Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — FY2022 Earnings Presentation
49 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Feb 23, 2023
Slide 1: Results Presentation at 31/12/2022
Results Presentation at 31/12/2022 Conference call 23 February 2023
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: The effectiveness of our operating model is confirmed
The effectiveness of our operating model is confirmed SOLID OPERATING RESULTS Tenant sales increased +13.3% compared to 2021 STRONG LEASING ACTIVITIES New Stores opened 173 Upside Italy +1.1% Romania +1.8% HIGHER OCCUPANCY RATE Italy 95.7% Romania 98.0% 3
Slide 4: Highlights
Highlights Δ vs Δ vs Like for FY2022 2021 2021R* like Net Rental Income €114.0mn -3.7% +5.3% +7.1% Core business Ebitda €103.4mn -3.6% +6.5% Funds From Operation (FFO) €67.2mn +3.8% +18.9% Real Estate Portfolio €2,080.9mn -2.8% Market Value (excluding leasehold) Epra NRV 10.28€ per share -5.3% * 202
Slide 5: Operating Performances
1 Operating Performances
Slide 6: Solid performances: full recovery of shopping centers in Italy
Solid performances: full recovery of shopping centers in Italy TENANT SALES FOOTFALLS +13.3% 2022 vs 2021 +6.9% 2022 vs 2021 +0.7% 2022 vs 2019 -17.1% 2022 vs 2019 +2.1% Jun-Dec 2022 vs 2019 • Less frequent but more targeted visits 1Q 2Q 3Q 4Q HYPERMARKETS +2.5% 2022 vs 2021 • The food anchor confir
Slide 7: All merchandise categories increased
All merchandise categories increased… • All merchandise categories increased compared to 2021 thanks to the end of restrictions and fewer infections • Good performances in all clothing segments • Restaurants grew compared to 2021, with the introduction of 9 new brands • Very positive trends confirme
Slide 8: Leasing activities is effective in Italy
…and leasing activities is effective in Italy… Occupancy Upside** Collection rate** 95.7% +1.1% +50bps vs FY2021 c. 96% 91 renewals 80 turnovers 104 new stores of which 35 new brands highest figures in the last 5 years *Upside on renwals and turnover 8 **Collection rate updated on 20 February 2023
Slide 9: …and in Romania
…and in Romania Occupancy Upside** Collection rate 98.0% +1.8% c. 97%** +510 bps vs 1H2022 121 turnovers +341 bps vs FY2021 272 renewals New opening 69 2023 new stores of which 42 new brands *Upside on renewals 9 **figures updated on 20 February 2023
Slide 10: Hypermarket remodeling projects
Hypermarket remodeling projects PortoGrande La Torre Katanè S. Benedetto del T. Palermo Catani a New 3 Medium New 3 Medium surfaces New 4 Medium hypermarket surfaces hypermarket + stands hypermarket surfaces 8,300m2 GLA 3,800m2 GLA 7,200m2 GLA 4,700m2 GLA 7,300m2 GLA 6,500m2 GLA Medium surfaces Pre-
Slide 11: Porta a Mare mixed-use project Officine Storiche retail
Porta a Mare mixed-use project Officine Storiche retail >16,000 m2 GLA retail and entertainment >80% pre-letting 27-29-30/10/22 Open day to institutions and citizens with high attendance 2Q 2023 Expected opening 11
Slide 12: Digital strategy: actions taken and results achieved
Digital strategy: actions taken and results achieved Digital Marketing Plan defined 2020 Customer Relationship Management system implemented 2021 • 134 new touchpoints installed (totems and infopads) • + 30 ledwalls for advertising campaigns 2022 • +42% in CRM’s contacts vs 2021 • 18 consumer segmen
Slide 13: Co-marketing projects
Co-marketing projects with COOP ALLEANZA 3.0 in 12 IGD’s malls • 20M Coop leaflets + 680k email/sms COMMUNICATION sent to 170k Coop members with news on initiatives and events in the centers involved PROMOTIONS • 50k vouchers distributed to customers DIGITAL • >21k contacts and +20% members in CRM s
Slide 14: In-person events resumed
In-person events resumed 531 Events organized 14
Slide 15: Sustainability: first results of the 2022-2024 Business Plan path
Sustainability: first results of the path defined in the 2022-2024 Business Plan €2,4 mn invested in Bio Safety Certification Induction actitivies 35 new brands Defined the improving the energy obtained for all freehold with the BoD relating introduced in Italy Sustainability efficiency of the asset
Slide 16: Sustainability: GHG emissions considerably reduced over the last 5 years
Sustainability: GHG emissions considerably reduced over the last 5 years - 26.2% -18% District Heating: - Monitoring and efficiency actions -19% Electricity consumption: - Led lighting systems - Photovoltaic system -27% Fuel consumption: - Plant improvements (ex. new boilers) - Management interventi
Slide 17: Sustainability in Romania
Sustainability in Romania First PHOTOVOLTAIC ENERGY SYSTEM installed in our most important shopping center. 4 more plants expected to be installed in 2023 17
Slide 18: Portfolio
2 Portfolio
Slide 19: IGD's Portfolio
IGD’s Portfolio Gross Initial EPRA Net Initial EPRA Net Initial Financial FY 2021 FY 2022 Δ% Yield Yield Yield topped up occupancy Malls Italy 1,481.6 1,466.5 (-1.02%) 6.97% 94.70% 5.6% 5.9% Hypermarkets Italy 423.8 401.2 (-5.35%) 6.41% 100.0% Romania 135.8 128.3 (-5.49%) 7.99% 6.1% 6.5% 98.01% Port
Slide 20: Market Value Evolution
Market Value Evolution ITALY ROMANIA € 2,140.5mn € 2,080.9mn Change in Fair Value is mainly due to the increase in rates 20
Slide 21: Investment pipeline c. 82€mn
Investment pipeline Key points: • Business Plan pipeline almost completed by the end of 2023 • Investments reduction from 2024, no development projects • Maintaining maximum flexibility over the period 15€mn c.82€mn 32€mn 17€mn 35€mn 15€mn Non committed investments Committed investments 21
Slide 22: Restyling La Favorita Mantua - completed
Restyling La Favorita Mantua - completed • Internal layout of the mall completely redesigned • New energy-efficient LED lighting system • Improved connection among the shopping center and the nearby cinema and sport arena • Photovoltaic solar panels installed in the parking area • New green and pede
Slide 23: Porta a Mare mixed-use project – Officine Storiche residential
Porta a Mare mixed-use project – Officine Storiche residential • 42 flats • 17 units sold; c.7€mn cash-in in 2022 • 15 binding proposals; c.6.7€mn expected cash-in 23
Slide 24: Restyling in progress
Restyling in progress Leonardo (Imola - Bo) Portogrande (Ap) Total restyling of Total restyling the mall, facade of the mall and parking area Work started: 2022 Work started: 2023 End of work: end of End of work: 2Q 2024 2023 24
Slide 25: Economic and Financial Results
3 Economic and Financial Results
Slide 26: Net rental Income
Net rental Income Change vs 2021R +5.7€mn +5.3% Of which: Like for like -10.9 €mn Change in income net rental Change vs 2021 scope income -4.5€mn +0.7 cost of the sold portfolio +7.1% -3.7% €mn Like for like: +3.2% (+4.1 €mn) Malls Italy (+2.9%): positive effect of commercialization and indexation (
Slide 27: Core business and margin Ebitda improved
Core business and margin Ebitda Change vs 2021R improved +6.3€mn +6.5% Change vs 2021 -3.9€mn -3.6% €mn Core business 2021 2022 EBITDA 70.8% 71.6% MARGIN EBITDA 2021 2022 MARGIN 72.4% 73.5% freehold Some figures may not add due to rounding. 27
Slide 28: Financial Management
Financial Management -12.2% IFRS16 and non recurring charges Financial Management Adj * : -3.8 mln vs 2021 (-12.2%) *Financial management adj.: net of IFRS16 (1.2€mn) and IFRS9, non recurring charges Some figures may not add due to rounding. 28
Slide 29: Funds From Operations (FFO)
Funds From Operations (FFO) Change vs 2021R Of which: +10.7€mn -10.9 €mn Change in income Of which: scope, +3.8 €mn financial management +18.9% +0,7 €mn costs of the sold portfolio adj. 2,0 €mn lower payable leases due -0.4 €mn 2021 negative carry Change vs 2021 to the end of masterlease in Piave +2
Slide 30: Epra indicators
Epra indicators € per share FY2022 FY 2021 Δ% NRV 10.28 10.85 -5.3% NTA 10.20 10.78 -5.3% NDV 10.06 10.43 -3.6% Some figures may not add due to rounding. 30
Slide 31: Financial management activities carried out
Financial management activities carried out 1° Unsecured senior Committed credit lines Unsecured bank loan green loan renewed up to 2025 guaranteed by Sace (215€mn) (60€mn fully available) (21€mn) 31
Slide 32: Net Debt and LTV
Net Debt and LTV NET DEBT FY2021 NET DEBT FY22 € 987 mn € 976.94 mn Long term financial Strumenti finanziari a Long lungo term financial instruments termine instruments 991.01 1.145,11 1,145.11 Short term financial instruments 13.00 Cash flow IQ Cash flow IIQ Dividends Cash flow IIIQ Cash flow IVQ C
Slide 33: Debt Maturity
Debt Maturity Bond Exp. Nov. 2024 Unsecured senior green loan €215mn 3+(1+1 opt.) Maturities mainly in 18 months • In line with its investment grade profile, IGD is working on refinancing the next 18 months maturities in advance: a transaction, for around €225 – 250 million, is currently being defin
Slide 34: Dividend and Outlook
5 Dividend and Outlook
Slide 35: Proposed Dividend
Proposed Dividend 0.30€ 49.3% 0.21€ FFO* which represents 0.09€ 10.9% Dividend yield** *It is proposed to the Board of Directors to approve a dividend proposal to the Shareholders’ Meeting; dividend payment date: 10 May 2023 ** On closing price as at 22/02/2023 35
Slide 36: 2023 Outlook
2023 Outlook IGD expects to see higher operating results also in 2023. Net Rental Income expected to rise by 3/4% like-for-like compared to 2022 thanks also to: • increase in occupancy, • contracts’ inflation indexing • income from opening of new projects, like Officine Storiche Neverthless, due to
Slide 37: Final Remarks
Final Remarks 1 IGD’s business model fully recovered from the pandemics and higher operating results are expected also in 2023 2 IGD confirms to be a «dividend company» offering an attractive remuneration to Shareholders 3 IGD is committed in maintaining a rigorous financial discipline: refinancing
Slide 38: Attachments
6 Attachments
Slide 39: Consolidated Income Statement
Consolidated Income Statement GROUP CONSOLIDATED (a) (c) Δ FY_CONS_2021 FY_CONS_2022 (c)/(a) Revenues from freehold rental activities 132.7 128.3 -3.4% Revenues from leasehold rental activities 12.3 9.0 -27.3% Total income from rental activities 145.1 137.3 -5.4% Rents and payable leases 0.0 0.0 -88
Slide 40: Re-classified balance sheet
Re-classified balance sheet Sources - Use of funds(€/000) 12/31/2022 31/12/2021 Δ Δ% Fixed assets 2,041,330 2,093,176 -51,846 -2.5% Assets under construction 36,662 44,095 -7,433 -16.9% Other non current assets 43,191 42,810 381 0.9% Other non current liabilities -26,699 -27,466 767 -2.8% Assets hel
Slide 41: Funds From Operations (FFO)
Funds From Operations (FFO) Δ% Funds from Operations CONS_2021 CONS_ 2022 Δ 2021 vs 2021 Core business Ebitda 107.3 103.4 -3.9 -3.6% IFRS16 Adjustment (payable leases) -10.4 -8.2 2.161 -20.9% Financial Management Adj* -31.0 -27.2 3.8 -12.2% Extraordinary Management Adj * 0.0 0.0 0.0 n.a. Current tax
Slide 42: Other Metrics
Other Metrics EPRA Performance Measure 12/31/2022 12/31/2021 EPRA NRV (€'000) 1,133,860 1,197,354 EPRA NRV per share € 10.28 € 10.85 EPRA NTA 1,125,979 1,189,467 EPRA NTA per share € 10.20 € 10.78 EPRA NDV 1,110,002 1,151,244 EPRA NDV per share € 10.06 € 10.43 EPRA Net Initial Yield (NIY) 6.0% 5.8%
Slide 43: EPRA Net Asset Value
EPRA Net Asset Value 12/31/2022 12/31/2021 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1,121,800 1,121,800 1,121,800 1,171,758 1,171,758 1,171,758 Exclude: v) Deferred tax in relation to fair value gains of IP 18,175 18,175 17,161 17
Slide 44: More financial highlights and debt breakdown
More financial highlights and debt breakdown 31/12/2021 31/12/2022 Debt Breakdown* Gearing ratio 0.84X 0.87X Average lenght of long term debt 2.4 anni 2.7 anni Hedging on long term debt + bond 93.8% 84.3%** Share of M/L debt 96.4% 92.7% 4,3 Uncommitted credit lines granted 151€ mn 151€ mn Uncommitte
Slide 45: Contracts and key tenants Italy
Contracts and key tenants Italy Merchandise Turnover Malls TOP 10 Tenant Contracts category Impact N 262 N 241 N 175 N 723 clothing 2.7% 10 clothing 2.6% 13 electronics 2.3% 10 Average residual maturity: 4.1 years clothing 2.1% 11 Total contracts: 1,401 of which 91 renewals with the same tenant and
Slide 46: Contracts and key tenants Romania
Contracts and key tenants Romania Merchandise Turnover TOP 10 Tenant Contracts category Impact Winmarkt supermarkets 10.9% 11 N 322 N 79 N 76 N 24 N 44 clothing 7.4% 6 clothing 4.5% 11 clothing 3.7% 7 drugstore 2.7% 5 health care 2.1% 4 offices 2.0% 1 Average residual maturity: 4.5 years jewellery 1
Slide 47: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Merchandising Mix* Tenant Mix* *internal processing on sqm 47
Slide 48: Agenda
Agenda CORPORATE IR (confirmed as of today) 13 April Annual General Meeting (first call) 22 March Euronext STAR Conference 4 May Results as at 31/03/2023 10 October 2023 Italian Excellences Mid Corporate Conference Intesa Sanpaolo 2 August 13-15 6th MidCap CEO Conference Exane Results as at 30/06/20
Slide 49: 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