Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — H1 2018 Earnings Presentation
35 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Aug 3, 2018
Slide 1: First Half 2018 Results
First Half 2018 Results Conference call 3 August 2018 puntadiferro -Forlì
Slide 2: Disclaimer
This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. DISCLAIMER 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”),
Slide 3: Highlights
Highlights €74.1 mn €60.7 mn Rental Income Net Rental Income +8.4% +9.9% €55.6 mn €34.8 mn Core business Ebitda Group Net Profit +11.3% -28.9% Margin 72.1% +230bps Margin from Freehold 80.6% (+110 bps) €38.9€mn Funds From Operations (FFO) +22% 1H2018 Results presentation 3
Slide 4: Operating performances
Operating performances Mraremà Grosseto
Slide 5: Macroeconomic context updates 1H2018
Macroeconomic context updates 1H2018 ITALY ROMANIA Economy still growing but at a slower pace Unemployment and consumer confidence are Slight decrease compared to 2017 but growth better than the 4 years average remains strong 2.0% 13.0% 120 1.5% 1.1%/1.2% 115 1.0% 1.0% 0.9% 6.7% 12.0% 110 0.1% 0.0%
Slide 6: Italy 1H operating performance
Italy 1H operating performance 97.1% occupancy increasing vs FY17 (96.8%) +3.8 % tenant sales incl. extensions + 1.4% average upside 101 signed contracts of which 34 turnover and 67 renewals ……. 2.4% Rotation rate % new tenants on total contracts Le Porte di Napoli 1H2018 Results presentation 6
Slide 7: Romania 1H operating performance
Romania 1H operating performance 97. 5% occupancy Increasing vs FY17 (96.4%) +1.1% average upside on renewals 231 signed contracts of which 111 turnover and 120 renewals 18.4% Rotation rate % new tenants on total contracts Alexandria 1H2018 Results presentation 7
Slide 8: Income and net rental income (€mn)
Income and net rental income (€mn) ITALY ROMANIA Rental income beakdown +€5.7mn +8.4% ROMANIA +1.4% +4.7% 6.5% 0.2 4.6 OTHER 0.9 HYPERMARKET 0.5% 27.0% Tot. Rental 74.1 income 68.4 €74.1 mn MALLS 66.0% Rental Income 1H2017 Change LfL Italy Non-lfl Italy (ESP extension, Change Lfl Romania Rental Inco
Slide 9: Commercial activity: fields of action
Commercial activity: 2 fields of action 1. Trend and 2. Tenant engagement innovation Greater attention to trends and understanding Mapic Italy consumers habits. Insertion of high Lockers have been performing brands that placed in 2 Shopping 133 meetings of which: led to good results in Centers thank
Slide 10: Integrated marketing approach
Integrated marketing approach In the first half of 2018 the marketing planning cycle is completed Annual marketing Events plans realisation Monitoring • Half yearly, on the Plan’s targets • Periodically, through customer and event satisfaction surveys 1H2018 Results presentation 10
Slide 11: Sustainability: news of the first half
Sustainability: news of the first half ISO 14001 ISO37001 EPRA SUSTAINABILITY 3 more centers certified. Winmarkt is the first Romanian COMMITTEE 17 the total number of IGD centers company to obtan the anti corruption First IGD participation certified certification (23 May, Bruxelles) BREEAM-IN USE C
Slide 12: New Board of Directors
New Board of Directors On 1 June 2018 the Sharheolders Meeting appointed the new Board of Directors (in office until the FY2020 results approval) Chairman and Chief Executive Officer confirmed Number of directors further reduced (from 13 to 11) Independence - professional competence - internat
Slide 13: Portfolio
FY 2009 RESULTS Bologna November 11, 2011 Portfolio
Slide 14: A consistent evolution of our portfolio…
A consistent evolution of our portfolio… Katanè € 2,228.2mn € 2,428.8mn Porte di Napoli other 4% (€87.4 mn) other 4% Romania 6% (€89.9 mn) (€157.2 mn) Romania 7% Tiburtino (€159.5 mn) SMALL 12.9% ESP +9.0% Malls 63% Malls 60% (€1.539,1 mn) KEY (€1.331,6 mn) MEDIUM 53.9% 33.2% puntadiferro Conè Hyper
Slide 15: ...with a growing value
...with a growing value ∆% Gross Initial Net Initial Yield Financial FV2017 1H2018 ∆% Net Initial Yield Like for Like Yield topped up occupancy Malls Italy 1,331.60 1,539.07 + 15.58% -0.26% + 6.3% 95.9% Tot. Italy 5.5% 5.6% 97.1% Hypermarkets Italy 647.20 645.14 -0.32% -0.32% + 6.2% 100.0% Romania 1
Slide 16: NNNAV
NNNAV 31/12/2017* € per share 30/06/2018 ∆ Restated NAV 11.87 11.65 (-1.9%) NNNAV 11.40 11.25 (-1.3%) Total effect of dividend distributed in June -0.02 -0.50 0.35 0.02 11.40 11.25 EPRA NNNAV 31 Dec Dividends Change in debt Fair FFO Assets Fair Value EPRA NNNAV 30 Jun 2017 Restated value and other 2
Slide 17: Asset management and development
Asset management and development Presentazione Risultati 1H2018 17
Slide 18: April 2018: acquisition of malls and retail park from Eurocommercial Properties
18 April 2018: acquistion of 4 malls and 1 retail park from Eurocommercial Properties… ACQUISITION’S RATIONALE Mall Mall CENTRO LEONARDO - Imola CENTRO LUNA – Sarzana Dominant malls in their catchment area Excellent operating performances Attractive Initial yield Mall + Retail Park Mall LA FAV
Slide 19: Update on the pipeline
Update on the pipeline Parte retail Parte residenzale e retail OFFICINE STORICHE: heart of the retail initiative 03/04/2018 Approved variation by the City Council. Work in progress Sqm allocated to retail: > 15,000 sqm; 43 flats seafront PIAZZA MAZZINI Sale of the residential area almost completed 6
Slide 20: Other news: spaces remodeling…
Other news: spaces remodeling… Following the success of Le Porte di Napoli and Città delle Stelle the strategy of hypermarket remodeling to favor a mall extension continues Remodeling and Restyling at Le Fonti del Corallo shopping center Facade Mall Mall Hypermarket reduction and creation of new uni
Slide 21: …and restyling
…and restyling CASILINO Internal and external restyling Architectural restyling of the external facades and internal External facades - pre and post areas coordinated with (voluntary) intervention for seismic improvement at the ground floor and first floor. 1°phase: Ground floor, facades and externa
Slide 22: Financial results and outlook
FY 2009 RESULTS Bologna November 11, 2011 Financial results and outlook Conè – Conegliano
Slide 23: Financial structure
Financial structure Loan to Value 57.1% 50% Thanks to the results of the liability management LTV range from BP 48.0% 48.3% activities carried out in 2017 and the end or decrease 47.1% 47.4% of some Irs notional, Financial management 45% 46.4% decreased by €1.5mn. Moreover, financial ratios improved
Slide 24: Debt maturity
Debt maturity Debt break down Debt maturity Average residual maturity of long term debt: 4 years Net Debt at 30/06/2018 €1,132.1 mn Work in progress BOND REFINANCING L.T. 1081,7 2.5% 5y S.T. 55 2.65% CASH 7y -4.65 3.875% 5y 2.25% 300 7y BANKING SYSTEM 162 39.3% 125 100 MARKET* 60.7% 17 56 73 53 43 4
Slide 25: The Funds From Operations (FFO) continues to grow
The Funds From Operations (FFO) continues to grow +22.0% 1.5 -0.1 5.6 38.9 31.9 FFO 1H_2017 Change in core business Change in financial Change in taxes and other FFO 1H_2018 Ebitda management (Net liability Management) 1H2018 Results presentation 25
Slide 26: Outlook
Outlook Target stated in February FFO FY2018: +18/20% vs 2017 OUTLOOK REVIEWED FFO FY2018: at least +20% vs 2017 1H2018 Results presentation 26
Slide 27: Attachments
Attachments Presentazione Risultati 1H2018 27 Centro Sarca – Sesto San Giovanni (MI)
Slide 28: Consolidated Income Statement
Consolidated Income Statement (a) (b) D GROUP CONSOLIDATED CONS_2017 CONS_2018 (b)/(a) Revenues from freehold rental activities 62.1 67.8 9.2% Revenues from leasehold rental activities 6.3 6.3 0.0% Total income from rental activities 68.4 74.1 8.4% Rents and payable leases -5.1 -5.1 0.5% Direct cost
Slide 29: Funds from Operations (FFO) €38.9 mn (+22%)
Funds from Operations (FFO) €38.9 mn (+22%) Funds from Operations 1H_2017 1H_2018 D vs cons 2017 D% Core business EBITDA 49,982 55,637 5,655 11.3% Adj Financial management -17,548 -16,046 1,502 -8.6% Adj extraordinary management 0 0 0 n.a. Adj current taxes for the period -563 -700 -137 24.3% FFO 31
Slide 30: Epra NNNAV
Epra NNNAV 31-Dec-17 31/12/2017 Restated (a) 30/06/2018 (b) D% (a vs b) NNNAV Calculation €'000 € p.s. €'000 € p.s. €'000 € p.s. Total shares* 81,304,563 110,341,903 110,341,903 1) Group shareholders' equity 1,115,753 13.72 1,263,014 11.45 1,240,190 11.24 -1.8% Excludes Fair Value of financial instr
Slide 31: Contracts in Italy and Romania
Contracts in Italy and Romania Expiry date of mall and hypermarket contracts (% value) N 24 Italy No. of contracts : 1,443 99.0% N 919 Average residual maturity Hypermarkets 7.3 years 69.1% Malls 4.5 years N 96 N 246 N 182 N1 Malls Hyper/Supermarkets 14.5% 10.1% 6.2% 1.0% 2H2018 2019 2020 >2020 Expi
Slide 32: Key tenants
Key tenants Top 10 Tenants Malls Top 10 Tenants Malls Italy Romania Product Product TOP 10 Tenant Turnover impact Contracts TOP 10 Tenant Turnover impact Contracts category category food 10.0% 11 clothing 3.1% 14 clothing 7.7% 6 clothing 2.7% 11 clothing 4.0% 11 clothing 2.4% 11 grocery 2.6% 5 cloth
Slide 33: More financial highlights
More financial highlights FY2017 30/06/2018 SHARE OF MEDIUM/LONG TERM DEBT 91.1% 80.1% * HEDGING ON LONG TERM DEBT + BOND 94.8% 87.1% * UNCOMMITTED CREDIT LINES GRANTED €276 mn €286 mn UNCOMMITTED CREDIT LINES AVAILABLE €225.6 mn €231 mn COMMITTED CREDIT LINES GRANTED AND €60 mn €60 mn AVAILABLE UNE
Slide 34: Reclassified Balance Sheet
Reclassified Balance Sheet Sources - Use of funds 31/12/2017 30/06/2018 D D% Fixed assets 2,157,176 2,358,369 201,193 9.3% Assets under construction 40,466 39,137 -1,329 -3.3% Other non-current assets 23,245 23,044 -201 -0.9% Other non-current liabilities -29,082 -27,375 1,707 -5.9% NWC 28,768 22,94
Slide 35: 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
Immobiliare Grande Distribuzione SIIQ S.p.A. (IGD SIIQ) — H1 2018 Earnings Presentation on 6ix