MAS Real Estate Inc (JSE:MSP) News - Voluntary trade update and pre-closing statement MAS P.L.C. Registered in Malta Registration number C99355 JSE share code: MSP ISIN: VGG5884M1041 LEI code: 213800T1TZPGQ7HS4Q13 (‘MAS‘, ’the Group‘ or ’the Company’) VOLUNTARY TRADE UPDATE AND PRE-CLOSING STATEMENT Introduction This voluntary announcement is a pre-close update prior to release of MAS’ financial results for the six months ending 31 December 2021 updating shareholders on operations, progress concerning strategic objectives and Covid-19 restrictions. Unless otherwise stated, figures are presented on a proportionate consolidated basis. The Group is a green property owner and operator focused on Central and Eastern Europe (‘CEE‘), with investments in retail assets in Romania, Bulgaria, and Poland. MAS also benefits from exposure to high-quality commercial and residential developments via the Development Joint Venture (‘DJV‘)1 with partner Prime Kapital. Operations Information regarding Central and Eastern European gross leasable area (‘GLA‘) affected by restrictions, like-for- like (‘LFL‘) footfall (compared to 2019), LFL tenants’ sales (compared to 2019), income entitlements (including invoicing, waivers and deferrals), collection rates (collections compared to invoicing) and pro forma collection rates (collections compared to the total expected income disregarding Covid-19’s impact) for the five-months ended 30 November 2021, is detailed in Table 1 (all figures reported 16 December 2021). Table 1: Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Total Open GLA(2) % 97 97 96 71 9 74 Restricted GLA(3) % 3 3 4 29 91 26 Closed GLA(4)4 % - - - - - - Footfall (2021 compared to 2019) % 96 94 93 86 60 86 Open-air malls % 108 102 101 92 64 93 Enclosed malls % 84 86 84 78 55 78 Tenants’ sales per m2 (2021 compared % 108 107 105 102 74 99 to 2019) Open-air malls % 118 113 115 111 78 107 Enclosed malls % 96 100 93 89 67 89 Total pre-pandemic income expectation €m 4.1 4.1 4.1 4.1 4.1 20.5 Income waived, deferred, or suspended €m - - - - 0.1 0.1 Due income (invoiced) €m 4.1 4.1 4.1 4.1 4.0 20.4 Collection rate % 99 99 99 96 93 97 Pro forma collection rate % 98 98 98 96 93 97 1 DJV is an abbreviation for a separate corporate entity named PKM Development Limited (PKM Development), an associate of MAS since 2016, with independent governance. MAS owns 40% of the ordinary share capital of PKM Development, an investment conditional on it irrevocably undertaking to provide preference share capital to PKM Development on notice of drawdown. MAS’ undertakings to PKM Development arose prior to Prime Kapital’s founders joining MAS’ Board in November 2019 and are unaffected. By 30 November 2021, MAS had invested €283.1million in preference shares and had an obligation of €136.9million outstanding (figures not proportionally consolidated). The balance of the ordinary share capital in PKM Development was taken up by Prime Kapital in 2016 for €30million in cash, and, in terms of applicable contractual undertakings and restrictions: (i) is not permitted to undertake real estate development in CEE outside of PKM Development until the DJV’s capital commitments are fully drawn and invested, or 2025; (ii) contributed secured development pipeline to PKM Development at cost; (iii) takes responsibility for sourcing further developments, and (iv) provides PKM Development with all necessary construction and development services via integrated in-house platform. 2 GLA open for trade without restriction. 3 GLA open for trade subject to restrictions (computed on a pro rata basis to reflect days with restrictions). 4 GLA closed for trade (computed on a pro rata basis to reflect closures). Until October 2021, trading in all Central and Eastern European countries where the Group operates was mostly unaffected by social distancing measures. Romania and Bulgaria are the European Union countries with the lowest vaccination rate. An increase in infections during September led Romanian authorities to strengthen restrictions, and both countries introduced significant restrictions on 25 October, making the presentation of a Covid-19 certificate (proving either vaccination or recovery) mandatory prior to entering a shopping centre. Infection rates in Romania decreased during November and restrictions were eased on 9 December 2021, extending access to customers presenting a negative Covid-19 test. Footfall in CEE was robust for the first four months of the 2022 financial year and decreased significantly once severe restrictions in Romania and Bulgaria were reintroduced. Similarly, tenants’ sales have continued to exceed pre-pandemic levels, but were negatively impacted in these countries from November, not to the same extent as footfall. Pro forma collection rates were excellent, approaching pre-pandemic levels. Although management expect collection rates for November and December 2021 to be affected by restrictions introduced October 2021, the pro forma collection figure for November should be considered with caution as collection efforts are ongoing. In respect of leasing, new tenants and extensions were generally signed at similar, or above, pre-pandemic rental levels, resulting in occupancy of Central and Eastern European assets increasing to 94.4% on 30 November 2021 (93.2% on 30 June 2021). Operations, including collections, in Western Europe (‘WE’) remained consistent with the six-months ended 30 June 2021. Developments, extensions and refurbishments Growing MAS’ investment in new, quality income properties and improving sustainable future distributions through exposure to residential developments rolled-out by joint-venture partner Prime Kapital remain two strategic priorities aimed at maximising total long-term returns from property investments on a per share basis. Barlad Value Centre (30 November 2021) and Prahova Value Centre (3 December 2021), the DJV’s third and fourth retail developments completed since the pandemic started, have opened with high occupancy rates (99% and 96% respectively). The contractual breach by one of the two sellers in respect of Arges Mall development (reported previously) was beneficially settled, and leasing continued with significant interest from national and international tenants. All other developments previously reported continue broadly in accordance with expectations and Prime Kapital has identified and secured, via the DJV, additional commercial and residential pipeline estimated at €182.3million and €512.7million, respectively, at cost. While some projects are subject to due diligence, all are subject to zoning and/or permitting. Further details on the newly secured pipeline will follow in due course. Asset sales in WE Additional sales of assets in WE with an aggregate value of €53.6million have been contracted to date, compared to the most recent aggregate book values of €44.4million. This includes the completed disposals of Adagio Hotel (UK), Malling Brooks land holding (UK) and contracting the sale of the Gotha retail asset (Germany), closing subject to ordinary German pre-emption rights, but excludes the New Uberior House office property (UK) sale previously reported, which was completed 26 August 2021 and contracted prior to 30 June 2021. MAS’ remaining Western European assets held for sale are Flensburg Galerie (Germany), Arches street retail units (UK) and Langley Park land holding (UK). These assets had a combined book value of €82.7million with €42.8million secured bank debt outstanding on 30 June 2021. Strategy update MAS aims to maximise total long-term returns from property investments on a per share basis by focusing on capital allocation, operational excellence, sensible leveraging and cost efficiency, sustainably growing distributable earnings per share. As shareholders have previously been informed, MAS and Prime Kapital, via the DJV, have adopted ambitious growth targets and quantified strategic objectives, which are achievable within the current capital base, while maintaining a full pay out to shareholders of distributable earnings. Progress made to date, including the contribution of additional commercial and residential pipeline identified and secured in the DJV, means the Company is well positioned in relation to achieving stated objectives and long- term strategic targets, despite short-term disruption caused by Covid-19. 21 December 2021 For further information please contact: Dan Petrisor, MAS P.L.C. +40 741 184 921 Leon Allison, MAS P.L.C. +27 82 307 3667 Java Capital, JSE Sponsor +27 11 722 3050 Date: 22-12-2021 08:02:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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