Immobiliare Grande Distribuzione SIIQ (IGD) Investor Update summary

Strategic business plan and priorities

• The 2025-2027 plan targets increased core business profitability, expansion of third-party asset management, and value creation through digitalization, ESG integration, and a shift to an asset-by-asset approach.

• IGD is evolving from a traditional landlord to a strategic partner, offering a comprehensive shopping center ecosystem with digital tools, co-marketing, and multi-service solutions.

• ESG principles and sustainability are embedded in all activities, with a reorganized governance structure and goals to reduce carbon footprint and promote inclusion.

• The plan includes a new Services for Third Parties business unit, leveraging over 20 years of experience to expand asset management, marketing, and facility management for SGRs and private owners.

• Investments will focus on targeted, asset-by-asset CapEx, digital transformation, and modernization, with total investments below €80 million post-Porta a Mare completion.

Portfolio management and value creation

• The portfolio is segmented into key, potential, and value-add assets, each with tailored strategies to boost occupancy, NOI, and lease durations (WALB), with Italian occupancy at 94.2% and Romania at 95.5% as of March 2024.

• Key assets (62% of value) focus on NOI growth, expense reduction, and leveraging anchor tenants, while value-add assets (less than 10%) are targeted for repositioning and alternative uses.

• Asset-by-asset approach maximizes efficiency, avoids additional costs, and supports internal synergies.

• Value-add initiatives include repurposing spaces for co-working and last-mile logistics to increase NOI.

• Strengthened tenant relationships aim to extend lease maturities, integrate green clauses, and enhance loyalty.

Disposals, asset rotation, and financial strategy

• Planned disposals of €100-120 million, mainly in Romania and Porta a Mare/Livorno, aim to reduce debt and rebalance the portfolio, with Romanian assets to be sold in clusters by 2025-2026.

• Proceeds from disposals will primarily reduce debt, with further asset rotation possible to maintain portfolio size and cash flow.

• Early refinancing of the €572 million 2027 maturity cliff is planned, leveraging €1.1 billion in unencumbered assets as collateral to secure better terms and maintain investment grade rating.

• The financial strategy focuses on consolidating capital structure, optimizing debt maturities, and resuming dividend distribution.

• Asset rotation and clustering in Romania and Livorno are designed to attract diverse investors and support mixed-use development.