2024 results
A YEAR OF GROWTH FOR IGD SHOPPING CENTERS
In Italy: Mall tenants’ sales +0.6%; footfalls +1.6%; rental uplift +4.0%
POSITIVE CORE BUSINESS PERFORMANCE
Net Rental Income: 113.7 million euros; +4.6% like for like vs 2023
CORE PORTFOLIO VALUE STABILISES
Core Italian portfolio market value: €1,537.9 million; in line with 2023 on a like-for-like basis
GROUP’S FINANCIAL LEVERAGE DECREASES
Loan to value down to 44.4% (-370bps vs 2023)
Funds from Operations: 35.6 million euros; +4.8% higher than FY2024 guidance
RETURN TO DIVIDEND
Proposed dividend of 0,10 euros per share
2025 FFO OUTLOOK
Expected FFO of approx. 38 million euros (+6.7% vs FY2024)
Bologna, 6 March 2025. Earlier today, in a meeting chaired by Antonio Rizzi, the Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD” or the “Company”) examined and approved the draft separate and consolidated financial statements at 31 December 2024.
Message from the CEO, Roberto Zoia
“We are glad to present to the market our 2024 full-year results unveiling the new logo, which expresses our strong will for growth, while emphasizing IGD’s dedication to innovation and value creation for all stakeholders. The 2024 data reflect our new approach and shows the increase in Net Rental Income, and FFO in excess of the guidance disclosed to the market last year, with the core portfolio value in line with 2023.
In February 2025, just one month since the implementation of the 2025-2027 Business Plan started, we achieved two important results, by restructuring debt maturities and selling the first asset of the Romanian portfolio. Thanks to the credit facility we secured, we were able to fully repay the existing bonds and can now proudly state that IGD will return to distributing a dividend to its shareholders. Having overcome the main obstacles, we will propose to the Annual General Meeting a dividend of 0.10 per share, using the reserves released through the asset disposals finalized in 2024. However, we do not intend to rest on our laurels and will continue to work to reduce the cost of debt, carefully evaluating the best opportunities that will arise”.
OPERATING PERFORMANCE – ITALY
2024 was a year of growth for IGD shopping centers: as of 31 December, footfalls had increased by +1.6% compared to 2023, while mall tenants’ sales were up 0.6%. The Group’s hypermarkets and supermarkets also performed well, ending the year with an increase of +0.6%.
LEASING ACTIVITIES
During the year, IGD continued its leasing activity, which proved to be effective, as reflected in the results: at 31 December 2024, the mall occupancy rate was 94.67%, continuing the progressive increase trend recorded quarter by quarter (+61 bps vs 31 December 2023); the average occupancy rate for malls plus hypermarkets was 95.21%, also up +45 bps compared to 31 December 2023.
The capacity of IGD shopping centres for attracting international anchor tenants has been confirmed: Rituals, Sinsay, Primark are some of the brands that opened their first store in the IGD center network in Italy; a total of 31 new brands have been added to the Italian portfolio in the last 12 months.
The 194 leases signed during the year (120 renewals and 74 turnovers) led to an average increase of +4.0% in rents on these leases. The positive trend recorded during the year is evident: after a downside of -3.5% in the first quarter, signed lease contracts recorded increases in rents of +3.5%, +8% and +4.10% respectively in the three subsequent quarters.
The rent collection rate was also excellent: around 98.4% as of 4 March 2025.
DIGITAL ACTIVITIES
Digital initiatives aimed at offering innovative solutions to the Group’s clients, both mall visitors and tenants, continued over the last year.
Over the 12 months, the work focused on three pillars:
- Consumer platforms and CRM, to consolidate the relationship with visitors by offering them exclusive opportunities through actual loyalty programs.
- Tenant platforms, to simplify the shopping center’s internal relationship management and ensure a more efficient oversight of operations.
- Mall Media, to engage with shoppers during their visitor experience, while providing our retailers with an additional service that complements their existing tools, thus creating a genuine shopping center ecosystem.
All the platforms listed above collect and build data in real time, providing the Company with an information asset to improve strategic decision-making on the various aspects of the business.
OPERATING PERFORMANCE – ROMANIA
In line with the considerations about Italy, the shopping malls of the Winmarkt portfolio also recorded good operating performances: as of 31 December 2024, the occupancy rate was 95.83%, up 62 bps compared to the figure at 30 September 2024. Marketing activities continued during the year, resulting in the signing of 355 leases between renewals (252) and turnover (103), with an average upside on renewal rents of approximately +3.8%, which shows the vibrancy of the country’s retail sector. The health of the tenant portfolio also shows in the good results of the rent collection rate, which for 2024 was approximately 97%.[1]
CORE PORTFOLIO VALUE STABILISES
Gruppo IGD’s Italy core portfolio (malls and hypermarkets) reached a market value of €1,537.9 million, showing substantial stability on a like-for-like basis compared to December 2023, after two years of significant write-downs.
Taking into account also the remaining assets owned by Gruppo IGD, its freehold real estate portfolio reached €1,694.2 million, showing a decrease of –0.46% on 31 December 2023.
The Net Initial Yield, calculated in accordance with EPRA standards, reached 6.2% for the Italian portfolio (6.5% topped up) and 7.6% for the Romanian portfolio (7.9% topped up).
If the leasehold properties and the Juice and Food fund stakes are included, the market value of IGD’s portfolio comes to €1,810.4 million.
EPRA NRV is €985.934 thousands, that is to say € 8.94 per share. This figure is down -3.0% from 31 December 2023, substantially as a result of the decrease in net equity following the loss posted to profit and loss account.
EPRA NTA is 8.87 euros per share, down -3.0% from 31 December 2023.
EPRA NDV is 8.75 euros per share, down -2.8% from 31 December 2023.
ECONOMIC-FINANCIAL RESULTS
Net rental income amounted to €113.7 million, decreasing -4.9% compared to the same period of the previous year, as a result of the asset portfolio sale in April 2024, while on a like-for-like basis, the figure is increasing +4.6%.
The core business EBITDA is €102.0 million, a like for like variation of +4.1% compared to the 2023 year-end figure, with a margin of 71.3%.
Financial management amounted to -67.1 million euros (+38%), which, net of the accounting impact of IFRS 16 and non-recurring charges, were -55.9 million euros, 30.8% more than at 31 December 2023. Such increase is due to the negative impact of the bond and other financing facilities obtained in 2023.
Funds from Operations (FFO) reached €35.6 million, -35.7% than in 2023 due to higher financial charges and the sale finalized in April. This result exceeds the guidance disclosed to the market on 27 February 2024 (+4.8%) which called for year-end FFO of around €34 million.
The Group closed the year with a net loss of -30.1 million euros, a marked improvement on December 2023 (-81.7 million euros).
ASSET MANAGEMENT
IGD’s closing balance of investments and capex for 2024 was approximately €17.8 million.
The main operations consisted of fit out works at Officine Storiche in Livorno, in preparation of the opening of the Sinsay and Primark stores, and internal restyling at Centro Leonardo in Imola.
As part of the Porta a Mare Project in Livorno, 34 apartments were sold by the end of 2024 within the Officine Storiche residential area; the sale of the remaining 8 units is expected in 2025 (one of which has been sold as of today, and one has received a binding offer).
The main event of the year in terms of disposals was the important divestment concluded by IGD on 23 April 2024, with the sale to Sixth Street and Starwood Capital of a real estate portfolio consisting of 8 hypermarkets, 3 supermarkets and 2 shopping malls, for a total value of €258 million.[2]
In February 2025, IGD signed the final contract for the sale of a shopping centre in its Romanian portfolio. The execution of the agreement was the first concrete result of the “non-core” asset disposal plan aimed at reducing the Group’s financial leverage, as anticipated in the 2025-2027 Business Plan presented to the market on 21 November 2024.[3]
FINANCIAL STRUCTURE
The disposal concluded in April had a positive impact on the Group’s financial structure, with the Loan to Value ratio at 31 December 2024 equal to 44.4%, lower by 370bps compared to 48.1% at the end of 2023.
As for other performance indicators, the average cost of debt was 6.04% at 31 December 2024, substantially higher than the 3.86% recorded at 2024 year-end, while the interest cover ratio (ICR) was 1.8x and the interest cover ratio for covenants was 2.8x.
On 11 February 2025, IGD finalized a major secured facility operation for 615 million euros with a pool of leading national and international banks and financial institutions. The proceeds from the loan were used to pay off[4]existing bonds, which were IGD’s most burdensome financial commitments. This reduced the average cost of debt, which to date stands at 5.7% (floating rate).
These combined activities allowed the company to eliminate the concentration of financial maturities, which will be rescheduled and spread out over the following years, with the first significant maturities starting in 2028. By doing so, the average debt maturity has been extended to approximately 5 years and will always remain above 3 years over the plan’s period.
With the repayment of the bonds, all impediments to the distribution of a voluntary dividend to shareholders have been removed.
DIVIDENDS
The Board of Directors resolved to propose to the Shareholders’ Meeting the distribution of unit dividends per share of Euro 0.10 (with a total distributed amount of 11,034,190.30 euros) subject to the approval of the financial statements for year ended 31 December 2024 and of the Directors’ Report.
The dividend of will be as follows:
€0.10 per share (overall total of €11,034,190.30) from the available profit reserves generated by exempt operations and released as a result of the disposal of 8 hypermarkets, 3 supermarkets and 2 shopping malls during FY2024.
It should be noted that the first available date for the detachment of coupon no. 7 for the dividend of 0.10 euros per share that the Board of Directors will propose to the AGM will be 12 May 2025, with payment starting from 14 May 2025. Pursuant to Article 83-terdecies of Legislative Decree no. 58 of 24 February 1998, existing IGD Shareholders at the end of the accounting day of 13 May 2025 (the record date) will be entitled to the dividend.
The dividend of 0.10 euros per share is meant to be fully ordinary.
2025 OUTLOOK
IGD estimates higher operating results in 2025, and an improvement in financial management as a result of the refinancing operation concluded in February 2025. For these reasons and based on the current global market and operating environment, the 2025 FFO is expected to come in at about €38 million, increasing +6.7% on the 2024 year-end figure.
ONGOING STRONG COMMITMENT TO ESG
The Board of Directors approved the 2024 Sustainability Report which was subject to Limited Assurance by Deloitte & Touche. The main results obtained in 2024, in line with the planning and targets of the 2022-2024 Business Plan, are summarized below. The achievement rate is estimated to reach 83%.
Green: approx. 3.3 million euros were invested during the year to reduce the portfolio’s environmental footprint: revamping projects were completed at Centro Esp, Ravenna and Centro Le Maioliche, Faenza; investments on LED lighting systems continued; 2 new photovoltaic systems and new electric vehicles charging stations (128 of which are operational in 19 Shopping Centres) were installed. Responsible: in Italy, training activities were provided for all employees and the Corporate Welfare Project continued; the “Biological shield approach” certification was obtained from TÜV for the Shopping Centres in Italy and the headquarters. Ethical: the new “Responsible Supply Chain Policy” and “Responsible Tenancy Policy” were defined; the Legality rating was renewed for a further two years with the maximum score. Attractive: the interior restyling of the Leonardo Center in Imola was completed, featuring interventions to reduce environmental impacts; 31 new signs were added in Italy and events increased compared to 2023. Together: over 700 meetings with commercial operators and activities involving local associations and authorities were organized in 96% of Italian Shopping Centres.
OTHER RESOLUTIONS
Calling of the Annual General Meeting
IGD’s Board of Directors also resolved to convene the Company’s Annual General Meeting on 16 April 2025 (in first call) and, if necessary, on 17 April 2025 (in second call), to pass resolutions on the following agenda:
Ordinary session
- Separate financial statements at 31.12.2024; Directors’ report on operations; External auditors’ report; Report of the Board of Statutory Auditors; Presentation of the consolidated financial statements at 31.12.2024; related and consequent resolutions.
- Allocation of the net earnings for the year and dividend distribution to the Shareholders; related and consequent resolutions.
- Report on remuneration and compensation in accordance with Article 123-ter of Legislative Decree 58/98 and Article 84-quater of CONSOB Regulations no. 11971/99: First section: report on the remuneration policy. Binding resolution.
The Board of Directors has undertaken a comprehensive overhaul of the remuneration policy, drawing inspiration from the most advanced practices and beginning a process of alignment with prevailing market standards. It should be emphasized that variable remuneration is now benchmarked to the scale of the challenging targets of the recently approved and released Business Plan, establishing, for LTI plans, a close connection between the TSR and the increase in incentive plans, which are also impacted by the measurable development of ESG policies. - Report on remuneration and compensation in accordance with Article 123-ter of Legislative Decree 58/98 and Article 84-quater of CONSOB Regulations no. 11971/99: Second section: report on the compensation paid. Non-binding resolution.
- Amendments to the “Regulations of the General Annual Meeting”. Related and consequent resolutions.
Extraordinary session
- Amendment of Article 7 of the Articles of Association for the insertion of increased voting rights in Article 127-quinquies, Paragraph 1 of Legislative Decree 58/98. Related and consequent resolutions.
The proposed amendments to the articles of association are designed to introduce increased voting rights under Art. 127-quinquies, para. 1 of the Consolidated Law on Finance (“TUF”), a measure aimed to encourage sustainable medium-long term investment in the Company by its shareholders, with a view to promoting the stability of the ownership structure and facilitating the pursuit of sustainable growth targets over an adequate time horizon.
127-quinquies, para. 1 of the Consolidated Law on Finance allows companies whose shares are listed on a regulated market to grant increased voting rights, up to a maximum of two voting rights per ordinary share held by the same shareholder for at least twenty-four consecutive months starting from the date of registration in a special list prepared and maintained by the issuing company. - Amendment of Article 13 of the Articles of Association to insert the option that meetings be held exclusively through the Company’s “designated representative” pursuant to Article 135-undecies (1) of Legislative Decree 58/98. Related and consequent resolutions.
- Amendment of Articles 11, 18, 19 and 22 of the Articles of Association. Related and consequent resolutions.
Assessment of independent status
Based on the information provided by the interested parties and available to the Company, IGD’s Board of Directors verified that 4 (four) independent directors still qualify as independent in accordance with and pursuant to Art. 148, para. 3 of Legislative Decree no. 58/1998, recommendation 7 of the Corporate Governance Code and Art. 16 of CONSOB Regulations no. 20249/2017: Antonio Rizzi, Simonetta Ciocchi, Mirella Pellegrini and Daniela Delfrate.
Approval of the Report on Corporate Governance and Ownership Structure
The Board of Directors approved the Report on Corporate Governance and Ownership Structure, which forms an integral part of the annual report.
The documents will be made available to the public on IGD’s website https://www.gruppoigd.it/en/governance/ and at the Company’s registered office, as well as on the authorized eMarket STORAGE system managed by Teleborsa S.r.l. and available at the link www.emarketstorage.com in accordance with the law and applicable regulations.
IGD’S REBRANDING
IGD’s new course: our rebranding emphasizes the pivotal role of shopping centres in the growth process
IGD aims to present itself to the market as a listed property company with an international scope, capable of attracting Italian and international investors and establishing its leadership in retail real estate. IGD’s profound transformation involves a complete rebranding process to redefine its identity, starting with the logo.
The IGD anagram in the new logo visually embodies the pivotal role of the shopping center as the beating heart of a true “IGD shopping center ecosystem”, an approach that translates into an evolution of the relationship between tenants and landlords, who work together to build long-term partnerships within a dynamic context.
The goal is to maximise the potential of every location, increasingly transforming each center into a place where visitors can enjoy a full range of experiences.
The new logo also reflects IGD’s commitment to innovation, and sustainable long-lasting growth, with the aim of creating value for all stakeholders. IGD positions itself not only as asset manager, but also as authoritative institutional financial player, aware of its systemic role in the Italian listed real estate sector. Its new brand identity conveys this new industrial approach.
