First Semester 2018 Financial Results
Total group EBITDA before valuations reached €26 million in H1 2018, recording an increase of 39.8% versus H1 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 above mentioned acquisition, the increase in total EBITDA before valuations would have been 2.7%.
PRESENTATION OF KEY RETAIL INDICATORS
In H1 2018 aggregate shopkeepers’ turnover increased by 4.3% versus H1 2017. Likewise, total customer visits posted an increase of 4.3%, further strengthening the company’s leading position in shopping malls. The average occupancy of our Shopping Centres’ approaches 99%, with interest for retail spaces remaining vibrant.
The success of our Shopping Centres’ concept differentiation compared to the rest of the domestic retail market is affirmed by the continuous and overwhelming preference of the consumer public. Shopkeepers continue to enjoy ample support via marketing, promotional and communication activities and benefit from the increasing volume of customer visits.
EBITDA of The Mall Athens reached €14.3 million, showing an increase of 4.4%. It is also noted that shopkeepers’ turnover has increased by 2.2%, while customer visits by 2.6%. EBITDA of Mediterranean Cosmos in Thessaloniki posted an increase of 1.4% reaching €7.3 million. Shopkeepers’ turnover and customer visits increased by 5% and 4.3% respectively. As far as Golden Hall is concerned, EBITDA in H1 2018 reached €8.6 million, posting a significant increase of 7.5%. Shopkeepers’ turnover was also increased by 6.6%, while customer visits increased by 9.3%.
FINANCIAL RESULTS ANALYSIS
The following table summarizes the Group’s Retail EBITDA:
| (amounts in € million) | H1 2018 | H1 2017 | (%)change |
| The Mall Athens | 14.3 | 6.8 | 110.3% |
| Mediterranean Cosmos | 7.3 | 7.2 | 1.4% |
| Golden Hall | 8.6 | 8.0 | 7.5% |
| Retail EBITDA | 30.2 | 22.0 | 37.2% |
It should be noted that during H1 2017 the Company owned 50% of the shopping center The Mall Athens. If the acquisition had not been realized retail EBITDA would have been increased by 4.5%.
Total EBITDA before valuations reached €26.0 million, posting an increase of 39.8% depicting the increase in the operational profitability of our Shopping Centers.
An important positive development for the Company was the fact that its’ subsidiary company Pylaia S.A. agreed with the Ecumenical Patriarchate, owner of the land plot on which the Company developed and operates the Mediterranean Cosmos Shopping Centre, the extension of the long-term lease of the said land plot area for an additional period of thirty years, until 2065. As a result of the agreement the valuation of the Centre has been determined by the independent valuator at €181.3 million.
The aggregate value of the Group’s investment property posted an increase of €45.3 million, while at a consolidated level, Net Profit for H1 2018 reached €25.1 million versus losses of €10.9 million in H1 2017.
Net Asset Value (before taxes) reached €432.6 million (€5.56 per share).
Summary of consolidated financial figures
| (amounts in € million) | H1 2018 | H1 2017 | (%) change |
| Pro – Forma EBITDA before valuations | 26.0 | 18.6 | 39.8% |
| Fair Value gains/ losses | 45.3 | -7.3 | |
| Net Interest Expense | -13.8 | -11.5 | |
| Depreciation | -0.6 | -0.6 | |
| Taxes | -21.1 | -9.6 | |
| Minority Interests | -10.8 | -0.5 | |
| Net Result | 25.1 | -10.9 |
At a share price of €6.65 on 04/09/2018 the Company’s stock posted a drop of 3.6% versus closing price at year-end, while the General Index of ATHEX posted a drop of 11.5% for the same reference period.
The Net Loan to Value Ratio (Net LTV) of the Group’s investment portfolio stands at 41.5%, a level that can be deemed satisfactory. Finally, it is worth noting that as of 30/06/2018 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
An important positive development for the Company was the fact that its’ subsidiary company Pylaia S.A. agreed with the Ecumenical Patriarchate, owner of the land plot on which the Company developed and operates the Mediterranean Cosmos Shopping Centre, the extension of the long-term lease of the said land plot area for an additional period of thirty years, i.e. until 2065.
The building permit for the development of the Western Part of the former International Broadcasting Center (IBC) Building was issued in June 2018. The investment, of a total budget of €25 million is expected to be completed before the end of 2019 and will further strengthen and supplement the existing shopping center Golden Hall.
As regards the Hellinikon Project, it has already been mentioned that during H1 2018 the Presidential Decree was published granting approval to the Integrated Development Plan of the Hellinikon (Metropolitan Pole of Hellinikon-Agios Kosmas). The approval of the urban planning studies by means of Joint Ministerial Decisions is currently in progress, as well as the international public tender for the Integrated Tourist Resort - Casino by selecting advisors and issuing the respective offering circular.
The summary of the H12018 financial figures will be posted on the Company’s website (www.lamdadev.com) and on the website of the Athens Exchange.