First Quarter 2009 Financial Results

INCREASE IN RECCURING PROFITABILITY

Net Asset Value before taxes (NAV) increased by 7% reaching €494,0 million ( €11,9 per share) compared to €461,0 million (€11,1 per share) last year. This increase is deemed quite satisfactory and it reflects the quality of our investment portfolio, given the slowdown in the global economy in 2008 and the crisis in the real estate sector.
Group recurring EBITDA has increased significantly and it amounts to €12,8 million compared to €7 million last year, showing an increase of 83%. This growth is primarily attributed to the improved operational performance of the existing malls as a result of their increased acceptance by the consumer public. In addition, the increased profitability derives also from Golden Hall’s positive contribution as well as to the Flisvos Marina continuing profitability. More precisely, for the “Mall Athens” and “Mediterranean Cosmos” the combined increase of recurring profitability reached 11,8%. It must also be noted that the dividends and participations figure is higher by €2,3 million, mainly because of the higher dividend collected by EFG Properties that had an increased profitability. Furthermore, it is our company’s strategic decision to further enhance and increase our investment in EFG Properties. On 31/3/2009 the total shares that we owned amounted to 7.865.432 (12,9% share, as opposed to 10,4% six months ago). Our existing shopping centers “The Mall Athens” and “Mediterranean Cosmos” had a noticeable increase in customer visits by 22% and 1,2% respectively. The on-going increase in customer traffic demonstrates the malls’ recognition and it is the basis for even better results in the near future. Shopkeepers’ turnover increased 2,3% in Mediterranean Cosmos, whereas in “The Mall Athens” a decrease of 4% was noticed. This performance combined with the increase in recurring profitability of the two malls by 11,8% is deemed very satisfactory given the financial slowdown and the decrease in retail spending. The above mentioned malls have become a point of reference among the consumer public. The operation of our new Shopping and Business Center “Golden Hall” during December, in the former IBC premises, can be characterized quite successful. “Golden Hall” opened its gates to the public on 28 November 2008 and is 100% leased to well-established and renowned international and Greek brand names. It hosts 131 shops within the 41.000 GLA and also offers 1.400 underground parking spaces. The completion of the specific Shopping Center not only contributed to the increase in the Net Asset Value in 2008 but has also started to affect positively the Group’s Recurring EBITDA. During the first quarter of 2009 shopkeepers’ turnover was €29,3 million (€50 million from inauguration till the end of March 2009). These figures are in-line with our initial forecasts.The increase in Flisvos Marina profitability has reached 100% compared to the first quarter of 2008. The docking spots are fully leased and Marina’s land development is characterized by increased traffic, turning it into a destination point among the public. Finally, it must also be noted that  Group overheads are 16% lower as a result of our on-going cost control efforts.

Consolidated net profit after tax and minority interest reached €4,8 million compared to €11,2 million in the first quarter of 2008. This decrease is mainly attributed to the fact that in the first quarter of 2008, fair value gains of €13 million were booked, something that was not repeated this year because of the unfavorable market conditions.
Summary of consolidated financial figures

The net Loan to Value ratio of the Group’s investment portfolio was 42%, further increased from the level of 46% in December 2008, a fact that implies the conservative approach of our company in the use of loans. The Group has secured increased liquidity of €240 million. This liquidity derives both from own funds as well as from loans to finance the investment plan and potential investment opportunities that may arise in the near future as a result of the economic downturn.
Finally LAMDA Development consolidated Group Turnover is comprised of the following segments: