First quarter 2025 results
- In Italy: Footfall + 1.3%; Mall tenants’ sales: -0.4%; Rental uplift +0.7%
- Net Rental Income Freehold: 25.1 million euros (+2.4%, like for like)
- Core Business Ebitda: 24.8 million euros (+2,1%, like for like)
- Funds from Operations (FFO): 2 million euros
- Loan to value: 44.2%; -20bps vs 31 December 2024
- Approved by the AGM of 16 April 2025 the distribution of a €0.10 per share dividend.
Bologna, 6 May 2025. Earlier today, the Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD” or the “Company”) chaired by Antonio Rizzi, examined and approved the Interim Financial Report at 31 March 2025.
Message from the CEO, Roberto Zoia
“The results for the first quarter of 2025 show the first, significant effects of the refinancing announced in February, which, in addition to the extension of the average maturity terms, lead to a reduction of the debt’s weighted average interest rate, dropped to date to 5.6%. We are closely monitoring the capital market to take advantage of any additional opportunities that could help us pursue our cost of debt reduction strategy. We continue to explore opportunities for the disposal of non-core assets, following the significant sale in February of a shopping center from the Romanian portfolio. Our core business growth path, one of the strategic objectives of our Business Plan, is showing increasingly visible results quarter on quarter. We marked the positive performance of operating business, showing a growth in like for like net rental revenues and an increase in the occupancy rate of our malls.”
OPERATING PERFORMANCE – ITALY
In the first quarter of 2025, Gruppo IGD’s shopping centers recorded a footfall increase of +1.3% compared to the first 3 months of 2024, while tenants’ turnover remained substantially stable at -0.4%. The Group’s freehold hypermarkets and supermarkets ended the year with a performance of -1.7%. These trends were also clearly influenced by a “calendar effect”, considering that February was one day shorter in 2025 than 2024 (29 days in 2024 and 28 in 2025), and that last year Easter fell in March.
LEASING ACTIVITIES
During the first quarter of 2025, IGD continued its leasing activity, which proved to be effective, as reflected in the results: at 31 March 2025, the mall occupancy rate was 95.49%, confirming an ongoing increase trend over the quarters (+82 bps on 31 December 2024; +133 bps vs 31 March 2024); the average occupancy rate for malls plus hypermarkets was 95.95%, also up +74 bps compared to 31 December 2024 (+119 bps on 31 March 2024).
The first three months of the year were characterised by several important openings, which proved the attractiveness of the IGD’s portfolio for international anchor tenants: Ikea entered the IGD network by opening its first Plan & Order point at La Favorita shopping mall (Mn), while Courir, a French sportswear and footwear brand, opened its first Italian store in Puntadiferro (Fc); JD Sports, another well-known sportswear and footwear brand, continued its expansion within the IGD network by inaugurating a new store at the ESP shopping centre (Ra).
During the quarter, 48 contracts were renegotiated, including 23 renewals and 25 turnovers, which led to an average rent increase of +0.7% on these contracts. The positive trend that began in 2024 noticeably continued: this was in fact the fourth consecutive quarter to record a rental uplift.
OPERATING PERFORMANCE – ROMANIA
The shopping malls of the Winmarkt portfolio recorded good operating performances: during the quarter, 57 contracts were signed, including 56 renewals and 1 turnover, and with a significant +13.5% increase in net rents on renewals in connection with the operation to reduce the costs incurred by the owner. At 31 March 2025, the occupancy rate was 95.73%, a slight decrease (-10bps) on 31 December 2024.
ECONOMIC-FINANCIAL RESULTS
The net rental income from freehold property (i.e. not including leasehold property) amounted to €25.1 million, decreasing -12.8% compared to the same period the previous year due to the impact of the asset portfolio sale in April 2024 (the Food Portfolio). On a like-for-like basis the figure was +2.4% higher, thanks to an effective leasing activity.
Core business EBITDA stood at €24.8 million, down €3.8 million compared to the first quarter of 2024 following the sale mentioned above, while on a like-for-like basis it recorded a growth of +2.1%. Its incidence on gross revenue was 72.2%.
The result of the overall financial management was -17.8 million euros, lower by 0.7 million in respect of the first quarter of 2024 (3.9%). This result, adjusted for the charges accounted for in accordance with IFRS 16 and the non-recurring items related to the repayment of bonds and loans, was equal to -12.1 million euros, with an improvement of 3.7 million euros compared to the corresponding period of 2024 (23.4%). The reduction in recurring financial charges was mainly due to the significant improvement in the net financial position as a result of the disposals carried out in 2024 and 2025.
The Group closed the quarter with a net profit of 1.6 million euros, after accounting for depreciation/amortization, provisions and extraordinary charges for 4.9 million.
Funds from Operations (FFO) stood at €10.2 million, substantially in line with the first quarter of 2024 (-0.9%) despite the change in the scope of portfolio, which was compensated by lower recurrent financial charges.
ASSET MANAGEMENT ACTIVITIES
As part of the Porta a Mare Project in Livorno, 35 apartments were sold by the end of March 2025 within the Officine Storiche residential area; the remaining 7 units are expected to be sold during the year (three preliminary agreements have already been signed to date).
Also worth mentioning is the completion of the total restyling of the Coop Gruppo Radenza hypermarket inside the Katanè shopping centre (CT) and the opening of the new Sole365 hypermarket at Porte di Napoli.
With regard to disposal activities, the main event of the quarter was the sale of the first shopping centre included in the Romanian portfolio, on 14 February. The “Winmarkt Somes” shopping centre in Cluj was sold for a total amount of approximately 8.3 million euros, in line with the book value.
Negotiations are underway for the sale of other non-core assets for a further 12 million euros.
FINANCIAL STRUCTURE
A positive impact on the Group’s financial structure came from the secured refinancing operation for €615 million completed last 11 February. With the proceeds from this financing, IGD fully repaid the outstanding bonds, which were the most expensive instruments issued by the Company, on 4 March 2025.[1] Thanks to this operation, the weighted average interest rate at 31 March 2025 was equal to 5.60%, compared to an average cost of debt of 6.04% in 2024.
The refinancing also allowed the Company to cancel the previously existing concentration of financial maturities and extend the average duration of debt to 5.1 years (2.6 years at 31 December 2024).
With regard to other financial indicators, as of 31 March 2025, the Loan to Value ratio was 44.2%, down 20bps compared to 31 December 2024. Pursuing a further Loan To Value reduction continues to be one of our targets, as already communicated to the market.
The interest coverage ratio (ICR) was 2.0x as at 31 March 2025.
DIVIDENDS
The Annual General Meeting held on 16 April 2025 approved the distribution of a €0.10 dividend per share for fiscal year 2024, for a total amount of €11,034,190.30.
The dividend will be paid by detachment of coupon no. 7 on 12 May 2025 (ex-date) and starting from 14 May 2025.
Entitlement to the payment of the dividend will be determined by reference to the evidence of the intermediary’s accounts as provided for in Art. 83-quater, paragraph 3, of the TUF, at the end of the accounting day of 13 May 2025 (the record date), in accordance to Art. 83-terdecies of the TUF.
