Immobiliare Grande Distribuzione SIIQ (IGD) Q3 2024 earnings summary

Executive summary

• Net rental income for the first nine months of 2024 was €85.2 million, down 3.6% year-over-year but up 3.7% like-for-like, reflecting portfolio changes and positive underlying trends.

• Core business EBITDA was €77.7 million, down 4.1% year-over-year but up 3.9% like-for-like, with a margin of 72.8%.

• Funds From Operations (FFO) fell 40.7% year-over-year to €26.3 million, mainly due to higher financial charges and portfolio disposals.

• Group net result improved to a net loss of €32 million from a €39 million loss in 9M2023, impacted by a one-off €29.1 million impairment from the Food transaction.

• Major asset sale: a €258 million real estate portfolio was sold, with proceeds used to reduce net debt by €153.2 million.

Financial highlights

• Gross rental income was €100.7 million, down 4.4% year-over-year due to asset sales, but up 3.2% vs restated 2023.

• Like-for-like net rental income grew 4.4% year-over-year, with Italy and Romania both showing positive growth.

• Core business EBITDA margin remained stable at 72.8%.

• Financial charges rose sharply to €52.1 million (+67.8% year-over-year), mainly from higher average cost of recent loans and bond issues.

• Net debt stood at €815.3 million at 30 September 2024, down from €968.4 million at end-2023.

Outlook and guidance

• FFO guidance for 2024 is confirmed at approximately €34 million, assuming stable macroeconomic conditions.

• New business plan for 2025-2027 to be presented in November 2024.