LAMDA Development: First Quarter 2015 Financial Results
CONTINUOUS IMPROVEMENT IN THE PROFITABILITY OF OUR SHOPPING CENTERS
Reaffirming the trend from the previous quarters, EBITDA of our three Shopping Centers posted an increase of 5% reaching 10,3 million in the first quarter of 2015. EBITDA before valuations attributed to the Group reached 8,5 million, posting an increase of 7,6% 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 7,3% while total customer visits increased by 2%. 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 9%, while customer visits were also increased by 1,6%. Operational profitability in the first quarter reached 3,6 mil., increased by 6%versus last year. In Mediterranean Cosmos in Thessaloniki, shopkeepers turnover increased by 8%, customer visits by 4% and the Centre is fully occupied. Operational profitability reached 3,5 mil., showing an increase of 6%. Regarding The Mall Athens, the above indicators continue to show strong performance as shopkeepers turnover and customer visits were increased by 5,7% and 1% respectively, while its operational profitability reached 6,3 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.) | Q1 2015 | Q1 2014 | % |
The Mall Athens | 3,2 | 3,1 | 3% |
Mediterranean Cosmos | 3,5 | 3,3 | 6% |
Golden Hall | 3,6 | 3,4 | 6% |
Retail EBITDA | 10,3 | 9,8 | 5% |
Office buildings had a positive contribution of 0,4 million to the quarterly Group profitability, same as the equivalent period last year. Total EBITDA before valuations reached 8,5 million, showing an increase of 7,6% which is mainly attributed to the increase in the operational profitability of our Shopping Centers. Net Consolidated Profit for the period amounted to 1,4 million compared to 0,7 million in the first quarter of 2014.
Net Asset Value reached 431,2 million (5,46 per share) compared to 430,7 million on 31/12/2014. 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.
Summary of consolidated financial figures
(amount in mil.) | Q1 2015 | Q1 2014 | % |
Pro Forma EBITDA before valuations | 8,5 | 7,9 | 7,6% |
Net interest expense | 5,2 | 5,2 | - |
Taxes | 1,6 | 1,6 | - |
Net Profit (Loss) | 1,4 | 0,7 | |
NET ASSET VALUE | 431,2 | 298,0 |
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 gains 2%. More precisely, with a share price of 4,20 on 19/05/2015, the current discount versus the NAV per share approximates 24%.
Finally, the Net Loan to Value Ratio (Net LTV) of the Groups investment portfolio stands at 39,2%, a level that can be deemed very satisfactory.
Regarding the announcement of the financial results, CEO of Lamda Development Mr. Odysseas Athanasiou stated:
We remain focused on the companys customer oriented strategy, which we continue to adhere to. We are very satisfied with the visitors' acceptance regarding our shopping malls, which is reflected by the continuous positive trends of the company's financial results.
The summary of the annual financial figures for the first quarter of 2015 will be posted on the companys website (www.lamdadev.com) and on the website of the Athens Exchange.
