BCRE.L Regulatory News (BCRE)

23 May 2017

BCRE - Brack Capital Real Estate Investments N.V.

("BCRE" or the "Company")

Interim Financial Report of Brack Capital Properties N.V. for First Quarter of 2017

The Company announces that Brack Capital Properties N.V. ("BCP")*, whose shares are traded on the Tel Aviv Stock Exchange, has published its Interim Financial Report for the first quarter of 2017 ("Interim Financial Report").

The Interim Financial Report published by BCP includes:

1. Board of Directors' report on the Corporation's state of affairs

2. Interim condensed consolidated financial statements (unaudited)

3. Presentation of financial data from the interim condensed consolidated financial statements attributed to BCP itself (unaudited)

For ease of reference, the uncertified English translation of the Interim Financial Report together along with the Hebrew version published by BCP, are available on the Company's website www.brack-capital.com.

Key highlights relating to the principal results of the Interim Financial Report:

1. Profitability - in the first quarter of 2017, BCP's net income attributed to BCP shareholders amounted to c. EUR 22.6 million compared to a net income of c. EUR 18.4 million in the corresponding quarter last year. Contribution from the income producing real estate assets and the residential development activity to BCP's results were:

- Income producing real estate assets - in the first quarter of 2017, the Funds From Operations ("FFO") amounted to c. EUR 8.1 million compared to c. EUR 8 million in the fourth quarter of 2016. The FFO in the reported quarter grosses up to an annualised FFO of c. EUR 32.3 million.

- Residential development activity - in the first quarter of 2017, the contribution to profit from the Grafental project amounted to c. EUR 1.7 million (consolidated) from the completion of the delivery of 13 flats in phase B3.

2. Balance sheet structure and financial strength:

- Equity and EPRA NAV1 - the equity attributed to shareholders of BCP amounted to c. EUR 488.5 million and the EPRA NAV amounted to c. EUR 565.6 million as of the report date.

- Debt ratios - the LTV ratio2 is c. 47.08% as of the report date. The EBITDA (only from the income producing portfolio, excluding operating profit from the development activity) to interest expense is c. 3.34x in the first quarter of 2017.

- Liquidity - cash and liquid assets amounted to c. EUR 123.5 million as of the report date.

3. Dividend policy - the BCP Board of Directors decided on a dividend policy deriving from BCP's annual FFO, according to which, each year from 2018 and in respect of 2017 and thereafter, BCP will distribute to its shareholders a dividend and/or capital (collectively "Distribution") of 30% of the total FFO (from the income producing activity only, excluding profit from BCP's development activity). For the purposes of calculating the FFO for a given year, the distribution amount will be derived from the FFO, the FFO data for the fourth quarter of that year will be adjusted to the data for the entire year.

*For further details regarding the Company's divestment of BCP, refer to the announcement released by the Company on 23 May 2017 "Sale of shares in Brack Capital Properties N.V.".

1 EPRA NAV - for information regarding the index and the calculation method see section 5 of part A of BCP's Board of Directors' Report on the Corporation's state of affairs.

2 Net debt to net total balance sheet.

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About BCRE

BCRE is an international real estate development and investment group, headquartered in the Netherlands and listed on the London Stock Exchange. Through its subsidiary and associated undertakings, the Company is interested in, develops and operates an international portfolio of real estate assets in the markets it operates.

The Company has established local management team platforms with significant local market expertise. At present, the Company has offices and teams in New York, London, Moscow, Kazan, New Delhi, Amsterdam and Limassol.