Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (March 2024)
75 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, March 2024
Slide 1: Road show presentation March 2024
Road show presentation March 2024
Slide 2: Disclaimer
Disclaimer IGD These statements include financial projections and This presentation does not constitute an offer or an estimates and their underlying assumptions, statements invitation t o subscribe for or purchase any securities. regarding plans, objectives and expectations with respect to future o
Slide 3: Index
Index 1 Introduction to IGD Pag. 4 2 Portfolio Pag. 12 3 Operating performances FY23 Pag. 26 4 Financial Results FY23 Pag. 38 5 Financial Strategy Pag. 45 6 Disposal transaction details Pag. 49 7 Dividend and Outlook Pag. 53 8 ESG Strategy at-a-glance Pag. 56 9 Appendix Pag. 72 3
Slide 4: Introduction to IGD
1 Introduction to IGD
Slide 5: IGD at a glance
IGD at a glance IGD is one of the main players in the Italian retail real estate sector: we develop and manage shopping centres across the country. We are also present in the retail sector in Romania 19 hyper/ 14 shopping 27 shopping supermarkets c. €2.0bn malls in Development malls in Italy & other
Slide 6: IGD Business Model
IGD Business Model A distinctive competitive positioning Well Diversified Across Strong Track-Record of 1 Italy 2 Strategic Positioning 3 Strong Food Anchor 4 Direct Management 39.2k 35.2k 1 30.9k Services 38.0k 33.1k 3 5 30.3k 2 35.3k 23 1 31.6k 30.4k 26.8k 7 24.5k 7 Food Court 24.7k 32.7k 2 5 19.8
Slide 7: A typical example: Centro Esp in Ravenna
A typical example: Centro Esp in Ravenna Industrial area Dominant (1) and touristic area Our assets are the dominant Industrial and retail destination in their Romagna’s «Riviera» touristic port (110km touristic destination) catchment area Densely populated residential neighborhoods «Urban» shopping
Slide 8: An overview of our Group structure
An overview of our Group structure (1) 72.5% Revenues (2) Parent Company 100% Financial Debt 100% 16.8% Revenues Italian Facility Management No Financial Debt 100% 6.4% Revenues Romania No Financial Debt 100% Development project in 4% Revenues Livorno No Financial Debt 1. For a complete group chart
Slide 9: Our shareholding structure
Our shareholding structure Share Capital Average Market Capitalization Number of shares: 110,341,903 01/01 – 31/12/23 € 650 Mn c. €279 Mn Average daily trading: Listed on the Italian Stock Exchange Net Equity EUR 1.0 Bn 01/01 – 31/12/23 in the STAR segment c. 283,407 shares Majority of institutional
Slide 10: IGD Governance – Directors and Committees
IGD Governance – Directors and Committees IGD’s governance has been in line with the criteria of the Self Regulatory Code of Italian Stock Exchange since it was listed. An internal Corporate Governance Code has been in use since 2005. CEO EXECUTIVE Claudio Albertini CHAIRMAN Rossella Saoncella Timot
Slide 11: Our Top Management
Our Top Management Rossella Saoncella (1954) Chairman Claudio Albertini (1958) Chief Executive Officer • Appointed in May 2009 • Appointed as IGD’s Chairman on 20 April 2021 • IGD Board member since 2006 • Member of EPRA (1) Advisory Board since 2017 • Member of ECSP’s (2) Nominations Committee sinc
Slide 12: Portfolio
2 Portfolio
Slide 13: IGD: a portfolio of high-quality assets
IGD: a portfolio of high- quality assets IGD Main Italian Asset Centro Sarca Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro Centro Leonardo Conè Conegliano Sesto S.Giovanni Ravenna Faenza (RA) Bologna Bologna Forlì Imola (BO) (TV) (MI) North Centro Piave Clodì Centro Nova Mondovicino Nuova D
Slide 14: IGD's portfolio market value
IGD’s portfolio market value… + 90bps from 2019 Italy + 60bps from 2019 Romania Significant increase in Yields since the Pre-Covid years 14
Slide 15: Shopping centers confirmed to be a profitable assets class
Shopping centers confirmed to be a profitable assets class Average IGD’s Prime yields Italia malls net exit yield 7.19% 6.75% 5.20% 5.00% 4.25% 4.00% 3.82% BTP10Y yield Shopping centers are the asset class with the largest spread with respect to the Italian BTP10y yields and better positioned in a f
Slide 16: Epra indicators
Epra indicators € per share FY 2023 FY 2022 Δ% NRV 9.22 10.28 -10.3% NTA 9.15 10.20 -10.4% NDV 9.00 10.06 -10.5% Some figures may not add up due to rounding 16
Slide 17: Investment pipeline 2022-2024
Investment pipeline 2022-2024 • The Business Plan investment pipeline amounts to approx. 80€mn (slightly lower than the 82€mn initially expected) • No further development projects post 2024 20€mn c.80€mn 11€mn ~18 25€mn 9€mn ~30 35€mn Porta a Mare Project ~12 ESG Investments Asset renewals Non commi
Slide 18: Porta a Mare Livorno Mixed-use project
Porta a Mare Livorno Mixed-use project D C A B A Piazza Mazzini C Officine Storiche • Retail: operating, 100% owned by IGD • Retail: >16k sqm, • Residential: 73 flats, sales completed • Residential: 42 flats, sales ongoing B Palazzo Orlando D Sub areas Lips, Molo Mediceo and Arsenale • Offices: sold
Slide 19: Inaugurated in Livorno a new iconic destination
Inaugurated in Livorno a new iconic destination for shopping and entertainment OFFICINE STORICHE LIVORNO >16,000 m2 GLA 11 restaurants 1 fitness center 1 entertainment area Officine Storiche entrance 16 shops Next opening Overview of the Porta a Mare area 2H24 19
Slide 20: Officine Storiche residential
Officine Storiche residential 42 flats 30 units sold 5 binding proposals CASH IN: c.7€mn 2022 c.6€mn 2023 c. 4€mn exp. 2024 20
Slide 21: Restyling Portogrande completed
Restyling Portogrande completed RESTYLING COMPLETED Inauguration 23 november Malls: • Floor, walls and windows • Relamping LED Exterior: • New facades, entrances and lighting systems • Photovoltaic system • New green areas 21
Slide 22: Lungosavio fully operational after the floods
Lungosavio fully operational after the floods • Centro Lungosavio is the only BEFORE IGD center hit hard by the flood in Emilia Romagna in May 2023 • Hypermarket: re-opened in June 2023 • Shops in the mall: progressive AFTER reopening starting from July 2023 • Commercial remodeling ongoing to create
Slide 23: The restyling in Centro Leonardo continues
The restyling in Centro Leonardo continues COMPLETE RESTYLING: Mall: • New layout of common areas • Relamping with LED lighting system Estimated end of work: 2Q 2024 Exterior: • New entrances • Green areas • LED lighting system Estimated end of work: end 2025 23
Slide 24: ESG Capex: Energy efficiency targets
ESG Capex: Energy efficiency targets Main targets -21.5% GHG emissions (at 2025 location based «baseline 2018») At least 1 asset carbon positive Centro Tiburtino (Roma) - render of the main entrance (at 2030) 100% Use of energy from renewable sources (already in place) Centro Sarca (Milano) – render
Slide 25: ESG Capex: Energy efficiency improvements
ESG Capex: Energy efficiency improvements 7 Photovoltaic systems to be added to the 8 already existing 25
Slide 26: Operating performances FY23
3 Operating performances FY23
Slide 27: Strong operating performances
Strong operating performances… Footfalls +4.5% ITALY MALLS ITALY HYPER Tenant sales +4.3% IGD Group’s Number of tickets +3.9% hypermarkets and supermarkets sales Spending on each +0.4 € +3.9% purchase +1.4% Figures FY23 vs FY22 27
Slide 28: With almost all the merchandise categories growing
… with almost all the merchandise categories growing Slowdown after years of significant growth Tenant sales Italy FY23vs22 Clothing Household Culture, Personal and Electronics Restaurants Services Weigths on total goods leisure and healthcare rents Italian Malls (49.3%) gift items (8.7%) (10.0%) (7
Slide 29: The leasing activities in Italy
The leasing activities in Italy … LEASING ACTIVITIES OCCUPANCY - 40 bps vs FY22 95.3% +10bps vs 1H23 • 188 new contracts (representing approx. 13.5% of Group’s total rent) of which 135 renewals and 53 turnover COLLECTION RATE ** • Stable rents (-0.45%*) ca. 97% FY 2023 Some pictures from the latest
Slide 30: Confirms the dynamism of brick&mortar retail
… confirms the dynamism of «brick&mortar» retail In 2023: 2021-2023 91 new brands of which > 15,700 m2 22 in 2023 Re-let (4% rotation rate) Part of the best performing merchandise categories: > 15,800 m2 CLOTHING 4 New opening (Officine Storiche) CULTURE, LEISURE AND GIFT ITEMS 7 83 New RESTAURANTS
Slide 31: Officine Storiche: a big success!
Officine Storiche: a big success! FOOTFALLS OCCUPANCY* First 4 months 95.6% since opening >910,000 * Opened and pre-let units 31
Slide 32: An example of space remodeling: La Torre – Palermo
An example of space remodeling: La Torre – Palermo • FOOTFALLS Hypermarket reduction 3 new medium surfaces and change of tenant created (7,200m2 GLA) (+4,700m2 GLA) +14.8% (12/23 vs 09/22) • OCCUPANCY 100% • Soaring of hypermarket profitability due to surfaces Creation of new stands recalibration: +
Slide 33: Good news also in Romania
Good news also in Romania … LEASING ACTIVITIES OCCUPANCY -180bps vs FY22 96.2% -60bps vs 1H23** • 662 new contracts of which 515 renewals and 147 turnover COLLECTION RATE* • Upside: +1.94% ca. 98% FY 2023 Some pictures from the latest opening *Figure as at 22 febbraio 2024 **Mainly due to the exit o
Slide 34: IGD's assets in Romania attractive, improved carbon footprint
… where IGD’s assets confirm to be attractive and improve their carbon footprint Enhanced partnerships with premium brands : 147 • The second largest fitness club chain in Romania • 3 fitness clubs New stores opened • 3,500 m2 of which 2 • Fast fashion brand new brands • 2 stores • 1,700 m2 Installe
Slide 35: Marketing: focus on digitalisation and partnerships with tenants
Marketing: focus on digitalisation and partnerships with tenants SPOTLIGHT PARTNER PROJECT: PROJECT: increase improve partnerships with tenants in CRM contacts and loyalty 1. WITH COOP ALLEANZA 3.0 in 11 Shopping Centers Communication: C. 15M Coop leaflets distributed about news, events • First IGD
Slide 36: Events in IGD shopping centers are increasing and renewing
Events in IGD shopping centers are increasing and renewing 555 EVENTS ORGANIZED (+4% vs 2022) GUIDELINES TERRITORY/ LOYALTY SOCIALITY ENTERTAINMENT COMMUNICATION EXPERIENCE Implement CRM Enhance the Offer advanced Enhance Make shopping for targeted shopping center leisure communication esperential a
Slide 37: Financial Results FY23
4 Financial Results FY23
Slide 38: Highlights
Highlights FY2023 Δ vs Like for FY2022 (€mn) 2022 like (€mn) Rental Income 142.4 +3.2% 137.3 Net Rental Income 119.6 +4.9% +7.1% 114.0 Core Business Ebitda 108.2 +4.6% 103.4 Funds From Operations (FFO) 55.4 --17.5% 67.2 Real Estate Portfolio 1,968.1 2,080.9 Market Value (excluding leasehold) 9.22 €
Slide 39: Net rental Income
Net rental Income change vs 2022 +5.6 €mn +4,9% €mn Like for like (+6.7€mn +5.3%): 2023 Change LFL Net Rental Income • Malls (+4.7€mn; +4.7%) (€ mn) (%) • Hypermarkets (+1.4€mn; +5.9%) Italy 111.7 7.3% • Romania (+0.6€mn; +6.9%) Romania 7.9 4.9% Non like for like (-1.6€mn) Consolidated 119.6 7.1% So
Slide 40: Core business Ebitda and Ebitda margin improved
Core business Ebitda and Ebitda margin improved … Var. vs 2022 +4,8€mn +4,6% €mn Core business 2022 2023 EBITDA 71.6% 72.1% MARGIN EBITDA 2022 2023 MARGIN 73.5% 74.1% freehold Some figures may not add up due to rounding 40
Slide 41: Rising interest rates affected financial management
… but rising interest rates affected financial management IFRS16 and non recurring charges Financial management Adj * : +15.5€mn vs 2022 (+56.9%) * Financial management adj: net of IFRS16 and IFRS9, non recurring charges (including quota of the over the par redemption) 41 Some figures may not add up
Slide 42: Funds From Operations (FFO)
Funds From Operations (FFO) Of which: +4.8 €mn change in core business Ebitda; -0.6 €mn increasing payable leases; -0.4 €mn other non recurring items Change vs 2022 -11.8€mn -17.5% FFO FY2023: €55 mn Guidance ≈ € 53mn EXCEEDED *Financial management adj: net of IFRS16 and IFRS9, non recurring charges
Slide 43: Net debt and LTV
Net debt and LTV NET DEBT FY2022 NET DEBT FY2023 € 976.9 mn € 968.4 mn √ Cash produced Long term financial even after the Strumenti finanziari a instruments Strumenti lungofinanziari terminea Long term financial instruments dividend payment 991.01 lungo termine 1.145,11 974.47 1.145,11 √ LTV is grow
Slide 44: Financial Strategy
5 Financial Strategy
Slide 45: The liability management activities carried out in the year
The liability management activities carried out in the year… Throughout 2023 we refinanced a stock of € 650mn of debt despite hard conditions in the markets ✓ Green secured loan with a pool of banks (250€mn) ✓ Exchange and Tender Offer and Consent Solicitation (c. 400€mn) Resources used also for ✓ €
Slide 46: Extension of financial maturity profile
… enabled an extension of financial maturity profile At the closing of the disposal transaction, announced on 23 february 2024, IGD will receive c. 155 € mln entirely aimed at reducing debt Average debt maturity 3.7 years Ratings Fitch: BBB- (Stable) nov. 2023 S&P: BB (Stable) feb. 2024 3 years with
Slide 47: Disposal transaction details
6 Disposal transaction details
Slide 48: The disposal envisaged in the BP has been finalized
The disposal envisaged in the BP has been finalized PIAZZA 1 CLODì (VE) 2 I MALATESTA (RN) 3 MARCANTONI (VT) Portfolio Portafoglio valued HYPER+RP HYPER SUPER Characteristics 258 euro mn (consistent with the book value at year end) 4 CONè (TV) 5 PORTOGRANDE 6 CENTROBORGO • 11 hyper/super markets HYP
Slide 49: Transaction details
Transaction details Transaction REAL ESTATE 60% SPV (50% Sixth Street ; 50% Starwood Capital) structure INVESTMENT FUND (class A shares with preferred return *) «Food» 40% IGD (class B shares with subordinated return*) (managed by Prelios SGR) • IGD will sign a contract with the SGR to continue to m
Slide 50: Impact on IGD
Impact on IGD Impact on market value Loan-to-Value reduction Market value Market value 31/12/23 31/12/23 pro forma Malls + other Malls + other 48.1% 44.4% LTV 31/12/23 LTV 31/12/23 20.3% 11.2% pro forma Hyper/ Hyper/ super super Net rental income Other impact on profit and loss ≈ +2€mn (on EBITDA) ≈
Slide 51: Disposal strategy
Disposal strategy Other part of the Portfolio still target for potential disposal Potential targets Strategic rationale Portfolio of selected super/hypermarkets ➢ Reduction of financial Potential disposals leverage Romania over BP timespan 180/200 € mn 3 Porta a Mare plots of land to or more be deve
Slide 52: Dividend and Outlook
a rae FE SAAR INHTAAR AB able Fy
Slide 53: Dividend
Dividend 2023 Considering the negative fair value movements that entail a negative net result in IGD SIIQ SPA there is no obligation to distribute a dividend in 2024, in compliance with SIIQ rules. Moreover the terms and conditions of the note “€300,000,000 Fixed Rate Step-up Notes due 17 May 2027”,
Slide 54: Outlook 2024
Outlook 2024 IGD forecasts growing like for like operating results in 2024 (EBITDA ca.+3%)… Net recurring …but net negative effect of result (FFO) 2024 is expected at disposal and higher cost of c. € 34 mn debt will heavily weigh 54
Slide 55: ESG Strategy At-a-glance
8 ESG Strategy At-a-glance
Slide 56: 2022-2024 Sustainability Plan
2022-2024 Sustainability Plan 41 targets at 2024: 22 ambitions toward 2030 • Material for IGD STRATEGY • Consistent with UN SDG’s IGD RELEVANT SDG’S 56
Slide 57: Progress on sustainability targets in line with 2022-2024 BP
Progress on sustainability targets in line with 2022-2024 BP* 68.8% ACHIEVEMENT LEVEL OF SUSTAINABILITY TARGETS AT FY2023 • The path defined in the 2022-2024 Business Plan is confirmed • Targets to reduce Scope 3 emissions in line with SBTI** are being defined * https://www.gruppoigd.it/en/sustainab
Slide 58: Sustainability: what we did in 2023
Sustainability: what we did in 2023 Opened Officine € 3.9 mn invested in Launched «Progetto Integration of CSR Storiche in Livorno Green secured loan improving energy People» risks within the ERM and the Portogrande obtained efficiency in Italy and started restyling with Romania 100% employees intev
Slide 59: Actions underway to reduce the portfolio environmental footprint
Sustainability: the actions underway to reduce the portfolio environmental footprint Energy purchased from renewable • 13 photovoltaic systems (ITA+ROM) in 12 sources for 94% of the total shopping centers, with overall power equal to electricity consumed in Italy 2.9 MWp (6.3% produced energyout of
Slide 60: Appendix
9 Appendix
Slide 61: Consolidated Income Statement
Consolidated Income Statement GROUP CONSOLIDATED (a) (c) Δ Cons 2022 Cons 2023 (c)/(a) Revenues from freehold rental activities 129.3 133.3 3.0% Revenues from leasehold rental activities 7.9 9.2 16.1% Total income from rental activities 137.3 142.4 3.7% Rents and payable leases 0.0 0.0 n.a. Direct c
Slide 62: Re-classified balance sheet
Re-classified balance sheet GEARING RATIO (€000) 62
Slide 63: Funds From Operations (FFO)
Funds From Operations (FFO) Δ% Funds from Operations CONS_2022 CONS_2023 Δ 2022 vs 2022 Core business EBITDA 103.4 108.2 4.7 4.6% IFRS16 Adjustments (Payable leases) -8.2 -8.8 -0.6 7.6% Financial management Adj* -27.2 -42.7 -15.5 56.9% * Current taxes for the period Adj -1.1 -1.2 -0.1 6.5% FFO 66.9
Slide 64: Other Metrics
Other Metrics EPRA Performance Measure 31/12/2023 31/12/2022 EPRA NRV (€'000) 1,016,875 1,133,860 EPRA NRV per share € 9.22 € 10.28 EPRA NTA 1,009,216 1,125,979 EPRA NTA per share € 9.15 € 10.20 EPRA NDV 993,138 1,110,002 EPRA NDV per share € 9.00 € 10.06 EPRA Net Initial Yield (NIY) 6.1% 6.0% EPRA
Slide 65: EPRA Net Asset Value
EPRA Net Asset Value Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1,000,533 1,000,533 1,000,533 1,121,800 1,121,800 1,121,800 Exclude: v) Deferred tax in relation to fair value gains of IP 15,137 15,137 18,175 18,175 vi) Fair value of
Slide 66: Exchange offer and 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 (AND TENDER OFFER*) notes to the ones o
Slide 67: The target has been achieved
… and the target has been achieved 14 NOVEMBER 2023 NOTEHOLDERS MEETING AND FINAL RESULTS • Results of exchange/tender offer on the bond due November 2024: aggregate take-up is equal to 85.55% • Issue of new senior bond expiring in 2027 • Approval by the noteholders' meeting of the amendment of cert
Slide 68: More financial highlights and debt breakdown
More financial highlights and debt breakdown 31/12/2022 31/12/2023 Debt breakdown Gearing ratio 0.87X 0.97X Average lenght of long-term debt 2.7 years 3.7 years Hedging on long-term debt + bond 76.9% 73.8% Share of M/L debt 92.6% 96.8% Uncommitted credit lines granted 118€ mn 101.6€ mn Uncommitted c
Slide 69: Contracts and key tenants Italy
Contracts and key tenants Italy Merchandise Turnover Malls TOP 10 Tenant Contracts category impact N 158 N 960 N 54 N 224 clothing 2.7% 11 clothing 2.6% 10 electronics 2.4% 9 Average residual maturity: 4,1 years clothing 2.0% 10 Total contracts: 1,396 of which 135 renewals with the same tenant and 5
Slide 70: Contracts and key tenants Romania
Contracts and key tenants Romania Merchandise Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarket 12.3% 11 N 13 N 280 N 171 N 139 clothing 6.6% 5 55% clothing 4.3% 11 clothing 3.7% 7 25% drug store 3.6% 5 19% jewellery 2.3% 4 1% 2023 2024 2025 >2025 healthcare 2.2% 4 office 1.9% 1
Slide 71: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Merchandising Mix* Tenant Mix* 71 *Internal processing on m2
Slide 72: Winmarkt Portfolio
Winmarkt Portfolio 2022-2024 Plan Main characteristics Highlights Extended network Approx. €5mn capex plan (safety, maintenance and environmental) Strategic locations Approx. €19.4mn of generated FFO Adaptable and flexible Approx. € 13.5mn assets of generated dividends Direct 100% self-financed mana
Slide 73: Italian Portfolio composition
Italian Portfolio composition* 27 shopping malls 19 hypermarkets Tenants of hypermarkets CENTRO D'ABRUZZO - Pescara CENTRO D'ABRUZZO - Pescara Coop Alleanza 3.0 CLODI' - Chioggia CLODI' - Chioggia Coop Alleanza 3.0 PORTO GRANDE - Porto d'Ascoli (AP) PORTO GRANDE - Porto d'Ascoli (AP) Coop Alleanza 3
Slide 74: Agenda
Agenda CORPORATE 18 April Annuale General Meeting (first call) 7 May Results as at 31/03/2024 1 August Results as at 30/06/2024 7 November Results as at 30/09/2024 74
Slide 75: 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