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Immobiliare Grande Distribuzione SiiQ SpA reported a net profit of €10.6 million in Q2 2025, compared to a loss of €32.5 million in the first half of 2024. The company experienced a 2.9% growth in net rental income and a 3.9% increase in footfalls for Italian malls. However, the occupancy rate is slightly below the target at 95.99%, and the cost of debt remains a concern.

Immobiliare Grande Distribuzione SIIQ SpA (IGD) reported a significant turnaround in its financial performance during the second quarter of 2025, showcasing a return to profitability after a substantial loss in the first half of 2024. The company’s net profit reached €10.6 million, a significant improvement from a €32.5 million loss in the previous period. This strong financial performance was driven by several key factors, including a 2.9% increase in net rental income and a 3.9% rise in footfalls for Italian malls.

The company’s Funds From Operations (FFO) increased by 8.2% year-over-year, reaching €19.8 million. Additionally, IGD maintained a stable Loan-to-Value (LTV) ratio at 44.4%, indicating prudent financial management. Tenant sales and footfalls in Italian malls rose, signaling a recovery in the market. IGD plans to expand its SIIQ portfolio and focus on sustainability initiatives to align with broader market trends.

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.

During the earnings call, CEO Roberto Zoia highlighted the company’s successful turnaround, stating, "We are back to being profitable." He also emphasized the resilience of the Italian mall model and the company’s strategic initiatives in product innovation and tenant relations.

However, there are some challenges to consider. Economic uncertainty could affect consumer spending, and the retail real estate market remains competitive. Debt management is also a concern, despite a reduction in the cost of debt from over 6% to 5.3%.

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. The company’s performance in Q2 2025 marked a significant improvement over the previous year, with increased tenant sales and higher footfalls in Italian malls.

References:

[1] https://www.investing.com/news/transcripts/earnings-call-transcript-igd-q2-2025-reveals-profit-boost-and-market-optimism-93CH-4170759