41 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Feb 26, 2019
Slide 1: Full year 2018 results
FY 2009 RESULTS Bologna November 11, 2011 Full year 2018 results Conference call February 26, 2019
Slide 2: Disclaimer
This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or in Aust
Slide 3: 2018 key events
2018 key events \ Appointment of the new Board of Directors NOV EMBER \ DECEMBER 1 | 2019-2028 strategic Plan | Achieved the 2016-2018 \ strategic Agreement with Business Plan targets: | Coop Alleanza 3.0 Accumulated FFO c. €200mn (cagr +21.6%) Luv. 45.8%
Slide 4: Highlights 1/2
Highlights 1/2 €151.8 mn €124.0 mn Rental Income Net Rental Income +9.2% + 10.9% €113.7 mn €46.4 mn Core business Ebitda Group Net Profit +12.4% - 46.3% Margin 71.9% +220bps Margin from Freehold 80.3% (+ 110bps) €2,412.2 mn €11.45 per share Portfolio Market Value Epra NNNAV +8.3% +0.4% vs € FY2017*
Slide 5: Highlights 2/2
Highlights 2/2 €79.7 mn Funds From Operations (FFO) +21.4% €0.50 per share €0.72 Proposed dividend FFO per share 5
Slide 6: Operating performances
Operating performances
Slide 7: Revenues and net rental income (€mn)
Revenues and net rental income (€mn) +12.9 €mn +1.3% +2.9% +9.2% Rental revenues breakdown 6.4% 0.5% 0.3 10.9 1.7 26.5% Total rental 151.8 revenues 138.9 €151.8 mn 66.6% Rental income FY 2017 Change in LfL Italy Non Like for like Italy Change in LfL Romania Rental income FY 2018 Malls Hypermkt Roman
Slide 8: A well-structured portfolio…
A well-structured portfolio… 93.6% 6.4% Italy of total rental Romania of total rental income income 1,467 contracts 571 contracts 97.2% occupancy 97.1% occupancy Growing vs 96.8% FY17 Growing vs 96.4% FY17 4.4 years for the malls 4.8 years for malls 17.7 years for the hyper Average residual maturity
Slide 9: … and good operating performances confirmed
… and good operating performaces confirmed 93.6% 6.4% Italy of total rental Romania of total rental income income +2.2% tenant sales 3.9% average upside on renewals incl. extensions 423 signed contracts +0.7% excl. extension of which 174 turnover and 249 renewals Stable average rents* 30.5% Rotation
Slide 10: A positive year in IGD's malls
A positive years in IGD’s malls A dynamic merchandising mix Weight of the total Change Increased weight of the services turnover 4.1% + 0.6 p.p. Increased weight of the food court turnover 8.2% + 0.4 p.p. Decreased weight of clothing/accessorize/sheos 47.2% - 0.6 p.p. turnover on the total No substi
Slide 11: Innovative elements-1/2
Innovative elements-1/2 NEW BRANDS • 27 new tenants inserted (of which 10 are restaurants) • Scouting: 38 new interantional tenants (+14 compared to 2017) MORE SERVICES 21 Dental clinics (turnover up +9.7%) CUSTOMER JOURNEY • Chatbot (vitual assistant) installed in 3 Shopping Centers (Casilino, Citt
Slide 12: Innovative elements-2/2
Innovative elements-2/2 EXPERIENCE Place where it is possible to enjoy experiences that cannot be repeated in any other location: shopping, entertainment and aggregation. In 2018 two pilot projects have been carried out in Città delle Stelle and Puntadiferro: all the events are meant to be experenti
Slide 13: Romania - Marketing activities
Romania - Marketing activities New entry in Winmarkt portfolio: merchandising mix more and more international and attractive 4 stores (Piatra Neamt, Braila, Vaslui, Ramnicu Valcea) German brand Happy Cinema (Alexandria) and Max Gym (Ploiesti) Win Magazin Sa first Romanian society to obtain the UNI I
Slide 14: 9° Sustainability Report
9° Sustainability Report Transparency and Reliability International standards implemented + assurance sBPR 2018 News 3 In-depth analisys carried out: Impacts assessment 2016-2018 Sustainability Plan IGD and SDGs 3 «impact forms» have been Reporting of the achievement Specific reference to 10 (out of
Slide 15: 9° Sustainability Report_results achieved
9° Sustainability Report_results achieved GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER Decrease in electricity 99% employees that 3 stars score 530 events carried out 255 local organizations consumption: -1.1% have benefitted from confirmed in the 19 Shopping Centers hosted in the Shopp
Slide 16: Portfolio
FY 2009 RESULTS Bologna November 11, 2011 Portfolio
Slide 17: A further evolution of the Portfolio…
A further evolution of the Portfolio… Katanè Porte di Napoli € 2,228.2mn +8.3% € 2,412.2mn * Other 4% (€97.9 mn) Other 4% Tiburtino (€89.9 mn) Romania 7% (€154.8 mn) Romania 7% (€159.5 mn) ESP medium 36% Malls 65% Key** puntadiferro Malls 60% (€1,573.8 mn) 54% ** (€1,331.6 mn) small Conè 10% C. Sarc
Slide 18: IGD Mkt value
IGD Mkt value Net Initial ?% Gross Initial Financial FV 2017 FV 2018 ?% Net Initial Yield Yield topped Like for Like Yield occupancy up Malls Italy 1,331.60 1,573.79 + 18.2% + 0.4% 6.41% 96.24% 5.30% 5.40% Tot. Italy Hyper Italia 647.20 585.63 (-9.5%) + 1.3% 6.08% 100.0% 97.2% Romania 159.53 154.79
Slide 19: 2018 Asset Management
2018 Asset Management 18th April - 4 malls acquired* Dominant centers in their catchment area Excellent operating perfomances Mall Mall CENTRO LEONARDO - Imola CENTRO LUNA – Sarzana Attractive initial yield (gross/net yield 6.8% /6.4%) Re-constitution of full ownership (2 shopping centers )
Slide 20: Ongoing projects: Fonti del Corallo remodeling and restyling
Ongoing projects: Fonti del Corallo remodeling and restyling New Mall Facade Mall Remodeled hypermarket Internal and external restyling Hypermarket reduction (new GLA 9,300 sqm) and creation of new units in the Mall (new GLA approx. 5,400 sqm) in which services will be inserted Unicoop Tirreno signe
Slide 21: Ongoing projects: Casilino restyling and remodeling
Ongoing projects: Casilino restyling and remodeling Internal and external restyling Architectural restyling of the external facades and the internal areas coordinated with (voluntary) improvement of the anti-seismic measures at the Ground Floor and the First Floor. Remodeling Reduction of the hyperm
Slide 22: Ongoing projects: Porta a Mare
Ongoing projects: Porta a Mare 21/12/2018 – Building permit obtained in accordance with the agreement signed on 15 November Officine Storiche - Porta A Mare Piazza Mazzini 21/12/2018 -OTTENUTO IL PERMESSO DI COSTRUIRE SECONDO LA CONVENZIONE FIRMATA LO SCORSO 15 NOVEMBRE NELL’AMBITO DEL PROGETTO “POR
Slide 23: Financial results
FY 2009 RESULTS Bologna November 11, 2011 Financial results Conè – Conegliano
Slide 24: Funds From Operations (FFO)
Funds From Operations (FFO) +21.4% 1.8 -0,2 12.5 79.7 65.6 FFO FY_CONS2017 Change in core business EBITDA Change in financial Change in taxes and other FFO FY_CONS2018 management (Net liability Management) Higher than the announced guidance (+20%) 24
Slide 25: NNNAV
NNNAV 31/12/2017* € per share 31/12/2018 D% Restated NAV 11.87 11.77 -0.9% NNNAV 11.40 11.45 0.4% - 0.27 0.72 - 0.50 0.10 11.40 11.45 EPRA NNNAV 31 DEC Dividend Change in debt fair FFO Assets Fair Value EPRA NNNAV 31 DEC 2017 Restated value and other 2018 * Values at 31 December 2017 have been adjus
Slide 26: Proactive liability management continues…
Proactive liability management continues… Breakdown of secured and unsecured debt 31/12/2017 31/12/2018 LTV 47.4% 45.8% SECURED 33% ICR 2.9X 3.5X UNSECURED 67% AVERAGE COST OF DEBT 2.8% 2.7% 26
Slide 27: Financial structure
Financial structure 2.5% 5y 2.65% Repaid bond 7y 2.25% 300 7/1/19 7y 200 bond Bank debt 125 162 100 46 58 67 53 52 45 25 27 2019 2020 2021 2022 2023 2024 2025 >2025 NET DEBT as at 31/12/2018 ~€1,108 mn 31/12/2017 31/12/2018* GEARING RATIO c. 0.94X c. 0.88x L.T. MARKET BANKING ~1,068 49.0% SYSTEM AVE
Slide 28: Dividend and outlook
Dividend and outlook
Slide 29: Proposed dividend €0.50 per share
Proposed dividend The Board of Directors resolved to propose to Shareholders’ Meeting*: €0.50 per share Dividend yield (c.8% based on the price at 25 February) Dividend payment date May 15, 2019 Evolution of total dividend and dps Dps Dps € 0.50 60 flat vs 2017 0,55 € 0.50 50 0,5 Dps € 0.45 40 Dps D
Slide 30: Outlook 2019
Outlook 2019 FFO FY2019 Outlook c. +6/7% vs 2018 Funds from Operations ca +6/7% +21.4% +21.7% +18.9% +28.5% 35,1 45,3 53,9 65,6 79,7 €mn 2014 2015 2016 2017 2018 2019 30
Slide 31: Agenda
Agenda April 10, 2019 Annual General Meeting (first call) May 7, 2019 Results at 31/03/2019 August 2, 2019 Results at 30/06/2019 November 7, 2019 Results at 30/11/2019 31
Slide 32: Attachements
Attachements Centro Leonardo
Slide 33: The Italian real estate in 2018
The Italian real estate in 2018 Asset class that performed better considering the contraction in the real estate market. Retail: €2.2bn Strong demand from international -6% vs 2017 retailers: many brands entered in the Office: €3.4bn Total 2018 Italian market the first time over the -17% vs 2017 r
Slide 34: Consolidated income statement
Consolidated income statement (a) (b) D GROUP CONSOLIDATED CONS_2017 CONS_2018 (b)/(a) Revenues from freehold activities 126.3 139.3 10.3% Revenues from leasehold activities 12.6 12.5 -1.3% Total income from rental activities 138.9 151.8 9.2% Rents and payable leases -10.2 -10.3 0.5% Direct costs fr
Slide 35: Funds from Operations (FFO) €79.7 mln (+21.4%)
Funds from Operations (FFO) €79.7 mln (+21.4%) Funds from Operations FY_CONS_2017 FY_CONS_2018 D vs cons 2017 D% Core business EBITDA 101,187.3 113,723 12,535 12.4% Adj. Financial Management -34,350 -32,504 1,846 -5.4% Adj. Extraordinary Management 0 0 0 n.a. Adj. Current Taxes for the period -1,204
Slide 36: EPRA NNNAV per share
EPRA NNNAV per share 31/12/2017 31/12/2017 Restated (a) 31/12/2018 (b) D% (b vs a) NNNAV Calculation €'000 € p.s. €'000 € p.s. €'000 € p.s. Total shares 81,304,563 110,341,903 110,341,903 1) Group sharheolders' equity 1,115,753 13.72 1,263,014 11.45 1,252,338 11.35 -0.8% Excludes Fair value of Finan
Slide 37: Contracts in Italy and Romania
Contracts in Italy and Romania Expiry date of mall and hypermarket contracts (% value and n. of contracts) Italy N. 1,467 contracts: N 24 92.7% Average residual maturity N 821 Ipermarkets 17.7 years 63.1% Malls 4.4 years Malls N 200 N 240 N 180 N1 Hyper/Supermarkets N1 13.9% 12.9% 10.2% 6.2% 1.1% 20
Slide 38: Key tenants
Key tenants Top 10 Tenants Malls Italy Top 10 Tenants Malls Romania Product Turnover Product Turnover TOP 10 Tenant Contracts TOP 10 Tenant Contracts category impact* category impact food 7.6% 9 clothing 3.1% 14 clothing 4.7% 6 clothing 2.8% 11 clothing 3.3% 11 clothing 2.4% 11 grocery 2.1% 5 clothi
Slide 39: More Financial Highlights
More Financial Highlights FY2017 FY 2018 SHARE OF MEDIUM/LONG-TERM DEBT 91.1% 79.8%* UNCOMMITTED CREDIT LINES GRANTED €276 mn €191 mn UNCOMMITTED CREDIT LINES AVAILABLE €225.6 mn €148.2 mn** COMMITTED CREDIT LINES GRANTED AND AVAILABLE €60 mn €60 mn UNENCUMBERED ASSETS €1,475.4 mn €1,462.6 mn * With
Slide 40: Reclassified Balance Sheet
Reclassified Balance Sheet Surces - Use of funds 31/12/2017 31/12/2018 D D% Fixed assets 2,157,176 2,346,527 189,351 8.8% Assets under construction 40,466 36,563 -3,903 -9.6% Other non-current assets 23,245 22,699 -546 -2.3% Other non-current liabilities -29,082 -27,906 1,176 -4.0% NWC 28,768 26,020
Slide 41: Investor relations contacts
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 509260 federica.pivetti@gruppoigd.it to @igdSIIQ