Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (November 2021)
64 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, November 2021
Slide 1: Road Show Presentation November 2021
Road Show Presentation November 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation t o subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with The securities referred
Slide 3: Index
Index 1 Introduction to IGD Pag. 4 5 Financial results Pag. 37 2 Operating performances Pag. 11 6 Details of the portfolio transaction Pag. 44 3 Portfolio and projects Pag. 20 7 Outlook and dividend Pag. 47 4 Sustainability Pag. 31 8 Appendix Pag. 50 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 25 hyper/ 14 shopping 27 shopping Development malls in Italy supermarkets c. €2.3bn malls in & other
Slide 6: IGD Business Model
IGD Business Model A distinctive competitive positioning in the fragmented Italian retail real estate market 1 Well-diversified presence across Italy 39,2k PIL pro capite 2 Strategic positioning 3 Strong food anchor 4 Strong track record of direct management €34,6k–€42,6k 1 30,9k 35,2k €30,0k– €34,5
Slide 7: Group Structure (simplified)
Group Structure (simplified) 80.4% Revenues Parent Company 95% Financial debt 86% Portfolio value 13,.5% Revenues 100% 5% Financial debt Italian Facility Management 6% Portfolio value 5.5% Revenues 100% No Financial debt Romania 6% Portfolio value 100% 0.6% Revenues Development project in No Financi
Slide 8: IGD's shareholding structure
IGD’s shareholding structure No. of shares Share capital Net equity 110,341,903 € 650 Mn € 1.1 Bn Average 2021 daily trading Listed on STAR Segment of Avearage 2021 mkt (01/01 – 05/11): Italian Stock Exchange capitalization (01/01 – 05/11) c. €432 mn c. 315,518 shares Majority of institutional inves
Slide 9: 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 2008. CEO EXECUTIVE Claudio Albertini CHAIRMAN Timothy Guy Rossella Sao
Slide 10: Our Top Management
Our Top Management Rossella Saoncella (1953) Chairman Claudio Albertini (1958) Chief Executive Officer • Appointed as IGD’s Chairman on 20 April 2021 • Appointed in May 2009 • She was and executive of Conad Grouo until 1993 • IGD Board member since 2006 • She was General Manager of the Graranolo Gro
Slide 11: Operating performances
Titolo titolo 2 Operating performances note 37
Slide 12: Footfalls and Tenant Sales monthly trend 2021 vs 2019
Footfalls and Tenant Sales monthly trend 2021vs2019 3,7% From 17/5 to 30/9: 0,3% -2,4% 0,2% ✓ MALL TENANT -6,4% -15,40% SALES: -24,2% -15,2% SUBSTANTIALLY IN -20,4% -17,80% -17,90% LINE WITH 2019 -34,3% -24,3% -41,4% -37,1% ✓ FOOTFALLS: -36,0% -40,9% -15.9% -46,1% ✓ SALES HYPER/SUPERMKTS 9M21 IN LIN
Slide 13: Considering that in 2019 performances were at the peak of recent years
Considering that in 2019 performances were at the peak of recent years Mall tenant sales Italy YoY cumulative change +1.70% +2.60% The four-month period Jun-Spet 2021 is in line +4.60% with the years that recorded the best performances since 2014 2014 2015 2016 2017 2018 2019 Jun-Sept 2021 *change i
Slide 14: Focus on Tenant Sales Jun-Sept 2021 vs Jun-Sept 2019
Focus on Tenant Sales Jun-Sept 2021 vs Jun-Sept 2019 * CLOTHING The recovery of the HOUSEHOLD GOODS sectors that represent over 81% of our contract portfolio ELECTRONICS continues CULTURE, LEISURE AND GIFT ITEMS PERSONAL CARE AND HEALTHCARE RESTAURANTS SERVICES * Weights in % on total rents 14
Slide 15: Leasing Management performances 9M 2021
Leasing Management performances 9M 2021 67.8% MALLS Rental KEY MESSAGES income ITALY • Occupancy is improving in Italy (+114bps vs FY20) Renewals: 124 FINANCIAL and Romania (+133 bps vs Turnover: 67 OCCUPANCY* FY20) Downside: -1.2% 95.40% • Limited downside in Italy; upside in Romania ROMANIA Renewa
Slide 16: Collection Rate FY2020 and 9M2021
Collection Rate FY2020 and 9M2021* 2020 2021 Collected c. 98%** Collected c.86%*** Italian Portfolio Collected c.98% Collected c.96% Romanian Portfolio *% on invoiced rents net of reductions and loss on receivables; figures updated at 28/10/2021 ** 95.9% collection rate gross of reduction and loss o
Slide 17: Intense leasing activities in Italy
Intense leasing activities in Italy… Leasing activity to re-commercialize the vacancy mainly due to Covid effects continues Total no. of openings since the beginning of the year: 43 Some of the new openings of the last quarter Undercolors of Benetton – Porto Stroili – Katanè Pepco – Tiburtino Toysup
Slide 18: …and in Romania too
…and in Romania too Leasing activity continues Total no. of openings since the beginning of the year: 44 Some of the new openings of the last quarter Yokko – Piatra Neamt Proline Estet – Piatra Neamt Goretti Shoes - Bistrita Kik extension - Slatina Leonidas – Ploiesti Gameland – Ploiesti Winiland –
Slide 19: Physical events are back
Physical events are back IL CENTRO AL CENTRO: new event format that focuses on the visitor’s experience. The format debuts at Centro d'Abruzzo from 15 to 17 October: All the tenants of the shopping center were involved; they offered various activities to visitors such as concerts, artistic performan
Slide 20: Portfolio and projects
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Slide 21: IGD: a portfolio of high quality assets
IGD: a portfolio of high quality assets Centro Sarca North Sesto S.Giovanni Esp Le Maioliche Centro Borgo Centro Lame Puntadiferro (MI) Ravenna Faenza (RA) Bologna Bologna Forlì IGD - Main Centro Leonardo Conè Centro Piave San Donà di Clodì Centro Nova Villanova di Mondovicino Sc&Rp Imola (BO) Coneg
Slide 22: The main characteristics of our portfolio as at June 2021
The main characteristics of our portfolio as at 30 June 2021 2,267.9 € mn 42% of this portfolio consists of 8 “Key” assets of which 6 are Shopping centres (mall + hypermarket) Other 4.3% (96.29 €mn) Romania 6.1% (137.52 €mn) Romania On average every shopping centre is 10 years old 6.1% North western
Slide 23: IGD's portfolio market value as at June 2021 (1/2)
IGD’s portfolio market value as at 30 June 2021 (1/2) Gross Initial EPRA Net Initial EPRA Net Initial Finan FY 2020 1H 2021 Δ% Yield Yield Yield topped up occupa Malls Italy 1,473.30 1,472.29 (-0.07%) 6.60% 93.67 5.3% 5.3% Hypermarkets Italy 558.97 561.78 + 0.50% 6.01% 100.0 Romania 138.64 137.52 (-
Slide 24: IGD's portfolio market value as at June 2021 (2/2)
IGD’s portfolio market value as at 30 June 2021 (2/2) ITALY ROMANIA € 2,267.9mn € 2,265.7mn Other 4.2% 4.6 -2.4 4.4 -3.3 0.5 -1.6 Other 4.3% (94.78 €mn) (96.29 €mn) Romania 6.1% 4.4 Romania 6.1% (138.64 €mn) 4.6 -2.4 -3.3 0.5 -1.6 (137.52 €mn) 2,265.7 Malls 65.0% 2,267.9 Malls 64,9% (1,472.29 €mn) (
Slide 25: EPRA Metrics as at June 2021
EPRA Metrics as at 30 June 2021 Euro per share 1H 2021 FY 2020 Δ% NRV 10.56 10.38 1.7% NTA 10.48 10.31 1.7% NDV 10.19 10.42 -2.1% 0.28 -0.11 0.01 10.38 10.56 EPRA NRV 31/12/2020 FFO Change in fair value assets Change in financial EPRA NRV 30/06/2021 instrument fair value and other Some figures may n
Slide 26: Flexible and sustainable asset management
Flexible and sustainable asset management 2020 2021/2022 ✓ In order to strenghten the Group’s financial ✓ Priorities: non defferable activities, solidity some projects and capex were extraordinary maintenance, update of postponed as early March 2020. systems as well as fit out adaptations in order t
Slide 27: Pipeline
Pipeline CENTRO CASILINO PORTO GRANDE LA FAVORITA Project Mall Restyling and Mall Restyling and Hypermarket Hypermarket Mall Restyling Remodelling Remodelling Restyling of the external Reduction in the façade and internal areas hypermarket area and Restyling of the together with seismic creation of
Slide 28: Porta a Mare: an ambitious multifunctional project
Porta a Mare: an ambitious multifunctional project Lips Molo Mediceo Arsenale Livorno, touristic Port (Hotel, residential, entertainment and Officine Storiche services for the port) (retail, food court, residential) Focus next slide Piazza Mazzini Palazzo Orlando (retail, residential) Retail owned b
Slide 29: Porta a Mare: Officine Storiche The heart of the project
Porta a Mare: Officine Storiche The heart of the project End of work:1H2022 Total expected investment retail area : € 53 mn (of which remaining € 9mn*) Total surfaces: 20k sqm, of which 15k sqm dedicated to retail Stores: 30 + 10 restaurants + 1 fitness center *Data at 30/09/2021 29
Slide 30: Residential areas
Residential areas Piazza Mazzini Officine storiche 73 flats already sold 42 seafront flats (flats with garden, flats with terrace, (18 preliminary purchase agreements signed) duplex terraced houses) 30
Slide 31: Sustainability
4 Sustainability
Slide 32: Sustainability: commitment continues despite the pandemic
Sustainability: committment continues despite the pandemic Most short-term goals achieved, work in progress on the medium/long-term targets. GREEN RESPONSIBLE ETHICAL ATTRACTIVE TOGETHER • €1.2mn invested in • Stable level of • UNIISO37001 «Anti • Digital Plan defined and • Dialogue with the energy
Slide 33: Some of the results achieved
Some of the results achieved Level of satisfaction of IGD shopping centers’ visitors 3.9 (scale 1min. - 5max.) Co2 Emissions intensity 2020-2012 (KgCo2/Mq) -36.1% The structured engagement of all stakeholders allows IGD to understand their expectations and evaluate if integrate them in its strategy
Slide 34: A concrete example of circular economy
A concrete example of circular economy IGD partner of «AND Circular» Thanks to the cooperation with the project has been developed New smart collectors for used Clothes are verified and clothes have been installed in sanitized by the «Cooperativa La Borgo, Lame and Nova shopping Fraternità». centers
Slide 35: IGD sustainability in the national and international context (1/2)
IGD sustainability in the national and international context (1/2) PARTICIPATION IN NATIONAL AND INTERNATIONAL ORGANISATIONS AND EVENTS ON SUSTAINBILITY Member of the EPRA Member of the Chairman of the Sustanability Sustainability Group ESG Commission committee since 2018. Universities lectures and
Slide 36: IGD sustainability in the national and international context (2/2)
IGD sustainability in the national and international context (2/2) INTERNATIONAL AWARDS AND BENCHMARK Stock Indices Sustainability rating (ESG) Awards (2021) 6 independent and unsolicited ratings in 2020 • Sustainability Leader 2021 (Sole 24 (4 in 2019) Ore)* • Gaia Rating • 3° at the Confindustria
Slide 37: Financial Results
5 Financial Results
Slide 38: FY 2020 and 9M2021 main results
FY 2020 and 9M2021 main results FY 2020 9M 2021 vs 2019 vs 9M 2020 REVENUES Rental Income €145.6 mn -6.2% €109.1 mn 0.1% Net Rental Income €109.5mn -19.8% €86.9 mn -3.1% EBITDA EBITDA (Core Business ) €99.4 mn -20.6% €79.6 mn -3.9% EBITDA Margin (Core Business) 65.4% -121pts 69.8% -30pts EBITDA Marg
Slide 39: Net Rental Income
Net Rental Income (€mn) Italy -€8.6mn -19.9% -€27.1mn -6.3% Romania -19.8% -19.3% -5.3 -3.3 -18.5* 136.6 FY2020 128.0 109.5 Net rental income 2019 Change in rental income Change in rental costs Net rental income 2020 adj COVID net direct impacts Net rental income 2020 Italy -4.2% -2.8€mn Romania -3.
Slide 40: Financial management
Financial management (€mn) 5.4 3.8 5.4 3.8 2.8 3.8 2.8 2.8 Total Total € 36.8mn € 36.2mn -4.7% Negative carry 31.0 5.4 29.6 3.8 €400mn bond issue + SACE 31.0 29.6 2.8 29.6 IFRS16 and non-recurring charges FY2020 31.0 29.6 FY 2019 FY 2020 Finacial Mgt. Adj: FY 2019 FY 2020 -€1.4mn vs 2019 (-4.7%) FY
Slide 41: FFO: expected results
FFO: expected results FFO FY 4Q Expectations cons 9M 2021E 2021 +7/8% FFO2021 Guidance confirmed 2020 -9.3% Per il calcolo dell’FFO sono state considerate le locazioni passive e rettificato il dato della gestione finanziaria 41
Slide 42: Financial structure
Financial structure 30/06/2020 30/09/2021 • NET DEBT is improving (approx. -60 €mn vs 30/09/2020 and approx. -20€mn vs 30/06/2021). LTV 49.1% 48.3% • LTV decreased by 80 pp vs 30/06/2021. ICR 3.2X* 3.4X* • LTV pro forma including disposal is further decreasing (45.6% - 270 pp). Average cost of 2.22%
Slide 43: Debt maturity Ratings
Debt maturity Thanks to the disposal, IGD has financial resources to substantially cover 2022 financial maturities Ratings €100mn: 2.25% 7y €400mn: 2.125% 5y BBB- stable outlook 2.1% 5y* 2.65% 7y BB+ negative outlook *rate and duration refers to 200€mn loan 43
Slide 44: Details of the portfolio disposal transaction
6 Details of the portfolio disposal transaction
Slide 45: The transaction
The transaction Sale of a portfolio Agreement for €140 million1 and (in line with the book value at 30 June) between 1 2 3 LIVORNO LIVORNO (LI) CECINA (LI) SCHIO (VI) ✓ 5 hypermarkets and 1 supermarkets «stand (LI) alone», not connected to IGD’s freehold malls ✓ NOI c. 7.7€m (per year) ✓ Properties
Slide 46: Main impacts for IGD
Main impacts for IGD Loan-to-Value reduction Proceeds Net cash in for approx. 115 € mln* 48.3% A further improvement 45.6% is expected by 2022 Financial maturities the end of substantially covered, considering LTV LTV 30/09/21 2021 30/09/21 pro forma post also cash on hand at 30/09 disposal Revenues
Slide 47: Outlook and dividend
7 Outlook and dividend
Slide 48: Outlook and dividend
Outlook and dividend +7/8% FFO FY2021 Outlook confirmed Obviously assuming there are no new restrisctions as a result of a worsening public health situation. Therefore, taking into account the successful conclusion of the disposal transaction, conditions to pay a dividend to our shareholders in 2022
Slide 49: Final remarks
Final remarks IGD Portfolio is well targeted to return to pre-Covid levels; +7/8% FFO FY2021 Guidance confirmed Financial structure strengthened thanks to the disposal; LTV decreased to 45.6% (pro forma figure at 30/09) Conditions to pay a dividend to our shareholders in 2022 have been created 49
Slide 50: Appendix
Titolo titolo 8 Appendix note 65
Slide 51: Consolidated income statement as at 30/09/2021
Consolidated income statement as at 30/09/2021 GROUP CONSOLIDATED (a) (c) Δ 9M_CONS_2020 9M_CONS_2021 (c)/(a) Revenues from freehold rental activities 100.2 99.9 -0.3% Revenues from leasehold rental activities 8.7 9.2 5.4% Total income from rental activities 109.0 109.1 0.1% Rents and payable leases
Slide 52: Core business EBITDA as at 30/09/2021 (€mn)
Core business EBITDA as at 30/09/2021 (€mn) -3.2€mn -3.9% * Core business EBITDA MARGIN 69.8% EBITDA MARGIN freehold 70.4% Some figures may not add up due to rounding 52
Slide 53: FFO 9M 2021
FFO 9M 2021 Of which: +2.1€mn financial management adj -2.7€mn negative carry -5.0€mn -9.3% *Change in Ebitda Adj: equal to core business, change in payable leases and other «una tantum» costs paid in 2021. Per **Gestione finanziaria adj: al il calcolo netto dell’FFOIFRS9, dell’IFRS16, sono state on
Slide 54: Funds From Operations (FFO) as at 30/09/2021
Funds From Operations (FFO) as at 30/09/2021 Δ% Funds from Operations CONS_2020 CONS_2021 Δ 2020 vs 2020 Core business EBITDA 82.8 79.6 -3.2 -3.9% IFRS16 Adjustments (Payable leases) -6.9 -7.7 -0.8 12.3% Financial Management Adj. -21.9 -22.5 * -0.6 2.9% Extraordinary Management Adj. 0.0 0.0 ** 0.0 n
Slide 55: Reclassified balance sheet as at 30/09/2021
Reclassified balance sheet as at 30/09/2021 Sources - Uses of funds (€/000) 30/09/2021 31/12/2020 Δ Δ% Fixed assets 2,227,167 2,234,484 -7,318 -0.3% Assets under construction 44,331 42,674 1,657 3.9% Other non-current assets 17,440 17,374 67 0.4% Other non-current liabilities -30,657 -30,371 -287 0.
Slide 56: EPRA Net Asset Value as at June 2021
EPRA Net Asset Value as at 30 June 2021 30/06/2021 31/12/2020 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1.136.236 1.136.236 1.136.236 1.114.442 1.114.442 1.114.442 Exclude: v) Deferred tax in relation to fair value gains of IP 17.7
Slide 57: Other EPRA metrics as at June 2021
Other Epra metrics as at 30 June 2021 EPRA Performance Measure 30/06/2021 31/12/2020 EPRA NRV (€'000) 1.165.199 1.145.827 EPRA NRV per share € 10,56 € 10,38 EPRA NTA 1.156.816 1.137.258 EPRA NTA per share € 10,48 € 10,31 EPRA NDV 1.124.867 1.149.534 EPRA NDV per share € 10,19 € 10,42 EPRA Net Initia
Slide 58: More financial highlights as at 30/09/2021
More financial highlights as at 30/09/2021 31/12/2020 30/09/2021 Gearing ratio 1.03X 0.96X Average maturity of long term debt 3.2 years 2.7 years Hedging on long term debt + bond 93.0% 93.0% Share of M/L debt 98.3% 86.2% Uncommitted credit lines granted 151€ mn* 151€ mn* Uncommitted credit lines ava
Slide 59: Contracts and key tenants Italy as at 30/09/2021
Contracts and key tenants Italy as at 30/09/2021 Product Turnover Malls TOP 10 Tenant Contracts Category Impact N 95 N 185 N 203 N 273 N 639 clothing 3.1% 14 clothing 2.9% 10 electronics 2.2% 8 Average residual maturity : 4.0 years clothing 2.0% 9 Total no. contracts: 1,395 of which 124 renewals wit
Slide 60: Contracts and key tenants Romania as at 30/09/2021
Contracts and key tenants Romania as at 30/09/2021 Product Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarkets 10.6% 11 N 85 N 286 N 68 N 37 N 72 clothing 6.7% 6 clothing 5.3% 10 clothing 4.4% 11 drugstore 2.7% 5 personal care 2.2% 4 jewelllery 2.0% 6 offices 1.7% 1 Average residu
Slide 61: Merchandising & Tenants Mix as at 30/09/2021
Merchandising & Tenants Mix as at 30/09/2021 Italy Romania Merchandising Mix* Tenant Mix* *Internal processing on GLA sqm, 61
Slide 62: Italian Portfolio: hypermarkets and shopping malls
Italian Portfolio: hypermarkets and shopping malls 27 shopping malls 25 hypermarkets Tenants of hypermarkets Centro D'Abruzzo - Pescara Centro D'Abruzzo - Pescara Coop Alleanza 3.0 Clodì - Chioggia Clodì - Chioggia Coop Alleanza 3.0 Porto Grande - Porto d'Ascoli (AP) Porto Grande - Porto d'Ascoli (A
Slide 63: The main shareholders: «Coop world»
The main shareholders: «Coop world» 7 Legal entities throughout Italy «Coop world» key data(1): 17 Regions covered by Coop Turnover ~ EUR 14.7 bil € (12.5 % of italian large scale retail) 2 No. of stores: ~1,150 Employees ~48,000 Members ~ 6.4 Mn people Coop Alleanza 3.0 (3) Unicoop Tirreno (4) Reve
Slide 64: Investor relations contacts
Raffaele Nardi Director of Planning, Control and investor relations raffaele.nardi@gruppoigd.it Claudia Contarini, Investor Relator 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 f