Second Quarter (Q2) 2019 Financial Results and Investor Presentation

RomReal hereby announces the second quarter 2019 financial results highlights:

Highlights Second Quarter 2019

Net Asset Value (NAV)

• Net Asset value pre any tax was EUR 0.47 (NOK 4.58) per share, being 0.3% lower compared to the end of the first quarter 2019.
• The year-end 2018 valuation was concluded by Knight Frank in February 2019, therefore no further changes were made to the value of the investment properties during the quarter.

Operational highlights

• During April 2019, RomReal signed the sale of 15,834sqm of land of its Centerpoint plot (No.4 on the list) for a total consideration of EUR 630,000. A partial down payment of EUR 63,000 has been received, with the difference to be collected in the coming quarters, subject to certain milestones.
• Constanta City Hall has issued a final decision, and there will be no additional payments to be paid to the Municipality in case the building is converted into a supermarket. The Balada EUR 2.5m (No. 6 on the list) pending sale is agreed concluded during October 2019, with an option to the buyer to delay payment until 15^th December 2019.
• Since the 1Q 2019 report, important legal progress has materialised in both the on-going EUR 1.7m tax-bill claim and the expropriation claim of land on the Mamaia North plot by the Navodari City Hall.

Financial Results

• Net Result for the quarter was EUR 138,000 gain compared to a EUR 605,000 gain in 2Q 2018. Operating cash flow for the quarter was a negative EUR 36,000 compared to a negative EUR 181,000 in the same period last year.
• At the end of the quarter, the Company had a cash position of EUR 3.2 million plus a total of EUR 750,000 in conditional instalment payments related to the binding sale agreement, totalling at close to EUR 3.95 million or about EUR 0.09 per share.

Macro and real estate market highlights

• Romania's gross domestic product (GDP) increased by 4.7% year-on-year in the first half of 2019, according to the flash estimate published by the National Statistics Institute on Wednesday, August 14. This represents a slight slowdown compared to the 5.1% growth at the end of 1Q 2019. The growth is mainly driven by the internal consumption, while at the same time the economies in Western Europe which are Romania�s main export markets are facing a slowdown.
• The residential prices continue to witness a relatively flat evolution into the second quarter. Exception is Cluj-Napoca, where the upward trend continues, growth since beginning of 2019 representing circa 3.2%. In Constanta, prices have remained flat between the end of Q1 2019 (EUR 1,135 /sqm) and the end of Q2 2019 (EUR 1,130/sqm)

An investor presentation webcast will be made available on RomReal's webpage www.romreal.com by 10:00am EEST on Friday 30 August.

For further information please contact:

Harris Palaondas

Investor Relations

investors@romreal.com

This information is subject to the disclosure requirements pursuant to the section 5-12 of the Norwegian Securities Trading Act

Attachments

• RomReal_Q2_2019_Report
• RomReal - Q2 2019 Presentation

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