BCRE.L Regulatory News (BCRE)

24 August 2016

BCRE - Brack Capital Real Estate Investments N.V.

("BCRE" or the "Company")

Subsidiary Interim Financial Report for Second Quarter of 2016

BCRE is pleased to announce 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 2016 ("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 (unaudited)

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

For ease of reference, the uncertified English translation of the Interim Financial Report along with the Hebrew version published by BCRE Germany, 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 second quarter of 2016, BCRE Germany's net income attributed to BCRE Germany's shareholders amounted to c. EUR 9.4 million compared to a net income of c. EUR 12.3 million in the corresponding quarter last year. Contribution from the income producing real estate assets and the residential development activity to BCRE Germany's results were:

- Income producing real estate assets - in the second quarter of 2016, the Funds From Operations ("FFO I") amounted to c. EUR 7 million compared to c. EUR 6.75 million in the corresponding quarter last year. The FFO I in the reported quarter grosses up to an annualized FFO I of c. EUR 28 million. In addition, the FFO II1 grosses up to an annualized FFO II of c. EUR 37.2 million as of the report date.

- Residential development activity - in the reported quarter, no apartments were delivered to buyers.

2. Balance sheet structure and financial strength:

- Equity and EPRA NAV2 - the equity attributed to the shareholders of BCRE Germany amounted to c. EUR 368.6 million and the EPRA NAV amounted to c. EUR 434.4 million. As of the report date, equity and EPRA NAV per share amounted to EUR 55.87 and EUR 65.84, respectively.

- Debt ratios - the LTV ratio3 is c. 53.7% and the net debt to CAP ratio4 is c. 59.4% 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. 2.9x in the second quarter of 2016.

- Liquidity - cash and liquid assets amounted to c. EUR 67 million as of the report date.

1 FFO II from income producing real estate assets plus BCRE Germany's share in the annual profit from development activity in the last two years.

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

3 Net debt to net total balance sheet.

4 For details regarding the calculation method, 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 and Russia.

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 550 staff. At present, the Company has offices and teams in New York, London, Frankfurt, Düsseldorf, Moscow, Kazan, New Delhi, Amsterdam, Limassol and Budapest.