10 May 2012 13:36
Price Sensitive economic-financial results

The Board of Directors approves the Interim Management Statement at 31 March 2012

The consolidated results for the core business show growth in the first quarter of 2012 (vs. the first quarter of 2011), despite the difficult macroeconomic environment:

  • Revenue from core business: €30.9 million euro (an increase of 4.2% with respect to the €29.7 million recorded in first quarter 2011)
  • Like-for-like growth in Italy: +1.9%
  • Core business EBITDA: €22.2 million  (an increase of 1.6% compared to the €21.8 million reported at 31 March 2011)
  • The Group’s portion of net profit for the period: €8.4 million (versus €10.4 million at 31 March 2011 which is explained primarily by the financing supporting the investments in development made by the Group in 2011)
  • Net financial debt: €1.124 billion (an improvement with respect to the €1.129 billion posted at 31 December 2011); “adjusted gearing” came in at 1.36, an improvement with respect to the 1.38 recorded at  31 December 2011)

Today the Board of Directors of IGD -Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD”or the “Company”), leading owner and manager of retail shopping centers in Italy and listed on the STAR segment of the Italian Stock Exchange, in a meeting chaired by Gilberto Coffari, examined and approved  the Interim Management Statement at 31 March 2012.

“The consolidated results for the Group’s core business at 31 March 2012, despite a marked worsening of the macroeconomic environment and consumption, show growth in terms of both the key economic indicators, such as revenue and Ebitda, and the financial indicators, which includes an improved gearing.  Moreover, the net financial charges, which rose by approximately €2 million, reflect the investments of more than €100 million made in the first part of 2011 and the tightening credit markets”. Claudio Albertini, IGD – Immobiliare Grande Distribuzione SIIQ S.p.A.’s Chief Executive Officer stated. “We will continue to pay close attention to the sustainability of our tenants and our commitment to maintain a balanced financial structure oriented toward the long term ”.

 

Principal consolidated results at 31 March 2012

In first quarter 2012 the IGD Group’s revenue from core business amounted to  €30.9 million, an increase of  4.2%with respect to the €29.7 million posted at 31 March 2011 thanks to the positive impact of the new acquisitions made after the close of first quarter 2011.  More in detail, rental income rose 4.2% with respect to 31 March 2011, while revenue from services increased 2.8%. There aren’t revenues from trading.

The like-for-like growth in revenue from properties in Italy at 31 March 2012 reached €0.5 million or 1.9%.

The IGD Group’score business EBITDA at 31 March 2012 amounted to €22.2 million,a rise of 1.6% compared to the €21.8 million recorded in first quarter 2011.

Direct costs, pertaining to the core business and including personnel expenses, amounted to €6.5 million, an increase of 13.4% with respect to the same period in the prior year. This change is largely due to the increase in provisions for doubtful accounts and in expected charges linked to the introduction of IMU (a new property tax which will substitute ICI).  These costs as a percentage of revenue were at 21.1%.General expenses for the core business, including payroll costs at headquarters, amounted to €2.2 million, versus  €2.1 million at  31 March 2011.  This increase is explained primarily by a rise in personnel expense linked to organizational changes.  General expenses as a percentage of core business revenue reached  7.2%.

The core business EBITDA came in at 71.7%, down with respect to the 73.5% recorded in first quarter 2011 due to the more than proportional increase in direct costs with respect to revenue.

The tax burden, current and deferred, at 31 March 2012 amounted to €0.7 million, reflecting a tax rate of 8.1% compared to 7.4% in the same period of the prior year. The increase of 0.7%  is primarily due to the drop in tax deductible expenses.

The Group’s portion of net profit at 31 March 2012 amounted to €8.4million, compared to €10.4 million in first quarter 2011, explained by the impact of the increase in financial charges linked to the loans supporting the investments made in development by the Group in  2011.

The Funds from Operations (FFO), an indicator used widely in the real estate market to define the cash flow generated by a company’s core business[1], dropped from the €11.1 million posted at 31 March 2011 to approximately €9.5 million at 31 March 2012.

At the end of first quarter 2012 the adjusted gearing ratio, calculated as the ratio of net adjusted financial debt to net adjusted equity  (which excludes the accounting (non-monetary) effects on fair value recognition of derivatives), came in at 1.36, an improvement with respect to the 1.38 recorded at 31 December 2011.  The average cost of debt was 4.4 %  compared to  4.1% at 31 December 2011.

The IGD Group’snet debtat 31 March 2012 amounted to €1.124 billion,a slight improvement with respect to €1.129 billion recorded at 31 December 2011.

Today the second Corporate Sustainability Report for FY 2011 was also presented to the Board of Directors.  The Corporate Sustainability will be made available on the Company’s website:  www.gruppoigd.it/Sostenibilità

[1] This data is calculated based on pre-tax profit, net of non-monetary items (deferred tax, writedowns, fair value adjustments, amortization, depreciation and other), as well as the impact of income from equity investments and revenue from property sales. Please note that through 31 December 2011 this figure included the extraordinary items and the gains from disposals,  while in 2012 these items were excluded in order to highlight the revenue generated by the core business (which is the primary source of distributable income). The figure for first quarter 2011 was also adjusted.