LAMDA Development:  First Quarter 2016 Financial Results

Reaffirming the positive trend that started in mid-2013 and despite the adverse economic environment this year, EBITDA of our three Shopping Centers posted a remarkable increase of 7,8% versus last year, reaching €11,1 million in the first quarter of 2016.  Consolidated EBITDA before valuations reached €9,4 million, posting an increase of 10,6% compared to the equivalent period last year.

SIGNS OF RECOVERY IN OUR RETAIL INDICATORS

Aggregate shopkeepers' turnover in our three malls increased by 1,4% versus the first quarter of 2015, while total customer visits posted a marginal increase of 0,8%.  Average occupancy of our Shopping Centres' exceeds 99%, 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.

Operational profitability of “The Mall Athens” reached €6,8 mil., showing a remarkable increase of 7,9%.  It is also noted that shopkeepers' turnover was increased by 1,0%, while customer visits remained flat.  Operational profitability of “Mediterranean Cosmos” in Thessaloniki posted an increase of 5,7% reaching €3,7 mil.  Shopkeepers' turnover and customer visits were increased by 0,5% and 2% respectively, while the Centre is fully occupied.  As far as “Golden Hall” is concerned, its operational profitability for the first quarter reached €4,0 mil., showing also a remarkable increase by 11,1%.  Shopkeepers turnover as well as customer visits were increased by 3,3% and 1,2% respectively. All the above indicators reaffirm the leading status of our shopping centers in the retail market and their strong resilience to the unfavorable economic environment. 

FINANCIAL RESULTS ANALYSIS

Following IFRS standard 11 that is effective from 1/1/2014, our company has been obliged to discontinue consolidating joint ventures by the proportional method and henceforth, joint ventures have been 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:

Office buildings had a positive contribution of €0,4 million to the Group profitability, the same as during the first quarter of 2015. 

Total EBITDA before valuations reached €9,4 million, showing an increase of 10,6% which is mainly attributed to the increase in the operational profitability of our Shopping Centers.  At a consolidated level, net profit for the first quarter of 2016 reached €1,6 mil. versus €1,4 mil. in the equivalent period last year.  The slight increase in net interest expense and taxes was offset by the significant increase in the Shopping Centres operational profitability by €0,8 mil.

Net Asset Value reached €408,3 million (€5,26 per share), almost unchanged versus 31/12/2015.        

Summary of consolidated financial figures

LAMDA Development stock is still trading at a discount compared to its Net Asset Value.  Both our share as well as the General Index have not deviated significantly from previous year close.  More precisely, with a share price of €4,03 on 20/05/2016, the current discount versus the NAV per share approximates 23%.

The Net Loan to Value Ratio (Net LTV) of the Group's investment portfolio stands at 40,9%, a level that can be deemed very satisfactory.  Finally, as of 31/03/2016 the Company has acquired a total of 2.106.476 treasury shares, representing 2,64% of the entire share capital, with an average acquisition price per share of €3,85.

Regarding the announcement of the financial results, CEO of Lamda Development Mr. Odysseas Athanasiou stated:

“In the first quarter of 2016 we continued to outperform the market with positive operational results for our company.  Our successful customer oriented strategy and the trust that the public has shown in our Shopping Centers, makes us feel optimistic that despite the difficult economic climate we shall continue on the same track in the future”.

The summary of the first quarter financial figures for 2016 will be posted on the company's website (www.lamdadev.com) and on the website of the Athens Exchange.