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Quarterly Update Announcement
AREIT PROP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2021/837953/06)
("aReit Prop" or "the Company")
ISIN Code: ZAE000306585 | JSE Code: APO
QUARTERLY UPDATE ANNOUNCEMENT - SUSPENSION
In terms of paragraph 1.11(c) of the JSE Listings Requirements, the Company is required to provide
shareholders with an update regarding the current state of affairs of the Company until the
suspension of its listing is lifted.
Audits and Annual Financial Statements
The Company continues to engage with prospective audit firms with a view to appointing an
auditor capable of expediting the completion of the outstanding audits. The Audit Committee
remains focused on finalising the auditor appointment process as soon as practicable. The
Company is also engaging with the JSE in this regard due to the delays and difficulties in
appointing an audit firm.
The JSE had recently considered the removal of the listing but then elected to try to assist the
Company through engaging with IRBA on the review of mid-sized firms. Part of the difficulty in
appointing a new auditor is the larger firms' perception of risk due to the ongoing suspension and
late financial statements as well as the JSE Pro-active Monitoring Review and accounting
treatment surrounding the leasehold properties, which indicated an upward valuation and
restatement of the 31 December 2022 results versus independent property valuations, which
indicated an impairment of the properties, as noted in the initial trading statement published on
8 April 2025.
The annual financial statements ("AFS") for the financial years ended 31 December 2023 and
31 December 2024 have been prepared, pending any required audit adjustments arising from the
audit of the 2023 AFS and the former auditor's consideration of its reappointment. Preparation of
the Company's financial information for the year ended 31 December 2025 remains in progress.
Operations
The Cresta Hotel is performing well, with the Company earning variable income.
The lease of the Lady Hamilton has changed from medical suites to student accommodation,
mainly servicing international students for whom the location is ideal.
Management advises of a dispute with a significant tenant around maintenance of air
conditioning units, the normal maintenance of which is required by the tenant in terms of the
lease. The tenant is requesting replacement of air conditioners, which were new on signing of the
lease. The tenant has been withholding lease payments. However, external legal advice is being
obtained, and the Company is evaluating the potential impact of the matter on its financial
reporting. At this stage, the dispute is not expected to cause any negative financial impact as the
lease conditions are clear and the Company has a parent guarantee.
General
The Board continues to evaluate strategic alternatives available to the Company while
progressing the steps required to restore compliance with the JSE Listings Requirements. Where
appropriate, and should any developments become disclosable in accordance with the JSE
Listings Requirements, shareholders will be advised in due course.
The Board will also be considering the potential delisting of the Company but will only take this
decision once the financial reporting has been brought up to date. This consideration is partly
due to the technical IFRS® accounting treatment and associated costs, versus what should be a
simple business model of four invoices per month in terms of the four lease agreements plus
variable income, less listing expenses. A further consideration is the loss of REIT status due to the
late financial statements, which has tax implications for the Company.
The Company will become compliant with the JSE Listings Requirements once it has published its
audited annual financial statements for the financial years ended 31 December 2023,
31 December 2024 and 31 December 2025, distributed the corresponding annual reports to
shareholders, published its interim results for the six months ended 30 June 2024, 30 June 2025 and
30 June 2026.
The Board remains committed to restoring compliance with the JSE Listings Requirements and will
continue to provide shareholders with quarterly updates until the suspension is lifted.
BY ORDER OF THE BOARD
Cape Town
4 August 2026
Sponsor
AcaciaCap Advisors Proprietary Limited
Date: 05-08-2026 10:12:00
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