Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — 9M 2023 Earnings Presentation
34 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Nov 8, 2023
Slide 1: Result presentation at 30 September 2023
Result presentation at 30 September 2023 Conference call 8 November 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: Operating highlights: 9 months of growing performances
Operating highlights: 9 months of growing performances OPERATING TENANT SALES ITALY* FOOTFALLS ITALY PERFORMANCES +6.2% +5.4% OCCUPANCY 95.3% ITALY 97.1% ROMANIA +10 bps vs 1H23 +30 bps vs 1H23 *Total Italy malls vs 2022 3
Slide 4: Highlights: revenues and EBITDA improve and the cost of debt increases
Highlights: revenues and EBITDA improve and the cost of debt increases Δ vs Like for 9M2023 2022 like* Gross Rental Income €105.4 mn +3.2% +5.0% Net Rental Income €88.4 mn +5.7% +8.1% Core business Ebitda €81.0 mn +6.7% Funds From Operation (FFO) €44.4 mn -11.9% *Excluding assets with on-going remod
Slide 5: Operating performances
1 Operating performances
Slide 6: Good operating performances continue in Italian shopping centers
Good operating performances continue in Italian shopping centers… MALLS TENANT MALLS FOOTFALLS IGD’S HYPER/ SALES* SUPERMARKETS +6.2% +5.4% +4.9% 9M 2023 9M 2023 9M 2023 * Total change 2023 vs 2022 6
Slide 7: ...and (almost) all the merchandise categories increased
…and (almost) all the merchandise categories increased Tenant sales Italy 9M23vs22 Clothing Household Culture, leisure Personal and Electronics Restaurants Services goods and gift items healthcare (Weight on (48.5%) (7.7%) (11.3%) (9.0%) (10.3%) (7.8%) (4.8%) tot. rents) Some brands of IGD’s portfol
Slide 8: Leasing activities in Italy
Leasing activities in Italy LEASING ACTIVITIES • 135 contracts (equal to approx. 6.5% of Group total rent) of which 93 renewals and 42 turnovers • Average downside: -1.4%* (9M indexation effect +7%) OCCUPANCY 95.3% Increasing vs 1H23 (+10bps) COLLECTION RATE** > 94% ≈ 100% 9M 2023 FY 2022 Some pictu
Slide 9: A new iconic destination for shopping and entertainment
A new iconic destination for shopping and entertainment OFFICINE STORICHE • >16,000 sqm GLA • 16 shops, 11 food&beverage, 1 entertainment area , 1 fitness center Already opened Ingresso Officine Storiche Opening in November 2023 Expected opening Panoramica dell’area Porta a Mare 2H2024 9
Slide 10: Officine Storiche opening: a big success
Officine Storiche opening: a big success FOOTFALLS FOOTFALLS OCCUPANCY* first 4 days of first 45 days of 95% opening opening >110,000 >440,000 * Opened and pre-let units 10
Slide 11: Leasing activities in Romania...
Leasing activities in Romania... LEASING • 404 contracts of which 288 renewals and 116 turnovers • Average upside +2.28% OCCUPANCY 97.1% Increasing vs 1H23 (+30bps) COLLECTION RATE* ≈ 96% ≈ 100% 9M 2023 FY 2022 Some pictures from the latest openings * Figure as at 7 November 2023 11
Slide 12: ...on a continuosly evolving portfolio
...on a continuosly evolving portfolio Buzau: strong connection with the community with a public investment on the central square Consolidated partnerships with leading international brands 3 openings 2 openings 12
Slide 13: A transparent approach to ESG
A transparent approach to ESG 13
Slide 14: A portfolio increasingly green
A portfolio increasingly green SHOPPING CENTERS % MV ITALIAN MALLS CERTIFIED CERTIFIED 10 63% N° ENERGY ENERGY PRODUCED PLANTS PRODUCED OUT OF TOT. ITALY+ROMANIA Mw CONSUMED 11* 3,450 6.3% N° HYPERMARKETS WITH PLANTS ITALY TENANT DIRECT INVESTMENT FOR SELFCONSUMPTION 12 Benefits for the community in
Slide 15: ESP Net Zero project
ESP Net Zero project Centro ESP in Ravenna will begin its journey to become «Zero Carbon Emissions» Initially, replacement of traditional heating/cooling systems in all shops and common areas with highly energy efficient equipments to reduce costs for both IGD and its tenants. Afterwards, further «N
Slide 16: Financial results and financial structure
3 Financial results and financial structure
Slide 17: Net rental Income
Net rental Income Like for like Var. vs 2022 net rental +4.8€mn income +5.7% +8.1% €mn Like for like: +8.1% (+6.5 €mn) Portfolio direct costs • Malls (+3.5€mn; +4.7%): thanks to commercialization and indexation effect (+5.1 €mn (condominium fees) +7.0%), partially offset by higher temporary reductio
Slide 18: Core business Ebitda
Core business Ebitada (€mn) Change vs 2022 +5.0€mn +6.7% Core business 2022 2023 EBITDA 70.7% 72.9% MARGIN EBITDA 2022 2023 MARGIN 72.5% 75.0% freehold Some figures may not add up due to rounding 18
Slide 19: Financial management
Financial management IFRS16 and non recurring charges Financial Management. Adj * : + 10.4 €mn vs 2022 (+55.2%) due to higher average cost of new loans obtained * Financial management adj: net of IFRS16 (0.7€mn) and IFRS9, non recurring charges Some figures may not add up de to rounding 19
Slide 20: Funds From Operations (FFO)
Funds From Operations (FFO) Of which: +5.0 €mn change in core business Ebitda; -0.5 €mn increase in payable leases; -0,1 other non recurring items Change vs 2022 -6.0€mn -11.9% * Financial management adj: net of IFRS16 (0.7€mn) and IFRS9, non recurring charges and negative carry Some figures may not
Slide 21: Investment pipeline c. 82€mn
Investment pipeline • Pipeline almost completed by the end of 2023 • Investments reduction from 2024, no development projects 20€mn c.82€mn 11.5€ mn ~13 12€mn 9.0€ mn 15€mn ~32 35€mn ~12 Porta a Mare project Asset renwals Non committed investments ~ 25 ESG Investments Committed investments Asset mai
Slide 22: Net debt and LTV
Net debt and LTV Net debt 31/12/23 Net debt 30/09/23 € 976.94 mn €970.86 mn Long term financial Long term financial Strumenti Strumenti Strumenti Strumenti finanziari finanziari finanziari instruments finanziari aa a lungo a lungo instruments Strumenti finanziari lungo termine termine a lungo lungo
Slide 23: On 5 October IGD launched an exchange offer and a consent solicitation to refinance the bond
On 5 October IGD launched an exchange offer and a consent solicitation to refinance the bond expiring in 2024 TARGET EARLY REFINANCE THE 400€ MN BOND EXPIRING IN NOVEMBER 2024 CONSENT SOLICITATION EXCHANGE OFFER To align terms and conditions of the existing notes (AND TENDER OFFER*) to the ones of t
Slide 24: Debt maturity if the refinancing transaction is successfull
Debt maturity if the refinancing transaction is successfull If the refinancing transaction launched on 5° October is successfull (amount to be defined based on the results of the exchange offer) Private placement già rifinanziato tramite Green Loan firmato nel Maggio scorso €mn Possibility to reduce
Slide 25: Attachments
6 Attachments
Slide 26: Consolidated Income Statement
Consolidated Income Statement 26
Slide 27: Funds From Operations (FFO)
Funds From Operations (FFO) Δ% Funds from Operations CONS_2022 CONS_2023 Δ 2022 vs 2022 Core business Ebitda 76.1 81.0 5.0 6.5% IFRS16 adjustments (payable leases) -6.1 -6.6 -0.5 7.5% Financial management adj. -18.8 -29.2 -10.4 55.2% Extraordinary management adj. 0.0 0.0 0.0 n.a. Gross margin from t
Slide 28: Re-classified balance sheet
Re-classified balance sheet GEARING RATIO (€000) 28
Slide 29: More financial highlights and debt breakdown
More financial highlights and debt breakdown 30/06/2023 30/09/2023 Debt breakdown* Gearing ratio 0.95X 0.93X Average lenght of long term debt 2.7 years 2.4 years Hedging on long term debt + bond 86.5% 86.2% Share of M/L debt 88.0% 88.8% Uncommitted credit lines granted 103 € mn 103 € mn Uncommitted
Slide 30: Debt Maturity at 30/09/2023
Debt Maturity at 30/09/2023 5 Oct. 2023: Financial transaction to refinance Bond exp. Nov. 2024 €215mn unsecured senior green loan Remaining part of 3+(1+1 opt.) €250 (5y) secured green loan Secured Green Loan post amortization €250€mn: • May‘23: I tranche • 130€mn already used • Nov. ’23: II tranch
Slide 31: Contracts and key tenants Italy
Contracts and key tenants Italy Merchandise Turnover Malls TOP 10 Tenant Contracts category impact N 101 N 230 N 157 N 899 clothing 2.7% 11 clothing 2.6% 10 electronics 2.4% 9 Average residual maturity: 4.3 years clothing 2.0% 10 Total contracts: 1,387 of which 93 renewals with the same tenant and 4
Slide 32: Contracts and key tenants Romania
Contracts and key tenants Romania Merchandise Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarket 11.3% 11 N 63 N 259 N 134 N 126 clothing 5.3% 6 clothing 4.7% 11 clothing 3.7% 7 drugstore 2.6% 5 healthcare 2.1% 4 office 1.9% 1 Average residual maturity: 4.3 years entertainment 1.8
Slide 33: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Merchandising Mix* Tenant Mix* *Internal processing on sqm 33
Slide 34: 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