LAMDA Development H1 2026 profit pressures from capex surge, revenue decline

LAMDA Development reported mixed financial results for the first half of 2026, with profit pressures stemming from a sharp increase in capital expenditures amid a revenue downturn. Group revenue declined 20% year-over-year to EUR 265 million, primarily due to timing-related adjustments in land plot sales, which generated EUR 48 million less than in H1 2025. Consolidated EBITDA stood at EUR 22 million, reflecting the acceleration of construction activities as the Ellinikon development transitions into its delivery phase. Despite these challenges, the residential segment saw growth, with revenue rising 30% to EUR 164 million, while mall operations contributed EUR 46.6 million in EBITDA, up 5% year-over-year after adjusting for intra-group transactions. Foot traffic increased 5%, and tenant sales hit a record EUR 409 million. However, valuation gains from property revaluations dropped to EUR 83.2 million from EUR 136.9 million in the prior year. Construction costs surged 52% year-over-year to EUR 276 million in H1 2026, with total capex for buildings and infrastructure reaching EUR 1.3 billion through June 2026. The company’s cash position exceeded EUR 1 billion, bolstered by proceeds from a EUR 500 million bond issued in November 2025 and a EUR 350 million issuance in June 2026. Debt hedging remains robust, with 75% to 80% of borrowings under fixed or hedged terms. Full-year capex guidance is set at approximately EUR 1.6 billion, while cash collections are targeted at EUR 600 million. Residential sales momentum remains strong, with 1,065 units launched as of mid-2026—including 315 on the Coastal Front and 710 in Little Athens, where absorption reached 81%. Near-term plans include launching about 50 more units, with 200 remaining in Phase One. Ongoing discussions with ION Group for a potential transaction are expected to close by Q4 2026. Key projects, such as The Ellinikon Sports Park (Phase 1 opened on the earnings call) and Riviera Galleria (expected completion in Q1 2027), are advancing, while Agios Kosmas Marina redevelopment and mall expansions progress toward their respective timelines. Stock performance reflected the earnings report, with LAMDA Development’s shares falling 4.09% to EUR 6.33 from EUR 6.60, within a 52-week range of $5.85 to $8.00.