Consolidated earnings after taxes of euro 2.6 mn for the 9M 2008 Substantial increase in profitability is expected during the last quarter of 2008
PASAL Development S.A. announces that consolidated earnings after taxes and minority interest for the 9M 2008 amounted to 2.6 mn euro compared to 6.0 mn euro in 2007.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 3.5 mn euro compared to 10.1 mn euro in 2007, while consolidated earnings before taxes amounted to 1.3 mn euro compared to 8.6 mn euro the respective period of last year. The reduction is mainly due to the completion timing of investment property. During 2008, the largest developments (shopping center at Piraios Str., logistics center) will be completed during the 4th quarter, in contrast to 2007 as three development properties were completed during the 2nd and 3rd quarter. From the completion of the development properties a surplus of at least 35 mn euro approximately is expected, The net asset value before deferred taxation (NAV) on 30.09.2008 amounted to euro 97.8 thousand (euro 6.5 euro/share) while respectively the net asset value after deferred taxation (triple net NAV) amounted to euro 83.7 thousand (euro 5.6 per share). By the end of 2008, a significant increase of the net asset value (NAV) is expected due to the completion of investments and their valuation at market value.
The company s net debt (debt minus cash & cash equivalents) at the end of the 9-month period amounted to 101.5 mn euro, including a loan of 30 mn for the acquisition of a 37% stake in Piraeus REIC. The loan to value ratio (LTV) amounted to 52%, without including the surplus that will be recorded by the end of the year, when the ratio will be reduced to even lower levels. From the listing of the company on the Athens Exchange in 2008 and the raising of 23.3 mn euro, the company has invested 13.1 mn euro until today. The company has secured financing for all projects implemented currently or for those it has committed to commence during 2009.
The most significant investments underway refer to:
- The shopping center (AthensHeart) at 180 Piraios Str whose opening will take place on December the 4th of 2008. The total area amounts to 58,000 sq.m. with 750 underground parking spaces and 20,000 sq.m. lettable area, where 80 stores and dining areas will be housed. The lettable area has been leased by 95% rate, whereas the remaining area is agreed and the final contracts are expected to be signed soon. From the operation of this shopping center, PASAL expects annual revenue (constant leases) of approximately 6 mn euro, without including turnover rents and income from parking.
- In December 2008, the construction of the logistics center in Elefsina, with a total area of 33,900 sq.m., will be completed. PASAL continues the implementation of its business plan, taking into account the current financial conditions and at the same time pursuing the emergence of new investment opportunities in Greece and abroad.
The company aims at investing in the promising sectors of shopping centers (malls, big boxes) and retail outlets in Athens, Thessalonica and urban centers in remaining Greece, which nevertheless are affected less by the financial crisis.
The cooperation with other real estate developers and group of companies from Greece and abroad remains a strategic selection.
The brief financial information for the period ended on September 30th 2008 will be published in the newspaper Naftemporiki on 20/11/2008, while the brief interim financial statements will be posted on the company's website (www.pasal.gr ) the same day.