Immobiliare Grande Distribuzione SIIQ (IGD) Investor Update summary

Strategic Direction and Governance

• The 2025-2027 business plan marks a strategic shift, emphasizing broad employee involvement, a refreshed governance model, and active board participation from inception.

• Governance changes include a new strategic committee, more frequent board meetings, and organizational improvements that have already led to visible operational results.

Market Context and Trends

• Italian retail real estate investment volume rose 35% in 1H24, with shopping centers leading Europe in growth and offering 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 in goods has plateaued at 11%, supporting the resilience of physical retail assets and rebounding in-mall experiences.

Financial Targets and Capital Structure

• Net rental income is projected to grow by 16% (5.2% CAGR) by 2027, with FFO targeted at €48 million, a 41% increase over 2024E.

• Core business EBITDA is expected to reach ~€98 million, up ~16% from 2024E.

• Loan-to-value ratio is targeted to improve to 40% by 2027, down from 44.8% in September 2024.

• €50 million in investments and €100 million in non-core asset disposals are planned, including €70 million in Romania and €30 million from Livorno and other assets.

• Refinancing, early bond repayment, and extending debt maturities are prioritized to reduce cost of debt and maintain an investment-grade profile.