3rd Quarter 2007 Financial Results
LAMDA DEVELOPMENT: Third Quarter 2007 Financial Results in accordance with International Financial Reporting Standards (IFRS)
The Groups recurring income from investment properties further improved in the 3rd Quarter 2007 while purchases of land for developments in Greece and abroad increased according to the corporate strategic plan. Consolidated net profits after taxes in Greece and minority interest reached 24 million compared to 46,3 million in the 3rd Quarter 2006. This decrease is due to the recognition in the 3rd Quarter 2006 of 43.2 million revaluation gains compared to 19,5 million in the 3rd Quarter 2007, mainly because of the consolidation by only 50% of the affiliate LAMDA Olympia Village SA, owner of The Mall Athens, 50% of which was transferred to HSBC in November 2006. The decrease is also owed to the following facts: in the 3rd Quarter 2006 a 14 million extraordinary income was recognised from the transfer of participations and from the drop in the tax rate from 29% to 25%. It should be noted that investment property appraisals at fair market value by certified valuators did not take place in the 3rd Quarter 2007 as they will take place at the end of the fiscal year.
Summary consolidated financial information:
(million) | 2007 | 2006 | % change |
Turnover | 67,3 | 80,5 | -16,39% |
Change in fair market value | 19,5 | 43,2 | -54,86% |
E.B.I.T.D.A | 47,1 | 73,2 | -35,65% |
Profit after Tax and Minority Interest | 24,0 | 46,3 | -48,16% |
Net Asset Value (NAV) | 418,1 | 360,2 | 16,07% |
It should be noted that the aggregate rental revenue from the two Commercial and Leisure Centers The Mall Athens and Mediterranean Cosmos has increased significantly compared to the 3rd Quarter 2006.
(million) | Q3 2007 | Q3 2006 | % change |
Revenues from The Mall Athens | 23,7 | 20,6 | 15,04% |
Revenues from Mediterranean Cosmos | 12,7 | 10,4 | 22,11% |
TOTAL | 36,4 | 31,0 | 17,42% |
Note: Figures refer to 100% of the operation of the Commercial Centers
Besides the improved operation of the two commercial and leisure centers The Mall Athens and Mediterranean Cosmos, the reduction in finance costs from 13,3 million to 9,0 million, had a positive contribution to the results.
LAMDA Development consolidated turnover in the 3rd Quarter 2007 reached 67,3 million compared to 80,5 million in the 3rd Quarter 2006. The reduction in the consolidated turnover is due to the significant home sales of the Ilida Residential Complex that took place in the equivalent period of 2006 (75 apartments in the nine months 2006 vs 30 for the same period in 2007) as well as 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.
LAMDA Development consolidated group turnover comprises the following revenue segments:
(million) | Real Estate Rental Revenues | Real Estate Sales | Other Revenue | TOTAL |
Q3 2007 | 27,9 | 26,3 | 13,1 | 67,3 |
Q3 2006 | 33,6 | 37,8 | 9,1 | 80,5 |
The strategic goals of the company are summarized as follows:
- Pursue improved profitability of the existing investments
- Completion within the next two years of the companys new developments: The Golden Hall commercial center in Athens, second home residential development in Aegina, office building and logistics in Bucharest, office building, commercial center and luxury residential complex in Sofia, residential complex as well as commercial and residential complex in Serbia and second home residential complex in Montenegro. These investments are expected to reach 430 million.
- Pursue new developments in Greece in projects that are related with commercial uses (malls, outlets, big boxes) as well as developments of upscale second home complexes. The company is also pursuing participation in PPPs.
- Further strengthening of its activities in Romania, Bulgaria, Serbia and Montenegro in order to secure agreements for the development of home complexes, office buildings and commercial centers as well as to pursue business activities in new countries such as Turkey, Russia and Ukraine.
- Further strengthen and continue its strategic collaborations with international and Greek companies.
In total the company is exploring a series of developments both in Greece and in South-eastern Europe that amount to 700 million. It must be noted that the initial 400 million project pipeline goal for 2007-2008 has already been achieved.
The summary of the financial figures of the 3rd Quarter 2007 will be published in the newspapers Ethnos and Naftemporiki on 16/11/2007 and will be uploaded on the companys site (www.lamda-development.net) on the same day.
