ΜΠΑΜΠΗΣ ΒΩΒΟΣ Α.Ε.
H1 2009 FINANCIAL STATEMENTS
NAV (net asset value) per share before deferred tax stood at euro 14.47 during the first half of 2009, a 1.4% decrease from year-end 2008. NAV per share after deferred tax stood at euro 11.87, a 1.5% decrease from year-end 2008. BVIC Group's investment properties for H1 2009 reached euro 1.21 billion, nearly unchanged from 31 December 2008. During the first half of 2009, the construction cost incurred for the tourist project under construction in Poros led to an increase of euro 2.7 million in investment properties, which was partly offset by the sale of a residential asset decreasing investment properties by euro 814 thousands.
BVIC Group's revenue during H1 2009 reached euro 27.3 million, a 1.9% decrease compared to H1 2008. Sales of residential assets generated euro 1.2 million of revenue in H1 2009, whereas during the same period in 2008 they generated euro 4.3 million in revenue.
The Group's rental revenue increased by 11.2% year-on-year to euro 25.5 million in H1 2009. New lease agreements that came into effect in H2 2008 led to a 6% increase in rental revenue in H1 2009, and there was 5% like-for-like growth in income revenue from the lease indexation to Greek CPI and 100 bps. BVIC Group's EBITDA (earnings before interest, tax, depreciation and amortisation) stood at euro 6.8 million, compared to euro 84.9 million in H1 2008. This decrease stemmed mainly from the fact that no investment property under construction was completed and there was no fair value adjustment on investment property in H1 2009, whereas there was a net gain from fair value adjustment on investment property of euro 85.6 million in H1 2008 mainly due to the completion of 340 Syggrou Avenue.
Net finance expenses stood at euro 12.9 million, compared to euro 46.6 million in H1 2008. Finance expenses were 41.7% lower in H1 2009 due to the effect of the interest rate swap that the Group entered into in 2006, as well as the fall in interest rates over the period.
Moreover, net financial expenses in H1 2008 were significantly burdened by a euro 24 million expense from the fair value adjustments of the derivatives, whereas in H1 2009 the mark to market of the derivatives was nearly nil. All three of these factors led to a 72.4% year-on-year decrease in net financial expenses. The Group's loss after tax for the period was euro 6.3 million, compared to a profit after tax of euro 34.8 million during H1 2008.
BANK DEBT AND FINANCE LEASES RESTRUCTURING
Significant progress has been made with the negotiations with the banks relating to the extension of the repayment schedule and the restructuring of most of the Group's loan contracts and sale and leaseback agreements. With regards to the Group's loans, in H1 2009 the euro 125 million loan with Alpha Bank and Pireaus Bank, relating to the project under development at Votanikos, was restructured, extending the maturity by 9 months to the 31/3/2010.
Also, amendments to loan contracts of euro 20 million, referring to working capital, were signed with Piraeus Bank. These amendments provide an extension of the maturity date and a postponement of the repayment schedule. These amendments postpone the first payment by a year to the 30.6.2010. Amendments to loan contracts referring to working capital amounting to euro 57.5 million were signed with Emporiki Bank. They refer to amendments to the repayment schedule and to the extension short term payments of approximately euro 30 million to a non-short term period. The amendment provides also for the extension of the maturity date up to 2013.
During the same period, the repayment schedule of a euro 5.1 million loan with the National Bank of Greece was amended. The first instalment out of a total three equal instalments of the repayment schedule was set for the 31.12.2009. As far as the finance leases are concerned, the sale and lease back agreement for 340 Syggrou Avenue with Emporiki Leasing and ATE Leasing was amended. The amendment includes changes to the initial repayment schedule instalments, postponing the repayment of the notional debt to a non-short term period. More specifically, the amendment of the repayment instalments as of 1.1.2009 leads to a decrease of the notional total repayment for the period 1.1.2009 to 30.6.2010 amounting to euro 11 million. The amendment also changes the interest rate from Euribor 1month plus a spread of 1.80% to Euribor 3month plus a spread of 1.80% as of 1.7.2009.
VOTANIKOS SHOPPING MALL
During the 1st quarter of 2009, the Council of State adjourned twice over the matter of the constitutionality of the Law 3481/2006 and, therefore, the legality of the shopping mall building permit. BVIC management is awaiting the publication of the court decision in order to engage upon a course of action concerning the development of the project at Votanikos. In any case, it is clear that if the building coefficient of 1.6 does not apply then the transfer of BVIC's property to the Municipality of Athens also does not apply and the company's management will revoke the grant of the property to the municipality and will claim for rightful compensation amounting to euro 280 million.
RESIDENTIAL PROPERTIES
The construction works for the completion of the residential properties on land plots of 18,000 sqm (Building Blocks 270 and 271) in the municipality of N.Erythrea are proceeding at a fast pace. The project includes the development of 45 detached residential units which are planned for completion within the current year. Ten of these residential units have already been sold and delivered to the buyers. During the first half of 2009, the Group signed sale contracts of approximately euro 1.2 million for residential properties at the building complex located at Patmou & Agrafon Street and for residential properties located at Apollonos and Mavromichali Street in Kefalari. More specifically, the revenue from the property sales of Patmou & Agrafon Street amounted to euro 420 thousand while the revenue from the property sale of Apollonos and Mavromichali Street in Kefalari amounted to euro 707 thousand during the first half of 2009. As far as the residential building complex located at Gymnastiriou Street at Mortero N Erythrea is concerned, its contribution to the Group revenue from property sales amounted to euro 83 thousand during the same period.
SALE AND LEASEBACK AGREEMENTS
During the first half of 2009, the company with the intention of the partial repayment of loan facilities with Alpha Bank has repurchased before maturity the Building A and 204 parking spaces at the fourth basement of the Building complex at 24 Kifissias Avenue in Maroussi from Alpha Leasing. The repurchase price was defined at euro10.5 million (it includes the outstanding notional of the sale and leaseback agreement plus accrued interest at the repurchase date). At the same date, the company had signed a new sale and lease back agreement with Alpha Leasing for the above mentioned ownerships. The sale and lease back agreement of euro 26.4 million signed comes to its maturity on April 4, 2019 with duration for 10 years. The interest rate defined is Euribor 3month plus a spread of 2.50% (not changed in comparison with the previous contract). The net inflow from the repurchase and the new sale and leaseback agreement was used for the repayment of loans to Alpha Bank.
BVIC Group's revenue during H1 2009 reached euro 27.3 million, a 1.9% decrease compared to H1 2008. Sales of residential assets generated euro 1.2 million of revenue in H1 2009, whereas during the same period in 2008 they generated euro 4.3 million in revenue.
The Group's rental revenue increased by 11.2% year-on-year to euro 25.5 million in H1 2009. New lease agreements that came into effect in H2 2008 led to a 6% increase in rental revenue in H1 2009, and there was 5% like-for-like growth in income revenue from the lease indexation to Greek CPI and 100 bps. BVIC Group's EBITDA (earnings before interest, tax, depreciation and amortisation) stood at euro 6.8 million, compared to euro 84.9 million in H1 2008. This decrease stemmed mainly from the fact that no investment property under construction was completed and there was no fair value adjustment on investment property in H1 2009, whereas there was a net gain from fair value adjustment on investment property of euro 85.6 million in H1 2008 mainly due to the completion of 340 Syggrou Avenue.
Net finance expenses stood at euro 12.9 million, compared to euro 46.6 million in H1 2008. Finance expenses were 41.7% lower in H1 2009 due to the effect of the interest rate swap that the Group entered into in 2006, as well as the fall in interest rates over the period.
Moreover, net financial expenses in H1 2008 were significantly burdened by a euro 24 million expense from the fair value adjustments of the derivatives, whereas in H1 2009 the mark to market of the derivatives was nearly nil. All three of these factors led to a 72.4% year-on-year decrease in net financial expenses. The Group's loss after tax for the period was euro 6.3 million, compared to a profit after tax of euro 34.8 million during H1 2008.
BANK DEBT AND FINANCE LEASES RESTRUCTURING
Significant progress has been made with the negotiations with the banks relating to the extension of the repayment schedule and the restructuring of most of the Group's loan contracts and sale and leaseback agreements. With regards to the Group's loans, in H1 2009 the euro 125 million loan with Alpha Bank and Pireaus Bank, relating to the project under development at Votanikos, was restructured, extending the maturity by 9 months to the 31/3/2010.
Also, amendments to loan contracts of euro 20 million, referring to working capital, were signed with Piraeus Bank. These amendments provide an extension of the maturity date and a postponement of the repayment schedule. These amendments postpone the first payment by a year to the 30.6.2010. Amendments to loan contracts referring to working capital amounting to euro 57.5 million were signed with Emporiki Bank. They refer to amendments to the repayment schedule and to the extension short term payments of approximately euro 30 million to a non-short term period. The amendment provides also for the extension of the maturity date up to 2013.
During the same period, the repayment schedule of a euro 5.1 million loan with the National Bank of Greece was amended. The first instalment out of a total three equal instalments of the repayment schedule was set for the 31.12.2009. As far as the finance leases are concerned, the sale and lease back agreement for 340 Syggrou Avenue with Emporiki Leasing and ATE Leasing was amended. The amendment includes changes to the initial repayment schedule instalments, postponing the repayment of the notional debt to a non-short term period. More specifically, the amendment of the repayment instalments as of 1.1.2009 leads to a decrease of the notional total repayment for the period 1.1.2009 to 30.6.2010 amounting to euro 11 million. The amendment also changes the interest rate from Euribor 1month plus a spread of 1.80% to Euribor 3month plus a spread of 1.80% as of 1.7.2009.
VOTANIKOS SHOPPING MALL
During the 1st quarter of 2009, the Council of State adjourned twice over the matter of the constitutionality of the Law 3481/2006 and, therefore, the legality of the shopping mall building permit. BVIC management is awaiting the publication of the court decision in order to engage upon a course of action concerning the development of the project at Votanikos. In any case, it is clear that if the building coefficient of 1.6 does not apply then the transfer of BVIC's property to the Municipality of Athens also does not apply and the company's management will revoke the grant of the property to the municipality and will claim for rightful compensation amounting to euro 280 million.
RESIDENTIAL PROPERTIES
The construction works for the completion of the residential properties on land plots of 18,000 sqm (Building Blocks 270 and 271) in the municipality of N.Erythrea are proceeding at a fast pace. The project includes the development of 45 detached residential units which are planned for completion within the current year. Ten of these residential units have already been sold and delivered to the buyers. During the first half of 2009, the Group signed sale contracts of approximately euro 1.2 million for residential properties at the building complex located at Patmou & Agrafon Street and for residential properties located at Apollonos and Mavromichali Street in Kefalari. More specifically, the revenue from the property sales of Patmou & Agrafon Street amounted to euro 420 thousand while the revenue from the property sale of Apollonos and Mavromichali Street in Kefalari amounted to euro 707 thousand during the first half of 2009. As far as the residential building complex located at Gymnastiriou Street at Mortero N Erythrea is concerned, its contribution to the Group revenue from property sales amounted to euro 83 thousand during the same period.
SALE AND LEASEBACK AGREEMENTS
During the first half of 2009, the company with the intention of the partial repayment of loan facilities with Alpha Bank has repurchased before maturity the Building A and 204 parking spaces at the fourth basement of the Building complex at 24 Kifissias Avenue in Maroussi from Alpha Leasing. The repurchase price was defined at euro10.5 million (it includes the outstanding notional of the sale and leaseback agreement plus accrued interest at the repurchase date). At the same date, the company had signed a new sale and lease back agreement with Alpha Leasing for the above mentioned ownerships. The sale and lease back agreement of euro 26.4 million signed comes to its maturity on April 4, 2019 with duration for 10 years. The interest rate defined is Euribor 3month plus a spread of 2.50% (not changed in comparison with the previous contract). The net inflow from the repurchase and the new sale and leaseback agreement was used for the repayment of loans to Alpha Bank.