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Treveria plc

("Treveria", the "Group" or the "Company")

Final results for the year ended 31 December 2013

Treveria plc (AIM: TRV), the German retail focused real estate investment company, today announces its audited results for the year ended 31 December 2013. The Company also announces that its Annual Report and Accounts for the year ended 31 December 2013 are available on the Company's website www.treveria.com.

For further information, please contact:

Chairman's statement

Highlights

Following the confirmation by shareholders at last year's AGM that the Company should carry out an orderly realisation of the portfolio and return the disposal proceeds, the Company has continued to focus its efforts on reaching agreements with the lenders to facilitate this and on selling, whilst at the same time controlling costs and exploring opportunities for block disposals of sub-portfolios.

The Company declared and paid distributions totalling €27,225,000 during the year, and the Board will seek to return capital to shareholders as and when disposals create sufficient liquidity.

The Company has also completed its major reorganisation of its asset management function. In particular, the activities carried out by its wholly owned subsidiary in Frankfurt, Treveria Asset Management GmbH ("TAMG"), have now been outsourced to external service providers with the overall objective of optimising operations. We believe that this externalisation will not only yield cost optimization, but will also result in a leaner, nimbler, more efficient business.

Portfolio and financing

Silo D

In February 2013, Treveria reached a consensual agreement with the loan servicer, Situs Asset Management Limited, regarding the implementation of a business plan which will involve the orderly disposal of the Silo D property portfolio over time. The servicer has been providing four-months rolling extensions to the debt facility. The Company remains the beneficial owner of the equity value in the Silo. In the meantime it receives a cash fee of 1.8% on any disposals.

Silo E

In October 2012 insolvency proceedings were commenced by the loan servicer, following the denial of an extension to the loan agreement. The Group filed an appeal and during 2013 sought to instigate debtor-in-possession proceedings as a better alternative to preserve value for the creditors and stakeholders as a whole. In March 2014, the Group reached a settlement with the insolvency administrator, under which the insolvency administrator agreed to compensate Treveria for its cooperation in the sale of the portfolio. The insolvency administrator also waived potential claims against Treveria E S.à.r.l., the parent of the German portfolio companies, and Treveria agreed not to pursue any further steps in this regard.

Silo F&K

On 6 September 2013, Treveria signed a restructuring agreement with Hypothekenbank Frankfurt (formerly Eurohypo) with regard to the Silo F and K loan facility. The objective of the restructuring agreement is the implementation of a business plan that seeks to maximize sale proceeds and achieve full repayment of the debt facility out of asset disposals over time. Hypothekenbank granted a new five year loan facility to Treveria under this agreement. As with Silo D, Treveria continues to be the 100% beneficiary of any value remaining in the Silo post the repayment of the debt plus all the costs and fees incurred. It is entitled to a 1% cash fee on any disposals.

Silo G&J

The Group repaid the Silo G loan facility in full on 12 July 2013, and Silo J is also debt free. The Company is focusing efforts on disposing of the assets in these Silos to maximize the amount of unrestricted cash. As of June 2014, the two Silos hold ten unsold properties.

Financial results

We report a loss for the year of €60.6m (compared with a loss in the previous year of €135.2m). The key components of this result is the write down of investment property valuations by €3.5m and the €62.6m effect of the de-consolidation of the Silo D and Silo F&K companies as subsidiaries.

As a consequence of the developments in Silos D, F and K noted above, the Company considers that those Silos no longer fulfil all necessary accounting standards criteria for the consolidation in the Company's accounts from the respective dates on which the restructuring agreements were agreed. The Statement of Comprehensive Income includes the operating results of those Silos up to those dates and a loss on de-consolidation. As the Company continues to be the ultimate economic beneficiary of these investments (after paying debt, fees and other costs incurred) and given the Company's entitlement to receive fee income from disposals of these properties, the Company carries them as investments at the estimated fair value.

The Company declared and paid two distributions totalling €27,225,000 during the year. As a result of the de-recognition of Silo D and Silo F&K companies as subsidiaries and the above distribution, the total net assets fell from €135.7m in 2012 to €48.0m in 2013. This equals a fall from €0.224 per share to €0.079. On an adjusted basis (i.e. excluding deferred tax), the net asset value per share at the year-end stood at €0.080 (compared with €0.232 in 2012).

With the loss being due to non-cash items, the net cash-flows from operating activities (before changes in working capital and finance expenses), and as reported in the Statement of Cash-Flows, were positive at €12.3m (2012: 59.9m). Group cash stood at €13.3m at the year-end, with €4.8m held at the parent company. The fall in Group cash is principally due to the distribution of €27,225,000 during the year and the effects of not including the cash held in Silos D and F/K due to de-recognition as subsidiaries.

As at 31 May 2014, the Group's unrestricted cash stood at €15.4m.

Management arrangements

The Company took the decision in 2012 to move from an internally to an externally managed portfolio. Tax and accounting services were outsourced to a third-party provider with effect 1 February 2013, while the remaining services (including asset management) were phased out over the first half of 2013.

In conjunction with the restructuring agreement reached with Situs, as servicer of the Silo D loan, the asset management of the Silo D property portfolio was awarded to CR Investments. In July 2013, the Company completed the handover of the Silo F and K property portfolio to Atos Asset Management and Corpus Sireo Asset Management. Subsequently, in August 2013, the Company completed the process of externalizing the asset management function by awarding the management of the Silo G and J portfolio to Atos Asset Management.

Disposal of investment properties

In Silos G and J where cash proceeds are not subject to restriction, 10 properties were sold during the year, generating gross sales proceeds of €16.8m. In addition, between 31 December 2013 and the date of this report, 2 further investment properties have been sold, generating sales proceeds of €1.8m, and 1 additional investment property has been notarised for sale, which should generate proceeds of €1.9m.

The Company continues to explore a number of unsolicited indications of interest from third parties with regard to the potential acquisition of some or all of Treveria' s portfolio.

Real estate transfer tax

As reported in previous years, Treveria Holdings Ltd through which the property subsidiaries are indirectly held, has been assessed by the German tax authorities for Real Estate Transfer Tax ("RETT"), and the assessments amount to approximately €45 million (including late payment fees and interest). The Group challenged the assessment of the RETT on various legal grounds and initiated relief procedures with the relevant German tax authorities, and in 2012 it applied to the German fiscal court for a ruling on the matter. The Board, together with the Board of Treveria Holdings, has also initiated legal proceedings against two of its former professional advisors for alleged negligent advice. The outcome of such legal action and relief procedures still remains uncertain.

Going Concern

The Group continues to adopt a going concern basis for the preparation of these financial statements. The Directors believe the Group will be able to manage its business risks for the foreseeable future despite the continued challenging economic conditions. After making enquiries and examining major areas which could give rise to significant financial exposures, the Board has a reasonable expectation that the Company and the Group have adequate resources to continue its operations.

The Group has primarily mortgage debt facilities secured at the local company level and without any performance or payment guarantees from the Group. In the event of a financing default, each lender has recourse only to the local company borrower and cannot seek recourse from the Company. In a distress situation, to limit the financial damage to the Group, underperforming assets could be released back to the appropriate lender, or sold for a nominal value. The Board has considered all the relevant facts and circumstances including the various restricting agreements to assess the accounting treatment of the local companies and has concluded to de-consolidate Silo D and Silo F&K as Treveria no longer meet all the conditions to do so as set out by IFRS10, Consolidated Financial Statements. After repayment in full of the loan on Silo G, the remaining subsidiaries consolidated by the Group no longer have external interest-bearing debt loans and borrowings.

With respect to the Company's cash position, the Board has a reasonable expectation that sufficient liquidity will be available to meet current expenses from a combination of existing cash reserves, net sales proceeds arising from the disposal program, and cash flow from normal operations.

Accordingly the Directors continue to adopt the going concern basis in preparing the consolidated financial statements for the year ended 31 December 2013.

Outlook

The Board will seek to return capital to shareholders as and when sufficient liquidity is available, which is largely dependent on the success in completing sales, the implementation of the restructuring agreements, and resolving the RETT issue.

Eitan Milgram

Chairman

25 June 2014

Directors' report

The Directors submit their report with the audited financial statements for the year ended 31 December 2013. A review of the Group's business and results for the year is contained in the Chairman's statement, which should be read in conjunction with this report.

Business of the Group

Treveria plc is the Group holding company. The principal activity of its operating subsidiaries is the business of investing in and managing German commercial real estate, with a primary focus on retail assets.

Investment policy

At the AGM in July 2013, shareholders voted to adopt an investment policy as follows:

"The investment objective of the Company is to carry out an orderly realisation of the portfolio of property assets over the medium term, to distribute the net proceeds to shareholders, and then undertake a voluntary winding up of the Company. No new investments will be made except where the Board considers it necessary to provide follow-on capital to enhance the value of an existing investment."

Results for the year and dividends

The results are set out in the Statement of Comprehensive Income.

The total comprehensive loss attributable to the equity holders of the parent company for the year was €60,397,000 (2012: loss of €135,251,000).

On 15 March 2013, the Company paid a distribution to shareholders of 3.25 Euro-cents per share, amounting to €19,663,000 in total. On 8 November 2013, the Company paid a distribution to shareholders of 1.25 Euro-cents per share, amounting to €7,562,000 in total. Both distributions were financed from the distributable reserve created by the cancellation in 2007 of the share premium account which had arisen on the placing of shares on AIM at the Company's launch

Directors

The Directors who held office during the year and to the date of this report were:

Details of Directors' earnings are given in note 26 to the accounts.

All of the Directors are non-executive. David Malpica has a controlling interest in Kewbridge Capital Limited ("Kewbridge") which provides advisory and management services to the Company. Details of fees payable to Kewbridge are given in note 26.

Directors' interests

Eitan Milgram is a Portfolio Manager and Executive Vice President at Weiss Asset Management LP which holds an interest in the shares in the Company as shown under "Substantial Shareholders".

Jeffrey Strong is a senior investment professional at QVT Financial LP which holds an interest in the shares in the Company as shown under "Substantial Shareholders".

None of the other Directors listed above had an interest in the share capital of the Company in the year ended 31 December 2013 (2012: €nil).

Substantial shareholders

At the date of this report, the following shareholders had substantial interests in the issued share capital of the Company:

The UK Takeover Code

As from 30 September 2013, the Company is subject to the City Code on Takeovers and Mergers as a result of changes to the Takeover Code which come into effect on that date.

Treasury operations and financial instruments

The Group's policy in relation to financial risk management and use of financial instruments is set out in notes 21 and 22 to the financial statements.

Auditors and disclosure of information to auditors

So far as the Directors are aware, there is no relevant audit information of which the auditors are unaware and each Director has taken all reasonable steps to make himself aware of any relevant audit information and to establish that the auditors are aware of that information.

Our auditors, KPMG Audit LLC, being eligible, have expressed their willingness to continue in office, in accordance with Section 12 (2) of the Isle of Man Companies Act 1982.

On behalf of the Board

Graham Smith

Director25 June 2014

Statement of Directors' responsibilities in respect of the Directors report and the financial statements

The Directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year, which meet the requirements of Isle of Man company law. In addition, the Directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards, as adopted by the EU.

The financial statements are required by law to give a true and fair view of the state of affairs of the Group and the Parent Company and of the profit or loss of the Group and the Parent Company for that period.

In preparing these financial statements, the Directors are required to:

· select suitable accounting policies and then apply them consistently;

· make judgements and estimates that are reasonable and prudent;

· state whether they have been prepared in accordance with International Financial Reporting Standards, as adopted by the EU; and

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Parent Company will continue in business.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that its financial statements comply with the Companies Acts 1931 to 2004. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation governing the preparation and dissemination of financial statements may differ from one jurisdiction to another.

Report of the Independent Auditors, KPMG Audit LLC,to the members of Treveria plc

We have audited the financials of Treveria plc for the year ended 31 December 2013 which comprise the Consolidated and the Company Statements of Comprehensive Income, the Consolidated and the Company Statements of Financial Position, the Consolidated and the Company Statements of Cash Flows and the Consolidated and the Company Statements of Changes in Equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRS), as adopted by the EU.

This report is made solely to the Company's members, as a body, in accordance with Section 15 of the Companies Act 1982. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Directors and auditors

As explained more fully in the Statement of Directors' responsibilities, the Directors are responsible for the preparation of financial statements that give a true and fair view. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements.

Opinion on the financial statements

In our opinion the financial statements:

· give a true and fair view of the state of the Group's and the Company's affairs as at 31 December 2013 and of the Group's and the Company's loss for the year then ended;

· have been properly prepared in accordance with IFRS, as adopted by the EU; and

· have been properly prepared in accordance with the provisions of Companies Acts 1931 to 2004.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Acts 1931 to 2004 require us to report to you if, in our opinion:

· proper books of account have not been kept by the Company and proper returns adequate for our audit have not been received from branches not visited by us;

· the Company's Statement of Comprehensive Income and Statement of Financial Position are not in agreement with the books of account and returns;

· certain disclosures of Directors' remuneration specified by law are not made; or

· we have not received all the information and explanations we require for our audit.

Emphasis of Matter - RETT contingent liability

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures in note 18 concerning the Group's contingent liability in respect of Real Estate Transfer Tax ("RETT"). As detailed in that note 18, Treveria Holdings Ltd. a wholly owned subsidiary of Treveria plc has received assessments from the German tax authorities for RETT as a result of the acquisition of shares in Treveria Properties S.à r.l. by Treveria Holdings S.à r.l. in 2009. The Group continues to challenge the assessment of the RETT on various legal grounds and has initiated relief procedures with the relevant German tax authorities, and has applied to the German fiscal court for a ruling on the matter. The outcome of such legal action and relief procedures is typically hard to predict.

The maximum possible liability for RETT (including late payment fees and interest) is estimated to be €45,392,000. The Directors have assessed that it is not probable that an outflow of resources embodying economic benefits will be required to settle this liability but, due to the uncertainties relating to the outcome of the challenge to the assessments, the relief procedures and possible future legislation, this amount is shown as a contingent liability. The Company continues to make a provision of €1,000,000 to settle amounts which may become payable in relation to the RETT relief procedures.

Emphasis of matter - valuation of investments at fair value through profit or loss and investment property held for disposal

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in notes 12, 13 and 14 to the financial statements concerning the valuation of investments at fair value through profit or loss of €15,500,000 and investment property held for disposal of €36,831,000. As detailed in those notes, these are stated at Directors' valuation. Due to the inherent uncertainty associated with the determination of the valuations, the amount realised on disposal may differ materially from the carrying amount in the financial statements. The impact of such uncertainty cannot be quantified.

KPMG Audit LLC

Chartered Accountants

Heritage Court

41 Athol Street

Douglas

Isle of Man IM99 1HN

25 June 2014

Statements of Comprehensive Income

for the year ended 31 December 2013

Dividends of €27,225,000 (2012: nil) were paid during the year (see note 24).

The notes below form an integral part of the financial statements

Statements of Financial Position

as at 31 December 2013

The financial statements were approved by the Board of Directors on 25 June 2014 and were signed on its behalf by:

Eitan Milgram Graham Smith

Director Director

The notes below form an integral part of the financial statements

Statements of Changes in Equity

for the year ended 31 December 2013

The notes below form an integral part of the financial statements

Statements of Changes in Equity

for the year ended 31 December 2013

The notes below form an integral part of the financial statements

Statements of Cash Flows

for the year ended 31 December 2013

The notes below form an integral part of the financial statements

Notes to the Consolidated Financial Statements

for the year ended 31 December 2013

Treveria plc (the Company) is a company incorporated and domiciled in the Isle of Man whose shares are publicly traded on AIM.

The consolidated financial statements of Treveria plc comprise the Company and its subsidiaries (together referred to as the Group). The parent company financial statements present information about the Company as a separate entity and not about its Group. The financial statements for the Group and the parent company have been prepared for the year ended 31 December 2013.

The principal activities of the Group are described in note 4.

The Company acts as the investment holding company of the Group.

(a) Basis of preparation

These financial statements have been prepared in accordance with the Isle of Man Companies Acts 1931 to 2004, International Financial Reporting Standards ("IFRS"), as adopted by the EU and IFRIC interpretations. The consolidated financial statements have been prepared on a going concern basis and on a historical cost basis as amended by the revaluation of investment property, land held for resale and financial assets and financial liabilities at fair value through profit or loss. Comparative information for the Group and Company financial statements is presented for the year ended 31 December 2012. The financial statements are presented in Euro and all values are rounded to the nearest thousand (€000) except when otherwise indicated.

The preparation of financial statements in conformity with IFRS, as adopted by the EU, requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

Specifically, the Directors have prepared the consolidated financial statements on a going concern basis. This is a key judgement of the Board, and is discussed further below:

Going concern

The Group continues to adopt a going concern basis for the preparation of these financial statements. The Directors believe the Group will be able to manage its business risks for the foreseeable future despite the continued challenging economic conditions. After making enquiries and examining major areas which could give rise to significant financial exposures, the Board has a reasonable expectation that the Company and the Group have adequate resources to continue their operations.

The Group has primarily mortgage debt facilities secured at the local company level and without any performance or payment guarantees from the Group. In the event of a financing default, each lender has recourse only to the local company borrower and cannot seek recourse from the Company. In a distress situation, to limit the financial damage to the Group, underperforming assets could be released back to the appropriate lender, or sold for a nominal value. The Board has considered all the relevant facts and circumstances including the various restricting agreements to assess the accounting treatment of the local companies and has concluded to de-consolidate Silo D and Silo F&K as Treveria no longer meet all the conditions for doing so as set out by IFRS10, Consolidated Financial Statements. The remaining subsidiaries consolidated by the Group no longer have external interest-bearing debt loans and borrowings.

With respect to the Company's cash position, the Board has a reasonable expectation that sufficient liquidity will be available to meet current expenses from a combination of existing cash reserves, net sales proceeds arising from the disposal program, and cash flow from normal operations.

Accordingly the Directors continue to adopt the going concern basis in preparing the consolidated financial statements for the year ended 31 December 2013.

(b) Basis of consolidation

The consolidated financial statements comprise the financial statements of Treveria plc and its subsidiaries as at 31 December 2013. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions that are recognised in assets and liabilities are eliminated in full.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the Statement of Comprehensive Income and within equity in the Consolidated Statement of Financial Position, separately from parent shareholders' equity.

(c) Changes in accounting policy and disclosure

The accounting policies applied to the consolidated financial statements are consistent with those of the previous year with the exceptions listed below.

\* These Standards are applicable to reporting periods beginning on or after the effective date. IFRS 10 has been early adopted.

IFRS 10, Consolidated Financial Statements comprehensively redefines the concept of control. This should create a uniform basis for defining the consolidated group. This Standard replaces the provisions of the previous IAS 27 "Consolidated and Separate Financial Statements" for consolidated financial statements. Implications of IFRS 10 on the annual report are reflected in note 7.

(d) Acquisitions

Acquisitions of corporate interests in property are accounted for on consolidation as if the Group had acquired the underlying property asset directly. Accordingly no goodwill arises on such acquisitions as any difference between the fair values of the assets acquired and the acquisition consideration are allocated to the investment property asset, which is subject to subsequent revaluation under IAS 40, Investment Properties to its market value.

(e) Foreign currency translation

The consolidated financial statements are presented in Euro, which is the Company's functional and presentation currency and is the functional currency for the majority of subsidiaries within the Group.

Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the reporting date. All differences are taken to the Statement of Comprehensive Income.

The assets and liabilities of foreign operations are translated into Euro at the rate of exchange ruling at the reporting date and their Statements of Comprehensive Income are translated at the weighted average exchange rates for the year. The exchange differences arising on the translation are taken directly to a separate component of equity. On disposal of a foreign operation, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised in the Statement of Comprehensive Income.

(f) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. In particular:

Rental income

Rental income from operating leases is recognised on a straight-line basis over the term of the lease.

Fixed or determinable rental increases are recognised on a straight-line basis over the term of the lease or over the period until the next market review date.

Contingent rents, such as turnover rent and market rent adjustments, are recognised as income in the financial period in which they are earned.

Lease incentives granted are recognised in the Statement of Comprehensive Income as an integral part of rental income.

Interest income

Interest income is recognised as interest accrues, using the effective interest method which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset.

Service charges

In relation to amounts receivable in respect of service charges, such income is not treated as revenue, rather it is set off against the costs to which such income relates.

(g) Disposals

Investment property disposals are recognised in the financial statements on the date of completion. Profits or losses arising on disposal of investment properties are calculated by reference to the carrying value of the asset at the beginning of the year, adjusted for subsequent capital expenditure and the proceeds received from the disposal.

(h) Leases

Group as lessor

Leases where the Group does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases.

Group as lessee

The Group's investment properties held under a lease are accounted for as finance leases and are recognised as an asset and an obligation to pay future minimum lease payments. The investment property asset is included in the Statement of Financial Position at fair value, gross of the recognised finance lease liability. Lease payments, where material, are allocated between the liability and finance charges so as to achieve a constant financing rate.

(i) Income tax

Current income tax

Current income tax assets and liabilities are measured at the reporting date at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

A 0% rate of corporate income tax applies to the Company and certain of its subsidiaries which are resident in the Isle of Man.

Certain subsidiaries may be subject to foreign taxes in respect of sources of income arising in those foreign countries.

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, with the following exceptions:

· where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss;

· in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future; and

· deferred tax assets are disclosed net of deferred tax liabilities and are only recognised to the extent that:

· it is probable that taxable profits will be available against which the deductible temporary differences, carried forward tax credits or tax losses can be utilised; and

· there are deferred tax liabilities within a property-owning subsidiary in which the deferred tax asset may be offset against the deferred tax liability in the same company.

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 date of the Statement of Financial Position.

(j) Investment properties

Investment properties are properties owned or leased under finance leases by the Group which are held either for long-term rental income or for capital appreciation or both.

Investment properties are initially recognised at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met, and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the reporting date. Surpluses or deficits arising from changes in the fair values of investment properties are included in the Statement of Comprehensive Income in the period in which they arise. Investment property held under a finance lease is stated gross of the recognised finance lease liability.

(k) Financial assets and financial liabilities

i. Classification

Equity and preference share investments have been designated at fair value through profit and loss.

Financial assets that are designated as loans and receivables comprise loans and accrued interest and other receivables.

ii. Recognition

The Group recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instrument.

iii. Measurement

Equity and preference share investments are stated at fair value. Loans and receivables are stated at amortised cost less any impairment losses.

The Directors determine asset values using guidelines and other valuation methods with reference to the valuation principles of IFRS 13, Fair Value Measurement. As all investments are unquoted, the valuation principles adopted are classified as Level 3 in the IFRS 7 fair value hierarchy.

'Fair value' is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk.

When available, the Group measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as 'active' if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The Group measures instruments quoted in an active market at mid-price.

If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction, including the selling price realised for investment properties sold after the yearend, and expected selling prices as per latest sales negotiations.

The Group recognises transfers between levels of the fair value hierarchy as at the end of the reporting period during which the change has occurred.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initial amount recognised and the maturity amount, minus any reduction for impairment. Financial assets that are not carried at fair value through profit and loss are subject to an impairment test.

iv. Impairment

Financial assets that are stated at cost or amortised cost are reviewed at each reporting date to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in the profit or loss as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate.

If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases, and the decrease can be linked objectively to an event occurring after the write-down, the write-down is reversed through the profit or loss.

v. Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with IAS 39. A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expired.

(l) Investments in subsidiaries

Investments in subsidiaries are stated at cost less any provision for impairment in value.

Investments in subsidiaries are reviewed for impairment whenever there is any indication that these assets may be impaired. If any such indication exists, the recoverable amount (i.e. the higher of the fair value less cost to sell and value in use) of the asset is estimated to determine the amount of impairment loss.

If the recoverable amount is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. The impairment loss is recognised in the Statement of Comprehensive Income.

(m) Investment property held for disposal

Investment property is transferred to non-current assets held for disposal when it is expected that the carrying amount will be recovered principally through sale rather than from continuing use. For this to be the case, the property must be available for immediate disposal in its present condition subject only to terms that are usual and customary for disposals of such property and its disposal must be highly probable.

For a sale to be highly probable:

· the Board of Directors must be committed to a plan to sell the property and an active programme to locate a buyer and complete the plan must have been initiated;

· the property must be actively marketed for sale at a price that is reasonable in relation to its current fair value; and

· the disposal should be expected to qualify for recognition as a completed sale within one year from the date of classification.

On re-classification, investment property that is measured at fair value continues to be so measured. Therefore properties held for disposal are valued according to the relevant sale and purchase contracts.

(n) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, less an allowance for impairment. An allowance for impairment is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.

(o) Amounts due from subsidiaries

Amounts due to the Company from subsidiaries are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for impairment. An allowance for impairment is made when there is objective evidence that the Company will not be able to recover the amounts in full.

(p) Cash and short-term deposits

Cash and short-term deposits comprise cash at bank and on hand, demand deposits and other short-term highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

(q) Bank borrowings

Interest-bearing bank loans are initially recorded at fair value, net of direct issue costs.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

(r) Trade payables

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

(s) Derivative financial instruments and hedging

The Group uses derivative financial instruments such as interest rate swaps and caps to hedge its risks associated with interest rate fluctuations. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.

The Group does not apply hedge accounting to its interest rate swaps. Any change in the fair value of such derivatives is recognised immediately in the Statement of Comprehensive Income as a finance cost or finance revenue as appropriate.

(t) Standards issued but not yet effective

IASB (International Accounting Standards Board) and IFRIC (International Financial Reporting Interpretations Committee) have issued the following standards and interpretations with an effective date after the date of these financial statements:

IFRS 9 Financial Instruments: Classification and Measurement (effective date yet to be announced)

IFRS 12 Disclosure of Interests in Other Entities amended (effective 1 January 2014)

The Directors do not expect the adoption of the standards and interpretations to have a material impact on the Group's financial statements in the period of initial application.

Judgements

In the process of applying the Group's accounting policies, which are described in note 2, the Directors have made the following judgements that have the most significant effect on the amounts recognised in the financial statements:

Operating lease commitments - Group as lessor

The Group has entered into commercial property leases on its investment property portfolio. The Group has determined that it retains all the significant risks and rewards of ownership of these properties and so accounts for them as operating leases.

Provisions

A provision is only recognised when:

· an entity has a present obligation (legal or constructive) as a result of a past event;

· it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

· a reliable estimate can be made of the amount of the obligation.

Contingent liability

A contingent liability is recorded by way of note to the consolidated financial statements when there is:

· a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group; or

· a present obligation that arises from past events but is not recognised because:

· it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

· the amount of the obligation cannot be measured with sufficient reliability.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below:

Valuation of investment properties & investment property held for disposal

The Group's investment properties, consisting of properties held in Silos G and J, have been reclassified as investment property held for disposal. The fair value of investment property held for disposal of €36,831,000 (2012: €49,424,000) as at 31 December 2013 was determined by the Directors with support from the Asset Managers. Each of the valuations is based upon assumptions about the expected disposal prices from the ongoing negotiations or intended sales programme. Reference is made to market evidence of transaction prices for similar properties.

Valuation of investment at fair value through profit and loss

As of 31 December 2013, the Group held €15,500,000 (€2012: nil) investment at fair value through profit and loss as detailed in note 7. The Directors consider the most appropriate indication of the fair value of the investments held by Silo D to be the disposal fee due on the expected selling price as per the relevant business plan and of the investments held by Silos F&K to be the most recent sales negotiations and interests shown from third parties.

The Directors are of the opinion that the Group is engaged in a single segment of business, being property investment business, in one geographical area, namely Germany. This is consistent with the internal reporting provided to the Board who act chief operating decision-makers and are responsible for allocating resources and assessing performance. Accordingly the Directors consider it no longer appropriate or necessary to report on the results of each Silo.

The following items have been charged or (credited) in arriving at operating profit:

Details of Directors' emoluments are set out in note 26 related parties.

Staff costs and numbers

The average number of persons employed by the Group during the year was 32 (2012: 49). As at year end there were no employees.

In February 2013, Treveria reached a consensual agreement with the servicer of Silo D loan, Situs Asset Management Limited, regarding the implementation of a business plan which involves the orderly disposal of the Silo D property portfolio over time and the asset management of the Silo D property portfolio was awarded to CR Investments. Treveria continues to be the 100% beneficiary of any value remaining in the Silo after the repayment of the debt plus all the costs and fees incurred and is providing full support to the realisation process. Treveria receives a sales fee for each asset.

On 6 September 2013, Treveria signed a similar restructuring agreement with Hypothekenbank Frankfurt with regard to the Silo F& K loan facility.

The Board has considered all the relevant facts and circumstances and concluded that the Company should de-consolidate Silo D and Silo F&K as Treveria no longer meet all the conditions to be able to consolidate as set out by IFRS10 Consolidated Financial Statements. Accordingly, the remaining investments in Silo D and Silo F&K are carried as a single line on the Group's statement of financial position under "Investment at fair value through profit and loss" -see note 13.

The loss on derecognition of subsidiaries for the year was €60,136,000 (2012: €77,068,000).

The contribution of these Silos to the consolidated comprehensive loss in the period up to the date of deconsolidation is €6.9m comprehensive profit.

Interest is charged by the Company on loans to subsidiaries principally based on a rate that relates to the underlying performance of these subsidiaries and amounts to € 43,355,000 (2012: €43,633,000).

The calculation of the basic, diluted and adjusted loss per share is based on the following data:

The Directors have chosen to disclose adjusted earnings per share in order to provide a better indication of the Group's underlying business performance; accordingly it excludes the effect of profit from disposal of investment properties, revaluation surplus/deficit, RETT, change in fair value of derivative financial instruments and loss on derecognition of subsidiaries, net of related tax.

The Directors have chosen to disclose adjusted net assets per share in order to provide a better indication of the Group's underlying net asset value; accordingly it excludes the fair value of derivative financial instruments and deferred taxation on revaluation surpluses, as the Directors do not consider that these items will crystallise as actual liabilities of the Group in the foreseeable future.

The effect of share options has no material impact on the net assets per share of the Group.

The movement on the valuation of the investment properties at market value is as follows:

A reconciliation of the valuation carried out to the carrying values shown in the Statement of Financial Position is as follows:

All properties were valued as at 31 December 2013 and 31 December 2012 by the Board of Directors. The valuations in 2012 were carried out using methods and principles similar to those applied in the most recent valuations carried out by independent professional valuers, and were primarily derived using comparable recent market data on arm's length terms. In 2013, the Group's investment properties, consisting solely of properties held in Silos G and J, have been reclassified as investment property held for disposal.

As of 31 December 2013, the Group held €15,500,000 (€2012: nil) investment at fair value through profit and loss as detailed in note 7.

Fair values of financial instruments

The fair values of financial assets and financial liabilities that are traded in an active market are based on quoted market prices. For all other financial instruments, the Group determines fair values using other valuation techniques.

For financial instruments that trade infrequently and have little price transparency, fair value is less objective, and requires varying degrees of judgement depending on liquidity, uncertainty of market factors, pricing assumptions and other risks affecting the specific instrument.

The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

• Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments;

• Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using; quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data;

• Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument's valuation.

Various valuation techniques may be applied in determining the fair value of investments held as level 3 in the fair value hierarchy. The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date.

Valuation models that employ significant unobservable inputs require a higher degree of management judgement and estimation in the determination of fair value. Management judgement and estimation are usually required for the selection of the appropriate valuation model to be used. The Directors consider the most appropriate indication of the fair value of the investments held by Silo D to be the disposal fee due on the expected selling price as per the relevant business plan and the fair value of the investments held by Silos F&K to be the most recent sales negotiations and interests shown from third parties.  

Fair value hierarchy - Financial instruments measured at fair value

The table below analyses the underlying investments held by the Group measured at fair value at the reporting date by the level in the fair value hierarchy into which the fair value measurement is categorised. The amounts are based on the values recognised in the statement of financial position. All fair value measurements below are recurring. There are no other financial assets or liabilities carried at fair value.

The following table shows a reconciliation of the opening balances to the closing balances for fair value measurements in Level 3 of the fair value hierarchy.

IFRS 13, Fair Value Measurement requires disclosure, by class of financial instrument, if the effect of changing one or more inputs to reasonably possible alternative assumptions would result in a significant change to the fair value measurement. The information used in determination of the fair value of Level 3 investments is chosen with reference to the specific underlying circumstances and position of the investee company. On that basis, the Board believes that the impact of changing one or more of the inputs to reasonably possible alternative assumptions would not change the fair value significantly.

Financial instruments not measured at fair value

The carrying value of short-term financial assets and financial liabilities (cash, debtors and creditors) approximate their fair value.

As of 31 December 2013, the Group held €36,831,000 investment properties in Silo G and Silo J. Three of these have been notarised for sale to third parties. The assessed fair value of held for disposal properties as at 31 December 2012 was €49,424,000. Each of the valuations is based on the notarized sales price where applicable and on the expected disposal prices from the ongoing negotiations or planned sales programme in other instances.

As a result of the level of judgement used in arriving at the market valuations, the amounts which may ultimately be realised in respect of any given property may differ from the valuations shown in the Statement of Financial Position.

As set out in note 29, Events after the reporting date, two of the properties held for sale were disposed of by 31 May 2014, realising sales proceeds of €1,800,000.

As at 31 December 2013, trade receivables at nominal value of €1,662,778 (2012: €4,174,000) were impaired and fully provided for.

As at 31 December, the ageing analysis of trade receivables is as follows:

The Group's policy is to trade only with recognised, creditworthy third parties. It is the policy of the Group that all potential tenants, who wish to trade on credit terms, are subject to credit verification procedures. Outstanding tenants' receivables are monitored on an ongoing basis.

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and two months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. The fair value of cash and short-term deposits is €13,291,000 (2012: €57,992,000). All the cash and short-term deposits are available for Group use and are not subject to any restrictions.

Terms and conditions of the above financial liabilities:

· trade payables are non-interest bearing and it is the Group's policy to pay within the stated terms which vary from 14-60 days; and

· other payables are non-interest bearing and as above are paid within stated terms.

Treveria Holdings Ltd. a wholly owned subsidiary of Treveria plc has received assessments from the German tax authorities for Real estate Transfer Tax ("RETT") as a result of the acquisition of shares in Treveria Properties S.à r.l. by Treveria Holdings S.à r.l. in 2009. The Group's legal advisers have confirmed that, in the event the RETT was deemed payable, the likelihood of the authorities having any actual recourse to the assets of Treveria plc is remote. The Group continues to challenge the assessment of the RETT on various legal grounds and has initiated relief procedures with the relevant German tax authorities, and has applied to the German fiscal court for a ruling on the matter. The outcome of such legal action and relief procedures is typically hard to predict.

The maximum possible liability for RETT (including late payment fees and interest) is estimated to be €45,392,000. It is not probable that an outflow of resources embodying economic benefits will be required to settle this liability but, due to the uncertainties relating to the outcome of the challenge to the assessments, the relief procedures and possible unfavourable outcome in the legal proceedings, this amount is shown as a contingent liability (31 December 2012: €45,392,000). - see note 28. However, the Company continues to make a provision of €1,000,000 to settle amounts which may become payable in relation to the RETT relief procedures.

Following the various consensual restructuring agreements as detailed in note 7, Silo D and Silo F&K were de-consolidated. After repayment in full of the Silo G loan, the remaining subsidiaries consolidated by the Group no longer have external interest-bearing debt loans and borrowings.

The Group leases certain of its investment properties under finance leases (see note 12).

The Group's principal financial liabilities comprise bank loans, finance leases and trade payables. The main purpose of these financial instruments is to raise finance for the Group's operations. The Group has various financial assets such as trade receivables and cash and short-term deposits, which arise directly from its operations. It now also has investments at fair value, following the deconsolidation of Silos D and F&K.

The main risks arising from the Group's financial instruments are credit risk, liquidity risk and interest rate risk. The risk management policies employed by the Group to manage these risks are discussed below:

Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. In the event of a default by an occupational tenant, the Group will suffer a rental shortfall and may incur additional costs, including legal expenses in maintaining, insuring and re-letting the property until it is re-let. The asset manager monitors the tenants in order to anticipate, and minimise the impact of, defaults by occupational tenants, as well as ensuring that the Group has a diversified tenant base.

The maximum credit risk exposure relating to financial assets is represented by the carrying values as at the reporting date. There are no significant concentrations of credit risk within the Group.

The realisability of the amounts due from subsidiaries in the Company is based on the performance of the underlying subsidiaries.

Liquidity risk

Liquidity risk is the risk an entity will encounter in meeting its obligations associated with financial liabilities. This may arise when the realisation of assets and the maturity of liabilities do not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Group has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. Cash and cash equivalents are placed with financial institutions on a short-term basis reflecting the Group's desire to maintain a high level of liquidity in order to enable timely completion of investment transactions.

Cash can become trapped within property companies if certain financial tests set out in the Group's bank loan agreements are not met. Cash traps do not represent events of default under the finance documents but there is a risk that cash is retained within the property companies for the payment of interest and other amounts due under the finance documents and cannot be used for other Group purposes.

The table below summarises the maturity profile of the Group's financial liabilities at 31 December 2013 and 2012 based on contractual undiscounted payments.

Currency risk

There is no significant foreign currency risk as the majority of the assets and liabilities of the Group are maintained in Euro.

Interest rate risk

Following deconsolidation of Silo D and Silo F&K as detailed in note 7, and the repayment in full of the Silo G loan facility (the JPMorgan loan), the Group no longer has interest bearing loans and therefore is not subject to significant interest risk.

Capital management

The Group monitors its capital structure through a combination of a rigorous investment appraisal and disposal process, management of finance costs, monitoring risks, controlling solvency and reviewing key financial ratios. The key financial measures include cash flow projections, the monitoring of interest cover and loan-to-value covenants and ensuring contracted commitments are adequately funded. Following de-consolidation of Silo D and Silo F&K as detailed in note 7, the Group no longer has interest bearing loans and the current capital structure of the Group consists of 100% equity. Equity comprises issued capital, reserves and retained earnings as disclosed in the Statement of changes in equity and notes 23 and 24.

Holders of the ordinary shares are entitled to receive dividends and other distributions and to attend and vote at any general meeting.

Capital redemption reserve

The capital redemption reserve arose from the nominal value of shares purchased by the Company for cancellation and is €1,109,000 (2012: €1,109,000).

Retained earnings and other distributable reserve

The other distributable reserve was created by the cancellation in 2007 of the share premium account which had arisen on the placing of shares on AIM at the Company's launch, and is available for the payment of dividends and for the buyback of shares. The deficit on retained earnings has been deducted from this reserve. The balance at 31 December 2013 was €40,873,000 (2012: €128,495,000).

On 15 March 2013, the Company paid a distribution to shareholders of 3.25 Euro-cents per share, amounting to €19,663,000 in total. On 8 November 2013, the Company paid a distribution to shareholders of 1.25 Euro-cents per share, amounting to €7,562,000 in total. Both distributions were financed from the distributable reserve as described in note 23.

The table below lists all subsidiary companies. In every instance, the ownership interest is by a holding of ordinary shares.

The companies held by Treveria D, F and K are excluded from the table and are not consolidated in the accounts as detailed in note 7.

Terms and conditions of transactions with related parties

All of the related party transactions disclosed were carried out on an arm's length basis.

The following transactions took place between the Group and related parties during the financial year:

David Malpica has a controlling interest in Kewbridge Capital Limited ("Kewbridge"). Kewbridge was appointed to provide advisory and interim management services to the Company in May 2012, and receives a monthly retainer of €27,500. Kewbridge is entitled to receive a performance fee, designed to align Kewbridge's interests with those of shareholders, based on the aggregate amount of cash paid or payable to shareholders, as below. The monthly retainer is fully creditable against the performance fee.

During the year, Kewbridge received retainer fees of €330,000, of which €nil was outstanding at the year-end, and no performance fees. No provision for performance fees has been made in these accounts.

Graham Smith is a Director of the Company and the Administrator, IOMA Fund and Investment Management Limited, ("IOMAFIM"). During the year, IOMAFIM received fees of £85,000 (2012: £135,000). The amount outstanding as at year end is €27,000 (2012: €71,000).

During the year, the Directors received the following emoluments in the form of fees:

Directors' share options

Share options have been granted to a related company of Ian Henderson, a previous Chairman, with the following expiry date and exercise prices:

The Company has given guarantees of payment of annual rents of €135,090 (2012: €189,000) payable by its subsidiary undertakings under head leases for varying periods not exceeding 21 years.

As disclosed in more detail in note 18, Treveria Holdings Limited is subject to a contingent liability of up to €45,392,000 (2012: €45,392,000) for German RETT.

Two of the properties held for sale were disposed of between the year-end and the date of signing this report, realising sales proceeds of €1,800,000. A further property has been notarised for sale, which should generate proceeds of €1,900,000.