Today the Board of Directors of IGD -Immobiliare Grande Distribuzione SIIQ S.p.A.(“IGD”or the “Company”), one of Italy’s leading owners and managers of retail shopping centers and listed on the STAR segment of the Italian Stock Exchange, examined and approved  the Interim Management Statement at 31 March 2014 during a meeting chaired by Gilberto Coffari,.

“In what is still a critical macroeconomic environment, albeit with signs of a slight recovery which have yet to stabilize, in the first few months of 2014 IGD took the steps needed to achieve the targets outlined in the 2014-2016 Business Plan confirming the validity of the business model” Claudio Albertini, IGD – Immobiliare Grande Distribuzione SIIQ S.p.A.’s Chief Executive Officer stated.

Principal consolidated results at 31 March 2014

In first quarter 2014 the IGD Group’sconsolidated operating revenueamounted to €31million, an increase of 1.9% with respect to the same period of the prior year. The core business rental income was accompanied by the revenue of €64 thousand generated by the Porta a Mare project in Livorno as a result of the rental of three offices in Palazzo Orlando. With regard to the revenue from trading generated by the Porta a Mare project, 4 residential units and appurtenances were sold for €1.3 million.

Rental income fell with respect to the same period 2013 by 2.4%. The change is explained by:

• An increase in like-for-like revenue net of the planned or strategic vacancies of 0.7%. Hypermarkets posted growth of +1.4% due to indexing and the full impact of rent step-ups for recently opened hypermarkets, as did the malls (+0.2%), particularly Tiburtino, Millennium, ESP and Le Maioliche. An average downside of -8% (on 57 contracts which includes both renewals and turnover) was recorded in the period due primarily to the turnover of two mid-size stores (net of which the downside reaches -0.9%);
• other decreases, attributable primarily to the drop in revenue linked to strategic vacancies of the like-for-like perimeter (vacant spaces already pre-let for which new layouts are being developed), partially offset by the increase in revenue registered by the Darsena City mall and other minor changes;
• a drop in like-for-like revenue in Romania, due to the downside of the 2013 contracts, already recorded at year-end and the recommercialization underway (exit of a bank 3Q 2013) and an increased number of vacancies.The planned vacancies  (necessary in order to proceed with the investment plan) caused revenue to drop by € 241 thousand;
• increase in rental income relative to the Porta a Mare project as a result of the rental of office units.

Revenue from servicesincreased (+1.4%) with respect to first quarter 2013.

Direct costspertaining to the core business and including personnel expenses amounted to €7.1 million, an increase of 4.9% with respect to the same period of the prior year. The change is almost entirely attributable to the increase in rents and lease payments following the sale of the Le Fonti del Corallo mall in Livorno which is now under management based on a long-term lease agreement entered into with the owner. The figure also reflects the rise in property tax of €1.9 million as a result of the higher coefficient applied to large retail areas (category D8) which was not considered in first quarter 2013. This figure represents approximately 25.1% of the total direct costs, an increase with respect to the prior year

General expenses (including payroll costs at headquarters), reached €2.4 million, an increase with respect to the €2.3 million posted in first quarter 2013, and 8.1% as a percentage of revenue.

The IGD Group’s core business EBITDA amounted to €20.1 million in first quarter 2014.

The core business EBITDA Margin came to 67.8%,down with respect to the same period 2013, due to a more than proportionate increase in direct costs (also due to the greater amount of rents payable)  with respect to the trend in revenue (which was affected by the strategic vacancies). Ebitda margin from freehold management came to 78,3%.

Ebit amounted to €19.3 million, a drop of 6.2% due to both a drop in Ebitda and the negative change in fair value deriving from the extraordinary maintenance capitalized: amortization and depreciation were basically unchanged.

The tax burden, current and deferred, at 31 March 2013 amounted to €1.4 million, an increase with respect to the figures posted at 31 March 2013, due primarily to the sales made at Porta a Mare in the first quarter which were not present in the same period of the prior year.

The Group’s portion ofnet profitin first quarter 2014 amounted to €6.2million, down 24.8% with respect to first quarter 2013 (€8.2million), explained by the combined effect of decreased revenue and higher costs.

Core business funds from operations (FFO)amounted to €8.7 million, down with respect to the same period in the prior year (€9.8 million), but less than the decline in net profit.

At the end of first quarter 2014 the gearing ratio, calculated as the ratio of net adjusted financial debt to net adjusted equity (which excludes the accounting and non-monetary effects of the CFH reserve), came in at1.27, a noticeable improvement with respect to the 1.38 recorded at 31 December 2013, thanks, in particular, to the transactions completed in the quarter which included the sale of treasury shares and the disposal of the “Fonti del Corallo” mall in Livorno.

The IGD Group’snet debtat 31 March 2014 amounted to €1,022.4million, a decided improvement with respect to the €1,084.9 million recorded at 31 December 2013.

Claudio Albertini – Chief Executive Officer – and the management of IGD will hold a conference call, followed by a Q&A session, to present the results for first quarter 2014 tomorrow, 9 May 2014 at 10:00 a.m..