ANNUAL REPORT ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | TABLE of CONTENTS ΤΑΒLΕ of CONTENTS O1 O2 O3 OUR OUR 2020 at COMPANY SHAREHOLDERS a GLANCE Page 4 Page 5 Page 6
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2O2O ANNUAL REPORT ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | TABLE OF CONTENTS ΤΑΒLΕ OF CONTENTS O1 O2 O3 OUR OUR 2020 AT COMPANY SHAREHOLDERS A GLANCE page 4 page 5 page 6 O4 Ο5 Ο6 ΜΕSSAGE GROUP FINANCIAL KEY ASSETS FROM THE CEO PERFORMANCE page 18 page 8 page 10 Ο7 Ο8 Ο9 ΤΗΕ HUMAN SUSTAINABLE HELLINIKON CAPITAL OPERATION page 40 page 52 page 54 1Ο 11 12 CORPORATE BOARD OF KEY FINANCIAL GOVERNANCE DIRECTORS STATEMENTS page 64 page 66 page 70 3 ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 01. OUR COMPANY ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 02. OUR SHAREHOLDERS O1. O2. OUR OUR COMPANY SHAREHOLDERS Lamda Development S.A., listed on the main In 2014, LAMDA signed the contract with the Lamda Development benefits from a stable market of the Athens Exchange, is a holding Greek state for the acquisition of the shares shareholder base, since key shareholders company specializing in the development, of “Hellinikon SA”. The Hellinikon project control approx. 63% stake investment, and management of real estate. includes the entire land area of the old Athens airport as well as the coastal front, totaling INTERNATIONAL CONSOLIDATED The company is the leading real estate 6.2m sqm. The Hellinikon project constitutes INVESTORS LAMDA developer in Greece as well as the undisputed one of the largest urban regeneration projects 24,3% HOLDINGS leader in the shopping mall segment, with in Europe, and the largest urban regeneration 43,0% successful diversification in the office and investment ever in Greece, with the total residential sectors. investment estimated to reach €8bn over the next 15-20 years. The company’s property portfolio currently includes: three commercial and leisure centers, The company has a top reputation as member The Mall Athens and Golden Hall in Athens and of the Latsis Group. Mediterranean Cosmos in Thessaloniki (total GREEK PRIVATE INVESTORS GLA 157.000 sqm), office buildings, innovative residential complexes, and Flisvos Marina in 5,3% the Athenian Riviera. GREEK INSTITUTIONAL INVESTORS 7,6% AEGEAN AIRLINES 1,7% EBRD 1,8% BRAVEN HOWARD CAPITAL MANAGMENT LIMITED VOXCOVE / TRIFON & DESPINA NATSIS (*) HOLDINGS LTD 6,4% 10,0% (1) Data as of 31.12.2020 * According to TR-1 submitted on 24.07.2020 4 5 ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 03. AT A GLANCE ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 03. AT A GLANCE O3. Portfolio 2O2O AT A GLANCE 3 157,000 sqm 1 €1.10 bn owned shopping total GLA Marina Net Asset Value (NAV) and leisure centers (303 berths) in Athens and Thessaloniki Offices 5% Other income generating Assets Shopping 6% Malls 80% Land 8% €1 bn Other property Assets portfolio 1% Undisputed leader in the shopping malls sector and one of the largest institutional real-estate investors in Greece Human Capital Responsibility 409 4,069 1,241,492 kg total number training hours of waste recycled of employees of Lamda Group. 6 7 ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 04. MESSAGE FROM THE CEO ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 04. MESSAGE FROM THE CEO O4. MESSAGE FROM THE CEO Dear Shareholders, of a casino license in the Hellinikon property have 2020 was a year that left us with mixed emotions. been also settled with HRADF, paving the way for the launch of the project. During the year, we made significant progress in realising our vision for Hellinikon. We launched partnerships with leading companies We settled permit and legal issues which were in their respective sectors, namely the strategic pending for years, we finalized a significant part of cooperation with TEMES SA for the joint the studies for infrastructure works, we proceeded development of two modern luxury hotels and the with the architectural plans of important buildings, respective tourism and residential complexes on the while we initiated a series of preliminary works Hellinikon coastal front. including a number of demolitions within the premises of the former airport. In July 2020, we completed with an overwhelming oversubscription the issuance through a Public On June 25th 2021, after 7 years, our vision, the Offering of a Common Bond Loan worth €320m. In largest urban redevelopment project of our time excess of 10,000 Greek private investors participated in Europe, is officially becoming a reality as a result in the issue. In April 2021, we updated the basic of the transfer of HELLINIKON SA shares to Lamda business terms of €1.16bn syndicated bank loans for Development. the project developments of the first five years of the Hellinikon project. Considering also the successfully Over the previous period important pending issues completed €650m share capital increase in have been resolved: December 2019, we are in a position to cover all financing needs for the first phase of the project. The Council of State rejected all petitions for We are satisfied because these developments annulment. constitute a substantial vote of confidence in Lamda Development from the investing public, as well as In addition, condition precedent related to the from Eurobank and Piraeus Bank. plot’s ownership were also met, with the Hellenic Parliament’s ratification, by a large majority, of the The transfer of shares of HELLINIKON SA to Lamda laws on the property distribution and establishment Development signifies the official launch of the of surface rights as well as on the transfer of rights project. Hellinikon is the vision of the Greece of in rem for the Hellinikon land plot. Other issues, tomorrow. It is our country’s largest investment related to the condition precedent for the award wager. The most important driver of growth and 8 9 ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 04. MESSAGE FROM THE CEO ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 04. MESSAGE FROM THE CEO recovery of the Greek economy following the We took targeted actions to attract shoppers and prolonged period of economic recession as well as bolster customer traffic – always ensuring safe the ongoing pandemic crisis. conditions. The response from shopping centres’ visitors in just a few weeks after the reopening, Yet 2020 was also a year of several challenges. confirmed the leading position of Lamda Each of us was tested, others more and others less, Development’s shopping centres. while many sectors of economic activity faced the This crisis once more showed us that we need to unprecedented challenges by the pandemic. constantly prove our ability to meet the challenges The pandemic created extreme and adverse of a continuously shifting environment with many conditions in the global and domestic economic unknown parameters. Looking at both the past and activity. Healthcare protection became the top the future, we draw optimism from the exemplary priority. In our shopping centers we complied strictly way in which our country managed the pandemic. with all the measures imposed for the protection of This helped strengthen the sense of trust within and our visitors and employees. We had to adapt our beyond our country’s borders, enabling Greece, operations in just a few days, if not hours. every day, to consolidate its position internationally as a safe investment and tourist destination. Among the significant restrictions imposed to retail The firm support of our shareholders and, in activities, due to strict healthcare protocols, was the particular, of our majority shareholder Spyros Latsis, suspension of our shopping centres’ operations for as well as the trust of our partners, propel us to more than 100 days in 2020. achieve our common goals. A big personal thank-you to our executives who, with The rent discounts, which following our decision singular dedication, adaptability and passion, work to further support our partners who have stores every day to realise our vision. I have experienced in our shopping centres, exceeded the discounts their dedication during all previous years, however imposed by law by 30 basis points, meaning that the their enthusiasm and their responsiveness during aggregate discounts/support to our partners (both the pandemic, turned 2020 into a milestone year for those imposed by law and those that were not) Hellinikon. reached approximately 70%. The overall financial impact amounted to €0.28 per share. Thank you! At the same time, amid this adverse environment, the trust of our tenants was reconfirmed, as our shopping centres’ occupancy rate reached almost100%. We are not complacent. We continue to seek ways to maintain the high level of shopping Odisseas Athanasiou and entertainment experiences offered at our CEO shopping centres. 10 11 ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 05. GROUP FINANCIAL PERFORMANCE ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 05. GROUP FINANCIAL PERFORMANCE O5. GROUP FINANCIAL PERFORMANCE 2020 12 13 ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 05. GROUP FINANCIAL PERFORMANCE ANNUAL REPORT 2020 | LAMDA DEVELOPMENT | 05. GROUP FINANCIAL PERFORMANCE GROUP FINANCIAL PERFORMANCE 2020 Net Asset Value 2020 has been a year of significant challenges, Hellinikon project direct expenses and the due to the COVID-19 pandemic and the accounting impact from the acquisition of As of 31.12.2020, the Company’s Net Asset Value amounted to €1,101 m (or €6.23 per share). associated restrictive measures, aimed at a minority stake in Flisvos Marina (€24.1m in preventing the spread of the pandemic. The 2020 vs. €50.5m in 2019). Property revaluation suspension of Shopping Centers’ operations losses and higher Hellinikon direct expenses for an aggregate period that exceeded 100 also weighed on profitability, with Group days during 2020 as well as the government- consolidated