Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — H1 2023 Earnings Presentation
52 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Aug 2, 2023
Slide 1: Result presentation at 30 June 2023
Result presentation at 30 June 2023 Conference call 2 August 2023
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: Growth of IGD's Portfolio operating performances confirmed
Growth of IGD’s Portfolio operating performances confirmed OPERATING OCCUPANCY PERFORMANCES* Tenant sales Italy +8.5% 95.2% Footfalls Romania +6.6% 96.8% *Italy malls vs 2022 3
Slide 4: Highlights
Highlights Δ vs Like for 1H2023 2022 like Net Rental Income 59.1€mn +3.4% +7.8% Core business Ebitda 53.8€mn +3.8% Funds From Operation (FFO) 30.9€mn -9.0% Real Estate Portfolio 2,005.1€mn -3.6% Market Value (excluding leasehold) Epra NRV 9.54€ per share -7.1% 4
Slide 5: Operating Performances
1 Operating Performances
Slide 6: Good operating performances continue in Italian shopping centers
Good operating performances continue in Italian shopping centers… IGD’S MALLS PROGRESSIVO PROGRESSIVO +12.7% +8.5% +9.4% +6.6% +5.0% +3.9% Vendite operatori Ingressi Vendite operatori Ingressi 1° QUARTER 2° QUARTER FIRST 6 MONTHS Footfalls Tenant Sales IGD’S HYPER/SUPER MARKETS +5.7% +3.9% +4.6% 1°
Slide 7: …and all the merchandise categories increase
…and all the merchadise categories increase Tenant sales Italy 1H23vs22 Clothing Household Culture, leisure, Personal and Electronics Restaurants Services goods gift items healthcare (48.3%) (7.1%) (11.4%) (8.6%) (10.6%) (7.6%) (4.5%) (Weight on tot. rents) Some brands of IGD’s portfolio Total chang
Slide 8: Physical retail remains central to consumers
Physical retail remains central to consumers ➢ E-commerce penetration rate on product is stable at 11% for the third year in a row while penetration rate on services is increasing. E-commerce penetration rate on services E-commerce penetration rate on products ➢ The highest peaks of online sales, re
Slide 9: Leasing activities in Italy…
Leasing activities in Italy… LEASING ACTIVITIES • 87 contracts (representing ca. 4% of Group total rent) of which 60 renewals and 27 turnover • Downside -4.4%* (more than offset by 1H indexation effect:+7.2%) • Estimated figure for FY 2023: -2% (based on on-going negotiations) Stable vs 1Q23 OCCUPAN
Slide 10: …and in Romania
…and in Romania 212 renewals UPSIDE +2.3% 99 turnovers OCCUPANCY 96.8% Stable vs 1Q23 COLLECTION RATE* c. 95% Some pictures from the latest opening * Figure as at 1 August 2023 10
Slide 11: An example of space remodeling: La Torre – Palermo
An example of space remodeling: La Torre – Palermo • FOOTFALLS Hypermarket 3 new medium surfaces reduction and change created of tenant (+4,700m2 GLA) (7,200m2 GLA) +16% (2023 vs 2022) • OCCUPANCY 100% • Soaring of hypermarket profitability due to surfaces Creation of new stands recalibration: +70%*
Slide 12: CSR targets in line with the 2022-2024 BP
CSR targets in line with the 2022-2024 BP 48.2% ACHIEVEMENT LEVEL OF SUSTAINABILITY TARGETS AS AT 1H 2023 • The path defined in the 2022-2024 Business Plan confirmed • Targets to reduce Scope 3 emissions in line with SBTI* are being defined *Science Based Target Initiative 12
Slide 13: Rating ESG and other awards
Rating ESG and other awards C+ rating | Prime status | A rating 2023 1° year of participation 1° decile Real Estate sector A GRESB Public Disclosure EUROPE’S CLIMATE LEADER DELLA LEADERS 2023 SOSTENIBILITA’ 2023 by Financial Times and Statista by Il Sole 24 Ore and Statista Among 33 Italian companie
Slide 14: Focus on biodiversity: Centro d'Abruzzo example
Focus on biodiversity: Centro d’Abruzzo example Path towards conserving and enhancing biodiversity near the shopping centers In Centro D’Abruzzo: «The bees’ garden», a green oasis that hosts 2 «Beehotel». 14
Slide 15: Portfolio
2 Portfolio
Slide 16: IGD's portfolio
IGD’s portfolio Gross Initial EPRA Net Initial EPRA Net Initial F FY 2022 1H 2023 Δ% Yield Yield Yield topped up oc Malls Italy 1,466.5 1,406.3 (-4.11%) 7.50% 6.0% 6.3% Hypermarkets Italy 401.2 398.6 (-0.63%) 6.71% Romania 128.3 126.9 (-1.14%) 8.18% 6.5% 7.0% Porta a Mare + development + other 84.9
Slide 17: Market value evolution
Market value evolution ITALY ROMANIA € 2,080.9mn € 2,005.1mn The change in FV is due to the increase in rates applied: • Actual Yield Italy* 8.18% (+63 bps); • Net Exit Yield Italy* 6.74% (+48 bps); • Actual Yield Romania 9.65% (+134 bps); • Net Exit Yield Romania +7.15% (+30 bps) * Malls + hypermar
Slide 18: Shopping centers confirmed to be a profitable assets class
Shopping centers confirmed to be a profitable assets class CBRE prime yields Italia Average IGD’s malls net exit yield 6.95% 6.50% 5.15% 5.00% 4.10% 3.90% 3.75% BTP10Y yield Shopping centers are the asset class with the largest spread with respect to the Italian BTP10y yields and better positioned i
Slide 19: Sustainability: BREEAM in Use certified assets
Sustainability: BREEAM in Use certified assets 19
Slide 20: Investment pipeline c. 82€mn
Investment pipeline • Pipeline almost completed by the end of 2023 • Investment reduction from 2024, no development projects 19€mn c.82€mn ~13 21€mn 3€mn ~ 24 18€mn 8€mn 35€mn ~12 Porta a Mare project ~ 33 Asset renewals Non committed investments ESG investments Committed investment Asset maintenanc
Slide 21: Total mixed-use redevelopment of Livorno waterfront
Total mixed-use redevelopment of Livorno waterfront 1st Area PIAZZA MAZZINI RETAIL (32 shops) AND RESIDENTIAL (73 flats sold) 2nd Area OFFICINE COMPLETED STORICHE RETAIL AND RESIDENTIAL WORK IN PROGRESS «EDIFICIO DELL’OROLOGIO» REFURBISHED Public spaces for events and exhibitions 21
Slide 22: Officine Storiche retail
Officine Storiche retail 14 September 2023 ICONIC SHOPPING AND Opening ENTERTAINMENT DESTINATION >16,000 m2 GLA (16 shops, 11 food&beverage, 1 entertainment area, 1 fitness center) > 90% pre-letting 22
Slide 23: Officine Storiche residential
Officine Storiche residential 42 flats 29 units sold 3 binding proposals CASH IN: c.7€mn in 2022 c.7€mn expected in 2023 23
Slide 24: Update restyling in progress: Portogrande (Ap)
Update restyling in progress: Portogrande (Ap) COMPLETE RESTYLING: Mall: • Floor, walls and windows • Relamping with LED lighting system Exterior: • New facades, entrances and lighting system • Photovoltaic system on the parking lots • New green areas Work start: January 2023 End of work: 4Q 2023 24
Slide 25: Update restyling in progress: Centro Leonardo (Imola – BO)
Update restyling in progress: Centro Leonardo (Imola – BO) COMPLETE RESTYLING : Mall: • New layout of common areas • Relamping with LED lighting system Start work: May 2023 End of work: 2Q 2024 Esterno: • New entrances • Green areas • LED lightins system Start work : gennaio 2024 End of work : 3Q 20
Slide 26: May 2023 Emilia-Romagna floods: no major impacts for IGD
May 2023 Emilia-Romangna floods: no major impacts for IGD What’s happened between 15 and 17 May 2023: • 21 flooded rivers Esp Leonardo • Widespread flooding in 37 towns Maioliche Puntadiferro Affected areas Lungo Malatesta • Severe landslides in 48 towns Savio IGD Shopping Centers 5 IGD Shopping Cen
Slide 27: Economic and Financial Results
3 Economic and Financial Results
Slide 28: Net rental Income
Net rental Income Like for like Change vs 2022 net rental +1.1 €mn income +7.8% +3.4% €mn Like for like: +7.8% (+4.2 €mn) Malls Italy (+5.4%): Positive effects of commercialization and indexation (for approx. 3.5 €mn +7.2%), partially offset by higher temporary (-1.0 €mn); temporary and variable rev
Slide 29: Core business Ebitda
Core business Ebitda (€mn) Change vs 2022 +2.0€mn +3.8% Core business 2022 2023 EBITDA 71.3% 72.8% MARGIN EBITDA 2022 2023 MARGIN 73.3% 75.1% freehold Some figures may not add up due to rounding 29
Slide 30: Financial Management
Financial Management IFRS16 and non recurring charges Financial Management adj.* : + 4.7mn vs 2022 (+35.5%) *Financial management adj: net of IFRS16 (0.7€mn) and IFRS9 and non recurring charges Some figures may not add up due to rounding 30
Slide 31: Funds From Operations (FFO)
Funds From Operations (FFO) Of which: +2.0 €mn change in core business Ebitda; -0.3 €mn payable leases; -0.1 other non recurring Change vs 2022 -3.1€mn -9.0% * Financial management adj:Per netil of IFRS16 calcolo and IFRS9, dell’FFO non recurring sono state charges considerate and negative le locazi
Slide 32: Epra indicators
Epra indicators € per share 1H 2023 FY 2022 Δ% NRV 9.54 10.28 -7.1% NTA 9.47 10.20 -7.2% NDV 9.76 10.06 -2.9% Some figures may not add up due to rounding 32
Slide 33: Net debt and LTV
Net debt and LTV NET DEBT NET DEBT FY2022 1H2023 € 976.94 mn €981.97 mn -10,6 -17,5 33,1 LongStrumenti finanziari a term financial Strumenti finanziari lungo terminea instruments lungo1.145,11 termine Long term financial 991.01 1.145,11 instruments 976,9 982,0998.28 Short term financial instruments
Slide 34: Financial Structure
4 Financial Structure
Slide 35: Financial strategy
Financial strategy Maintaining a rigorous financial discipline consistent with IG profile Early refinancing of maturities Significant track record of refinancing transactions also by means of sustainable finance tools 35
Slide 36: Financial management activities carried out and next steps
Financial management activities carried out and next steps Phase 1 Phase 2 Phase 3 Renegotiated maturities Fase 1 up to 1H2024 In progress Next steps Rinegoziate le scadenze degli ultimi 2 anni C. €486MN LOANS DISPOSALS REFINANCING OBTAINED IN THE LAST YEAR*: To reduce indebtedness and €400mn bond (
Slide 37: A strategic asset rotation to reduce leverage
A strategic asset rotation to reduce leverage In the Business Plan disposal of assets was considered optional, while now it is an integral part of the Group’s financial strategy. The scope of potential targets has also been enlarged with respect to the original plan. Potential targets Strategic rati
Slide 38: Debt Maturity
Debt Maturity Bond Exp. Nov. 2024 €215mn unsecured senior Remaining part of green loan €250mn (5y) secured 3+(1+1 opz.) green loan Secured Green Loan post amortization €250€mn: • May ‘23: I tranche • 130€mn already used • II tranche 120€mn by Jan‘24 38
Slide 39: Outlook
5 Outlook
Slide 40: 2023 Outlook review
2023 Outlook review Considering the solid operating results achieved, and based on the currently predictable scenario, the Company expects FFO for FY 2023 to increase, compared to what was disclosed on 23 February (€53 million) Funds From Operation (FFO) 2023 is expected at approx. € 54-55 million T
Slide 41: Attachments
6 Attachments
Slide 42: Consolidated Income Statement
Consolidated Income Statement GROUP CONSOLIDATED (a) (c) Δ Δ CONS_1H 2022 CONS_1H 2023 (c)/(a) (c)/(b) Revenues from freehold rental activities 64.5 65.6 1.6% -48.9% Revenues from leasehold rental activities 4.4 4.5 1.8% -49.9% Total income from rental activities 69.0 70.1 1.6% -49.0% Rent and payab
Slide 43: Re-classified balance sheet
Re-classified balance sheet Sources - Uses of funds (€/000) 30/06/2023 31/12/2022 Δ Δ% Fixed assets 1,969,733 2,041,330 -71,597 -3.5% Assets under construction 35,223 36,662 -1,439 -3.9% Other non-current assets 42,645 43,190 -546 -1.3% Other non-current liabilities -26,323 -27,228 905 -3.3% NWC 9,6
Slide 44: Funds From Operations (FFO)
Funds From Operations (FFO) Δ% Funds from Operations CONS_2022 CONS_2023 Δ 2022 vs 2022 Core business EBITDA 51.8 53.8 2.0 3.8% IFRS16 Adjustments (Payable leases) -4.1 -4.4 -0.3 6.5% Financial management Adj* -13.2 -17.9 -4.7 35.6% Extraordinary management Adj 0.0 0.0 0.0 n.a. Gross margin from tra
Slide 45: Other EPRA Metrics
Other EPRA Metrics EPRA Performance Measure 30/06/2023 31/12/2022 EPRA NRV (€'000) 1.052.986 1.133.860 EPRA NRV per share € 9,54 € 10,28 EPRA NTA 1.045.293 1.125.979 EPRA NTA per share € 9,47 € 10,20 EPRA NDV 1.077.334 1.110.002 EPRA NDV per share € 9,76 € 10,06 EPRA Net Initial Yield (NIY) 6,0% 6,0
Slide 46: EPRA Net Asset Value
EPRA Net Asset Value 30/06/2023 31/12/2022 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1.040.798 1.040.798 1.040.798 1.121.800 1.121.800 1.121.800 Exclude: v) Deferred tax in relation to fair value gains of IP 17.680 17.680 18.175 18
Slide 47: More financial highlights and debt breakdown
More financial highlights and debt breakdown 31/12/2022 30/06/2023 Debt breakdown* Gearing ratio 0.87X 0.95X Average lenght of long-term debt 2.7 years 2.7 years Hedging on long-term debt + bond 84.3% 86.5% Share of M/L debt 92.6% 88.0% Uncommitted credit lines granted 118€ mn* 113 € mn Uncommitted
Slide 48: Contracts and key tenants Italy
Contracts and key tenants Italy Merchandise Turnover Malls TOP 10 Tenant Contracts category impact N 136 N 242 N 164 N 843 clothing 2.7% 11 clothing 2.5% 10 electronics 2.4% 9 Average residual maturity: 4.1 years clothing 2.0% 10 Total contracts: 1,385 of which 60 renewals with the same tenant and 2
Slide 49: Contracts and key tenants Romania
Contracts and key tenants Romania Merchandise Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarkets 11.0% 11 N 162 N 211 N 106 N 106 clothing 6.0% 6 clothing 4.6% 11 clothing 3.6% 7 drugstore 2.5% 5 healthcare 2.1% 4 offices 1.9% 1 restaurants 1.6% 1 Average residual maturity: 4.3 y
Slide 50: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italy Romania Merchandising Mix* Tenant Mix* *internal processing on sqm 50
Slide 51: Agenda
Agenda CORPORATE IR (confirmed as of today) 8 November Results as at 30 September 2023 4-7 September Sustainability week Euronext 10 October 2023 Italian Excellences Mid Corporate Conference Intesa Sanpaolo 13-15 6th MidCap CEO Conference Exane November BNP Paribas 51
Slide 52: 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