NAV (Net Asset Value) per share before deferred tax stood at euro 20.18 for the 9 months ended 30 September 2007, a 1.4 % decrease compared to H1 2007, and 1.8% decrease year-on-year. The NAV remained relatively unchanged from year-end 2006, due to the fact that there was no fair value adjustment on the investment property portfolio recorded during the period, as no properties under construction were completed.
NAV per share after deferred tax stood at euro 15.58, a 1.9% decrease over H1 2007 and a 3.2% year-on-year decrease.
BVIC Group's investment properties for the 9 months 2007 were euro 1,211 million, up 0.7% from H1 2007 and 1.4% from year-end 2006. The quarterly increase was mainly due to additional costs incurred as progress continues on the Votanikos shopping mall, as well as the Poros tourist development, and the Gymnastiriou residential development. There was no revaluation gain arising from the increase in investment properties since it was a cost driven increase.
BVIC Group's revenue totalled euro 85 million for the 9 months 2007, a 143% increase compared to Q3 2006, based on an increase in sale revenue from the Hellenic Exchanges Complex. In Q3 2007, the sale revenue generated by the HELEX Complex amounted to euro 6.1 million, bringing the total sales revenue from the project year-to-date to euro 48.6 million. The remaining euro 5.6 million, from the completion of the project will be booked in Q4 2007.
The Group's rental revenue increased by 15% year-on-year to euro 34 million, based mainly on new leases from the Delta Falirou Complex as well as the like-for-like increase in rental income of almost 4%, based on the annual lease adjustments according to Greek CPI plus 100bps.
BVIC Group's EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) stood at euro 19 million, an 88% decrease over 9m 2006. There was no fair value adjustment on the investment property portfolio in 9 month 2007, whereas there was a net gain from fair value adjustment on investment property of euro 148 million for 9 month 2006, mainly from the completion of Delta Falirou Complexes I and II.
Finance expenses for the period decreased to euro 25 million, a 10% fall from the euro 28 million for the same period of the prior year. Despite an increase in interest rates and bank borrowings, there was a decrease in total finance expenses mainly driven by a decrease in the fair value of the Credit Suisse interest rate swap agreement which resulted in a finance income of euro 4.4 million for the period ended 30 September 2007. Moreover, the average floating interest cost of the SLB and BOT portfolio would have been 6.83% (Euribor plus 250bps) versus 5.29%, which the Group actually incurred due to the interest rate swap. This resulted in a positive inflow of approximately euro 1 million for the period.
Loss after tax for the quarter was euro 9 million, compared to a profit of euro 95 million during 9 month 2006 which was driven by revaluation gains.
DEVELOPMENT UPDATE
340 Syggrou Avenue A pre-lease agreement was signed with Media Markt covering 7,291 sqm of retail space and 1,772 sqm of storage space at the commercial centre under construction at 340 Syggrou Avenue. The 10 year closed lease consists of an initial annual lease of euro 2.34 million and there is the option of renewing the lease for another 10 years. The lease represents nearly 50% of the total lettable area of the commercial centre, which will be delivered by the 30th of August 2008. Discussions are advanced for the letting of the remaining space and the estimated total annual rental revenue for 340 Syggrou Avenue is euro 5 million.
Votanikos The Votanikos development is progressing well, we have carried out basement preparation work, consisting of the excavation and the retaining wall structure, therefore the project is on target for completion in the end of 2009. During the first nine months of this year, the total cost of the works carried out amounted to euro 6.4 million. The Group is witnessing very strong levels of interest from tenants, and the pre-letting of the project is expected to commence as early as H1 2008.
REFINANCING In October 2007, the Group proceeded with the refinancing of two of its sale and leaseback agreements.
Two properties subject to sale and leaseback agreements were renegotiated, based on the rental growth that has occurred over the last few years from the lease agreement adjustment of Greek CPI and 100 bps. The fundamentals of the Greek office market are strong, and the market is witnessing rental growth of over 3%.
This resulted in an increase of the value of the 6 Pouliou Str. property of euro 20.9 million and an increase of euro 13.6 million for the property at 95-97 Kifissias Avenue.
Moreover, the Group lowered its future interest expenses on the above mentioned sale and leaseback agreements. The interest rate for the sale and leaseback for 6 Pouliou Str decreased from Euribor 1 month plus 2.20% spread to a spread of 1.80%. The interest for 95-97 Kifissias Avenue decreased from Euribor 3 month plus 2.50% spread to a spread of 2.00% over Euribor 1 month.