Third Quarter 2013 Financial Results

LAMDA Development: Third Quarter 2013 Financial Results

EBITDA of our three Shopping Centers posted an increase of 21% reaching €26,8 million, a positive performance which incorporates the benefit from the usufruct acquisition of Golden Hall from HRADF. Group EBITDA before fair value losses reached €21,8 million gains, almost unchanged compared to the equivalent period in 2012. It should be noted though that Group EBITDA including fair value losses is now in positive territory and amounts to €3,0 million.

The favourable performance comparison of our shopping and entertainment centres to the rest of the retail market in Greece is attributed to the fact that they have overwhelmingly won the preference of the consumer public. Shopkeepers continue to benefit from ample support via marketing, promotional and communication activities which procure satisfactory customer visits as evidenced by actual data. This success is also reflected in the high levels of economic occupancy rates of our shopping centers (94%). In the third quarter, aggregate shopkeepers’ turnover in our shopping centers was 4% higher compared to the equivalent period last year, a performance noticed for the first time after the beginning of the financial crisis.

More specifically, shopkeepers’ turnover in “Golden Hall” for the first nine months of the year increased by 2%, while it is very encouraging that customer visits were also increased by 5%. The above indicators verify that after five years of operations, the Shopping Center has acquired a significant market share and equivalent penetration in the consumer public. In “Mediterranean Cosmos” in Thessaloniki, nine months shopkeepers’ turnover increased by 2%, a metric quite encouraging, while customer visits dropped only by 4%. Also, in the first nine months of the year “The Mall Athens” posted a decrease in shopkeepers’ turnover and customer visits by 7% and 3% respectively.

Flisvos Marina has been certainly affected by the economic recession and posted an operational loss of €0,2 mil., flat compared to the equivalent period last year, while office buildings had a positive contribution of €1,4 million to Group profitability, slightly decreased compared to the nine months of 2012. Moreover, the dividends and participations revenue decrease is mainly due to the Eurobank Properties dividend of €3,7 mil. that was included in last year’s results, a minority participation that no longer exists.

The following table summarizes the Group’s Retail EBITDA:

Net Loss for the first nine months of 2013 amounts to €25,7 million compared to €54,5 million in 2012. Net loss is mainly attributed to €18,8 million fair value losses from our investment portfolio, albeit significantly reduced versus a year ago. In addition net loss is also attributed to the once-off accounting adjustment effect of €11,8 million that relates to deferred taxation triggered by the 6% increase in corporate tax rates from 20% to 26%.

Net Asset Value before Taxes reached €323,0 million (€7,9 per share) compared to €337 million on 31/12/2012, registering a small decrease of 4%.

Summary of consolidated financial figures

LAMDA Development stock is still trading at a discount compared to its Net Asset Value. More specifically, with a share price of €5,02 on 01/11/2013 the discount was 36% compared to the Net Asset Value per share of €7,9. It must also be noted that treasury shares represent 7,9% of total share capital with an average purchase price of €4,85.

The Net Loan to Value Ratio (Net LTV) of the Group’s investment portfolio was 59%, slightly increased versus 31/12/2012. The Group still maintains liquidity that approximates €50 million. Finally, LAMDA Development consolidated Group Turnover consists of the following segments: