Stenprop Limited
(Incorporated in Guernsey)
Registration number: 64865
BSX share code: STP.BH
JSE share code: STP
ISIN: GG00BFWMR296

Provisional Annual Results
for the year ended 31 March 2018

Highlights

GBP1.41
Diluted
EPRA NAV*
per share

9.09 pence
Diluted adjusted
EPRA earnings
per share

4.0 pence
Final dividend per
share declared

49.2%
Loan-to-value ratio
at year end
(2017: 51.6%)

Key Highlights

- Key strategic decisions have been taken to:
  - establish Stenprop as the leading multi-let
    industrial ('MLI') business in the UK;
  - sell all, or substantially all, of its non-MLI assets
    over the next few years, and utilise the sale
    proceeds to build a focused UK MLI business; and
  - reduce total borrowings to no more than 40%
    of its gross asset value by 31 March 2020.

- Stenprop migrated its jurisdiction of incorporation
  from Bermuda to Guernsey on 23 March 2018 and
  converted to a UK REIT on 1 May 2018.
 
- Admission of all of Stenprop's shares to trade
  on the Specialist Fund Segment of the London
  Stock Exchange is scheduled to take place on
  15 June 2018, following publication of the
  Company's prospectus on its website on
  8 June 2018. No new shares are being issued on
  listing.
 
- A total investment of GBP147.8 million in MLI assets
  has been made as at 31 March 2018, including
  the GBP130.5 million strategic acquisition of the
  industrials.co.uk portfolio and management
  platform. A further GBP11.0 million of MLI assets
  have been acquired since year end. This takes the
  total MLI component to 23% of total assets.

- Disposals totalling GBP210.4 million, including
  GBP41.7 million post year end, yielded proceeds of
  GBP97.9 million to fund the Company's investment
  in the MLI sector.

- In the nine months since the acquisition of the
  MLI portfolio, 90 new lettings and lease renewals
  have been entered into at an average rent which
  is 17.7% above the passing rent previously payable
  on those units.

Financial
- In line with guidance previously provided, a
  final dividend was declared on 6 June 2018 of
  4.0 pence per share which, together with the
  interim dividend declared on 22 November 2017
  of 4.0 pence per share, results in a total dividend
  for the year ended 31 March 2018 of 8.0 pence per
  share. This equates to a historic dividend yield of
  7.0% on the share price of GBP1.14^ at 4 June 2018, or
  5.7% on the diluted EPRA net asset value ('NAV')
  of GBP1.41 at 31 March 2018. Subject to the receipt
  of Regulatory approvals, a scrip alternative will
  be offered, which the Directors intend to match
  through the buyback of shares. The 2017 total
  dividend was paid in Euros and amounted to
  9.0 cents per share, which at the then prevailing
  exchange rates would have equated to 7.8 pence
  per share. The current total dividend represents
  an increase of 2.5% over the previous year.
  
  The diluted adjusted EPRA EPS* for the
  year ended 31 March 2018 is 9.09 pence
  (2017: 8.99 pence), an increase of 1.1%. This
  equates to a historic earnings yield of 8.0%
  on the share price of GBP1.14^ at 4 June 2018,
  or 6.4% on the diluted EPRA NAV of GBP1.41 at
  31 March 2018. Diluted IFRS EPS is 13.89 pence
  (2017: 5.18 pence).
  
  Diluted EPRA NAV per share is up 3.7% at GBP1.41
  (2017: GBP1.36). Diluted IFRS NAV per share was
  GBP1.36 per share (2017: GBP1.31).

FX rates in period
Average foreign exchange rates in the year: GBP1.00:EUR1.134;
GBP1.00:CHF1.287 (2017: GBP1.00:EUR1.190; GBP1.00:CHF1.290)
Year-end foreign exchange rates: GBP1.00:EUR1.137; GBP1.00:CHF1.337
(2017: GBP1.00:EUR1.169; GBP1.00:CHF1.250)
* 'EPRA' means European Public Real Estate Association. 'EPS'
means earnings per share. 'NAV' means net asset value.
^ JSE closing price on 4 June 2018 was ZAR19.12. ZAR:GBP rate
at the same date was 16.72:1.

Commentary

Stenprop Limited (the 'Company' and together with its subsidiaries the 'Group') is pleased to report its Group annual
financial statements for the year ended 31 March 2018.

Business strategy
Investment
Stenprop's objective is to deliver sustainable growing income to its investors. The Company's investment strategy
for achieving this objective has always been to identify and invest in sectors and assets that have positive growth
fundamentals and, where there is an opportunity, to add value and grow earnings through active asset management.

In early 2017, Stenprop identified UK MLI as a sector likely to deliver superior long-term growth in sustainable earnings,
as a result of a structural imbalance in supply and demand dynamics, with increasing tenant demand and static (and,
in some cases, reducing) supply that was likely to translate into higher rents over time. Stenprop also identified that,
in order to exploit opportunities in the UK MLI sector and deliver consistent returns, it required sufficient scale as well
as an excellent management team and operating platform.

The June 2017 Stenprop acquisition of the industrials.co.uk multi-let industrial portfolio and C2 Capital management
platform for GBP130.5 million achieved both of these objectives, positioning Stenprop to achieve its objective of becoming
the leading MLI business in the UK.

Following the successful integration of the C2 Capital team and the significant growth in earnings experienced from
the industrials.co.uk portfolio since acquisition, Stenprop took the strategic decision that its objective to deliver
sustainable, growing income to shareholders would be best achieved by becoming a specialised UK MLI property
company. This strategic repositioning means that Stenprop intends, over the next few years ('the transition period'),
to sell all, or substantially all, of its non-MLI assets and utilise the sale proceeds to build a focused UK MLI business.

In pursuit of this strategy, in January 2018 Stenprop completed the sale of its office building in Pilgrim Street, London,
via a sale of shares which valued the property at GBP79.9 million (2.4% above the valuation at 30 September 2017), and
in June 2018, it completed the sale of its 50% interest in its office building located in Argyll Street, London, via a sale of
shares which valued the property at GBP83.4 million (3.0% above the valuation at 30 September 2017). In the remaining
period to 31 March 2020, Stenprop has identified a further GBP350 million of non-MLI assets for disposal.

Following the acquisition of the industrials.co.uk portfolio and C2 Capital, Stenprop has completed the acquisition
of a further seven MLI estates, five prior to year end and two post year end, for an aggregate purchase price of
GBP32.6 million. In the remaining period to 31 March 2020, Stenprop aims to acquire a further GBP185 million of MLI assets.

Based on these goals, MLI assets are expected to comprise approximately 60% to 65% of Stenprop's total portfolio
of properties by 31 March 2020. In the three-year period following 31 March 2020, Stenprop intends to continue its
programme of disposals and acquisitions, with the aim of having a portfolio of properties made up entirely, or almost
entirely, of MLI assets and a target overall LTV ratio of no more than 40%.

Corporate
Following the decision to reposition Stenprop as the leading MLI business in the UK, the board of directors of the
Company (the 'Board' or the 'Directors') considered that it would be better placed to achieve this goal if it pursued
a listing of its shares on the London Stock Exchange. As a result, Stenprop announced its intention at the interim
stage to seek a listing on the Specialist Fund Segment (the 'SFS') of the London Stock Exchange ('LSE'), reasoning
that accessibility to additional investors including, in particular, UK investors focused on specialist income funds,
should improve liquidity in the Company's shares and provide further access to equity capital, both of which would be
beneficial to the strategic aims of the Company, and should add value to shareholders.

Alongside the decision to seek a listing on the SFS, a decision was taken by the Board to migrate the Company
from Bermuda to Guernsey and to convert to a UK REIT. Guernsey is one of the world's largest offshore centres,
with an efficient and flexible regulatory regime which is well regarded globally. Moreover, shareholders of Guernsey-
registered companies listed on the SFS will typically benefit from the protections of the UK City Code on Takeovers
and Mergers, which is designed principally to ensure that in a takeover situation, shareholders are treated fairly and
equally. Following approval of shareholders at the Special General Meeting held on 7 March 2018, the change in the
jurisdiction of incorporation of the Company from Bermuda to Guernsey took place on 23 March 2018.

The decision to convert to a UK REIT was driven by the changing tax environment in the UK, the fact that REITs
are recognised as tax-efficient structures for investment in real estate and have a proven track record of attracting
international capital, and that it will potentially improve after-tax returns for some shareholders. Stenprop acquired
UK REIT status on 1 May 2018, and, as a consequence, became UK tax resident. This required a number of changes in
the composition of the Board, and, as previously announced, resulted in the appointment of Julian Carey as executive
property director, Richard Grant as independent chairman, and Philip Holland as independent non-executive director
on 1 May 2018. At the same time, Guernsey residents Stephen Ball resigned as chairman and Neil Marais resigned as
executive director. Sarah Bellilchi was appointed as company secretary.

Admission of all of Stenprop's shares to trade on the SFS is expected to take place on 15 June 2018, following the
publication of the Company's prospectus on its website on 8 June 2018. Simultaneously with the new listing on the
LSE, the Company will delist from the Bermuda Stock Exchange. It will retain its primary listing on the Main Board of
the Johannesburg Stock Exchange ('JSE').

Active MLI portfolio management and product development
Stenprop has a highly-skilled and experienced in-house asset management team who intensively manage the MLI
properties on a day-to-day basis by way of ongoing interaction with tenants, service providers and property managers.
With the benefit of a permanent capital structure, Stenprop intends to develop a 'serviced' industrial model, which
will offer more flexibility to tenants and in return unlock additional income streams for Stenprop. The MLI platform
operates under the industrials.co.uk brand.

The key elements of Stenprop's product and asset management strategy include:

Getting 'Smart' about leasing
The traditional approach to leasing in the UK has tended to be inflexible and cumbersome, entailing lengthy lease
documentation which serves to transfer risk from the landlord to the tenant by way of imposing significant repairing,
maintenance, legal and time obligations on occupiers. As a general trend, but most dramatically in the office sector,
this approach has changed with the rise of serviced office and co-working concepts such as WeWork and Regus.
Stenprop believes that there is a huge opportunity to offer a similar approach in the MLI sector where our customer
base is similar and where customer service has historically been poor. Stenprop is currently rolling out a new 'Smart
Lease' that offers tenants the ability to make shorter-term commitments, with greater flexibility and no liability for
repairs and maintenance in return for a rental premium. As the owner, Stenprop is able to price for this risk at a
level which is attractive to our customers but also profitable for the Company. Stenprop also takes the view that
this approach will significantly shorten the leasing and tenant decision-making process, thereby reducing voids and
letting expenses. It eliminates significant work and time around service charge reconciliations and dilapidations claims,
enabling Stenprop to keep units in good condition and ready for immediate occupation. By offering a 'Smart Lease'
through the industrials.co.uk platform, the Company is building brand awareness and loyalty, which combined with
market leading technology solutions (set out below) will position the Company for long-term sustainable growth.

Using technology to deliver class leading customer service
Statistics indicate that across the MLI sector approximately 50% of tenants leave their units upon lease expiry. Stenprop
believes that the best way to reduce vacancy and increase rents is to deliver enhanced customer service to improve
tenant retention. If customers perceive they are getting value for money through a good service and appropriate levels
of communication, they will be less likely to leave upon expiry and will be less price sensitive upon renewal. Therefore,
customer service is at the core of Stenprop's approach to good estate management. Stenprop believes that the key to
success in delivering this on a scalable basis lies in implementing technology-driven solutions. Whilst personal visits to
estates and direct contact with tenants will always remain a critical part of the business model, the use of technology
provides the most effective method of servicing and communicating with a large number of tenants spread across
multiple assets in a wide geographical area.

Stenprop is currently implementing a number of technology based solutions:
  
- Onsite technology: Stenprop has installed high definition CCTV camaras with remote monitoring across 37% of
  the MLI assets and is reviewing a portfolio-wide roll out of the technology. In addition, Stenprop is putting in
  place security barriers with SMS and remote entry systems to enable tenants to control access for their staff and
  customers. It is exploring options to install ultra-high speed fibre supplies at a number of estates, which will give
  Stenprop an attractive and competitive offer to tenants. This will facilitate further enhanced security services to
  tenants in the future.

- CRM system: Stenprop is currently rolling out an enhanced customer relationship management ('CRM') system. The
  new system, which is synchronised with the Company's website and online leasing tool, will facilitate more effective
  communications with tenants and enable real time interaction with a large number of users.
 
- Website: Stenprop is launching a new industrials.co.uk website in June 2018 which will form the basis for a significantly
  enhanced platform. Not only will it list all available units and information on the assets owned, but it will also house
  the online leasing tool described below, and provide a wide range of additional information for tenants. As part
  of this initiative, the Company is also introducing a new 0800 number to field all tenant and prospective tenant
  enquiries, which will ensure a consistent and efficient service when interacting with the industrials.co.uk team.
 
- Online leasing tool: Stenprop will launch an online leasing tool in June 2018 which will allow existing tenants to
  renew their lease and/or take up additional space online. Using our new 'Smart Lease' tool will allow tenants to
  rent space from six weeks to three years on inclusive terms at the click of a button. In time, this will extend to new
  customers on all units and will also facilitate the offering of additional products and services which are key to our
  'Serviced Industrial' model.
   
- PropTech partnerships: Stenprop's scale has enabled it to engage with a range of leading PropTech solutions
  available in the marketplace. The integration of these systems is expected to significantly enhance operational
  efficiencies when performing letting, lease management, portfolio management, acquisition and inspection
  processes. Stenprop is working with a leading system integration consultant to ensure all third-party technology
  partner systems integrate with existing property management, CRM and in-house systems.
   
- Tenant portal: A tenant portal is currently being developed which will provide real-time information to tenants,
  including lease details, status of rental charges, online payments and more. In addition, the portal will provide a
  communication forum between landlord and tenants, opening new value-add opportunities for trade and ensuring
  that relationships remain dynamic and relevant. The intention is to make the portal available in both online and in
  app form.

Active asset management
Stenprop is continually investigating ways to improve occupancy and increase rental income, particularly with the use
of technology solutions which can reduce void times. As part of this, Stenprop has centralised the vacant property
marketing function. This means that when a unit becomes available for rent, Stenprop can automate the process of
uploading full details, including ordering high resolution photographs and virtual tours for the unit and the estate, and
listing the property on high-traffic online letting sites without the need for formal leasing instructions or approvals. This
significantly cuts delays in marketing the unit to let and ensures that Stenprop assets are accurately and consistently
marketed across a wide variety of advertising spaces.

To ensure maximum occupancy and sustainable growth it is also important to continue to invest in the assets and
enhance their appeal. An active capital enhancement programme is in place across the portfolio, which includes
the refurbishment of c. 180,000 sq ft of space at Coningsby Park, Peterborough. As a rule, all vacant properties are
refurbished upon the tenant vacating to ensure that they are immediately available for occupation when a prospective
tenant is found at the best possible rental level.

In Stenprop's view, ensuring that the changing needs of customers are correctly analysed and dealt with is key to
building resilience into the portfolio. Maintaining active contact with tenants and constantly monitoring rent collection
statistics enables Stenprop to build resilience in the portfolio by addressing problem tenants before they become
an issue, and, where appropriate, upscaling or downsizing tenants during the term of their lease to ensure they are
occupying the optimum amount of space.

Debt management
Stenprop has been steadily reducing its total borrowings from above 54% of gross assets (its 'LTV' ratio) in October
2014 to an LTV ratio of 49.2% at 31 March 2018. The Company's LTV ratio temporarily increased at 30 September 2017
to approximately 55% as a result of the bridging finance used for the acquisition of the industrials.co.uk portfolio and
C2 Capital. As planned, the bridging finance was repaid in January 2018 out of the proceeds from the sale of Pilgrim
Street.

In view of its changed strategy, the Group is aiming to reduce its level of total borrowings (at a Group level) to
approximately 45% of its gross asset value by 31 March 2019 and 40% by 31 March 2020, by utilising part of the sale
proceeds of its existing portfolio. Thereafter, the Directors will employ a level of borrowing that they consider to be
prudent for the asset class, taking into account prevailing market conditions.

During the transition period when existing assets are being sold and the proceeds reinvested in MLI assets, depending
on the timing of such disposals and acquisitions, new acquisitions may be funded by drawing down on a GBP50 million
revolving credit facility ('RCF') from Investec Bank plc. It is intended that drawdowns under the Investec RCF will be
short term and will be replaced as soon as possible from a combination of disposal proceeds and longer term debt
finance at an average of 40% of the purchase price.

Management fee income from assets managed for third parties
With the focus of the business now on growing the MLI portfolio and actively embracing technology to improve
cost efficiencies and unlocking additional sustainable income streams, Stenprop intends to actively withdraw from
involvement in its historic fund management arm. Many of these managed funds are coming to a natural end, and, at
the year end, have delivered management fee income of GBP5.1 million (2017: GBP3.1 million). Further material fees may arise
during the next six to twelve months. Thereafter, management fee income is expected to decline to insignificant levels.
In future, guidance will be given to distinguish between EPRA earnings attributable to the property rental business and
those attributable to the historic fund management business.

Future distributions
As previously reported, Stenprop has historically pursued a distribution policy in terms of which it distributed at
least 85% of its EPRA earnings on a bi-annual basis. Following the successful conversion to UK REIT status on 1 May
2018 and the anticipated listing in London, Stenprop intends to distribute the amount necessary to comply with
REIT regulations, or at least 90% of its property-related EPRA earnings, whichever is the higher. Distribution of non
property-related earnings will be evaluated from time to time by the Board. Stenprop intends to pay dividends in cash
on a bi-annual basis, but may offer a scrip equivalent from time to time. Further discussion of future distributions can
be found under the Prospects section later in the commentary.

Business review
Portfolio Summary
As at 31 March 2018, including assets held for sale, the Company's real estate portfolio comprised an interest in
76 properties valued at GBP733.6 million1, with 48.5% by value in the United Kingdom, 38.8% in Germany and 12.7% in
Switzerland. The portfolio, which has a gross lettable area of approximately 415,1051 sq m and gross annual rent of
GBP44.0 million1, is currently in the office, retail and MLI sectors, which account for 35%, 26% and 24% respectively of
rental income. The MLI portfolio is expected to significantly increase over time as Stenprop pursues further acquisitions
in the MLI sector and makes disposals from other asset classes.

A table detailing the top six property investments in the portfolio can be found below. These six investments account
for 71% of the total portfolio asset value. The value of the two Central London properties (including Stenprop's share of
25 Argyll Street) accounts for 17% of the total portfolio asset value, although this reduced to 11% following completion
of the sale of Stenprop's joint venture share in Argyll Street on 4 June 2018. The value of the MLI portfolio accounts for
20% of the total portfolio asset value and the Berlin retail centre portfolio (comprising three centrally-located, daily-
needs shopping centres) accounts for 9%.

(1) Includes Stenprop's share of the properties held within joint venture investments.

Top six investments by value as at 31 March 2018

                                                                                                    Annualised
                                                       Stenprop  Proportion                              Gross   Weighted
                                                       share of          of                             Rental    Average
                               Market                    market    Stenprop             Lettable     (Stenprop  unexpired
                                Value   Ownership         value   portfolio                 area        share) lease term
Property                 (GBPmillion)  interest %  (GBPmillion)           %     Sector    (sq m)  (GBPmillion)    (years)
MLI portfolio, UK               147.8         100         147.8          20        MLI   215,299          10.4        3.1
Bleichenhof, Hamburg            130.8        94.9         124.2          17  Mixed use    19,320           4.6        4.7
Euston House, London             79.6         100          79.6          11     Office    10,204           4.0        4.5
Berlin daily-needs retail  
centre portfolio                 66.1         100          66.1           9     Retail    35.346           3.9        9.0
Trafalgar Court, Guernsey        59.9         100          59.9           8     Office    10,564           4.3        9.1
Argyll Street, London*           83.4          50          41.7           6     Office     6,134           2.1        1.8
Total                           567.6           -         519.3          71          -   296,867          29.3        5.1

* Sale completed on 4 June 2018

MLI portfolio and management platform acquisitions
On 30 June 2017, Stenprop acquired 100% of a portfolio of 25 MLI estates situated across the United Kingdom,
operating as industrials.co.uk, based on a portfolio price of GBP127 million excluding costs. The portfolio comprised
properties with a gross lettable area of approximately 2 million sq ft and a contractual rent (including contractual
fixed uplifts) of approximately GBP9.1 million per annum representing an average rent of GBP5.15 /sq ft. There are more than
400 tenants creating a diversified base of earnings.

Also on 30 June 2017, Stenprop completed the acquisition of C2 Capital Limited, the management platform responsible
for aggregating and managing the portfolio, for a purchase consideration of GBP3.5 million settled by the issue to
Julian Carey, the founder and sole owner, of 3,270,500 Stenprop shares valued at EUR1.22 per share. By structuring the
acquisition in this way, Stenprop acquired a strategic portfolio of sufficient scale in the MLI sector together with a
specialist operating platform and team.

During the period of Stenprop ownership from 1 July 2017 to 31 March 2018, there have been 90 new lettings and lease
renewals on the acquired portfolio. The average increase in rents over the previous passing rents for these units was
17.7%, illustrating the significant growth achievable through investing in the sector.

MLI Acquisitions
Following the acquisition of the industrials.co.uk portfolio and C2 Capital, Stenprop has appraised more than
GBP1.2 billion of potential MLI acquisitions. With the capital available and the application of Stenprop's disciplined
investment criteria, to date Stenprop has completed the acquisition of a further seven MLI estates, five prior to the
financial year end and two post financial year end, for an aggregate purchase price of GBP32.6 million.

In three separate transactions concluded in December 2017, Stenprop acquired Souterhead Industrial Estate in Aberdeen
from M&G Real Estate, Venture Park in Peterborough from Catalyst Capital and Coningsby Park in Peterborough from
Thomas Cook for an aggregate price of GBP13.5 million. The three estates comprise 63 purpose-built, multi-let industrial
units and approximately 360,000 sq ft of lettable space. Souterhead and Venture Park are well-let, income-producing
estates in strong markets, with the prospect of excellent rental growth over time through active asset management.
Coningsby Park was originally built as an MLI estate before being fitted out as a call centre by Thomas Cook. It was
acquired for a purchase price which largely reflected vacant value and gave Stenprop the opportunity to reposition
the estate to its former MLI use.

In the final quarter of the 2018 financial year Stenprop also completed the acquisition of two further industrial
estates. Globe Park, Rochdale, a modern and well located industrial estate near Manchester comprising 17 units and
38,000 sq ft of industrial space, was acquired on 16 January 2018 for GBP2.2 million. Ellis Hill, Huddersfield, is a 
six unit scheme, comprising 76,140 sq ft of modern industrial space, on a busy main road and occupied by St Gobain, 
Sicame and Mercedes and VW dealerships, and was acquired on 12 March 2018 for GBP5.8 million.

After the financial year end, Stenprop acquired a further two MLI estates for an aggregate price of GBP11.0 million.
Greenwood Industrial Estate in Shrewsbury, acquired on 24 April 2018 for GBP2.9 million, comprises a 30-unit scheme,
totalling 44,611 sq ft, and is fully let to a number of local and national tenants.

A further acquisition of a multi-let industrial estate in Kirkstall, Leeds for GBP8.1 million completed on 1 June 2018. The
estate comprises 14 units totalling 111,081 sq ft of industrial space.

Disposals
As a consequence of the repositioning of its portfolio, Stenprop intends, during the transition period, to sell all, or
substantially all, of its non-MLI assets and utilise the sales proceeds to build a focused UK MLI business. During the
financial year under review, and in the subsequent period to date, Stenprop has completed a number of disposals,
which are detailed further below.

In June 2017, an associate in which Stenprop has a 28.42% interest, disposed of a shopping centre known as Nova
Eventis, situated near Leipzig in Germany. The shopping centre was sold at a valuation of EUR208.5 million.

Stenprop has previously announced its intention to dispose of its Swiss portfolio. In July 2017, Stenprop completed
the sale of the Swiss property in Granges Paccot at its valuation of CHF20.0 million and, in October 2017, it disposed
of a property in Cham at its valuation of CHF14.2 million. Seven of the eight remaining Swiss properties based in
in Arlesheim, Chiasso, Sissach, Altendorff, Baar, Vevey and Montreux, with a combined valuation at 31 March 2018
of CHF103.2 million, are currently being marketed for sale. They are expected to be sold by the end of 2018. The
remaining property in Lugano is currently undergoing substantial repositioning by the tenant, which is expected to be
completed by October 2018. It will be marketed separately once all the works are complete and trading in the premises
has been established.

In August 2017, Stenprop sold an office block in Uxbridge, West London, at a sale price of GBP3.4 million, an uplift of 13.3%
from the 31 March 2017 valuation of GBP3.0 million. In December 2017, Stenprop sold an office property in Worthing, West
Sussex, for GBP3.7 million, an uplift of 12.7% from the 31 March 2017 valuation of GBP3.2 million.

On 11 January 2018, Stenprop sold its office building located in Pilgrim Street, London, by way of a share sale. The
consideration valued the property at GBP79.9 million (2.4% above the valuation of GBP78.0 million at 30 September 2017)
and released cash proceeds of GBP42.1 million (after sales costs and repayment of external debt). On 4 June 2018,
Stenprop completed the sale of its 50% interest in the office building located in Argyll Street at a price which valued
the property at GBP83.4 million, 3% higher than the September 2017 valuation, and released proceeds of GBP22.8 million.

Stenprop has commenced a sale process of its Aldi portfolio of 14 stores located in Germany, valued at EUR32.8 million as at
31 March 2018. The sale process is progressing in line with expectations and is expected to complete prior to
30 September 2018.

Stenprop has identified for future sale its investment in Euston House, London, which was valued at 31 March 2018 at
GBP79.6 million. This office building, with a lettable area of 10,204 sq m, occupies an island site of 0.45 acres opposite
Euston Station. With Kings Cross St Pancras approximately 500 m to the east, it is located between two significant
nodes of regeneration. Marketing is expected to commence in the first quarter of 2019, subject to the number of MLI
acquisitions made over the remainder of 2018.

Financial Review
Earnings
The basic earnings attributable to ordinary shareholders for the year ended 31 March 2018 were GBP39.4 million
(2017: GBP14.7 million). This equates to a diluted IFRS EPS of 13.89 pence (2017: 5.18 pence). The variance compared
with the prior year is the result of positive property valuation movements which, including Stenprop's share of joint
ventures and associates, amounted to GBP21.2 million.

Net rental income from continuing operations (excluding Switzerland) increased by 29.0% over the prior year
to GBP32.9 million, of which 20.2% is due to net rents from the industrials.co.uk portfolio and 1.7% due to different
average exchange rates. Goodwill of GBP3.5 million attaching to the acquisition of the C2 Capital management platform
was written off during the period. The increase in finance charges of 58.2% to GBP9.5 million was driven by the
industrials.co.uk portfolio bank debt interest (28.5%) and the interest and costs associated with the bridging finance
used to acquire the industrials portfolio (36.3%).

In accordance with reporting standards widely adopted across the real estate industry in Europe, the Board feels it is
appropriate and useful, in addition to providing the IFRS disclosed earnings, to also disclose EPRA2 earnings. Adjusted
EPRA earnings attributable to shareholders were GBP25.8 million (2017: GBP25.5 million), equating to a diluted adjusted
EPRA EPS of 9.09 pence (2017: 8.99 pence) representing a 1.1% increase. Readers are referred to note 14 where this is
calculated.
 
The diluted adjusted EPRA EPS attributable to the property rental business amounts to 7.29 pence per share, with the
remaining amount of 1.80 pence being attributable to the management fee income.

Stenprop has considered the adoption of further EPRA metrics and in line with best practice believes it useful to
disclose the EPRA cost ratio (including direct vacancy costs). The EPRA cost ratio includes all administrative and
operating expenses in the IFRS statements (including share of joint ventures). The EPRA cost ratio (including direct
vacancy costs) at 31 March 2018 was 28.0% (2017: 25.6%).

Management fee income totals GBP5.1 million for the period (2017: GBP3.1 million) and relates to fees earned by the
management companies on management and administration services provided to certain managed property
syndicates and funds. Included in the total are management fees of GBP1.8 million which relate to a managed syndicate
which holds the WestendGate property in Frankfurt. This asset is currently being marketed for sale, and may result in
a performance fee being earned by Stenprop.

Dividends
On 6 June 2018, the directors declared a final dividend of 4.0 pence per share (2017: 3.9 pence) which, together with
the interim dividend of 4.0 pence per share (2017: 3.9 pence) declared on 22 November 2017, results in a total dividend
for the year ended 31 March 2018 of 8.0 pence share (2017: 7.8 pence). For the avoidance of doubt, the final dividend
comprises 100% ordinary dividend with no Property Income Distribution ('PID') component.

Subject to the receipt of Regulatory approvals, the directors intend to offer shareholders the option to receive, in
respect of all or part of their Stenprop shareholding, either a scrip dividend by way of an issue of new Stenprop shares,
or a cash dividend. An announcement containing details of the dividend, the timetable and the scrip dividend will be
made on 10 July 2018. It is expected that shares will commence trading ex-dividend on 25 July 2018 on the JSE and on
26 July 2018 on the LSE. The record date for the dividend is expected to be 27 July 2018 and the dividend payment
date 17 August 2018.

In respect of this dividend, given the Company's share price, which is at a discount relative to net asset value, the
Directors intend to match the scrip alternative through the buyback of shares to mitigate the dilutive effect that would
otherwise occur through the issuance of new ordinary shares.

Net asset value
The IFRS basic and diluted NAV per share at 31 March 2018 were GBP1.37 and GBP1.36 respectively (2017: basic and diluted
GBP1.31).

With regard to the disclosure of EPRA earnings, the Directors feel that it is appropriate and useful, in addition to
IFRS NAV, to also disclose EPRA NAV3. The diluted EPRA NAV per share at 31 March 2018 was GBP1.41 (2017: GBP1.36). This
represents a 3.7% increase on the diluted EPRA NAV per share of GBP1.36 at 31 March 2017 and is driven by the increase
in property valuations reported at the year end.

(2) The European Public Real Estate Association ('EPRA') issued Best Practices Policy Recommendations in November 2016, 
    which provide guidelines for performance measures relevant to real estate companies. Their recommended reporting 
    standards are widely applied across this market, aiming to bring consistency and transparency to the sector. 
    The EPRA earnings measure is intended to show the level of recurring earnings from core operational activities with 
    the purpose of highlighting the Group's underlying operating results from its property rental business and an indication 
    of the extent to which current dividend payments are supported by earnings. The measure excludes unrealised changes in 
    the value of investment properties, gains or losses on the disposal of properties and other items that do not provide 
    an accurate picture of the Group's underlying operational performance. The measure is considered to accurately capture 
    the long-term strategy of the Group, and is an indication of the sustainability of dividend payments.

(3) The objective of the EPRA NAV measure is to highlight the fair value of net assets on an ongoing, long-term basis. 
    EPRA NAV is used as a reporting measure to better reflect underlying net asset value attributable to shareholders. 
    Assets and liabilities that are not expected to crystallise in normal circumstances such as the fair value of 
    financial derivatives and deferred taxes on property valuation surpluses are therefore excluded. The EPRA measure 
    thus takes into account the fair value of assets and liabilities as at the balance sheet date, other than fair value 
    adjustments to financial instruments, deferred tax and goodwill. As the Group has adopted fair value accounting for 
    investment property per IAS 40, adjustments to reflect the EPRA NAV include only those relating to the revaluation 
    of financial instruments and deferred tax.

Change in presentation currency
Effective 1 April 2017, the Company changed its presentation currency from Euros to Pounds Sterling ('GBP'). This
represents a change from the previous year end and has been applied to reflect the relatively larger weighting of
Stenprop's UK portfolio and Stenprop's entry into the UK multi-let industrial asset class. It is also better 
suited to the proposed Stenprop listing on the London Stock Exchange, an update of which is given in this report. 
Accordingly, all results and comparatives have been reported in GBP.

Foreign exchange
At 31 March 2018, approximately 39% of Stenprop's NAV and 35% of its net rents are denoted in Euros. Consequently,
the GBP:EUR exchange rate has a material impact on reported GBP earnings and NAVs. At the start of April 2017, the
GBP:EUR rate was GBP1.00:EUR1.169 and the Euro strengthened over the year by 3.1% to GBP1.00:EUR1.134 as at 31 March 2018.

Stenprop matches the currency of borrowings to the underlying asset. Where the timing and amount of a liability has
been determined, and where it will be met from the proceeds of a sale which is also known in terms of timing and
amount, the currency risk is managed through hedging instruments.

Stenprop's diversification across the UK, Germany and Switzerland (until the Swiss portfolio is sold) continues to
provide a natural spread of currencies and it remains our policy not to hedge this natural spread, thereby maintaining
a multi-currency exposure.

Portfolio valuation
Including the Company's share of associates and joint ventures, its investment properties were valued at GBP733.6 million
(31 March 2017: GBP725.5 million), of which GBP163.5 million were classified as assets held for sale at 31 March 2018 
(31 March 2017: GBP133.4 million). Assets held for sale consist of the remainder of the Swiss portfolio, the German Aldi 
portfolio and Stenprop's joint venture share of the office building in the centre of London known as Argyll Street. 
On a like-for-like basis, excluding the impact of additions and disposals in the period, the valuation of the portfolio 
since the prior year end increased by 3.9% of which 0.2% resulted from currency movements. The German and Swiss properties 
have been translated to GBP at a rate of GBP1.00:EUR1.13 and GBP1.00:CHF1.34 respectively. This compares with exchange 
rates of GBP1.00:EUR1.17 and GBP1.00:CHF1.25 at 31 March 2017.


                                               Market                             Annualised   Net inital
                                                value                                  gross        yield         WAULT
                                Portfolio    31 March                                 rental     31 March    (by rental
                                by market        2018                     Area        income         2018       income)
Properties / portfolio          value (%)      (GBPm)    Properties     (sq m)        (GBPm)          (%)       (years)
UK non-MLI                           22.7       166.4            10     50,280          10.9         5.76           6.0
UK MLI                               20.1       147.8            30    215,299          10.4         6.50           3.1
Germany                              30.2       221.3             9     72,674          10.4         4.16           6.1
Held for sale                        16.6       121.8            22     54,455           7.8         4.90           7.6
Total                                89.6       657.3            71    392,708          39.5         5.23           5.6
Share of Joint Ventures and
Associates (JV&A)                     4.7        34.6             4     19,330           2.4         5.95          11.4
Share of JV&A - 
held for sale                         5.7        41.7             1      3,067           2.1         4.61           1.8
Total                               100.0       733.6            76    415,105          43.9         5.23           5.7

United Kingdom
The UK portfolio (excluding Stenprop's joint venture share of 25 Argyll Street) was independently valued at
GBP314.2 million at the end of the reporting period. On a like-for-like basis, after excluding the sales of Pilgrim Street,
Worthing and Uxbridge, and the acquisition of the Industrials portfolio as well as the six acquisitions during the year,
the valuation of the UK portfolio decreased by GBP0.9 million, or 0.6%, from the valuation at 31 March 2017. Although
virtually flat in total, the variance is made up of a GBP1.9 million increase at Euston House (2.4%) and a downward valuation
of GBP2.7 million (4.3%) at the Trafalgar Court property in Guernsey, driven by a softening of yields on the island.

On 30 June 2017, the 25 estates comprising the industrials.co.uk portfolio were acquired at a cost of GBP127.0 million
as a corporate transaction. In line with accounting standards and the RICS Red Book valuation guide, these accounts
are required to value these assets on an individual basis. This valuation was undertaken by third-party valuer, JLL,
and at 30 September 2017 was GBP122.4 million. The 31 March 2018 valuation of the same assets was GBP125.6 million, an
increase of 2.6% over the six-month period. JLL also provided a like-for-like portfolio valuation as at 31 March 2018
which valued the industrial portfolio as a whole at GBP157.5 million, an increase of 6.6% on the acquisition valuation of
GBP147.8 million.

Stenprop acquired five further MLI estates between December 2017 and March 2018 for a combined purchase price
(excluding costs) of GBP21.5 million. At 31 March 2018, these five estates were valued by JLL at GBP22.2 million, an increase
of 3.3% since acquisition.

Germany
The German portfolio (excluding associates and joint ventures) was independently valued at EUR284.6 million. This
represents a like-for-like increase of 11.1% on the year-end valuation of EUR256.1 million. The increase of EUR28.5 million
was driven by a EUR21.3 million (16.7%) uplift at Stenprop's Bleichenhof property in central Hamburg, an asset which
is benefiting from positive market development seen in core assets in prime cities and from decreasing vacancy
and increased market rents. The asset management work being done to reposition this asset in conjunction with
the adjacent city centre redevelopment is now reaping rewards. Elsewhere, it is pleasing to report higher valuations
at the three central Berlin retail centres which experienced a combined uplift of EUR3.9 million and are now valued at
EUR75.2 million, an increase of 5.5% on the prior year.

Switzerland
The Swiss portfolio was valued at CHF124.2 million compared with the like-for-like 2017 year-end valuation of
CHF129.9 million (excluding the sales of Granges Paccot and Cham during the year for a combined sales price of
CHF34.2 million). The decrease in valuation has been driven by a weakening of market rents over the period. As
previously reported, following a decision to sell these lower yielding and more mature assets, the Swiss portfolio has
been classified as held for sale in the financial statements. All remaining properties are being marketed for sale and are
at various stages in the sale process.

Joint ventures and associates
The Care Homes portfolio in Germany was independently valued at EUR39.3 million, an increase of 11.0% on the 31 March
2017 valuation of EUR35.4 million.

Stenprop's 50% interest in 25 Argyll Street, a property located in the heart of London's West End, was externally
valued at GBP41.7 million, an increase of GBP1.2 million from that at 31 March 2017. The interest was sold on 4 June by way of
a share sale at a price which valued the property at its 31 March 2018 valuation of GBP83.4 million.

Following the disposal of the Nova Eventis shopping centre by Stenham European Shopping Centre Fund Limited on
22 June 2017, Stenprop no longer holds any direct property interests through associate investments.

UK industrial portfolio update
At the reporting date, Stenprop owned 30 MLI estates comprising 2.3 million sq ft of space, housing 489 tenants and
generating a rent of GBP10.4 million per annum. As at year end, the portfolio has seen the signing of 56 new leases and
the renewal of 34 existing leases. On average these leases have been signed up/renewed at rental levels which are
17.7% ahead of the previous passing rent for each respective unit. This rental growth will in due course translate into
higher earnings, NAV and total shareholder return.

The integration of the C2 Capital management team with the existing Stenprop team is proceeding smoothly and
synergies are emerging. A significant focus is to build on the industrials.co.uk platform using technology to increase
efficiency and reduce costs. Stenprop is confident that investment in cutting-edge technology together with the
Company's ability to offer tenants increasingly flexible terms and enhanced customer service will result in long-term
sustainable earnings growth from the portfolio.

The Company continues to seek appropriate additional acquisition opportunities in the multi-let space. As a result of
the long established relationships and networks of the industrials.co.uk team, subsequent to year end, the Company
has acquired a further two estates and is under offer on a number of others. The industrials.co.uk team also benefits
from a steady pipeline of further opportunities. In the first quarter of 2018, the sector saw more than 40 transactions
with a deal volume of approximately GBP400 million.

Debt management
The value of the property portfolio as at 31 March 2018, including the Group's share of joint venture properties and
assets held for sale, was GBP733.6 million. Senior bank debt at the same date was GBP360.9 million resulting in an average
loan-to-value ratio of 49.2% (31 March 2017: 51.6%). The Group's short term bridge funding of EUR39 million was repaid
in January 2018 with part of the net sales proceeds received from the sale of the property at Pilgrim Street in the City
of London.

The weighted average debt maturity stood at 2.9 years at 31 March 2018 compared with 2.4 years at 31 March 2017.
Excluding the Swiss debt facilities, which are expected to be repaid in the near term, the weighted average debt
maturity at 31 March 2018 stands at 3.4 years.

Excluding the Swiss portfolio, annual amortisation payments are GBP3.7 million (31 March 2017: GBP1.2 million). The
increase since prior year relates to the Trafalgar Court loan facility, and will be removed once the additional 
amount of GBP6.1 million, used in the acquisition of the Industrial portfolio in June 2017, has been repaid.

The all-in contracted weighted average cost of debt was 2.44% at year end, down from 2.53% at 31 March 2017.

The Swiss portfolio is being marketed for sale; consequently, loans secured against these assets amounting to
CHF57.9 million were refinanced as a three month rolling credit facility, and loans amounting to CHF7.8 million were
refinanced with a one year term until 31 March 2019.

The Care Homes bank facility with Deutsche Postbank totalled EUR22.1 million at year end and was refinanced on
31 March 2018 until December 2023. The new margin of 1.25% and a swap of 0.52% gives an all-in rate of 1.77% and
there are annual combined amortisation payments of EUR549,000. The facility covers all four care homes, with the new
terms for two of the loans not commencing until 1 January 2019, when they are due to mature. All four loans now
have a coterminous maturity date. The all-in rate prior to this refinance was 2.61% per annum.

The bank facility relating to the five German Bikemax properties was refinanced in December 2017 to EUR12.6 million,
with the existing lender for a new five-year facility maturing in December 2022, at a margin of 1.55%. The current LTV
ratio of the loan is 46% and, as part of the refinancing, annual amortisation of EUR400,000 has been removed. An interest
rate cap was purchased in order to provide flexibility over future disposals while also allowing Stenprop to benefit from
the current low interest rate environment.

As mentioned above, in view of its changed strategy, Stenprop is targeting a reduced level of total borrowings (at a
Group level) to approximately 45% of its gross asset value by 31 March 2019, and 40% by 31 March 2020, by utilising
part of the proceeds of disposals of its existing non-MLI portfolio. Thereafter, the Directors will employ a level of
borrowing that they consider to be prudent for the asset class, taking into account prevailing market conditions.

The Group mitigates interest rate risk through the use of derivative instruments such as interest rate swaps or interest
rate caps in respect of at least 75% of its interest rate exposure. The Group utilises derivative instruments solely for the
purposes of efficient portfolio management.

REIT conversion
As previously mentioned, the Company converted to UK REIT status on 1 May 2018.

Update on London Stock Exchange ('LSE') listing
The Company's entire issued ordinary share capital is currently admitted to trading on the Main Board for listed
securities of JSE. Assisted by Numis Securities Limited, acting as financial adviser, an application will be made to the
LSE for all of the ordinary shares of the Company to be admitted to trading on the SFS. Admission to trading on the
LSE constitutes admission to trading on a regulated market. It is expected that UK Admission will become effective
and that unconditional dealings will commence in the ordinary shares on the LSE at 8.00 a.m. on 15 June 2018,
following publication of the Company's prospectus on its website on 8 June 2018. Simultaneously with the new listing
on the LSE, the Company will delist from the Bermuda Stock Exchange. It will retain its primary listing on the Main
Board of the JSE.

Ultimately, Stenprop's intention is to list on the Premium Segment of the Main Market of the LSE.

Migration of the Company to Guernsey
As previously reported, as a consequence of the intended listing and following approval at the special general meeting
held on 7 March 2018, Stenprop migrated its jurisdiction of incorporation from Bermuda to Guernsey on 23 March 2018.

Board appointments and resignations
Following the conversion of the Company to REIT status on 1 May 2018, there have been a number of changes to the
Board. With effect from the date of conversion, the independent non-executive chairman, Stephen Ball, and executive
director, Neil Marais, resigned from the Board. With effect from the same date, Julian Carey was appointed as executive
property director, Richard Grant was appointed as independent non-executive chairman and Philip Holland was
appointed as Independent non-executive director and chairman of the audit committee of Stenprop.

On 28 February 2018, Mandy Yachad resigned from the Board as an independent non-executive director and on
5 April 2017, Warren Lawlor was appointed as a non-executive director.

Subsequent events
On 4 June 2018, Stenprop completed the sale of its joint venture interest in Argyll Street in London's West End by way
of a sale of shares. The sale valued the property at GBP83.4 million and generated net proceeds of GBP22.8 million.

As detailed earlier in this report, on 24 April 2018 Stenprop completed the acquisition of a fully-let industrial
estate in Shrewsbury for GBP2.9 million. The estate comprises 24 units, totalling 44,611 sq ft of industrial space. On
1 June 2018, Stenprop completed the acquisition of a multi-let industrial estate in Kirkstall, Leeds for GBP8.1 million. The
estate comprises 14 units totalling 111,081 sq ft of industrial space.

In May 2018, an amount of GBP8.4 million was drawn down from The Royal Bank of Scotland plc, secured against the MLI
properties located in Shrewsbury, Leeds and Huddersfield, with a term of five years and an interest rate equal to three
month LIBOR plus a margin of 2.25 per cent per annum.

Subsequent to the year end, a EUR14.8 million loan with DGHyp was refinanced. The loan, relating to the Aldi portfolio,
was extended until 30 April 2020. Loan interest is calculated at 1.85% per annum over the 3-month-euribor and the
terms of the facility allow the borrower to benefit from negative interest rates. At the date of refinance this reduced
the all-in interest rate for the first three-month interest period to 1.52%.

On 6 June 2018, the Directors declared a final dividend of 4.0 pence per share. The final dividend will be payable in
cash or as a scrip dividend by way of an issue of new Stenprop shares. An announcement containing details of the
dividend and the timetable will be made in due course.

Prospects
Stenprop remains confident in its strategic decision that its objective to deliver sustainable growing income to
shareholders is best achieved by transforming the business into a focused UK MLI property company. This strategic
repositioning means that Stenprop, over the next few years, intends to sell all, or substantially all of its non-MLI assets
and utilise the sale proceeds to build a focused UK MLI business and to target a reduced leverage ratio of no more than
40% by 31 March 2020. Simultaneously, Stenprop will also exit from its third-party management activity.

Whilst Stenprop is confident that its increasing investment in the MLI sector will, over time, position it to achieve
its core objective of delivering sustainable growing income to its shareholders, the full impact on its earnings and
distributions during the transition period will depend on a number of factors. These include the timing and commercial
terms of acquisitions and disposals, and the implementation of its deleveraging strategy. Fluctuations from changes
in exchange rates resulting from its holdings in Germany and Switzerland will diminish and eventually be eliminated.

As a result of its strategic repositioning, the Board has taken a decision to rebase the level of distributions going forward
in order to ensure that they are fully covered by property-related earnings only. Distribution of non property-related
earnings will be evaluated from time to time, but these are more likely to be utilised for additional MLI investment.

This approach aligns the dividend policy with the more predictable contractual rental income streams derived from
the properties owned by Stenprop, rather than the less predictable management fee income from third-party fund
management activities. It also takes into account the Board's view that, with yields on income producing property
having contracted over the past 12 months, reflecting the low interest rate environment and increasing competition for
income producing property, yields on MLI property may contract further as the Company transitions into a focused
MLI specialist. This reflects Stenprop's view of the MLI property fundamentals and the likelihood of further strong
rental growth materialising in the sector. If Stenprop is to remain competitive in the market place for acquisitions of
additional MLI property and to pay a sustainable and growing dividend, it is necessary to rebase the dividend.

Stenprop will no longer provide guidance on its earnings; instead it will provide guidance on its anticipated distributions
per share. Assuming that current trading conditions will prevail and based on average exchange rates of EUR1.13:GBP1.00
and CHF1.30:GBP1.00 for the year ended 31 March 2019, Stenprop is targeting to pay a total dividend of 6.75 pence per
share, a 15.6% reduction over the 8 pence total dividend paid in respect of the year ended 31 March 2018. This target
can be evaluated against the diluted adjusted EPRA EPS attributable to the property rental business of 7.29 pence
per share for the year ended 31 March 2018, with a further amount of 1.80 pence per share attributable to the non
property-related earnings.

The Company intends to pay an interim dividend of 3.375 pence per share in January 2019 and the remainder by way
of a final dividend in late July or early August 2019. A 6.75 pence dividend would represent a dividend yield of 5.9% on
the current share price of GBP1.14 or a dividend yield of 4.8% on the Company's diluted EPRA NAV per share at 31 March
2018 of GBP1.41. Part of the distributions will be a Property Income Distribution (known as a PID) which, subject to certain
exemptions, will attract UK withholding tax.

This general forecast has been based on the Group's forecast and has not been reported on by the external auditors.
There can be no assurance that these targets will be met or that the Company will make any distributions at all.

Given the nature of its business, Stenprop has adopted distribution per share as its key performance measure, as this
is considered more relevant than earnings or headline earnings per share.

Statement of directors' responsibilities

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

The Companies (Guernsey) Law, 2008 (as amended) requires the directors to prepare financial statements for each
financial year. Under that law the directors are required to prepare the group financial statements in accordance with
International Financial Reporting Standards ('IFRS'). The financial statements are required to give a true and fair view
of the state of affairs of the Group and of the profit or loss of the Group for that period. In preparing these financial
statements, the directors are 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 IFRS is 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 Company's ability to continue as a going concern.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any
time the financial position of the Group and to enable them to ensure that the financial statements comply with the
Companies (Guernsey) Law, 2008. 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on
the Company's website. Legislation in Guernsey governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.

Responsibility statement
To the best of the directors' knowledge, the consolidated financial statements, prepared in accordance with IFRS; give
a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information of which the Group's auditors are unaware, and
each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any
relevant audit information and to establish that the Group's auditors are aware of that information.

Approval of annual financial statements
The consolidated annual financial statements of Stenprop Limited were approved by the Board of Directors on
6 June 2018 and are signed on their behalf by:


Paul Arenson                     Patsy Watson
Chief Executive Officer          Chief Financial Officer

Consolidated statement of comprehensive income
for the year ended 31 March 2018

                                                                                            31 March       *31 March
                                                                                                2018            2017
                                                                                    Note     GBP'000         GBP'000
                     
Net rental income                                                                      6      32,861          25,468
- Rental Income                                                                               42,349          34,028
- Property expenses                                                                          (9,488)         (8,560)
Management fee income                                                                          5,092           3,109
Operating costs                                                                        7     (8,290)         (5,019)
Net operating income                                                                          29,663          23,558
Fair value movement of investment properties                                          16      20,223           2,431
Gain/(loss) from associates                                                           18         292         (9,838)
Income from joint ventures                                                            19       7,624           3,430
Loss on disposal of subsidiaries                                                      29        (26)               -
Profit from operations                                                                        57,776          19,581
Net gain from fair value of derivative financial instruments                          26       2,453             489
Interest receivable                                                                              356             245
Finance costs                                                                          9     (9,843)         (6,241)
Net foreign exchange (loss)/gain                                                               (492)             274
Gain on disposal of property                                                          16       1,046               -
Goodwill impairment                                                                   27     (3,500)               -
Profit for the year before taxation                                                           47,796          14,348
Current tax                                                                           10       (563)           (970)
Deferred tax                                                                          10     (4,286)         (1,282)
Profit for the year from continuing operations                                                42,947          12,096
Discontinued operations                    
(Loss)/profit for the year from discontinued operations                               20     (2,712)           2,814
Profit for the year                                                                           40,235          14,910
Profit attributable to:                    
Equity holders                                                                                39,357          14,687
Non-controlling interest derived from continuing operations                                      878             223
                    
Other comprehensive income                    
Items that may be reclassified subsequently to profit or loss:                    
Foreign currency translation reserve                                                           (154)          16,827
Total comprehensive profit for the year                                                       40,081          31,737
Total comprehensive profit attributable to:                     
Equity holders                                                                                39,203          31,514
Non-controlling interest                                                                         878             223
                     
Earnings per share                                                                             Pence           Pence
From continuing operations                     
IFRS EPS                                                                              14       14.94            4.20
Diluted IFRS EPS                                                                      14       14.85            4.19
From continuing and discontinued operations                     
IFRS EPS                                                                              14       13.98            5.20
Diluted IFRS EPS                                                                      14       13.89            5.18
 
* The comparatives have been restated to reflect the change in presentational currency. See note 1.

Consolidated statement of financial position
as at 31 March 2018

                                                                                   31 March    *31 March    *31 March
                                                                                       2018         2017         2016
                                                                            Note    GBP'000      GBP'000      GBP'000
ASSETS                    
Investment properties                                                         16    535,509      470,603      576,757
Investment in associates                                                      18        303       17,863       31,057
Investment in joint ventures                                                  19     14,660       31,435       29,731
Other debtors                                                                 21     13,617       11,634        5,853
Derivative financial instruments                                              26        712            -            -
Total non-current assets                                                            564,801      531,535      643,398
Cash and cash equivalents                                                     22     24,549       25,202       29,093
Trade and other receivables                                                   21      8,208        4,069        5,032
Assets classified as held for sale                                            20    147,408      135,373            -
Total current assets                                                                180,165      164,644       34,125
Total assets                                                                        744,966      696,179      677,523
EQUITY AND LIABILITIES                    
Capital and reserves                    
Share capital and share premium                                               12    315,551      310,141      305,999
Equity reserve                                                                      (8,453)      (8,976)          353
Retained earnings                                                                    57,947       40,945       48,021
Foreign currency translation reserve                                                 22,286       22,440        5,613
Total equity attributable to equity shareholders                                    387,331      364,550      359,986
Non-controlling interest                                                              2,939        2,051        1,685
Total equity                                                                        390,270      366,601      361,671
Non-current liabilities                    
Bank loans                                                                    24    256,697      216,047      141,236
Derivative financial instruments                                              26        699        2,853        3,298
Other loan and interest                                                       25          -            -            9
Deferred tax                                                                  30      9,379        5,794        7,670
Total non-current liabilities                                                       266,775      224,694      152,213
Current liabilities                    
Bank loans                                                                    24      2,800       13,004      149,198
Derivative financial instruments                                              26          -          119        1,398
Taxes payable                                                                         2,792        2,294        1,403
Accounts payable and accruals                                                 23     14,622       13,266       11,640
Liabilities directly associated with assets classified                    
as held for sale                                                              20     67,707       76,201            -
Total current liabilities                                                            87,921      104,884      163,639
Total liabilities                                                                   354,696      329,578      315,852
Total equity and liabilities                                                        744,966      696,179      677,523
                                                                                        GBP          GBP          GBP
IFRS net asset value per share                                                15       1.37         1.31         1.27

*The comparatives have been restated to reflect the change in presentational currency. See note 1.

Consolidated statement of changes in equity
for the year ended 31 March 2018

                                      Share                               Foreign 
                                    capital                              currency  Attributable         Non-
                                  and share     Equity     Retained   translation     to equity  controlling     Total
                                    premium    reserve     earnings       reserve  shareholders     interest    equity
                                    GBP'000    GBP'000      GBP'000       GBP'000       GBP'000      GBP'000   GBP'000
Balance at 1 April 2017             310,141    (8,976)       40,945        22,440       364,550        2,051   366,601
Issue of share capital                5,410       (16)            -             -         5,394            -     5,394
Credit to equity for equity- 
settled share-based payments              -        539            -             -           539            -       539
Total comprehensive profit/  
(loss) for the year                       -          -       39,357         (154)        39,203          888    40,091
Ordinary dividends                        -          -     (22,355)             -      (22,355)            -  (22,355)
Balance at 31 March 2018            315,551    (8,453)       57,947        22,286       387,331        2,939   390,270
                                          -          -            -             -             -            -         -
Balance at 1 April 2016             305,999        353       48,021         5,613       359,986        1,685   361,671
Issue of share capital                4,142       (11)            -             -         4,131            -     4,131
Credit to equity for equity- 
settled share-based payments              -        268            -             -           268            -       268
Repurchase of own shares                  -    (9,586)            -             -       (9,586)            -   (9,586)
Total comprehensive profit for
the year                                  -          -       14,687        16,827        31,514          366    31,880
Ordinary dividends                        -          -     (21,763)             -      (21,763)            -  (21,763)
Balance at 31 March 2017            310,141    (8,976)       40,945        22,440       364,550        2,051   366,601

Consolidated statement
of cash flows
for the year ended 31 March 2018

                                                                                               31 March      31 March
                                                                                                   2018          2017
                                                                                      Note      GBP'000       GBP'000
Operating activities                 
Profit from operations from continuing operations                                                57,776        19,581
(Loss)/profit from operations from discontinued operations                                      (2,127)         4,254
                                                                                                 55,649        23,835
Share of (gain) /loss from associates                                                             (292)         9,838
Increase in fair value of investment property                                                  (14,305)       (1,573)
Share of profit in joint ventures                                                               (7,624)       (3,430)
Loss on disposal of subsidiaries                                                                     26             -
Exchange rate (gains)/losses                                                                      (492)           274
Increase in trade and other receivables                                                           (416)          (83)
(Decrease)/Increase in trade and other payables                                                   (594)         3,338
Interest paid                                                                                   (9,098)       (7,781)
Interest received                                                                                   976         1,090
Net tax paid                                                                                      (855)         (865)
Net cash from operating activities                                                               22,975        24,643
Contributed by:  Continuing operations                                                           20,552        22,354
                 Discontinued operations                                                          2,423         2,289
Investing activities                 
Dividends received from joint ventures                                                              563         1,521
Asset acquisitions                                                                      27     (57,858)             -
Purchases of investment property                                                        16     (22,831)             -
Capital expenditure                                                                             (5,553)       (1,641)
Proceeds on disposal of investment property                                             16       35,850         5,346
Acquisition of investment in joint venture                                                            1             -
Proceeds on disposal of investment in associate                                                  18,345         5,745
Disposal of subsidiary                                                                  29       42,608             -
Net cash disposed of in subsidiary                                                              (1,831)             -
Net cash from investing activities                                                                9,294        10,971
Financing activities                 
New bank loans raised                                                                            20,703             -
New third party loans raised                                                            25       34,080             -
Dividends paid                                                                                 (22,355)      (21,763)
Repayment of borrowings                                                                        (29,509)       (7,680)
Repayment of third party loans                                                          25     (34,591)             -
Repurchase of shares                                                                                  -       (9,586)
Financing fees paid                                                                             (1,247)         (169)
Payments made on swap break                                                                           -          (84)
New loan advances                                                                                     -       (1,045)
Repayment of loan advances                                                                            -           210
Net cash used in financing activities                                                          (32,919)      (40,117)
Net decrease in cash and cash equivalents                                                         (650)       (4,503)
Effect of foreign exchange rate changes                                                             110         1,237
Cash and cash equivalents at beginning of the period                                             25,827        29,093
Cash and cash equivalents at end of the period                                                   25,287        25,827
Contributed by:  Continuing operations                                                           24,549        25,202
                 Discontinued operations and assets held for sale                                   738           625
                 
Notes to the consolidated
financial statements
for the year ended 31 March 2018


1. General Information
Stenprop Limited (the 'Company' and together with its subsidiaries the 'Group') was registered in Guernsey with
effect from 23 March 2018 (Registration number 64865) and has adopted new articles of incorporation. The registered
address of the Company is Kingsway House, Havilland Street, St Peter Port, GY1 2QE, Guernsey. The Company was
formerly registered in Bermuda under number 47031. With effect from 1 May 2018, the Company converted to a UK
real estate investment trust ('REIT').

2. Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards ('IFRS's) as issued by the IASB, the requirements of IAS 34: Interim Financial Reporting, the JSE Listings
Requirements and applicable Guernsey law. The consolidated financial statements have been prepared on the historical
cost basis, except for the revaluation of investment properties and financial instruments that are measured at fair values
at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on
the fair value of the consideration given in exchange for goods and services. The principal accounting policies, which
are consistent with those applied in the previous annual financial statements, are set out below.

This summarised report is extracted from audited information, but is itself not audited. The board of directors (the
'Board' or the 'Directors') take full responsibility for the preparation of the provisional report and that the financial
information has been correctly extracted from the underlying consolidated financial statements. The auditors, Deloitte,
have reported on the audited consolidated financial statements and their report was unqualified. A copy is available
upon written request from the Company's registered office.

The consolidated financial statements are presented in GBP (Pounds Sterling).

Going concern
At the date of signing these consolidated financial statements, the Group has positive operating cash flow forecasts
and positive net assets. Management have reviewed the Group's cash flow forecasts for the 18 months to 30 September
2019 and, in light of this review and the current financial position, they are satisfied that the Company and the Group
have access to adequate resources to meet the obligations and continue in operational existence for the foreseeable
future, and specifically the 12 months subsequent to the signing of these financial statements.

The remaining Swiss portfolio is currently being marketed for sale (note 20) and are at various stages in the sale
process. As such, the loans at 31 March 2018, were refinanced on a short-term basis as a rolling credit facility or will
mature on 31 March 2019. Should a decision be taken not to sell the properties for any reason, or if the sale process is
delayed, the directors anticipate that, given the quality of the properties and the strong and proven relationships with
Swiss lenders, a refinancing can be secured on favourable terms where necessary.

The directors believe that it is therefore appropriate to prepare the accounts on a going concern basis.

Note 31 to the consolidated financial statements includes the Group's objectives, policies and procedures for managing
its market, interest and liquidity risk.

Change in presentation currency
From 1 April 2017, the Group changed its presentation currency to Pounds Sterling ('GBP'). This represents a change
from the prior period and has been applied to reflect the relatively larger weighting of Stenprop's UK portfolio following
implementation of the acquisition and sales strategy and Stenprop's entry into the multi-let industrial estate asset
class.

Comparative information has been restated in GBP in accordance with the guidance defined in IAS 21, specifically:
-  Assets and liabilities for each statement of financial position presented have been translated at the closing rate at
   the date of that statement of financial position;
-  Income and expenses for each statement of comprehensive income presented have been translated at average
   exchange rates for the period; and
-  All resulting exchange differences have been recognised in other comprehensive income.

Adoption of new and revised standards
At the date of approval of these consolidated financial statements, the Group has not applied the following new and
revised standards that have been issued but are not yet effective:

-  IAS 7 (amendments)                     Disclosure Initiative
-  IAS 12 (amendments)                    Recognition of Deferred Tax Assets for Unrealised Losses
-  IAS 40 (amendments)                    Transfers of investment property
-  IFRS 2 (amendments)                    Classification and Measurement of Share-based Payment Transactions
-  IFRS 4 (amendments)                    Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts 
-  IFRS 9                                 Financial Instruments
-  IFRS 14                                Regulatory Deferral Accounts
-  IFRS 15                                Revenue from Contracts with Customers
-  IFRS 16                                Leases
-  IFRIC 22                               Foreign Currency Transactions and Advance Consideration

Impact assessment of adopting new accounting standards
Management are in the process of assessing these standards and do not expect that the adoption of the standards
listed above will have a material impact on the financial statements of the Group in future periods.

IFRS 9: Financial instruments is effective for financial years commencing on or after 1 January 2018. This standard
replaces the guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 outlines an impairment
model which reflects expected credit losses. This differs from IAS 39 which only recognised those credit losses which
have been incurred. The new impairment model will apply to the Group's financial assets including trade and other
receivables and cash and cash equivalents. The Directors will apply a simplified approach to recognise expected
credit losses for these current assets. The Directors do not expect there to be any material impact on the adoption of
IFRS 9. The Directors note that there will be no change in the accounting for financial liabilities as derivative financial
instruments continue to qualify for designation as at fair value through profit and loss under IFRS 9.

IFRS 15: Revenue from Contracts with Customers is effective for financial years commencing on or after 1 January
2018. The standard combines a number of previous standards, setting out a five-step model for the recognition of
revenue as well as establishing principles for reporting useful information to users of financial statements about the
nature, amount, timing and uncertainty of revenue. The standard applies to service charge income, car park income
and asset management income. The Directors do not consider that its adoption will have a material impact on the
financial statements.

IFRS 16: Leases is effective for financial years commencing on or after 1 January 2019 and requires lessees to recognise a
right-of-use asset and related obligation to make lease payments. Related interest and depreciation will be recognised
in the statement of comprehensive income. The Group does not anticipate that the adoption of this standard will have
a material impact on the financial statements.

3. Significant accounting policies
Basis of consolidation
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group
loses control of the subsidiary. Specifically, the results of the subsidiaries acquired or disposed of during the period
are included in the consolidated statement of comprehensive income from the date the Company gains control until
the date when the Company ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company
and to the non-controlling interests. Total comprehensive income of the subsidiaries is attributed to the owners of
the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit
balance.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies
used in line with the Group's accounting policies.

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

When the Group loses control of a subsidiary, the gain or loss on disposal recognised in profit or loss is calculated
as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of
any retained interest, and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the
subsidiary and any non-controlling interests.

All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if
the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or
transferred to another category of equity as specified/permitted by applicable IFRS). The fair value of any investment
retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for
subsequent accounting under IAS 39 Financial instruments: recognition and measurement or, when applicable, the
costs on initial recognition of an investment in an associate or jointly controlled entity.

Investments in associates
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest
in a joint venture. Significant interest is the power to participate in the financial and operating policy decisions of the
investee but is not control or joint control over those policies.

The results, assets and liabilities of associates are incorporated in these consolidated financial statements using the
equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for
in accordance with IFRS 5 Non-current Assets Held for Sale and discontinued operations. Under the equity method, an
investment in associate is initially recognised in the consolidated statement of financial position at cost and adjusted
thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the associate.

Joint ventures
The Group's investment properties are typically held in property-specific special purpose vehicles ('SPVs'), which
may be legally structured as joint ventures. In assessing whether a particular SPV is accounted for as a subsidiary or
joint venture, the Group considers all of the contractual terms of the arrangement, including the extent to which the
responsibilities and parameters of the venture are determined in advance of the joint venture agreement being agreed
between the two parties. The Group will then consider whether it has the power to govern the financial and operating
policies of the SPV, so as to obtain benefits from its activities, and the existence of any legal disputes or challenges
to this control in order to conclude on the classification of the SPV as a joint venture or subsidiary undertaking. The
Group considers this position with the evidence available at the time.

The consolidated financial statements account for interests in joint ventures using the equity method of accounting
per IFRS 11.

Business combinations and asset acquisitions
Business combinations are accounted for using the acquisition method and any excess of the purchase consideration
over the fair value of the next assets acquired is initially recognised as goodwill and reviewed for impairment. Any
discount received and/or acquisition costs are recognised in the consolidated income statement. Where an acquisition
of properties held within a corporate structure is not judged to be an acquisition of a business, the transaction is
accounted for as if the Group had acquired the underlying properties directly.

Revenue recognition
The Group earns returns from investments in direct property assets and management fees. Revenue is recognised
when it is probable that the economic benefits associated with the transaction will flow to the Group and the amount
of revenue can be measured reliably.

Revenue includes amounts receivable in respect of property rental income and service charges earned in the normal
course of business, net of sales-related taxes.

Rental income from operating leases is recognised on an accruals basis. A rent adjustment based on open
market estimated rental value is recognised from the rent review date in relation to unsettled rent reviews. Where
a significant rent free period is included in a lease, the rental income forgone is allocated evenly over the period
from the date of lease commencement to the expiry date of the lease.

Rental income from fixed and minimum guaranteed rent reviews is recognised on a straight-line basis over the entire
lease term. Where such rental income is recognised ahead of the related cash flow, an adjustment is made to ensure
the carrying value of the investment property, including the accrued rent, does not exceed the external valuation.
Initial significant direct costs incurred in negotiating and arranging a new lease are amortised on a straight-line basis
over the period from the date of lease commencement to the expiry date of the lease.

Where a lease incentive payment, or surrender premium is paid to enhance the value of a property, it is amortised on a
straight-line basis over the period from the date of lease commencement to the expiry date of the lease. Upon receipt
of a surrender premium for the early determination of a lease, the profit, net of dilapidations and non recoverable
outgoings relating to the lease concerned, is immediately reflected in income.

Contingent rents, such as turnover rents, rent reviews and indexation, are recorded as income in the periods in which
they are earned.

Management fees are recognised in the income statement on an accruals basis.

Service charge income is recognised in the accounting period in which the services are rendered and the related
property expenses are recognised in the period in which they are incurred.

Foreign currencies
The individual financial statements of each Group company are presented in the currency of the primary economic
environment in which it operates (its functional currency). For the purpose of the consolidated financial statements,
the results and financial position are expressed in GBP Sterling, which is the functional currency of the Company and
the presentational currency for the Group.

In preparing the financial statements of the individual companies, transactions in currencies other than the entity's
functional currency (foreign currencies) are recognised at the rates of exchange prevailing on the dates of the
transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies
are translated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in
foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary
items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are
recognised in profit or loss for the period in which they arise.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group's foreign
operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are
translated at the average exchange rates for the period. Exchange differences arising are recognised in other
comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Borrowing costs
Interest costs are recognised in the consolidated statement of comprehensive income using the effective interest rate
method.

Borrowing costs directly attributable to arranging finance are amortised over the facility term in the consolidated
statement of comprehensive income.

Current tax
Tax currently payable is based on taxable profit for the year. The Group's liability for current tax is calculated using tax
rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable
that taxable profits will be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither
the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries
and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with such investments and interests are only recognised to
the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the
reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group
intends to settle its current tax assets and liabilities on a net basis.

Non-controlling interest
Non-controlling interests in the net assets (excluding goodwill) of consolidated subsidiaries are identified separately
from the Group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the
original business combination and the non-controlling interests' share of the changes in equity since the date of the
combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-
controlling interests having a deficit balance.

Investment properties
Properties held to earn rental income and/or for capital appreciation are classified as investment properties. Investment
properties comprise both freehold and leasehold land and buildings.

Investment properties are recognised as assets when:
-  it is probable that the future economic benefits that are associated with the investment property will flow
   to the Group;
-  there are no material conditions precedent which could prevent completion; and
-  the cost of the investment property can be measured reliably.

Investment properties are measured initially at cost, including related transaction costs. After initial recognition,
investment properties are carried at fair value, determined by the directors and/or based on independent external
appraisals.

The Group uses the valuations prepared by its independent valuers as the fair value of its investment properties. These
valuations are undertaken in accordance with the appropriate sections of the current Practice Statements contained in
the Royal Institution of Chartered Surveyors Valuation - Professional Standards ('Red Book'). This is an internationally
accepted basis of valuation. The valuations are based upon assumptions including contractual and estimated rental
values, future rental income, anticipated maintenance costs, future development costs and appropriate discount rates.
The valuers also make reference to market evidence of transaction prices for similar properties.

The difference between the fair value of a property at the reporting date and its carrying amount prior to
re-measurement is included in the consolidated statement of comprehensive income as a valuation surplus or deficit.

Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and short-term deposits with an original
maturity of three months or less.

Expenditure
Expenses are accounted for on an accrual basis.

Financial instruments
A financial instrument is a contract that gives rise to a financial asset to one entity and a financial liability or equity
instrument to another. The classification of financial assets and financial liabilities depends on the nature and purpose
of the instrument and is determined at the time of initial recognition.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets at fair value through
profit or loss ('FVTPL') are added to or deducted from the fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition.

Transactions costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are
recognised immediately in the statement of comprehensive income.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date.
Level 2 - Inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability,
either directly or indirectly.
Level 3 - Inputs are unobservable inputs for the asset or liability.

Financial assets
The Group classifies its financial assets as either at fair value through profit and loss or as loans and receivables.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. They include current assets with maturities or terms greater than 12 months after the reporting dates
which are classified as non-current assets.

Loans and receivables, including those relating to the purchase of Stenprop shares (note 21), are measured at
amortised cost using the effective interest method, less impairment losses which are recognised in the statement of
comprehensive income. In the case of short-term trade receivables and payables, the impact of discounting is not
material and cost approximates amortised costs.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset have expired
or have been transferred and the Group has transferred substantially all risk and rewards of ownership of the asset to
another entity.

Financial assets, specifically accounts receivable and other debtors, are assessed for indicators of impairment at the
end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that,
as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future
cash flows of the investments have been affected.

Objective evidence of impairment could include:
-  significant financial difficulty of the issuer or counterparty; or
-  breach of contract, such as a default or delinquency in interest or principal payments; or
-  it becoming probable that the borrower will enter bankruptcy or financial reorganisation.

For financial assets carried at amortised cost, the amount of the impairment loss is measured as the difference between
the asset's carrying amount and present value of the estimated future cash flows, discounted at the financial asset's
original effective interest rate.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets, with the
exception of trade receivables, where the carrying amount is reduced through the use of a provision account. When
a trade receivable is considered uncollectable, it is written off against the provision account. Changes in the carrying
amount of the provision account are recognised in the statement of comprehensive income in the period.

For financial assets measured at amortised cost if, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event occurring after the impairment was recognised,
the previously recognised impairment loss is reversed through the statement of comprehensive income to the
extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what
the amortised cost would have been had the impairment not been recognised.

Financial liabilities and equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance
of the contractual agreement.

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all its
liabilities. Ordinary shares are classed as equity. Equity instruments issued by the Group are recorded at the proceeds
received, net of direct issue costs.

The Group's financial liabilities comprise interest-bearing borrowings, loans and payables and trade payables. Financial
liabilities are recognised when the Group becomes party to the contractual provisions of the instrument. Financial
liabilities are measured at amortised cost using the effective interest method.

The Group derecognises financial liabilities when the Group's obligations are discharged, cancelled or they expire.

Interest rate swaps have been initially recognised at fair value, and subsequently re-measured at fair value in accordance
with IAS 39, Financial Instruments: Recognition and Measurement. They have been entered into in order to hedge
against the exposure to variable interest rate loans as described in note 26. They have been valued by an independent
valuer in line with internationally accepted practice.

A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value
is recognised as a financial liability. A derivative is presented as a non-current asset or non-current liability if the
remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within
12 months. It is Group policy not to hedge account. Other derivatives are presented as current assets or current
liabilities.

Trade and other receivables
These are valued at their nominal value (less accumulated impairment losses) as the time value of money is immaterial
for these current assets. Impairment losses are estimated at the year end by reviewing amounts outstanding and
assessing the likelihood of recoverability.

Trade and other payables
Trade and other payables are valued at their nominal value as the time value of money is immaterial for these current
liabilities.

Dividends
Dividends to the Group's ordinary shareholders are recognised when they are declared. This is when they are approved
by the board.

Earnings/(loss) per share
Earnings per share is calculated on the weighted average number of shares in issue in respect of the current period
and is based on the profit attributable to the ordinary shareholders.

Share-based payments
Deferred Share Bonus Plan and Long term incentive plans
Share options are granted to key management. The cost of equity settled transactions is measured with reference to
the fair value at the date at which they were granted. The Company accounts for the fair value of these options on a
straight-line basis over the vesting period in the income statement, with a corresponding increase to the share-based
payment reserve in Equity. The cost to the Company is based on the Company's best estimate of the number of equity
instruments that will ultimately vest.

Readers are referred to note 13: Share-based payments, where share-based payments are further disclosed.

Share Purchase Plan
As part of the Group's previous remuneration policy, the Company awarded shares to qualifying participants,
funded through the advance of loans to the participants. Loans advanced under the share purchase plan are
interest-bearing at a rate equal to the average interest rate incurred by the Group from time to time. Interest is
payable six monthly in arrears. Loans are repayable within 30 days of cessation of employment (unless the
participant ceases employment in circumstances beyond his or her control, in which case the loan is repayable
within 12 months), and must in all circumstances be repaid in ten years. All dividends received by such employees
(or his or her nominee) by virtue of their shareholding must first be utilised to discharge any interest outstanding
in terms of the loan advanced in terms of the Share Purchase Plan.

The loans have full recourse to the participants and as such fall outside of the scope of IFRS 2 and are accounted
for as financial instruments under IAS. The participants must charge their shares by way of security for the loan. The
loans have full recourse to the participants who waive all rights to compensation for any loss in relation to the Plan. No
further awards will be made under the Share Purchase Plan.

Repurchase of share capital (Own Shares)
Where share capital recognised as equity is repurchased, the amount of the consideration paid, including directly
attributable costs, is recognised as a deduction from equity. Such shares may either be held as Own Shares
(treasury shares) or cancelled. Where Own Shares are subsequently re-sold from treasury, the amount received
is recognised as an increase in equity.

4. Critical accounting judgements and key sources of estimation uncertainty
The preparation of the consolidated financial statements in accordance with IFRS requires the use of certain critical
accounting estimates. It also requires management to exercise judgement in the process of applying the Group's
accounting policies. Although the estimates are based on management's best knowledge of the amount, events or
actions, actual results may ultimately differ from those estimates.

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

Significant estimates
Investment properties
The Group's investment properties are stated at estimated fair value, determined by directors, based on an independent
external appraisal. The valuation of the Group's property portfolio is inherently subjective due to a number of factors
including the individual nature of each property, its location and the expectation of future rentals. As a result, the
valuations placed on the property portfolio are subject to a degree of uncertainty and are made on the basis of
assumptions that may not prove to be accurate particularly in years of volatility or low transaction flow in the market.
The estimated market value may differ from the price at which the Group's assets could be sold at a particular time,
since actual selling prices are negotiated between willing buyers and sellers. As a result, if the assumptions prove to
be false, actual results of operations and realisation of net assets could differ from the estimates set forth in these
financial statements, and the difference could be significant.

Deferred tax assets and liabilities
Tax liabilities are recognised when it is considered probable that there will be a future outflow of funds to a taxing authority.
In such cases, provision is made for the amount that is expected to be settled, where this can be reasonably estimated.
This requires the application of judgement as to the ultimate outcome, which can change over time depending on facts
and circumstances. A change in estimate of the likelihood of a future outflow and/or in the expected amount to be settled
would be recognised in income in the period in which the change occurs. Deferred tax assets are recognised only to the
extent it is considered probable that those assets will be recoverable. This involves an assessment of when those assets are
likely to reverse, and a judgement as to whether or not there will be sufficient taxable profits available to offset the assets
when they do reverse. This requires assumptions regarding future profitability and is therefore inherently uncertain. To the
extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts recognised
in respect of deferred tax assets as well as in the amounts recognised in income in the period in which the change occurs.
Deferred tax assets and liabilities are presented in note 30.

Significant judgements
Assets held for sale
The directors have disclosed a number of properties which met the criteria defined in IFRS 5 as Assets held for sale.
In the case of the Swiss Porfolio the directors consider the exceptions permitted by IFRS 5:9 to apply in respect to
the one-year requirement within which a sale should complete. This is due to the fact that during the initial one-year
period, circumstances arose that were previously considered unlikely. As a result, the properties which were previously
classified as held for sale were not sold; however:

(i)   during the initial one-year period the entity took action necessary to respond to the change in circumstances;
(ii)  the properties are still being actively marketed at a price that is reasonable, given the change in circumstances,
      and
(iii) all other criteria in paragraphs 7 & 8 of IFRS 5 are met.

The value of the Assets held for sale are estimated at fair value, determined by the directors, based on an independent
external appraisal.

Business combinations and asset acquisitions
In accounting for the acquisitions of the Industrials portfolio and C2 Capital Limited, both of which completed on
30 June 2017, Stenprop has considered whether each of the transactions represented a business combination as
defined by IFRS 3, or an asset acquisition. When management conclude that processes and inputs are being acquired
in addition to the property then the transaction is accounted for as a business combination. When there are no such
items, the transaction is treated as an asset acquisition. Management concluded that the acquisition of Industrials
portfolio was an asset acquisition and the acquisition of C2 Capital Limited was a business combination.

5. Operating segments
The Group is focused on real estate investment in well-developed, large economies with established real estate markets.
The investment portfolio is primarily geographically diversified across Germany, the United Kingdom and Switzerland,
with a further sub-division within the UK between industrial and non-industrial. Each segment derives its revenue from
the rental of investment properties in the respective geographical regions.
Relevant financial information is set out below:

i) Information about reportable segments

                                                                                     Discontinued
                                             Continuing operations                    operations
                                                          UK Non              UK
                                                       Multi-let       Multi-let
                                           Germany    Industrial      Industrial    Switzerland       Total
                                           GBP'000       GBP'000         GBP'000        GBP'000     GBP'000
For the year ended 31 March 2018   
Net rental income                           11,589        14,628           6,644              -      32,861
Fair value movement of investment    
properties                                  23,969           448         (4,194)              -      20,223
Net gain from fair value of financial    
liabilities                                    346         1,370             737              -       2,453
Income from associates                         292             -               -              -         292
Income from joint ventures                   4,678         2,880               -              -       7,558
Loss on disposal of subsidiaries                 -          (26)               -              -        (26)
Net finance costs                          (2,081)       (5,403)         (1,713)              -     (9,197)
Operating costs                              (735)         (853)           (342)              -     (1,930)
Net foreign exchange loss                     (25)         (321)               -              -       (346)
Other gains                                      -         1,046               -              -       1,046
Loss for the year from discontinued    
operations (see note 20)                         -             -               -        (2,712)     (2,712)
Taxation                                   (4,325)           156           (570)              -     (4,739)
Total profit/(loss) per reportable   
segment                                     33,708        13,925             562        (2,712)      45,483
As at 31 March 2018   
Investment properties                      221,354       166,400         147,755              -     535,509
Investment in associates                       303             -               -              -         303
Investment in joint ventures                14,617             -               -              -      14,617
Cash                                        12,074         4,460           5,853              -      22,387
Other                                       15,091         1,724           2,331              -      19,146
Assets classified as held for sale  
(see note 20)                               28,987        23,546               -         94,875     147,408
Total assets                               292,426       196,130         155,939         94,875     739,370
Borrowings - bank loans                    110,889        70,800          77,808              -     259,497
Other                                       13,289         5,676           5,238              -      24,203
Liabilities directly associated with  
assets classified as held for sale  
(see note 20)                               14,063             -               -         53,644      67,707
Total liabilities                          138,241        76,476          83,046         53,644     351,407
  
                                                                                  Discontinued
                                                Continuing operations                 operations
                                                          UK Non              UK
                                                       Multi-let       Multi-let
                                         Germany      Industrial      Industrial     Switzerland      Total
                                         GBP'000         GBP'000         GBP'000         GBP'000    GBP'000
For the year ended 31 March 2017 
Net rental income                         10,470          14,998               -               -     25,468
Fair value movement of investment
properties                                 4,928         (2,496)               -               -      2,431
Net gain from fair value of financial
liabilities                                  363             127               -               -        489
Loss from associates                     (9,838)               -               -               -    (9,838)
Income from joint ventures                 2,270             854               -               -      3,124
Net finance costs                        (2,349)         (3,655)               -               -    (6,004)
Operating costs                            (656)           (140)               -               -      (795)
Net foreign exchange gain                     54               -               -               -         54
Profit for the year from discontinued
operations (see note 20)                       -               -               -           2,814      2,814
Taxation                                 (1,319)           (812)               -               -    (2,131)
Total profit per reportable segment        3,923           8,876               -           2,814     15,612
As at 31 March 2017
Investment properties                    219,057         251,546               -               -    470,603
Investment in associates                  17,863               -               -               -     17,863
Investment in joint venture               10,283          21,115               -               -     31,398
Cash                                      11,693          12,280               -               -     23,973
Other                                     12,999           2,347               -               -     15,346
Assets classified as held for sale         2,541               -               -         132,832    135,373
Total assets                             274,436         287,288               -         132,832    694,556
Borrowings - bank loans                  122,898         106,153               -               -    229,051
Other                                     11,365          11,245               -               -     22,610
Liabilities directly associated with  
assets classified as held for sale  
(see note 20)                                  -               -               -          76,201     76,201
Total liabilities                        134,263         117,398               -          76,201    327,862

ii) Reconciliation of reportable segment profit or loss
                                                                                    31 March       31 March
                                                                                        2018           2017
                                                                                     GBP'000        GBP'000
Rental income                   
Net rental income for reported segments                                               32,861         25,468
Profit or loss                   
Fair value movement of investment properties                                          20,223          2,431
Net gain from fair value of financial liabilities                                      2,453            489
Gain/(loss) from associates                                                              292        (9,838)
Income from joint ventures                                                             7,558          3,124
Loss on disposal of subsidiaries                                                        (26)              -
Net finance costs                                                                    (9,197)        (6,004)
Operating costs                                                                      (1,930)          (795)
Net foreign exchange (loss)/gain                                                       (346)             54
Other gains                                                                            1,046              -
Profit for the year from discontinued operations (see note 20)                       (2,712)          2,814
Taxation                                                                             (4,739)        (2,131)
Total profit per reportable segments                                                  45,483         15,612
Other profit or loss - unallocated amounts                   
Management fee income                                                                  5,092          3,109
Income from joint ventures                                                                66            305
Net finance income                                                                     (290)              8
Tax, legal and professional fees                                                       (295)          (200)
Audit fees                                                                             (194)          (223)
Administration fees                                                                    (764)          (216)
Investment advisory fees                                                                (73)              -
Non-executive directors costs                                                          (405)          (133)
Staff remuneration costs                                                             (3,375)        (2,284)
Other operating costs                                                                (1,255)        (1,166)
Net foreign exchange (loss)/gain                                                       (145)            220
Other losses                                                                         (3,500)              -
Taxation                                                                               (110)          (122)
Consolidated profit before taxation                                                   40,235         14,910
                   

iii) Reconciliation of reportable segment financial position
                                                                                    31 March       31 March
                                                                                        2018           2017
                                                                                     GBP'000        GBP'000
ASSETS
Investment properties                                                                535,509        470,603
Investment in associates                                                                 303         17,863
Investment in joint venture                                                           14,617         31,398
Cash                                                                                  22,387         23,973
Other                                                                                 19,146         15,346
Assets classified as held for sale (see note 20)                                     147,408        135,373
Total assets per reportable segments                                                 739,370        694,556
Other assets - unallocated amounts
Investment in joint ventures                                                              43             37
Cash                                                                                   2,162          1,229
Other                                                                                  3,391            357
Total assets per consolidated statement of financial position                        744,965        696,179
LIABILITIES
Borrowings - bank loans                                                              259,497        229,051
Other                                                                                 24,203         22,610
Liabilities directly associated with assets classified as  
held for sale (see note 20)                                                           67,707         76,201
Total liabilities per reportable segments                                            351,407        327,862
Other liabilities - unallocated amounts 
Other                                                                                  3,289          1,716
Total liabilities per consolidated statement of financial position                   354,696        329,578


6. Net rental income
                                                                                    31 March       31 March
                                                                                        2018           2017
                                                                                     GBP'000        GBP'000
Rental income                                                                         40,293         34,863
Other income - tenant recharges                                                        7,413          6,558
Other income                                                                             806             98
Discontinued Operations Adjustment (note 20)                                         (6,163)        (7,491)
Rental Income                                                                         42,349         34,028
Direct property costs                                                               (11,262)       (10,499)
Discontinued Operations Adjustment (note 20)                                           1,774          1,939
Property expenses                                                                    (9,488)        (8,560)
Total net rental income                                                               32,861         25,468
  
7. Operating costs
                                                                                    31 March       31 March
                                                                                        2018           2017
                                                                                     GBP'000        GBP'000
Tax, legal and professional fees                                                       2,402            655
Audit fees                                                                               226            248
Interim review fees                                                                       30             31
Administration fees                                                                      553            338
Investment advisory fees                                                                 431            429
Non-executive directors costs                                                            405            133
Staff remuneration costs                                                               3,375          2,284
Other operating costs                                                                  1,466          1,341
Discontinued Operations Adjustment (note 20)                                           (598)          (440)
                                                                                       8,290          5,019

The increase in Tax, legal and professional fees is driven by the costs associated with the London listing (GBP488,000)
and the selling costs and fees associated with the share sale of Normanton Properties Ltd (Pilgrim Street) of GBP593,000.


8. Employees' and directors' emoluments
The Group had 20 employees at 31 March 2018 (2017: 11). The aggregate remuneration paid to employees during the
period, including that to executive directors, was:
                                                                                    31 March       31 March
                                                                                        2018           2017
                                                                                     GBP'000        GBP'000
Wages and salaries (including key management)                                          2,760          1,742
Social security costs                                                                    201            184
Pension costs                                                                            137             92
Share-based payments                                                                     277            266
                                                                                       3,375          2,284

As at 31 March 2018, the Group had six directors (2017: six). The directors of the Company during the financial year and
at the date of this report were as follows:
Non-executive directors                                                     Appointed Change in appointment
S Ball                                                                      2/10/2014    resigned 1/05/2018
M Yachad                                                                   10/12/2014   resigned 28/02/2018
P Miller                                                                   14/09/2016
W Lawlor                                                                    5/04/2017
R Grant                                                                     1/05/2018
P Holland (chairman)                                                        1/05/2018

Executive directors                                                         Appointed Change in appointment
P Arenson (CEO)                                                             2/10/2014
P Watson (CFO)                                                              2/10/2014
N Marais                                                                    2/10/2014    resigned 1/05/2018
J Carey                                                                     1/05/2018

Emoluments paid to executive and non-executive directors are summarised below:

                                                                                                             Total
                                                                                            Vested    remuneration
                                           Basic                      Other      Cash        share        31 March
                                          salary      Pension     benefits^     bonus      options            2018
                                         GBP'000      GBP'000       GBP'000   GBP'000      GBP'000         GBP'000
Executive directors
P Arenson                                    260           26             1       118           40             445
P Watson                                     250           25             -        95           32             402
N Marais                                     130           13             2        32           12             189
                                             640           64             3       245           84           1,036
 
                                                                                                              Total
                                                                                             Vested    remuneration
                                           Basic                       Other      Cash        share        31 March
                                          salary       Pension     benefits^     bonus      options            2017
                                         GBP'000       GBP'000       GBP'000   GBP'000      GBP'000         GBP'000
Executive directors
P Arenson                                    253            25             2       118          144             542
P Watson                                     202            20             -        95          115             432
N Marais                                     126            13             2        32           16             189
                                             581            58             4       245          275           1,163

^ Other benefits relates to the provision of private medical insurance.

                                                                                          31 March         31 March
                                                                                              2018             2017
                                                                                           GBP'000          GBP'000
Non-executive directors
S Ball-paid to Sphere Management Limited                                                        50               38
M Yachad-paid to Peregrine SA Holdings Proprietary Limited
(resigned 28 February 2018)                                                                     21               15
P Miller                                                                                        44               23
W Lawlor-paid to Ferryman Capital Partners (Pty) Limited (appointed 5 April 2017)               28                -
G Leissner (passed away 16 December 2016)                                                        -               21
M Fienberg (resigned 14 September 2016)                                                          -               18
J Keyes (resigned 23 November 2016)                                                              -               11
P Hughes (resigned 23 November 2016)                                                             -                7
Share-based payments                                                                           262                -
                                                                                               405              133

The above non-executive fees include all management, consulting, technical or other fees paid for such services
rendered, including payments to management companies.


The Group's share-based payments comprise the Deferred Share Bonus Plan ('STIP') and the Long-Term Incentive Plan
('LTIP') for executive directors and senior management respectively, and various share option schemes.

The Company measures the fair value of these options at grant date and accounts for the cost over the vesting
period in the income statement, with a corresponding increase to the share-based payment reserve. The cost is
based on the quantity of shares that are likely to vest taking into account expected performance against the relevant
performance targets, where applicable, and service periods. Share-based awards and the respective vesting dates are
further detailed in note 13.

On 6 June 2018, the board of directors, on the recommendation of the remuneration committee, approved the following:

                                                               Bonuses in respect of the year ended 31 March 2018
                                                                     Deferred       Number     LTIP for       Number
                                                            Cash  Share Bonus     of share    executive     of share
                                                           bonus         Plan      options    directors      options
Executive directors                                      GBP'000      GBP'000  (estimated)      GBP'000  (estimated)
P Arenson                                                    156          125      113,800          536      487,100
P Watson                                                     150          120      109,400          515      468,200
N Marais                                                      33           20       18,400           83       75,500
                                                             339          265      241,600        1,134    1,030,800

On 24 January 2018, the board of directors, on the recommendation of the remuneration committee, approved the
following:
                                                                                      Share incentives in respect of
                                                                                        the year ended 31 March 2017
                                                                                             LTIP for
                                                                                            executive
                                                                                            directors      Number of
Executive directors                                                                           GBP'000  share options
P Arenson                                                                                         520        484,623
P Watson                                                                                          500        465,804
                                                                                                1,020        950,427

On 7 June 2017, the board of directors, on the recommendation of the remuneration committee, approved the following:

                                         Bonuses in respect of the year ended
                                                      31 March 2017                             Share Purchase Plan^
                                                          Deferred
                                             Cash      Share Bonus         Number                             Number
                                            bonus             Plan       of share        Loans              of share
Executive directors                       GBP'000          GBP'000        options       GBP'000              options
P Arenson                                     118                -              -           916              881,897
P Watson                                       95                -              -           733              705,517
N Marais                                       32               12         11,024            84               80,855
                                              245               12         11,024         1,733            1,668,269
  
^ Loans advanced under the share purchase plan are interest-bearing at a rate equal to the average interest rate 
  incurred by the Group from time to time. Interest is payable six-monthly in arrears. Loans are repayable within 
  30 days of cessation of employment (unless the participant ceases employment in circumstances beyond his or her 
  control, in which case the loan is repayable within 12 months), and must in all circumstances be repaid in ten years.
  All dividends paid to such employees (or his or her nominee) by virtue of their shareholding must first be utilised 
  to discharge any interest outstanding in terms of the loan advanced in terms of the Share Purchase Plan.


Directors' Interests - Beneficial direct and indirect holdings in the Company
As at 31 March 2018:

                              Direct                         Indirect                      Number of
                           number of                        number of % of shares in             share
                              shares      % of shares          shares          issue    options held     % of shares
S Ball (Chairman)                  -                -         250,000           0.09               -               -
P Arenson (CEO)                    -                -      12,523,096           4.29         959,531            0.33
P Watson (CFO)                     -                -       4,364,027           1.50         887,722            0.30
N Marais                           -                -         280,600           0.10          12,632            0.00
W Lawlor                           -                -       1,154,100           0.40       2,000,000            0.69
P Miller                           -                -          21,898           0.01               -               -

The above Directors' interests have not changed from 31 March 2018 to the date of the signing of these financial
statements.
As at 31 March 2017:

                           Direct                         Indirect                         Number of
                        number of                        number of    % of shares in           share
                           shares      % of shares          shares             issue    options held     % of shares
S Ball (Chairman)               -                -         250,000              0.09               -               -
M Yachad                        -                -         150,000              0.06               -               -
P Miller                        -                -          21,898              0.01               -               -
P Arenson (CEO)                 -                -       9,955,994              3.47         474,908            0.17
P Watson (CFO)                  -                -       3,658,510              1.28         412,918            0.14
N Marais                        -                -         219,663              0.08          15,345            0.01
  
  
9. Finance costs  
                                                                                            31 March        31 March
                                                                                                2018            2017
                                                                                             GBP'000         GBP'000
Bank interest payable                                                                        (9,443)         (7,838)
Amortisation of facility costs                                                               (1,087)           (399)
Discontinued Operations Adjustment (note 20)                                                     687           1,996
Net finance costs                                                                            (9,843)         (6,241)

10. Taxation
(i) Tax recognised in statement of comprehensive income
                                                                                            31 March        31 March
                                                                                                2018            2017
                                                                                             GBP'000         GBP'000
Income tax in respect of current year                                                          1,354           1,227
Deferred tax (see note 30)                                                                     3,260           1,714
Discontinued Operations Adjustment (see note 20)                                                 235           (689)
Total tax expense                                                                              4,849           2,252
The Company converted to UK REIT status on 1 May 2018.
No tax was recognised on other comprehensive income during the period (2017: Nil).  
-  Germany 15.825%
-  United Kingdom 19%
-  Switzerland (depending on the district in which the property is situated). Average rate of 19.6%.

(ii) Reconciliation of tax charge for the year 
                                                                                            31 March       31 March
                                                                                                2018           2017
Continuing operations                                                                        GBP'000        GBP'000
Profit for the year before taxation                                                           47,796         14,348
Tax provided at applicable rate in Bermuda and Guernsey                                            -              -
Current tax charge in respect of other jurisdictions                                           (563)          (970)
Deferred tax charge in respect of other jurisdictions                                        (4,286)        (1,282)
Profit for the year after taxation                                                            42,947         12,096

                                                                                            31 March       31 March
                                                                                                2018           2017
For discontinued operations                                                                  GBP'000        GBP'000
(Loss)/profit for the year before taxation                                                   (2,947)          3,503
Tax provided at applicable rate in Bermuda and Guernsey                                            -              -
Tax charge in respect of other jurisdictions                                                     235          (689)
(Loss)/Profit for the year after taxation                                                    (2,712)          2,814

11. Dividends
                                                                                            31 March       31 March
                                                                                                2018           2017
                                                                                             GBP'000        GBP'000
Amounts recognised as distributions to equity holders in the period:
Final dividend for the prior year                                                             11,047         11,266
Interim dividend for the current year                                                         11,308         10,496
Total dividends                                                                               22,355         21,762

On 18 July 2017, the directors of the Company declared a final dividend of 3.95 pence per share in respect of the year
ended 31 March 2017 equating to GBP11,047,000 (2016: GBP11,266,000). This was paid in cash on 1 August 2017. An interim
dividend of 4.00 pence per share equating to GBP11,308,000 (2017: GBP10,496,000) was declared on 23 November 2017
and paid in cash on 26 January 2018.

The directors declared a final dividend on 6 June 2018, for the year ended 31 March 2018, of 4.00 pence per share,
which is detailed in note 35.


12. Share capital
Authorised
1,000,000,000 ordinary shares with a par value of EUR0.000001258 each
                                                                                            31 March       31 March
                                                                                                2018           2017
Issued share capital                                                                    (no. shares)   (no. shares)
Opening balance                                                                          286,681,880    282,984,626
Issue of new shares                                                                        5,036,596      3,697,254
Closing number of shares issued                                                          291,718,476    286,681,880


                                                                                             GBP'000        GBP'000
Authorised share capital
Share capital                                                                                      1              1
Share premium                                                                                317,781        312,371
Less: Acquisition/transaction costs                                                          (2,231)        (2,231)
Total share capital and share premium                                                        315,551        310,141

There were no changes made to the number of authorised shares of the Company during the period under review.
Stenprop Limited has one class of share; all shares rank equally and are fully paid.

The Company has 291,718,476 (March 2017: 286,681,880) ordinary shares in issue at the reporting date. On 8 June
2017, 1,752,359 and 13,737 new ordinary shares were issued on the JSE and the BSX at an issue price of EUR1.22 per share
in respect of the Share Purchase Plan and Deferred Share Bonus Plan respectively. On 7 July 2017, 3,270,500 new
ordinary shares were issued on the JSE and the BSX at an issue price of EUR1.22 per share in order to fund the acquisition
of C2 Capital Limited (refer to note 27). The total cost of issuing the 5,036,596 shares was GBP5,410,000.

As at 31 March 2018, the Company held 9,026,189 treasury shares (March 2017: 9,026,189).

13. Share-based payments
The Group operates share incentive plans which are used to attract and retain high-calibre employees to help grow the
business. All awards are considered by the remuneration committee and are subject to board approval.

The Group recognised a total share-based expense of GBP539,000 in the year (2017: GBP268,000) in relation to the
share option schemes. As at 31 March 2018, the Equity Reserve held GBP1,133,000 in relation to share-based payment
transactions (2017:GBP610,000).

The incentive plans are discussed in more detail below.

Deferred Share Bonus Plan
The Board may grant an award to an eligible employee following a recommendation from the remuneration committee
over such number of shares that have an aggregate value equal to the deferred bonus. Such share options vest in
three equal tranches; the first tranche vests on the date of grant with subsequent tranches vesting at the first and
second anniversaries of the relevant year end. Share options may be exercised until the tenth anniversary of the grant
date, after which time they will lapse.

The fair value of this nil-cost option is determined using the Black-Scholes model. The key inputs used in determining
the award granted on 7 June 2017 are shown below:

Share price at date of grant                                                                                 GBP1.08
Expected option life in years                                                                                      2
Risk free rate                                                                                                 1.50%
Standard Deviation (annualized)                                                                                  11%
Value per option                                                                                             GBP1.08

Movement in options granted in terms of this plan are detailed below:     
                                                                                             
                                                                                            Fair       Exercise dates
                                                                                           Value
                      At                                     Outstanding  Exercisable   at Grant
                 1 April               Dividend              at 31 March  at 31 March    date in
Date of grant       2017  Granted   equivalents   Exercised         2018         2018        GBP       From        To
10 June 2015     395,590        -        31,464     (4,780)      422,274      422,274    GBP1.08    10 June   10 June
                                                                                                       2015      2025
8 June 2016      269,031        -        12,888     (5,282)      276,637      276,637    GBP1.05     8 June    8 June
                                                                                                       2016      2026
7 June 2017            -   41,970           762     (3,675)       39,057       25,067    GBP1.08     7 June    7 June
                                                                                                       2017      2027
 
LTIP for senior management 
Such share options vest in three equal tranches; the first tranche vests  on the first anniversary of year end, with
subsequent tranches vesting at the second and third anniversaries of the  relevant year ends. Share options may be
exercised until the tenth anniversary of the grant date, after which time they will lapse.    
The fair value of this award is determined using the Black-Scholes model. The key inputs used in determining the
award granted 24 January 2018 are shown below:       

Share price at date of grant                                                                                  GBP1.13
Exercise price at grant date                                                                                  GBP1.07
Expected option life in years                                                                                      10
Risk free rate                                                                                                  1.50%
Expected volatility                                                                                            29.01%
Value per option                                                                                              GBP0.47

                                                                                     
                                                                                          Fair         Exercise dates
                      At                                    Outstanding  Exercisable     Value
                 1 April               Dividend             at 31 March  at 31 March  at Grant 
Date of grant       2017   Granted  equivalents  Exercised         2018         2018      date       From          To
24 January                                                                                       31 March  24 January
2018                   -   142,887            -          -      142,887       47,629   GBP0.47       2018        2028


LTIP for executive directors   
Such share options vest on the third anniversary of grant date subject to pre-determined vesting conditions being
met. All options not vesting on the vesting date will automatically lapse and once vested may not be exercised for two
years. The fair value of these nil-cost options is determined by external valuers using an intrinsic model. The key inputs
used in determining the award granted 24 January 2018 are shown below:

Share price                                                                                                    GBP1.07
Exercise price at grant date                                                                                   GBP0.00
Expected option life in years                                                                                      3 2
Discount applied for two year lock-in period                                                                       10%
Value per option                                                                                               GBP0.68

                                                                                  
                                                                                             Fair       Exercise dates
                     At                                        Outstanding  Exercisable     Value
                1 April                 Dividend               at 31 March  at 31 March  at Grant
Date of grant      2017     Granted  equivalents   Exercised          2018         2018      date        From       To
24 January                                                                                             8 June   8 June
2018                  -   1,416,231            -           -     1,416,231            -   GBP0.68       2022*     2027
  
* lock-in period of two years applies after vesting.         
 
Other share options   
On 30 March 2017, the Company agreed to grant to Ferryman Capital Partners Limited, a company in which Warren
Lawlor, a non-executive director, has a one-third beneficial interest, an option to subscribe for two million Stenprop
shares. The exercise price was GBP1.31 (EUR1.53), with a seven month vesting period. The full cost of this option was 
therefore recognised in the current year. The option lapses should the individual cease to be a director, or after five 
years, whichever is sooner. The option only has a dilutive effect when the average market price of ordinary shares exceeds
the exercise price of the options. The share price at year end was GBP1.07, which was below the exercise price. The
fair value of this award is determined using the Black-Scholes model. The key inputs used in determining the award
granted 30 March 2017 are shown below: 

Share price                                                                                                    GBP1.08
Exercise price at grant date                                                                                   GBP1.31
Expected option life in years                                                                                        5
Risk free rate                                                                                                   1.50%
Expected volatility                                                                                             31.31%
Expected dividend yield                                                                                             5%
Value per option                                                                                               GBP0.13

                                                                                  
                                                                                       Fair        Exercise dates
                             At                          Outstanding  Exercisable     Value
                        1 April                          at 31 March  at 31 March  at Grant
Date of grant              2017      Granted  Exercised         2018         2018      date         From           To
30 March 2017         2,000,000            -          -    2,000,000    2,000,000   GBP0.13  30 December     30 March
                                                                                                    2017         2022
 
Share Purchase Plan        
Loans advanced under the share purchase plan are interest-bearing at a rate equal to the average interest rate
incurred by the Group from time to time. Interest is payable six monthly in arrears. Loans are repayable within
30 days of cessation of employment (unless the participant ceases employment in circumstances beyond his
or her control, in which case the loan is repayable within 12 months), and must in all circumstances be repaid in
10 years. All dividends received by such employees (or his or her nominee) by virtue of their shareholding must
first be utilised to discharge any interest outstanding in terms of the loan advanced in terms of the Share Purchase
Plan. The loans have full recourse to the participants who must charge their shares by way of security for the loans.

The table below summarises the position at year end in terms of loans advanced and the number of shares to which
they relate. Loans relating to the Share Purchase Plan issued to executive directors are disclosed in more detail in
note 8.
                                                                                              31 March         31 March
                                                                                                  2018             2017
Brought forward at start of year                                   (number of shares)        8,656,219        5,209,109
Share Purchase Plan shares issued in year                          (number of shares)        1,752,358        3,687,191
Share Purchase Plan shares redeemed                                (number of shares)        (197,432)        (240,081)
Carried forward at end of year                                     (number of shares)       10,211,145        8,656,219

Stock price at advancement                                                      (EUR)             1.24             1.41

Share Purchase Plan loans advanced (including
accrued interest)                                                           (GBP'000)           12,536           10,590

Other share purchase loan
On 30 March 2017, a EUR1.22 million loan was advanced from Stenprop Germany Limited to Ferryman Capital Partners
Limited, a company in which Warren Lawlor, a non-executive director, has a one-third beneficial interest, to purchase
one million Stenprop shares in the market. The loan advanced is interest-bearing at a rate equal to the average interest
rate incurred by the Group from time to time. Interest is payable six monthly in arrear. The loan has full recourse to the
participant who must charge their shares by way of security for the loans.   
                                                                                              31 March         31 March
                                                                                                  2018             2017
Brought forward at start of year                                   (number of shares)        1,000,000                -
Shares issued in year                                              (number of shares)                -        1,000,000
Shares redeemed                                                    (number of shares)                -                -
Carried forward at end of year                                     (number of shares)        1,000,000        1,000,000

Stock price at advancement                                                      (EUR)                -             1.22
Loan advanced (including accrued interest)                                  (GBP'000)            1,081            1,044

14. Earnings per ordinary share
                                                                                              31 March         31 March
                                                                                                  2018             2017
                                                                                               GBP'000          GBP'000
Reconciliation of profit for the period to adjusted EPRA(1) earnings
Earnings per IFRS income statement attributable to shareholders                                 39,357           14,687
Adjustment to exclude profit/(loss) from discontinued operations                                 2,712          (2,814)
Earnings per IFRS income statement from continuing operations attributable to
shareholders                                                                                    42,069           11,873
Earnings per IFRS income statement attributable to shareholders                                 39,357           14,687
Adjustments to calculate EPRA earnings, exclude:
Changes in fair value of investment properties                                                (14,305)          (1,573)
Changes in fair value of financial instruments                                                 (2,453)          (1,734)
Deferred tax in respect of EPRA adjustments                                                      3,728            3,084
Goodwill impairment                                                                              3,500                -
Profit on disposal of properties                                                                 (507)                -
Cost associated with disposal of property company                                                 679                 -
Adjustments above in respect of joint ventures and associates
Changes in fair value                                                                          (5,802)           10,908
Deferred tax in respect of EPRA adjustments                                                        800            (638)
EPRA earnings attributable to shareholders                                                      24,997           24,734
Further adjustments to arrive at adjusted EPRA earnings
Straight-line unwind of purchased swaps                                                            239              767
Cost associated with group listing and REIT conversion                                             528                -
Adjusted EPRA earnings attributable to shareholders                                             25,764           25,502
Weighted average number of shares in issue (excluding treasury shares)                     281,494,114      282,644,639
Share-based payment award                                                                    1,796,978          956,185
Diluted weighted average number of shares in issue                                         283,291,092      283,600,824
Earnings per share from continuing operations                                                    pence            pence
IFRS EPS                                                                                         14.94             4.20
Diluted IFRS EPS                                                                                 14.85             4.19
Earnings per share                                                                              pence             pence
IFRS EPS                                                                                         13.98             5.20
Diluted IFRS EPS                                                                                 13.89             5.18
EPRA EPS                                                                                          8.88             8.75
Diluted EPRA EPS                                                                                  8.82             8.72
Adjusted EPRA EPS                                                                                 9.15             9.02
Diluted adjusted EPRA EPS                                                                         9.09             8.99

(1) The European Public Real Estate Association (EPRA) issued Best Practices Policy Recommendations in November
    2016, which provide guidelines for performance measures relevant to real estate companies. Their recommended
    reporting standards are widely applied across this market, aiming to bring consistency and transparency to the sector.
    The EPRA earnings measure is intended to show the level of recurring earnings from core operational activities with the
    purpose of highlighting the Group's underlying operating results from its property rental business and an indication of
    the extent to which current dividend payments are supported by earnings. The measure excludes unrealised changes
    in the value of investment properties, gains or losses on the disposal of properties and other items that do not provide
    an accurate picture of the Group's underlying operational performance. The measure is considered to accurately
    capture the long-term strategy of the Group, and is an indication of the sustainability of dividend payments. 


As at 31 March 2018, the Company held 9,026,189 treasury shares (March 2017: 9,026,189).   

Straight-line unwind of purchased swaps
A further adjustment was made to the EPRA earnings attributable to shareholders relating to the straight-line unwind
of the value as at 1 April 2014 of the swap contracts in the property companies acquired. When the property companies
were acquired by Stenprop with effect from 1 April 2014, it also acquired the bank loans and swap contracts which
were in place within these property companies. As a result, Stenprop took over loans with higher swap interest rates
than would have been the case had new loans and swaps been put in place at 1 April 2014. To compensate for this,
the value of the swap break costs was calculated at 1 April 2014 and the purchase consideration for the property
companies was reduced accordingly to reflect this liability.

Costs associated with Group Listing and REIT conversion
A further adjustment was made to the EPRA earnings attributable to shareholders relating to the costs associated
with converting to REIT status and the planned listing on the Special Funds Segment of the London Stock Exchange.
Both costs are specifc to non-recurring activities and are not relevant to the underlying net income performance of
the Group.  

Reconciliation of profit for the period to headline earnings  
                                                                                         31 March    31 March
                                                                                             2018        2017
                                                                                          GBP'000     GBP'000
Earnings per IFRS income statement from continuing operations                        
attributable to shareholders                                                               39,357      14,687
Adjustments to calculate headline earnings, exclude:                       
Changes in fair value of investment properties                                           (14,305)     (1,573)
Deferred tax in respect of headline earnings adjustments                                    3,675       2,834
Goodwill impairment                                                                         3,500           -
Cost associated with disposal of property company                                             679           -
Adjustments above in respect of joint ventures and associates                       
Changes in fair value of investment properties                                            (4,857)      13,655
Deferred tax                                                                                  757       (696)
Headline earnings attributable to shareholders                                             28,806      28,906
Earnings per share                                                                          pence       pence
Headline EPS                                                                                10.23       10.23
Diluted headline EPS                                                                        10.17       10.19

15. Net asset value per ordinary share
                                                                  31 March        *31 March         *31 March
                                                                      2018             2017              2016
                                                                   GBP'000          GBP'000           GBP'000
Net assets attributable to equity shareholders                     387,331          364,550           359,986
Adjustments to arrive at EPRA net asset value:
Derivative financial instruments                                      (13)            2,972             5,885
Deferred tax                                                        13,276           10,138            11,192
Adjustments above in respect of non-controlling interests            1,641            1,573             2,243
EPRA net assets attributable to shareholders                       402,235          379,233           379,306
Number of shares in issue (excluding treasury shares)          282,692,287      277,655,691       282,984,626
Share-based payment award                                        1,796,978          956,185           647,806
Diluted number of shares in issue                              284,489,265      278,611,876       283,632,432

Net asset value per share (basic and diluted)                          GBP              GBP               GBP
IFRS net asset value per share                                        1.37             1.31              1.27
Diluted IFRS net asset value per share                                1.36             1.31              1.27
EPRA net asset value per share                                        1.42             1.37              1.34
Diluted EPRA net asset value per share                                1.41             1.36              1.34

*The comparatives have been restated to reflect the change in presentational currency. See note 1.

As at 31 March 2018, the Company held 9,026,189 treasury shares (March 2017: 9,026,189).

16. Investment property
The fair value of the consolidated investment properties at 31 March 2018 was GBP535,508,774 (31 March 2017:
GBP470,603,000). This excludes an amount of GBP121,763,592 (31 March 2017: GBP133,645,000) for properties which have
been classified classified as Held for Sale, including the entire Swiss portfolio, the German Aldi Properties and the UK
joint venture, Stenprop Argyll Limited. The carrying amount of investment property is the fair value of the property
as determined by registered independent appraisers having an appropriate recognised professional qualification and
recent experience in the location and category of the property being valued ('valuers').

The fair value of each of the properties for the period ended 31 March 2018 was assessed by the valuers in accordance
with the Royal Institution of Chartered Surveyors ('RICS') standards and IFRS 13. Valuers are qualified for purposes of
providing valuations in accordance with the 'Appraisal and Valuation Manual' published by RICS.

The valuations performed by the independent valuers are reviewed internally by senior management. This includes
discussions of the assumptions used by the external valuers, as well as a review of the resulting valuations.

Discussions of the valuations process and results are held between the senior management and the external valuers
on a bi-annual basis. The audit committee reviews the valuation results and, provided the committee is satisfied with
the results, recommends them to the board for approval.

The valuation techniques used are consistent with IFRS 13 and use significant 'unobservable' inputs. Investment
properties are all at level 3 in the fair value hierarchy and valuations represent the highest and best use of the properties.
There have been no changes in valuation techniques since the prior year.

There are interrelationships between all these unobservable inputs as they are determined by market conditions. An
increase in more than one unobservable input would magnify the impact on the valuation. The impact on the valuation
would be mitigated by the interrelationship of two unobservable inputs moving in opposite directions e.g. an increase
in rent may be offset by an increase in yield, resulting in no net impact on the valuation. Expected vacancy rates
may impact the yield with higher vacancy rates resulting in higher yield. All revenue is derived from the underlying
tenancies given on the investment properties.

All investment properties are mortgaged, details of which can be seen in note 24. As at the date of signing this report,
there are no restrictions on the realisability of any of the underlying investment properties, nor on the remittance of
income and disposal proceeds.

The key unobservable inputs used in the valuation of the Group's investment properties at 31 March 2018 are detailed
in the table below:

Combined
Portfolio            Portfolio        Market                                      Net initial
(including                  by         value                          Annualised        yield                   Market
share of jointly        market      31 March                        gross rental    (Weighted    Voids by   rent range
controlled               value          2018  Properties      Area        income     average)        area    per month
entities)                  (%) (GBP million)    (number)    (sq m) (GBP million)          (%)         (%)   (GBP/sq m)
UK non multi-let  
Industrial                22.7         166.4          10    50,280          10.9         5.76         1.6     3.0-60.6
UK multi-let   
Industrial                20.1         147.8          30   215,299          10.4         6.50        15.3      3.6-9.0
Germany                   30.2         221.3           9    72,674          10.4         4.16         7.8     4.4-66.0
Assets Held for   
Sale                      16.6         121.8          22    54,455           7.8         4.90         3.0     5.0-26.2
                          89.6         657.3          71   392,708          39.5         5.23        10.5            -
Share of joint  
ventures and  
associates                 4.7          34.6           4    19,330           2.4         5.95         0.0     7.0-14.1
Share of joint  
ventures and  
associates Held for  
Sale                       5.7          41.7           1     3,067           2.1         4.61         0.0    20.2-67.3
Total                    100.0         733.6          76   415,105          44.0         5.23         9.9            -

                                                                                          31 March            31 March
                                                                                              2018                2017
                                                                                           GBP'000             GBP'000
Opening balance                                                                            470,603             576,757
Properties acquired                                                                        149,831                   -
Capitalised expenditure                                                                      5,549               1,643
Disposals through the sale of property                                                    (34,946)             (5,346)
Disposals through the sale of subsidiary (see note 29)                                    (79,900)                   -
Foreign exchange movement in foreign operations                                            (1,814)              29,621
Net fair value gain on investment property - continuing operations                          20,223               2,431
Net fair value loss on investment property - discontinued operations (note 20)             (5,918)               (858)
Assets Held for Sale (note 20)                                                              11,881           (133,645)
Closing balance                                                                            535,509             470,603


                                                                                          31 March            31 March
                                                                                              2018                2017
                                                                                           GBP'000             GBP'000
Acquisitions
UK
Stenprop Industrials 1   2 Limited         25 properties                                   127,000                   -
Stenprop Industrials 3 Limited              4 properties                                    16,715                   -
Stenprop Industrials 4 Limited              1 property                                       6,116                   -
Total                                                                                      149,831                   -

Disposals
Germany
Hermann (Burger King)                                                                      (2,931)                   -
Swiss
Kantone (Granges-Paccot)                                                                  (15,414)                   -
David (Cham)                                                                              (10,711)                   -
Clint (Interlaken)                                                                               -             (5,346)
UK
GGP1 - Uxbridge                                                                            (3,000)                   -
GGP1 - Worthing                                                                            (2,890)                   -
Disposals through the sale of property                                                    (34,946)                   -
Normanton - Pilgrim Street                                                                (79,900)                   -
Disposals through the sale of subsidiary                                                  (79,900)                   -
Total                                                                                    (114,846)             (5,346)

Gain on disposal of property
                                                                                               Foreign
                                          Sales      Disposal     Net Sales     Carrying      exchange     Gain/(loss)
                                       proceeds         costs      proceeds        value      movement     on disposal
                                        GBP'000       GBP'000       GBP'000      GBP'000       GBP'000         GBP'000
Continuing Operations
Dolphin Bridge House,
Uxbridge, UK                              3,400          (64)         3,336      (3,000)             -             336
Wicker House & Studios,
Worthing, UK                              3,650          (50)         3,600      (2,890)             -             710
                                          7,050         (114)         6,936      (5,890)             -           1,046
Discontinued Operations
Granges-Paccot, Switzerland              15,953         (581)        15,372     (15,414)           (3)            (45)
Cham, Switzerland                        10,783         (167)        10,616     (10,711)           (1)            (96)
Burger King, Germany                      2,931             -         2,931      (2,931)             -               -
                                         29,667         (748)        28,919     (29,056)           (4)           (141)

17. Subsidiaries, associates and joint ventures
The Group consists of a parent company, Stenprop Limited, incorporated in Guernsey (formerly Bermuda) and a
number of subsidiaries, associates and joint ventures held directly and indirectly by Stenprop Limited which operate
and are incorporated around the world.

Details of the Group's subsidiaries as at 31 March 2018 are as follows:

                                             Place of                               % equity owned by
Name                                         incorporation   Principal activity      Company   Subsidiary
BVI     
Davemount Properties Limited                 BVI             Property Investment                   100.00
Laxton Properties Limited                    BVI             Property Investment                   100.00
Loveridge Properties Limited                 BVI             Dormant                               100.00
Ruby Red Holdings Limited                    BVI             Management                            100.00
SP Corporate Services Limited                BVI             Management                            100.00
SP Nominees Limited                          BVI             Management                            100.00
SP Secretaries Limited                       BVI             Management                            100.00
Stenprop Management Holdings Limited         BVI             Holding Company         100.00
Stenprop (UK) Limited                        BVI             Holding Company         100.00
Leatherback Property Holdings Limited        BVI             Holding Company                       100.00
Stenprop Hermann Limited                     BVI             Property Investment                   100.00
Stenprop Victoria Limited                    BVI             Property Investment                   100.00
Stenprop Industrials 1 Limited               BVI             Holding Company                       100.00
Stenprop Industrials 2 Limited               BVI             Holding Company                       100.00
Stenprop Industrials 3 Limited               BVI             Property Investment                   100.00
Stenprop Industrials 4 Limited               BVI             Property Investment                   100.00
     
Curacao     
Anarosa Holdings N.V.                        Curacao         Holding Company                        94.90
C.S. Property Holding N.V.                   Curacao         Holding Company                        94.90
Lakewood International N.V.                  Curacao         Holding Company                        89.00
T.B. Property Holdings N.V.                  Curacao         Holding Company                       100.00
     
Guernsey     
APF1 Limited (in liquidation)                Guernsey        Dormant                 100.00
Bernina Property Holdings Limited            Guernsey        Holding Company                       100.00
GGP1 Limited                                 Guernsey        Property Investment     100.00
Kantone Holdings Limited                     Guernsey        Property Investment                   100.00
KG Bleichenhof Grundtuscksverwaaltung     
GmbH & Co. KG                                Germany         Property Investment                    94.90
LPE Limited                                  Guernsey        Property Investment                   100.00
Stenprop Advisers Limited                    Guernsey        Management                            100.00
Stenprop (Germany) Limited                   Guernsey        Holding Company         100.00
Stenprop (Swiss) Limited                     Guernsey        Holding Company         100.00
Stenprop Trafalgar Limited                   Guernsey        Holding Company                       100.00
Stenprop Arsenal Limited                     Guernsey        Dormant                               100.00

                                             Place of                            % equity owned by
Name                                         incorporation Principal activity   Company        Subsidiary
Stenprop (Guernsey) Limited                  Guernsey      Dormant                                 100.00

Jersey
Industrials Investment Unit Trust            Jersey          Holding Company                       100.00

Luxembourg
Algy Properties S.a.r.l.                     Luxembourg      Property Investment                   100.00
Bruce Properties S.a.r.l.                    Luxembourg      Property Investment                   100.00
Clint Properties S.a.r.l.                    Luxembourg      Property Investment                   100.00
David Properties S.a.r.l.                    Luxembourg      Property Investment                   100.00
Jimmy Investments S.a.r.l.                   Luxembourg      Holding Company                       100.00
Spike Investments S.A.                       Luxembourg      Holding Company                       100.00

Netherlands
Century 2 BV                                 Netherlands     Property Investment                    94.90
Century BV                                   Netherlands     Property Investment                    94.90
Isabel Properties BV                         Netherlands     Property Investment                    94.90
Mindel Properties BV                         Netherlands     Holding Company                        94.50

Isle of Man
Stenham Beryl Limited                        IoM             Property Investment                   100.00
Stenham Crystal Limited                      IoM             Property Investment                   100.00
Stenham Jasper Limited                       IoM             Property Investment                   100.00
Gemstone Properties Limited (formerly
Stenham Properties (Germany) Limited)        IoM             Holding Company                       100.00

Switzerland
Polo Property GmbH                           Switzerland     Property Investment                   100.00

United Kingdom
Stenprop Management Limited                  England         Management                            100.00
C2 Capital Limited                           England         Management                            100.00
Stenprop Limited                             England         Dormant                               100.00

United States
Industrials UK GP LLC                        United States   Holding Company                       100.00
Industrials UK LP                            United States   Property Investment                   100.00
Details of the Group's investments in associates and joint ventures are disclosed in note 18 and note 19 respectively.

18. Investment in associates
Details of the Group's associates at the end of the reporting period are as follows:

                                                                 Place of                Principal     % equity owned
Name                                                        incorporation                 activity      by subsidiary
Stenham European Shopping Centre Fund Limited ('SESCF')          Guernsey                     Fund             28.42*
  
* 28.16% of the investment in the underlying property was held through SESCF, and 0.26% of the property investment 
  was held via a wholly-owned subsidiary, Leatherback Property Holdings Limited, a company incorporated in the British 
  Virgin Islands.     
    

During the period, both SESCF and Leatherback Property Holdings Limited disposed of their investment in the
underlying property.

During the period the Group sold its investment in Stenham Berlin Residential Fund Limited in which it had held a
5.24% holding at 31 March 2017.

Associates are accounted for using the equity method in these consolidated financial statements as set out in the
Group's accounting policies.

Summarised financial information in respect of each of the Group's associates is set out below:

                                                                      Stenham             Stenham
                                                                     European              Berlin
                                                                     Shopping         Residential
                                                                       Centre                Fund
                                                                 Fund Limited             Limited              Total
                                                                      GBP'000             GBP'000            GBP'000
31 March 2018
Non-current assets                                                          -                   -                  -
Assets Held for Sale                                                        -                   -                  -
Current assets                                                          1,298                   -              1,298
Non-current liabilities                                                     -                   -                  -
Current liabilities                                                     (523)                   -              (523)
Equity attributable to owners of the Company                              775                   -                775
Revenue                                                                 3,415              21,351             24,766
Profit from continuing operations and total
comprehensive income                                                      786               1,568              2,354
31 March 2017
Non-current assets                                                        141                   -                141
Assets Held for Sale                                                  177,637              16,865            194,502
Current assets                                                          6,725              19,317             26,042
Non-current liabilities                                                     -                   -                  -
Current liabilities                                                 (128,328)               (498)          (128,826)
Equity attributable to owners of the Company                           56,175              35,684             91,859
Revenue                                                                15,984              50,230             66,214
(Loss)/Profit from continuing operations and total
comprehensive income                                                 (42,506)              19,598           (22,908)

18. Investment in associates
Reconciliation of the above summarised financial information to the carrying amount of the interest in the associates
recognised in the financial statements:
 
                                                                   Stenham               Stenham
                                                                  European                Berlin
                                                                  Shopping           Residential
                                                                    Centre                  Fund
                                                              Fund Limited               Limited                Total
                                                                   GBP'000               GBP'000              GBP'000
31 March 2018
Opening balance as at 1 April 2017                                  15,994                 1,869               17,863
Share of associates' profit *                                          221                    71                  292
Share in associates disposed of during the period                 (16,353)               (1,992)             (18,345)
Distribution received from associates                                    -                     -                    -
Foreign exchange movement in foreign operations                        441                    52                  493
Closing balance                                                        303                     -                  303
31 March 2017
Opening balance as at 1 April 2016                                  26,095                 4,962               31,057
Share of associates' (loss)/profit *                              (12,041)                 2,203              (9,838)
Associate balance sheet adjustment                                      16                     -                   16
Share in associates disposed of during the year                          -               (5,745)              (5,745)
Distribution received from associates                                  (6)                     -                  (6)
Foreign exchange movement in foreign operations                      1,930                   449                2,379
Closing balance                                                     15,994                 1,869               17,863
  
* The share of associates' profit includes the fair value movement in the underlying investments for the period. 
  This is covered in the subsequent paragraphs.

Stenham European Shopping Centre Fund Limited ('SESCF')
SESCF, in which the Group has a 28.42% interest, completed the sale of its investment in the Nova Eventis Shopping
Centre on 22 June 2017. The sale price of the property was EUR208.5 million less selling costs (equivalent to the value
at 31 March 2017) and any fair value movement in the underlying investment is reflective of the movement in the net
asset value of SESCF and the property company which was sold. There are no restrictive conditions on the distribution
of the remaining balance due subsequent to release of the final amount in escrow.   

Stenham Berlin Residential Fund Limited ('SBRF')
At 31 March 2017, SBRF's sole investment was its remaining holding of 623,868 shares in ADO Properties Limited. All
of these shares were sold by 31 May 2017 and monies subsequently distributed to the SBRF shareholders by way of
a share buyback in June 2017. SBRF's share price at 31 March 2017 was EUR1.85. This had risen to EUR1.92 at the date of
share buyback in June 2017. Stenprop Germany Limited disposed of its entire shareholding of 1,180,251 shares at EUR1.92
per share realising EUR2,268,002. This represented a gain of EUR82,687 for the year to 31 March 2018. The 'rounded' GBP
equivalent thereof, as shown above, is GBP71k.

19. Investment in joint ventures
Details of the Group's joint ventures at the end of the reporting period are as follows:
                                                                                                      % equity
                                                           Place of                                   owned by
Name                                                  incorporation          Principal activity     subsidiary
Luxembourg
Elysion S.A.                                             Luxembourg             Holding company          50.00
Elysion Braunschweig S.a.r.l                             Luxembourg            Property company          50.00
Elysion Dessau S.a.r.l                                   Luxembourg            Property company          50.00
Elysion Kappeln S.a.r.l                                  Luxembourg            Property company          50.00
Elysion Winzlar S.a.r.l                                  Luxembourg            Property company          50.00

Guernsey
Stenpark Management Limited                                Guernsey          Management company          50.00

BVI
Stenprop Argyll Limited                                         BVI             Holding company          50.00
Regent Arcade House Holdings Limited                            BVI            Property company          50.00

Republic of Ireland
Ardale Industrials Limited                      Republic of Ireland          Management company          50.00
Summarised consolidated financial information in respect of the Group's joint ventures is set out below. Where
applicable, these represent the consolidated results of the respective holding companies.

                                                          Stenpark                       Ardale
                                           Elysion      Management       Stenprop   Industrials
                                              S.A.         Limited Argyll Limited       Limited        Total
                                           GBP'000         GBP'000        GBP'000       GBP'000      GBP'000
31 March 2018
Investment property                         34,878               -         83,400             -      118,278
Current assets                                 607             151          5,751            18        6,527
Assets                                      35,485             151         89,151            18      124,805
Bank loans                                (19,454)               -       (37,373)             -     (56,827)
Shareholder loan                          (13,463)               -              -             -     (13,463)
Deferred tax                               (1,104)               -              -             -      (1,104)
Financial liability                          (137)               -          (453)             -        (590)
Current liabilities                          (172)            (82)        (4,235)           (1)      (4,490)
Liabilities                               (34,330)            (82)       (42,061)           (1)     (76,474)
Net assets of joint ventures                 1,155              69         47,090            17       48,331
Net assets of joint ventures
excluding shareholder loans                 14,618              69         47,090            17       61,777
Group share of net assets                   14,618              34         23,545             8       38,205
Net assets directly associated with
assets classified as held for sale
adjustment (see note 20)                         -               -       (23,545)             -     (23,545)
Group share of joint ventures' net
assets                                      14,618              34              -             8       14,660
Revenue                                      2,450             381          4,794            35        7,660
Interest payable                           (1,795)               -        (1,115)             -      (2,910)
Tax expense                                  (713)               -              -             -        (713)
Profit from continuing operations
and total comprehensive income
excluding interest due to Group              4,678             101          5,760            30       10,569
Share of joint ventures' profit due to 
the Group                                    4,678              51          2,880            15        7,624

                                                          Stenpark                       Ardale
                                           Elysion      Management       Stenprop   Industrials
                                              S.A.         Limited Argyll Limited       Limited        Total
                                           GBP'000         GBP'000        GBP'000       GBP'000      GBP'000
31 March 2017
Investment property                         30,385               -         80,997             -      111,382
Current assets                                 450             258          3,826             -        4,534
Assets                                      30,835             258         84,823             -      115,916
Bank loans                                (19,393)               -       (37,313)             -     (56,706)
Shareholder loan                          (12,435)               -              -             -     (12,435)
Deferred tax                                 (453)               -              -             -        (453)
Financial liability                          (502)               -        (1,236)             -      (1,738)
Current liabilities                          (202)           (186)        (4,046)             -      (4,434)
Liabilities                               (32,985)           (186)       (42,595)             -     (75,766)
Net (liabilities)/assets of joint
ventures                                   (2,150)              72         42,228             -       40,150
Net assets of joint ventures
excluding shareholder loans                 10,285              72         42,228             -       52,585
Group share of net assets                   10,285              36         21,114             -       31,435
Revenue                                      2,313             822          4,509             -        7,644
Interest payable                           (1,676)               -        (1,114)             -      (2,790)
Tax expense                                  (327)               -              -             -        (327)
Profit from continuing operations
and total comprehensive income
excluding interest due to Group              2,270             611          1,708             -        4,589
Share of joint ventures profit due to      
the Group                                    2,270             306            854             -        3,430


Elysion S.A.
Stenprop owns 100% of the shares and shareholder loans in Bernina Property Holdings Limited (Bernina). Bernina in
turn owns 50% of the issued share capital and 100% of the shareholder loans of Elysion S.A., a company incorporated
in Luxembourg which is the beneficial owner of the Care Home portfolio. The remaining 50% of Elysion S.A. is owned
by a joint venture partner who manages the portfolio.

The acquired shareholder loans have attracted, and continue to attract, a 10% compounded interest rate since inception
in 2007. The outstanding shareholder loan, which is wholly-owned by Stenprop, has been valued at the recoverable
balance which is deemed equal to the net assets of the joint venture excluding the shareholder loan.

Reconciliation of the above summarised financial information to the carrying amount of the interest recognised in the
consolidated financial statements:
               
                                                                  Stenpark                        Ardale
                                                      Elysion   Management        Stenprop   Industrials
                                                         S.A.      Limited  Argyll Limited       Limited        Total
                                                      GBP'000      GBP'000         GBP'000       GBP'000      GBP'000
31 March 2018               
Opening balance                                        10,283           37          21,115             -       31,435
Share in associates acquired during               
the period                                                  -            -               -           (1)          (1)
Share of joint venture profit                           4,678           51           2,880            15        7,624
Distribution received from joint               
venture                                                 (613)         (54)           (450)           (6)      (1,123)
Foreign exchange movement in               
foreign operations                                        270            -               -             -          270
Transfer to Assets Held for Sale               
(note 20)                                                   -            -        (23,545)             -     (23,545)
Closing balance                                        14,618           34               -             8       14,660
               
31 March 2017                 
Opening balance                                         8,163           32          21,536             -       29,731
Share of joint venture profit                           2,270          306             854             -        3,430
Distribution received from joint               
venture                                                 (864)        (301)         (1,275)             -      (2,440)
Foreign exchange movement in               
foreign operations                                        714            -               -             -          714
Closing balance                                        10,283           37          21,115             -       31,435

20. Assets held for sale and discontinued operations
Management consider 23 properties (the entire Swiss portfolio, the Aldi portfolio and the joint venture interest in
Argyll Street, London) to meet the conditions relating to Assets Held for Sale, as per IFRS 5: Non-current Assets Held
for Sale. The properties are expected to be disposed of during the next 12 months. As part of the Swiss portfolio,
the property at Lugano, which is valued at year end at CHF20.9 million (GBP15.7 million) is classified as held for sale.
Although the sale may not complete within 12 months, Stenprop is committed to the disposal of the asset in line with
its strategy to exit the Swiss market. Accordingly, Stenprop has disclosed the asset as Held For Sale. The fair values of
all assets Held for Sale have been determined by a third party valuer, Jones Lang LaSalle.

The fair value of these properties, and their comparatives are shown in the table below:

                                                                                             31 March       31 March
                                                                                                 2018           2017
                                                                                              GBP'000        GBP'000
Investment properties                                                                         121,764        133,646
Investment in joint ventures                                                                   23,545              -
Cash and cash equivalents                                                                         738            625
Trade and other receivables                                                                     1,361          1,102
Total assets classified as held for sale                                                      147,408        135,373
Bank loans                                                                                     62,225         70,783
Derivative financial instruments                                                                   14              -
Deferred tax                                                                                    3,897          4,344
Accounts payable and accruals                                                                   1,571          1,074
Liabilities directly associated with assets classified as held for sale                        67,707         76,201

Nine properties (the entire Swiss portfolio) have been recognised as discontinued operations in accordance 
with IFRS 5.32.

The results of the discontinued operations were as follows:
                                                                                            31 March        31 March
                                                                                                2018            2017
                                                                                             GBP'000         GBP'000
Net rental income                                                                              4,389           5,552
- Rental income                                                                                6,163           7,491
- Property expenses                                                                          (1,774)         (1,939)
Operating costs                                                                                (598)           (440)
Net operating income                                                                           3,791           5,112
Fair value movement of investment properties                                                 (5,918)           (858)
(Loss)/Profit from operations                                                                (2,127)           4,254
Loss on disposal of property                                                                   (141)               -
Net gain from fair value of derivative financial instruments                                       -           1,245
Net finance costs                                                                              (687)         (1,996)
Net foreign exchange gains                                                                         8               -
(Loss)/Profit for the year before taxation                                                   (2,947)           3,503
Taxation                                                                                         235           (689)
(Loss)/Profit for the year from discontinued operations                                      (2,712)           2,814

Disposals
On 1 July 2017, the Group disposed of the Kantone Holdings Limited properties known as Grange Paccot 1 and Grange
Paccot 2, Switzerland, for CHF20 million (equating to CHF19.9 million after disposal costs). At disposal, there was a
loss of CHF0.1 million to the Group equating to the disposal costs, as the property was already held at a fair value
equivalent to the sale price.

On 30 October 2017, the Group disposed of the property known as Cham which was the sole property owned by
David Properties S.a.r.l for CHF14.2million (equating to CHF14.1 million after disposal costs). At disposal, there was a
loss of CHF0.1 million to the Group equating to the disposal costs, as the property was already held at a fair value
equivalent to the sale price.

21. Trade and other receivables
                                                                                              31 March        31 March
                                                                                                  2018            2017
Non-current receivables                                                                        GBP'000         GBP'000
Other debtors                                                                                   13,617          11,634
                                                                                                13,617          11,634

Non-current other debtors includes GBP12.52 million (2017: GBP10.59 million) of loans advanced under the Share Purchase
Plan (see note 13; share-based payments) and a GBP1.1 million (2017: GBP1.04 million) loan advanced on 30 March 2017 used
to purchase one million Stenprop shares in the market by Ferryman Capital Partners Limited, a company in which
Warren Lawlor, a non-executive director, has a one-third beneficial interest.
                                                                                              31 March        31 March
                                                                                                  2018            2017
Current receivables                                                                            GBP'000         GBP'000
Accounts receivable*                                                                             7,089           4,149
Other debtors                                                                                    1,755             507
Prepayments                                                                                        725             515
Transfer to assets held for sale (see note 20)                                                 (1,361)         (1,102)
                                                                                                 8,208           4,069
* Included in this balance are provisions for doubtful debts of GBP260,918 (2017: GBP232,677).

22. Cash and cash equivalents
                                                                                              31 March        31 March
                                                                                                  2018            2017
                                                                                               GBP'000         GBP'000
Cash at bank                                                                                    25,287          25,827
Transfer to assets held for sale (see note 20)                                                   (738)           (625)
                                                                                                24,549          25,202

Restricted cash
At year end funds totalling GBP11.1 million (2017: GBP12.4 million) were restricted. Tenant deposits of GBP2.58 million 
(2017: GBP2.4 million) are included in this amount as are net rents held in bank accounts which are secured by the lenders 
for the purposes of debt repayments and redevelopment, including GBP8.0 million (2017: GBP9.4 million) for the redevelopment of
Bleichenhof. As the Group is in compliance with all the terms and conditions of its loans as at the date of signing these
financial statements, there are no further restrictions, and any surplus will flow to the Group.

23. Accounts payable and accruals
                                                                                               31 March        31 March
                                                                                                   2018            2017
                                                                                                GBP'000         GBP'000
Accruals                                                                                          4,745           2,885
Deferred income                                                                                   4,883           4,930
Other payables                                                                                    6,565           6,525
Liabilities directly associated with assets classified as held for sale adjustment      
(see note 20)                                                                                   (1,571)         (1,074)
                                                                                                 14,622          13,266
24. Borrowings
                                                                                               31 March        31 March
                                                                                                   2018            2017
                                                                                                GBP'000         GBP'000
Opening balance                                                                                 229,051         290,434
Loan repayments                                                                                (60,808)         (4,143)
New loans                                                                                        89,703               -
Amortisation of loans                                                                           (5,751)         (3,536)
Capitalised borrowing costs                                                                       (505)           (161)
Amortisation of transaction fees                                                                    401             392
Foreign exchange movement in foreign operations                                                 (1,152)          16,848
Adjustment for liabilities directly associated with assets classified as Held for Sale 
adjustment (see note 20)                                                                          8,558        (70,783)
Total borrowings                                                                                259,497         229,051
Amount due for settlement within 12 months                                                       65,025          83,787
Amount due for settlement between one to three years                                             76,258          79,265
Amount due for settlement between three to five years                                           180,439         136,782
Liabilities directly associated with assets classified as Held for Sale adjustment   
(see note 20)                                                                                  (62,225)        (70,783)
                                                                                                259,497         229,051
Non-current liabilities     
Bank loans                                                                                      256,697         216,047
Total non-current loans and borrowings                                                          256,697         216,047
The maturity of non-current borrowings is as follows:     
Amount due for settlement between one to three years                                             76,258          79,265
Amount due for settlement between three to five years                                           180,439         136,782
     
                                                                                                256,697         216,047
Current liabilities     
Bank loans                                                                                       65,025          83,787
Liabilities directly associated with assets classified as Held for Sale adjustment     
(see note 20)                                                                                  (62,225)        (70,783)
Total current loans and borrowings                                                                2,800          13,004
Total loans and borrowings                                                                      259,497         229,051

24. Borrowings continued
The facilities are secured by legal charges over the properties to which they correspond. There is no cross-collaterisation
of the facilities. The terms and conditions of outstanding loans are as follows:

                                                                                     Nominal value      Carrying value*
                                                  Loan                              31 March 31 March 31 March   31 March
                                              interest                  Maturity        2018     2017     2018       2017
Entity                Note  Amortising            rate   Currency           date     GBP'000  GBP'000  GBP'000    GBP'000
United Kingdom
Laxton Properties
Limited                             No     LIBOR  1.4%        GBP      8/05/2020      27,540   27,540   27,410     27,348
Normanton    
Properties Limited                  No     LIBOR  1.4%        GBP     25/03/2019           -   37,050        -     36,958
Davemount  
Properties Limited                  No    LIBOR  2.25%        GBP     26/05/2021       4,000    4,000    3,975      3,967
LPE Limited              1         Yes     LIBOR  2.5%        GBP     31/03/2020      34,708   30,000   34,317     29,620
GGP1 Limited                        No    LIBOR  2.25%        GBP     26/05/2021       5,175    8,360    5,099      8,260
Industrials UK           2          No    LIBOR  2.25%        GBP      2/06/2022      77,984        -   77,808          -
Switzerland
Algy Properties
S.a.r.l.                 3         Yes    LIBOR  2.47%        CHF     31/03/2019       2,310    2,590    2,310      2,590
Bruce Properties  
S.a.r.l.                 3          No    LIBOR  1.35%        CHF     29/03/2019       3,557    3,804    3,557      3,804
David Properties  
S.a.r.l.                 3         Yes     LIBOR  1.4%        CHF     31/03/2018           -    6,181        -      6,181
Kantone Holdings
Limited                  3         Yes    LIBOR  1.15%        CHF         Note 1      26,296   39,205   26,296     39,205
Polo Property GmbH       3         Yes    LIBOR  1.15%        CHF         Note 1      17,019   19,002   17,020     19,003
Germany  
Century BV                         Yes  Euribor  1.55%        EUR     31/12/2022       7,290    8,254    7,205      8,238
Century 2 BV                       Yes  Euribor  1.55%        EUR     31/12/2022       3,791    3,573    3,742      3,567
Century 2 BV                       Yes  Euribor  1.65%        EUR     31/12/2022           -      748        -        746
Stenham Beryl   
Limited                            Yes  Euribor  1.85%        EUR     30/04/2018       4,565    4,599    4,565      4,599
Stenham Crystal    
Limited                            Yes  Euribor  1.85%        EUR     30/04/2018       3,812    3,841    3,812      3,841
Stenham Jasper    
Limited                            Yes  Euribor  1.85%        EUR     30/04/2018       4,665    4,700    4,665      4,700
Isabel Properties BV                No  Euribor  2.32%        EUR     30/12/2021       7,915    7,699    7,915      7,699
Bleichenhof GmbH &    
Co. KG                              No           1.58%        EUR     28/02/2022      74,694   72,655   74,694     72,655
Stenprop Hermann        
Ltd                                 No  Euribor  1.13%        EUR     30/06/2020       8,293    8,066    8,274      8,042
Stenprop Victoria Ltd               No  Euribor  1.28%        EUR     31/08/2020       9,058    8,811    9,058      8,811
                                                                                     322,672  300,678  321,722    299,834
* The difference between the nominal and the carrying value represents unamortised facility costs.

1.  On 2 June 2017, LPE Limited entered into an amendment agreement with RBSI to extend their facility by a further
    GBP6.1 million. Per the amended facility agreement the full loan is repayable in March 2020. The margin on the debt
    increased by 0.5% to 2.5% for the period until the extended debt is repaid. The all-in rate on this facility is 3.85%
    (including a swap of 1.35%). Finance costs associated with this transaction amounted to GBP189,000.
2.  On 2 June 2017, an amount of GBP69.1 million was lent to Industrials UK by RBS for a period of five years, until
    2 June 2022. GBP60.375 million of the loan is covered by means of a swap at an all-in interest rate of 3.2% per annum
    (the balance incurs interest at LIBOR   a margin of 2.25% per annum). On 16 January 2018, this loan facility was
    increased to GBP77,984,375 with the margin and the amount covered by the swap remaining unchanged.
3.  All of the bank loans in respect of the Swiss properties were due for expiry on 31 March 2017. Given that all of the
    properties in the Swiss portfolio were held for sale at this date, the loans were re-financed on a short-term basis as follows:
    -  Algy Properties S.a.r.l extended its loan with Credit Suisse in the sum of CHF3,237,500, for a period of one
       year from 1 April 2017 at a loan interest rate of LIBOR  1.5 % and no swap (previous facility: LIBOR   1.3%  
       0.91% swap). The loan was extended for a further period of one year from 1 April 2018 at an interest rate of
       LIBOR 2.47% with no swap.
    -  Bruce Properties S.a.r.l extended its loan with Credit Suisse in the sum of CHF4,755,000, for a period of one
       year from 1 April 2017 at a loan interest rate of LIBOR  1.35 % and no swap (previous facility: LIBOR   1.25%  
       1.90% swap). The loan was extended for a further period of one year from 30 March 2018 at an interest rate of
       LIBOR 1.35% with no swap.
    -  David Properties S.a.r.l sold its sole property, Cham, in October 2017 and repaid its loan at that time. In the
       prior year it had extended its loan with Credit Suisse in the sum of CHF7,725,000, for a period of one year from
       1 April 2017 at a loan interest rate of LIBOR  1.4 % and no swap.
    -  Kantone Holdings Limited entered into a rolling credit facility with its existing lender, Union Bank of Switzerland
       ('UBS'). The credit facility was for CHF 49,000,000 at a loan interest rate of LIBOR  1.05 % and no swap
       (previous facility: LIBOR   1.05%   0.7% swap). As each property within the Kantone portfolio is sold, partial
       repayments of the loan are to be made. In December 2017, a supplemental agreement was entered into whereby
       the revised loan amount was amended to CHF 36,000,000 at an interest rate of LIBOR  1.15% with no swap.
       Amortisation was reduced from CHF 500,000 per quarter to CHF 425,000 per quarter.
    -  Polo Properties GmbH entered into a rolling credit facility with its existing lender, Union Bank of Switzerland
       ('UBS'). The credit facility was for CHF 23,750,000 at a loan interest rate of LIBOR  1.15 % and no swap.

25. Other loans
                                                                                              31 March       31 March
                                                                                                  2018           2017
                                                                                               GBP'000        GBP'000
Loans                                                                                           34,080              -
Loan repayments including foreign exchange movement                                           (34,591)              -
Foreign exchange movement                                                                          518              -
Interest                                                                                         1,503              -
Interest repayments including foreign exchange movement                                        (1,510)              -
                                                                                                     -              -

On 2 June 2017 and 23 June 2017 the Group secured a bridging loan of EUR31 million from Bellerive SPV5 Limited, which
attracted interest at 7% per annum. The loan was subject to a Group loan-to-value covenant of 65% and was repaid in
full on 17 January 2018. A further 12 month facility of EUR8 million was secured at an interest rate of 7% per annum from
Peregrine Direct Limited. Drawdown was on 23 June 2017 and the loan was repaid in full on 24 January 2018.

During the period a GBP50 million revolving credit facility ('RCF') was agreed with Investec Bank plc at an all-in interest
rate of 7%   1 month LIBOR. It is intended that drawdowns under the Investec RCF will be short term in nature to fund
new acquisitions and will be repaid as soon as possible from a combination of disposal proceeds and longer term debt
finance. As at year end, the facility was undrawn.

26. Derivative financial instruments
In accordance with the terms of the borrowing arrangements and Group policy, the Group has entered into interest
rate swap agreement which 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 by the Group.
In the current year, the Group recognised a total net profit in fair value of financial instruments from continuing and
discontinuing operations of GBP2,453,000 (2017: GBP489,000 loss) and GBPnil (2017: GBP1,245,000) respectively.

The following table sets out the interest rate swap agreements at 31 March 2017 and 31 March 2018.

                                                                               Notional       Fair Notional         Fair
                                                                                  value      value     value       value
                                                                               31 March   31 March  31 March    31 March
                                            Effective     Maturity      Swap       2018       2018      2017        2017
Entity                                           date         Date    rate %    GBP'000    GBP'000   GBP'000     GBP'000
UK
Laxton Properties Limited                  14/04/2014    8/05/2020      1.62     27,540      (361)    27,539       (945)
Normanton Properties Limited                1/04/2014   25/03/2019      1.50          -          -    37,049       (825)
LPE Limited                                26/03/2015   31/03/2020      1.35     30,000      (207)    29,999       (746)
Industrials UK LP                           2/06/2017    2/06/2022      0.95     60,375        691         -           -
Germany
Century BV                                 31/12/2017   30/12/2022      2.50      7,156         14     8,254        (81)
Century 2 BV                               31/12/2017   30/12/2022      2.50      3,924          7     3,573        (38)
Century 2 BV                                1/04/2014   29/12/2017      1.85          -          -       748           -
Stenham Beryl Limited                       1/04/2014   30/04/2018      0.83      4,565        (5)     4,568        (56)
Stenham Crystal Limited                     1/04/2014   30/04/2018      0.83      3,812        (4)     3,814        (46)
Stenham Jasper Limited                      1/04/2014   30/04/2018      0.83      4,665        (5)     4,667        (57)
Isabel Properties BV                       30/01/2015   30/12/2021      0.48      7,915      (131)     7,699       (178)
Adjustment for liabilites directly associated with assets classified
as Held for Sale adjustment (see note 20)                                                       14                     -
Total swaps                                                                     149,952         13   127,910     (2,972)
Liabilities maturing within 12 months                                                            -                 (119)
Assets maturing after 12 months                                                                712                     -
Liabilities maturing after 12 months                                                         (699)               (2,853)
Derivative financial instruments - on balance sheet                                             13               (2,972)
Swaps included in investments in associates and joint ventures
Regent Arcade House Holdings Ltd           20/05/2015   20/05/2020      1.57     37,500      (453)    37,499     (1,236)
Elysion Braunschweig S.a.r.l                1/04/2014   29/03/2018      2.43          -          -     5,101        (98)
Elysion Dessau S.a.r.l                      1/04/2014   29/03/2018      2.43          -          -     4,929        (94)
Elysion Kappeln S.a.r.l                     1/04/2014   31/12/2018      2.80      5,346       (82)     5,348       (186)
Elysion Winzlar S.a.r.l                     1/04/2014   31/12/2018      2.80      3,564       (55)     3,565       (124)
Derivative financial instruments - associates and joint ventures                 46,410      (590)    56,442     (1,738)

27. Aqcuisitions of subsidiaries (business combinations and asset aqcuisition)
Business combinations
On 30 June 2017, the Group acquired 100% of the share capital of C2 Capital Limited which is the management platform
that, amongst other mandates, provides asset management and portfolio services to Industrials LP, the partnership
which owns 25 multi-let industrial estates across the UK. Stenprop acquired the shares in C2 Capital Limited for
GBP3.5 million, which was settled by the issue of 3,270,500 Stenprop shares valued at EUR1.22 per share.

Details of the assets and liabilities acquired and goodwill arising are as follows:
                                                                                                              Attributed
                                                                                                              fair value
                                                                                                                 GBP'000
Investment in joint venture                                                                                          (1)
Cash and cash equivalents                                                                                             89
Trade and other receivables                                                                                           52
Trade and other payables                                                                                           (138)
Fair value of acquired interest in net assets of subsidiary                                                            2
Goodwill                                                                                                           3,500
Total purchase consideration                                                                                       3,502

Goodwill of GBP3.5 million arising as a result of the acquisition of C2 Capital Limited has subsequently been impaired in
full during the period.

C2 Capital Limited's revenue for the period from acquistion, being 30 June 2017 to 31 March 2018 was GBP0.2 million
with a net loss of GBP0.3 million. C2 Capital Limited's revenue for the period from 1 April 2017 to 31 March 2018 was
GBP0.6 million with a net loss of GBP0.6 million.

Asset acquisitions
On 30 June 2017, the Group acquired 100% of the interests in Industrials UK LP which owns a portfolio of multi-let
industrial properties (the 'MLI Portfolio'). The MLI Portfolio is made up of 25 separate multi-let industrial estates
situated in or near densely populated nodes across the United Kingdom. The acquisition was effected through the
acquisition of a Jersey unit trust (Industrials Investment Unit Trust) and a general partner (Industrials UK GP LLC) who
together held 100% of the limited partnership.

The total purchase consideration for the acquisition was calculated with reference to the net asset value of the three
entities as at 30 June 2017 and which valued the properties at GBP127 million. The acquisition was financed by a loan of
GBP69 million, proceeds from the sale of Prejan Enterprises Limited (Nova Eventis Shopping Centre) and bridging loan
facilities.

                                                              Industrials                                              Total
                                                               Investment       Industrials      Industrials      attributed
                                                               Unit Trust         UK GP LLC            UK LP      fair value
                                                                  GBP'000           GBP'000          GBP'000         GBP'000
Investment property                                                     -                 -          127,000         127,000
Cash and cash equivalents                                              23                 6            2,954           2,983
Trade and other receivables                                            52                 -            1,208           1,260
Trade and other payables                                             (14)               (4)          (4,234)         (4,252)
External debt                                                           -                 -         (69,133)        (69,133)
Total purchase consideration settled in cash                           61                 2           57,795          57,858

Costs incurred in the acquisition of the MLI Portfolio amounted to GBP1.65 million. These acquisition costs were capitalised
to the cost of the asset. At 31 March 2018, the investment was stated at fair value, and any movement was recognised
as fair value movement in the Statement of Comprehensive Income.

28. Acquisition of subsidiaries and joint ventures
During the year the Group incorporated the following companies:

                                                                                                                  Net assets
                                                                                 Incorporation           Cost       acquired
Name                                                                 Jurisdiction         date        GBP'000        GBP'000
Acquisition of Industrials UK LP (refer to note 27):           
Stenprop Industrials 1 Limited                                                BVI   11/05/2017              -              -
Stenprop Industrials 2 Limited                                                BVI   11/05/2017              -              -
Acquisition of industrial properties                                                                        -
Stenprop Industrials 3 Limited                                                BVI   17/10/2017              -              -
Stenprop Industrials 4 Limited                                                BVI   16/01/2018              -              -
No companies were incorporated in the prior year.  


29. Disposal of subsidiaries 
Normanton 
On 11 January 2018, the Group disposed of its 100% shareholding in Normanton Properties Limited for a consideration
of GBP42,607,525. Normanton Properties Limited owned the property Pilgrim Street, London. The impact of the disposal
on the Group is shown below:
                                                                                                                    31 March
                                                                                                                        2018
                                                                                                                     GBP'000
Carrying value of net assets at disposal date        
Investment property                                                                                                   79,900
Trade and other receivables                                                                                              205
Cash and cash equivalents                                                                                              1,831
Borrowings                                                                                                          (37,608)
Trade and other payables                                                                                             (1,694)
Net assets disposed                                                                                                   42,634
Cash consideration                                                                                                    42,608
Loss on disposal of subsidiaries                                                                                        (26)
 
There were no disposals of subsidiaries made in the prior year.  
 
30. Deferred tax   
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during
the current and prior reporting period.  
                                                                                                  31 March         31 March
                                                                                                      2018             2017
                                                                                                   GBP'000          GBP'000
Opening balance                                                                                    (5,794)          (7,670)
Deferred tax recognised on investment properties                                                   (3,675)          (2,834)
Deferred tax recognised on revaluation of financial liabilities                                       (53)            (250)
Deferred tax on tax losses                                                                             590              615
Adjustment for liabilities directly associated with assets classified as held for sale   
adjustment (see note 20)                                                                             (447)            4,345
Closing balance                                                                                    (9,379)          (5,794)
  
Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. The following is
the analysis of the deferred tax balances (after offset) for financial reporting purposes:
                                                                                                  31 March         31 March
                                                                                                      2018             2017
                                                                                                   GBP'000          GBP'000
Deferred tax liabilities                                                                          (18,040)         (14,361)
Deferred tax assets                                                                                  4,764            4,223
Adjustment for liabilities directly associated with assets classified as held for sale
adjustment (see note 20)                                                                             3,897            4,344
Closing balance                                                                                    (9,379)          (5,794)
Deferred tax opening balance                                                                        10,139            7,670
Exchange movements                                                                                   (123)              754
Deferred tax liability closing balance                                                            (13,276)         (10,138)
Movement in deferred tax                                                                           (3,260)           (1,714)

31. Financial Risk Management (i)
The Group is exposed to a variety of financial risks including market risk, credit risk and liquidity risk. The overall risk
management strategy seeks to minimise the potential adverse effects on the Group's financial performance. Certain
risk exposures are hedged via the use of financial derivatives.

This note presents information about the Group's exposure to each of the above risks, the Group's objectives, policies
and processes for measuring and managing these risks, and the Group's management of capital. Further quantitative
disclosures are included throughout these audited financial statements where relevant. The Group's Board has overall
responsibility for the establishment and oversight of the Group's risk management framework.

During the reporting period, the Risk Committee, established by the Board, assumed responsibility for developing
and monitoring the Group's risk management policies. With effect from 1 May 2018, the Risk Committee was replaced
with a combined Audit and Risk Committee. The committee participates in management's process of formulating and
implementing the risk management plan and it reports on the plan adopted by management to the Board.

The objective of risk management is to identify, assess, manage and monitor the risks to which the business is exposed,
including, but not limited to, information technology risk. The Board is responsible for ensuring the adoption of
appropriate risk management policies by management. The Group's risk management policies are established to
identify and analyse the risks faced by the Group, to set appropriate risk limits and controls and to monitor risks and
adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and
the Group's activities. The Board will also ensure that there are processes in place between itself and management
enabling complete, timely, relevant, accurate and accessible risk disclosure to shareholders.


To enable the Audit and Risk Committee to meet its responsibilities, terms of reference were adopted by the Board.
These include appropriate standards, the implementation of systems of internal control and an effective risk-based
internal audit which comprises policies, procedures, systems and information to assist in:

-  safeguarding assets and reducing the risk of loss, error, fraud and other irregularities;
-  ensuring the accuracy and completeness of accounting records and reporting;
-  preparing timely, reliable financial statements and information in compliance with relevant legislation and
   generally accepted accounting policies and practices; and
-  increasing the probability of anticipating unpredictable risk.

The committee oversees how management monitor compliance with the Group's risk management policies and
procedures and reviews the adequacy of the risk management framework in relation to risks faced by the Group.

Credit risk
The Group's principal financial assets are cash and cash equivalents as well as trade and other receivables. The credit
risk arising from deposits with banks is managed through a policy of utilising only independently rated banks with
acceptable credit ratings.

The credit quality of cash and cash equivalents can be assessed by reference to external credit ratings of the
counterparty where the account or deposit is placed. A summary of the European financial institutions credit ratings
for the six banks in which 80% of the Group's cash is held, are as follows:

                                                                                                31 March    31 March
                                                                                                    2018        2017
- ABN AMRO Bank NV                                                                                     A           A
- Barclays Private Clients International Limited                                                       A          A-
- Berliner Sparkasse                                                                                  A          AA-
- Deustche Bank AG``                                                                                  A-          A-
- HSBC Bank plc                                                                                      AA-         AA-
- Royal Bank of Scotland Group plc                                                                  BBB         BBB-
- Santander UK plc                                                                                     A           A
- UBS AG                                                                                              A           A 

The directors are satisfied as to the creditworthiness of the banks where the remaining cash is held.

At the time of acquisition of a property, and from time to time thereafter, the Company reviews the quality of the
contracted tenants to ensure that the tenants meet acceptable covenants. Trade receivables are presented in the
statement of financial position net of allowances for doubtful receivables. An allowance for impairment is made where
there is an indefinable loss event, which based on previous experience, may give risk to a non recovery of a receivable.

The carrying amount of financial assets represents the maximum credit exposure at the reporting date.

At 31 March 2018, trade and other receivables and cash and cash equivalents amounts to GBP32,757,000 (March 2017:
GBP29,271,000) as shown in the statement of financial position.

31. Financial Risk Management (ii)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash resources, the availability of funding through
appropriate and adequate credit lines and managing the ability of tenants to settle within lease obligations. Through the
forecasting and budgeting of cash requirements the Group ensures that adequate committed resources are available.

By its nature, the market for investment property is not immediately liquid therefore, the Group's ability to vary its
portfolio in a timely fashion and to receive a fair price in response to changes in economic and other conditions may be
limited. Furthermore, where the Group acquires investment properties for which there is not a readily available market,
the Group's ability to deal in any such investment or obtain reliable information about the value of such investment or
risks to which such property investment is exposed may be limited. The Group's short term liquidity risk is secured by
the existence of cash balances, through the fact that rental income exceeds the Group's cost structures and through
ensuring that facilities are managed within debt covenants.

The following table details the contractual maturity date of the Group's financial liabilities. The table has been compiled
based on the undiscounted contractual maturities of the financial liabilities, including interest that will accrue to those
liabilities, except where the Group is entitled and intends to repay the liability before its maturity. The discount column
represents the possible future cash flows included in the maturity analysis, such as future interest or potential payments
that have not been included in the carrying amount of the financial liability. The table also includes a reconciliation to
the carrying value in the statement of financial position.    

                              Less than     One to     Three to
                                    one      three       twelve One to five    Over five
                                  month     months       months       years        years    Discount         Total
                                GBP'000    GBP'000      GBP'000     GBP'000      GBP'000     GBP'000       GBP'000
Interest-bearing loans           56,358          -        8,667      76,261      180,436           -       321,722
Loan interest                       825      1,912        5,509      15,684            -    (23,076)           854
Financial liabilities                14          -            -         699            -           -           713
Deferred tax                          -          -        3,898       9,379            -           -        13,277
Other payables (incl. Tax)            -      2,177        7,180           -            -           -         9,357
Accruals                              -          -        3,891           -            -           -         3,891
Deferred income                       -      4,883            -           -            -           -         4,883
Liabilities directly  
associated with assets  
classified as held for sale    (56,405)      (286)     (11,016)           -            -           -      (67,707)
As at 31 March 2018                 792      8,686       18,129     102,023      180,436    (23,076)       286,990

                              Less than     One to     Three to
                                    one      three       twelve One to five    Over five
                                  month     months       months       years        years    Discount         Total
                                GBP'000    GBP'000      GBP'000     GBP'000      GBP'000     GBP'000       GBP'000
Interest-bearing loans                -          -       83,783     216,051            -           -       299,834
Loan interest                       492      1,668        4,798      12,079            -    (18,507)           530
Financial liabilities                 -          -          119       2,853            -           -         2,972
Deferred tax                          -          -        4,344       5,795            -           -        10,139
Other payables (incl. Tax)            -      3,614        5,204           -            -           -         8,818
Accruals                              -          -        2,355           -            -           -         2,355
Deferred income                       -      4,930            -           -            -           -         4,930
Liabilities directly  
associated with assets 
classified as held for sale           -      (659)     (76,344)           -            -         802      (76,201)
As at 31 March 2017                 492      9,553       24,259     236,778            -    (17,705)       253,377

31. Financial Risk Management (iii)
Fair value of financial instruments
The following table summarises the Group's financial assets and liabilities into categories required by IFRS 7 Financial
instruments disclosures. The directors consider that the carrying amounts of financial assets and financial liabilities
recorded at amortised cost in the financial statements approximate their fair values.

                                                                   Held at fair                     Total carrying
                                                                  value through           Held at           amount
                                                                     profit and         amortised         31 March
                                                                           loss              cost             2018
                                                                        GBP'000           GBP'000          GBP'000
Financial assets 
Cash and cash equivalents                                                     -            24,549           24,549
Derivative financial instruments                                            712                 -              712
Accounts receivable                                                           -             7,089            7,089
Other debtors                                                                 -            15,372           15,372
31 March 2018                                                               712            47,010           47,722

Financial liabilities
Bank loans                                                                    -           259,497          259,497
Derivative financial instruments                                            699                 -              699
Accounts payable and accruals                                                 -            17,414           17,414
31 March 2018                                                               699           276,911          277,610

                                                                   Held at fair                     Total carrying
                                                                  value through           Held at           amount
                                                                     profit and         amortised         31 March
                                                                           loss              cost             2017
                                                                        GBP'000           GBP'000          GBP'000
Financial assets
Cash and cash equivalents                                                     -            25,202           25,202
Accounts receivable                                                           -             4,149            4,149
Other debtors                                                                 -            15,372           15,372
31 March 2017                                                                 -            44,723           44,723

Financial liabilities
Bank loans                                                                    -           229,051          229,051
Derivative financial instruments                                          2,972                 -            2,972
Accounts payable and accruals                                                 -            15,560           15,560
31 March 2017                                                             2,972           244,611          247,583

31. Financial Risk Management (iv)
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. Market risk comprises three types of risk: foreign currency risk, interest rate risk and price risk. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising returns to shareholders.


Investment in property is subject to varying degrees of risk. The main factors which affect the value of the investment
in property include:

-  changes in the general economic climate;
-  local conditions in respective markets, such as oversupply, or a reduction in demand, for commercial space in a
   specific area;
-  competition from other available properties; and
-  government regulations, including planning, environmental and tax laws.

While a large number of these factors are outside the control of the management, market and property specific factors
relevant to maintain a sustainable income stream within the Group's yield parameters are considered as part of the
initial due diligence. Properties and tenant leases are actively managed.

Foreign currency risk
The Group's functional currency is Sterling. Foreign currency risk is the risk that the fair value or future cash flows of
a financial instrument will fluctuate because of changes in foreign currency or exchange rates. At the reporting date,
the following table summarises the Group's exposure to foreign currency risk in respect of assets and liabilities held in
EUR (Germany) and CHF (Switzerland).

                                                                                                31 March         31 March
                                                                                                    2018             2017
                                                                                                 GBP'000          GBP'000
Assets      
CHF                                                                                               94,875          132,832
EUR                                                                                              292,426          274,436
Liabilities      
CHF                                                                                               53,644           76,201
EUR                                                                                              138,241          134,263

Foreign currency sensitivity analysis
The sensitivity analysis measures the impact on the Group's exposure in Sterling (based on a change in the reporting
date spot rate) and the impact on the Group's Sterling profitability, given a simultaneous change in the foreign
currencies to which the Group is exposed at the reporting date.

A 10% strengthening in the Sterling exchange rate against the following currencies at year end would have decreased
equity and profits by the amounts shown below. The 10% threshold was selected as a reasonable, worst-case scenario
and is considered a prudent threshold. This analysis assumes that all other variables remain constant. For a 10%
weakening of Sterling, there would be an equal but opposite impact on the profit and equity and the balance would
be positive.
                                                                                                    Equity Profit or loss
                                                                                                    GBP'000       GBP'000
CHF impact                                                                                          (4,123)           248
EUR impact                                                                                         (15,418)       (3,371)
                                                                                                   (19,542)       (3,123)
The following exchange rates against GBP were applied during the year:       
 
                                                                                                   Effective
                                                                                                average rate
                                                                                                  for twelve
                                                                                                   months to  Period end
                                                                                                    31 March    31 March
                                                                                                        2018        2018
CHF                                                                                                   0.7599      0.7481
EUR                                                                                                   0.8859      0.8794

Interest rate risk
The Group's interest rate risk is associated with cash and cash equivalents, on the one hand, and interest-bearing
borrowings, on the other. If the interest is variable, it presents the Group with a cash flow interest rate risk. Interest
rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. As stated in note 24, borrowings from credit institutions are protected against movements in
interest rates. The Company uses interest rate swaps to manage its interest rate exposure.


31. Financial Risk Management (v)
Fair value hierarchy
The table below analyses the Group's financial instruments carried at fair value, by valuation method. The different
levels have been defined 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 (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

                                                              Total
                                                          financial
                                                        instruments   
                                                      recognised at          Designated at fair value
                                                         fair value     Level 1        Level 2        Level 3
                                                            GBP'000     GBP'000        GBP'000        GBP'000
31 March 2018                 
Assets                  
Derivative financial instruments                                712           -            712              -
Total assets                                                    712           -            712              -
Liabilities                   
Derivative financial instruments                                699           -            699              -
Total liabilities                                               699           -            699              -
31 March 2017                   
Liabilities                   
Derivative financial liabilities                              2,972           -          2,972              -
Total liabilities                                             2,972           -          2,972              -

Details of changes in valuation techniques
There have been no significant changes in valuation techniques during the period under review.
Significant transfers between Level, 1 Level 2 and Level 3
There have been no significant transfers during the period under review.

Unobservable inputs
Unobservable inputs for Level 3 investment properties are disclosed in note 16.

Capital risk management
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 24, cash and cash
equivalents and equity attributable to ordinary shareholders of the Company, comprising issued capital, reserves and
retained earnings as disclosed in the statement of changes in equity. Stenprop's average loan-to-value ratio ('LTV')
ratio at 31 March 2018 was 49.2% (March 2017: 51.6%), including joint ventures and associates and the Group is not
subject to any external capital requirements. The Group strategy is to maintain a debt to equity ratio and LTV to ensure
that property performance is translated into an enhanced return for 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 a 50% LTV in respect of secured external borrowings is an appropriate target for the Group, given the current
market conditions.

32. Related party transactions
Parties are considered related if one party has control, joint control or significant influence over the other party in
making financial and operating decisions. Transactions with related parties are made on terms equivalent to those that
prevail in an arm's length transaction.

Other than those further referred to below, there were no other related party transactions during the period ended
31 March 2018.

Until his resignation on 2 August 2017, P Arenson a director of the Company, was also a director of Stenham Limited
which at his resignation had an indirect beneficial interest of 4.76% in Stenprop Limited through its wholly-owned
subsidiary, Stenham Group Limited (March 2017: 4.85%).

At 31 March 2018, P Arenson held no interest in the share capital of Stenham Limited (March 2017: 1.13%). His interest
in Stenprop Limited is seperately disclosed in note 8.

M Yachad was a non-executive director of the Company until his resignation on 28 February 2018. During the period
he was also a non-executive director of Sandown Capital Limited ('SCL'), owned by Sandown Capital International
Limited ('SCIL'). He resigned from the board of SCL on 29 November 2017 at which time SCIL had a direct beneficial
interest of 6.93% in the shares of the Company (March 2017: 5.98% direct and indirect beneficial interest via Peregrine
Holdings Limited on whose board M Yachad sat).


33. Minimum lease payments
The Group earns rental income by leasing its investment properties to tenants under non-cancellable operating leases.
At the balance sheet date the Group had contracted with tenants for the following future minimum lease payments
on its investment properties:

                                                                                           31 March     31 March
                                                                                               2018         2017
                                                                                            GBP'000      GBP'000
Continuing operations                                                             
Within one year                                                                              30,006       32,536
Between one and two years                                                                    26,849       30,531
Between two and five years                                                                   57,087       76,284
After five years                                                                             42,336       63,304
                                                                                            156,278      202,656
Discontinuing operations                                                              
Within one year                                                                               7,086        9,210
Between one and two years                                                                     6,516        8,282
Between two and five years                                                                   17,779       20,792
After five years                                                                             27,621       30,030
                                                                                             59,002       68,314

34. Contingent liabilities and commitments
As at 31 March 2018. the Group was contractually committed to CHF2.45 million (GBP1.83 million). This reflects a
contribution towards capital expenditure in respect of an investment property in Switzerland.

35. Events after the reporting period
(i) Disposal of Argyll Street
    On 4 June 2018, Stenprop completed the sale of its joint venture interest in Argyll Street in the West End of
    London by way of a sale of shares. The sale valued the property at GBP83.4 million and generated net proceeds of
    GBP22.8 million.

      
(ii)  MLI Acquisitions
      On 24 April 2018, Stenprop completed the acquisition of a fully-let industrial estate in Shrewsbury for
      GBP2.9 million. The estate comprises 30 units totalling 44,611 sq ft of industrial space.

      On 1 June 2018, Stenprop completed the acquisition of a multi-let industrial estate in Kirkstall, Leeds for
      GBP8.1 million. The estate comprises 14 units totalling 111,081 sq ft of industrial space.

(iii) Refinancing
      Subsequent to the year end, the EUR14.8 million loan with DGHyp was refinanced. The loan, relating to the Aldi
      portfolio, was extended until 30 April 2020. Loan interest is calculated at 1.85% p.a. over the three month Euribor
      and the terms of the facility allow the borrower to benefit from negative interest rates. At the date of refinance

      this reduced the all-in interest rate for the first three month interest period to 1.52%.

      In May 2018, an amount of GBP8.4 million was drawn down from The Royal Bank of Scotland plc, secured against
      the MLI properties located in Shrewsbury, Leeds and Huddersfield, with a term of five years and an interest rate
      equal to three month LIBOR plus a margin of 2.25 per cent per annum.

(iv)  REIT conversion and changes to the board of directors
      The Company converted to a UK REIT on 1 May 2018. Following the conversion there have been a number of
      changes to the board of directors. With effect from the date of conversion, the independent non-executive
      chairman, Stephen Ball, and executive director, Neil Marais resigned from the board of directors of Stenprop.
 
      With effect from the same date, Julian Carey was appointed as executive group property director, Richard Grant
      was appointed as independent non-executive chairman and Philip Holland was appointed as independent non-
      executive director and chairman of the audit committee of Stenprop.
 
(v)   Declaration of dividend
      On 6 June 2018, the Board declared a final dividend of 4.0 pence per share. The final dividend will be payable in
      cash or as a scrip dividend by way of an issue of new Stenprop shares. An announcement containing details of
      the dividend and the timetable will be made in due course.

     
(vi)  Share incentive awards
      On 6 June 2018, the Board, on the recommendation of the remuneration committee, approved share-based
      awards in relation to the Long Term Incentive Plan and the Deferred Share Bonus Plan. Details of awards made
      to executive directors can be seen in Note 8.

Property summary
(unaudited)

                                                                               Annual                                 W.A.
                               Asset        Asset        Gross                  gross       WAULT                   rental
                               value        value     lettable   Occupancy     rental         (by        WAULT        (per
                                GBPm      as % of         area   (by area)     income    revenue)    (by area)       sq m)
                                        portfolio         sq m           %       GBPm       Years        Years    GBP/sq m
UK         Office              153.0        20.9%       28,289       97.2%        9.4         6.6          6.2         333
           MLI                 147.8        20.1%      215,299       84.7%       10.4         3.1          3.1          48
           Retail                6.6         0.9%        7,678      100.0%        0.9         2.4          2.4         119
           Other Industrial      6.8         0.9%       14,313      100.0%        0.6         2.4          2.4          40
           Total               314.2        42.8%      265,579       87.3%       21.2         4.6          3.4          80
Germany    Retail              103.2        14.1%       56,543       96.9%        6.0         7.1          7.2         107
           Office               58.4         8.0%       15,040       75.6%        2.2         4.7          5.1         145
           Nursing Homes        34.6         4.7%       19,330      100.0%        2.4        11.4         11.1         124
           Other                59.7         8.1%        1,090       75.6%        2.2         4.7          5.1       2,043
           Total               255.9        34.9%       92,003       93.8%       12.8         7.1          7.7         140
Held for   Office               71.4         9.7%       15,430       96.3%        4.0         3.1          3.4         257
sale       Retail               70.0         9.5%       33,433       97.1%        4.6         6.4          7.5         136
           Other                22.1         3.0%        8,659       99.1%        1.3        16.2         16.7         153
           Total               163.5        22.3%       57,522       97.2%        9.8         6.4          7.8         171
Total      Office              282.8        38.6%       58,759       91.4%       15.5         5.4          5.2         265
           MLI                 147.8        20.1%      215,299       84.7%       10.4         3.1          3.1          48
           Retail              179.8        24.5%       97,654       97.2%       11.5         6.5          7.0         118
           Other Industrial      6.8         0.9%       14,313      100.0%        0.6         2.4          2.4          40
           Nursing Homes        34.6         4.7%       19,330      100.0%        2.4        11.4         11.1         124
           Other                81.8        11.2%        9,749       96.5%        3.6         9.0         15.4         364
           Total               733.6       100.0%      415,105       90.1%       43.9         5.7          4.9         106

Rental Escalation profile
Stenprop operates in countries with low inflation rates. The annual inflation rate during the 2017 calendar year was
2.9% for the UK, 1.6% for Germany and nil for Switzerland. Rental escalation clauses vary across the portfolio. In the UK,
a majority of leases are subject to periodic upwards-only rent reviews, at different stages of the tenancy. Leases in the
German and Swiss properties are generally adjusted for CPI with a hurdle rate before an increase can be applied, with
the exception of the Aldi portfolio, which sees increases of 1.66% annually. Rental escalation clauses within leases, as
in previous years, currently have a minor impact on rents. Rental growth is rather driven by lease events such as new
lettings and regears when passing rent realigns with estimated rental value.

Portfolio analysis
(unaudited)

                    Portfolio Market                            Annualised Net Initial
                        by     value                                 Gross      Yield       WAULT
                    market  31 March                                Rental   31 March         (by      Voids       Rental
Property/            value      2018                     Area       Income       2018     rental)  (by area)     per sq m
Portfolio              (%)    (GBPm)     Properties    (sq m)       (GBPm)        (%)     (years)        (%)   (GBP/sq m)
UK non-MLI           22.7%     166.4             10    50,280         10.9      5.76%         6.0       1.6%          217
UK MLI               20.1%     147.8             30   215,299         10.4      6.50%         3.1      15.3%           48
Germany              30.2%     221.3              9    72,674         10.4      4.16%         6.1       7.8%          144
Held for sale        16.6%     121.8             22    54,455          7.8      4.90%         7.6       3.0%          143
Total                89.6%     657.3             71   392,708         39.5      5.23%         5.6      10.5%          101
Share of Joint
Ventures and
Associates
(JV&A)                4.7%      34.6              4    19,330          2.4      5.95%        11.4       0.0%          124
Share of JV&A 
- held for sale       5.7%      41.7              1     3,067          2.1      4.61%         1.8       0.0%          671
Total               100.0%     733.6             76   415,105         43.9      5.23%         5.7       9.9%          106

Note: The German portfolio includes the minority interest in Bleichenhof

Tenant profile
Stenprop's tenants are classified into three groups as follows:

Tenant profile by annual rent         Tenant profile by lettable area
                         
A                         50%         A                           39%
B                         20%         B                           19%
C                         30%         C                           42%


Type A: Large tenants with a national presence or multi-national tenants, government and major franchisees.
Type B: Nationally recognised tenants, listed tenants, franchisees, and medium to large professional firms.
Type C: 477 other tenants.
* includes Stenprop's share of joint ventures and associates

Consolidated portfolio
(unaudited)

                                                                                      Net
                                          Market                     Annualised   Initial                  Rental
                                           value                          Gross     Yield   WAULT     Voids     per
                            Ownership   31 March                         Rental  31 March     (by       (by    sq m
              Property/      interest       2018                Area     Income      2018 rental)     area) (GBP/sq
Company       Portfolio             %     (GBPm) Properties   (sq m)     (GBPm)       (%) (years)       (%)      m)
UK MLI
Stenprop
Industrials   Industrials      100.0%      147.8         30  215,299       10.4     6.50%     3.1     15.3%      48

UK non-MLI
Davemount
Properties
(BVI)         Davemount       100.00%        6.6          3    7,678        0.9    11.38%     2.4      0.0%     119
Laxton
Properties
Ltd (BVI)     Euston          100.00%       79.6          1   10,204        4.0     3.94%     4.5      7.4%     392
GGP1
Limited
(Guernsey)    GGP1            100.00%       20.4          5   21,835        1.7     7.71%     3.5      0.0%      76
LPE Ltd
(Guernsey)    Trafalgar       100.00%       59.9          1   10,564        4.3     6.90%     9.1      0.3%     410
Total UK
non-MLI                                    166.4         10   50,280       10.9     5.76%     6.0      1.6%     217

Germany
Anarosa
Holdings N.V
(Curacao)     BikeMax         100.00%       24.4          5   18,007        1.7     6.33%     3.4      0.0%      92
KG
Bleichenhof
GmbH          Bleichenhof      94.90%      130.8          1   19,320        4.9     3.33%     4.7     24.4%     253
Isabel
Properties
B.V           Isabel          100.00%       19.3          1   13,365        1.2     5.37%     7.0      0.0%      87
Stenprop 
Hermann       Hermann         100.00%       20.8          1    8,272        1.3     5.23%     6.2      2.7%  155.18
Stenprop 
Victoria      Victoria        100.00%       26.1          1   13,710        1.5     4.57%    13.0      5.5%     107
Total 
Germany                                    221.3          9   72,674       10.4     4.16%     6.1      7.8%     144

Assets Held for sale
(unaudited)

                                                                                       Net
                                           Market                     Annualised   Initial                      Rental
                                            value                          Gross     Yield    WAULT                per
                             Ownership   31 March                         Rental  31 March      (by     Voids     sq m
               Property/      interest       2018                Area     Income      2018  rental) (by area)    (GBP/
Company        Portfolio             %     (GBPm) Properties   (sq m)     (GBPm)       (%)  (years)       (%)    sq m)
Germany
Stenham        Aldi             100.0%       28.9        14    18,843        1.9     5.97%      8.9      0.0%      101
Gemstone
Ltd
Switzerland Switzerland
Credit         Credit
Suisse         Suisse
Bruce          Chiasso         100.00%        6.5         1     4,183        0.4     4.07%      1.5     10.8%      107
Properties   
S.a.r.l. (Lux)   
Algy           Sissach         100.00%        2.9         1     1,694        0.2     2.62%      3.2     52.0%       97
Properties   
S.a.r.l. (Lux)   
Total Credit Total Credit                     9.3         2     5,877        0.6     3.63%      1.9     22.7%      104
Suisse         Suisse       
Polo           Polo 
Polo Property Altendorf        100.00%       19.8         1     8,228        1.2     5.35%      8.7      0.0%      147
GmbH 
(Swiss) 
Polo Property Arlesheim        100.00%        9.5         1     4,834        0.8     6.54%      5.5      0.0%      163
GmbH
(Swiss)
Total Polo     Total Polo                    29.3         2    13,062        2.0     5.74%      7.4      0.0%      153
Kantone        Kantone  
Kantone        Baar            100.00%       15.3         1     3,995        1.1     4.77%      0.8      2.0%      279
Holdings Ltd
(Guernsey)
Kantone        Lugano          100.00%       15.7         1     6,974        1.0     4.38%     19.5      0.0%      145
Holdings Ltd
(Guernsey)
Kantone        Montreux        100.00%       18.9         1     4,198        0.9     3.70%      5.3      4.6%      218
Holdings Ltd 
(Guernsey) 
Kantone        Vevey           100.00%        4.4         1     1,506        0.2     2.47%      2.1      0.9%      149
Holdings Ltd 
(Guernsey) 
Total          Total                         54.3         4    16,673        3.3     4.10%      7.9      1.7%      196
Kantone        Kantone    
Total          Total                         92.9         8    35,612        5.9     4.57%      7.1      4.6%      165
Switzerland Switzerland 
Total held     Total held                   121.8        22    54,455        7.8     4.90%      7.6      3.0%   142.80
for sale       for sale  
Total          Total                        657.3        71   392,708       39.5     5.23%      5.6     10.5%   100.50
Wholly-        Wholly-
Owned          Owned
Portfolio      Portfolio

Jointly controlled entities
(unaudited)

                                                                                     Net
                                        Market                      Annualised   Initial                       Rental
                                         value                           Gross     Yield        WAULT  Voids      per
                            Ownership 31 March                          Rental  31 March          per    (by     sq m
                 Property/   interest     2018               Area       Income      2018   valuations  area)    (GBP/
Company          Portfolio          %   (GBPm) Properties  (sq m)       (GBPm)       (%)  (by rental)    (%)    sq m)
Germany          Germany 
Elysion S.a.r.l. Carehomes    100.00%     34.6          4  19,330          2.4     5.95%         11.4   0.0%      124
Total            Germany                  34.6          4  19,330          2.4     5.95%         11.4   0.0%      124
   
 Held for sale   
 UK              UK   
 Stenprop        Argyll         50.0%     83.4          1   6,134          4.1     4.61%          1.8   0.0%      671
 Argyll 
 Limited 
 
Total            Jointly                 118.0          5  25,463          6.5     5.00%          5.4   0.0%      256
                 Owned  
                 Interests  
                 (100%)  
Total            Jointly                  76.3          5  22,397          4.5     5.22%          7.0   0.0%      199
                 Owned 
                 Interests 
                 (Stenprop
                 share)

Analysis of shareholders
(unaudited)

                                                        Number of                    Number of
Shareholder spread                                  shareholdings            %          shares          %
1 - 1,000 shares                                              445        16.63         168,950       0.06
1,001- 10,000 shares                                        1,001        37.41       4,095,985       1.40
10,001- 100,000 shares                                        780        29.15      30,601,230      10.49
100,001- 1,000,000 shares                                     403        15.06     112,164,042      38.45
1,000,001 shares and over                                      47         1.76     144,688,269      49.60
Totals                                                      2,676       100.00     291,718,476     100.00

                                                        Number of                    Number of
Distribution of shareholders                        shareholdings            %          shares          %
Banks/Brokers                                                  59         2.20      42,845,626      14.69
Close Corporations                                             30         1.12         724,703       0.25
Control Account                                                 2         0.07         254,592       0.09
Endowment Funds                                                15         0.56       1,245,881       0.43
Individuals                                                 1,736        64.87      58,188,811      19.95
Insurance Companies                                            14         0.52       2,344,446       0.80
Investment Companies                                            5         0.19      20,964,632       7.19
Medical Scheme                                                  1         0.04           1,604       0.00
Mutual Funds                                                   81         3.03      28,559,196       9.79
Other Corporations                                             10         0.37         279,771       0.10
Private Companies                                             183         6.84      44,112,569      15.12
Public Companies                                               40         1.49      21,997,625       7.54
Retirement Funds                                               19         0.71       5,842,190       2.00
Treasury Stock                                                  1         0.04       9,026,189       3.09
Trusts                                                        480        17.94      55,330,641      18.97
Totals                                                      2,676       100.00     291,718,476     100.00

                                                        Number of                    Number of
Public/Non-public Shareholders                      shareholdings            %          shares          %
Non - Public Shareholders                                      13         0.49      27,598,781       9.46
Directors and Associates of the Company holdings               12         0.45      18,572,592       6.37
Treasury Stock                                                  1         0.04       9,026,189       3.09
Public Shareholders                                         2,664        99.55     273,145,884      93.63
Totals                                                      2,676       100.00     291,718,476     100.00

Major Shareholders
As at the financial year end there were 2,676 shareholders in the Company. As at 31 March 2018 Sandown Capital
Limited held a direct and indirect interest of 6.93% in the issued share capital of the Company. The Company does not
know of any other shareholder which has beneficial interest of greater than 5% of the Company's issued share capital
as at 31 March 2018.  

Shareholder diary

Financial year end                              31 March
Integrated Annual Report posted                     July
Annual general meeting                         September



Announcement of results
Interim                                         November
Annual                                              June



Dividends                         Declared          Paid
Interim                           November       January
Annual                                June   July/August

Corporate information

STENPROP LIMITED
(Incorporated in Guernsey)
Registration number: 64865
BSX share code: STP.BH
JSE share code: STP
ISIN: GG00BFWMR296

Registered office of the
Company
Stenprop Limited
(Registration number 64845)
Kingsway House
Havilland Street
St Peter Port, GY1 2QE
Guernsey

Postal address of the
Company
180 Great Portland Street
London, W1W 5QZ
United Kingdom

Company secretary
Sarah Bellilchi
(Stenprop Head of Legal)

JSE sponsor
Java Capital Trustees and Sponsors
Proprietary Limited
(Registration number
2006/005780/07)
6A Sandown Valley Crescent
Sandown
Sandton, 2196
South Africa
(PO Box 522606, Saxonwold, 2132)

SA transfer secretaries
Computershare Investor Services
Proprietary Limited
(Registration number
2004/003647/07)
Rosebank Towers, 15 Biermann
Avenue,
Rosebank, Johannesburg, 2196,
South Africa

Correspondence address
PO Box 61051
Marshalltown, 2107
South Africa

Legal advisors
Bryan Cave Leighton Paisner LLP
Adelaide House
London Bridge
London, EC4R 9HA
United Kingdom

South African corporate
advisor
Java Capital Proprietary Limited
(Registration number
2012/089864/07)
6A Sandown Valley Crescent
Sandown
Sandton, 2196
South Africa
(PO Box 522606, Saxonwold, 2132)

BSX sponsor
Estera Securities (Bermuda) Limited
(Registration number 25105)
Canon's Court
22 Victoria Street
Hamilton, HM12, Bermuda
(Postal address the same as the
physical address above)

Guernsey registrars
Computershare Investor Services
(Guernsey) Limited
1st Floor, Tudor House
Le Bordage
St Peter Port
Guernsey
GY1 1DB

Correspondence address
2nd Floor, Queensway House
Hilgrove Street
St. Helier
Jersey
JE1 1ES
Channel Islands

Auditors
Deloitte LLP
Regency Court
Glategny Esplanade
St Peter Port
GY1 3HW
Guernsey
Channel Islands