Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — 9M 2021 Earnings Presentation
40 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Nov 4, 2021
Slide 1: Results Presentation at 30/09/2021
Result Presentation at 30/09/2021 Conference call 4 November 2021
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or an These statements include financial projections and invitation to subscribe for or purchase any securities. estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect The securities r
Slide 3: Business is returning to pre-Covid levels
Business is returning to pre-Covid levels Financial Tenant Sales occupancy 4months 2021 ITALY 95.40%* Jun-Sept (+114bps vs FY2020) IN LINE WITH 2019 ROMANIA 94.93% (+133bps vs FY2020) Lower Covid Collection one-off net Rate 9M2021** impact ITALY 86% (- €1.2mn) ROMANIA 96% 9M 2020 8.1 € mn 9M2021 6.9
Slide 4: Defined the most relevant asset management transaction of the 2019-2021 BP
Defined the most relevant asset management transaction of the 2019-2021 BP Disposal of «stand alone» hyper/supermkt portfolio ✓ In line with the book value at 30/06/21 equal to €140 mn ✓ Cash in approx.€ 115 mn* ✓ Group LTV pro forma at 30/09/21 45.6% ✓ 2022 Financial maturities almost entirely cove
Slide 5: Financial Highlights
Financial Highlights 30/09/2021 Net Rental Income Group Net Profit 86.9€ mn 35.2€ mn -3.1% vs -21.3 €mn Net Loss 9M2020 Funds From Operations (FFO) Loan to value 48.4€ mn 48.3% -9.3% approx. 45.6% pro forma including But +7/8% FY2021 Guidance the porfolio disposal effects confirmed Include Covid-19
Slide 6: Operating Performances
1 Operating Performances
Slide 7: Footfalls and Tenant Sales are growing
Footfalls and Tenant Sales are growing Footfalls and tenant sales 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 HY
Slide 8: 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 9: 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 9
Slide 10: Leasing Management performances
Leasing Management performances 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 Renewals:205 F
Slide 11: 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 12: 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 13: …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 14: 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 15: 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 16: More ESG certifications and awards
More ESG certifications and awards Certification obtained for Bologna For the 7° year in a row, in 2021 In 2021 Refinitiv (a HQ and 7 IGD shopping centers IGD was awarded the «EPRA rating company) sBPR Gold Award» for the 2020 included IGD among The certification scheme concerns Sustainability Repor
Slide 17: Details of the portfolio disposal transaction
2 Details of the portfolio disposal transaction
Slide 18: The transaction
The transaction Sale of a portfolio Agreement for €140 million1 (in line with the book value at 30 June) between and 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 19: 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 20: Results and Financial Structure
3 Results and Financial Structure
Slide 21: Net rental Income
Net rental Income (€mn) Italy -4.2% -2.8€mn Romania -3.1% +16% * Like for like Italy: -2.2€mn Hihger provisions and Improvement of 2021 • Malls (-2.9%): condominium fees Covid impact compared to Recommercialization of the higher prior year. vacancy due to Covid will have economic effects mainly in n
Slide 22: Financial Management
Financial Management (€mn) Figures, net of accounting items related to IFRS16 and non recurring charges (financial management ADJ*), is decreasing (vs 30/9/2020) Total Total 27.0€mn 24.8€mn -8.7% IFRS16 and non recurring charges Financial Management Adj*: -2.1€mn vs 2020 (-8.7%) *Financial managemen
Slide 23: FFO: expected results
FFO: expected results FFO FY 4Q Expectations cons 9M 2021E 2021 +7/8% FFO2021 Guidance confirmed 2020 -9.3% 23
Slide 24: 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 25: Debt maturity
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- outlook stable 2.1% 5y* 2.65% 7y BB+ negative outlook *rate and duration refers to 200€mn loan 25
Slide 26: Outlook and dividend
5 Outlook and dividend
Slide 27: 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 28: 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 28
Slide 29: Agenda IR
Agenda IR (confirmed as of today) 15 November Exane BNP Paribas European Mid Cap Virtual CEO Conference 24 November EPRA Corporate Access day 2021 winter edition 29
Slide 30: Attachments
6 Attachments
Slide 31: Consolidated Income Statement
Consolidated Income Statement 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 0.0 0.0 n.a. Dir
Slide 32: Core business EBITDA
Core business EBITDA (€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 32
Slide 33: 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 34: Funds From Operations (FFO)
Funds From Operations (FFO) 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.a. Current taxes
Slide 35: Re-classified Balance Sheet
Re-classified Balance Sheet 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 0.9% NWC 33,243 30
Slide 36: More financial highlights
More financial highlights 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 available 151€ mn 15
Slide 37: Contracts and key tenants Italy
Contracts and key tenants Italy 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 with the same tenant
Slide 38: Contracts and key tenants Romania
Contracts and key tenants Romania 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 residual maturity: 4.6
Slide 39: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Merchandising Mix* Tenant Mix* *Internal processing on GLA sqm, 39
Slide 40: 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