In This Article:
Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lamda Development SA (FRA:LDQ) reported a 71% increase in net profits, reaching 46 million for 2024.
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The company's cash collections were impressive, totaling 1.1 billion, with 600 million collected in 2024 alone.
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Operational businesses, particularly malls and marinas, showed strong performance with record results, including a 9% increase in EBITDA for malls.
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The company's cash position improved significantly, with cash increasing from 488 million to 680 million by the end of 2024.
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Lamda Development SA (FRA:LDQ) has secured financing for its Riviera Galleria project, ensuring the continuation of construction without delays.
Negative Points
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The company faces ongoing labor shortages, which could impact construction timelines, particularly for the Riviera Tower and infrastructure works.
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New regulations have introduced challenges, requiring redesigns and potentially causing delays in construction projects.
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The Riviera Tower project is delayed, with completion now expected by the summer of 2027, later than originally planned.
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Despite strong cash collections, the company still has a significant net debt of half a billion euros.
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The construction completion for the Riviera Galleria is expected by the end of 2026, with opening to customers likely delayed until early 2027.
Q & A Highlights
Q: Could you provide an update on the cash proceeds expected from the A Lion project in 2025, and are there more residential units to be added for sale? A: We expect about 550 million in cash proceeds from sales in 2025. We had 200 million in sales in 2024 that were initially planned for 2025. There is a delay in bringing some projects to market due to design changes required by state decisions, but we anticipate these will be available by the end of the year.
Q: What CapEx should we expect for the current year, considering the sports park and residential units? A: For A LionSA, we expect CapEx to be about half a billion euros in 2025, which includes residential projects, other developments, and infrastructure work. This does not include the malls, which are considered separate.
Q: Can you update us on the financing terms secured for the malls? A: We have closed and signed a loan for the Riviera Galleria, with a drawdown expected soon. The loan is around 185 million, including VAT, securing the total construction of Riviera Galleria. For the Lincoln Mall, we are finalizing offers to secure the final construction number before signing the loan with banks.