BABIS VOVOS INTERNATIONAL TECHNICAL S.A.
1st Quarter 2008 Financial Results
NAV (net asset value) per share before deferred tax stood at euro 19.44, a 3.9% decrease year-on-year and a 2.6% decrease compared to Q4 2007. The NAV decrease over year end 2007 derived from the fact that there was a significant increase of the finance expenses due to the mark-to-market of the Group's interest rate swap and limited sales of assets during the period.
NAV per share after deferred tax stood at euro 15.43, a 1.6% decrease year-on-year and a 1.2% decrease over Q4 2007.
BVIC Group's investment properties for Q1 2008 reached euro 1,257 million, increased by 5% year-on-year, and 2% from Q4 2007. The quarterly increase of euro 25.6 million stemmed from a euro 14.3 million in construction cost addition relating mainly to the Votanikos shopping mall and the commercial and office building at 340 Syggrou Avenue. Moreover, in the 1st quarter of 2008, BVIC Group repurchased from Proton Bank the 4th floor (1,000 sqm of GLA) as well as 23 parking spaces at the office building at 1-3 Kifissias Avenue which was developed by the Group. This asset was valued at euro 11.3 million whereas it was purchased for euro5.9 million, and a net revaluation gain of euro 5.4 million was recorded.
BVIC Group's revenue stood at euro 14.5m in Q1 2008, a 3% decrease compared to Q1 2007 mainly resulting from a 30% fall in sales of assets compared to Q1 2007. During Q1 2008 sales of assets include euro 0.8m from the sale of Building B at the HELEX complex to KanAm Grund. Additionally euro1.6 million of sales was recorded from the sale of residential units at Maroussi and N. Erythrea. During the first quarter of 2007 sales revenue amounting to euro 3.4m relates to the sale of Building C at the HELEX complex to Allianz.
BVIC Group's rental revenue stood at euro 11.9 million, a 4% increase compared to Q1 2007, based on the lease indexation according to Greek CPI and 100 bps.
BVIC Group's EBITDA reached euro 7.9 million, recording a 67% increase over Q1 2007. This was mainly due to the fact that there was a fair value adjustment of euro 5.4 million on the investment property at 1-3 Kifissias Avenue which was repurchased during Q1 2008. In Q1 2007 there was no fair value adjustment to the Group's portfolio.
Net finance expenses stood at euro25.4 million a 178% increase compared to Q1 2007, stemming mainly from a euro 13.8 million loss from the valuation of the Group's interest rate swap agreements. The above increase in finance expenses resulted in a loss after tax for the quarter of euro 6.2 million, a 20% increase compared to Q1 2007.
BUSINESS UPDATE
BVIC GROUP SALE & LEASEBACK AGREEMENT FOR EUR 80 MILLION
In January 2008, a sale and leaseback agreement for euro80 million was signed with Emporiki Leasing and ATE Leasing. The 20 year sale and leaseback agreement covers 100% of the lettable area, and common area, as well as the parking spaces of the development under construction at 340 Syggrou Avenue. Specifically, it covers 4,587sqm of office space on the 2nd and 3rd floor, 9,185sqm of retail space on the 1st floor, ground floor and basement of Syggrou Avenue, 2,133 sqm of storage space, as well as 400 parking spaces.
The Group has already signed a lease agreement with Media Markt for 81% of the retail space and 86% of the storage space and the total annual rental revenue is euro 2,340,000 for the first year leased. The remaining retail space as well as the office space is under negotiation and is expected to be let before the development is completed in July 2008. The completion of 340 Syggrou Avenue is expected to contribute circa euro1.6 per share to the NAV to be booked in Q3 2008.
HOTEL DEVELOPMENTS
a. Hotel development in Pountazeza Sounio
In January of 2008, BVIC received the third and final building permit for the Sounio project. The total Gross Lettable Area (GLA) of the three five star hotel units will be approximately 12,000 sqm located on a 67,000 sqm sea-side plot. The development will commence immediately and will be completed within 15 months.
b. Hotel development in Trizina Poros The Group is completing the development of a five star hotel with 291 rooms (670 beds) located on a 85,000 sqm sea-side plot. The development will be completed within the 3rd quarter of 2008.
CONSTRUCTION OF THE VOTANIKOS SHOPPING MALL
The development of the shopping mall at Votanikos (Aghias Annis and Aghiou Polycarpou Str.), is proceeding smoothly, works are underway according to the provisions of L.3481/2006. The demolition, excavation and supporting works which commenced in April 2007 are already completed. Following the issuance of a building permit (No 278/2008) by the Urban Planning Department of the Municipality of Athens the construction works for part of the shopping mall have commenced. Specifically, the building permit allows the development of 32,160 sqm over three basement levels, out of a total basement area of 81,000 sqm.
The issuance of the building permit for the whole of the development is proceeding according to plan and the project is on target for completion by the end of Q3 2009.
NAV per share after deferred tax stood at euro 15.43, a 1.6% decrease year-on-year and a 1.2% decrease over Q4 2007.
BVIC Group's investment properties for Q1 2008 reached euro 1,257 million, increased by 5% year-on-year, and 2% from Q4 2007. The quarterly increase of euro 25.6 million stemmed from a euro 14.3 million in construction cost addition relating mainly to the Votanikos shopping mall and the commercial and office building at 340 Syggrou Avenue. Moreover, in the 1st quarter of 2008, BVIC Group repurchased from Proton Bank the 4th floor (1,000 sqm of GLA) as well as 23 parking spaces at the office building at 1-3 Kifissias Avenue which was developed by the Group. This asset was valued at euro 11.3 million whereas it was purchased for euro5.9 million, and a net revaluation gain of euro 5.4 million was recorded.
BVIC Group's revenue stood at euro 14.5m in Q1 2008, a 3% decrease compared to Q1 2007 mainly resulting from a 30% fall in sales of assets compared to Q1 2007. During Q1 2008 sales of assets include euro 0.8m from the sale of Building B at the HELEX complex to KanAm Grund. Additionally euro1.6 million of sales was recorded from the sale of residential units at Maroussi and N. Erythrea. During the first quarter of 2007 sales revenue amounting to euro 3.4m relates to the sale of Building C at the HELEX complex to Allianz.
BVIC Group's rental revenue stood at euro 11.9 million, a 4% increase compared to Q1 2007, based on the lease indexation according to Greek CPI and 100 bps.
BVIC Group's EBITDA reached euro 7.9 million, recording a 67% increase over Q1 2007. This was mainly due to the fact that there was a fair value adjustment of euro 5.4 million on the investment property at 1-3 Kifissias Avenue which was repurchased during Q1 2008. In Q1 2007 there was no fair value adjustment to the Group's portfolio.
Net finance expenses stood at euro25.4 million a 178% increase compared to Q1 2007, stemming mainly from a euro 13.8 million loss from the valuation of the Group's interest rate swap agreements. The above increase in finance expenses resulted in a loss after tax for the quarter of euro 6.2 million, a 20% increase compared to Q1 2007.
BUSINESS UPDATE
BVIC GROUP SALE & LEASEBACK AGREEMENT FOR EUR 80 MILLION
In January 2008, a sale and leaseback agreement for euro80 million was signed with Emporiki Leasing and ATE Leasing. The 20 year sale and leaseback agreement covers 100% of the lettable area, and common area, as well as the parking spaces of the development under construction at 340 Syggrou Avenue. Specifically, it covers 4,587sqm of office space on the 2nd and 3rd floor, 9,185sqm of retail space on the 1st floor, ground floor and basement of Syggrou Avenue, 2,133 sqm of storage space, as well as 400 parking spaces.
The Group has already signed a lease agreement with Media Markt for 81% of the retail space and 86% of the storage space and the total annual rental revenue is euro 2,340,000 for the first year leased. The remaining retail space as well as the office space is under negotiation and is expected to be let before the development is completed in July 2008. The completion of 340 Syggrou Avenue is expected to contribute circa euro1.6 per share to the NAV to be booked in Q3 2008.
HOTEL DEVELOPMENTS
a. Hotel development in Pountazeza Sounio
In January of 2008, BVIC received the third and final building permit for the Sounio project. The total Gross Lettable Area (GLA) of the three five star hotel units will be approximately 12,000 sqm located on a 67,000 sqm sea-side plot. The development will commence immediately and will be completed within 15 months.
b. Hotel development in Trizina Poros The Group is completing the development of a five star hotel with 291 rooms (670 beds) located on a 85,000 sqm sea-side plot. The development will be completed within the 3rd quarter of 2008.
CONSTRUCTION OF THE VOTANIKOS SHOPPING MALL
The development of the shopping mall at Votanikos (Aghias Annis and Aghiou Polycarpou Str.), is proceeding smoothly, works are underway according to the provisions of L.3481/2006. The demolition, excavation and supporting works which commenced in April 2007 are already completed. Following the issuance of a building permit (No 278/2008) by the Urban Planning Department of the Municipality of Athens the construction works for part of the shopping mall have commenced. Specifically, the building permit allows the development of 32,160 sqm over three basement levels, out of a total basement area of 81,000 sqm.
The issuance of the building permit for the whole of the development is proceeding according to plan and the project is on target for completion by the end of Q3 2009.