Nine months 2015 Financial Results
CONTINUOUS IMPROVEMENT IN THE PROFITABILITY OF OUR SHOPPING CENTERS
Reaffirming the positive trend that started in mid-2013 and despite the adverse economic environment this year, EBITDA of our three Shopping Centers posted an increase of 7% reaching €30,0 million in the first nine months of 2015. Consolidated EBITDA before valuations reached €23,9 million, posting an increase of 4,4% compared to the equivalent period last year.
SIGNS OF RECOVERY IN OUR RETAIL INDICATORS
Aggregate shopkeepers’ turnover in our three malls increased by 3,4% while total customer visits remained flat. Average occupancy of our Shopping Centres’ exceeds 98%, while demand for retail spaces is still strong.
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 growth in customer visits as evidenced by actual data.
Shopkeepers’ turnover in “Golden Hall” was increased by 4,1%, while customer visits increased by 1,6% in the first nine months of 2015. Operational profitability during the same period reached €10,7 mil., representing a remarkable increase of 10% versus last year. In “Mediterranean Cosmos” in Thessaloniki, shopkeepers’ turnover increased by 3,5%, customer visits by 1% while the Centre is fully occupied. Operational profitability reached €10,2 mil., showing an increase of 8,5%. Regarding “The Mall Athens”, shopkeepers’ turnover was increased by 2,8%, while customer visits remained flat. Operational profitability remained flat at €18,1 mil. All the above indicators reaffirm the leading status of our shopping centers in the retail market and their strong resilience in the unfavorable economic environment.
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:
| (amount in € mil.) | 9 months 2015 | 9 months 2014 | % |
| “The Mall Athens” (50%) | 9,1 | 9,0 | 0,1% |
| “Mediterranean Cosmos” | 10,2 | 9,5 | 8,5% |
| “Golden Hall” | 10,7 | 9,7 | 10,0% |
| Retail EBITDA | 30,0 | 28,1 | 7% |
Office buildings had a positive contribution of €1,3 million to the Group profitability, same as the equivalent 9-month period last year.
Total EBITDA before valuations reached €23,9 million, showing an increase of 4,4% which is mainly attributed to the increase in the operational profitability of our Shopping Centers. Net Consolidated Loss for the period amounted to €19,1 million compared to €4,7 million in the equivalent period last year. The negative results are mainly attributed to the fair value losses of our investment portfolio that reached €20,6 mil. (a figure increased by €13,4 mil. versus the equivalent period last year).
Net Asset Value reached €409 million (€5,23 per share) compared to €430,7 million on 31/12/2014. The successful completion of the cash Share Capital Increase in July 2014 as well as the sale of treasury shares contributed a net amount of €162 million to the Net Asset Value.
Summary of consolidated financial figures
| (amount in € mil.) | 9 months 2015 | 9 months 2014 | % |
| Pro – Forma EBITDA before valuations | 23,9 | 22,9 | 4,4% |
| Fair value losses | -20,6 | -7,2 | |
| Depreciation | -0,9 | -0,9 | |
| Net interest expense | -15,9 | -15,0 | |
| Taxes | -5,7 | -4,4 | |
| Net Profit (Loss) | -19,1 | -4,7 |
LAMDA Development stock is trading at a discount compared to its Net Asset Value, despite the fact that from the beginning of the year its return approximates 21%, while the General Index has fallen by 20%. More precisely, with a share price of €4,08 on 17/11/2015, the current discount versus the NAV per share approximates 22%.
The Net Loan to Value Ratio (Net LTV) of the Group’s investment portfolio stands at 40,7%, a level that can be deemed very satisfactory. Finally, as of 30/09/2015 the Company has acquired a total of 1.489.148 treasury shares, representing 1,9% of the entire share capital, with an average acquisition price per share of €3,81.
Regarding the announcement of the financial results, CEO of Lamda Development Mr. Odysseas Athanasiou stated:
“The on-going positive financial results of our company reflect the success of our customer oriented strategy and make us feel optimistic about the future despite the adverse economic climate that currently prevails in our country”.
The summary of the annual financial figures forthe nine months of 2015 will be posted on the company’s website (www.lamdadev.com) and on the website of the Athens Exchange.
