19 November 2019 11:30

Progress in operations and financial management drive FFO growth

  • The €3 million increase in FFO against the same period 2018 is explained for €2 million by higher core business EBITDA and for almost €1 million by improved financial management.
  • The expansion of IGD’s scope of consolidation through the acquisitions made in 2018 was key to revenue growth.
  • Net profit reflects the negative impact of the changes in fair value recorded at 30 June 2019.
  • Thanks to a decrease in net financial debt, the Loan-to-Value improved in the third quarter and fell to 47.8% at the end of September 2019.


Rental income increased 2.7% in the first nine months of 2019 to €116.0 million driven almost exclusively by the contribution for the entire period of the assets that became part of IGD’s perimeter in April and May 2018: the portfolio acquired from Eurocommercial Properties and the extension of the shopping center in Crema. Like-for-like, the performance was basically unchanged (+0.1%), with Italian malls down slightly due to strategic vacancies offset by the increase in rental income recorded in Romania (+2.7%).

Core business EBITDA rose 11.0% (or +2.0% ex IFRS 16) to €94.4 million. The core business EBITDA margin came to 78.1%, 580 bps higher than in the same period 2018.

Net financial expense fell by around €1 million, net IFRS16 application, thanks above all to the bond repayment of €124.9 million made on January 4th.

FFO, therefore, posted a positive performance, rising 5.6% against the first nine months of 2018 to €62.9 million.

The Group’s net profit reached €22.4 million, lower than the €52.4 million recorded in the first nine months of 2018 due mainly to the change in writedowns and fair value adjustments which were negative for €46.3 million, versus negative €4.8 million in the first nine months of 2018.

The net financial debt was €1,174.4 million at 30 September 2019, down by 0.9% compared to 30 June 2019. The loan-to-value, therefore, went from 48.2% in the first half of 2019 to 47.8% at the end of September (46.7% ex IFRS16).


Core business EBITDA   € 94.4 mn +11.0%
Core business EBITDA margin
 78.1% +580 bps
Funds From Operations (FFO)  € 62.9 mn +5.6%
Loan-to-Value  47.8% < max level of 50%
Net Rental Income  € 102.2 mn +10.7%