9 Months 2018 Financial Results
LAMDA Development: 9 Months 2018 Financial Results
NEW RECORD OF OPERATIONAL PROFITABILITY IN 9M 2018
THE NEW INVESTMENT IN GOLDEN HALL COMMENCED
Total group EBITDA before valuations reached €37.7 million in 9M 2018, recording an increase of 25.2% versus 9M 2017, mainly due to the acquisition of the remaining 50% of the shopping center “The Mall Athens” but also due to the continuous outstanding performance of our shopping centers. Excluding the realized acquisition, the increase in EBITDA would have been 1.9%.
PRESENTATION OF KEY RETAIL INDICATORS
In 9M 2018 aggregate shopkeepers’ turnover increased by 2.9% versus 9M 2017, while total customer visits posted an increase of 2.2%, strengthening further the company’s leading position in management and operation of shopping malls. The average occupancy of our Shopping Centers approaches 100% with interest for retail spaces remaining vibrant.
The success of our Shopping Centers’ concept differentiation compared to the domestic retail market continues to be confirmed by the constant and overwhelming preference of the consumer public. Shopkeepers continue to enjoy ample support via common marketing, promotional and communication activities and acknowledge the fact that they outperform the overall retail market.
EBITDA of The Mall Athens reached €20.7 million, showing an increase of 4.1%. It is also noted that shopkeepers’ turnover has increased by 1.6%, while customer visits by 2.0%.
EBITDA of Mediterranean Cosmos in Thessaloniki posted an increase of 2.3% and customer visits an increase of 1.0%. Shopkeepers’ turnover decreased by 1.8% reaching €10.7 million, solely due to the increase of the annual land lease which is paid to theEcumenical Patriarchate, a result of the extension of the long-term lease of the said land plot area for 30 additional years.
As far as Golden Hall is concerned, EBITDA in 9M 2018 reached €12.7 million, posting a record increase of 7.6%. Shopkeepers’ turnover also significantly increased by 5.7%, while customer visits by 5.6%.
FINANCIAL RESULTS ANALYSIS
The following table summarizes the Group’s Retail EBITDA:
| (amounts in € million) | 9M 2018 | 9M 2017 | (%) change |
| The Mall Athens | 20.7 | 13.0 | 59.2% |
| Mediterranean Cosmos | 10.7 | 10.9 | -1.8% |
| Golden Hall | 12.7 | 11.8 | 7.6% |
| Retail EBITDA | 44.1 | 35.7 | 23.5% |
It should be noted that during H1 2017 the Company owned only 50% of the shopping center “The Mall Athens”. If the acquisition had not been realized, retail EBITDA would have been increased by 3.5%.
Total EBITDA before valuations reached €37.7 million, posting an increase of 25.2%.
A significantly important positive development for the Company was the agreement of its subsidiary company Pylaia S.A. with the Ecumenical Patriarchate, owner of the land plot on which the Company developed and operates the Mediterranean Cosmos Shopping Centre, for the extension of the long-term lease of the said land plot area for 30 additional years, until year 2065. As a result, the value of the Center was quantified in H1 2018 Financial Statements by independent valuers at €181.3 million.
At a consolidated level, Net Profit for 9M 2018 reached €26.6 million versus losses of €22.0 million in 9M 2017.
Net Asset Value (before taxes) reached €433.9 million (€5.57 per share).
Summary of consolidated financial figures
| (amounts in € million) | 9M 2018 | 9M 2017 | (%) change |
| Pro–Forma EBITDA before valuations | 37.7 | 30.1 | 25.2% |
| Fair Value gains/ losses | 45.3 | -7.3 | |
| Effect of LOV 50% acquisition | - | -10.7 | |
| Net Interest Expense | -20.2 | -18.9 | |
| Depreciation | -0.9 | -0.9 | |
| Taxes | -23.3 | -12.7 | |
| Minority Interests | -12.0 | -1.6 | |
| Net Result | 26.6 | -22.0 |
At a share price of €5.76 on 23/11/2018 the Company’s stock posted a drop of 16.5% versus closing price at year-end 2017, while the General Index of ATHEX posted a drop of 25.2% for the same reference period.
The Net Loan to Value Ratio (Net LTV) of the Group’s investment portfolio stands at 42.3%, a level that can be deemed quite satisfactory. Finally, it is worth noting that as of 30/09/2018 the Company possesses a total of 1,866,007 treasury shares, representing 2.34% of its share capital, with a weighted average purchase price of €3.87 per share.
IMPORTANT DEVELOPMENTS
A very important positive development for the Company was the agreement with the Ecumenical Patriarchate, owner of the land plot on which the Company developed and operates the Mediterranean Cosmos Shopping Center, for the extension of the long-term lease of the said land plot area for an additional period of thirty years, i.e. until 2065.
Following a long period of a beaurocratic planning and permitting process, construction works started in August for the development of the extension of the shopping center Golden Hall. The investment of a total budget of €25 million is expected to be completed before the end of 2019 and is intended to further strengthen and supplement the existing shopping center.
As regards the Hellinikon Project, it has already been mentioned that the Presidential Decree which grants approval to the Integrated Development Plan of the Hellinikon (Metropolitan Pole of Hellinikon-Agios Kosmas) has been published. Furthermore, among others, the approval of the urban planning studies by means of Joint Ministerial Decisions is currently in progress, and also the granting of the permit, through an international public tender, for the Integrated Tourist Resort – Casino. Both are prerequisites in order for the Hellinikon S.A. to be acquired and for the project to commence.
The summary of the 9M2018 financial figures will be posted on the Company’s website (www.lamdadev.com) and on the website of the Athens Exchange.