LETLOLE LA RONA : UNAUDITED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2023

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2023

Debenture interest per linked unit (thebe)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2023

Continuing Operations Revenue

Contractual revenue

Straight line lease rental adjustment Operating cost recoveries

Other income

Movement in credit loss allowances Other non operating gains

Property related expenses Administrative expenses Operating Profit Finance Income Finance costs

Gain on disposal of equity accounted investment Share of profit from associate

Profit before fair value adjustment

Fair value adjustment of investment properties As per valuation

Straight line lease adjustment Profit before tax

Taxation

Profit from continuing operations Profit from discontinued operations

Total comprehensive income for the year

Total comprehensive income attributable to: Owners of the Company (date acquired 04/10/2023) Non-controlling interests

Number of linked units in issue at end of the year Weighted average number of linked units in issue Earnings per linked unit (thebe)

Earnings per linked unit is calculated based on the average number of linked units in issue and total comprehensive income for the year, adjustedby the taxation on debenture interest credited to thestatement of changes in equity of: Distribution per linked unit (thebe)

Dividends per linked unit (thebe)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023

ASSETS Non-current assets Investment properties Operating lease asset Right of use asset Investment in associates Investment in subsidiary Goodwill

Loan to associate Investments at fair value Property, plant & equipment Deferred tax

Deferred taxation recoverable - related party Total non-current assets

Current assets

Taxation refundable

Trade and other receivables Cash and cash equivalents

Non-current assets held for sale Total current assets

Total Assets

EQUITY AND LIABILITIES Capital and Reserves Stated capital Debentures - linked units Retained income

Equity attributable to owners of the parent Non-controlling interests

Total Capital and Reserves

Liabilities

Non- Current Liabilities Long term borrowings Deferred taxation Lease liability

Total Non- Current Liabilities

Current Liabilities

Debenture interest and dividend payable Trade and other payables

Current portion of borrowings Current portion of lease liability Total Current Liabilities

Total Equity and Liabilities

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2023

Balance at 01 July 2022

Total profit and comprehensive income for the year Dividends declared

Debenture interest declared

Taxation attributable to debenture interest Balance at 31 December 2022

Total profit and comprehensive income for the year Dividends declared

Debenture interest declared

Taxation attributable to debenture interest Balance at 30 June 2023

Equity attributable to non-controlling Interest Total profit and comprehensive income for the year attributable to owners of the company

Total profit and comprehensive income for the year attributable to noncontrolling interests Distribution declared - Subsidiary Dividends declared

Debenture interest declared

Taxation attributable to debenture interest Balance at 31 December 2023

GROUP UNAUDITED 6 months to Dec-2023	COMPANY UNAUDITED 6 months to Dec-2023	COMPANY UNAUDITED 6 months to Dec-2022	COMPANY AUDITED 12 months to Jun-2023
P 76,511,094	P 53,596,257	P 50,185,445	P 102,146,703
71,062,494 632,561 4,816,040	52,187,596 (605,470) 2,014,132	47,987,296 548,888 1,649,262	98,731,227 59,457 3,356,019
391,580 (821,769) (885,675) (9,124,772) (19,449,710)	82,939 (821,769) (885,675) (3,092,293) (18,278,235)	5,167,329 1,092,215 10,519 (5,314,019) (14,660,169)	1,612,156 1,508,589 10,897,813 (9,821,667) (31,889,850)
46,620,749 4,294,745 (22,411,415) 6,947,948 8,143,952	30,601,225 10,220,018 (19,796,754) 6,947,948 8,143,952	36,481,320 9,391,610 (17,314,338) - 13,796,362	74,453,744 20,734,401 (34,476,270) - 12,509,443
43,595,978 28,421,710	36,116,388 28,421,710	42,354,954 7,311,378	73,221,318 46,097,737
27,816,240 605,470	27,816,240 605,470	7,860,266 (548,888)	46,157,194 (59,457)
72,017,688 4,007,185	64,538,098 3,366,443	49,666,332 (9,899,709)	119,319,055 (18,136,185)
76,024,874 4,071,975	67,904,540 4,071,975	39,766,623 5,413,411	101,182,870 9,118,449
80,096,849	71,976,515	45,180,033	110,301,319
74,408,511 5,688,338	280,000,000 280,000,000 27.70	280,000,000 280,000,000 18.08	280,000,000 280,000,000 43.72
80,096,849
280,000,000 280,000,000 30.60
85,676,049	77,555,715	50,621,038	122,397,799
9.11	9.11	9.11	19.74
0.05 9.06	0.05 9.06	0.05 9.06	0.10 19.64

GROUP UNAUDITED Dec-2023 P	COMPANY UNAUDITED Dec-2023 P	COMPANY UNAUDITED Dec-2022 P	COMPANY AUDITED Jun-2023 P
1,753,847,848 34,672,649 3,533,330 57,308,136 - 3,986,858 100,427,891 6,250,000 4,382,288 10,271,605 3,136,699	998,011,403 20,065,219 3,533,330 57,308,136 340,322,482 - 100,427,891 6,250,000 1,308,488 10,271,605 3,136,699	914,837,710 21,052,291 399,599 238,540,392 - - 94,288,121 6,250,000 1,699,383 13,475,936 3,205,026	967,983,900 20,716,721 98,348 234,624,422 - - 99,224,484 6,250,000 1,607,628 12,843,591 3,200,048
1,977,817,304	1,540,635,252	1,293,748,458	1,346,549,142
4,038,102 16,110,748 94,132,784	3,814,191 5,496,403 78,375,203	2,050,805 5,989,945 63,811,078	2,992,181 6,091,038 66,797,614
114,281,634 42,640,000	87,685,797 42,640,000	71,851,828 103,900,000	75,880,833 96,500,000
156,921,634	130,325,797	175,751,828	172,380,833
2,134,738,938	1,670,961,049	1,469,500,286	1,518,929,975
2,718,884 405,113,547 557,422,528	2,718,884 405,113,547 557,941,620	2,718,884 405,113,547 464,011,339	2,718,884 405,113,547 505,885,904
965,254,958 245,300,036	965,774,051 -	871,843,770 -	913,718,335 -
1,210,554,996	965,774,051	871,843,770	913,718,335
724,808,345 128,945,897 3,024,480	589,661,743 58,045,618 3,024,480	477,969,166 68,544,723 -	476,346,426 69,626,596 -
856,778,721	650,731,841	546,513,889	545,973,022
25,500,000 35,373,118 5,948,054 584,050	25,500,000 22,423,054 5,948,054 584,050	25,500,000 19,992,098 5,153,503 497,027	29,764,000 24,111,238 5,237,180 126,200
67,405,222	54,455,158	51,142,628	59,238,618
2,134,738,938	1,670,961,049	1,469,500,286	1,518,929,975

Stated capital P	Debentures P	Retained Income P	Non-controlling Interest P	Total P
2,718,884	405,113,547	438,752,106	-	846,584,537
- - - -	- - - -	45,180,033 (140,000) (25,360,000) 5,579,200	- - - -	45,180,033 (140,000) (25,360,000) 5,579,200
2,718,884	405,113,547	464,011,339	-	871,843,770
- - - -	- - - -	65,121,280 (140,000) (29,624,000) 6,517,280	- - - -	65,121,280 (140,000) (29,624,000) 6,517,280
2,718,884	405,113,547	505,885,904	-	913,718,335
- - - - - - -	- - - - - - -	- 74,408,511 - (2,951,087) (140,000) (25,360,000) 5,579,200	245,660,611 - 5,688,338 (6,048,913) - - -	245,660,611 74,408,511 5,688,338 (9,000,000) (140,000) (25,360,000) 5,579,200
2,718,884	405,113,547	557,422,527	245,300,036	1,210,554,996

Cash flows from operating activities Profit before taxation

Profit/(loss) before taxation from discontinued operationsAdjustments for:

Fair value adjustment of investment properties Gain on disposal of equity accounted investment Share of profit from associate

Loss/(profit) on sale of plant & equipment Loss/(gain) on investment property Finance costs

Finance income Depreciation expense

Movement in credit loss allowances Movements in operating lease assets

Operating income before working capital changes

Working capital changes

(Increase)/decrease in trade and other receivables Increase/(decrease) in trade and other payables Taxation paid

Net cash generated from operating activitiesCash flows (used in)/from investing activities Additions to investment properties

Proceeds from sale of investment property Distribution from associate

Investment in associate Investment in subsidiary Cash and bank at acquisition Other receivable

Finance income

Acquisition of property, plant & equipment Loan to associate

Net cash used in investing activities

Cash flows used in financing activities Net movement in borrowings

New borrowings

Finance costs Dividends paid Debenture interest paid Payment on lease liability

Net cash generated from/(used in) financing activitiesNet increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the period

SEGMENTAL REPORTING

CONSOLIDATED SEGMENTAL STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2023 - UNAUDITED

Segment revenue

Other income

Movement in credit loss allowance Other non operating losses Property related expenses Administrative expenses Operating profit Finance income Finance costs

Gain on disposal of equity accounted investment Share of profit from associate

Fair value gain on investment property net of adjustment resulting from straight lining Tax expense

Profit from continuing operations Discontinued operations

Profit from discontinued operations Profit for the period

SEGMENTAL STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2023 - UNAUDITED

Segment revenue

Other income

Movement in credit loss allowance Other non operating losses Property related expenses Administrative expenses Operating profit Finance income Finance costs

Gain on disposal of equity accounted investment Share of profit from associate

Fair value gain on investment property net of adjustment resulting from straight lining Tax expense

Profit from continuing operations Discontinued operations

Profit from discontinued operations Profit for the period

SEGMENTAL STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2022 - UNAUDITED

Segment revenue

Other income

Movement in credit loss allowance Other non operating losses Property related expenses Administrative expenses Operating profit Finance income Finance costs

Dividends per linked unit (thebe)

Fair value gain on investment property net of adjustment resulting from straight lining Tax expense

Profit from continuing operations Discontinued operations

Profit from discontinued operations Profit for the period

CONSOLIDATED SEGMENTAL STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023 - UNAUDITED

Investment property including operating lease asset Non-current assets held for sale

Other assets

Total Assets

31 DECEMBER 2022 - UNAUDITED

Investment property including operating lease asset Non-current assets held for sale

Other assets

Total Assets

30 JUNE 2023 - AUDITED

Investment property including operating lease asset Non-current assets held for sale

GROUP UNAUDITED 6 months to Dec-2023 P	COMPANY UNAUDITED 6 months to Dec-2023 P	COMPANY UNAUDITED 6 months to Dec-2022 P	COMPANY AUDITED 12 months to Jun-2023 P
72,017,688 4,071,975 (28,421,710) (6,947,948) (6,637,548) - (2,814,325) 22,411,415 (4,294,744) 601,257 821,769 651,503	64,538,098 4,071,975 (28,421,710) (6,947,948) (6,637,548) - 2,814,325) 19,796,754 (10,220,018) 758,785 821,769 651,503	49,666,332 5,413,411 (7,664,394) (7,664,394) (13,796,362) 3,161 - 17,336,386 (9,391,610) 672,880 (1,092,215) (465,871)	119,319,055 9,118,449 (46,268,986) (46,268,986) (12,509,443) 35,722 - 34,476,270 (20,734,401) 1,372,579 (1,508,589) (164,240)
51,459,333 (1,980,936) 1,330,787 (815,005)	35,597,336 (227,134) (1,688,184) (822,010)	40,681,717 28,902,361 (8,140,603) (139,214)	83,136,416 2,597,271 (3,829,492) (1,080,590)
49,994,179	32,860,009	61,304,261	80,823,605
(1,911,926) 53,000,000 1,506,404 65,217 (149,485,917) 12,078,221 - 4,294,745 (1,691,539) (1,203,407)	(1,559,759) 53,000,000 1,506,404 65,217 (149,485,917) - - 10,220,018 (132,137) (1,203,407)	(7,709,734) - 6,090 (7,663,384) - - - 9,391,610 (928,210) (94,288,121)	(14,817,394) - 3,080,445 (8,108,689) - - 26,620,370 20,734,401 (1,267,464) (99,224,484)
(83,348,202)	(87,589,581)	(101,191,748)	(72,982,815)
(6,099,809) 120,126,000 (22,411,415) (148,999) (30,391,988) (384,596)	(6,099,809) 120,126,000 (19,796,754) (140,000) (27,397,677) (384,596)	7,004,516 - (17,314,338) (140,000) (27,752,030) (373,239)	(2,534,548) 8,000,000 (34,476,270) (280,000) (53,304,000) (722,018)
60,689,193	66,307,164	(38,575,091)	(83,316,836)
27,335,170 66,797,614	11,577,589 66,797,614	(78,462,582) 142,273,660	(75,476,046) 142,273,660
94,132,784	78,375,203	63,811,078	66,797,614

Other assets

Total Assets

Corporate	Commercial	Industrial	Residential	Total
P	& Retail P	P	P	P
- 21,039 (821,769) (885,675) (884,472) (17,460,879)	33,365,477 319,355 - - (7,144,399) (1,278,884)	43,145,618 51,186 - - (1,095,901) (709,947)	- - - - - -	76,511,094 391,580 (821,769) (885,675) (9,124,772) (19,449,710)
(20,031,756) 4,223,327 (13,319,082) 6,947,948 8,143,952 - 4,007,186	25,261,549 71,418 (7,800,263) - - 1,429,557 -	41,390,956 - (1,292,070) - - 26,992,153 -	- - - - - - -	46,620,749 4,294,745 (22,411,415) 6,947,948 8,143,952 28,421,710 4,007,186
(10,028,426) -	18,962,261 2,323,516	67,091,039 -	- 1,748,459	76,024,874 4,071,975
(10,028,426)	21,285,777	67,091,039	1,748,459	80,096,849
- 21,039 (821,769) (885,675) (884,472) (17,460,879)	10,450,640 10,714 - - (1,111,920) (107,409)	43,145,618 51,186 - - (1,095,901) (709,947)	- - - - - -	53,596,257 82,939 (821,769) (885,675) (3,092,293) (18,278,235)
(20,031,756) 10,220,018 (13,319,082) 6,947,948 8,143,952 - 3,366,443	9,242,025 - (5,185,602) - 1,429,557 -	41,390,956 - (1,292,070) - 26,992,153 -	- - - - - -	30,601,225 10,220,018 (19,796,754) 6,947,948 8,143,952 28,421,710 3,366,443
(4,672,479) -	5,485,980 2,323,516	67,091,039 -	- 1,748,459	67,904,540 4,071,975
(4,672,479)	7,809,496	67,091,039	1,748,459	71,976,515
- 5,130,929 1,092,215 10,519 (437,754) (13,998,160)	9,701,068 16,600 - - (1,051,546) (134,673)	40,484,377 19,800 - - (3,824,719) (527,336)	- - - - - -	50,185,445 5,167,329 1,092,215 10,519 (5,314,019) (14,660,169)
(8,202,251) 9,391,610 (10,774,935) 13,796,362 - (9,899,709)	8,531,449 - (5,242,275) - 4,114,551 -	36,152,123 - (1,297,128) - 3,196,827 -	- - - - - -	36,481,320 9,391,610 (17,314,339) 13,796,362 7,311,378 (9,899,709)
(5,688,923) -	7,403,724 3,103,179	38,051,822 543,375	- 1,766,857	39,766,623 5,413,411
(5,688,923)	10,506,902	38,595,197	1,766,857	45,180,033
- - 276,061,353	990,451,044 - 20,099,651	798,069,453 - 6,913,770	- 42,718,948 424,719	1,788,520,497 42,718,948 303,499,493
276,061,353	1,010,550,695	804,983,223	43,143,667	2,134,738,938
- - 419,898,509	214,950,000 49,300,000 2,419,437	720,940,001 7,400,000 6,943,272	- 47,200,000 449,067	935,890,001 103,900,000 429,710,284
419,898,509	266,669,437	735,283,273	47,649,067	1,469,500,286
- - 431,157,855	223,847,133 49,300,000 507,771	764,853,488 - 1,962,155	- 47,200,000 101,573	988,700,621 96,500,000 433,729,354
431,157,855	273,654,904	766,815,643	47,301,573	1,518,929,975

• 1. OPERATIONAL OVERVIEW

  Sectoral Spread 31 December 2022 *

  In line with International Financial Reporting Standards (IFRS), we are proud to present our first set of 3.9%group financial statements which comprise of the Company and Group consolidated results. It must be

  noted that in the prior year, LLR did not prepare Consolidated Financial Statements and therefore for 3.7%comparability, the focus of the commentry is on the company accounts of December 2023 and December 2022.

  We are pleased to announce that during the period under review, our portfolio continued to demonstrate strong performance, with high occupancy rates of 99.15% as at 31 December 2023, an improvement from the previous year's 96.97%. The Company strives to give its shareholders security of income and in efforts to do so, we are proud to have signed a longterm lease (10 years) with one of our new tenants post

  year-end. We expect this, together with other leases that are up for renewal, to improve our lease expiry profile from the current level of 3.01years.

  As a result of the above as well as the Company's enhanced collection efforts, monthly collection rates have averaged above 100%, including arrears thus maintaining a healthy cash position and arrears within acceptable levels.

  In October 2023, the Company acquired an additional 25% shareholding in JTTM Properties (Proprietary) Limited (JTTM), the holding company of Railpark Mall, which resulted in JTTM becoming a subsidiary of the Company at a shareholding of 57.79%. This has significantly uplifted the value of our investment portfolio from the prior year's P1.4 billion to close at P1.6 billion as at 31 December 2023. As a result of this, at group level, the investment portfolio value increased from P1.5 billion to P2.0 billion.

• 2. FINANCIAL PERFORMANCE

  At a group level, our revenue closed the six months period at P77 million, a fair value gain of P28 million and profit before tax from continuing operations at P72 million, this is mainly due to the consolidation of the Railpark Mall results for the post acquisition period October 2023 to December 2023. The Group also realised a gain on the disposal of equity accounted investment of P6.9 million at the time of acquisition of the additional stake in JTTM.

  Strong performance was recorded at a company level with profit before tax from continuing operations up 30% year-on-year. Revenue from continuing operations increased by 9% driven by average annual lease escalations of 6-7%.

  In the prior year, the company experienced foreign exchange gains on the Orbit Africa Limited (OAL) (our property investment in Kenya) shareholder loan which was once off, thus resulting in a significant drop in other operating income year-on-year. Due to a significant increase in the cost of funding at both OAL and tenant level in Kenya since the time of investment in July 2022 to date, this has adversely impacted the performance of OAL, thereby resulting in cashflow challenges. We are currently reviewing our position on OAL as part of our ongoing investment performance monitoring process.

  Finance income increased on the back of strong performance from the investment in associates, coupled with efficient cash management strategies. Finance costs increased by 14%, driven by the increase in the bank loan by circa P120 million which was utilised to fund the acquisition of an additional 25% stake in JTTM in October 2023. Fair value gains increased significantly on the back of refurbishments that were done in the prior year as these were netted off against the gross revaluations on investment property.

• 3. DISTRIBUTION

  Unit holders are advised that the Board of Directors declared an interim distribution of 9.11 thebe per linked unit on 25 March 2024 in respect of the half year period to 31 December 2023, comprising of a dividend of 0.05 thebe and debenture interest of 9.06 thebe per linked unit. The declared distribution will be paid to linked unit holders registered in the books of the company at the close of business on 15th April 2024. The ex-div date is 11 April 2024. The Transfer Secretary will execute the distribution on or around the 25 April 2024. In line with the requirements of the Botswana Income Tax Act (CAP 52.01), withholding tax at the applicable rate will be deducted by the company from interest paid to unit holders unless they are specifically exempted

  6 months to December	2023	2022
  Linked units in issue	280m	280m
  Distribution per linked unit	9.11 thebe	9.11 thebe

• 4. GROUP INVESTMENT PORTFOLIO

Sectoral Spread 31 December 2023*

43%

* Includes assets held for sale

57%

* Includes assets held for sale

Commercial

Company Investment Portfolio P(m) as at 31 December 2023*

1600

1400

1200

1000

800

200

400 970

600

0

2018

2019

* Includes assets held for sale

• 5. BASIS OF PRESENTATION

  2020

  2021

  2022

  2023

  2024

  The summarised financial results have been prepared by applying the recognition and measurement criteria in accordance with the International Financial Reporting Standards ("IFRS") and interpretations issued by the IFRICS Interpretations Committee. In preparing the underlying financial statements from which these summarised financial results were extracted, all International Financial Reporting Standards and International Financial Reporting Interpretations Committee interpretations issued and effective for annual periods ended 31 December 2023 have been applied.

  In the preparation of the summarised financial results, the company has applied key assumptions concerning the future and other inherent uncertainties in recording various assets and liabilities. These assumptions were applied consistently to the financial results for the half year ended 31 December 2023. The assumptions are subject to ongoing review and possible amendments.

• 6. GOVERNANCE

  The Board of Directors recognises the need to conduct the business of the Company with utmost integrity and in accordance with generally accepted practices and endorses the internationally accepted principles of Corporate Governance and public responsibility.

• 7. BOARD CHANGES

  During the period under review, Mr. Mooketsi Maphane was appointed as Deputy Chairman of the Board effective 21 September 2023. As Deputy Board Chairman, Mr Maphane is responsible for assisting the Chairperson in the overall leadership and governance. At the Company's last Annual General Meeting (AGM) held on 14 December 2023, Mr Khuto Balosang and Mr Mooketsi Maphane retired by rotation in terms of section 20.9.1 of the company's constitution and being eligible they offered themselves for re-election. The two directors were unanimously re-elected into the board.

• 8. OUTLOOK

  Having had a successful first half of the 2024 financial year by executing on the growth and asset recycling strategy through the acquisition of the further stake in Railpark Mall, the conclusion of the sale of Moedi House and the ongoing sale of the sectional titles at Red Square Apartments, the group continues to explore opportunities for balance sheet growth and funding options that can be deployed to finance that growth. In addition to that, the Company took over the property and asset management services of JTTM in November 2023 so focus will also be on assimilating the group to ensure a smooth transition and enhance efficiencies in our processes.

  We would like to thank our valued stakeholders for their continued support and look forward to unlocking further value in the group.

  By Order of the Board

Mr. Khuto Balosang Chairman

Ms. Kamogelo Mowaneng Chief Executive Officer