IGD SiiQ

Salta ai contenuti
 

Press releases

09 May 2018 | 11:52
Price sensitive Economic and financial results

The Board of Directors approves the Interim Financial Report at 31 March 2018

The main results:

  • Further significant growth in recurring net income (FFO):  €18.3 million (+17.5%)
  • Rental income: €35.6 million, +5.2 % (LFL Italy +1.9%, Romania +4.1%)
  • Net rental income: €29 million, +6%  
  • Group net profit:  €16.7 million (+16.7%)
  • Sales of retailers in Italian malls +2.9%; significant upside on renewed leases (Italy +3%; Romania +1.5%)
  • Loan-to-value 46.9%; average cost of debt 2.75 %

Today the Board of Directors of IGD -Immobiliare Grande Distribuzione SIIQ S.p.A.(“IGD”or the “Company”) examined and approved the interim financial report at 31 March 2018 during a meeting chaired by Elio Gasperoni.

 

“Excellent operating and financial results were posted during the quarter.  Funds From Operations, in fact, rose  17.5% and is largely in line with the FY2018 guidance of +18/20%, even though the positive impact of the acquisition has yet to show as it closed on 18 April and despite the conclusion of the capital increase on 23 April” stated Claudio Albertini, IGD’s Chief Executive Officer. “The FFO guidance will be updated when the first-half results are approved”.

 

POSITIVE FINANCIAL RESULTS CONFIRMED (FFO +17.5 %)

 

More in detail, rental income rose +5.2% to €35.6 million due to:

  • like-for-like growth (+1.9%) in Italy of around €0.6 million. Malls were up (+2.5%) while hypermarkets were in line with the prior year; inflation had an impact of 80 bps;
  • higher revenue not like-for-like of around €1.1 million linked to the opening of the ESP extension on 1 June 2017;
  • higher revenue like-for-like in Romania of around €0.09 million (+4.1%).

Net rental income reached €29 million, an increase of 6% against the same period of the prior year.

Revenue from services came to €1.5 million, down with respect to the prior year due to the pre-letting of  Centro Poseidon in 1Q2017.

Core business Ebitda amounted to €26.5 million, an increase of 6.0% compared to 31 March 2017. Operating costs fell even further as a percentage of core business revenue and, consequently, the core business Ebitda Margin rose 70 basis points against the prior year (70.7%) to 71.4%. The recurring freehold Ebitda margin (relative to freehold properties) came to 80.2%, an increase of 50 basis against March 2017.

 

Financial expense fell (-13.3%) to €7.9 million, while the NFP was basically unchanged. The result is attributable to the recent liability management activities, as well as the decrease in the notional amount of a few IRS.  The downward path of the average cost of debt was, therefore, confirmed (2.75% vs 3.1% in March 2017).

 

The Group’s portion of net profit amounted to €16.7million, an increase compared to the €14.3 million posted in the same period 2017 (+16.7%).

 

Funds from Operations (FFO) rose 17.5% against the first three months of 2017 to €18.3 million. The Group confirms the full year guidance for 2018, disclosed to the market in February (+18/20% at year-end 2018), and expects to update it when the results for the first half are approved.  

 

The IGD Group’s net financial debt came to €1,049.4 million, basically unchanged with respect to March 2017 (€1,046.8 million).  Slight improvement was recorded in capital structure ratios like the gearing ratio (0.92x) and loan-to-value (46.9%).  

 

OPERATING PERFORMANCE

The positive trend in pre-letting reported last year continued: in Italy 42 leases, 29 renewals and 13 turnover, were signed with an average upside of +3%; in Romania the average upside on renewals reached +1.5%.

Retailers’ sales fell in the first 2 months of 2018 as a result of the calendar effect (one less Sunday and one more Thursday compared to 2017) and weather conditions (snowstorms also occurred in central and southern regions) which were more than offset by the excellent performance recorded in March linked also to Easter festivities.  Sales for retailers in Italian malls were 2.9% higher, while footfalls rose +0.9% against the prior year.

Average occupancy was stable at 96.8% in Italy and higher in Romania at 97.1%.

 

IGD PORTFOLIO NEWS

On 3 April the Livorno City Council approved the variance for the Officine Storichesection of the Porta a Mare Project. The Company had been waiting for this variance for some time.  It will make it possible to accelerate completion of the work on this section and the retail portion (additional 15,000 m2 of retail space) is expected to open by 2H 2019.

Preletting of the residential section of Piazza Mazzini continued: 15 preliminary agreements have been signed and are expected to close in 2018 (total residential units sold or subject to preliminary agreements at 90.7%).

On 18 April the closing of the acquisition of the portfolio comprising 4 shopping malls and a retail park from Eurocommercial Properties for a total investment of €195.5[1] million was finalized.

The new midsize store, as well as the complete restyling of the exterior and the multi-level parking garage (2017),  at theGran Rondò Shopping Center (Crema) was opened on 3 May, as forecast in the Business Plan.

[1] This amount refers to the total value of the portfolio of €187 million, in addition to transfer tax and ancillary charges of €8.5 million.
Investor Relations Contacts
CLAUDIA CONTARINI
Investor Relator
Media Relations Contacts
CRISTINA FOSSATI
Image Building
+39 02 89011300
 
 
DISCLAIMER

In order to access this section of the website and any other information contained in following internet pages it is necessary to read and accept the information contained in this notice. This notice applies to the information following this page, and you are advised to read this carefully before reading, accessing or making any other use of the information that follows. In accessing this section of the website, you agree to be bound by the following terms and conditions which may be altered or updated and therefore should be read by you in full each time you visit this site.

Any information contained in following internet pages are accessible only to persons who: (a) are not currently domiciled or located in the United States of America, Australia, Japan or Canada, or in any other country in which the dissemination of such information requires the approval of local Authorities or is otherwise in violation of governing statues or laws ("Other Countries"); and (b) are not "U.S. Persons" as this term is defined in Regulation S of the United States Securities Act of 1933, as amended.

"U.S. Persons", as this term is defined above, are forbidden access to through this section of the website.

The information contained on the following Internet pages may not be copied or forwarded and for no reasons and under no circumstances may the information contained on the following Internet pages be disseminated, directly or through any third parties, outside the Italian territory and, in particular, in the United States of America, Australia, Japan, Canada, or Other Countries. The following does not constitute or form a part of, and should not be construed as, an offer by or on behalf of IGD SIIQ or an invitation to subscribe for or purchase any securities in the United States, as defined in the U.S. Securities Act of 1933, as amended. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States of America absent registration under that Act or an available exemption from it.

As defined in the Securities Act of 1993, as amended, the term "U.S Person" means: (1) any natural person resident in the United States; (2) any partnership or corporation organized or incorporated under the laws of the United States; (3) any estate of which any executor or administrator is a U.S. person; (4) any trust of which any trustee is a U.S. person; (5) any agency or branch of a foreign entity located in the United States; (6) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (7) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (8) any partnership or corporation if: (A) organized or incorporated under the laws of any foreign jurisdiction; and (B) formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a)) who are not natural persons, estates or trusts.

In order to access to this section of the website and any other information contained in following internet pages, I declare under my responsibility not to be currently domiciled or located in the United States of America, Australia, Japan, Canada, or in the Other Countries and not to be a "U.S. Person" as this term is defined in Regulation S of the United States Securities Act of 1933, as amended.

I acknowledge and accept the conditions set above