Today the Board of Directors of IGD -Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD”or the “Company”), listed on the STAR segment of the Italian Stock Exchange, in a meeting chaired by Gilberto Coffari, examined and approved  the Consolidated Interim Management Statement at 30 September 2013.

“In what is still a difficult market environment characterized by a persistent situation of generalized crisis and ever declining consumption, the IGD Group managed to maintain its economic-financial fundamentals intact,  with core business cash flow generation falling slightly with respect to the prior year. In the coming months we will focus on sustaining our tenants and development of the investments already part of the portfolio, while keeping financial expense under control.” Claudio Albertini, IGD – Immobiliare Grande Distribuzione SIIQ S.p.A.’s Chief Executive Officerstated.

Principal consolidated results at 30 September 2013

The IGD Group’s consolidated operating revenue amounted to approximately €90.5 million at 30 September 2013, a slight drop (-1.8%) with respect to the €92.2 million recorded in the same period of the prior year. Rental income at 30 September 2013 fell by 1.7% with respect to the same period 2012. In Italy (-1.3% like-for-like) the positive trend for hypermarkets continued (+2.5 % due to indexing and the full impact of rent step-ups for recently opened hypermarkets), while malls posted a decline (-3.5%) explained also by the increase in vacancies which, in some cases, are instrumental to the openings expected to take place by the end of 2013. The occupancy rate in Italy is still high, however, coming in at 96.6%.

In Romania, rather, the drop in revenue  (-6.2%)  is attributable in part to increased vacancies (due both to the works underway and longer turnover) and, in part, to the deteriorating market conditions which resulted in lower rents.

Revenue from services amounted to €3.8 million, down (-4.3%) with respect to the same period of the prior year due primarily to the expiration of two management mandates.

The IGD Group’s core business EBITDA amounted to €62.3 millionat 30 September 2013 versus €64.6million at 30 September 2012. This figure reflects the drop in revenue, as well as the impact of direct tax (IMU)  and the increase in condominium fees as a result of the increased vacancies in the period. Direct costs, pertaining to the core business and including personnel expenses, amounted to €21 million, an increase of 3.1% with respect to the same period in the prior year. Direct costs as a percentage of revenue reached 23.7%. General expenses for the core business (including payroll costs at headquarters), reached €6.7 million, a decrease of 1.5% with respect to the €6.8 million recorded for the first nine months of 2012. General expenses as a percentage of core business revenue reached 7.4%, unchanged with respect to the prior year.

These changes caused the core business EBITDA margin to drop from the 70.1% recorded at 30 September 2012 to 68.9%.

The IGD Group’s EBIT at 30 September 2013 amounted to €43.4 million, compared to €51.2 million at 30 September 2012 due also to the different trend in the fair value of real estate and the drop in Ebitda.

Net financial expense dropped in the first nine months of 2013 (-3.0%) from the €35.8 million posted at 30 September 2012 to €34.7 million which resulted in a lower average cost of debt.

The tax burden, current and deferred, at 30 September 2013 amounted to positive €2.5 million explained by fair value adjustments.

The Group’s net profit at 30 September 2013 amounted to €11 million, versus€16.1 million in the first nine months of 2012.

Funds from operations (FFO), which measures operating cash flow, fell from the €27 million recorded at 30 September 2012 to approximately €26 million at 30 September 2013.

The gearing ratio at the end of the first nine months of  2013 came to1.37 (an improvement with respect to the 1.38 recorded at 30 June 2013).

The IGD Group’s net debt at 30 September 2013 amounted to €1.086 billion, in line with the €1.086 billion recorded at 30 June  2013.