Babis Vovos International Construction SA (BVIC) has presented its financial results for the nine months ended 30 September 2007.
NAV (Net Asset Value) per share before deferred tax stood at 20.18 for the nine months ended 30 September 2007, a 1.4% decrease compared to H1 2007, and 1.8% decrease year-on-year. The NAV remained relatively unchanged from year-end 2006, due to the fact that there was no fair value adjustment on the investment property portfolio recorded during the period, as no properties under construction were completed.
NAV per share after deferred tax stood at 15.58, a 1.9% decrease over H1 2007 and a 3.2% year-on-year decrease.
BVIC Group's investment properties for the nine months 2007 were 1,211 million, up 0.7% from H1 2007 and 1.4% from year-end 2006. The quarterly increase was mainly due to additional costs incurred as progress continues on the Votanikos shopping mall, as well as the Poros tourist development, and the Gymnastiriou residential development. There was no revaluation gain arising from the increase in investment properties since it was a cost driven increase.
BVIC Group's revenue totalled 85 million for the nine months 2007, a 143% increase compared to Q3 2006, based on an increase in sale revenue from the Hellenic Exchanges Complex. In Q3 2007, the sale revenue generated by the HELEX Complex amounted to 6.1 million, bringing the total sales revenue from the project year-todate to 48.6 million. The remaining 5.6 million, from the completion of the project will be booked in Q4 2007.
The Group's rental revenue increased by 15% year-on-year to 34 million, based mainly on new leases from the Delta Falirou Complex as well as the like-for-like increase in rental income of almost 4%, based on the annual lease adjustments according to Greek CPI plus 100bps.
BVIC Group's EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) stood at 19 million, an 88% decrease over 9m 2006. There was no fair value adjustment on the investment property portfolio in 9 month 2007, whereas there was a net gain from fair value adjustment on investment property of 148 million for nine month 2006, mainly from the completion of Delta Falirou Complexes I and II.
Finance expenses for the period decreased to 25 million, a 10% fall from the 28 million for the same period of the prior year. Despite an increase in interest rates and bank borrowings, there was a decrease in total finance expenses mainly driven by a decrease in the fair value of the Credit Suisse interest rate swap agreement which resulted in a finance income of 4.4 million for the period ended 30 September 2007.
Moreover, the average floating interest cost of the SLB and BOT portfolio would have been 6.83% (Euribor plus 250bps) versus 5.29%, which the Group actually incurred due to the interest rate swap. This resulted in a positive inflow of approximately 1 million for the period.
Loss after tax for the quarter was 9 million, compared to a profit of 95 million during 9 month 2006 which was driven by revaluation gains.
Development update
340 Syggrou Avenue
A pre-lease agreement was signed with Media Markt covering 7,291 m² of retail space and 1,772 m² of storage space at the commercial center under construction at 340 Syggrou Avenue. The 10-year closed lease consists of an initial annual lease of 2.34 million and there is the option of renewing the lease for another 10 years. The lease represents nearly 50% of the total lettable area of the commercial center, which will be delivered by the 30th of August 2008. Discussions are advanced for the letting of the remaining space and the estimated total annual rental revenue for 340 Syggrou Avenue is 5 million.
Votanikos
The Votanikos development is progressing well. The Group has carried out basement preparation work, consisting of the excavation and the retaining wall structure, therefore the project is on target for completion in the end of 2009. During the first nine months of this year, the total cost of the w
