11 November 2010 14:18
Price Sensitive economic-financial results

The Board of Directors approves the Interim Management Statement at 30 September 2010 and the review of 2009-2013 Business Plan

Profitability continues to rise in the first nine months of2010:

  • Total revenues: €88.88 million (unchanged with respect to the €88.88 million recorded at 30 September 2009)
  • EBITDA: €59.98 million (up by 6.9% with respect to the €56.14 million reported at 30 September 2009)
  • EBITDA MARGIN:71.4% (an increase of4.6 percentage pointswith respect to the66.8% recorded at 30 September2009)
  • EBIT: €52 million (an increase of  20.3% with respect to the €43.24 million reported at 30 September 2009)
  • Net profit: €22.65 million (an increase of 54% with respect to the €14.71 million recorded at 30 September 2009)
  • Net debt amounts to €1.021 billion (€1.027 billion at 31 December 2009)

Review of the 2009 – 2013 Business Plan

  • Investments at the end of the plan (2009-2013) forecast to reach €750 million, in addition to €100 million relating to  the portfolio’s asset turnover
  • Ebitda margin expected to gradually improve from 68% to 76%
  • Average portfolio yield expected to rise to 6.4% – 6.5%
  • Gearing ratio below the 1.5x level

 

Today the Board of Directors of IGD – Immobiliare Grande Distribuzione SIIQ S.p.A.(“IGD” or the “Company”), active in the retail real estate sector and listed on the STAR segment of the Italian Stock Exchange, examined and approved the Interim Management Statement at 30 September 2010 which shows a consolidated net profit of €22.65 million (+54%with respect to 30 September 2009) in a meeting chaired by Gilberto Coffari.

 

Principal Results at 30 September 2010

The IGD Group’stotal revenuesat 30 September 2010 amounted to €88.88million, unchanged with respect to the  €88.88 million recorded in the first nine months of 2009. This result is primarily explained by the new openings and acquisitions made in 2009 and, in particular, to the revenues of €80.6 million generated by the rental business, an increase of 2.02% with respect to the same period in 2009, as well as by the drop in sales in Romania and in revenues from services.

Direct costs, including direct personnel expense, in the first nine months of 2010 amounted to €17.1 million, down by  12.96% with respect to 30 September 2009, further confirmation of the Group’s strategy to improve efficiency. These costs represent 20.33% of operating revenues.

G&A costs, including direct personnel expense, at 30 September 2010, amounted to €7.1 million, down by  4.25% with respect to the same period of the prior year when they totalled €7.5 million. These costs represent 8.5% of operating revenues.

The IGD Group’s consolidated EBITDA at 30 September 2010 amounted to €59.98million, an increase of  6.9% with respect to the same period of the prior year

The Ebitda margin, (calculated as a percentage of operating revenues),rose 4.6%with respect to the 66.8% recorded in the first nine months of 2009 to71.4%.   This increase confirms the solid operating trend and the efficiency of the cost structure.

The IGD Group’s EBIT at 30 September 2010 amounted to €52 million, an increase of 20.3% compared to the €43.24 million reported at 30 September 2009. This result reflects the positive performance of the EBITDA and a decline in fair value adjustments and property writedowns (the property was valued by an independent appraiser in an appraisal issued on 30 June 2010). This result illustrates the solidity of the Group’s real estate assets and confirms the composition and quality of the current portfolio.

The IGD Group’s pre-tax profit in the first nine months of 2010 rose 50.9% with respect to the €16.97 million reported at 30 September 2009 to €25.61 million.

Tax, both current and deferred, totalled approximately €3 million at 30 September 2010, reflecting a tax rate of 11.74%,  an improvement compared with the 13.37% recorded to 30/09/2009, thanks to the positive effects of the SIIQ regime.

Consolidated net profit at 30 September 2010 amounted to €22.65 million, an increase of 54% with respect to the €14.71 million reported at 30 September 2009.

Funds from Operations(FFO), a significant indicator used to value the performance of real estate investment trusts, at 30 September 2010 amounted to €31.86 million, an increase of14.3%, with respect to the €27.88 million recorded at 30 September 2009.

The IGD Group’s net debtat 30 September 2010 amounted to €1.021 billion, a drop with respect to the €1.027 billion reported at  31 December 2009.

The Gearing Ratio (debt to equity ratio) came in at 1.35x,  an improvement with respect to the 1.37x recorded at 31 December 2009 and 30 June 2010.

 

Review of the 2009 – 2013 Business Plan

IGD’s Board of Directors also approved the updated 2009-2013 Business Plan, which forecasts investments at the end of the plan of €750 million, in addition to €100 million relating to the portfolio’s asset turnover, a new investment strategy for IGD.

Of the €750 million € 238.4 million have already been made in  2009 while € 106.4 million are related to 2010.

The investment strategy will be supported by the restyling and expansion of the current Italian and Romanian portfolios.

IGD also confirms the two new openings forecast for  2010: inPalermoon 23 November 2010 and in Conegliano on 25 November 2010.

Igd’s target at the end of the plan for the average annual growth rate of rental income is 8.2% and 10.8% for EBITDA, with an  EBITDA margin (calculated as a percentage of operating revenues) that is expected to gradually improve from 68% to 76%.

By the of 2013, IGD expects to see an average portfolio yield of 6.4 – 6.5% versus the current 6.3%.

The IGD Group also estimates that, as the new investments are completed, the property’s market value should continue to rise, reaching €2.2 billion in 2013.

Another target for the 2009-2013 plan is to maintain the gearing ratio (debt to equity) below the 1.5x level.

“The good results achieved by our Group in terms of revenues and profitability in the first nine months of 2010, which grew despite the complex consumer environment and the results for 2009 which have already been consolidated, are testimony to the profound validity of our Business Plan and allow us to confirm all our targets, with regard to both investments and growth of the principal indicators, which we believe are sustainable and obtainable by2013”Claudio Albertini, Chief Executive Officer ofIGD – Immobiliare Grande Distribuzione SIIQ S.p.A. stated.“Sustainability, which has always been of fundamental importance to the IGD Group, will continue to shape our focus going forward and toward that end we are in process of drafting our first corporate sustainability report which will be presented when we announce the approval of our year-end financial report for 2010.”