Immobiliare Grande Distribuzione SIIQ (IGD) Q2 2024 earnings summary

Executive summary

• Net rental income reached €59 million, up 4.5% like-for-like, with stable asset valuations and improved financial structure; revenue for H1 2024 was €69.1 million, down 1.4% year-over-year due to a major asset sale.

• 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).

• Board renewal and new CEO appointed in April 2024.

Financial highlights

• Net rental income was €59.0 million, up 4.5% like-for-like, but flat (-0.1%) year-over-year; rental income for H1 2024 was €69.1 million, down 1.4% year-over-year, but up 3.3% restated post-asset disposal.

• Core business EBITDA was €53.9 million (+0.1%), with an EBITDA margin of 73.6%.

• Funds from Operations (FFO) fell 40.7% to €18.3 million, mainly due to higher financial charges and perimeter changes.

• Group net result was a loss of €32.5 million, a 30.8% improvement over H1 2023, mainly due to lower impairments and fair value adjustments.

• Loan-to-value improved to 44.9% from 48.1% at year-end 2023; net debt reduced by €150.3 million to €818.1 million.

Outlook and guidance

• 2024 FFO guidance confirmed at approximately €34 million, assuming no significant macroeconomic deterioration.

• 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.