Nine Months 2014 Financial Results

Reaffirming the trend from the previous quarters, EBITDA of our three Shopping Centers posted an increase of 5% reaching €28,1 million in the first nine months of 2014. EBITDA attributed to the Group reached €22,9 million, with an increase of 5% compared to the equivalent period last year.

SIGNS OF RECOVERY IN OUR RETAIL INDICATORS

The positive trend in the main retail indicators of our Shopping Centres continues even stronger in the first nine months of 2014. Aggregate shopkeepers’ turnover in our three malls increased by 9% while total customer visits increased by 6,5%. Average occupancy of our Shopping Centres’ exceeds 98%, and demand for retail spaces is increasing.

The favourable performance of our Shopping Centres compared to the rest of the retail market in Greece proves the fact that they have overwhelmingly won the preference of the consumer public. Shopkeepers continue to enjoy ample support via marketing, promotional and communication activities which procure satisfactory customer visits as evidenced by actual data.

Shopkeepers’ turnover in “Golden Hall” was increased by 12%, while it is very encouraging that customer visits were also increased significantly by 9%. Operational profitability reached €9,7 mil., slightly increased versus last year. In “Mediterranean Cosmos” in Thessaloniki, shopkeepers’ turnover increased by 9%, customer visits by 7% and the Centre is fully occupied. Regarding “The Mall Athens”, the above indicators continue to show strong performance as shopkeepers’ turnover and customer visits were increased by 7,5% and 5,5% respectively.

FINANCIAL RESULTS ANALYSIS

Following IFRS standard 11 that is effective from 1/1/2014, our company is obliged to discontinue consolidating Joint Ventures by the proportional method and henceforth, Joint Ventures will be consolidated with the equity method. It must be stressed that, in the balance sheet, consolidation with the equity method does not have any effect on the Group Equity or Net Result after Taxes.

The following table summarizes the Group’s Retail EBITDA:

Flisvos Marina, following consecutive quarters of operational losses, posted a positive EBITDA of €0,1 mil., compared to €0,2 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 €1,3 million (same as last year) to the Group profitability. It must be noted that the dividends and participations revenue decrease is attributed to the inclusion of €1,1 mil profit from LAMDA Hellix and Flisvos Marina participations disposal in the equivalent period last year.

Net Consolidated Loss for the period, mainly due to investment property valuations, amounts to €4,7 million compared to losses of €25,7 million in the first nine months of 2013. The difference is 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%. Furthermore, the noticeable improvement is also attributed to lower fair value losses in the current semester from our investment portfolio by €11,6 mil.

Net Asset Value before Taxes reached €455,9 million (€5,72 per share) compared to €296 million on 31/12/2013. The recent Share Capital Increase in cash as well as the sale of treasury shares contributed a net amount of €163 million to the Net Asset Value.

Summary of consolidated financial figures

LAMDA Development stock is still trading at a discount compared to its Net Asset Value. Stock price negative return from the beginning of the year approximates 8% with improved daily volume, a better performance compared to the General Index that is c24% lower. More precisely, with a share price of €4,04 on 17/11/2014, the current discount versus the NAV per share, following the Share Capital Increase, approximates 29%.

The Net Loan to Value Ratio (Net LTV) of the Group’s investment portfolio was 38,5%, a level deemed quite satisfactory which was further improved following the recent share capital increase.

RECENT DEVELOPMENTS AND DECISIONS

• On 14.11.2014 the Company signed the contract for the purchase of shares of “Hellinikon S.A.” by the 100% subsidiary of SPV “HELLINIKON GLOBAL I SA” as the buyer and the Hellenic Republic Asset Development Fund as the Seller. The Company also signed the contract as the guarantor of the Purchaser. This investment, of an estimated cost of €8 billion, aims at the implementation of an Integrated Development Plan in the Metropolitan Pole of Hellinikon – Agios Kosmas and will include, among others, the construction of a metropolitan park of 2 million square meters, the development of residential zones, hotels, shops, malls, open cultural areas, museums, health and well-being centers and sport and leisure facilities, the creation of a business, education and research hub and the full upgrade of the current marina and coastal front.
• It must be noted that during the recent Share Capital Increase Blackstone / GSO became a strategic investor in our Company with the right to appoint a member in the Board of Directors. This strategic participation offers multiple benefits to the Company in terms of business development, improved access to the international capital markets and therefore successful implementation of the Company’s business strategy.

The summary of the financial figures for the first nine months of 2014 will be posted on the company’s website (www.lamda-development.net) and on the website of the Athens Exchange.