(Tiper Stock Exchange) – IGD SIIQone of the main players in Italy in the retail real estate sector and a company listed on Euronext STAR Milan, announced that Some of the 2024 targets indicated in the Business Plan do not appear to be achievable presented on 14 December 2021, with particular reference to FFO and dividends. The company does not currently believe it will be able to provide new targets for 2024 and explains that the withdrawal of the outlooks is caused by the significant worsening of the macroeconomic scenario, the increase in interest rates and consequent increases for the group in financial charges and the LTV leverage generated by write-downs on the real estate portfolio at the end of 2022.
The valuations as at 31 December 2022, received today by the independent experts CBRE Valuation, Kroll Advisory, Cushman & Wakefield and Jones Lang LaSalle, certify a market value of the company’s consolidated real estate assets of 2,080.86 million euros. Valuations were above all impacted by the rise in interest rate curves, also in the light of the worsening of the macroeconomic scenario.
IGD believes that the guidance of FFO extension for 2022, communicated on 4 August last, equal to +2/3% compared to 2021 (or +17/18% taking into account the change in scope due to the sale of assets completed at the end of 2021) is confirmed. There Net Financial Position at the end of the year it should amount to -973 million euros and the Loan to Value leverage ratio will be 45.6%, an increase compared to 44.8% at the end of 2021, above all due to the negative changes in fair value.
Taking into account the recurring net result FFO and the increase in the financial leverage ratio, IGD believes that the dividend relating to the 2022 financial year may be between €0.25 and €0.30 per sharewhich corresponds to the minimum level indicated in the 2022-2024 Business Plan and which on yesterday’s share price would correspond to a dividend yield between 7.2% and 8.6%.
In 2022, operating performance in terms of entry recovery, operator sales performance and rental collections had a “positive trend”, which is expected to continue in 2023 as well. IGD also expects a increase compared to 2022 in both net rental income and EBITDA.