IGD SIIG

 

🏬 IGD SIIQ: Exploring Italy’s Retail Real Estate Powerhouse

IGD SIIQ (Immobiliare Grande Distribuzione) is a publicly listed Italian REIT (Real Estate Investment Trust) with a retail-focused property portfolio spread across Italy and Romania. While not widely known internationally, IGD offers a compelling blend of stable income, discounted valuation, and long-term sustainability goals.

Let’s take a closer look at what makes IGD worth watching.

🏢 Company Overview

IGD was formed in 2000 as a spin-off from Italy’s cooperative retail groups (Coop), and it listed on the Milan Stock Exchange in 2005. Headquartered in Bologna, the company owns and manages shopping centres in midsize Italian cities and Romanian towns under the Winmarkt brand.

Its ownership is still tied to its roots:

• Coop Alleanza 3.0 owns ~41%
• Unicoop Tirreno holds ~10%
• The remainder is free float

💼 What Is a SIIQ?

SIIQ stands for “Società di Investimento Immobiliare Quotata” — Italy’s version of a REIT. To qualify:

• At least 80% of revenue must come from rental income
• 70% of profits must be distributed as dividends
• The company enjoys tax transparency on qualifying income

📊 Financial Performance

Despite pandemic-related losses in 2020 and 2023, IGD has shown steady operational recovery.

Year	Revenue (€M)	Net Income (€M)	FFO (€M)
2019	155.3	12.6	83.3
2020	145.8	-74.3	59.3
2021	145.1	52.8	64.7
2022	137.3	-22.3	55.4
2023	142.4	-81.7	54.1
2024	140.6*	-30.1*	35.6

💰 Dividend Policy & History

IGD complies with SIIQ dividend rules and historically has paid solid dividends. While payouts were paused during uncertainty, they resumed in 2025 with a €0.10/share dividend.

Year	DPS (€)	Yield (%)
2019	0.50	5.8%
2020	0.22	3.4%
2021	0.35	5.2%
2022	0.00	–
2023	0.00	–
2024	0.10	3.9%

🏬 Property Portfolio

IGD owns 56 properties:

• 27 shopping centres in Italy
• 19 hypermarkets (mostly leased to Coop)
• 14 properties in Romania (Winmarkt)

Its portfolio totals over 600,000 m² of gross leasable area with 95%+ occupancy in both countries.

Key Italian centres:

• ESP – Ravenna
• Centro Sarca – Milan
• La Torre – Palermo

🧾 Debt & Valuation

IGD has actively reduced debt, bringing its Loan-to-Value ratio from 48% to around 42.5% in 2024.

Its market valuation, however, tells a different story:

• Share Price: ~€2.60
• Net Asset Value (NAV): ~€8.94
  → IGD trades at ~70% discount to NAV

🌿 Sustainability Focus

IGD is targeting carbon neutrality by 2030. Key initiatives include:

• BREEAM certifications for 80% of properties
• 100% renewable electricity use
• ISO 14001 environmental certification
• GRESB gold-level ESG reporting

⚠️ Risks to Consider

• High interest rates have pressured earnings
• Macro risk in Italy and Romania
• Structural retail headwinds (e.g. e-commerce)

🧠 Final Take

IGD SIIQ is not without challenges, but for investors seeking:

• Steady rental income
• A deep discount to asset value
• Sustainable long-term property investments

…it may be worth a closer look.

📈 Ticker: 

IGD.MI