Earnings call transcript: IGD Q2 2025 reveals profit boost and market optimism

Immobiliare Grande Distribuzione SIIQ SpA (IGD) reported its financial results for the second quarter of 2025, showcasing a return to profitability and a positive market outlook. The company’s net profit reached €10.6 million, a significant turnaround from a €32.5 million loss in the first half of 2024. The stock closed with a slight increase of 0.32%, trading near its 52-week high of $5.86. With a market capitalization of $451.52 million and an attractive P/E ratio of 6.74, IGD appears undervalued according to InvestingPro metrics, which show multiple valuation indicators trading at low multiples.

Key Takeaways

• IGD reported a net profit of €10.6 million, reversing a previous loss.
• Funds From Operations (FFO) increased by 8.2% year-over-year.
• The company maintained a stable Loan-to-Value (LTV) ratio at 44.4%.
• Tenant sales and footfalls in Italian malls rose, signaling market recovery.
• IGD plans to expand its SIIQ portfolio and focus on sustainability initiatives.

Company Performance

IGD’s performance in Q2 2025 marked a significant improvement over the previous year. The company benefited from increased tenant sales and higher footfalls in Italian malls, which rose by 3.9%. The occupancy rate improved to 95.99%, indicating strong demand for retail space. The company’s strategic initiatives in product innovation and tenant relations have bolstered its competitive position in the Italian retail real estate market.

Financial Highlights

• Net Rental Income: Grew 2.9% on a like-for-like basis.
• EBITDA: Increased by 1.4%.
• FFO: Reached €19.8 million, an 8.2% year-over-year increase.
• Net Profit: €10.6 million, compared to a €32.5 million loss in H1 2024.
• Cost of Debt: Reduced from over 6% to 5.3%.

Outlook & Guidance

Looking ahead, IGD has increased its FFO guidance to €39 million, representing a 9.6% increase. The company is exploring the issuance of bonds to further reduce debt costs. Additionally, IGD is focusing on expanding its SIIQ portfolio and enhancing its sustainability and ESG certifications, aligning with broader market trends towards environmental responsibility. The stock has demonstrated strong momentum with a 20.13% return over the past year. For deeper insights into IGD’s growth potential and comprehensive analysis, investors can access detailed valuation models and 8 additional ProTips through InvestingPro’s exclusive research reports.

Executive Commentary

"We are back to being profitable," stated CEO Roberto Zoia, highlighting the company’s successful turnaround. Zoia also emphasized the resilience of the Italian mall model, asserting that "retail is back in the game."

Risks and Challenges

• Economic Uncertainty: Potential macroeconomic pressures could affect consumer spending.
• Competition: The retail real estate market remains competitive, requiring continuous innovation.
• Debt Management: While the cost of debt has decreased, maintaining favorable terms is crucial.

Q&A

During the earnings call, analysts inquired about the performance of hypermarkets in urban locations and the rationale behind the disposal of Romanian assets. The management explained their strategy to focus on core markets and improve asset efficiency, which is expected to enhance overall profitability.

IGD’s Q2 2025 earnings report reflects a robust recovery and strategic positioning in the retail real estate market, with a clear focus on growth and sustainability.

Full transcript - Immobiliare Grande Distribuzione SIIQ SpA (IGD) Q2 2025:

Chorus Call Operator: Good afternoon. This is the Chorus Call operator. Welcome to the conference call presenting IGD’s H1 twenty twenty five results. I may remind you that all participants are in listen only mode. After the presentation, a Q and A session will follow.

To be assisted by an operator during the conference call, please press star and 0 on your phone handset. May I now turn the conference over to mister Roberto Zoia, CEO and general manager of IGD? Mister Zoia, you have the floor. Please go ahead. Good afternoon to all of you.

Thank you very much. I am sure you received or downloaded the presentation summarizing this first half of the year. Results were approved this morning by our board of directors. I will walk you through the presentation and then, of course, leave as much room as possible to use your questions. As we all know, it’s been a very intense half year, the one we’ve just completed, that it was a turning point for the company after the disclosure of our business plan.

The key points of this semester, of this half year, were the refinancing. We on the road in February, 615,000,000. It is still a grand loan. We repaid the existing, redeem the existing bond, which was the most expensive instrument both price wise and term wise, then we are back into paying dividends out. And on the business side, we started we launched our new property of disposals in Romania.

Two assets were disposed off in the first half, and a third one was disposed off in July. So as you will notice, the outline we gave the guideline we gave, although difficult, it’s starting to produce satisfactory results. Let’s move to page three of the presentation. The main KPI, the business is performing well, I should say, because we experienced growth in net rental income on a like for like basis of 2.9%. EBITDA went up 1.4%.

But first and foremost, our FFO lands at $19800000.0.01 9, up 8.2% versus h $1.20 24. And at last, and we’re very proud and satisfied with it, we are back to being profitable. A net profit for the group of 10,600,000.0. And, of course, it can be compared with the the minus 32,500,000 of h one twenty twenty four. So after three years, it’s definitely a satisfactory result.

When it comes to our operating performance, here too, we produced excellent results despite a first despite the first quarter where we have experienced a slowdown in growth. And then q two picked up and recouped the first three months. Tenant sales are up 1%. Footfalls for Italian malls are up 3.9%. And a very interesting result is for our our hypermarket freehold owned by IGB, and the turnover went up 2.5% for those hypermarkets.

And all that is indeed the outcome of a very efficient and effective leasing activity. As you know, we provide a guideline of 98% level of occupancy. We are now at 95.99, almost 96%. So that means that in one year and three months, we managed to achieve occupancy for an additional occupancy of 1.3% in our shopping malls. Our wall the two years wall is still there.

And describe the old options the old contract. So that has made options favorable for tenants. That means that new contract are being signed with the it’s very long term contract we are entering into. And as you can see, we have either remarket or relayed 4.3% of our of our total mall range with a 1.6% upside in the first six months of the year. And the most important thing here is this 2.2% in q two twenty twenty five.

On the one hand, our operating performance and payment sales were very positive. And therefore, the return for us, the reward for us is to be able to grow rent. We have new very important openings, meaningful openings for the group. The strategy is attract the meaningful again, anchor tenants. And there again, we did an excellent job in most of our malls, you see, from, again, for a leasing contract.

On page seven, I’m very pleased to show you this slide and just to show you our our ability to respond to whatever happens. Asset management on the one hand and the way we lease out our assets. If you remember, in 2023, there was a big flooding in in Ilha Romagna. You see a picture on the left, a picture of what happened to malls, and we’ve refurbished and redone almost the entire mall. And we’ve relet everything by also changing internal layout for that very mall.

And as you can see, the results are one of a kind are exceptionally good. Hypermarkets increased their sales by 10%. Tenant sales went up 3%, and footfalls went up 8.5%. Always talking about asset management. We are still selling the last apartment in Livorno.

And out of a 115 apartments, we’ve managed to sell a 110. They are still to be sold, of which two already have a preliminary contract signed with the notary deeds that will be that are expected to be completed in the next few months. So from the the sales side has been completed. The apartment has been completed, and now we are focusing on the permits and authorization to actually modify as many years have allowed in the meantime ever since we got to live or not. We are looking for the nice right.

Sorry. Right final permit to work on three main prestigious areas to then sell the three plots of land that are still there available. Already in our business plan and in the previous quarters, we already provided a guidance stating that IGB is to be turned into an echo. What do we mean by that? It’s not having a just a relationship with them and eBay on faces and rent, plus on how to enrich the offering.

And that means you have to enter the digital world in order to be able to offer that. And we have launched successfully launched some loyalty apps that are helping us get our customers better to profile them, build profiles, and come up with promotions, events that are perfectly tailored to the profile of our customer base. And we also enhanced our proprietary relationship with tenants with the with our IGD Connect platform. It is a platform that is aimed at providing a digital tool to build relationships between RGB, our people who manage malls and tenants, of course. We collect data and data there are then exchanged in a traceable way.

And we want to strengthen, of course, the very concept of relationship with our clients and tenants. On the marketing side, we wanted to enhance our cooperation with retailers for marketing purposes. To date, we launched ViewBridge, which is a new way to build a relationship well, enhance a relationship with tenants and do things together. We’ve been experimenting with this format and successfully so, I should say. We’ve all launched initiatives that help tenants whenever they have a promotion or a new opening to build a preshow with a number of events that could provide either not provide the brand awareness for the retailers or enhance the fact that there are discounts being offered or the like.

And that indeed has been a very we we were very passionate about that it’s been providing excellent results and very much appreciated by retailers. And we also have six months of very strong interest or investors going back to showing a strong interest for retail real estate. Because in the past, if you remember, there were other preferred asset classes, logistics, hotel, living, you name it. But in this quarter, more specifically, retail real estate traded for about 2,200,000,000.0. Well, for and instance, the Grammysatoni retail deal for about 6,700,000,000.0.

And that is indeed a record figure for retail real estate. That means that investors are back and and more specifically, are back in the retail estate, the real estate arena. Then, mister Peony, I’m I’m very happy to mention it because for those of you who really have the opportunity to approach that business or all you have to do is travel around to see it, it’s exactly like our business. It’s a concession. It’s it’s a long term life since it’s expiring.

It’s 1,300,000,000.0, but the under underlying cash flow is being provided by rent and revenues from a retail media. This is exactly what we are doing. So really enhancing footfalls means having better returns and revenues for retail media and also somehow enhance sales for them. And therefore, retail is back in the game, so to say, and under the focus of the investors. Let’s have a look after IGB’s court portfolio, which is growing point 48% versus the full year 2024.

May just look like just a point something growth, but it’s very important. And this half year, this up this plus point four eight in IDD’s portfolio was only stemming from core business, from our core business, was produced by our core business. And in the data we have in June, we do not yet have the normalization rate and and the exit cap rate is not has not yet been this division not yet been embedded. This growth has not yet been embedded. So it’s a limited growth.

It’s a small growth, but it was specifically generated by our core business. So that means this is consistent. Talent sales are up and tenant site is so positive performance and valuations are also positive appraisal valuation. Also have an increase on page 13. You see an increase from point 353% in malls and hypermarkets.

They are long term contracts, so you do not see an abrupt increase. So this point four eight is substantially provided by the benefit used by malls in Italy without any decompression of cash in. Main financial indicators, Lauritia, is the LTV loan to value is up flat at 44.4%. But let me remind you that we paid out a dividend in May, and we started we’ve started the long journey of reducing our cost of debt. So we have a full year 2024, which was slightly more than 6%.

Today, we stand at 5.3%. So we are already seeing the benefits, thanks to the transactions that we have performed. But after the cashing in of the first installment of the refinancing of August, so the idea is to enter. Further reduce it to 5.3% going forward. And if you look at our operating performance, you will see that I’m sure you remember that in 2024 until April, we have have a a foot portfolio that had a 5,200,000.0 impact.

And then we also disposed of two Romanian assets for about 400,000.0 of net rental. So on a like to like basis, you see we end up with a 1,400,000.0 all representing an up side or greater revenue, and therefore leading to a net rental income for about 15,000,000. EBITDA has a very similar performance, exception made for the fact that we further strengthened our team to focus on net rental or net revenue from services. They had gone down last year, but this year we have a slight change for the better. And that leads us to having the core business EBITDA that is very close to last year’s EBITDA.

And again, with an increase of slight increase of point seven million. Positive news or on a positive note for everyone is that we are finally starting to see a financial management financial position that’s less cumbersome. So if we look at the total for financial management in the first six months, we saved about 5,000,006.4 for our core business. That’s the savings. Net of non recurring charges and IFRS 16.

And that leads us to start having an FFO that is indeed more in line with expectation. And our FFO, page 18, FFO well, here too, we have a change in income scope from eighteen point three first half twenty twenty four. We land at 2025, but that entails 8.2 and a growth of 8.2, and that’s not trivial. But if we look at it on a like for like basis, we end up with an increase of 7,100,000, up 55.9%, mainly given by Financial Management with this 6,400,000.0 we managed to save. And then eventually or at last, I should say, as we have no longer non recurring items, that was the write down of the food fund holding.

And a non write down or you’re having to say that you’re on our real estate asset. Needs us to benefit from the financial perspective, but also benefits of having a negative non recurring non recurring items. So we land with a net profit of 10,600,000.0. Our net financial position is down, thanks to the disposals. And despite that, we we still process about 6,200,000.0 worth of CapEx.

So with that declining net financial position despite the CapEx we spent tells you that you can start perceiving and seeing the positive results provided by the disposals we have engaged in our maturity profile. We’ve talked about it several times. It’s page 21 in the presentation, and they were extended. The 2027 cliff was removed. And today, we are quite confident.

Yes. We are not standing still. The main effort we are doing today, we already have a team working on it. So we are closely monitoring the debt market to find a suitable window for a possible issuance and act well, provided that or subject to the conditions that beneficial or more beneficial than the actual cost of debt. So we are only just starting to focus on that because of the volatility we have experienced over the last few months.

So this it’s still a time of uncertainty. We haven’t yet found a a very favorable time window or window, but we are getting ready for it because that would really further help us further declining our cost of debt. And after a business plan level, we are focusing on sustainability and we keep on working on certifications that are very useful for markets, for banks, and even for this lot funding. We being energy compliant, having assets that are energy compliant is is very important. And we’re working on the photo on photovoltaic power to cut costs and energy costs in our shopping mall.

We have to test running with artificial intelligence to make our systems, energy systems more efficient. If that works, we will further increase it. And we are also still installing EV charging stations. So it’s a it’s a new approach. And according to me, it’s very important to be also have have fixed income cost when it comes to utilities and consumption cost vis a vis our retailers.

We’re actually reassured from that perspective. And then together with a purchasing group, we are purchasing energy. We have there are different there are industrial players, commercial players that are part of this consortium, consulted for Intergea. We’ve already built bought energy for 2025 with a twin 61% coverage. And first and foremost, we blocked prices for 2026 to cover up to 73% of the energy needs in our malls.

So if you notice, we blocked the price at 99.3 with a pump price that until a few days deployed was 109. So we managed to cover our energy requirements and needs. And even if we don’t know what the price of energy will be going forward, in our job being able to provide our retailers with safe data as to energy cost. Fixing state data is very important. When it comes to ESG, that’s another goal in our business plan.

This morning, our board of directors approved a new policy called diversity, equity, and inclusion. And it’s the first step we have made to get by year end a full certification. And we’ve already certified all of our best almost all of our best processes. And I think this is a paramount importance, As you know, this year, there was a lot of movement from the organizational viewpoint. And my idea or the idea we are pursuing is to set priorities for those who were already part of our business plan.

So we managed to experience growth across the board and also in our diversity, equity, and inclusion policies. I think that it’s not just a matter of focusing on a gender equality policy, but also on diversity and fairness and equal pay. Especially when we talk about trade union agreement, we really need to be very inclusive, very transparent when it comes to our employees. A company like ours relies on people, on human resources. So the more they are engaged and passionate about their and loyal to the company, the better results you get.

So I’m very happy that we managed to approve this policy. And in the coming hours, this will be published on our website. And I think this is a good policy indeed. And then we land at guidance for 2025. If you remember, FFO guidance was 38,000,000 in March for the full year 2024.

Today, we felt confident to increase it and give you a 39,000,000 guidance up 9.6% versus 2024. And that is driven by the results we have achieved and our will to try and produce the best possible FFO to then have a very good impact on our shares, share price, and dividend. The dividends we pay out for our shareholders. Year end will be full of events. We’ve already attended many events in the first half, but we’ll attend even more in the second one.

I met many potential investors, people who already are shareholders of IGD, people who well, investors who stepped out and are now getting back in. And this new deal somehow we are trying to provide within our company means that it’s very important to have one to one also talks and meetings with all stakeholders. I think I’m gonna stop here. In the annexes, you’ll find even more details, but I’d rather give you room for your questions. Thank you very much for joining us.

This is the Chorus Call operator. We’re now starting the q and a session. If you want to ask a question, press star and one on your phone handset. To be removed from the q and a queue, press the star and two on your phone handset. Please use your handsets to ask your questions.

If you want to ask a question, press star and one on your handset. Thank you. First question comes from the line of Adriana Terasin, Caesar Sanpaolo. Please, madam, go ahead. Good afternoon to all of you.

Good afternoon, Roberto. Thank congratulations for the results you achieved, and thank you for the presentation. First of all, a a good operating performance of your own of the hypermarkets you own. So could you give us more color on that? And maybe could you give us a market comparison between your performance?

I mean, the performance of your hypermarkets and the peers’ hypermarkets. The disposals in Romania, you sold the assets at at book value. They have a 100% occupancy. How do you see the negotiations with other assets? So how are the negotiations fairing for fairing for the other assets in Romania?

What can we expect? Can we expect a a difference, a gap between the the book value and the value of disposed at. Well, thank you, Ariana. The hypermarket topic according to me is the combination of two factors. First of all, we over time, we’d already performed some disposals, and now you’re starting to see the first well, we’re starting to cut costs.

Has to be able to enable tenants in hypermarkets to have a more aggressive sales policy. And we see that they are starting to have some very interesting promotions. And also, we have a lot of shopping malls that are very close close to cities. So if you compare it to the idea of out of town hypermarkets, we have many hypermarkets that are very much urban hypermarkets in town. And those hypermarkets performed well because the the people get good prices and so they people go there almost on a daily basis.

Visitors go there on a daily basis. And then we have well, footfalls are showing very good results in the South Of Italy as well. Catania, which is a cop master franchising. They did a restyling that is going doing really really well with the hypermarket. And then, we have the Arena Group with Supercoveniente in Palermo.

They are doing really well too. And then we get to Naples. And there too, in Naples, they are having excellent performance. As as you saw in Chezema, the house market in Chezema that did that that has a growth of 10%. And it did that because it’s practically internal and it’s being used as urban shopping center.

And in some areas, in some geographies in Italy where the shopping mall is is like the town plaza or it’s a a place where people can gather and at the same time they can go shopping. So if you offer hypermarket at interesting prices, prices, it could be very beneficial. So proximity right now is what helps us. The proximity to the city center and then Romania. Romania, you said you rightly said that well, the first assets had a very high occupancy rate.

But on our bridge, it’s about 95 to be after the occupancy rate. My goal is to it was another 9 to 10,000,000 in 2025. And here too, we have negotiations that are at a very advanced stage where occupancy received the right amount of attention because after three assets, we have have expressions of interest, and then there are just small or minor modifications in the higher floor to turn them into multi function buildings. And I’m very confident because in less than six months or almost six months, we managed to dispose of three assets. And let me tell you, it’s quite complex because these negotiations normally go on a long time.

It’s private, a counter parties. So then it’s not that you have lawyers talking to lawyers. It’s one to one dialogues we have to have with these pirate investors. But then you see the results because we are lucky enough that our Romanian portfolio is made up of very centrally located buildings or malls. Normally, they are on two floors in the main square of the city.

So that really makes them more attractive above and beyond the retail usage. It’s they are interesting from a real estate perspective. And also in the press releases we’ve disclosed, if you look at the sales price versus the gross collectible area, the g l a, we are around €1,000 inclusion, slightly more than 500 for the last sale. So that means that we really manage to market. And for a real estate investor buying at €5,600 per square meter, it’s very interesting indeed of the price.

Thank you very much. The next question comes from the line of Pindigo Pizzetti with InterMontel. Good afternoon to all of you. Thank you for the presentation. I have a couple of questions.

First, valuations or appraisals. You’ve already said that they are slightly higher or driven by your core business. But from a quality perspective, where appraises conservative in their work, I see that even rounding up the exit yield goes from 7.2 to 7.1 to 7.2. Yes. This is for the Italian core portfolio.

What can we expect from here to year end, from now to year end? And that’s also for the next year. Should happen in order to see a possible decline considering that the market when it comes to trading in the real estate retailers, well, market has been picking up. So so and one curiosity when it comes to Parcamarre, the three areas, the three plots that you want to dispose of. If I’m not mistaken, you still have to get some permits.

You’ve mentioned before the that you are still waiting to get a permit between 2024 and early twenty twenty five. So what can we reasonably expect from now to year end? Thank you. Thank you very much. Appraisal, valuation, the thank you for your question.

This slight reevaluation growth in valuations there, it’s not a rate drive. It’s all business, so to say. Appraisers in June try to keep rates unchanged because on net access, you need to have some more transactions to be able to see a a trend, to identify a trend and then be able to lower it. But also on lack or normalization rate, discount rate, we have to consider that appraisals were run between May and June at that time, which was quite complex because of the tariff talks and for whatever was happening. Yeah.

And therefore, I think that at least as far as discount rates are concerned, there’s still room to have rate close to 8%. Discount rate close to 8%. It’s very high. Whilst the cost of money at ECP level is down and on the exit yield, there are a number of yields underway. So we have to wait and see should there be any interesting transaction at aggressive prices.

I think that we may even hope in a lowering. But it’s very important, as I said before, to consider also what happens with hypermarkets in the South Of Italy. As far as shopping malls are concerned, they Palermo Forum, Centrofici, India, Catania. They are two excellent shopping malls and in but they’re especially, Aroma Extra is still Rome. And until not very long ago, we saw that the North to focus mainly on the North up to Bologna.

But now, Roma Esta and then the two malls bought by Bennett, they are industrial players who are willing to buy shopping malls. And Bennett, the one they bought in Panama, has the hypercopter in there. And so, indeed, they probably did not have the ambition to have a consistent type of management that had bought through despite that. Clipier bought another one. So the retail market today is very different from that of offices or other asset classes.

You look at the performance, the asset shows, and the the latest transactions are all in line with this trend I have just depicted. I think I am happy we had an improvement in our appraisal without touching rates. Let’s hope that in the next half, year half, we’ll have yield decompression so there can be somehow an improvement in our valuations or appraisal. And then on the July 20, the city council approved the new urban planning. And there’s a plot policy.

And there’s a constraint on the entire city of Livorno, not just on the plot we owned. And then the authorities are asking to be to look at the project first before they get cleared. They have to be 200 meters from the sea. And we are we fall within that category. So we are looking at the documentation to then be able to come up with projects to share with the authorities.

And we also have negotiations in place with the neighbors, sir, with the the port authorities, etcetera, so that we come up with a consistent plan and get clearance as soon as possible. We have disposal plan from 2026. So my idea would be to complete the project and submit them to the authorities by 2025 first well, early twenty twenty six. And then with a new permit and authorization to move on quickly move on to disposing of those bonds. Thank you very much, Roberto, for your answer.

The next question comes comes from the line of with Mediobanca. Please, madam. Go ahead. Good afternoon to all of you. I have two questions.

First one, the project the projects you have in the pipeline because you said the market is more buoyant. So can you tell us more about can you elaborate on them? And the second one, cost of debt. Do you expect a reduction from now to year end or in because it’s limited in a into 2025. And then one more thing I’d like you to comment on are the key erasure for your core business key indicators for your core business.

You had a strong improvement in q two. To what extent was it driven by the performance of your assets or to the market performance? Thank you very much on the seach. We’re working. We’re working a lot.

We have a couple of ideas we’re looking into. We are talking to possible players willing to contribute their portfolios into our sync. Of course, we are trying to explain the tax regime effect. I have an equivalent portfolio in our sync. There must be portfolio consistency.

And and my idea is that the portfolios have to be very similar. It has to be a similar, if not better portfolio than IGD. And it cannot become a basket of nonperforming assets. But I do confirm that there is a it’s it’s an appealing project and the player who are interested in this project are either funds who see a short termination or companies, very large companies that are based about in Italy and tomorrow, say, in the future could have an interest in us and looking into a partnership with IGB. So I hope that every quarter we meet and talk to you, I hope to be able to give you an update, but I do assure that it’s a hot topic for us.

Cost of debt, are already seeing that from $5.50. It’s gonna be $5.30 starting from August 8 because we have a refinancing in place. Set the interest rate six months for the next six months. Every six months, I thought you say. And so what we will have in August is gonna be 5.3.

But the real action to reduce it will be on the one hand an issuance. And then we are also working with the banking system. We are working to see the first maturity that of 2028. I mean, 2028, we have the so called Elmet one. That was a fine financing, a funding contract that was signed in December 2022.

It’s an instrument. It’s a costly facility, not as a bond, but it’s right now, it’s the most expensive facility or instrument. So we’re working on it. So on the one hand, we are working on the possible on a possible bond issuance. And on the other hand, we are also working on a possible refinancing of our 2028 maturity.

The first maturity in 2028. But the bond issuance has two advantages. On the one hand, the cost reduction if we find the right time window. And the second aspect that is that we would be think of an for installation for 300,000,000, we would free up about 600,000,000. The unencumbered assets would be well, a very appealing also to rating companies, and that would be a virtuous cycle.

On the one hand, we would reduce the cost of debt. We we would free up mortgage assets, and then that would leave us more room for refinancing transactions or other types of transactions. That is something we are looking into right now. Then we have 2.9% growth of core business. And it’s all business.

I mean, the growth is driven by the business. There’s just a point seven incidents as far as inflation is concerned. So if you match it, it’s 2.2. The market is indeed market performance is positive for vis a vis shopping malls. In addition to IGD’s data, I normally give you data for CNCC.

I cannot say it in advance because they’re gonna release the information tomorrow, but IGD is absolutely in line with the final of the 330 shopping malls that we monitor as the C and PTA, meaning the association. So I if I’m not mistaken, we we see a a general recovery, generalized recovery. Very important is also the development of chains. Very recently, there’s been a proliferation of new chains that have come to Italy. We captured a few of them and we showed them in the slides today, both for restoration and textile, but also a rich world and others for a different types of product categories, so to say, that are booming quite fast.

And then the market of shopping malls in Italy, if you look at European data, second comes to second only after Spain. We are better than France, better than Germany, and better than the Scandinavian countries. So these are public data about Italy and shopping mall. So that means our model, the Italian mall is working online shopping is somehow slowing down. So we have it’s it’s our the way we manage operations, and the market is also helping us.

Thank you. Let me remind you that if you want to ask a question, you may press star and one on your phone handset. For further questions, please press the star and one on your phone. Mister Zoya, we have no more questions in the queue. Thank you very much to all of you, and see you next time.

Have a good summer. This is the Chorus Call operator. The conference call has come to an end. You may disconnect your phones. Thank you very much.

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