LAMDA Development S.A. (LAMDA.AT) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by. I'm Constantino, your Chorus Call operator. Welcome, and thank you for joining the LAMDA Development conference call and live webcast to present and discuss the 9 months 2025 financial results. [Operator Instructions] The conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Apostolos Zafolias, Chief Strategy and IR. Mr. Zafolias, you may now proceed.

Thank you, and good evening to everybody, and thank you for joining us to discuss our results for the 9 months of 2025. During the period, we delivered strong results across all segments. Starting with record results for the Malls, reflecting robust operating performance, record results in the Marinas despite a temporary reduction in available berths at Agios Kosmas in anticipation of the upcoming renovation and over EUR 32 million of EBITDA before valuations for the Ellinikon, representing a 5% increase on a year-over-year basis and based on very strong residential sales as well as accelerated construction progress. These record results were also accompanied by the prepayment of a EUR 230 million bond, which we did in the beginning of July that had a coupon of over 4.7%. Thereafter, the successful issuance of a EUR 500 million bond in November at 3.8%. I note that this is not reflected in our September 30 cash balances yet since it was done after the quarter end. And it strengthened our liquidity and reaffirmed our strong access to capital markets. Also, we had the beginning of a transformational EUR 450 million transaction with the ION Group to develop a global R&D and innovation campus. And that is a transaction that we believe will have a great benefit not only to the Ellinikon development, but also Athens and Greece as a whole because for the Ellinikon, it launches the business district, the final component of the master plan. It establishes a true innovation hub, which we expect will draw more tech companies in the Ellinikon, and it anchors the Ellinikon as a world-class destination, attracting global partnerships and international demand. A few words about our results before passing it over to Harris. At the group level, consolidated EBITDA reached EUR 253 million or 2.7x higher on a year-over-year basis, reflecting the strong momentum across all the businesses in the portfolio. The group's net result reached EUR 116 million as compared to losses in the 9-month 2024 period, and that led to an NAV increase to EUR 9.20 per share. I note that this is before the contribution from the ION transaction that I just mentioned. Our Malls delivered their strongest 9-month period on record with operating EBITDA from the 4 malls reaching EUR 68.7 million, extending 3 consecutive years of steady growth and setting new highs across nearly all KPIs. At the same time, strong commercial performance has been achieved for the malls under development with strong progress on HoTs signed for the Riviera Galleria at 76% and 66% of heads of terms signed for the Ellinikon Mall. The success of our strategy to create unique destinations also carries over to our Marinas, which registered another record EBITDA of EUR 17.2 million. Lastly, the Ellinikon had an EBITDA before valuations of EUR 32 million, primarily on the back of a significant increase in revenues from the sales of residential developments. Reflected in that is the fact that almost all units that were made available for sale through October had been sold or reserved, reflecting the ongoing commercial success of our residential sales team. I will now pass it over to Harris Goritsas, our Group CFO, who will walk you through the key highlights of the financial results in more detail.

Thank you, Apostolos, and good evening to all from my side as well. I will provide more color on our 9 months 2025 results with an overview of the key financial highlights across the group's 3 main business segments: Malls, Marinas and Ellinikon, followed by the most important highlights at consolidated group level. So let's start with LAMDA Malls, where our 4 operating malls delivered another record performance with operating EBITDA reaching EUR 68.7 million, up by 5% year-on-year. This was driven by a 5% increase in base rents and a 10% rise in parking revenues, both at the back of a solid operational momentum, mainly higher footfall by 2% and tenant sales hitting an all-time high of EUR 620 million. Regarding our new malls under development, both are moving into the construction phase. Concrete works at the Riviera Galleria are nearing completion, while excavation works at the Ellinikon Mall are complete. As of September 2025, the total gross asset value of the LAMDA Malls Group exceeded EUR 1.7 billion with a value of the 4 operating malls reaching a new record high, exceeding EUR 1.3 billion. For a detailed analysis of LAMDA Mall's financial results, please refer to Slides 14 to 18 of the results presentation. Moving now to the Marina segment. It continued its strong growth trajectory, achieving record results in 9 months 2025 with EBITDA growing by 9% year-on-year to EUR 17.2 million. This strong performance is driven by sustained demand at our 2 marinas, supported by annual contractual fee uplifts and higher revenue from yacht transits. Those results were achieved despite the fact that Agios Kosmas Marina berth capacity is being gradually reduced to enable major upgrades and the reconfiguration to host larger yachts. These enhancements will have a negative short-term impact on our financials going forward, but are expected to further boost annual revenues once completed. Details on Marina performance are available on Slide 19. Let me now turn to our landmark Ellinikon project and highlight its key achievements to date. As of November 30, 566 out of the total 671 units launched in the Little Athens neighborhood have been sold or reserved. This represents an absorption rate of 84%. The decline compared to the half 1 absorption rate, if we all remember, was 94% and is fully attributable to the increase in the available inventory, mainly the release of the 112 units in November 2025. Revenue recognition for residential developments in the 9 months 2025 reached EUR 215 million, an 80% increase versus the respective period in 2024, starting to showcase the significant contribution of residential developments in our results as construction progress continues. Moreover, during the 9 months results, EUR 105 million worth of revenues from property sales have been also recognized. As a result of this overall commercial success in our Ellinikon project, total cash proceeds from sales and leases since projects launched back in 2021 and up to November 30, 2025, have reached the milestone of EUR 1.5 billion, out of which EUR 400 million collected in 2025. Details on Ellinikon cash collections are available on Slide 21. Finally, in the 9 months 2025, CapEx spending reached EUR 285 million, bringing the total CapEx for buildings and infrastructure works from the start of the project and until September 30 to EUR 849 million. Further details are shown on Slide 23. At the group level now, key highlights are as follows: Group consolidated EBITDA after valuation reached EUR 253 million in the 9 months 2025 results, 2.7x higher than the 9 months 2024 results, impacted by the positive operating performance in our business segment as analyzed and the positive impact from valuation gains as explained in our half 1 results call. It is important here to note that the European Central Bank reduced its policy rates by cumulative 175 bps over the period July '24 to June '25, while yields for our operating malls have been reduced by independent valuers by only circa 80 bps over the same period. This lag implies further scope for yield compression that will positively impact our results. Just to mention here that the 9-month results does not incorporate any new valuation appraisals from our third-party valuers. This will be done at the full year results. Group reported a net profit of EUR 116 million in the 9-month results compared to a loss of EUR 14 million same period last year. Details on EBITDA and net profit loss breakdown are shown on Slides 8 to 10 in the presentation. Group total investment portfolio reached EUR 3.7 billion from EUR 3.5 billion on December 31, 2024, supported by yield compression in our Malls business. Finally, cash remains at healthy levels with EUR 389 million reported as of end of September 2025, following the repayment of the EUR 230 million green bond in July 2025. With the successful issuance of our new EUR 500 million bond in November 2025, today's group cash is at the level of EUR 815 million. And with that, we conclude the key highlights of our 9 months 2025 results, and we can open the floor for questions.

[Operator Instructions] The first question comes from the line of Svyriadi Natalia with Eurobank Equities.

I hope you can hear me. Well, I will start from the end while we were talking for the interest rates now. And I have a question if you have at all thought how much would be the -- with the new bond that you have actually right now, how this would fix your interest rates going ahead versus what we have now, given that we remain -- the floating ones remain at this level. So what rates would we be guessing to see somewhere there? And then I also have a question on Ellinikon. I don't know if you want me to -- we can take it at any moment.

Yes. Sure, Natalia. Glad to answer the first question about the interest rate. With the new bond that was issued at 3.8% coupon, the average of the group is at 3.8% as well. Just to mention that -- so we have EUR 0.5 billion now plus the EUR 320 million that we have as bonds. And then we have around another, I would say, EUR 600 million in the Malls. So overall, the total cost of the group is 3.8%.

Okay. Yes. That's great. I made some calculations that I wanted to see how this would be. Okay, very nice. I also wanted to ask on the Ellinikon, if you have -- like if you could give us some view on the residential projects that are going to be marketed because I understand that up to October, you had run out of residential projects in the marketing process, so you could put in the market. So do you have -- what are the plans going ahead in this context?

Yes. Thank you, Natalia. That's an accurate observation. Basically, we -- as I mentioned earlier, we had essentially sold out all of the units that were available, and that was primarily due to the fact that there was a change in the building code regulations, which delayed the launch of some projects. So I think something like 98% or something like that were sold before the launches of the new projects that we just did in November. So to put some numbers around it, we launched 112 units in November, and we expect to launch another 330 units starting in Q1 2026, but over time through 2026.

[Operator Instructions] Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Zafolias for any closing comments.

Thank you all for joining our call today. Wishing everybody happy holidays and look forward to speaking to you in the beginning of the year.

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling. Have a good evening.