The consolidated net results, after taxes and minority interests, of LAMDA Development (the “Company”) for the nine months 2021 amounted to profits of € 209.6 million against a loss of € 19.2 million in the corresponding period in 2020, as announced today the listed.
The financial results of the Company already include from the period of Half 2021 the positive impact of € 306 million that came from the revaluation, by an independent appraiser, of the value of the Investment Properties of HELLENIC SA.
1 Concerns a positive effect from the acquisition of an additional 50% of the company LAMDA MARINAS INVESTMENTS SMSA and therefore the control of the company (accounting treatment)
In terms of operating profitability, the consolidated EBITDA earnings, before valuations of the investment portfolio, amounted to € 28.6m, showing an increase of 10% compared to the corresponding period in 2020. This increase was due to (a) the significant increase in the operating profitability of EBITDA of Shopping Malls during the Third Quarter 2021 (July-September 2021), which significantly reduced the negative effects recorded during the first half of 2021 and (b) the positive impact of the full consolidation of Marina Floisvou for the entire period and the contribution of Marina Ag. Cosmas for the period July-September 2021.
EBITDA earnings of The Mall Athens, Golden Hall and Mediterranean Cosmos in the Nine Months of 2021 amounted to € 31.2m, showing a marginal decrease of 2% compared to the corresponding period in 2020. The main factors of this marginal decrease in operating profitability are (a) the suspension of the operation of the Shopping Centers for the longest period2 and (b) the statutory provision of reductions in the rents of shopkeepers / employees for a longer period in the period of the Nine Months 2021.
According to the relevant legal provisions, the Company proceeded to a reduction of rents by 40%3 for a total period of 6 months during the Nine Months 2021 (compared to 40% for the months of March and June 2020 and 70% for the months of April and May 2020). According to the relevant legal provisions, for the months July to September 2021 in the entire retail trade (including the Catering sector) no discounts / reductions were applied to the monthly rent.
The EBITDA profits of Shopping Centers in the third quarter 2021 amounted to € 15.2m, showing a significant increase of 23% compared to the corresponding period in 2020. This increase was mainly due to: (a) the significant increase in the consumption of the customers of the Shopping Malls savings during the pandemic), (b) the significant increase in traffic and (c) the lower impact due to the implementation of the legal provisions for the provision of discounts / reductions in rents. It should be noted that the EBITDA profits of the Shopping Centers in the third quarter of 2021 are marginally lower (3%) than the historically high levels of operating profitability of the corresponding period in 2019.
2 The “Mall Athens” and “Golden Hall” Shopping Centers in Athens remained closed for a total duration of 95 days in the Nine Months 2021 (65 days in the Nine Months 2020). The “Mediterranean Cosmos” Shopping Center in Thessaloniki remained closed for a total duration of 71 days in the Nine Months 2021 (65 days in the Nine Months 2020), while during February 2021 its stores operated using the click away method. Between 24.04.2021-14.05.2021 all LAMDA Shopping Centers operated with the click inside and click away method. From 15.05.2021 the restrictive measures click inside and click away were abolished.
3 According to the relevant legislation, the tenants / shopkeepers were exempted from paying the full (100%) of their rent for the period January-May 2021 while the Ministry of Finance reimburses the LAMDA Development Group by paying 60% of these rents. For the month of June 2021, the tenants / shopkeepers in the retail sector received a 40% rent discount while the tenants / shopkeepers in the Catering / Entertainment / Cinema sectors were exempted from paying the full (100%) of their rent with the Ministry of Finance the LAMDA Group at a rate of 60% of these rents.
We remind you that the Company, in the midst of the pandemic crisis, negotiated new or renewed commercial cooperation agreements with financial terms that were in force before the pandemic crisis, enhancing the value of the Shopping Centers. The value of the Shopping Centers amounted to € 870m on 30.09.2021, as shown by the valuation of the independent appraiser (Savills), increased by approximately € 15m against the corresponding value on 31.12.2020. It should be noted that a profit was obtained from the valuation of the Shopping Centers for the third consecutive time during 2021.
Regarding the main indicators of the Shopping Centers for the period of the Third Quarter 2021 (July-September), after the lifting of the restrictive measures click-inside / click away in the operation of the stores (15.05.2021) and despite the continuing restrictions (p. x. limitation in the number of visitors), it is worth emphasizing the following:
• The average occupancy of the Shopping Malls remained unchanged at around 99%.
• The total turnover of the stores of the Shopping Centers recorded a significant improvement compared to the corresponding period in 2020 (+ 22% in the third quarter of 2021). In particular, the turnover of the stores in August and September 2021 increased by 28% and 27% respectively compared to 2020. In October 2021 there was an acceleration of the growth rate of the turnover of the stores (+ 34%).
• The total turnover of the stores of the Shopping Centers is in the process of recovery towards the historically high levels of 2019. In particular, in September 2021 the total turnover of the stores was at levels 4% lower than in 2019. In October 2021 the total turnover of stores exceeded the levels of 2019 by 5%.
• The total number of visitors to the Shopping Centers increased significantly compared to the corresponding period in 2020 (+ 13% in the third quarter of 2021). In particular, the total number of visitors in August and September 2021 increased by 22% and 14% respectively compared to 2020. In October 2021 there was an acceleration of the growth rate of the total number of visitors (+ 29%).
The Net Asset Value (NAV) of the Company on 30.09.2021 amounted to € 1,380m (ie € 7.81 per share), increased by 25% compared to 31.12.2020. We remind you that in the Net Asset Value (NAV) has already been incorporated since 30.06.2021 the positive impact of € 306m that resulted from the revaluation of the value of Investment Properties of HELLENIC SA.
Important developments regarding the work of Elliniko
The Company has already carried out a variety of precursors / preparatory works in relation to the work of Elliniko. This is reflected in the increase in expenses in the Nine Months 2021 (€ 20m compared to € 5.6m in the corresponding period in 2020).
Regarding the demolition works of specific buildings, the first phase of the works has already been completed since September 2020 (concerns 30% of the total volume of buildings to be demolished). The second phase has started in October 2021 and is expected to be completed in April 2022 (concerns 50% of the total volume of buildings to be demolished).
The studies for the main phase of infrastructure construction have been completed in their entirety before the completion of the Transfer of Shares (25.06.2021). The tender for infrastructure projects amounting to € 250m was announced in July 2021 and the submission of the relevant bids is expected in December 2021. The studies for the Metropolitan Park and the sports facilities have already started. Finally, the preliminary works regarding the renovation and landscaping of the beach have already started in the summer.
Regarding the reservations of houses-apartments for the future acquisition of apartments on the Residence Tower of Marina and the Beach Villas, the potential future income corresponding to the deposited customer advances so far far exceeds the initial estimates of the Company.
For the apartments of the Residence Tower of Marina, customer advances have already been submitted for 77% of the sold area (corresponding to approximately 30 thousand sq.m.), which correspond to potential future revenues of € 348m, upon completion of the respective sales.
For the Villas, customer advances have been submitted for all 27, with the respective potential future revenues from the sale of the plots being estimated at € 188m, upon completion of the respective sales.
Impact of the COVID-19 pandemic and the energy crisis
The COVID-19 pandemic continues to affect the activities of the Shopping Malls during 2021. The overall impact for the Nine Months 2021, due to the suspension of the Shopping Malls, the legally provided reductions in the rents of the shopkeepers / tenants as well as the Restrictive measures taken to limit the spread of the pandemic, after taxes and minority rights, amount to € 0.4m, ie € 0.002 per share.
After the lifting of the restrictive measures click-inside / click away in the operation of the stores (15.05.2021) and despite the continuing restrictions (eg limitation in the number of visitors), there is a significant increase, compared to 2020, in both consumption ( store sales) as well as the number of visitors to the Shopping Malls.
Regarding the main indicators of the Shopping Centers, in October 2021, accelerating growth rates were observed in the number of visitors and in the sales of stores as follows:
• The total turnover of the stores in October 2021 increased by 34% compared to 2020 (+ 27% in September 2021).
• The total turnover of the stores in October 2021 exceeded the levels of 2019 (5% higher compared to October 2019).
• The total number of visitors to the Shopping Malls in October 2021 increased by 29% compared to 2020 (+ 14% in September 2021).
The increased energy costs, observed recently in the international markets and in Greece, are not expected to affect the operating costs of the Shopping Centers due to the “locked” energy prices based on agreements with the respective providers for the whole of 2021 and until the end of the existing ones. contracts at the end of April 2022. The cost of energy (on an annual basis) for the Shopping Centers amounts to approximately € 3m. Most of these costs relate to public spaces in the Shopping Malls, which are undertaken by the shopkeepers / tenants.
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Source From: Capital
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