27 August 2009 13:03

The half-year results feature a solid operating performance and high quality real estate portfolio

  • Total revenues: €60.29 million (+32.38% vs. first half 2008)
  • Ebitda: €36.99 million (+32.69% vs. first half 2008)
  • Net profit: €7.13 million (-79.17% vs. €34.22 million in first half 2008)
  • Net profit adjusted:€ 16.9 million (+35.9% vs.12.4 million in first half 2008)
  • Net debt: €897,99 million  (€733,90 million at 31 December 2008)
  • Market Value at 30 June 2009: €1,535.48 million (€1,423.45 million at 31 December 2008)


The Board of Directors of IGD SIIQ S.p.A., a company active in the retail real estate sector and listed on the STAR segment of the Italian Stock Exchange, met today to examine the consolidated results at 30 June 2009 which confirm that the Group’s growth is in line with the 2008-2012 business plan.

First half 2009 closed with total revenues of €60.29 million (mn), an increase of 32.38% with respect to the €45.54 mn recorded at 30 June 2008. Growth was driven by revenues from rental activities in Romania (+5.87 million when compared to first half 2008) and the recently opening shopping centers in Crema, Guidonia and Catania, not present in first half 2008, which contributed a total of €7.50 mn. Revenues from services, in line with the new openings, also recorded a positive trend rising 66.82% on first half 2008 to €3.51 mn.

Ebitdaamounted to €36.99 mn, an increase of 32.69% with respect to the €27.88 mn reported at the end of June 2008.

Funds From Operations, an important indicator used to evaluate the performance of the Siiq or real estate investment trusts, amounted to €16.51 mn, an increase of 25.23% on the €13.18 mn recorded in first half 2008.

Ebit, which came in at €24.84 mn, fell by 30.56% when compared to the €35.77 mn reported at the end of June 2008 due to the unfavourable trend in the market value of Igd’s real estate portfolio. In first half 2009 there were, in fact, net writedowns of €11.78 mn on properties and current investments, compared with net revaluations of €8.09 mn in first half 2008.The amount of these write-downs, however, is modest when compared to the total value of Igd’s portfolio, testimony to the staying power of the Group’s real estate assets thanks to their quality and the correct mix.

Pre-tax profit amounted to €7.67 mn, a decline of 68.32% with respect to the €24.20 mn reported in first half  2008. Net profit amounted to €7.13 mn, a drop of 79.17% compared to €34.22 mn at the end of June 2008. Tax in the period reached €540,000, but is not comparable to the positive €10.02 million recorded in first half  2008 which reflected the reversal of deferred tax liabilities following the Parent Company’s election for treatment under the Siiq tax regime.

Net debt at 30 June 2009 amounted to €897,998 thousand, an increase of €164,093 thousand with respect to the figure at 31 December 2008 due to the acquisitions and investments made during the period, as well as the  €38,975 thousand increase in net working capital. The Gearing Ratio (debt to equity ratio), therefore, went from 0.99x at 31.12.2008 to 1.22x at  30.6.2009.

Based on CB Richard Ellis’s independent appraisal themarket valueat 30 June 2009 of the Igd Group’sreal estate portfolio,including 50% of the Rgd jv, was  €1,535.48 mn, compared to €1,423.45 mn at 31 December 2008. The increase is largely attributable to the newly acquired Guidonia shopping center.  On a like-for-like basis, the Group’s Italian real estate assets (excluding Rgd) fell by 0.82% to €986.32 mn while the value of the 16 properties in Romania fell by 3.55% with respect to the end of the previous half to €193 mn.

Claudio Albertini, Igd’s Chief Executive Officer, commented: “Growth in revenues and Ebitda of more than  30% are indicative of a group that is in growth also in this first half, thanks to the opening of new shopping centers and the continuous commitment to optimizing the management of operations which has proven to be a winning strategy.  It’s clear that the income statement this half reflects the negative change in the market value of the real estate portfolio but the change is limited,  – €11.8 mn, marginal when compared to the portfolio’s total value which at the end of June 2009 was more than €1.5 billion.”

The decrease in net profit with respect to the first half of the previous year – Albertini  continued – is also due to the positive effect of the reversal of deferred tax in 2008 following the Parent Company’s election for treatment under the SIIQ tax regime.  If we look at the normalized trend (the adjusted net profit), net the effects of the real estate valuations and the extraordinary tax effect in the first half of the prior year, net profit at 30 June 2009 would rise from € 7.1 mn to €16.9 mn, an increase of €4.5 mn (+35.9%) with respect to the first half 2008 result which, in turn, would drop from €34.2 mn to €12.4 mn.”

 “Over the next few months, which should continue to be difficult,  we will be able to count on, therefore, – Albertini continued – the high quality and solidity of the properties in our portfolio, as well as the visibility of the revenue streams/flows from rent. Furthermore, when compared to the peak of 1.5x provided in our business plan, our current gearing ratio of around 1.22x indicates that we also have congruous capacity to finance the investments in the pipeline 2008-2012.  Last but not least, the benefits of the Siiq regime are beginning to be felt. We are, therefore, in a position unique to the sector in Italy which we are committed to making the most of going forward.”