NAV (net asset value) per share before deferred tax stood at euro 20.61, a 7% increase compared to Q1 2006, and 55% year-on-year. The main driver of the NAV increase in Q2 2006 was the completion of one of the two leisure and retail buildings as well as a parking station at Complex II at Delta Falirou.
NAV per share after deferred tax stood at euro 16.17, a 5% increase over Q1 2006 and a 51% year-on-year increase.
BVIC Group's investment properties for Q2 2006 were euro 1.12 billion, up 10% from Q1 2006 and 63% year-on-year. This was due to the completion of part of Complex II at Delta Falirou, as well as the acquisition of the land plot at 340 Syngrou Avenue, from the purchase of 99% of the shares of the company 'ELFINKO S.A.'
BVIC Group's revenue totalled euro 24 million in Q2 2006, a 30% increase compared to H1 2005, based on a 9% increase in rental revenue mainly from new lease agreements signed in 2005, as well as property sales, mainly residential, which contributed euro 3.8 million.
BVIC Group's EBITDA (earnings before interest, tax, depreciation and amortisation) stood at euro 140 million, a 182% increase over H1 2005. This was based mainly on a net gain from fair value adjustment on investment property of euro 138 million in H1 2006, compared to a euro 47 million net gain in H1 2005.
The Group's profit after tax for the 1st half was euro 98 million, a 417% increase compared to euro 19 million during H1 2005.
Delta Falirou Complex II
BVIC Group completed the construction of the leisure and retail complex II at Delta Falirou in June 2006. It consists of two buildings with a total lettable area of 13,200 sqm and 738 parking spaces. The complex is almost fully leased, to Village Roadshow, Media Markt and Giannelos, a parking station operator, with a total yearly lease income of euro 4.5 million. The lease agreements include an annual lease adjustment on the basis of Greek CPI plus 100 bps.
A fire broke out on the 31 July, 2006 at Complex II, causing significant damage to one of the two buildings with a lettable area of 3,800 sqm. The building was fully insured by Alpha Asfalistiki, which will cover the replacement cost for the damage. Therefore, there will be a slight delay in the NAV contribution of the aforementioned building from its revaluation surplus upon completion.
The building and the parking station that were not damaged by the fire contributed euro 1.7 in NAV per share before deferred tax for the period ended 30 June 2006. The reconstruction of the damaged building has already commenced, and we expect the building to be completed during H2 2006, and the remaining contribution of approximately euro 0.3 NAV per share before deferred tax to be incorporated during the year.
340 Syngrou Avenue
BVIC finalised the purchase of 99% of the shares of the company 'ELFINKO S.A'. The latter owned a land plot of approximately 5,850 sqm at 340 Syngrou Avenue in the municipality of Kallithea - Athens that has been included in our investment properties.
BVIC plans to develop a commercial building, on the aforementioned land plot, of over 14,000 sqm of gross lettable area, including storage as well as 400 parking spaces. The estimated total cost, including plot acquisition and development cost of the project, is approximately euro 40 million. We have already applied for a building permit for the commercial centre.