The business plan with a 2027 horizon aims to inaugurate a new growth path
Over the next three years the priorities will be to optimise the Group’s financial profile and to improve the core business activities with the double target of embarking on a growth path in order to create the conditions to reach the main players of the European retail real estate market and return to paying consistent and sustainable dividends.
The 2025-2027 Business Plan was approved by the Board of Directors on 20 November 2024, confirming the guidelines previously defined and presented in the press release of 4 July 2024.
Watch the video of the 2025-2027 Business Plan presentation
The new plan, which focuses on growth and a return to dividend distribution, is the result of the work of a strong team that is devoting its best efforts and skills to achieving the set targets and bringing operational and financial performance to best-in-class levels in the industry.
ROBERTO ZOIA, CEO and Managing Director of IGD
Main economic and financial targets as of 2027
+16%
Net Rental Income like for like (vs FY 2024e)
Approx. € 98 mn
core business Ebitda (+16% organic growth)*
Approx. € 48 mn
Funds From Operations (approx. +41% vs FY 2024e)
Approx. 40%
Loan to Value at year-end 2027
* Taking into account the impact of planned disposal of non-core assets and the conclusion of two masterleases
The main priorities that the plan focuses on are:
Optimize the Group's financial profile and reduce costs
Maximize value creation from core business activities
Enhance attractiveness of IGD portfolio through targeted and ESG compliant investments
1. Optimize the Group’s financial profile and reduce costs
FEBRUARY 2025
FIRST TARGETS ALREADY ACHIEVED
One of IGD’s target was to redefine the Group’s financial profile, eliminating the current concentration of maturities in 2027 and extending debt duration.
More in detail, the Company in February 2025 signed a green security facility agreement for € 615 million with a pool of leading national and international financial institutions. The resources gathered made it possible to repay the two outstanding bonds, which have burdensome contractual terms and clauses.
IGD continues to monitor the capital markets to take advantage of any additional, beneficial opportunities that may arise, leveraging also on the Investment Grade profile that it recently confirmed and intends to maintain.
The Company is committed to lowering the cost of debt while focusing on deleveraging, also thanks to the disposals called for over the timespan of the plan: the Loan to Value at year-end 2027 is, therefore, expected to improve, reaching approximately 40% (compared to 44.8% as of 30 September 2024).
Disposal plan of non core assets for € 100 million
PORTA A MARE LIVORNO: 3 PRESTIGIOUS AREAS STILL TO BE DEVELOPED
€ 20 million approximately
›
2026
OTHER MINOR NON-CORE ASSETS
€ 10 million approximately
›
2025-2026
2. Maximize value creation from core business activities
Over the next three years, IGD aims to improve its operational performance in terms of occupancy and average contract duration in order to increase rental income, while reducing the landlord’s condominium expenses.
IGD proposes itself to tenants as a partner, going beyond the pure contractual approach of renting spaces and offering a true “IGD Shopping Center Ecosystem”, with a diverse range of opportunities for tenants to improve their revenues.
“IGD Shopping Center Ecosystem” also addresses visitors by offering shopping experiences, services, entertainment and restaurants together with events and initiatives to build customer loyalty and strengthen interaction with the local area and community.
Within the ecosystem, increasingly important is the digitalisation process of shopping centres, which IGD is already working on by offering solutions for both tenants and visitors. The targets over the next three years are to strengthen the synergy with tenants, to catch more and more collaboration opportunities, and to offer consumers increasingly personalised and engaging shopping experiences.
Occupancy of our shopping centers
98%
OCCUPANCY ITALY
2027 TARGET
From a commercial standpoint, the Leasing’s team activities continue in order to include new traffic-generator brands and to constantly adjust the merchandising mix, as well as to find new merchandise segments and testing new formats (through pop ups or temporary stores). By doing so IGD intends to enrich the shopping experience with the aim of increasing the reference catchment area. In addition, a few, less attractive areas have been identified to be transformed into services for shopping centers and tenants, in order to maximize occupancy and further enhance the portfolio. Also in Romania IGD aims to increase the occupancy rate to 99% by 2027.
Contracts with tenants
2.5 years
WALB ITALIAN MALLS
2027 TARGET
The relationship with tenants will be increasingly focused on building long-term partnership characterised by greater contractual flexibility and a tailor-made approach for tenants and locations. With the aim of increasing visibility and sustainability of cash flows, contracts will be given longer maturities and will be enriched with high value-added property services, as well as digital and communication tools. By 2027 the Company intends to bring the average WALB[1] to 2.5 years and the average WALT[2] to around 4.2 years for the Italian malls; the WALB for the Romanian portfolio is expected to reach 3 years by 2027, while the WALT should be around 5.4 years
[1] Weighted Average Lease Break: remaining lease term until the tenants’ break option
[2] Weighted Average Lease Term: weighted average time left on a property lease
The new Services business unit
€ 2 mn per year
MARGIN FROM SERVICES
A new Services business unit dedicated to the management of third-party assets was also created. This is a non-capital intensive business that IGD has been involved in for years, but which intends to strengthen significantly. The Company intends to position itself in the real estate market as the reference point for asset management and other advanced services, with the vision of a property company that aims to maintain assets as functional and flexible as possible in order to preserve their value over time. The objective over the timespan of the Plan is to increase the network of assets under management, with the possibility of capturing new opportunities and generating an annual margin of around € 2 million.
3. Enhance attractiveness of IGD portfolio through targeted and ESG compliant investments
The investments in the pipeline, for a total of around € 50 million, focus on increasing the attractiveness of the portfolio and reducing its environmental impact. All investments will be based on the distinctive features of locations and catchment areas, envisaging possible changes in planned interventions, also based on the results achieved.
More in detail, investments over the timespan of the plan, include:
€ 16 MN COMMERCIAL INVESTMENTS
Activities to support the transformation of shopping centers into innovative ecosystems, with investments in technology and digitalization, leveraging also on maximum flexibility in the management of spaces through re-sizing, re-modelling and re-shaping to attract tenants.
€ 11 MN ESG INVESTIMENTS
ESG actions to foster energy transition, reduce the portfolio’s carbon footprint, and improve visitors’ wellbeing, safety and overall experience. The main target for 2027 is to reduce the Scope 1 and 2 CO2 emissions by -40% (baseline 2018) and Scope 3 emissions by -20% (baseline 2021).
€ 23 MN MAINTENANCE INVESTMENTS
Extraordinary maintenance work aimed at increasing the shopping centers’ life cycle and resilience by reducing exposure to climate change risks. IGD confirms its committment to ensure the safety of visitors with investments focused on mitigating risks related to exceptional nature events such as earthquakes, whirlwinds, floods and storms.
