BCRE.L Regulatory News (BCRE)

BCRE - Brack Capital Real Estate Investments N.V.

("BCRE" or the "Company")

Subsidiary Interim Financial Report for Second Quarter of 2015

BCRE announces that Brack Capital Properties N.V. ("BCRE Germany"), a subsidiary of the Company, whose shares are traded on the Tel Aviv Stock Exchange, has published its interim financial report for the second quarter of 2015 ("interim financial report").

The interim financial report published by BCRE Germany includes:

1. Board of Directors' Report on the Corporation's State of Affairs

2. Interim Condensed Consolidated Financial Statements as of 30 June 2015 (unaudited)

3. Presentation of financial data from the Interim Condensed Consolidated Financial Statements attributed to BCRE Germany itself as of 30 June 2015 (unaudited)

For ease of reference, we have provided an uncertified English translation of the interim financial report and the Hebrew version published by BCRE Germany on the Company's website - www.brack-capital.com.

Key highlights relating to the principal results for the interim financial report:

1. Profitability - in the second quarter of 2015, BCRE Germany's net income attributed to the BCRE Germany's shareholders amounted to approximately EUR 12.3 million compared to net income of EUR 11.4 million in the corresponding quarter last year. The following is the contribution of income producing real estate and residential development activities to BCRE Germany's results:

- Income producing real estate - in the second quarter of 2015, the FFO amounted to EUR 5.7 million compared to EUR 4.8 million in the corresponding quarter last year. In the reported quarter, the FFO grosses up to an annual rate of EUR 22.8 million.

- Residential development activity - in the second quarter of 2015, the contribution to profit from the Grafental project amounted to EUR 0.4 million (consolidated) from delivering 5 apartments in Stage A (as of the report date, 201 flats were delivered out of the 202 flats of Stage A). The delivery of apartments of stages B1 and B2 is scheduled to take place in the fourth quarter of 2015 and in the first quarter of 2016 and BCRE Germany will recognize the related profits accordingly.

2. Balance sheet structure and financial solvency -

a. Equity and NAV - the equity attributed to the BCRE Germany's shareholders amounted to approximately EUR 304.7 million and the NAV1 amounted to EUR 373.5 million as of the report date.

b. Debt ratios - the LTV ratio is 51% and the debt ratio to net CAP is 61.15% as of the date of the report. The EBITDA ratio to interest expenses (only from the income producing portfolio, excluding operating income from entrepreneurship activity) is 2.6 in the second quarter of 2015. 

c. Cash balances amounted to approximately EUR 90.6 million as of the report date.

1 Adjusted EPRA NAV - for information regarding the index and the calculation manner see section 5 of part A of BCRE Germany's Board of Directors' Report on the Corporation's State of Affairs.

2 Net debt to total balance sheet.

3 For details regarding the calculation manner, see part E of BCRE Germany's Board of Directors' Report on the Corporation's State of Affairs - designated disclosure to the bondholders, section 4c, the CAP ratio calculation in the report.

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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, predominantly located in the USA, Germany, Russia, India and the UK.

The Company has established local management team platforms with significant local market expertise in the US, Germany, Russia, India and the UK with exclusive access to over 400 staff. At present, the Company has offices and teams in New York, London, Frankfurt, Düsseldorf, Moscow, Kazan, New Delhi, Amsterdam, Limassol and Budapest.