Fiscal Year 2014 Financial Results
Fiscal Year 2014 Financial Results
IMPROVEMENT IN THE PROFITABILITY OF OUR SHOPPING CENTERS IN 2014
Reaffirming the trend from the previous quarters, EBITDA of our three Shopping Centers posted an increase of 5% reaching 37,5 million in 2014. EBITDA before valuations attributed to the Group reached 28,0 million, posting an increase of 9% compared to the equivalent period last year.
SIGNS OF RECOVERY IN OUR RETAIL INDICATORS
The positive trend started in mid-2013 in the main retail indicators of our Shopping Centres continues even stronger. Aggregate shopkeepers turnover in our three malls increased by 8% while total customer visits increased by 5%. Average occupancy of our Shopping Centres exceeds 98%, and demand for retail spaces is increasing.
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 11%, while it is very encouraging that customer visits were also increased significantly by 7%. Operational profitability reached 12,9 mil., slightly increased by 4%versus last year. In Mediterranean Cosmos in Thessaloniki, shopkeepers turnover increased by 8%, customer visits by 6% and the Centre is fully occupied. Operational profitability reached 12,6 mil., showing a remarkable increase of 10%. Regarding The Mall Athens, the above indicators continue to show strong performance as shopkeepers turnover and customer visits were increased by 6% and 4% respectively, while its operational profitability reached 12,0 mil., slightly increased by 3%. All the above indicators reaffirm the leading status of our shopping centers in the retail market.
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 Groups Retail EBITDA:
(amount in mil.) | 2014 | 2013 | % |
The Mall Athens | 12,0 | 11,7 | 3% |
Mediterranean Cosmos | 12,6 | 11,5 | 10% |
Golden Hall | 12,9 | 12,4 | 4% |
Retail EBITDA | 37,5 | 35,6 | 5% |
Office buildings had a positive contribution of 1,7 million to the Group profitability compared to 1,9 million last year. It must be noted that the dividends and participations revenue decrease is attributed to the inclusion of 1,1 mil profit from LAMDA Hellix and Flisvos Marina participations disposal in the equivalent period last year.
Due to investment property valuations, Net Consolidated Loss for the period amounted to 23,5 million compared to losses of 48,6 million in 2013. The difference is attributed: a) to lower annual fair value losses of our investment portfolio by 13,1 mil. and b) to the one-off accounting adjustment effect of 11,8 million in 2013 that relates to deferred taxation triggered by the 6% increase in corporate tax rates.
Net Asset Value reached 431 million (5,4 per share) compared to 296 million on 31/12/2013. The successful completion of the cash Share Capital Increase in July as well as the sale of treasury shares contributed a net amount of 162 million to the Net Asset Value. Also the Net Loan to Value Ratio (Net LTV) of the Groups investment portfolio stands at 39,2%.
Summary of consolidated financial figures
(amount in mil.) | 2014 | 2013 | % |
Pro Forma EBITDA before valuations | 28,0 | 25,6 | 9% |
Fair value losses | -30,3 | -43,4 | |
Net interest expense | -19,8 | -20,2 | |
Taxes | -0,1 | -9,0 | |
Net Profit (Loss) | -23,5 | -48,6 | |
NET ASSET VALUE | 431 | 296 |
LAMDA Development stock is trading at a discount compared to its Net Asset Value. More precisely, with a share price of 3,23 on 23/03/2015, the current discount versus the NAV per share approximates 40%.
RECENT DEVELOPMENTS AND DECISIONS
- The 150 mil. cash Share Capital Increase was completed successfully in July and reiterated the trust that the local and international investment community have placed in our Company. Funds will be used to strengthen the Companys capital structure and liquidity with the aim to complete existing projects, the participation in new projects as well as the improvement in working capital.
- It must be noted that during the recent Share Capital Increase Blackstone / GSO became a strategic investor in our Company. This strategic participation offers multiple benefits to the Company in terms of business development, improved access to the international capital markets and therefore successful implementation of the Companys business strategy.
The summary of the annual financial figures for 2014 will be posted on the companys website (www.lamdadev.com ) and on the website of the Athens Exchange.
