ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

INDEX

The reports and statements set out below comprise the consolidated financial statements presented to the shareholders:

Index 1

General Information 2

Directors' Report 3 - 4

Directors' Responsibilities and Approval 5

Independent Auditors Reports 6 - 13

Statement of Financial Position 14

Statement of Profit or Loss and Other Comprehensive Income 15

Statement of Changes in Equity 16

Statement of Cash Flows 17

Accounting Policies 18 - 25

Notes to the Consolidated Financial Statements 26 - 47

1 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

GENERAL INFORMATION

COUNTRY OF INCORPORATION AND DOMICILE Bailiwick of Jersey

DIRECTORS Paul Leaf-Wright Mark Pryce Samuele Cappelletti (Appointed 4 August 2020) Edward Jones (Appointed 4 August 2020) Mary Craddock (Appointed 4 August 2020) Peter Bacon (Resigned 4 August 2020) Cleopatra Folkes (Resigned 4 August 2020) Nicholas Winearls (Resigned 4 August 2020) Laurence Rapp (Resigned 4 August 2020) Rudolf Pretorius (Resigned 4 August 2020) Charles Butler (Resigned 17 August 2020)

REGISTERED OFFICE c/o Ocorian Secretaries (Jersey) Limited 26 New Street St Helier Jersey JE2 3RA (Postal address same as physical address)

BANKERS Barclays Bank Plc PO Box 69999 1 Churchill Place London United Kingdom E14 1QE

AUDITORS Deloitte LLP PO Box 403 Gaspe House 66-72 Esplanade St Helier Jersey, JE4 8WA Channel Islands

JERSEY COMPANY ADMINISTRATOR AND COMPANY SECRETARY Ocorian Secretaries (Jersey) Limited 26 New Street St Helier Jersey JE2 3RA (Postal address same as physical address)

TISE SPONSOR Appleby Securities (CI Limited) PO Box 207 13 - 14 Esplanade St Helier Jersey, JE1 1BD Channel Islands

2 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

DIRECTORS' REPORT

The directors have the pleasure in presenting their report and audited consolidated financial statements for Atlantic Leaf Properties Limited (the ''Company'') together with its subsidiaries (the ''Group'') for the 10 month period ended 31 December 2020. The financial year end of the Group was changed from 28 February to 31 December and therefore the periods are not directly comparable.

1. Nature of the business The Company is a United Kingdom "UK" REIT incorporated in Jersey and is a public company limited by shares in accordance with the Companies (Jersey) Law 1991.

The Company was established with the principal objective of investing in quality real estate assets that are income yielding with the potential of capital appreciation. The Company was incorporated in the Republic of Mauritius as a public company limited by shares in accordance with the Mauritius Companies Act 2001. On 1 March 2019, the company elected to enter into the UK-REIT regime and redomiciled the company from Mauritius to Jersey and is now a close ended investment vehicle limited by shares in accordance with the Companies (Jersey) Law 1991.

The Company was dual-listed with a primary listing on the Main Board of the Johannesburg Stock Exchange Limited (''JSE'') and a secondary listing on the Official Market of the Stock Exchange of Mauritius Ltd (''SEM'') until 17 August 2020 when Atlantic Leaf Properties Limited was acquired by South Downs Investment LP. Following the acquisition Atlantic Lead Properties Limited was admitted to the Official List of The International Stock Exchange as a close ended investment vehicle with effect from 17 August 2020.

There has been no change to the nature of the business.

2. Going concern The consolidated financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

During the 10 month period ended 31 December 2020 and the subsequent period to date of the financial statements, the COVID-19 pandemic has caused extensive disruption to business and economic activities globally. Although COVID-19 has not had a significant or ongoing adverse impact on the Group to date, its impact on the Group’s operating arrangement, including access to capital and liquidity is subject to ongoing review by the directors and senior management. This includes assessment of the Group’s medium-term financial plan and liquidity plan, which is supported by rigorous downside scenario testing. The Group has effectively achieved 100% rent collection for the period ended 31 December 2020, this has continued to remain strong after year end with rent collection for the March quarter at almost 100% with only one tenant remaining on a monthly payment plan.

At period end, the Group have two HSBC facilities amounting to GBP 13.5 million which were due to expire on 23 March 2021. Subsequent to the period end these facilities have been renewed on a 6-month term expiring in October 2021 and the Directors have no reason to believe that these will not continue to be refinanced as required. These facilities are currently funded by HSBC and form part of the broader cross- collateralised pool of assets pledged to HSBC. The total facility outstanding with HSBC is approximately GBP 116.5million.

The directors consider that the Group is well placed to manage business and financial risk in the current environment and have concluded that there is a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future being twelve months from the date of approval of these financial statements. Accordingly, the Group financial statements have been prepared on a going concern basis.

3. Distributions The board of directors of the Company distributed a dividend of GBP 19,000,000 for the six months ended August 2020, further distributions of GBP 3,000,000 and GBP 5,000,000 were declared on 28 January 2021 and 14 April 2021 for the periods ended 31 December 2020 and 31 March 2021.

4. Review of results The operating results and state of affairs of the Group are fully set out in the attached consolidated financial statements, see page 17 onwards.

3 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

DIRECTORS' REPORT

5. Consideration of Brexit The UK entered a transition period after leaving the European Union ("EU") on 31 January 2020. This transition period ended with a trade and cooperation agreement (TCA) between the UK and EU coming into effect on 1 January 2021. The UK and EU continue to work on a framework for regulatory cooperation on financial services and equivalence, which may impact market access in the UK and other European countries. To date, the directors have not identified any significant impact to the business as a result of the departure from the EU. The directors will continue to monitor developments closely throughout 2021.

6. Capital structure There were no additional shares issued during the year and there are 188,976,628 shares in circulation as at 31 December 2020. Refer to note 9 for details of shares issued.

7. Directors The directors of the Company during the period and to the date of this report are as follows:

Paul Leaf-Wright Chief Executive Officer Mark Pryce Financial Director Samuele Cappelletti (Appointed 4 August 2020) Director Edward Jones (Appointed 4 August 2020) Director Mary Craddock (Appointed 4 August 2020) Director Peter Bacon (Resigned 4 August 2020) Non-Executive Chairman Cleopatra Folkes (Resigned 4 August 2020) Independent Non-Executive Director Nicholas Winearls (Resigned 4 August 2020) Independent Non-Executive Director Laurence Rapp (Resigned 4 August 2020) Independent Non-Executive Director Rudolf Pretorius (Resigned 4 August 2020) Independent Non-Executive Director Charles Butler (Resigned 17 August 2020) Independent Non-Executive Director

8. Independent Auditor During the period Mazars resigned as auditor of the Group and Deloitte LLP were appointed for the period ended 31 December 2020. Deloitte LLP has expressed its willingness to continue as Auditor for the year ending 31 December 2021.

Deloitte LLP has expressed its willingness to continue as Auditor for the year ending 31 December 2021.

4 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

DIRECTORS' RESPONSIBILITIES AND APPROVAL

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

International Accounting Standard 1 requires that financial statements present fairly for each financial year the Group's financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the International Accounting Standards Board's 'Framework for the preparation and presentation of financial statements'. However, directors are also required to:

• properly select and apply accounting policies; • present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; • provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and • make an assessment of the Group's ability to continue as a going concern.

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group and enable them to ensure that the financial statements comply with the Companies (Jersey) Law 1991. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS OF THE GROUP The annual financial statements of the Group have been approved by the Board of directors on 10 May 2021.

Signed on behalf of the Board by:

______Mark Pryce Financial Director

5 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ATLANTIC LEAF PROPERTIES LIMITED

Report on the audit of the financial statements

1. Opinion

In our opinion the financial statements of Atlantic Leaf Properties Limited (the ‘group’):

 give a true and fair view of the state of the group’s affairs as at 31 December 2020 and of the group’s profit for the period then ended;

 have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB); and

 have been properly prepared in accordance with Companies (Jersey) Law, 1991.

We have audited the financial statements which comprise:

 the consolidated statement of profit or loss and other comprehensive income;  the consolidated statement of financial position;  the consolidated statement of changes in equity;  the consolidated statement of cash flows; and  the related notes 1 to 25.

The financial reporting framework that has been applied in their preparation is applicable law and IFRSs as issued by the IASB.

2. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.

We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

3. Summary of our audit approach

Key audit matter The key audit matter that we identified in the current period was:

 Valuation of investment properties measured at Fair Value Through Profit or Loss (FVTPL).

Materiality The materiality that we used for the group financial statements in the current period was £2,700,000 which was determined on the basis of 2% of total equity (net assets value).

Scoping Full-scope audits were undertaken at five components with analytical review procedures undertaken on the other three components.

6 Our full-scope audit of components provided coverage of 100% of the group’s revenue, 100% of the group’s profit before tax and 100% of the group’s net assets.

Significant changes in our Materiality: We have changed the basis on which we have determined materiality from approach total assets to net assets in the current year. Refer to section 6 for further details. Key Audit Matters: In the prior period, the predecessor auditor’s report included the COVID- 19 outbreak (Going concern and subsequent event) as a key audit matter which is not included in our report for this period. We did not consider this as a key audit matter as it was not amongst the matters of greatest significance that we communicated to the board of directors for the current period audit.

4. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the group’s ability to continue to adopt the going concern basis of accounting included:

 Evaluating the cash flow needs and available liquidity including financing facilities.  Evaluating the sophistication of the model used to prepare the forecasts, testing of clerical accuracy of those forecasts prepared by management.  Evaluating assumptions such forecast rental income used in the forecast.  Evaluating the sensitivity analysis for reasonableness.  Evaluating the extent to which the COVID-19 pandemic has affected going concern and how this has been reflected in the disclosures.  Evaluating the appropriateness of the going concern disclosures in the financial statements.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

5. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.

These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

5.1. Valuation of investment properties measured at Fair Value Through Profit or Loss (FVTPL)

Key audit matter The group’s investment properties measured at fair value of £347,788,860 (28 Feb 2020: description 350,866,859) comprise 97.2% (28 Feb 2020: 91.6%) of its total assets.

The group measures the investment properties at (FVTPL) in accordance with IAS 40, and are classified as Level 3 in the fair value hierarchy in accordance with IFRS 13. The group’s accounting policy for the investment properties is specified in Note 3.3 of the financial

7 statements.

The valuation of the group’s investment properties as explained in Note 4 of the financial statements involves significant judgement and assumptions for example yields, capitalisation rate and vacancy levels. The investment property valuations are performed by an independent external valuer in accordance with the Royal Institute of Chartered Surveyors (RICS).

The valuation of investment properties involves significant judgements and assumptions and could be subject to manipulation, there is a risk is that the investment property valuations are inaccurate. The investment property valuations have a material impact on the consolidated investment property figures in the group’s consolidated financial statements. There is a risk that the third party valuer has used an incorrect methodology and that management supplied inaccurate data such as rental income, or assumptions made including yields are not in line with publicly available prevailing market information.

How the scope of our In response to this, we: audit responded to the key audit matter  Obtained an understanding of the relevant controls related to the valuation of investment properties.  Assessed the competence, capability and objectivity of the external valuer.

For a sample of investments, we performed the following procedures:

 Involved Deloitte Real Estate valuation specialists to review valuation reports and assess reasonable of assumptions made;  Assessed the fair values of the properties per the independent external valuation reports and assessed the assumptions used by the independent external valuer by comparing these to benchmark data that is available from independent third-party sources;  Challenged management on the assumptions and judgements used in the valuations and sought sufficient appropriate evidence where required;  Held discussions with the independent external valuer to understand the nature of the internal and external data used, the significant assumptions and methodologies applied, and in order to confirm their independence; and  Evaluated the appropriateness of the disclosures made in the financial statements in accordance with requirements of IFRS 13.

Key observations Based on the work performed we concluded that the valuation of investment properties measured at FVTPL is appropriate.

6. Our application of materiality

6.1. Materiality We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and in evaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

8 Group materiality £2,700,000 (28 Feb 2020: £5,753,000)

Basis for 2% of the group’s total equity (net assets value) (28 Feb 2020: 1.5% of the group’s total assets). determining materiality

Rationale for the We determined materiality based on total equity (net assets value), which is deemed appropriate benchmark due to the nature of the group’s business. Investors are most likely to focus on the performance of applied their investment and the returns on the investments and this is represented by the net assets value of the entity.

6.2. Performance materiality We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole. Group performance materiality was set at 70% of group materiality for the 2020 audit. In determining performance materiality, we considered the following factors:

a. the quality of the control environment, b. the assessment of the impact of COVID-19 on the control environment, c. this is our first period as auditors of the Company.

6.3. Error reporting threshold We agreed with the Board of directors that we would report to the Board all audit differences in excess of £136,000 (28 Feb 2020: £173,000), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Board of directors on disclosure matters that we identified when assessing the overall presentation of the financial statements.

7. An overview of the scope of our audit

7.1. Identification and scoping of components Our group audit was scoped by obtaining an understanding of the group and its environment, including group-wide controls, and assessing the risks of material misstatement at the group level. Audit work to respond to the risks of material misstatement was performed directly by group audit engagement team.

All components that were financially significant i.e. representing greater than 10% of the investment properties value or significant due to risk, for example, components holding retail assets that were susceptible to effects of COVID-19, components holding new assets acquired within the period, were scoped in for a full scope audit.

Based on this assessment, our group audit scope focused primarily on the audit work at the group and significant components, which were selected based on our assessment of the identified risks of material misstatement identified above. We have performed full scope audit procedures for the significant components, which account for 100% of the group’s revenue, 100% of the group’s profit before tax and 100% of the group’s net assets.

The components that were undergoing liquidation were assessed as non-significant components for review scope. The audit team performed detailed analytical review procedures for all non-significant components.

9 See table below for list of components:

Component Work Performed Rationale Component materiality

GPCL (Jersey) No 3 Unit Trust Full scope audit Financially Significant 1,600,000 (Farringdon Ltd and Islington Ltd)

ALP IOM Limited Full scope audit Financially Significant 1,400,000 Trido Limited Full scope audit Financially Significant 1,600,000 Lexo Limited Full scope audit Financially Significant 1,600,000 Basswood Limited Full scope audit Financially Significant 1,400,000 SPCP Group III LOPD 14 Limited Review scope In Liquidation N/A Austen Limited Review scope In Liquidation N/A ALF Guernsey Limited Review scope In Liquidation N/A

7.2. Our consideration of the control environment

We did not take a controls reliance approach on the general IT controls during the audit for the group due to the simple control environment and financial reporting system. We obtained an understanding of the relevant controls over the investment property valuation, revenue business and the financial reporting processes.

8. Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

9. Responsibilities of directors

As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

10 10. Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

11. Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

11.1. Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 the nature of the industry and sector, control environment and business performance including the design of the group’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;  results of our enquiries of management and the board of directors about their own identification and assessment of the risks of irregularities;  any matters we identified having obtained and reviewed the group’s documentation of their policies and procedures relating to: o identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; o detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; o the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;  the matters discussed among the audit engagement team and relevant internal specialists, including IT specialists and Deloitte Real Estate valuation specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 Valuation of investment properties measured at Fair Value Through Profit or Loss (FVTPL).

 Revenue recognition – Accuracy and completeness of rental revenue.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies (Jersey) Law, 1991.

11 In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

11.2. Audit response to risks identified As a result of performing the above, we identified Valuation of investment properties measured at Fair Value Through Profit or Loss (FVTPL) as a key audit matter related to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and also describes the specific procedures we performed in response to that key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

 Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;  Enquiring of management and the board of directors concerning actual and potential litigation and claims;  Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;  Involving Deloitte Real Estate valuation specialists to independently challenge the appropriateness of the inputs and assumptions used in the valuation methodology;  Reading minutes of meetings of those charged with governance;  In addressing the risk of fraud in revenue recognition, assessed the rent roll and rent demanded schedule for accuracy and completeness, Identified and disaggregated the tenants into New leases, changes in annual rent (particularly any changes relating to COVID-19 rent concessions), rent reviews and leases with no changes during the period, performed substantive procedures in developing an expectation of rental revenue for the period, and performed tests of detail on a sample obtained from the rent roll by vouching these to lease agreements, invoices and bank statements; and  In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Report on other legal and regulatory requirements

12. Matters on which we are required to report by exception

12.1. Adequacy of explanations received and accounting records Under the Companies (Jersey) Law, 1991 we are required to report to you if, in our opinion:

 we have not received all the information and explanations we require for our audit; or  proper accounting records have not been kept, or proper returns adequate for our audit have not been received from branches not visited by us; or  the financial statements are not in agreement with the accounting records and returns.

We have nothing to report in respect of these matters.

12 13.Use of our report

This report is made solely to the company’s members, as a body, in accordance with Article 113A of the Companies (Jersey) Law, 1991. 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 auditor’s 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.

Siobhan Durcan, BA, ACA, FCCA For and on behalf of Deloitte LLP Saint Helier, Jersey 11 May 2021

13 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements as at 31 December 2020

Statement of Financial Position Figures in GBP Notes 31 December 2020 28 February 2020

Assets Non-Current Assets Investment properties 4 348,069,830 350,866,859 Listed investments 5 - 2,926,786 Other receivables 7 151,634 154,605 348,221,464 353,948,250 Current Assets Tax receivable 17 17,335 167,538 Trade and other receivables 7 583,201 2,651,435 Cash and cash equivalents 8 9,280,238 26,157,994 9,880,774 28,976,967 Total Assets 358,102,238 382,925,217

Equity and Liabilities Capital and reserves Stated capital 9 198,467,699 198,467,699 Cash flow hedge reserve 6 (3,728,136) (3,247,138) (Accumulated loss)/ retained earnings (23,605,050) 1,239,063 Total equity 171,134,513 196,459,624

Non-Current Liabilities Interest-bearing borrowings 10 141,386,180 155,907,988 Lease liability 11 15,416,395 15,308,632 156,802,575 171,216,620

Current Liabilities Trade and other payables 12 7,470,682 4,647,559 Interest bearing borrowings 10 17,799,492 6,537,330 Lease liability 11 643,435 633,215 Derivative financial instruments 6 4,251,541 3,430,869 30,165,150 15,248,973 Total Equity and Liabilities 358,102,238 382,925,217

The consolidated financial statements were approved by the Board of directors and authorised for issue on 10 May 2021 and signed on its behalf by:

______Mark Pryce

The accompanying notes on pages 18 to 47 form an integral part of these consolidated financial statements.

14 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Statement of Profit or Loss and Other Comprehensive Income 10 Months 12 Months Figures in GBP Notes 31 December 2020 28 February 2020

Rental revenue 20,470,218 26,154,412 Straight-line lease income 15 528,414 1,837,949 Tenant recoveries 793,329 1,249,788 Revenue 21,791,961 29,242,149 Property operating expenses (2,136,641) (1,773,277) Other operating expenditure (3,784,023) (3,128,428) Operating income 13 15,871,297 24,340,444 Investment income 14 128,909 920,710 Net profit on disposal of investment property, subsidiary and joint venture - 2,889,617 Loss on disposal of listed investment 5 (500,212) - Loss on foreign exchange (48,339) (10,281) Impairment of APIL loan (245,214) (600,000) Fair value adjustments 15 (7,313,105) (36,445) Finance costs 16 (5,226,092) (6,831,347) Profit before taxation 2,667,244 20,672,698 Taxation 17 (7,409) (78,730) Profit for the period/year 2,659,835 20,593,968

Other comprehensive income Items that will be reclassified subsequently to profit or loss Fair value movement on interest rate swaps 6 (480,998) (2,122,841) Total other comprehensive income (480,998) (2,122,841)

Total comprehensive income for the period/year 2,178,837 18,471,127

Profit for the year attributable to: Owners of the parent 2,659,835 20,593,968 2,659,835 20,593,968 Total comprehensive income attributable to: Owners of the parent 2,178,837 18,471,127 2,178,837 18,471,127

All of the Group's results are derived from continuing operations.

The accompanying notes on pages 18 to 47 form an integral part of these consolidated financial statements.

15 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Statement of Changes in Equity Retained earnings/ Cash flow hedge (Accumulated Figures in GBP Notes Stated capital reserve loss) Total Group Balance at 29 February 2019 198,467,699 (1,124,297) (2,063,544) 195,279,858 Profit for the year - - 20,593,968 20,593,968 Other comprehensive income 6 - (2,122,841) - (2,122,841) Dividends 18.1 - - (17,291,361) (17,291,361) Balance at 28 February 2020 198,467,699 (3,247,138) 1,239,063 196,459,624 Profit for the period - - 2,659,835 2,659,835 Other comprehensive income 6 - (480,998) - (480,998) Dividends 18.1 - - (27,503,948) (27,503,948) Balance at 31 December 2020 198,467,699 (3,728,136) (23,605,050) 171,134,513

16 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Statement of Cash Flows 10 Months 12 Months Figures in GBP Notes 31 December 2020 28 February 2020

Cash flows from operating activities Cash generated from operations 18 17,474,566 22,733,319 Interest received 104,221 91,353 Interest paid (4,264,547) (6,390,239) Tax paid 215,930 (860,130) Net cash generated from operating activities 13,530,170 15,574,303

Cash flows from investing activities Disposal of joint venture - 22,626,839 Acquisition and additions to investment properties 4 (3,590,553) (40,457,852) Sale of investment property - 6,899,548 Sale of listed investments 2,674,353 - Disposal of subsidiary 18.3 - 19,846,100 Dividends received 35,760 842,924 Loan advanced to Atlantic Properties Investments Limited (5,445,000) Loan to Atlantic Properties Investments Limited 7,615,000 - Net cash generated by investing activities 1,289,560 9,757,559

Cash flows from financing activities Proceeds from borrowings 18.2 14,899,548 17,764,638 Repayment of borrowings 18.2 (18,415,532) (12,160,883) Lease liabilities repaid 11 (629,215) (73,534) Dividends paid 18.1 (27,503,948) (17,291,361) Net cash utilised in financing activities (31,649,147) (11,761,140)

(Decrease)/increase in cash and cash equivalents (16,829,417) 13,570,722 Cash and cash equivalents at beginning of the period/year 26,157,994 12,597,553 Effects of exchange differences on cash and cash equivalents (48,339) (10,281) Cash and cash equivalents at end of the period/year 8 9,280,238 26,157,994

17 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

1. General information

Atlantic Leaf Properties Limited and its subsidiaries (collectively referred to as the “Group”) hold a portfolio of investment properties in the United Kingdom. The principal activity of the Group is to invest in high quality, investment grade real estate assets and companies which deliver suitable returns for investors through both income and capital growth.

The Company is a UK REIT incorporated in Jersey and is a public company limited by shares in accordance with the Companies (Jersey) Law 1991.

The Company was dual-listed with a primary listing on the Main Board of the Johannesburg Stock Exchange Limited (''JSE'') and a secondary listing on the Official Market of the Stock Exchange of Mauritius Ltd (''SEM'') until 17 August 2020 when Atlantic Leaf Properties Limited was acquired by South Downs Investment LP. Following the acquisition Atlantic Leaf Properties Limited was admitted to the Official List of The International Stock Exchange as a close ended investment vehicle with effect from 17 August 2020.

The Company was managed by Martial Eagle Limited, a Company registered in Mauritius until 17 August 2020. Following the acquisition by South Downs Investment LP the Company is now managed by Cube Management Limited, a company registered in Jersey.

The subsidiaries derive rental income from investment properties.

2. Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board ("IASB") and the Companies (Jersey) Law 1991.

In order to accommodate the financial year end of the Company's shareholder the financial year end of the Group was changed from 28 February to 31 December. The financial statements present the results for the period ended 31 December 2020 and the comparative column represents the year ended 28 February 2020. As a result these two periods are not directly comparable.

Statement of profit or loss and other comprehensive income and Statement of cash flows The Group has elected to present a statement of profit or loss and other comprehensive income and presents its expenses by nature. The Group reports cash flows from operating activities using the indirect method. Interest received and interest paid is presented within operating cash flows. The acquisitions of investment properties are disclosed as cash flows from investing activities because this most appropriately reflects the Group’s business activities.

Preparation of the consolidated financial statements The financial statements have been prepared on a going concern basis, applying a historical cost convention and in accordance with IFRS as issued by the IASB as modified by the revaluation of financial assets at fair value through profit or loss ("FVTPL").

Under Article 105(11) of the Companies (Jersey) Law 1991, the directors of a holding company need not prepare separate financial statements (i.e. Company only financial statements) if consolidated accounts for the company are prepared, unless required to do so by the member of the Company by ordinary resolution. The members of the Company had not passed a resolution requiring separate financial statements and in the Directors’ opinion, the Company meets the definition of a holding company. As permitted by law, the Company’s Board of Directors have elected not to prepare separate financial statements for the Company.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise 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 are changed. Management believes that the underlying assumptions are appropriate. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.1.

18 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

3. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

3.1 Significant accounting judgements, estimates and assumptions The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, at the end of the reporting period. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although the estimates are based on management’s best knowledge and judgements of facts at the reporting date, the actual outcome may differ from those estimates.

These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and any future periods.

Judgements In the process of applying the Group’s accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the financial statements.

(i) Business combination versus asset acquisition The directors consider various factors to determine whether a property acquisition constitutes the acquisition of a business as defined in IFRS 3 or an acquisition of property. A business is defined as an integrated set of activities and assets capable of being conducted and managed to provide returns in the form of dividends, lower cost or other economic benefits directly to investors or other owners. A business consists of inputs and processes, which when applied together create outputs.

Inputs are determined to be the properties or tenants as these are “an economic resource that creates, or has the ability to create, outputs”.

Processes include (but are not limited) to lease management, selection of tenants, marketing decisions, investment decisions, billing and collection of rent as these represent “any system, standard, protocol, convention or rule that when applied to the input creates or has the ability to create outputs”.

Properties are typically bought independent of processes or business operations. As such these would be determined to be an acquisition of property, as opposed to a business as defined and would thus be accounted for in terms of IAS 40, Investment Property. Where the directors have acquired the associated business processes along with the inputs such as property, these are accounted for in terms of IFRS 3, Business Combinations. There were no transactions entered into during the period.

(ii) Agent or Principal - Municipal cost recoveries The substance of the agreements and contracts with each tenant have been assessed in the determination of the Group acting as the Agent or the Principal and the implications of the decision in terms of revenue recognition. The Group has considered who has the primary responsibility to provide the services to the tenants. Given the tenants contract with the Group, the Group as such bears the primary responsibility to provide services and therefore has determined that it is acting as the Principal in providing services to the tenants. When the Group satisfies the performance obligation, the Group recognises revenue as the gross amount of consideration it expects to be entitled in exchange for the services.

(iii) Leases The Group is party to a number of leasing contracts entered into on leasehold properties and therefore as a consequence, the Group is party to a corresponding head lease agreement. The Group is a lessee of the underlying land and accordingly recognises a right-of-use asset in terms of accounting policy 3.5. All subleases are classified as operating leases as the terms of the subleases are not for the major part of the life of the right-of-use assets.

19 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

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.

(i) Fair value of financial instruments Refer to note 21 for information on valuation techniques and inputs used in valuing assets and liabilities.

(ii) Fair value of investment properties Refer to note 4 for information on valuation techniques and inputs used in valuing investment properties.

3.2 Determination of functional currency The primary objective of the Group is to generate returns and capital growth in Pound Sterling ("GBP") for the benefit of its shareholders. The assets and liabilities of the Group and the cash flows are predominantly GBP denominated and GBP is the currency of the primary economic environment in which the Group operates. The Group’s performance is evaluated in GBP. Management, therefore considers GBP as the currency that most faithfully represents the economic effect of the underlying transactions, events and conditions.

3.3 Business combinations Subsidiaries Subsidiaries are all entities over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. Control is assumed when the Group: • has the power over the investee; • is exposed, or has rights, to the variable returns and; • has the ability to use its power to affect its returns.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is accounted for at fair value. Identifiable assets acquired, liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.

The excess of the consideration transferred at the acquisition date over the fair value of the identifiable net asset acquired is recorded as goodwill. If the total consideration transferred is less than the fair value of the net assets of the subsidiary acquired, the difference is regarded as a bargain purchase and is recognised directly in the income statement. Non-controlling interests are measured at acquisition date at either fair value or at the non-controlling interests share of identifiable net assets. The choice of measurement basis is on a transaction by transaction basis as determined by the directors.

Acquisition-related costs are expensed as incurred.

All intragroup assets and liabilities, equity, income and expenses and cashflows relating to transactions between members of the Group are eliminated on consolidation.

Consolidation of a subsidiary begins on the acquisition date, when the entity has control over the subsidiary, and ceases when the Company loses control over the entity. Income and expenses of the acquired subsidiary are included in the consolidated statement of profit or loss and other comprehensive income from the date of control till the date when the control ceases. These are attributable to both the owners of the Company and to the non-controlling interests.

Changes in the Group’s ownership interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions. Where the Group loses control, an amount shall be included in profit or loss as calculated for the difference in aggregate fair value of consideration and the previous carrying amount of any assets, liabilities and non-controlling interests as well as any goodwill. Any amounts recognised previously in other comprehensive income should be accounted as if there was a direct disposal, and thus reclassified to profit and loss when permitted.

Refer to Note 23 for a list of subsidiaries, country of incorporations and percentage holding by the Company.

20 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

3.4 Investment properties Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the companies in the Group, is classified as investment property.

Investment property is measured initially at its cost, including related transaction costs. Refer to note 4.

After initial recognition, investment property is carried at fair value and changes in fair values are recognised in the statement of profit or loss.

Investment properties are derecognised when they have been disposed. Gains or losses arising on disposal of the investment property are recognised in profit and loss, measured as the difference between disposal proceeds and the carrying amount.

The right of use asset at the initial date of recognition is recognised at cost. The cost comprises of the initial measurement of the lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. Subsequent to initial measurement, the right of use asset is carried at fair value and fair value changes are recognised in the statement of profit or loss.

3.5 Leases (i) Lessor The Group is party to numerous leasing contracts as lessor of property. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All of the Group’s leases are operating leases.

Contractual rental income relating to investment properties held directly by the Group is recognised on a straight-line basis over the period from acquisition date of such investment property to the end of the relevant lease term. Where leases are terminated the lease cancellation amount is recognised immediately as revenue. Any direct costs incurred in obtaining the lease are capitilised to the carrying value of the asset, and recognised as an expense over the lease term on the same basis as rental income.

(ii) Lessee The Group assesses whether a contract is or contains a lease, at the inception of the contract. The Group recognises a right of use asset and a corresponding lease liability with respect to all lease arrangement which it is lessee. All lease contracts relate to head lease agreements where the Group is a lessee of the underlying land. The Group accounts for these leases in accordance with IFRS 16 recognising a right of use asset and a corresponding lease liability.

Lease liabilities are initially measured at the present value of future lease payments not yet paid, discounted using the interest rate implicit in the lease, if readily determined, otherwise at the Group’s incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise: • Fixed lease payments, less any lease incentive receivable; • Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; • The amount expected to be payable by the lessee under the residual guarantees; and • The exercise price of purchase options, if reasonably certain the Group will exercise these before the options terminate.

After initial recognition, lease liability is measured by increasing the carrying amount for accrued interest on the lease liability, reducing the carrying amount by any lease payments, and remeasuring the carrying amount to reflect any changes from any reassessments, lease modifications or revision of fixed lease payments. The Group remeasures the lease liability (and makes a corresponding adjustment to the related right of use asset) whenever: • The lease term has changed or there is a significant event or change in circumstance resulting in a change in the assessment of exercise or purchase options; • The variable lease payments change due to change in index or rate or a change in expected payment under a guarantee residual value. The revised payments will be discounted using the unchanged discount rate, unless these are changes are due to a change in floating interest, in which case a revised rate is used; and • A lease contract is modified, and the lease modification is not accounted for as a separate lease. The lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate from the date of modification.

21 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

3.6 Financial instruments Financial assets The Group's financial assets are classified into the following categories: • financial assets mandatorily measured at fair value through profit or loss and • financial assets measured at amortised cost.

The Group's financial assets are classified as follows: • Listed investments are mandatorily measured at fair value through profit or loss under IFRS 9. The Group invests in listed shares with a view to profiting from their total return in the form of dividends and fair value; • Loans receivable are classified as financial assets measured at amortised cost; • Trade and other receivables are classified as financial assets measured at amortised cost; • Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less are classified as financial assets measured at amortised cost; and • Deposits paid that represent a contractual right to cash are classified as financial assets measured at amortised cost. Deposits paid that do not represent a contractual right to cash are presented separately from financial instruments.

Impairment – trade receivables The impairment model under IFRS 9 requires the recognition of impairment provisions based on expected credit losses (“ECL”).

The Group applies a simplified approach and measures the expected impairment loss as lifetime expected credit losses. Under this approach, historical credit losses over a set period up to the reporting date, and forward-looking macroeconomic factors, are considered as inputs. These are used to determine ECLs that result from default events that are possible over the total expected lifetime of the receivables. These receivables contained no financing component.

Utilities: Includes gas, water and electricity costs recharged to tenants. The lifetime expected credit loss is calculated using a provision matrix that calculates the impairment loss based on the historic default rate percentage applied to the trade receivables.

The period of historical credit losses considered is the 12-months up to the reporting date. This period is judged to be most appropriate for estimation of recent payment trends. Historical recovery of these receivables is broken down into the following categories: 0-30 days, 31-60 days, 61-180 days, 181-360 days, and >365 days. The default rate for each recovery period is calculated as the historical default loss divided by the amount outstanding at the end of each time bucket. The historical default rates are then adjusted by any applicable forward-looking information and these expected default rates are subsequently applied to receivables.

Rental Receivables: A large proportion of rental earned by the Group is payable quarterly in advance. The Group considers any rental that has not been received within 90 days to be fully impaired.

Impairment – Other receivables The Group measures the loss allowance at an amount equal to lifetime expected credit losses (lifetime ECL) when there has been a significant increase in credit risk since initial recognition. If the credit risk on a loan has not increased significantly since initial recognition, then the loss allowance for that loan is measured at 12 month expected credit losses (12 month ECL).

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a loan. In contrast, 12 month ECL represents the portion of lifetime ECL that is expected to result from default events on a loan that are possible within 12 months after the reporting date.

In order to assess whether to apply lifetime ECL or 12 month ECL, in other words, whether or not there has been a significant increase in credit risk since initial recognition, the Group considers whether there has been a significant increase in the risk of a default occurring since initial recognition rather than at evidence of a loan being credit impaired at the reporting date or of an actual default occurring.

In assessing whether the credit risk on a loan has increased significantly since initial recognition, the Group compares the risk of a default occurring on the loan as at the reporting date with the risk of a default occurring as at the date of initial recognition. The Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. This information includes budgets and forecasts and the financial health of the entity, as well as the future prospects of the property industry.

22 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

Irrespective of the outcome of the above assessment, the credit risk on a loan is always presumed to have increased significantly since initial recognition if the contractual payments are more than 30 days past due, unless the group has reasonable and supportable information that demonstrates otherwise.

The Group considers that a default event has occurred if there is either a breach of financial covenants by the borrower, or if internal or external information indicates that the borrower is unlikely to pay its creditors in full (without taking collateral into account).

Irrespective of the above analysis, the Group considers that default has occurred when a loan is more than 90 days past due.

The group writes off a loan when there is information indicating that the borrower is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the borrower has been placed under liquidation or has entered into bankruptcy proceedings.

Financial liabilities Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other liabilities at amortised cost. The classification depends on the nature and purpose of the financial liabilities.

The Group's financial liabilities are classified as follows: • Interest bearing borrowings are classified as other financial liabilities at amortised cost; • Derivatives comprising interest rate swaps are held-for-trading financial instruments measured at fair value through profit or loss. The Group applies hedge accounting in accordance with IFRS 9; and • Trade and other payables are classified as other financial liabilities measured at amortised cost.

Interest rate swaps The Group enters into interest swap agreements, some of which are designated as cash flow hedges. For interest rate swap agreements not designated as cashflow hedges any fair value movements are recognised in the profit and loss through fair value in accordance with IFRS 9.

At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions.

The following accounting policy applies for interest rate swaps designated as cash flow hedges:

The effective portion of changes in the fair value of interest rate swap agreements that are designated and qualify as cash flows hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion (if any) is recognised immediately in profit or loss. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the related interest payment is recognised in profit and loss.

When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss.

Note 6 sets out the details of the fair values of the derivative instruments used for hedging purposes.

3.7 Stated capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

23 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

3.8 Taxation Current income tax Current income tax assets and liabilities for the current period are measured 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, at the reporting date in the countries where the Group operate and generate taxable income.

Current income tax relating to items recognised directly in equity through other comprehensive income is recognised in equity and not in the statement of profit or loss.

The Group periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and estimate payables where appropriate.

3.9 Revenue recognition Revenue is recognised when there is a transfer of control of a promised product or service to a customer. Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes any amounts collected on behalf of third parties.

Interest income Interest income is recognised in the statement of profit or loss and other comprehensive income using the effective interest method. Interest income has been disclosed in investment income.

Rental income Rental income from operating leases is recognised on a straight-line basis over the lease term. When the Group provides incentives to its tenants, the cost of incentives is recognised over the lease term, on a straight-line basis.

Dividend income Dividend income is recognised in the statement of comprehensive income on the date the Group's or Company's right to receive payment is established, which in the case of quoted securities is usually the ex-dividend date. Dividend income has been disclosed in investment income.

Tenant recoveries Tenant recoveries are recognised on a contractual basis in terms of the invoice date for the supply services such as utilities to the tenants. The Group bears the primary responsibility to provide such services over time to the tenants based on the contract that each tenant has with the Group as landlord.

3.10 Expense recognition All expenses are accounted for in the statement of profit or loss on an accrual basis.

Property expenses Property expenses comprise all direct operating expenses (including repairs and maintenance) arising from investment property during the period. Where costs relating to obtaining a new lease have been capitalised, these are recognised as an expense over the lease term.

Interest expense Interest expense is recognised in the statement of profit or loss and other comprehensive income using the effective interest rate method. This includes interest from the headleases which recognised as lease liabilities.

3.11 Foreign currency translation Foreign currency transactions are accounted for at the exchange rates prevailing at the date of the transactions. Gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. 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 transaction.

24 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Accounting Policies

3.12 Dividend distribution Dividend distribution to the Group's shareholders is recognised as a liability in the Group's financial statements on the date which the dividend is declared to be paid to the Group's shareholders, as well as directly in equity.

3.13 Changes in accounting policies and disclosures

Adoption of new and revised pronouncements In the current period, the Group has adopted all new and revised IFRSs as issued by the IASB and the IFRS Interpretations Committee that are relevant to its operations and effective for annual reporting periods beginning on 1 March 2020. The adoption of these new and revised IFRSs has not resulted in changes to the Group's accounting policies.

At the date of authorisation of these financial statements for the year ended 31 December 2020, the following IFRSs were adopted:

Details of Standard Details Impact Amendments to IFRS 3 – The amendment clarifies that while a business has Currently the Group has determined that properties are Definition of a business outputs, outputs are not required for an integrated typically bought independent of processes or business Effective as from 1 January set of activities and assets to qualify as a business. To operations. As such these would be determined to be an 2020 be considered a business an acquired set of activities acquisition of property, as opposed to a business as and assets must include, at a minimum, an input and defined and would thus be accounted for in terms of IAS a substantive process that together significantly 40, Investment Property. Where the directors have contribute to the ability to create outputs. acquired the associated business processes along with the inputs such as property, these are accounted for in terms of IFRS 3, Business Combinations.

The amendment introduces an optional The amendment will be applied prospectively to all concentration test that permits a simplified business combinations and asset acquisitions for which assessment of whether an acquired set of activities the acquisition date is after the first annual reporting and assets is not a business. Under the optional period. The Group will have to apply this on a case by concentration test, the acquired set of activities and case basis, as the simplified concentration test can be assets is not a business if substantially all of the fair applied on a transaction-by-transaction basis. The new value of the gross assets acquired is concentrated in a definition and simplified test, would lead to a similar single identifiable asset or group of similar assets. determination of business combination vs asset acquisition which is currently being applied, particularly given the Group’s nature of purchasing investment property.

The application of this amendment has had no material effect on the Group’s consolidated financial statements.

Amendments to IAS 1 and The amendment is intended to make the definition of Given the concept of materiality hasn’t changed, the IAS 8 – Definition of material in IAS 1 easier to understand, without adoption of this amendment has had no material effect material Effective as from 1 intending to alter the underlying concept of on the Group’s consolidated financial statements. January 2020 materiality. The definition in IAS has been replaced by a reference to the definition of material in IAS 1.

The threshold for materiality influencing user has been changed from “could influence” to “could reasonably be expected to influence”.

New standards and interpretations not yet effective The following new and amended standards are not expected to have a significant impact on the Group’s consolidated financial statements. • IFRS 9, IAS 39 and IFRS 7: Interest rate benchmark reform (amendments) • IFRS 16 Leases: Covid-19 related rent concessions (amendment) • IAS 16 Property, Plant and Equipment: Proceeds for intend use (amendment) • IFRS 3 Business Combinations: Reference to conceptual framework (amendment) • IAS 1 Presentation of Financial Statements: Reference to Conceptual Framework (amendment)

25 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

4. Investment properties

Investment properties at fair value 348,069,830 350,866,859

Movement for the period/year At beginning of the period/year 334,925,000 328,910,000 Acquisition and additions to investment properties (including related transaction costs) 3,590,553 40,457,852 Disposal of investment properties - (6,884,093) Disposal of subsidiary - (29,247,491) Changes in fair value (Note 15) (6,505,553) 1,688,732 Balance at end of period/year 332,010,000 334,925,000

Right of use asset - land leased At beginning of the period/year 15,941,859 16,071,119 Right of use asset remeasured 280,987 - Change in fair value (Note 15) (163,016) (129,260) Balance at end of period/year 16,059,830 15,941,859

Valuation assumptions Independent valuations are carried out by Royal Institution of Chartered Surveyors ("RICS") regulated external valuers, who have recent experience in the location and category of the investment properties being valued and on the basis of ‘Market Value’, in accordance with the current Practice Statements contained within the RICS ‘Valuation – Professional Standards, the 2012 Edition’ (the “Red Book”). This is an internationally accepted basis of valuation.

In accordance with RICS, the Investment Method is used to value properties which are income producing future cash flows through the letting of properties. Conventionally, investment value is a product of rent and yield. Each of these elements is derived using comparison techniques within the relevant property markets and sectors.

Discounted cash flow ("DCF") techniques are also frequently used in the appraisal of investment property and again comparison is used to derive values for many of the key inputs in the calculation including not only rent and yield but also the growth rate, discount rate, costs and disposal price.

All valuations are reviewed by management annually, taking into account market forces such as yield movement, occupier and investor sentiment, supply and demand as well as other valuation principles to establish whether there is likely to be a material change in asset values. The reviews are carried out by management and approved by the Board of Directors. An external desktop valuation, in accordance with RICS standards, is carried out at least every 12 months. A full Red Book valuation is done on all of the properties every 3 years. Changes to key inputs may result in a valuation at year end that differs from the last external valuation.

All of the investment properties have been pledged to secure the existing borrowings of GBP 159.2 million (28 February 2020 : GBP 162.4 million). Refer to note 10.

The average forward yield (cap rate) on investment properties at 31 December 2020 is 7.54% (28 February 2020 : 7.05%).

For information about fair value adjustments using significant unobservable inputs (Level 3), refer to note 21 for fair value classification.

The significant unobservable inputs used in the fair value measurement are capitalisation rate and vacancy levels, categorised within Level 3 of the fair value hierarchy of the Group's property portfolio together with the impact of significant movements in these inputs on the fair value measurement.

26 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP

The effect of a change in capitalisation rate of 50 basis points is detailed in the table below:

Country Category Valuation Range of Effect of a change in unobservable capitalisation rate inputs (cap rates) GBP GBP UK Retail Warehouse 4,050,000 7.50% - 8.00% 297,950 UK Industrial 262,960,000 4.70% - 13.40% 20,819,287 UK Office 65,000,000 3.90% - 11.10% 4,324,918 332,010,000 25,442,155

The effect on the current values of the investment property portfolio for an increase in vacancy level by 10% is detailed below :

Country Category Valuation Existing vacancy Effect of a change in rate vacancy level GBP GBP UK Retail Warehouse 4,050,000 0.00% 127,500 UK Industrial 262,960,000 0.32% 10,275,500 UK Office 65,000,000 13.20% 1,059,500 332,010,000 11,462,500

The current portfolio has an existing vacancy rate as at 31 December 2020 of 1.8% (28 February 2020: 2.7%) based on GLA (sq ft).

Future rent receivable 31 December 2020 28 February 2020 Future minimum rent receivable due as follows: - 1 year 25,631,215 24,465,075 - 2 years 25,297,934 24,450,066 - 3 years 22,658,870 23,888,573 - 4 years 21,485,829 21,014,982 - 5 years 21,229,137 20,322,111 - later than 5 years 85,670,200 98,276,795 Total 201,973,185 212,417,602

The Group earns rental income by leasing its investment properties to tenants under non-cancellable operating leases. The Group has determined that it retains all the significant risks and rewards of ownership of these properties and accounts for contracts as operating leases.

27 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP

5. Listed investments

Listed security investments are categorised as financial assets measured at fair value through profit or loss. The fair values of the listed security investments are determined based on quoted prices in active markets. The list of investments are provided below:

The following table indicates the Group’s investment holdings by market value as at year end: Number of ordinary shares Fair value Name of investee Company 31 Dec 2020 28 Feb 2020 31 Dec 2020 28 Feb 2020 Hammerson Plc - 94,109 - 196,312 Klepierre - 10,494 - 243,928 Land Securities Group Plc - 117,842 - 983,509 British Land Company Limited - 179,678 - 900,187 Unibail Rodamco - 5,228 - 490,227 Wereldhave NV - 9,060 - 112,623 - 2,926,786

Balance at the beginning of period/year 2,926,786 3,617,612 Disposals (2,426,574) - Realised fair value on disposal (500,212) - Fair value adjustments - (690,826) Balance at end of period/year - 2,926,786

6. Derivative financial instruments

In accordance with the terms of the borrowing arrangements and Group policy, the subsidiaries have entered into interest rate swap agreements. The interest rate swap agreements are entered into by the borrowing entities to convert the borrowings from floating to fixed interest rates and are used to manage the interest rate profile of financial liabilities and eliminate future exposure to interest rate fluctuations. It is the Group’s policy that no economic trading in derivatives is undertaken.

The following tables set out the interest rate swap agreements at 31 December 2020.

Counterparty Company Fixed basis Swap end date Nominal Fair Value HSBC Farringdon Properties Limited* 1.43% 10/10/2022 14,055,400 880,929 HSBC Farringdon Properties Limited* 0.59% 10/10/2022 3,000,000 35,085 HSBC Trido Limited* 1.44% 10/10/2023 22,910,222 952,784 HSBC Trido Limited* 1.31% 23/03/2021 4,310,625 24,273 HSBC Trido Limited* 1.31% 23/03/2021 5,793,129 32,672 HSBC Trido Limited 0.57% 10/10/2023 10,000,000 165,711 HSBC Lexo Limited* 1.43% 10/10/2023 26,441,141 1,080,705 Santander ALP IOM Limited* 1.42% 06/12/2023 17,592,750 740,473 Santander ALP IOM Limited 0.70% 10/10/2023 5,000,000 104,749 Lloyds Basswood* 0.71% 02/08/2022 18,000,000 234,160 127,103,267 4,251,541 Interest accrual (523,405) 3,728,136

28 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP

The following tables set out the interest rate swap agreements at 28 February 2020.

Counterparty Company Fixed basis Swap end date Nominal Fair Value HSBC Farringdon Properties Limited* 1.60% 16/10/2020 20,000,000 150,197 HSBC Farringdon Properties Limited* 1.43% 10/10/2022 15,636,175 694,691 HSBC Farringdon Properties Limited 0.59% 10/10/2022 3,000,000 8,106 HSBC Trido Limited* 1.44% 10/10/2023 23,196,127 797,334 HSBC Trido Limited* 1.31% 23/03/2021 4,417,500 39,314 HSBC Trido Limited* 1.31% 23/03/2021 5,937,825 52,978 HSBC Trido Limited 0.57% 10/10/2023 10,000,000 31,640 HSBC Lexo Limited* 1.43% 10/10/2023 26,984,598 906,746 Santander ALP IOM Limited* 1.42% 06/12/2023 18,117,750 608,306 Santander ALP IOM Limited 0.70% 10/10/2023 5,000,000 40,311 Lloyds Basswood* 0.71% 02/08/2022 18,000,000 101,246 150,289,975 3,430,869 Interest accrual (183,731) 3,247,138

Refer to note 20.1(b) for interest rate risk sensitivity analysis.

Derivative financial liabilities comprise of interest rate swaps and are measured at the present value of future cash flows estimated and discounted based on the applicable yield curves derived from quoted interest rates.

*Hedge accounting

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument.

The Group enters into interest rate swaps that have similar critical terms as the hedged item, such as reference rate, reset dates, payment dates, maturities and notional amount. The Group does not hedge 100% of its loans, therefore the hedged item is identified as a proportion of the outstanding loans up to the notional amount of the swaps. As all critical terms matched during the period, the economic relationship was 100% effective.

Hedge ineffectiveness for interest rate swaps is assessed using the hypothetical derivative method. It may occur due to: • the credit value/debit value adjustment on the interest rate swaps which is not matched by the loan; and • differences in critical terms between the interest rate swaps and loans. There was no ineffectiveness during the current or prior year in relation to the interest rate swaps designated as cash flow hedges.

29 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

7. Trade and other receivables

Other receivables 360,871 2,485,665 - Non-Current 151,634 154,605 - Current (Refer to note 23 for further details) 209,237 2,331,060 Trade receivables 124,166 258,100 Prepayments 249,798 47,445 Other - 14,830 734,835 2,806,040

As at 31 December 2020 the Group had overdue receivables of GBP 1,929, however there were no material impairment provisions for expected credit losses.

Trade receivables aging at period/year end was as follows:

0 to 30 days 318,484 188,303 31 to 60 days 1,226 43,565 61 to 90 days 1,884 26,232 Past due but not impaired 1,929 - 323,523 258,100

8. Cash and cash equivalents

Bank balances 9,280,238 26,157,994

The Group had no restricted cash as at 31 December 2020. Restricted cash is cash where there is a legal restriction to specify its type of use, i.e. this may be where there is a joint arrangement with a tenant under an asset management initiative.

9. Stated capital

Issued and fully paid 31 December 2020 28 February 2020 Number of Net amount Number of ordinary Net amount after ordinary shares after costs shares costs At the beginning of the period/year 188,976,628 198,467,699 188,976,628 198,467,699

At the end of the period/year 188,976,628 198,467,699 188,976,628 198,467,699

The ordinary shares are at no par value and each confers on the holder, one voting right, right to dividend and right to an equal share in the distribution of surplus of assets of the Company.

The unissued shares are under the control of the directors of the Company.

30 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

10. Interest-bearing borrowings

Non-current 141,386,180 155,907,988 Current 17,799,492 6,537,330 159,185,672 162,445,318

Non-current and current Facility end Funder Name of borrower Interest rate date Santander Bank ALP IOM Limited LIBOR + 2.15% 16/12/2023 24,753,594 25,592,949 HSBC Bank Farringdon Properties Limited LIBOR + 1.95% 10/10/2022 30,124,373 31,115,725 Farringdon Properties Limited LIBOR + 1.95% 10/10/2022 9,599,970 8,100,422 Lexo Limited LIBOR +2.10% 10/10/2023 25,855,519 26,783,374 Trido Limited LIBOR +2.10% 10/10/2023 22,461,902 23,268,586 Trido Limited LIBOR +2.10% 10/10/2023 14,999,996 14,999,996 Trido Limited LIBOR + 1.60% 23/03/2021 5,654,166 5,855,073 Trido Limited LIBOR + 1.70% 23/03/2021 7,837,869 7,845,483 Lloyds Bank Basswood Limited LIBOR +1.80% 02/08/2022 17,898,283 17,848,664 AX Markets underwritten through Interactive Brokers LLC Atlantic Leaf Properties Limited 0.99% * N/A - 1,035,046 159,185,672 162,445,318 * This is a variable rate

The Group had undrawn facilities at year end of GBP 1,106,734 (28 February 2020 : GBP 1,599,250).

Interest costs may increase or decrease as a result of changes in the interest rates. Debt facilities have been hedged using interest rate swap agreements as per note 6. The weighted average floating rates were at LIBOR plus a margin of 1.99% (28 February 2020 : 1.99%). Refer to note 20.1(b) for details on Group interest rate risk management.

Transaction costs capitalised to the cost of debt that are amortised over the term of the loan amounted to GBP 1,199,224 in the current financial period (28 February 2020 : GBP 1,183,734).

Investment properties have been pledged to secure borrowings. Refer to note 4.

Borrowing powers The borrowing capacity of the Company and its subsidiaries is unlimited in terms of their Memorandum of Incorporation.

31 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

11. Lease Liability

At beginning of the period/year 15,941,847 - IFRS 16 Lease liability recognised - 16,015,392 Remeasurement of lease liability 280,989 - Interest 466,200 559,667 Lease payments (629,206) (633,212) Balance at end of period 16,059,830 15,941,847

Lease liabilities are due as follows: Not later than one year 643,435 633,215 Between one and five years 2,573,740 2,532,860 After five years 12,842,655 12,775,772 16,059,830 15,941,847

The Group recognised a lease liability as result of adopting IFRS 16 during the year ended 28 February 2020. An incremental borrowing rate of 3.5% (28 February 2020 : 3.5%) based on the Groups cost of funding has been used in calculating the lease liability.

Contractual undiscounted cashflows are as follows: Not later than one year 643,435 633,215 Between one and five years 2,573,740 2,532,860 After five years 41,334,735 41,037,297 Total 44,551,910 44,203,372

Reconciliation of lease commitments from IAS 17 to IFRS 16: Operating lease commitments before discounting as at 1 March 2019 - 44,836,587 Discounted using the incremental borrowing rate - (28,821,195) Lease liability as at 1 March 2019 - 16,015,392

12. Trade and other payables

Accruals 398,204 310,371 Rent received in advance 4,362,387 1,667,904 Trade payables 582,403 1,092,886 Value Added Tax 1,373,562 873,473 Accrued interest 729,214 642,006 Other 24,912 60,919 7,470,682 4,647,559

32 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

13. Net income

Net income is arrived at after taking into account the following items:

Directors' emoluments - Directors fees 314,416 170,918

Direct operating expenses that did not generate rental income Security 61,660 21,966 Insurance 102,717 - Void property costs 448,116 -

These relate to costs for vacant periods during the year at Peterborough, whilst the building was undergoing refurbishment.

14. Investment income

Dividend income - listed investments 35,760 223,900 Dividend income - joint venture - 619,000 Interest on bank balances 8,993 41,539 Interest earned on loan facilities. Refer to note 23. 84,156 36,271 128,909 920,710

Investment income is derived from financial assets as follows: Financial assets measured at amortised cost 93,149 77,810 Financial assets measured at fair value 35,760 223,900 128,909 301,710

15. Fair value adjustments

Fair value adjustments to investment properties (Note 4) (6,505,553) 1,688,732 Fair value gain on investment properties 5,378,355 17,102,284 Fair value loss on investment properties (11,883,908) (15,413,552) Straight line lease adjustments (528,414) (1,837,949) Fair value adjustment on right of use asset (163,016) (129,260) Fair value adjustment on listed investments (Note 5) - (690,826) Fair value adjustment on interest rate swaps (116,122) (84,355) Fair value adjustment on asset held for sale - 1,017,213 (7,313,105) (36,445)

16. Finance costs

Interest on loan facilities 3,208,925 5,532,904 Other interest 3,516 - Interest on interest rate swaps 1,067,224 726,611 Amortised finance costs 480,227 - Interest on lease liability 466,200 571,832 5,226,092 6,831,347

Finance costs were derived from financial liabilities measured at amortised cost.

33 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

17. Taxation

Non-Resident Landlord Tax (2,583) 31,423 Withholding tax 9,992 47,307 7,409 78,730

Corporate taxation As a UK REIT, the Company does not pay UK direct taxes on the income and gains from its qualifying UK Property Rental Business. Instead, shareholders are broadly taxed on the distributions they receive as if they held the property directly by way of a UK withholding tax, generally at a rate of 20%. Residual income and gains that aren’t derived from the Company’s Property Rental Business are subject to corporate tax at the company level, currently at a rate of 19%. Distributions of such residual profits and gains are not subject to a UK withholding tax.

The tax charge recognised in the year is comprised entirely of prior adjustments related to the final 2019 non-resident landlord tax returns submitted during the year. There is no tax charge relating to income derived in the year ended 31 December 2020.

Factors affecting the tax charge for the year The tax assessed for the year is lower than the standard rate of corporate tax in the UK. The differences are explained below:

Profit on ordinary activities before taxation 2,667,244 20,672,698

Theoretical tax at UK corporate tax rate of 19% 506,776 3,927,813 Prior period adjustments (2,583) 31,423 REIT exempt income (2,395,204) (4,113,339) Non-taxable items 1,891,682 115,648 Residual losses (3,254) 69,878 Total tax charge (2,583) 31,423

Non taxable items include income and gains that are not taxable for corporate tax purposes other than property rental income exempt from UK corporate tax in accordance with Part 12 of CTA 2010.

REIT exempt income includes property rental income that is exempt from UK corporate tax in accordance with Part 12 of CTA 2010.

Recognition of tax for the period/year Balance at beginning of the year (167,538) 613,862 Tax charge for the period/year 7,409 78,730 Tax paid 177,464 (860,130) Balance at period/year end 17,335 (167,538)

34 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

18. Cash generated from operating activities

Profit before tax 2,667,244 20,672,698 Adjustments for: Interest expense 5,226,092 6,831,347 Foreign exchange loss 48,339 10,281 Interest income (93,149) (77,810) Dividend income (35,760) (842,900) Fair value loss on investment properties (Note 15) 7,033,967 149,217 Fair value adjustment to listed investments - 690,826 Fair value adjustment on assets held for sale - (1,017,213) Impairment recognised on APIL loan 245,214 600,000 Fair value adjustment - Right of use asset 163,016 129,260 Fair value gain on derivatives 116,122 84,355 Net profit on sale of investment property, subsidiary and joint venture - (2,889,617) Loss on disposal of listed investments 500,212 - Movements in straight-lining lease balance (528,414) (1,837,949) Operating cash flow before working capital changes 15,342,883 22,502,495 Working capital changes (Increase)/decrease in trade and other receivables (282,007) 159,128 Increase in trade and other payables 2,413,690 71,696 Cash generated from operating activities 17,474,566 22,733,319

18.1 Dividends paid to shareholders

Dividends declared during the period/year 27,503,948 17,480,338

18.2 Reconciliation of liabilities arising from financing activities

Below is a reconciliation of the Group’s liabilities arising from financing activities, which includes both cash and non-cash charges. Liabilities from financing are those classified or will be classified in the consolidated statement of cash flows as cash from financing as per interest bearing borrowing in note 10.

Interest Bearing borrowings At Beginning of the period/year 162,445,318 170,147,257 Proceeds from borrowings 14,899,548 17,764,638 Repayment of borrowings (18,415,532) (12,160,883) Disposal of subsidiary - (13,823,614) Non cash items: Amortising Costs capitalised 256,338 517,920 Balance at end of period/year 159,185,672 162,445,318

35 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

18.3 Disposal of subsidiary

On 28 February 2020 the Group disposed of Hyder Limited a wholly owned subsidiary.

Details of the disposal are as follows: Investment property 33,993,700 Cash and cash equivalents 363,773 Repayment of borrowings (13,823,614) Sundry creditors (323,986) 20,209,873 Cash (363,773) Consideration received 19,846,100

19. Financial instruments by category

Financial assets Fair value measured at through profit 31 December 2020 amortised cost or loss Total Financial assets Trade and other receivables (excluding prepayments) - 485,037 - 485,037 Cash and cash equivalents - - 9,280,238 - 9,280,238 - - 9,765,275 - 9,765,275

Fair value through profit Financial liabilities or loss - held amortised cost for trading Total Financial liabilities Trade and other payables (excluding rental received in advance and taxes) - 1,734,733 - 1,734,733 Interest-bearing borrowings - 159,185,672 - 159,185,672 Derivative financial instruments - - 4,251,541 4,251,541 - 160,920,405 4,251,541 165,171,946

36 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP

Financial assets Fair value measured at through profit 28 February 2020 amortised cost or loss Total Financial assets Listed investments - - - 2,926,786 2,926,786 Trade and other receivables (excluding prepayments) - - 2,758,595 - 2,758,595 Cash and cash equivalents - - 26,157,994 - 26,157,994 - - 28,916,589 2,926,786 31,843,375

Fair value through profit Financial liabilities or loss - held amortised cost for trading Total Financial liabilities Trade and other payables (excluding rental received in advance and taxes) - 2,106,182 - 2,106,182 Interest-bearing borrowings - 162,445,318 - 162,445,318 Derivative financial instruments - - 3,430,869 3,430,869 - 164,551,500 3,430,869 167,982,369

Gains/(losses) from the above categories of financial assets are disclosed as follows: • Profit on disposal of listed investment is shown on the face of the statement of profit or loss and other comprehensive income. • Fair value gains/ (losses) on derivative financial instruments are shown on the face of the statement of profit or loss and other comprehensive income. • Interest income on trade and other receivables and cash and cash equivalents is included in investment income and shown on the face of the statement of profit or loss and other comprehensive income.

37 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP

20. Financial Risk Management

The Group’s objective in managing risk is the creation and protection of shareholder value. Risk is inherent in the Group’s activities, but it is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. The process of risk management is critical to the Group’s continuing profitability.

The Board of Directors has set up a separate Risk and Audit Committee to assist the Board in identifying and evaluating financial risks in close co-operation with the Group's operating units to assist in :

• The safeguarding of the Group’s assets; • The appropriateness and effectiveness of the Group’s system of internal controls; • The quality and integrity of financial reporting and disclosures, and the risks related thereto; • The Group’s compliance with all applicable legal, regulatory and accounting requirements; • An assessment of the Group's service providers; and • An assessment of the adequacy or otherwise of the insurance cover taken out by the Company and its subsidiaries.

The Board provides written principles for overall risk management, as well as written policies covering specific areas such as foreign exchange risk, interest rate risk and investing excess liquidity. These policies are reviewed regularly to reflect changes in market conditions and in the Group's activities.

Key financial risk management reports are produced quarterly on a Group level and provided to the key management personnel in the Group.

Financial Risk Factors The Group’s activities expose it to a variety of financial risks: market risk (which includes currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.

20.1 Market Risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Group’s market risks arise from open positions in: (a) foreign currencies, and (b) interest-bearing assets and liabilities, to the extent that these are exposed to general and specific market movements. Management sets guidelines on the exposure to currency and interest rate risk that may be accepted, which are monitored on a monthly basis (see details below). However, the use of this approach does not prevent losses outside of these guidelines in the event of more significant market movements.

Sensitivities to market risks included below are based on a change in one factor while holding all other factors constant. In practice, this is unlikely to occur, and changes in some of the factors may be correlated - for example, changes in interest rate and changes in foreign currency rates.

38 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

(a) Currency risk The Group operates internationally and is exposed to foreign currency risk. The Group’s financial assets and liabilities, and those of its underlying subsidiaries are predominantly denominated in GBP which is the Group’s functional currency.

As at 31 December 2020 the Group no longer has financial assets or liabilities denominated in foreign currencies. As at 28 February 2020 the Group had financial assets and liabilities denominated in Euro (“EUR”), US Dollar ("USD") and South African Rand (“ZAR”).

Currency profile The currency profile of the Group and the Company’s financial assets and liabilities is summarised as follows: Financial assets GBP 9,755,395 30,939,780 EUR - 846,778 ZAR - 56,817 9,755,395 31,843,375

Prepayments amounting to GBP 249,798 (28 February 2020 : GBP 47,445) are excluded from the financial assets as at 31 December 2020.

Financial liabilities GBP 165,171,948 166,947,323 EUR - 1,035,046 165,171,948 167,982,369

The Group is not exposed to material changes in foreign exchange rates and equity indices.

(b) Cash flow and fair value interest rate risk The Group’s interest rate risk principally arises from long-term borrowings. Refer to note 10. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. The Group has no significant exposure to fair value interest rate risk.

The Group’s policy is to fix the interest rate on a portion of its interest bearing borrowings. To manage this, the Group enters into interest rate swaps in which the Group agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed upon notional principal amount. At 31 December 2020, after taking into account the effect of interest rate swaps, 79% (28 February 2020 : 89%) of the Group’s borrowings are at a fixed rate of interest. Trade receivables and trade payables are interest free and with a term of less than one year, so it is assumed that there is no interest rate risk associated with these financial assets and liabilities.

The Group’s interest rate risk is monitored by the Group’s management on a monthly basis. The interest rate risk policy is approved annually by the Board of Directors. Management analyses the Group’s interest rate exposure on a dynamic basis. Various scenarios are simulated, taking into consideration refinancing, renewal of existing positions and alternative financing sources. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. The scenarios are run only for liabilities that represent the major interest-bearing positions.

Interest rate risk sensitivity analysis The impact of the change in interest rate (+/– 50 basis points) on profit before tax is as follows: Cash and cash equivalents 191,025 96,169 Borrowings 55,344 159,484

39 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

(c) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk arises from cash and cash equivalents held at banks, trade receivables, including rental receivables from lessees. Credit risk is managed on a Group basis and the group assigns internal credit ratings to all material tenants. Based on the credit rating assigned, the group reviews a credit risk exposure matrix showing the groups maximum acceptable rental income exposure to individual tenants. The overall exposure of the Group to tenant risks are subject to a quarterly review.

In order to minimise any possible risks relating to cash, surplus funds can only be invested with investment grade banks.

As at 28 February 2020 the Company had guaranteed payment obligations of a loan of GBP 5.6 million by Investec Limited to Atlantic Property Investments Limited. The loan was repaid on 30 July 2020.

Maximum exposure to credit risk Cash and cash equivalents 9,280,238 26,157,994 Trade and other receivables (excluding prepayments) 485,037 2,758,595 Guarantee - 5,600,000 9,765,275 34,516,589 (d) Liquidity risk Liquidity risk is the risk that the Group may not be able to generate sufficient cash resources to settle their obligations in full as they fall due or can only do so on terms that are materially disadvantageous. The Group manages liquidity risk through an ongoing review of future commitments, credit facilities and interest rates so as to balance the Group’s exposure to interest rate and refinancing risk.

The Group’s liquidity position is monitored on a daily basis by management and is reviewed quarterly by the Board of Directors. A summary table with maturity of financial assets and liabilities presented below is derived from managerial reports at Group level. The amounts disclosed in the tables below are the contractual undiscounted cash flows. Undiscounted cash flows in respect of balances due within 12 months generally equal their carrying amounts in the statement of financial position, as the impact of discounting is not significant.

Management constantly reviews the liquidity risk of the Group which includes the long term repayment profile of the bank borrowings. The Group plans to fund these payments in the future by refinancing the debt. Management are in constant communication with existing lenders regarding their appetite to continue to provide funding after the forecasted repayments dates.

The maturity analysis of financial instruments as at 31 December 2020 is as follows:

Between 1 and 5 31 December 2020 Less than 1 year years Over 5 years Total Assets Cash and cash equivalents 9,280,238 - - 9,280,238 Trade and other receivables (excluding prepayments) 333,403 - 151,634 485,037 9,613,641 - 151,634 9,765,275 Liabilities Bank borrowings (inclusive of expected future interest payments) 20,905,679 147,027,757 - 167,933,436 Derivative financial instruments (expected future interest payments) 1,580,257 2,496,043 - 4,076,300 Lease liability (note 11) 643,435 2,573,740 12,842,655 16,059,830 Trade and other payables: - Trade and other payables 607,315 - - 607,315 - Accruals 398,204 - - 398,204 24,134,890 152,097,540 12,842,655 189,075,085

40 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

The maturity analysis of financial instruments as at 28 February 2020 is as follows:

Between 1 and 5 28 February 2020 Less than 1 year years Over 5 years Total Assets Cash and cash equivalents 26,157,994 - - 26,157,994 Listed securities 2,926,786 - - 2,926,786 Trade and other receivables (excluding prepayments) 2,603,990 - 154,605 2,758,595 31,688,770 - 154,605 31,843,375 Liabilities Bank borrowings (inclusive of expected future interest payments) 8,525,539 168,377,006 - 176,902,545 Derivative financial instruments (expected future interest payments) 711,955 1,452,501 - 2,164,456 Lease liability (note 11) 633,215 2,532,860 12,775,772 15,941,847 Trade and other payables: - Trade payables 1,153,805 - - 1,153,805 - Accruals 310,371 - - 310,371 Guarantees 5,600,000 - - 5,600,000 16,934,885 172,362,367 12,775,772 202,073,024

20.2 Capital risk management

The gearing ratio is as follows: Total borrowings (Note 10) 159,185,672 162,445,318 Less: cash and cash equivalents (Note 8) (9,280,238) (26,157,994) Net debt 149,905,434 136,287,324

Total investment assets excluding right of use asset 332,010,000 337,851,786

Loan to value ratio 45% 40%

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders or return capital to shareholders. To reduce debt, the Group can issue new shares or sell assets.

The Group strategy is to maintain a loan to value ("LTV") ratio that ensures the property performance is translated into an enhanced return to shareholders, while at the same time ensuring that it will be able to continue as a going concern through changing market conditions. The directors are of the opinion that an LTV ratio (excluding cash and cash equivalents) of 50%, in respect of secured external borrowings is an appropriate target for the Group.

The Group manages its capital to ensure it is able to continue as a going concern. The capital structure of the Group consists of cash and equity attributable to the shareholders, comprising issued share capital and accumulated profit (as disclosed in the Consolidated Statement of Financial Position). The capital of the Group is represented by the net assets attributable to the Shareholders. The Group's objective when managing the capital is to safeguard the ability to continue as a going concern in order to provide returns for the Shareholders and benefits for other stakeholders and to maintain a strong capital base to support the development of the investment activities of the Group. The directors monitor capital on the basis of the value of the net assets attributable to the Shareholders. The Group is not exposed to any externally imposed capital requirements.

41 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

21. Fair value estimation

The table below analyses financial instruments and investment properties carried at fair value, by valuation method. The different levels have been defined, based on the inputs used as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)

31 December 2020 Level 1 Level 2 Level 3 Total fair value Assets and liabilities Investment properties - - 348,069,830 348,069,830 Derivative financial liabilities - (4,251,541) - (4,251,541)

28 February 2020 Level 1 Level 2 Level 3 Total fair value Assets and liabilities Investment properties - - 350,866,859 350,866,859 Listed securities 2,926,786 - - 2,926,786 Derivative financial liabilities - (3,430,869) - (3,430,869)

Significant transfers between Levels 1, 2 and 3 There have been no transfers between levels during the period under review. The assets held for sale in the prior year were recognised at fair value less costs to sell.

Unobservable inputs Unobservable inputs for Level 3 investment properties are disclosed in note 4.

42 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

22. Segment report

The Group is focused on investment properties, which are located in the United Kingdom. Each segment derives its revenue from the rental of investment properties.

During the financial period, revenues from a single customer within the industrial segment amounted to GBP 8,317,618 (28 February 2020: GBP 8,565,006), this equates to more than 10% of the Group's revenues.

Retail Unallocated 31 December 2020 Industrial Office Warehouse items Total Statement of profit or loss Operating income 15,636,196 2,667,925 224,493 (2,657,317) 15,871,297 Other income and Foreign exchange - - - 1 80,570 80,570 Net profit on disposal of investment property - - - 464,386 464,386 Fair value adjustments - investment property 3,868,355 (10,041,908) (332,000) - (6,505,553) Fair value adjustments - Right of use asset (163,016) - - - (163,016) Fair value - asset held for sale - - - - - Fair value - listed investments - - - 2 (964,598) (964,598) Fair value - Interest rate swaps (116,123) - - - (116,123) Interest expense (3,955,793) (1,215,090) (55,209) - (5,226,092) Impairment of APIL loan - - - (245,214) (245,214) Income tax 1,953 630 - (9,992) (7,409)

Operating income includes: Segment revenue 17,719,034 3,836,184 236,743 - 21,791,961

Statement of financial position Total assets 279,199,044 65,553,563 4,050,000 3 9,299,638 358,102,245 Total borrowings 143,565,607 13,327,919 2,292,146 - 159,185,672

Reconciliation of unallocated items Statement of profit or loss 1. Dividends on listed investments, foreign exchange and other investment income. 2. Fair value gain on the listed portfolio prior to disposal.

Statement of financial position 3. The unallocated item under total assets is made up as follows: (GPB '000's) Cash and cash equivalents 9,280 Other receivable 2 Tax receivable 17 9,299

43 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

Retail Unallocated 28 February 2020 Industrial Office Warehouse items Total Statement of profit or loss Operating income 19,967,262 5,623,682 239,362 (1,489,862) 24,340,444 Other income and Foreign exchange - - 619,000 1 291,429 910,429 Net profit on disposal of investment properties and joint venture 4,313,263 - (1,423,646) - 2,889,617 Fair value adjustments - investment property 1,994,190 (2,010,872) (132,535) - (149,217) Fair value adjustments - Right of use asset (129,260) - - - (129,260) Fair value - asset held for sale 183,068 - 834,145 - 1,017,213 Fair value - listed investments - - - 2 (690,826) (690,826) Fair value - Interest rate swaps (84,353) - - - (84,353) Interest expense (5,290,026) (1,460,483) (80,838) - (6,831,347) Impairment of APIL loan - - - (600,000) (600,000) Income tax (54,109) 8,864 13,822 (47,307) (78,730)

Operating income includes: Segment revenue 22,923,203 6,064,817 254,129 - 29,242,149

Statement of financial position Additions to investment property 40,457,852 - - - 40,457,852 Total assets 275,139,958 71,635,000 4,350,000 3 31,800,259 382,925,217 Total borrowings 145,340,452 13,690,027 2,379,791 4 1,035,048 162,445,318

Reconciliation of unallocated items Statement of profit or loss 1. Dividends on listed investments, foreign exchange and other investment income. 2. Fair value loss on the listed portfolio.

Statement of financial position 3. The unallocated item under total assets is made up as follows: (GPB '000's) Listed investments 2,927 Loan receivable from APIL 2,331 Cash and cash equivalents 26,158 Other receivable 217 Tax receivable 167 31,800

4. Interest-bearing debt that originated through the broker for the purchase of the listed investments.

44 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

23. Related parties

Relationships: Subsidiaries: Entity Country of incorporation Percentage holding ALF Guernsey Limited Guernsey 100 % 100 % ALP Guernsey Limited Guernsey 100 % 100 % ALP IOM Limited Isle of Man 100 % 100 % Austen Limited Isle of Man 100 % 100 % Farringdon Properties Limited Isle of Man 100 % 100 % Islington Properties Limited Isle of Man 100 % 100 % Lexo Limited Isle of Man 100 % 100 % Trido Limited Isle of Man 100 % 100 % SPCP Group lll LOPD 14, Ltd British Virgin Islands 100 % 100 % Basswood Limited Isle of Man 100 % 100 %

All the subsidiaries are either directly or indirectly engaged in real estate activities.

Entities with common directors: Cube Management Limited

Directors: Refer to Directors' Report

Amount receivable from Atlantic Property Investments Limited Balance at beginning of period/year 2,331,060 3,083,683 Loan advanced 5,445,000 - Loan repayment (7,615,000) (139,018) Interest accrued 84,154 36,271 Interest repayment - (49,876) Loan impairment (245,214) (600,000) Balance at end of period/year - 2,331,060

Atlantic Property Investments Limited (“APIL”) was an unconsolidated entity wholly-owned by Martial Eagle Limited (“Martial Eagle”), the management company. During the period APIL repaid a portion of the loan prior to its liquidation, the remaining balance of the loan GBP 845,214 was written off.

Amount due to related party - Martial Eagle Limited Balance at beginning of period/year 619,698 451,805 Transaction fees 500,000 488,751 Property service fee 636,676 1,797,120 Specific expenses 459 40,375 Payments (1,756,833) (2,158,353) Balance at end of period/year - 619,698

Martial Eagle was the management company of the group up until 17 August 2020.

Per the property service agreement (''PSA''), a property service fee of 0.5% on the gross property assets, amongst others, was payable to Martial Eagle Limited. Additionally, Martial Eagle Limited was entitled to transaction fees of 0.5% on the gross asset value, capped at GBP 150,000 per transaction, such fees being payable only until the Group’s assets reach GBP 500 million. These fees were compensation paid to entities for key management personnel services.

45 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

Amount due to related party - Cube Management Limited ('Cube') Balance at beginning of period/year - - Property service fee 621,232 - Payments (202,576) - Balance at end of period/year 418,656 -

Cube Management Limited was the management company of the group from 17 August 2020.

These transactions are conducted terms equivalent to those that pervail in arm's length transactions.

Advisor's fee Per the property service agreement (''PSA''), a property service fee of 0.5% per annum on the gross property assets held by ALPL at 17 August 2020 is payable to Cube. For any assets acquired subsequent to 17 August 2020 a property service fee of 0.35% will be payable.

Acquisition fee Cube is entitled to transaction fees of 0.75% for any off-market acquisition sourced by Cube not to be less than GBP 25,000 or greater than GBP 200,000 per transaction. For any on-market acquisition Cube is entitled to transaction fees of 0.2% not to be less than GBP 25,000 or greater than GBP 125,000.

Sales fee Cube is entitled to 0.15% of the net sales proceeds of each property which is directly or indirectly disposed of to a third party, the fee shall be no less than GBP 25,000 or greater than GBP 200,000. If the sales fee payable to a third party exceeds 0.85% of the net sales proceeds, then sales fee will be reduced by the amount of excess.

Professional fees paid to companies relating to directors of subsidiaries 109,250 180,947

An amount of GBP 34,050 (28 February 2020: GBP 44,076) has been paid as directors fees and GBP 75,200 (28 February 2020: GBP 136,871) paid for professional fees. None of these payments have been made to directors of Atlantic Leaf Properties Limited.

Fees paid relate to management, consulting, technical or other fees paid for such services rendered, directly or indirectly, including payments to management companies for acting as directors of subsidiaries.

Directors fees Peter Bacon 18,727 42,100 Cleopatra Folkes 11,118 25,250 Nicholas Winearls 11,118 25,000 Laurence Rapp 10,049 23,100 Rudolf Pretorius 13,470 29,550 Charles Butler 19,100 25,918 83,582 170,918

Directors fees - Termination fees Peter Bacon 43,500 - Cleopatra Folkes 26,000 - Nicholas Winearls 26,000 - Laurence Rapp 23,500 - Rudolf Pretorius 31,500 - Charles Butler 81,500 - 232,000 -

Non-executive directors' remuneration consists of short term employee benefits only.

46 ATLANTIC LEAF PROPERTIES LIMITED (Registration Number 128426) Consolidated Financial Statements for the 10 month period ended 31 December 2020

Notes to the Consolidated Financial Statements Figures in GBP 31 December 2020 28 February 2020

24. Going concern

The consolidated financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

During the 10 month period ended 31 December 2020 and the subsequent period to date of the financial statements, the COVID-19 pandemic has caused extensive disruption to business and economic activities globally. Although COVID-19 has not had a significant or ongoing adverse impact on the Group to date, its impact on the Group’s operating arrangement, including access to capital and liquidity is subject to ongoing review by the directors and senior management. This includes assessment of the Group’s medium-term financial plan and liquidity plan, which is supported by rigorous downside scenario testing. The Group has effectively achieved 100% rent collection for the period ended 31 December 2020, this has continued to remain strong after year end with rent collection for the March quarter at almost 100% with only one tenant remaining on a monthly payment plan.

At period end, the Group have two HSBC facilities amounting to GBP 13.5 million which were due to expire on 23 March 2021. Subsequent to the period end these facilities have been renewed on a 6-month term expiring in October 2021 and the Directors have no reason to believe that these will not continue to be refinanced as required. These facilities are currently funded by HSBC and form part of the broader cross- collateralised pool of assets pledged to HSBC. The total facility outstanding with HSBC is approximately GBP 116.5million.

The directors consider that the Group is well placed to manage business and financial risk in the current environment and have concluded that there is a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future being twelve months from the date of approval of these financial statements. Accordingly, the Group financial statements have been prepared on a going concern basis.

25. Events after the reporting period

Dividend declared The Group declared a dividend of GBP 3 million on 28 January 2021 and a dividend of GBP 5 million on 14 April 2021.

Debt facilities refinanced The HSBC facilities totalling GBP 13.5 million, which were due to expire on 23 March 2020, were refinanced subsequent to the period end on a 6 month term expiring in October 2021.

Disposal of investment properties The Group disposed of the following properties: • 53-56 Portmanmoor Road, Cardiff on 31 March 2021. The sale price was GBP 3.5 million and the sale resulted in a profit on disposal of GBP 0.5 million. • Brecon Enterprise Park, Brecon on 30 April 2021. The sale price was GBP 4.3 million and the sale resulted in a profit on disposal of GBP 0.2 million. • 4 Main Street, Greenock on 7 May 2021. The sale price was GBP 9.25 million and the sale resulted in a profit on disposal of GBP 0.2 million.

47