Contents. Chairman s Statement 1 3. Independent Review Report to Puma Brandenburg Limited 4

Transcription

1 Puma Brandenburg Limited Interim Report

2 Contents Chairman s Statement 1 3 Independent Review Report to Puma Brandenburg Limited 4 Unaudited Condensed Consolidated Statement of Comprehensive Income 5 Unaudited Condensed Consolidated Statement of Financial Position 6 Unaudited Condensed Consolidated Statement of Changes in Equity 7 Unaudited Condensed Consolidated Statement of Cash Flows 8 Notes to the Interim Financial Report 9 16 Officers and Professional Advisers inside back cover 2 Puma Brandenburg Limited Interim Report 2014

3 Chairman s Statement Introduction I am pleased to announce the interim results for the six months ended 30 September Financial Results Revenue in the period was 16.9m (FY2014 H1: 16.1m) reflecting rent increases across the Group s Berlin properties along with turnover rent received from the Hyatt Regency Cologne hotel. Profit after tax for the period was 4.1m (FY2014 H1: 4.7m). The reduction in profit after tax was driven by a fair value adjustment on the Group s hedges as a result of the closure of a swap, at a swap break cost of 0.8m when the Group extended the FMSW debt and changes over the relevant period in the interest rate curve. The period end balance sheet comprised investment properties of 525.3m (FY2014 H1: 484.7m) after sales of 0.4m, cash of 13.6m (FY2014 H1: 18.9m) and debtors and other assets of 4.0m (FY2014 H1: 4.4m). Loan obligations outstanding including accrued interest were 343.3m (FY2014 H1: 346.7m). The Company s net asset value at the end of the period was 185.2m (FY2014 H2: 182.5m; FY2014 H1: 146.7m). This is inclusive of a notional liability, required under accounting standards of 7.7m (FY2014 H1: 7.5m) associated with the fair value of the interest rate swaps entered into by subsidiaries of the Company. This does not impact the cash position of the Company and the liability unwinds to nil as the swaps reach maturity. Property Report As at 30 September 2014, the Company s real estate portfolio comprised 3,077 residential apartments, 205 commercial units and 7,208 car parking spaces in aggregate. All the properties are freehold and the following tables analyse the portfolio s composition by use and by geography. Split by type % by value sq m Berlin residential ,422 Other residential 0.4 6,375 Retail ,448 Hotel ,526 Office ,781 Other Commercial , ,561 Location % by value sq m Berlin ,326 Cologne ,063 Other locations in Germany , ,561 The residential portfolio is predominantly focused on central areas of Berlin including Berlin-Mitte, Charlottenburg and Neukölln. The Group also owns a number of commercial properties. These include the 306 room, 5-star Hyatt hotel in Cologne, an Ibis hotel in central Nuremberg, an office building in Pohlstrasse, Berlin and 45 out of town retail units let to Lidl in various locations across Germany comprising 55,000 square metres. Property Management Residential Following rent increases in the Berlin residential portfolio, and boosted by the furnished apartments programme, the average residential rent has risen to 7.26 per square metre from 6.91 over the last 12 months. This is in addition to an increase in rents applied to the residential estate at Neukölln in August 2014 which has generated an additional 26k per month. Commercial The Hyatt Regency Hotel in Cologne has Puma Brandenburg Limited Interim Report

4 Chairman s Statement continued continued to perform very well, retaining its position as the market leader among luxury hotels in the city. As previously reported, as part of a new 20 year lease signed in June 2014, we will be working with Hyatt to reconfigure and enlarge conference and food and beverage facilities. These works, to be part funded by the Hyatt, are expected to commence in At Stade where the Group also owns a hotel, a lease extension was signed in June The new lease runs to 2029 and building works to add a further seven hotel rooms were completed in October The tenant is also undertaking an extensive renovation of the existing hotel facilities which will be jointly funded by the Group and the tenant, with the Group s contribution being capped. At the neighbouring town of Buxtehude, close to Hamburg, the Group signed a new 20 year lease with the Lower Saxony Police Department. The capital expenditure programme associated with the required technical specification is well underway and is expected to be completed in the spring of this year. Lidl have also completed refurbishments at 13 Lidl stores as part of a framework agreement which provides for 10 year lease extensions at the refurbished stores in return for us funding the renovation expenditure up to an agreed level. We look forward to continuing to work with Lidl on further store renovations in 2015 and Financing As at 30 September 2014, the Company had bank borrowings of 340.4m (FY2014 H1: 341.9m). As previously reported, the Company has concluded the following facilities during the period: A 64m facility was drawn down from Berlin-Hannoversche Hypothekenbank AG, a 100% subsidiary of Landesbank Berlin ( LBB ) to refinance the Sonnensiedlung properties at Neukölln. This facility refinanced a portion of the Deutsche Bank loan which matured at the end of April The new facility is for a seven year term from the end of April 2014, with amortisation at 2% per annum and at a fixed interest rate of 3.98%. 2 Puma Brandenburg Limited Interim Report 2014

5 The balance of the Deutsche Bank facility was refinanced with Landesbank Baden- Wuerttemberg ( LBBW ). The properties to which this loan relates, are primarily located in central Berlin and are mainly concentrated in Mitte and Wilmersdorf. This new facility is also for a seven year term from April 2014, with amortisation at 1.5% per annum and at an estimated all-in interest rate of 3.619%. This comprises a swap of 1.769% and a margin of 1.85%. In August 2014, the Company extended the maturity of a facility of 88.3m with FMS Wertmanagement, extending the loan to 30 June From September 2014 the loan margin was reset at 2.50%. An interest rate fix on 58.3m of the loan was set at 0.13% with the balance on a floating rate of interest. Post Balance Sheet Events Capital Expenditure facility A capital expenditure loan facility for 2m was signed with LBBW in November 2014 which allows for the drawing of funds until September The loan margin was set at 1.85% and interest will be calculated on the basis of either one month or three month euribor. The facility will be used to partially finance the renovation of the façade of a building at Kurfürstenstrasse in Mitte, Berlin. Property Sales/acquisition Since the period end we have notarised the sale of two mixed use buildings in the Northern portfolio at an aggregate sales price of 1.73m. This compares with the latest balance sheet valuation of 1.72m. In December 2014 we notarised the acquisition of a residential property located in Charlottenburg in Berlin at an all in cost of c. 3.75m. The property is in a wealthy, established suburban location with excellent condominiumisation characteristics. Gernot von Grawert-May Chairman 4 February 2015 Puma Brandenburg Limited Interim Report

6 Independent Review Report to Puma Brandenburg Limited Introduction We have been engaged by the Group to review the condensed set of consolidated interim financial statements for the period from 1 April 2014 to 30 September 2014 which comprises the entity s consolidated statement of financial position, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated cash flow statement and related explanatory notes that have been reviewed. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the financial information. This report is made solely to the Group in accordance with guidance contained in ISRE 2410 (UK and Ireland) Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Group, for our work, for this report, of for the conclusion we have formed. Directors responsibilities The directors are responsible for the preparation and presentation of this condensed set of consolidated interim financial information in accordance with International Accounting Standard 34, Interim financial reporting as adopted by the European Union. Our responsibility Our responsibility is to express a conclusion on this condensed set of consolidated interim financial information based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope that an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Review conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed set of consolidated interim financial statements for the period from 1 April 2014 to 30 September 2014 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union. Grant Thornton Limited St Peter Port Guernsey, Channel Islands 5 February Puma Brandenburg Limited Interim Report 2014

7 Unaudited Condensed Consolidated Statement of Comprehensive Income for the six months ended 30 September 2014 Six months ended 30 September 2014 Six months ended 30 September 2013 Note Revenue 16,889 16,063 Operating expenses (2,226) (2,205) Gross profit 14,663 13,858 Administrative expenses (2,631) (2,334) Foreign exchange loss (270) (33) Operating profit 11,762 11,491 Finance income Interest costs (6,181) (7,718) Financing costs (148) (130) Fair value adjustment on investment properties 5 Fair value adjustment on derivative financial instruments (1,083) 1,272 Gain on disposal of investment properties Profit before tax for the period from continuing operations 4,567 5,102 Taxation 3 (470) (418) Profit after tax for the period from continuing operations 4,097 4,684 Attributable to: Equity holders of the parent company 4,097 4,684 Non-controlling interest 4,097 4,684 Earnings per A Ordinary Share Cents Cents Basic and diluted * Other comprehensive income Profit after tax for the period from continuing operations 4,097 4,684 (Loss)/gain on cash flow hedges recognised directly in equity (1,434) 4,172 Total comprehensive income 2,663 8,856 Attributable to: Equity holders of the parent company 2,663 8,856 Non-controlling interest 2,663 8,856 Comprehensive Earnings per Ordinary Share Cents Cents Basic and diluted * The results shown above all relate to the continuing operations of the Group. The accompanying notes on pages 9 to 16 form an integral part of the financial statements. * adjusted to reflect the share reorganisation that took place in February Puma Brandenburg Limited Interim Report

8 Unaudited Condensed Consolidated Statement of Financial Position as at 30 September September 2014 Unaudited 31 March 2014 Audited 30 September 2013 Unaudited Assets Notes Non-current assets Investment properties 5 525, , ,720 Current assets Trade and other receivables 3,981 6,786 4,393 Cash and cash equivalents 13,560 15,597 18,944 17,541 22,383 23,337 Total assets 542, , ,057 Liabilities Current liabilities Trade and other payables 2,306 2,595 2,951 Interest-bearing loans and borrowings 13,209 10,240 6,482 Derivative financial instruments 7,695 6,008 7,535 Current taxes ,903 19,492 17,444 Non-current liabilities Interest-bearing loans and borrowings 330, , ,167 Deferred taxes 3,652 3,316 3, , , ,875 Total liabilities 357, , ,319 Net Assets 185, , ,738 Equity Capital and reserves Share capital 6 Merger reserve 5,531 5,531 5,531 Retained earnings 97,742 93,645 59,149 Hedge reserves (7,237) (5,803) (7,532) Other distributable reserves 89,134 89,134 89,573 Equity attributable to owners of the parent 185, , ,721 Non-controlling interest Total capital and reserves 185, , ,738 Euros per share Euros per share Euros per share Net asset value per A Ordinary Share * The accompanying notes on pages 9 to 16 form an integral part of the financial statements. * adjusted to reflect the share reorganisation that took place in February Puma Brandenburg Limited Interim Report 2014

9 Unaudited Condensed Consolidated Statement of Changes in Equity for the six months ended 30 September 2014 Merger reserve Retained earnings Hedge reserves Other distributable reserves Total attributable to the Group Noncontrolling interest Total Balance as at 1 April ,531 54,465 (11,704) 89, , ,882 Profit for the period 4,684 4,684 4,684 Gain on cash flow hedges recognised directly in equity 4,172 4,172 4,172 Balance as at 30 September ,531 59,149 (7,532) 89, , ,738 Profit for the period 34,496 34,496 34,496 Gain on cash flow hedges recognised directly in equity 1,729 1,729 1,729 Repurchase / cancellation of own shares (439) (439) (439) Balance as at 31 March ,531 93,645 (5,803) 89, , ,524 Profit for the period 4,097 4,097 4,097 Loss on cash flow hedges recognised directly in equity (1,434) (1,434) (1,434) Balance as at 30 September ,531 97,742 (7,237) 89, , ,187 The accompanying notes on pages 9 to 16 form an integral part of the financial statements. Puma Brandenburg Limited Interim Report

10 Unaudited Condensed Consolidated Statement of Cash Flows for the six months ended 30 September 2014 Notes Six months ended 30 September Six months ended 30 September Cash flows from operating activities Operating profit 11,762 11,491 Adjustments for: Decrease in trade and other receivables 2,805 1,906 Decrease in trade and other payables (289) (409) Cash generated by operations 14,278 12,988 Tax paid (90) (301) Net cash inflow from operating activities 14,188 12,687 Cash flows from investing activities Capital expenditure on investment properties 5 (6,315) (1,654) Proceeds on disposal of investment property Finance income received Net cash outflow from investing activities (5,948) (1,111) Financing activities Interest paid (6,886) (7,667) Financing costs paid (1,005) (446) (Outflow) / Proceeds from close out of derivative (830) 260 Proceeds from loans received 137,100 Loan repayments made (138,656) (1,499) Net cash outflow from financing activities (10,277) (9,352) (Decrease) / increase in net funds (2,037) 2,224 Cash and cash equivalents at beginning of period 15,597 16,720 Cash and cash equivalents at end of period 13,560 18,944 The accompanying notes on pages 9 to 16 form an integral part of the financial statements. 8 Puma Brandenburg Limited Interim Report 2014

11 Notes to the Interim Financial Report For the six months ended 30 September General Puma Brandenburg Limited ( PBL or the Company ) is a limited liability company incorporated and domiciled in Guernsey, Channel Islands. PBL s primary objective is to generate income and capital growth by acquiring, actively managing and selling residential, commercial and mixed use real estate. 2. Principal accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are consistent with those followed in the preparation of the Group financial statements for the period ended 31 March These policies have been consistently applied to the period presented, unless otherwise stated. Basis of preparation These condensed set of consolidated financial statements have been prepared in accordance with International Accounting Standard 34: Interim Financial reporting on the historical cost basis, except for the revaluation of investment properties and certain financial instruments. The condensed set of consolidated interim financial information should be read in conjunction with the audited consolidated financial statements of the Group for the period ended 31 March 2014, which have been prepared in accordance with the International Financial Reporting Standards ( IFRS ), as adopted by the European Union. Management had exercised their judgement in the process of applying the Group s accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgement or complexity include the assessment of the fair value of investment properties and financial instruments as described below. The fair value of the Group s investment properties is a directors valuation based on the most recent external valuation carried out by professional valuers and adjusted for subsequent sales and capital expenditure. The valuation is based upon assumptions including future rental income, anticipated maintenance costs and appropriate discount rates (see Note 5). The Group s interest rate derivatives are shown in these accounts at fair value as derived by their respective issuers based on market prices, estimated future cash flows and forward rates as appropriate. Basis of consolidation These condensed set of consolidated interim financial statements comprise the financial statements of PBL and its subsidiaries ( the Group ). A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Accounting policies of subsidiaries are consistent with the policies adopted by the Group. The subsidiaries have the same year end as the parent. Puma Brandenburg Limited Interim Report

12 Notes to the Interim Financial Report continued For the six months ended 30 September Principal accounting policies (continued) Revenue Rental income from investment properties under operating leases is recognised on a straightline basis over the term of the relevant lease. Interest income and expense is recognised on an effective interest rate basis and is included in finance income and finance costs respectively. Leases in which a significant portion of the risks and rewards of ownership are retained by another party, the lessor, are classified as operating lease. Payments, including prepayments, made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight line basis over period of the lease. Service charges Service charge revenue and related recharges are recognised in the accounting period in which the services are rendered and are presented separately in the consolidated statement of comprehensive income where the Group acts as principal and bears the risks and rewards of the transactions. Investment properties Investment properties are initially recognised at cost, including transaction costs associated with the acquisition of the investment property. The Group currently has no properties under construction. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the statement of financial position date. Gains or losses arising from changes in the carrying values of investment properties are included in the consolidated statement of comprehensive income in the period in which they arise. If this information is not available the Group uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow projections. Valuations are performed as at the financial year end by professional valuers who hold recognised and relevant professional qualifications and recent experience in the location and category of the investment being valued. When an investment property is sold, the gain or loss is determined by the net sales proceeds less the carrying value and is recognised directly in the consolidated statement of comprehensive income. Cash and cash equivalents Cash and cash equivalents are defined as cash in hand, demand deposits, and highly liquid investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Foreign currency The functional and presentation currency of the subsidiaries is the Euro. The presentation currency of the Group is the Euro. Transactions in currencies other than the functional currency are recorded using the exchange rate at the transaction date. Foreign currency monetary assets and liabilities are translated at the rate prevailing at the balance sheet date. All differences are taken to the consolidated statement of comprehensive income. 10 Puma Brandenburg Limited Interim Report 2014

13 2. Principal accounting policies (continued) Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the rates at the date when the fair value was determined. Hedge Accounting For the purpose of hedge accounting, hedges are classified as: (i) fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognised firm commitment; or (ii) cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast (iii) hedges of a net investment in a foreign operation. For cash flow hedges, the effective portion of the gain or loss on the hedging instrument is recognised directly in equity, while the ineffective portion is recognised in the consolidated statement of comprehensive income. Amounts taken to equity are transferred to the consolidated statement of comprehensive income when the hedged transaction affects the consolidated statement of comprehensive income, such as when a forecast sale or purchase occurs. Current and deferred income tax The tax expense for the period comprises current and deferred tax. Tax is recognised in the consolidated statement of comprehensive income, except to the extent that it relates to items recognised directly in equity. In this case, the tax is also recognised in equity. Current income tax The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financial position date in countries where the Company s subsidiaries generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred income tax Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except: (i) where a temporary difference arises from the initial recognition of an asset/liability where there is no initial impact on the profit & loss account or taxable profits, and the transaction is not a business combination; and (ii) where a temporary difference arises from the initial recognition of goodwill arising on a business combination; and (iii) where a temporary difference arises from an investment in subsidiaries, branches, associates or joint ventures where the investor has control over the timing of the reversal and it is probable that the temporary difference will not reverse in the foreseeable future. Puma Brandenburg Limited Interim Report

14 Notes to the Interim Financial Report continued For the six months ended 30 September Principal accounting policies (continued) Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply to the year when the related asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the year end date. Trade and other payables Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method. Trade and other receivables Trade receivables are measured at fair value, less provision for impairment. A provision for impairment of a trade receivable is established where there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivable. The amount of the provision is the difference between the asset s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Bank loans and borrowings All bank loans and borrowings are initially recognised at fair value, less issue costs where applicable. After initial recognition, all interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any discount or premium on settlement. Borrowing costs are charged to the consolidated statement of comprehensive income on an effective interest basis. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the date of the statement of financial position. Derivative financial instruments The Group uses interest rate swap derivatives to help manage its interest rate risk. The Group does not hold derivatives for trading purposes. Derivatives are initially recognised at fair value. The gain or loss on re-measurement to fair value is recognised immediately in the consolidated statement of comprehensive income unless the derivatives qualify for hedge accounting, in which case recognition depends on the nature of the item being hedged. Where a derivative is designated as a hedge of the variability of a highly probable forecasted transaction, i.e. an interest payment, the element of the gain or loss on the derivative that is an effective hedge is recognised directly in equity and as Other Comprehensive Income. When the hedge of a forecasted transaction subsequently results in the recognition of a financial asset or a financial liability, the associated gains or losses that were recognised directly in equity are reclassified to profit and loss in the same period or periods during which the asset acquired or liability assumed affects Statement of Comprehensive Income, i.e. when interest income or expense is recognised. The gain or loss on any ineffective element of any hedge is recognised in the Statement of Comprehensive Income immediately. 12 Puma Brandenburg Limited Interim Report 2014

15 2. Principal accounting policies (continued) Share Capital Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Where any group company purchases the company s equity share capital, the consideration paid, including any directly attributable incremental costs is deducted from equity attributable to the company s equity holders until the shares are cancelled. 3. Taxation The Company is subject to Guernsey income tax at the standard rate of 0%. The Company s subsidiaries, Luxembourg and Dutch entities, are subject to German income tax on income arising from the investment properties, after the deduction of allowable debt financing costs, allowable expenses and capital allowances. The interim period income tax expense is accrued using the tax rate that would be applicable to the expected total annual taxable earnings which is % for German income tax. 4. Earnings per A Ordinary Share The calculation of basic and diluted earnings per share is based on the following data: Earnings Six months ended 30 September Six months ended 30 September Earnings for the period 4,097 4,684 Comprehensive earnings for the period 2,663 8,856 Number of shares Weighted average number of A Ordinary Shares for the purpose of basic and diluted earnings per share 23,193,000 23,383,218* * adjusted to reflect the share reorganisation that took place in February The weighted average number of shares has been calculated effective from 1 April There were no convertible instruments in existence at 30 September 2014 and therefore the diluted earnings per share does not differ from the basic earnings per share. Puma Brandenburg Limited Interim Report

16 Notes to the Interim Financial Report continued For the six months ended 30 September Investment properties Six months to 30 September 2014 Six months to 31 March 2014 Six months to 30 September Fair value of investment properties brought forward 519, , ,422 Capital additions 6,315 3,350 1,654 Proceeds on disposal of investment properties (355) (522) Gain on disposal on investment properties Fair value revaluation 30,960 Fair value of investment properties at end of period 525, , ,720 Investment properties comprise properties acquired by the Group to earn rental income and for capital appreciation. Investment properties are measured at fair value, which has been determined based on valuations performed by Jones Lang LaSalle, Wüest & Partner and CBRE as at 31 March 2014, in accordance with International Valuation Standards. The valuation is based upon assumptions including future rental income, anticipated maintenance costs and appropriate discount rates. In accordance with industry standards, the valuation does not take account of purchaser costs. The Directors consider that this appraisal, adjusted to reflect sales and capital expenditure spent during the period, continues to be an appropriate valuation as at 30 September The valuation of investment property is inherently difficult due to the individual nature and circumstance of each property. The valuations will not necessarily reflect the actual sale price, even if a sale were to occur shortly after the valuation date. Substantially all revenue as disclosed in the condensed consolidated statement of comprehensive income comprises rental income from investment properties. 6. Share capital Six months to 30 September 2014 Six months to 30 September 2013 Issued share capital Number 000 Number 000 A Ordinary Shares of no par value Balance at start of period 23,193, ,832,186 Issued / (redeemed) during period Balance at end of period 23,193, ,832,186 B Ordinary Shares of no par value Balance at start of the period 23,192, ,832,186 Issued / (redeemed) during the period Balance at end of period 23,192, ,832, Puma Brandenburg Limited Interim Report 2014

17 6. Share capital (continued) The A Ordinary Shares shall entitle the holders thereof to the following rights: a) as regards dividends: the holders of the A Ordinary Shares shall not be entitled to receive any dividends; b) as regards capital: on a return of assets on a liquidation, reduction of capital or otherwise, the holders of A Ordinary Shares shall be entitled in respect of their A Ordinary Shares to share in the surplus assets of the Company which remain after payment of its liabilities; and c) as regards voting: in general meetings each holder of A Ordinary shares shall be entitled to receive notice of, and to attend and vote at, general meetings of the Company in accordance with the terms of the Company s articles of incorporation from time to time. The B Ordinary Shares shall entitle the holders thereof to the following rights: a) as regards dividends: the holders of the B Ordinary Shares shall be entitled to receive all dividends that are available for distribution; b) as regards capital: on a return of assets on a liquidation, reduction of capital or otherwise, the holders of B Ordinary Shares shall not be entitled in respect of their B Ordinary Shares to share in the surplus assets of the Company which remain after payment of its liabilities; and c) as regards voting: in general meetings each holder of B Ordinary shares shall be entitled to receive notice of, and to attend but shall not be entitled to vote at, general meetings of the Company. 7. Net asset value per A Ordinary Share Net assets attributable to equity holders of the Company A Ordinary shares in issue Net asset value per ordinary share 000 Number Cents As at 30 September ,170 23,193, As at 31 March ,507 23,193, As at 30 September ,721 23,383,218* 6.28* * adjusted to reflect the share reorganisation that took place in February Puma Brandenburg Limited Interim Report

18 Notes to the Interim Financial Report continued For the six months ended 30 September Related party transactions Transactions with related parties are made on terms equivalent to those that prevail in an arm s length transaction. Material contracts Under the terms of the Investment Advisory Agreement dated 24 March 2010 between Puma Brandenburg Limited and Puma Property Investment Advisory Limited (the Property Adviser ), the Property Adviser is entitled to be paid an aggregate annual investment advisory fee equal to 0.5% per annum of the total assets, such fee accruing on the last day of each quarterly period. In the period, fees of 1,077,000 (FY2014 H1: 974,000) were payable, of which 584,000 (FY2014 H1: 467,000) was outstanding as at 30 September Interests of related parties On 25 March 2010, Puma Brandenburg Limited entered into a loan facility with Shore Capital Group Limited for an amount of 5,000,000. The balance of the loan at 30 September 2014 is 3,500,000 (FY2014 H1: 3,500,000). The loan is repayable on 25 March 2015 and interest is charged at a rate of 4% over the 3 year German government federal bond as at the drawdown date. 9. Subsequent Events Capital Expenditure facility A capital expenditure loan facility for 2m was signed with LBBW in November 2014 which allows for the drawing of funds until September The loan margin was set at 1.85% and interest will be calculated on the basis of either one month or three month euribor. The facility will be used to partially finance the renovation of the façade of a building at Kurfürstenstrasse in Mitte, Berlin. Property Sales/acquisition Since the period end we have notarised the sale of two mixed use buildings in the Northern portfolio at an aggregate sales price of 1.73m. This compares with the latest balance sheet valuation of 1.72m. In December 2014 we notarised the acquisition of a residential property located in Charlottenburg in Berlin at an all in cost of c. 3.75m. The property is in a wealthy, established suburban location with excellent condominiumisation characteristics. 16 Puma Brandenburg Limited Interim Report 2014

19 Officers and Professional Advisers Directors Gernot von Grawert-May (Chairman) Howard Shore Herman Troskie Registered Office Martello Court Admiral Park St Peter Port Guernsey GY1 3HB Legal advisors to the Company Carey Olsen Carey House Les Banques St Peter Port Guernsey GY1 4BZ Auditors Grant Thornton Limited PO Box 313 Lefebvre House Lefebvre Street St Peter Port Guernsey GY1 3TF Registrar Computershare Investor Services (Guernsey) Limited c/o Queensway House Hilgrove Street St Helier Jersey JE1 1ES Puma Brandenburg Limited Interim Report

20 18 Puma Brandenburg Limited Interim Report 2014 Puma Brandenburg Limited Martello Court Admiral Park St Peter Port Guernsey GY1 3HB Tel: +44 (0)