Net Asset Value (NAV)

· Net Asset value was EUR 0.47 (NOK 4.67) per share, being 3.8% lower compared to the end of the third quarter 2018.

· The year-end 2018 valuation was concluded by Knight Frank and resulted in a 2.6% reduction of the portfolio's fair value.

Operational highlights

· A conditional sale of Balada Market (No.6 on the list) and 1.5 hectares of the Industrial Park (No.4 on the list) was agreed during December 2018. On the Lake Side plot (No.1 on the list) the sale of a minor plot has been agreed at a satisfactory price, subject to securing all outstanding permits.

· In 2018, RomReal received a tax claim in excess of EUR 1.7 million. There is some communication with the Central Tax Authorities, but no conclusion yet. If the Tax Authorities do not reach a decision by 25th June 2019, the Company reserves its right to proceed in a lawsuit against the the Tax Authorities in a Civil Court. A follow-up meeting with the Tax Authorities has been agreed for the 13th March 2019.

Financial Results

· Net Result for the quarter was EUR 0.78 million loss compared to a EUR 1.18 million gain in 4Q 2017. Operating cash flow for the quarter was a negative EUR 0.31 million compared to minus EUR 0.44 million in the same period last year. This includes an investment cost of EUR 0.13 million, mostly on infrastructure work related to the Lake Side project.

· At the end of the quarter, the Company had a cash position of EUR 3.5 million plus a total of EUR 0.89 million in unsettled receivables related to binding sales agreements, totalling at about EUR 4.4 million or about EUR 0.1 per share.

Macro and real estate market highlights

• In the last quarter of 2018, the Romanian economy grew by 4.1 percent (gross series) and by 4 percent (seasonally adjusted data) compared with the last quarter of 2017. Compared with Q3 2018, Romania's GDP rose by 0.7 percent in Q4 2018, the 9th quarter in a row of increase.
• According to the online platform imobiliare.ro, the fourth quarter of 2018 witnessed a slight increase terms of residential prices growth of 1.5%, resulting in a total increase of around 6.4% compared to the same period of 2017. Equally, in Bucharest apartment prices went up 1.2% on average during the last quarter of 2018. Prices in Constanta have reached in December 2018 EUR 1,117 /sqm, a 2% increase since the beginning of the current year. Nonetheless, the prices are still 30% less than they were at their peak in June 2008.

A recorded investor presentation webinar will be made available by 10:00am Friday 22 February 2019 at www.romreal.com