Immobiliare Grnde Dist Sl

Presentation Q&A will follow. 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 Zoia, CEO and General Manager of IGD. Mr. Zoia, you have the floor. Thank you very much. Good afternoon to all of you. Let's hope we can soon go on holidays. and let me start with a presentation that was sent to you and it was also published on our website starting from page two and with the satisfaction that we disclosed the main KPIs as being very positive and net rental income freehold on a life-for-life basis are up 4.1% EBITDA is following more or less the same trend at 3.4% and then FSO strong growth versus H1 2025 landing at 21.1 million another very important piece of information as far as we are concerned is the group net profit standing at 20.6 million which is roughly double of what we had in the first half of 2025. But of course, all that is indeed supported by operating performance. Very interesting operating performance. You find it on page three of the presentation. Tenant sales are up 4.6% and we also introduced, because we have the National Council for Shopping Malls in Italy, released data on the 30th of July, so we're also adding their data. So the National Council released 2.2%, whilst we had, we were up 4.6%, so we are much higher than the national benchmark. Let me tell you that the CSCC Observatory is recording 330 data shopping malls versus the 13,000 that are that are invoiced for and it's focusing on shopping malls and we definitely outperformed the benchmark same applies to the footfall CNCC exposed 1.8 as a system average IGD was up 4.3 percent we are definitely higher than the domestic benchmark and then also hypermarkets. We still have eight hypermarkets after the disposal we made with the juice and food funds. Well, IGD's hypermarkets are up 1.3%. Nothing happens by chance. Tenant sales are going well. Food falls are going well. So it's easier also to perform a leasing activity. And it's still going on. and occupancy. Our occupancy is going up. The closer we get to the destination, let's say, the more difficult it is to have major steps forward. And what I would like to stress is the occupancy level that is still constantly growing. The work we are doing is starting to give benefits and results. We started in 2024 with less Emanuela Caleffi for renewals with the same tenant and also in case of new contracts. Over this first half year, the renewals and turnover of the peer representative is 5.8% of the freehold Malls Total Rent and we are renewing practically with 6.8% so we're doing the same amount of contracts we have in 2025. Let's now move to page five in the presentation. I would like to show you with these pictures show you not only for the brands that we included but for what those brands represent overall We have anchor tenants who are growing important, who can attract customers and visitors. And today, for instance, restaurants and catering is going really well. And then Normo. Normo is a store that really generates a huge traffic in the shopping malls. Ikea. has a new strategy and it's focusing on stores where they don't have a warehouse. They have these points of sales where they can, customers can order online and then OOPIM, the OVS group, is working really well and this brand name seemed to be disappearing at first, but on the reverse trend and they are providing excellent, very good results. Also very important is in food and beverage. We have to diversify our offering vis-a-vis competitors. We're working a lot on entertainment. We have two, one in Ferrara and one in Catania, with areas that are sizable, 1,000, 1,500 square meters. and they definitely attract visitors, especially younger visitors who can stop longer at the shopping mall and therefore increase consumption and therefore live and experience the shopping mall. If we move on to page 6, here we wanted to show you our strategic assets that are at the very core of our business plan. We are really working hard on reconfiguring and repositioning, restyling, remodeling our shopping malls, both from the architectural viewpoint, so as I said, remodeling and restyling, and also sales remodeling. And then, of course, we are constantly working on our merchandising list to streamline it and improve it. We are optimizing space. and some of it is devoted to entertainment so we have to build ad hoc areas and also we have to be very prompt in reacting when it comes to catchment areas with the right marketing strategies and also on the digital side and I'll tell you more about it in a minute. See how all of these actions are generating results, right? So occupancy is going up, walk is going up, rent is going up and the overall asset value is also going up and I'll tell you more about it then in a minute. So generally speaking I find that our strategy is very consistent between what we do. We do the talking but also we provide results that are rewarding for us but also are rewarding for all those who are involved with us. We do things to measure with clear KPI. I think it's very interesting as well. For example, for what we mean by this, we move on to page eight to see them. We invested, and it's nearly finished, the Centro Leonardo in Imola. It's a shopping mall. It's very central, very much connected with the urban system. We've completely refurbished the food court. and we've finished the step-start as well. If you see the entry, so we just started working on it and footfalls went up by 7%, so definitely we're even outperforming our expectations. And then Tiburtino in Rome, we worked on the sales area. We captured quite a few anchor tenants We are going to invest in the second half of the year and the first half of 2027. We will invest more on the fast path of that shopping mall. Ciburtino for us, it's a very important asset with a meaningful value for us. And we of course have to face competition, but the results really show us that Our hard work managed to protect our asset. And I told my team, let's now invest, let's now start, and we will invest on the Centro Cibuttino Roma. Centro Farca in Milan is doing really well. There's a notorious multiplex cinema. and it's doing really well and we built an area that can enhance the traffic going from the shopping mall to the cinema multiplex. It's very much family-oriented. There's a very strong catchment area, Viale Sarca, Festo San Giovanni and we also saw with a survey through our apps to get answers from the visitors. It's very much appreciated by families and we are investing in entertainment for families, for kids. We want an easier access between the multiplex cinema and the shopping mall that will indeed also attract people to the food and beverage areas. Page 11. This is the major effort we're doing on the digital side and going forward I think this is going to be key to attract customers especially young customers but not only the younger generations because we are also attracting people who are not just necessarily young people but also of an older age and the young people. You can have a loyalty card. It's highly customized. You can have ad hoc discounts or you can have freebies. You can get products for free. And this is to really attract consumers so that they can fill in the form, the app form to have exclusive benefits. Over the last six months, We increased the profiling in our CRM. The profiling went up 40%. So we have 40% more clients that were profiled, but also we have 40% more clients who in turn can give us their feedback, can give suggestions on how to manage the shopping mall at best for them. It's very useful for me to hear from a client I would like to have more entertainment rather than a restaurant, for instance. We never forget that we have sustainability targets to comply with, ESG targets. We are really speeding up the implementation of renewable energy systems and plants. We are completing Thank you very much. Emanuela Caleffi The fluctuations we read in the papers every day, we've really managed to basically mitigate them sizably. So renewable energy means environment and also means having a benefit from a financial perspective. Social, we've focused a lot on the training of our teams. and also in the wake of the results we have achieved over the last couple of years after I was appointed, we really wanted to reward our personnel, our workforce. We have a special in-house welfare or at least so we are told it's a very ambitious welfare system and we've exceeded by 14% to really motivate our personnel and reward them, reward our teams, our workforce. We work a lot on our governance as well, so the so-called legality rating, we have the fifth renewal with the maximum score, and we are also working hard on cyber security at governance level, because we are making our full staff aware of the fact that cyber security is a thing that has to be We are really delivering on our promises and up until today we've disposed of eight buildings out of 15. We also have some negotiations underway. And what I see on this slide is that by year end, by the end of 2026, we foresee the further disposal of approximately 15 million. So this is fully in line with what we have said about the disposal we had in the pipeline for Romania. So 21.8 million in 2025, 10.7 million in 2026, and we expect another 15 million of disposal by the end of 2026. Let's now talk about Italy. We're now on page 14 of the presentation. Here again, as I always say every time I speak in Africa, retail is back. And for two years now in a row, it's back to being an asset class that is very appealing for investors. is very clear you see it today the fundamentals of retail are absolutely sound these are the other asset classes that are starting to somehow encounter some difficulties because of pricing because of tenant quality or other factors so it's still it's back to being the first asset class by investment volumes they're talking about 2.2 billion that led to concessions in the The first half, and that is a very important factor, because if you... We also attached a survey led by Coffin, so there's a new retail opening, about 6,000 of them over the year, driven by food and beverage and fashion, with a plus 5.2% in shopping centers. So that means that in addition to being street... Thank you very much. Focusing on Southern Europe. Spain is really half the lion's share. I also have some data of Spanish shopping malls. The KPIs they have, I mean, Italy is nothing to envy because we have the same KPIs as in Spain. And then an asset management share bought 1.5 billion worth of of LSG, of the family of Roberto, the late Roberto Balcani, the heirs decided to dispose of their portfolio. I know that portfolio very well, both in Madrid and Barcelona, shopping malls that are practically identical to the Italian shopping malls. If any one of you knows Rome, You go and see Roma 2, it's more or less the same as you would have in Spain. Generated, created by the Balcani family. So 1.5 billion. It means that in Spain, Spain is starting to focus on pricing too. There's a tension there. So whenever I'm meeting global investors, almost all of them start paying after Spain. and I really hope that in and I'm confident that in H2 there will be some important deal so that we can get out of the of the limbo the limbo where the retail stayed for quite some time and therefore valuations can come back on focus and The four men's tennis sales in football in Italy are exactly the same as the Iberian Peninsula. Spain and Portugal, we are definitely better than France, we are definitely better than Germany, and definitely better than the Scandinavian countries. So today retail in Italy is doing... Southern European retail is the one that's talking at best right now. Looking back to IGV and on page 15 now, we had an increase in our portfolio that went up 0.6% and I'm going to really stress that without touching rates. This 0.6% growth in our portfolio is exclusively driven by the performance of our net rental income that plus 4% and if you tie it in with the DCF model you of course end up with a write-up with a revaluation and I've seen some higher valuations percentage-wise but let me say that I'd rather stay with a plus 0.6% but I know that that I have a portfolio that is at market value and therefore I am very happy, very pleased that without touching rates we still have a write-up of our portfolio that is of course helping our people sell indeed especially the group net profit is affected by it which is an offspring of this type of performance of this item despite the disposals our portfolio is more or less the same, 1.812, and now it's 1,802,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 Best Performed is shopping malls in Italy that account for more than 80% of IGD's total portfolio. So our core shopping mall portfolio is the one that generated the highest result, 0.7%, hypermarkets, as a fixed contract, long-term contract, I mean. Of course, there's not much... There's not a very big space for further upside value-wise. And then page 17, our LTV is lower despite the dividend we paid out in May. And it's really telling us that what we produce can withstand or whichever can withstand the paying out of the dividend as you can clearly see from the figures. It's interesting that it went up. ICR went from 2 to 0.3 times. Slightly lower in weighted average interest rate. And we'll see in the second half of this year what the policy to be applied will be. Thank you very much. that there might be some somehow minor change. On page 18, you see a very important slide. Despite the change in consolidation scope leading us to declining net rental income, of course, if I dispose of assets, I no longer have the income. Thank you very much. that is still alive, ongoing, and it has an impact because of IFRS 16. It's more of an accounting effect more than anything else. It's point funding, but it's rental income that can offset the changes in quality. Good news, but We've already talked about it during the first, well, Q1 results. Our financial position, financial management is providing the expected results as we reduced our debt and the cost of debt was also reduced. That, of course, generated a benefit with a financial position that at the end of the day Again, it has a positive sign on the FSO generated by the company. On page 21, you see an EBITDA and the 3.7 million of the change in financial management adjusted is improving and therefore lead to 24.1 million that is to say the FFO for H1 2026. The group net profit, page 22, is affected by financial management and it's not affected by the asset write-up because the slight adjustment point something Pay-a-value adjustment offset by the capex for the period because we invested. I showed you Emanuela to set an example. So with that small write-up, we really repaid the capex for the period. Some write-down we have in our portfolio. We are on page... 23, the same thing as you saw before. Here again, we paid out dividends for 16.6 million, but the net financial position went down from 789 to 781. Loan-to-value went up 30 basis points. The weighted average interest rate was also improved. ICR improved. and the net debt on EBITDA is still flat at 8 times. Let me remind you, but I'm sure you're all aware of it, maturity profile, we all have it today. We are in a very comfortable position. The first maturity is in 2030, so we are definitely quite comfortable with everything we have ahead of us. and, as always, we're always very, very careful. We're always very much looking at market opportunities to have one-offs, one-off transactions on our debt, but they have to be accurate vis-à-vis the current situation. However, having four years ahead of us really makes it Thank you very much. Thank you. Emanuela Caleffi The MTA indicator is at 0.03 and it's part of the many growing trends or growth trends we have discussed today and disclosed today. I have assumed what we gave you guidance of 45 million for FSO during Our business plan presentation in 2025. Today, it was already double digit versus the previous year. Today, what I can really say, the FFOs, and let me underline it, it's going to be at least 46 million. Why do I say 46 million? Because Right now, when there's a lot of volatility around and where every day there's some concern, we have to, I'm talking about macroeconomic factors mainly, every day we have something to worry about or be concerned. So from my side and my company's side, we think it's worth showing, indeed, being conservative, but at the same time, You will read it as you think it best, but I really hope that if it's not November, it's going to be when we do the full year account. I think we can further improve it, but today what I can disclose, what I can say, looking at all the different factors, I don't want to make promises that I cannot deliver on. We're very close. I did not see 46, but I said I pleased 46 to say we're going to deliver on that and then maybe see what happens in the coming months. We confirmed, we reconfirmed a number of, well our agenda is very intense. All the road shows we went on during this first half were very interesting and we met Almost all of the market partners or investors, especially those specializing in European real estate, and that really enabled us to get feedback, suggestions, have a dialogue with investors, and really talk about them, about the future of our company going forward. And it's now safe now. If you go back to April 2024 with the stock price at 1.4 it's quite big now. The goal today that was still reiterated by the board meeting this morning is that today a priority is to grow, grow our FFO, our net profit, grow our KPIs and With an LTV of 43, it's not easy to think of new investments, but if we think of asset rotations and something coming from the Romanian disposals, I think that this company in the medium term is really willing to grow sizably. Unless you have specific questions, I'm not going to focus on the appendix where you can see our tenants, key tenants, the merchandising mix. We're not going to dwell on that, and I'd like to leave more room for your questions. Thank you very much. Thank you very much. This is the course collaborator. Let's now start the Q&A. If you want to ask a question, press star and 1 on your phone keypad. To be removed from the Q&A queue, press star and 2. Please use your phone handsets to ask the questions. If you want to ask a question, press star and 1 now. First question comes from the line of the Arianna Terazzi with Intesa San Paolo. Please, madam, go ahead. Good afternoon to all of you. Congratulations for the results achieved. Thank you very much for your presentation. The first question is on the consumption scenario you have from your privileged point of view somehow and the relationship with tenants and everything, the attitude of consumers, the inflation that may be back-end loaded, but what do you see? as possible impact on some, I don't know, product categories or so. And then another question, market conditions. Do you think it's reasonable that transaction in Romania can take place at book value? Thank you very much, Arianna. So consumption, the consumption universe, Let me wear the hat of the chairman of CNCC, the National Association of Shopping Malls. Data were released at the end of July. When it comes to consumption, product categories We have the same benchmark, we at IGD, as the data disclosed by CNCC. Consumer electronics is growing. If you think about it, that's a typical product you buy sitting on your sofa, and you buy it online, but the fact that our physical store has 3.4% is 3.4% higher than the national benchmark. It means that consumption is there, and the average ticket is not low when you talk about consumer electronics. Personal care and health, there were booms in 2025, but the trend is still positive, consumption-wise, and also positive in the Services and Fashion Apparel. So right now, according to me, I'm not saying that there's a climate. I don't think, I wouldn't bet on a very big growth of the products for the home, so to say, because post-COVID, it did a lot, it sold a lot of and practically people build a second office at home and that kind of product maybe is not so much the purchase of those products is slowing down but I do not yet see a crisis of consumption considering that we have shopping malls who are focusing on families so the quality of their purchase is focused on Maybe essential items, low-cost fashion, food services. So consumption-wise, we are positive as to the trend of consumption. And to support my statement, there are 6,000 new retail openings to support that, technically. Of course, their sales do not have an impact on my P&L, but 6,000 new openings mean sellers who see a possible increase in consumption. Your question on Romania, a good question. It's not by chance that looking at the results achieved, Of course, we applied some impairments. The idea and the objective is to sell at book value, as we've done with our portfolios. Above and beyond the disposals, Romania is worth 77 million. And so in this half year or two, we had a write-up in our portfolio Thank you very much. Thank you. Demand and supply get closer if they have to interact, as the $14.15 million stated its book value. Thank you. Let me remind you that if you want to ask a question, you may press star and 1 on your phone. For further questions, press star and 1 on your phone. Please be reminded that for further questions, you can press star and 1 on your phone. This is Zoia. There are no more questions for the time being in the queue. Thank you very much. Housekeeping Info, let me share this. The team and myself are available for further phone calls you may want to make or to clarify any further doubts or questions you may want to. Above and beyond today's Q&A, we are here available at your disposal to answer further questions, so don't be shy somehow. and do get in touch should you need additional information. In touch with me or my team. We are available to you. Thank you very much and have a great summer. This is the course operator. The conference call has come to an end. You may disconnect your phones. Thank you.