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Quarterly Update Announcement - Suspension
AREIT PROP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2021/837953/06)
(“aReit Prop” or “the Company”)
ISIN Code: ZAE000306585 | JSE Code: APO
QUARTERLY UPDATE ANNOUNCEMENT - SUSPENSION
In terms of paragraph 1.11(c) of the JSE Listings Requirements, the Company is required to provide
shareholders with an update regarding the current state of affairs of the Company until the
suspension of its listing is lifted.
Audits and Annual Financial Statements
The Company has approached RB Reece and HLB CMA SA Inc. (“HLB”) to request proposals for
the audit committee. RB Reece has recently undergone an IRBA review, the outcome of which is
still awaited and an updated proposal should be received thereafter.
The Company has also provided HLB with the information to enable a quotation to be prepared.
This matter remains in progress.
The annual financial statements ("AFS") for the financial years ended 31 December 2023 and
31 December 2024 have been prepared, pending any required audit adjustments arising from the
audit of the 2023 AFS. Preparation of the Company's financial information for the year ended
31 December 2025 is in progress.
Operations
The Cresta Hotel is performing well, with the Company earning variable income.
As previously advised, the lease of the Lady Hamilton has changed from medical suites to student
accommodation, mainly servicing international students for whom the location is ideal. The site is
performing better as student accommodation.
The dispute with a significant tenant around maintenance of air conditioning units, the normal
maintenance of which is required by the tenant in terms of the lease is ongoing. The tenant is
requesting replacement of air conditioners, which were new on signing of the lease. The tenant
has been withholding lease payments. External legal advice has been obtained, and the
Company is evaluating the potential impact of the matter on its financial reporting. At this stage,
the dispute is not expected to cause any negative financial impact as the lease conditions are
clear and the Company has a parent guarantee.
General
The Board continues to evaluate strategic alternatives available to the Company while
progressing the steps required to restore compliance with the JSE Listings Requirements. Where
appropriate, and should any developments become disclosable in accordance with the JSE
Listings Requirements, shareholders will be advised in due course.
The Board will also be considering the potential delisting of the Company but will only take this
decision once the financial reporting has been brought up to date. This consideration is partly
due to the technical IFRS® accounting treatment and associated costs, versus what should be a
simple business model of four invoices per month in terms of the four lease agreements plus
variable income, less listing expenses. A further consideration is the loss of REIT status due to the
late financial statements, which has tax implications for the Company.
The Company will become compliant with the JSE Listings Requirements once it has published its
audited annual financial statements for the financial years ended 31 December 2023,
31 December 2024 and 31 December 2025, distributed the corresponding annual reports to
shareholders, published its interim results for the six months ended 30 June 2024, 30 June 2025 and
30 June 2026.
The Board remains committed to restoring compliance with the JSE Listings Requirements and will
continue to provide shareholders with quarterly updates until the suspension is lifted.
BY ORDER OF THE BOARD
Cape Town
14 October 2026
Sponsor
AcaciaCap Advisors Proprietary Limited
Date: 14/10/2026 02:33:00
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