gain on bargain purchase                                                                         (12,263,193)     (12,263,193)
Headline loss                                                                                    (20,451,725)     (14,784,079)

Headline loss per share
Weighted-average number of ordinary shares (basic)                                                637,493,798      637,493,798
Headline loss per share (euro cents)                                                                   (3.21)           (2.32)

Diluted headline loss per share
Weighted-average number of ordinary shares (diluted)                                              637,493,798      637,493,798
Diluted headline loss per share (euro cents)                                                           (3.21)           (2.32)

                                                                                                         Reviewed
                                                                                                  Six-month period ended
                                                                                                     31 December 2017
Euro                                                                                   Note             Gross              Net

Profit for the period attributable to ordinary shareholders                                        11,703,478       11,703,478
Adjusted for:
Fair value loss on investment property                                                   12         4,140,178        2,306,546
Fair value gain on investment property in associate                                               (1,802,951)      (1,802,951)
Fair value gain on investment property held for sale                                     13       (1,568,735)      (1,568,735)
Goodwill impairment                                                                      11         1,274,346        1,274,346
Headline earnings                                                                                  13,746,316       11,912,684

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
Diluted headline earnings per share (euro cents)                                                         2.64             2.29



                                                                                                          Audited
                                                                                                         Year ended
                                                                                                        30 June 2018
Euro                                                                                   Note             Gross              Net

Profit for the year attributable to ordinary shareholders                                          16,856,306       16,856,306
Adjusted for:
Fair value loss/(gain) on investment property                                            12            721,387         232,813
Fair value gain on investment property in associate                                                (6,179,920)     (3,878,272)
Fair value gain on investment property held for sale                                     13        (2,766,206)     (2,766,206)
Goodwill impairment                                                                      11          1,274,346       1,274,346
Headline earnings                                                                                    9,905,913      11,718,987

Headline earnings per share
Weighted-average number of ordinary shares (basic)                                                 577,814,866     577,814,866
Headline earnings per share (euro cents)                                                                  1.71            2.03

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

The JSE Listings Requirements require the calculation of headline (loss)/earnings and diluted headline (loss)/earnings per
share and the disclosure of a detailed reconciliation of headline (loss)/earnings to the earnings numbers used in the
calculation of basic and diluted 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.

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

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

RELATED PARTY RELATIONSHIPS
ARTISAN
Artisan is a real estate management company with a board which comprises of four directors. Two of which were directors of Artisan
and MAS until 1 October 2018 when one resigned as a director of Artisan. 

NEW WAVERLEY HOLDINGS LIMITED
New Waverley Holdings Limited is a real estate development holding company and is a 60% owned subsidiary of Artisan. As such it is 
controlled by Artisan. Refer to note 22.

NEW WAVERLEY ADVISERS LIMITED
New Waverley Advisers Limited is a real estate developer and is a 100% owned subsidiary of New Waverley Holdings Limited. As such 
it is controlled by Artisan. Refer to note 22

CORONA
Corona is a real estate management company with five staff members and is owned 100% by Jonathan Knight who is the
chief investment officer of the group.
 Jonathan Knight has a contract of employment with Corona Real Estate Partner Limited, a service provider to MAS
Property Advisers Limited. The total remuneration paid to Corona in relation to services provided to MAS by Jonathan Knight
was EUR81,432 (December 2017: EUR65,142, June 2018: EUR130,284). Jonathan Knight received a salary of EUR33,696 (December 2017:
EUR33,987, June 2018: EUR67,974) from Corona.

PKM DEVELOPMENTS
PKM Developments is an associate of the group and MAS owns 40% of the ordinary shares, refer to notes 16 and 21.
 The group provided EUR157,000,000 to acquire 7.5% preference shares in PKM Developments, refer to notes 16 and 21. The
group has committed to fund up to a further EUR300,000,000 over the next three years.

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

RELATED PARTY TRANSACTIONS
                                                             Income/(expenses)
                                                         for the period/year ended                Capitalised for the period/year ended                       Balances receivable/(payable) 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                               Note                2018              2017             2018             2018             2017             2018             2018              2017           2018

NW Advisers
- Oncharged development                                   -                 -                -        1,532,293          230,704        2,287,409                 -          163,350              -
   costs
- Development management                          (253,517)         (152,455)        (682,957)                -                -                -       (4,955,021)      (4,167,950)    (4,701,505)
   fee(1)
                                                  (253,517)         (152,455)        (682,957)        1,532,293          230,704        2,287,409       (4,955,021)      (4,004,600)    (4,701,505)
NW Holdings
- Priority participation profit                   (516,896)           201,586      (1,042,368)                -                -                -       (7,429,653)      (5,823,594)    (6,912,757)
  dividend(1)
                                                  (516,896)           201,586      (1,042,368)                                 -                -       (7,429,653)      (5,823,594)    (6,912,757)
Corona
- Legal and professional                          (331,922)         (472,760)        (804,187)                -           96,931          132,549         (138,564)                -      (124,474)
expenses
                                                  (331,922)         (472,760)        (804,187)                -           96,931          132,549         (138,564)                -      (124,474)
Artisan
-  Oncharged administrative                          26,063            22,825           46,946                -                -                -             9,410            8,388              -
   expenses
                                                     26,063            22,825           46,946                -                -                -             9,410            8,388              -
PKM Developments
- Equity accounted investee          16           6,398,768         1,543,057        3,568,925                -                -                -        30,686,286       21,751,615     23,774,222
- Preference shares - PKM            21           4,835,323         3,795,207        7,514,384                -                -                -       162,250,770      104,929,452    105,045,768
  Developments
                                                 11,234,091         5,338,264       11,083,309                -                -                -       192,937,056      126,681,067    128,819,990
Momats
- Directors fees and legal                          (6,595)          (11,840)           12,621                -                -                -                 -                -          2,180
  and professional fees
                                                    (6,595)          (11,840)           12,621                -                -                -                 -                -          2,180
                                                 10,151,224         4,925,620      (8,613,364)        1,532,293          327,635        2,419,958       180,423,227      116,861,261    117,083,434

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


TRANSACTIONS WITH KEY MANAGEMENT

Six-months ended 31 December 2018 (reviewed)
                                                                                                                                    IFRS 2
                                                        Basic                       Short-term       Long-term                      option
Euro                     Role                          salary       Benefits         incentive       incentive    Sub total        expense          Total

Malcolm Levy             Interim CEO                        -              -                 -               -            -        149,138        149,138
Paul Osbourn             CFO                           75,558              -                 -               -       75,558              -         75,558
Jonathan Knight          CIO                           44,928              -                 -               -       44,928         60,867        105,795
Ron Spencer              Chairman                      24,250              -                 -               -       24,250              -         24,250
Gideon Oosthuizen        NED                           18,530              -                 -               -       18,530              -         18,530
Jaco Jansen              NED                           18,750              -                 -               -       18,750              -         18,750
Pierre Goosen            NED                           25,750              -                 -               -       25,750              -         25,750
Glynnis Carthy           NED                           20,000              -                 -               -       20,000              -         20,000
Werner Alberts           NED                           10,805              -                 -               -       10,805              -         10,805
Melt Hamman              NED                            1,479              -                 -               -        1,479              -          1,479
Helen Cullen             Company secretary             54,873              -             4,777               -       59,650         20,289         79,939
Morne Wilken             Former CEO                   143,672     112,320(1)                 -               -      255,992              -        255,992
                                                      438,595        112,320             4,777               -      555,692        230,294        785,986

  (1)The sum of GBP500,000 (approximately EUR564,250) was awarded and paid to Morne Wilken as recognition that he would forfeit in-the money incentive scheme by
  becoming CEO of MAS. This amount was repayable on a pro-rata basis should he cease to be employed by the company from 1 January 2018 to 30 June 2020 and accordingly GBP16,667
  (approximately EUR18,720) was expensed monthly and recognised as a benefit paid to him. Morne paid back the outstanding amount of GBP300,000 (approximately
  EUR369,600) when he ceased to be director.

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

Lukas Nakos              CEO                                -             -                  -               -             -              -              -
Malcolm Levy             CFO                                -             -                  -               -             -        242,008        242,008
Jonathan Knight          CIO                           33,970             -                  -               -        33,970        107,413        141,383
Ron Spencer              Chairman                      15,000             -                  -               -        15,000              -         15,000
Gideon Oosthuizen        NED                           13,750             -                  -               -        13,750              -         13,750
Jaco Jansen              NED                           12,500             -                  -               -        12,500              -         12,500
Morne Wilken             NED                           10,000         13,163                 -               -        23,163              -         23,163
Pierre Goosen            NED                           10,000             -                  -               -        10,000              -         10,000
Glynnis Carthy           NED                           13,750             -                  -               -        13,750              -         13,750
Helen Cullen             Company secretary             48,540             -                  -               -        48,540         35,804         84,344
                                                      157,510         13,163                 -               -       170,673        385,225        555,898
Year ended 30 June 2018 (audited)
                                                                                                                                     IFRS 2
                                                          Basic                     Short-term       Long-term                       option
Euro                     Role                            salary     Benefits         incentive       incentive     Sub total        expense          Total

Morne Wilken                                          188,432        141,613                 -               -       330,045              -        330,045
                  CEO                                 178,432        141,613                 -               -       320,045              -        320,045
                  Former NED                           10,000             -                  -               -        10,000              -         10,000
Malcolm Levy      CFO                                       -             -                  -               -            -         425,758        425,758
Jonathan Knight   CIO                                  67,974             -                  -               -        67,974        164,354        232,328
Ron Spencer       Chairman                             30,000             -                  -               -        30,000              -         30,000
Gideon Oosthuizen NED                                  27,500             -                  -               -        27,500              -         27,500
Jaco Jansen       NED                                  25,000             -                  -               -        25,000              -         25,000
Pierre Goosen     NED                                  22,500             -                  -               -        22,500              -         22,500
Glynnis Carthy    NED                                  27,500             -                  -               -        27,500              -         27,500
Helen Cullen      Company secretary                    95,778             -                  -               -        95,778         66,441        162,219
Lukas Nakos       Former CEO                               -        157,794                  -               -       157,794              -        157,794
                                                      484,684       299,407                  -               -       784,091        656,553      1,440,644

29.CONTINGENT LIABILITIES
The group is subject to possible litigation regarding a disputed lease agreement in one of its subsidiaries. The maximum
potential claim is EUR3,000,000, however, at the date of this report there are no current legal proceedings and the success of
the claim is not considered to be probable.

30.CAPITAL COMMITMENTS
INVESTMENT PROPERTY
The group entered into a sale and purchase agreement ("SPA") to acquire a shopping centre located in Flensburg, Germany.
The sale was completed on 14 January 2019 for a purchase price of EUR62,550,000.

INVESTMENT IN EQUITY ACCOUNTED INVESTEE
The group has committed to fund PKM Developments through 7.5% cumulative preference shares issued by PKM
Developments. The group is committed to fund up to a total of EUR300,000,000. The outstanding commitment at the reporting
date was EUR143,000,000 which is expected to be funded by 23 March 2021, subsequently amended, refer to note 31. The loan
commitments have been reviewed and are not considered to be onerous at the reporting date.

31.EVENTS AFTER THE REPORTING PERIOD
ACQUISITION OF INVESTMENT PROPERTY
On 14 January 2019 the group acquired the share capital of a special purpose vehicle that owns a shopping centre located in 
Flensburg, Germany ("Flensburg") for the purchase price of EUR62.6million and has a passing rent of EUR4.1million. 

On 28 February 2019 the group entered into a sale and purchase agreement to acquire the entire share capital and shareholder 
loans of three subsidiaries of PKM Developments for a purchase price of EUR113.0million. 

The entities own nine completed retail assets in PKM Developments: Roman Value Centre, Roman; Baia Mare Value Centre, Baia Mare; 
and the Kaufland portfolio, being value centres in Slobozia, Focsani, Ramnicu Sarat, Targu Secuiesc, Fagaras, Sebes and Gheorgheni.
The nine assets comprise 67,950 square metres of GLA and are expected to deliver EUR8.1million of net operating income, which 
represents a yield of 7.5%.

The payment of the purchase price was off-set by the distribution of profits from PKM Developments and then funded on a short-term 
basis by PKM Developments with interest accruing at MAS' marginal cost of borrowing. 

PAYMENT TO RELATED PARTY
On 27 February 2019, the group paid EUR4,534,437 of the priority participating dividend to New Waverley Holdings Limited and EUR3,024,130
of the development management fee to New Waverly Advisers Limited. EUR1,930,891 and EUR2,895,216 remains owing to New Waverley Holdings Limited
and New Waverley Advisers Limited respectively and will be paid in the next twelve months. 


OTHER INVESTMENTS
On 31 January 2019, the group invested a further 03,000,000 in PKM Development preference shares, bringing the total amount invested in 
PKM Development preference shares to 870,000,000 and the outstanding commitment to EUR130,000,000. The expected timeframe to fund PKM Developments
has been amended from 23 March 2021 to 23 March 2023 after the reporting date.

After the reporting date the group made a number of purchases and sales of the listed real estate equity securities portfolio. As at 28 February 2019,
the group's listed real estate equity securities had a fair value of EUR162,384,994.

Sponsor: Java Capital


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