Immobiliare Grande Distribuzione Siiq S.p.a. · MIL:IGD
Immobiliare Grande Distribuzione Siiq — H1 2017 Earnings Presentation
42 slides from Immobiliare Grande Distribuzione Siiq's earnings presentation, Aug 4, 2017
Slide 1: Results as at 30 June 2017
Results as at 30 June 2017 Conference call 4 August 2017 ESP Extension Ravenna
Slide 2: Disclaimer
This presentation does not constitute an offer or an invitation to subscribe for or purchase any securities. DISCLAIMER The securities referred to herein have not been registered and will not be registered in the United States under the U.S. Securities Act of 1933, as amended (the “Securities Act”),
Slide 3: Highlights 1H2017
Highlights 1H2017 € 71.6 mn € 50.0 mn Core business revenues Core business Ebitda + 6.0% + 6.9% Margin 69.8% (+60 bps) Margin from Freehold 79.5% (+90bps) € 48.9 mn € 31.9 mn Group Net Profit FFO + 84.6% + 17.8% FFO per share € 0.039 € 2,210.4 mn € 1.31 per share Portfolio Market Value Epra NNNAV 30
Slide 4: Operating Performance
Operating Perfomance Centro Sarca – Sesto San Giovanni (MI)
Slide 5: Good news from the macro perspective
Good news from the macro perspective… 1.3% GDP0.6% 0.8% 1. Projections of the Italian economy are 0.1% 0.9% improving… 2011 2012 2013 2014 2015 2016 2017e • The Italian economy accelerated in the first half of 2017. Forecasts for 2017 have been revised upwards and GDP is expected at about 1.3%/1.4%
Slide 6: Italian real estate is continuing to grow
…and the Italian real estate is continuing to grow Total Retail Office Hotel Logistics Mixed-Others Italian Real Estate 1H 2017: €5.8 bn +58% vs 1H2016 Transactions value (€ mn) €1,198 mn €2,012 mn €770 mn €762 mn €1,019 mn % out of the total 21% 35% 13% 13% 18% ∆ vs 1H2016 +76% +30% +49% +291% +43%
Slide 7: Romania, a rapidly expanding economy
Romania, a rapidly expanding economy GDP 4.80% • GDP is expected at the end of 2017 4.50% 3.50% 3% 3.70% to be over 4% . 1.10% 0.60% • Growth will be driven by a strong -0.80% domestic demand supported by a new ROMANIA 2009 2010 2011 2012 2013 2014 2015 2016 2017e set of fiscal measures adopted by t
Slide 8: Operating performance
Operating performance +0.5% +1.3% including Esp extension Malls tenant sales -0.8% Footfalls Strongly affected by the first 2 months of the year and calendar effect -1.8% Footfalls Affected by the competition of new shopping malls, fit-outs and calendar effect Results presentation 1H2017 8
Slide 9: Commercial performances: Italy
Commercial perfomances: Italy 74 signed contracts of which 25 turnover and 49 renewals ……. +4.7% upside 2% rotation rate 97.2% occupancy Stable vs 97.2% 1Q17 ESP (Ravenna) Results presentation 1H2017 9
Slide 10: Commercial performances: Romania
Commercial perfomances: Romania 237 signed contracts Of which 136 turnover and renewals and 101 new contracts +2.5% upside 17.4% rotation rate 96.9% occupancy Increasing vs 96.0% 1Q17 Ploiesti Grand Center Results presentation 1H2017 10
Slide 11: Results: rental revenues +5.2%
Results: rental revenues +5.2% ITALY ROMANIA +1.5% +7.0% +5.2% 912 2,414 -225 300 64,985 68,386 Rental revenues 1H Lfl Italy Acquis/exten/restyling Other LfL Romania Rental revenues 1H 2016 2017 Like for like Italy +1.5%: malls (+2.1%) and slight increase in hypermarkets (+0.6%); inflation had a mar
Slide 12: Spaces to be lived in
Spaces to be lived in Focus on QUALITY of shopping center and SERVICES offered to visitors and tenants NEW FOOD COURT NEW SERVICES PET SHOP ESP - extension ESP - extension FOOD COURT SERVICE 800 sqm 2,200 sqm (11.6% gla new malls) CHILDREN AREA Results presentation 1H2017 12
Slide 13: New brands to...
New brands to… Increase the attractiveness of the shopping malls Diversify the shopping malls from their competitors SERVICES ELECTRONICS FOOD COURT ESP ESP (Ravenna) (Ravenna) CLOTHING PET SHOP ESP PUNTA DI FERRO ESP (Ravenna) (Forlì) (Ravenna) ESP (Ravenna) ESP (Ravenna) TIBURTINO ESP HEALTHCA
Slide 14: Marketing and Innovation in the Shopping Centers
Marketing and Innovation in the Shopping Centers INNOVATION Digital communication and Phone and electric bicycle interactive marketing battery chargers Digital box created ad-hoc for Digital totems installed in 9 IGD and installed in 17 shopping centers; shopping centers Roll-out plan, in all
Slide 15: Sustainability: two specific projects
Sustainability: two specific projects Circular economy innovative project on the issue of food An event aimed at the organisation of sports and artistic which aims to re-use in the shopping center the food waste activities inside the shopping centers bringing together it produced by giving it a new
Slide 16: Portfolio
FY 2009 RESULTS Bologna November 11, 2011 Portfolio ESP Extension Ravenna
Slide 17: IGD Portfolio is growing
IGD Portfolio is growing… Δ% Gross Initial Financial FV 2016 FV 1H2017 Δ% Like for Like Yield occupancy Malls Italy 1,211.60 1,287.91 + 6.3% + 1.1% 6.30% 95.93% 97.22% average Hyper Italy 646.09 649.60 + 0.5% + 0.5% 6.19% 100.0% malls + hyper Romania 164.91 162.67 -1.4% -1.4% 6.55% 96.91% Porta a Ma
Slide 18: ...and so is the value created
…and so is the value created € per share 31-Dec-16 30-Jun-17 D% EPRA NAV 1.37 1.38 +1.0% EPRA NNNAV 1.29 1.31 +1.6% € 0.02 € 1.31 € 1.29 € 0.04 € 0.01 -€ 0.05 EPRA NNNAV 31 DIC 2016 Dividend Change in debt Fair value FFO Assets Fair Value EPRA NNNAV 30 giu 2017 debito and other Results presentation
Slide 19: Malls continue to grow
Malls continue to grow LANDS + OTHER 1 % of malls is continuing 5.0% SMALL 13.7% to grow ( 58.3% vs 55.6% as HYPER/SUPER at 1Q17) 29.4% MEDIUM KEY MALLS 29.0% 57.3% 58.3% 2 Large malls are growing WINMARKT 7.4% the most (57.3% vs 55.1% as at 1Q17) Key Malls C. Sarca Conè puntadiferro ESP Tiburtino P
Slide 20: ESP: 1 June 2017 extension opening
Esp: 1 June 2017 extension opening Results presentation 1H2017 20
Slide 21: ESP: a perfect example of the IGD portfolio
ESP: a perfect example of the IGD portfolio Leading center in a rich area (Ravenna) Catchment area: > 130k (20 mins) and > 300k (30 mins) Disposable income per-capita 2015: > €22k (+7.1% vs Italian average) Ravenna city center Distance from ESP: approx. 3 km CENTRO ESP Previously (with extension): e
Slide 22: ESP: a new success following Maremà in Grosseto
ESP: a new success for IGD following the opening of Maremà in Grosseto Footfalls in the first month: approx 510,000 Total investment approx. €51 mn Yield on cost >8% Important brands: Results presentation 1H2017 22
Slide 23: Città delle Stelle remodeling
Città delle Stelle remodeling HYPERMARKET NEW GLA IN THE MALLS REDUCTION AND Approx. 4,150 sqm (shops, 1Remodeled RESTYLING stands) 1 area Openend on 24 March 2017 Preletting: > 90% Gla hyper from 14,400 sqm to 1 IGD investment: € 1.4 mn 9,350 sqm End of work: 2H2017 Results presentation 1H2017 23
Slide 24: Pipeline update
Pipeline update: Gran Rondò (Crema) New medium surface (+ 2,850 m² GLA) already rented Total restyling of the putside of the shopping malls End of work: 1H 2018 Total expected investment: approx €7 mn Officine Storiche (Livorno) Redevelopment of the former Cantier Navali Orlando, a modern retail con
Slide 25: Porta a Mare project
Porta a Mare project The heart of the initiative will be completed shortly TOTAL OWNERSHIP OF THE INITIATIVE following the repurchase of CMB’s stake SALE of PIAZZA MAZZINI RESIDENTIAL AREA ALMOST COMPLETED 60 flats sold/reserved out of 73 Total sold/reserved: 78% WORK IN PROGRESS PALAZZO ORLANDO: 1
Slide 26: Financial results
FY 2009 RESULTS Bologna November 11, 2011 Financial results Conè – Conegliano
Slide 27: IGD's financial structure even stronger
IGD’s financial structure even stronger Creditworthiness confirmed by: 1 2 3 1 Confermato a dicembre Rating Moody’s Baa(3) Outlook Stale IRS expired in April 2017 cost 4.38% (notional €70.7mn; total cost 4.933%) replaced with two IRS, duration 10 years, cost 0.59% (notional €69.25mn; total cost 1.
Slide 28: Financial Highlights
Financial Highlights 48.5% 0.98 Loan to Value Gearing ratio Fy 2016: 48.3% Fy 2016: 0.97 2.9% 2.8X Cost of Debt Interest Cover Ratio Fy 2016: 3.3% Fy 2016: 2.2 X 5.2 years 94.5% Average residual maturity of Hedging on long-term debt + long-term detb bond Fy 2016: 5.5 years Fy 2016: 93.8% Results pre
Slide 29: Debt structure
Debt structure Net Debt 1H2017 €1,076.8 mn 2.5% L.T. 1,015.3 5y 2.65% 3.875% 7y 2.25% 7y 300 7y S.T. 64.0 Cash -2.8 125 162 100 BANKING SYSTEM 36.2% 8 MARKET 17 53 52 35 36 37 37 27 63.8% 17 21 24 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2025 Bonds Bond already repaid Bank debt already repaid B
Slide 30: FFO and Outlook
FY 2009 RESULTS Bologna November 11, 2011 FFO and Outlook ESP Ravenna
Slide 31: Fund from Operations (FFO) €31.9 mn (+17.8%)
Fund from Operations (FFO) €31.9 mn (+17.8%) Funds from Operations 1H_2016 1H_2017 D vs 2016 D% Core business EBITDA 46,743 49,982 3,240 6.9% Adj Financial Management -19,088 -17,548 1,540 -8.1% Adj Extraordinary Management -125 0 125 n.a. Adj current taxes of the period -466 -563 -97 20.9% FFO 27,0
Slide 32: FFO FY2017 target and outlook reviewed
Target communicated in February FFO FY2017: +18/19% vs 2016 FFO FY2017 OUTLOOK REVIEWED : +20% vs 2016 Results presentation 1H2017 32
Slide 33: Attachments
Attachments ESP Ravenna
Slide 34: Consolidated Income Statement
Consolidated Income Statement CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2016 30/06/2017 D% 30/06/2016 30/06/2017 D% 30/06/2016 30/06/2017 D% Revenues from freehold real estate and rental activities 58,838 62,068 5.5% 58,838 62,068 5.5% 0 0 n.a. Revenues from leasehold real estate a
Slide 35: Margin from activities
Margin from activities CONSOLIDATED CORE BUSINESS PORTA A MARE PROJECT €/000 30/06/2016 30/06/2017 D% 30/06/2016 30/06/2017 D% 30/06/2016 30/06/2017 D% Margin from freehold properties 50,870 54,056 6.3% 50,870 54,056 6.3% 0 0 n.a. Margin from leasehold properties 1,030 1,184 14.9% 1,030 1,184 14.9%
Slide 36: Operating costs and financial management
Operating costs and financial management CORE BUSINESS G&A EXPENSES AND DIRECT COSTS (€ 000) Lower impact of operating costs on revenues 5,346 5,455 Ebitda margin core business is G&A expenses growing (69.8%): +60 bps Direct costs 15,454 16,175 Ebitda margin from Freehold: 79.5% increasing compared
Slide 37: Group Net Profit: €48.9 mn
Group Net Profit: €48.9 mn +84.6% 2,218 -1.313 -338 18,609 3,240 20 48,944 26,508 Group Net Profit Change in core Change in Porta a Change in depr., Change in financial Change in taxes Change in Group Net Profit 30/06/2016 business Ebitda Mare project provisions, and extraordinary (profit)/loss for
Slide 38: Contracts in Italy and Romania
Contracts in Italy and Romania EXPIRY DATE OF HYPERMARKETS AND MALLS EXPIRY DATE OF HYPERMARKETS AND MALLS CONTRACTS ITALY (% no. of contracts) N 24 CONTRACTS ITALY ( % of value) 100% 96.0% 100% 93.4% 90% 90% N 782 80% 80% Average residual 66.5% 70% 62.5% 70% maturity 60% 60% Hyper 7.3 years 50% 50%
Slide 39: Key tenants as at 30/06/2017
Key tenants as at 30/06/2017 Top 10 Tenants Italy Top 10 Tenants Romania Product Turnover No. of Product Turnover No. of TOP 10 Tenant TOP 10 Tenant category impact contracts category impact contracts food 9.1% 9 clothing 3.2% 11 clothing 8.1% 6 Breakdown of rental revenues clothing 3.2% 12 clothing
Slide 40: Additional financial highlights
Additional financial highlights 2016 30/06/2017 SHARE OF MEDIIUM/LONG-TERM DEBT 84.6% 90.7% UNCOMMITTED CREDIT LINED GRANTED € 276 mn €291 mn UNCOMMITTED CREDIT LINES AVAILABLE € 164 mn €225 mn COMMITTED CREDIT LINED GRANTED AND € 60 mn € 60 mn AVAILABLE UNENCUMBERED ASSETS € 1,406.9 mn € 1,436.5 mn
Slide 41: Re-classified Balance Sheet
Re-classified Balance Sheet Sources - Uses of funds 31/12/2016 30/06/2017 D D% Fixed assets 2,050,728 2,127,766 77,038 3.8% Assets under construction 75,004 40,458 -34,546 -46.1% Other non-current assets 25,543 25,035 -508 -2.0% Other non-current liabilities -32,150 -30,473 1,677 -5.2% NWC 56,378 36
Slide 42: Investor Relations contacts
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 509260 federica.pivetti@gruppoigd.it to @igdSIIQ
Immobiliare Grande Distribuzione SIIQ S.p.A. (IGD) — H1 2017 Earnings Presentation on 6ix