Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — IGD SIIQ — Non-Deal Roadshow (May 2024)
67 slides from Immobiliare Grande Distribuzione Siiq's roadshow presentation, May 2024
Slide 1: Road show presentation May 2024
Road show presentation May 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. 11 3 Operating performances 1Q 2024 Pag. 25 4 Financial Results 1Q 2024 Pag. 32 5 Financial Structure and strategy Pag. 38 6 Dividend and Outlook Pag. 44 7 ESG Strategy at-a-glance Pag. 47 8 Appendix Pag. 52 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 MARKET VALIUE OF THE PORTFOLIO (including real estate investments) 8 hyper/ 14 shopping 25 shopping
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 1 30.3k 2 35.3k 16 1 31.6k 30.4k 26.8k 4 24.5k 3 Food Court 24.7k 32.7k 2 2 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: New BoD and new Chairman and CEO
18/04/24: New BoD and new Chairman and CEO IGD’s governance has been in line with the criteria of the Self Regulatory Code of the Italian Stock Exchange since it was listed. An internal Corporate Governance Code has been in use since 2008. CHIEF EXECUTIVE OFFICER and GENERAL MANAGER EXECUTIVE Robert
Slide 11: Portfolio
2 Portfolio
Slide 12: 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 Puntadiferro Centro Leonardo Conè Conegliano Sesto S.Giovanni Ravenna Faenza (RA) Bologna Forlì Imola (BO) (TV) (MI) North Centro Piave Centro Nova Mondovicino Nuova Darsena Millennium La Favor
Slide 13: IGD's portfolio market value FY2023
IGD’s portfolio market value FY2023 + 90bps from 2019 Italy + 60bps from 2019 Romania Significant increase in Yields since the Pre-Covid years 13
Slide 14: 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 15: Epra indicators FY2023
Epra indicators FY2023 € 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 15
Slide 16: 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 Of which c. 4€mn carried Porta a Mare Project out in 1Q 2024 ~12
Slide 17: 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 18: 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 18
Slide 19: 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 19
Slide 20: 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 20
Slide 21: 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 22: 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 22
Slide 23: 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 24: ESG Capex: Energy efficiency improvements
ESG Capex: Energy efficiency improvements 7 Photovoltaic systems to be added to the 8 already existing 24
Slide 25: Operating performances 1Q 2024
3 Operating performances 1Q 2024
Slide 26: Solid operating performances in Italian shopping centers
Solid operating performances in Italian shopping centers*… +2.6% FOOTFALLS +2.1% first 4 months +0.8%** MALLS Footfalls Tenant sales 1° QUARTER N.B: Easter 2024 in March, whereas in 2023 it was in April +1.4% IGD’S HYPERMARKETS Sales AND SUPERMARKETS 1° QUARTER *Figures 2024 vs 2023 26 **April 24 vs
Slide 27: …with almost all merchandise categories growing
…with almost all merchandise categories growing Tenant sales Italy 1Q24vs23 Clothing Household Culture, Personal and Electronics Restaurants Services Weight on total goods leisure, healthcare Italian malls rent (49.1%) (7.2%) gift items (8.9%) (10.2%) (7.8%) (4.6%) (11.1%) Some brands of IGD portfol
Slide 28: Leasing activity confirmed to be effective in Italy…
Leasing activity confirmed to be effective in Italy… LEASING ACTIVITIES • 52 contracts (representing approx. 3% of Group total rents) • Downside -3.7%*, explained mainly by the significant increases incorporated in rents in 2023 due to inflation indexing OCCUPANCY (hypermkts + malls) 95.3% Stable vs
Slide 29: …and in Romania
…and in Romania LEASING ACTIVITIES • 118 contracts (69 renewals and 49 turnovers) • Upside +6.5% (on Net Operating Income) OCCUPANCY 95.5% -70 bps vs FY23 Increase in vacancy due to the exit of one tenant (600m2) with re-commercializion in progress COLLECTION RATE** c. 90% MADO Restaurant – P. Neamt
Slide 30: 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 31: 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 32: Financial Results 1Q 2024
4 Financial Results 1Q 2024
Slide 33: Highlights
Highlights FY2023 Δ vs Like for 1Q2024 Δ vs Like for (€mn) 2022 like (€mn) 2023 like Rental Income 142.4 +3.2% 36.2 +4.3% Net Rental Income 119.6 +4.9% +7.1% 31.1 +7.1% +6.5% Core Business Ebitda 108.2 +4.6% 28.6 +6.6% Funds From Operations (FFO) 55.4 -17.5% 10.3 -34.8% Real Estate Portfolio 1,968.1
Slide 34: Net rental Income (€mn)
Net rental Income (€mn) Change vs 2023 +2.0 €mn +7.1% Like for like (+1.1 €mn +3.1%): • Malls (+0.7€mn; +2.6%) Margin on Change €mn 2024 • Hypermarkets (+0.4€mn; +6.5%) revenues % LFL NRI • Romania flat NRI Italy 29.2 86.3% 6.1% NRI Romania 2.0 82.1% 13.9% Non like for like (+0.4€mn) NRI Consolidate
Slide 35: Core business Ebitda and Ebitda margin improved…
Core business Ebitda and Ebitda margin improved… Change vs 2023 +1.8€mn +6.6% Core business 2023 2024 EBITDA 73.2% 75.1% MARGIN EBITDA 2024 2023 MARGIN 75.5% 77.3% freehold Some figures may not add up due to rounding 35
Slide 36: … but financial management increased
… but financial management increased IFRS16 and non recurring charges Financial Management Adj * : +7.2 €mn vs 2023 (+82.7%) Full impact of financing obtained in 2023 at significantly increased costs *Financial management adj: net of IFRS16 (0.2€mn) and IFRS9, non recurring charges Some figures may
Slide 37: FFO
FFO Of which: +1.8 €mn core business Ebitda -0.1 €mn payable leases (indexation effect) Change vs 2023 -5.5€mn -34.8% *Financial management adj: Pernet of IFRS16 il calcolo and IFRS9, dell’FFO Some figures may not add up due to rounding nonconsiderate sono state recurring charges (including le locaz
Slide 38: Financial Structure and strategy
5 Financial Structure and strategy
Slide 39: The liability management activities carried out in the year…
The liability management activities carried out in the year… In 2022 and 2023 we refinanced more than € 860mn of debt despite hard conditions in the markets ✓ Green unsecured loan with a pool of banks (215€mn) ✓ Green secured loan with a pool of banks (250€mn) ✓ Exchange and Tender Offer and Consent
Slide 40: The disposal envisaged in the Business Plan was finalized
The disposal envisaged in the Business Plan was finalized Financial partners SPV 50% 50% 60% 40% REAL ESTATE FUND Managed by «FOOD» Structure of the transaction • Portfolio (11 hypermarkets and 2 malls) valued at 258 €million (substantially in line with the book value at 31 December 2023) • Cash in
Slide 41: Net Debt and Loan to Value
Net Debt and Loan to Value PRO FORMA Post disposal Net Debt FY2023 Net Debt 1Q2024 € 968.4 mn € 967.3 mn €813.7 mn Long term financial instruments Long term financial 974.47 instruments 977.31 Cash -6.07 FFO Change in NWC Cash -10.01 Investments and other 48.1% Loan to Value 48.0% 44.4% 3.86% Cost o
Slide 42: Debt maturity post disposal
Debt maturity post disposal Net proceeds from disposal used for: Partial repayment of new Partial repayment of green Partial repayment of green Bond for €90mn secured loan for €62.5 mn unsecured loan for €0.71 mn Debito bancario secured Debito bancario unsecured Bond Pro-forma net of the Bond Secure
Slide 43: Disposal strategy
Disposal strategy Portfolio of 11 super/hypermarkets + 2 shopping malls valued at €258 million sold on April 23rd, 2024 (see slide 40 for further details) Potential disposals over BP timespan Potential targets Strategic rationale 180/200 € mn Romania or more (disposal of the entire portfolio or smal
Slide 44: Dividend and Outlook
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Slide 45: 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 46: 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 46
Slide 47: ESG Strategy at-a-glance
7 ESG Strategy at-a-glance
Slide 48: 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 48
Slide 49: 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 50: 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 51: 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 52: Appendix
8 Appendix
Slide 53: Consolidated financial statement
Consolidated financial statement (c) (d) Δ (a) (b) Δ GROUP CONSOLIDATED FY 2022 FY 2023 (d)/(c) 1Q 2023 1Q 2024 (b)/(a) Revenues from freehold rental activities 129.3 133.3 3.0% 32.5 33.9 4.6% Revenues from leasehold rental activities 7.9 9.2 16.1% 2.2 2.4 5.6% Total income from rental activities 13
Slide 54: Reclassified Balance sheet
Reclassified Balance sheet Sources - Uses of funds(€/000) 3/31/2024 31/12/2023 Δ Δ% Fixed assets 1,957,357 1,959,053 -1,696 -0.1% Assets under construction 2,473 2,364 109 4.6% Non current assets 42,478 42,861 -383 -0.9% Other non current liabilities -27,339 -26,835 -504 1.9% NWC 8,918 3,810 5,108 1
Slide 55: Funds From Operations (FFO)
Funds From Operations (FFO) Δ% Δ% Funds from Operations FY 2022 FY 2023 1Q 2023 1Q 2024 vs 2022 vs 2023 Corte business EBITDA 103.7 108.2 4.2% 26.8 28.6 6.6% IFRS16 Adjustments (Payable leases) -8.2 -8.8 7.6% -2.1 -2.2 5.0% Financial management Adj* -27.2 * -42.7 56.9% -8.6 -15.8 82.6% Current taxed
Slide 56: Other FY2023 Metrics
Other Metrics FY2023 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
Slide 57: EPRA Net Asset Value FY2023
EPRA Net Asset Value FY2023 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 v
Slide 58: IGD launched an exchange offer and a consent solicitation
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 59: … and 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 60: More financial highlights and debt breakdown
More financial highlights and debt breakdown 31/12/2023 31/03/2024 Debt breakdown* Gearing ratio 0.97X 0.96X MARKET 38,6% Average lenght of long-term debt 3.7 years 3,4 years Hedging long-term debt + bond 73.8% 73.9% BANKING SYSTEM 61,4% Share of M/L debt 96.8% 97.0% Uncommitted credit lines granted
Slide 61: Contracts and key tenants Italy
Contracts and key tenants Italy Merchandise Weight on Malls TOP 10 Tenant Contracts category malls rent N 197 N 155 N 195 N 784 clothing 2.6% 10 clothing 2.6% 11 electronics 2.3% 9 WALB*: 1.78 years (net of asset disposal) clothing 2.0% 10 Total contracts: 1,331 In 1Q 29 renewals and 23 turnovers Do
Slide 62: Contracts and key tenants Romania
Contracts and key tenants Romania Weight on Merchandise TOP 10 Tenant Romania Contracts category rent Winmarkt supermarket 12.3% 11 N 220 N 218 N 65 N 87 clothing 4.7% 11 clothing 3.8% 7 clothing 3.4% 5 drugstore 3.1% 5 entertainement 2.4% 3 pharmacy 2.4% 4 WALB*: >2.2 years office 2.2% 1 Total cont
Slide 63: Merchandising & Tenants Mix 1Q2024
Merchandising & Tenants Mix 1Q2024 Italy Romania Merchandising Mix* ** ** Tenant Mix* * Internal processing on m2 ** Clothing: includes underwear, shoes and sportswear 63
Slide 64: 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 65: Italian Portfolio composition
Italian Portfolio composition* 25 shopping malls 8 hypermarkets Tenants of hypermarkets CENTRO D'ABRUZZO - Pescara CENTRO D'ABRUZZO - Pescara Coop Alleanza 3.0 ESP - Ravenna ESP - Ravenna Coop Alleanza 3.0 LE MAIOLICHE - Faenza LE MAIOLICHE - Faenza Coop Alleanza 3.0 Full ownership LUNGO SAVIO - Ces
Slide 66: Agenda
Agenda CORPORATE IR (confirmed as of today) 15 May CITI Real Estate credit investor day - 1 August Results as at 30/06/2024 London 7 November Risultati al 30/09/2024 9-13 September Italian Sustainability Week Borsa Italiana - virtual 17-19 September Epra Conference Berlin 8-9 October 2024 Italian Ex
Slide 67: 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