Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — FY2017 Earnings Presentation
40 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Feb 22, 2018
Slide 1: 2017 Financial Results: Another year of great achievements
FY 2009 RESULTS Bologna November 11, 2011 2017 Financial Results Another year of great achievements Conference call 22 February 2018 ESP Ravenna
Slide 2: Disclaimer
This presentation and the information contained herein does not contain or constitute an offer of securities for sale, or solicitation of an offer to purchase or subscribe for securities, in the United States, Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation w
Slide 3: 2017 in brief
2017 in brief… Openings Operating perfomance Financial profile ESP – Ravenna Positive operational and Lowered cost of debt commercial results in a Improved Loan to Value Città delle Stelle - Ascoli supportive environment Malls gla ≈ + 23,200 m2 Tenant sales Italy + 4.3% Rating BAA3 confirmed Rents ≈
Slide 4: …another year of great achievements
…another year of great achievements €145.1 mln €101.2 mln Core business revenues Core business Ebitda + 6.0% +6.7% Margin 69.7% (+40bps) Margin from Freehold 79.2% (+ 50bps) €86.5 mln €65.6 mln Group net profit Fund From Operations (FFO) +26.5 % +21.7% vs 2016 0.81€/share* €2,228 mln €13.67 per shar
Slide 5: Operational performances
Operational performances Centro Sarca – Milano
Slide 6: Italy: a more solid and growing environment
Italy: a more solid and growing environment… GDP and consumption Unemployment rate Consumer and firm confidence indexes 13.0% 125 2.0% 1.4% 1.4% 120 Consumer 1.0% 0.9% 1.0% 115 12.0% 110 0.1% Firm 105 0.0% 2013 2014 2015 2016 2017 2018e 100 11.0% 95 -1.0% 90 85 -2.0% -1.7% 10.0% 80 GDP - annual chan
Slide 7: … and a record year for real estate
… and a record year for real estate More than 70% of invested capital Total 2017 real estate investment came from foreign investors € 11 bn +21% vs 2016 Expected boosting effect of PIRs on real estate Mixed-other +27% vs 2016 1.9bn Hotel +66% vs 2016 1.5bn Industrial +95% vs 2016 1.2bn Strong
Slide 8: Romania: a booming economy
Romania: a booming economy GDP and consumption Retail real estate Hotel 10.0% 179.5mln 17% 8.0% Retail 6.7% 482.6mln 45% 6.0% 4.8% 4.5% 4.0% 4.0% 3.5% Industrial 3.1% 236.3mln 2.0% 22% 0.6% 0.0% 2012 2013 2014 2015 2016 2017e 2018e Office GDP - annual change Consumption - annual change 165.9mln 16%
Slide 9: A solid portfolio…
A solid portfolio… 93.2% 6.8% Italy of total rental Romania of total rental revenues revenues 1,253 contracts 597 contracts at 31/12/2017 at 31/12/2017 96.8% occupancy 96.4% occupancy Substantially stable vs 97.0% FY16 Increased vs 96.1% FY16 4.6 years for malls 5.6 years for malls 7.8 years for hyp
Slide 10: … with strong operational performances
… with strong operational performances 93.2% 6.8% Italy of total rental Romania of total rental revenues revenues +4.3% Tenant sales +2.1% average upside on renewals incl. extensions 459 signed contracts +1.3% LFL of which 195 turnover and 264 renewals + 4.9% average upside 32.7% Rotation rate 194 s
Slide 11: Increased rental revenues
Increased rental revenues ITALY ROMANIA +1.5% +5.4% +5.8% -0.2 0.5 5.6 1.8 138.9 131.3 €mln Rental revenues FY2016 Change LfL Italy Change Change Other Change LfL Romania Rental revenues FY2017 Acquis/Ext/Restyling Rental revenues breakdown malls are growing (+2%) hypermarkets are stable OTHER RO
Slide 12: 2017 Openings
2017 Openings Extension of the mall Hyper remodeling and reconversion in mall Ended in June 2017 Ended in November 2017 Additional GLA ≈ 19,000 m2 Additional GLA ≈ 4.200 mq Footfall: +34.5% (Jun-Dec 17) Footfall: +17.8% (Nov-Dec 17) Tenat sales:+ 7.2% Tenant sales: + 10.1% existing mall (Jun-Dec 17)
Slide 13: Eighth Sustainability Report
Eighth Sustainability Report. First Report subject to assurance. Materiality changed 2015 and 2016 Reports GREEN RESPONSIBLE ETICHAL ATTRACTIVE TOGETHER 60% of the Anticorruption Virtual reality system Welfare project for All the main portfolio with LED certification project for all IGD shopping all
Slide 14: Environmental sustainability: projects in progress
Environmental sustainability: projects in progress DEFINED THE PROCEDURE TO CERTIFY BREEAM IN USE 4 KEY ASSET (TARGET 2018) 14 SHOPPING CENTERS ALREADY UNI EN ISO 14001 CERTIFIED, equal to the 70% of the portfolio that IGD del portafoglio che IGD ha deciso di certificare ELECTRICITY FROM RENEWABLE S
Slide 15: Innovation – new projects
Innovation – new projects VIRTUAL REALITY • Purchased a virtual reality system, which in Italy is unique, to be brought in rotation in all Centers WASTE2VALUE • IGD Portfolio was presented through the virtual reality • First project of circular system at Mapic 2017 economy carried out in a Shopping
Slide 16: Property Portfolio
FY 2009 RESULTS Bologna November 11, 2011 Property Portfolio
Slide 17: A consistent evolution of our portfolio
A consistent evolution of our portfolio…. Katanè € 2,177.8mln € 2,228.2mln Other 4% Porte di Napoli Other 4% (€89.9 mln) (€92.4 mln) Romania 7% Romania 8% (€159.5 mln) (€164.9 mln) SMALL Tiburtino 13.0% +2.3% Malls 59% Malls 60% (€1,274.2 mln) (€1,331.6 mln) ESP KEY MEDIUM 56.1% 30.9% puntadiferro H
Slide 18: ...with a growing value
...with a growing value Net Net Initial Δ% Gross Initial Financial FV 2016 * FV 2017 Δ% Like for Like Yield Initial Yield topped occupancy Yield up Malls Italy 1,274.2 1,331.6 + 4.5% + 1.3% 6.3% 95.4% 5.4% 5.5% Tot. Italy Hyper Italy 646.3 647.2 + 0.1% + 1.3% 6.2% 100.0% 96.8% Romania 164.9 159.5 -3
Slide 19: The pipeline continues
The pipeline continues Gran Rondò (Crema) Officine Storiche (Livorno) New medium surface (+ 2,850 m² GLA) already rented Redevelopment of the former Cantieri Navali Orlando, a Complete restyling of the outside of the shopping mall modern retail concept with personalcare services (fitness, Completiti
Slide 20: Porta a Mare project
Porta a Mare project MOLO AREA LIPS ARSENALE MEDICEO OFFICINE STORICHE PALAZZO Heart of the Retail initiative ORLANDO WORK IN PROGRESS 1 office sold and 6 rented Completition: 2H2019 Total sold/rented: 53.4% M2 allocated to retail: > 15,000 m2 43 flats waterfront PIAZZA MAZZINI Sale of the residenti
Slide 21: Financial results
FY 2009 RESULTS Bologna November 11, 2011 Finacial results Conè – Conegliano
Slide 22: A strong growth of Fund From Operations (FFO)
A strong growth of Fund From Operations (FFO)… -0,1 5.5 6.3 65.6 53.9 FFO FY2016 Change in EBITDA Change in Financial Mgt. Change in taxes and other FFO FY2017 (Net liability Management) Exceeding expectations Target communicated in August for the full year: +20% FY2017 Results Presentation 22
Slide 23: … and the value created throughout the year
… and the value created througout the year € per share 31/12/2016 31/12/2017 Δ NAV 13.69 14.3 + 4.5% NNNAV 12.85 13.67 + 6.3% € 0.29 € 0.81 € 13.67 € 0.16 € 12.85 € - 0,45 EPRA NNNAV Dividend Change in debt fair FFO Assets fair value EPRA NNNAV FY2016 value and other FY2017 No. of shares at the end
Slide 24: Proactive liability management strategy
Proactive liability management strategy… Hedging policy confirmed 1° Private Placement on US market a costi inferiori Expired IRS cost 4.38% €100 mln (with no early closure costs) Coupon 2.25% - duration 7 years Replaced with 2 IRS cost 0.59% Entirely subscribed by Pricoa (April 2017) (January 2017)
Slide 25: … to strengthen the financial profile
… to strenghten the financial profile Loan to Value ICR and cost of debt 4.50% 3.00 2.93 Average 4.00% 4.03% 57.1% cost of 3.94% 3.67% 2.50 debt 3.50% 2.24 50% 2.14 2.00 I C3.00% R 1.90 3.30% LTV range from BP 48.3% 1.77 48.0% 47.4% 2.82% 47.1% 2.50% 1.50 45% 2.00% 1.00 2013 2014 2015 2016 2017 2013
Slide 26: Acquisition and capital increase
Acquisition and capital increase
Slide 27: Acquisition and capital increase
Acquisition and capital increase 15-Dec-17 Bod approves the acqusition and capital increase The extraordinary Shareholders Meeting approved the capital increase 12-Feb-18 (votes in favor 99.95%) Next steps by the end of Completion of the capital increase April 2018 by the end of the first half C
Slide 28: Dividend and outlook
FY 2009 RESULTS Bologna November 11, 2011 Dividend and outlook
Slide 29: Dividend
Dividend The Board of Directors resolved to propose to Shareholders’ Meeting*: Minimum amount of dividends €49.3 mln It could be raised in order to distribute € 50-52 cents per share** Evolution of total dividend and dps Dps 60 0.55 area €0.50-0.52 50 0.5 Dps 40 €0.45 0.45 30 Dps €0.40 Dps 0.4 20 €0
Slide 30: Outlook 2018: FFO expected +18/20%
Outlook 2018 FFO expected for 2018* ≈ + 18/20% vs FFO 2017 FFO Evolution €mln +18/20% +21.7% +18.9% +28.5% 35.1 45.3 53.9 65.6 2014 2015 2016 2017 2018 FY2017 Results Presentation * Outlook calculated according the hypothesis of conclusion of the capital increase by the end of the first half of 2018
Slide 31: Annexes
Annexes FY2017 Results Presentation ESP Ravenna 31
Slide 32: Consolidated Income Statement
Consolidated Income Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/12/2016 31/12/2017 D% 31/12/2016 31/12/2017 D% 31/12/2016 31/12/2017 D% Revenues from freehold real estate and rental act. 118,882 126,276 6.2% 118,882 126,276 6.2% 0 0 n.a. Revenues form leasehold real estate and
Slide 33: Margin from activities
Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 31/12/2016 31/12/2017 % 31/12/2016 31/12/2017 % 31/12/2016 31/12/2017 % Margin from freehold properties 102,999 109,668 6.5% 102,999 109,668 6.5% 0 (0) n.a. Margin from leasehold properties 2,171 2,219 2.2% 2,171 2,219 2.2%
Slide 34: Fund from Operations (FFO) €65.6 mln (+21.7%)
Fund from Operations (FFO) €65.6 mln (+21.7%) Funds from Operations FY 2016 FY2017 D vs FY2016 D% Core business EBITDA 94,855 101,187 6,332 6.7% Adj. Financial Management -39,817 -34,350 5,466 -13.7% Gestione Partecipazione/Straordinaria Adj -125 0 125 n.a. Adj. Current taxes for the period -1,004 -
Slide 35: EPRA NNNAV per share
EPRA NNNAV per share no. of shares at the end of 2015 and 2016: 813,045,631 FY2017 Results Presentation 35
Slide 36: Contracts in Italy and Romania
Contracts in Italy and Romania Expiry date of hypermarket and mall contracts (% of value) N 24 Italy No. of contracts: 1,253 99.0% N 662 Average residual maturity Hypermarkets 7.8 years 65.3% Malls 4.6 years N 100 N 208 N 125 N1 Malls Hyper/Supermarkets 15.0% 10.1% 9.7% 1.0% 2018 2019 2020 >2020 Rom
Slide 37: Key tenants
Key tenants Top 10 Tenants Malls Top 10 Tenants Malls Italy Romania Product No. of Product No. of TOP 10 Tenant Turnover impact TOP 10 Tenant Turnover impact category contracts category contracts food 7.1% 9 clothing 3.1% 12 clothing 4.9% 6 clothing 2.8% 11 clothing 3.3% 11 clothing 2.5% 28 electron
Slide 38: Further financial highlights
Further financial highlights FY2016 FY 2017 SHARE OF MEDIUM/LONG TERM DEBT 84.6% 91.1% HEDGING ON LONG TERM DEBT + BOND 93.8% 94.7% UNCOMMITTED CREDIT LINES GRANTED €276 mln €276 mln UNCOMMITTED CREDIT LINES AVAILABLE €164 mln €164 mln COMMITTED CREDIT LINES GRANTED AND €60 mln €60 mln AVAILABLE UNE
Slide 39: Reclassified balance sheet
Reclassified balance sheet Sources - Uses of funds 31/12/2016 31/12/2017 D D% Fixed assets 2,050,728 2,157,176 106,448 5.2% Assets under construction 75,004 40,466 -34,538 -46.0% Other non-current assets 25,543 23,245 -2,298 -9.0% Other non-current liabilities -32,150 -29,082 3,068 -9.5% NWC 56,378
Slide 40: 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