First Semester 2008 Financial Results based on International Financial Reporting Standards (IFRS)
Net Asset Value before taxes (NAV) increased by 9% and reached 462,8 million compared to 425 million in the fist semester 2007.
In addition, Recurring EBITDA has increased significantly by 38% from 10,2 million to 14,1 million, mainly because of the improved operational performance of the two Commercial and Leisure Centers and the remarkable turnaround in Flisvos Marina profitability.
Recurring E.B.I.T.D.A. ( million) | H1 2008 | H1 2007 | % change |
«The Mall Athens» | 7,3 | 6,3 | 15,9% |
«Mediterranean Cosmos» | 7,1 | 5,8 | 22,4% |
Flisvos Marina | 1,1 | -1,0 | - |
More precisely, during the first semester of 2008 The Mall Athens had a 10,6% increase in revenues, 5,1 million visitors and shopkeepers turnover increase of 7,2%.
The respective figures for Mediterranean Cosmos display a 11,9% increase in revenues, 4 million visitors and shopkeepers turnover increase of 12,9%.
Regarding Flisvos Marina, the 250 docking spots as well as the 3,000 sq.m. GLA of commercial and leisure activities are fully leased. Revenues in the first semester 2008 reached 5,3 million compared to 3,5 million in the first semester 2007 and visitor traffic is very satisfactory.
Consolidated net profits after tax and minority interest reached 16,1 million compared to 23,5 million in the respective last years period. The decline is mainly due to the lower additional top up premium accounted for in this period compared to H1 2007 (8 million compared to 2 million) from the sale of the 49,24% stake of The Mall Athens. Furthermore, interest expense increased by 4,6 million because of the higher loan volume that resulted from the materialization of the Groups investment plan.
Summary of consolidated financial figures
( million) | 2008 | 2007 | % change |
Net Asset Value (NAV) | 462,8 | 425,0 | 8,9% |
Recurring E.B.I.T.D.A. | 14,1 | 10,2 | 38,2% |
E.B.I.T.D.A. | 34,2 | 41,4 | -17,4% |
Profit after tax and minority interest | 16,1 | 23,5 | -31,5% |
It must be noted that the revaluation gains of the Groups investment properties reached 18,6 million, reflecting their on-going successful operational performance and the increase in their profitability. As far as the capitalization rates (yields) are concerned, they remain relatively stable and conservative according to our estimations. More specifically, the average retail yield stands at 6,4% and the average office yield at 6,6%. The net debt to value of the Groups investments ratio was 45% which is deemed low in the context of todays market realities. In addition, the company has already secured 250 million credit facilities with favorable terms that along with the existing cash can be used towards funding further expansion and attainment of investment and strategic goals.
Finally, LAMDA Development consolidated group turnover is comprised of the following segments:
( million) | Real Estate Investment | Real Estate Sales | Other Real Estate Services | TOTAL |
H1 2008 | 25,3 | 3,0 | 5,6 | 33,9 |
H1 2007 | 21,5 | 24,9 | 4,8 | 51,2 |
The reduction in the consolidated group turnover is exclusively attributed to the office building sale of the affiliate Lamda Olympia Village during the first semester 2007.
The Groups major growth and strategic goals can be summarized as follows:
· Further improvement in the operating performance of the existing developments.
· Completion and operation within 2008 of Golden Hall, the companys new commercial Center in Athens, which is already 99% pre-leased.
· Pursue and secure total investments of 700 million for the years 2007 and 2008.
· Pursue a strategy of new developments in Greece regarding commercial uses (malls, outlets, big boxes) as well as high quality second home residential developments. The company will pursue its participation in Public Private Partnerships (PPPs).
· Selectively intensify its activities in Southeastern Europe in order to enter into new agreements for residential, office and retail developments. Furthermore, exploit opportunities in Turkey and Ukraine.
· Further exploit international and local corporate strategic alliances
The summary of the financial figures of the first semester 2008 will be published in the newspapers Kerdos and TA NEA on 28/8/2008 and will be posted on the companys website (www.lamda-development.net) and on the website of the Athens Exchange (www.athex.gr).
