Strategic Plan 2019-2021 presentation

Strategic Plan 2019-2021: focus on consolidation of leadership and strengthening the financial structure

The goal of IGD’s strategy is to maximize value for investors and stakeholders, decrease the risk profile and guarantee sustainable growth over time through continuous cash flow generation.

The new Strategic Plan for the three years period 2019-2021 aims to consolidate our leadership in the Italian market and give further solidity to our financial structure.

“The new Plan is therefore focused on the careful work we will do on our portfolio in order to further improve the quality and ensure that it is in step with the changing shopping experience, with a shopping center that is becoming increasingly social”

Claudio Albertini, IGD’s CEO, newsletter 4/2018

As 2018 draws to a close, so does a decade of intense growth, in which we worked very hard to create a leading portfolio in Italy, thanks to a significant pipeline of investments and interesting opportunities caught on the market. All of this has helped to record significant financial results, particularly in the last 4 years:

  • FFO more than doubled;
  • Constant dividend growth;
  • Group’s leverage reduced by more than 10 percentage points.

We believe we reached an optimal size for the Italian market, therefore over the coming years the Strategic Plan will focus on strengthening and maintaining the sustainability of the shopping centers’ leadership in their respective catchment areas, in order to be ready to face the market changes underway and future challenges.

Main targets of the Strategic Plan 2019-2021

+2% ca.
CAGR Gross Rental Income
+1.7% ca.
CAGR Like-for-like gross rental income
+3% ca.
CAGR Core business FFO
<45%
Loan To Value at the end of the Plan
€100 mn ca.
Investments (over the Plan timespan)

An approach based on three pillars

The strategy leverages on three pillars that IGD intends to develop internally by using in-house resources and expertise. These three areas are linked to:

  • Innovation and operational excellence: the world of retail and shopping center is constantly changing, therefore we developed a plan focused on innovation, desinged to guide and improve, as well as personalize, the visitors’ customer journey.
  • Asset managementthe investments planned aim to maintain and increase the quality of our portfolio in order to strengthen the leadership positioning of assets
  • Financial strategy: we will focus on stregthening our financial structure through rigorous financial discipline in line with the investment grade profile.

As in the previous plans, sustainability is also a key part of the new plan.

Results achieved by the Business Plan 2015-2018 (€ cent.)

The dividend policy

Aware of its SIIQ status, IGD is committed to providing its shareholders with attractive and sustainable returns in line with the results achieved in the past.

The dividend paid 2017 is €0.50 per share. The total payout of €55.2 million corresponds to 84.1% of the FFO for the year.

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