Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Introduction & Market Context
Immobiliare Grande Distribuzione SIIQ SpA (BIT:IGD) presented its first quarter 2025 results on May 6, showing operational resilience despite mixed retail performance. The Italian real estate company, which specializes in commercial properties, saw its shares decline 0.83% to €3.03 on the day of the presentation.
The results come amid a broader Italian real estate market that recorded €2.58 billion in investments during Q1 2025, with the retail sector accounting for €505 million. In Romania, where IGD also maintains operations, real estate investments reached €169 million in the quarter, with €111 million in the retail segment.
Quarterly Performance Highlights
IGD reported mixed operational results for Q1 2025, with shopping center footfall in Italy increasing by 1.3% while tenant sales decreased slightly by 0.4%. The company noted that results were affected by one fewer day in February 2025 compared to 2024, as well as the timing of Easter.
As shown in the following chart of operational performance indicators:
On a like-for-like basis, IGD achieved positive growth in key financial metrics. Net rental income from freehold properties increased by 2.4% on a comparable basis, while EBITDA from characteristic management grew by 2.1%.
The detailed breakdown of net rental income shows:
Funds From Operations (FFO) reached €10.2 million in Q1 2025, representing a slight decrease of 0.9% compared to Q1 2024. However, on a comparable basis (adjusting for perimeter changes), FFO increased significantly by 71.0%.
The following chart illustrates the FFO components and evolution:
Net income for the quarter stood at €1.6 million, down from €4.3 million in Q1 2024, primarily due to changes in the property portfolio and non-recurring financial items.
Financial Position and Debt Management
IGD reported improvements in its debt metrics during Q1 2025. The Loan to Value ratio decreased to 44.2%, down 20 basis points from year-end 2024. More significantly, the average cost of debt improved to 5.60% from 6.04% at the end of 2024, while the Interest Cover Ratio strengthened to 2.0x.
The company’s net financial position is illustrated here:
The debt maturity profile has been extended to an average of 5.1 years, compared to 2.6 years as of December 31, 2024. IGD maintains credit ratings of BBB- (Stable) from Fitch and BB (Stable) from S&P.
Strategic Initiatives and Disposal Plan
In a significant development, IGD announced its return to dividend distribution with a planned payment of €0.10 per share. The ex-dividend date is set for May 12, with payment scheduled for May 14, 2025.
The company also outlined an ambitious disposal plan for 2025-2027 aimed at reducing debt by approximately €100 million. The strategy includes partial divestment of Romanian assets (€70 million), development of three premium areas (€20 million), and disposal of other minor non-core assets (€10 million).
The disposal plan is detailed in the following slide:
IGD continues to expand its tenant mix with several new store openings in Q1 2025, including Courir’s first Italian store in Puntadiferro, IKEA’s Plan&Order point in La Favorita, and new food offerings from Dispensa Emilia and Mado.
The new store openings are showcased here:
The company also reported updates to its hypermarkets, with new openings under the Sole365 brand at Le Porte di Napoli and under the Coop Gruppo Radenza banner at Katanè.
Forward-Looking Statements
Looking ahead, IGD has maintained its guidance for full-year 2025 FFO at approximately €38 million. The company plans to continue monitoring debt capital markets for potential opportunities while implementing its disposal strategy.
The occupancy rate in Italy remains strong at 95.95%, with a Weighted Average Lease Break (WALB) in Italian galleries of 2 years, providing stability to future rental income streams.
IGD’s management has scheduled several investor relations events throughout 2025, including conferences in Paris, London, Stockholm, and virtual events, indicating continued focus on maintaining strong investor communications as it executes its strategic plan.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.