Progress in operations and financial management drive FFO growth
- The €3 million increase in FFO against the same period 2018 is explained for €2 million by higher core business EBITDA and for almost €1 million by improved financial management.
- The expansion of IGD’s scope of consolidation through the acquisitions made in 2018 was key to revenue growth.
- Net profit reflects the negative impact of the changes in fair value recorded at 30 June 2019.
- Thanks to a decrease in net financial debt, the Loan-to-Value improved in the third quarter and fell to 47.8% at the end of September 2019.
Rental income increased 2.7% in the first nine months of 2019 to €116.0 million driven almost exclusively by the contribution for the entire period of the assets that became part of IGD’s perimeter in April and May 2018: the portfolio acquired from Eurocommercial Properties and the extension of the shopping center in Crema. Like-for-like, the performance was basically unchanged (+0.1%), with Italian malls down slightly due to strategic vacancies offset by the increase in rental income recorded in Romania (+2.7%).
Core business EBITDA rose 11.0% (or +2.0% ex IFRS 16) to €94.4 million. The core business EBITDA margin came to 78.1%, 580 bps higher than in the same period 2018.
Net financial expense fell by around €1 million, net IFRS16 application, thanks above all to the bond repayment of €124.9 million made on January 4th.
FFO, therefore, posted a positive performance, rising 5.6% against the first nine months of 2018 to €62.9 million.
The Group’s net profit reached €22.4 million, lower than the €52.4 million recorded in the first nine months of 2018 due mainly to the change in writedowns and fair value adjustments which were negative for €46.3 million, versus negative €4.8 million in the first nine months of 2018.
The net financial debt was €1,174.4 million at 30 September 2019, down by 0.9% compared to 30 June 2019. The loan-to-value, therefore, went from 48.2% in the first half of 2019 to 47.8% at the end of September (46.7% ex IFRS16).
| Core business EBITDA | € 94.4 mn | +11.0% |
| Core business EBITDA margin |
78.1% | +580 bps |
| Funds From Operations (FFO) | € 62.9 mn | +5.6% |
| Loan-to-Value | 47.8% | < max level of 50% |
| Net Rental Income | € 102.2 mn | +10.7% |
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