Immobiliare Grande Distribuzione SIIQ S.p.A. · MIL:IGD
Immobiliare Grande Distribuzione SIIQ — IGD SIIQ — H1 2022 Earnings Presentation
45 slides from Immobiliare Grande Distribuzione SIIQ's earnings presentation, Aug 4, 2022
Slide 1: Results Presentation at 30/06/2022
Results Presentation at 30/06/2022 Conference call 4 August 2022
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: 1H 2022 at a glance
1H 2022 at a glance Lively physical retail: tenant sales increased in 1H 2022 and almost in line with pre-pandemic level Strong leasing activity: good reversion rate + Occupancy increased + New brands and formats introduced In-person events + Marketing and digital plan continued Financial indicators
Slide 4: Highlights
Highlights Δ vs Δ vs Like for like 1H2022 2021 2021R* Net Rental Income 57.1 €mn +2.9% +14.0% +16.0% Core Business Ebitda 51.8 €mn +2.3% +14.6% Funds From Operations (FFO) 34.0 €mn +11.0% +30.8% Real Estate Market Value 2,143.5 €mn +0.14% +0.84% (excluding leasehold) Epra NRV 10.73€ per share -1.1%
Slide 5: Operating Performances
1 Operating Perfomances
Slide 6: Italian malls tenant sales almost recovered the gap with 2019
Italian malls tenant sales almost recovered the gap with 2019 TENANT SALES FOOTFALLS AVERAGE TICKET -2.0% 1H22 vs 1H19 -18.5% 1H22 vs 1H19 €27.6 +30.5% 1H22 vs 1H21 +14.8% 1H22 vs 1H21 +17.3% Jun’22 vs Jun’19 Strong improvement Improvement in the six Less frequent, but from 1st to 2nd quarter months
Slide 7: The retail sector proved to be very lively
The retail sector proved to be very lively… Household Restaurants Services Goods New Format +2.6k new occupancy* Car sharing Moreno – -10.6k m2 vacancy created in 1H Happy casa – Città delle Stelle (AP) Tortelleria - Puntadiferro (FC) ESP (RA) +13.2k m2 remarketed Clothing Focus on the categories ou
Slide 8: Main project in pipeline: Porta Medicea
…with confirmations also on the main project in pipeline Porta Medicea (Livorno) OFFICINE STORICHE >16,000 m2 GLA devoted to RETAIL and ENTERTAINMENT 21 shops 4 medium surfaces 1 entertainment area 1 fitness center (opening expected Jan ’23) 75/80% pre-letting Opening 1/2Q 2023 Work in progress Rend
Slide 9: Remodeling projects continue
Remodeling projects continue… COMPLETED PortoGrande S. Benedetto del T. La Torre - Palermo Katanè - Catania New 3 Medium 3 Medium surfaces New 4 Medium New hypermarket surfaces + stands hypermarket surfaces hypermarket 8,300m2 GLA 3,800m2 GLA 4,700m2 GLA 7,200m2 GLA 6,500m2 GLA 7,300m2 GLA Spaces al
Slide 10: Hypermarket confirmed to be an attractive anchor
…and the hypermarket confirmed to be an attractive anchor 1. Coop Alleanza 3.0 is investing to renew its hypermarkets: COMPLETED 2. More promotional activities that are having an excellent redemption rate 3. Performaces showed good results: +2.9% sales* * Hypermarkets owned by IGD; progressive data
Slide 11: Implementation of Digital Plan and events continues
The implementation of Digital Plan and events continues… MORE SERVICES AND MORE EVENTS MORE COOPERATION CONTACTS WITH WITH TENANTS VISITORS In-person events Co-marketing pilot project New digital totems resumed with a focus on with Kiko Milano are being installed children and families in offering ex
Slide 12: Co-marketing project with Coop Alleanza 3.0
…as well as the co-marketing project with Coop Alleanza 3.0 100,000 800,000 12 17 on line door to door malls programmed newsletter fliers advertised outputs TARGET Increase the number of contacts in the Area Plus, the reserved online portal where visitors can find promotions, events, openings and ot
Slide 13: Good commercial performances in Italy
Good commercial performances in Italy… Occupancy Leasing activities 95.1% Upside* +2.5% +30 bps vs 1Q2022 62 turnovers + 51 renewals Contracts signed with new tenants with openings in second half of 2022 Collection rate 2022 >90% Portobello in Portogrande S. Bendetto del T. *upside on renewals and t
Slide 14: …and in Romania
…and in Romania Occupancy Leasing activities 92.9% Upside* +3.5% - 120 bps vs 1Q2022 69 turnovers + 118 renewals • The increase in vacancy is strategic and temporary: 3.000 m2 already leased will bring the figure to pre-pandemic level (c.95%) • Lower temporary reductions granted compared to 2021 Col
Slide 15: Sustainability: first results of the 2022-2024 Business Plan
Sustainability: first results of the path defined in the 2022-2024 Business Plan Preliminary Bio Safety Trust ISO37001 Restyling/ Local associations agreements signed Certification Certification revamping in involved in 90% to realize renewed in 7 confirmed progress in 4 of shopping photovoltaic sho
Slide 16: Portfolio
2 Portfolio
Slide 17: Stabilization of the portfolio fair value is confirmed
The stabilization of the portfolio fair value is confirmed Portfolio Fair Value Italian real estate becomes attractive again +0.84% Like for Like Total investments (mainly thanks to the effect 1H22 6.1 €bn of the cash flow improvement) (+100% vs 1H21) Retail 0.5 €bn (+118% vs 1H21) 17
Slide 18: IGD's market value
IGD’s market value Gross Initial EPRA Net Initial EPRA Net Initial Finan FY 2021 1H 2022 Δ% Yield Yield Yield topped up occup Malls Italy 1,481.64 1,499.42 + 1.20% 6.70% 93.96 5.2% 5.4% Hypermarkets Italy 423.83 409.59 (-3.36%) 6.14% 100.0 Romania 135.78 135.06 (-0.53%) 7.57% 5.5% 6.0% 92.87 Porta a
Slide 19: IGD's portfolio
IGD’s portfolio ITALY ROMANIA € 2,143.5mn € 2,140.5mn 19
Slide 20: Restyling in progress
Restyling in progress La Favorita (Mn) Portogrande (Ap) Total restyling of Total restyling of mall, facade, and the mall parking area End of work: end of End of work: 3Q22 2023 Slightly delayed because of partial redesign Postponed to avoid overlapping of construction sites (remodeling and restyling
Slide 21: Restyling Centro Leonardo (Bo)
Restyling Centro Leonardo (Bo) Following the hypermarket restyling made by Coop Alleanza 3.0, the mall restyling design, entrusted to Design International-London, is in progress Total restyling of mall, facade, and parking area Start of work: 2023 21
Slide 22: Feedback from mixed-use project Porta Medicea
Excellent feedback from the mixed-use project Porta Medicea (Li) RESIDENTIAL SALES 28 binding proposals signed (out of 42 total residential units) c.10.6mn cash in expected within the year 22
Slide 23: Economic and Financial Results
3 Economic and Financial Results
Slide 24: Net rental income improved
Net rental Income improved thanks to the increase in revenues and no Covid impact Change vs 2021R +7.0€mn +14.0% Of which: Like for like • -5.8 €mn change in income net rental Change vs 2021 scope income +1.6€mn • +0.4 costs of the sold portfolio +16.0% +2.9% €mn Like for like: +2.1% (+1.3 €mn) Mall
Slide 25: Core business Ebitda and Ebitda margin improve
Core business Ebitda and Change vs 2021R Ebitda Margin improve +6.6€mn +14.6% Change vs 2021 +1.2€mn +2.3% €mn Core businss 2021 2022 EBITDA 66.3% 71.3% MARGIN EBITDA 2021 2022 MARGIN 66.6% 73.3% freehold Some figures may not add up due to rounding. 25
Slide 26: Decrease in net debt entails lower financial charges
The decrease in net debt entails lower financial charges -15,3% IFRS16 and non recurring charges Financial Management Adj*: -2.4 €mn vs 2021 (-15.3%) * Financial Management adj: net of IFRS16 (0.6€mn) and IFRS9, non recurring charges Some figures may not add up due to rounding. 26
Slide 27: Funds From Operations (FFO)
Funds From Operations (FFO) Of which: Change vs 2021R -5.8 €mn change in revenues, +8.0€mn +0.4 €mn cost of the sold portfolio Of which: +30.8% +0.8 €mn lower payable leases thanks to +2.4 €mn financial management adj. the end of the master lease in Centro -0.4 €mn 2021 negative carry Piave Change v
Slide 28: EPRA indicators
Epra indicators € per share 1H2022 FY 2021 Δ% NRV 10.73 10.85 -1.1% NTA 10.66 10.78 -1.1% NDV 10.92 10.43 4.6% Some figures may not add up due to rounding 28
Slide 29: Financial management activities carried out in 1H 2022
Financial management activities carried out in 1H 2022… 1° Green Loan Senior unsecured loan (€215mn) Approx. 154€mn 1^ committed 2^ committed Bond repayed credit lines credit lines with the cash renewed (20€mn) renewed (40€mn) available until 2025 until 2025 APR MAY JUN AUG 29
Slide 30: Extension of the maturity profile
..lead to an extension of the maturity profile €100mn Private placement: 2.25% maturity 1Q €400mn bond: 2.125% maturity 4Q New senior unsecured green loan 3+(1+1 opt.) • The 200€mn syndicated loan expiring in 2023 has been early repaid using the green loan proceedings • Considering also the committe
Slide 31: Net debt and LTV increased due to dividends
NET DEBT and LTV increased due to dividends entirely paid in May NET DEBT FY2021 NET DEBT 1H2022 € 987 mn € 1,001 mn Long term financial Long term financial instruments instruments 977.80 1,145.11 Short term financial instruments 40.00 Cash -158.08 Cash flow IQ Cash flow IIQ Dividends Cash -16.20 44
Slide 32: Outlook
5 Outlook
Slide 33: Outlook
Outlook Taking into account: • The delay of some projects and related revenues together with the positive economic impacts of the pre-lets that will Change vs 2021R be spread over the second half +17/18% • The worsening of the macro economic scenario (increase in Change vs energy costs) as well as p
Slide 34: Agenda Corporate IR
Agenda CORPORATE IR (confirmed as of today) 3 November Results as at 30/09/2022 6-8 September EPRA Annual Conference 7 September Italian Sustainability Week 11 October Italian Excellences 2022 – Paris Intesa Sanpaolo 16 November Exane BNP Paribas European Mid Cap CEO Conference 34
Slide 35: Appendix
6 Appendix
Slide 36: Consolidated Income Statement
Consolidated Income Statement GROUP CONSOLIDATED (a) (c) Δ 1H_CONS_2021 1H_CONS_2022 (c)/(a) Revenues from freehold rental activities 66.9 64.5 -3.5% Revenues from leasehold rental activities 6.2 4.4 -28.3% Total income from rental activities 73.1 69.0 -5.6% Rents and payable leases 0.0 0.0 32.8% Di
Slide 37: Re-classified balance sheet
Re-classified balance sheet Sources - Use of funds(€/000) 30/06/2022 31/12/2021 Δ Δ% Fixed assets 2,093,143 2,093,176 -33 0.0% Assets under construction 43,420 44,095 -676 -1.5% Other non current assets 42,651 42,810 -159 -0.4% Other non current liabilities -26,302 -27,466 1,164 -4.2% Assets held fo
Slide 38: Funds From Operations (FFO)
Funds From Operations (FFO) Funds from Operations 1H 2022 1H 2021 Δ Δ% Core business EBITDA* 51.9 50.6 2.3 2.5% IFRS16 Adjustment (Payable leases) (4.1) * (4.2) 0.1 -3.1% Financial Management Adj** (13.2) (15.6) 2.4 -15.3% Current taxes for the period Adj (0.6) (0.6) (0.0) 0.7% FFO 34.0 30.2 3.8 12.
Slide 39: Other Metrics
Other Metrics EPRA Performance Measure 30/06/2022 31/12/2021 EPRA NRV (€'000) 1.184.419 1.197.354 EPRA NRV per share € 10,73 € 10,85 EPRA NTA 1.176.469 1.189.467 EPRA NTA per share € 10,66 € 10,78 EPRA NDV 1.204.446 1.151.244 EPRA NDV per share € 10,92 € 10,43 EPRA Net Initial Yield (NIY) 5,6% 5,8%
Slide 40: EPRA Net Asset Value
EPRA Net Asset Value 30/06/2022 31/12/2021 Net Asset Value EPRA NRV EPRA NTA EPRA NDV EPRA NRV EPRA NTA EPRA NDV IFRS Equity attributable to shareholders 1.165.974 1.165.974 1.165.974 1.171.758 1.171.758 1.171.758 Exclude: v) Deferred tax in relation to fair value gains of IP 18.774 18.774 17.161 17
Slide 41: More financial highlights and debt breakdown
More financial highlights and debt breakdown 31/12/2021 30/06/2022 Debt breakdown** Gearing ratio 0.84X 0.86X Average lenght of long term debt 2.4 years 2.3 years Hedging on long term debt + bond 93.8% 87.4% Share of M/L debt 96.4% 93.1% Uncommitted credit lines granted 151 € mn 151 € mn Uncommitted
Slide 42: Contracts and key tenants Italy
Contracts and key tenants Italy Product Turnover Malls TOP 10 Tenant Contracts category impact N 153 N 208 N 250 N 788 clothing 2.7% 10 clothing 2.6% 13 electronics 2.4% 10 Average residual maturity: 3.9 years clothing 2.1% 11 Total contracts: 1,399 of which 51 renewals with the same tenant and 62 s
Slide 43: Contracts and key tenants Romania
Contracts and key tenants Romania Product Turnover TOP 10 Tenant Contracts category impact Winmarkt supermarkets 11.0% 11 N 152 N 234 N 58 N 42 N 59 clothing 6.1% 6 clothing 4.5% 11 clothing 3.7% 7 drugstore 2.7% 5 health care 2.2% 4 jewellery 1.5% 5 office 1.8% 1 Average residual maturity: 4.2 year
Slide 44: Merchandising & Tenants Mix
Merchandising & Tenants Mix Italia Romania Merchandising Mix* Tenant Mix* *Internal processing on GLA sqm 44
Slide 45: 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