4 May 2023 11:44

Results for first quarter 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 31 March 2023 during a meeting chaired by Rossella Saoncella.


Message from the Chief Executive Officer, Claudio Albertini 

“Despite challenging external conditions, the good results confirm that IGD’s shopping center model continues to be resilient and attractive. The performances of our assets show a positive trend and further improvement in footfalls and retailers’ sales, with double-digit growth in almost all categories of merchandise.

In addition to the continuous work on asset management as per the Plan’s strategic guidelines, in the last few months we focused our efforts on refinancing maturities, through the first half of 2024, which we expect to finalize soon” Claudio Albertini, IGD’s Chief Executive Officer stated.




Despite what continued to be challenging external conditions, characterized by persistently high inflation and interest rates, as well as the conflict between Russia and Ukraine and the relative macroeconomic repercussions, in the first quarter of 2023 the Italian malls posted excellent operating performances: footfalls rose 9.4% against the first quarter of 2022 and the increase in retailers’ sales was even higher, reaching 12.7%.  There was significant, double-digit growth against 2022 in all the different categories of merchandise with the sole exception of electronics (-5.2%) in the wake of the particularly positive performances posted in 2021 and 2022. More in detail, excellent performances were posted by restaurants (+25.4%) and services (+10.1%), the categories hit the hardest by the pandemic in the last two years.  A good performance (5.2% higher than in the first quarter of 2022) was also recorded by the Group’s hypermarkets and supermarkets, which continue to act as anchor tenants for the shopping centers.

Occupancy continued to be high, reaching 95.3% at 31 March 2023, an increase of 52 bps compared to 31 March 2022 and down slightly (39 bps) with respect to 31 December 2022, due to a few strategic vacancies which are currently being remarketed.

Commercial activity continued in the first 3 months of the year: a total of 54 leases were signed (2.4% of the Group’s total rent) comprising renewals (39) and turnover (15). There was a downside of 4.5% (the figure updated in light of negotiations currently underway comes to -2.2%) on contracts that in 2022 increased by approximately 9% due to indexation.

Rent collection reached roughly 90% in the first quarter of 2023.



Occupancy was 97%, an increase of 291 bps compared to 31 March 2022, but 101 bps lower than at 31 December 2022. The decrease against year-end 2022 is due primarily to three exits, amounting to around 1,200 square meters, at the Buzau, Turda and Alexandria centers.  Pre-letting is, however, already at an advanced stage.

Commercial activity continued in the quarter and 180 leases were signed comprising renewals (112) and turnover (68), at rents which were largely stable.

Rent collection reached roughly 90% in the first quarter of 2023.



Rental income came to €34.7 million, an increase of 2.3% compared to the same period of the prior year.

More in detail, the increase in Italy is explained by the positive impact of leasing activities and adjustments for inflation (+€1.9 million for malls and +€0.3 million for hypermarkets), partially offset by temporary discounts by around €0.4 million and a slight increase in vacancies in the reporting period.  Revenues for temporary spaces were higher (€0.1 mn).  Romania made a positive contribution of +4.4% attributable to indexing and lower temporary discounts.

Core business Ebitda rose +2.5% to €26.8 million, with an EBITDA margin of 73.2%.  The freehold margin (relative to freehold properties) reached 75.5%.

Financial charges amounted to €9.2 million which, net of the accounting impact of IFRS 16 and non-recurring expenses, were 22% higher than in the same period of the prior year. The change stems mainly from higher costs linked to the €215 million green loan and a new €20.9 mn loan, guaranteed by SACE, with higher interest rates compared to the average rates recorded in the previous years.

Funds from Operations (FFO) amounted to €15.8 million, down slightly (-5.6%) compared to 31 March 2022 due to the increase in financial charges described above.



Investments amounted to around €4.5 million in 1Q2023, explained mainly by capex in Italy (€3.1 mn).  The remainder was invested in the Porta a Mare project and capex in Romania.

Work continued on the Officine Storiche section of the mixed-use Porta a Mare project in Livorno which is expected to be inaugurated in September 2023: 16,000 square meters of retail space has already been almost entirely pre-let.  In the first quarter 8 residential units were also sold with a cash-in for IGD of around €4.2 million and 7 binding offers are waiting to be closed.  Out of a total of 42 units, only 10 have yet to be sold.

Work will begin shortly on the complete restyling of the mall, façade and parking at Centro Leonardo in Imola.



The excellent performances recorded in the first quarter include two standouts, the Puntadiferro center in Forlì and Tiburtino in Rome, both subject to an effective review of the merchandising and tenant mix in 2022 which can now be seen in the results.

At Puntadiferro it became necessary to revisit the merchandising and tenant mix including due to the extensive development of the surrounding area where a retail park, with an offering which complements the center’s, will be inaugurated. IGD worked to remodel the food court in the mall (with the introduction of healthy and traditional food purveyors), update the merchandising mix with higher profile and more attractive brands, as well as increase the availability of personal services. At 31 March 2023 the occupancy was very high at around 97% (it was around 85% at year-end 2021) and the center recorded excellent operating performances with footfalls and retailers’ sales up 11.7% and 10.4%, respectively, compared to the first 3 months of 2022 (partial feedback as a few stores just opened).

The hypermarket at the Tiburtino center was remodeled which led to the expansion of the mall and a revision of the merchandising and tenant mix in order to make the center more attractive and competitive. The offering of the food court was expanded, as was the “home care” category, and well known domestic and international brands were added.  As a result of all of this the center’s occupancy at 31 March 2023 was very high, coming in at around 97.3% compared to 89.1% at year-end 2021 (including vacant spaces created as a result of the remodeling of the hypermarket), and, above all, excellent operating results were recorded with footfalls and retailers’ sales up 15.3% and 19.3%, respectively, compared to the first 3 months of 2022.



The average cost of debt reached 3.18% at the end of March 2023, due mainly to the two loans closed in the second half of 2022 at a cost which was higher than IGD’s average cost of debt in 2022. The interest cover ratio or ICR came to 3.0x.

The net financial debt came to €966.34 million, approximately €11 million lower than at year-end 2022 due to the cash flow generated in the first quarter of 2023. The Loan-to-Value was also lower at 45.3%.

 The current goal for financial management is to finalize a loan of between €225 and €250 million with a pool of banks which will be used to refinance the maturities through first half 2024.

The next sizeable maturity to refinance will be the €400 million bond which expires in November 2024.



As disclosed on 23 February 2023, the proposed dividend (as subsequently approved by the Annual General Meeting held on 13 April) is equal to €0.30 per share (total dividend to be distributed amounts to €33.1 mn) which represents a payout ratio on the year-end 2022 FFO of 49.3%.

The shares will go ex-div on 8 May 2023 (detachment of coupon n. 6) and the dividend will be payable as from 10 May 2023.  In accordance with Art. 83- quater of Legislative Decree n.58 of 24 February 1998, the shareholders of IGD at 9 May 2023 (record date) will be entitled to receive the dividend.