Press Release: Eastern Property Holdings Limited (EPH): First Quarter 2017 Financial Update

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

31 May 2017, Road Town, Tortola, BVI

FINANCIAL HIGHLIGHTS

-- The performance of the Company's income-generating properties continues to demonstrate good profitability. During the first quarter 2017 EPH rental properties generated $19.24 million of net rental income (Q1 2016: $17.43 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;

-- The volatility of Rouble/US Dollar exchange rate continues to be one of the main factors affecting the Company's operating results;

-- Strengthening of Rouble against US dollar during Q1 2017 led to increase of Arbat development property value which is carried at cost nominated in Roubles;

Significant Q1 2017 Income and Expense Items

Net Rental Income 31.03.2017 31.03.2016 Change YoY Berlin House 4,081,620 3,910,323 171,297 Geneva House 3,404,942 3,639,876 -234,935 Polar Lights 3,378,898 3,326,352 52,546 Hermitage Plaza 6,485,583 6,423,991 61,592 City Gate 811,047 - 811,047 Magistral'naya 153,666 128,353 25,313 Total 18,315,756 17,428,896 886,859

YoY changes in Income/Expense Items 31.03.2017 31.03.2016 Change YoY Net foreign exchange loss -28,936,745 -34,696,378 5,759,633 Finance costs -7,015,376 -8,540,327 1,524,951

Significant Q1 2017 changes in Financial Position

Assets 31.03.2017 31.12.2016 Change Cash & cash equivalents 42,808,389 41,378,278 1,430,111 Assets under development 79,402,860 72,855,882 6,546,978

Liabilities 31.03.2017 31.12.2016 Change Borrowings (LT & ST) 480,878,856 480,934,738 (55,882) Accounts payable and accrued expenses 52,826,436 60,122,219 (7,295,783)

Eastern Property Holdings Ltd. is an investment company listed on SIX Swiss Exchange which holds interest in office, residential and retail properties. EPH is managed by Valartis International Ltd. a wholly-owned subsidiary of Valartis Group AG.

Additional information on Eastern Property Holdings is available by contacting Anna Bernhart Tel: +41 44 503 5400.

EPH - Q1 2017 - Financial Update: http://hugin.info/139905/R/2109561/801588.pdf

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Eastern Property Holdings Limited (EPH) via Globenewswire

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Eastern Property Holdings Limited (EPH)

Valartis Asset Management SA Geneva Switzerland

WKN: 250817;ISIN: VGG290991014;

http://www.easternpropertyholdings.com/ (END) Dow Jones Newswires

   May 31, 2017 14:00 ET (18:00 GMT)- - 02 00 PM EDT 05-31-17