14 May 2019 17:43

Net profit and FFO considerable growth

With the FFO recorded in the first quarter, IGD demonstrates to be on the track

The results for the first quarter of 2019 point to a solid operating performance: net rental income reached €34.2 million, an increase of 9.2% adj ex IFRS16[1] compared to the same period 2018 which fueled a 8% adj ex IFRS16 increase in core business EBITDA (€31.2 million in the first quarter of 2019). The EBITDA margin came in at 77.3%, while the freehold EBITDA margin reached 79.5%.

FFO rose 13.4% compared to 2018, a pace that gives visibility to the guidance calling for a yearly increase in FFO of between 6 and 7%. This guidance was announced on 26 February and confirmed after S&P Global Ratings assigned its rating. The performance of FFO reflects the increase in EBITDA, but also the decrease in financial expense which improved by €0.2 million thanks to the lower cost of debt (which went from 2.75% in the first quarter of 2018 to 2.42%), and despite the increase in average net financial debt which came to €1,108.33 million in the first three months of 2019 versus €1,054.50 million in the first quarter of 2018.

The Group’s net profit amounted to €18 million, 8.0% higher than the €16.7 million recorded in the same period 2018.

The Loan-to-Value was also convincing, falling to 46.2%, which is well below the 50% level.

When looking at the results for the first quarter of 2019 the impact of the new accounting standard IFRS16, effective as of 1 January 2019, should not be forgotten. More specifically, while the rents payable on leasehold properties are no longer recognized, higher fair value adjustments and, in part, higher financial charges are. Lastly, the LTV calculated without applying IFRS16 comes to 45%.


Core business EBITDA  € 31.2 mn +8% adj ex IFRS16
Core business EBITDA margin
 77.3% -90 bps
Group net profit  € 18.0 mn +8.0%
Funds From Operations (FFO)  € 20.8 mn +13.4%
Loan-to-Value  46.2%
Core business revenues  € 34.2 mn +9.2% adj ex IFRS16


[1] Adj ex IFRS16: for the sake of comparability, the 2019 figure was restated excluding the impact of IFRS16 application