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

Significant Q3 2017 changes in Financial Position