Italy's real estate investment trust IGD Siiq saw net profit drop by 64% in the first nine months of the year to EUR 15 mln from EUR 41 mln in the same period a year before.
Italy's real estate investment trust IGD Siiq saw net profit drop by 64% in the first nine months of the year to EUR 15 mln from EUR 41 mln in the same period a year before.
Revenues increased by 21.5% to EUR 89 mln year-on-year. The growth was due mostly to the EUR 12 mln increase in rental revenues generated by the recent acquisitions of the Gran Rondò mall in Crema, the Tiburtino shopping centre in Guidonia and the Katané scheme in Catania.
IGD's EBITDA (Earnings before interest, taxes, depreciation and amortization) amounted to EUR 56 mln in the first nine months of the year, up by 24.6% on the corresponding period in 2008. The company's net debt rose to EUR 895 mln at end-September 2009, from EUR 734 mln at year-end 2008.
The retail property investor and developer said its board has approved a new business plan for the 2009-2013 period. The Bologna-based firm expects to make investments of around EUR 745 mln in the next five years, of which EUR 595 mln by 2011. IGD is seeking to reach an average growth of 9.8% for rental revenues and 12.5% for EBITDA over the five-year period. The company expects the yield generated by its freehold assets to rise to 6.5% over the next five years from 6.3% at present. Its portfolio value is also expected to grow, reaching EUR 2.2 bn in 2013.
'This plan is testimony to our desire to continue growing, while improving profitability,' said CEO Claudio Albertini. 'We believe that the investments envisaged in the plan can be made maintaining debt at what, in our view, is a sustainable level as it is primarily long-term and in line with our assets.'
