First Semester 2015 Financial Results

Reaffirming the trend from the previous quarters and despite the unfavorable economic environment, EBITDA of our three Shopping Centers posted an increase of 7% reaching €19,9 million in the first semester of 2015. Consolidated EBITDA before valuations reached €16,0 million, posting an increase of 10,3% compared to the equivalent period last year.

SIGNS OF RECOVERY IN OUR RETAIL INDICATORS

The positive trend which started in mid-2013 in the main retail indicators of our Shopping Centres continues for another quarter. Aggregate shopkeepers' turnover in our three malls increased by 5,2% while total customer visits increased by 1,1%. Average occupancy of our Shopping Centres' exceeds 98%, while demand for retail spaces is still strong.

The favourable performance of our Shopping Centres compared to the rest of the retail market in Greece proves the fact that they have overwhelmingly won the preference of the consumer public. Shopkeepers continue to enjoy ample support via marketing, promotional and communication activities which procure growth in customer visits as evidenced by actual data.

Shopkeepers' turnover in "Golden Hall" was increased by 5,5%, while customer visits remained flat in the first semester of 2015. Operational profitability in the first semester reached €7,1 mil., representing an increase of 11%versus last year. In "Mediterranean Cosmos" in Thessaloniki, shopkeepers' turnover increased by 7%, customer visits by 2,7% while the Centre is fully occupied. Operational profitability reached €6,6 mil., showing an increase of 12%. Regarding "The Mall Athens", shopkeepers' turnover was increased by 3,8%, while customer visits remained flat. Operational profitability reached €12,4 mil., marginally decreased by 2%. All the above indicators reaffirm the leading status of our shopping centers in the retail market and their strong resilience in the unfavorable economic environment.

FINANCIAL RESULTS ANALYSIS

Following IFRS standard 11 that is effective from 1/1/2014, our company is obliged to discontinue consolidating joint ventures by the proportional method and henceforth, joint ventures will be consolidated with the equity method. It must be stressed that, in the balance sheet, consolidation with the equity method does not have any effect on the Group Equity or Net Result after Taxes.

The following table summarizes the Group's Retail EBITDA:

Office buildings had a positive contribution of €0,9 million to the semi-annual Group profitability, same as the equivalent period last year.

Total EBITDA before valuations reached €16,0 million, showing an increase of 10,3% which is mainly attributed to the increase in the operational profitability of our Shopping Centers. Net Consolidated Loss for the period amounted to €14,3 million compared to €6,8 million in the first semester of 2014. The negative results are mainly attributed to the fair value losses of our investment portfolio that reached €20,6 mil. in the first half of the year (a figure increased by €13,4 mil. versus the equivalent period last year).

Net Asset Value reached €410 million (€5,21 per share) compared to €430,7 million on 31/12/2014. The successful completion of the cash Share Capital Increase in July 2014 as well as the sale of treasury shares contributed a net amount of €162 million to the Net Asset Value.

Summary of consolidated financial figures

LAMDA Development stock is trading at a discount compared to its Net Asset Value, despite the fact that from the beginning of the year its return approximates 25%, while the General Index has fallen by 25%. More precisely, with a share price of €4,20 on 25/08/2015, the current discount versus the NAV per share approximates 20%.

The Net Loan to Value Ratio (Net LTV) of the Group's investment portfolio stands at 40,4%, a level that can be deemed very satisfactory. Finally, as of 30/06/2015 the Company has acquired a total of 1.075.223 treasury shares, representing 1,6% of the entire share capital, with an average acquisition price per share of €3,63.

Regarding the announcement of the financial results, CEO of Lamda Development Mr. Odisseas Athanasiou stated:

"The on-going positive financial results of our company reflect the success of our customer oriented strategy and make us feel optimistic about the future despite the adverse economic climate that currently prevails in our country".