LAMDA Development: 2007 Financial Results based on I.F.R.S.
During 2007, the Groups recurring income from investment properties as well as the Net Asset Value further improved, while the companys investments abroad increased significantly. Consolidated net profits after taxes and minority interests reached 59,6 million compared to 94,5 million in 2006. This decrease is due to the recognition in 2006 of 82,2 million revaluation gains compared to 65,6 this year as well as to the 33 million realized profit from the sale of the 50% of The Mall Athens, that is to say a total of 49,6 million.
Summary consolidated financial information:
(million) | 2007 | 2006 | % change |
Net Asset Value (NAV) | 454,6 | 405,2 | 12,2% |
Change in fair market value | 65,6 | 82,2 | -20,2% |
E.B.I.T.D.A. | 110,4 | 145,2 | -23,9% |
Profit after tax and minority interest | 59,6 | 94,5 | -36.9% |
The recurring operational profitability of our commercial portfolio was significantly increased on a likeforlike basis and is analyzed as follows:
(million) | 2007 | 2006 | % change |
The Mall Athens | 29,5 | 25,1 | 17,5% |
Mediterranean Cosmos | 13,0 | 9,5 | 36,8% |
Office buildings | 3,9 | 3,7 | 5,4% |
Total | 46,4 | 38,3 | 21,1% |
Note: Figures for the Commercial & Leisure Centers refer to 100% operation.
The operational performance of the two Commercial & Leisure Centers was significantly improved. The increase of the tenants turnover that occupy the Commercial & Leisure Centers was 29% for The Mall Athens and 31% for Mediterranean Cosmos. In addition, the increase in the customers visit was also remarkable. To be more precise, for the year 2007, 11 million customers visited The Mall Athens and 8.2 million visited Mediterranean Cosmos. The increase in the above figures was reflected to notable revaluation gains for both properties, comparing to last year, even though the capitalization yields were not significantly modified.
The new under development Commercial Center Golden Hall at the premises of the ex International Broadcasting Center IBC- in Athens, is expected to be equally successful. Golden Hall is already 97% leased and is expected to begin operations in the fall of 2008.
It must also be noted that Flisvos Marina operations were further improved since all the land facilities are fully leased and the marine berth occupancy has also reached 100%. The total number of berths is 250 and can reach 300 in the future. The customer visits in Marinas land facilities, where 36 offices and stores are hosted in a total surface of 3.000 sq. m can be characterized as very successful. A positive effect in the financial results by 8,6 million is due to the partial reverse of the annual paid leases to the Company of Tourist Development for the years 2004, 2005, 2006, as a result of the Arbitration decision.
Consolidated turnover was slightly decreased by 10,8% in 2007 and reached 86,9 million compared to 97,4 million in 2006. The decrease in the consolidated turnover is due mainly 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. Last years annual turnover of the affiliate was 29,8 million.
It should be further noted that the initial goal for the period of 2007-2008 of 400 million new project investment pipeline has already been accomplished. The revised target was set at 700 million. The total signed investments have reached 491 million and comprise of 12 projects. Ten of these projects, with a total development budget of 370 million are located in South-eastern Europe.
The major development and strategic goals are the following:
- Further improvement of the performance of the existing developments.
- Completion during 2008 of Golden Hall the companys new Commercial Center in Athens.
- Completion during the next two years, of its new developments which are: second home development in Aegina Island, office building, logistic spaces and residential developments in Bucharest, office buildings, commercial spaces and luxurious residential complex in Sofia, residential development, commercial and residential complex in Serbia and luxurious second home development in Montenegro. The total cost of these investments in Greece and South-eastern Europe is estimated to reach 500 million with the estimated re-evaluation gains exceeding 30%.
- Pursue a strategy of new developments in Greece regarding commercial uses (malls, outlets, big boxes) as well as high quality second home developments. The company will pursue its participation in Public Private Partnerships (PPPs)
- Further increase its activities in Romania, Bulgaria, Serbia and Montenegro in order to enter into new agreements for residential, office and retail developments. Furthermore, exploit opportunities in countries like Turkey, Russia and Ukraine.
- Further exploit international and national corporate strategic alliances
The summary of the financial figures of 2007 will be published in the newspapers Express and Apogevmatini on 27/3/2008 and will be placed on the companys site (www.lamda-development.net) on the same day.