Following the profitability record of 2016 and despite the prevailing adverse economic environment, EBITDA of our three Shopping Centers further increased by of 4.5% year-over-year, amounting to €11,6 million in Q1 2017.  EBITDA on a consolidated basis (before valuations) reached €9,7 million, an amount which registers an increase of 3.2% year-over-year.
RETAIL INDICATORS

During Q1 2017 a mix of extreme weather conditions and prolonged public strikes on mass means of transportation significantly affected the access of the consumer public to our Shopping Centers drifting along the major retail indicators. Aggregate shopkeepers' turnover in our three Shopping Centers decreased by 4,7% year-over-year, while total customer visits decreased by 6.4%. Average occupancy of our Shopping Centres' approaches 98%, with commercial interest for retail spaces still vibrant. 

Nevertheless, the concept differentiation of our Shopping Centres compared to the rest of the domestic retail market is proven by the overwhelming preference of the consumer public. Shopkeepers continue to enjoy ample support via marketing, promotional and communication activities for their benefit.

EBITDA of “The Mall Athens” reached €7,1 million, showing an increase of 4.4%.  It is noted that shopkeepers' turnover was decreased by 4.7%, while customer visits were decreased by 5.8% with main cause the strikes on public transportation restricting the access to the Shopping Center. EBITDA of “Mediterranean Cosmos” in Thessaloniki posted an increase of 2.7% amounting to €3,8 million. Shopkeepers' turnover and customer visits were decreased by 4.6% and 10.1% respectively, while the centre has reached its full capacity in terms of occupancy. The deterioration of center's indicators was due to the extreme weather conditions in Northern Greece (the Shopping Center ceased operations for two days) working prohibitively for the consumer public. As far as “Golden Hall” is concerned, EBITDA for Q1 2017 reached €4,2 million, resulting in a remarkable increase of 5.0%. Shopkeepers' turnover was decreased by 4.8%, while customer' visits remained slightly unchanged.

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 contributed €1,6 million to the Group operational profitability, same as Q1 2016.

Total EBITDA (on a consolidated basis) before valuations reached €9,7 million, with an increase of 4.5% which is mainly attributed to the increase in the operational profitability of our Shopping Centers. Net Results (on a consolidated basis) showed profits of €1,7 million for Q1 2017 versus profits of €1,6 million in Q1 2016. The slight increase in net interest expense was offset by the increase in the Shopping Centres operational profitability of €0,5 million.

Net Asset Value (before taxes) reached €405,5 million (€5.24 per share), almost unchanged versus 31/12/2016.        

Summary of consolidated financial figures

The Company's stock is still trading at ATHEX at a discount versus NAV per share. Since the beginning of 2017 both company's stock as well as the General Index have not deviated significantly from previous year closing levels. More specifically, at a share price of €4.99 on 26/05/2017, the discount is about 5%.

The Net Loan to Value Ratio (Net LTV) of the Group's investment portfolio stands at 40,9%, a very satisfactory level. Finally, as at 31/03/2017 the Company has acquired a total of 2,366,007 treasury shares, representing 2.97% of its share capital, with a weighted average purchase price of €3.87 per share.

IMPORTANT EVENTS

During Q1 2017 LAMDA MALLS S.A. a newly established company has been incorporated with share contribution of the owner companies of GOLDEN HALL and Mediterranean Cosmos. Lamda Development following its strategy towards strengthening its position to the real estate market executed on 03/04/2017 a strategic agreement with Värde Partners with Värde entering the LAMDA MALLS S.A. by acquiring the 31,7% of the company at a purchase price of €61.3 million. 

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

“In Q1 2017 we continued the positive trend of operational profitability recorded in 2016. Focusing in growth opportunities and international cooperations and dedicated to our customer oriented approach we continue despite the adverse economic conditions, and extending our efforts in order to improve future performance and results. Towards that is the recently released strategic cooperation with Värde Partners aiming to a dynamic growth of Lamda Development Group”.

The summary of the first quarter financial figures for Q1 2017 will be posted on the company's website (www.lamdadev.com) and on the website of the Athens Exchange.