LAMDA Development: Year End 2004 Financial Results

FINANCIAL RESULTS
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Friday, 26 February 2005

PRESS RELEASE

LAMDA Development: Year End 2004 Financial Results

LAMDA Development increased consolidated turnover by 12%, which grew to €83,749,000 compared to €74,473,000 for the corresponding period in 2003.


The consolidated revenue for the period amounted to €13,887,000 compared to €15,227,000 for the same period last year, marking a decrease of 9%.

The increase in depreciations by €2,072,000 and provisions by €1,569,000 (an increase of 68% and 5.373%, respectively), as well as reduction of revenues from financing activities by €1,399,000 (73% reduction) led to a loss of €980,000 for the group, compared to a profit of €4,650,000 in 2003.

It is important to note that during the current fiscal period, the real estate investment assets were adjusted to the fair market value in an amount of €26,178,000, with a corresponding increase of resources by 15%.

The results for the financial year 2004 were influenced by the fact that the period witnessed an intensification of the company’s implementation of its large-scale investment programme, the completion of which is expected steadily in 2005.

Brief consolidated financial data

(amounts in € ‘000)20042003Variation
Turnover83.74974.47312,5%
Consolidated revenue13.88715.227-8,8%
Income before taxes-9804.650-121,1%

LAMDA Development S.A.

The turnover of the parent company recorded an increase of 118% and the consolidated revenue an increase of 331%. The income before taxes – influenced by the reduction of interest income (€2,725,000) resulting from the corresponding limitation of available liquid assets (as a result of the progression of the company’s investment programme) and by the increase in management and operating expenses (€689,000 ) - resulted in losses of €585,000 compared to a profit of €2,865,000 in 2003 (120% reduction).

More specifically, following are the variations in the 2004 results for the subsidiary companies of the LAMDA Development group of companies:

LAMDA Prime Properties S.A. (100% participation by LAMDA Development S.A.)

The income from the full leasing of the Cecil office building in Kefalari maintained the same levels as in 2003, whilst profits of €919,000 recorded an increase of 35%.

LAMDA Estate Development S.A. (100% participation by LAMDA Development S.A.)

The company’s turnover amounted to €13,377,000 compared to €30,422,000 in 2003, representing a decrease of 56%, limiting accordingly the net profits for the period to €1,317,000 compared to €7,754,000 (83% reduction). Last year’s results were further strengthened by the property sale of the Apollo Business Centre and the Kronos Business Centre.

LAMDA Olympia Village S.A. (98,08% participlation by LAMDA Development S.A.)

LAMDA Olympia Village developed the Olympic Media Village, which today has transformed into an innovative residential area with a 60,000 square metre park as well as a nearby commercial and leisure centre offering 60,000 square metre of GLA (Gross Leasable Area). The company recorded a turnover of €5,686,000 during 2004, originating mostly from the leasing of the Media Village during the Olympic Games. During the same period, the company’s net profits amounted to €648,000, compared to losses of €416,000 in 2003.

EFG Eurobank Properties S.A. (29,9% participation by LAMDA Development S. A.)

An increase of 13% was recorded in the company’s turnover for the 12-month period in 2004, amounting to €20,742,000 compared to €18,381,000, and net profits amounted to €8,671,000 compared to €4,873,000 during the corresponding period last year (78% increase).

Swissport LAMDA Hellas S.A. (50% participation by LAMDA Development S.A.)

The company’s turnover was strengthened by 15%, amounting to €24,607,000