Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — H1 2021 Earnings Presentation
45 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Aug 6, 2021
Slide 1: Result Presentation 30/06/2021
Result Presentation 30/06/2021 Conference call 6 August 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation to subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect The securities r
Slide 3: What's happened in 1H 2021: Covid restrictions still had an impact
What’s happened in 1H 2021: Covid restrictions still had an impact... Jan Feb Mar Apr May 18/5 Jun 1H 2020 €9.3 mn first easing of the Covid one-off normal activity lockdown impact restr. restrictions estimated in 1H2020 «Non-essential» activities in IGD’s shopping malls were closed about 39% of the
Slide 4: ...but there are good news in view of 2H2021
…but there are good news in view of 2H2021 *Figures at 30/6 considering all formalized contracts which will generate revenues in coming months; for Italy figure refers to malls + hypermarkets 4 **% on invoiced rents net of reductions and loss on receivables; figures updated at 30 July.
Slide 5: Highlights 1H2021 (1/2)
Highlights 1H2021 (1/2) Rental Income Net Rental Income 73.1€ mn 55.5€ mn -2.1% -1.4% Core business Ebitda Funds From Operation (FFO) 50.6€ mn 30.6€ mn -1.6% -6.8% (0.28€ p.a.) Include Covid-19 one-off net impact 5
Slide 6: Highlights 1H2021 (2/2)
Highlights 1H2021(2/2) Change in Fair Value Group Net Profit/(Loss) -12.5 €mn 19.5 €mn (di cui -5.7 €mn effetto IFRS 16) (at 30/06/2020 -38.8€mn) Real estate Epra NRV Market Value (excluding leasehold) 10.56 € per share 2,267.9 €mn +1.7% +0.1% Include Covid-19 one-off net impact 6
Slide 7: Operating performance
1 Operating performance
Slide 8: Main trends in the first months of 2021
Main trends in the first 6 months of 2021 18/5 Jan Feb Mar Apr May Jun Closed for 39% normal first easing of the of the total 1H 2020 activties restr. lockdown restrictions possible days* Jan Feb Mar Apr May 17/5 Jun 1H 2021 towards Closed for 36% Restrictions and variable closures normality of the
Slide 9: Monthly trends 1H2021 vs 1H2019
Monthly trends 1H2021 vs 1H2019 10.0% TENANT SALES FOOTFALLS CNCC figure -2.4% 0.3% 0.0% -10.0% -6.4% -20.0% -15.2% -24.2% -20.4% -30.0% -24.3% -34.3% -37.1% -41.4% -40.0% -36.0% -40.9% -46.1% -50.0% JANUARY FEBRUARY MARCH APRIL MAY JUNE Positive signals in June Focus next slide The trend already se
Slide 10: Focus tenant sales June 2021 vs 2019
Focus tenant sales June 2021 vs 2019 * SERVICES • Positive trend RESTAURANTS confirmed for ELECTRONICS electronics, culture- leisure and household PERSONAL AND HEALTHCARE goods CULTURE, LEISURE, GIFT ITEMS • Significant growth for HOUSEHOLD GOODS clothing mainly the most important CLOTHING brands Al
Slide 11: Leasing management performance
Leasing management performance 73.9% MALLS of rental KEY MESSAGES income ITALY • Occupancy is improving in Italy (+100bps vs FY20) FINANCIAL and in Romania (+70bps vs Renewals: 85 OCCUPANCY* FY20) Turnover: 46 Downside: -1,0% 95.3% • No significant impacts on rents in Romania with a slight improveme
Slide 12: Collection rate FY2020 and 1H2021
Collection rate FY2020 and 1H2021* 2020 1H 2021 Collected c. 97%** Collected c.83 %*** ▪ Monthly invoicing Italian ▪ Positive impact on the Portfolio ongoing negotiations expected from Government measures to support tenants (see appendix) Collected c.98% Collected c.93% Romanian Porfolio *% on invoi
Slide 13: Effective leasing activities in Italy continues to combat Covid impacts
Effective leasing activities in Italy continues to combat the negative impacts of Covid… Leasing activity to re-commercialize the vacancy mainly due to the effects of Covid Some of the new openings The End – Fonti del Corallo Pandora – Katanè Pepco – Centro Borgo, Centro Lame, Le Ceylon Store - ESP
Slide 14: ...and to answer to new market trends
…and to answer to new market trends Introduced innovative and appealing brands in line with the latest market trends and current needs Restaurants Services/tech Events Introduction of brands in line Introduction of high tech Organization of events, such with new trends, brands and more services as f
Slide 15: Effective leasing activities in Romania continues to combat Covid impacts
Effective leasing activities in Romania continues to combat the negative impacts of Covid… Robust re-commercialization activity also in Winmarkt Portfolio Sense- Galati Venus – Ploiesti & Alexandria Madre Cucina – Ploiesti Tendresse - Ploiesti Eurasia – Tulcea (next opening Proline Estet – Piatra Ne
Slide 16: IGD shopping centers to serve the community
IGD shopping centers to serve the community Vaccination hub: more than 50,000 doses administered to date • Shopping centers offer large, organized, supervised, regularly From 19/02- Perlaverde in Riccione* From 24/5 - La Torre and from 3/6 Poseidon* from 2/8 - ESP in Ravenna sanitized and easy to in
Slide 17: The Portfolio
2 The Portfolio
Slide 18: IGD's portfolio market value (1/2)
IGD’s portfolio market value (1/2) Gross Initial EPRA Net Initial EPRA Net Initial Finan FY 2020 1H 2021 Δ% Yield Yield Yield topped up occupa Malls Italy 1,473.30 1,472.29 (-0.07%) 6.60% 93.67 5.3% 5.3% Hypermarkets Italy 558.97 561.78 + 0.50% 6.01% 100.0 Romania 138.64 137.52 (-0.81%) 7.49% 5.9% 6
Slide 19: IGD's portfolio market value (2/2)
IGD’s portfolio market value (2/2) ITALY ROMANIA € 2,267.9mn € 2,265.7mn Other 4.2% 4.6 -2.4 4.4 -3.3 0.5 -1.6 Other 4.3% (94.78 €mn) (96.29 €mn) Romania 6.1% 4.4 Romania 6.1% (138.64 €mn) 4.6 -2.4 -3.3 0.5 -1.6 (137.52 €mn) 2,265.7 Malls 65.0% 2,267.9 Malls 64,9% (1,472.29 €mn) (1,473.30 €mn) 2,265
Slide 20: Financial results
3 Finacial results
Slide 21: Rental Income (€mn)
Rental Income (€mn) -2.0€mn -2.7% -1.5€mn -2.1% * * * Like for like Italy -1.6€mn: Romania -0.2€mn: Non Like for like Italy -0.2€mn: Decrease due to the COVID 2021 reductions Malls (-3.3%): Remodeling of Le exit of a tenant (with already granted to tenants Due to the average vacancy of the period an
Slide 22: Net rental Income (€mn)
Net rental Income (€mn) Italy -2.3% -0.8€mn -1.4% Romania +13.2% -2.0 -0.3 1.5 56.3 55.5 Net rental income 1H 2020 Change in rental income (gross of Covid discounts) Change in rental costs Change in COVID net direct impact Net rental income 1H 2021 Improvement of 2021 Covid impact compared to prior
Slide 23: Core business Ebitda (€mn)
Core business Ebitda (€mn) -0.8€mn -1.6% -2.3 1.5 -0.0 0.0 51.4 50.6 Ebitda 1H 2020 Net rental income Change in COVID net direct impact Net service income Change in G&A expenses Ebitda 1H 2021 Core business EBITDA MARGIN 66.3% EBITDA MARGIN freehold 66.6% Some figures may not add up due to rounding
Slide 24: Financial management (€mn)
Financial management (€mn) Figure, net of accounting items related to IFRS16 and non-recurring charges (financial management adj*), is decreasing (-6.4% vs 1H2020) Tot change: -6.9% Change in financial mgt. ADJ FFO* - Total Total Total 18.0€mn 16.7€mn Total 18.0€mn 16.7€mn 1.3 1.1 IFRS16 and non-rec
Slide 25: Funds From Operations (FFO)
Funds From Operations (FFO) -2.3€mn -6.8% -0.9 -1.2 -0.1 32.9 30.6 FFO 1H 2020 Change in core business Change in financial Change in taxes and other FFO 1H 2021 EBITDA Adj* management Adj** *Change in Ebitda Adj: equal to change in core business Ebitda together with change for lower payable leases (
Slide 26: EPRA Metrics
EPRA Metrics Euro per share 1H 2021 FY 2020 Δ% NRV 10.56 10.38 1.7% NTA 10.48 10.31 1.7% NDV 10.19 10.42 -2.1% 0.28 -0.11 0.01 10.38 10.56 EPRA NRV 31/12/2020 FFO Change in fair value assets Change in financial EPRA NRV 30/06/2021 instrument fair value and other Some figures may not add up due to ro
Slide 27: Financial structure
4 Financial structure
Slide 28: Financial structure
Finacial structure 31/12/2020 30/06/2021 LTV 49.9% 49.1% • Net debt improved in 1H2021 ICR 3.2X* 3.2X* (-€20.66 mn vs FY2020) Average cost of • LTV is slightly decreasing 2.30% 2.22% debt Net Debt Debt breakdown** 1,134.80 € mn*** SECURED MARKET 25.0% 57.2% BANKING SYSTEM 42.8% L.T. 1,178.58 UNSECUR
Slide 29: Debt maturity and Ratings
Debt maturity Ratings €100mn: 2.25% 7y €400mn: 2.125% 5y BBB- negative outlook 2.1% 5y* 2.65% 7y 209 BB+ negative outlook 9 2 9 67 7 29 25 53 44 27 6 2021 2022 2023 2024 2025 2026 >2026 secured bank debt unsecured bank debt Bonds *rate and duration refers to 200€mn loan 29
Slide 30: Outlook
5 Outlook
Slide 31: Outlook
Outlook Guidance FFO ‘21 vs ‘20 +7/8% In view of the positive signs of recent months, in a context of economic and +3/4% consumption recovery and taking into account the Covid-19 impact estimated for the current year, the 2021 FFO outlook has been revised from +3/4%, announced on 25 February, to +7/
Slide 32: Final remarks
Final remarks Urban shopping centers with an attractive food anchor resiliency confirmed Operating performance recovery paving the way for a better 2H; FFO guidance raised Italian GDP growth expected: about +6% in 2021, +4% in 2022 32
Slide 33: Agenda Corporate IR
Agenda CORPORATE IR (confirmed as of today) 4 November Results as at 30/09/2021 7 September Italian Equity week 2021 Consumer day 20-24 EPRA Annual conference September 13 October Borsa Italiana Virtual Star Conference – Fall edition 17-18 Exane BNP Paribas European Mid November Cap Virtual CEO Conf
Slide 34: Attachments
6 Attachments 34
Slide 35: Government's support measures: Sostegni and Sostegni Bis decrees
Government’s support measures: «Sostegni» and «Sostegni Bis» decrees Measures provided for by Measures provided for by Decree «Sostegni» Decree «Sostegni bis» DL 41/2021 DL 73/2021 Non-repayable contributions provided by the Tax credit for rents of non-residential Government properties confirmed: •
Slide 36: Consolidated income statement
Consolidated income statement GROUP CONSOLIDATED (a) (c) Δ 1H_CONS_2020 1H_CONS_2021 (c)/(a) Revenues from freehold rental activities 68.7 66.9 -2.6% Revenues from leasehold rental activities 5.9 6.2 3.9% Total income from rental activities 74.6 73.1 -2.1% Rents and payable leases 0.0 0.0 -0.3% Dire
Slide 37: Reclassified balance sheet
Reclassified balance sheet Sources - Uses of funds (€/000) 30/06/2021 31/12/2020 Δ Δ% Fixed assets 2,229,892 2,234,484 -4,591 -0.2% Assets under construction 42,757 42,674 82 0.2% Other non-current assets 17,714 17,374 340 2.0% Other non-current liabilities -29,767 -30,371 604 -2.0% NWC 33,435 30,42
Slide 38: Funds From Operations (FFO)
Funds From Operations (FFO) Funds from Operations CONS_2020 CONS_2021 Δ 2020 Δ% Core business Ebitda 51.4 50.6 -0.8 -1.6% IFRS16 Adjustments (payable leases) -4.3 -4.2 0.1 -1.6% Financial management Adj -13.9 -15.2 -1.2 8.9% * Extraordinary management Adj 0.0 0.0 0.0 n.a. Gross margin from trading 0
Slide 39: Other Epra metrics
Other Epra metrics EPRA Performance Measure 30/06/2021 31/12/2020 EPRA NRV (€'000) 1.165.199 1.145.827 EPRA NRV per share € 10,56 € 10,38 EPRA NTA 1.156.816 1.137.258 EPRA NTA per share € 10,48 € 10,31 EPRA NDV 1.124.867 1.149.534 EPRA NDV per share € 10,19 € 10,42 EPRA Net Initial Yield (NIY) 5,8%
Slide 40: EPRA Net Asset Value
EPRA Net Asset Value 30/06/2021 31/12/2020 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1.136.236 1.136.236 1.136.236 1.114.442 1.114.442 1.114.442 Exclude: v) Deferred tax in relation to fair value gains of IP 17.743 17.743 16.989 16
Slide 41: More financial highlights
More financial highlights 31/12/2020 30/06/2021 Gearing ratio 1.03X 0.99X Average lenght of long term debt 3.2 years 2.9 years Hedging long term debt + bond 93.0% 92.9% Share of M/L debt 98.3% 85.3% Uncommitted credit lines granted 151€ mn* 151€ mn* Uncommitted credit lines available 151€ mn 151€ mn
Slide 42: Contracts and key tenants Italy
Contratti e key tenants Italia Malls Product Turnover TOP 10 Tenant Contracts category Impact N 183 N 206 N 279 N 144 N 587 clothing 2.9% 14 18.8% 46.1% 10.5% 10.1% 14.5% clothing 2.7% 10 2021 2022 2023 2024 >2024 electronics 2.0% 8 Average residual maturity: 4.0 years clothing 1.6% 23 Total contrac
Slide 43: Contracts and key tenants Romania
Contratti e key tenants Romania Product Turnover TOP 10 Tenant Contracts category Impact Winmarkt supermarket 10.7% 11 N 142 N 252 N 60 N 26 N 67 clothing 6.5% 6 clothing 5.4% 10 clothing 4.4% 11 drugstore 2.7% 5 personal care 2.2% 4 jewellery 2.0% 5 Average residual maturity: 4.6 years offices 1.7%
Slide 44: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italia Romania Household Restaurant Culture, leisure, gift Household goods goods 9% 7% items 5% Supermarkets Culture, leisure, 3% 11% Electronics gift items Electronics Personal care 7% 12% 2% 4% Personal care Service 5% 10% Service Merchandising 7% Mix* Restaurant 7% Ent
Slide 45: Investor relations contacts
Raffaele Nardi, Director of Planning, Control and investor relations T. +39. 051 509231 Raffaele.nardi@gruppoigd.it Claudia Contarini, IR T. +39. 051 509213 claudia.contarini@gruppoigd.it Elisa Zanicheli, IR Team T. +39. 051 509242 elisa.zanicheli@gruppoigd.it Federica Pivetti, IR Team T. +39. 051 5