Fiscal Year 2013 Financial Results

LAMDA Development: Fiscal Year 2013 Financial Results

EBITDA of our three Shopping Centers posted a remarkable increase of 26% reaching €35,6 million. Group EBITDA in 2013 reached €25,6 million posting an annual increase of 19% on a like for like basis – excluding Hellinikon project expenses.

SIGNS OF RECOVERY IN QUALITATIVE RETAIL INDICATORS

In the second semester of 2013, shopkeepers’ total turnover in our 3 malls increased by 6% compared to 2012, while total customer visits increased by 1,5%. Average occupancy of our Shopping Centres’ exceeds 98%. Above leading indicators verify that following a period of recession, the first very positive signs of recovery are visible and are reflected in our shopping centres’ results.

LAMDA Development continues to reaffirm its leading position in Real Estate Development in Greece by investing significant funds and by creating new jobs in the midst of the crisis and economic uncertainty:

• In November 2008 our third Shopping Center “Golden Hall” was inaugurated, an investment that surpassed €76 mil. In February 2013 we invested an additional €81 mil. for the exploitation of the usufruct right of IBC Building for 90 years, the back part of which remained undeveloped since 2004. This was the first big privatization tender, organized by HRADF. An additional €20 mil. will be invested for this development by next year. The investment will create more than 2.000 jobs.
• In December 2010, LAMDA Development acquired the remaining 40% ownerhsip of Mediterranean Cosmos in Thessaloniki, and assumed at the same time full management of the shopping center, a total investment of €80 mil.
• In Mediterranean Cosmos, an additional amount of €5 mil. has been invested for installations improvement and upgrade of the quality of services to the visitors.
• In Golden Hall, an additional amount of €6 mil. has been invested for marketing, promotional activities and support to our tenants, but also for the further upgrade of the services provided to the consumers in the period during the financial crisis.

Shopkeepers’ turnover in “Golden Hall” was increased by 5%, while it is very encouraging that customer visits were also increased by 6%. 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. Operational profitability reached €12,4 mil., contributing significantly in the improvement of the financial results at the consolidated level. In “Mediterranean Cosmos” in Thessaloniki, shopkeepers’ turnover increased by 4%, a quite encouraging indicator. “The Mall Athens” posted a marginal decrease in shopkeepers’ turnover and customer visits by 3% and 1% respectively, due to the extensive strikes in public transportation companies in the first quarter of the year.

Odysseas Athanasiou, Chief Executive Officer of LAMDA Development issued the following statement:

“The improvement in our profitability and the overall positive status of our company is mainly attributed to the following two important factors: a) in our investment strategy such as the acquisition of 100% of Mediterranean Cosmos in Thessaloniki and the acquisition of IBC, and b) in our on-going focus to our customers / tenants and to our consumers / visitors of our shopping centers, as reflected in the continuous improvement in the services provided in conjunction with various events and other cultural activities.

FINANCIAL RESULTS ANALYSIS

The following table summarizes the Group’s Retail EBITDA:

Flisvos Marina posted an operational loss of €0,2 mil., showing an improvement compared to the €0,8 mil loss in the equivalent period last year. It must be noted that an increase in the demand for berthing spots has therefore led to the increase in occupancy. Office buildings had a positive contribution of €1,9 million to Group profitability, practically unchanged compared to last year. 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.

Net Accounting Loss for 2013 amounts to €48,6 million compared to €91,9 million in 2012. Net loss is mainly attributed to €43,4 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%. It is worth noted that Earnings Before Tax (excluding fair value losses effect) amounts to €3,9 mil.

Net Asset Value before Taxes reached €296 million (€7,3 per share) compared to €337 million on 31/12/2012, registering a decrease of 12%.

Summary of consolidated financial figures

LAMDA Development stock is still trading at a discount compared to its Net Asset Value. However, from the beginning of the year, its return exceeds 30% with increased daily volume, which signifies its acceptance by the investor community. More specifically, with a share price of €6,5 on 27/3/2014 the discount is 11%. 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 61%, slightly increased versus 31/12/2012. The Group still maintains liquidity that approximates €43 million.

The summary of the financial figures for 2013 will be posted on the company’s website (www.lamda-development.net) and on the website of the Athens Exchange.