Secure Property Development & Investment : - – RNS Final Results 2019

Secure Property Development & Invest PLC/ Index: AIM / Epic: SPDI / Sector: Real Estate

30 September 2020

Secure Property Development & Investment PLC ('SPDI' or 'the Company')

2019 Annual Results and Interim Reporting Timetable

Secure Property Development & Investment PLC, the AIM quoted South Eastern European focused property company, is pleased to announce its full year audited financial results for the year ended 31 December 2019.

As announced on 11 June 2020, the Company was granted by AIM Regulation an additional period of up to three months to publish its annual audited accounts for the year ended 31 December 2019. The three-month extension allowed the site visits required to carry out property valuations as part of the annual audit to take place. These were previously unable to take place due to COVID-19 and the associated lockdowns in the respective countries. The lockdowns had also affected the annual audit with accountants and auditors in all related countries (Romania, Bulgaria, Ukraine, Cyprus) working from home.

Operational Highlights

Successfully executing strategy to realise value of South Eastern European property portfolio:

1. ~€2.0m cash generated net to SPDI following profitable sale of the Victini Logistics asset in Greece

1. Completion of Stage 1 of all share sale of property portfolio (excl Greek logistics property) to Arcona Property Fund N.V. (Arcona), an Amsterdam and Prague listed company which invests in commercial property in Central Europe
   o Arcona transaction values the SPDI assets to be sold at ~ €29m, or 3,2 times the current market value of the Company as a whole
   o The combination of the SPDI and Arcona asset portfolios is expected to create a significant European focused property company
   o Stage1 involved exchange of two land plots in Ukraine, Bella and Balabino plots, and the Boyana asset in Bulgaria together with its existing debt, for a total of 593.534

Arcona shares and 144.264 warrants over Arcona shares

1. Number of income-producing commercial properties in portfolio currently stands at four 10% increase in average occupancy rate of income producing assets to 93%

Financial Highlights

Significant asset backing behind the Company:

1. NAV per share stood at GBP 0.2 as at 31 December 2019 - current share price trading at a ca. 67% discount to NAV per share

For further information please visit www.secure-property.euor contact:

Notes to Editors

Secure Property Development and Investment plc is an AIM listed property development and investment company focused on the South East European markets. The Company's strategy is focused on generating healthy investment returns principally derived from: the operation of income generating commercial properties and capital appreciation through investment in high yield real estate assets. The Company is focused primarily on commercial and industrial property in populous locations with blue chip tenants on long term rental contracts. The Company's senior management consists of a team of executives that possess extensive experience in managing real estate companies both in the private and the publicly listed sector, in various European countries.

Charmain Statement

During 2019, the favorable fundamentals of our target markets continued to prevail, with Romania continuing its leading growth within the EU, and with Greece electing a new government and continuing a path to recovery and economic growth. The property markets in our region continued to experience growth and yield compression, underpinning our effort to merge with Arcona Property Fund ("APF"), the Central European property fund listed in Amsterdam. To effect the Stage 1 of the APF transaction, SPDI accepted a discount to the NAV of the transferred assets, which, even though it is to be compensated by the APF warrants received when they are exchanged with shares caused much of SPDI's financial losses for 2019, yet when the global COVID-19 pandemic hit global economies in early 2020, we found ourselves well protected, as our tenants in the food and telecom industries were mostly untouched during the crisis. Throughout this period, SPDI has continued to pursue the APF transaction, although at a slower pace not only because of the pandemic but also due to increased difficulties faced by APF. In any case, the Company's management and board are committed to generating value for our shareholders in markets that are strong and growing and, no matter the temporary difficulties, will attempt to do whatever is necessary to realise that end.

Michael Beys

Chairman of the Board

1. Letter to Shareholders

29 September 2020

Dear Shareholders,

2019 was the year when the merger with the Amsterdam and Prague listed Arcona Property Fund N.V. (APF - with assets in Poland, Czech Republic and Slovakia) would have been finalised confirming SPDI's strategy to establish itself as the regional property company of reference in South Eastern Europe and offering to our shareholders exposure to a much larger and broader East European regional property company, as per our original plan. As the European and more specifically the regional economies and related property markets where SPDI is present continued their respective growth trends, SPDI commenced 2019 with the plan of having executed the transaction already in the first half of the year. Unfortunately the complication of joining forces in six different jurisdictions with corporate entities in two additional jurisdictions, proved an obstacle difficult to overcome and the end of the year found SPDI and APF having barely closed one sixth of the transaction, with yet one more sixth being almost concluded in the first half of 2020. As the APF transaction extended itself throughout 2020, with legal advisors from nine different jurisdictions being involved, it was further affected by the COVID-19 related citywide lockdowns, as well as certain APF specific issues.

In 2019, Romania continued being the fastest growing economy of the European Union and saw property prices continue rising across all sectors, facilitating our residential sales at rising prices confirming our choice not to have gone all out on selling such assets in prior years. At the same the Greek economy started growing following years of recession and driven by a new pro- business government. Consequently, we disposed of our Athens logistics terminal, as this property was not included in the APF deal.

During 2019 our leaner, more agile Board of Directors, went the extra mile (with almost biweekly meetings) in guiding the company to affect the APF transaction and shape SPDI's strategy towards concluding such. Management is confident that, with such commitment, support and involvement from all its non-executive directors, as well as members of its Advisory Board, who have taken the lead in negotiating with APF management and pushing the transaction forward, the successful end for SPDI and its shareholders is near ensuring thus the transformation of our Company.

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