Immobiliare Grnde Dist Sl

course cooperator. Welcome to IGD's conference call presenting Q1 2026 results. Let me remind you that all participants are in listen-only mode. The presentation will be followed by a Q&A. In order to be assisted by an operator during the conference call, press star and zero on your phone keypad. Let me now turn the conference over to Mr. Roberto Zoya, CEO and General Manager of IGD. Mr. Zoya, please go ahead. Thank you very much. Welcome to all of you. Good afternoon. And let's start straight away so that I can leave more room for your questions. By way of introduction, let me say that this quarterly report confirms the pathway we started in April 2024, when I was appointed together with the new board, and you will see in my presentation that the pathway we started is still giving tangible results and constant and consistent over time. Let's move to page two in the presentation. I wanted to remind you of disposals and Romania. This is a topic we've been discussing a lot, but we've had disposals in the first quarter on 2026, are one and much better than two on the 21st, and the negotiations allowed us to persuade of eight assets for a total of 32.5 million. There are still seven assets to be used on, and the money present, that's Ploiesti Grand Centre, million and alone it's got 40 million and the other six are about 35, 36 million. So the goal for 2026 is the disposal of the six small assets so that in 2027 we can focus on the bigger assets and the more global assets. And then we launched a restyling, external restyling to get it ready for sale, for disposal. And so I reconfirmed our target for 2026 disposals for additional 30 million in line what we had disclosed in our business plan. As far as Romania was concerned, if we move to page 3 in our presentation, You will see KPIs are all growing. Net rental income on a like-for-like basis is up 2.4%. EBITDA, core business EBITDA, is flat, but mainly due to the fact that we have better spread our costs over the different quarters. And in the past, they were spread across the six-month amount. and it's across quarters, so we're fully in line with Q1 2025. FFO, funds from operations, is growing sizably, up 14.7%, landing at 11.7 million, and a group net profit of 5.7 million versus a net profit of 1.6 million recorded in Q1 2025. Of course, we thought a lot about the guidance we provided, and in February, we thought about it, and in our press releases, we gave, when we presented full year results, 255 full year results, we discussed of at least 45 million, And we're talking about FFO. Over the last few weeks, we felt some volatility. There was some concern felt by the market, especially due to the situation in the Middle East. So we want to be conservative in the way we disclose our guidance. But as you can see from page three, figures, somehow results, are reassuring and encouraging. make us confident that we can improve our results. If we move to page four now, let me remind you that yesterday we paid out a dividend of 15 euro cents per share, up 50% versus 2024. And therefore, we are back to having a growing dividend distribution. And I'm very, very pleased that To show you slide five in the presentation, because I was really concerned looking at the good results we had in January and February and March. I was concerned about seeing a decline in our figures because of the situation in the Middle East. Instead, we had an excellent operating performance. Tenant sales are up 4.7%, and that's really excellent. Outstanding, if we talk about grossly results, and footfalls are up 5.1%. And if we compare them to the national benchmark for CNCC, it's practically twice as much. The National Shopping Center averages up 2.5% and IGV footfalls are up 5.1%. Another very important piece of data is our hypermarkets and supermarkets. The ones we own are up 2.4%. And there again, there was concern because of the current situation and uncertainty that would impact March. As a matter of fact, instead, we performed well despite all the tension. On page six, I am back to showing you the idea I mentioned before. As you can see, it's a long pathway. It's like taking a hike in the mountains, a walk in the mountains. It's slow but constantly growing. So, in 2024, there were a lot of basis points of growth, but the growth here is slower. But the occupancy rate is still growing and it's a reassuring growth profile. And of course, there's a lot of work from the leading perspective because we want to both grow occupancy and at the same time, pick the right occupiers or tenants for our shopping centers. And we really made a start on our WALB that had been standing still for many quarters. Today, now we have 2.11 years WALB for Italian malls, because as I said many times, In addition to renegotiating new contracts with longer break options, we have the past legacy that is hovering because there were expiring contracts, so that is also being tackled. And last but not least, let me say, our upside for Italy is 1.3% on renewals or new contracts. And that turnover for the period accounts for 2.5% of Freehold Mall's total rent. In the past, it was 10.8%. And this quarter reconfirmed quantities and also quality of our upside in Italy. We invested a lot, and I'm moving to page 7 in the presentation, by the way. We invested a lot on anchor tenants. You know that larger food chains are very much supported by lots of funds who access their capital, and there's a pressure to really achieve growth. Many Eastern European rounds, Pepco is one, but there are many of Diem, for instance, IKEA, They want to come up with a big store, so they focus – well, they don't have their own big stores. They focus on shopping malls to provide customer service or pick up for online purchases. And we also work a lot on entertainment. I'm sure I've mentioned that before or I've discussed it with some of you. Entertainment in shopping malls, it's not just cinemas, movie theaters, but if you want – New ideas are more than welcome. This is the Ferrara one, and we've had excellent results in the Livorno shopping mall. And, of course, it's taking up space on the one hand. They also extend the time for visitors in shopping centers. And so that is also somehow important. helped by restaurants. And then entertainment, however, is very, very interesting. Let's move to page 8 in our presentation. And I'm saying retail is back. And I'm saying that again. In 2025, retail was the first asset class volume-wise, I mean investment volume-wise. And this is reconfirmed also in Q1 2026. In Q1 2026, We see that these $0.7 billion cut across the board. So there's outlets, factory outlets, high street, retail parks, you name it. So it has different levels of performance, but the Italian real estate performance and transaction market did really well. And retail is back in the focus of many investors. Let's move to page nine. And here again, the main financial indicators are improving. And LTV went down 20 basis points. We landed at 43.3% long term value. And weighted average interest rate, we'd already mentioned that. after the February deal, February transaction is 4.8%. When I was first appointed, if you remember, it was 6.1%. Now we are at 4.8%. So I think we really did a good job. And ICR is also increasing, going from 2 to 2.3 times. So we are starting to be in line with the main ratios. Let's look at the main figure on page 10, we're talking about net rental income from freehold. What I'd like to underline, and we've talked about it extensively with all colleagues, as you can see on the slide, net rental income from freehold on a like-for-like basis is growing both in Italy and Romania, is somehow offsetting the change in scope of consolidation. We lost 0.3 million in the first quarter due to the change in consolidation scope because of the disposals in Romania, but that was more than offset, so twice as much with the like-for-like change in growth both in Italy and Romania. And that takes us to a net rental income from Freehold landing at 25.2 million with a 2.4% growth on a like-for-like basis. EBITDA wise, here again we have a delta in the scope of consolidation and A number of costs were spread differently across quarters. It's constant, but it's like a growth somehow because we've disposed of assets. And despite those disposals, we managed to retain core business EBITDA in line with expectations. And then the good news that we also shared in the last quarters is the financial situation. part and here we are on page 12 and here you see that the financial position in a quarter is already benefiting 1.6 million thanks to debt reduction and the reduction in the weighted average interest rate. So most of the results achieved most of the performance generated in this quarter is generated by finance. The core business like-for-like situation is then offsetting the revenues that we're missing out on because of the disposals. And therefore, our financial position is still perfectly balanced. So FSO, despite the change in consolidation scope on page 14, sorry, 13, 1-3, The change in consolidation stop is 0.2, but the different number of items play a role so that we land at 11.7 million in the first quarter. It's a delta of 1.5 million and still up 14.7%. Hence, the group net profit, look at page 14 now. Well, the final assessment made in end of June and end of December, so capex investments, we have two restylings underway, Imola and Cesena, they're all expensed. And all these items account for minus .07, which is much lower than the benefit we get from the financial management. versus Q1 2025. And the group net profit is 5.7 million versus 1.6 million in Q1 2025. We are on page 15 now, our net financial position. Most important piece of information here, remember that our target is to get 4%, 40% LCV. We are... still on our pathway to reduce it. From 43.5 down to 43.3, the weighted average interest rate also went down. ICR went up, and the net debt on EBITDA is flat. It's still the same. For all of you, let me remind you about Groups Maturity Profile going forward. I'm looking at page 16 right now. And we are in a very comfortable position. The first maturities are in 2030. And indeed, we are always very careful. We're very focused on whatever is happening around us to grasp any opportunities that may come up, both to reduce interest rates, cost of debt, and also to revise our maturity profile. But right now, We are definitely confident because maturities are further ahead in time. And the average maturity is 5.3 years. On page 17, we see the balance we've managed to strike between market and banking system. And we're talking about debt breakdown, of course. The agency is in early November 2025. It was all banking debt almost and with mortgages. And with the issuance of $300 million, we've rebalanced today. Market is 38% roughly. And more than anything, we've freed up $680 million worth of assets, unencumbered assets. And therefore, secured and unsecured ratio is 40-60%. 40 unsecured, 60 secured. So we are in a financial position that is reliable, reassuring for both maturities and that breakdown between market and banking system and the right balance between encumbered or unencumbered assets. All of these transactions, we're on page 18 now, Today, being ESG compliant and having buildings, real estate, and policies that are sustainable over time is indeed a plus. And the banking system today acknowledges or recognizes this, and they see this as a window that can only be open provided some requirements are met, and we do meet those requirements. We had a nice small transaction, but a very appealing one indeed because an innovative transaction. On May the 16th, 10 million with Intesa San Paolo. It's a green credit line facility, and we are now among the first groups to have the sustainability report certification and green financing framework that proves that we, of course, want to be ESG compliant. We have a number of, well, in our agenda, there are a number of dates. We have corporate and investor relations agendas. We recently went to London and a lot of interest was brought shown towards our company. Also, thanks to the growth we have achieved starting from 2024 and the possibility to further grow going forward. We've tried to reconfirm all of these trends for 2026 as well because we've talked about this outside of Italy and we've seen that there's a lot of interest outside of Italy too because IGD is considered to be an attractive player, an attractive company. All that and also our corporate agenda on August 4th will have the six monthly results and on November 12th we'll have the results for the first nine months of 2026. Having said that, you have all the annexes that you can read on your own. but I think it's much more interesting to take your questions now. Thank you very much. This is the course collaborator. We are now starting the Q&A session. If you want to ask a question, please press star and 1 on your phone keypad. To be removed from the Q&A queue, press star and 2 on your phone keypad. Please press use your phone handsets to ask questions if you want to ask a question please press star and one on your phone now first question comes from the line of Simonetta Chiriotti with Mediobanca please go ahead madam good afternoon I have a couple of questions but first is about the cost of debt. You did a lot of work. You've met the main maturities. You've worked on maturity profile and costs. Could you elaborate on whether or not we've come to the ideal situation concerning those items. And then the negative items as impairments and fair value adjustments in your P&L. In this quarter, you don't have the official assessments and valuations, but could you at least give us some guidance in that respect? Thank you very much, Simonetta. Let me start on the first question. We did a lot of work, indeed, and this morning, still, while we were talking to the board of directors, we want to see opportunities. Today, The situation is somehow different from that of the past. Spreads are a bit more appealing, quote-unquote, whilst base rates, Euribor, just to be clear, are growing. We were around 2.3%. 1.2.2, now it's 2.8, 2.9. Generally speaking, our concern is that it's going to grow further. So far, we have only fixed rates until August. The installments from the bank loans, because the bond is fixed rate 4.45, the installment will be worked out in August for the second part. But, first of all, between now and 2031, we still have a bank loan, so-called Helmet 2, which was granted by a pool of 10 banks, if you remember, which is expensive, 3.2, that's the spread, and there we can work on maybe having another bank loan or bank financing. And we can have an early repayment of that and then reduce the cost of debt. And the second one, it could be a possible issuance. And there too, right now, the figure that we could aim for is not very different from our current cost of debt. So I would like to wait and see for a few more weeks to see if things are calming down because there are quite a few issuances, even recent ones were made, also in the real estate industry. But today, May the 7th, is probably not the best time to think of an issuance. But the answer I'd like to give you is that we're not standing still until from here to 2030. we have two opportunities to further reduce the cost of debt, either with new agencies or with a new bank loan, bank facility. And also, as to maturity profile, I wouldn't mind engaging in transactions, $100 million, $150 million worth, and reduce even the maturities in the year. The first one, 300 million in less than 800, which is our NFP. If we were to reduce 150 instead of 200, that'd be better. It was just to tell you that we are being very careful. We're very focused on what we do. We're both talking to banks and to the market, capital markets, of course. As to our income statement or P&L, we have two items, and one is a structural item that's about to come to an end, and it's IFRS 16, which is only affecting a master leave on Centro Nova, Bologna, because Fonte del Corallo has come to an end. So going forward, it would be February 2027. That's the end of it. And then the part, the item that would affect the P&L will no longer be in existence in February 2027. In the first quarter, we had a lot of capex, both in Italy and in Romania, on both the assets to be disposed of and the bigger asset I mentioned before, the big asset I mentioned at the beginning. And the rule we're giving ourselves is that until we have an expert report, until we have an assessment, we try and impair. If we, I'm talking about the external restarting of eMOLA. where we have a new facade, we changed the logo and everything, so I expect that market conditions being the same, there should be a write-up, and that would enable me on June the 30th, at the end of June, to offset a technical impairment, a technical write-down. So the rule we have is, whatever is capex, we get invoices, we expense invoices, and then we compare them, initial value plus CAPEX, and we give them for the expert report for the assessment. We are looking at the bottom line, of course, and it's an improvement going from 1.6 million to 5.7 million. And that's why we have these impairments and write-downs. Thank you. Next question comes from the lineup. Steven Bowman, ABN AMRO. Please, sir, go ahead. Hi.

Good afternoon. Thank you for taking my questions. Maybe question on the operating metrics, so food falls up, good metrics there, but given the rise in energy price, I can imagine that since the Iran conflict, food fall, for example, have come down. Could you provide some comments on food fall or consumer behavior in general, let's say from the past month?

That's my first question. He thought you were asking the same question at the same time.

He didn't know you were waiting for the answer. So, he'll give you the answer to the first question first, right? Okay. When it comes to the impact given by the war, we haven't seen them so far because the war in the Middle East, started on February the 27th, but I said before that I was very concerned at the time for March, and instead March went just as well as January and February. The first figures in April are also comforting somehow, so We're not yet experiencing that impact. I would like to say that we moved very soon, very early for the cost of energy, for instance, and we told ATTEND that we've already blocked prices, 70% of prices for 2026 and 2027. So even tomorrow, the energy price were to explode. In our shopping malls, 70% of the energy is covered and it is at a fixed block price. And I can also say that for all tenants, it was a good news piece of information that we gave them. They thanked us for getting that condition because we managed to get that 70% blocked. What we will keep monitoring should be conflict and the warmth go on for many more months is mainly connected to consumption, trust, confidence, but right now I have no evidence of people buying less or witnessing less footfalls.

Okay, very clear. Then a different question, second one. Do you see optionality to improve your earned fund structures in 26? So, for example, selling or buying part of the food or the juice funds. And when could you do that, if you see any possibilities here?

Well, what if they did it?

Sorry, could you say, could you repeat, was it earned fund structure?

Yes, so you have the food and the juice funds. as from the restructuring before, but is there some optionality to improve those structures? I can imagine with that, the better cost of that, maybe you might buy back some parts of those funds. Yeah, can you improve those funds?

For the food and juice fund.

Well, let's answer in two parts. We have 40% of the juice fund and we have 40% of the food fund. The juice fund is mature because it's a fund that was set up in 2021. So we are working with our partner, ICG, thinking of a dismissal of the fund's portfolio. And then, after that, a possible buyback of stakes, but, of course, the main part for us, the headway for us would be total disposal. And then the put fund set up in 2024, it had a black period of two years that expired in April 2026, so a month ago, what we are going to do is start and look at asset disposal. So for the time being, there's no optionality for buyback. In both cases, we have a rights of first refusal or offering, and Should there be a financial opportunity to buy back, we would have a right to do that. But more than once, we've said that we want to get to 40% of LTV. Now we are at 43.3%. So we don't think it's the case to think of buying hypermarket back. So for the time being, so absolutely not. And on the juice fund, we have an ongoing sales procedure or disposal procedure to dispose of the portfolio to third parties.

Okay, clear. Thank you.

Let me remind you that if you want to ask a question, you can press star and one on your phone. The next question comes from the line of Federico Pezzetti with Intermonte. Good afternoon to all of you. Thank you very much for the presentation. I have a couple of questions. Asset rotation. Could you give us an update? Are there any novelties on the disposals of other assets, for instance Livorno and other minor areas, if I remember correctly? About 30 million, I think the total worth was. So I would like an update on that. And then, out of curiosity more than anything else, 18 months have elapsed since you presented your business plan. The results you have achieved so far are excellent. Have you started thinking about a possible update of your business plan, maybe at the end of this year or when? Or maybe you don't know yet, but are you thinking about it? Thank you very much, Federico, for giving me the opportunity to answer on those topics. As to asset rotation, definitely yes. We put it in the presentation as well. We disposed of all the flats in the portfolio. There's still one missing probably. I think it's Livorno we're talking about. There were two recent proposals. I don't want to give any discount because it's the last flat. It's beautiful. It's... Top floor, it's on the water, above the water. I could go and live there when I no longer am the CEO of IGD. It's a penthouse, beautiful. And the Livorno areas are very appealing. We started some conversations somehow. We had a first permit for hotels. And as you probably read, hotels in... Italy, now in cities of secondary importance, is being very successful. So in 2026, our main effort will be focused on the three main areas, the largest area, which is the hotel, the area devoted to hotels. Let me tell you that since the beginning of this year, we started work Construction works for the tourist port, and it's a JV with a specialized company in port and marinas. It's a Malta-based company and a 30% stake that still is owned by Azimut Benetti, which is the largest mega yacht builder at global level. So they are working, and that really attracted a lot of interest from the part of hotels. So right now on disposal in Romania, we discussed it today, and we are really working hard on the three main areas in Livorno as well. And as to the other part of the question about the business plan, we are... halfway through the plan, so we are at a very good moment in time for the targets we've given ourselves between now and 2027, we have to think about it indeed. And this morning during the board meeting, we said that close to the six-monthly report, August, we think we could give you some visibility but I would like to have it from my board first and from the shareholder to see whether we can revise something, maybe revise our business plan target, maybe extend the plan a little bit. So I do confirm that we are working on it. We are thinking about what you just mentioned. I don't have an answer today, but... Even this morning during the board meeting, we were asked, when we get to the six-monthly report, the interim report, provided there are no specific events taking place in the market because of the war or something similar, but the market is expecting probably an update of our business plan. We travel around. We are an appealing corporate for many investors. We've seen that. But one of the questions that we are being asked is, okay, very well, you did outstandingly. You did a lot. And now what is the growth you expect to achieve going forward? We still have a growth. You've seen it. You've witnessed it. And it's a constant growth. We still have two levers there. One is the cost of debt. As Simonetta Cleoti asked before, we could further work on the cost of debt so we could improve FFO, our FFO, and we still have 1.8 points of occupancy that we can achieve from year to 2027, and therefore that would mean improving our operating performance. And we are also working a lot on our business unit for third parties. We just signed an agreement, a contract with Krialos, who is one of the most dynamic SGRs. They have $14 billion of assets under management. And we were picked for both the sales and real estate management of the Poseidon project. shopping mall in Carini, and it's quite a meaningful contract for us, not just financially, but also proving everyone that we can be in the market and therefore acquire new services to be rendered. The IGDIC today is with a standalone growth on the one hand, a feasible growth, a viable growth, which is indeed appealing, but also time has come towards year end or first month of 2027. Time has come for us to launch either a new plan or make adjustments to the plan we disclosed beforehand. I think this is important for all those who are focusing on IGD. If we can see a pathway, a fast pathway to a 40% LTV, that would mean also having and showing a dividend policy that provides visibility on future dividends. But as I said before, our dividends were increased 50% versus 2024, and this is the trend we want to retain. We want to pay out dividends. with utmost attention paid to LTV, but we have all the right foundations to do that. These puzzles and the Romanian portfolio has no debt, so the cash we get in, and the cash we can use to reduce our debt exposure, or that we can reinvest in our core portfolio, so we have a lot of growth levers that we could use. Of course, we have to somehow interact with the market, providing a longer business plan. It's not official, but this is our take, and this is something I proposed to the board today as well, to start thinking about this, revising our business plan targets towards year-end. Thank you very much. For further questions, you may press star and 1 on your phone keypad. Mr. Zoya, for the time being, there are no more questions in the queue. Very well. Thank you very much and talk to you soon. Thank you all for joining us today. Have a good day.

Thank you.

This is the course cooperator. The conference call has come to an end. You may disconnect your phones. Thank you very much.