Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — Q1 2021 Earnings Presentation
33 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, May 6, 2021
Slide 1: Result presentation as at 31/03/2021
Result presentation as at 31/03/2021 Conference call May 6°, 2021
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: What's happened in 1Q 2021: Covid restrictions still impact
What’s happened in 1Q 2021: Covid restrictions still impact January February March Normal activity Normal activitiy lockdown Ø 2020 economic «non-essential» activities in IGD’s shopping malls impact were closed about 25% of the possible days of operation on 1Q 2020 vs Restrictions and variable Restr
Slide 4: Highlights
Highlights Rental Income* Net Rental Income 36.9€ mn 26.2€ mn -3.9% -20.7% Core business Ebitda Funds From Operation (FFO) 23.8€ mn 13.8€ mn -21.6% -33.3% Include Covid-19 one-off net impact on 1Q2021 *The value is gross of COVID net impac for €5.4mn; including it, rental income amount to €31.5 (-18
Slide 5: Operating performance
1 Operating performance
Slide 6: The main trends in the first 3 months of 2021
The main trends In the first six days without restrictions, in the first 3 months of 2021 beginning Monday, 26 April, footfalls January February March recovered 94% with respect to 2019 2021 2020 1Q 2021 vs 1Q 2021 vs Δ month/month 1Q 2020 1Q 2019 TENANT SALES -38.1% -16.9% +142.2% -14.4% -38.1% FOO
Slide 7: Leasing management performance
Leasing management performance 74% MALLS of rental KEY MESSAGES income • No changes on the ITALY structure of existing contracts CONTRACTS: FINANCIAL OCCUPANCY* • Occupancy is decreasing in Renewals 50 Turnover 22 Italy (-90 bps) because of 93.6% the «knock-on effect» of the restrictions in force si
Slide 8: Collection rate FY2020 and 1Q2021
Collection rate* FY2020 and 1Q2021 2020 1Q 2021 Collected>95% Collected~75% Monthly invoicing Italian Negotiations with Portfolio tenants are in progress to manage the second lockdown in the same way as in 2020 (especially temporary Collected >95% Collected >88% reductions) Romanian Portfolio *%
Slide 9: IGD's shopping centers adapting to this context (1/2)
IGD’s shopping centers adapting to this context (1/2) Introduction of new brands, which despite the restrictions, recorded good results: Furniture solutions, opened at International brand, 4 stores Ready to Centro ESP: opened* with excellent results; new introduce new it became a true attractive anc
Slide 10: IGD's shopping centers adapting to this context (2/2)
IGD’s shopping centers adapting to this context (2/2) Openings of new brands and formats continued, despite being one of the sectors hit hardest by the restrictions La Piadineria – Centro Lame (BO) Poke Kal - Centrosarca (MI) Food and Open air food and beverage services allowed from 26th April #3 2.
Slide 11: Effective leasing activities to combat the negative impacts of Covid
Effective leasing activities to combat the negative impacts of Covid 24* among new openings and fully Innovative brand: MI Store restyled shops Next opening @Tiburtino (Roma) Continuous intense leasing activities to re-let the higher number of vacant spaces caused by the impacts of Covid Some of the
Slide 12: IGD shopping centers to serve the community
IGD shopping centers to serve the community The shopping center, which offers large, organized, supervised, regularly sanitized and easy to reach spaces, is the ideal location to quickly and safely create areas to endure proximity healthcare La Torre in Palermo will be the first IGD shopping center
Slide 13: Our idea of shopping center in the coming years
Our idea of shopping center in the coming years «Next Steps» projects: ideas for innovation The pandemic favored the acceleration of some transformations on-going in the retail world and, therefore, in the Shopping Centers sector • Two surveys* to better understand new visitors needs «Next steps»
Slide 14: First initiatives that are already being implemented
First initiatives that are already being implemented SERVICES MERCHANDISING LAYOUT AND TENANT MIX External areas intended for Apps to book/order at the Clinics in line with the plan to restaurants and leisure restaurants endure proximity healthcare Areas intended for pick-up and pet store
Slide 15: Financial results
2 Financial results
Slide 16: Net Rental Income
Net Rental Income (€mn) Italy -6.8€mn -1.4€mn -20.9% -20.7% -4.2% Romania -17.5% -1.5 0.1 -5.4 33.0 31.6 26.2 Net rental income 1Q 2020 Change in rental income Change in rental costs Net rental income 1Q 2021 adj Covid net direct impact Net rental income 1Q 2021 Malls Italy -1.1mn€;-4.0%: Covid impa
Slide 17: Core business Ebitda
Core business Ebitda (€mn) -1.1€mn -6.6€mn -3.7% -21.6% -1.4 0.2 0.1 -5.4 30.3 29.2 23.8 Ebitda 1Q 2020 Net rental income Net service income Change in G&A expenses Ebitda 1Q 2021 adj COVID net direct impact Ebitda 1Q 2021 EBITDA MARGIN Core business 61.8% EBITDA MARGIN 62.0% freehold Some figures ma
Slide 18: Financial management
Financial management (€mn) Figure, net of accounting items related to IFRS16 and non-recurring charges, is further decreaseing (-1.5% vs FY2020) Total Total € 9.0mn Totale € 8.8mn Totale 9,0€mn 8,8€mn -1.5% 0.7 0.6 IFRS16 and non-recurring charges 8.4 8.2 Recurring financial management: -0.2€ mn vs
Slide 19: Funds From Operations (FFO)
Funds From Operations (FFO) -1.5€mn -6.9€mn -7.1% -33.3% FFO p.a. 0.13€ *Change in core business Ebitda Adj: equal to change core business Ebitda (-1.1€mn) adjusted by approx. 0.9 €mn of estimated lower leasing rents and Per il marketing +0.2 €mn of 2020 non-recurring calcolo dell’FFO sono state con
Slide 20: Financial structure
Financial structure 31/12/2020 31/03/2021 LTV 49.9% 49.5% • Net debt improved in the (adj. IFRS16 c. 47.8%) (adj. IFRS16 c. 47.6%) first quarter (-10€mn vs FY2020) ICR 3.2X 2.9X • LTV is slightly decreasing Average cost of 2.30% 2.32% debt NET DEBT Debt breakdown* €1,145.4 mn** MARKET SECURED 54.6%
Slide 21: Debt maturity and Ratings
Debt maturity €100mn: 2.25% 7y €400mn: 2.125% 5y Ratings 2.1% 5y* Repayed on 2.65% 7y 209 500 BBB- negative outlook 1 March 154 71 9 2 9 67 7 52 53 46 25 27 6 2021 2022 2023 2024 2025 2026 >2026 BB+ negative outlook secured bank debt unsecured bank debt Bonds Already repayed Taking into account the
Slide 22: Agenda Corporate IR
Agenda CORPORATE IR (confirmed as of today) 5 August Results as at 30/06/2021 18-20 May Mid&Small Cap Virtual Spring Conference 4 November Results as at 30/09/2021 28 June Italian sustainability conference 21 September EPRA Annual conference 22
Slide 23: Attachments
3 Attachments 23
Slide 24: Consolidated Income Statement
Consolidated Income Statement GROUP CONSOLIDATED (a) (c) Δ 1Q_CONS_2020 1Q_CONS_2021 (c)/(a) Revenues from freehold rental activities 35.3 33.6 -5.0% Revenues from leasehold rental activities 3.1 3.1 1.9% Total income from rental activities 38.4 36.7 -4.4% Rents and payable leases 0.0 0.0 -9.8% Dire
Slide 25: Reclassified Balance Sheet
Reclassified Balance Sheet Sources - Uses of funds (€/000) 31/03/2021 31/12/2020 Δ Δ% Fixed assets 2,231,246 2,234,484 3,238 0.1% Assets under construction 44,182 42,674 -1,508 -3.4% Other non-current assets 17,956 17,374 -582 -3.2% Other non-current liabilities -30,646 -30,371 275 -0.9% NWC 32,434
Slide 26: Funds From Operations (FFO)
Funds From Operations (FFO) Funds from Operations CONS_2020 CONS_2021 Δ 2020 Δ% * Core business Ebitda 30.3 23.8 -6.6 -21.6% IFRS16 Adjustments (Payables leases) -2.6 -1.7 0.8 0.3% Financial management adj -6.8 -7.9 -1.0 15.2% Extraordinary management adj 0.0 0.0 0.0 n.a. Gross margin from trading 0
Slide 27: More financial highlights
More financial highlights 31/12/2020 31/03/2021 Gearing ratio 1.03X 1.01X Average lenght of long-term debt 3.2 years 3.2 years Hedging on long-term debt + bond 93.0% 92.7% Share of M/L term 98.3% 98.6% Uncommitted credit lines granted 151€ mn* 151€ mn* Uncommitted credit lines available 151€ mn 151€
Slide 28: Contracts and key tenants Italy
Contracts and key tenants Italy Malls Product Rents TOP 10 Tenant Contracts category impacts N 171 N 187 N 204 N 840 clothing 3.1% 14 64.8% 10.6% 10.4% 14.2% clothing 2.6% 9 2021 2022 2023 >2023 electronics 2.1% 8 Average residual maturity: 3.9 years personal care 1.8% 17 Total contracts: 1,402 of w
Slide 29: Contracts and key tenants Romania
Contracts and key tenants Romania Product Rents TOP 10 Tenant Contracts category impacts Winmarkt supermarkets 11.3% 11 N 216 N 197 N 49 N 78 clothing 5.7% 10 36.0% clothing 4.6% 11 28.0% 25.0% clothing 3.6% 6 drugstore 2.8% 5 11.0% jewellery 2.3% 4 personal care 2.1% 5 2021 2022 2023 >2023 office 1
Slide 30: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Household Culture, leisure and Household goods Restaurants Supermarkets goods gift items 5% 7% 11% Culture, leisure 9% 3% and gift items Electronics Personal care 12% Electronics 7% 4% 2% Personal care Services 5% 9% Services Merchandising Restaurants 7% Mix
Slide 31: Evolution of the scenario in 1Q 2021
Evolution of the scenario in 1Q 2021 Restrictions, that were already in place at year-end 2020, and confirmed also in 1Q 2021, consist mainly in the division of Italy in zone of different colors (white, yellow, orange and red) based on the level of risk. MAIN NATIONAL DEGREE MAIN REGIONAL RESTRICTIO
Slide 32: Latest news: Law Decree «Riaperture»
Latest news: Law Decree «Riaperture» Approved by the Italian Government on 21 Apri 2021, it outlines the time schedule for the progressive easing of the restrictions adopted in order limit the contagion from Covid-19. The most important measures for the yellow regions, which can impact on IGD busine
Slide 33: 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