Immobiliare Grande Distribuzione SIIQ (IGD) Q2 2024 earnings summary

Executive summary

• Priorities include increasing core business profitability, optimizing financial maturities, expanding third-party services, and enhancing sustainability and digital engagement initiatives.

• The company renewed the National Collective Labour Agreement, improving employee conditions despite higher personnel costs.

• The 'Services for Third Parties' business unit delivered positive results, including successful remarketing of stores for Prelios (Food Fund).

Financial highlights

• Net rental income was €59.0 million, up 4.5% like-for-like, but flat year-over-year; core business EBITDA was €53.9 million (+5% like-for-like), with a margin of 73.6%.

• FFO fell 40.7% year-over-year to €18.3 million, mainly due to higher financial charges.

• Group net result was a loss of €32.5 million, a 30.8% improvement over H1 2023, mainly due to a €29 million one-off write-down related to the food JV.

• EPRA NRV per share: €8.92 (-3.2% vs FY2023); EPRA NTA: €8.85; EPRA NDV: €8.76.

• Loan-to-value improved to 44.9%, and net debt reduced to €818.1 million.

Outlook and guidance

• 2024 FFO guidance confirmed at approximately €34 million, assuming no major macroeconomic disruptions.

• Management expects improved results in H2 as one-off effects subside and market conditions stabilize.

• Ongoing focus on refinancing and asset disposals, particularly in Romania, to further strengthen the balance sheet.