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How much did the lockdown cost to Lamda Development

The 66-day long lockdown caused a loss of revenue for Lamda Development due to the novel coronavirus restriction measures. However, the listed company responds with the positive contribution to the size of the Golden Hall expansion, and the start of works at Elliniko.

According to the company’s presentation at the 9th Greek Investment Forum in New York, total revenue losses due to the suspension of its malls amounted to €11.7 m, with net income after taxes and minority rights falling by €8, 1 m or 0.046 euros per share. The reduction of income from March to June accounts for 54.5%, compared to projected revenues. These losses are attributed to a 40% discount on rents in March and June, which rose to 70% in April and May.

For 2021, Lamda Development has as leverage the projected increase in rents and the increase in rental revenue, as well as the rise in advertising revenue, the exploitation of parking spaces and the expansion of Golden Hall, which is estimated tohave a significant impact on financial figures. Its shopping malls account for 6.8%, compared to 4.75% in Lisbon and Madrid and 5% in Milan, with the European average at 4.57%.

The company estimates that on an annual basis, a possible 4% increase in operating profitability from retail sales would lead to an increase in domestic net worth to around € 30 million.

The size of the listed, additional value is expected to be created by the contribution of Mall Athens to the company Lamda Malls and its listing on the stock market within the next two years.

For the Metropolitan Intervention in Elliniko, Lamda estimates that the preliminary works will start by the end of the month, while the transfer of the shares of Elliniko SA is expected to take place in the fall of 2020.

Elliniko corresponds to an investment of €8 bn euros, the first phase is €2 bn, the estimated capital expenditure (Capex) is €7 bn, of which €1.5 bn corresponds to the first phase of Capex.

Original Source: Capital.gr

Adaptation/Summary: Kiki Athanasiadis

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