Immobiliare Grande Distribuzione SIIQ (IGD) Investor Update summary

Strategic Direction and Governance

• The 2025-2027 business plan marks a clear break from past strategies, developed with full board and employee involvement.

• Governance has been strengthened with a new strategic committee, more frequent board meetings, and visible operational improvements.

• The plan emphasizes a unified, motivated team and a culture of operational excellence and innovation.

Market Context and Trends

• Italian retail real estate investment volume grew 35% in 1H24, with shopping centers offering attractive yields and a 300 bps spread over 10-year BTPs.

• Yields for prime shopping centers have stabilized, with Italy now aligned with Spain and offering higher yields than France and Germany.

• E-commerce penetration growth has slowed, supporting the resilience of physical retail assets and a rebound in footfalls and experiential retail.

• Consumption and footfalls have rebounded to pre-pandemic levels, with 2% annual growth expected in line with inflation.

Financial Targets and Capital Structure

• Net rental income and core business EBITDA are expected to grow by ~16% by 2027, with FFO rising ~41% to €48 million.

• Occupancy rate targets are 98% in Italy and 99% in Romania by 2027, up from 94.5%.

• Loan-to-value (LTV) is targeted at 40% by 2027, with refinancing of €570 million in maturities and cost of debt reduced to 6% or lower.

• Plans include €50 million in investments and €100 million in non-core asset disposals, including €70 million in Romania, €20 million in Livorno, and €10 million in other assets.