Operator: At this time, I will turn the conference over to Mr. Apostolos Zafolias, Chief Strategy and IR. Mr. Zafolias, you may now proceed.
Apostolos Zafolias: Thank you. Good evening, ladies and gentlemen, and thank you for joining us today as we discuss our financial results for the first nine months of 2026. The first nine months of the year reflected continued strong momentum across our operating assets. Our retail destinations and Flisvos Marina delivered record operating performance, while the value of our total investment portfolio reached a new record high of EUR 4 billion, reflecting continued value creation across the group.
Apostolos Zafolias: A little bit on the numbers. Our group consolidated EBITDA reached EUR 35 million, reflecting the timing of land plot sales, increased expenses associated with infrastructure and development works CapEx, and lower revaluation gains as compared to the prior year period. At The Ellinikon, construction activity continued to accelerate across multiple fronts, and is marking the project's transition into its delivery phase.
Apostolos Zafolias: A major milestone during the period was the official opening of The Ellinikon Sports Park, marking the delivery of another landmark project to the community and an important step in bringing life to The Ellinikon. Looking ahead, construction works for the Riviera Galleria and the renovated Agios Kosmas Marina are expected to be completed early next year, followed by the gradual return of vessels within the marina, and thereafter followed by the official opening of both developments later in the year.
Apostolos Zafolias: At the same time, several residential developments, both along the coastal front and in the Little Athens neighborhood, continue to progress towards delivery, with estimated completion dates starting in Q1 2027 and continuing through the end of the year.
Apostolos Zafolias: Although we are all excited about the acceleration of construction works across the board, both the infrastructure side and the residential side, we do take a minute to note that they also have an an impact on the profitability through the increase of VAT-related expenses associated to the infrastructure CapEx. In the meantime, commercial demand for our residential developments remains very strong.
Apostolos Zafolias: As of the end of September 2026, 615 out of the 750 units that have been launched in the Little Athens development have been sold or reserved, representing an absorption rate of about 82%. Strong cash collections from property sales continue to support the acceleration of construction activity across the development. As construction progresses simultaneously across the development, our focus does remain firmly on disciplined execution, the pursuit of continuous improvement in cost efficiencies, and the successful delivery of our projects to our customers.
Apostolos Zafolias: During the Q3, we also completed the early repayment of our EUR 320 million bond following the successful issuance of a new EUR 350 million bond in June of 2026, further optimizing our balance sheet. Turning briefly to each one of the operating segments.
Apostolos Zafolias: Specifically in the Malls, we continue to deliver record operating performance driven by higher rental income and parking revenues, and obviously, as always, supported by the increased footfall and record tenant sales, reaffirming the resilience of our retail portfolio and its ability to generate sustainable earnings and recurring cash flows quarter-over-quarter, year-over-year. The value of our retail destinations continues to grow, while commercial leasing and construction activity at the two new retail destinations at The Ellinikon progressed strongly.
Apostolos Zafolias: Specifically, heads of terms having been agreed with tenants represent 75% of the GLA at The Ellinikon Mall and 76% of the GLA at the Riviera Galleria. This strong momentum highlights the solid fundamentals of the Greek retail market and the continued interest from leading international brands in these landmark developments.
Apostolos Zafolias: In the Marinas segment, we recorded EBITDA of EUR 15.5 million for the period, which, although lower by about 13% year-over-year, remains extremely strong if you take into consideration that the Agios Kosmas Marina, the available berths have been reduced to approximately one-third of the marina's original capacity, reflecting the temporary removal of vessels in order to facilitate the ongoing renovation works.
Apostolos Zafolias: Flisvos Marina also delivered another record performance, with revenues and profitability reaching new highs, supported by sustained strong demand, higher revenues from yacht transits, and contractual fee uplifts. In the Agios Kosmas redevelopment, that continued to advance, positioning it together with the Riviera Galleria as an important driver of future growth of both revenue and EBITDA, obviously, for the coastal front area.
Apostolos Zafolias: Upon completion, together, the Agios Kosmas Marina and the Riviera Galleria are expected to become a key driver of that incremental revenue and EBITDA. At The Ellinikon, residential revenues continued to grow strongly, supported by sustained demand and accelerated construction activity.
Apostolos Zafolias: Property sales revenues were lower year-on-year, primarily reflecting the timing of land plot transactions, but commercial momentum remained exceptionally strong, with cumulative cash proceeds from property sales and long-term lease agreements surpassing EUR 1.85 billion, and 82% of the residential units launched in Little Athens sold or reserved. Importantly, the project continues to maintain a strong liquidity position with no bank drawn down for residential developments, as the overall development and infrastructure works progress towards delivery.
Apostolos Zafolias: A brief note regarding the ION transaction. Discussions remain ongoing, with both parties working towards resolving outstanding commercial matters and reaching a mutually beneficial agreement. The objective is to conclude negotiations by the end of 2026, subject to the successful outcome of the resolution of those commercial items. I will now hand over to Harris Goritsas, our Group CFO, the call, who will walk you through the key highlights of the group's financial results in a little bit more detail.
Harris Goritsas: Thank you, Apostolos, and good evening to everyone from my side as well. As practice, I will take you through our financial results, referring to selected slides from the presentation available on the website. I will begin with an overview of the group's nine months 2026 key highlights, followed by a more detailed review of the financial performance of our three core business segments, namely Malls, Marinas, and The Ellinikon.
Harris Goritsas: Starting at group level, total revenues reached EUR 420 million in the first nine months of 2026, primarily reflecting the growing contribution from residential developments at The Ellinikon, with 72% contribution on our total revenues, as well as the continued strong operating performance of our recurring income-generating Malls and Marina assets, with a remaining 28% contribution.
Harris Goritsas: Underlying revenue fundamentals remain strong, with a 5% year-on-year decline attributed to the timing of the land plot sales at The Ellinikon, which were significantly higher in the corresponding period last year. Group consolidated EBITDA reached EUR 35 million, primarily reflecting lower land plot sales and revaluation gains compared to the prior year period, as well as increased infrastructure costs as The Ellinikon transition in its delivery phase.
Harris Goritsas: While the acceleration of construction activity weighs on our current results, these budgeted investments are fundamental to advancing the project and delivering the significant pipeline of developments currently under construction. Details of EBITDA and net results breakdown are shown on slides 8 to 10. Group cash remained at a particularly strong level despite the acceleration of budgeted investments we have mentioned, reaching EUR 726 million as of the end of September 2026, with circa two-thirds of that under The Ellinikon.
Harris Goritsas: This strong cash position is attributed to our robust cash collections, our proven business model at Malls and Marinas, and the successful refinancing of our bond debt. Providing more color on the latter, following the successful EUR 500 million bond issuance in November 2025 and the EUR 350 million issuance in June 2026, we completed the early repayment of our old EUR 320 million bond in July this year.
Harris Goritsas: These transactions have extended our debt maturity profile while we maintained a competitive cost of funding and reaffirmed our access to the capital markets. With our strong group cash, prudent leverage, and continued commercial momentum, we remain well-positioned to support the next phase of The Ellinikon's developments.
Harris Goritsas: Also, it is worth highlighting that against the backdrop of the current turbulent macroeconomic environment, our hedging strategy continues to provide significant protection against potential increases in interest rates, as 74% of group's borrowings are either hedged or at fixed rates. These results in a very favorable flexibility we have.
Harris Goritsas: These results in percentage points increase, if the percentage points increase of Euribor increase, this will have a very minimum impact on our group's annual financing, as a 1% increase will approximately deliver only EUR 5 million of incremental financing costs for the group. Analyzing each of our business segments now, and starting with LAMDA Malls, our four Malls under operation reported an EBITDA of EUR 70 million in nine months 2026. This EBITDA, adjusted for EUR 5 million intergroup recharges, is EUR 75 million, or 4% higher year-on-year.
Harris Goritsas: This strong result was primarily driven by a 5% year-on-year increase in base rents and 13% increase in parking revenues for the same period. Performance was supported by healthy leading indicators as well, namely a 7% increase in footfall versus prior year and a new all-time high in tenant sales, which reached EUR 662 million in nine months 2026 period. Revaluation gains amounted to EUR 83.2 million in nine months 2026 results, compared with EUR 136.9 million during prior year period. The value of our retail destinations continued its upward trajectory, generating valuation gains.
Harris Goritsas: However, revaluation gains were lower year-on-year, primarily reflecting the strong competitive base of nine months 2025, which had benefited from a significant yield compression back then. As of 30 September 2026, the total gross asset value of the LAMDA Malls group reached a new record high, surpassing EUR 1.9 billion, with a value of our four operating malls exceeding EUR 1.4 billion. For a detailed analysis of LAMDA Malls financial results, please refer to slides 14 to 18 on the results presentation.
Harris Goritsas: Moving now to our marinas business unit, Flisvos Marina continued its strong growth trajectory, achieving new record highs in both total revenues and EBITDA for the nine months 2026 period. Total revenue increased by 10% year-on-year to EUR 22.5 million, while EBITDA grew by 8% to EUR 15.5 million. Performance was supported by sustained high demand, linked with higher revenue from yacht transits and annual contractual fees uplift, as well as lower lease expenses.
Harris Goritsas: While Flisvos Marina continues its delivery record operating performance, the group remains focused on its next phase of growth through the redevelopment of Agios Kosmas Marina. There, operating performance is impacted as renovation works are moving with pace, aiming to be finalized by summer 2027. Details on marina performance are available on slide 19. Let me now turn to our landmark Ellinikon project and highlight some of its key achievements during the period.
Harris Goritsas: I will start with commercial demand for the Little Athens neighborhood, which remains strong. As of the end of September 2026, 615 out of the 750 units launched have been sold or reserved, representing an absorption rate of 82%. Revenue from residential developments in nine months 2026 reached EUR 272 million, a 27% increase versus same period last year, showcasing the sustained strength of residential sales and the growing contribution of residential developments in our results.
Harris Goritsas: In addition, during the first nine months of 2026, we recognized a further EUR 15 million worth of revenues from property sales, compared with EUR 105 million in nine months 2025, with a year-on-year decrease reflecting the timing of land plot sales. As a result, cumulative cash proceeds from residential sales and long-term leases have exceeded the EUR 1.85 billion milestone from the launch of Ellinikon back in mid-2021 and until the end of September 2026.
Harris Goritsas: Details on Ellinikon cash collections are available on slide 21. I will conclude with the construction progress, which has accelerated, registering an increase of EUR 415 million during nine months 2026, or 39% higher versus same period last year, bringing the total CapEx for buildings and infrastructure works from the start of the project and until September 2026 to over EUR 1.4 billion. Based on our current construction schedule, we target our full year 2026 CapEx investment at approximately EUR 1.6 billion, and further details can be shown on slides 23 and 26 of the presentation.
Harris Goritsas: With that, we conclude the key highlights of our nine months 2026 financial results, and we will now be happy to answer any of your questions.
Operator: The first question is from the line of Stathis Kaparis with AXIA Ventures Group. Please go ahead.
Stathis Kaparis: Hi, everyone. Thanks for taking my questions. I have four, if I may. The first one is on the gross profit on The Ellinikon. It is quite positive. Based on my estimate, 10% already of gross profit, and that includes Riviera Tower. So, it is quite promising. The question is, are there any one-offs potentially maybe in Q4 or going forward? I understand this is a clean number here in Q3. Is there anything that could derail this very good trajectory? That is number one. Do you want to take it one by one, or should I go at four?
Harris Goritsas: Let us start. This is Charis. Yes, I prefer to take it one by one, not to miss anything. So, on the gross profit, you rightly said that it is a performance. We are not excited about that. Thanks for your positive remarks, though. Why? Because, as we have said in the past, this performance is being impacted by the Riviera Tower, let us say, very low profitability.
Harris Goritsas: So, to your question, we will continue to see this impact continue as we progress with the percent of completion for the Riviera Tower. We estimate this to finish when we deliver the tower, which we aim summer 2027. By then, this will be a drag. After that, of course, the new residentials will kick in with a much better profitability. So, we expect from H2 2027 a rebalance of these profit margins. That should be the key message here.
Stathis Kaparis: Okay, thank you. Then pricing on this heads of terms. If I remember well, a couple of years maybe ago, we were actually trading at EUR 85 per square meter and EUR 62 per square meter. What do you see currently in the market? Have these numbers improved on these incremental bookings you've done on the new malls?
Apostolos Zafolias: Hi, Stathis. I'll take that. Well, the numbers remain at about 75%, 76% for Riviera Galleria. 76% for Riviera Galleria and 75% for the Ellinikon Mall. The numbers that you mentioned are applicable for the Ellinikon Mall, which is the project that's going to be delivered further down the line. And they could fluctuate, but you're in the right ballpark. In terms of the Riviera Galleria, the lease per square meter is actually considerably higher, exceeding EUR 80 per square meter.
Stathis Kaparis: Okay, thank you. Exceeding 80, you said?
Apostolos Zafolias: 80, 8-0, yep.
Stathis Kaparis: 80, yes. Okay. All right. Then in terms of launches, residential launches in Q4, what should we be expecting Q4, Q1 maybe? Market launches, I mean, for residential.
Apostolos Zafolias: Sure. Just to give a quick overview of what we've done to date. To date, we have launched 1,065 units total, including 750 units for Little Athens. Look, I'd say for the Q4 and the remainder of the year, you're probably looking at anywhere from 50 to 100 units to be launched. Then going into the next year, you're probably looking at a total of another 100 to 150 units, which, again, those are going to be launched over time to conclude the first phase of the residential developments.
Stathis Kaparis: Okay, great. Thank you. Last question. This is a guessing game, but I'm going to ask anyway. Mall revaluation gains, if I understood correctly based on previous calls you guys explained, there was some additional revaluation gains to be had in malls because rates dropped and then we didn't catch up entirely. Now, of course, interest rates go the other way. How should we be thinking about revaluation gains going forward? I know you need to have a crystal ball, but what's your feeling? To start having negative revaluation gains?
Harris Goritsas: No, this is a fair question. Indeed, we communicated back at the beginning of this year that there are potentially more. Just to remind that we had a 50 basis points revaluation gain back in 2025, which gave EUR 150 million benefit into the line, revaluation gains line. This is what we cycle this year. That's why you see revaluation gains much lower, EUR 23 million in nine months result. We do not expect any upside this year, to be honest, with what happens in the global community.
Harris Goritsas: We continue to be positive for the long term, i.e., for 2027 onwards, assuming that this turbulence will finish at a certain point of time. Having said that, we do also expect, as one of the two new malls to finish in 2027, this is the Riviera Galleria, to have also upsides, revaluation upsides from that mall as well.
Apostolos Zafolias: Not necessarily driven by interest rates, but more so the performance of the contracts themselves.
Stathis Kaparis: Understood. Thanks a lot.
Operator: The next question is from the line of Natalia Svyriadi with Eurobank Equities. Please go ahead.
Natalia Svyriadi: Yes, good afternoon. Thank you for taking my question. I wanted to continue follow up on the residential launches you mentioned briefly previously. You said for next year that we will have 100 to 150 launches. Was that to conclude the first phase? These are all the residential launches we are expecting in 2027? Or was it for something specific? I was wondering if you could give us a rollout on the residentials on 2027, and what cash proceeds we should expect from there.
Apostolos Zafolias: Yeah. So, Natalia Svyriadi, I can't give you an exact rollout because it's going to depend on market conditions, and we have to do it right in order to get the most bang out of our buck, if you know what I mean. But the summary of it is that there is about another 100 to be launched from 30 September through the end of the year. That doesn't mean that they're going to be sold within the 3 months. They're just going to be launched and going to be sold throughout time.
Apostolos Zafolias: Then to sort of reconcile to the completion of the first phase of development, which is about 1,300 units, there's another 100 to 150 units remaining, and those are going to be launched over time. So, depending on market conditions and over time.
Natalia Svyriadi: Okay. Great. So we're reaching the 1,030 units with this. Wow.
Apostolos Zafolias: Yes, 1,300. Yes, we are. Then look, obviously, there is another phase. Thank you for the follow-up. There's another phase, which we're in the process of design stages right now, and that's going to start launching subsequently.
Natalia Svyriadi: Of course. Okay, great. This is great. Also, could you give us a Well, I don't know if you have any view on the progress in CapEx coming into 2027, or what you're thinking that should be the case for next year. Because, okay, 2026, I think you've been doing very well. You're on track with what you've said. So, I'm trying to get a color on what we should be expecting next year in terms of CapEx infra and the remaining hurdles we could have in infra.
Apostolos Zafolias: Yeah. So, Natalia Svyriadi, we are going to be giving specific guidance on that next quarter's call. On the residential side, I would expect around the same of what we had this year, maybe around the same of what we had this year. On the infrastructure side, you have seen quite a bit of an uptick for 2026 over 2025, and I would expect a further uptick into 2027, again, with exact figures and guidance to follow.
Natalia Svyriadi: No, no, this is clear. Thank you. Also, I wanted just a reminder, because I do not remember, how many berths will the renovated marina have in Agios Kosmas? Because, obviously now it has been under renovation, but at the end, what would be the number? And you are thinking of higher rates there, I assume also. So, this is something that we will see next year also, correct?
Apostolos Zafolias: Yep. Correct. The renovated number is going to be approximately 300. I would give that a 5% up and down, depending on the final sort of design and allocation. The idea is to create some room for. So, you are actually reducing the number of berths that you already have, but you are creating some berths for larger boats. So, although the capacity is actually staying the same or slightly increasing, the number of berths reduces.
Apostolos Zafolias: But it is physical capacity, but also its profitability capacity is, most importantly, the profitability capacity is increasing because you are getting into new contracts, new price lists that are going to be closer to the price lists in Agios Kosmas, and therefore we do expect an uptick on EBITDA there.
Natalia Svyriadi: Okay. Okay, great. That was very clear. Thank you very much for taking my questions. Good afternoon.
Apostolos Zafolias: Thank you, Natalia.
Operator: The next question is from the line of Martyn King with Edison Investment Research. Please go ahead.
Martyn King: Thank you. Good afternoon. I have seen media reports of ongoing discussions with stakeholders around the coastal hotel developments. Does that involve potentially both Belt and Malt, and what is the potential impact? Maybe you could just give an update on when you think those projects might commence, and also when they may finish.
Apostolos Zafolias: Yeah, sure, Martin. I think the references that you made to the news articles are referring to the Malt. That is the one by the marina. There are some items of that design that need to be reconsidered. Therefore, the beginning of construction is not cast in stone right now. As far as the other development, Belt, which is essentially the Mandarin Oriental, that was, as of recently, delayed because there were some athletic facilities that needed to be moved.
Apostolos Zafolias: Now that the sports complex has been completed and it is open, we are able to move the athletes from down there up to the sports complex, and therefore expect the construction for the Mandarin Oriental to start shortly. I cannot give you an exact date, but I would estimate over the next 6 to 12 months.
Martyn King: Thank you. Could you give an update on progress with the IRC and when that may open? Also the potential impact on your revenues from that under the lease terms?
Apostolos Zafolias: Sure. I just remind you that the IRC is not our development. We have a land lease, as you alluded to. From what we see GEK TERNA posting, it is anticipated a completion of construction and thereafter opening in around 2029. So that seems to be the target date. As far as our financial impact on that, we have been getting the contractual lease rate to date, which is the minimum of EUR 15 million or 5% of their gross revenues.
Apostolos Zafolias: We do expect, but again, this is not our development, but we do expect that that 5% number of gross revenues should be higher than that EUR 15 million floor once it achieves its full year of operation. So we are looking forward for that to open, and so that would increase our lease payment to us as well.
Martyn King: Thank you. When you say 2029, do you think beginning or end?
Apostolos Zafolias: Martin, I don't know because, once again, my estimate is based on what they are disclosing.
Martyn King: Yeah. Okay, thanks very much.
Operator: The next question is from the line of Hoylin Win with Wood & Co. Please go ahead.
[Analyst] (WOOD & Company): Hi, this is Hoylin from Wood & Co. I wanted to ask a few questions. Firstly, could you please tell me again, what are the main milestones for the 2027 deliveries and openings?
Apostolos Zafolias: The main milestones? Yeah, sure. I think that let's start with non-residential projects, if you wish. The main milestones there are the opening of the Riviera Galleria and the opening of the Agios Kosmas Marina, which are basically next to each other. We estimate construction completion for these, I'd say in the beginning of 2027, and opening by the summer of 2027, maybe Q3 2027. Thereafter, in terms of the residential development, construction completion starts at Q1 of 2027, and deliveries are going to start Q1 and go, depending on projects, through the year into the end of the year.
[Analyst] (WOOD & Company): Okay. Yes. Could you give the Riviera Galleria, what is the current update? Is there any kind of like level of leasing that you have to target by year end? How much CapEx would there be to remain to spend, and what do you expect as an opening date? I think you just said like Q1 or something like that.
Apostolos Zafolias: Yeah, no, construction completion is going to be in Q1. We anticipate open in around September of 2027, if that answers your question. Yeah?
[Analyst] (WOOD & Company): Yes.
Apostolos Zafolias: Okay. What was your other question? I'm sorry.
[Analyst] (WOOD & Company): Yeah. What level of leasing do you target by the year end of 2027, then, since you are opening early? What kind of target?
Apostolos Zafolias: We are currently at 76%, and what I will say is that it is going to be dynamic through the end of the year. We feel very much comfortable with the demand that we have, which far exceeds the amount of available space for the shopping center. And obviously, you want to open it with as close to full capacity as possible.
[Analyst] (WOOD & Company): Yes. Last, to Riviera, how much CapEx do you have to remain to spend since the construction is near the end? Could you tell us a ballpark?
Apostolos Zafolias: I think that I would say probably around EUR 70 to 80 million has been completed, Charis?
Harris Goritsas: Yeah, actually, it's close to EUR 90 million that has been completed for the Riviera Galleria, and we expect around EUR 50 to 60 million to come.
[Analyst] (WOOD & Company): Okay. EUR 60 million. Great. I have a last question then to the residentials. What is the current demand for the Little Athens apartments? How many apartments do you expect to launch then in Q4 or Q3, as you said previously, and in 2027 for these Little Athens apartments?
Apostolos Zafolias: Yeah, I think those are, I think that's probably a repeat of Natalia Svyriadi's question. Just to recap, there's about another 100 or so units within the Little Athens neighborhood that are going to be launched through the end of the year, and then about another 150 or so that are remaining to be launched starting in 2027. The combination of those essentially closes out the total units which comprise the first phase of developments for The Ellinikon.
[Analyst] (WOOD & Company): Mm-hmm. Lastly then, can you then share some kind of thoughts on balancing timing of the sales across the project life of the Little Athens?
Apostolos Zafolias: Look, I mean, absorption rate has been at 82%, so I think that the demand fundamentals have been very strong and remain pretty strong. Going forward, it is going to be a dynamic exercise as to when do you launch and how much. What I will remind you is that we have already have contracts for about EUR 1.85 billion worth of development, residential development, and about EUR 700 million of that, of things that we have already launched, has not been received yet, right?
Apostolos Zafolias: So, and actually, of the EUR 700 million, EUR 500 million is contracted, so there is a very high, there is a very good certainty of receipt, if you wish, on that. So, the demand has remained strong, and we also have a very good sort of runway of existing contracts that we need to get payments for.
[Analyst] (WOOD & Company): Okay, great. Thank you very much.
Apostolos Zafolias: Thank you.
Operator: As we have no more questions, this concludes the Q&A session. Ladies and gentlemen, the conference is now concluded, and you may disconnect your telephone. Thank you for calling, and have a good evening.
Apostolos Zafolias: Thank you.
