Immobiliare Grande Distribuzione SiiQ SpA Reports Q2 2025 Earnings: Net Profit Jumps to €10.6M, Tenant Sales Up 1%, Footfalls Increase 3.9%

Immobiliare Grande Distribuzione SiiQ SpA reported a net profit of €10.6m in Q2 2025, a significant increase from a loss of €32.5m in the first half of 2024. The company experienced growth in net rental income, tenant sales, and footfalls for Italian malls. However, the occupancy rate remains below target, and the cost of debt remains a concern. The company is working to dispose of assets in Romania and has launched successful digital initiatives.

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 [1].

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.

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.

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