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Eastern Property Holdings Limited (EPH) / Eastern Property Holdings Limited (EPH): Third Quarter 2017 Financial Update . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.

30 November 2017, Road Town, Tortola, BVI

FINANCIAL HIGHLIGHTS

• The performance of the Company's income-generating properties continues to demonstrate stable profitability. During the first 9 months of 2017 EPH rental properties generated $52.13 million of net rental income (9 months of 2016: $53.68 million). The contribution of each property to net rental income is presented in the table below;

• Cash generated by the rental properties is sufficient to cover the Company's operating expenses, including payment of interest on the bonds issued by the Company;
  

• Although during 2017 Rouble/US dollar exchange rate is less volatile as compared to the period 2014-2016, the exchange rate fluctuation continues to be one of the main factors affecting the Company's operating results;

• Additional construction costs spent as well as the strengthening of Rouble against US dollar during first 9 months of 2017 led to increase of Arbat development property value which is carried at cost nominated in Roubles;

• The increased amount of borrowings as of 30 September 2017 is caused by the fact that bond interest payments due on 30 September were paid on 2 October 2017 (first business day after the due date - in line with the prospectus);
  

• $30 million contingent liability in respect to the acquisition of Hermitage Plaza was paid in October 2017.

Significant Q3 2017 Income and Expense Items

Net Rental Income, US$		30.09.2017	30.09.2016	Change YoY
	Berlin House	10,077,517	12,149,964	(2,072,448)
	Geneva House	10,095,125	10,521,763	(426,637)
	Polar Lights	9,024,639	10,338,847	(1,314,207)
	Hermitage Plaza	19,389,554	20,289,404	(899,851)
	City Gate	3,065,250	-	3,065,250
	Magistral'naya	478,386	379,400	98,986
	Total	52,130,471	53,679,378	(1,548,906)

YoY changes in Income/Expense Items, US$		30.09.2017	30.09.2016	Change YoY
	Net foreign exchange  loss	(5,283,173)	(60,401,218)	55,118,045
	Finance costs	(22,539,286)	(26,533,483)	3,994,197

Significant Q3 2017 changes in Financial Position

Assets,  US$		30.09.2017	31.12.2016	Change
	Cash & cash equivalents	55,022,277	41,378,278	13,643,999
	Assets under development	81,224,096	72,855,882	8,368,214
Liabilities, US$		30.09.2017	31.12.2016	Change
	Borrowings (LT & ST)	489,464,754	480,934,738	8,530,016
	Accounts payable and accrued expenses	48,048,763	60,122,219	(12,073,456)

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Eastern Property Holdings Limited (EPH)
Valartis Asset Management SA Geneva Switzerland

WKN: 250817;ISIN: VGG290991014;