Q1 2018 Financial Results
SURGE OF OPERATIONAL PROFITABILITY IN Q1 2018
Total group EBITDA before valuations soared to €14 million in Q1 2018, recording an increase of 44.3% versus Q1 2017, mainly due to the acquisition of the remaining 50% of the shopping center The Mall Athens but also due to the new record performance of our shopping centers. Excluding the realized acquisition, the increase in EBITDA would have been 6%.
PRESENTATION OF KEY RETAIL INDICATORS
In Q1 2018 aggregate shopkeepers’ turnover increased by 7.8% versus Q1 2017, while total customer visits posted an increase of 6.7%, verifying the Company’s assessment in Q1 of 2017 that the cease of the operations of an important tenant, occupying many shops in our shopping centers, affected only temporarily certain retail indicators. The average occupancy of our Shopping Centres’ approaches 99%, with interest for retail spaces remaining vibrant.
The concept differentiation of our Shopping Centres compared to the rest of the domestic retail market continue to attract the overwhelming preference of the consumer public. Shopkeepers continue to enjoy ample support via common marketing, promotional and communication activities and acknowledge the fact they outperform the overall retail market.
EBITDA of The Mall Athens reached €7.4 million, showing an increase of 4.2%. It is also noted that shopkeepers’ turnover has increased by 5.7%, while customer visits by 4.2%. EBITDA of Mediterranean Cosmos in Thessaloniki posted an increase of 7.9% reaching €4.1 million. Shopkeepers’ turnover and customer visits increased by 9.1% and 8.1% respectively. As far as Golden Hall is concerned, EBITDA in Q1 2018 reached €4.5 million, posting a significant increase of 7.1%. Shopkeepers’ turnover was also increased by 9.9%, while customer visits increased by 11.6%.
FINANCIAL RESULTS ANALYSIS
The following table summarizes the Group’s Retail EBITDA:
| (amounts in € million) | Q1 2018 | Q1 2017 | (%)change |
| The Mall Athens | 7.4 | 3.6 | 105.6% |
| Mediterranean Cosmos | 4.1 | 3.8 | 7.9% |
| Golden Hall | 4.5 | 4.2 | 7.1% |
| Retail EBITDA | 16.0 | 11.6 | 37.9% |
(It should be reminded that in Q1 2017 the Company owned 50% of the Shopping Center The Mall Athens)
Total EBITDA before valuations reached €14.0 million, posting an increase of 44.3% depicting the increase in the operational profitability of our Shopping Centers. At a consolidated level, Net Profit for Q1 2018 reached €2.2 million versus €1.7 million in Q1 2017.
Net Asset Value (before taxes) reached €397.4 million (€5.10 per share).
Summary of consolidated financial figures
| (amounts in € million) | Q1 2018 | Q1 2017 | (%) change |
| Pro – Forma EBITDA before valuations | 14.0 | 9.7 | 44.3% |
| Net Interest Expense | -7.0 | -5.7 | 22.8% |
| Depreciation | -0.3 | -0.3 | 0.0% |
| Taxes | -3.1 | -1.9 | 63.2% |
| Minority Interests | -1.4 | - | - |
| Net Profit | 2.2 | 1.7 | 29.4% |
The Company’s stock following the downward trend of the ATHEX posted a drop of 7.4% versus 29/12/2017 closing price, at a share price of €6.39 on 29/03/2018.
The Net Loan to Value Ratio (Net LTV) of the Group’s investment portfolio stands at 41.5%, a level that can be deemed very satisfactory. Finally, it is worth noting that as of 31/03/2018 the Company possess 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
In accordance with its existing strategy to concentrate in the sector of shopping centers as well as in the emblematic investment in Hellinikon project, the Company sold the ownership that its 100% subsidiary, LAMDA Estate Development S.A., held in the office building Kronos Business Center in Maroussifor a total consideration of €6.5 million.
During Q1 2018 the Presidential Decree which granted approval tothe Integrated Development Plan of the Hellinikon (Metropolitan Pole of Hellinikon-Agios Kosmas) was published. The approval of the Integrated Development Plan (IDP) by means of a Presidential Decree, which first underwent examination by the Council of State is the first step towards the successful completion of a series of conditions which, once met, will in effect allow the transfer of the shares in HELLINIKON S.A. and will mark the commencement of the Project’s implementation.
The building permit for the development of the western part of the former International Broadcasting Center (IBC) Building is now imminent since the Joint Ministerial Decision was issued in May 2018, approving the zoning and land use framework of the project. The investment, of a total budget of €25 million will further strengthen and supplement the existing shopping center Golden Hall and is expected to be completed before the end of 2019.
The summary of the Q12018 financial figures will be posted on the Company’s website (www.lamdadev.com) and on the website of the Athens Exchange.
