PRESS RELEASE
IGD SIIQ SPA: THE BOARD OF DIRECTORS APPROVES THE 2012 - 2015 BUSINESS PLAN The new Plan's targets include:• CAGR for income from rental business of + 3.6% and CAGR LFL of +2.8%;
• Ebitda margin at the end of the plan: >71%
• Investments of approximately €200 million expectedto made over the life of plan, €120 million for expansion and capex of the current perimeter and € 80 million for the development of the pipeline;
• Reduction of financial leverage: Gearing ratio target at the end of the plan <1,2X and Loan to Value of approximately 52%;Bologna, 2 October 2012. 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"), listed on the Star segment of the Italian Stock Exchange, examined and unanimously approved the new 2012 - 2015 Business Plan which will be focused on the sustainability of the Group's revenues, cost of financing, asset value.
"We believe we have developed a balanced business plan which reflects three key objectives: revenue growth, reduction of financial leverage, development of the pipeline and capex in order to further improve the quality of our portfolio. Claudio Albertini, Chief Executive Officer of IGD - Immobiliare Grande Distribuzione SIIQ S.p.A. stated. Over the next three years we will concentrate on enhancing our centers, making the most of new retail trends and attracting brands which generate traffic in order to better face the difficult environment. We are also committed to maintaining attractive levels of profitability for our shareholders, as we have done in previous years".
The IGD Group's new 2012 - 2015 Business Plan reflects the
profound changes which have affected the general
macroeconomic scenario (weak consumption and the conditions
in Italy) and the impact that these variables have on the
market, beginning with the introduction of the property tax
(IMU), focusing on a further reduction of the financial
leverage and the development of the committed pipeline, as
well as the enhancement of the Group's portfolio.
The new Plan, which builds on the previous 2009-2013 Business
Plan through the consolidation of the extensive development
carried out in prior years, will focus on the following
drivers of development:
consolidation of the operating results;
financial sustainability;
enhancement of the portfolio and development of the
pipeline.
More in detail, from an economic standpoint, the 2012 - 2015
Business Plan calls for a CAGR for rental income - total CAGR
- of approximately 3.6% and like-for-like of approximately
2.8%.
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The consolidation of operating results will be done through
commercial strategies in Italy and Romania which will focus
on further increasing the Group's ability to innovate
(through an increase in the numer of internaional brands, the
enhancement of local excellence and personal services) and
understanding sector changes (paying careful attention to the
new trends with regard to food anchors and temporary shops).
The Group will also, in line with its mission, continue to
focus on the sustainability of its tenants, focusing on, on
the one hand, coordinated marketing plans designed to
increase a shared identity and, and on the other, credit risk
management .
The IGD Group also intends to continue with its strategy to
carefully monitor direct costs (strong impact of IMU on
2012) which, over the life of the plan, will be maintained at
stable levels in absolute terms, reaching approximately
21.5%, of core business revenue, down by the end of the plan,
and will also monitor general expenses which should rise
slightly in absolute terms, but dropping as a percentage of
core business revenue by approximately
8% by 2015.
With regard to profitability, the IGD Group, by increasing
revenue and controlling costs, will strive to reach an
EBITDA margin above 71% by the end of the plan.
With regard to financial sustainability, the new 2012 - 2015
Business Plan is focused on maintaining the Group's solid
capital structure and on reducing financial leverage in order
to reach a gearing ratio (debt/equity) in 2012 of less than
1.2x and not exceeding the limit of 1.4x. Toward this end,
the loan to value at the end of the Plan will be
approximately 52%, with approximately 65% of the debt hedged,
as allowed by the reference parameters and spreads.
The new plan also calls for total investments of
approximately €200 million expected to made over thelife of
plan,
€120 million for expansion and capex of the existni g
portfolio - through restyling and expansion of the prime
centers in line with the retail businesses, in order to
further increase appeal, as well as through the support of
recently opened centers working to reach full capacity - and
approximately €80 million for the development of the pipeline
- through new openings with good potential and innovative
projects like Porta a Mare (such as, for example, retail
centers in historic downtown areas). Asset disposals
totalling €100 million are also called for over the life of
the plan, as well as asset rotation and the constitution of a
potential partnership with institutional financial
investors.
With regard to Romania, over the life of the plan the Group
intends to continue investing in the requalification of
portfolio centers for a total amount of €12 millionin order
to adapt them to international standards and improve the
appeal for both retailers and potential investors. The Group,
has also selected a few Romanian shopping centers which are
no longer considered strategic worth approximately €8
million. The Romanian portfolio continues, therefore, to
generate cash for the Group and will pay dividends of
approximately €20 million over thelife of the plan.
With the new 2012-2015 Business Plan, therefore, the IGD
Group intends to continue its pursuit of sustainable results,
through the constant improvement of revenue, the cost of
financing and the value of the portfolio assets,
capable of guaranteeing appealing profitability for its
investors.
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This press release contains forward-looking statements and as such may contain elements of risk and uncertainty as they depend on future events and developments. The actual results may, therefore, be different than the forecast results due to different factors which include: the level of demand, supply and prices, the general global market conditions, the impact of
regulations, changes in the expectations of shareholder and other business conditions
IGD - Immobiliare Grande Distribuzione SIIQ S.p.A.
Immobiliare Grande Distribuzione SIIQ S.p.A. is the main player in Italy's retail real estate market: it develops and manages shopping centers throughout the country and has a significant presence in Romanian retail distribution. Listed on the Star Segment of the Italian Stock Exchange, IGD was the first SIIQ (Società di Investimento Immobiliare Quotata or real estate investment trust) in Italy. IGD has a real estate portfolio valued at €1,913.66 million at 30 June 2012, comprised of, in Italy, 19 hypermarkets and supermarkets, 19 shopping malls and retail parks, 1 city center, 4 plots of land for development, 1 property held for trading and an additional 7 real estate properties. Following the acquisition of the company Winmark Magazine SA in
2008 15 shopping centers and an office building, found in 13 different Romanian cities, were added to the portfolio. An extensive domestic presence, a solid financial structure, the ability to plan, monitor and manage all phases of a center's life cycle: these qualities summarize IGD's strong points.
www.gruppoigd.it
CONTACTS INVESTOR RELATIONS
CLAUDIA CONTARINI
Investor Relations
+39 051 509213 claudia.contarini@gruppoigd.it
ELISA ZANICHELI
IR Assistant
+39 051 509242 elisa.zanicheli@gruppoigd.it
CONTACTS MEDIA RELATIONS
IMAGE BUILDING
Simona Raffaelli, Alfredo Mele, Valentina Bergamelli
+39 02 89011300 igd@imagebuilding.it
The press release is available on the website www.gruppoigd.it, in the Investor Relations section, and on the website www.imagebuilding.it, in the Press Room section.
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