1st Quarter2007 Financial Results
LAMDA DEVELOPMENT: First Quarter 2007 Financial Results in accordance with International Financial Reporting Standards (IFRS)
Net Asset Value before taxes (NAV) was increased by 34% and reached 408,2 million compared to 305,0 million in the First Quarter 2006. LAMDA Development consolidated turnover was decreased by 65% in the First Quarter 2007 and reached 14,9 million compared to 42,0 million in the First Quarter 2006.
The reduction in the consolidated turnover is due to the significant home sales of the Ilida Residential Complex that took place in the equivalent period of 2006 (64 apartments vs 8 in the first Quarter 2007) as well as to the consolidation by 50% of the affiliate LAMDA Olympia Village SA, owner of The Mall Athens, 50% of which was transferred to HSBC in November 2006.
LAMDA Development consolidated group turnover is comprised of the following segments:
(million) | Real Estate Investment | Real Estate Sales | Other Revenue | TOTAL |
First Quarter 2007 | 8,9 | 2,1 | 3,9 | 14,9 |
First Quarter 2006 | 10,6 | 26,9 | 4,5 | 42,0 |
It should be noted that the aggregate turnover from the rents of the two Commercial and Leisure Centers The Mall Athens and Mediterranean Cosmos has increased significantly compared to the first Quarter 2006.
(million) | Q1 2007 | Q1 2006 | % change |
Revenues from The Mall Athens | 6,9 | 5,1 | 35,30% |
Revenues from Mediterranean Cosmos | 4,1 | 3,2 | 28,13% |
TOTAL | 11,0 | 8,3 | 32,53% |
Note: Figures refer to 100% of the operation of the Commercial Centers
Consolidated net profits after minority interest reached 1,24 million compared to 6,56 million in the first Quarter 2006. This decrease is due to the recognition in the first Quarter 2006 of a 6,4 million income tax revenue, derived from the drop in the tax rate from 29% to 25% as well as to a 3,8 million accumulation from the transfer of apartments, as mentioned above.
Summary consolidated financial information:
(million) | 2007 | 2006 | % change |
Turnover | 14,9 | 42,0 | -64,52% |
E.B.I.T.D.A | 5,3 | 9,2 | -42,39% |
Profit after Tax and Minority Interest | 1,2 | 6,6 | -81,82% |
Net Asset Value (NAV) | 408,2 | 305,0 | 33,83% |
Besides the successful operation of the two commercial and leisure centers The Mall Athens and Mediterranean Cosmos, the reduction of finance cost from 4,8 million to 2,8 million, had a positive contribution to the results.
The strategic goals of the company are the following:
- Pursue improved profitability of the existing investments
- Completion within the next two years of the companys new developments: IBC commercial center in Athens, office building and logistics in Bucharest, office building, commercial center and luxury residential complex in Sofia, residential complex in Serbia and second home residential complex in Montenegro. These investments are expected to reach 170 million
- Pursue new developments in Greece in projects that are related with commercial uses (malls, outlets, big boxes) as well as developments of upscale second home complexes. The company is also pursuing participation in PPPs.
- Further strengthening of its activities in Romania, Bulgaria, Serbia and Montenegro in order to sign agreements for the development of home complexes, office buildings and commercial centers as well as to pursue business activities in new countries such as Turkey, Russia and Ukraine.
- Further strengthen and continue its strategic collaborations with international and Greek companies.
In total the company is examining a series of developments both in Greece and in South-eastern Europe with the goal of investing at least 400 million by the end of 2008.
The summary of the financial figures of the first Quarter 2007 will be published in the newspapers KATHIMERINI and IMERISSIA on 30/5/2007 and will be placed on the companys site (www.lamda-development.net) on the same day.
