IGD shares fall 9% after FY loss, to sell properties (updated)
25/02/2021 15:18
(Recasts with share fall)
Feb 25 (Reuters) - Shares in Italy's IGD IGD.MI fell more
than 9% on Thursday after the property company posted a net loss
for 2020 and said it would sell a portfolio of supermarkets to
boost finances strained by the coronavirus crisis.
IGD, which owns and manages shopping malls and supermarkets
in Italy and Romania, posted a net loss of 74.3 million euros
($90.9 million), compared to a profit of 12.6 million euros the
previous year, after lockdowns and restrictive measures to
contain the spread of the coronavirus hit shopping centres'
activities.
"2020 was undoubtedly the most difficult year in the Group's
history, with the severe repercussions of the pandemic weighing
on the retail sector and, consequently, on property companies
like ours," Chief Executive Claudio Albertini said.
The company said it had mandated international advisor CBRE
for the disposal of the portfolio of stand-alone hypermarkets
and supermarkets for around 185 million euros.
"The proceeds from the transaction will be used to reduce
the Loan to Value and bring it to 45% or less as soon as
possible," the company said in a statement.
The stock was down 9.4% by 1450 GMT, compared with a 0.2%
rise in Milan's all-share index .FTITLMS .
The company also said its board would propose no dividend
payout over last year's results.
However, while the pandemic is likely to impact its
operations in the first months of 2021, IGD added it expects
funds from operations (FFO) - a measure of its operating
performance - will grow between 3-4% this year as vaccine
roll-outs and a gradual easing of the restrictions are set to
help its businesses to progressively recover.
FFO decreased 28.8% to 59.3 million euros last year.
($1 = 0.8186 euros)
(Reporting by Rita Plantera; editing by Emelia
Sithole-Matarise)
((r.plantera@thomsonreuters.com; +48 58 769 65 79))