7 August 2018 16:08

FFO rises 22% in the first half of 2018


The brilliant operating performance recorded in the first half of 2018 reflects an 8.4% increase in rental income, as well as improved margins with the core business EBITDA margin coming in at 72.1% compared to 69.8% in the first semester of the prior year.

The growth in FFO, which reached €38.9 million at 30 June 2018, benefitted from the contribution of core business EBITDA which was €5.6 million higher than in the prior year and the drop in financial expense of €1.5 million attributable to Liability Management which made it possible to lower the cost of debt to 2.7%, even though average net debt was higher in the first half of 2018 (€1, 080.36 million) than in the first half of 2017 (€1, 059.67 million).

The 22% rise in FFO recorded in the half suggests that the growth target for FY 2018, of between +18% and +20%, has basically been reached, taking into account also the contribution to cash flow made since 18 April 2018 by the new portfolio purchased from ECP. IGD’s FY 2018 guidance for FFO was, therefore, revised: currently the Company expects to see an increase in FFO of at least 20% in 2018.

Net profit, which amounted to €34.8 million in the half, was down by €14.1 million compared to the first half of the prior year as a result primarily of the lack of fair value adjustments which had a positive impact of €18.9 million in the first half of 2017. In the first half of 2018 these adjustments had a slightly negative impact (-€2.6 million) which is, however, immaterial given the size of the portfolio which was valued at €2,428.8 million at 30 June 2018.

Based on the independent appraisals the Loan-to-Value was 46.4% at 30 June 2018, well below the 50% threshold needed to maintain the ‘investment grade’ rating of IGD’s debt.


Core Business EBITDA €55.6 mn +11.3%
Core Business EBITDA margin 72.1% +230 bps
Group Net Profit €38.4 mn -28.9%
Funds From Operation (FFO) €38.9 mn +22.0%
Loan to Value 46.4% < highest threesold 50%