8 November 2023 12:23

Results as at 30 September 2023. Portfolio’s solid operating performances confirmed

  • Retailers’ sales at Italian malls +6.2%, footfalls +5.4% vs 9M 2022 and occupancy at 95.3%; occupancy in Romania at 97.1% 
  • Rent collection 9M2023: in Italy > 94%; in Romania c. 96%; rent collection for FY 2022 at nearly 100% 
  • Net rental income higher: €88.4 million, +5.7% vs 9M 2022 (+8.1% like-for-like) 
  • Core business Ebitda up: €81.0 million, +6.7% vs 9M 2022 (Ebitda margin 72.9%) 
  • FFO: €44.4 million, -11.9% vs 9M 2022, impacted by the higher cost of debt


 Bologna, 8 November 2023. Today the Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD” or the “Company”) examined and approved the interim financial report as at 30 September 2023 during a meeting chaired by Rossella Saoncella.


Message from the Chief Executive Officer, Claudio Albertini 

“The third quarter, once again, provided us with a number of confirmations attesting to the solid performance of our business and that of our tenants. The operating margin is positive and higher than our forecasts at the beginning of the year, while the higher cost of debt impacted the Funds from Operations. We had an important objective in the second half of the year, namely the early refinancing of the bond maturing in November 2024 and on 5 October we launched a complex transaction capable of managing the entire matter. We are convinced that the investors have understood the reasoning underlying the transaction, as well as its terms and conditions, and we are, therefore, very confident that we will be reporting a positive result next November 14th.”




The solid operating performances of the Italian malls were confirmed in the third quarter of 2023 with footfalls up 3.3% and tenants’ sales 3.9% higher than in the third quarter of 2022, despite external conditions which continued to be challenging for consumers, with inflation and interest rates high for the entire reporting period.

Thanks to these results, the cumulative figure for the first nine months of 2023 was excellent with footfalls rising +5.4% and tenants’ sales up +6.2%.

Looking at the different merchandise categories, all of them were higher with respect to the first nine months of 2022, with the exception of electronics which was down slightly (-1.4%), but which had posted very positive results in 2022 (+9.9% vs 2019; +2.2% vs 2021); restaurants, one of the categories hit the hardest by the pandemic, reported a noteworthy increase of +16.5%.

The Group’s freehold hypermarkets and supermarkets also recorded good performances, rising 4.9% in the first nine months of the year compared to the same period of 2022.

IGD’s commercial activity continued in the reporting period: a total of 135 leases have been signed since the beginning of the year (around 6.5% of the Group’s total rent) comprising renewals (93) and turnover (42) with an average  downside of 1.4%, an improvement with respect to the downside recorded at 30 June of -4.4%; when looking at this figure the impact of inflation indexing, which reached +7% in the nine months,  should also be taken into account. Thanks also to this activity, the occupancy of the Italian portfolio remained high at 95.3%, an increase of 10bps compared to the first half.

Rent collection for the first nine months of 2023 was also excellent, reaching over 94% at 7 November, while the outstanding for 2022 has been almost entirely collected.



The operating performances of the Winmarkt shopping malls were positive: the occupancy rate at 30 September 2023 was 97.1%, 30bps higher than at 30 June 2023 and the results for rent collection were also excellent, coming in at 96%[1] in the first nine months of 2023, while the outstanding for 2022 has been almost entirely collected.

The intense commercial activity continued in Romania also where, moreover, the partnerships with a few premiere international brands, like StayFitGym and Sinsay, were strengthened in 2023 with the opening of 3 and 2 locations, respectively, in the Winmarkt malls.

This activity resulted in the signing of 404 leases comprising renewals (288) and turnover (116), with an upside of +2.3%.



In the first nine months of 2023 gross rental income came to €105.4 million, an increase of 3.2% compared to the same period of the prior year. More in detail, this increase is attributable to:

  • for around €4.5 million, higher revenues like-for-like in Italy (+4.9%). In addition to the pre-lets and openings, the increase is attributable to inflation indexing (€5.1 million), partially offset by higher discounts and the turnover of a few tenants, above all in the last three months, which will begin producing revenue as of the fourth quarter or in 2024; variable and temporary revenues also increased;
  • for around €0.4 million, higher revenues like-for-like in Romania (+6.1%);
  • for around -€1.6 million lower revenue not like-for-like.

Net rental income amounted to €88.4 million, an increase of +5.7% compared to the same period of the previous year, while like-for-like the figure is +8.1% higher.

Core business Ebitda rose +6.7% to €81.0 million, with the EBITDA margin at 72.9%. The freehold margin (relative to freehold properties) was also higher, coming in at 75.0%.

Financial charges amounted to -€31.1 million which, net of the accounting impact of IFRS 16 and non-recurring expenses, were 55.2% more than at 30 September 2022 due to the higher average cost of the most recent loans obtained.

 Funds from Operations (FFO) amounted to €44.4 million, a decrease of – 11.9% compared to 30 September 2022 due to higher financial charges.



In the first 9 months of 2023 IGD continued with its ESG investment program focused on the energy efficiency of its properties; to date 10 solar energy systems have been installed: 8 in Italy, where shortly a new system at the La Favorita Center (Mantua) will be added, and 2 in Romania, where work on the installation of 2 other systems is underway which will become operational between the end of 2023 and 2024. The energy produced by the systems already in operation (including the one at La Favorita) reached 3,450 mw which covered approximately 6.3% of the electricity consumed. IGD invested approximately €1 million in energy efficiencies in the first nine months of the year.

The path leading to the Esp center in Ravenna becoming IGD’s first Zero carbon emissions” property has begun: work on substituting the traditional heating/cooling systems at all the stores and the mall’s common areas with highly energy efficient equipment with a view to greater energy savings and, consequently, lower costs for IGD and its tenants will begin over the next few months. Subsequently, other strategies shaped by “Nature Based Solutions” will be implemented including the reduction of the heat island effects, absorption of CO2, biodiversity and precipitation management in order to reduce the impact of stormwater runoff.

In September, EPRA (European Public Real Estate Association) awarded IGD the EPRA sBPR Gold Award for the ninth year in a row and the EPRA BPR Gold for the sixth year in a row, recognition of the transparency and completeness of IGD’s sustainability and financial reporting, respectively.

As further testimony to the Company’s transparent approach to sustainability topics, beginning in 2023 IGD is also part of GRESB, an independent organization which assesses the ESG performance of its members; to date the Company is also subject to unsolicited ESG ratings by 12 specialized global agencies.



On 14 September the retail section of Officine Storiche, part of the Porta a Mare project in Livorno, was inaugurated. This section spans an area of more than 16,000 square meters dedicated to entertainment, restaurants, leisure and shopping which IGD had been working on since 2019, including interruptions and delays caused by the Covid-19 pandemic. Thanks to the intense marketing and pre-letting carried out over the last few months, the occupancy at the mall has reached an impressive 95% and in 2024 Primark, an important Irish fast fashion chain, will be opening its second store in Tuscany at Officine Storiche.

The inauguration of the mall was a huge success with more than 110,000 footfalls in the first 4 days of operation, while in the first 45 days following the opening there were around 440,000 visitors.

In addition to the retail section, the development also comprises 42 residential units, of which 29 already sold and 3 subject to binding offers, for an expected cash in by year-end of approximately €7 million.

The completion of Officine Storiche marks the conclusion of IGD’s new development pipeline, while work on the restyling of Centro Leonardo (Imola) and the refurbishment of the center in Lungo Savio (Cesena), following the flood in May, continue; the restyling of the Porto Grande Shopping Center was completed and will be inaugurated on 23 November.



The average cost of debt reached 3.48% at the end of September 2023, higher than the 3.22% recorded at 30 June 2023, while the interest cover ratio or ICR came to 2.7x, slightly lower with respect to the first half of 2023.

The net financial debt came to €970.86 million (€947.84 million adj. ex IFRS16), while the gearing ratio came to 0.93x. The Loan- to-Value reached 47.2% (47.7% recorded at the end of June 2023).

In May IGD obtained a €250 million Green secured facility (duration 5 years), the second tranche (€120 million) of which will be drawn on 9 November 2023 and utilized to cover the €100 million private placement maturing in January 2024. Furthermore, consistent with its financial strategy to refinance well in advance, on 5 October 2023 IGD launched a transaction aimed at the complete refinancing of the €400 million bond due November 2024. This transaction comprises an exchange offer (and repurchase[2]) of the existing notes and a consent solicitation the purpose of which is to align the maturity and the economic terms and conditions of the existing bond with those of the new bond[3]. The new senior unsubordinated and non-convertible bond will have an average coupon of 7% with a step-up structure and would guarantee an average yield of 8.5% (based on an above par repayment mechanism). Moreover, the terms and conditions of the New Notes will provide for certain undertakings by the Company, additional to and different from those that will be provided for the Existing Notes, including, inter alia, the blocking of the dividend distribution (or the making of other forms of distributions) in excess of what is necessary in order to comply with the rules applicable to the Company as a listed real estate investment company.[4]

The exchange offer, tender offer and consent solicitation period started on 5 October 2023 and will end on 10 November 2023 at 5:00 p.m.; the Meeting of the Securityholders, at the end of which the final results of the transaction will be disclosed to the market, has been convened on 14 November.

If the transaction is successful, IGD will have covered financial maturities for all of 2024, with the next significant maturities in 2027; this would provide the Company with 3 years to work on the optimization of the structure and average cost of debt.


[1] Figure updated at 07/11/2023
[2] Provided that a specified amount resulting from such repurchase is reinvested in the purchase of the New Notes
[3] The completion of the exchange offer, the tender offer and the issue of the new bond is subject to the approval of the consent solicitation
[4] For more information on the structure of the new bond and further details on the transaction please refer to the official documentation published on and available at: https://www.gruppoigd.it/consent-solicitation-exchange-and-tender-offer-2023