26 August 2010 13:19
Price Sensitive economic-financial results

The Board of Directors approves the Half-Year Financial Report at 30 June 2010

Margins and net profit continue to grow in the first half of 2010:

  • Total revenues: €59.53 million (a slight drop of 1.26% vs. the €60.29 million recorded at 30 June 2009
  • (EBITDA: €39.78 million (an increase of 7.53% vs. the €36.99 million reported at 30 June 2009)
  • EBITDA MARGIN: 70.81% (up 5.8 percentage points with respect to the 65.04% recorded at 30 June 2009)
  • EBIT: €32.27 million (an increase of 29.92% vs. the € 24.84 million reported at 30 June 2009)
  • Net profit: €14.03 million (a rise of 96.86% vs. the €7.13 million recorded at 30 June 2009)
  • Net debt: €1.023 billion (€1.027 billion at 31 December 2009)
  • Market Value: €1,776.86 million (€1,724.86 million at 31 December 2009)

 

Today, in a meeting chaired by Gilberto Coffari, the Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. (“IGD” or the “Company”), a company active in the retail real estate sector and listed on the Star segment of the Italian Stock Exchange examined and approved the Half-Year Financial Report at 30 June 2010 which shows consolidated net profit of €14.03 million (+96.86% with respect to 30 June 2009).

Principal Results at 30 June 2010

The IGD Group generated total revenues at 31 March 2010 of €59.53 million, a slight drop of 1.26% with respect to the €60.29 million recorded in first half 2009 which benefitted from non-recurring items related to the opening of two new shopping centers. The growth trend of all recurring revenues (rental/lease income, and facility management) continued in the first six months of 2010. More in detail, total revenues from the rental business grew 1.39% with respect to the same period in 2009 due to the new openings and acquisitions made in 2009 (the Tiburtino Shopping Center, opened on 2 April 2009; the Katanè Shopping Center opened on 5 May 2009; the Le Maioliche Shopping Center acquired on 8 October 2009; the I Bricchi Shopping Mall, opened on 3 December 2009) which also offset the drop in revenues reported by the Romanian subsidiary Winmarkt and the lack of extraordinary income, of approximately €3 million, generated by the new openings in first half 2009.

The IGD Group’s EBITDA at 30 June 2010 amounted to €39.78 million, an increase of 7.53% with respect to the €36.99 million reported at 30 June 2009.

In the first six months of 2010 direct costs, including direct personnel expense, totalled €11.44 million, a drop of 17.77% with respect to 30 June 2009, further confirmation of the strategy implemented by the Group to improve efficiency. These costs represent 20.37% of operating revenues. General expenses, including payroll costs at headquarters, at 30 June 2010 amounted to €5.09 million, a slight decline with respect to the same period in the prior year.

The Ebitda margin, (calculated as a percentage of operating revenues) amounted to 70,81%, rose 5.8 percentage points with respect to the 65.04% recorded in first half 2009.

The IGD Group’s EBIT at 30 June 2010 amounted to €32.27 million, an increase of 29.92% compared to the €24.84 million reported at 30 June 2009. This result benefited from the positive performance of the EBITDA and confirms the quality and solidity of the Group’s real estate portfolio.

The IGD Group’s pre-tax profit in the first half of the year 2010 rose €7.86 million (+ 102.5%) with respect to the €7.67 million reported at 30 June 2009 to €15.53 million.

Tax, both current and deferred, totalled €1.52 million at 30 June 2010, reflecting a tax rate of 8.22%, net contingencies, thanks to the positive effects of the SIIQ regime.

Consolidated net profit at 30 June 2010 amounted to €14.03 million, an increase of 96.86% with respect to the €7.13 million reported at 30 June 2009 due to a drop in writedowns of the real estate portfolio and an increase in Ebitda.

Funds from Operations (FFO) , a significant indicator used to value the performance of real estate investment trusts, at 30 June 2010 amounted to €21.89 million, an increase of 18.90% with respect to the €18.41 million recorded at 30 June 2009.

The IGD Group’s net debt at 30 June 2010 amounted to €1.023 billion, a slight drop with respect to the €1.027 billion reported at 31 December 2009.

The Real Estate Portfolio

Based on CB Richard Ellis’s independent appraisal the market value at 30 June 2010 of the Igd Group’s real estate portfolio, including 50% of RGD (the 50/50 joint venture with the Beni Stabili Group) was €1,776.86 million, compared to €1,724.86 million at 31 December 2009. Excluding the 50% of RGD, the market value at 30 June 2010 of the Igd Group’s real estate portfolio amounts to €1,704.9 million, compared to €1,651.39 million at 31 December 2009. The increase in the value of the portfolio which is comprised primarily of retail properties located throughout Italy and Romania and of assets under construction which are part of real estate development initiatives underway in Italy, is largely attributable to the purchase of a shopping mall nearing completion in Palermo (€48.7 million), the purchase of two more divisions of the Millennium Center. Shopping Center. The portfolio was subject to total writedowns of €7.1 million as a balance of an increase of 0.55% in the “hypermarket/ supermarket” category (which represents 26.3% of the total portfolio), a slight drop of – 0.04% in the “shopping mall” category (which represents 49.7% of the portfolio), a writedown of – 1 A measure used in the real estate market to define the cash flow from operations beginning with net profit, less tax, writedowns, change in fair value, amortization and depreciation. 3 36.9% in the “other” category (which represents 0.14% of the portfolio) in addition to a reduction of -2.03% for the Romanian portfolio ( which represents 10.3% of the portfolio) and – 2% for 50% of the properties held through RGD (which represents 4.05% of the portfolio).

The IGD Group’s real estate portfolio includes assets held for trading of €82.43 million related to the development of the multifunctional project in Livorno, as well as land for future expansion and/or new retail initiatives which at 30 June 2010 were valued at €36.31 million.

“The brilliant results achieved during first half 2010 once again confirm the validity of the development plan our Group presented to the financial community in November 2009 which calls for the opening of two new shopping malls, in large part already pre-let, in Palermo and in Conegliano Veneto by the end of the year” , Claudio Albertini, Chief Executive Officer of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A. stated.