New Europe Property Investments plc : Unaudited Condensed Consolidated Financial Results for the Six Months Ended 30 June 2013

NEW EUROPE PROPERTY INVESTMENTS PLC

Incorporated and registered in the Isle of Man with registered number 001211V

Registered as an external company with limited liability under the laws of South Africa Registration number: 2009/000025/10

Registered office: 2nd Floor, Anglo International House, Lord Street, Douglas, Isle of Man, IM1 4LN

AIM share code: NEPI BVB share code: NEP JSE share code: NEP ISIN: IM00B23XCH02 ("NEPI", "the Group" or "the Company")

DISTRIBUTABLE EARNINGS
The Group achieved distributable earnings of 11.87 euro cents per share for the six months ended 30 June 2013 which represents a 17.27% improvement in recurring distributable earnings per share compared to the prior interim period. This excellent financial result was due to the continuing strong performance of the Group's assets, the acquisition of The Lakeview in February 2013 and additional rental income generated through the completion of Ploiesti Shopping City during the last quarter of 2012.
DISTRIBUTION
The Board of Directors declared a distribution of 12.93 euro cents per share in respect of the six months ended 30 June 2013, an improvement of 15% over the 11.24 euro cents per share distribution declared in relation to the comparable prior interim period. This includes an amount of €1.69 million of retained distributable earnings carried forward from prior financial periods.
As of 30 June 2013 the balance of retained distributable earnings carried forward from prior financial periods, after the interim period distribution in relation to 2013, amounts to €6.5 million. The Board will consider distributing the retained distributable earnings during forthcoming financial periods as the Group pursues various property developments. Once completed, these developments are expected to have a positive impact on per share distributions. However, during the construction period distributable earnings are diluted as interest in relation to property under construction is capitalised at the Group's average cost of finance and any cash balances retained to finance such developments yield low returns.
OPTION TO RECEIVE CAPITAL RETURN
Consistent with prior practice and given the ongoing development and acquisition programme, the Board resolved to offer shareholders the option to receive the distribution as a cash settlement or a return of capital by way of an issue of new shares credited as fully paid up at a ratio of 2.694 new shares for each 100 shares held.
A circular that contains details of the election, accompanied by announcements on the Stock Exchange News Service (SENS) of the Johannesburg Stock Exchange (JSE), the Regulatory News Service (RNS) of the London Stock Exchange (LSE) and the Bucharest Stock Exchange (BVB), will be issued in due course.
ACQUISITION AND DEVELOPMENT PIPELINE
The Group made significant progress in expanding its acquisition and development pipeline during the interim period. As of 30 June 2013 the Group had secured several additional earnings enhancing acquisitions and a number of attractive new development opportunities.
Subsequent to the interim period the Group has acquired two shopping centres and has committed to acquire a third shopping centre for an aggregate pre-debt value of €€150 million. As of 30 June 2013 this cost had not been incurred. The Group also decided not to proceed with the acquisition of a 50% interest in a shopping centre in Budapest.
At the date of this report the Group's development pipeline (including redevelopment opportunities and extensions in relation to secured acquisitions) has increased to €350 million of which €52 million had been incurred as at 30 June 2013. This includes the purchase of a 70% interest in a new shopping mall development in Bucharest and other development opportunities detailed below.
RETAIL PROPERTY ACQUISITIONS, EXTENSIONS AND DEVELOPMENTS
Mega Mall As announced on 2 August 2013 the Group has concluded a framework agreement to acquire a 70% interest in a permitted development site named Mega Mall (otherwise known as the former Electroaparataj factory site) in Bucharest, Romania. NEPI intends to develop a 70,000m2 GLA shopping mall in conjunction with Austrian development group Real4You. The 5.1ha site is located in a very densely populated area of eastern Bucharest, close to the Romanian national football stadium, which is currently lacking retail space. The site has good visibility from a major vehicle artery and has access to public transport, including trams, buses
and trolley buses. A metro station is planned in front of the site and the shopping mall is expected to connect to it. Approximately 30% of the planned GLA is already subject to tenant commitments, including international clients such as Carrefour, C&A and H&M. Construction will start in 2013 and the shopping mall will open mid-2015. The agreement with Real4You is subject to various conditions precedent to be fulfilled or waived by the end of August 2013. This includes NEPI's right to perform its payment obligations fully, or partially, by means of vendor consideration placement.
Aupark Zilina As announced on 25 April 2013, and subsequent to the interim period that ended on 30 June 2013, the Group completed the acquisition of Aupark Zilina, a regional mall with approximately 22,000m2 of retail GLA, situated in the city centre of Zilina, in Slovakia. Major tenants in the mall include international brands such as Billa, C&A, Deichmann, H&M and New Yorker. The effective date of the acquisition is 31 July 2013.
Deva Shopping Centre Subsequent to the interim period that ended on 30 June 2013 the Group has committed to the acquisition of a regional shopping centre with approximately 42,000m2 of retail GLA in Deva, Romania. Deva is the capital of the Hunedoara county, located in western central part of Romania. In addition to Deva's approximately 56,000 residents the catchment area includes roughly 220,000 residents in a number of smaller surrounding towns all within 45 minutes' drive from the Centre. Major tenants include Metro Cash & Carry, Real Hypermarket (in due course this will probably become an Auchan Hypermarket as Real has been acquired by Auchan in Romania), Praktiker DIY, DM, Domo, Jysk and Takko. The acquisition includes approximately 2.9ha of additional land intended for extensions. The effective date of the acquisition is 31 July 2013. The transaction is subject to approval by the Romanian Competition Council.
Galati Shopping City The Group obtained a building permit for its shopping mall development in Galati, Romania, and commenced construction. The first phase of the development will consist of approximately 27,000m2 of GLA and will open at the end of this year. At the date of this report
62% of the planned first phase GLA has been secured via signed lease agreements with tenants including Altex, Benvenuti, Carrefour, DM, KFC, Noriel, Orange, Otter, Puma, Sabon, Sensiblu and Vodafone. Commercial terms for a further 25% of the planned GLA have been agreed in principle with prospective tenants.

Kaufland value extensions Further to the announcement made on 25 April 2013 the Group has completed and opened the first of the Kaufland strip mall extensions in Alexandria, Romania, started construction on two further sites and obtained a building permit for a fourth development. Four strip malls are expected to be open by the end of the 2013 financial year.

Severin Shopping Center Further to the announcement made on 25 April 2013, and subsequent to the interim period that ended on 30 June 2013, the Group finalised the acquisition of the Severin Shopping Center, which has approximately 16,000m2 of GLA and approximately
2.3ha of additional land for extension purposes. Major tenants include Carrefour, Altex, Takko, Deichmann, New Yorker and Lee Cooper. The effective date of the acquisition is 1 May 2013.
Targu Jiu Shopping City Further to the announcement made on 25 April 2013 the Group has obtained zoning approval for a regional shopping mall of approximately 27,000m2 of GLA from the authorities in Targu Jiu, Romania. The Group is currently engaged in the process of compiling and submitting documentation for obtaining the building permit.
Vulcan Value Centre As announced on 6 June 2012 the Group entered into a shareholders' agreement with Mr Michael Topolinski to jointly acquire the Vulcan land site in Bucharest, via a company named Zircon Properties, with the intention of developing a value centre. As previously reported there have been unforeseen delays with permitting. In addition, various disagreements emerged between NEPI and Mr Topolinski, which make the completion of the development as a joint project improbable. NEPI and Mr Topolinski are currently discussing an amicable separation in relation to the Vulcan Value Centre transaction. If this dialogue is unsuccessful the joint venture may fail and NEPI may pursue the opportunity alone. NEPI's net exposure to the joint venture is limited to €2.6 million, consequently failure of the joint venture will not have a material impact on NEPI's financial standing.
OFFICE PROPERTY ACQUISITIONS, EXTENSIONS AND DEVELOPMENTS
City Business Centre Further to the forward sale-purchase agreement entered into in relation to the acquisition of Buildings D and E of City Business Centre in Timisoara, Romania, the Group has made an initial early payment to the vendor in February 2013 by means of a secured loan of approximately €8 million.
The Office Cluj-Napoca The Group and its development partner Mr Ovidiu Sandor have obtained a building permit in relation to the development of the office building in Cluj, Romania. Construction has started and the first phase of approximately 19,000m2 of GLA is expected to be completed on schedule in April 2014. Heads of terms have been entered into with a number of prospective tenants including Deloitte and Three Pillar Global Romania.

The Lakeview Further to the announcement of the 2012 financial results, transfer of ownership of The Lakeview and payment of the purchase price occurred in April 2013 with the effective date of the acquisition being 1 January 2013.

Piata Victoriei Office development The Group has obtained a planning certificate enabling it to apply for a building permit in relation to the planned office development in Piata Victoriei, Bucharest.

LEGAL PROCEEDINGS REGARDING SIBIU SHOPPING CITY DEBT ACQUISITION
Further to the announcement made by NEPI on 11 July 2013, regarding the information released via the RNS of the LSE on 9 July 2013 that Argo Real Estate Opportunities Fund Limited (Argo), an Alternative Investment Market (AIM) listed company with a market capitalisation of approximately £10 million, had commenced legal proceedings against NEPI and Volksbank in relation to the Sibiu Shopping City debt acquisition by the Group, the Group confirms that there is no change in status regarding the potential debt acquisition. In addition, NEPI's counsel has reviewed the Argo claim and shareholders of NEPI are advised that the Board of Directors not only remains of the view that the Company has at all times acted lawfully but considers Argo's action to be void of substance and vexatious in nature.
DISPOSALS
Retail Park Pitesti As announced during August 2012 the Group entered into an agreement with the Auchan Group to sell the hypermarket section of Retail Park Pitesti for a total consideration of approximately €29.4 million. The transaction concluded on 29 April 2013.
OTHER HIGHLIGHTS
Adjusted Net Asset Value (NAV) as of 30 June 2013 is 18% higher compared to the comparable prior interim period. Vacancy is down for this period: the vacancy calculated as a portion of available rentable area (excluding those under earn-out arrangements in City Business Centre, Timisoara) is 4.08% compared to 4.8% at the 2012 year end. Non-recoverable tenant income amounted to €77,000 in respect of the six months ended on 30 June 2013, equivalent to 0.29% of the contractual rental income and expense recoveries for the interim period.
CASH MANAGEMENT AND DEBT
During the interim period that ended on 30 June 2013 the Company raised €59 million via the issue of new ordinary shares on the South African register in an over-subscribed private placing and ended the period with €130 million in cash and listed property shares. The total investment exposure to listed securities amounted to €55 million, while the listed securities traded at a premium to their initial acquisition cost and accrued income.
The Group raised €100 million in a rights issue that was completed after the end of the interim period.
In addition to the cash balances the Group has an undrawn secured revolving facility with UniCredit Tiriac Bank for €9.5 million and a €10 million undrawn facility with Morgan Stanley against its portfolio of listed securities. The Group is expected to be in a position to drawdown a further €2.85 million as the construction loan with BRD (a subsidiary of Groupe Société Générale) in relation to Ploiesti Shopping City is converted into an investment loan.
The Group had €177 million of third-party debt finance in place as at 30 June 2013 and acquired a further €55 million of third-party debt finance due to the acquisition of Aupark Zilina.
The Group is in the process of raising €30 million of third-party debt finance secured against The Lakeview office building. The Group and its development partner are in the process of implementing a development loan facility of €13 million in relation to the development of the first phase of The Office Cluj-Napoca. The Group has also received and is considering a non-binding term sheet from Raiffeisen Bank International to extend the loan that is due for repayment in October 2013 secured over the Floreasca Business Park offices in Bucharest.
At 30 June 2013 the Group's gearing ratio (interest bearing debt less cash divided by investment property and listed property shares) decreased to 19%. The average interest rate (including interest rate hedging costs) in relation to the debt was approximately 4.6% during the interim period.
PROSPECTS
The Board is confident that recurring distributable earnings per share for the second half
of the 2013 financial year will range from 13.5 to 14 euro cents per share (compared to
10.75 euro cents per share for the half year ended on 31 December 2012). Consequently,
growth in distributions of approximately 15% is expected to be achieved for the 2013 financial
year. The growth is based on the assumptions that a stable macro-economic environment will
prevail, no major corporate failures will occur and that the developments reported on above
will progress in accordance with expectations. Budgeted rental income was based on
contractual escalations and market related renewals. This forecast has not been audited or
reviewed by NEPI's auditors.
NEPI 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
Martin Slabbert Victor Semionov

Chief Executive Officer Finance Director

6 August 2013
Transfer secretaries and settlement agent
Computershare Investor Services (Proprietary) Limited, 70 Marshall Street, Johannesburg, 2001, South Africa (PO Box 61051, Marshalltown, 2107, South Africa) Computershare Investor Services (Jersey) Limited, 2nd floor, Queensway House, Hilgrove Street, St Helier, JE1 1ES, Jersey
Directors
Dan Pascariu (Chairman)*, Desmond de Beer#, Michael Mills*, Dewald Joubert*, Jeffrey Zidel*, Victor Semionov (Finance Director), Martin Slabbert (Chief Executive Officer) *Independent non-executive director #Non-executive director
For further information please contact
New Europe Property Investments plc Martin Slabbert +40 74 432 8882
Nominated Adviser and Broker
Smith & Williamson Corporate Finance Limited
Azhic Basirov/Siobhan Sergeant +44 20 7131 4000
JSE Sponsor
Java Capital +27 11 283 0042
Romanian Advisor
SSIF Intercapital Invest SA Razvan Pasol +40 21 222 8731

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Pro forma IFRS Reported IFRS Reported IFRS IFRS Restated IFRS Restated

Unaudited Audited Unaudited Unaudited Unaudited Unaudited

CONSOLIDATED STATEMENTS OF INCOME

Pro forma IFRS Reported IFRS Reported IFRS IFRS Restated IFRS Restated

Unaudited Audited Unaudited Unaudited Unaudited Unaudited

30 Jun 2013 31 Dec 2012 30 Jun 2012 30 Jun 2013 31 Dec 2012 30 Jun 2012

ASSETS
Non-current assets 548 768 124 444 666 197 435 824 057 524 179 725 418 853 914 424 255 381
Investment property 509 878 958 416 674 175 407 185 213 447 778 261 356 732 724 372 652 039
Investment property at fair value 459 635 666 393 966 226 385 810 319 405 226 433 339 851 226 359 163 495
Investment property under development 50 243 292 22 707 949 21 374 894 42 551 828 16 881 498 13 488 544
Goodwill 17 325 704 13 188 795 13 938 637 17 271 518 13 134 609 13 884 506
Investments in joint ventures - - - 3 989 080 3 546 212 (895 235) Long term loans granted to joint ventures - - - 32 651 168 30 368 931 24 554 795
Other long-term assets 21 401 663 14 727 635 14 387 551 22 327 899 14 995 846 13 746 620
Financial assets at fair value through profit or loss 161 799 75 592 312 656 161 799 75 592 312 656
Current assets 151 899 484 185 176 059 96 417 479 145 732 685 176 894 494 90 761 684
Trade and other receivables 21 749 805 15 798 975 9 557 392 18 382 234 9 748 620 7 964 542
Financial investments at fair value through profit or loss 60 833 180 81 865 443 37 111 662 60 833 180 81 865 443 37 111 662
Cash and cash equivalents 69 316 499 87 511 641 49 748 425 66 517 271 85 280 431 45 685 480
Investment property held for sale - 28 665 158 - - 28 665 158 - Total assets 700 667 608 658 507 414 532 241 536 669 912 410 624 413 566 515 017 065 EQUITY AND LIABILITIES
Equity attributable to equity holders 473 426 120 393 622 378 311 905 776 473 426 120 393 622 378 311 905 776
Share capital 1 510 380 1 352 629 1 166 048 1 510 380 1 352 629 1 166 048
Share premium 416 163 768 355 026 520 293 035 978 416 163 768 355 026 520 293 035 978
Share-based payment reserve 13 659 756 15 491 810 14 004 458 13 659 756 15 491 810 14 004 458
Currency translation reserve (1 228 783) (1 228 783) (2 276 952) (1 228 783) (1 228 783) (2 276 952) Accumulated profit 43 320 999 22 980 202 5 976 244 43 320 999 22 980 202 5 976 244

Total liabilities 227 241 488 264 885 036 220 335 760 196 486 290 230 791 188 203 111 289

Non-current liabilities 133 513 882 147 151 095 196 379 106 107 833 907 120 605 636 181 515 406
Loans and borrowings 101 931 266 117 100 152 171 837 475 77 865 129 92 935 525 158 815 143
Deferred tax liabilities 24 750 041 22 321 189 18 937 397 24 178 306 21 567 836 18 315 567
Other long term liabilities 1 608 904 - - 1 608 904 - - Financial liabilities at fair value through profit or loss 5 223 671 7 729 754 5 604 234 4 181 568 6 102 275 4 384 696
Current liabilities 93 727 606 117 733 941 23 956 654 88 652 383 110 185 552 21 595 883
Trade and other payables 15 537 551 12 985 200 5 202 296 14 166 675 9 773 420 3 531 071
Loans and borrowings 75 119 212 102 048 042 16 023 948 71 518 953 97 781 406 15 367 469
Tenant deposits 3 070 843 2 700 699 2 730 410 2 966 755 2 630 726 2 697 343
Total equity and liabilities 700 667 608 658 507 414 532 241 536 669 912 410 624 413 566 515 017 065
Net asset value per share 3.07 2.83 2.59 3.07 2.83 2.59

Adjusted net asset value per share 3.10 2.88 2.63 3.10 2.88 2.63

30 Jun 2013 31 Dec 2012 30 Jun 2012 30 Jun 2013 31 Dec 2012 30 Jun 2012

Net rental and related income 19 525 167 30 432 771 14 713 551 17 499 552 28 344 410 13 866 472
Contractual rental income and expense recoveries 26 166 571 40 176 801 19 104 741 23 177 503 37 312 436 17 879 445
Property operating expenses (6 641 404) (9 744 030) (4 391 190) (5 677 951) (8 968 026) (4 012 973) Administrative expenses (1 188 523) (2 211 006) (944 497) (1 054 212) (2 103 006) (937 997) Acquisition fees (883 280) (1 594 393) (782 961) (883 280) (915 212) (531 180) Fair value adjustments of investment property - 6 450 485 - - 1 063 940 - Fair value gains of financial investments at fair value through profit or loss 681 704 10 287 980 2 194 434 681 704 10 287 980 2 194 434
Net result on sale of listed securities investments 586 421 26 280 - 586 421 26 280 - Dividends received from listed securities investments 1 801 040 796 411 - 1 801 040 796 411 - Share-based payment expense (868 986) (996 909) (872 241) (868 986) (996 909) (872 241) Foreign exchange gain/(loss) 224 927 (2 529 495) (2 106 142) 216 867 (2 352 634) (2 323 862) Gain on disposal of investment property held for sale 527 258 - - 527 258 - - Other operating income - 10 264 266 10 264 266 - 10 264 266 10 264 266
Profit before net finance (expense)/income 20 405 728 50 926 390 22 466 410 18 506 364 44 415 526 21 659 892
Net finance (expense)/income (392 729) (12 574 251) (6 947 609) 1 224 017 (9 537 659) (5 865 775) Finance income 4 213 998 1 853 838 835 282 5 125 522 4 098 704 1 788 003
Finance expense (4 606 727) (14 428 089) (7 782 891) (3 901 505) (13 636 363) (7 653 778)
Share of profit/(loss) of joint ventures - - - 464 236 2 720 919 (897 146)
Profit before tax 20 012 999 38 352 139 15 518 801 20 194 617 37 598 786 14 896 971
Deferred tax income/(expense) 1 708 057 (5 248 690) (1 140 933) 1 526 439 (4 495 337) (519 103)

Profit for the period attributable to equity holders 21 721 056 33 103 449 14 377 868 21 721 056 33 103 449 14 377 868 Weighted average number of shares in issue 145 133 096 116 238 121 105 639 309 145 133 096 116 238 121 105 639 309

Diluted weighted average number of shares in issue 150 236 334 121 391 646 110 853 546 150 236 334 121 391 646 110 853 546
Basic weighted average earnings per share (euro cents) 14.97 28.48 13.61 14.97 28.48 13.61
Diluted weighted average earnings per share (euro cents) 14.46 27.27 12.97 14.46 27.27 12.97
Distributable earnings per share (euro cents) 11.87 25.95 15.80 11.87 25.95 15.80
Headline earnings per share (euro cents) 14.60 22.93 13.61 14.60 22.93 13.61
Diluted headline earnings per share (euro cents) 14.11 21.96 12.97 14.11 21.96 12.97

Pro forma IFRS Reported IFRS Reported IFRS Unaudited Audited Unaudited Unaudited

30 Jun 2013 31 Dec 2012 30 Jun 2012 30 Jun 2013

Profit for the period attributable to equity holders 21 721 056 33 103 449 14 377 868 21 721 056
Unrealised foreign exchange loss 98 759 2 529 495 2 106 142 106 820
Acquisition fees 883 280 1 594 393 777 050 883 280
Share-based payment expense 868 986 996 909 872 241 868 986
Accrued interest on share-based payments 285 378 569 597 297 352 285 378
Fair value adjustments of investment property - (6 450 485) - - Fair value gains of financial investments at fair value through profit or loss (681 704) (10 287 980) - (681 704) Financial assets at fair value (2 592 051) 6 328 495 1 759 386 (2 006 674) Amortisation of financial assets (180 131) (572 063) (393 301) (180 131) Net result on sale of listed securities investments (586 421) (26 280) - (586 421)
Dividends received from listed securities investments (1 801 040) (796 411) - (1 801 040)
Share
Share
Share-based payments
Currency translation
Accumulated
Accrued income from financial investments at fair value through profit or loss 1 952 962 3 092 147 382 930 1 952 962
Gain on disposal of investment property held for sale (527 258) - - (527 258)

capital premium reserve reserve profit To tal

Balance at 1 January 2012 955 693 227 844 770 7 456 257 (2 650 522) 1 652 742 235 258 940
Transactions with owners 210 355 65 191 208 6 548 201 - (10 054 366) 61 895 398
- Issue of shares 210 355 65 296 116 - - - 65 506 471
- Issue cost recognised to equity - (104 908) - - - (104 908)
- Share-based payment reserve - - 6 548 201 - - 6 548 201
- Earnings distribution - - - - (10 054 366) (10 054 366)
Total comprehensive income - - - 373 570 14 377 868 14 751 438
- Other comprehensive income - - - 373 570 - 373 570
- Profit for the period - - - - 14 377 868 14 377 868

Balance at 30 June 2012 - unaudited 1 166 048 293 035 978 14 004 458 (2 276 952) 5 976 244 311 905 776

Balance at 1 July 2012 1 166 048 293 035 978 14 004 458 (2 276 952) 5 976 244 311 905 776
Transactions with owners 186 581 61 990 542 1 487 352 - (1 721 623) 61 942 852
- Issue of shares 181 380 60 647 180 - - - 60 828 560
- Issue cost recognised to equity - (227 209) - - - (227 209)
- Share-based payment reserve - - 2 710 588 - - 2 710 588
- Sale of shares issued under the Initial Share Scheme 1 110 326 324 - - - 327 434
- Sale of shares issued under the Current Share Scheme 530 183 367 (158 795) - - 25 102
- Vesting of shares issued under the Current Share Scheme 3 561 1 060 880 (1 064 441) - - -
Deferred tax (income)/expense (1 708 057) 5 248 690 1 140 933 (1 526 439)
Shares issued cum distribution 1 169 060 3 156 648 1 641 985 1 169 060
Non-distributable portion of the vendor settlement income - (3 144 561) (3 144 561) -
Adjustments related to joint ventures
Unrealised foreign exchange loss - - - (8 061)
Financial assets at fair value - - - (585 377)

Deferred tax income - - - (181 618 )

Distributable earnings for the period 18 902 819 35 342 043 19 818 025 18 902 819
Distribution from reserves 1 691 799 - - 1 691 799

Less: distribution declared (20 594 618) (31 497 562) (14 101 923) (20 594 618) Interim distribution (20 594 618) (14 101 923) (14 101 923) (20 594 618) Final distribution - (17 395 639) - -

Earnings not distributed - 3 844 481 5 716 102 -
Number of shares entitled to distribution 159 277 789 144 362 152 125 461 951 159 277 789
Distributable earnings per share (euro cents) 11.87 25.95 15.80 11.87
Distribution from reserves per share (euro cents) 1.06 - - 1.06

Less: distribution declared per share (euro cents) (12.93) (23.29) (11.24) (12.93) Interim distribution per share (euro cents) (12.93) (11.24) (11.24) (12.93) Final distribution per share (euro cents) - (12.05) - -

Earnings per share not distributed (euro cents) - 2.66 4.56 -
- Earnings distribution - - - - (1 721 623) (1 721 623)
Total comprehensive income - - - 1 048 169 18 725 581 19 773 750

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Unaudited Audited Unaudited

LEASE EXPIRY PROFILE

Total based on rental
Total based on rented
- Other comprehensive income - - - 1 048 169 - 1 048 169
Profit for the period - - - - 18 725 581 18 725 581

Balance at 31 December 2012 - audited 1 352 629 355 026 520 15 491 810 (1 228 783) 22 980 202 393 622 378

Balance at 1 January 2013 1 352 629 355 026 520 15 491 810 (1 228 783) 22 980 202 393 622 378
Transactions with owners 157 751 61 137 248 (1 832 054) - (1 380 259) 58 082 686
- Issue of shares 149 156 58 860 846 - - - 59 010 002
- Issue cost recognised to equity - (598 533) - - - (598 533)
- Share-based payment reserve - - 868 986 - - 868 986
- Sale of shares issued under the Initial Share Scheme 23 182 467 - - - 182 490
- Sale of shares issued under the Current Share Scheme 1 070 343 184 (344 254) - - -
- Vesting of shares issued under the Current Share Scheme 7 502 2 349 284 (2 356 786) - - -
- Earnings distribution - - - - (1 380 259) (1 380 259)
Total comprehensive income - - - - 21 721 056 21 721 056
- Profit for the period - - - - 21 721 056 21 721 056

Balance at 30 June 2013 - unaudited 1 510 380 416 163 768 13 659 756 (1 228 783) 43 320 999 473 426 120

30 Jun 2013 31 Dec 2012 30 Jun 2012

Profit for the period attributable
to equity holders 21 721 056 33 103 449 14 377 868
Other comprehensive income

- currency translation differences - 1 421 739 373 570

Total comprehensive income

for the year 21 721 056 34 525 188 14 751 438

ABRIDGED CONSOLIDATED STATEMENT OF

Unaudited Audited Unaudited

30 Jun 2013 31 Dec 2012 30 Jun 2012

Cash flows from operating activities 10 761 111 25 644 072 19 084 308
Cash flows from financing activities 15 146 601 139 575 360 49 056 325
Cash flows used in investing activities (44 102 854) (132 603 532) (72 805 525)
Net (decrease)/increase in cash and
cash equivalents (18 195 142) 32 615 900 (4 664 892)
Cash and cash equivalents
brought forward 87 511 641 55 065 100 55 065 100
Translation effect on cash and

Year income area

2013 0.2% 0.5%
2014 12.4% 11.4%
2015 18.6% 13.5%
2016 10.2% 7.1%
2017 9.5% 8.2%
2018 9.7% 9.9%
2019 4.8% 4.2%
2020 6.7% 5.3%
2021 2.9% 2.9%

>=2022 25.0% 37. 0%

To tal 10 0% 10 0%

Unaudited Audited Unaudited

30 Jun 2013 31 Dec 2012 30 Jun 2012

Contractual rental income and expense recoveries
Retail 11 101 365 18 567 825 8 691 835
Industrial 975 812 1 893 058 944 358

Office 14 089 394 19 715 918 9 468 548

Facility
Outstanding
Available for
cash equivalents - (169 359 ) ( 651 783)

To tal 26 166 571 40 176 801 19 104 741

Borrower amount amount drawdown Interest rate Hedge

Nepi Bucharest One SRL 6 200 000 6 200 000 - 1M Euribor+4.5% 1M Euribor capped at 2% General Investment SRL 15 000 000 7 238 885 - Fixed at 6.23% - Nepi Bucharest Two SRL and Otopeni Warehouse and Logistics SRL 9 500 000 - 9 500 000 1M Euribor+4% 1M Euribor capped at 2% Premium Portofolio 13 995 000 13 029 749 - Fixed at 5.17% - Promenada Mall Braila 40 000 000 36 766 522 - 3M Euribor+3.0% 3M Euribor swapped at 1.8% Retail Park Pitesti 28 813 000 12 768 961 - 1M Euribor+4.0% 1M Euribor capped at 2% Floreasca Business Park 77 000 000 58 741 444 - 3M Euribor+2.5% 3M Euribor swapped at 1.79% City Business Centre 10 577 586 9 862 916 - 1M Euribor+1.75% 1M Euribor swapped at 1.93% City Business Centre 10 836 177 10 150 466 - 1M Euribor+1.75% 1M Euribor capped at 2% City Business Centre 7 872 995 7 489 202 - 1M Euribor+4.0% 1M Euribor capped at 2% Ploiesti Shopping City 13 500 000 12 298 034 - 3M Euribor+4.5% 3M Euribor swapped at 1.74% Ploiesti Shopping City 5 150 000 2 264 301 - 3M Euribor+2.75% 3M Euribor capped at 2.25% To tal 238 444 758 176 810 480 9 500 000

2017 and

Borrower 2013 2014 2015 2016 beyond To tal

Nepi Bucharest One SRL 6 200 000 - - - - 6 200 000
General Investment SRL 940 248 6 298 637 - - - 7 238 885
Premium Portofolio 166 844 12 862 905 - - - 13 029 749
Promenada Mall Braila 1 077 826 35 688 696 - - - 36 766 522
Retail Park Pitesti 489 821 1 042 071 11 237 069 - - 12 768 961
Floreasca Business Park 58 741 444 - - - - 58 741 444
City Business Centre 614 827 1 265 202 1 314 149 1 365 022 22 943 384 27 502 584

Ploiesti Shopping City 18 4 471 3 002 184 737 882 737 882 9 899 916 14 562 335

To tal 68 415 481 60 159 695 13 289 100 2 102 904 32 843 300 176 810 480

Cash and cash equivalents

carried forward 69 316 499 87 511 641 49 748 425

RECONCILIATION OF PROFIT FOR THE YEAR

Unaudited Audited Unaudited

30 Jun 2013 31 Dec 2012 30 Jun 2012

Profit for the year attributable
to equity holders 21 721 056 33 103 449 14 377 868
Fair value adjustment of investment
property - (6 450 485) -
Gain on disposal of investment

property held for sale (527 258) - -

Headline earnings 21 193 798 26 652 964 14 377 868

RECONCILIATION OF NET ASSET VALUE

Unaudited Audited Unaudited

30 Jun 2013 31 Dec 2012 30 Jun 2012

Adjusted net asset value 493 333 163 415 243 794 329 492 038
Net asset value per the Statement
of financial position 473 426 120 393 622 378 311 905 776
Loans in respect of the Initial Share
Scheme 12 482 706 12 489 022 12 587 502
Deferred tax liabilities 24 750 041 22 321 189 18 937 397
Goodwill (17 325 704) (13 188 795) (13 938 637)
Net asset value per share 3.07 2.83 2.59
Adjusted net asset value per share 3.10 2.88 2.63
Number of shares for net asset value
per share purposes 154 174 551 139 258 914 120 247 714
Number of shares for adjusted net
Profit before net finance expense
Retail 7 962 334 19 067 337 5 254 523
Industrial 801 956 1 501 942 755 542
Office 10 155 802 12 012 525 5 675 108

Corporate 1 485 636 18 344 586 10 781 237

To tal 20 405 728 50 926 390 22 466 410

BASIS OF PREPARATION

These unaudited condensed consolidated interim financial results for the six months ended

30 June 2013 have been prepared in accordance with the recognition and measurement criteria of the International Financial Reporting Standards ("IFRS") and its interpretations adopted by the International Accounting Board ("IASB"), specifically IAS34 "Interim Financial Reporting".

The accounting policies which have been applied are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2012, with the following exceptions:

- As a result of the adoption of IFRS 11 "Joint Arrangements" effective 1 January 2013,

the Group is now accounting for its investments in joint ventures under the equity method. The Group has restated the presentation of the Statement of Financial Position and Statement of Income starting 1 January 2012, which previously included joint ventures accounted for under the proportionate consolidation method.

- The Group has changed the functional currency to Euro effective 1 January 2013. According to

IFRS, previously issued financial statements are not restated in this respect.

As the Group is focusing on being consistent on those areas of reporting that are seen to be of most relevance to investors and on providing a meaningful basis of comparison for users of the financial information, it has prepared an unaudited pro forma statement of financial position as at 30 June 2013 and unaudited pro forma statement of income for the six months ended

30 June 2013. The main difference between the unaudited pro forma statements and the unaudited condensed consolidated interim financial results prepared in accordance with IFRS is that the unaudited pro forma statements are prepared using the proportionate consolidation method for the investments in joint ventures, consistent with financial statements prepared in accordance with IFRS reported in prior periods.

The unaudited pro forma statement of financial position and the unaudited pro forma statement of income have been prepared by and are the responsibility of the directors of NEPI.

Due to its nature, the unaudited pro forma statements of financial position and income may not fairly reflect the financial position and results of the Group after the differences set out above. The condensed consolidated interim financial results are prepared in accordance with IFRS and

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asset value per share purposes 159 277 789 144 362 152 125 461 951

have not been reviewed or reported on by the Group's external auditors.

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