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Introduction & Market Context
Immobiliare Grande Distribuzione SIIQ SpA (BIT:IGD) reported a strong return to profitability in its H1 2025 results presentation on August 5, showcasing a significant turnaround in financial performance amid a recovering Italian retail real estate market. The company highlighted that the Italian real estate sector continues to grow, with more than €13 billion in investments over the last 12 months, including approximately €2.2 billion in retail investments, representing a 361% year-over-year increase.
IGD’s results reflect the initial positive outcomes of its 2025-2027 Business Plan implementation, with key financial metrics showing improvement despite ongoing market challenges. The company’s stock closed at €3.165 on the presentation day, down 1.11% but still near its 52-week high of €3.295.
Financial Performance Highlights
IGD reported a dramatic improvement in its Group Net Profit, which reached €10.6 million in H1 2025 compared to a loss of €32.5 million in the same period last year, representing a €43.1 million positive swing. This turnaround was driven by multiple factors including improved operational performance, reduced financial costs, and positive changes in fair value adjustments.
As shown in the following chart of the Group’s Net Profit evolution:
The company’s Net Rental Income on a like-for-like basis increased by 2.9%, while Core Business EBITDA grew by 1.4% on a like-for-like basis to €49.0 million. These improvements reflect the company’s effective asset management and leasing strategies.
The following slide illustrates the key performance indicators compared to June 30, 2024:
Funds From Operations (FFO) reached €19.8 million, representing an 8.2% increase compared to H1 2024. This growth is particularly notable as it demonstrates the company’s ability to generate increased cash flow from its operations.
The FFO growth is broken down in this chart:
Operational Achievements
IGD reported strong operational metrics across its portfolio. Tenant sales in Italian malls increased by 1.0%, while footfalls rose by 3.9%, significantly outperforming the national average of 0.8% reported by the National Council of Shopping Centers (CNCC). The company’s hypermarkets also performed well with sales increasing by 2.5%.
The occupancy rate in Italian malls reached 95.99%, demonstrating IGD’s effective leasing strategy. During H1 2025, the company signed 43 renewals with existing tenants and 42 contracts with new tenants, representing 4.3% of total mall rent.
The following slide details the company’s leasing activity and occupancy trends:
IGD highlighted several significant new store openings in its Italian properties during the semester, including international and national brands such as PINALLI, LEGAMI MILANO, MANGO, CALLIOPE, HAPPYCASA, and SEPHORA. These new openings strengthen the tenant mix and enhance the attractiveness of IGD’s shopping centers.
The company’s merchandising and tenant mix shows a balanced portfolio with fashion representing 48.4% of the mix, followed by culture, leisure & gifts at 11.4%, and electronics at 10.1%:
Strategic Initiatives & Portfolio Management
IGD’s core portfolio value increased to €1,545.3 million, up 0.48% compared to FY2024. This growth reflects the company’s successful asset management strategy and the resilience of its retail property portfolio.
The market value breakdown of IGD’s portfolio is detailed in the following slide:
The company made progress on its strategic disposal plan, selling three assets from its Romanian portfolio during H1 2025 for a total of €13.8 million, all in line with book value. These disposals are part of IGD’s strategy to optimize its portfolio and focus on core assets.
IGD also reported improvements in its debt structure, with the average maturity extended to 4.8 years (from 2.6 years at the end of 2024) and a reduced weighted average interest rate of 5.5% (down from 6.0% in FY2024). The Loan to Value ratio remained stable at 44.4%.
The company’s net financial position improved to €800.9 million as of June 30, 2025, compared to €806.5 million at the end of 2024:
Sustainability & Digital Innovation
IGD continues to make progress on its environmental sustainability targets as part of its 2025-2027 Business Plan. As of H1 2025, 82% of its shopping centers have received BREEAM certifications, and the company has increased its photovoltaic installed power by 48.4% compared to 2024, reaching 4.6 Mwp.
The company’s environmental sustainability targets and achievements are outlined in this slide:
On the digital front, IGD reported that its loyalty app has been launched in 9 shopping centers, with plans to extend it to 11 more centers in 2025. The IGD Connect platform is now active in 28 shopping centers, with app users increasing by 55% in H1 2025. These digital initiatives are designed to enhance customer engagement and provide valuable data on shopping behavior.
Forward Outlook & Guidance
In a significant vote of confidence in its business performance, IGD upgraded its FFO guidance for 2025 to approximately €39 million, representing a 9.6% increase compared to FY2024. This is a 2.6% improvement from the €38 million guidance announced in March, reflecting the company’s strong first-half performance and positive outlook for the remainder of the year.
The upgraded guidance is highlighted in the following slide:
This upward revision aligns with the company’s Q1 2025 earnings call, where CEO Roberto Zoia had hinted at potential for improvement beyond the initial €38 million guidance, stating, "We confirm our guidance of 38 million, but you understand that for what we are doing now, lowering costs and all the actions we’re undertaking, we can do better."
IGD’s strategic focus on asset enhancement, cost management, and digital innovation positions it well for continued growth in the second half of 2025 and beyond. The company’s return to profitability, improved operational metrics, and upgraded guidance signal a positive trajectory as it implements its 2025-2027 Business Plan.
Full presentation:
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