EPP N.V. - Short-form condensed consolidated financial statements for the six months ended 30 June 2019

Short-form condensed consolidated financial statements for the six months ended 30 June 2019

EPP N.V. (Incorporated in The Netherlands) 
(Company number 64965945)
JSE share code: EPP 
ISIN: NL0011983374
LEI code: 7245003P7O9N5BN8C098
("EPP" or "the company" or "the group")


SHORT-FORM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2019


Registered office 
Rapenburgerstraat 175 M
1011VM Amsterdam
The Netherlands

JSE sponsor 
Java Capital
6A Sandown Valley Crescent
Sandton
2196

FINANCIAL HIGHLIGHTS
Net property income up 8.5% to EUR71.8 million (June 2018: EUR66.2 million)
Distributable earnings up 9% to EUR52.6 million (June 2018: EUR48.3 million)
Distribution per share flat at EUR5.80 cents (June 2018: EUR5.82 cents)
Total investment properties and joint ventures increased to 
EUR2.46 billion up 6% (December 2018: EUR2.34 billion)
LTV reduced to 49.8% (December 2018: 51.9%)
NAV per share EUR1.33 (December 2018: EUR1.35)

OPERATIONAL HIGHLIGHTS
Footfall up 2%
Tenant sales up 6%
Successfully acquired tranche 2 of the M1 portfolio, adding 141 000 m2
Flagship Galeria Mlociny opened May 2019 - first entry into the lucrative retail market
Disposal of 70% share in 86 000 m2 GLA offices and formation of JV partnership

This short-form announcement is the responsibility of the directors and is 
only a summary of the information in the full announcement and does not 
contain full or complete details. The full announcement is available on the 
JSE website at https://senspdf.jse.co.za/documents/2019/jse/isse/EPPE/interims19.pdf 
and on the company website at https://www.epp-poland.com/s,91,financial-statements.html. 
Copies of the full announcement may also be requested at the company's registered 
office and at the office of the sponsor, Java Capital, at no charge, during 
office hours from Friday, 6 September 2019 to Friday, 13 September 2019. Any 
investment decision should be based on the full announcement published on the 
JSE and company websites.

EPP is one of the leading owners of retail space in Poland. At 30 June 2019 
the company manages a portfolio of 24 retail centres and six high-quality 
offices located in the majority of regional cities in Poland. In addition to 
these income-generating properties, EPP owns the Towarowa 22 development in 
Warsaw. The flagship Warsaw development Galeria Mlociny successfully opened 
in May 2019. By the end of 2020 EPP expects to own 28 shopping centres post 
the conclusion of the final tranche of the M1 transaction.

The net profit for the period amounted to EUR34.4 million and distributable 
income totalled EUR52.7 million. Net asset value ("NAV") excluding deferred 
tax amounted to EUR1 208.6 million equating to an NAV per share of EUR1.33. 
The net loan-to-value ratio as of 30 June 2019 was 49.8%.

Prospects
EPP has a quality portfolio of dominant retail properties complemented by 
high-quality office properties. The company remains focused on integrating 
its recent acquisitions into the portfolio, exploring asset management 
opportunities and implementing its asset recycling strategy. The Polish 
economy continues to perform well and the current property fundamentals 
remain favourable.

The EPP board of directors remains confident that EPP will deliver on its 
previously stated full-year distribution per share guidance of flat or better.

                                                          HY2019       HY2018
Rental income and recoveries     EUR'000                 101 194       92 449
Net operating profit             EUR'000                  64 248       59 249
Profit from operations           EUR'000                  73 007       88 051
Profit for the period            EUR'000                  34 428       79 399
HEPS                             EUR cents per share         3.0          6.4
EPS                              EUR cents per share         4.0         10.0
Dividend distribution            EUR cents per share        5.80         5.82
                                                                     
                                                         30 June  31 December
                                                            2019         2018
Investment properties            EUR million               2 294        2 202
Investment in JVs                EUR million                 170          139
Net asset value excluding 
deferred tax                     EUR million               1 209        1 118
Net asset value per share        EUR                        1.33         1.35
Loan-to-value net                %                          49.8         51.9

Dividend
The board has declared an interim dividend of EUR5.80000 cents per ordinary 
share for the six months ended 30 June 2019.

A further announcement informing shareholders of the salient dates and tax 
treatment of the dividend will be released in due course.

6 September 2019

www.epp-poland.com
Date: 06/09/2019 07:05:00
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