Immobiliare Grande Distribuzione SIIQ (IGD) Q4 2023 earnings summary

Executive summary

• FY2023 rental income and core EBITDA grew on stronger retail activity, while higher financing costs and property revaluations drove an €81.7mn net loss and lower FFO.

• FFO of €55.4mn exceeded prior guidance; Italian and Romanian occupancy was 95.3% and 96.2%, respectively.

Financial highlights

• Gross rental income rose 3.7% to €142.4mn; net rental income increased 4.9% to €119.6mn, with like-for-like growth of 7.1%.

• Core business EBITDA increased 4.6% to €108.2mn; margin rose to 72.1% from 71.6%.

• FFO was €55.4mn, down 17.5% YoY, as €15.5mn higher adjusted financial costs offset core EBITDA growth; FY2023 guidance was ~€53mn.

• Reported net loss was €81.7mn versus €22.3mn in 2022; EBIT was -€33.1mn versus €7.7mn, including €138.8mn of impairment and fair-value adjustments.

• Portfolio value excluding leasehold declined 5.4% to €1,968.1mn; EPRA NRV fell 10.3% to €9.22 per share.

Outlook and guidance

• FY2024 like-for-like EBITDA is expected to rise ~3%, supported by occupancy improvements and a full year of projects including Officine Storiche; disposal effects are excluded.

• FY2024 FFO is forecast at ~€34mn, reflecting the asset sale and higher financing costs.

• The disposal is expected to reduce net rental income by €17mn, partly offset by ~€11mn lower financial charges and ~€2mn positive operating impact.