11 March 2010 14:07
Price Sensitive economic-financial results

The Board of Directors approves the draft separate and the consolidated financial statements at December 31, 2009

FY 2009 consolidated results (vs. FY 2008):

  • Total revenues: €119.6 million (€101.4 million)
  • Ebitda: €76.3 million (€58.9 million)
  • Ebit: €57.2 million (€36.6 million)
  • Pre-tax profit € 22.6 million (€10.7 million)
  • Net profit: €20.4 million (€43.3 million)
  • Market Value of €1,724.86 million (€1,423.20 million at December 31st, 2008)

Other resolutions:

  • Dividend of €0.05  per share proposed (an increase of 42.86% which respect to the €0.035 in FY  2008), going ex-div on May 24th , 2010 and payable as of May 27th, 2010
  • Proposal to amend the terms and conditions of the” €230,000,000, 2.50 per cent, convertible bond,  due 2012”
  • The annual report on Corporate Governance and Ownership Structure approved 

Today the Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A., a company active in the retail real estate sector and listed on the Star segment of the Italian Stock Exchange, examined and approved the draft separate and consolidated financial statements at December 31st, 2009 in a meeting chaired by Gilberto Coffari

Principal Results at December 31st,  2009

The IGD Group generated total revenuesat December 31st, 2009 of  €119.6 million, an increase of 17.95%with respect to the €101.4 million recorded in 2008. This increase is primarily due to the new openings and acquisitions made in 2009 and at the end of 2008 such as Gran Rondò Mall in Crema, acquired December 30th, 2008, The Tiburtino Shopping Center,  opened on April 2nd, 2009, the  Katané Shopping Center, opened on May 5th, 2009, the Le Maioliche Shopping Center,  acquired on October 8th,  2009 and the I Bricchi Shopping Mall, opened on December 3rd, 2009.  The most significant growth came from the Group’s core business, the rental business, where revenues rose 20.56% with respect to 2008.  The Facility Management business increased by 12.19% thanks to the mandates related to new openings while the remainder is largely attributable to Pilotage revenues.

The IGD Group’s EBITDA at December 31st, 2009 amounted to €76.3 million,an increase of29.47%with respect to the €58.9 million reported in 2008. Direct costs, including direct labor costs, rose by 11.19% with respect to 2008 to €27.0 million, less than the increase in rental income.  The IGD Group also made considerable investments in advertising and promoting the openings in order to sustain the new shopping centers in their start-up phase, as well as to further enhance the visibility of the centers opened in the last 24-36 months. The general expenses, including headquarter personnel, amounted to €9.6 million, basically in line with 2008. The Ebitda margin, calculated as a percentage of operating revenues, reached 67.71%, an increase of 6.53% with respect to the 63.56% reported in 2008.

The IGD Group’s EBITat December 31st, 2009 amounted to €57.2 million, an increase of 56.44% with respect to the €36.6 million recorded at December 31st, 2008.

The tax burden, current and deferred, totalled €2.2 million at December 31st, 2009, reflecting a tax rate of 9.82% which is attributable to the positive effects of the SIIQ regime. Tax is not comparable to the same period of the prior year due to the reversal of deferred tax liabilities accrued against an increase in property values through December 31st, 2007 and the substitute tax recognized.

The IGD Group’s pre-tax profitat December 31st, 2009 rose by 110.94% from the €10.7 million reported at December 31st, 2008 to €22.6 million.

The IGD Group’s net profit at December 31st, 2009 amounted to €20.4 millionversus €43.3 million in 2008. This result reflects the fair value valuation of the IGD Group’s real estate portfolio which was impacted by the persistently negative economic scenario of both the Italian and the international real estate markets.  More in detail, the result for the year included net writedowns of €13.7 million, compared to a decrease in fair value of € 2.6 million in the prior year. Furthermore, 2008 benefited from the positive contribution of the deferred taxes reversed in 2008 following the Parent Company’s treatment under the SIIQ regime and the reversal of deferred tax liabilities related to the Sarca center which was revalued pursuant to Decree 185/08.

The Funds from Operations (FFO) , a significant indicator used to value the performance of real estate investment trusts, rose from €30.7 million at December 31st, 2008 to €39.3 millionat December 31st, 2009,  an increase of 27.91% which confirms the solid performance of the industrial operations.

The IGD Group’s net debt at December 31st, 2009 came in at €1,027 million, compared to €733.9 million at December 31st, 2008. This change is primarily due to the investments made by the Group in 2009, as well as to net working capital.

The Real Estate Portfolio

The value of the IGD Group’s real estate portfolio grew in 2009 thanks to the acquisition of the three new shopping centers found in Guidonia, Faenza and Catania, as well as to the completion and opening of the  Isola d’Asti Shopping Mall.

In line with the IGD Group’s development strategy, the real estate portfolio at December 31st, 2009 consists primarily of retail properties located throughout Italy and Romania, and of real estate assets under construction in Italy.

The market value of the IGD Group’s real estate portfolio at December 31st, 2009, based on the independent appraisal of CB Richard Ellis, amounted to  €1,651.39 million (a figure which reaches €1,724.86 million if we include the 50% stake in RGD),

The IGD Group’s real estate portfolio includes assets held for trading of €78.29 million related to the development of the multifunctional complex inLivorno, in addition to plots of land for future expansion and/or new commercial initiatives which at December 31st, 2009 were valued at €35 million.

“In a complex year like  2009, the IGD Group continued along its development path, succeeding in achieving results which testify to the effective management and the ability of the properties in our portfolio to hold their value”,Claudio Albertini,Igd’sChief Executive Officer, stated. “The key factor, which allowed us to continue to grow despite the difficult situation plaguing the financial markets and the real economy, lies most certainly in the consistent expansion of our portfolio thanks to a solid, balanced financial and capital structure. During the year we purchased and completed four shopping centers inItalywhich entailed an investment of approximately €241 million and achieved very satisfying results in terms of marketing: in fact, when the first three centers were opened they were almost completely rented and we plan on filling the fourth center, opened in December, by June2010 ”.

Other Resolutions

The Board of Directors will propose that the Shareholders’ Meeting, convened on April 22nd in first call and on April 23rd in second call to approve the separate financial statements and examine the consolidated financial statements for 2009,  approve the distribution of a dividend of €0.05 per share, an increase of  42.86% with respect to the €0.035 paid in the prior year, going ex-div on May 24th, 2010 and payable on May 27th , 2010, both in the event the Shareholders’ Meeting takes place in first or in second call.

The Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. also passed a motion, requiring approval by the general meeting of the bondholders and shareholders, to modify the terms and conditions of the convertible bonds issued by the company as per resolution of June 25th, 2007, effective June 28th, 2010, as follows:

  • maturity: extension of the maturity of the convertible bonds from June 28th, 2012 until December 28th, 2013
  • coupon: interest rate raised from 2.50% (final annual payment on June 28th, 2010) to 3.50% (act/act), half-yearly, first payment on December 28th, 2010) and coupon to be paid on a half-yearly rather than on an annual basis.
  • conversion price: reduced from €4.93 to €2.75
  • consequent changesto the bond regulations

The Board of Directors also passed a motion to submit to the Shareholders’ Meeting, convened on April 22nd in first call and on April 23rd in second call, the consequent changes to the resolution approved on June 25th, 2007  and, more specifically, to change the nominal maximum amount of the capital increase from €46,653,144 to 83,636,364, the maximum number of shares to be issued from 46,653,144 to 83,636,364 and the share issue price from  €4.93 to €2.7 5.

Changing the terms and conditions of the bond will help the IGD Group keep its sources of funding suitably balanced and  to align the expiration of the bond with that of the Group’s  2009/2013 business plan limiting the Group’s cost of debt.

IGD has hired Mediobanca – Banca di Credito Finanziario S.p.A. to act as the company’s financial advisor for the transaction.

The Board of Directors also resolved to propose that the Shareholders’ Meeting, held in extraordinary session, grant a mandate to the Board, pursuant to Art. 2365 of the Italian Civil Code, to amend the bylaws in order to comply with norms and regulations and approved the annual Corporate Governance report included in the draft financial statements.

The documentation related to the items included in the agenda of the Shareholders’ Meeting, pursuant to current norms and regulations, will be available to the public in accordance with the law.

The 2009 draft financial statements of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A., the 2009 consolidated financial statements, the directors’ report, the Board of Statutory Auditors’ Report and the external auditors’ reports will be made available to the public at the Italian Stock Exchange and on the website  www.gruppoigd.it, in accordance with the law.