Publication of Additional Information Relating to Previously Published Results, Lifting of Suspension and Reminder ORION REAL ESTATE LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1997/021085/06) Share Code: ORE ISIN: ZAE000075651 ("Orion Real Estate" or “the Company”) PUBLICATION OF ADDITIONAL INFORMATION RELATING TO PREVIOUSLY PUBLISHED RESULTS, LIFTING OF SUSPENSION AND REMINDER OF REIT STATUS Additional Information Shareholders are referred to the recent Annual Report for the year ended 30 June 2018 (“2018 AFS”) and are advised that the following additional disclosure as requested in the JSE Pro-active Monitoring Review (“JSE Review”) of the Annual Financial Statements for the year ended 30 June 2017 (“2017 AFS”) was inadvertently omitted with the change in auditors and change in Financial Director subsequent to the closing of the JSE Review. The 2018 AFS should have included the additional disclosure as presented below: Impairment of Elma Park recognised in the published 2017 and 2016 Group and Company Annual Financial Statements Group Annual Financial Statements Group 2018 2017 restated 2016 restated Profit before tax for the period before 18 943 082 29 307 961 2 569 397 Impairment/Loss of control of subsidiary Impairment loss on investment in Elma Park - (30 424 170) - Profit before tax after Impairment loss/loss of 18 943 082 (1 116 209) 2 569 397 control of subsidiary % change in profit after recognition of 0% (104%) 0% impairment loss As a result of the impairment / loss of control of subsidiary, the profit for 2017, after restatement, reduced by 104% to a loss of (R 1 116 209) for the Group Company Annual Financial Statements Company 2018 2017 restated 2016 restated Profit before tax for the period before 18 689 168 67 317 798 47 664 539 (Impairment)/ reversal of impairment Impairment loss on investment in Elma Park _ _ (21 024 659) Reversal of impairment/ (Impairment) of loan 1 332 278 (25 084 163) (11 866 702) to related party Profit before tax after Impairment loss/loss of 20 021 446 42 233 635 14 773 178 control of subsidiary % change in profit after recognition of 0% (37%) (69%) impairment loss The financial impact is based on the numbers produced in the 2018 Integrated Annual Report and the Company AFS. As a result of the impairment / loss of control of subsidiary, the profit for 2016 and 2017, after restatement, reduced by 69% in 2016 to R14 773 178 and 37% to R42 233 635 in 2017 for the Company. During the 2016 period a provisional liquidation order was granted to the Elma Park body corporate against Erf 195 Elma Park Proprietary Limited which was a subsidiary of Orion Real Estate Limited. Because of the deficit on equity in the subsidiary company the holding company impaired its investment in the shares of Erf 195 Elma Park and a portion of the loan account in 2016. In the 2017 financial year the provisional liquidation order was made final and as a result there was a loss of control of the subsidiary Erf 195 Elma Park which resulted in a full impairment of the subsidiary balance sheet along with any additional loans from companies within the Group. Adjustment of Group Headline and Diluted Headline Earnings\(Loss) per Share for 2016 In addition to the above, whilst the headline earnings reconciliation was performed correctly for the 2018 AFS, a further analysis of prior periods revealed that the previous computation for the year ended 30 June 2016 was not correct due to the incorrect inclusion of the lease smoothing adjustment. The previously published and restated information on the headline loss and headline loss per share is set out below: The Group wishes to restate the Group Headline and Diluted Headline Earnings (Loss) per Share for 2016 after intensive discussions in this regard with the Johannesburg Stock Exchange. HEPS per Annual report Restated HEPS for 2016 2016 Basic earnings to Headline earnings \ (loss) reconciliation Basic earnings 2 886 345 2 886 345 Fair value gain adjustment (18 705 591) (22 944 906) Net gain on disposal of Investment properties (791 238) (791 238) Headline loss (16 610 484) (20 849 799) Reconciliation of numerators used for basic and diluted earnings Number of shares in issue for headline earnings per share 627 009 822 627 009 822 Headline loss per share (cents) (2.65) (3.33) Diluted headline loss per share (cents) (2.65) (3.33) King IV Principles and Remuneration Policy and Implementation Report In addition to the above, shareholders are also advised that a summary of the Company’s compliance with the 16 King IV® principles and a remuneration report detailing the remuneration policy and implementation report are available on the Orion website at www.oriongroup.co.za. These disclosures should have been included in the Company’s integrated report. Lifting of suspension Shareholders are advised that, following the review by the Johannesburg Stock Exchange (“JSE”) of the Annual Report for the year ended 30 June 2018 and consideration of the ongoing compliance with the JSE Listings Requirements, the suspension in trade in the Company’s securities will be lifted after the JSE has considered the matters currently under review, including shareholder spread. REIT status Shareholders are reminded that the REIT status was removed on 5 February 2019 and the JSE Listings Requirements precludes the JSE from reissuing REIT status for a period of 24 months after removal thereof. Johannesburg 11 July 2019 Sponsor Arbor Capital Sponsors Proprietary Limited Date: 11/07/2019 12:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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