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Lamda Scorecard 2020
Lamda Scorecard 2020 Lamda Scorecard 2020
Message from the CEO

Message
from the CEO

Dear Shareholders, 2020 was a year that left us with mixed emotions. During the year, we made significant progress in realising our vision for Hellinikon. We settled permit and legal issues which were pending for years, we finalized a significant part of the studies for infrastructure works, we proceeded with the architectural plans of important buildings, while we initiated a series of preliminary works including a number of demolitions within the premises of the former airport. On June 25th 2021, after 7 years, our vision, the largest urban redevelopment project of our time in Europe, is officially becoming a reality as a result of the transfer of HELLINIKON SA shares to Lamda Development.  

Over the previous period important pending issues have been resolved:

The Council of State rejected all petitions for annulment.

In addition, condition precedent related to the plot’s ownership were also met, with the Hellenic Parliament’s ratification, by a large majority, of the laws on the property distribution and establishment of surface rights as well as on the transfer of rights in rem for the Hellinikon land plot. Other issues, related to the condition precedent for the award of a casino license in the Hellinikon property have been also settled with HRADF, paving the way for the launch of the project.

We launched partnerships with leading companies in their respective sectors, namely the strategic cooperation with TEMES SA for the joint development of two modern luxury hotels and the respective tourism and residential complexes on the Hellinikon coastal front.

In July 2020, we completed with an overwhelming oversubscription the issuance through a Public Offering of a Common Bond Loan worth €320m. In excess of 10,000 Greek private investors participated in the issue. In April 2021, we updated the basic business terms of €1.16bn syndicated bank loans for the project developments of the first five years of the Hellinikon project. Considering also the successfully completed €650m share capital increase in December 2019, we are in a position to cover all financing needs for the first phase of the project. We are satisfied because these developments constitute a substantial vote of confidence in Lamda Development from the investing public, as well as from Eurobank and Piraeus Bank.

The transfer of shares of HELLINIKON SA to Lamda Development signifies the official launch of the project. Hellinikon is the vision of the Greece of tomorrow. It is our country’s largest investment wager. The most important driver of growth and recovery of the Greek economy following the prolonged period of economic recession as well as the ongoing pandemic crisis.

Yet 2020 was also a year of several challenges. Each of us was tested, others more and others less, while many sectors of economic activity faced the unprecedented challenges by the pandemic.
The pandemic created extreme and adverse conditions in the global and domestic economic activity. Healthcare protection became the top priority. In our shopping centers we complied strictly with all the measures imposed for the protection of our visitors and employees. We had to adapt our operations in just a few days, if not hours.

Among the significant restrictions imposed to retail activities, due to strict healthcare protocols, was the suspension of our shopping centres’ operations for more than 100 days in 2020.

The rent discounts, which following our decision to further support our partners who have stores in our shopping centres, exceeded the discounts imposed by law by 30 basis points, meaning that the aggregate discounts/support to our partners (both those imposed by law and those that were not) reached approximately 70%. The overall financial impact amounted to €0.28 per share.
At the same time, amid this adverse environment, the trust of our tenants was reconfirmed, as our shopping centres’ occupancy rate reached almost100%. We are not complacent. We continue to seek ways to maintain the high level of shopping and entertainment experiences offered at our shopping centres.
We took targeted actions to attract shoppers and bolster customer traffic – always ensuring safe conditions. The response from shopping centres’ visitors in just a few weeks after the reopening, confirmed the leading position of Lamda Development’s shopping centres.
This crisis once more showed us that we need to constantly prove our ability to meet the challenges of a continuously shifting environment with many unknown parameters. Looking at both the past and the future, we draw optimism from the exemplary way in which our country managed the pandemic. This helped strengthen the sense of trust within and beyond our country’s borders, enabling Greece, every day, to consolidate its position internationally as a safe investment and tourist destination.
The firm support of our shareholders and, in particular, of our majority shareholder Spyros Latsis, as well as the trust of our partners, propel us to achieve our common goals.
A big personal thank-you to our executives who, with singular dedication, adaptability and passion, work every day to realise our vision. I have experienced their dedication during all previous years, however their enthusiasm and their responsiveness during the pandemic, turned 2020 into a milestone year for Hellinikon.

Thank you!

Odisseas Athanasiou
CEO

2020 At a glance

Portfolio

Portfolio

1
owned shopping
and leisure centers in
Athens and
Thessaloniki
1
marina
(303 berths)
1,000sqm
total GLA
1bn
property portfolio
€1.bn
Net Asset Value (NAV)
Undisputed leader in the
shopping malls sector
and one of the largest
institutional real-estate
investor in Greece
Human capital

Human capital

1
total number
of employees
of Lamda Group
1,0
training hours
Responsibility

Responsibility

1,1,1kg
of waste recycled

The Hellinikon

01
The Hellinikon
The Hellinikon
The Hellinikon
The Hellinikon constitutes one of the largest greenfield urban regeneration projects in Europe, and the most ambitious development project ever undertaken in Greece. It has been specifically designed to positively impact the local, regional, and national economy, by adding significant new investments, employment opportunities, and various uses in key areas such as tourism, culture, entrepreneurship, R&D, and the environment. A project developed around a world-class urban park and a coastal front fully accessible to the public, the Hellinikon combines diverse range of residential developments, office spaces, retail venues and leisure activities. The Hellinikon will be the country’s first smart, sustainable city, and Greece’s sustainability ambassador across the globe.
1,0,000sqm
total land area
1,0,000sqm
total buildable area
1bn
total investment plan
for the Hellinikon over
the next 20 years
1.0km
coastal front
1,000,000sqm
Metropolitan Park
1,000sqm
open green spaces
Less than 1%
coefficient coverage
1km
newly developed
free access beach

The Metropolitan Park

The Hellinikon presents a unique opportunity to rethink how cities are planned. At its core lies a vast Metropolitan Park, competing with London’s Hyde Park and New York City’s Central Park in size, beauty, and functionality. It is thus set to become a new landmark for the city of Athens and a pole of attraction for visitors and residents across the Greek capital region alike. Open and easily accessible to the public for unending hours of pleasure, the Park will consist of seven interconnecting parts, each designed with a distinct style and features in mind, linking the city to the sea.

1,000,000sqm
Metropolitan Park
1km
path network for
pedestrians and cyclists

Economic impact

The Hellinikon is a multi-faceted project whose impact expands over many sectors of the economy. One of the largest private investments ever pursued in Greece, it is expected to accelerate the country’s economic development, both on a macroeconomic and microeconomic basis. Notably, it provides Athens with a unique opportunity to establish itself as a world-class tourist destination throughout the year, attracting over one million additional tourists to the Greek capital region and boosting the average stay and spending.

The Hellinikon
1bn
total investment
The Hellinikon
1%
contribution
to GDP
The Hellinikon
1,000
new jobs during
construction
The Hellinikon
1,000
new jobs during
operation
The Hellinikon
1bn
in tax revenues
The Hellinikon
1m
visitors expected annually

Smart City

The Hellinikon has been designed to incorporate smart city concepts and cutting-edge technologies.

Smart
Metropolitan Park

Central operational efficiency; irrigation automation and smart water management; smart street lighting; safe park; sustainable transport options (ebus/ebikes); traffic management; lower energy demand

Smart Digital Infrastructure

Helps monitor different parameters of the city; analyze the collected data; support the adoption of technology; a Wi-Fi connected city; promote an innovative and entrepreneurial culture

Smart Buildings

Improve the comfort of users; optimize usage of utilities

Smart Energy

Optimize energy distribution and usage; enable community-based energy monitoring

Waste Management

Improve the efficiency of waste collection, pickup, separation, reuse and recycle

Smart Mobility

Optimize traffic conditions; customized traffic solutions; reduce environmental footprint; intelligent transport system and traffic management; develop more pedestrian and bicycle-friendly routes

Smart Water management

Less water consumption; reduced cost and leakage; increase reliability and transparency of water distribution

Key Assets

02
Key Assets
Key Assets
Key Assets
Key Assets
Key Assets
Key Assets

The Mall Athens

The Mall Athens is the largest shopping and entertainment center in Greece. It commenced operations in November 2005, introducing a new era in shopping, dining, and entertainment. Offering a series of distinctive Greek and international brands and a wide variety of recreational options, it has since become the ideal meeting point for residents and families, as well as for visitors of the Greek capital. Strategically located in the northern suburb of Maroussi, next to the Athens Olympic Stadium and public transport junctions, The Mall Athens includes about 200 retail and entertainment units, spreading over five levels, with combined GLA of 58,500 sqm, as well as 2,000 underground parking spaces. It is famous for its contemporary architecture and novel style, its practical layout, and the high-quality shopping and entertainment options offered to visitors.

For more information, visit www.themallathens.gr

Key Assets
1,0sqm
GLA
Key Assets
1m
fair market value
Key Assets
1
stores
Key Assets
1%
average occupancy
rate (2020)
Key Assets
1,000
underground
parking spaces
Key Assets
Key Assets

Golden Hall

Golden Hall is a high-end shopping and leisure center with an unprecedented offering that has made it a point of reference for quality shopping in Greece. Located on Kifissias Avenue, next to the Athens Olympic Stadium, Golden Hall has a GLA of 52,500 sqm, spreading over three levels. It hosts 147 stores with world-famous brands – many of which were introduced for the first time to the Greek market through Golden Hall – and notable Greek ones, along with multiple restaurants and cafés as well as Xplore, the largest fantasy, entertainment, and education venue for the entire family.

Golden Hall is also home to the Athens Olympic Museum, officially inaugurated in May 2021. Golden Hall has been designed to transform every visit into an enjoyable and memorable experience. The beautiful courtyard, the elegant environmentally friendly design, and atmospheric interior, as well as the quality of service offered by highly skilled staff, create a shopping experience of the highest standard, while the two-level, 1,600-seat underground car park makes the building easily accessible by car. Standing out for its top-notch architecture, Golden Hall has received the top prize at the European Shopping Center Awards (ICSC).

For more information, visit
www.goldenhall.gr, www.x-plore.gr
and www.athensolympicmuseum.org .

Key Assets
1,0sqm
GLA
Key Assets
1m
fair market value
Key Assets
1
stores
Key Assets
1%
average occupancy
rate (2020)
Key Assets
1,1
parking spaces
Key Assets
Key Assets
Key Assets

The Athens Olympic
Museum at Golden Hall

The creation of the Athens Olympic Museum was initiated by Lamda Development S.A., aiming to host an important part of the Olympic heritage of the country, as well as signifying the unique contribution of Greece to the establishment of the Olympic Movement and accenting Athens as the Olympic Capital. The Museum showcases the Principles and Values, the structure of the Olympic Movement, the significance of Global Peace, the Sports and the Athletes and the Greek Olympic and Paralympic Athletes. The idea of the “Endeavour”, the effort to surpass oneself in all aspects of life, was the inspiration behind the design
of the Permanent Exhibition of the Museum. The Athens
Olympic Museum invites the visitors to enjoy a unique journey in the history of the Olympic Games, through a chronological narration, which highlights the three pivotal periods of the Olympic Ideal: the Birth (Ancient Olympia), the Revival (Athens 1896) and the Return of the Olympic Games in Greece (Athens 2004). It is located on the first floor of the Golden Hall, upgrading its culture and leisure offering. Along with the adjacent Athens Olympic Center “Spiros Louis” (O.A.K.A.)., it creates a new pole of attraction for residents and visitors of the Greek capital.

Key Assets
Key Assets

Mediterranean
Cosmos

Mediterranean Cosmos in Thessaloniki is the largest shopping center in Northern Greece. With 46,000 sqm GLA, Mediterranean Cosmos is known for its 200 shops, its various dining and entertainment options, as well as its wide range of engaging activities for families on offer. Mediterranean Cosmos operates under a ground lease from the Ecumenical Patriarchate. Located near the city’s international airport and central highways, it is easily accessible and has become an increasingly popular destination for locals, residents of nearby cities and of course tourists.

For more information, visit www.mediterraneancosmos.gr

Key Assets
0,000sqm
GLA
Key Assets
1m
fair market value (2020)
Key Assets
1
stores
Key Assets
1%
average occupancy
rate (2020)
Key Assets
1,000
parking spaces
Key Assets
Key Assets

Flisvos Marina

Boasting a long history dating back 19 years, coupled with a 22% domestic market share, Flisvos Marina is the highest-ranking Greek tourist port in terms of turnover and enjoys a prime reputation as the ultimate destination for international mega yachts. The marina features 303 berths, half of which accommodate boats and luxury yachts exceeding 35 meters in length, perfectly catering to the needs of all mega yachts from Greece and around the world. The port and land infrastructure (90,228 sqm in total), as well as the commercial part of the marina constitute a modern facility attracting upscale tourism. Since 2002, when Lamda Development took over the management of Flisvos Marina, it has evolved into a leading and multi-award winning marina in the Southeast Mediterranean, setting enviable standards Europe-wide and significantly contributing to the upgrade of the wider area.

Flisvos Marina continued its growth in 2020, with port occupancy reaching 100% and revenue from port and property management for the year amounting to €13.8 m. Tenant occupancy in the commercial areas reached 93%.

Boasting a long history dating back 19 years, coupled with a 22% domestic market share, Flisvos Marina is the highest-ranking Greek tourist port in terms of turnover and enjoys a prime reputation as the ultimate destination for international mega yachts. The marina features 303 berths, half of which accommodate boats and luxury yachts exceeding 35 meters in length, perfectly catering to the needs of all mega yachts from Greece and around the world. The port and land infrastructure (90,228 sqm in total), as well as the commercial part of the marina constitute a modern facility attracting upscale tourism. Since 2002, when Lamda Development took over the management of Flisvos Marina, it has evolved into a leading and multi-award winning marina in the Southeast Mediterranean, setting enviable standards Europe-wide and significantly contributing to the upgrade of the wider area.

Flisvos Marina continued its growth in 2020, with port occupancy reaching 100% and revenue from port and property management for the year amounting to €13.8 m. Tenant occupancy in the commercial areas reached 93%.

Key Assets
1,0sqm
facilities
Key Assets
1,0sqm
commercial complex
Key Assets
1
berths

GROUP FINANCIAL
PERFORMANCE 2020

03

GROUP FINANCIAL
PERFORMANCE 2020

2020 has been a year of significant challenges, due to the COVID-19 pandemic and the associated restrictive measures, aimed at preventing the spread of the pandemic. The suspension of Shopping Centers’ operations for an aggregate period that exceeded 100 days during 2020 as well as the government-imposed rent discounts adversely impacted Group consolidated EBITDA from recurring operations, excluding property revaluations, Hellinikon project direct expenses and the accounting impact from the acquisition of a minority stake in Flisvos Marina (€24.1m in 2020 vs. €50.5m in 2019). Property revaluation losses and higher Hellinikon project direct expenses also weighed, with Group consolidated bottom-line results, after taxes and minority interest, amounting to a loss of €51.7m, compared to €50m net profit in 2019.

1 .0m
2020 group revenue
1 .0m
2020 EBITDA retail assets
1m
2020 shopping
centers’ value
1 .0m
2020 EBITDA (group consolidated excluding property valuations and Hellinikon direct expenses)

Note on the COVID-19 pandemic

During the re-opening period, from June until October 2020, our
Shopping centers’ key performance indicators for tenants’ sales

Note on the COVID-19 pandemic

Source: Company data
Notes:
(1) Shopping Malls remained closed: (a) all Shopping Malls from 13.03.2020 to 17.05.2020 (66 days) (b) The Mall Athens & Golden Hall from 07.11.2020 (37 days) and Med. Cosmos from 03.11.2020 to 13.12.2020 (41 days)
(2) Resrtrictive measures , among others, imposed by the Government, designed to prevent the spread of the pandemic, include click-away, click-inside, limited number of customers per sqm

Therefore, the headline full-year 2020 average trends for customer spending mask the significant recovery in consumption trends during the re-opening period (June-October 2020). Moreover, following the pandemic outbreak, Lamda Development successfully negotiated new or proceeded to the renewal of commercial agreements (in total 80 such agreements) under the same financial terms that were in force before the pandemic crisis, thus keeping the Shopping Centers’ value unchanged.

Significant recovery in consumption trends
during the re-opening period

Note on the COVID-19 pandemic
Note on the COVID-19 pandemic

0

new or renewed commercial agreements under the same financial terms

Retail Bond Issue

In July 2020, amidst the pandemic crisis, Lamda Development successfully issued, through a public offering, a corporate bond amounting to €320m, with an overwhelming oversubscription (1.9x). The bond is listed in the fixed income securities market of the Athens Exchange, has a term of 7 years and carries a coupon of 3.40% payable semi-annually. €163m of the funds raised are dedicated for the financing of the Hellinikon project. The bond issue registered a record participation of over 10,000 private Greek investors, wishing to partake in the landmark Hellinikon project, a vote of confidence in the project and in Lamda Development.

Group Financial Performance 2020
1m
raised
Group Financial Performance 2020
1yrs
term
Group Financial Performance 2020
1.1%
coupon payable
semi-annually
Group Financial Performance 2020
More than
1,000
private Greek investors

Net Asset Value (NAV) evolution

  • 5,20
    404
    2016
  • 5,10
    395
    2017
  • 5,60
    439
    2018
  • 6,54
    1.155
    2019
  • 6,23
    1.101
    2020

Share price performance

The company’s share price has significantly outperformed the local stock market index (ATHEX General Index), generating a return of 76% over a 5-year period.

Human Capital

04
Lamda Development acknowledges that business success relies on its people. For that reason, it aims at cultivating an excellent work environment that encourages employees’ professional development and progress, using strategies to attract, develop, and preserve human capital. Lamda Development organizes training programs, tailored to the specific needs of its employees, to ensure that they have all the tools necessary to effectively meet the company’s ambitious goals and grow professionally.

1 employees

Human Capital
total number of employees of Lamda Group
male-female
employees
proportion

1%

1%

Distribution
of employees
based on their
education profile

1%

SECONDARY EDUCATION

1%

HIGHER EDUCATION

1%

POST- GARDUATE STUDIES
Human Capital

1,00hrs

of training sessions (an average
of 17 hrs per employee)

Financial and social
benefits for employees

The company offers several financial
and social benefits to its employees:

  • Stock option plan for its senior executives
  • Performance-based bonus plan
  • Health insurance and pension plan
  • Interest-free loans to cover urgent needs
  • Blood Bank for the company’s employees and their relatives
  • Rewards to excellent pupils/ students
  • Extra maternity leave days
  • Extra educational leave days for master’s degree studies
  • Christmas and Easter gifts for employees
  • Christmas presents for employees’ children
  • Monthly restaurant vouchers
  • Occupational health and safety provision
  • Employee Assistance Programs

Sustainable
Operation

05
Lamda Development has set sustainability as a key element in its business and commercial operations, always bearing in mind to make fair use of all resources. With a well-planned layout, modern architectural design and model ancillary services, Lamda Development’s shopping and leisure centers are designed to ensure they are run in an environmentally friendly way, in the context of sustainable and responsible business conduct. The centers feature Building Management Systems that ensure monitoring of energy consumption, proper time-scheduled lighting, and air-conditioning, thus improving energy consumption and achieving maximum energy efficiency, while significant emphasis is given on recycling. As far as the Hellinikon project is concerned, the development of the Metropolitan Pole of Hellinikon-Agios Kosmas has been planned based on environmental-friendly standards and sustainability principles.

Energy Consumption 2020

Energy Consumption 2020

1,0,0KWh
The Mall Athens
(shopkeepers included)
1,0,0KWh
Golden Hall
(shopkeepers included)
1,0,0KWh
Mediterranean Cosmos
(excluding tenants)*
* For tenants’ shops only Heating & Cooling power consumption is included (M.C. provides only hot and cold water for HVAC purposes through an additional central network). Every shop has separate contract for power supply needs.

Natural Gas Consumption 2020

Natural Gas Consumption 2020

1,00KWh
The Mall Athens
1,1,KWh
Golden Hall
1,1,KWh
Mediterranean Cosmos (excluding tenants)*
*Food court’s cooking demands are not included (tenants has their own contracts with the provider)

Water Consumption 2020

Water Consumption 2020

1,0
The Mall Athens
1,0
Golden Hall
1,0
Mediterranean Cosmos

Waste Management 2020

Waste Management 2020

Lamda Development’s shopping centers apply advanced waste management practices and procedures with emphasis on recycling (separation of five flows, material classes, recycling). Used oils and fats from health-regulated facilities are collected by authorized third parties, avoiding their disposal through the local sewerage system.

Recycling 2020

1,0Kg
The Mall Athens
1,0Kg
Golden Hall
(for sorting and management)
1,0Kg
Mediterranean Cosmos
1,1,1kg
of recycled waste

Landfill Waste

1,0Kg
The Mall Athens
1,0Kg
Golden Hall
(for sorting and management)
1,0Kg
Mediterranean Cosmos

Social Responsibility

As a responsible corporate citizen, Lamda Development contributes to social progress and economic growth and complies with ethical commitments regarding transparency, quality of service, human rights, environmental protection and safeguarding cultural heritage. Corporate business activities and the operation of its three shopping and leisure centers have led to the creation of 7,000 jobs. The Mall Athens, Golden Hall, Mediterranean Cosmos and the Flisvos Marina also maintain relationships and collaborations with several non-governmental organizations (NGOs) and other similar bodies, allowing them to showcase their work to visitors of the shopping malls.

2O2O
COVID-19 Initiatives

2O2O <br>COVID-19  Initiatives

COVID-19

Lamda Development took part in the national effort to contain and alleviate the impact of the COVID-19 pandemic by aligning its CSR program for the 2020-2021 period with the challenges faced because of the healthcare crisis. The company made a cash contribution to the Health Ministry in support of the National Healthcare System and donated IT equipment to the Education Ministry to support distance-learning for students. Lamda Development decided to provide additional rent relief to tenants (on top of the 40% rent discount as per the relevant legislation), It also consented to the transformation of Hellinikon’s Olympic Fencing Center into one of Attica’s largest vaccination centers with a capacity of 96 vaccination lines.

COVID-19 initiatives at a glance:

Rent discounts

to shopping centers’ tenants

Enhanced health

& safety protocols in shopping centers

Financial support

to the National Healthcare System

Donation

in support of e-learning

Support

to local communities

Support

of the vaccination program

2O2O <br>COVID-19  Initiatives

The Museums
Cycle – Eleutherna

Lamda Development and the John S. Latsis Public Benefit Foundation presented in December 2020 the 19th edition of the Museums Cycle series, dedicated to the archaeological site and excavations in Eleutherna, Crete. The commemorative volume, by Professor Nikolaos Chr. Stampolidis, accompanies readers on a trip to a Cretan city of great importance in ancient times and continuity from the dawn of hellenic civilization to the byzantine era. The Eleutherna volume was distributed free of charge to archaeology departments of universities in Greece and abroad, to the departments and directorates of the Ministry of Culture and Sports, to foreign archaeology schools and institutes, as well as to select local and international libraries and organizations.

Reconstruction
of the Olympic
Aquatic Centre Facilities
at OAKA

Four new swimming pools and world-class water sports infrastructure are under development at the Olympic Aquatic Center at OAKA. As agreed with the Deputy Minister of Sports, Lamda Development has undertaken in December 2020 and is fully funding the renovation and reconstruction of water sports facilities, first created for the 2004 Athens Olympics, to deliver top-notch athletic facilities, accessible to all. Under the agreement Lamda undertook the financing and execution of the renovation/reconstruction of the outdoor and indoor aquatic centre facilities.

2O2O <br>COVID-19  Initiatives

Initiatives with NGOs

Sustainable Operation
Sustainable Operation
Sustainable Operation
Sustainable Operation
Sustainable Operation
Sustainable Operation
Sustainable Operation
Sustainable Operation

Creating Value

Implementing best practices is extremely important for Lamda Development, as it creates value for its shareholders, jobs, and provides services of high added value for its partners and their customers.

Sustainable Operation

Zero incidents of privacy
and personal data breach
have
been reported.

Sustainable Operation

Zero incident
of non-compliance in
connection with rules
related to health & safety
of visitors.