Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — FY2021 Earnings Presentation
54 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Feb 24, 2022
Slide 1: 2021 Results Presentation
2021 Results Presentation Conference call 24 February 2022
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: 2021 at a glance
2021 at a glance Good Operating Robust Increase in Enhanced Performances Profitability Financial Structure Tenant sales Italy in line FFO +9.2% LTV < 45% with 2019* (2021 guidance exceeded) Occupancy Italy >95% Cash on hands 158€mn Dividend yield 8.6%** Growing and satisfactory results lay a solid f
Slide 4: Highlights FY2021 (1/2)
Highlights FY2021 (1/2) Rental Income Net Rental Income 145.1€ mn 118.5€ mn -0.4% +8.2% Core business Ebitda Funds From Operation (FFO) 107.3€ mn 64.7€ mn +7.9% +9.2% Include 7.2€mn of Covid one-off net impact 4
Slide 5: Highlights FY2021 (2/2)
Highlights FY2021 (2/2) Group Net Profit Real estate Market Value (excluding leasehold) 52.8 €mn 2,140.5 €mn (2020 Net Loss -74.3€mn) -5.6% Like for Like +0.64% Epra NRV Loan to Value 10.85€ per share 44.8% +4.5% -510 bps vs 2020 Include 7.2€mn of Covid one-off net impact 5
Slide 6: Operating Performances
1 Operating Performances
Slide 7: 2021: still Covid effects, but decreasing...
2021: still Covid effects, but decreasing... Closing days 87 44 Covid one-off 18.5 net impact 7.2 €mn €mn Average ticket +18% +24% vs 2019 vs 2019 CNCC* Tenant Sales -27.6% -11.1% vs 2019 vs 2019 -14.7% Footfalls -29.5% -22.2% vs 2019 vs 2019 -26.4% 2021: less impacts from restrictions compared to 2
Slide 8: …and visitors gave good answers
…and visitors gave good answers Restrictions End of restrictions 15.1% 3.7% 0.3% 0.2% -2.4% No. COVID INFECTIONS ITALY -6.4% -2.9% -5.0% TENANT SALES -15.2% -10.5% FOOTFALLS -15.4% -24.2% -17.9% -18.1% -20.4% -17.8% -18.8% -22.2% -24.3% -34.3% -41.4% -36.0% -37.1% -40.9% -46.1% Jan Feb Mar Apr May J
Slide 9: Occupancy in Italy is growing again…
Occupancy in Italy is growing again… Restrictions End of restriction Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Difficulties due to C. 23k sqm restrictions in 2020 Effective leasing activity closed and beginning of 2021 C. 25k sqm Higher vacancy Recovery and occupancy improvement re-marketed Th
Slide 10: …thanks to an effective leasing activity
…thanks to an effective leasing activity MALLS KEY MESSAGES 72.6%* ITALY Rental income • No changes in the contract structure: MGR and inflation UPSIDE FINANCIAL rate linked OCCUPANCY flat 95.16% • OCCUPANCY is growing Italy (+124 bps vs FY20**) Romania (+105 bps vs FY20) 6.4%* ROMANIA Rental income
Slide 11: Merchandising mix is changing
Merchandising mix is changing Services, Household goods Clothing sub-categories Clothing (with a different 50.2% composition in its sub-categories) Personal and healthcare; Electronics and Restaurants In 2021 IGD has already implementd the strategic guidelines of the 2022-2024 Business Plan 8.8% 11.
Slide 12: Focus on tenant sales Jun-Dec (2021 vs 2019)
Focus on tenant sales Jun-Dec (2021 vs 2019) HOUSEHOLD 38.4% GOODS 14.3% ELECTRONICS • Household goods, CULTURE, LEISURE, electronics and 2.0% GIFT ITEMS casual/sports wear confirm 12.1% SPORT positive trends SPORT – LARGE 8.4% SURFACES • Overall clothing decreased by -4.1%, but showing a 3.0% UNDER
Slide 13: Some of the new openings in the Italian Portfolio (1/2)
Some of the new openings in the Italian Portfolio (1/2) Category: medical center Category: restaurants Category: household goods Where: Centro Borgo (Bo) Where: ESP (Ra), Where: ESP (Ra), Le Maioliche (Ra), Puntadiferro (Fc), Tiburtino (Rm) Centro Borgo (Bo) 13
Slide 14: Some of the new openings in the Italian Portfolio (2/2)
Some of the new openings in the Italian Portfolio (2/2) Category: jewellery Category: clothing Category: electronics Dove: Katanè (Ct) Where: Fonti del Corallo (Li), Where: Tiburtino (Rm) Centro Lame (Bo), Casilino (Rm), Tiburtino (Rm), Le Maioliche (Ra) 14
Slide 15: Some of the new openings in the Romanian Portfolio
Some of the new openings in the Romanian Portfolio Leasing activity to re-let the vacancy mainly due to Covid continues Total no. of openings in 2021: 44 Proline Estet – Piatra Neamt Tendresse - Ploiesti Medair - Slatina Farmacie Dr. Max - Winiland – Ploiesti Ploiesti, Bistrita Leonidas – Ploiesti 1
Slide 16: No major problems on 2021 rents collection
No major problems on 2021 rents collection SITUATION AS OF PRINCIPLES ADOPTED TODAY* Collected c.94%** «Non essential» activities ➢ Temporary reductions and Italian deferment of payments granted Portfolio ➢ Monthly invoicing up to 3Q21 ➢ From 4Q21 back to quarterly early invoicing Collected c.96% «E
Slide 17: ESG: the improvement process continues
ESG: the improvement process continues • €1,2 mn invested in • New Bio Safety • Introduced ESG • Vaccinated >400,000 • Collaboration with energy efficiency Certification in 7 targets for managers people in 2 201 local measures of buildings Shopping Centers and HQ vaccination hubs associations in Ita
Slide 18: ESG: awards and ratings
ESG: awards and ratings 4° year in a row 7° year in a row 93/100, Score A Highest score possible Rating ESG Stock Indexes ESG focused 11 ratings independent and unsolicited*, 8 indexes of which 4 are increasing *Bloomberg ESG disclosure, FTSE Russell ESG Rating, Gaia Rating, GRESB Public disclosure,
Slide 19: ESG: certifications obtained
ESG: certifications obtained Biosafety Trust Certification ISO37001 Certification 7 shopping centers Italy and Romania UNI EN ISO14001 Certification BREEAM Certification 24 shopping centers 8 shopping centers 19
Slide 20: Portfolio
2 Portfolio
Slide 21: Main evidences
Main evidences Portfolio fair value Still a considerable stabilization spread between Net Yields and gov. bonds* +0.64% 5.2% Like for Like Spread > 410bps 1.02% *EPRA NIY Italian malls vs BTP5Y gross yields as at 18/02/2022 21
Slide 22: Market value IGD
Market value IGD Gross Initial EPRA Net Initial EPRA Net Initial FY 2020 FY 2021 Δ% Yield Yield Yield topped up Malls Italy 1,476.75 1,481.64 + 0.33% 6.57% 5.3% 5.3% Hypermarkets Italy 416.67 423.83 + 1.72% 6.06% Hypermarkets sold 138.85 Romania 138.64 135.78 (-2.06%) 7.60% 6.2% 6.6% Porta a Mare +
Slide 23: Portfolio evolution
Portfolio evolution ITALY Impacts of disposal and ROMANIA hypermkt remodeling € 2,265.7mn € 2,140.5mn -490bps of market value -520bps* Of yearly revenues See slide 25 *Not considering yearly revenues of the 6 hypermkt/supermkt sold, the proforma quota of 2021 rental income decrease to 21.1% Some fig
Slide 24: Hypermarket remodeling
Hypermarket remodeling - 6,050 m2 hypermkt +4,430 m2 mall (+6 stores The process of +1 medium surface hypermarket +1 restaurant) surfaces’ reduction continues, in order to adapt them to the changed needs of their catchment areas - 2,530 m2 hypermkt +2.400 m2 malls (2 medium surfaces) 24
Slide 25: The disposal
The disposal The portfolio comprises 5 hypermarkets and 1 supermarkets; all the properties sold are «stand alone» 1 3 LIVORNO LIVORNO (LI) (LI) SCHIO (VI) Transaction closed in November 2021 140 mn€ 2 4 LUGO (RA) Value of the sold portfolio CECINA (LI) in line with book value at 30/06 5 PESARO (PU)
Slide 26: Asset management ESG oriented
Asset management ESG oriented Actions in line with 2022-2024 Business Plan Revamping and decarbon Photovoltaic plant in Mantua in Ravenna AI devices and Grosseto Project launched in ESP shopping Optimisation of energy 250 KW in Mantua and 750 KW in center with «zero emission» consumption oh HVAC sys
Slide 27: Work in progress: smart working areas
Work in progress: smart working areas CENTRONOVA Former children area being transformed in smart working area 80 m2 GLA BEFORE AFTER 2Q 2022 opening 27
Slide 28: Work in progress: leisure areas
Work in progress: leisure areas CASILINO SKY PARK Rooftop being transformed to create sport facilities, children and green areas and entertainment spaces More than 2,800 m2 End of 2022 project completed 28
Slide 29: Projects pipeline
Projects pipeline Projects Mall restyling in Restyling in Hypermarket remodeling in San Benedetto del Tronto Mantua Catania and Palermo Restyling of external facade, Total restyling of the shopping mall and parking + food court malls and creation of remodeling and use of external 3 new MS already re
Slide 30: Mixed-use project Porta Medicea in Livorno
Mixed-use project Porta Medicea in Livorno Opening 3Q 2022 OFFICINE STORICHE >20,000 m2 GLA (15,000 m2 retail- 5,600 m2 residential) 30 shops 1 fitness center 10 restaurants 42 flats to be sold (22 binding proposals*) € 12.7 mn costs to end *of which 18 binding preliminary agreements 30
Slide 31: Economic and Financial Results
3 Economic and Financial Results
Slide 32: Net rental Income
Net rental Income (€mn) Italy +8.1% +9.0€mn Romania +8.2% +9% Like for like Italy -2.3 €mn: Improvement of 2021 Malls (-2.4%): due to higher vacancy at the beginning Covid impact compared of the year and recommercialization carried out in 2021 to previous year, with effects diluted over time. differ
Slide 33: Core business Ebitda
Core business Ebitda (€mn) +7.9€mn +7.9% * Core businss 70.8% EBITDA MARGIN EBITDA MARGIN freehold 72.4% Some figures may not add up due to rounding. 33
Slide 34: Financial management (€mn)
Financial management (€mn) Figures net of accounting items (financial management adj*) is furhter decreasing (-7.2% vs FY2020) Total 36.2€mn Total -7.2% 33.3€mn IFRS16 and non recurring charges Financial Management Adj * : -2.4 €mn vs 2020 (-7.2%) *Financial management adj: net of IFRS16 (1.5€mn) an
Slide 35: FFO: guidance exceeded
FFO: guidance exceeded Of which: +2.4 €mn financial management adj -3.4 €mn negative carry +5.4€mn +9.2% FFO FY2021: +9.2% higher than the +7/8% guidance released to the market *Change in Ebitda adj: equal to core business Ebitda adjusted by non recurring expenses Some figures may not add up due to
Slide 36: Epra indicators improve…
Epra indicators improve… € per share FY 2021 FY 2020 Δ NRV 10.85 10.38 4.5% NTA 10.78 10.31 4.6% NDV 10.43 10.42 0.1% 0.59 -0.15 0.03 10.38 10.85 EPRA NRV 31/12/2020 FFO Change in assets fair value Change in financial instruments EPRA NRV 31/12/2021 and other fair value Some figures may not add up d
Slide 37: … and net debt decreases
… and net debt decreases 2020 2021 Net Debt total decrease: -168€mn NET DEBT* NET DEBT* 49.9% Loan to Value 44.8% 3.2X Interest Cover Ratio 3.3X 2.30% Average Cost of Debt 2.20% 11.7X Net Debt/Ebitda 9.2X *Net of IGD HQ leasing Some figures may not add up due to rounding. 37
Slide 38: Debt structure and maturities: 2022 maturities already covered
Debt structure and maturities: 2022 maturities already covered* €100mn: 2.25% 7y €400mn: 2.125% 5y Cash at year end: 2.1% 158 €mn 5y** 2.65% 2022 Financial maturities are 7y almost entirely covered *Considering cash at year end 2021 and 2022 cash flow **rate and duration refers to 200€mn loan 38
Slide 39: Debt structure and maturities: 2023-2024 maturities
Debt structure and maturities: 2023-2024 maturities Refinancing Rating BBB- We are working on outlook stable early refinancing 2023 maturitues BB+ outlook stable 39
Slide 40: Dividend and Outlook
4 Dividend and Outlook
Slide 41: Proposed dividend
Proposed dividend The Board of Directors resolved to propose to the Shareholders’ Meeting * a dividend equal to 0.35€ per share Dividend payment date: 11 May 2022 €0.35 8.6% Per Dividend yield** share* Consistent with what IGD announced concerning the return to dividend payment, after the extraordin
Slide 42: Outlook 2022
Outlook 2022 + 9/10% OUTLOOK FFO FY2022 This outlook is based on the current market consensus which calls for growth in the main macroeconomic indicators, as well as the assumption that there will be no further resurgence of the pandemic next fall which could lead to the introduction of new restrict
Slide 43: Agenda
Agenda CORPORATE IR (confirmed as of today) 14 April Shareholders Meeting 23 March Euronext STAR Conference (first call) 5 May Results as at 31/03/2022 11 May TP ICAP Conference in Paris 4 August Results as at 30/06/2022 27 June Italian Sustainability Week Italian – 1 July Stock Exchange 3 November
Slide 44: Attachments
5 Attachments
Slide 45: Consolidated income statement
Consolidated income statement GROUP CONSOLIDATED (a) (c) Δ FY_CONS_2020 FY_CONS_2021 (c)/(a) Revenues from freehold rental activities 133.8 132.7 -0.8% Revenues from leasehold rental activities 11.9 12.3 4.0% Total income from rental activities 145.6 145.1 -0.4% Rents and payable leases 0.0 0.0 n.a.
Slide 46: Funds From Operations (FFO)
Funds From Operations (FFO) Δ% Funds from Operations CONS_2020 CONS_2021 Δ 2020 vs 2020 Core business EBITDA 99.4 107.3 7.8 7.9% IFRS16 Adjustmens (Payable leases) -10.3 -10.4 0.0 0.4% Financial Management Adj. -33.4 -31.0 2.4 -7.2% Current taxes for the period Adj. -0.9 -1.9 -0.9 96.4% FFO 54.8 64.
Slide 47: Re-classified balance sheet
Re-classified balance sheet Sources - Uses of funds (€/000) 31/12/2021 31/12/2020 Δ Δ% Fixed assets 2,093,176 2,234,484 -141,309 -6.3% Assets under construction 44,095 42,674 1,421 3.3% Other non-current assets 42,810 17,374 25,436 146.4% Other non-current liabilities -28,086 -30,371 2,286 -7.5% Ass
Slide 48: Other EPRA metrics
Other EPRA metrics EPRA Performance Measure 31/12/2021 31/12/2020 EPRA NRV/NAV (€'000) 1,197,354 1,145,827 EPRA NRV/NAV per share € 10.85 € 10.38 EPRA NTA 1,189,467 1,137,258 EPRA NTA per share € 10.78 € 10.31 EPRA NDV 1,151,244 1,149,534 EPRA NDV per share € 10.43 € 10.42 EPRA Net Initial Yield (NI
Slide 49: Debt breakdown
Debt breakdown Net debt 31/12/21 987.03€ mn** * *Hedged debt includes also bonds **Debt calculated excluding the effect of IFRS16, but including IGD HQ leasing 49
Slide 50: More financial highlights
More financial highlights 31/12/2020 31/12/2021 Gearing ratio 0.84X 1.03X Average lenght of long-term debt 3.2 years 2.4 years Hedging on long-term debt + bond 93.0% 93.8% Share of M/L debt 98.3% 96.4% Uncommitted credit lines granted 151 € mn* 151 € mn Uncommitted credit lines available 151 € mn 15
Slide 51: Contracts and key tenants Italy
Contracts and key tenants Italy Malls Product Turnover N 267 N 741 TOP 10 Tenant Contracts N 169 N 213 category impact clothing 3.1% 14 clothing 2.9% 10 electronics 2.2% 8 Average residual maturity: 4.0 years clothing 2.1% 10 Total contracts: 1,390 of which 135 renewals with the same tenant and 124
Slide 52: Contracts and key tenants Romania
Contracts and key tenants Romania Product Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarkets 11.0% 11 N 269 N 148 N 46 N 24 N 55 clothing 6.5% 6 clothing 5.3% 10 clothing 4.3% 11 drogheria 2.6% 5 drugstore 2.5% 6 health care 2.1% 4 Average residual maturity: 4.6 years offices 1.6
Slide 53: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Merchandising Mix* Tenant Mix* *internal processing on GLA sqm 53
Slide 54: 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