Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — H1 2024 Earnings Presentation
35 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Aug 1, 2024
Slide 1: 1H 2024 Results Presentation
1H 2024 Results Presentation Conference call 1 August 2024
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: Our priorities
Our priorities Increase the core business profitabilty Enhance our Generate financial additional value maturities profile and match it through the more consistently «Service for with cash flows Third Parties» Business unit 3
Slide 4: Our approach toward sustainability
Our approach toward sustainability Reduce the Portfolio carbon footprint Develope skills, promote inclusion and wellbeing of employees and ensure safety of shopping center visitors Accelerate integration of sustainability into internal processes Enhance shopping centers as sustainable, attractive, i
Slide 5: Financial Highlights 1H2024
Financial Highlights 1H2024 Δ vs Δ vs Like for 1H2024 2023 2023R* like** Net Rental Income 59.0 € mn -0.1% +4.5% +4.5% Core business Ebitda 53.9 € mn +0.1% +5.0% Financial Management 36.9 € mn +92.0% Funds From Operation (FFO) 18.3 € mn -40.7% -35.6% Epra NRV 8.92€ -3.2% per share Loan To Value 44.9
Slide 6: Operating Highlights 2Q24 vs 1Q24
Operating Highlights 2Q24 vs 1Q24 ITALY ROMANIA 2Q 1Q 2Q 1Q 1H24 1H24 UPSIDE +3.6% -3.5% +0.36% +6.54% -0.6% +4.94% WALB* (years) • Malls 1.82 1.78 2,2 2,1 • Hypermarkets 12.22 11.77 FINANCIAL OCCUPANCY (%) • Malls + Hypermarkets 94.96 94.76 +20 bps 95.52 95.45 +7 bps • Malls 94.38 94.16 +22 bps *We
Slide 7: Property valuations have stabilised
Property valuations have stabilised Δ % 2024 vs FY 2023 Net Exit EPRA Net Initial EPRA Net Initial FY 2023 IH 2024 2023 pro- pro-forma Yield Yield Yield topped up forma Malls Italy 1,404.8 1,351.6 1,347.4 (-0.31%) 7.2% 6.1% 6.3% Hypermarkets Italy 399.8 190.6 189.0 (-0.83%) 6.2% Romania 122.0 122.0
Slide 8: Epra NAV indicators
Epra NAV indicators € per share 1H 2024 FY 2023 Δ% NRV 8.92 9.22 -3.2% NTA 8.85 9.15 -3.2% NDV 8.76 9.00 -2.7% Some figures may not add up due to rounding 8
Slide 9: First half shopping centers operating performances
1 4 5 First half shopping centers operating performances* MALLS IGD’S HYPERMARKETS +0.4% CNCC-EY FOOTFALLS 2024 vs 2023 -2.6% +1.2% -0.5% CNCC-EY TENANT SALES 2024 vs 2023 -0.9% Footfalls Tenant sales Sales 1H COLLECTION RATE 95% ITALIAN PORTFOLIO 1H COLLECTION RATE 96% ROMANIAN PORTFOLIO * Figures
Slide 10: New openings have continued over the quarter…
New openings have 1 4 5 continued over the quarter… From September 1° Notorious Cinemas arrives in Ferrara (Nuova Darsena) The multiplex cinema (10 screens) will undergo a complete restyling in July and August, in order to re- open in September 2024 10
Slide 11: … including anchor tenants in Officine Storiche
… including 2 anchor tenants in 1 4 5 Officine Storiche 28th July: opening 1° store in IGD’s shopping centers 3rd September: opening 1° store in IGD’s shopping centers 11
Slide 12: The digital strategy
4 5 The digital strategy 2 June ‘24 22 June ‘24 15 July ‘24 Exclusive App for visitors and tenants: • A customer engagement and loyalty tool, 18 July ‘24 allowing visitors to, among other things, win prizes in relation to their visits and purchases at the shopping centers; 22 July ‘24 • An opportuni
Slide 13: Services for Third Parties Business unit
Services for Third Parties Business unit: 1 2 3 4 5 two medium surfaces remarketed at Clodì Shopping Center IGD offers ASSET MANAGEMENT Services with the vision of a property company that aims to maintain assets as functional and flexible as possible in order to preserve their value over time and ex
Slide 14: The decarbonization process continues
1 4 The decarbonization process continues La Favorita Shopping Center – MN New photovoltaic system installed to cover Katanè, Catania parking slots, operational from September La Favorita, Mantova ESP, Ravenna N. PLANTS PEAK POWER ITALY+ROMANIA* Mwp 12 3,100 Braila, Romania *in 11 shopping centers 1
Slide 15: Agreement to renew the National Collective Labour Agreement
2 5 An agreement has been reached to renew the National Collective Labour Agreement The renewal of the National Collective Labour Agremeent (expired in 2019) was signed at the end of March 2024 after a long negotiation led by Coop Alleanza 3.0, IGD’s majority shareholder. Despite an increase in pers
Slide 16: Net rental Income (€mn)
Net rental Income (€mn) Change vs 23R +2.6€mn Of which +4.5% • -3.2 €mn change in revenue; • +0.6 €mn direct costs of the sold portfolio. Change vs 23 -0.1% Like for like (+1.3 €mn +2.1%): Margin on Change % LFL €mn 2024 • Malls (+1.1€mn; +2.3%) revenues NRI • Hypermarkets (+0.2€mn; +3.8%) NRI Italy
Slide 17: Core business Ebitda and Ebitda margin
Core business Ebitda and Ebitda margin Change vs 23R +2.7€mn +5.3% Change in net rental income due Change vs 23 to the sold portfolio +0.1€mn +0.1% EBITDA 2023 2024 73.9% MARGIN 72.8% 73.6% 69.1% Core business EBITDA * 2023 2023 MARGIN 75.1% 75.8% freehold *related to rental income 17 Some figures m
Slide 18: Financial Management
Financial Management 6,4 IFRS16 and non recurring charges 1,3 Financial Management Adj * : 30,5 + 12.6mn vs 2023 (+70.1%) 17,9 * Financial management adj: net of IFRS16, IFRS9, non recurring charges (including quota of the over the par redemption of bonds) Some figures may not add up due to rounding
Slide 19: FFO
FFO Change vs 23R Increase in financial -10.1€mn Of which: management adj. It excludes +2.6 €mn change in core business -35.6% IFRS 16, non recurring charges Ebitda excluding the disposal; and quota of the over the par Change in Ebitda of the -0.1 €mn increase in payable leases; redemption +0.1 othe
Slide 20: Group net result
Group net result Of which: +61.5 €mn lower Of which: impairment and fair value -17.7€mn change adjustments; in financial Change vs -0.1 €mn change in management; 2023 amortization and provisions -29.1€mn «Food» -30.8% impact. Some figures may not add up due to rounding 20
Slide 21: Financial structure…
Financial structure… NET DEBT FY2023 NET DEBT 2024 € 968.4 mn € 818.1 mn Long term financial instruments Long term 974.47 financial instruments 812.83 Short term financial instruments 12.37 Cash -6.07 Cash -7.1 48.1% Loan to Value 44.9%* 3.86% Average cost of debt 6.05% 2.4X Interest Cover Ratio** 1
Slide 22: …and debt maturity profile
1 5 …and debt maturity profile Consultations with banks/investors are in process to reshape the maturities profile Ratings 294 • Fitch: BBB- (Stable) 11/2023 • S&P: BB (Stable) 05/2024 220* 4 14 12 142 8 58 6 32 20 2024 2025 2026 2027 >2027 Secured bank debt Unsecured bank debt Bond * Includes €215
Slide 23: 2024 FFO Guidance
2024 FFO Guidance In view of the operating and financial results achieved in the first half of 2024, and assuming no significant adverse changes will affect the global macroeconomic context, the Company confirms the FFO guidance disclosed to the market on 27 February 2024 2024 Funds From Operations
Slide 24: Agenda
Agenda IR CORPORATE (confirmed as of today) NOV Results as at SEP Euronext Sustainability Week 07 30/09/2024 9-11 2024 - Virtual SEP 2024 EPRA 18-19 Conference - Berlin OCT 2024 Italian Excellences Mid Corporate 09 Conference ISP - Paris NOV BNP Paribas Exane MidCap CEO Conference 2024 - 19 Paris 24
Slide 25: Attachments
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Slide 26: Consolidated Financial Statements
Consolidated Financial Statements (a) (c) Δ GROUP CONSOLIDATED Cons 2023 Cons 2024 (c)/(a) Revenues from freehold rental activities 65.6 64.4 -1.7% Revenues from leasehold rental activities 4.5 4.8 5.6% Total income from rental activities 70.1 69.1 -1.4% Rents and payable leases 0.0 0.0 n.a. Direct
Slide 27: Re classified balance sheet
Re classified balance sheet Sources - Uses of funds (€/000) 6/30/2024 12/31/2023 Δ Δ% Fixed assets 1,684,925 1,959,053 -274,128 -14.0% Assets under construction 2,200 2,364 -164 -6.9% Other non current assets 122,780 42,861 79,919 186.5% Other non current liabilities -20,266 -26,835 6,569 -24.5% NWC
Slide 28: Funds From Operations (FFO)
Funds From Operations (FFO) Δ% Funds from Operations CONS_2023 CONS_2024 Δ 2023 vs 2023 Core business EBITDA 53.8 53.9 0.1 0.2% IFRS16 Adjustments (Payable leases) -4.4 -4.5 -0.1 2.8% Financial management adj.* -17.9 -30.5 -12.6 70.1% Current taxes for the period -0.6 -0.6 0.0 0.9% FFO 30.9 18.3 -12
Slide 29: Other Metrics
Other Metrics EPRA Performance Measure 6/30/2024 12/31/2023 EPRA NRV (€'000) 983,943 1,016,875 EPRA NRV per share € 8.92 € 9.22 EPRA NTA 976,452 1,009,216 EPRA NTA per share € 8.85 € 9.15 EPRA NDV 966,738 993,138 EPRA NDV per share € 8.76 € 9.00 EPRA Net Initial Yield (NIY) 6.1% 6.1% EPRA 'topped-up
Slide 30: EPRA Net Asset Value
EPRA Net Asset Value 6/30/2024 12/31/2023 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 970,082 970,082 970,082 1,000,533 1,000,533 1,000,533 Exclude: v) Deferred tax in relation to fair value gains of IP 15,754 15,754 15,137 15,137 vi
Slide 31: More financial highlights and debt breakdown
More financial highlights and debt breakdown 31/12/2023 30/06/2024 Debt breakdown* Gearing ratio 0.97X 0.84X Average lenght of long term debt 3,7 years 3.1 years Hedging on long term debt + bond 73.8% 77.3% Share of M/L debt 96.8% 94.0% Uncommitted credit lines granted 101.6€mn 101.6€ mn Uncommitted
Slide 32: 1H2024 Key tenants in Italy and…
1H2024 Key tenants in Annualized Malls Tenants TOP 10 Contracts rent impact 1 83,64% 18 2 12,08% 4 3 3,67% 2 4 0,61% 1 Turnover Hypermarket Tenants Contracts impact 1 82.5% 19 2 13.4% 4 3 Distribuzione Centro Sud * 4.1% 2 Total 10 % 25 Italy and… Merchandise Turnover MERCHANDISING MIX AND TOP 10 Ten
Slide 33: .. Romania
.. Romania Merchandise Turnover MERCHANDISING MIX AND TOP 10 Tenant Contracts category impact TENANT MIX supermarket 11.7% 11 clothing 5.5% 5 clothing 4.5% 11 clothing 3.6% 7 drugstore 2.5% 5 entertainement 2.3% 5 pharmacy 2.3% 4 office 2.1% 1 jewellery 1.9% 1 restaurant 1.4% 4 Total 37.8% 54 33
Slide 34: Contracts in Italy and Romania
Contracts in Italy and Romania Total contracts: 1,333 of which N 157 N 163 N 192 N 821 51 renewals with the same MALLS tenant and 52 signed with a new tenant WALB: 1.82 years Rotation rate: 3.9% (% new tenants on tot. contracts) N8 HYPER / Total contracts: 8 SUPERMAR KETS WALB:12.22 years N 152 N 25
Slide 35: Investor Relations contacts
Raffaele Nardi, Director of Planning, Control, Investor Relations and Sustainability 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 Te
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