Consolidated earnings after taxes of euro 2.2 mil. euro for the 1st quarter of 2008
The company implements its investment development plan
PASAL Development S.A. announces that the consolidated earnings after taxes and minorities for the three-month period ended on March 31st 2008 amounted to 2.2 mil. euro versus 2.1 mil. euro in Q1 2007, posting an increase of 7%. Earnings before taxes, interest and depreciation (EBITDA) posted an increase of 8.3%, amounted to 3.4 mil. Euro compared to 3.1 mil. euro in 2007.
During the 1st quarter of 2008 (Q1b 2008), Pasal proceeded with the following corporate actions:
- A commercial property was completed and set in operation in Thessaloniki (in N. Efkarpia facing Egnatia Road)
- Two new properties were purchased: (i) A land plot in Oraiokastro area in Thessaloniki, with a total area of 40,832 sq.m. facing Egnatia Road and (ii) a land plot on Alimou Ave. in Athens, with a total area of 3,900 sq.m. The initial investment for the two purchases amounted to 14 mil. euro.
- The sale of two investment properties developed by Pasal on Kifisias Ave. was completed, for a total amount of 16 mil. euro. The sales proceeds along with the capital raised from the company's IPO in December 2007 will be used to strengthen the company's investment plan.
The company from its IPO on the Athens Stock Exchange (commencement of trading on 4/1/2008), raised 23.3 mil. euro capital; out of which 7.5 mil. euro is invested as of the end of Q1 2008. The company's net debt (loans minus cash & cash equivalents) at the end of the quarter amounted to 26.7 mil. euro, and the loan to value ratio (LTV) remains at low levels at 24.5%, while it is expected to rise with the purchase of new investment property.
During 2008, one of the most important projects currently under development by Pasal Development is expected to be completed, the shopping center at 180 Pireos Str. in Tavros that will accomodate 80 retail stores as well as dining areas. The company is at final negotiations with well known brands for signing leases and within the first half of the year, it is estimated that the largest part of lettable areas will be leased. The shopping center's opening is expected in December 2008 with estimated initial annual income of 6 mil. euro. The logistics center in Elefsina, with a total area of 33,900 sq.m. will also begin its operation during 2008.
In the context of implementing its investment plan, PASAL is planning new developments of 150 mil. euro during the next two-year period, in Athens and other regions in Greece and the Balkans, from which 95 mil. euro refer to investments undertaken in 7 different projects.At the same time, the Company will pursue other investments as well. Particular emphasis will be given to the promising sectors of shopping centers (malls, big boxes) and retail outlets in Athens, Thessaloniki and in other large secondary cities. In the context of developing activities in new markets, particularly in the Balkan region, Pasal Development is in the process of establishing a subsidiary company in Serbia in the near future.
The brief financial information for the three-month period that ended on 31 March 2008 will be published in the newspaper "Naftemporiki" on 28/5/2008, while the brief consolidated and company interim financial statements will be posted on the company's website (www.pasal.gr ) on the same day.