Today the Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD”or the “Company”), a 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 2013.

“The consolidated results achieved by the IGD Group in the first quarter of 2013, despite persistently critical global market conditions and consumer trends, are testimony to the solidity of our business model” Claudio Albertini, IGD – Immobiliare Grande Distribuzione SIIQ S.p.A.’s Chief Executive Officer stated. “Our objective is to continue to guarantee the sustainability of our tenants, particularly during this delicate phase of the market, and to strengthen our financial structure as demonstrated by the transactions already underway”.

Principal consolidated results at 31 March 2013

In first quarter 2013 the IGD Group’s consolidated operating revenue  amounted to €30.4 million, largely in line with the same period of the prior year. More in detail, core business rental income fell by  0.9% with respect to the same period in 2012 due, primarily, to the decrease in like-for-like revenue (0.4%). The malls were the hardest hit by the current economic climate (-3.2%), which resulted in an increase in average vacancy rates. The highest growth in revenue was recorded in the Conè, Katanè and Fonti del Corallo centers. The revenue in Romania, rather, dropped (-4.9%), due primarily to the planned vacancies and the full impact of the renewal downside recorded in second half 2012. Revenue from services fell by 4.0%, while rental income generated by the Porta a Mare project reached €19 thousand, attributable primarily to the rental of an office unit in Palazzo Orlando in Livorno through the end of 2012.

The IGD Group’s core business EBITDA in first quarter 2013 amounted to €21.3 million, a decrease of 3.9% with respect to the €22.2 million recorded in first quarter 2012.

Direct costs, pertaining to the core business and including personnel expenses, amounted to €6.8 million, an increase of 7.2% with respect to the same period in the prior year. This change is largely due to the rise in charges linked to the introduction of IMU calculated based on the rates in effect at December 2012 (only estimated in first quarter 2012 based on provisions that were not definitive) which represent approximately 27% of the total direct costs (versus approximately 23% in first quarter 2012), and the increase in condominium charges. These costs as a percentage of revenue reached 22.4%, an increase with respect to the prior year.

The core business EBITDA came in at 70.1%, down with respect to the same period in 2012 due to the more than proportional increase in direct costs with respect to revenue.

The tax burden, current and deferred, at 31 March 2013 amounted to €700 million, versus €733 million in first quarter 2012, reflecting a tax rate of 7.9% compared to 8.1% at 31 March 2012.

The Group’s portion of net profit in first quarter 2013 amounted to €8.2million, a slight drop (1.41%) with respect to the €8.4 million recorded in first quarter 2012, explained by the combined effect of decreased revenue and higher costs.

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], fell less than net profit reaching €9.5 million, basically in line with the same period of the prior year (-0.1%).

At the end of first quarter 2013 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 2012.

The IGD Group’s net debt at 31 March 2013 amounted to €1,085.9 million, down with respect to the €1,089.6 million recorded at 31 December 2012.

^[1] It 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.