IGD Expects 16% Organic EBITDA Growth by 2027, 16% Increase in Net Rental Income

Italy's IGD expects EBITDA organic growth of around +16% in 2027 compared to 2024, with net rental income growth of approximately +16%. The company sees its core business EBITDA reaching around EUR 98 million, an increase of around +16% compared to 2024. Funds from operations are projected at around €48 million, up around +41% from €34 million in 2024.

Italian retail real estate company, IGD - Immobiliare Grande Distribuzione SIIQ S.p.A (IGD), recently presented its new business plan, "Committed to Change," which aims to embark on a growth path and return to consistent and sustainable dividend distribution [1]. This article provides an in-depth analysis of IGD's financial expectations as outlined in the plan.

According to the plan, IGD anticipates organic growth of approximately +16% for both EBITDA and net rental income by 2027 compared to 2024 [1]. This growth is expected to contribute to an increase in core business EBITDA, which is projected to reach around €98 million, a significant rise of +16% compared to 2024 [1]. Furthermore, funds from operations are projected to reach around €48 million, representing a substantial increase of +41% from €34 million in 2024 [1].

IGD's financial performance improvement is not limited to these targets alone. The company aims to optimize its financial profile and reduce costs, maximize value creation from core business activities, and enhance the attractiveness of its portfolio through targeted and ESG-compliant investments [1]. These priorities are expected to maintain the company's investment-grade profile, recently confirmed, and bring Loan to Value (LTV) to around 40% at year-end 2027 [1].

The plan's presentation comes after a series of improvements and actions taken by IGD to streamline its operations, change governance, and optimize its financial profile [1]. Roberto Zoia, IGD's Chief Executive Officer, expressed confidence in the team's ability to handle challenges and return to fully expressing the company's value [1].

In conclusion, IGD's 2025-2027 business plan, "Committed to Change," represents a significant commitment to growth and sustainable dividends. With projected increases in EBITDA, net rental income, and funds from operations, the company aims to optimize its financial profile, maximize value creation, and enhance portfolio attractiveness.

References:
[1] IGD Presents the New 2025-2027 Business Plan "Committed to Change" (2024, November 21). Retrieved from https://www.marketscreener.com/quote/stock/IMMOBILIARE-GRANDE-DISTRI-40892885/news/Immobiliare-Grande-Distribuzione-SIIQ-S-p-A-IGD-presents-the-new-2025-2027-Business-Plan-Commit-48423478/